[Congressional Record (Bound Edition), Volume 149 (2003), Part 21]
[Issue]
[Pages 29024-29294]
[From the U.S. Government Publishing Office, www.gpo.gov]
[[Page 29024]]
SENATE--Monday, November 17, 2003
The Senate met at 12 noon and was called to order by the President
pro tempore [Mr. Stevens].
______
prayer
The Chaplain, Dr. Barry C. Black, offered the following prayer:
Let us pray.
Eternal Spirit, Your righteousness is like the mighty mountains, Your
justice like the ocean depths. You clothe the meadows and provide
carpet for the valleys.
Lord, You have given us the new chapter of another week with
opportunities and challenges. We have opportunities to build bridges
and to mend the defective. But we face the challenges of a world filled
with divisive forces that desecrate and destroy. May the things that
unite us overcome the powers that divide us.
Today, bless Your servants in this place with patience. Remind them
that laudable goals usually take time. Slow us down, Lord, that we may
take time to appreciate Your many blessings. Keep us from feelings of
futility and may we feel the uplift of Your everlasting arms. We pray
in Your holy Name. Amen.
____________________
PLEDGE OF ALLEGIANCE
The PRESIDENT pro tempore led the Pledge of Allegiance, as follows:
I pledge allegiance to the Flag of the United States of
America, and to the Republic for which it stands, one nation
under God, indivisible, with liberty and justice for all.
____________________
RECOGNITION OF THE ACTING MAJORITY LEADER
The PRESIDENT pro tempore. The acting majority leader is recognized.
____________________
SCHEDULE
Mr. McCONNELL. Mr. President, today the Senate will resume
consideration of the VA-HUD appropriations measure. We were unable to
reach an agreement for finishing the bill, and it is unclear how much
further progress we can make on this bill. At this time, we will
continue with the bill this afternoon and make a determination later
today as to whether the Senate can complete action on this important
measure.
Under a previous order, beginning at 4:30 p.m. today, the Senate will
begin 1 hour of debate prior to the vote on invoking cloture on the FAA
reauthorization bill. It is hoped that cloture will be invoked and that
the Senate can complete its work on the conference report today. Again,
that vote is expected around 5:30 this afternoon.
Also later today, the Senate will conduct a 1-hour debate on the
issue of jobs and the economy. There will be two Members from each side
of the aisle engaged in that debate, and all Senators are encouraged to
be present for the discussion.
As a reminder, two cloture motions were filed with respect to the
nomination of Thomas Dorr to be Under Secretary of Agriculture for
Rural Development. Those cloture votes will occur tomorrow morning, and
Senators will be notified of the exact timing of those votes.
Finally, on behalf of the majority leader, I remind everyone this is
expected to be a busy workweek in the Senate. There are a number of
important conferences that have been completed and others that will be
finished shortly. These legislative matters will be scheduled as soon
as they are available so the Senate may adjourn at the earliest
possible time. All Senators should adjust their schedules for a busy
session as we approach what will very likely be the final week of this
session.
____________________
RECOGNITION OF THE ACTING MINORITY LEADER
The PRESIDENT pro tempore. The acting minority leader is recognized.
Mr. REID. Mr. President, through the Chair to the distinguished
majority whip, is there some estimate as to when we would get to the
conference reports on Energy and Medicare?
Mr. McCONNELL. Mr. President, I say to my friend from Nevada, it is a
little bit difficult to ascertain exactly when, but we hope the Energy
bill might be ready by Wednesday. We are going to work as hard as we
can to get those measures ready for consideration in the Senate
certainly this week. Hopefully, we can get to Energy by Wednesday.
The PRESIDING OFFICER (Mr. Burns). The Senator from Nevada.
Mr. REID. Mr. President, I hate to broach the subject because last
time it didn't work out as well as I had contemplated, but I hope if
something comes up that we can't finish our work on Friday, we will go
over into the weekend because everyone believes they would rather
work--I don't know about everyone--most people believe they would
rather work this weekend knowing we don't have to come back until after
the first of the year. I hope the leadership on the other side will
keep that in mind and alert Senators that we may have to work Saturday
and maybe even Sunday to get out of here for the Thanksgiving holiday
and the year generally.
Mr. McCONNELL. Mr. President, I say to my friend from Nevada, I think
that is a widely held sentiment on this side of the aisle as well. It
will be vastly more desirable to wrap it up this week, even if this
week means a longer week than normal, than to carry it over to next
week or certainly December. We are going to be pushing to complete the
business of the Senate this week. This week ideally would be Friday,
but it could end up being Saturday or later. It is our goal to wrap up
this session of the 108th Congress this week.
Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. JEFFORDS. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER (Mr. Cochran). Without objection, it is so
ordered.
____________________
MORNING BUSINESS
Mr. JEFFORDS. Mr. President, I ask unanimous consent that the Senate
proceed to a period of morning business until 1:30 p.m. with Senators
permitted to speak therein.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. JEFFORDS. Mr. President, like every loyal Red Sox fan, I believe
that next season my team will be victorious. I bring this same level of
optimism to my efforts to reduce the amount of wasted resources and
litter caused by discarded beverage containers.
I rise today to speak again to the National Beverage Producer
Responsibility Act of 2003, the bottle bill, convinced that this is our
year.
I have long been an advocate for increased recycling. Vermont passed
its bottle bill in 1972 when I was state attorney general. In 1975,
during my first session as a Representative in the U.S. House, I
introduced a national bottle bill, closely resembling Vermont's very
successful example. Last Congress, as chairman of the Environment and
Public Works Committee, I convened the first Congressional hearing in
many years on recycling, in which the committee heard expert testimony
on the merits of a national program to recycle beverage containers.
The reason that I continue to push this issue is simple--it makes
sense.
[[Page 29025]]
Beverage container recycling is one of the simplest ways to see a
dramatic improvement in our environment. As this chart shows, 120
billion--let me repeat, 120 billion with a ``b''--beverage containers
were wasted by not being recycled in 2001.
If we could raise the Nation's recycling rate to 80 percent, we would
save the equivalent of 300 million barrels of oil over the next 10
years and eliminate 4 million tons of greenhouse gas emissions
annually. States that have enacted bottle bills also have benefited by
reducing road side litter by up to 84 percent.
These savings may sound unrealistic. But in Vermont alone, recycling
efforts in 2001 reduced greenhouse gas emissions by 94,000 metric tons
of carbon equivalent. That's equal to approximately two-thirds of all
industrial carbon dioxide emissions from fossil fuel combustion in
Vermont and 4.5 percent of greenhouse gas emissions. To me, those
savings sound remarkable.
Why a refundable deposit program? Thirty years of experience
demonstrates that refundable deposit bottle bills are dramatically more
effective than voluntary efforts. As this chart illustrates, the ten
States that have implemented deposit laws recycle more containers than
all of the other 40 States combined.
While I applaud curbside and other voluntary recycling efforts, the
71 percent of Americans who live in non-bottle bill States account for
only 28 percent of recycled beverage containers. My bill, the National
Beverage Producer Responsibility Act of 2003, strikes a balance between
the wishes of industry, the authority of individual States, and the
needs of a healthy environment.
Unlike traditional bottle bills, this legislation would fully harness
market incentives by setting an 80 percent recovery performance
standard and allowing industry the freedom to design the most efficient
deposit-return program to reach the standard. States that already have
bottle bills will retain their authority to continue their programs in
their own individual ways as long as they meet the national performance
standard.
This past Saturday, November 15, 2003, was America Recycles Day in
Vermont and across the country. Two years ago, to help commemorate the
2001 America Recycles Day, I participated in a public service
announcement to raise awareness regarding the need to buy recycled
goods.
The importance of recycling deserves, however, more than a 30-second
public service announcement and more than its own day on the calendar.
For it to work, recycling must be a commitment of all of ours each and
every day of the year.
Vermont's commitment to recycling has provided some impressive
statistics. For example, in 2001, 31 percent of Vermont's municipal
waste was diverted from landfills. That year, 13,260 tons of containers
were recycled through soft drink and beer distributors and materials
recovery facilities.
The benefit of these programs is, of course, that they help keep our
Green Mountains green.
I commend and thank Governor Jim Douglas for his many recent
initiatives to encourage and improve the efficiency of recycling across
Vermont. For example, under Governor Douglas' leadership, Vermont has
implemented beverage container recycling programs at 20 State
information centers.
In the first phase, in less than 2 months, over 200 pounds of
aluminum, glass, and plastic were recovered from 51,00 visitors passing
through one such information center in Willison, VT. And today, the
U.S. Senate's other Vermonter, Patrick Leahy, joins me and Senators
Joseph Lieberman, Daniel Akaka, and John Kerry as original cosponsors
as I introduce the National Beverage Producer Responsibility Act of
2003.
I recommend that all take advantage of this wonderful system we have
in Vermont and in other States. I ask everyone to take a close look and
see if we wouldn't be much better off if the rest of the country
follows suit.
Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. JEFFORDS. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. JEFFORDS. I ask unanimous consent to speak in morning business
for up to 10 minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________
ENVIRONMENTAL PROVISIONS IN THE CONFERENCE REPORT ON H.R. 6
Mr. JEFFORDS. Mr. President, the conference report on H.R. 6, the
comprehensive energy legislation, was released over the weekend. As the
ranking member of the Environment and Public Works Committee, I have
come to the floor today to share my deep concern that this bill will
endanger our environment and unfairly benefit special interests.
The final conference report contains provisions that significantly
change environmental law and undermine long-standing environmental
protections. It is my sincere hope that the conference will remove many
of these provisions during their meeting today.
The Environment and Public Works Committee, on which I serve, has
jurisdiction over environmental matters, and we were not consulted in
the development of any of these provisions.
This bill drastically rewrites existing clean air law. It postpones
ozone attainment standards across the country. This is a matter never
considered in either House or Senate bill that has been inserted into
the conference report. By inserting this language, the conference will
expose the public to dangerous air pollution emissions for far more
time than under existing law. Several Federal courts have already
struck down regulatory proposals similar to the provisions in the
conference report as violations of the Clean Air Act.
The gasoline additive MTBE, which is known to contaminate
groundwater, would have been phased out in 4 years in the Senate bill.
This conference report extends the phaseout for a decade and includes
provisions that would allow the President to decide to continue the
MTBE use.
This bill provides legal immunity to large petrochemical companies
from ``defective product'' liability arising from the contamination of
groundwater supplies by the gasoline additive MTBE.
It also terminates a lawsuit filed by the State of New Hampshire by
reaching back to provide immunity as of September 5, 2003. This
language allows a contaminating product to be used, possibly
indefinitely, and provides communities with no fiscal remedies to clean
it up.
As a further subsidy to the industry, the bill exempts all
construction activities at oil and gas drilling sites from coverage
under the runoff requirements of the Clean Water Act.
This means that contaminants, such as toxic chemicals, grease, and
other pollutants from oil and gas drilling, will end up in our
waterways.
Conferees have also removed hydraulic fracturing, an underground oil
and gas recovery technique, from coverage under the Safe Drinking Water
Act. This is a process in which water, sand, and toxic chemicals are
injected under high pressure into oil- and gas-bearing rocks,
potentially polluting drinking water supplies.
This bill suspends these existing drinking water protections, even
though courts have found that hydraulic fracturing should be regulated
to protect the public health.
Also, the conferees have included language to speed up energy
exploration and development at the expense of environmental review and
public participation on both Federal and non-Federal lands. The public
will have less time to review and consider the impact of these
projects.
When these reviews occur, oil, gas and geothermal energy companies
can be reimbursed through credits against
[[Page 29026]]
future royalties payable to the taxpayer for the costs of undertaking
environmental assessments. These provisions subsidize energy
development on our public lands.
The conferees have also included provisions that mandate specific
timeframes and deadlines for agency decisions on Federal oil and gas
leases. This would establish oil and gas development as the dominant
use of our Federal public lands.
Our other Federal lands are at risk of becoming electric transmission
corridors with this bill as well. The Department of Energy can open new
areas for transmission line construction, harming the wildlife, water
quality, recreational and other values we have sought to protect for
years.
My colleagues should know that this is not an exhaustive list of the
environmental provisions of concern in this bill.
In almost every title, there are significant changes to long standing
environmental law and policy. In addition, important issues which
received majority support in the Senate, such as a Renewable Portfolio
Standard for electricity, requirements to reduce our dependency on
foreign oil, and adoption of sensible climate change policy, have been
dropped.
While I support the establishment of a comprehensive energy policy
for the United States, we should not use the final energy bill as a
means to roll back important environmental protections.
This bill will not promote energy self-sufficiency, will not promote
it, and will cause environmental damage. It is my sincere hope that
these unwise provisions will be removed, and I urge my colleagues to
consider seriously the environmental effects of this legislation in
making their final decisions regarding whether or not to support this
measure when it come before the Senate.
Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. KENNEDY. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. KENNEDY. Mr. President, I ask unanimous consent to speak as if in
morning business.
The PRESIDING OFFICER (Mr. Roberts). Without objection, it is so
ordered.
____________________
MEDICARE PRESCRIPTION DRUG BENEFIT
Mr. KENNEDY. Mr. President, I wanted to take a short time this
afternoon to talk about some of the concerns that I have on the
recently agreed to proposition on the Medicare prescription drug
agreement that was reached over the course of the weekend.
As we are anticipating this measure which is now being examined in
terms of the Congressional Budget Office estimates and the legislative
language that is being prepared, I expect that we will be addressing it
at the end of this week or sometime in the very near future. I want to
at least bring some focus and attention to some of the provisions in
the legislation that haven't gotten the focus and attention they
deserve, which they should have, and which I hope our Members will give
study.
There is no truer indication of a nation's priorities than the
investment it makes, and the legislation the Senate considers today I
believe squanders a historic opportunity with a disregard for the
Nation's health, particularly for our seniors. There is a provision in
this bill dealing with a $12 billion slush fund to lure HMOs into
Medicare.
Let's see if I have the reasoning behind this fund right. The
supporters of the legislation are so concerned that HMOs can provide
health care to seniors more efficiently than Medicare that they give
HMOs a $12 billion payoff so they can compete. If they are so
efficient, why do they need the handout? I guess the sponsors of the
legislation believe a 9 percent reimbursement bonus for HMOs is not
enough. In this legislation there is the assurance the HMOs will get a
9 percent increase over Medicare in reimbursement rates.
In addition, there is what they call a stabilization fund which is
effectively a $12 billion slush fund which will also be available to
subsidize the HMOs.
That package adds up to a rather extraordinary benefit to the HMOs.
The bill calls for competition between Medicare and the HMOs. Yet in
this agreement private plans are going to get paid 109 percent of
traditional Medicare reimbursements. And, those enrolled in HMOs are 16
percent healthier. That cumulatively is a 25 percent bonus to the
private sector to compete with Medicare, without even considering the
$12 billion slush fund. Our friends on the other side say we want
competition in this system. Yet they are giving them the 25 percent
advantage in order to compete with Medicare.
The bill that passed the Senate was a prescription drug bill that had
bipartisan support, with 76 Members for it. I was proud to stand here
and support it. But now we basically have the restructuring of our
Medicare system. We do it in a way that provides a fundamental risk to
the Medicare system. That is why I am opposed to this agreement and the
proposal.
I have given one illustration of why this proposal that is strongly
supported by our friends in the House is going to weight this agreement
so heavily for the HMOs and the PPOs. They talk about a fair playing
field between the private sector and the Medicare. That is hogwash. In
the Senate bill we passed a prescription bill. It had real competition
for all parts of the country with a backup system of Medicare, but not
in the proposal that comes out of the conference.
I remind our seniors the 25 percent bonus that is going to the HMOs
is effectively being paid by our seniors today in the Medicare
premiums. They are the ones, on the one hand, who are paying into this
fund; on the other hand, it is the conference report that is
effectively taking the 25 percent and giving it over to the private
sector.
And we wonder why seniors might be somewhat concerned about that
arrangement. Do Members think the seniors at home will not ask: Why
aren't we using all that money to either make sure the benefit package
is a stronger benefit package to help me, to help my family, or to help
my grandparents? The decision made in the conference was no, we insist
on ``competition.'' But they are going to take the 25 percent, which
has been paid in dollar by dollar by dollar by hard-working Americans
over a lifetime that they thought was going to be put into the Medicare
system, and we are going to use that to subsidize the private sector. I
hope we will have a chance for explanations.
Second, there is a provision included in this conference that was not
included in the Senate proposal, premium support. I never heard the
President indicate strong support for it, or those who speak for the
President. I don't think a great many of our colleagues are able to
define what premium support is, but they will learn about it soon
enough if they vote for this legislation. Premium support is a proposal
that is primarily sponsored by those who are opposed to the Medicare
system.
Let's make no bones about it. There are a number of other colleagues
who are still strongly opposed to Medicare. That is no mystery, no
secret. This proposal puts forward one of their strongest beliefs--that
we need to change the Medicare system--I say undermine the Medicare
system--with premium support. What that means is the averaging of
various premium bids to determine the Medicare system reimbursement
rate. The difference between what the Medicare system reimburses and
what real cost is going to be paid by the individual. The premium
support proposal does what the insurance companies do best, and that is
cherry pick the healthiest senior citizens for their plans so they are
able to make money, and leave those who are sicker and older in the
Medicare system where the premiums will rise.
[[Page 29027]]
I will demonstrate with this chart. This is the Medicare actuarial
estimates of the disparity of the premium support, what the premium
would be under the proposed legislation. The national average of the
current law is $1,200. Several years ago, the estimate under the
premium support was $1,771. The new average this year is $1,501. How do
we know what the true estimates will be? Premium support is untested,
untried, unworkable. We are playing roulette with premium costs for our
senior citizens. This is a social experiment that uses our seniors as
guinea pigs. That is what premium support is.
Look at the difference, say, if you are in Florida. The agreement
reached said by the year 2010 the Secretary will be able to designate
six metropolitan statistical areas that qualify. Currently, half the
States have those areas. With the kind of subsidies we are providing in
this legislation, by the year 2010, I doubt whether there is any State
that will not have the opportunity to qualify. I hope our colleagues
listen carefully to that because this diversity in premiums is going to
come to your State and you are going to have to explain why a senior in
one county, who pays same taxes, worked just as hard all his life, and
who deserves Medicare, has to pay twice as much as his neighbor in the
next county over in premiums for medicare.
Medicare is a universal system that guarantees everyone will be
treated equally, according to their medical needs. This legislation
turns that proposition on its head and makes your medicare benefits
dependent on where you live and what will help private insurance
companies the most.
This is the House Budget Committee, the Medicare actuarial data. The
difference if we have premium support in Florida, what the premiums
would be 1 year in Dade County and another year in Osceola, Fl: Double
the premium for the Medicare patients living in Dade; half that for
those in Osceola. Now that is in Florida.
Take premium support in California. If you live in Los Angeles,
$1,700; in Yolo, CA, $775.
It is just based on where you live. You have lived there all your
life. You have your home. You have paid your taxes. You have brought up
your children, and you have retired, and you find you are going to pay
$1,700 for your premium; and someone in Yolo County, CA, is going to
pay $775. Why? Because of this new concept of premium support.
It will happen in every State. For New York City, the Medicare
actuaries' estimate that in Queens, seniors would pay $2,000, but only
$975 in Erie, NY, because that is the estimate of what the premiums
will be with competition in New York.
Try to explain that to your seniors who have lived their life, who
have served this country, brought the Nation out of the Depression,
fought in the wars, are living back home, and find out their premiums
have increased 100 percent or 200 percent or 300 percent.
This is not just what I am saying about premium support, these are
the Medicare actuaries. This information comes to us from testimony
given before the Finance Committee.
Here we have figures from my home State of Massachusetts: $1,450 in
Barnstable, $1,000 in Hampden, MA. So, $400 more if you live down in
Barnstable County, in Cape Cod, than the center part of the State.
So if you support this proposal, and you support the premium support,
then you are going to have to explain to your constituents and to your
elderly people that if they live in one community, they may be paying
double what their neighbors are paying in another community.
What this proposal puts forward has never been tried. It has never
been tested. And it is mandated--mandated--in this compromise from the
House of Representatives. It is mandated in this bill.
You will hear the other side saying: Senator Kennedy has not got it
quite right. You will hear them say: We put a restriction in there,
they can only go up 5 percent this year. Five percent this year, 10
percent the next year, 50 percent the year after.
Let's get real. Look at the direction in which we are going. This
proposal has heavy subsidies for the HMOs and a roll of the dice on the
premiums for our senior citizens. And that is not even the beginning.
Currently, of our 40 million seniors, there are 6 million who have
Medicare but also who have what they call Medicaid to those who are
very poor, we are talking about 100 percent of poverty or below. Those
beneficiaries have to pay copayments for medical care. Most of the
States pick up those copayments. That is what is existing today.
Do you think that is going to continue under this bill? No. No, no.
No, no, that does not continue under this proposal. That is actually
prohibited under this legislation.
There will be 6 million of our seniors who are getting help and
assistance from their States today who will be prohibited from getting
it under this proposal. Why? This all saves the money--probably $9 to
$12 billion--to use for other purposes.
If you come from a State with large numbers of very poor, and where
the State is paying that $1, $3, $5, in terms of the prescription
drugs, it does not sound like a lot of money. But if seniors need that
drug two or three times a week, it piles up every week, it piles up
every month, and it piles up every year.
Why does the conference bill do that? Why in the world did they do
that? It was not in the Senate bill. It was in the House bill, and it
was accepted in the conference.
Now we come back to those who are the very needy and the very poor,
and we see many of our elderly who are excluded from this program with
what we call an asset test.
The asset test is basically the following: If you own a car that is
worth more than $4,500, you have a wedding ring worth $2,300, you have
$6,200 in savings, and you have a burial plot that is worth more than
$1,500, all that is considered in terms of your assets to exclude you
from being eligible for benefits targeted to the poorest of the poor.
The Senate bill said that low-income people could get the assistance
they needed without going through a cruel and demeaning assets test.
Senators from New Mexico, Mr. Bingaman and Mr. Domenici offered an
amendment, which passed by 67 votes, to reaffirmed the Senate's desire
not to penalize people because they managed to save a small amount of
money during their working lives. I was proud of the Senate, of
Republicans and Democrats alike, for recognizing that if we were going
to pass a prescription drug bill, it ought to be targeted on the
neediest of the needy. But the bill put forward by this conference went
in the opposite direction and restored that cruel and demeaning assets
test.
We had a good bill. We did not provide these large subsidies to the
PPOs and the HMOs. We did not have premium support program that so
threatens, undermines and endangers Medicare. No, no, we did not have
those. Ours was basically a prescription drug program focused on the
neediest seniors built on private sector delivery with a backup in
terms of the Medicare system. That was the compromise.
But not here. The conference needed more money to pay for what they
call health savings account, the medical savings account, which they
have put in this particular conference report, at the cost of anywhere
from $6 to $7 billion, draining our national deficit even more and adds
to the total cost of the legislation.
Health savings accounts are designed for the healthiest and
wealthiest people in our society leaving the sickest and poorest of the
workers in this country in the private sector where their premiums
could be increased by 20 to 30 to 40 percent. As the debate unfolds, we
will be presenting further estimates on this. It was best estimated,
from the Urban Institute, at 60 percent increases.
This conference report gives us a whole new kind of a system. We have
the heavy subsidizing of private plans with 25 percent more being paid
for by seniors. We have the experimental system where you are going to
have those enormous swings in premiums all over
[[Page 29028]]
the country without any predictability, and it is untested and untried.
We have the cutting back of 3 million of the neediest people because of
the reimposition of the asset test. We have the introduction of the
health savings account which is going to skew the health delivery
system for millions of workers and the young people in this country.
Many people are going to bail out of their traditional system, and
leave their coworkers, who may have greater kinds of health threats, to
pay a very enhanced premium and also enhance the premium of the
companies themselves.
What are we talking about with this legislation? Let's add it up. Of
the about 10 to 12 million American workers who now have retiree
accounts, under this proposal, the best estimate is that 2 to 3 million
of those who are covered today will lose that, according to CBO.
We heard the estimate--this was a real good one--that up to 30
percent of those who were getting coverage were going to lose it. And
then some of our Republican friends said that is too much, that is too
many, so let's expand the base, which they did. Let's include all the
Federal employees. Let's include other groups in there to lower the
percentage. Now they come out and say: I know it was 33 percent before;
now it is only 12 or 14 percent.
The total numbers are the same. You are going to lose the 3 million.
This is what we have: 6 million Medicaid beneficiaries who now have
wraparound coverage; they are going to be paying more. You have 2 to 3
million retirees who lose their coverage. They are going to be hurt by
this legislation.
We have 6 million people in the untested, untried premium support
demonstration. Add that up, 15 million of the elderly and disabled are
going to be impacted or affected by this program. At the same time we
are talking about billions of dollars in the slush fund for the PPOs.
We are talking about the health savings accounts, which are billions of
dollars, that the taxpayers are going to end up paying. Then we have
the asset test which is going to exclude many of our seniors.
This legislation has been altered and changed. It was a prescription
drug program when it passed the Senate with strong bipartisan support.
Now it is a Medicare Program. At the heart of this program are the
kinds of instruments that can undermine Medicare and threaten our
seniors now and in the years to come. It doesn't deserve to pass.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. BOND. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________
MORNING BUSINESS
Mr. BOND. Mr. President, I ask unanimous consent that the Senate
proceed to a period for morning business with Members permitted to
speak up to 10 minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________
MEASURES PLACED ON THE CALENDAR--S. 1862, S. 1863, S. 1864, S. 1865, S.
1877
Mr. BOND. Mr. President, I understand there are five bills at the
desk, and they are due for a second reading. I ask unanimous consent
that the clerk read the titles of the bills en bloc for a second time.
The PRESIDING OFFICER. Without objection, it is so ordered. The clerk
will read the bills by title.
The assistant legislative clerk read as follows:
A bill (S. 1862) to provide certain exceptions from
requirements for bilateral agreements with Australia and the
United Kingdom for exemptions from the International Traffic
in Arms Regulations.
A bill (S. 1863) to authorize the transfer of certain Naval
vessels.
A bill (S. 1864) to enhance the security of the United
States and United States allies.
A bill (S. 1865) to enhance the security of the United
States and United States allies.
A bill (S. 1866) to enhance the security of the United
States and United States allies.
Mr. BOND. I would object to further proceedings en bloc.
The PRESIDING OFFICER. The objection is heard. The bills will be
placed on the calendar.
Mr. BOND. I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mrs. FEINSTEIN. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mrs. FEINSTEIN. Mr. President, is the Senate in morning business?
The PRESIDING OFFICER. The Senate is in morning business.
____________________
SMALL ENGINE POLLUTION
Mrs. FEINSTEIN. Mr. President, I will make my remarks as if in
morning business, but my remarks pertain to the HUD-VA bill, and in
particular to the small engine provision of that bill.
If Members will remember, the Senator from Missouri, in the
Appropriations Committee, placed an environmental rider into the HUD-VA
bill which would prevent California from moving forward with its
regulation to regulate off-road engines under 175 horsepower. The State
has developed a regulatory scheme to do so because these engines were a
substantial part--17 percent--of the mobile source pollution in the
State, and it was believed by the California Air Resources Board that
regulation of these engines could be achieved and, in fact, could
reduce pollutants considerably.
On the floor of the Senate, the Senator from Missouri offered an
amendment to his amendment from committee. The new language which
changed the amendment, in my view, making it better, by only affecting
engines under 50 horsepower. I spoke against his amendment in the
Appropriations Committee. I did not press for a vote on the small
engine amendment which he offered on the floor largely because I
thought we would lose it and that we had a better chance of trying to
remove the language from the bill in conference.
The bill has been preconferenced. Sadly, we have not been able to
remove that language from the bill. I am told today that if I were to
submit the amendment we had prepared which would eliminate the Bond
amendment in its entirety, I would not be allowed a vote on that
amendment. I believe the rationale is because I agreed to go to
conference. I had only because I didn't want to lose on the floor and I
thought I didn't have the votes.
Since that time, a number of States have realized that their
regulatory schemes would also be impacted by this provision. Other
States would be affected because the 1990 amendments to the Clean Air
Act essentially said that California has the ability to regulate these
engines, and other States may then take various components of that
regulation and enact them as their own State law if they so choose.
Since last week, a number of States have weighed in indicating they
have regulatory regimes underway that would be affected and that they
are opposed to the Bond amendment. Nonetheless, we are where we are.
I have come to the floor today simply to speak about why I think this
is so egregious--and I do think it is egregious. I believe it is the
first major setback from the clean air amendments of 1990, and
specifically from the amendments allowing States to regulate air
quality for the protection of their own people. By eliminating this, we
are taking important rights away from the States certain rights and
diminishing the States' ability to take care of their own people.
As the fire chiefs have said to me in a letter, if they waited for
the Federal Government to regulate bedding and upholstery, they would
be still be waiting for that regulation. Instead, the States have taken
it on their own to make those regulations. The people of California are
much safer because of it.
[[Page 29029]]
Let there be no doubt. I believe very strongly that this small engine
provision should be removed from the bill and that we should restore
the States' rights to protect public health under the Clean Air Act.
On the surface, the amendment that was adopted on Wednesday looked
like a substantial improvement. At the time I thought it was an
improvement simply because it dropped from 175 horsepower to 50
horsepower. However, the amendment still blocks all States from
regulating some of the dirtiest engines out there.
The States will lose the ability to reduce pollution from all spark-
ignition engines smaller than 50 horsepower. This includes lawn and
garden equipment, some forklifts, recreational boats, off-road
motorcycles, and all-terrain vehicles. The original small engine
provision would not have affected boats or off-road motorcycles. But
the amendment adopted on Wednesday is broad enough to affect a whole
new group of engines.
This provision will take four California regulations off the books.
My State will lose regulations on lawn and garden equipment,
recreational boats, and off-road motorcycles.
I don't know whether the effects on additional engines were
intentional or not. We told the Senator from Missouri about them and
the language did not change.
But I want to point out another important fact about the amendment
adopted on Wednesday. The language requires the U.S. Environmental
Protection Agency to propose a new national regulation by December 1,
2004. It does not require the EPA to finalize that regulation, ever.
They could propose a regulation and never finalize it. The one
promising part of this amendment guarantees nothing. The States need to
reduce these emissions now.
I want to remind my colleagues just how dirty these engines are. You
will see here that mowing the lawn produces as much pollution as
driving a car for 13 hours. I didn't know that before. I didn't know
that if you mow your lawn for 1 hour it is like driving the automobile
for 13 hours.
This chart shows how long you would have to drive a car to produce as
much pollution as when you operate various types of equipment for one
hour.
In other words, using a weed trimmer for 1 hour produces as much
pollution as driving a car for 8 hours, mowing a lawn for 1 hour
produces as much pollution as driving a car for 13 hours, and operating
a forklift for 1 hour produces as much pollution as driving a car for a
full 17 hours.
Clearly, this is a problem. In 8 hours a person can drive from
Washington to Charleston, SC. Or he can mow the lawn for an hour and
produce just as much pollution. The States need to be able to clean up
these engines.
The small engine provision is bad for the States and for public
health. The compromise from last week did not change the substantive
issues.
The small engine provision is still using an appropriations bill to
make fundamental changes to the Clean Air Act. It is an environmental
rider on the HUD-VA bill. It has had no authorization. It has had no
hearing. It does not belong in this bill.
The amendment from Wednesday still takes a longstanding right away
from the States. States with serious air pollution need to be able to
reduce emissions from these engines. The 1990 amendments to the Clean
Air Act guarantee the States the right to do so. This provision
overturns that right without even going through the proper channels.
Under the compromise, my State alone will lose the right to regulate
over 4 million cars' worth of pollution. That is what is being taken
away--access to 4 million cars' worth of pollution. That means the
State is most likely going to have to tighten regulations on stationary
sources, which is going to mean more expense to major industries in the
State of California. That means job loss in other industries.
I cannot see how building cleaner engines should cost jobs to
individuals at one company when every other company has said they will
be able to build the engines without job loss. Because Briggs &
Stratton does not like one California regulation, every State in the
Union is going to permanently lose the right to reduce pollution from
these engines. States with serious pollution problems need to be able
to reduce these emissions or risk harming public health and losing
transportation funds.
This provision affects every single State, not just California. For
example, I understand that New York has already adopted the California
regulation affecting recreational boat motors. New York will lose that
regulation because of this provision.
Eight southeastern States--Alabama, Florida, Georgia, Kentucky,
Mississippi, North Carolina, South Carolina, and Tennessee--have all
written a letter opposing this provision. The letter clearly states
that any compromise that does not fully restore the State's rights is
unacceptable to those States.
Mr. President, I ask unanimous consent that the November 10 letter
from the Southeastern States Air Resources Managers be printed in the
Record following my remarks.
The PRESIDING OFFICER (Mr. Crapo). Without objection, it is so
ordered.
(See exhibit No. 1.)
Mrs. FEINSTEIN. Thirdly, States still need flexibility to improve air
quality. One size-fits-all solutions just do not work. We should not
force every State to rely on national regulations. National regulations
move too slowly and are often just not strong enough for States with a
lot of pollution.
We have heard a lot about unfunded mandates lately in the Senate. We
have given the States a duty to protect public health. The small engine
provision does not change the States' responsibility but it takes away
a mechanism by which they might comply with this mandate. This
provision, in a sense, creates another unfunded mandate.
The amended provision still creates a very bad precedent. I don't
think one company should be allowed to overturn States' rights under
the Clean Air Act, especially when that company said on their annual
report to the Securities and Exchange Commission on September 11, 2003,
that the disputed regulation would not ``have a material effect on
their financial condition or results of operations, given that
California represents a relatively small percentage of Briggs &
Stratton's engine sales and increased costs will be passed on to
California consumers.''
This is their 10-K, their report to the Securities and Exchange
Commission, from just 2 months ago. Where does the truth really lie? If
California is just a small part of the company's market and the company
will just pass on the costs, why does Briggs and Stratton object to the
California regulation and insist on changing the Clean Air Act? It
makes no sense.
I believe people will pay the necessary costs for cleaner engines. I
believe that people will pay for cleaner lawnmowers when they learn
that you have to drive your car for 13 hours to produce as much
pollution as your lawn mower does in 1 hour.
Every company and every industry needs to do their part to protect
public health. Briggs & Stratton should be no different. We should not
allow them to pass the buck to other industries.
Once again I will quote from a letter from Allen Lloyd, the Chairman
of the California Air Resources Board, about this provision. According
to Mr. Lloyd,
. . . the aggregate impact of the 50 hp [horsepower]
preemption will be 70 tons per day of smog by 2010, the date
by which California's various offroad regulations would have
been fully effective. This tonnage impact is over and above
Federal regulations for the same emission sources and
reflects California's more health-protective rules. For
context, 70 tons per day is equivalent to adding 2.4 million
cars to California roadways . . .
So when the conference committee includes this provision in their
conference report, they are effectively adding 70 tons of pollutants to
California's air each day. The California Air Resources Board has also
said that this provision could well result in the death of more than
300 people per year in California alone.
California already has seven nonattainment areas, more than any other
[[Page 29030]]
State. My State has the worst air quality in the country, and now this
provision is taking away the State's right to regulate some of the
dirtiest engines available. It is a strike at the core of States'
rights under the Clean Air Act.
The small engine provision also threatens our economy. California has
to reduce emissions from these engines to comply with air quality
requirements under the Clean Air Act. Taking away the State's right to
reduce emissions threatens our State Implementation Plan, with serious
economic consequences.
Violating the State's plan will jeopardize $1 billion in
transportation funds per year in Southern California alone. The South
Coast could lose those funds next summer. The South Coast has the worst
air quality in the nation and cannot afford to lose $1 billion per year
in transportation funds.
Statewide, this provision threatens $2.4 billion in transportation
funds. And this is just in California.
So this has huge ramifications for my State and every other State
facing serious pollution. They will all be in a serious situation in
the future when the time comes and they find their hands are tied
because one company did not want to build cleaner engines.
It has become clear that the supporters of the small engine provision
have confused two very different ideas. Just because a group is
concerned about the California regulation on lawn and garden equipment
does not mean they support the small engine provision.
The California Association of Fire Chiefs has expressed important
safety concerns about a specific regulation. But the chiefs have also
clearly said they oppose the small engine provision because of its
affect on States' rights. The Fire Chiefs understand the importance of
state leadership on these issues. To quote the chiefs' November 11
letter in reference to the small engine provision:
We were never asked to comment on this matter, but for the
record, we do not support legislation that would interfere
with a state's ability to protect its own citizens.
Mr. President, I ask unanimous consent that the Fire Chiefs' letter
from November 11 be printed in the Record following my remarks.
The PRESIDING OFFICER. Without objection, it is so ordered.
(See exhibit 2.)
Mrs. FEINSTEIN. Mr. President, I do not quite know what to do. I
would very much like to have a vote on this matter. I have tried to
importune the conferees. I am told the Governor of California, Mr.
Schwarzenegger, now inducted as Governor, has indicated his support for
the removal of this amendment. It is my understanding that a whole
panoply of States oppose this provision.
It is clear to me this is a bad thing. It is clear to me this is
going to set back the cause of clean air. It is clear to me this is
going to impact youngsters and the elderly with asthma and other lung
diseases. It is clear to me that it is going to impact our
transportation dollars. It is clear to me that by 2010, because of one
company, California is going to have deal with 70 additional tons of
smog per day. None of this needs to happen.
I regret that I cannot send an amendment to the desk. I regret I am
not being allowed a vote on the amendment. But this is the wrong thing
to do.
I yield the floor, Mr. President.
Exhibit 1
Southeastern States Air
Resource Managers, Inc.,
November 10, 2003.
Hon. Zell Miller,
Dirksen Senate Office Bldg.,
Washington, DC.
Dear Sen. Miller: Southeastern States Air Resource
Managers, Inc. (SESARM), representing the directors of the
southeastern state air pollution control agencies in Alabama,
Florida, Georgia, Kentucky, Mississippi, North Carolina,
South Carolina, and Tennessee, is writing this letter to
encourage your support of the removal of a position
introduced by Senator Bond in S. 1584, the Fiscal Year 2004
VA, HUD and Independent Agencies Appropriations Bill. The
provision would amend Section 209(e)(1)(A) of the Clean Air
Act to curtail a state's authority to reduce emissions from
diesel and gasoline off-road equipment and engines.
While Senator Bond's proposed provision regarding the off-
road engines apparently was intended to address rules adopted
only in California, it will limit the ability of all states
to solve serious public health-related air quality problems.
Senator Bond's proposal revises a very important provision of
the Clean Air Act which allows states to adopt engine
emission standards more stringent than the federal standards
as long as appropriate federal review processes are followed.
Congress wisely put this provision into the Act to give
states the ability to deal with serious air quality problems
across the country. SESARM opposes the impact of the Bond
proposal on this important provision.
Please note that other compromise amendments which fall
short of fully restoring Section 209(e)(1)(A) are, in our
opinion, unacceptable and will constrain states as discussed
above. SESARM and your state air pollution control agency
would appreciate your support of removal of the Bond
Amendment from S. 1584.
Sincerely,
John E. Hornback,
Executive Director.
____
Exhibit 2
California Fire Chiefs Association,
November 11, 2003.
Sen. Dianne Feinstein,
Hart Senate Office Building,
Washington, DC.
Dear Sen. Feinstein: The California Fire Chiefs Association
(CFCA) has been expressing concerns about the potential fire
hazard posed by catalytic converters that may be required for
certain lawnmowers and other outdoor power equipment. In just
the past few days, out concerns seem to be receiving
significant attention.
After further investigation we have determined that there
were some misunderstandings between CFCA representatives and
the California Air Resources Board (CARB) as it relates to
the regulations.
The fire safety issues we raised need more attention and
require independent assessment before engineering and
production decisions are made. In our most recent discussions
with CARB, they support the idea of an independent study, and
have proposed moving forward with a study, much the same as
what is now underway with catalytic converters being used in
marine applications. We enthusiastically support this idea,
and will be working closely with CARB, the Sate Fire Marshal,
and the US Environmental Protection Agency to ensure that all
fire safety concerns are addressed. We wish to make clear
that we regard fire safety and environmental quality as being
equally important, and wish to make it clear that we support
without reservation the air quality goals of the proposed
requirements. We support the regulation moving forward as we
have received assurances from CARB that our safety concerns
will be addressed through the independent study.
Finally, we understand that as a separate matter, the
Senate is debating the question of whether states are free to
develop safety and environmental standards. We were never
asked to comment on this matter, but for the record, we do
not support legislation that would interfere with a state's
ability to protect its own citizens. To the contrary, we have
had to count on the Sate of California to develop fire safety
standards for upholstered furniture, mattresses and bedding
because the federal government has failed to do so. The
issues of fire safety and air quality as they relate to
outdoor power equipment can be addressed, and I believe that
working closely with CARB we will find a solution that will
provide a high degree of fire safety while maintaining CARB's
goals for air quality.
In closing, allow me to express my personal apologies to
you. We were not aware that you had an interest in this
matter or that we were engaged in anything beyond fire
safety. As you know, we have had our hands full in the past
month. Even so, if we had been aware of your interest, we
would have asked for your help in sorting through these
issues. You have always been there when we've needed your
help. We look forward to moving beyond the current issues and
working with you on higher levels of air quality and fire
safety for the communities of California.
Sincerely,
William J. McCammon,
President,
California Fire Chiefs Association.
The PRESIDING OFFICER. The Senator from Missouri.
Mr. BOND. Mr. President, I have had numerous discussions with the
Senator from California. Obviously, we see these issues very
differently.
Let me point out to my colleagues, this is not something that has
just come up. When we had the committee markup of this bill, the
Senator and I had an opportunity to debate it at that point. An
amendment, not modified, such as the one I presented on the floor last
week, was kept in the bill. Her motion to strike failed 17 to 12.
After that time, we met with the Senator from California and other
concerned Senators to make sure we did not do the things that the
current California Air Resources Board regulation
[[Page 29031]]
would do; that is, cost 22,000 American jobs and put at risk of fire,
burn, and explosion people using small engines, whether they be in a
lawnmower, a leaf blower, a weed eater, or a chain saw. These were the
real problems in the California Air Regulation Board proposal.
Now, when I listened to the Senators, they wanted to make sure, No.
1, they did not affect diesels. I said good point; make sure we cut
diesels. They wanted to make sure it only applied to smaller engines,
and that is why we put the 50 horsepower and smaller engine limitation
in it. They wanted to make sure you could require retrofitting, and we
made it clear it was only for new engines.
Most of all, almost every State wanted to get some form of reduction
of pollution from these small engines, so we crafted an amendment that
made all those changes and specifically directed the EPA to move
forward with a rule. The fastest they can do that rule is that it is to
be proposed by December 1, 2004; and then the EPA is required to move
forward on it. That would be a quicker reduction in emissions than
under CARB, the California Air Resources Board, proposal.
Now, when this measure came to the floor, I had a number of
cosponsors, people who felt very strongly, as do I, about this
amendment, and we debated it on the floor. The Democratic leadership
came to us and said: We do not want to vote on this. We want to accept
it by voice vote. We said: All right, we will cut off the debate,
accept it by voice vote, if that is the last we are going to deal with
it.
Now, today, my colleague from California says she was not a party to
that agreement and she wants a vote on it. Well, I view it as a failure
to live up to that agreement.
Nevertheless, there are a very significant number of Senators on my
side, and I assume on the other side, who would want to weigh in on it,
and some of those Senators are not back. As I said, we have a deadline
this afternoon when we are going to try to take other amendments on
this bill. I said we would not be debating this amendment today because
other Senators have amendments that must come up.
But there is so much misunderstanding about what the Clean Air Act
provides, what CARB has done, and what my amendment would do.
First, the Senator has said, on a number of instances, that every
State loses the right to fight pollution. States can take bits and
pieces of the California ruling and use it in their State.
Well, No. 1, California is the only State that has a narrow exemption
for engines under 175 horsepower that do not affect agriculture and
construction. Obviously, many of these engines that are affected would
affect agriculture and construction. No State can pick and choose and
develop its own regulations from part of the California regulation or
take bits and pieces of the California regulation. No State, on its
own, can go out and regulate these small engines. There was a
presumption in the Clean Air Act that we would have a national
standard.
Now, the EPA has moved forward on regulations on a wide variety of
engines. We are directing them specifically to go after these small
engines and get the proposed rule out within 1 year, to consider job
loss, and to consider the fire hazard of these catalytic converters.
I understand the CARB regulation would not go into effect until 2007.
My colleague from California said we cannot force all States to rely on
national standards. Well, that is what the Clean Air Act does. We want
to make sure the national standards are imposed to give every State the
reduction in air pollution which comes about from implementing the
kinds of changes that were made for ATVs and snowmobiles that do not
require catalytic converters.
At the end of the day, if they cannot get the reductions, then EPA,
which has a national responsibility, can listen to all of these
arguments. Frankly, many of the arguments made by the Senator from
California reflect a completely different understanding than I have on
the science and on the technology involved.
Under these circumstances, I do not think we ought to be exporting
22,000 jobs to the Far East, perhaps China, and posing a significant
fire risk to anybody using small engines.
As I have said before, I use those small engines. When I am using a
chainsaw, I am very aware of the danger of that saw blade. If it had a
catalytic converter-heated engine, at 1,100 degrees, I do not know how
I would do it. I would probably, if I cut down a tree, set the tree on
fire with the catalytic converter.
When we are talking about fire hazards, as I would think anybody in
California would be very much concerned about, a catalytic converter is
a tremendous fire hazard. I will go into that in a moment.
But my colleague said one company, referring to Briggs and Stratton,
should not be allowed to change our air quality rules. Frankly,
California wrote a rule that favors one company, Honda, which
manufactures small engines and has very significant production in the
Far East already.
They could start up just like that because the American companies
would not be able to retool immediately. Honda would capture the
market. I am arguing for the jobs of 5,000 workers in Missouri, 5,101
workers for Briggs & Stratton, and about 2,000 of them work for Briggs
& Stratton; 3,000 of them work for other companies that have part of
this: In Wisconsin, 5,158 jobs; Georgia, 2,542 jobs; Kentucky, 2,198
jobs; Illinois, 2,116 jobs; Alabama, 1,288 jobs.
I am worried about the workers. I have visited those workers. I did
not know the Senator from California was coming to the floor today.
Otherwise, I would have brought out a scroll signed by the workers who
would lose their jobs if this amendment were adopted.
The Senator points out that Briggs & Stratton said it wouldn't cause
them much trouble. Well, they are a multibillion-dollar company. They
can move their production to China as well. I fully expect that they
would. It wouldn't make much of a difference to the shareholders. They
said it wouldn't affect the shareholders, no. But it will affect 22,000
jobs in the United States. That is why this amendment is important.
These arguments and the totally differing view of how this problem
can be addressed should rightly be debated at the national level. The
EPA is directed to move forward, take all the technological
information, take the arguments, listen to the safety concerns, listen
to the cost benefit arguments, and figure out how the Nation can get
cleaner air by further limiting the pollution from these small engines.
If they come down with a modified catalytic converter proposal at the
end of the day, so be it.
But the California fire chiefs were excluded from the negotiations.
The negotiation went on between CARB and Honda. The California fire
chiefs were stunned because they had been assured that there would not
be a problem with the regulation causing fire.
After they saw the CARB rule, the California State fire marshals
wrote a letter saying:
We categorically do not support the CARB proposed
regulation because we believe it will lead to a substantial
increase in residential and wildland fires.
The Senator and the chief of staff from California have had very
direct conversations with representatives of the California fire
chiefs. They must have been very persuasive because now their letter
says:
We are sure that the safety concerns can be addressed.
I think that suggests that there was a great deal of effective
persuasion applied. But they were not the only ones who believed there
was a problem, when you look at the other people who have raised
questions about it. The National Association of State Fire Marshals
remains very concerned that the CARB rule cannot be safely met. The
U.S. Consumer Product Safety Commission expressed concerns over the
potential for burn, fire, or material hazards that remain unaddressed.
The Missouri State fire marshals remain concerned that the CARB rule
creates
[[Page 29032]]
a significant threat to the safety of the people, property, and the
environment. The National Marine Manufacturing Association is concerned
that California's activities create marine safety issues that must be
evaluated further before they are imposed on industry.
There is one place where they can evaluate those concerns and
evaluate the technology and make sure we clean up the air without an
undue cost, a cost in risk of fire and explosion. I was talking with a
fellow in Missouri this weekend at a football game. His neighbor drove
a car with a catalytic converter out into the field, caught the field
on fire. A lot of people are very much concerned, in addition to these
groups, as to the dangerousness of catalytic converters, which can get
up to 1,151 degrees.
In the November 6 letter I received before there was this very
persuasive meeting with the eloquent Senator from California, the
California fire chiefs said:
Earlier this year, in oral and written communications to
the California Air Resources Board, our association expressed
serious concerns about the CARB's plan to require catalytic
converters on lawn mowers and other lawn and garden power
equipment. Firefighters have far too much experience
suppressing fires caused by catalytic converters on
automobiles carelessly parked on combustible grass and
leaves. After this past month of fighting wildland fires, we
are almost too tired to think about catalytic converters on
lawn mowers which, after all, are intended for use on grass.
California does not need yet another way of igniting fires.
That was the November 6 letter sent to me.
Grass ignites at about 500 degrees. Grass clippings ignite at 518
degrees. High efficiency catalytic converters from CARB's own testing
reach temperatures of 1,126 degrees Fahrenheit. We wrote to CARB. I
asked them if they had any safety data, if they had done any studies,
had they looked at alternative methods, had they tried out any of these
small engines with catalytic converters, had they done any tests. We
asked them a whole list of questions that any responsible agency would
be expected to answer. I fully expect the Environmental Protection
Agency to make sure we have a rule that cleans up the environment but
doesn't cost jobs and doesn't increase significantly the risk of fire.
There are many issues we are not going to be able to resolve here
today. I want to see these technology issues debated, worked out on a
prompt schedule, and produced in a resolution by the EPA.
I yield the floor and suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mrs. FEINSTEIN. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
Mr. BOND. I object.
The PRESIDING OFFICER. Objection is heard.
The clerk will continue the call of the roll.
The legislative clerk continued with the call of the roll.
Mr. REID. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. REID. Mr. President, I have been working with the distinguished
Senator from California for more than a day. I am trying to work out
this very sensitive issue dealing with small engines, which has been
talked about at some length.
I am very disappointed that the majority is not going to allow the
Senator from California to have a vote on this amendment. It is too
bad. It happens. It happens too much around here. When there is some
decision made that they may not be able to win the vote, they just
don't give us a vote. I think that is unfortunate.
I have spoken to the Senator from California and, of course,
everybody needs to hear it from her. We are going to take our chances
in conference on this matter. The House has said this should not be in
the bill. The Senator from California, if she wanted to be like too
many people are around here and say if she doesn't get what she wants,
nobody will get anything, could hold up action on this important
legislation that Senator Mikulski has worked on for many months with
the majority.
The only thing I can say is I applaud the Senator from California for
what she has indicated she reasonably might do, and that is not go
forward on this amendment. I think it is too bad.
I have said it before, and I will say it again. I personally think
she is on the right side of this issue. If this matter were brought to
a vote, I think she would win it on the Senate floor. Obviously, we
have been here now for 3\1/2\ hours, and the majority has indicated
they are not going to allow a vote. When this amendment goes down, it
will allow us to move forward with other pieces of this legislation.
I say to my friend from California, it is my understanding that she
has heard the statements that I have made. And as I have indicated
through the Chair to the Senator from California, this happens far too
often here. When it appears there is a chance that we can win a vote,
they don't give us a vote. As a result of that, we are not going to be
able to have a vote. But for the Senator from California, being the
team player she is, we would not be able to go forward on the bill. I
still think the Senator from California and the Senator from Nevada are
members of the conference, and we will do our best in full conference
to see that justice prevails. I will do what I can.
I express my appreciation to the Senator from California for her not
moving forward with the amendment at this time.
Mrs. FEINSTEIN. Mr. President, I thank the Democratic whip for his
concern and his words.
I want to correct a couple of things. The Senator from Missouri
pointed out that catalytic converters are fire hazards. That may be
true with some. But virtually every automobile, every pickup truck,
every sport utility vehicle driving on the roads and highways of
California today is equipped with a catalytic converter. It has been
that way for a substantial period of time. Catalytic converters are
nothing new.
Secondly, I want you to know that Honda has said that they would
increase their U.S. production of these engines even with the
California regulation. So, in other words, there are other companies
manufacturing these engines in the United States that have said they
would adhere to these new regulations and produce cleaner engines.
Thirdly, I want you to know that Briggs & Stratton has already moved
some of its operations to China. I very much doubt that this California
regulation has much to do with it. I am told they have been
manufacturing in China since 1986, and in April of this year they
increased their ownership share of two factories in China from 52
percent to a controlling 90 percent. I am also told that California
regulators have incorporated Briggs & Stratton's own recommendations
into its final rule issued in September. The Air Resources Board
relaxed the regulation's exhaust emissions standard, relying instead on
controlling evaporative emissions, as recommended by Briggs & Stratton.
So I don't know why this is being done. But I will tell you one
thing: everybody who votes to sustain this will be also voting to put
70 more tons of smog into California's skies in 2010. That is how
important this issue is to our State.
I yield the floor.
Mr. REID. Mr. President, it is my understanding that the Senator is
going to withdraw the amendment.
Mrs. FEINSTEIN. I did not send it to the desk.
The PRESIDING OFFICER. The Senate is in morning business at this
time.
Mr. REID. Could the bill be reported?
Mr. BOND. Mr. President, I ask that we go to the bill.
____________________
DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT AND
INDEPENDENT AGENCIES APPROPRIATIONS ACT, 2004--Resumed
The PRESIDING OFFICER. The clerk will state the bill.
The legislative clerk read as follows:
A bill (H.R. 2861) making appropriations for the
Departments of Veterans Affairs and
[[Page 29033]]
Housing and Urban Development, and for sundry independent
agencies, boards, commissions, corporations, and offices for
the fiscal year ending September 30, 2004, and for other
purposes.
Pending:
Bond/Mikulski amendment No. 2150, in the nature of a
substitute.
Clinton amendment No. 2152 (to amendment No. 2150), to
permit the use of funds for the Capital Asset Realignment for
Enhanced Services (CARES) initiative of the Department of
Veterans Affairs for purposes of enhanced services while
limiting the use of funds for the initiative for purposes of
the closure or reduction of services pending a modification
of the initiative to take into account long-term care,
domiciliary care, and mental health services and other
matters.
Mr. REID. Mr. President, I ask unanimous consent that the only
amendments in order on this bill be the Dayton amendment on the
Wellstone Center; Durbin amendment on senior discount; Jeffords
amendment on new source review study; Bingaman sense-of-the-Senate
amendment on DOD smallpox vaccine; Schumer, EPA clean air amendment;
Feingold, VA health care fairs/outreach; Reid-Graham, Iraq prisoners;
Daschle, Agent Orange; and the managers' amendments that are approved
by Senators Mikulski and Bond.
Mr. BOND. Mr. President, I have no objection on this side.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BOND. Mr. President, I appreciate the actions taken by the
distinguished minority whip, the Senator from Nevada, and also the
agreement by the Senator from California to withdraw her amendment.
All I can say about it is, No. 1, we had an agreement, we thought,
with the floor staff when we debated this last week--requested by the
minority floor staff--that there not be a vote because they did not
want a vote. Our condition was we needed to move on to other things. We
would have a brief time schedule. As you can see, there is no way that
we can restart, in the 45 minutes we have left, this entire debate.
I will state that I categorically disagree with the views reached by
the Senator from California. If we are successful in including the
measure in the final VA-HUD amendment, all these issues will be
resolved by the EPA.
Mr. President, we had an oversight. Senator McCain has an amendment
that he was promised the other day. I ask the minority leader if he
would agree to adding that since we told Senator McCain he could bring
his amendment up.
Mr. REID. Yes, I agree that he should be able to do so.
I ask unanimous consent that the McCain amendment be added to the
list.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BOND. Mr. President, we are open for business. I suggest the
absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. BOND. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 2194 to Amendment No. 2150
Mr. BOND. Mr. President, I send an amendment to the desk on behalf of
Senator Reid of Nevada and Senator Graham of Florida, and I ask for its
immediate consideration.
The PRESIDING OFFICER. Is there objection to laying aside the pending
amendment?
Without objection, it is so ordered. The clerk will report.
The legislative clerk read as follows:
The Senator from Missouri [Mr. Bond], for Mr. Reid, for
himself, and Mr. Graham of Florida, proposes an amendment
numbered 2194 to amendment No. 2150.
Mr. BOND. Mr. President, I ask unanimous consent that the reading of
the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
(Purpose: To express the sense of Congress on damages caused by the
regime of Saddam Hussein during the First Gulf War)
On page 125, between lines 7 and 8, insert the following
new section:
Sec. 418. (a) Congress makes the following findings:
(1) During Operation Desert Shield and Operation Desert
Storm (in this section, collectively referred to as the
``First Gulf War''), the regime of Saddam Hussein committed
grave human rights abuses and acts of terrorism against the
people of Iraq and citizens of the United States.
(2) United States citizens who were taken prisoner by the
regime of Saddam Hussein during the First Gulf War were
brutally tortured and forced to endure severe physical trauma
and emotional abuse.
(3) The regime of Saddam Hussein used civilian citizens of
the United States who were working in the Persian Gulf region
before and during the First Gulf War as so-called human
shields, threatening the personal safety and emotional well-
being of such civilians.
(4) Congress has recognized and authorized the right of
United States citizens, including prisoners of war, to hold
terrorist states, such as Iraq during the regime of Saddam
Hussein, liable for injuries caused by such states.
(5) The United States district courts are authorized to
adjudicate cases brought by individuals injured by terrorist
states.
(b) It is the sense of Congress that--
(1) notwithstanding section 1503 of the Emergency Wartime
Supplemental Appropriations Act, 2003 (Public Law 108-11; 117
Stat. 579) and any other provision of law, a citizen of the
United States who was a prisoner of war or who was used by
the regime of Saddam Hussein and by Iraq as a so-called human
shield during the First Gulf War should have the opportunity
to have any claim for damages caused by the regime of Saddam
Hussein and by Iraq incurred by such citizen fully
adjudicated in the appropriate United States district court;
(2) any judgment for such damages awarded to such citizen,
or the family of such citizen, should be fully enforced; and
(3) the Attorney General should enter into negotiations
with each such citizen, or the family of each such citizen,
to develop a fair and reasonable method of providing
compensation for the damages each such citizen incurred,
including using assets of the regime of Saddam Hussein held
by the Government of the United States or any other
appropriate sources to provide such compensation.
Mr. REID. Mr. President, I rise on behalf of myself and Senator
Graham of Florida, and on behalf of 17 brave Americans who were taken
hostage and tortured by Saddam Hussein during the first Gulf War.
I have already spoken in this Chamber about the horrible treatment
these Americans endured. Saddam's evil henchmen violated international
law in the treatment of these war prisoners, and they violated every
law of human decency.
After the war, these prisoners sought justice against Saddam. They
did it not only because he had tortured them in violation of the law,
but also to send a message that would protect other Americans in the
future. And Congress supported their effort. In 1996, Congress amended
the Foreign Sovereign Immunities Act so their case would be able to
proceed.
They won their case in court on its merits because they had the truth
and the law on their side. But now they are in danger of losing the
judgment they legally obtained because they do not have the United
States Government on their side.
The Justice Department intervened to prevent them from collecting
their judgment from seized Iraqi assets. And when this Senate responded
by passing this very same amendment a few weeks ago, the State
Department intervened by seeking to strike the amendment from the
special Iraq-Afghanistan appropriations bill.
In a letter dated October 27, Deputy Secretary of State Armitage
wrote these words:
Under the President's May 7, 2003 Determination . . . any
provision of law that applies to countries that have
supported terrorism was made inapplicable to Iraq.
This is the country we invaded as part of our war on terrorism . . .
yet the President has said that Iraq will not be treated as a nation
that supported terrorists.
I think that is wrong, and my amendment, which is exactly the same as
the one the Senate earlier approved, makes perfectly clear the
longstanding intent of Congress that terrorists who torture U.S.
citizens must be held accountable.
Saddam Hussein was a tyrant who committee horrible atrocities against
his own people and against Americans.
[[Page 29034]]
In fact, many believe that he is behind the continuing attacks on our
American solders. It is beyond my comprehension why these Federal
bureaucrats are now siding with Saddam Hussein and against these former
prisoners of war who suffered at his hands.
These brave heroes are merely seeking to hold Iraq accountable for
its crimes, and deter the torture of any American citizen by a
terrorist state in the future. A civilized world cannot let such crimes
go unpunished. The perpetrators must be held to account.
I urge adoption of this amendment.
Mr. GRAHAM of Florida. Mr. President, I join Senator Reid today in
offering an amendment that would allow a group of 17 prisoners of war
from the first war in Iraq and their families, to collect the damages
that have been awarded to them in a court of law, that are being
blocked by the Bush administration.
Historically, foreign nations and their diplomats have been protected
from lawsuits in the United States, for their actions. However, that
historical protection has been limited in certain instances. In 1996,
Congress amended the Foreign Sovereign Immunities Act to allow American
citizens and families of American citizens to sue nations that have
been found to be ``terrorist states,'' for acts of terrorism such as
torture or taking of hostages. Congress went on to enact the Terrorism
Risk Insurance Act of 2002, which included a provision to allow frozen
assets of terrorist states in U.S. banks to be used to pay court-
awarded damages.
Relying upon this legal framework, 17 of 21 prisoners of war of the
1991 Persian Gulf War and 37 members of their immediate families filed
suit against Iraq. I won't describe the horrific experiences of every
one of these brave men or the unimaginable distress of their families.
But I do want to tell you about the experience of three of these POWs:
LTC Michael Robert; LTC Russell Sanborn; and LTC Craig Berryman, three
service members from Florida. It is important for the Senate and the
American people to understand what they suffered while they were held
in captivity.
These soldiers endured horrendous treatment and are fortunate just to
have survived. LTC H. Michael Roberts was shot down while flying over
Iraq on January 19, 1991, He was able to eject but was immediately
captured when he landed. In captivity, he suffered repeated beatings--
his captors cut his head from repeated blows from their rifle butts and
he was shocked with an electronic prod.
LTC Russell Sanborn's plane was shot down on February 9, 1991, and he
was taken prisoner by a group of Iraqi soldiers. He was brutally beaten
and suffered severe malnutrition. He lost 14 pounds in 26 days. Upon
his release, Russell was diagnosed with parasitic anomalies and hearing
loss.
LTC Craig Berryman's aircraft was shot down on January 28, 1991. In
captivity he survived numerous beatings and torture. As a result of his
abuse in Iraq, Craig has continued to experience health problems.
After having to relive these horrors in court, on July 7, 2003, a
judgment was rendered in their favor and they were awarded compensatory
and punitive damages. The problem is that when they went to collect
their damages against the frozen Iraqi assets held in U.S. banks, the
money was no longer there. That is because on March 20, 2003,
immediately after start of military action against Iraq, President Bush
issued an executive order confiscating Iraq's frozen assets in the
United States and placing them in the Iraq Development Fund for use in
its reconstruction.
The Bush administration has done every thing in its power to
undermine the integrity of this judicial process and to protect the
interests of Iraq over the interests of American former prisoners of
war. On May 22, 2003, the President issued another executive order
which prohibits any judicial action that would seek funds from the
Development Fun for Iraq, or other Iraqi national assets. The Bush
administration went on to interpret the language in the 2003 emergency
war supplemental intended to remove restrictions to providing foreign
assistance to Iraq as a bar attachment of Iraqi foreign asset.
When repeatedly asked about why the administration is standing in the
way of these veterans being paid their court-awarded damages, the White
House spokesman, never answered the question, but reiterated, three
times, that ``there is no amount of money that can truly compensate
these brave men and women for the suffering they went through at the
hands of Saddam Hussein.'' If the Bush White House has their way, there
will, in fact be no amount of money to compensate these brave men and
women despite having proven their case in a court of law.
Earlier this month, Congress approved President Bush's $87 billion
supplemental appropriation request for the occupation and rebuilding of
Iraq. At that time, I raised some significant questions as to our
national priorities. We are facing mounting national debt. While our
roads, bridges, schools, water and sewer lines, and electric grids are
deteriorating, we will be sending billions of dollars to rebuild Iraq.
This is another one of those questions. We are sending money to
rebuild Iraq, but we are turning our back on a judicial decision that
was achieved under laws this body created. We are turning our backs on
the torture inflicted upon these 17 veterans who were taken as
prisoners of war while serving our country.
Mr. President, the costs of war do not end at the borders of Iraq;
veterans will continue to pay them for years to come. I urge my
colleagues to join us in this effort to see this injustice is
rectified. I thank Senator Reid for his leadership on this issue.
Mr. BOND. Mr. President, we are willing to accept the amendment on
this side.
The PRESIDING OFFICER. The Senator from Nevada.
Mr. REID. Mr. President, again this is an amendment that was offered
and adopted earlier. It deals with Americans who were held prisoner of
war in the first gulf war. This is legislation that is directly in
keeping with the sense of the last amendment that was adopted. Senator
Graham feels strongly about this issue, as do I. I ask that the Senate
approve the amendment.
The PRESIDING OFFICER. Is there further debate?
If not, the question is on agreeing to amendment No. 2194.
The amendment (No. 2194) was agreed to.
Mr. REID. I move to reconsider the vote.
Mr. BOND. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Mr. BOND. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. McCONNELL. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. McCONNELL. I ask unanimous consent that I be permitted to speak
as in morning business for 10 minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.
(The remarks of Mr. McConnell are printed in today's Record under
``Morning Business.'')
Mr. McCONNELL. I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. DURBIN. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. DURBIN. Mr. President, are we on the VA-HUD appropriations bill?
The PRESIDING OFFICER. We are.
Mr. DURBIN. It is my understanding that at 4:30 we are going to move
to the FAA reauthorization bill. Understanding that deadline faces us,
with the approval of the chairman of the subcommittee--I hope to have
his attention before I make this request--if I might ask the Senator
from Missouri, would it be acceptable for me to divide the time between
now and 4:30 so that
[[Page 29035]]
I would use 15 minutes and then yield to Senator Dayton for 15 minutes,
who also has an amendment to offer? That way, we would reach the 4:30
deadline by dividing the time equally. If that meets with the approval
of the chairman of the subcommittee, I would like to make a unanimous
consent request along those lines.
Mr. BOND. Mr. President, to respond to my good friend, No. 1, we are
ready to accept his amendment. If we could have some more time to
handle other business, I would like to. If, perhaps, the Senator--each
Senator could take 5 minutes or 10 minutes?
Mr. DURBIN. Let me thank the chairman for accepting my amendment. I
will take 5 minutes and that is all. I would like to give 15 minutes,
if it is acceptable, to Senator Dayton to offer his amendment, and then
I think that leaves you a balance of 10 minutes before 4:30.
Let me say I accept the offer of the Senator from Missouri. I will
speak for 5 minutes.
Mr. BOND. I thank the Chair.
Amendment No. 2195
Mr. DURBIN. Mr. President, I send an amendment to the desk.
The PRESIDING OFFICER (Mr. CHAMBLISS). Without objection, the pending
amendment is set aside. The clerk will report.
The legislative clerk read as follows:
The Senator from Illinois [Mr. Durbin], for himself Ms.
Snowe, Mr. Jeffords, Mrs. Boxer, Mr. Lautenberg, Ms.
Cantwell, and Mr. Lieberman, proposes an amendment numbered
2195.
Mr. DURBIN. I ask unanimous consent the reading of the amendment be
dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
At the appropriate place insert the following:
None of the funds provided in this Act may be expended to
apply, in a numerical estimate of the benefits of an agency
action prepared pursuant to Executive Order 12866 or section
812 of the Clean Air Act, monetary values for adult premature
mortality that differ based on the age of the adult.
Mr. DURBIN. Mr. President, I ask the following Senators be added as
cosponsors of this amendment: Senators Snowe, Jeffords, Boxer,
Lautenberg, Cantwell, and Lieberman.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. DURBIN. In 5 minutes, I will try to describe very briefly what
this amendment does.
This amendment will stop the Environmental Protection Agency and
other agencies funded in this bill from using the discriminatory method
known as the senior death discount. Right now, heart disease, cancer,
and strokes are the leading causes of death of people over 65.
According to CDC, air pollution can be particularly devastating to the
health of seniors.
The EPA should be creating regulations to protect everybody. However,
now we are in the cost-benefit era, and that means each regulation has
to be costed out. In other words, we must determine the burden
regulations have on the private sector of our economy, including what
will it cost them. We must also determine the benefit regulations have
for all Americans.
In order to reach the proper evaluation of any regulation, you have
to determine the cost of the harm that is being done. That is why this
amendment is being offered.
Right now, the EPA is discounting the lives of senior citizens. You
may have seen this ad in magazines and newspapers showing this forlorn
senior. This lady has been told that since she is over the age of 70,
she is only worth 63 percent of any other person, say someone age 69.
You can understand her sadness, and a sadness that might be shared,
incidentally, by some 19 Senators who are 70 years old or older. Try to
tell these Senators they are worth only two-thirds of those younger,
and you are in for a fight--and rightly so. Their lives are as
important to them and to our Nation as anyone else's life.
We need to try to establish the cost to America in honest terms, to
determine, for example, the real cost of the regulation relating to
heavy diesel equipment, and not say senior citizens are worth less
today than others.
I ask unanimous consent that a letter in support of my amendment from
the AARP be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
AARP,
Washington, DC, November 14, 2003.
Hon. Richard J. Durbin,
Senate Dirksen Office Building,
U.S. Senate, Washington, DC.
Dear Senator Durbin: AARP commends you for your efforts to
amend H.R. 2861, the Veterans Affairs and Housing and Urban
Development and Independent Agencies Appropriations bill for
Fiscal Year 2004, to prohibit the use of funds to ``apply
numerical values for adult premature mortality that differ
based on the age of the adult in a numerical estimate of the
costs and benefits of an agency action. . . .'' We urge that
you continue your efforts as the bill is folded into an
omnibus appropriations measure.
AARP submitted comments in May to the Office of Management
and Budget in response to its Draft 2003 Report to Congress
on the Costs and Benefits of Federal Regulations. In them, we
expressed our deep concerns regarding the arbitrary 37
percent discount to the life value of adults aged 70 and over
incorporated by the Environmental Protection Agency in its
cost-benefit analysis of the Administration's Clear Skies
Initiative. We noted that the discount lacked a sound
scientific basis, and we voiced concerns regarding its
ultimate impact not only on older persons, but on the rest of
the population as well.
OMB's Office of Information and Regulatory Affairs
subsequently called upon EPA to discontinue use of the age
adjustment factor cited above, and advised other federal
agency analysts that they should not use it either. At the
same time, the agency appeared to encourage other
methodologies that might assign monetary values for adult
premature mortality that differ based on the age of the
adult. Application of age-related analytical methodologies or
others involving population subgroupings--particularly when
monetary assessments are assigned to life value--hold great
risks. We are concerned that there may be insufficient
science to justify such action.
Again, AARP strongly supports your efforts as well as those
of Representative Thomas Allen, to ensure that the lives of
older people not be devalued, and that needed protections not
be shortchanged by the application of biased analytical
approaches. We urge your colleagues in conference to do the
same.
Should you have any questions, please contact me or have
your staff contact Jo Reed or Tim Gearan in our Federal
Affairs office at 202-434-3800.
Sincerely,
Michael Naylor,
Director of Advocacy.
Mr. DURBIN. What we see, and I will summarize, is an effort by some
to discount the lives of senior citizens in America when judging the
impact of public health regulations. That has to come to an end. We
have to make certain the policy we follow in this country, the policy
that is being articulated by John Graham, the head of the OMB
regulatory office, is one that counts senior citizens the same as any
other citizen.
Some of the statements made by Mr. Graham are troubling. But with
this statement, and the amendment we have offered today, which is
identical to the one offered by the House of Representatives, this bill
will say once and for all that senior death discounting has to come to
an end.
I ask unanimous consent that a list of supporting groups be printed
in the Record at the conclusion of my remarks.
The PRESIDING OFFICER. Without objection, it is so ordered.
(See exhibit 1.)
Mr. DURBIN. To reiterate, this amendment would stop the EPA and other
agencies funded in this bill from using a discriminatory method of
regulatory analysis known as the senior death discount.
Heart disease, cancer, and strokes are the leading causes of death
for people age 65 and older. According to the CDC, air pollution can be
devastating to the healthiest Americans, but can be deadly for senior
citizens and other vulnerable populations with these diseases. The EPA
should be creating regulations that maximize health protections for
everyone, especially older Americans.
However, instead of maximizing the benefits for everyone, the
regulatory analysis is being manipulated in a way that makes seniors'
lives, and the lives of other vulnerable populations, worth less than
the lives of other Americans.
[[Page 29036]]
This practice, commonly known as the senior death discount, devalues
the lives of almost 30 million Americans who are over the age of 70.
To give you a sense of how this works, when the EPA develops
environmental regulations, it must evaluate the costs and benefits of
multiple regulatory alternatives. As part of the calculation of
benefits, the EPA places a dollar amount on each life that can be saved
by implementing each alternative. The EPA often makes a determination
about which regulatory alternative to adopt based on the comparison of
the benefits and costs.
Historically, the EPA valued all lives equally by using the same
dollar amount for every potential life saved. But now the OMB is
encouraging agencies to base the value of a life on the age of a
person. In many cases, when discounting was applied, the life of each
person over the age of 70 was valued at 37 percent less than the life
of a younger person. In other cases, each year people aged, their lives
were considered to be worth less--leading to some lives being worth a
de minimus amount. In still other cases, the lives of people with
illnesses or other health conditions were further devalued.
The use of the senior death discount has played a significant role in
some very important environmental policies. In a rule to cut emissions
from heavy diesel equipment, the EPA not only lowered the value of
saving the lives of seniors, but also for children and the disabled. In
the end, discounting calculations shrank the benefits from over $81
billion to just over $12 billion.
In a regulatory proposal to control air pollution from snowmobiles,
the benefits were originally calculated to be approximately $77 billion
by 2030. However, the health benefits dropped to only $8.8 billion--
half of this decrease was due to the senior death discount and half was
due to selective use of scientific studies limiting the amount of
people who were affected. Applying the senior death discount in this
instance made certain regulatory alternatives less appealing, and the
rule was ultimately weakened as a result.
Some of my colleagues may wonder whether this amendment is still
necessary, given that former EPA administrator Christine Todd Whitman
said the agency would no longer discount the lives of seniors by 37
percent when calculating the benefits of regulatory policies. However,
there is no guarantee that the new administrator or other agencies will
follow this policy.
In addition, Whitman's remarks did not apply to other forms of
discounting, which continue to be used. These other forms of
discounting also reduce the benefits of important regulatory policies.
Besides seniors, vulnerable populations, such as children and those
with chronic illnesses and disabilities, are affected when these forms
of discounting are used.
John Graham, the head of the OMB regulatory office, has backed away
from his support of the 37 percent discount rate for seniors. However,
as recently as June 16, he is still insisting that the value of saving
lives should depend on a person's age, and he is still pushing agencies
to use forms of discounting.
It seems that the end goal is to whittle down the benefits, until
they are so close to the costs that regulations will be difficult to
justify. So unless we take action today, it appears that the lives of
vulnerable Americans will continue to be devalued.
The House already passed Congressman Allen's amendment to the House
VA-HUD bill, which is similar to my amendment. Members from both sides
of the aisle spoke in favor of the amendment and it was accepted
unanimously. It's now time for the Senate to act.
Twenty-two national organizations, including AARP and a host of
environmental and faith-based organizations, support this amendment.
Our Nation's regulatory system must use methods of analysis that
produce regulations that will fairly protect all Americans from the
effects of air pollution, toxic waste and other dangerous substances in
our environment. We cannot afford to back away from decades of
environmental laws that have improved the quality of life for all of
us.
Exhibit 1
The following organizations support stopping the Senior
Death Discount: 20/20 Vision; American Association of Retired
Persons; American Baptist Churches USA; American Lung
Association; Breakthrough Technologies Institute; Christian
Church Disciples of Christ; Church Women United; Clean Air
Task Force; Clear The Air; Coalition on the Environment and
Jewish Life (COEJL); League of Conservation Voters; Natural
Resources Defense Council; National Environmental Trust; OMB
Watch; Physicians for Social Responsibility; Presbyterian
Church (USA), Washington Office; Sierra Club; Sisters of
Mercy of the Americas, Institute Leadership Team; United
Church of Christ Justice and Witness Ministries; United
Methodist Church General Board of Church and Society; United
States Public Interest Research Group; Unitarian Universalist
Association of Congregations.
Mr. DURBIN. I thank the chairman for accepting the amendment. I ask
the chairman if at this point we could move the adoption, but I defer
to him first.
Mr. BOND. As I indicated, we are ready to accept the amendment by the
Senator from Illinois by voice vote.
(At the request of Mr. Daschle, the following statement was ordered
to be printed in the Record.)
Mr. LIEBERMAN. Mr. President, I support this important
amendment, to put a halt to the Bush administration's disrespectful and
disturbing treatment of the lives of America's seniors in setting
environmental policy. It is unconscionable that the administration
continues to push agencies to evaluate pollution-control proposals on
the basis of the age of the individuals who are protected. Judging
people as less worth protecting based on their age--and to do so for
the benefit of polluters--is preposterous and wrong.
Despite statements by administration officials aimed to quiet protest
over the ``senior death discount'' factor --a factor used by the
Environmental Protection Agency in recent regulatory cost-benefit
analyses that literally devalues the lives of Americans 70 and older--
the administration continues to push agencies to apply economic
techniques for evaluating pollution-control proposals on the basis of
the life expectancies of the individuals protected, slanting the
analysis against the elderly who, of course, have fewer years left.
This effort by the administration reinforces the broader bias against
the environment inherent in economic cost-benefit analysis, which can
give short shrift to unquantifiable values of human health and a strong
ecology, while overestimating the economic costs to polluters. By
lowering the calculated economic benefit of protecting the elderly,
these techniques will understate the apparent benefits of environmental
protection, because the old are among the most vulnerable to
respiratory and other diseases caused by pollution. The intended result
is to block tougher environmental protections.
Selling out America's grandparents at a discount for the benefit of
polluters is discriminatory and wrong. I am pleased to support this
amendment to put a halt to this repugnant practice.
The PRESIDING OFFICER. Is there further debate? If not, the question
is on agreeing to the amendment.
The amendment (No. 2195) was agreed to.
Mr. BOND. Mr. President, I move to reconsider the vote.
Mr. DURBIN. I move to lay that motion on the table.
The motion to lay on the table was agreed.
The PRESIDING OFFICER. The Senator from Minnesota.
Mr. DAYTON. What is the pending business, Mr. President?
The PRESIDING OFFICER. The pending business is the Clinton amendment.
Amendment No. 2193
Mr. DAYTON. I ask unanimous consent the amendment be set aside and
that I be allowed to offer amendment No. 2193.
The PRESIDING OFFICER. Is there objection? Without objection, it is
so ordered. The clerk will report.
The legislative clerk read as follows:
[[Page 29037]]
The Senator from Minnesota [Mr. Dayton] proposes an
amendment numbered 2193.
Mr. DAYTON. I ask unanimous consent the reading of the amendment be
dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
(Purpose: To fully fund the Paul and Sheila Wellstone Center for
Community Building)
On page 58, line 21, strike ``$1,112,130,000'' and insert
``$1,111,030,000''.
On page 125, between lines 7 and 8, insert the following:
Sec. 418. There shall be made available $1,100,000 to the
Secretary of Housing and Urban Development for the purposes
of making the grant authorized under section 3 of the Paul
and Sheila Wellstone Center for Community Building Act.
Mr. DAYTON. Mr. President, this amendment will provide $1.1 million
in funding for the Paul and Sheila Wellstone Center for Community
Building at the Neighborhood House in St. Paul, MN. It is funding for
the completion of a commitment which Congress made last year as a
memorial for the late Senator Paul Wellstone, my colleague and my
friend, who lost his life in an airplane crash last October along with
his wife Sheila, his daughter Marcia, and three staff members and two
pilots.
This is a very emotional subject for me at an emotional time, so I
ask my colleagues for their forbearance. We just passed the first
anniversary of that terrible day Paul and Sheila and the others were
lost forever. One of Minnesota's greatest Senators and most
passionately loved and admired political leaders--not unanimous, but
the most widely shared and deeply felt connection that I have ever seen
in my lifetime between a political figure and the people of Minnesota.
He lost his life while flying to northern Minnesota for the funeral
of the father of a State legislator, up on the Iron Range of Minnesota
where a funeral is community. He knew, even though he had other
commitments elsewhere, and even though Senator Ted Kennedy had
graciously come to Minnesota to the metropolitan area on his behalf
before the elections, which were just a few days away--those events
were important, but Paul knew the family of the deceased would be
helped in their grief by his presence. The community up there would be
honored by his presence as a United States Senator, so he left his
campaign schedule and the media market to go worship and pray and mourn
with those others, friends and family and relatives, fellow citizens,
as their U.S. Senator and as their friend.
That is what all of us do all the time in our jobs--Republicans,
Democrats, liberals, conservatives, Senators here, Congressmen and
Congresswomen, across the country--we drive, and if there is not time
we charter small planes into small airports in our States. That day
Paul's plane didn't land on the runway. It crashed perpendicular to it
2 miles away into a Minnesota forest and peat bog and caught on fire
and burned eight people.
Tomorrow--another reason this is an emotional topic for all of
Minnesota--we are told in the news reports today, the National
Transportation Safety Board will hold a hearing to pass final judgment
on the causes of that crash. Whatever they were, they will not bring
Paul and Sheila and Marcia and the others back. The circumstances, as
they are reported, are unofficial, so I will not comment on them here,
but as they report them in the press, it will make it, if anything,
more difficult, more painful, more awful an accident that didn't have
to happen.
Paul Wellstone lost his life as a U.S. Senator in service of his
country.
As the late Senator John Heinz, Republican from Pennsylvania, lost
his life several years ago in a small plane crash in the service of his
country; as other Senators, Members of the House, Governors, Cabinet
Secretaries, and public officials have lost their lives in airplane
crashes or other accidents in the performance of their official duties
in the service of their country; and when brave men and women lose
their lives in the service of their country, I call that man or woman a
true American hero. If they are wearing the service uniform of our
Armed Forces in Iraq, Afghanistan, or elsewhere around the world, they
are true American heroes. If they are wounded or maimed when serving in
those awful conditions, they are American heroes.
I have been to funerals for Minnesotans who lost their lives in
training exercises in this country and overseas. They gave their lives
and paid the ultimate price in the service of their country. They are
true American heroes.
Paul Wellstone is a true American hero. He would have been under any
circumstances losing his life, but he is even more so, and forever, in
my judgment. That is why it is so fitting and appropriate--and I was
glad that I thought it only appropriate--that the Senate last year did
what I would want to do for any colleague of this body or of the House
who lost his or her life under similar--or any--circumstances in the
performance of his or her official duties--to find a suitable memorial,
a fitting tribute to that American hero.
The surviving members of the Wellstone family--two sons, David and
Mark Wellstone--through their own deliberations, identified this
project and St. Paul, MN, where especially people from other
countries--recent immigrants to the United States--in need of all sorts
of assistance but who want to become part of this country, who want to
have a chance to participate and raise their kids as American citizens
and become the next Paul and Sheila Wellstone, so they can get the help
they need and give a helping hand as Paul and Sheila would have given
themselves.
We authorized $10 million. The House didn't have anything in there on
that matter. But we went to the President of the United States. He was
gracious enough to assist, and we got the funding provided in that
bill--the authorization of $10 million. President Bush invited the
Minnesota congressional delegation and members of the Wellstone family
to the Oval Office last December for the signing ceremony. He just
couldn't have been more extraordinary in his graciousness to the
surviving members of Paul and Sheila's families. He took the time and
extended his schedule to be with us, to share his condolences and make
it a truly memorable occasion for the members of that family. I know
they were enormously grateful, as I was to the President for his
compassion and for his humanity.
When we got to the appropriations for this fiscal year, it was
delayed. The bill that finally came forward provided $8.9 million for
the $10 million project that was authorized. I am hopeful the balance
of that commitment as a memorial to our former colleague will be part
of the committee bill that is coming before us today.
I was disappointed there was nothing provided in it, and there is
nothing provided in the House bill. I pursued this matter and indicated
my intention to offer this amendment for $1.1 million--that is an ``m''
for million, not ``b'' for billion--$1.1 million to complete the
commitment that was made--the authorization to commit the money the
President authorized by his own signature into law. I was told via my
staff and in talking with committee staff that if this amendment were
agreed to by the Senate, then it would be taken out of some other
project for the people of Minnesota--from the people in Roseville, MN,
in the northwestern part of the State who were victims of flooding last
spring, who need help in relocating, who are still rebuilding and
trying to reconfigure the locks and dams in that river so they don't
flood again--and from all sorts of other projects around the State in
counties that need sewer systems so people can have safe drinking
water, so the kids don't get sick.
I have to share with the people of Minnesota a confession. They think
when they send us out here, we each have a vote; since we are all
taxpayers, and since Minnesotans' taxes as a relatively high income
State are proportionate to others that send tax money to this great
Federal Government, we get back at least our fair proportionate share.
But it doesn't work that way in this legislation. It doesn't work that
way. We get the appropriations and those who have more seniority, who
have been here longer, have more influence, connections, whatever--it
doesn't
[[Page 29038]]
come out the same. If you were to rank Minnesota with other States, you
would find that we give more than our share in contributions to this
great center of our Nation and we get in return relatively less than
most other States.
I find it deeply offending that I am essentially being told,
forewarned, threatened, that if I bring this amendment forward and it
passes the Senate, it is going to come out of some other Minnesota
project. I appreciate at least being told that so I know what I am
getting into here.
So much happens in these conference committees. It is just a sneak
attack behind closed doors. In Minnesota, we have an open meeting law
where you can't go behind closed doors with three or four members of
the elected body and conduct public business in private somewhere. That
law is a foreign concept here on Capitol Hill; it happens all the time.
People go behind closed doors and members of conference committees
can't even get into the conference room to find out what is going on.
They have a bill coming up next for reauthorizing the FAA. Somebody
in that conference committee stuck something in the bill that hurts the
people of Minnesota--thousands of people in and around airports in my
State--no hearings, no deliberation, no vote in the Senate, no vote in
the House, just put in by Senators who don't represent the people of
Minnesota.
The conference committees are great places where you can put
something in there and you can vote on it. I had an amendment to the
Medicare bill which is coming up, and it is going to come out of
committee, I am told and I am quite sure. I have an amendment that
would require Members of Congress to receive prescription drug coverage
that is the same and is no better than seniors of America and other
Medicare beneficiaries receive. Boy, it passed the Senate by a vote of
93 to 3. That is pretty overwhelming support.
I thought: My goodness gracious, the Senate is going to back this one
because the people of America would back that one. I know from my
experience in Minnesota that we sure agree with that concept and
principle--that Members of Congress should receive a prescription drug
benefit no better than we vote for senior citizens. But then I read an
article the next week stating that many of those who voted for it had
been told they could do so because it was guaranteed to die in the
conference committee and it would not become part of the law.
I respect those three who voted against my amendment because they
weren't going to take that escape route and say, Oh, I voted for that
amendment, and to my great dismay it is not going to get conference
support.
So Members of Congress can continue to get drug coverage twice as
good or more or better than those senior citizens of America.
In this case, before this bill goes into the conference committee, I
urge my colleagues--and I will ask for the yeas and nays on this
amendment--if they don't particularly think enough of the situation,
and circumstances, and the memory of Paul Wellstone, then vote against
it. I will ask the conferees, if it passes and goes to conference and
is going to come out of some other Minnesota project, to drop the
amendment because I know what Paul would say. I know what he would want
us to do. That would be to do what is best for all the people of
Minnesota. This project is true to the people of Minnesota. But the
last thing Paul Wellstone would want to do is take $1.1 million away
from people who are suffering and need help and give it to other people
in Minnesota in his memory. That would be the antithesis of what is
good, for what he believed in, and what he spoke for on this floor. It
would be far preferable if the Senate said forthrightly, that is the
view of the Members or the powers that be, that $1.1 million of the $10
million authorized last year is too much to bear, too much money, and
it is just not available in the budget for the people of Minnesota, for
the State of Minnesota. Unlike other States, we would not have this
discussion on the Senate floor--it would be $1.1 million for anything
any Member wanted.
If they cannot find it, won't find it, do not want to find it, forget
it. But tell the American people that. Tell the people of Minnesota
that. Don't take it out of somewhere else in Minnesota for a project
that is underfunded to begin with, that is needed to save people's
lives, that makes their communities stronger. They elected the two
Senators to do just as much as any other State in this Nation. Tell
them that straight, and then Paul will wait. He should not have to, but
he will.
The Senate should do the right thing, pass this amendment, put it in
the bill, and instruct the conferees to come out of the conference
report with the money for the Wellstone Community Center and every
project in Minnesota, and not sell anybody out behind closed doors,
behind our backs, and I will once again respect this body, the Senate
of the United States.
I yield the floor.
The PRESIDING OFFICER. The Senator from Missouri.
Mr. BOND. Mr. President, I know the Senator from Minnesota feels
strongly about this; both Senators do.
I ask that Senator Coleman be added as a cosponsor.
We are willing to accept the amendment. I ask that it be accepted by
voice vote.
Mr. DAYTON. I object. I ask for the yeas and nays.
The PRESIDING OFFICER. Does the Senator object to the adding of a
cosponsor?
Mr. DAYTON. The Senator does not object to that.
The PRESIDING OFFICER. Without objection, the Senator is added as a
cosponsor.
Mr. DAYTON. I repeat my request for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
At this moment, there is not a sufficient second.
Mr. DAYTON. I will restate my request when there is a sufficient
second. What number of Members constitute a sufficient number?
Mr. REID. I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. BOND. I ask unanimous consent that the order for the quorum call
be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BOND. Mr. President, I ask that the pending Dayton-Coleman
amendment be set aside.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 2152 Withdrawn
Mr. BOND. Mr. President, I ask that the Clinton-Enzi amendment on
which there is a colloquy be withdrawn.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment (No. 2152) was withdrawn.
Amendment No. 2196 to Amendment No. 2150
Mr. BOND. Mr. President, I send to the desk an amendment on behalf of
Senator Daschle relating to an agreement with the Institute of Medicine
and the National Academy of Sciences to develop epidemiological studies
on Vietnam veterans with respect to Agent Orange, and I ask for its
immediate consideration.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:
The Senator from Missouri [Mr. Bond], for Mr. Daschle,
proposes an amendment numbered 2196 to amendment No. 2150.
Mr. BOND. Mr. President, I ask unanimous consent that the reading of
the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
(Purpose: To provide for epidemiological studies on Vietnam veterans
exposed to Agent Orange and other herbicides used in Vietnam)
At the end of title I, add the following:
Sec. 116. Not later than 120 days after the date of the
enactment of this Act, the Secretary of Veterans Affairs
shall enter into an agreement with the Institute of Medicine
of the National Academy of Sciences under which agreement the
Institute of Medicine shall develop and evaluate
epidemiological studies on Vietnam veterans in accordance
with the recommendations of the 2003 National Academy of
Sciences report entitled
[[Page 29039]]
``Characterizing Exposure of Veterans to Agent Orange and
Other Herbicides Used in Vietnam: Interim Findings and
Recommendations''.
Mr. BOND. There are no objections on either side. I ask that it be
agreed to by voice vote.
The PRESIDING OFFICER. Without objection, it is so ordered.
The question is on agreeing to the amendment.
The amendment (No. 2196) was agreed to.
Mr. BOND. I move to reconsider the vote.
Mr. LOTT. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Amendment No. 2197 to Amendment No. 2150
Mr. BOND. I send an amendment to the desk on behalf of Senator
Feingold.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:
The Senator from Missouri [Mr. Bond, for Mr. Feingold,
proposes an amendment numbered 2197 to amendment No. 2150.
Mr. BOND. Mr. President, I ask unanimous consent that the reading of
the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
(Purpose: To prohibit the use of funds by the Department of Veterans
Affairs to implement policies that prohibit the Veterans Integrated
Service Networks from conducting outreach or marketing to enroll new
veterans in such Networks)
At the end of title I, insert the following:
Sec. 116. No funds appropriated or otherwise made available
for the Department of Veterans Affairs by this Act or any
other Act may be obligated or expended to implement the
policy contained in the memorandum of the Department of
Veterans Affairs dated July 18, 2002, from the Deputy Under
Secretary for Health for Operations and Management with the
subject ``Status of VHA Enrollment and Associated Issues'' or
any other policy prohibiting the Directors of the Veterans
Integrated Service Networks (VISNs) from conducting outreach
or marketing to enroll new veterans within their Networks.
Mr. FEINGOLD. Mr. President, I want to thank the chairman and the
ranking member of the subcommittee for agreeing to accept my amendment
pertaining to veterans outreach programs. My amendment would restore a
valuable--and statutorily mandated--service to our nation's veterans
and their families.
In July 2002, the Department of Veterans Affairs Deputy Under
Secretary for Health for Operations and Management sent a memo to
Veterans Integrated Service Network Directors ordering them to ``ensure
that no marketing activities to enroll new veterans occur within
[their] networks.''
This memo cited an increased demand for VA health care services as
the reason for this change in policy. While it is clear that more
funding should be provided for VA health care and other programs and I
strongly support doing so it is inappropriate for the VA to institute a
policy to stop making veterans aware of the health care services for
which they may be eligible.
I joined with a number of our colleagues last year in sending a
letter to the President asking that this policy be immediately
reversed. I regret that the VA's reply indicated that the Secretary of
Veterans Affairs stands by this policy, which remains in effect.
My amendment would prohibit the VA from using Federal funds to
enforce this policy, or any other policy prohibiting regional health
care directors from conducting outreach to enroll new veterans into the
VA health care system. A similar amendment offered earlier this year by
Congressmen Sanders and Kanjorski was accepted to the House version of
the underlying VA-HUD appropriations bill.
I have long been concerned that tens of thousands of our veterans are
unaware of Federal health care and other benefits for which they may be
eligible. We can and should do more to educate our veterans and their
families about these benefits, and to provide adequate funding to
ensure that all veterans who wish to take advantage of their benefits
are able to do so. Halting health care marketing activities is not the
answer. Our brave veterans have earned these benefits. The Federal
department that is charged with advocating for and providing benefits
to our veterans should not be allowed to continue to restrict health
care outreach activities.
This is especially important as we welcome home a new generation of
veterans who are serving in Iraq and in the fight against terrorism.
Today's soldiers, sailors, airmen, and marines are tomorrow's veterans.
These men and women selflessly put their lives on the line to protect
our freedoms, as have countless military personnel before them. We must
ensure that their service and sacrifice, which is much lauded during
times of conflict, is not forgotten once the battles have ended and our
troops have come home.
Our veterans and their families have made great personal sacrifices
to protect our freedoms. We owe them a great debt of gratitude. Making
sure that our veterans know about the benefits that they have earned is
an important first step in starting to repay this debt.
Again, I thank the chairman and the ranking member of the
subcommittee for working with me on this important issue.
Mr. BOND. Mr. President, this is an amendment with respect to VA
marketing. It is acceptable on both sides. I ask that be it be agreed
to on a voice vote.
The PRESIDING OFFICER. The question is on agreeing to the amendment.
The amendment (No. 2197) was agreed to.
Mr. BOND. I move to reconsider the vote.
Mr. REID. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Amendment No. 2198 to Amendment No. 2150
Mr. BOND. Mr. President, because we had done a list of amendments and
we neglected to include an amendment by Senators Cantwell, Carper,
Brownback, Hagel, and others with respect to section 8 public housing,
moving to work demonstration agreements, I ask unanimous consent that
this be acceptable and I send the amendment to the desk and ask for its
immediate consideration.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:
The Senator from Missouri [Mr. Bond], for Ms. Cantwell, for
herself, Mr. Carper, Mr. Brownback, Mr. Hagel, Mr. Roberts,
Mr. Nelson of Nebraska, Mrs. Murray, and Mr. DeWine, proposes
an amendment numbered 2198 to amendment No. 2150.
Mr. BOND. Mr. President, I ask unanimous consent that the reading of
the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
(Purpose: To require a study of the Moving to Work demonstration
program, and for other purposes)
On page 125, between lines 7 and 8, insert the following:
SEC. 418. EXTENSION OF CERTAIN PUBLIC HOUSING/SECTION 8
MOVING TO WORK DEMONSTRATION AGREEMENTS.
(a) Extension.--The Secretary of Housing and Urban
Development shall extend the term of the Moving to Work
Demonstration Agreement entered into between a public housing
agency and the Secretary under section 204, title V, of the
Omnibus Consolidated Rescissions and Appropriations Act of
1996 (Pub. L. 104-134, April 26, 1996) if--
(1) the public housing agency requests such extension in
writing;
(2) the public housing agency is not at the time of such
request for extension in default under its Moving to Work
Demonstration Agreement; and
(3) the Moving to Work Demonstration Agreement to be
extended would otherwise expire on or before December 31,
2004.
(b) Terms.--Unless the Secretary of Housing and Urban
Development and the public housing agency otherwise agree,
the extension under subsection (a) shall be upon the
identical terms and conditions set forth in the extending
agency's existing Moving to Work Demonstration Agreement,
except that for each public housing agency that has been or
will be granted an extension to its original Moving to Work
agreement, the Secretary shall require that data be collected
so that the effect of Moving to Work policy changes on
residents can be measured.
(c) Extension Period.--The extension under subsection (a)
shall be for such period
[[Page 29040]]
as is requested by the public housing agency, not to exceed 3
years from the date of expiration of the extending agency's
existing Moving to Work Demonstration Agreement.
(d) Breach of Agreement.--Nothing contained in this section
shall limit the authority of the Secretary of Housing and
Urban Development to terminate any Moving to Work
Demonstration Agreement of a public housing agency if the
public housing agency is in breach of the provisions of such
agreement.
SEC. 419. STUDY OF MOVING TO WORK PROGRAM.
(a) In General.--The General Accounting Office shall
conduct a study of the Moving to Work demonstration program
to evaluate--
(1) whether the statutory goals of the Moving to Work
demonstration program are being met;
(2) the effects policy changes related to the Moving to
Work demonstration program have had on residents; and
(3) whether public housing agencies participating in the
Moving to Work program are meeting the requirements of the
Moving to Work demonstration program under law and any
agreements with the Department of Housing and Urban
Development.
(b) Report.--Not later than 18 months after the date of
enactment of this Act, the General Accounting Office shall
submit to Congress a report on the study conducted under
subsection (a).
Mr. BOND. Mr. President, this is acceptable on our side.
Mr. REID. There is no objection on this side.
Mr. BOND. I suggest we agree to it by voice vote.
The PRESIDING OFFICER. The question is on agreeing to the amendment.
The amendment (No. 2198) was agreed to.
Mr. BOND. I move to reconsider the vote.
Ms. MIKULSKI. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Mr. REID. Mr. President, I ask unanimous consent that we delay the
FAA bill for 5 minutes and the debate would be from 4:35 to 5:35 and a
vote occur at that time.
The PRESIDING OFFICER. Without objection, it is so ordered.
congressional award program
Mr. CRAIG. Mr. President, several Senators were prepared to offer an
amendment today to provide for support for the Congressional Award
Program, through a collaboration with the Corporation for National and
Community Service. I understand from the Subcommittee the difficulties
that this would present and will not press forward with such an
amendment at this time. I did want to engage the Chairman of the VA-
HUD-Independent Agencies Subcommittee in a colloquy about this valuable
program.
Congress established the highly successful Congressional Award in
1979 to recognize initiative, achievement, and service in young people.
The Congressional Award is the U.S. Congress' award for young
Americans. It is nonpartisan, voluntary, and noncompetitive. The award
enjoys broad bipartisan support. This excellent program has grown by
more than 3,000 participants during fiscal year 2003, and currently,
there are some 14,750 active participants from across the nation.
In the past, the Congressional Award Program has been able to sustain
itself. Because of the tremendous growth of this program, its resources
have been stretched to the breaking point. After the events of 9/11 and
the recent recession, patterns of charitable giving have changed and
this program, like many worthy causes, has had an extremely difficult
time maintaining earlier levels of contributions, much less
accommodating its rapid growth. The congressional award needs a modest
amount in a funding base to regain its footing and momentum and
continue its growth for the future. Congressional support is needed to
leverage renewed and increased private donations.
Supporters of this program had looked to this bill because the
Congressional Award Program already is being cited by the Corporation
for National and Community service as the kind of program it supports
and encourages and already is listed as an official partner of
America's Promise, another related program. Congress already has
explicitly provided in the Congressional Award Act that, while this
program may not receive a direct appropriation, it may receive
financial support through collaborations with other programs receiving
appropriated funds.
I note that the Appropriations Committee, in the report accompanying
this bill, has expressed its concern with current costs per participant
in volunteer service programs. In particular, the report mentioned the
$16,000 cost per AmeriCorps members for program and education award
costs and called upon the Corporation to reduce costs. In contrast, the
Congressional Award Program costs only about $68 per participant. It is
more than just a great program, it is a bargain.
The Congressional Award is one of only two standing awards given by
Congress. The other is the Congressional Medal of Honor. It is time
that Congress became a partner of the congressional award in more than
just name.
Mr. BAUCUS. I add my comments in support of the Congressional Award
Program. This excellent program is open to all 14- to 23-year-olds.
Participants earn bronze, silver, and gold congressional award
certificates and bronze, silver, and gold congressional award medals.
Each level involves setting goals in four program areas: volunteer/
public service, personal development, physical fitness, and expedition/
exploration. Earning the award is a fun and interesting way to get more
involved in something young men and women already enjoy or something
they might like to try for the first time.
Regardless of an individual's situation, he or she can earn this
award. The congressional award has no minimum grade point average
requirements. It accommodates young people with special needs or
disabilities who are willing to take the challenge. The award is open
to all. We consider this to be a valuable priority within a fiscally
responsible appropriations bill.
Mr. President, this is a program that all of us want to see grow and
flourish. It is not just another program. It is not just another
foundation pursuing a worthy cause. It is our award--a unique program
created by the Congress to recognize and encourage leadership and
voluntary service to the community by our young people. It requires and
deserves our support.
Mr. BOND. I thank my colleagues for their attention to this matter.
It is certainly our intent, in continuing congressional support for
the corporation, that it look for additional ways for actively
partnering and collaborating with organizations such as the
Congressional Award Program. I look forward to working with my
colleagues on appropriate ways to carry that goal forward.
capital asset realignment for enhanced services (cares) initiative
Mrs. CLINTON. Mr. President, I thank the managers for working with
Senator Enzi, Senator Schumer and myself on a compromise to ensure that
our concerns are addressed. We understand that they have committed to
pursue language in the conference report that expresses the committee's
concerns about the Draft National CARES Plan recommendations of closure
and reduction of services in long-term care, domiciliary care, and
mental health services at VA facilities. The language urges that no
closures or reduction in long-term care, domiciliary care, and mental
health care services take place until the full analysis is completed.
The language would also require the VA to submit updates on their
progress in this analysis to the appropriate committees. Finally, the
managers have agreed to send a letter to VA Secretary Principi
outlining these concerns on our behalf.
Mr. ENZI. I would like to add to my colleague's discussion. I got
involved in this process to bring attention to the concerns of veterans
in rural and frontier areas. Based on these concerns, I hope in any
further analysis on the future needs of veterans health care the VA
will consider all access issues related to travel, such as road
conditions, the number of lanes on roads, and seasonal changes and
other factors relating to the weather. I know many of my colleagues
share these concerns and I appreciate their taking this opportunity to
address them.
[[Page 29041]]
Mr. SCHUMER. I thank my friends from Missouri and Maryland for
engaging us in this colloquy, and appreciate their efforts to work with
us on addressing our concerns with the CARES process. Among these
concerns, I am particularly pleased that the managers of this bill have
agreed to work with us in addressing the participation of veterans at
hearings held by the CARES Commission. The participation of veterans is
critical to a process that so directly impacts the quality of
healthcare they receive from the VA. It is my understanding that the
managers have committed to addressing this specific issue by presenting
language to the conference that would recognize the benefits of and the
need to have CARES related hearings within 30 miles of all facilities
facing closure or a reduction in services, as well as the importance of
veteran participation at these hearings. I also understand that the
managers have committed to presenting language to the conference that
encourages the VA to hold additional hearings in all affected
communities following the Secretary's final recommendation.
Mr. BOND. Mr. President I thank the Senators from New York and the
Senator from Wyoming for their thoughtful comments. Their understanding
is correct, and we will pursue such language in the conference report.
Senator Mikulski and I will also be sending a letter on their behalf to
Secretary Principi with these concerns.
Ms. MIKULSKI. I acknowledge the validity of my colleagues' concerns
and look forward to working with them to try to address these concerns
in conference and with Secretary Principi.
Mr. LOTT. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. BOND. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BOND. Mr. President, I think we have reached the point where we
are ready to get a final list and a means of proceeding. So if it is
agreeable on both sides, I ask unanimous consent that the only other
amendments in order to the VA-HUD bill, other than the substitute, be
the following: Dayton No. 2193 with 5 minutes equally divided; Senator
McCain, amendment on NASA; Senator Inhofe, amendment on air quality;
Senator Jeffords, National Academy of Sciences study; further that
following the scheduled cloture votes on Tuesday, the Senate resume
consideration of the VA-HUD appropriations bill for the consideration
of the remaining amendments.
Ms. MIKULSKI. No objection.
Mr. REID. Mr. President, I ask unanimous consent that the time for
debate on cloture dealing with FAA be for a full 1 hour, with the time
equally divided pursuant to the previous order.
The PRESIDING OFFICER. Is there objection to any of the foregoing
requests?
Mr. REID. I express my appreciation to Senator Lautenberg and Senator
Lott for allowing us to go forward.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________
VISION 100--CENTURY OF AVIATION REAUTHORIZATION ACT--CONFERENCE
REPORT--Resumed
The PRESIDING OFFICER. Under the previous order, the hour of 4:40
having arrived, the Senate will proceed to consideration of the
conference report to accompany H.R. 2115, which the clerk will report.
The assistant legislative clerk read as follows:
Conference report to accompany H.R. 2115, an act to amend
title 49, United States Code, to reauthorize programs for the
Federal Aviation Administration, and for other purposes.
The PRESIDING OFFICER. Under the previous order, there will be 1 hour
equally divided for debate prior to a vote. The Senator from
Mississippi will control one-half hour, the Senator from New Jersey
will control one-half hour.
The Senator from Mississippi.
Mr. LOTT. Mr. President, this is an important piece of legislation
that has been in the process all year now. As we know, the aviation
industry has had its difficulties since the events of 9/11 and the Iraq
war. Aviation across the board has struggled to comply with additional
security requirements and to become economically viable again. A lot of
changes are happening in the industry.
But Congress certainly has not been insensitive to the needs of this
industry. We passed legislation to be of assistance in, I guess, 6
weeks after the 9/11 events, and then earlier this year additional
assistance was provided to the airline industry as a result of losses
they were experiencing and expected to experience as a result of the
war in Iraq.
But they need the broader long-term Federal Aviation Administration
reauthorization. I consider this legislation to be the third leg of the
stool to give the aviation industry, as a whole, an opportunity to get
up and running, to provide service to the American people, and to,
frankly, see blue skies again. That is why this legislation is very
important.
If we do not extend this FAA reauthorization, there are certain parts
of the program that will either be deferred or will have to shut down.
So it is not insignificant that we are up against the wall in terms of
extending the Federal Aviation Administration legislation.
I emphasize, too, that this is not just about the agency. This is
about an important part of our economy. We are very mobile in America.
Transportation is such an important part of our economy. Americans are
flying all over the country, as we speak, on airlines and in general
aviation. They are in our airports. It is an important part of our
economy. It creates hundreds of thousands of jobs, when it is allowed
to function as it should. So we need to get this legislation passed.
It is, in my opinion, about safety in the aviation industry at our
airports, in general aviation, with the airlines. We need to make sure
the money is there for the aviation program, for the security that
needs to be put in place on the airplanes, in the airports, on the
perimeters. This is very important legislation. It is part of our
overall homeland security program.
I remind my colleagues that H.R. 2115, the FAA reauthorization bill,
is a 4-year $60 billion bill. This is a huge piece of legislation. We
need to get it done.
I would like to point out to my colleagues some of the impacts we see
as a result of this industry and what it means. First, aviation
generates more than $900 billion in GDP every year. Over the life of
this bill, the legislation is expected to create approximately 665,000
jobs; $14.2 billion in airport grant funding would create these 665,000
jobs. There would be 162,000 jobs in 2004 alone; $14.2 billion will be
used for security, safety, and capacity projects at airports; $13.3
billion would be to modernize the air traffic control system, and $500
million for the Essential Air Service program.
This is an important piece of legislation. A lot of money is
involved. It is not just about the big airports; this is about the
smaller airports. We do have good programs included here, including the
Essential Air Service, and also a program that allows communities to be
involved and participate with some funding of their own.
We have had an experimental program in place now for the last couple
years. This would extend that small community Essential Air Service
program. A number of communities around the country are very much
interested in having that opportunity.
It also provides new opportunities for flights out of Reagan National
Airport, 8 new flights inside and 12 new flights outside the perimeter.
So this is very important legislation in terms of the airports.
For the first time we actually make sure the regional airlines get
some assistance. When we passed the big legislation back in 2001, the
regional airlines were sort of left out. So we would get that done.
It provides for cost-effective programs that could save the taxpayers
$173 million per year. It has a huge impact on States all over the
country. I
[[Page 29042]]
would like to show a chart to give you some idea of the amount of money
and the amount of jobs that would be affected by this legislation. I
have the list here. It is too small probably for most of you to see,
but I will just pick a couple of them: Alaska, $522 million, 24,000-
plus jobs.
I see the Senator from Georgia, a very important terminal in Atlanta,
one of the most important in the country, $162.6 million; 7,722 jobs; a
smaller State, North Dakota, $59.2 million, 2,814 jobs.
The list is here. If you want to see how your State would be affected
with dollars and jobs, we have the information for you.
The question would be, Why has this taken so long? We passed it back
in May in the Senate. It passed the House. We went to conference. We
worked out an agreement on good legislation. But it did include some
language that became controversial. It did say there would not be
privatization of the air traffic control system, but it identified 69
sites in medium and small communities where contract hours could be
considered or could be actually put into place. So there was a
criticism about that.
After trying to work it out in a variety of ways, we went back to
conference and took that language out. So we basically went back to the
status quo. We don't say there won't be privatization of the air
traffic control system, and there won't be. We didn't say that, well,
these 69 contract areas might be considered for contract hours. We took
both of those out, thinking, well, we are ready to go now.
Strangely enough, that was not acceptable, either. So we have been
working in a bipartisan way to try to come up with some solution that
would satisfy both parties, all parties, and how this could be handled.
Senator McCain, Senator Hollings, Senator Rockefeller, Senator
Dorgan, and I sent a letter to the FAA Administrator, Marion Blakey,
last week saying we thought it would be appropriate to have a 1-year
moratorium on any effort of privatization. We have been working with
the administration on that issue since that time.
The administration, I believe, is willing to make a commitment to not
go forward for 1 year, for a moratorium, while GAO does a study of the
impact of privatization, and also so the Commerce Committee, chaired by
the Senator from Arizona, can have hearings on that matter. But they
want to be able to go forward with those things that are already
underway.
The net result for the air traffic controllers and for other unions
within the FAA would be a 1-year moratorium. However, where there is an
ongoing A-76 study, that would not be stopped. Now I am being told
maybe even that is not enough. I ask, how much is enough?
This is very important legislation that affects the economy of the
country and this industry. Are we going to let 1 or 2 groups decide we
will not have this $60 billion bill unless they get some guarantee on
something that is not going to happen, anyway? I don't believe that is
reasonable. I think we need to go forward and have this vote. Let the
American people see who wants to be of assistance to aviation, who
really wants to have safety in the skies.
Let me say to all of my colleagues on both sides of the aisle, be
careful how you vote because this legislation provides funds for
security at airports. It changes who pays for the security costs and
where that money would go. The AIP, airport improvement program, which
was used for $500 million in security costs over the last couple of
years would not continue to be used for that purpose. It would go back
to being used for what it was originally intended--improvements at
terminals, runways, and aprons, but there would be a dedicated line of
money that would go to security. If you vote against this legislation,
and it continues to drag out indefinitely, and we don't get these
security funds to the proper place they are supposed to go--
particularly the airports--if we have another instance at an airport,
or with the airline industry, I would not want to be on record voting
against this very important legislation that has been developed over a
long period of time, in a bipartisan way.
Mr. McCAIN. Will the Senator yield for a question?
Mr. LOTT. Yes.
Mr. McCAIN. Mr. President, I thank Senator Lott for all the work he
did as chairman of the subcommittee on this issue. I know we don't have
a great deal of time. Is the Senator aware in this bill we have $14.2
billion for security and safety for AIP, $13 billion to modernize the
air traffic control system, $31 billion to operate--the list goes on
and on. There are billions of dollars, including drastically needed
improvements in security and essential air service.
I note the Senator from West Virginia, as long as I have been on the
committee, has sought money for essential air service. We also have
environmental provisions. These are all being held up on one issue on
which we have tried to reach some kind of compromise.
My question to the Senator from Mississippi is this: Let's suppose we
don't achieve cloture and we don't have 60 votes on this bill. What do
the opponents gain by that? It seems to me what they gain is sooner or
later we are going to extend the existing programs, which allows
further privatization of the towers and other aspects of our air
traffic control system, which is what they are fighting against. Yet
they will lose. Is this some kind of a statement being made or is this
reality? Is there anybody who believes we are going to shut down the
air traffic control system, shut down aviation in America if we don't
pass this bill? Either existing law will be extended or we are going to
pass this bill. Is that the Senator's assessment? I think our
colleagues ought to know what the consequences of this vote will be if
we fail to achieve cloture.
Mr. LOTT. Mr. President, I say to the distinguished chairman of the
subcommittee he has put his finger right on the heart of the problem.
There are funds that would not go out for security and airport
improvement if we don't pass this legislation. The alternative would
just be to extend the current law for, I don't know, 6 months. The
Senator is right that in that case the status quo is in place. As a
matter of fact, any privatization efforts that might be underway or
they want to do in that period could go forward. We had worked it out
where we had language both in the conference report and in a letter
that would say there would not be privatization of the air traffic
control system.
Finally, even other parts of the FAA would get a 1-year moratorium.
This is the classic example of where my colleagues in the Senate--
Democrats--seem to be hopelessly pursuing where the last rose lingers.
We have a whole bouquet in this bill. It is good for the American
people. It is going to be good for the industry and it will create
jobs. We are looking for this one last thorny rose we can claim and
say, well, we got it done. I note the House has already passed this
legislation and we are, I assume, sometime in the next month going to
complete our session of this year. We need to get this done. It would
be very positive for the industry and for the Congress for us to go
ahead and complete this action.
The Senator is absolutely right. The alternative, if we don't pass
this legislation, is the status quo, which would allow the
administration to do whatever they please in terms of privatization
under legislation Congress has previously passed.
I will make one other note. On this idea of contract towers, there
are mixed emotions on both sides of the aisle. It is not a Republican
or Democrat thing. But there have been hundreds of these contractors
put into place. Usually, they are supported by local congressmen and
senators--and, by the way, it is an idea that really exploded and was
used extensively during the Clinton administration. I am not being
critical. In many cases, it makes common sense. In many communities, if
you don't have the contract towers, you would not have anything.
For the life of me, I cannot understand why we haven't been able to
bring this to conclusion. I think it is time to vote and see who is for
getting
[[Page 29043]]
this legislation done and who wants to preserve the status quo, I
guess, or have nothing, which would hold up funds to the tune of
billions for security and improvements at our airports.
Since the chairman is here, and I know Senator Lautenberg is waiting
to speak, I will reserve the remainder of my time. We will claim more
time after Senator Lautenberg has had a chance to speak.
I yield the floor.
The PRESIDING OFFICER. The Senator from New Jersey.
Mr. LAUTENBERG. On my time, I ask the Senator from Mississippi just
one question, if the Senator is available. I want to put a question to
him.
Can the Senator tell me why Congressman Young from Alaska fought so
hard to take two of his airports off of the privatization possibility?
Mr. LOTT. Mr. President, on the time of the Senator, I am glad to
respond.
Mr. LAUTENBERG. Take a short minute, if you will.
Mr. LOTT. I will give the Senator a direct answer. Senator Stevens
indicated that is what he wanted. I understand there are extenuating
circumstances with those two areas in Alaska. That varies from State to
State. In some States, they want contract towers for a particular site,
and in others not. I agree with the Senator on that. I think we should
not have excluded them.
Mr. LAUTENBERG. Mr. President, it is apparent the Congressman from
Alaska wants to make sure his people are safe when they are in and out
of that airport. He doesn't want to be privatized, and neither do I, or
most of the people in the Chamber.
I have great respect for the Senator from Mississippi. He and I will
agree on lots of things. When we don't, they are usually deep
disagreements. We all want the system to function. The Senator from
Arizona certainly understands aviation and how the system operates, but
he said something in his remarks that really struck me. No matter what
happens, this program is going to get funded. It is going to get funded
regardless of the action we take tonight. Why it is that the President
of the United States and his people decided to delay implementation of
this reauthorization, I will never know. This is kind of like a
Custer's last stand: We are going to teach you Democrats something.
Don't teach us; teach the American people how you care about them,
about their safety. Why, suddenly, are we so concerned about going
commercial? We took roughly 28,000 baggage handlers and said, you know
what. The private sector can't handle them. They mess up all the
inspections. They are terrible. We have to get them in Government hands
where we know things can be properly operated. But when it comes to the
FAA, the people who responded so heroically when the tragedy of 9/11
struck our country, no, then we want to put security on the cheap. We
want them to be operated by Acme Air, or whoever else it is.
The aviation industry has had a lot of difficulty. Much of that is
because our country had an overwhelming tragedy strike us on 9/11, and
so our citizens were afraid to travel. They were afraid to get up in an
airplane. Now they don't have to worry so much, except for shoulder-
guided missile launchers and except for terrorists constantly trying to
break through. And now, to make life easier, we are going to take the
FAA, the most well-trained group in the country, people who are on the
job 24/7, constantly, they are always there when we need them,
regardless of weather, regardless of what else happens--when those
airplanes struck the Trade Towers, we are now talking about my
neighborhood.
I saw the Trade Towers from my apartment house. I didn't see them
that day because I happened not to be there, but I notice their
absence. It is very clear. The people in the tower at Newark--I know
those guys and the ladies. I know them well. I have been up in that
tower many times. I used to be commissioner of the Port Authority of
New York and New Jersey. I know what goes on in towers. I know we used
to gauge rainfall with a pail outside. It wasn't that long ago. The
fact is, they could see the buildings burning, and when the order came
to take safer action, they did.
We are going to soon be voting cloture on the FAA conference report,
and it would have passed except for the fact there was an insert put in
after neither House had a Democrat in the conference--neither the
Senate nor the House of Representatives, neither had a Democrat in the
conference. Nevertheless, we are now suddenly delivered a program that
includes a recommendation from the White House, which neither body
acted upon, and when we voted overwhelmingly to preserve the no-
privatization view.
On June 24, 2002, just in the aftermath of 9/11, the President signed
an Executive order. So this issue has been in the works for some time.
We don't have to talk about who is delaying the movement of the
reauthorization bill. There it is. June 4, 2002: Section 1 of this
Executive order:
The first sentence of that order is amended by deleting ``
. . . an inherently governmental function.''
That is what the President of the United States said on June 4, 2002,
not too many months after 9/11 took place.
We took up the FAA bill in June. The Senate spoke loudly and clearly:
No privatization. The House also spoke loudly: No privatization. But in
the conference, the prohibitions disappeared. Conference leaders simply
dropped all the language dealing with privatization.
Why did the Members of the conference, sitting behind closed doors,
ignore the mandates for safety and security of our aviation system? If
you ask them, they say the White House said we had to; so the order.
Both Houses of Congress were clear. Both Houses spoke on the issue.
Both Houses said no privatization of air traffic controllers. But in
the conference, that commitment disappears. Why? Apparently in this
Congress, we pass bills in both Houses, and then the White House writes
the conference report.
It is presented graphically on this chart. House bill: No
privatization. Senate bill: No privatization of air traffic
controllers. White House position: Silence on privatization. Conference
bill: Silence on privatization. That is a coverup. What that means is
they can go ahead and do it any time they want to.
In this Congress, if the House and Senate agree on something and you
throw it out and allow the White House to write whatever they want, we
don't usually respond favorably to that happening. The stakes are high
because the safety and security of our families, our friends, and our
neighbors are at stake. The clearest evidence of this is how our air
traffic control system performed on September 11, 2001.
The first airplane struck one of the Trade Towers at 8:45 a.m. This
chart shows what the skies looked like at that time. The little light
green areas represent airplanes. You can barely see the ground. This
was 1 hour, and it was even more crowded than that. The order came out
to get the airplanes out of the sky, get them on the ground, get people
safely to someplace where they could call their families and let them
know what was happening.
One hour later, 5,000 airplanes were taken out of the sky, directed
to land at destinations that were not originally planned, and the
picture looks like this chart. It is a lot safer. If my family was
flying, I would have been very happy to hear they landed someplace,
whether it was in Wyoming or Arizona--anyplace else besides New Jersey.
I would have just been happy to know they were on the ground.
My State suffered major losses. Almost 700 people--691, to be exact--
from New Jersey lost their lives that day in the World Trade Center
attack. We are very sensitive to safety. We know this hits home. This
is no academic exercise for us. We know there are families tortured by
the loss of a father or mother or brother or sister. My oldest daughter
lost her best friend in that World Trade Center. They worked together
at one financial firm. My daughter went to law school, and this lady
went to a place called Kantor Fitzgerald. They lost 700 of their 1,000
employees.
[[Page 29044]]
These acts of terror utilizing our aviation system introduced a new
era of fear for the U.S. travelers.
September 11 also highlighted the heroic act of many public employees
who did their jobs, as they do every day, with skill, courage, and
professionalism. Emergency responders, rescuers, firefighters, police
officers, and other government employees aided people out of the
burning buildings. We heard of a historic incident where a couple of
policemen and firemen went into the buildings knowing very well their
lives were at stake. Unfortunately, they were right; their lives were
at stake, but they tried to save others.
As our aviation system was both under attack and being used as a
means of attack, it was the air traffic controllers who protected the
tens of thousands of Americans aboard aircraft at that time. The
snapshots we have seen tell us the picture quite precisely. Within an
hour of the time that the flights were ordered to the ground, the
Nation's air traffic controllers made unbelievable progress. We saw
that in the chart. Within an hour, numbers of those planes--huge
numbers--were successfully grounded.
I repeat, almost 5,000 aircraft were guided safely to the ground in a
matter of hours, a tremendous feat. All parts of the system worked
well, worked together, and worked safely to bring home those traveling
by plane that day. This included roughly 15,000 air controllers, 6,000
technicians, and 2,800 flight service station employees.
These people acted bravely and professionally. So why does President
Bush want to honor these heroes of 9/11 by firing them? I do not get
that at all. The administration plans to privatize our air traffic
control system.
I heard the distinguished Senator from Mississippi say there are no
plans, no, but just take away the safeguards and anything one wants can
be done. This conference report allows them to do exactly that. It is a
bad idea, truly disrespectful to the thousands of September 11 heroes
and disrespectful to all of those who worry about air travel when they
read about shoulder-fired weapons and even worse.
It is no coincidence that this important section of the FAA bill was
omitted without any Democratic input or debate. The American people do
not want safety and security on the cheap. They want air traffic
control to remain essentially a Government safety function, as it was
before President Bush signed that Executive order in 2002. That is why
the Senate voted on June 12 of this year--I remind my colleagues who
are in the Chamber, talking about who should vote for what--I want
everybody in this Chamber to feel like they can look in the mirror and
answer the question: What was the best thing I did for the safety and
the safeguarding of our airplanes and our passengers? That is to make
sure this system stays intact.
The Senate voted on June 12, a vote of 56 to 41--we do not have 56 on
this side--to ban this privatization. I remind my colleagues that
safety and security are not partisan issues. Eleven of my Republican
colleagues voted for safety and security. This conference report on the
FAA is not the first conference report produced on this bill. Conferees
produced an original conference report that was downright strange.
How much time do we have remaining on our side?
The PRESIDING OFFICER. Fifteen and a half minutes remaining.
Mr. LAUTENBERG. For starters, it exempted the State of Alaska. Of
course, that has something to do with the fact the chairman of the
House Transportation Committee is from Alaska. He did not want his
airports privatized. He was very specific.
He said: Of course, the criticism of myself is that I exempted the
State of Alaska, and here is the reason for that. One, he describes
Juneau Field itself to be going under Capstone next year so it would
not be eligible to be contracted out. The Merrill Field is a real
complex issue. He winds up saying that the airplanes take off right
toward my hotel room every morning. I look out and there is one coming
right at me. It is an interesting experience and I want to make sure
everything is done right in that field.
He does not want Acme air controllers to be there perhaps in the
middle of a labor dispute or something like that. He wants to know that
the tried and trusted hand of the FAA as it is presently composed
continues. If he thinks that exempting Alaska is a good idea, let the
other States have an exemption, too. The other 49 should just as well
be exempt.
If the Chair would let me know when we have 10 minutes, I would like
to turn that time over to the Senator from West Virginia.
The PRESIDING OFFICER (Mr. Cornyn). The Senator will be so notified.
Mr. LAUTENBERG. Privatizing the air traffic control system is a bad
idea for many reasons. We should heed the lessons of other countries
that tried this already: Canada, Australia, and the United Kingdom. All
of these attempts resulted in failures.
We should heed the lessons of the blackouts we experienced in the
Northeast this summer that shut down six major airports. Our air
traffic control system guided stranded flights safely to the ground.
I do not think it can be any clearer that air traffic control is a
vital Government safety and security function.
I sense my colleague from West Virginia would like to use his 10
minutes now.
The PRESIDING OFFICER. The Senator from Mississippi.
Mr. LOTT. Mr. President, for the sake of a flow back and forth, I
yield 5 minutes of our remaining time to the chairman of the full
committee.
Mr. LAUTENBERG. I yield the time with unanimous consent that I regain
it and turn it over to my friend from West Virginia.
Mr. LOTT. I yield 5 minutes to the Senator from Arizona.
The PRESIDING OFFICER. The Senator from Arizona.
Mr. McCAIN. First, when Air Force One takes the President down to his
ranch in Texas, guess what. Horrors, the plane lands at an airport with
a contract tower. When the Vice President travels to Jackson Hole, WY,
his plane lands at an airport with a contract tower. Perhaps the safety
concerns that always surrounds a President and Vice President have been
waived in this case.
One of the most respected men in Washington is Ken Mead. He is the
inspector general of the Department of Transportation. He did a study
on the issue of contract towers. I ask unanimous consent that his
letter and that of the Professional Air Traffic Controllers
Organization be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
U.S. Department of Transportation,
Washington, DC, July 22, 2003.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
U.S. House of Representatives,
Washington, DC.
Dear Chairman Young: We understand that the House and
Senate Conferees may be meeting this week to discuss the
Federal Aviation Administration's (FAA) Reauthorization. One
issue that will no doubt be included in those deliberations
is the provision of the legislation that prohibits FAA from
contracting out any Air Traffic Control functions.
Specifically, we are concerned that this restriction would
eliminate even the option of expanding FAA's Contract Tower
Program to the 71 visual flight rule (VFR) towers still
operated by the FAA, regardless of how safely and cost
efficiently towers in the existing Contract Tower Program are
operated.
Based on our work, we think the Conferees should take into
account the track record of the 218 VFR towers in the
Contract Tower Program. Since 1998, we have conducted audits
of various aspects of the Contract Tower Program and have
found consistently that the program works well. We found that
contract towers provide cost-effective services that are
comparable to the quality and safety of FAA-operated towers.
For example, last year the level of operational errors at
contract towers was comparable to the level of operational
errors at FAA VFR towers. The Contract Tower Program also
provides services at towers that FAA would otherwise not have
staffed because they were too expensive to operate. In 2002,
we estimated that contracting out the VFR tower still
operated by FAA could save the agency about $780,000 per
tower each year. That translates
[[Page 29045]]
into about $55 million in annual savings if all 71 towers
were contracted out.
Our point here is not that the 71 VFR towers still operated
by FAA should be converted to the Contract Tower Program, but
that the option should remain open. We do not support
expanding this option beyond the remaining 71 VFR towers
still operated by FAA. But in light of the sharp decline in
Aviation Trust Fund revenues and the most recent projections
of the Federal deficit, we think FAA needs the flexibility to
evaluate alternatives for ensuring its operations at all VFR
towers are conducted in the safest and most cost-effective
manner possible.
We urge the Conferees to consider preserving at least the
option of expanding the Contract Tower Program to the 71 VFR
towers still operated by the FAA.
If I can answer any questions or be of further assistance
in this or any other matter, please feel free to call me at
(202) 366-1959, or my Deputy, Todd J. Zinser, at (202) 366-
6767.
Sincerely,
Kenneth M. Mead,
Inspector General.
____
Professional Air Traffic
Controllers Organization,
Douglasville, GA, November 6, 2003.
Hon. Trent Lott,
U.S. Senate, Russell Senate Office Building, Washington, DC.
Dear Senator Lott: I am writing to urge you to support the
conference report accompanying H.R. 2115, Vision 100--The
Century of Aviation Reauthorization Bill. Please make no
mistake; Labor is divided on this issue.
I am the National Representative for the Professional Air
Traffic Controllers Organization, PATCO/AFL-CIO, and
represent the air traffic controllers in 50 FAA contract air
traffic visual flight rule (VFR) control towers (ATC) across
the United States. I take exception to the National Air
Traffic Controllers Association position that the FAA
contract controllers are unsafe. The DOT Inspector General's
report released on September 5th states unequivocally the
safety benefits to the aviation community and the cost
savings to the American taxpayers of the Federal Contract
Tower Program. The FAA contract controllers are all FAA
certified, most have 15-20 years of experience and the large
majority are retired military and former FAA controllers. FAA
also closely monitors and oversees all FAA contract tower
operations.
H.R. 2115 will enhance aviation safety, security and
supports the Airport Improvement Program. The important issue
of expanding capacity to aid congested airports is also
addressed by the building of new runways and other projects,
all of this resulting in the creation of new jobs.
There are those who oppose this bill because they believe
it mandates privatization. It does not. The measure, as you
know, is now silent on the issue of privatization, leaving
the FAA with the management flexibility they have held for
decades to evaluate staffing at individual facilities and to
make appropriate decisions with regard to safety, efficiency,
and fiscal responsibility. Please support the conference
report accompanying H.R. 2115 and encourage your colleagues
to pass this legislation as quickly as possible.
Sincerely,
Jerry Tuso,
PATCO National Representative.
Mr. McCAIN. He says:
Since 1998, we have conducted audits of various aspects of
the Contract Tower Program and have found consistently that
the program works well. We found that contract towers provide
cost-effective services that are comparable in quality and
safety to FAA-operated towers.
The difference is it saves $170 million a year for the taxpayers. By
the way, I hope the Senator from New Jersey can get over the Alaska
issue. This is a fairly big bill. In all deep sympathy, I hope he can
get over two towers in Alaska as we consider this serious issue.
The process was not perfect. We probably should not have put this
provision in in conference. We did so at the urging of the
administration because there was the threat of a veto by the
administration. Ever since then, we have tried to reach some kind of an
agreement. We have agreed to have it language neutral. We have agreed
there would be a year-long moratorium while GAO and other studies are
conducted.
The Senator from Mississippi and I have spent literally hundreds of
hours trying to reach some accommodation to avoid a veto by the
President of the United States who flat out said that--guaranteed in
writing that we would have a veto--and at the same time try to satisfy
the legitimate concerns because of the position of Senator Lautenberg
and others who voted for the measure to which Senator Lautenberg
referred.
It seems to me we should have been able to come to some kind of an
agreement, including the commitment that we got from the
administration, or at least we would have held to, for an all-out
moratorium.
Now, if the Senator from New Jersey prevails on this vote, we have
previous authorization and privatization will go on. So the Senator
from New Jersey may feel great about it but the fact is that with the
compromises we offered, he would have been far better off. Instead, we
worry about two towers in Alaska.
The point is, we have tried. We have tried to address this issue,
which is a very small part of very large legislation, that has to do
with aviation security; it has to do with airports; it has to do with
all kinds of things. It is a massive bill and we are hung up on this
one aspect for which there is a refusal to compromise on the part of
the Senator from New Jersey, and I regret it. I deeply regret it
because we may lose this vote, although I hope Members realize the
consequences of the loss of this vote. Believe me, we are not going to
shut down aviation in the United States of America over this issue. We
are not going to allow that to happen. It is far too important to all
of America's citizens.
Again, I hope my colleagues will pay attention to the letter from Ken
Mead, the inspector general of the Department of Transportation, that
says clearly that the contract-operated towers are safe consistently,
they are cost effective, and their quality and safety is comparable to
FAA-operated towers.
I reserve the remainder of Senator Lott's time.
The PRESIDING OFFICER. The Senator from West Virginia.
Mr. ROCKEFELLER. Mr. President, this is all odd, perplexing.
Mr. LAUTENBERG. Mr. President, I am sorry, but there was a unanimous
consent that was agreed to that the time would be turned back, and I
just want to make sure we divide it up properly. So I would like to be
able to recover the time and then just make a decision to hear our
chairman of the subcommittee. How much time is remaining on our side?
The PRESIDING OFFICER. Twelve and a half minutes remain.
Mr. LAUTENBERG. I yield up to 10 minutes to the Senator from West
Virginia.
Mr. ROCKEFELLER. I am grateful to my colleague from New Jersey for
that. But I am still perplexed. This is all kind of odd to me.
We could, I think, pass this whole thing, the entire authorization
bill. The chairman of the full committee and Senator Hollings and
Senator Lott, both of whom have spoken here, myself, the ranking member
on the Aviation Subcommittee, and Byron Dorgan--we wrote to FAA
Administrator Blakey and made a reasonable request, asking for an
extension on a certain part of this for a period of a year. We might
get that in the next 7 or 8. We might very well get it. The language
didn't appear to be quite proper at the time.
We do have the President's statement. As the Senator from New Jersey
pointed out, he specifically deleted ``an inherently governmental
function'' when it referred to air traffic performance-based
organizations.
I want to support the FAA conference report. I think virtually
everybody in the Senate would want to do it. It includes a lot of
things that are very important to me for West Virginia. West Virginia
is not at the center. We are not exactly a hub of jet aviation, but we
are served by many good airlines that do their best to help us. We all
know the issue of privatizing the air traffic control system has held
this whole thing up for months. It is perplexing, because it does not
seem to me to be that big an issue. Yet if we are simply to accede to
it, in language which is potentially very vague, we have no idea what
might happen.
That is why we sent this letter--my good friend and chairman, and I,
and the chairman of the full committee--to try to get this extended for
a year so we could look at it and go ahead and pass the rest of all
this.
But we have not gotten the letter. We still have 7\1/2\ minutes, if I
read the clock correctly. It could come in. Then
[[Page 29046]]
we could all vote for the entire conference report. But short of
getting that letter and that commitment, which we all signed on a
bipartisan basis, then I think we have to vote against cloture because
it is entirely a matter of employees being accountable to the public
who maintain the airplanes, who are the service stations that send them
from one place to another. That is accountability to the public. It is
not accountability to the bottom line. It is not a matter of
contracting out. This is fundamental safety.
If you ever go out to Herndon, VA, as I have, and you see the latest
technology and you see all the airplanes in the air at any given moment
in the United States of America, you can hardly see the country. There
are airplanes everywhere and they are all traveling. They have to be
guided. A lot of them are general aviation. Some of them are not,
obviously.
The inability of Congress to resolve this issue has created a very
significant uncertainty for our airports in particular. These are hard
times for aviation. I don't think it is the right time to add more
trouble in their life, more uncertainty in their life, less
predictability in their life, and the worry about less safety in their
life.
Last week we did attempt to resolve the main issue that held this up.
As I indicated, Senators McCain, Hollings, Lott, Dorgan, and myself did
send the FAA Administrator a very straightforward, honest letter and we
requested the FAA impose a 1-year moratorium on the actual contracting
out of any air traffic control functions, including flight service
stations, which provide enormously important information to pilots. You
can't do without them.
I have a little community in my State called Elkins, WV, which is
currently not served by commercial aviation, but it does have a
critically important flight service station that handles traffic for a
significant part of the Washington, DC metropolitan area that is at
risk of being contracted out--and will be.
Flight service stations such as these are absolutely vital security
links in our Nation's air traffic control system and they have to be
protected from privatization.
I come from a private enterprise background, and that has been
pointed out to me humorously, or not, but you just can't fool around
with public safety. You can't do it. Police officers are not contracted
out. I guess they are in Iraq, but they are not in this country. They
are public servants. Or you hire a private guard if you want to,
something of that sort, but basically, protection of public life and
public passage is in the hands of the Federal Government. And it should
be. It has always been there. People trust it. If you took it away, or
parts of it away, people would be stunned. I think they would be
stunned.
This Senator can only support cloture if the administration has made
a strong commitment to hold off any changes to the management of the
air traffic control system for a year. And we have still 4 minutes to
get that letter. Then we will vote for the conference report and I will
happily do so because I agree with the Senator from Mississippi, there
are lots of good things in it. But safety, unfortunately, is one of
those things you cannot compromise.
The Senator from Arizona spoke about Air Force One and Air Force Two.
I have never had any doubt they are well cared for. But there is a lot
of other general aviation that may not be quite as well tended to, and
we have to worry about that.
I don't think the conference report is going to pass the Senate if
this letter doesn't arrive. It is not just a case of where the perfect
is the enemy of the good but, rather, it is a fundamental debate over
the future of aviation and security. It is a huge subject. Aviation is
an enormous employer, creating enormous economic activity in our
country.
This is not the process we should have to use for the FAA conference
report. I would be the first to say that. It grieves me. This
legislation has always enjoyed bipartisan support.
I want to set the record straight for 1 second and then I will be
finished, on how this came about. When the Senate debated, as has been
said by the Senator from New Jersey, we debated this important
bipartisan bill. We had a bipartisan majority of Senators express
serious concerns over the executive branch's future plans for the
safety management of the air traffic control system as a whole. As the
Senator indicated, we voted 56 to 41 to impose restrictions on the
administration's proposal precisely to avoid the very outcome of the
conference report we are now facing, which is allowing the
administration to privatize functions of the air traffic control
system.
I will not get into the House of Representatives. They also had voted
to impose these safety restrictions. In the end, the majority of
conferees--we were never invited to be a part of, I was never invited
be a part of, but I have become accustomed to that because I was part
of the Medicare conference and I wasn't part of that, so my threshold
of expectations was low. But we had the will of both Chambers being
expressed. Unfortunately, the conferees bent to the desire of the
administration.
Congress has clearly spoken on its concerns over air traffic control
privatization. Let us use next year to develop policies and make the
system more secure, more safe, and more efficient. I urge my colleagues
to reject cloture unless we get a letter in the next minute and a half
which commits to this protection which I think we all want.
This is an enormous subject. I deeply regret we have come to this
point. There is no reason we should have, but we have. Assuming that
letter will not come, I will have to ask my colleagues to vote against
cloture.
The PRESIDING OFFICER. The Senator from Mississippi.
Mr. LOTT. Mr. President, before he leaves the Chamber, I thank the
Senator from West Virginia for his work on the Commerce Committee, and
specifically for his work and his cooperation on the development of
this legislation, both at the subcommittee and full committee level and
here in the Chamber of the Senate, and also for the tone of his
remarks. He wants to get this done and that is the attitude we should
all have. In fact, that has been my goal. I am trying to find a way we
can get a bill completed that has $60 billion in it, billions of
dollars for security for our airports and for the airline industry as a
whole and that the President will sign.
Is this about trying to win the point--the congressional position
will prevail and the President's position will prevail? How about
finding a position we can both live with? That is, fortunately or
unfortunately, how it works sometimes in a legislative body. That has
always been my attitude. I am not interested in making statements. We
came here to get things done. We need to get this legislation
completed. That is why we have been working feverishly to try to come
to a conclusion.
With regard to contract towers, we have one in Tupelo, MS. It works
fine.
I believe the record will show that the Senator from New Jersey has
over the years supported the concept of contract towers. As a matter of
fact, when he was chairman of the Transportation Appropriations
Subcommittee, in 1994, the number of contract towers grew from 14 in
1987 to 59 at the end of 1994--an increase of 300 percent while he was
subcommittee chairman.
I repeat again something I said: This is not a Republican idea. I am
not even sure it is a Democrat idea. But it is an idea that was used
effectively during Democratic administrations and Republican
administrations.
The 1994 Senate report says:
In light of the recent recommendations in the ``Report of
the National Performance Review'' which calls for converting
level I control towers to contract operations, the Committee
has provided an additional $1 million above the amount
requested for this program.
That was in the Transportation Appropriations Subcommittee report in
1994.
Here is the most important language from the subcommittee chairman,
Senator Lautenberg.
[[Page 29047]]
The Committee believes this public/private sector program
(contract towers) has provided significant safety and
economic benefits to smaller communities at a reduced cost to
the Federal Government since its inception in 1982. The
Committee urges FAA to expand the programs where appropriate.
Now, all of a sudden, contract towers are something really heinous.
What is the difference in 1994 and 2003? We have done a lot more--I
think over 200 of them. I think most of them work just fine.
I do not know. We are doing a little revisionist history here.
I emphasize this: There is no language in this conference report that
would identify contract towers for Alaska, in or out. We took that out.
It is not here.
We also had language in the conference report that said we would not
have privatization of the air traffic control system.
Declare victory? Oh, no. That was a problem because it didn't apply
to all parts and all unions involved in FAA.
That is what this is really all about. It is about making sure that
every one of the unions that are involved in the Federal Aviation
Administration are excluded.
Again, we are, I guess, looking for the perfect here. All the talk is
about air traffic controllers, but as a matter of fact, it involves the
Federal Flight Weather Service people, it involves maintenance, it
involves everybody.
We can't have privatization of any part of the FAA, would be the
attitude of some. I just do not understand that language here.
So it is very important that we realize what is actually in this
conference report and what is not. My guess is, Can you accept victory?
Can you accept victory? The administration has said they will put it in
writing; they would have supported it in legislation; no privatization
of air traffic control systems.
I ask the Senator from New Jersey. He addressed a question to me. I
address a question to the Senator from New Jersey. Will he accept a
commitment of a 1-year moratorium of no privatization of the air
traffic controllers?
Mr. LAUTENBERG. If the Senator from Mississippi would read that
infamous letter we are talking about, it says no actual privatization
will take place.
Mr. LOTT. That is my point.
Mr. LAUTENBERG. My goodness, we couldn't privatize it within a year
if we started today. That letter doesn't say what it is purported to
say.
Mr. THOMAS. Mr. President, the FAA conference report before us this
evening is critical because it provides funding for crucial safety,
security and capacity projects at airports across the country.
I strongly believe that all Senators should support this cloture
vote--especially since it includes provisions to strengthen our
Nation's air service. However, a handful of Members on the other side
of the aisle have held this measure up due to inaccurate claims that
the administration wants to privatize our air traffic control system. I
would like to take a few minutes to set the record straight.
The objective of the FAA contract tower program is to reduce costs to
the Federal Government by contracting out the operation of low-activity
towers while providing a safe and efficient service to users of the
National Airspace System. Without the contract tower program, many
smaller airports would be left with no air traffic control services.
Since 1982, the FAA has used the contract tower program to provide
air traffic control services at low activity Visual Flight Rules towers
across the country.
In 1994, the Program was expanded to include the conversion of FAA
Level 1 Visual Flight Rule towers to contract operations. This
expansion was included in Vice President Gore's National Performance
Review and supported by Congress. The Department of Transportation's
Inspector General has publicly stated how important the contract tower
program is. This program makes sense because it allows the FAA to
realign its resources in a more efficient and effective manner; it has
a better safety rate than FAA towers; and, it saves taxpayer dollars.
All contract controllers are certified by FAA, and contract tower
facilities are monitored on a regular basis by the agency.
Additionally, the vast majority of contract controllers are former FAA
and military controllers. All contract controllers are subject to the
same training requirements and operating rules and procedures.
Presently, the FAA is operating 219 contract towers at airports
throughout the continental United States, Alaska, Hawaii, Guam, and
Puerto Rico. The Contract Tower program cost for FY 2002 was $73.5
million. This program results in annual savings of over $54 million.
A recent audit by the Inspector General at the Department of
Transportation validated the cost savings, and found that contract
towers operate as safely and efficiently as FAA towers. Contract tower
locations are evaluated by the FAA under the same requirements as FAA
staffed towers.
Contract towers are staffed at the levels required under current
contracts. Contracts are required to submit monthly staffing reports--
which provides verification that they are in compliance with their FAA
approved staffing plans.
Several audits have commended the FAA's Contract Tower program for
oversight of contractors and strict monitoring of controller staffing
levels.
According to Department of Transportation Inspector General Kenneth
Mead, the contract tower program provides ``cost-effective services
that are comparable to the quality and safety of FAA-operated towers.''
Additionally, the National Transportation Safety Board--NTSB--supports
the contract tower program.
I find it hard to believe that a handful of Democrats know more than
NTSB or the inspector general when it comes to aviation safety.
There are many aspects of our Nation's aviation system. Nothing in
the FAA Conference Report would allow for privitization. Simply put,
under this bill the FAA would continue to exercise the authority it has
had since 1982.
A number of my colleagues have implied that this bill is an attempt
to contract out the job of Enroute Control Centers. Enroute controllers
are responsible for directing traffic across the United States--the
Contract Tower Program has nothing to do with these positions.
At Congressional hearings this year, DOT's inspector general stated
that with the sharp decline in revenues to the aviation trust fund and
the most recent projections of the federal deficit, the FAA needs the
flexibility to ensure VFR towers are conducted in the safest and most
cost-effective manner possible.
Wyoming's busiest commercial airport--Jackson Hole--operates under a
contract tower. The Jackson Airport handles over 63 percent of
Wyoming's commercial air traffic.
For those who question the safety of contract towers, I would like to
point out that Vice President Cheney and President Bush both use
contract towers when they fly to their respective home States. If the
contract towers are safe enough for the President and Vice President--I
believe they are safe enough for the American public.
I would like to quote Senator Lautenberg's floor statement during
consideration of the fiscal year 1994 Department of Transportation and
Related Agencies Appropriations Act on October 4, 1993. He said:
The use of contract towers is an example of how we can
reduce the costs of Government services and achieve savings
over the long run. FAA estimates that the use of a contract
control tower saves $200,000 annually because of the
flexibility available in scheduling controller working hours
around changes in air traffic activity levels.
I ask unanimous consent that the Talon News article by Jeff Gannon
dated September 23, 2003 be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
[[Page 29048]]
[From the Talon News Sept. 23, 2003]
Daschle, Lautenberg Vow to Fight FAA Privatization They Supported in
1994
(By Jeff Gannon)
Washington (Talon News).--New Jersey Democrat Sen. Frank
Lautenberg is promising to hold up the Federal Aviation
Administration reauthorization bill over the subcontracting
of some air traffic control jobs. He cited safety concerns as
the basis for his opposition to the outsourcing of air
traffic control functions.
President Bush has threatened to veto a bill that does not
include language to allow the privatization that his
administration says will result in increased savings with no
reduction in safety. Democrats are challenging competitive
sourcing of thousands of federal jobs through insertion of
amendments into departmental appropriations bills that would
prohibit the practice.
Some are characterizing Lautenberg's opposition to the
privatization as political, since he championed a similar
program in 1994.
Geoffrey Segal, the Director of Government Reform Policy
for the Reason Foundation, told Talon News, ``The change in
position clearly is pandering to special interests, in this
case NATCA (National Air Traffic Controllers Association),
who have aggressively stepped up their lobbying efforts to
fight competition in the FAA.''
Segal pointed out that, while serving as chairman of the
Senate Transportation Appropriations Subcommittee, Lautenberg
supported the part of Vice President Al Gore's program for
``reinventing government'' that included the changes now
being proposed by President Bush.
Segal continued his criticism of Lautenberg, saying, ``The
flip-flop in position is pure partisan politics--it's reform
when proposed by a Democrat, but it's trading safety and
security for profits when it's a Republican proposal.''
Lautenberg was quoted in the Washington Post in 1994,
saying, ``The [Clinton] administration's proposal to
privatize the air traffic control system is consistent with
the desire to bring more efficiency and reform to government
and should be reviewed seriously.''
On the Senate floor in 1993, the New Jersey Democrat
declared, ``I strongly endorse the FAA's contract tower
program for level 1 (the smallest) control towers. . . . The
use of contract towers is an example of how we can reduce the
costs of Government services and achieve savings over the
long run.''
Lautenberg justified his support of privatization by
saying, ``FAA estimates that the use of a contact tower saves
$200,000 annually because of the flexibility available in
scheduling controller working hours around changes in air
traffic activity levels.''
At the time, South Dakota Sen. Tom Daschle (D-SD) praised
Lautenberg's efforts, saying, ``I would like to compliment
the Senator from New Jersey for once again doing a masterful
job in providing the Senate with an appropriations bill that
recognizes the importance of our transportation systems to
the health of our economy and fairly balances the competing
demands for improved transportation services throughout the
United States.''
Daschle continued his complimentary assessment of the
privatization provision, saying, ``I am grateful that report
directs the FAA to include the Aberdeen (South Dakota)
Airport in the FAA's contract tower program.''
Lind Hall Daschle, the senator's wife, was a deputy
administrator for the FAA from 1993 until 1997.
The Reason Foundation's Segal summarized his assessment of
the political motivation of the Senate Democrats by saying,
``Of course, the larger picture is that both Sens. Lautenberg
and Daschle supported bringing competition to government,
however, as part of President Bush's plan to do the same,
both senators are outspoken opponents of the plan. It seems
that competition in Aberdeen is good for Sen. Daschle's
constituents but not for American taxpayers.''
FAA officials have suggested that unless action is taken by
the September 30 expiration of the current authorization, it
would begin to furlough non-essential personnel. Marion C.
Blakey, the agency's administrator, predicts more dire
consequences. The New York Times quotes her as saying, ``We
see ourselves on the brink of closing the doors.''
A temporary reauthorization measure is being proposed to
break the impasse and to avoid a shutdown of the FAA. Two
Republicans, Sens. Trent Lott (R-MS) and John McCain (R-AZ),
indicated they would oppose any short-term extension and
intend to continue work on the full four-year bill.
Mr. THOMAS. Mr. President, I hope my colleagues and the American
public see that under the Clinton administration the Contract Tower
Program was okay but it's not today--under a Republican administration.
This conference report includes many important provisions for our
aviation system. It includes billions in funding for the Airport
Improvement Program; provides continuation of the Essential Air Service
and Small Community Air Service programs; funds FAA operations, air
traffic control facilities and equipment; extends War Risk Insurance to
March 2008; and it provides streamlining for airport capacity, safety
and security projects.
Secretary Norman Mineta has stated that ``passage of this legislation
offers millions of American travelers the assurance that the Nation's
aviation system will remain the safest, most efficient and most
competitive in the world.'' The facts speak for themselves. The
Contract Tower Program provides cost effective, quality and safe air
traffic control services to smaller airports.
I urge my colleagues to support cloture on this important bill.
Mr. KENNEDY. Mr. President, the tragedy of September 11 has been
seared into all our memories. We will never forget the sudden massive
loss of lives, and the realization that our country was now extremely
vulnerable to terrorist attack. We remember the extraordinary courage
of the passengers on the fourth plane who prevented the terrorists from
completing their murderous mission. We also remember the extraordinary
courage of the firefighters, police officers, and other rescue workers
at the sites of the attacks, and millions of our fellow citizens who
reached out to help the families of the victims.
We remember as well the extraordinary performance of the air traffic
controllers, who took on the incredible challenge of protecting the
whole aviation network and ensuring the safety of the public on that
tragic day and in the days that followed. Their professionalism and
patriotism inspired us all.
So why in the world is the administration now attempting to undermine
those brave citizens? We must defend them instead, because the air
traffic controllers are defending us and defending the safety of the
American flying public.
Over and over again we see the problems in the administration's
privatization policy throughout the Federal Government. We have been
fighting other battles to correct those policies and make them fair for
Federal employees.
But we must be especially careful with these policies when they
affect homeland security. We all know what a disaster it was when
private companies screened bags at our airports. Now, Federal workers
are doing the job better, and Americans are feeling safer.
Both the House and the Senate specifically voted to protect air
traffic controllers and keep these vital safety jobs as part of the
Federal workforce. Yet now, because of a shameful veto threat from the
White House, the House and Senate Republican leadership have yielded to
and agreed to a privatization of these jobs. That change is
unacceptable.
In fact, the Senate bill contained even stronger protections than the
House bill. The Senate voted 56 to 41 to approve Senator Lautenberg's
amendment to protect not just air traffic controllers, but also systems
specialists and flight service station controllers from privatization.
I commend my colleague from New Jersey for his continued leadership in
this important battle.
The FAA reauthorization bill now before us defies the will of the
majority in both the House and the Senate. It undermines the safety of
our aviation system, and I urge my colleagues to vote ``no'' on
cloture.
Mr. REID. Mr. President, the U.S. air traffic control system works
miraculously well. It is a public system that is admired around the
world. American air traffic controllers safely and efficiently guide 9
million flights a year with more than 600 million passengers.
When it comes to the safety of air travel, the American people demand
perfection, and rightfully so. That is why the Federal Aviation
Administration has set a goal of reducing air traffic fatalities to
near zero. This challenge has become increasingly complex as flights
have increased to meet the growing needs of the traveling public. There
isn't much room for error.
Unfortunately, the administration and House Republican leaders are
backing a plan that compromises passenger safety by privatizing the air
traffic
[[Page 29049]]
control system. This flawed and misguided plan is contained in the
conference report on this FAA bill. It is opposed by 71 percent of
Americans.
Earlier this summer, the U.S. Senate and House of Representatives
both voted in their respective FAA bills to maintain air traffic
control as a public function and prevent it from being privatized. That
is the will of Congress.
Instead of affirming that the safety of air travelers is the
responsibility of the United States Government, members of the
conference committee, at the urging of the administration, passed an
initial conference report that allowed for immediate privatization of
69 air traffic control towers.
This brazen attempt at privatization was met with such opposition
that the House was forced to recommit the bill to conference. However,
once recommitted, the House simply stripped language in the conference
report dealing with privatization. No conference committee meetings
were held. The bill was passed along party lines. And our Republican
friends say this is the status quo.
Nothing could be further from the truth. The House and Senate passed
language to prohibit privatization in response to an Executive order by
the administration to privatize the air traffic control system.
Put simply, the conference report allows the FAA to privatize any air
traffic control functions at its whim. This policy creates a puzzling
contradiction. Our Government has declared that your luggage is
important enough to be screened by trained Federal workers, but once
you are up in the sky, with your life in the balance, the
administration apparently feels that your safety isn't as important as
your suitcase.
Any meaningful legislation must follow the mandate of the Senate and
House bills and refrain from trying to privatize our air traffic
control system.
If the House attempts to force privatization of our Nation's air
traffic control system, it will only delay funding of essential airport
infrastructure and security programs. That would be irresponsible and
even reckless.
We urge our colleagues to work with us to craft a revised FAA bill
that honors the overwhelming sentiment in Congress against
privatization of air traffic control operations and maintenance, that
protects the U.S. aviation industry from unfair foreign competition and
maintains Federal support of the essential air service, and a bill that
ensures that our Nation's flight attendants receive mandatory
antiterrorism training.
Let's move forward by passing a straight 6-month extension of all FAA
programs that will provide the necessary time to work through these
issues. An extension bill, introduced by Senators Rockefeller,
Lautenberg, and Daschle, will provide a vehicle for the Congress to get
the process and substance of the FAA bill right.
I am confident that both Chambers of Congress will reassert their
intent to block privatization, protect the integrity of essential air
service, continue the ban on cabotage, and train flight attendants as
mandated under existing legislation.
Americans entrust their lives every day to our air traffic
controllers. Now they are trusting us to protect their safety.
faa privatization
Mr. REID. Our friends of the other side of the aisle suggest that
President Bush has no plans to privatize the air traffic control
system. They point out that the President hasn't privatized any towers
in the past 3 years. Then why is the President threatening to veto this
bill if it includes language to prohibit privatization? Why is the
President delaying the funding for essential airport construction
projects? Does this make any sense to the Senator?
Mr. LAUTENBERG. Unfortunately, certain Senate conferees to the FAA
bill decided to remove all barriers to privatizing our national air
traffic control system. But both the Senate and the House voted to put
these barriers in the bill as a response to President Bush's actions,
including the issuance of an Executive order, to move towards
privatizing air traffic control. And the President feels so strongly
about privatizing that he has forced conference leaders not to take any
actions in the bill. And this is not agreeable to those of us concerned
about the safety impacts of the President's plan. To my dismay, this
ideological crusade by the White House has held up passage of the
legislation for over 3 months, and I am disappointed that some of my
colleagues are willing to sacrifice safety for this zeal to privatize.
Mr. REID. Our colleagues also point out that President Clinton
privatized 116 of the current 219 contract towers. Isn't it
inconsistent for Democrats to argue privatization when it was a common
practice under the Clinton administration?
Mr. LAUTENBERG. Between 1994 and 2000, the FAA did contract out 130
small FAA towers. These were ``level I towers''--generally with less
than 25 operations per hour and operating under ``visual flight
rules''--that is, without radar equipment. I also note that the current
list of 219 towers constitutes a small fraction of overall air traffic
in the United States. While exploring ways to modernize air traffic
control equipment for the entire national system, the Clinton
administration proposed a Federal corporation to take over air traffic
operations. While I initially was willing to consider this proposal, it
was rapidly determined to be a poor idea, and the President eventually
made the determination that air traffic control is an inherently
governmental function. So during reauthorization of the FAA bill in
1996 and 2000, we agreed to FAA management reforms, to give FAA the
flexibility it needs to act as a better manager, not privatization. In
the end, the President and the Congress agreed that air traffic control
is an inherently governmental function, and recognized that it was not
wise to pursue privatization. Unfortunately, the Bush administration
reversed the Clinton administration's executive order last year,
reclassifying air traffic control functions so that privatization could
proceed. And this was after September 11. In summary, the Clinton
administration did not support privatization, while the Bush
administration does support privatization.
Mr. REID. You mentioned that the Bush administration reversed the
Executive order issued by the Clinton administration establishing air
traffic control as an inherently governmental function. Did the Bush
administration have second thoughts about that after September 11,
2001?
Mr. LAUTENBERG. I say to Senator Reid, this may be hard to believe,
but the Bush administration issued their Executive order after
September 11. I find that especially troubling in light of the
incredible and even heroic performance by the Federal employees of our
Nation's air traffic control system on September 11. The security of
the Nation's airlines became so important that we felt the need to
federalize baggage screening. But somehow, this administration still
wants to privatize the air traffic control system.
Mr. JEFFORDS. Mr. President, I have serious concerns about several
provisions found in the FAA reauthorization conference report. Before
the Senate passed S. 824, the FAA reauthorization bill, we expressly
prohibited additional privatization of air traffic controllers. We also
eliminated a proposed cost-sharing requirement for local communities
that participate in the essential air service program. This requirement
would have placed an insurmountable burden on many remote communities
struggling to maintain commercial air service.
Our colleagues in the House responded similarly to these issues. When
the Senate and House bills went to conference, neither Chamber's
legislation permitted privatization of air traffic controllers, nor did
either bill contain an essential air service cost-share requirement.
Therefore, I was surprised and disappointed to learn that the final
conference report allows both.
I am also very concerned about the provisions in this bill affecting
the National Environmental Policy Act, NEPA. While not actually an
amendment to NEPA, these provisions are more likely to lead to extended
conflict, litigation and confusion--far
[[Page 29050]]
from a streamlined result. In addition, the Department of
Transportation has neither the authority nor the expertise to determine
the environmental impact of various alternatives to a project under
environmental statutes such as the Clean Water Act and the Endangered
Species Act. Other Federal entities, such as the Army Corps of
Engineers or the Fish and Wildlife Service who have specific statutory
mandates, must evaluate alternatives under Federal law when their
jurisdiction is invoked.
For example, regulations governing wetlands permits under section 404
of the Clean Water Act require the Army Corps of Engineers to evaluate
several factors such as ``fish and wildlife values,'' ``water
quality,'' ``conservation,'' and ``aesthetics'' in determining whether
a permit is in the public's interest. The Clean Water Act imposes
specific substantive standards on the Corps' decision and prohibits the
Corps from issuing a permit to fill a wetland if there is a less
damaging practicable alternative. Under current law, the Corps has the
authority to supplement NEPA documents with additional information in
order to fulfill its legal responsibility. The legal obligations of
these other agencies have not been repealed by the language in this
bill, nor should they be.
There is ample authority contained in the existing NEPA statute and
regulations for coordination among Federal agencies in performing
required environmental reviews. The confusing statutory directions
contained in this bill are both unnecessary and counterproductive if
the desired result is efficient project completion.
Given its current content, I cannot support this conference report.
Just last year, Congress determined that, for security reasons,
airport passenger screeners should be Federal employees. Why would we
treat air traffic controllers differently? They play an equally
important role in ensuring the safety of our air travelers.
Our air traffic control network safely guides more than 700 million
passengers a year. In addition, the ATC network provides a crucial
national security service by coordinating the national air space for
military aircraft as well as for commercial aircraft. As we saw
immediately following the terrorist attacks of September 11, 2001, the
ATC system must be prepared to respond quickly and efficiently in
emergency situations.
In order to best ensure the safety of air travel in this country, our
air traffic control network must remain a Federal responsibility. This
bill permits privatization of air traffic control towers around the
country.
I am also very concerned that the essential air service cost-share
language found its way back into this legislation. The EAS program was
created in 1978, when Congress passed the Airline Deregulation Act,
reflecting Congress's belief that deregulation should not result in the
elimination of airport service in rural communities. In my home State
of Vermont, the Rutland State Airport depends on this program to
maintain commercial service in and out of the Rutland region.
For many cash-strapped EAS communities, the local match required by
the cost-share provision in this bill is insurmountable. Mandatory
cost-shares will mean the end of commercial air service in many
economically depressed rural areas. If we adopt this provision, we have
essentially defeated the goal of the EAS program.
Both the House and the Senate acted on these two provisions earlier
this year. The FAA conference report reverses the positions that a
majority of our Members agreed to on the House and Senate floors.
Rather than endorse the flaws found in this legislation, I urge my
colleagues to support S. 1618, Senator Rockefeller's short-term
extension of the Federal Aviation Administration programs. This bill
provides the additional time we need to work out a long-term
reauthorization package that represents the positions of a majority of
Members of both Houses of Congress.
(At the request of Mr. Daschle, the following statement was ordered
to be printed in the Record.)
Mr. KERRY. Mr. President, I would like the record to reflect
my opposition to the Vision 100--Century of Flight conference report.
The final bill does not include any prohibition against privatizing the
air traffic control system, an issue that has serious safety and
national security implications. I voted in favor of the Lautenberg
amendment in June and will oppose ending debate today because passage
of this bill without language protecting ATC from privatization will
make our aviation system less secure and more vulnerable to terrorist
attacks.
After the September 11 attacks it was obvious that the Federal
Government needed to assume a greater role in aviation security.
Although we passed legislation that made baggage and passenger
screening a federal responsibility--legislation that the administration
supported--the President signed an executive order that designated air
traffic control as a ``commercially competitive'' enterprise. This is a
strange dichotomy. The President seems to believe that, in the realm of
aviation security, airport security and air traffic control are
mutually exclusive. I fail to see how these issues are mutually
exclusive and am disturbed at the administration's efforts to undermine
the protections that were originally included in both the House and
Senate bills.
Mr. President, if this bill passes without a prohibition on
privatization, the executive order signed by the President will stand
and he will be able to contract out the Nation's ATC to the lowest
bidder. I cannot imagine a worse policy for our Nation. This work
should only be performed by well trained and experienced Federal
workers. These men and women perform a valuable service to their
country and their jobs should not be shipped out to a private entity. I
urge my colleagues to oppose this bill.
Mrs. MURRAY. Mr. President, I oppose the motion to close debate on
the FAA reauthorization bill.
While I strongly support the bill's authorized funding for
infrastructure and operations for our Nation's aviation system, I am
troubled that this bill still gives the Administration too much leeway
to privatize our Nation's air traffic control, ATC, system.
We know this administration is eager to privatize government jobs
even when it costs more money and does not improve productivity. We
also know that air traffic control involves special considerations like
safety, cost and flight delays.
That's why both the House and Senate passed amendments to the FAA
bill to explicitly limit the administration's ability to privatize FAA-
controlled towers. I voted for the Lautenberg Amendment in June, and it
passed the Senate 56-41.
You would have thought that the White House would recognize that it
was on the wrong side of this bipartisan issue. But instead of
accepting this reality, the White House pressured the members of the
conference committee to remove the limiting language during the first
conference. Regrettably, a majority on the conference committee
followed the White House's request.
In its place, the conferees added new language that goes even further
in supporting privatization. That new language would allow 69 of
current FAA controlled towers to be eligible for privatization. Eleven
of those towers are among the 50 busiest in the nation, including
Boeing Field in Seattle.
The conferees then presented that proposal, only to realize that it
faced strong opposition in both Houses of Congress.
The conferees were forced to take their first report back for further
deliberation. Their second conference report, which is before us today,
dropped the expanded privatization provision. However, it did not
reinstate the initial language that both chambers supported, which
would explicitly limit the administration's ability to privatize our
air traffic control system.
Given the administration's disregard for congressional intent, I
believe that this limiting language is critical.
As ranking Member of the Transportation, Treasury and General
Government Appropriations Subcommittee, I
[[Page 29051]]
have supported some privatization of ATC, but only at low-traffic
airports that would otherwise not have a tower.
This is not just a process or philosophical issue but raises
questions about benefits, safety and cost. The countries that have
privatized their ATC systems--Canada, Australia and the U.K.--have seen
increased flight delays and--in the case of Great Britain--an increase
in ``near misses'' that could result in accidents. In addition, this
private control requires more resources than government-run systems.
It is important to note that the Lautenberg amendment would have
allowed the government to continue to provide private air traffic
control to smaller airports.
Senator Rockefeller has offered a simple 6-month extension of AIR-21,
which will allow us to reexamine this issue and put together a package
that reflects the will of Congress and the people.
I urge my colleagues to oppose this conference report.
Mrs. BOXER. Mr. President, I discuss why I am voting against cloture
on the FAA Reauthorization bill.
This bill includes some very good provisions, including funding for
our Nation's airports and two provisions that I was able to include in
this bill--certification of flight attendant anti-terrorism training
and allowing trained cargo pilots to carry guns in the cockpit.
However, these good provisions do not make up for the threat to the
safety of air travel that this bill will cause.
On June 12, 2003, Senator Lautenberg's amendment to the FAA bill
passed 56 to 41. His amendment, which I supported, would have prevented
the Administration from privatizing the U.S. air traffic control
system. The House bill had a similar provision.
However, during the conference process the provisions in both bills
were ignored. This summer, Republican conference leaders filed a
conference report that specifically sanctioned privatization at up to
69 airports, some of which are the busiest in the country in terms of
flight operations. For instance, Van Nuys airport in California is the
eighth busiest airport in the country in terms of flight operations.
When that clearly did not have the support of the Congress, the
conference report was rewritten, and the privatization language was
dropped. But, the language prohibiting privatization was not
reinserted, and the administration has indicated it intends to go
forward.
Privatizing the controllers is a bad idea. The system is not broken,
and we should not try to ``fix'' it. Our air traffic controllers did a
valiant job after the terrorist attacks on September 11 by closing air
space and by landing all of the planes safely. We should not mess with
success.
Safety must be a top priority in air travel. Privatization puts that
safety at risk.
Mr. FEINGOLD. Mr. President, today the Federal Aviation
Administration reauthorization conference report comes before the full
Senate. I plan to vote against cloture on the conference report to
accompany H.R. 2115 because it would permit the contracting out of
certain air traffic controller positions currently filled by Federal
Government employees.
I do not support efforts to contract out air traffic controller
positions because these positions are vital to our national security. I
regret that the FAA conference report does not include language passed
by both the Senate and the House--which I supported--that would have
prohibited the administration from contracting out these important
positions.
I support the funding for airports and airline industries in our
country that this bill contains and it is not my intention to slow down
funding for airports or airlines. However, the safety of Americans must
outweigh the possibility of airlines and airports being temporarily
inconvenienced.
Supporters of this legislation will argue that airport construction
projects will be delayed if we do not pass this bill soon. However, how
can the lives of Americans be compared to the value of construction
projects? Airport projects are certainly important, but the lives of
Americans are worth a slight delay in the passage of this bill.
Safety is one of the most important elements of this bill for me and
for Wisconsin residents. I have been contacted by a number of
constituents from my home State of Wisconsin who stated their
opposition to the contracting out of air traffic controller positions.
I share their concerns and I am not prepared to vote for cloture on a
bill that does not contain adequate safeguards to ensure passenger
safety.
The contracting out of air traffic controller positions would be a
major mistake with potentially life-threatening consequences. In recent
years, other countries have attempted to privatize their air traffic
control systems only to encounter major problems, with increases in
``near-misses'' of airplanes or actual airplane crashes. Furthermore,
in attempting to privatize their air traffic control systems, other
countries have experienced increased delays and higher costs and fees
for passengers. With our economy in its current condition, higher costs
and fees are the last thing that consumers want or deserve.
In Canada, where air traffic control privatization was established in
1998, the Canadian Transportation Safety Board found that under-
staffing at some towers has been a major concern and may have
contributed to near mid-air collisions. According to the London Daily
Telegraph in Great Britain, flight delays caused by air traffic control
increased by 20 percent since the system there was outsourced. More
importantly, the UK Airport Board found that ``near miss'' plane crash
incidents had risen to their highest levels in a decade. We cannot and
must not take that risk here in the United States.
Those supporting this bill as it presently stands argue that the
legislation needs to be passed immediately and should not be held up
because of the privatization debate. The safety of Americans is no
minor issue. The bill as it currently stands puts many American lives
at risk, as demonstrated by the increased danger of air collisions that
we have seen in other countries.
This conference report also fails to address an important issue
regarding flight attendants. This issue is an important one following
the events of September 11, 2001. Since that tragic event in our
Nation's history, cockpit doors have been reinforced, some pilots have
been trained and certified to carry firearms and marshals have been
added to some flights. Pilots have also been directed to remain in the
cockpit during a highjacking, leaving flight attendants alone in the
cabin with only minimal training on how to work with a marshal or
respond alone to such an event. The provision that was not included in
the legislation before us seeks to protect flight attendants by making
it mandatory that the Transportation Security Administration issue
minimum training standards for flight attendant self-defense training
within one year.
The current legislation states that the Transportation Security
Administration ``may'' issue minimum training standards for flight
attendant self-defense training. This is simply not enough to protect
the flight attendants or the flying public.
For the above reasons I regret that I cannot vote for cloture.
Mr. LOTT. Mr. President, I reserve the remainder of my time.
Mr. LAUTENBERG. How much time is left on our side, Mr. President?
The PRESIDING OFFICER. Two minutes 32 seconds.
Mr. LAUTENBERG. On the majority side?
The PRESIDING OFFICER. Five minutes on the majority side.
Mr. LAUTENBERG. Mr. President, I have listened, and if I were not
experienced I would be shocked at what is being said. Get over Alaska.
What do you care about Alaska? I care about my family. I even care
about the other guy's family.
Why was FAA started in the first place?
June 30, 1956: TWA Flight 2 collided with United Flight 17 killing
128 people. The record shows that one probable cause of the accident
was insufficiency of the en route traffic control advisory.
They can trivialize it on the other side all they want--smile and
smirk.
[[Page 29052]]
But the fact is that Don Young was the smartest of them all. And why
didn't we hear from the Republican side when the vote was taking place
in June? We had 11 Republicans vote with us. I did not hear the cry
that: We are not going to be able to fund this. We are going to be able
to fund it.
Senator Rockefeller and I proposed a compromise in S. 1618, which was
an FAA temporary extension act. Let us get it all out there. But no,
the other side persists in getting this thing through by one hook or
another.
The fact is that by any sense of one's decency, don't throw FAA into
the same pot out of which we dug the baggage screeners. It is
ridiculous to have this kind of a debate.
Sure, we can prove Air Force One can land anyplace. We know the
President lands it all over in fundraising, for goodness' sake. We see
that airplane going out there. But that is a different situation than
the one we are talking about when we have pilots who can occasionally
make mistakes even when aided by the guidance of the FAA controllers.
They know exactly what to do with the weather, they know what wind
sheer looks like, and they know all of the conditions. And I am not the
pilot. Senator McCain is the pilot in this room.
The fact is it is safety; that is what I am concerned about. I am not
interested in protecting anybody's turf except the families who fly
every day across this country and the people who want to know they are
going to get there in a timely and safe fashion. With the scares we
suddenly see coming out, and shoulder-fired missiles, and here--oh, no;
we don't have to talk about safety; let us talk about process.
The PRESIDING OFFICER. The Senator's time has expired.
Mr. LOTT. Mr. President, I yield whatever time remains to Senator
McCain who will wrap up. Any time he doesn't use I would like to
retain.
The PRESIDING OFFICER. The Senator from Arizona.
Mr. McCAIN. Mr. President, I thank my colleague. I will be brief.
The letter says:
Let me be absolutely clear. The administration has no plans
to privatize the Nation's air traffic control system.
I would resist and join in efforts to prevent that.
It is very interesting: Baggage screeners? Could the Senator from New
Jersey be talking about TSA, talking about baggage screeners? That is
an interesting depiction. They are required to make sure there is
security in our airports, I inform my colleague.
We are talking about hundreds of thousands of jobs here. We are
talking about safety. We are talking about improved security. We know
what needs to be done to improve security at our airports. That is in
this bill. These come from the recommendations of the TSA and the
Department of Homeland Security. They are vital.
If the Senator from New Jersey is interested in safety, then he will
support the passage of this bill because it enhances in a broad variety
of ways the safety of the airports in America. It is vital we implement
these safety procedures.
If they were not interested, Vice President Gore's National
Performance Review in 1994, recommendation No. 9 for Department of
Transportation, recommended converting 99 FAA staff control towers to
contract operations. I wonder if the Vice President had that in mind at
the time this process began.
The important point is we tried very hard to come to some agreement.
I don't think this has been a good process, but we made offer after
offer. We have pressured the administration to come up with other
offers. But the reality we were faced with was the threat of a
Presidential veto. So we tried to reach accommodation. Obviously, that
has not been enough.
But I assure my colleagues that if we don't pass this legislation, we
will be back to the status quo, and the status quo--because we are not
going to let this authorization die--will be continued privatization of
towers in America, a program which has been a successful experiment.
I thank Senator Rockefeller for his hard work on this issue. I
appreciate it. Especially, I thank Senator Lott for the many hours he
put in trying to get this very important legislation passed.
The PRESIDING OFFICER. The Senator from Mississippi has 2 minutes.
Mr. LOTT. I ask unanimous consent that the letter to which Senator
McCain referred a moment ago from administrator Marion C. Blakely be
printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
U.S. Department of Transportation, Federal Aviation
Administration,
Washington, DC, November 17, 2003.
Hon. John McCain,
Chairman, Committee on Commerce, Science, and Transportation,
Russell Senate Office Building, Washington, DC.
Dear Mr. Chairman: I have received your November 13, 2003,
letter regarding the issue of contracting our functions
performed by Federal Aviation Administration (FAA) employees.
It is unfortunate that the recent debate on FAA's pending
reauthorization bill, Vision 100--The Century of Aviation
Reauthorization Act has led some to confuse maintaining the
status quo of the FAA's Contract Tower Program with
privatizing our nation's air traffic control system. Let me
be absolutely clear: the Administration has no plans to
privatize the nation's air traffic control system.
I welcome and respect the Committee's duty to perform
oversight of the FAA. I look forward to participating in the
hearings you described, as there are many misconceptions as
to the FAA's plans with respect to competitive sourcing that
I would like to correct. In the meantime, if the legislation
is enacted in its current form, you have my commitment that
during the current fiscal year the FAA will not contract out
any air traffic separation and control function currently
performed by the FAA. Further, during that period, the FAA
will not convert any Visual Flight Rule (VFR) tower to a
contract tower.
I look forward to working with the Committee on the
important challenges facing the Federal Aviation
Administration. The Conference Report contains many
provisions which will provide us with important tools to
enhance aviation safety, security, and capacity. I hope that
my assurances to the Committee will allow us to move forward
on this important piece of legislation.
Sincerely,
Marion C. Blakey,
Administrator.
Mr. LOTT. Let me read from part of that letter. She acknowledges the
letter the bipartisan group sent her last week, dated November 13,
regarding contracting out functions performed by the Federal Aviation
Administration employees.
It is unfortunate that the recent debate on FAA's pending
reauthorization bill, Vision 100--the Century of Aviation
Reauthorization Act has led to some confusing maintaining the
status quo of FAA's Contract Tower Program with privatizing
our nation's air traffic control system. Let me be absolutely
clear: The Administration has no plans to privatize the
nation's air traffic control system.
I welcome and respect the Committee's duty to perform
oversight of the FAA. I look forward to participating in the
hearings you describe, as there are many misconceptions as to
the FAA's plans with respect to competitive sourcing that I
would like to correct. In the meantime, if the legislation is
enacted in its current form, you have my commitment that
during the current fiscal year the FAA will not contract out
any air traffic separation and control function currently
performed by the FAA. Further, during that period, the FAA
will not convert any Visual Flight Rule (VFR) tower to a
contract tower.
What more can you ask? This is a letter from the Administrator,
responding to our letter assuring us of those things we have been
asking. They are not going to contract the air traffic control system,
and they are not going to convert the visual flight rule tower to a
contract tower.
I urge my colleagues, for the safety of the American people, for the
importance of jobs in the economy, to vote for cloture. Let's pass this
legislation and move it to the President for his signature.
Have the yeas and nays been ordered?
The PRESIDING OFFICER. The yeas and nays are mandatory under the
rule.
Mr. LOTT. I yield the floor.
cloture motion
The PRESIDING OFFICER. Under the previous order, the clerk will
report the motion to invoke cloture.
The legislative clerk read as follows:
Cloture Motion
We, the undersigned Senators, in accordance with the
provisions of rule XXII of the
[[Page 29053]]
Standing Rules of the Senate, do hereby move to bring to a
close debate on the conference report to accompany H.R. 2115,
the Flight 100-Century of Aviation Reauthorization Act.
Bill Frist, John McCain, Conrad Burns, Ben Nighthorse
Campbell, Wayne Allard, Jeff Sessions, Mike Crapo,
Larry E. Craig, Kay Bailey Hutchison, John E. Sununu,
George Allen, Saxby Chambliss, Rick Santorum, Norm
Coleman, Craig Thomas, Pat Roberts, Trent Lott.
Mr. CORNYN. By unanimous consent, the mandatory quorum call has been
waived.
The question is, Is it the sense of the Senate that debate on the
conference report to accompany H.R. 2115 shall be brought to a close?
The yeas and nays are mandatory under the rule.
The clerk will call the roll.
The bill clerk called the roll.
Mr. McCONNELL. I announce that the Senator from Utah (Mr. Bennett),
the Senator from Kansas (Mr. Brownback), the Senator from Kentucky (Mr.
Bunning), the Senator from South Carolina (Mr. Graham), the Senator
from New Hampshire (Mr. Gregg), and the Senator from New Hampshire (Mr.
Sununu) are necessarily absent.
I further announce that if present and voting the Senator from
Kentucky (Mr. Bunning) would vote ``yes.''
Mr. REID. I announce that the Senator from New Jersey (Mr. Corzine),
the Senator from Connecticut (Mr. Dodd), the Senator from North
Carolina (Mr. Edwards), the Senator from Florida (Mr. Graham), the
Senator from Massachusetts (Mr. Kerry), and the Senator from
Connecticut (Mr. Lieberman) are necessarily absent.
I further announce that, if present and voting, the Senator from
Massachusetts (Mr. Kerry) would vote ``nay.''
The PRESIDING OFFICER (Mr. Allard). Are there any other Senators in
the Chamber desiring to vote?
The yeas and nays resulted--yeas 45, nays 43, as follows:
[Rollcall Vote No. 453 Leg.]
YEAS--45
Alexander
Allard
Allen
Baucus
Burns
Campbell
Chafee
Chambliss
Cochran
Coleman
Collins
Cornyn
Craig
Crapo
DeWine
Dole
Domenici
Ensign
Enzi
Fitzgerald
Grassley
Hagel
Hatch
Hutchison
Inhofe
Kyl
Lott
Lugar
McCain
McConnell
Miller
Murkowski
Nelson (NE)
Nickles
Roberts
Santorum
Sessions
Shelby
Smith
Snowe
Stevens
Talent
Thomas
Voinovich
Warner
NAYS--43
Akaka
Bayh
Biden
Bingaman
Bond
Boxer
Breaux
Byrd
Cantwell
Carper
Clinton
Conrad
Daschle
Dayton
Dorgan
Durbin
Feingold
Feinstein
Frist
Harkin
Hollings
Inouye
Jeffords
Johnson
Kennedy
Kohl
Landrieu
Lautenberg
Leahy
Levin
Lincoln
Mikulski
Murray
Nelson (FL)
Pryor
Reed
Reid
Rockefeller
Sarbanes
Schumer
Specter
Stabenow
Wyden
NOT VOTING--12
Bennett
Brownback
Bunning
Corzine
Dodd
Edwards
Graham (FL)
Graham (SC)
Gregg
Kerry
Lieberman
Sununu
The PRESIDING OFFICER. On this vote, the yeas are 45, the nays are
43. Three-fifths of the Senators duly chosen and sworn not having voted
in the affirmative, the motion is rejected.
The majority leader is recognized.
Mr. FRIST. Mr. President, I enter a motion to reconsider the vote by
which cloture failed.
The PRESIDING OFFICER. That motion is entered.
Mr. FRIST. Mr. President, for the information of colleagues, we will
have no more rollcall votes tonight. For my colleagues' planning
purposes, we will come in tomorrow morning at 9:30 and have two cloture
votes beginning at 10:30 tomorrow morning. Tonight, we will continue
with the debate for which we will get unanimous consent in a moment. I
encourage our colleagues to participate and to stay for this debate for
which we will propound a unanimous consent request at this juncture.
Again, we will have no more rollcall votes tonight. We will have two
cloture votes at 10:30 tomorrow morning.
____________________
MORNING BUSINESS
The PRESIDING OFFICER. The Senator from Arizona.
Mr. KYL. Mr. President, I ask unanimous consent that there now be a
period for morning business for up to 65 minutes, with the time divided
as follows:
Senators Dorgan and Kyl be recognized first in this order for up to 1
minute each; the next 20 minutes be divided with the Democratic side in
control of the first 5 minutes, to be followed by 5 minutes under the
control of the Republican side, to be followed by an additional 5
minutes for the Republican side, with the final 5 minutes under
Democratic control.
I further ask unanimous consent that the next period of time be
divided, as follows:
Each side be permitted to ask up to four questions for up to 1 minute
each in an alternating fashion, to be followed by a response of up to 2
minutes to be controlled by the other side of the aisle; to be followed
by an additional minute by the first side, with the Republicans to ask
the first question.
I further ask unanimous consent that the next 8 minutes be allotted
in 2-minute segments alternating with the Democrats first and the
Republicans concluding; further, that Senator Dorgan then be recognized
to speak for up to 1 minute, to be followed by Senator Kyl for the
final minute; that upon the yielding of the floor, any debate time
remaining during that period of controlled time be yielded back.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. KYL. Mr. President, let me announce to my colleagues that this is
the second in a series of scheduled debates between the Republican and
Democratic sides of the Senate on subjects of importance to the
American people to be conducted in actual debate format. Rather than
the usual situation where we speak to an empty Chamber or talk across
each other, we have actually set up a debate in which two Republicans
and two Democrats will tackle a subject of interest today and respond
to each other and engage in debate the way it was originally intended
by our Founders and by the people who set up the rules of the Senate.
All of the speakers will go through the Chair, but they will be
addressing this subject in prepared remarks and then in rebuttal and
response to each other. Senator Dorgan and I, who chair our respective
policy committees, hope we can thus establish a precedent in this body
that at least once a month we will pick a topic and engage in debates
the way it was intended to be. We hope both our colleagues and the
American people will be edified by this process, not to mention the
other Senators in the body.
The PRESIDING OFFICER. The Senator has used 1 minute. The Senator
from North Dakota.
Mr. DORGAN. Mr. President, before we begin, let me say to my
colleague from Arizona that I think this is a good idea. We will engage
now for the second time today in a debate about a specific topic. We
will do it for 1 hour talking about something that is very important to
the country. In this circumstance, it is going to be jobs and economic
policies that create jobs.
This Senate is considered the greatest deliberative body in the world
and, from time to time, people might tune in and wonder whether that
description best suits the Senate these days. I think it does, however.
There are some extraordinary men and women who serve in this body,
very capable of debating the issues. So Senator Kyl and myself, as
chairmen of the respective policy committees, have decided to establish
this 1-hour debate on important issues. I am going to participate in
the debate on our side at this time, and I believe Senator Kyl will
participate in a future debate.
The PRESIDING OFFICER. The Senator has spoken for 1 minute.
Mr. DORGAN. Mr. President, I look forward to this debate.
The PRESIDING OFFICER. The Democrats now have 5 minutes. The Senator
from Iowa is recognized.
[[Page 29054]]
____________________
JOBS AND THE ECONOMY
Mr. HARKIN. Mr. President, again I join Senator Dorgan and my
colleagues on the other side in saying how pleased we are to be here
this evening to continue this process of having legitimate debates on
the Senate floor regarding topics of importance to the American people.
Tonight we will be talking about jobs and the economy. In my 5-minute
opening statement, I am prepared to show that Democratic economic
policies are superior to Republican economic policies as it benefits
the American public.
How are Democratic policies better? Simply because we create more and
better jobs.
We create a better standard of living and quality of life for the
majority of Americans who are working. We do this through worker and
consumer protections, equal opportunity for women and minorities with
basic measures such as the Family and Medical Leave Act, all historic
steps led by Democrats, with Republicans either trailing or opposing
outright.
Now, another example: The last Democratic administration and our
economic plan, embodied in the 1993 budget, set us on a course of
adding 6.4 million jobs in just 2 years. We eroded the annual deficits
and eventually created the actual largest projected Federal budget
surpluses in history. Every Republican in the Congress voted against
that budget in 1993, with dire warnings about its effect.
We invested in people and family. We balanced the budget and we set
the conditions for the most successful economic recovery and expansion
ever in the history of the United States. Our friends on the other side
cannot match our record on jobs, and I point to this chart I have. If
we look at the average monthly change in jobs, Democratic versus
Republican Presidents, jobs gained or lost per month, going clear back
to Lyndon Johnson, we can see that under Johnson, Carter, and Clinton,
we had tremendous job growth. Under Nixon, Reagan, Ford, and Bush 1, we
had job growth but not as much as under Democrats.
If we look to the far right, we will see some devastating things that
have happened since this President took office, not a job growth but an
actual job loss, my point being that under Democrats we build better
jobs and more jobs.
In 3 years, this administration has lost 3 million private sector
jobs and their budget and tax policies have contributed to the largest
and actual budget deficits in the history of the country.
The last quarter showed some improvement in our economy, and that is
good, but it is not nearly enough. This administration will be the
first since Herbert Hoover's to preside over a net loss of jobs over a
4-year period. We need to be creating about 150,000 jobs a month just
to stay even. We are not doing that today. We are not even treading
water in terms of job creation.
If my colleagues think the economy is tough now, look at the economic
future the Republicans are creating. This administration turned a
projected 10-year, $5.7 trillion surplus into a $4 trillion deficit
over the coming 10 years. That debt imperils Social Security and
Medicare, which might not bother some of my friends on that side who
would like to privatize Social Security or Medicare or end it as we
know it. That debt hurts our economy, it crowds our private sector
investments we need for economic growth. It makes it difficult for us
to make the investments in education, health, schools, roads, and our
infrastructure.
For the long term, the Federal Government will have to borrow $400
billion a year, squeezing out private sector investment we need for a
growing economy. The law of supply and demand which cannot be repealed
means that borrowing will make investment dollars scarce and interest
rates higher. Higher interest rates in the future will limit growth and
limit jobs.
Now, instead of massive tax cuts that benefit the wealthiest, the
answer should have been our approach: Fiscal responsibility, tax cuts
targeted to low- and middle-income working families, and good job-
creating, direct investments such as building roads and schools, our
economic infrastructure. That should be the path we should be on.
The PRESIDING OFFICER. The Republicans are recognized for 5 minutes.
Mr. ALLEN. Mr. President, I thank my colleagues for joining with us
in this debate on the most important issue we have facing us in the
Senate and in our country. That is: How can we work to make sure we
have the best policies for more investment and more job creation?
The reality is, right now things are getting better. They need to get
better, though, than they are currently. Nevertheless, the facts are
clear. Job growth is up by 126,000 in October. When my colleagues talk
about the last 20 years, last month we had an annual growth rate of 7.2
percent. That is the best in 20 years.
The Republicans' point of view, I would say to my colleagues, is that
we want to make sure every American, regardless of their race, their
gender, their ethnicity, or their religious beliefs, has the
opportunity to compete and succeed. That means our tax policies have to
be conducive to investment. Regulations need to be based on sound
science, not political science.
We also need to make sure the people of our country, in our States,
have the capabilities and the knowledge to get the good jobs in the
future. We also need to have security. When we see people in
communities worried about crime or worried about terrorism, those are
adverse impacts, on confidence and investment and therefore job
creation. We have seen the adverse impacts of 9/11, particularly in the
travel and tourism industry.
I know as Governor of the Commonwealth of Virginia what matters to
businesses when they are looking to invest. They look at what is the
cost of doing business, what is the tax rate, what is the cost of
workers compensation. Ours are low in Virginia because we keep lawyers
out of workers compensation. We get the money to the person who is
injured so he or she can get back to work. Unemployment insurance taxes
matter. The fact that we have a right to work law, which gives
individuals the right, if they so desire, not to join a union as a
condition of work, that helps attract business. Health insurance
matters as well.
In a variety of areas, we have found Virginia ended up with much more
job growth, more investment. It was called the Silicon Dominion because
of the investment, because of having taxes competitively low, prompt
permitting, reasonable regulations, and also investment in security and
also in the capabilities of our students for high academic standards.
The Democrats talk about all of these Presidents. Interesting.
Richard Nixon was elected after President Johnson. If one wants to call
Jimmy Carter their second best President, with the malaise and the high
interest rates, the high unemployment, and the high inflation. People
put in Ronald Reagan to help revive this economy and make us stronger
as well as, of course, keep our peace through strength.
I find it interesting my good friend from Iowa talks about, oh, the
Republicans somehow want to imperil Social Security and gets off on
these tangents on privatization. Of course the Democrats care about
Social Security because in 1993 they not only taxed all families and
all small businesses and every taxpayer, they even taxed Social
Security benefits. When given the opportunity most recently on a
measure introduced by Senator Bunning of the Commonwealth of Kentucky,
virtually every Democrat voted against that effort to repeal the tax on
Social Security benefits.
The fact is, we are making good progress. We need to keep moving
forward. We have ideas, as Republicans, in a variety of ways that we
can make sure the American economy can compete internationally, can
help create more jobs and greater opportunity. Indeed, we want to make
health care costs more affordable and predictable, reduce the burden of
lawsuits on our economy, whether it is asbestos reform or class action
reform, make sure we have an affordable, reliable energy supply,
streamline regulations, open new
[[Page 29055]]
markets for American products, and also make sure there is confidence
in investment in this country by making sure the tax reductions are
permanent.
I will close with the words of Mr. Jefferson who said that the
Government should restrain men from injuring one another but otherwise
leave them free to regulate their own pursuits of industry and
improvement and shall not take from the mouths of labor the bread they
have earned.
That remains the sum of good government today.
The PRESIDING OFFICER. A Democrat is recognized.
Mr. DORGAN. Mr. President, I am not someone who believes Democrats
are all right and the Republicans are all wrong. I believe both
political parties contribute to this process.
We do not have to debate theory today about jobs. Let's just debate
what we know. Here is what we know. In the 8 years under the Presidency
of President Clinton, 237,000 jobs a month were created. Since
President Bush took over, we have lost 70,000 jobs a month. There were
22.7 million jobs created during the 8 years of the Clinton
administration; since President Bush took office, 2.3 million jobs
lost. On June 7, 2002, the White House said: The tax cut will help
create 800,000 new jobs by the end of 2002. In fact, we lost 1.9
million jobs during that period.
Finally, take a look at the red line, and my colleagues will see
where these jobs have gone, and my colleagues will see the improvement
about which my colleague just talked. They said, gosh, things are
turning around. Here is the improvement; right here. All of us want
good jobs in this country. They come with three things in my judgment:
Fiscal policy that is responsible--no, not $500 billion deficits, which
this administration is proposing and running up but fiscal policy that
is responsible, trade policies that are fair to this country, to its
businesses and workers, and especially as a result of good policies in
both of those areas, confidence the American people would have in the
future.
In 1993, we put a new economic plan in place by one vote in the
House, one vote in the Senate, and we didn't get one vote for it on
that side of the aisle--not one, not even by accident. As a result:
22.7 million jobs. On your side of the aisle they predicted
catastrophe--the economy is going to be in terrible trouble. We had the
strongest growth of any President, 22.7 million jobs.
Let me talk for just a moment about trade. We now have a trade
ambassador trying to negotiate trade agreements in every part of the
world. Let me talk just a moment about Huffy bicycles. Mr. President,
850 people in Ohio lost their jobs. They used to put American flags on
the front of Huffy bicycles. They replaced that with a globe because
they now make them in China. Why? Because the folks in Ohio who make
them--who got fired, by the way--were making too much money, $11 an
hour. So Huffy bicycles are now made in China for 33 cents an hour and
sold at Wal-Mart, Target, and Sears. But they are not cheaper because
they pay 33 cents an hour; it is just that Americans lost their jobs.
Our trade policy is bankrupt, and we have a trade ambassador right now
trying to do three more free trade agreements, more of the same. If you
want good jobs in this country, then you have to stand up for American
interests. You have to have a fiscal policy that adds up. This
administration's doesn't. We are running the biggest deficits in
history.
You have to have a trade policy that stands for this country's
interest, and this trade policy doesn't. We have the highest trade
deficits in history, and we have jobs moving wholesale overseas, where
you can hire 12-year-old kids, work them 12 hours a day, and pay them
12 cents an hour, and that simply is not fair.
As a result of trade and fiscal policies that do not add up, the
American people do not have the confidence in the future they ought to
have. Confidence, after all, is what relates to the expansion side of
the business cycle. When people are confident about the future, they
buy a home; they take a trip; they buy a car; they do the things that
expand the economy. When they are not confident, they do exactly the
opposite.
We need to get to work and fix this country's fiscal policy, fix this
country's trade policies, and not just go back right over the same old
recipe about regulation and taxes and all those sorts of things. We
know what creates jobs. We don't have to describe theory here. We can
talk about the facts.
The facts are we put in place a plan in 1993 that created 22.7
million jobs because it said to the American people we are serious
about fiscal responsibility. It said to the American people we are
going to stop this sea of red ink, and we did. It was a hard vote, but
it was the right vote. I have always been proud of it.
Now we have a sea of red ink, the largest budget surplus in this
country's history when President Bush took office has been turned to
the largest budget deficit in our history, and that is not going to
breed confidence for the American people about the future. We need to
put this country's economic house in order, and we need to do it soon.
Fiscal policy and trade policy that represents the long-term
interests of the American people will represent expansion and jobs and
opportunity once again for our country.
The PRESIDING OFFICER. Who seeks recognition on the Republican side?
The Senator from Minnesota is recognized.
Mr. COLEMAN. Mr. President, before I arrived here, I read many times
about the Senate as the ``world's greatest deliberative body.'' Over my
first 10 months, I would say that I have not experienced as much
deliberating as I'd hoped. And I am glad my colleague, Senator Allen
and I are doing this today--and that we are doing it deliberately.
The subjects of jobs and the economy are very personal and important
to every American family. With the lone exception of maintaining
national security at home and abroad, we have no greater responsibility
as a government. I note to my colleague from North Dakota that, by the
way, consumer spending is up 6.6 percent in the last quarter.
Confidence is up. It must tell you something about the way the American
people are thinking.
I want to begin by making a general observation. It seems to me that
as a country we are awakening to a set of stark realities after what
I'd call a decade of unrealism in the 1990s.
In the 1990s we came to believe that somehow we had conquered the
business cycle--that we had ended the age old rise and inevitable fall
of economic activity.
In the 1990s we came to believe that we are safe behind our borders
from the violence and chaos that is a daily reality of many in the
world because of the scourge of terrorism.
We have had a rude awakening. The speculative bubble of dot com
industries burst. Revenues generated by our highly progressive tax
system fell rapidly at the national and State level. We were attacked,
at the very symbol of our commercial strength. How can you talk about
job loss without once mentioning 9/11? Every conceivable threat to the
confidence of the American people was leveled at us. But like the
residents of the Massachusetts countryside in 1775, when Paul Revere
rode by, we were awakened, and we are fighting a difficult war to
restore our safety and our prosperity.
On Minnesota's Lake Superior; huge ore boats ply the world's largest
body of fresh water. It literally takes miles and hours to turn around
one of their massive boats. So it is with the American economy. The
bigger the object, the longer it takes to turn. As we look at the
American economy, we need to recognize a few critical facts.
First, the economic difficulty we are in began in 2000, the year
before President Bush took office. In March 2000, the NASDAQ lost 44
percent of its value. In the year before the President took office,
economic growth in this country fell from 3.9 percent to .9 percent.
Second, we have not repealed the laws of economics. The aftermath of
a
[[Page 29056]]
long expansion and a speculative economic bubble is recession, a slow
recovery and large Government deficits. Even it its peak, our
unemployment rate is substantially below that of previous recessions.
In 1983 unemployment was over 10 percent and in 1992 it was almost 8
percent. And the difference between 6 percent and 8 percent or 10
percent represents millions of families back at work.
And third, the economy is now moving forward. The American economy
has been bent, but it did not break.
Historic growth in the GDP--a growth rate of 7.2 percent--is nothing
to scoff at. Yet, my Democratic colleagues seem to be able to find
gloom and doom even during the brightest days.
We've added 225,000 new jobs in the last 2 months. A jobless
recovery? I think not. Job growth is still a challenge, but a we have
always seen, employment gains are the lagging feature of recovery.
I have not been the White House as often as some of my colleagues.
But as far as I know there is not a brake pedal or a throttle for the
economy under the president's desk.
But the President has done good work with the tools at his disposal.
Federal Reserve Chairman Alan Greenspan has lauded the 2001 tax cut,
which the Treasury Department has reported saved some 1.5 million jobs.
The most recent tax cuts for both mom's and dad's and small businesses
have been key to the 7.2 percent growth in GDP in the last quarter.
More than a generation ago there was Nobel Prize winning economic
research done at the University of Minnesota. It seems obvious to us
now, but the point of that research was that raw numbers and events are
not the only thing that moves the economy. An equal or greater affect
is the way people perceive what is happening.
At this point, I am forced to point out there is a drag on the
economy from nine candidates for President constantly standing up and
bad mouthing the economy. It seems they are living in that weird
political world where good news is bad news and bad news is good news.
I would like to remind these Democrats of something a hero of theirs
and mine one said in a similar situation. ``We have nothing to fear,''
said FDR, ``but fear itself.'' Those who talk tough and breed fear and
cynicism to get notice in a political environment bear some
responsibility for the fear they spread.
Tough times are not new to the American people. Each generation has
its own new challenges. Ours is that we are asked to deal with
overlapping threats to our national security and our economic security.
But almost all of the key economic indicators; job growth, business
investment, consumer spending, have shown that we are making progress
on both fronts. We need to listen to the voices of hope and optimism at
such times, or we can become our own enemy.
Today we face unparalleled challenges to our security--and concerns
about our economy.
We will only get through them if we say yes to the things Republicans
are working on now, such as tax cuts, continuing our jobs agenda by
passing an energy bill; stemming the costly litigation mentality,
keeping the lid on spending, and say no to those who would snatch
defeat from the jaw of victory.
I yield the floor.
The PRESIDING OFFICER. The Republicans have 1 minute to ask a
question.
Mr. COLEMAN. Mr. President, contrary to specific evidence that shows
the economy is growing, Alan Greenspan's positive comment about the
2001 tax cut, and most observers crediting the 2003 tax cut for
creating the recent 7.2 percent GDP figure, some of the leading
Democratic candidates for President, Dean and Gephardt, have said we
should repeal all the tax cuts, in effect raising taxes just as our
economy is beginning to grow. Senator Edwards has said that Governor
Dean misses the point. On that, I quote:
Unfortunately, instead of addressing the problem, he makes
it worse by raising taxes on the middle class and families
that work.
Senator Lieberman has said repealing all the Bush tax cuts, as Dean
and Gephardt have proposed, would hurt the middle class. I wonder if my
colleagues will join me by rejecting the proposals by Dean and Gephardt
to roll back the entire tax cut, which would raise the lowest tax
bracket back up to 15 percent from 10 percent, reduce the child tax
credit from $1,000 to $500, and force 4 million working poor people to
pay taxes.
The PRESIDING OFFICER. There are now 2 minutes to respond from the
Democrat side.
Mr. DORGAN. Mr. President, it is an interesting question posed by my
colleague from Minnesota, and prior to him posing the question, he
talked about more tax cuts and a lid on spending. Frankly, he is
proposing and his party is proposing more defense spending, more
homeland security spending, more spending in virtually every category,
and then tax cuts in addition, which leaves us with very large
deficits.
But he asked specifically about tax cuts, so let me describe the
difference in tax cuts relative to our party and their party. We
believe in tax cuts and support tax cuts for working families. In fact,
we had a very significant tax cut plan that would have said to working
families in this country who bear a pretty significant tax, payroll tax
and income tax, that we are going to give you a pretty good size tax
cut. But the majority party said that is not what we want to do.
But the majority party said: That is not what we want to do. We want
to say to the person who is making $1 million a year, you really need
the relief. We are going to give you a $93,000 tax cut because we
believe the economy works better when you put something in at the top
and somehow it trickles down. We happen to believe the percolate-up
approach is what makes this economic engine of ours work. And we
believe if you give working people something to work with, tax cuts
targeted to working people, we will have an economy that regains its
footing, provides economic growth, opportunity, and hope once again.
That is the way to engineer economic growth and new jobs and expansion
of opportunity in this country.
The PRESIDING OFFICER. There is 1 minute for rebuttal on the
Republican side.
Mr. COLEMAN. Mr. President, the comments of my colleague from North
Dakota indicate that they do reject the Dean-Gephardt proposal that
will roll back all the tax cuts.
Two observations: No. 1, spending. Goodness gracious, the Republican
Conference has rejected $1.3 trillion in additional spending proposals
from my colleagues across the aisle since the beginning of January.
That is like the kid who kills his parents and throws himself on the
mercy of the court and says: I need mercy. I am an orphan.
You are talking about spending and, in addition, talking about tax
cuts. We always hear: Tax cuts for the rich, tax cuts for the rich.
Seventy-nine percent of the tax cuts at the top bracket are small
business people. They are folks in Minnesota I deal with all of the
time who come to me and say: This makes a difference; this is important
to us. Seventy-nine percent. We have to get away from the class warfare
and recognize that we are growing jobs by helping small business.
The PRESIDING OFFICER. The Senator's time has expired.
The Democrats are recognized for 1 minute to ask a question.
Mr. HARKIN. Mr. President, the Bush administration wants to eliminate
overtime pay for some 8 million Americans, including many policemen,
firefighters, and nurses. One big reason overtime pay was created in
1938 was to create jobs by Franklin Roosevelt to give employers the
incentive to hire new workers rather than paying time and a half to
current workers. By killing overtime for millions of workers, the
administration will also kill the incentive to create new jobs and hire
new workers.
At a time when we are struggling to create new jobs, why in the world
do so many Republicans want to give employers a new disincentive to
begin hiring again by taking away what we have
[[Page 29057]]
had since 1938--overtime pay protection for almost 8 million American
workers? Why would we want to take that away and give employers more of
an incentive to continue to hire people--or to work people longer in
the day or the week without paying them any more money?
The PRESIDING OFFICER. The Republicans are recognized for 2 minutes
to respond.
Mr. COLEMAN. Mr. President, first, we can have a great debate about
overtime. I can tell you from talking to folks in Minnesota--I get
calls from the building trades and others--that the issue doesn't
affect them.
The fact is what we are looking to do is make business more
efficient. That is what it is about. We do not want to hurt workers. I
think it is about time we addressed the root causes. What is it that
helps business expand or not? I think that is what my colleagues on the
other side of the aisle at times just do not seem to get.
You talk to business people, and what do they tell you? Cut taxes,
cut regulation, give them the opportunity. That is what is in the tax
cut. Increasing depreciation, increasing expensing for small business,
if we do those things, they will grow jobs.
There are a whole range of issues on which I hope we can find common
ground when it comes to protecting workers. I will work with you, but
in the end, you have to have workers, and you can't have workers unless
you do those things that allow small business to grow. If you roll back
tax cuts and roll back expanding accelerated depreciation, if you roll
back the increased expensing, if you continue to short business and
increase regulation, in the end there will be no jobs for folks to work
overtime. That is what it is all about.
Let us address the root causes of things that grow jobs. That is what
this Republican agenda is doing. That is what the President's tax cuts
are doing. Let us keep moving in that direction.
The PRESIDING OFFICER. The Democrats have 1 minute for rebuttal.
Mr. HARKIN. Mr. President, I had some calls like that, too, from
labor groups and building trades on the overtime issue. I thought,
well, it doesn't affect you. With a union contract they get their
overtime pay. But check with their spouses. They will be told to stay
another 2 or 4 hours. Right now, sometimes in America almost 25 percent
of a family's income comes from overtime pay. That is taking away
family income. It is taking away time from ones family. And, it is
reducing the need to hire additional workers. That is why we oppose the
administration's regulation to take away overtime pay protection.
The PRESIDING OFFICER. The Senator's time has expired. The
Republicans have 1 minute to pose a question.
Mr. ALLEN. Mr. President, I would like to pose a question to Mr.
Harkin, the Senator from Iowa. This question gets into the issue we are
talking about, which is jobs.
Taxes cuts help create more jobs for small businesses, especially the
most recent tax cuts for accelerated depreciation. Regulations from the
Federal Government also can reduce choice and cost jobs. For example,
we believe free people and families ought to be able to keep working.
The proposal would harm those choices and jobs.
For example, the proposal which has strong Democrat support would
increase the cost of purchasing pickup trucks, SUVs, and minivans.
America is dominant in the manufacturing of minivans, SUVs, and pickup
trucks. Many people are choosing to buy them for the safety of their
families.
I ask the Senator from Iowa: How many SUV jobs would have been lost
had your side prevailed?
Mr. HARKIN. Mr. President, I am trying to understand the question
posed by my friend from Virginia.
Mr. ALLEN. How many jobs would have been lost had your position
prevailed?
Mr. HARKIN. On SUVs and pickup trucks?
Mr. ALLEN. I am talking about the CAFE standards.
Mr. HARKIN. I see.
First of all, as my friend from Virginia knows, I represent a rural
State, as does my colleague from North Dakota. We have a particular use
for SUVs as pickup trucks and heavy vehicles in the country.
I happen to have a house out in the Senator's State, in Fairfax
County. I drive back and forth to work 12 miles every day. There is
traffic congestion. I can't believe how many SUVs, pickup trucks, and
big trucks I see. I do not believe that we need to give high income
doctors a special $100,000 tax deduction if they buy an oversized SUV
weighing more than what is the tax definition of a car so they can
drive around the suburbs. For legitimate business reasons, a farmer or
a rancher might need them out in the countryside for that kind of work,
you bet. They need that, but not the people who live in this city.
We are hemorrhaging debt and don't need to create that tax break.
CAFE standards: I have to say to my friend from Virginia, you can't
have long-term sustained economic growth in this country if you are
destroying the environment or if we continue to sharply increase our
oil supply. That makes us far more dependent on Mideast oil. There has
to be a balance. We do have to have balance. But what I see from the
other side is just to heck with any regulations, throw caution to the
wind, pollute as much as you want and not to worry about the huge oil
bills we are paying to the Mideast.
Our taxpayers today--the Senator's taxpayers and mine--are coughing
up billions of dollars every year to clean up the toxic waste sites
that big corporations left and walked away from, and now our taxpayers
have to pay to clean it up. That is why it is important to have
regulations to make sure that companies don't pollute and that they do
things in the best environmentally sound manner.
The PRESIDING OFFICER. One minute is remaining for the Republicans.
Mr. ALLEN. Mr. President, I don't think SUVs, minivans, and pickup
trucks cause toxic waste sites. I will agree with one thing, and I
think most people in America will agree: The comments of the Senator
about all of these SUVs, minivans, and pickup trucks driving around in
northern Virginia are driving to nowhere; most people in America would
probably consider DC nowhere.
Cost in lives: 4,500 deaths would occur each year if they had
increased these standards. Vehicle costs would have gone up $2,500 for
cars and $2,750 for SUVs and pickup trucks. The United Auto Workers
said this proposal would have cost hundreds of thousands of jobs.
We have a Ford assembly plant in Virginia. And I would hate to see a
20-percent loss there and have to go to those 2,200 employees and say 1
out of every 10 of you is going to lose a job because the nannies up in
Washington want to take away your choice to drive a vehicle that people
would want for their families and for their safety.
The PRESIDING OFFICER. The Senator from North Dakota is recognized
for the next question.
Mr. DORGAN. Mr. President, the issue this evening is jobs. Let me ask
a question of my colleagues about the insidious and perverse incentives
in our Tax Code that subsidize companies which move their United States
jobs overseas.
I mentioned Huffy Bicycles, gone from Ohio because they made $11 an
hour. That is too much. They can produce bicycles where they pay 33
cents an hour. I am saying your party has included, and is at the
moment, coming from the Finance Committee, including more incentives to
move jobs overseas. I ask the question whether you are prepared to vote
with us to shut down the incentives in the Tax Code that tell people if
you move your United States jobs overseas and shut your U.S. plant
down, we will give you a benefit in the Tax Code. Where I come from,
that does not add up and it makes no sense. Are you prepared to join
with us and vote to end all of those subsidies now?
The PRESIDING OFFICER. The Senator from Virginia.
[[Page 29058]]
Mr. ALLEN. I am not sure what the Senator from North Dakota is
actually talking about. What we are talking about and what we are
trying to do is make sure the United States of America is a place that
is conducive to do business. It is a shame and it is aggravating to all
of us when a company goes overseas. It takes jobs away. One of the
reasons they will move away is the cost of doing business. We are in
competition with other countries. It is our view what we ought to be
doing is target assistance to businesses to invest in this country.
That is why we tripled the amount that could be expensed for small
businesses, allowed also that if people buy new equipment, new
technology, to be more productive and more competitive, they could
write it off more quickly.
These initiatives, the depreciation, the writeoffs, have actually had
a beneficial impact on our economy, not only those businesses that are
investing in this country, most of which are small businesses that
create about 75 percent of the jobs, but those that fabricate or
manufacture whatever equipment or manufacturing efforts they have,
whoever is assembling it, whoever is transporting it, packaging it, or
selling it. That is all beneficial.
Our point of view is we need to make sure America has tax laws and
the regulatory policies that allow America to compete so companies do
not have any incentives or need to move overseas. I will later bring up
a question which I think will be very helpful for getting those profits
back into this country.
Republicans will join with Democrats saying we do not like to see
companies go overseas, but we have positive, constructive solutions and
ideas to keep those jobs here, so companies do not feel they have to go
to another country with less regulations and lower taxes for them to
provide for themselves and their shareholders.
The PRESIDING OFFICER. One minute for the minority.
Mr. DORGAN. One of the issues of competition is wages. Companies now
leave this country because they can find somewhere in the world where
they can hire a 12-year-old and pay them 12 cents an hour. Some think
that is global competition. That ignores that which we fought for, for
a century, about safe workplaces, environmental standards, child labor
laws, and fair compensation.
Let me also say there is a bill coming from the Finance Committee
that will give us a chance to vote on the question of whether we want
to keep subsidizing the movement of jobs overseas. That bill will once
again say to companies, we will give you a break. Move your jobs
overseas, you do not have to pay tax on your income until you
repatriate. And when you do, by the way, we will charge you 5 percent.
We will charge you a third or fourth the tax rate a receptionist is
paid, the lowest in the office.
Is that fair? The answer is no. Once again, it is another incentive
to say to people, if you move your jobs overseas, go find lower labor
rates somewhere else, call yourself an American firm but hire foreign
labor, we will give you a benefit. That ought to be shut out of the Tax
Code. Your party is opening it up.
The PRESIDING OFFICER. The time has expired. One minute for the next
question from the majority.
Mr. COLEMAN. Mr. President, Democrats express concern of a loss of
manufacturing jobs and our country's ability to compete in the world;
again, a concern I share. But then Democrats turn around and oppose
each and every policy objective the National Association of
Manufacturers says it needs to stay competitive.
That is what this is about. How do we stay competitive--including
medical malpractice reform, to rein in runaway health care costs
killing our small businesses, asbestos reform, class action reform, and
a myriad of other reforms.
In addition, there is talk of perhaps Democratic obstruction to an
Energy bill that will create 500,000 to 700,000 new jobs. Are the
Democrats prepared to come around on these issues and finally support
the thing our Nation's manufacturers say they need to stay alive?
The PRESIDING OFFICER. The Senator from North Dakota.
Mr. DORGAN. Mr. President, I have not heard a description of my
colleagues riding Huffy bicycles or their desire to ride a Huffy
bicycle in the future, but let me come back to that point. You are
talking about U.S. manufacturers and the conditions of competition. Do
you think Huffy bicycles decided to make bikes in China rather than
Ohio because of some bill we did or did not pass in the Senate? I am
sorry, they went China because they could pay 33 cent an hour in China,
they could have people work 7 days a week, 15 hours a day, and they
could not do that in this country. That reduced the price and the cost
of producing that bicycle.
I ask, if you have bought a bicycle for your child lately, whether
you saw a reduction in the price of Huffy bicycles just because they
went from $11 an hour to 33 cents an hour. I will answer for you. The
answer is no. It was about profits.
The question is, do you want to have a race to the bottom? Is that
what you want for the American businesses and the American workers? Do
you want to have a race to the bottom on wages, on health standards? Is
that where we are? I don't think so.
We can compete anywhere in the world, but the competition has to be
fair. American companies and American workers ought not to have to
compete with 12 cents an hour or 33 cents an hour labor. That is not
fair competition. That is why I raised the issue of trade.
We have the trade ambassador busy running around the world right now
trying to do more trade agreements. The last one, incidentally, which
both of you voted for, put in an immigration provision that had nothing
to do with the trade agreement, so that we could have an enormous
number of people come through Singapore to take jobs in this country.
We could not get it out. They will displace American workers, coming
into this country to take American jobs, and we had an amendment we
could not get out. Instead, they pass an amendment that says you better
watch it, but you cannot take something out of a trade bill because of
fast track.
This issue of competition--you want to change the subject, let's talk
about what fair competition is for American businesses and American
workers.
The PRESIDING OFFICER. The Senator's time is expired.
One minute for rebuttal for the majority.
Mr. COLEMAN. I deeply appreciate my colleague's concern for fair
compensation. I note Senator Dorgan has been one of the chief advocates
for trade with Cuba. I hope he would take that same philosophy about
human rights and workers rights in dealing with Cuba.
I would also reflect a little bit on the comment about trade. NAFTA
was signed by President Clinton and the Uruguay Round after being
approved by a Democrat House and Democrat Senate. I believe Senator
Harkin supported both of those votes. On NTR trade with China, I
believe both Senators Dorgan and Harkin supported that. The reality is,
we have a trade ambassador going there right now to push for some
controls, push for expanded buying by China, cut down the deficit. But
the bottom line is, How do we make us competitive?
Going back to the National Association of Manufacturers, they say the
U.S. industry is burdened by legal and regulatory systems that retard
growth and destroy jobs. That is what we have to deal with. We have to
deal with the underlying things that make it impossible for businesses
to grow in this country.
The PRESIDING OFFICER. The Senator's time has expired. One minute for
the minority to ask a question.
Members are reminded to direct their remarks through the Chair.
Mr. HARKIN. Mr. President, in less than 3 years time President Bush
has turned a projected surplus of $5.7 trillion into a projected
deficit of $4.2 trillion over the next 10 years. Now not even Congress
is powerful enough to reverse the law of supply and demand.
[[Page 29059]]
This vast new debt will raise interest rates and damage the economy in
the long run. It is going to hurt the Federal Government's ability to
cover the Social Security and Medicare costs of baby boomers and the
education of our kids.
The tax bill gave a $93,000 tax cut, on average, to those earning
more than $1 million a year. The majority of Americans, however, get
less than $100.
Also, right now, more and more foreign countries are owning our debt
and more and more will be owning that debt over the next 10 years.
My question is, are these tax cuts for wealthy Americans worth the
long-term damage they will cause our economy?
The PRESIDING OFFICER. The Senator from Virginia.
Mr. ALLEN. I thank the Senator from Iowa for that great question.
What we care about is fiscal discipline and we do care about fiscal
deficits, but what we care most about, as Republicans, is the job
deficit.
As my wonderful colleague from Minnesota, Senator Coleman, said, this
country has been hit by something that is unprecedented, other than
maybe Pearl Harbor, with the attacks on September 11. That had a
devastating impact on the confidence and the capabilities of our
economy for a short while, but we are coming back, even in the midst of
a war on terrorism.
When our friends on the Democrat side of the aisle talk about fiscal
discipline, what they are talking about is continuing to tax the
taxpayers. The bottom line is they think taxes ought to be higher on
married people, on families, on individuals, on small businesses; even
on people who die.
When you discuss fiscal discipline, as shown on this chart, here is
the reality. As we were trying to cut taxes to help create more jobs
and more investment in this country, Democrats proposed a variety of
different amendments on the floor, as shown on this chart, is how much
it would have raised spending: Each year it would be about $87.9
billion; over 10 years, $1.3 trillion--$1.3 trillion additionally
spent.
Our view is, the best way to raise revenues for the Government, for
key priorities in research, in aeronautics, in education, for national
defense and homeland security is to have a vibrant economy where people
are working and paying taxes, and businesses are prospering and paying
taxes, rather than going bankrupt or having people unemployed.
Shown on this chart is the cost of Democratic proposals in the
Senate. Fortuitously, we have a majority, and we are able to include
responsible spending so that the taxpayers will get more of their money
and not have added burdensome debt for the future.
The PRESIDING OFFICER (Mr. Sununu). There is 1 minute for the
minority to rebut.
Mr. HARKIN. Mr. President, I am somewhat taken. I cannot believe it.
The Republicans are in charge of the White House, the Senate, and the
House, and they are blaming the Democrats for this economic downturn
and for the fact that we have these huge budget deficits. They are the
ones who are in charge.
They are the ones that produced an 8 percent increase in domestic
discretionary spending last year, far more than the average increase in
the Clinton years. And, that excludes Iraq and Defense.
I would respond to my friend from Virginia, no, we do not believe in
higher taxes, but we do believe in fairer taxes--fairer taxes--for the
American people.
Right now, the corporate income tax rate is the lowest it has been
since the 1930s except for 1983--1.2 percent--yet payroll taxes, paid
by every hard-working American, is at the highest level ever. That is
what has been happening; not that the people ought to pay more taxes,
we ought to have fairer taxes.
Why is it fair that in the 2003 tax bill those making over a million
dollars a year are getting, on average, $93,000 while half the
taxpayers got $100 or less. That is what we are opposed to.
The PRESIDING OFFICER. There is 1 minute for the majority to ask a
question.
The Senator from Virginia.
Mr. ALLEN. Thank you, Mr. President.
Mr. President, I would like to ask the Senator from North Dakota, Mr.
Dorgan, this question. It follows up on some of his questions to me,
and that has to do with what we call the Invest in the USA Act, which
the Senate has passed, although there were dozens of Democrats who
voted against it.
Current tax policies in this country hinder and punish U.S. companies
that conduct business overseas. We would like them to do well and get
into other markets, but if they want to bring that money back into this
country, they are taxed at 35 percent.
Now, Senator Dorgan and Senator Harkin oppose this investment in
America. Can Senator Dorgan share with us the positive economic impact
if this were actually put into law?
Mr. DORGAN. Mr. President, it is interesting that this behaves in
exactly the opposite way as the Senator from Virginia understands it.
When you say to a company in this country, if you will simply invest
overseas, heck, move a plant overseas, fire your workers in North
Dakota and Virginia and Ohio, and employ foreign workers, if you will
just do that, we will give you a deal. You will never, ever have to pay
taxes on your earnings overseas. So get rid of that U.S. plant. Move it
overseas. Earn your money there. And you simply do not have to pay
taxes on it. That is called deferral. And the only time you will ever
have to pay taxes is if you repatriate your income to this country. So
there is a built-in incentive to move your company overseas.
I am surprised the Senator from Virginia would ask a question about
that because, in fact, the Finance Committee is now saying: I have an
even better deal. We will keep deferral in the law--which is the
perverse incentive--and we will allow you to repatriate that which you
did earn, and we will charge you only a 5-percent income tax.
Any company that takes a look at that would say: Well, I can't have a
better deal than this. They will continually support me to invest
overseas. And there will now be precedent to allow me to repatriate the
income and pay--I don't know--a fourth of the tax of the lowest paid
workers in this country. What a deal, except that every company will
now understand that is the way this Congress works, and so there is a
big bonus for me to shut down my U.S. plant and invest overseas.
You talk about perversity, look, I am interested in jobs. I am
interested in companies to expand their job base. The way to do that is
to encourage that expansion in this country, to hire American workers,
and pay them well, and to give them good benefits, and then, through
them, earn good profits.
That is what I want for this country. But this country cannot any
longer ignore the perversity in the Tax Code. And one of them is
exactly what the Senator from Virginia alleged, that subsidizes the
flight of jobs overseas.
The PRESIDING OFFICER. There is 1 minute for the Republican side to
rebut.
The Senator from Virginia.
Mr. ALLEN. Mr. President, I would say, thank goodness the views of
the Senator from North Dakota are the minority view. The reality is,
most countries do not impose these 35 percent taxes. The current tax
law prohibits businesses or impinges on their ability to bring profits
back into this country to help create jobs.
A number of people, from Dr. Allen Sinai to Decision Economics to JP
Morgan, have shown there would be 400,000 to 500,000 new U.S. jobs in
this country, $100 billion in increased investment in this country in
equipment and research and development, and a reduction in corporate
debt if this legislation were enacted.
You can keep the laws the way they are without this provision, and
what you will see is more jobs going overseas. But if you have this 1-
year benefit, you will find the benefit being in the hundreds of
thousands of new jobs, with important investment here in America as
opposed to overseas.
Mr. DORGAN. Mr. President, as I ask a question, might I say, I don't
know
[[Page 29060]]
about all these doctors and analysts, but I know about Americans who
lost their jobs because of this perverse incentive; and that is what I
want to shut down.
But let me ask my colleagues a question about this record. Again, we
do not have to debate theory tonight. Let's just debate what has
happened.
The odds against this being a coincidence are highly unlikely. Every
Democratic administration has produced far more jobs than every
Republican administration. Does that mean one is good and one is bad?
No. It means different strategies produce different results.
Isn't it the case that, over many years, the strategy by which we
invest in working people and invest in small businesses, and giving
them something to work with, produces the robust economic opportunity
and economic growth across this land? It is true with Clinton, Carter,
Johnson, right on down the line. And the evidence does not lie.
As I said, might this be a coincidence? Mathematicians say the odds
are highly unlikely against that being a coincidence. In the last 40
years, every Democratic administration has done better than every
Republican administration in creating jobs.
The PRESIDING OFFICER. The Senator's time has expired.
The Senator from Minnesota.
Mr. COLEMAN. Thank you, Mr. President. I love that chart. Let's go
back to Jimmy Carter: 18 percent inflation, 23 percent interest rates,
long lines at the gas pump. You talk about turning a sow's ear into a
silk purse, that chart does it.
But let's talk about reality and let's get away from the abstract. I
agree with my colleague from North Dakota: Let's get away from what the
economists say. I want to quote Joan Thompson, executive vice president
and CFO of Midwest Wire and Cable in St. Paul, Minnesota, a small
business. She says:
Our company will be stronger, continue to grow and provide
more jobs with these type of incentives [we have seen in the
tax cut].
She singled out the increase in small business expensing for new
investment and increase in first year bonus depreciation as two keys in
her company's resurgence.
Cirrus Manufacturing, one of the largest private employers in Duluth,
MN, an area up north that suffered a lot of job loss right after the
tax cut was passed--they sell private airplanes--talked about how they
got sales that all of a sudden happened, that had been on hold for
ages, because of the increase in depreciation.
I am not going to talk about charts. I am going to talk about
reality.
I have to hit one other thing about reality; and that is, the reality
is we were hit with September 11. We were hit with Enron and Worldcom.
We were hit with the burst of the dot.coms. And we have come back. And
why? That is the choice here today. Do we come back with providing the
opportunity for small business to invest and grow jobs or do we
continue to tax? Do we continue to regulate? Do we continue to
overspend and drive this economy further down?
We are moving forward. Business investment is up, consumer spending
is up, GDP is up. Housing starts are up. Jobless claims are down.
Payroll jobs are up. Productivity is increasing substantially. Total
investment is up. The unemployment rate is down.
We are moving in the right direction with this President's and this
Republican Senate's vision. Let's keep moving in that direction.
The PRESIDING OFFICER. There is 1 minute for the minority.
Mr. DORGAN. Mr. President, we certainly agree. I hope very much that
we are moving in the right direction. We want economic expansion and
jobs. But the fact is, Jimmy Carter has come up several times here. I
am not surprised it is Grover Cleveland. There are so many excuses.
We are choking on Federal budget deficits. We are choking on a trade
deficit that is the highest in history. The fact is, the American
people lack confidence in the future because we don't have our fiscal
house in order. We can blame others but we are dramatically increasing
spending on defense, on homeland security, and cutting taxes
substantially, and we have a fiscal policy that does not add up.
I want one that adds up, that creates new jobs and new economic
expansion and hope for the American people. Most families just want a
good job that pays well, that gives them some security. Most small
businesses want a chance to expand in order to create new employment.
That is all we want. The question is rooted in this chart. Where has
the performance been? We don't have to debate theory. Just debate the
performance of those who believe if you invest in working families, our
economy does just fine.
The PRESIDING OFFICER. At this time, each Member will have 2 minutes
for closing argument, beginning with a Member on the minority.
The Senator from Iowa.
Mr. HARKIN. Mr. President, this has been a good debate. I wish we
could go for another hour.
Just a couple points. First, on job growth, that I have heard my
friends on the other side talk about here this evening and the last
month. The fact is, manufacturing jobs are going down. The service
sector has increased. Manufacturing jobs continue to lose. One in seven
manufacturing jobs were lost during the Bush administration. We are now
at the lowest level of manufacturing jobs in our country since 1958,
and it continues to go down. So when they talk about job growth, they
are talking about the lowest kinds of jobs and the lowest paid kinds of
jobs in the service sector.
Again, what we ought to be talking about are jobs. Again, as my
colleague from North Dakota said, just look at the facts, the three
major budget bills and job creation bills. In 1981, 1.4 million jobs
were lost in 2 years after the Republican budget bill past. Under the
Democratic budget bill passed in 1993, under our economic plan, 6.4
million jobs were created in 2 years. Of course, we know what is
happening under this President Bush: after his budget bill passed in
2001, 2.1 million jobs were lost in the next two years. It is the same
old thing--Republican trickle-down economics was tried in 1981 and
2001. Put it in at the top, hope that it trickles down. That is the
fundamental difference between Democratic and Republican economic
policies.
We have long believed--and the proof is what we did in the 1990s--
that if you put it in at the bottom, give it more to working families,
invest in education and health care, educational opportunities, make
the economy more efficient, it percolates up. It is percolate-up
economics that works versus trickle down.
The problem with trickle down is when you give it to those at the
top, they take too big a cut and it never quite trickles down. But when
you put it at the bottom, you put people to work and you get the
economy humming. We need to do it by expanding educational
opportunities. Under this President, we have had the lowest request for
educational funding in the last 30 years. That policy is going to mean
a less well trained work force in the long-term, an economy that will
not compete as well and larger deficits for our country.
The PRESIDING OFFICER. The Senator's time has expired. The Senator
from Minnesota.
Mr. COLEMAN. Again, I thank my Democratic colleagues for
participating in this debate. Much of the reasoning I have heard this
evening reminds me of the definition of an economist: Someone who sees
something beginning to work in reality and tells you why it won't in
theory.
Simply put: The President's tax cuts have begun to stimulate the
economy and grow jobs. I will go out on a limb here and say as a fact
that the sky has not fallen, that we are not in the worst economy since
Herbert Hoover, and the United States is not selling off the Grand
Canyon to cover its debts.
Facts are facts. The business cycle lives. The economy started down
long before George Bush became President. After a relatively short time
of negative growth, the economy began to recover. Despite serious
setbacks not of the President's making, such as 9/11, the economy is
coming back strong.
[[Page 29061]]
Jobs and deficits are the remaining problems. In the aftermath of
recessions, they always are for a period. But we are headed strongly in
the right direction. What every person knows is what matters is what we
do here.
This is the question: Which do you think helps the economy and which
hurts, raising taxes on everyone, especially on small business and job
creators and then increasing Federal spending, or leaving that money in
the pockets of consumers to consume or save or invest?
Tax increases would clearly hurt the economy more than increased
spending would help. Today we need to look forward. To my Democratic
colleagues, I ask you to join your Republican colleagues to keep the
wheels of economic progress turning. I ask you to join us in enacting
class-action reform, medical malpractice reform, asbestos reform, all
of which the National Association of Manufacturers says is absolutely
critical to this country's ability to maintain domestic manufacturing
jobs. Help put an end to the perception that Democrats care about
manufacturing jobs, just not enough to offend the trial lawyers.
As for the deficit, talk about the kid who killed his folks and then
threw himself on the mercy of the court because he was an orphan. Here
we have Democrats offering $1.3 trillion in new spending above and
beyond what the budget will allow since January.
The question before us is whether Democrats will roll up their
sleeves and help get the job done by passing an Energy bill or will
more obstruction be the order of the day?
The PRESIDING OFFICER. The Senator's time has expired. The Senator
from North Dakota.
Mr. DORGAN. My dad always told me never buy something from somebody
who is out of breath. There is kind of a breathless quality to this
debate from the other side. They want us to essentially ignore the fact
that we have lost more than 3 million jobs in a couple of years. Of the
biggest fiscal policy budget deficit in history, the biggest trade
deficit in history, just ignore that. Be happy. In fact, call for more
tax cuts, preferably tax cuts for businesses that are moving jobs
overseas and tax cuts for people at the top of the income ladder.
Let's talk about jobs, though. What is the menu that creates new
jobs? The Oscar Meyer Company had an opening for their Weinermobile
driver. Eight hundred college graduates showed up to apply to drive the
Weinermobile. What does that tell you about jobs in this country? This
is a sad commentary on our job situation.
This country needs new jobs. We don't need an economic strategy that
shrinks. We need one that expands jobs. We will best serve the American
people if we decide these things matter. Deficits matter. Trade
policies matter. If we decide these things matter and start working on
them in a bipartisan way, in a thoughtful way, in a commonsense way, we
will best serve this country's interests.
But facts remain. This is the first administration since Herbert
Hoover that had a net loss of jobs, nearly 3 million jobs since it took
office. I take no pleasure in saying that. I wish it were not so. I
hope a year from now I can say there are massive new jobs being created
and our economy is growing.
But I tell you this: That won't happen if we ignore the fundamentals.
Let's get back to the fundamentals: fiscal policy that adds up and
works; trade policy that adds up and supports this country's best
interests in a way that can give confidence to the American people
about the future. We won't provide confidence by putting our head in
the sand and saying: Be happy. Just call for more tax cuts.
I am for tax cuts, but I am also for a world-class educational
system, protecting our environment, and creating more jobs.
The PRESIDING OFFICER. The Senator from Virginia.
Mr. ALLEN. Mr. President, I thank my colleagues for joining in this
debate. I think we all do share the same goals for this country: a
strong national defense, homeland security; education, stronger
nanotechnology, aeronautics and so forth. The question though is, How
do you get there? How do you achieve this goal? That is where the
difference lies.
We have been pushing for tax cuts because we trust free people and
free enterprise. We figure families who have children, when they got
that $400 check this summer, needed that money for their kids. You have
seen the results. They spent it on shoes or clothes or electronics, and
it increased retail selling, which is great for the retailers and
manufacturers of the products and the transporters and all the rest.
You see the job growth. Is it where we want to be? Of course not.
What we are doing on the Republican side is putting forward a positive,
constructive agenda and solutions to move America forward and help
create more jobs. The difference is, on the Democrat side, their view
is more taxes. They opposed our efforts to reduce taxes on married
people. We wanted to get rid of the marriage penalty tax. We wanted to
reduce taxes on families, on small businesses, entrepreneurs. They
opposed us. But things are moving forward in the right direction.
We also disagree on their taxing of Social Security benefits. I know
some of them, my friend from North Dakota, even want to tax the
Internet which I believe ought to be free from burdensome regulations.
The bottom line of our philosophy was best summed up by Ronald Reagan
who said in 1985: Every dollar the Government does not take from us,
every decision it does not make for us will make our economy stronger,
our lives more abundant, and our future more free.
That sums up the Republican approach and, indeed, its current success
shows that it is right.
The PRESIDING OFFICER. Under the previous order, at this time the
Senator from North Dakota, Mr. Dorgan, and the Senator from Arizona,
Mr. Kyl, will each be recognized for 1 minute.
Mr. DORGAN. Mr. President, first of all, I have enjoyed the
opportunity to exchange views with my colleagues. They are very able
legislators. I thank my colleague from Iowa and my colleagues from
Virginia and Minnesota and also my colleague from Arizona, chairman of
the Republican Policy Committee.
I must, however, correct one little misstatement at the end. My good
friend from Virginia just raised this little issue about the Internet
tax, and nobody is suggesting we tax the Internet. We will save that
for another day. We can have another date--just the two of us--on that
subject. We need to do that based on facts.
I will say that I think this is a good exchange of views. My
colleague from Arizona and I, with our caucuses, have created an
opportunity--and we will try to do this each month--which allows us to
exchange views on specific subjects. I think it merits additional
opportunities in the Senate, and I will be pleased in the coming months
when we are in session to work with my friend, Senator Kyl, to find
additional topics and debaters and to further advance discussions on
public policy in our country.
I yield the floor.
Mr. KYL. Mr. President, I, too, thank our four debaters this evening,
and especially my colleague from North Dakota, Senator Dorgan. He and I
chair the policy committees of our respective conferences. We decided
that too much of our debate in this body wasn't very civil or very much
in the way of debate because we were frequently talking to an empty
Chamber. We basically were talking past each other rather than engaging
with each other.
The best way for the American people to understand our different
philosophies and actually test ideas was to see us in a situation in
which, like tonight, you saw questions being asked of each other and
the responses being given at that same period, the rebuttals and the
replies in proximity to each other, so that these ideas could be
evaluated in a context of real meaning, rather than the way the debate
frequently occurs here. That is not to denigrate our colleagues in the
way we conduct other debates, but we think that by having this kind of
an opportunity, we will not
[[Page 29062]]
only elucidate particular issues, as was done this past week, but we
can work together as friends and colleagues and bring out the best
ideas and participate in debate of the kind that was originally
contemplated in this Chamber.
Again, I thank the debaters. As was indicated, we intend to do this
about once a month, and we hope everybody will tune in again. With
that, I think we have a wrap-up request.
For the time being, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. KYL. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________
REAL MEDICARE REFORM IS POSSIBLE WITHOUT OBSTRUCTIONISM
Mr. McCONNELL. Mr. President, for 3 continuous days last week we
focused on the obstructions imposed over the past year against
President Bush's circuit court nominees by the Democratic minority in
the Senate. The Senate obstructionism has claimed victims, and unless
we break their holds, more highly qualified legal scholars will be lost
due to their ongoing obstructionism.
Obstructionism is not just for judges anymore. It has been used also
against the Healthy Forests Act, a bill that was approved while the
southern California fires raged on but was subjected to obstructionism
by a minority when it was time to go to conference.
Now our seniors are on the verge of receiving a new Medicare
prescription drug benefit unless the Senate chooses to obstruct it.
After 38 years of broken promises, a real Medicare drug benefit is
right around the corner. Opponents claim that reforms in the Medicare
conference are too great and the spending too little. I disagree.
Seniors have waited too long and this bill does too much for it to be
subjected to obstructionism.
As I indicated a moment ago, after 38 years of broken promises our
seniors will finally get a Medicare drug benefit unless the Senate
obstructs it. After 38 years of delay, help can begin in as soon as 6
months unless the Senate obstructs it.
Looking at the second chart, this Medicare bill will provide
unprecedented resources for seniors' prescription drug benefits, almost
one and a half times what President Clinton proposed and a third more
than Senate Democrats wanted just 2 years ago, and we will have all of
this unless the Senate obstructs it.
Looking at the third chart, the Medicare bill will cover nearly all
prescription drug costs for low-income seniors--nearly all prescription
drug costs for low-income seniors. This is a terrific deal for our low-
income elderly in America. We will have this unless the Senate
obstructs it.
This Medicare bill will cover nearly all catastrophic drug costs for
seniors with high drug bills--nearly all catastrophic costs for seniors
with high prescription drug bills. Let me say that again. This Medicare
bill will cover 95 percent of catastrophic costs for seniors with high
prescription drug bills. This is a good deal for America's seniors and
we will have this unless the Senate obstructs it.
The Medicare bill will give seniors unprecedented choices. All of
these new choices in yellow on this chart are choices that are not
available to seniors today. Senior will have all of these new choices,
both the drug plan as well as comprehensive health plans with choices
that Federal workers currently enjoy, unless the Senate obstructs it.
The Medicare bill will use competition to stop waste and abuse and
give seniors group purchasing power. A specialty cane that Medicare
pays $44 for is purchased by the VA for $15. That waste of Medicare and
retirees' money will stop unless the Senate obstructs it.
This is a picture of that cane, for which Medicare currently
overpays, that the VA can get for a mere $15. Medicare pays $44. All of
this kind of waste will stop unless the Senate obstructs this bill.
The Medicare bill will protect seniors by keeping the drug benefits
both available and voluntary. Let me just say that again. This Medicare
bill will keep seniors' drug benefits both voluntary and available.
Retirees can keep what they have or get help to maintain their
employer-based plans, can get a drug benefit through traditional
Medicare, will get new choices in improved Medicare, will be protected
by a Government backup plan and substantial resources to make sure the
choices are really there, not just on paper but choices that are really
there. Seniors get all of this protection unless the Senate obstructs
it.
This Medicare bill will protect Medicare for tomorrow's seniors by
controlling costs and preserving the system. While the bill provides an
unprecedented amount of resources--again, almost one and a half times
what President Clinton proposed and a third more than Senate Democrats
wanted just 2 years ago--the bill requires that costs be monitored to
control spending in excess of $400 billion. The bill adds competitive
forces to drive down costs, reward efficiency, eliminate waste and
abuse, and weed out fraud so that Medicare will be preserved for our
children. All of this will happen unless the Senate obstructs this
measure.
Finally, looking at chart 9, the Medicare bill provides real
resources, real benefits, real health, real choice, real protections,
real competition, and real cost control. All of those items are in this
measure, and we will have a chance to approve it later this week.
After 38 years, seniors will finally get a good prescription drug
benefit unless the Senate obstructs it. I think it is the poorest and
frailest seniors who will suffer enormously from more obstructionism
this time against this Medicare prescription drug bill.
So that is where we are. This is a great new plan that will be before
the Senate later this week, an opportunity to really help seniors with
prescription drugs for the first time, after years of conversation. Let
us not miss that opportunity.
I yield the floor.
____________________
RECENT BROADCAST FLAG REGULATIONS
Mr. LEAHY. Mr. President, I rise today to commend the Federal
Communications Commission for its continuing work on the important
broadcast flag regulations. Over-the air-television remains a critical
part of the distribution of American television, and these regulations
help to promote and improve over-the-air broadcasting of high quality
digital programming. They do this by giving broadcasters the tools they
need to protect their digital broadcasts against piracy. Without this
protection, broadcasters would simply not broadcast their high value
content over the air, and we would be left with two classes of American
consumers: those who can afford, and live somewhere where they can
receive, cable television with its high-value content, and those who
receive only low-value over-the-air television. We must not allow this
to happen.
While I am encouraged by the FCC's progress, and in particular
pleased to see that they have taken steps to keep the setting of
technical criteria for protective technologies open and transparent,
the FCC's recent notice of proposed rulemaking raises some concerns.
First, the FCC should make the process inclusive of all parties with an
interest in the outcome, especially consumers. Second, a sound final
regulation should address the effect of a broadcast flag on fair use
rights and works that are already in the public domain. Third, the
final regulation should address the broadcast flag's effect on privacy.
What is intended as a technological measure to ensure the security of
over-the-air broadcasts should not turn into an ability to track viewer
behavior. Last, the final regulation must continue to ensure that no
one player becomes dominant in this industry, and that the American
consumer continues to reap the benefits of innovative new technologies.
Most of all, the FCC should not lose sight of the most important goal
of these regulations: to provide the highest quality
[[Page 29063]]
content possible through over-the-air television. I am confident that
it will do so.
____________________
NOMINATION OF JAMES COMEY
Mr. GRASSLEY. Mr. President, I rise today to state that I object to
proceeding to the consideration of executive nominee James Comey to be
Deputy Attorney General at the Justice Department.
I have placed a hold on this person because I have been unable to
resolve outstanding issues with the Justice Department. I have been
working with the Justice Department to get a satisfactory promise to
ensure there are no reprisals against certain Justice Department
employees in connection with testimony before the Senate Finance
Committee. Although I support Mr. Comey's nomination, I intend to
reserve my right to object to the Senate proceeding with this nominee
of this legislation at this time.
____________________
LOCAL LAW ENFORCEMENT ACT OF 2003
Mr. SMITH. Mr. President, I rise today to speak about the need for
hate crimes legislation. On May 1, 2003, Senator Kennedy and I
introduced the Local Law Enforcement Enhancement Act, a bill that would
add new categories to current hate crimes law, sending a signal that
violence of any kind is unacceptable in our society.
I would like to describe one such crime today. In protest of a
wedding between two men in Seattle, WA, several young men and one adult
who call themselves ``Deliverance Unlimited'' refused to leave a local
Christian Church. In the October 25, 2003 incident, the co-pastor of
the church asked the protestors to leave, and the group then began
verbally assaulting the church staff. One of the protestors,
Christopher Dudley, entered the sanctuary and began yelling that the
church needed to be cleansed of sin. He then vandalized the church by
spraying and wiping oil on the walls and furniture. The co-pastor told
police that he was afraid for his own life and the lives of his staff.
I believe that Government's first duty is to defend its citizens, to
defend them against the harms that come out of hate. The Local Law
Enforcement Enhancement Act is a symbol that can become substance. I
believe that by passing this legislation and changing current law, we
can change hearts and minds as well.
____________________
TRIBUTE TO BOB STILLER OF GREEN MOUNTAIN COFFEE ROASTERS
Mr. LEAHY. Mr. President, the Burlington Free Press recently ran a
story about expansion plans by Green Mountain Coffee Roasters in
Waterbury, VT. The company has begun work on a 52,000-square-foot
warehouse and distribution center that will significantly expand
manufacturing capacity. Under the leadership of Bob Stiller, Green
Mountain Coffee has consistently been rated one of the fastest growing
and best managed small public companies in the United States.
Small businesses are the backbone of Vermont's economy, and Green
Mountain Coffee has been an outstanding corporate partner in our State
for over 20 years. Started in a small cafe in Waitsfield, VT, in 1981,
growing into a publicly traded company in 1993, and now announcing this
$8.4 million expansion in Waterbury, Green Mountain has been a national
leader in the specialty coffee market and an international leader in
promoting fair trade coffee.
I commend Bob and all the employees at Green Mountain Coffee for
their success at not only selling great coffee but also promoting
sustainable farming throughout the world. I ask unanimous consent that
a copy of the article that appeared in the Burlington Free Press be
printed in the Record so that all Senators can read about the success
of this company.
There being no objection, the material was ordered to be printed in
the Record, as follows:
[From the Burlington Free Press, Nov. 6, 2003]
GMC Has Expansion Brewing
Green Mountain Coffee Roasters Inc. plans to begin
construction this month on a 52,000-square-foot warehouse and
distribution center in Waterbury in an $8.4 million project
that's intended to also expand the specialty coffee company's
manufacturing capacity, the company said Wednesday.
``We are impressed with Waterbury's support, which enables
us to expand our facilities in the downtown Waterbury
location contiguous to our manufacturing and roasting
operations,'' Green Mountain Coffee Chairman and CEO Robert
Stiller said.
Green Mountain Coffee said the company expects to save
money over the long term thanks to new automation equipment
to be installed in the new building. The additional warehouse
space also will allow for more product diversity and
eliminate outside storage expenses.
This expansion will mean the company's packaging,
warehousing and distribution capacities will match its
current coffee roasting capacity of about 40 million to 50
million pounds.
Moving functions into the new building will allow Green
Mountain Coffee to increase its packaging capacity in its
65,000-square-foot plant that houses its roasting, warehouse
and distribution operations, the company said.
The company expects the building to be finished by fall
2004, and the transfer of distribution and warehousing
functions completed by the spring 2005.
``This expansion is critical to our success in executing
our long-term growth plans to be the leader in roasting and
selling specialty coffee to a broad array of customers,''
Stiller said.
____________________
ADDITIONAL STATEMENTS
______
TRIBUTE TO MORTIMER CAPLIN
Mr. WARNER. Mr. President, I rise today to recognize a
remarkable man, Mr. Mortimer M. Caplin, on his outstanding legal career
as an academic, public servant and distinguished practitioner. Through
the years, Mr. Caplin, has been an inspiration to us all and a shining
example of what hard work, dedication and perseverance can accomplish.
I feel a special connection with Mr. Caplin as we both graduated from
the University of Virginia School of Law and both served our country
proudly during World War II in the United States Navy. As an
undergraduate and law student at the University of Virginia, Mr. Caplin
earned a reputation as a hard working student who always had time to
lend a helping hand. During his undergraduate career at Mr. Jefferson's
University, Mr. Caplin was elected to Phi Beta Kappa while becoming a
standout on Johnny LaRowe's great boxing teams of the mid '30's.
After earning his Bachelor of Science degree, Mr. Caplin went on to
the University's law school where he continued his excellent academic
career and his affiliation with the University's boxing team. As coach
of the First Year team, Mr. Caplin instilled in the newly arrived First
Years the value of a well rounded education. He also managed to find
the time to be selected and serve as Editor-in-Chief of the Virginia
Law Review in 1940.
Upon graduation in 1940, Mr. Caplin clerked for Judge Armistead M.
Dobie on the United States Court of Appeals for the Fourth Circuit in
Richmond. Upon completing his clerkship, he joined the New York law
firm Paul, Weiss, Rifkind, Wharton & Garrison as an associate but, like
so many of us during this era, interrupted his career to defend this
country and the freedom we all enjoy. Mr. Caplin joined the Navy and on
June 6, 1944, came ashore on Omaha Beach as a member of the initial
landing force where he served as U.S. Navy beachmaster.
After the war, Mr. Caplin returned to the legal profession and
eventually made his way back to the University of Virginia in 1950
where he became a law professor concentrating on tax and corporate law.
From 1950 to 1962, he taught countless students the value of a legal
education until he was again called into public service by President
John F. Kennedy to head the Internal Revenue Service.
After retiring from the post in 1964, Mr. Caplin received the
Alexander Hamilton Award, the highest honor bestowed by the Treasury
Department. Thereafter, he founded Caplin & Drysdale which became, and
remains today, one of the leading tax firms in
[[Page 29064]]
the United States. Mr. Caplin was the 2001 recipient of the Thomas
Jefferson Foundation Medal in Law which is awarded to individuals that
exemplify the Jeffersonian ideal of the lawyer as public citizen. He
truly embodies this ideal and it is right to honor his accomplishments.
On May 18, 2003, Mr. Caplin was invited to address the University of
Virginia's 2003 graduating class. His words about the importance of
public service are an inspiration to us all. As a tribute to his
achievements and his contributions, I ask that his remarks be entered
into the Record at this time.
The remarks follow:
A Debt of Service
I must confess, in trying to recall who spoke and what was
said at my own college graduation--``The Great Class of
1937''--my mind remains a blank.
The one commencement I do remember was here at my law
graduation in 1940. The speaker was the president of the
United States--Franklin Delano Roosevelt. He came to the
University to attend the law graduation of his son, Franklin
Jr., one of our classmates.
The Nazi armies of Adolph Hitler were then overrunning
Europe and threatening the freedom of the entire world. On
that very morning, Mussolini's fascist forces--joining
Hitler--had invaded their neighbor France. Soon, every member
of our class would be required to register under the
vigorously debated Selective Service Act, the first peacetime
military draft in our nation's history.
In Memorial Gymnasium, the president delivered a historic
speech--the most sensitive part inserted by him during his
train ride from Washington, contrary to the State
Department's specific pleas that America's neutrality would
be compromised.
FDR dramatically declared: ``On this tenth day of June
1940, the hand that held the dagger has struck it into the
back of its neighbor. On this tenth day of June 1940, in this
University founded by the first great American teacher of
democracy, we send forth our prayers and our hopes to those
beyond the seas who are maintaining with magnificent valor
their battle for freedom.''
Remember, in 1940 there was no television, no cell phones,
no Internet. Until then, we heard President Roosevelt only on
the radio. To have the president of the United States before
us in person, delivering to the world his famous ``dagger-in-
the-back'' speech, is a moment I will never forget.
That day, he also gave us a glimpse into what lay before us
when he solemnly committed, for the first time and without
congressional approval, to ``extend . . . the material
resources of this nation'' to the embattled democracies.
First Lady Eleanor Roosevelt later said: ``Franklin's
address was not just a commencement address, it was a speech
to the nation . . . that brought us one step nearer to total
war.''
For us, World War II had begun. It was not at all what we
graduates had been planning.
As a law student, I spent many hours thinking about my
postgraduation career and dreams. I had already accepted a
legal clerkship with Judge Armistead Mason Dobie, our former
Law School dean and, at that time, a U.S. Circuit Court of
Appeals judge. Next, I would go to New York to begin the
practice of law. With two U.Va. degrees in hand, I felt
prepared to face and perhaps conquer the world. But on Dec.
7, 1941, the Japanese attacked Pearl Harbor and all our lives
changed.
I had hardly begun my Wall Street law practice, when I
found myself in uniform, commissioned an ensign, U.S. Naval
Reserve. When my training was completed, I said goodbye to
Ruth, my wife of just one year, and set sail for duty as a
beachmaster on Omaha Beach on June 6, 1944, for the D-Day
landing on the Normandy coast of France.
World War II and the Navy did teach me a number of
important life skills--many still of help in my private
career. Two, in particular, are worth remembering. First,
avoid fixed and rigid plans. Instead, allow for flexibility,
innovation and possible change--but always hold true to your
personal values. Second, be willing to accept risk when
necessary as you move forward toward your goals.
Philosopher William James acutely observed: ``It is only by
risking our persons from one hour to another that we live at
all. And often enough our faith beforehand in an uncertified
result is the only thing that makes the result come true.''
Simply put, have faith in your choices, and be at the ready
to risk challenge as well as change. You will grow in
strength as you do.
We've heard a great deal of late about those involved in
what has been dubbed ``The Greatest Generation''--glorifying
our ordinary citizens who, through hard work, courage and
sacrifice, successfully confronted the Great Depression and
World War II. Let me confess, though--as a duly designated
member of that body--I find the anointment somewhat overdone.
Countless generations, both before and after--including
today--have also faced challenging times and national crises.
And, in each case, everyday Americans have always
demonstrated equal patriotism, equal devotion, equal
courage--all inherently part of our national culture,
traditions and training.
What may we expect of your generation? A former U.Va. Law
School student of mine--who later became attorney general of
the United States--Robert F. Kennedy, offered an answer in
his 1966 Capetown University speech: ``Few will have the
greatness to bend history; but each of us can work to change
a small portion of events, and in the total of all these acts
will be written the history of this generation.''
Mr. Jefferson consistently laid stress on, not just the
rights of citizens of this country, but also on the
responsibilities. Writing in 1796--shortly before he assumed
the unhappy post of vice president--he stated strongly:
``There is a debt of service due from every man to his
country, proportioned to the bounties which nature and
fortune have measured to him.''
____________________
RECOGNITION OF JAMES J. GILLIN, JR.
Mr. SPECTER. Mr. President, I rise today to salute James J.
Gillin, Jr., of Philadelphia, a premier Pennsylvania business and
community leader. Pennsylvanians for Effective Government, the
Commonwealth's oldest and largest probusiness PAC, recently recognized
Jim Gillin's contributions by selecting him to receive its prestigious
new civic leadership award.
The Clifford L. Jones Award, which Jim will formally receive next
month, recognizes Pennsylvanians who ``have demonstrated exemplary
civic leadership in support of free enterprise and democratic
processes'' and focuses on a lifetime of achievement rather than a
single effort.
Jim Gillin certainly qualifies. He was president of the Philadelphia-
based Petroleum Heat and Power Company, a major fuel distributor
throughout the Delaware Valley. He was also a member of the Executive
Board of Continental Bank of New Jersey, president of Transport
Employers, Inc., and chairman of the Philadelphia Parking Authority.
Jim was also active politically, serving as treasurer of the
Philadelphia County Democratic Executive Committee and as a member of
the Democratic House and Senate Council in Washington, DC. He has
always been bipartisan, willing to reach across the aisle to support
political leaders who support business.
Jim has helped shape PEG for a quarter century, serving as chairman
from 1985 through 1989 and on its board since 1979. He also played
major roles at the Pennsylvania Chamber of Business and Industry during
the late 1980s.
PEG has made a superb choice in presenting its important new award to
Jim Gillin. I join them in their tribute.
____________________
RECOGNITION OF BING JUDD
Mr. GREGG. Mr. President, this January, Burnham A. Judd will
be stepping down from his position as chairman of the Board of
Selectmen of Pittsburg, NH. Bing, as he is known to all throughout New
Hampshire's North Country, has served on the board in Pittsburg for 34
years, since 1969, and I rise in tribute to his outstanding service to
his community, its residents and the State of New Hampshire throughout
this time.
Pittsburg is New Hampshire's largest town in area and its farthest
north, sharing borders with Canada, Maine, and Vermont. Located well
north of the notches through New Hampshire's White Mountains, Pittsburg
contains the majestic Connecticut Lakes and Lake Francis, headwaters of
the Connecticut River, and areas of unparalleled scenic and wild
beauty. It is a community with a rich heritage of residents skilled in
the ways of the woods and with a passion for life in the outdoors.
Throughout its rich history, no one has been more true to the
community, its residents, its landscape, and its lifestyles than Bing
Judd. An avid and skillful sportsman, knowledgeable in the woods and
with an uncanny knack of always knowing where the fish are, his vast
experience includes a varied and accomplished record of service to the
public: A Pittsburg road agent in the 1960s, a New Hampshire State
Representative in 1974, 17 years of service
[[Page 29065]]
as a forest ranger for the State of New Hampshire from 1975 to 1992, a
New Hampshire fish and game commissioner for 10 years, on the Pittsburg
Police and Fire Departments for many years and service continuing to
this day as Pittsburg health officer, as a Coos County commissioner
since 1997 and on the State of New Hampshire's Water Resources Council
and New Hampshire Wetlands Board. In addition, as chairman of the
Connecticut Lakes Headwaters Citizens Advisory Committee, Bing has
been, and continues to be, instrumental in assisting to guide policy
for preserving and protecting the vital water and woodland resources of
this important region, especially in the recent successful effort to
preserve for future generations and traditional uses over 170,000 acres
of area woodlands.
In my time of service to New Hampshire as Second District
Congressman, Governor and U.S. Senator, I have had no higher privilege
than to count on Bing Judd for his sound judgement, sage advice and
friendship. I know of no individual more dedicated to his community and
his region or more able in its governance. The Town of Pittsburg, Coos
County, and the State of New Hampshire have been fortunate he has been
willing to share his wisdom and experience on our behalf for so well
and for so long. While he will continue to serve his town, region, and
State in many roles, it is important his longevity of quality service
to his town as selectman be recognized and honored. It is because of
the outstanding community service performed by citizens like Bing Judd
that civil needs are met, our communities prosper, and our Nation hands
to future generations a landscape and a society better off for his
selfless and committed participation.
I thank Bing Judd on behalf of his many constituents and neighbors of
Pittsburg, NH, who he has served and helped throughout the
years.
____________________
TRIBUTE TO THE 100TH ANNIVERSARY OF THE BELLOWS FREE ACADEMY OF
FAIRFAX, VT
Mr. JEFFORDS. Mr. President, I rise today to recognize the
100th anniversary of the founding of Bellows Free Academy in Fairfax,
VT.
Bellows Free Academy is one of the last schools in Vermont that
serves student from kindergarten through 12th grade. As such, many
families in Fairfax enjoy the advantage of having their children attend
the facility from their first day of school through high school
graduation.
And it is a very nice facility. The original 1903 building, which
burned down in January 1941, was replaced and dedicated in 1942.
Additions in 1960, 1973, 1990, and 1999 have kept the school up to date
with modern space, equipment and facilities. Located in the heart of
one of Vermont's fastest growing towns, BFA is a venerable school whose
playgrounds and athletic fields are framed by woods and meadows, with a
new land acquisition providing access to the nearby Lamoille River.
Several vantage points reveal majestic views of Mount Mansfield,
Vermont's tallest mountain.
In discussing BFA, a point of clarity is in order, as there are two
schools in Vermont named Bellows Free Academy, and both are in Franklin
County. Each school owes its founding to the same benefactor, but
people in Fairfax are quick to point out that theirs is the original
BFA, even if it is smaller, in terms of student enrollment, to its
namesake in St. Albans.
BFA, Fairfax, was established through the generous provisions of the
1876 will of Hiram Bellows, who was born in Fairfax in 1798.
As a young person, Hiram Bellows lived at the farm of his birth and
attended grammar school at a nearby schoolhouse. He advanced to the
small graded school in town when good fortune brought a college
graduate to Fairfax to teach for a short period of time. Hiram was
unable to progress further in formal education, however, because his
parents could not afford the academy fees to attend the high school
equivalent of his day.
Hiram Bellows was an industrious man and an able judge of character.
For some time, he made his living operating a general store and
`tinkering' in real estate. It is said that he liked to bargain, and
invariably whittled on a piece of wood while studying the face of the
man with whom a deal was being contemplated.
He served as State senator from Franklin County; was a charter member
of the Vermont and Canada Railroad Company; founding associate of the
Parish of Christ Church, Episcopal; and first president of the First
National Bank of St. Albans.
In regard to his nature and character, a niece once recalled that he
was ``a kind, delightful gentleman, whose house was always open.''
Upon his death, Hiram Bellows' will included provisions for the
establishment of a free academy in Fairfax. Here follows several terms
of his will:
I give, and bequeath in trust to my native town of Fairfax,
two hundred and fifty shares in the Chicago, Rock Island and
Pacific Railroad Company, the par value, one hundred dollars
each.
The dividends thereon as far as practical, to be invested
in said stock, until the same shall amount to two hundred and
fifty thousand dollars, for the purpose of establishing a
free school in said town of Fairfax. Said school to be
located upon the premises hereinafter mentioned and
described.
Said school to be known and called `the Bellows Free
Academy of Fairfax, Vermont'. In which Academy the primary
and higher branches of learning shall be taught. Said Academy
shall be conducted in all respects in such a manner as to
further the education of children and young men, so as to fit
them for usefulness, and so as is practical, it is my wish
that children of indigent parents receive an advantage of
said school in preference to those who have ample means of
support of their children . . .
And so, in the same year that Orville and Wilbur Wright achieved
human flight from a sand dune in Kitty Hawk, NC, Hiram Bellows' estate
of railroad stock founded a free academy on a village lot in Fairfax,
VT.
Generations of Hiram Bellows' family have attended and graduated from
the school he so generously established. I am told his descendants
attend BFA to this day. And with the generations of Bellows', so have
been graduated generation after generation of other familiar Fairfax
families.
A school of course, does not exist and cannot thrive in and of
itself. In this regard, Fairfax has a strong tradition of community
support for its school, and that tradition is reflected in the quality
of students, teachers, administrators, directors, and staff at BFA over
the century of its existence.
The list of those responsible for the continued growth and success of
the academy goes on and on. There are specific individuals who, I am
sure, are worthy of specific praise. But perhaps even more importantly,
there are the countless people who contribute immeasurable hours in
innumerable ways to endless projects. They are the backbone of the
community; they comprise the sustaining force of the school.
So the Bellows Free Academy of Fairfax owes its beginnings to a
remarkable man named Hiram Bellows. It does its proud history to its
administration, teachers, students, and above all, its community.
Its future depends on sustaining all of the above. And while there
are indeed numerous families who count generations of graduates from
Bellows Free Academy, judging by its rate of growth, Fairfax also
benefits greatly from contributions of newer residents, many drawn to
this community, I suspect, precisely because of the strong reputation
of its school system.
So, it is with great pleasure that I offer my congratulations to all
those, past and present, involved with the Bellows Free Academy of
Fairfax, VT.
Moreover, I am pleased to recognize the generosity and foresight of
its founder, Hiram Bellows.
Happy 100th birthday, BFA.
____________________
MESSAGES FROM THE PRESIDENT
Messages from the President of the United States were communicated to
the Senate by Ms. Evans, one of his secretaries.
____________________
EXECUTIVE MESSAGES REFERRED
As in executive session the Presiding Officer laid before the Senate
messages
[[Page 29066]]
from the President of the United States submitting a treaty, and sundry
nominations which were referred to the appropriate committees.
(The nominations received today are printed at the end of the Senate
proceedings.)
____________________
MEASURES PLACED ON THE CALENDAR
The following bills were read the second time, and placed on the
calendar:
S. 1862. A bill to provide certain exceptions from
requirements for bilateral agreements with Australia and the
United Kingdom for exemptions from the International Traffic
in Arms Regulations.
S. 1863. A bill to authorize the transfer of certain naval
vessels.
S. 1864. A bill to enhance the security of the United
States and United States allies.
S. 1865. A bill to enhance the security of the United
States and United States allies.
S. 1866. A bill to enhance the security of the United
States and United States allies.
____________________
MEASURES READ THE FIRST TIME
The following bill was read the first time:
S. 1875. A bill to amend the Employee Retirement Income
Security Act of 1974, the Public Health Service Act, and the
Internal Revenue Code of 1986 to extend the mental health
benefits parity provisions for an additional year.
____________________
EXECUTIVE AND OTHER COMMUNICATIONS
The following communications were laid before the Senate, together
with accompanying papers, reports, and documents, and were referred as
indicated:
EC-5240. A communication from the Secretary of Agriculture,
transmitting, a draft of proposed legislation relative to the
Commodity Promotion, Research, and Information Act of 1996;
to the Committee on Agriculture, Nutrition, and Forestry.
EC-5241. A communication from the Chairman of the Board of
Governors of the Federal Reserve System and the Secretary of
the Treasury, transmitting, pursuant to law, a report
relative to financial holding companies; to the Committee on
Banking, Housing, and Urban Affairs.
EC-5242. A communication from the Acting Director, Office
of Sustainable Fisheries, National Marine Fisheries Service,
transmitting, pursuant to law, the report of a rule entitled
``Closure of the Commercial Fishery for King Mackerel in the
Exclusive Economic Zone in the Western Zone of the Gulf of
Mexico'' received on November 13, 2003; to the Committee on
Commerce, Science, and Transportation.
EC-5243. A communication from the Deputy Associate
Administrator, Environmental Protection Agency, transmitting,
pursuant to law, the report of a rule entitled ``Colorado:
Final Authorization of State Hazardous Waste Management
Program Revision'' (FRL#7586-9) received on November 13,
2003; to the Committee on Environment and Public Works.
EC-5244. A communication from the Deputy Associate
Administrator, Environmental Protection Agency, transmitting,
several documents related to the Agency's regulatory
programs; to the Committee on Environment and Public Works.
EC-5245. A communication from the Acting Chief,
Publications and Regulations Branch, Internal Revenue
Service, transmitting, pursuant to law, the report of a rule
entitled ``Annual Pensions Plan, etc. Cost of Living
Adjustments for 2004'' (Notice 2003-73) received on November
13, 2003; to the Committee on Finance.
EC-5246. A communication from the Acting Chief,
Publications and Regulations Branch, Internal Revenue
Service, transmitting, pursuant to law, the report of a rule
entitled ``Weighted Average Interest Rate Update Notice''
(Notice 2003-74) received on November 13, 2003; to the
Committee on Finance.
EC-5247. A communication from the Acting Chief,
Publications and Regulations Branch, Internal Revenue
Service, transmitting, pursuant to law, the report of a rule
entitled ``Bureau of Labor Statistics Price Indexes for
Department Stores'' (Rev. Rule 2003-121) received on November
13, 2003; to the Committee on Finance.
EC-5248. A communication from the Acting Chief,
Publications and Regulations Branch, Internal Revenue
Service, transmitting, pursuant to law, the report of a rule
entitled ``TD: Return of Partnership Income'' (RIN1545-BC01)
received on November 13, 2003; to the Committee on Finance.
EC-5249. A communication from the Acting Chief,
Publications and Regulations Branch, Internal Revenue
Service, transmitting, pursuant to law, the report of a rule
entitled ``CPI Adjustment for Section 7872(g) for 2004''
(Rev. Rul. 2003-118) received on November 13, 2003; to the
Committee on Finance.
EC-5250. A communication from the Acting Chief,
Publications and Regulations Branch, Internal Revenue
Service, transmitting, pursuant to law, the report of a rule
entitled ``Computation of Required Interest Using Mean
Reserves'' (Rev. Rul. 2003-120) received on November 13,
2003; to the Committee on Finance.
EC-5251. A communication from the Acting Chief,
Publications and Regulations Branch, Internal Revenue
Service, transmitting, pursuant to law, the report of a rule
entitled ``Tax Exempt Bond Partnership Revenue Procedure''
(Rev. Proc. 2003-84) received on November 13, 2003; to the
Committee on Finance.
EC-5252. A communication from the Acting Chief,
Publications and Regulations Branch, Internal Revenue
Service, transmitting, pursuant to law, the report of a rule
entitled ``CPI Adjustment for Section 1274A for 2004'' (Rev.
Rul. 2003-119) received on November 13, 2003; to the
Committee on Finance.
EC-5253. A communication from the Assistant Secretary for
Legislative Affairs, Department of State, transmitting,
pursuant to the Arms Export Control Act, a request to permit
the use of Foreign Military Financing for the sale of 125
M1A1 ABRAMS tank kits for Egypt; to the Committee on Foreign
Relations.
EC-5254. A communication from the Assistant Secretary for
Legislative Affairs, transmitting, pursuant to the Arms
Export Control Act, the report of a certification of a
proposed license for the export of defense articles or
defense services sold commercially under a contract in the
amount of $100,000,000 or more to the United Kingdom; to the
Committee on Foreign Relations.
EC-5255. A communication from the Assistant Secretary for
Legislative Affairs, transmitting, pursuant to the Arms
Export Control Act, the report of the certification of a
proposed license for the export of defense articles and
defense services sold under a contract in the amount of
$50,000,000 or more; to the Committee on Foreign Relations.
EC-5256. A communication from the Director, Office of
Personnel Management, transmitting, pursuant to law, the
report of a rule entitled ``Miscellaneous Changes in Office
of Personnel Management's Regulations'' (RIN3206-AJ54)
received on November 13, 2003; to the Committee on
Governmental Affairs.
EC-5257. A communication from the Director, Workforce
Compensation and Performance Service, Office of Personnel
Management, transmitting, pursuant to law, the report of a
rule entitled ``Final Regulations Locality-Based
Comparability Payments'' (RIN3206-AI81) received on November
13, 2003; to the Committee on Governmental Affairs.
____________________
REPORTS OF COMMITTEES
The following reports of committees were submitted:
By Mr. GREGG, from the Committee on Health, Education,
Labor, and Pensions, with an amendment in the nature of a
substitute:
S. 720. A bill to amend title IX of the Public Health
Service Act to provide for the improvement of patient safety
and to reduce the incidence of events that adversely effect
patient safety (Rept. No. 108-196).
By Mr. SPECTER, from the Committee on Veterans' Affairs,
with an amendment in the nature of a substitute:
S. 1136. A bill to restate, clarify, and revise the
Soldiers' and Sailors' Civil Relief Act of 1940 (Rept. No.
108-197).
By Mr. INHOFE, from the Committee on Environment and Public
Works, with an amendment in the nature of a substitute:
S. 793. A bill to provide for increased energy savings and
environmental benefits through the increased use of recovered
mineral component in federally funded projects involving
procurement of cement or concrete (Rept. No. 108-198).
By Mr. HATCH, from the Committee on the Judiciary, without
amendment and with a preamble:
S. Res. 253. A resolution to recognize the evolution and
importance of motorsports.
____________________
EXECUTIVE REPORTS OF COMMITTEES
The following executive reports of committees were submitted:
By Mr. HATCH for the Committee on the Judiciary.
James B. Comey, of New York, to be Deputy Attorney General.
*Michael J. Garcia, of New York, to be an Assistant
Secretary of Homeland Security.
Federico Lawrence Rocha, of California, to be United States
Marshal for the Northern District of California for the term
of four years.
*Nomination was reported with recommendation that it be confirmed
subject to the nominee's commitment to respond to requests to appear
and testify before any duly constituted committee of the Senate.
(Nominations without an asterisk were reported with the
recommendation that they be confirmed.)
[[Page 29067]]
____________________
INTRODUCTION OF BILLS AND JOINT RESOLUTIONS
The following bills and joint resolutions were introduced, read the
first and second times by unanimous consent, and referred as indicated:
By Mr. CRAIG (for himself, Ms. Cantwell, Mrs. Murray,
Mr. Enzi, Mr. Burns, and Mr. Baucus):
S. 1868. A bill to authorize a 3-year demonstration program
to recruit and train physicians to serve in rural settings;
to the Committee on Health, Education, Labor, and Pensions.
By Mrs. FEINSTEIN:
S. 1869. A bill for the relief of Robert Kuan Liang and
Chun-Mei Hsu-Liang; to the Committee on the Judiciary.
By Mr. SMITH (for himself and Mr. Wyden):
S. 1870. A bill to establish an alternative trigger for
determining if an extended benefit period is in effect for a
State for purposes of certain benefits under the Temporary
Extended Unemployment Compensation Act of 2002; to the
Committee on Finance.
By Mr. HATCH (for himself, Mr. Leahy, and Mr.
Chambliss):
S. 1871. A bill to authorize salary adjustments for
Justices and judges of the United States for fiscal year
2004; to the Committee on the Judiciary.
By Mr. SMITH (for himself, Mr. Biden, Mr. Chambliss,
Mr. Cochran, Mr. Hagel, Mr. Lieberman, Mr. Lugar, and
Mr. Voinovich):
S. 1872. A bill to award a congressional gold medal to Lord
Robertson of Port Ellen; to the Committee on Banking,
Housing, and Urban Affairs.
By Mr. DASCHLE (for Mr. KERRY):
S. 1873. A bill to require employees at a call center who
either initiate or receive telephone calls to disclose the
physical location of such employees, and for other purposes;
to the Committee on Commerce, Science, and Transportation.
By Mr. FEINGOLD (for himself and Mr. McCain):
S. 1874. A bill to require Senate candidates to file
designations, statements, and reports in electronic form; to
the Committee on Rules and Administration.
By Mr. GREGG (for himself and Mr. Kennedy):
S. 1875. A bill to amend the Employee Retirement Income
Security Act of 1974, the Public Health Service Act, and the
Internal Revenue Code of 1986 to extend the mental health
benefits parity provisions for an additional year; read the
first time.
____________________
ADDITIONAL COSPONSORS
S. 50
At the request of Mr. Johnson, the name of the Senator from New
Jersey (Mr. Corzine) was added as a cosponsor of S. 50, a bill to amend
title 38, United States Code, to provide for a guaranteed adequate
level of funding for veterans health care, and for other purposes.
S. 417
At the request of Ms. Snowe, the name of the Senator from Maryland
(Ms. Mikulski) was added as a cosponsor of S. 417, a bill to amend
title 5, United States Code, to ensure that coverage of bone mass
measurements is provided under the health benefits program for Federal
employees.
S. 419
At the request of Ms. Snowe, the name of the Senator from Maryland
(Ms. Mikulski) was added as a cosponsor of S. 419, a bill to amend
title XVIII of the Social Security Act to expand coverage of bone mass
measurements under part B of the medicare program to all individuals at
clinical risk of osteoporosis.
S. 595
At the request of Mr. Hatch, the name of the Senator from Alaska (Ms.
Murkowski) was added as a cosponsor of S. 595, a bill to amend the
Internal Revenue Code of 1986 to repeal the required use of certain
principal repayments on mortgage subsidy bond financings to redeem
bonds, to modify the purchase price limitation under mortgage subsidy
bond rules based on median family income, and for other purposes.
S. 596
At the request of Mr. Ensign, the name of the Senator from Colorado
(Mr. Allard) was added as a cosponsor of S. 596, a bill to amend the
Internal Revenue Code of 1986 to encourage the investment of foreign
earnings within the United States for productive business investments
and job creation.
S. 664
At the request of Mr. Hatch, the name of the Senator from Connecticut
(Mr. Dodd) was added as a cosponsor of S. 664, a bill to amend the
Internal Revenue Code of 1986 to permanently extend the research
credit, to increase the rates of the alternative incremental credit,
and to provide an alternative simplified credit for qualified research
expenses.
S. 1143
At the request of Mrs. Hutchison, the name of the Senator from
Maryland (Ms. Mikulski) was added as a cosponsor of S. 1143, a bill to
amend the Public Health Service Act to direct the Secretary of Health
and Human Services to establish, promote, and support a comprehensive
prevention, research, and medical management referral program for
hepatitis C virus infection.
S. 1172
At the request of Mr. Frist, the name of the Senator from Oregon (Mr.
Wyden) was added as a cosponsor of S. 1172, a bill to establish grants
to provide health services for improved nutrition, increased physical
activity, obesity prevention, and for other purposes.
S. 1195
At the request of Mr. Kyl, the name of the Senator from Maine (Ms.
Snowe) was added as a cosponsor of S. 1195, a bill to amend title XIX
of the Social Security Act to clarify that inpatient drug prices
charged to certain public hospitals are included in the best price
exemptions for the medicaid drug rebate program.
S. 1197
At the request of Mr. Enzi, the name of the Senator from Arkansas
(Mrs. Lincoln) was added as a cosponsor of S. 1197, a bill to amend the
Public Health Service Act to ensure the safety and accuracy of medical
imaging examinations and radiation therapy treatments.
S. 1246
At the request of Mr. Roberts, the name of the Senator from
Pennsylvania (Mr. Specter) was added as a cosponsor of S. 1246, a bill
to amend the Internal Revenue Code of 1986 to provide for collegiate
housing and infrastructure grants.
S. 1647
At the request of Mr. Johnson, the name of the Senator from Iowa (Mr.
Harkin) was added as a cosponsor of S. 1647, a bill to amend title
XVIII of the Social Security Act to provide for direct access to
audiologists for medicare beneficiaries, and for other purposes.
S. 1793
At the request of Mr. Kennedy, the name of the Senator from Louisiana
(Ms. Landrieu) was added as a cosponsor of S. 1793, a bill to provide
for college quality, affordability, and diversity, and for other
purposes.
S. 1841
At the request of Mrs. Clinton, the name of the Senator from Arkansas
(Mr. Pryor) was added as a cosponsor of S. 1841, a bill to amend title
10, United States code, to provide for the award of a military service
medal to members of the Armed Forces who served honorably during the
Cold War era.
S. 1856
At the request of Mrs. Clinton, the name of the Senator from New York
(Mr. Schumer) was added as a cosponsor of S. 1856, a bill to designate
the Department of Veterans Affairs outpatient clinic in Sunnyside,
Queens, New York, as the ``Thomas P. Noonan, Jr., Department of
Veterans Affairs Outpatient Clinic''.
S. RES. 253
At the request of Mr. Campbell, the names of the Senator from Indiana
(Mr. Lugar) and the Senator from New York (Mrs. Clinton) were added as
cosponsors of S. Res. 253, a resolution to recognize the evolution and
importance of motorsports.
S. RES. 263
At the request of Mr. Grassley, the name of the Senator from Vermont
(Mr. Leahy) was added as a cosponsor of S. Res. 263, a resolution
honoring the men and women of the Drug Enforcement Administration on
the occasion of its 30th Anniversary.
[[Page 29068]]
____________________
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. DASCHLE (for Mr. Kerry):
S. 1873. A bill to require employees at a call center who either
initiate or receive telephone calls to disclose the physical location
of such employees, and for other purposes; to the Committee on
Commerce, Science, and Transportation.
(At the request of Mr. Daschle, the following statement was ordered
to be printed in the Record.)
Mr. KERRY. Mr. President, I am pleased to introduce today the
``Call Center Consumer's Right to Know Act.'' This legislation is in
response to the mounting evidence showing that U.S. corporations are
rapidly shifting hundreds of thousands high-tech and service sector
jobs abroad. Labor officials, business leaders, economists, elected
officials and ordinary Americans are concerned that this bleeding of
American jobs will further slow our economy. In addition to the more
than 2 million manufacturing jobs that have been lost since 2000, some
have indicated that we may also be witnessing the largest out-sourcing
of non-manufacturing jobs in the history of the U.S. economy. The
statistics are staggering. In the month of July 2003 alone, between
25,000 and 30,000 jobs were outsourced to India. According to the
Bureau of Labor Statistics, roughly one in ten jobs held by Americans
in 2001 are now at risk to be outsourced abroad.
These jobs are not specific to one sector or a select few companies,
but span a broad array of services, including customer call service
centers, payroll and other back-office related activities, stock market
research for financial firms, medical transcription services, legal
online database research and data analysis for consulting firms. In
addition, firms involved with software services and business process
outsourcing are rapidly expanding to a host of different countries,
including India, the Philippines, Malaysia, China, Russia, Israel, and
Ireland.
In addition to rapid service sector job losses, consumers are
concerned with the growing threat of identity theft. So far, efforts to
stem this tide and keep up with the technological advancements that
enable these crimes have done little to allay concerns. This trend
becomes all the more alarming when millions of calls involving personal
financial transactions are routed beyond our borders, where they are
not protected by our laws and law enforcement. Aside from the very
serious concerns related to identify theft, there is also a consumer
awareness element of this problem, as very few Americans are aware that
the person on the other end of the telephone line is in another
country. Americans should have full information about the outsourcing
of call center jobs when they decide who they will purchase their
products and services from.
The ``Call Center Consumer's Right to Know Act'' is a simple and
straightforward answer to the challenges posed by these unprecedented
service sector job losses and growing risks of identity theft. The bill
simply requires call center representatives to disclose their physical
location at the beginning of each phone call. Consumers will therefore
have important information about who is providing the services in
question and the level of risk involved in proceeding with their
transaction by phone. This legislation will help American consumers
make informed choices about who is providing the services they
purchase, and at the same time, addresses the growing problem of U.S.
corporations moving hundreds of thousands of service sector jobs
abroad. Furthermore, my bill will go a long way to restoring consumer
confidence in the booming call center market and help provide a measure
of security for telephone and Internet consumer transactions.
There can be no doubt that the outsourcing of these important
American service sector jobs abroad has played a part in the jobless,
or what some call the ``job-loss'' economic recovery of 2003. It is
predicted that future outsourcing of service sector jobs may provide
more costly to the US. economy than the loss of American manufacturing
jobs we are witnessing today. Unfortunately, the economics that
produced this trend are unlikely to change without a concerted effort
to both provide companies with an incentive to keep their jobs in
American and promote consumer awareness of the services they
unknowingly purchase from other countries. This is precisely what the
Call Center Consumer's Right to Know Act seeks to accomplish.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1873
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Call Center Consumer's Right
to Know Act of 2003''.
SEC. 2. CALL CENTER REQUIREMENTS.
(a) In General.--A United States corporation or its
subsidiaries that utilizes a call center to initiate
telephone calls to, or receive telephone calls from,
individuals located in the United States, shall require each
employee in the call center to disclose the physical location
of such employee at the beginning of each telephone call so
initiated or received.
(b) Certification Requirement.--A corporation or subsidiary
described in subsection (a) shall annually certify to the
Federal Trade Commission whether or not the corporation or
subsidiary, and the employees of the corporation or
subsidiary at its call centers, have complied with that
subsection.
(c) Noncompliance.--A corporation or subsidiary that
violates subsection (a) shall be subject to such civil
penalties as the Federal Trade Commission prescribes under
section 3.
(d) Call Center Defined.--In this section, the term ``call
center'' means a location that provides customer-based
service and sales assistance or technical assistance and
expertise to individuals located in the United States via
telephone, the Internet, or other telecommunications and
information technology.
SEC. 3. FEDERAL TRADE COMMISSION RULES.
Not later than 9 months after the date of enactment of this
Act, the Federal Trade Commission shall prescribe rules to
provide for effective monitoring and compliance with this
Act. The Federal Trade Commission's rulemaking shall include
appropriate civil penalties for noncompliance with this Act.
______
By Mr. FEINGOLD (for himself and Mr. McCain):
S. 1874. A bill to require Senate candidates to file designations,
statements, and reports in electronic form; to the Committee on Rules
and Administration.
Mr. FEINGOLD. Mr. President, today I will introduce with the Senator
from Arizona, Mr. McCain, a bill to bring Senate campaigns into the
21st century by requiring that Senate candidates file their campaign
finance disclosure reports electronically and that those reports be
promptly made available to the public. This step is long overdue, and I
hope the Senate will act quickly on this legislation.
A recent report by the Campaign Finance Institute highlighted the
anomaly in the election laws that makes it nearly impossible for the
public to get access to Senate campaign finance reports while most
other reports are available on the Internet within 24 hours of their
filing with the Federal Election Commission (FEC). The Campaign Finance
Institute report opened with a rhetorical question: ``What makes the
Senate so special that it exempts itself from a key requirement of
campaign finance disclosure that applies to everyone else, including
candidates for the House of Representatives and Political Action
Committees?''
The answer, of course, is nothing. The United States Senate is
special in many ways. I am proud to serve here. But there is no
justification for not making our campaign finance information as
readily accessible to the public as the information filed by House
candidates or others.
My bill amends the section of the election laws dealing with
electronic filing to require reports filed with the Secretary of the
Senate to be filed electronically and forwarded to the FEC within 24
hours. The FEC is required to make available on the Internet within 24
hours any filing it receives electronically. So if this bill is
enacted, electronic versions of Senate
[[Page 29069]]
reports should be available to the public within 48 hours of their
filing. That will be a vast improvement over the current situation,
which, according to CFI, requires journalists and interested members of
the public to review computer images of paper-filed copies of reports,
and involves a completely wasteful expenditure of hundreds of thousands
of dollars to re-enter information into databases that almost every
campaign has available in electronic format.
The current filing system also means that the detailed coding that
the FEC does, which allows for more sophisticated searches and
analysis, is completed over a week later for Senate reports than for
House reports. This means that the final disclosure reports covering
the first 2 weeks of October are not susceptible to detailed scrutiny
before the election.
It is time for the Senate to relinquish its Luddite attitude toward
campaign finance disclosure. I urge the enactment of this simple bill
that will make our reports subject to the same prompt, public scrutiny
as those filed by PACs and candidates for the other body.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1874
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Senate Campaign Disclosure
Parity Act''.
SEC. 2. SENATE CANDIDATES REQUIRED TO FILE ELECTION REPORTS
IN ELECTRONIC FORM.
(a) In General.--Section 304(a)(11)(D) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 434(a)(11)(D)) is
amended to read as follows:
``(D) As used in this paragraph, the terms `designation',
`statement', or `report' mean a designation, statement or
report, respectively, which--
``(i) is required by this Act to be filed with the
Commission, or
``(ii) is required under section 302(g) to be filed with
the Secretary of the Senate and forwarded by the Secretary to
the Commission.''
(b) Conforming Amendments.--
(1) Section 302(g)(2) of such Act (2 U.S.C. 432(g)(2)) is
amended by inserting ``or 1 working day in the case of a
designation, statement, or report filed electronically''
after ``2 working days''.
(2) Section 304(a)(11)(B) of such Act (2 U.S.C.
434(a)(11)(B)) is amended by inserting ``or filed with the
Secretary of the Senate under section 302(g)(1) and forwarded
to the Commission'' after ``Act''.
(c) Effective Date.--The amendments made by this section
shall apply to any designation, statement, or report required
to be filed after the date of enactment of this Act.
Mr. McCAIN. Mr. President, I am proud to join Senator Russ Feingold
as a co-sponsor of legislation that will require Senate candidates to
file campaign finance reports in electronic form. This bill will
finally remove the exemption the Senate has given itself from an
important requirement of campaign finance disclosure laws that apply to
everyone else, including candidates for the U.S. House of
Representatives and Political Action Committees, PACs.
Political committees active in federal elections must submit their
quarterly financial reports for disclosure by the Federal Election
Commission, FEC. Anyone interested can nearly instantaneously download
the reports from the FEC website and conduct computer searches to learn
about the contributions and expenditures of individual candidates for
the House, non-Senate national party committees and PACs. The current
problem is that they cannot do the same for Senate candidates and
parties because of the Senate's insistence on paper rather than
electronic filing. The FEC must do more processing of Senate paper
reports than of House electronic ones. This involves printing or
copying the Senate reports, up to 10,000 pages a day at times, hand-
coding transactions that cannot be automatically processed, and
keypunching the data into the electronic database. House electronic
reports do not need the same treatment. The end result is that in
contrast to the House, information from the Senate paper reports are
often available well after the election has occurred.
Due to this problem, voters are not well-informed about the campaign
finance information of their Senators and Senate candidates. For voters
who want to consider the nature of the campaign finance support
received by a Senate candidate and its relationship to Senate
legislative votes as a factor in deciding for whom they will cast a
vote, they clearly cannot.
To address this problem, our legislation requires Senate candidates
to file their campaign finance reports electronically with the
Secretary of the Senate. Within 24 hours of receipt of those reports,
the Secretary is required to forward those reports to the FEC. The FEC,
in turn is required to make those reports available on the Internet
within 24 hours as they do other reports. Therefore, electronic
versions of Senate reports will be available to the public within 48
hours of their filing.
Electronic reports are not only transmitted instantly but are more
accurate than paper submissions because software can easily correct
mistakes. On the other hand, hand entering of data is always prone to
error. Furthermore, the data in electronic reports can be rapidly
searched via the Internet for answers to specific questions. Voters
will no longer have to go through the time consuming process of reading
pages and pages filed by Senate candidates or Senate party committees
to figure out the major donors and their employers, and the major
recipients of campaign spending. Instead, they can download a filed
report from the FEC website onto their personal computers and quickly
locate the information they need. This creates effective public
disclosure.
The Senate's current failure to provide its constituents with
electronically disclosed, timely information is unconscionable. Senate
filings should follow the same criteria as other campaign finance
reports. There must not be a separate standard for the Senate.
Ironically, while they do not currently file electronically, Senators
and Senate candidates already use electronic software in compiling
their paper reports. If Senators and Senate candidates can use
technology to run their offices and websites, why can't they use it to
better inform their own constituents about how their campaigns are
funded? Their constituents have earned a right to that information. The
public interest will be better served and voters' faith in their
elected leaders will be restored.
____________________
AMENDMENTS SUBMITTED AND PROPOSED
SA 2191. Ms. CANTWELL (for herself, Mr. Carper, Mr.
Brownback, Mr. Hagel, Mr. Roberts, Mr. Nelson of Nebraska,
Mrs. Murray, and Mr. DeWine) submitted an amendment intended
to be proposed to amendment SA 2150 proposed by Mr. Bond (for
himself and Ms. Mikulski) to the bill H.R. 2861, making
appropriations for the Departments of Veterans Affairs and
Housing and Urban Development, and for sundry independent
agencies, boards, commissions, corporations, and offices for
the fiscal year ending September 30, 2004, and for other
purposes; which was ordered to lie on the table.
SA 2192. Mrs. FEINSTEIN submitted an amendment intended to
be proposed to amendment SA 2150 proposed by Mr. Bond (for
himself and Ms. Mikulski) to the bill H.R. 2861, supra; which
was ordered to lie on the table.
SA 2193. Mr. DAYTON (for himself and Mr. Coleman) submitted
an amendment intended to be proposed to amendment SA 2150
proposed by Mr. Bond (for himself and Ms. Mikulski) to the
bill H.R. 2861, supra.
SA 2194. Mr. BOND (for Mr. Reid (for himself and Mr.
Graham, of Florida)) proposed an amendment to amendment SA
2150 proposed by Mr. Bond (for himself and Ms. Mikulski) to
the bill H.R. 2861, supra.
SA 2195. Mr. DURBIN (for himself, Ms. Snowe, Mr. Jeffords,
Mrs. Boxer, Mr. Lautenberg, Ms. Cantwell, and Mr. Lieberman)
proposed an amendment to amendment SA 2150 proposed by Mr.
Bond (for himself and Ms. Mikulski) to the bill H.R. 2861,
supra.
SA 2196. Mr. BOND (for Mr. Daschle) proposed an amendment
to amendment SA 2150 proposed by Mr. Bond (for himself and
Ms. Mikulski) to the bill H.R. 2861, supra.
SA 2197. Mr. BOND (for Mr. Feingold) proposed an amendment
to amendment SA 2150 proposed by Mr. Bond (for himself and
Ms. Mikulski) to the bill H.R. 2861, supra.
SA 2198. Mr. BOND (for Ms. Cantwell (for herself, Mr.
Carper, Mr. Brownback, Mr. Hagel, Mr. Roberts, Mr. Nelson of
Nebraska, Mrs. Murray, and Mr. DeWine)) proposed an amendment
to amendment SA 2150
[[Page 29070]]
proposed by Mr. Bond (for himself and Ms. Mikulski) to the
bill H.R. 2861, supra.
____________________
TEXT OF AMENDMENTS
______
SA 2191. Ms. CANTWELL (for herself, Mr. Carper, Mr. Brownback, Mr.
Hagel, Mr. Roberts, Mr. Nelson of Nebraska, Mrs. Murray, and Mr.
DeWine) submitted an amendment intended to be proposed to amendment SA
2150 by Mr. Bond (for himself and Ms. Mikulski) to the bill H.R. 2861,
making appropriations for the Departments of Veterans Affairs and
Housing and Urban Development, and for sundry independent agencies,
boards, commissions, corporations, and offices for the fiscal year
ending September 30, 2004, and for other purposes; which was ordered to
lie on the table; as follows:
On page 125, between lines 7 and 8, insert the following:
SEC. 418. EXTENSION OF CERTAIN PUBLIC HOUSING/SECTION 8
MOVING TO WORK DEMONSTRATION AGREEMENTS.
(a) Extension.--The Secretary of Housing and Urban
Development shall extend the term of the Moving to Work
Demonstration Agreement entered into between a public housing
agency and the Secretary under section 204, title V, of the
Omnibus Consolidated Rescissions and Appropriations Act of
1996 (Pub. L. 104-134, April 26, 1996) if--
(1) the public housing agency requests such extension in
writing;
(2) the public housing agency is not at the time of such
request for extension in default under its Moving to Work
Demonstration Agreement; and
(3) the Moving to Work Demonstration Agreement to be
extended would otherwise expire on or before December 31,
2004.
(b) Terms.--Unless the Secretary of Housing and Urban
Development and the public housing agency otherwise agree,
the extension under subsection (a) shall be upon the
identical terms and conditions set forth in the extending
agency's existing Moving to Work Demonstration Agreement,
except that for each public housing agency that has been or
will be granted an extension to its original Moving to Work
agreement, the Secretary shall require that data be collected
so that the effect of Moving to Work policy changes on
residents can be measured.
(c) Extension Period.--The extension under subsection (a)
shall be for such period as is requested by the public
housing agency, not to exceed 3 years from the date of
expiration of the extending agency's existing Moving to Work
Demonstration Agreement.
(d) Breach of Agreement.--Nothing contained in this section
shall limit the authority of the Secretary of Housing and
Urban Development to terminate any Moving to Work
Demonstration Agreement of a public housing agency if the
public housing agency is in breach of the provisions of such
agreement.
SEC. 419. STUDY OF MOVING TO WORK PROGRAM.
(a) In General.--The General Accounting Office shall
conduct a study of the Moving to Work demonstration program
to evaluate--
(1) whether the statutory goals of the Moving to Work
demonstration program are being met;
(2) the effects policy changes related to the Moving to
Work demonstration program have had on residents; and
(3) whether public housing agencies participating in the
Moving to Work program are meeting the requirements of the
Moving to Work demonstration program under law and any
agreements with the Department of Housing and Urban
Development.
(b) Report.--Not later than 18 months after the date of
enactment of this Act, the General Accounting Office shall
submit to Congress a report on the study conducted under
subsection (a).
______
SA 2192. Mrs. FEINSTEIN submitted an amendment intended to be
proposed to amendment SA 2150 proposed by Mr. Bond (for himself and Ms.
Mikulski) to the bill H.R. 2861, making appropriations for the
Departments of Veterans Affairs and Housing and Urban Development, and
for sundry independent agencies, boards, commissions, corporations, and
offices for the fiscal year ending September 30, 2004, and for other
purposes; which was ordered to lie on the table; as follows:
On page 106, strike line 14 and all that follows through
``President'' and insert the following:
as determined by the Administrator.
Executive Office of the President
______
SA 2193. Mr. DAYTON (for himself and Mr. Coleman) submitted an
amendment intended to be proposed to amendment SA 2150 proposed by Mr.
Bond (for himself and Ms. Mikulski) to the bill H.R. 2861, making
appropriations for the Departments of Veterans Affairs and Housing and
Urban Development, and for sundry independent agencies, boards,
commissions, corporations, and offices for the fiscal year ending
September 30, 2004, and for other purposes; as follows:
On page 58, line 21, strike ``$1,112,130,000'' and insert
``$1,111,030,000''.
On page 125, between lines 7 and 8, insert the following:
Sec. 418. There shall be made available $1,100,000 to the
Secretary of Housing and Urban Development for the purposes
of making the grant authorized under section 3 of the Paul
and Sheila Wellstone Center for Community Building Act.
______
SA 2194. Mr. BOND (for Mr. Reid (for himself and Mr. Graham of
Florida)) proposed an amendment to amendment SA 2150 proposed by Mr.
Bond (for himself and Ms. Mikulski) to the bill H.R. 2861, making
appropriations for the Departments of Veterans Affairs and Housing and
Urban Development, and for sundry independent agencies, boards,
commissions, corporations, and offices for the fiscal year ending
September 30, 2004, and for other purposes; as follows:
On page 125, between lines 7 and 8, insert the following
new section:
Sec. 418. (a) Congress makes the following findings:
(1) During Operation Desert Shield and Operation Desert
Storm (in this section, collectively referred to as the
``First Gulf War''), the regime of Saddam Hussein committed
grave human rights abuses and acts of terrorism against the
people of Iraq and citizens of the United States.
(2) United States citizens who were taken prisoner by the
regime of Saddam Hussein during the First Gulf War were
brutally tortured and forced to endure severe physical trauma
and emotional abuse.
(3) The regime of Saddam Hussein used civilian citizens of
the United States who were working in the Persian Gulf region
before and during the First Gulf War as so-called human
shields, threatening the personal safety and emotional well-
being of such civilians.
(4) Congress has recognized and authorized the right of
United States citizens, including prisoners of war, to hold
terrorist states, such as Iraq during the regime of Saddam
Hussein, liable for injuries caused by such states.
(5) The United States district courts are authorized to
adjudicate cases brought by individuals injured by terrorist
states.
(b) It is the sense of Congress that--
(1) notwithstanding section 1503 of the Emergency Wartime
Supplemental Appropriations Act, 2003 (Public Law 108-11; 117
Stat. 579) and any other provision of law, a citizen of the
United States who was a prisoner of war or who was used by
the regime of Saddam Hussein and by Iraq as a so-called human
shield during the First Gulf War should have the opportunity
to have any claim for damages caused by the regime of Saddam
Hussein and by Iraq incurred by such citizen fully
adjudicated in the appropriate United States district court;
(2) any judgment for such damages awarded to such citizen,
or the family of such citizen, should be fully enforced; and
(3) the Attorney General should enter into negotiations
with each such citizen, or the family of each such citizen,
to develop a fair and reasonable method of providing
compensation for the damages each such citizen incurred,
including using assets of the regime of Saddam Hussein held
by the Government of the United States or any other
appropriate sources to provide such compensation.
______
SA 2195. Mr. DURBIN (for himself, Ms. Snowe, Mr. Jeffords, Mrs.
Boxer, Mr. Lautenberg, Ms. Cantwell, and Mr. Lieberman) proposed an
amendment to amendment SA 2150 proposed by Mr. Bond (for himself and
Ms. Mikulski) to the bill H.R. 2861, making appropriations for the
Departments of Veterans Affairs and Housing and Urban Development, and
for sundry independent agencies, boards, commissions, corporations, and
offices for the fiscal year ending September 30, 2004, and for other
purposes; as follows:
None of the funds provided in this Act may be expended to
apply, in a numerical estimate of the benefits of an agency
action prepared pursuant to Executive Order 12866 or section
812 of the Clean Air Act, monetary values for adult premature
mortality that differ based on the age of the adult.
______
SA 2196. Mr. BOND (for Mr. Daschle) proposed an amendment to
amendment SA 2150 proposed by Mr. Bond (for himself and Ms. Mikulski)
to the bill H.R. 2861, making appropriations for the Departments of
Veterans Affairs and Housing and Urban Development, and for sundry
independent agencies, boards, commissions, corporations, and
[[Page 29071]]
offices for the fiscal year ending September 30, 2004, and for other
purposes; as follows:
At the end of title I, add the following:
Sec. 116. Not later than 120 days after the date of the
enactment of this Act, the Secretary of Veterans Affairs
shall enter into an agreement with the Institute of Medicine
of the National Academy of Sciences under which agreement the
Institute of Medicine shall develop and evaluate
epidemiological studies on Vietnam veterans in accordance
with the recommendations of the 2003 National Academy of
Sciences report entitled ``Characterizing Exposure of
Veterans to Agent Orange and Other Herbicides Used in
Vietnam: Interim Findings and Recommendations''.
______
SA 2197. Mr. BOND (for Mr. Feingold) proposed an amendment to
amendment SA 2150 proposed by Mr. Bond (for himself and Ms. Mikulski)
to the bill H.R. 2861, making appropriations for the Departments of
Veterans Affairs and Housing and Urban Development, and for sundry
independent agencies, boards, commissions, corporations, and offices
for the fiscal year ending September 30, 2004, and for other purposes;
as follows:
At the end of title I, insert the following:
Sec. 116. No funds appropriated or otherwise made available
for the Department of Veterans Affairs by this Act or any
other Act may be obligated or expended to implement the
policy contained in the memorandum of the Department of
Veterans Affairs dated July 18, 2002, from the Deputy Under
Secretary for Health for Operations and Management with the
subject ``Status of VHA Enrollment and Associated Issues'' or
any other policy prohibiting the Directors of the Veterans
Integrated Service Networks (VISNs) from conducting outreach
or marketing to enroll new veterans within their Networks.
______
SA 2198. Mr. BOND (for Ms. Cantwell (for herself, Mr. Carper, Mr.
Brownback, Mr. Hagel, Mr. Roberts, Mr. Nelson of Nebraska, Mrs. Murray,
and Mr. DeWine)) proposed an amendment to amendment SA 2150 proposed by
Mr. Bond (for himself and Ms. Mikulski) to the bill H.R. 2861, making
appropriations for the Departments of Veterans Affairs and Housing and
Urban Development, and for sundry independent agencies, boards,
commissions, corporations, and offices for the fiscal year ending
September 30, 2004, and for other purposes; as follows:
On page 125, between lines 7 and 8, insert the following:
SEC. 418. EXTENSION OF CERTAIN PUBLIC HOUSING/SECTION 8
MOVING TO WORK DEMONSTRATION AGREEMENTS.
(a) Extension.--The Secretary of Housing and Urban
Development shall extend the term of the Moving to Work
Demonstration Agreement entered into between a public housing
agency and the Secretary under section 204, title V, of the
Omnibus Consolidated Rescissions and Appropriations Act of
1996 (Pub. L. 104-134, April 26, 1996) if--
(1) the public housing agency requests such extension in
writing;
(2) the public housing agency is not at the time of such
request for extension in default under its Moving to Work
Demonstration Agreement; and
(3) the Moving to Work Demonstration Agreement to be
extended would otherwise expire on or before December 31,
2004.
(b) Terms.--Unless the Secretary of Housing and Urban
Development and the public housing agency otherwise agree,
the extension under subsection (a) shall be upon the
identical terms and conditions set forth in the extending
agency's existing Moving to Work Demonstration Agreement,
except that for each public housing agency that has been or
will be granted an extension to its original Moving to Work
agreement, the Secretary shall require that data be collected
so that the effect of Moving to Work policy changes on
residents can be measured.
(c) Extension Period.--The extension under subsection (a)
shall be for such period as is requested by the public
housing agency, not to exceed 3 years from the date of
expiration of the extending agency's existing Moving to Work
Demonstration Agreement.
(d) Breach of Agreement.--Nothing contained in this section
shall limit the authority of the Secretary of Housing and
Urban Development to terminate any Moving to Work
Demonstration Agreement of a public housing agency if the
public housing agency is in breach of the provisions of such
agreement.
SEC. 419. STUDY OF MOVING TO WORK PROGRAM.
(a) In General.--The General Accounting Office shall
conduct a study of the Moving to Work demonstration program
to evaluate--
(1) whether the statutory goals of the Moving to Work
demonstration program are being met;
(2) the effects policy changes related to the Moving to
Work demonstration program have had on residents; and
(3) whether public housing agencies participating in the
Moving to Work program are meeting the requirements of the
Moving to Work demonstration program under law and any
agreements with the Department of Housing and Urban
Development.
(b) Report.--Not later than 18 months after the date of
enactment of this Act, the General Accounting Office shall
submit to Congress a report on the study conducted under
subsection (a).
____________________
AUTHORITY FOR COMMITTEES TO MEET
Committee on the Judiciary
Mr. KYL. Mr. President, I ask unanimous consent that the Committee on
the Judiciary be authorized to meet to conduct a markup on Monday,
November 17, 2003, at 5:40 p.m. in the President's Room 216, The
Capitol. Note: This markup was rescheduled from Thursday, November 13,
2003.
Agenda:
I. Nominations: Henry W. Saad to be U.S. Circuit Judge for the Sixth
Circuit; James B. Comey to be Deputy Attorney General; Michael J.
Garcia to be Assistant Secretary of U.S. Immigration and Customs
Enforcement; Claude A. Allen to be U.S. Circuit Judge for the Fourth
Circuit; and Federico L. Rocha to be U.S. Marshal for the Northern
District of California.
II. Bills: H.R. 1437--To improve the United States Code
[Sensenbrenner, Conyers]; S. Res. 253--To recognize the evolution and
importance of motorsports [Campbell, Kyl].
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________
PRIVILEGES OF THE FLOOR
Mr. HARKIN. Mr. President, first I ask unanimous consent that Theresa
Frueh of my office be given privileges of the floor tonight and
tomorrow.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________
REMOVAL OF INJUNCTION OF SECRECY--TREATY DOCUMENT NO. 108-11
Mr. KYL. Mr. President, as in executive session, I ask unanimous
consent that the injunction of secrecy be removed from the following
treaty transmitted to the Senate on November 17, 2003, by the President
of the United States:
Cybercrime Convention (Treaty Document 108-11).
I further ask that the treaty be considered as having been read the
first time; that it be referred, with accompanying papers, to the
Committee on Foreign Relations and ordered to be printed; and that the
President's message be printed in the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
The message of the President is as follows:
To the Senate of the United States:
With a view to receiving the advice and consent of the Senate to
ratification, I transmit herewith the Council of Europe Convention on
Cybercrime (the ``Cybercrime Convention'' or the ``Convention''), which
was signed by the United States on November 23, 2001. In addition, for
the information of the Senate, I transmit the report of the Department
of State with respect to the Convention and the Convention's official
Explanatory Report.
The United States, in its capacity as an observer at the Council of
Europe, participated actively in the elaboration of the Convention,
which is the only multilateral treaty to address the problems of
computer-related crime and electronic evidence gathering. An overview
of the Convention's provisions is provided in the report of the
Department of State. The report also sets forth proposed reservations
and declarations that would be deposited by the United States with its
instrument of ratification. With these reservations and declarations,
the Convention would not require implementing legislation for the
United States.
The Convention promises to be an effective tool in the global effort
to combat computer-related crime. It requires Parties to criminalize,
if they have not already done so, certain conduct that
[[Page 29072]]
is committed through, against, or related to computer systems. Such
substantive crimes include offenses against the ``confidentiality,
integrity and availability'' of computer data and systems, as well as
using computer systems to engage in conduct that would be criminal if
committed outside the cyber-realm, i.e., forgery, fraud, child
pornography, and certain copyright-related offenses. The Convention
also requires Parties to have the ability to investigate computer-
related crime effectively and to obtain electronic evidence in all
types of criminal investigations and proceedings.
By providing for broad international cooperation in the form of
extradition and mutual legal assistance, the Cybercrime Convention
would remove or minimize legal obstacles to international cooperation
that delay or endanger U.S. investigations and prosecutions of
computer-related crime. As such, it would help deny ``safe havens'' to
criminals, including terrorists, who can cause damage to U.S. interests
from abroad using computer systems. At the same time, the Convention
contains safeguards that protect civil liberties and other legitimate
interests.
I recommend that the Senate give early and favorable consideration to
the Cybercrime Convention, and that it give its advice and consent to
ratification, subject to the reservations, declarations, and
understanding described in the accompanying report of the Department of
State.
George W. Bush.
The White House, November 17, 2003.
____________________
APPOINTMENT
The PRESIDING OFFICER. The Chair, on behalf of the Majority Leader,
pursuant to Public Law 96-114, as amended, announces the appointment of
John M. Falk, of Washington, DC, to be Chairman of the Congressional
Award Board.
____________________
PRIVATE SECURITY OFFICER EMPLOYMENT AUTHORIZATION ACT OF 2003
Mr. KYL. Mr. President, I ask unanimous consent that the Senate
proceed to the immediate consideration of Calendar No. 322, S. 1743.
The PRESIDING OFFICER. The clerk will state the bill by title.
The legislative clerk read as follows:
A bill ( S. 1743) to permit reviews of criminal records of
applicants for private security officer employment.
There being no objection, the Senate proceeded to consider the bill.
Mr. KYL. Mr. President, I ask unanimous consent that the bill be read
the third time and passed, the motion to reconsider be laid upon the
table with no intervening action or debate; that any statements
relating to this measure be printed in the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
The bill (S. 1743) was read the third time and passed, as follows:
S. 1743
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Private Security Officer
Employment Authorization Act of 2003''.
SEC. 2. FINDINGS.
Congress finds that--
(1) employment of private security officers in the United
States is growing rapidly;
(2) private security officers function as an adjunct to,
but not a replacement for, public law enforcement by helping
to reduce and prevent crime;
(3) such private security officers protect individuals,
property, and proprietary information, and provide protection
to such diverse operations as banks, hospitals, research and
development centers, manufacturing facilities, defense and
aerospace contractors, high technology businesses, nuclear
power plants, chemical companies, oil and gas refineries,
airports, communication facilities and operations, office
complexes, schools, residential properties, apartment
complexes, gated communities, and others;
(4) sworn law enforcement officers provide significant
services to the citizens of the United States in its public
areas, and are supplemented by private security officers;
(5) the threat of additional terrorist attacks requires
cooperation between public and private sectors and demands
professional, reliable, and responsible security officers for
the protection of people, facilities, and institutions;
(6) the trend in the Nation toward growth in such security
services has accelerated rapidly;
(7) such growth makes available more public sector law
enforcement officers to combat serious and violent crimes,
including terrorism;
(8) the American public deserves the employment of
qualified, well-trained private security personnel as an
adjunct to sworn law enforcement officers; and
(9) private security officers and applicants for private
security officer positions should be thoroughly screened and
trained.
SEC. 3. DEFINITIONS.
In this Act:
(1) Employee.--The term ``employee'' includes both a
current employee and an applicant for employment as a private
security officer.
(2) Authorized employer.--The term ``authorized employer''
means any person that--
(A) employs private security officers; and
(B) is authorized by regulations promulgated by the
Attorney General to request a criminal history record
information search of an employee through a State
identification bureau pursuant to this section.
(3) Private security officer.-- The term ``private security
officer''--
(A) means an individual other than an employee of a
Federal, State, or local government, whose primary duty is to
perform security services, full- or part-time, for
consideration, whether armed or unarmed and in uniform or
plain clothes (except for services excluded from coverage
under this Act if the Attorney General determines by
regulation that such exclusion would serve the public
interest); but
(B) does not include--
(i) employees whose duties are primarily internal audit or
credit functions;
(ii) employees of electronic security system companies
acting as technicians or monitors; or
(iii) employees whose duties primarily involve the secure
movement of prisoners.
(4) Security services.--The term ``security services''
means acts to protect people or property as defined by
regulations promulgated by the Attorney General.
(5) State identification bureau.--The term ``State
identification bureau'' means the State entity designated by
the Attorney General for the submission and receipt of
criminal history record information.
SEC. 4. CRIMINAL HISTORY RECORD INFORMATION SEARCH.
(a) In General.--
(1) Submission of fingerprints.--An authorized employer may
submit to the State identification bureau of a participating
State, fingerprints or other means of positive
identification, as determined by the Attorney General, of an
employee of such employer for purposes of a criminal history
record information search pursuant to this Act.
(2) Employee rights.--
(A) Permission.--An authorized employer shall obtain
written consent from an employee to submit to the State
identification bureau of a participating State the request to
search the criminal history record information of the
employee under this Act.
(B) Access.--An authorized employer shall provide to the
employee confidential access to any information relating to
the employee received by the authorized employer pursuant to
this Act.
(3) Providing information to the state identification
bureau.--Upon receipt of a request for a criminal history
record information search from an authorized employer
pursuant to this Act, submitted through the State
identification bureau of a participating State, the Attorney
General shall--
(A) search the appropriate records of the Criminal Justice
Information Services Division of the Federal Bureau of
Investigation; and
(B) promptly provide any resulting identification and
criminal history record information to the submitting State
identification bureau requesting the information.
(4) Use of information.--
(A) In general.--Upon receipt of the criminal history
record information from the Attorney General by the State
identification bureau, the information shall be used only as
provided in subparagraph (B).
(B) Terms.--In the case of--
(i) a participating State that has no State standards for
qualification to be a private security officer, the State
shall notify an authorized employer as to the fact of whether
an employee has been--
(I) convicted of a felony, an offense involving dishonesty
or a false statement if the conviction occurred during the
previous 10 years, or an offense involving the use or
attempted use of physical force against the person of another
if the conviction occurred during the previous 10 years; or
(II) charged with a criminal felony for which there has
been no resolution during the preceding 365 days; or
(ii) a participating State that has State standards for
qualification to be a private security officer, the State
shall use the information received pursuant to this Act in
applying the State standards and shall only notify the
employer of the results of the application of the State
standards.
[[Page 29073]]
(5) Frequency of requests.--An authorized employer may
request a criminal history record information search for an
employee only once every 12 months of continuous employment
by that employee unless the authorized employer has good
cause to submit additional requests.
(b) Regulations.--Not later than 180 days after the date of
enactment of this Act, the Attorney General shall issue such
final or interim final regulations as may be necessary to
carry out this Act, including--
(1) measures relating to the security, confidentiality,
accuracy, use, submission, dissemination, destruction of
information and audits, and recordkeeping;
(2) standards for qualification as an authorized employer;
and
(3) the imposition of reasonable fees necessary for
conducting the background checks.
(c) Criminal Penalties for Use of Information.--Whoever
knowingly and intentionally uses any information obtained
pursuant to this Act other than for the purpose of
determining the suitability of an individual for employment
as a private security officer shall be fined under title 18,
United States Code, or imprisoned for not more than 2 years,
or both.
(d) User Fees.--
(1) In general.--The Director of the Federal Bureau of
Investigation may--
(A) collect fees to process background checks provided for
by this Act; and
(B) establish such fees at a level to include an additional
amount to defray expenses for the automation of fingerprint
identification and criminal justice information services and
associated costs.
(2) Limitations.--Any fee collected under this subsection--
(A) shall, consistent with Public Law 101-515 and Public
Law 104-99, be credited to the appropriation to be used for
salaries and other expenses incurred through providing the
services described in such Public Laws and in paragraph (1);
(B) shall be available for expenditure only to pay the
costs of such activities and services; and
(C) shall remain available until expended.
(3) State costs.--Nothing in this Act shall be construed as
restricting the right of a State to assess a reasonable fee
on an authorized employer for the costs to the State of
administering this Act.
(e) State Opt Out.--A State may decline to participate in
the background check system authorized by this Act by
enacting a law or issuing an order by the Governor (if
consistent with State law) providing that the State is
declining to participate pursuant to this subsection.
____________________
MEASURE READ THE FIRST TIME--S. 1875
Mr. KYL. Mr. President, I understand that S. 1875, which was
introduced earlier today, is at the desk, and I ask for its first
reading.
The PRESIDING OFFICER. The clerk will read the title of the bill for
the first time.
The assistant legislative clerk read as follows:
A bill (S. 1875) to amend the Employee Retirement Income
Security Act of 1974, the Public Health Service Act, and the
Internal Revenue Code of 1986 to extend the mental health
benefits parity provisions for an additional year.
Mr. KYL. Mr. President, I now ask for its second reading and object
to further proceedings on the matter.
The PRESIDING OFFICER. Objection is heard. The bill will receive its
second reading on the next legislative day.
____________________
APPOINTMENT OF ADDITIONAL CONFEREES
Mr. KYL. Mr. President, I ask unanimous consent that the number of
conferees appointed for H.R. 2673, the Agriculture appropriations bill
for fiscal year 2004, be expanded to include the following additional
members of the Senate Appropriations Committee: Senators Domenici,
Shelby, Gregg, Campbell, Hutchison, DeWine, Inouye, Hollings, Leahy,
Mikulski, Reid, and Murray.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________
ORDERS FOR TUESDAY, NOVEMBER 18, 2003
Mr. KYL. Mr. President, I ask unanimous consent that when the Senate
completes its business today, it adjourn until 9:30 a.m., Tuesday,
November 18. I further ask unanimous consent that following the prayer
and the pledge, the morning hour be deemed expired, the Journal of
proceedings be approved to date, the time for the two leaders be
reserved for their use later in the day, and the Senate then proceed to
executive session to consider the nomination of Thomas Dorr, with the
time until 10:30 a.m. equally divided between the chairman and ranking
member of the Agriculture Committee, or their designees; provided, that
at 10:30 a.m., the Senate proceed to the two cloture votes in relation
to the nomination; that following the two votes, and regardless of the
outcome of either vote, the Senate return to legislative session and
resume consideration of H.R. 2861, the VA-HUD appropriations bill. I
further ask unanimous consent that the Senate recess from 12:30 p.m. to
2:15 p.m. for the weekly party luncheons.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________
PROGRAM
Mr. KYL. Mr. President, for the information of all Senators, tomorrow
the Senate will consider the nomination of Thomas Dorr to be Under
Secretary of Agriculture for Rural Development and to be a member of
the board of directors of the Commodity Credit Corporation. At 10:30
a.m., the Senate will proceed to two cloture votes in relation to the
nomination. Those two votes will be the first votes of tomorrow's
session.
Following the two cloture votes, the Senate will resume consideration
of the VA-HUD appropriations bill. It is the hope and expectation of
the majority leader that we will be able to dispose of the remaining
amendments quickly and move to vote on passage of the bill.
For the remainder of the day, the Senate will consider any
legislative or executive items that are available for action. Last
week, we reached a unanimous consent agreement limiting the debate on
the nomination of Robert Clark to be a lieutenant general in the Army,
and the Senate may take up the nomination tomorrow. In addition, the
Senate may take up appropriations conference reports as they become
available. Therefore, Senators should expect rollcall votes throughout
the day tomorrow.
____________________
ADJOURNMENT UNTIL 9:30 A.M. TOMORROW
Mr. KYL. Mr. President, if there is no further business to come
before the Senate, I ask unanimous consent that the Senate stand in
adjournment under the previous order.
There being no objection, the Senate, at 7:41 p.m., adjourned until
Tuesday, November 18, 2003, at 9:30 a.m.
____________________
NOMINATIONS
Executive nominations received by the Senate November 17, 2003:
DEPARTMENT OF TRANSPORTATION
FRANCIS MULVEY, OF MARYLAND, TO BE A MEMBER OF THE SURFACE
TRANSPORTATION BOARD FOR A TERM EXPIRING DECEMBER 31, 2007,
VICE WAYNE O. BURKES, RESIGNED.
W. DOUGLAS BUTTREY, OF TENNESSEE, TO BE A MEMBER OF THE
SURFACE TRANSPORTATION BOARD FOR A TERM EXPIRING DECEMBER 31,
2008, VICE LINDA JOAN MORGAN, RESIGNED.
DEPARTMENT OF STATE
JAMES C. OBERWETTER, OF TEXAS, TO BE AMBASSADOR
EXTRAORDINARY AND PLENIPOTENTIARY OF THE UNITED STATES OF
AMERICA TO THE KINGDOM OF SAUDI ARABIA.
GLYN T. DAVIES, OF THE DISTRICT OF COLUMBIA, A CAREER
MEMBER OF THE SENIOR FOREIGN SERVICE, CLASS OF MINISTER-
COUNSELOR, FOR THE RANK OF AMBASSADOR DURING HIS TENURE OF
SERVICE AS THE POLITICAL DIRECTOR FOR THE UNITED STATES
PRESIDENCY OF THE G-8.
CORPORATION FOR PUBLIC BROADCASTING
GAY HART GAINES, OF FLORIDA, TO BE A MEMBER OF THE BOARD OF
DIRECTORS OF THE CORPORATION FOR PUBLIC BROADCASTING FOR A
TERM EXPIRING JANUARY 31, 2010, VICE RITAJEAN HARTUNG
BUTTERWORTH, TERM EXPIRING.
IN THE AIR FORCE
THE FOLLOWING NAMED OFFICER FOR REGULAR APPOINTMENT IN THE
GRADE INDICATED IN THE UNITED STATES AIR FORCE UNDER TITLE
10, U.S.C., SECTIONS 531 AND 1552:
To be lieutenant colonel
ROBERT G. CATES III
THE FOLLOWING NAMED OFFICER FOR APPOINTMENT TO THE GRADE
INDICATED IN THE UNITED STATES AIR FORCE, UNDER TITLE 10,
U.S.C., SECTIONS 624 AND 1552:
To be lieutenant colonel
MARY J. QUINN
THE FOLLOWING NAMED OFFICERS FOR A REGULAR APPOINTMENT IN
THE GRADE INDICATED IN THE UNITED STATES AIR FORCE UNDER
TITLE 10, U. S. C., SECTION 531:
To be lieutenant colonel
CHRISTOPHER C. ERICKSON
MARK A. MCCLAIN
IN THE COAST GUARD
THE FOLLOWING INDIVIDUALS FOR APPOINTMENT AS PERMANENT
COMMISSIONED REGULAR OFFICERS IN THE
[[Page 29074]]
UNITED STATES COAST GUARD IN THE GRADE INDICATED UNDER TITLE
14, U.S.C., SECTION 211:
To be lieutentant
MICHAEL P. GULDIN
LAURIE J. MOSIER
IN THE ARMY
THE FOLLOWING NAMED ARMY NATIONAL GUARD OF THE UNITED
STATES OFFICERS FOR APPOINTMENT TO THE GRADE INDICATED IN THE
RESERVE OF THE ARMY UNDER TITLE 10, U.S.C., SECTIONS 12203
AND 12211:
To be colonel
JOHN D. MCGOWAN II
KENNETH E. NETTLES
THE FOLLOWING NAMED ARMY NATIONAL GUARD OF THE UNITED
STATES OFFICERS FOR APPOINTMENT TO THE GRADE INDICATED IN THE
RESERVE OF THE ARMY UNDER TITLE 10, U.S.C., SECTIONS 12203
AND 12211:
To be colonel
VERNAL G. ANDERSON
DONALD J. KERR
THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT TO THE GRADE
INDICATED IN THE UNITED STATES ARMY MEDICAL SPECIALIST CORPS
UNDER TITLE 10, U.S.C., SECTIONS 624 AND 3064:
To be colonel
GASTON P. BATHALON
STEVEN D. HUNTE
PAULA J. RUTAN
THE FOLLOWING NAMED OFFICER FOR APPOINTMENT TO THE GRADE
INDICATED IN THE RESERVE OF THE ARMY UNDER TITLE 10, U.S.C.,
SECTION 12203:
To be colonel
WILLIAM B. CARR JR.
I NOMINATE THE FOLLOWING NAMED INDIVIDUALS FOR APPOINTMENT
IN THE GRADE INDICATED IN THE RESERVE OF THE ARMY UNDER TITLE
10, U.S.C., SECTION 12203:
To be colonel
JOHN E. ATWOOD
CRAIG B. COLLIER
WILLIAM E. ZOESCH
THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT TO THE GRADE
INDICATED IN THE RESERVE OF THE ARMY UNDER TITLE 10, U.S.C.,
SECTION 12203:
To be colonel
CHERYL KYLE
TERRY C. WASHAM
THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT TO THE GRADE
INDICATED IN THE UNITED STATES ARMY VETERINARY CORPS UNDER
TITLE 10, U.S.C., SECTIONS 624 AND 3064:
To be colonel
MICHAEL A. BULEY
DAVID S. ROLFE
PAUL W. SCHMIDT
DAVID R. SCHUCKENBROCK
PETER J. SCHULTHEISS
JOHN P. SKVORAK
STANLEY E. SMITH
BOB E. WALTERS
GARY M. ZAUCHA
THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT TO THE GRADE
INDICATED IN THE UNITED STATES ARMY NURSE CORPS AND FOR
REGULAR APPOINTMENT (IDENTIFIED BY AN ASTERISK(*)) UNDER
TITLE 10, U.S.C., SECTIONS 624, 531, AND 3064:
To be colonel
JULIA A. ADAMS
CARYL J. DOWELL
ELLEN E. FORSTER
HOGSTON S. HAGA
MARGARET A. HAWTHORNE
BARBARA J. HECTOR
JOSEPH J. HELMINIAK
TEMPSIE L. JONES
RONALD S. KEEN
JAMES M. LARSEN
PATTI A. *LEDERER
STEPHEN W. LOMAX
CONSTANCE J. MOORE
JOHN H. MORSE
WAYNE C. NYGREN
DIANA L. RUZICKA
FATEMEH T. STRITMATTER
JANET L. WILSON
THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT TO THE GRADE
INDICATED IN THE UNITED STATES ARMY MEDICAL SERVICE CORPS AND
FOR REGULAR APPOINTMENT (IDENTIFIED BY AN ASTERISK(*)) UNDER
TITLE 10, U.S.C., SECTIONS 624, 531, AND 3064:
To be colonel
STEPHEN G. BEARDSLEY III
FRED H. BROWN JR.
WAYNE W. CLARK
KAYLENE M. CURTIS
MARK K. DAVIS
HAROLD C. *DICKENS
BEAU J. FREUND
DAVID E. FULBRIGHT
JOHN A. GIDDENS
DONALD L. GOODE
RONALD A. HAMILTON
CHRISTOPHER J. HARRINGTON
MARK W. HEGERLE
SHEILA A. HOBBS
RICHARD N. JOHNSON
GEORGE W. KORCH
MICHAEL J. KRUKAR
TIMOTHY E. LAMB
VASEAL M. LEWIS
ANGEL L. LUGO
COLEEN K. MARTINEZ
WENDY L. MARTINSON
REGINALD A. MILLER
ULMONT C. NANTON JR.
ANTONIO F. REYES
JAMES S. RICE
MARTHA A. SANDERS
EDWARD R. SCHOWALTER III
JOHN C. SHERO
PATRICK O. WILSON
THE FOLLOWING NAMED OFFICER FOR APPOINTMENT TO THE GRADE
INDICATED IN THE UNITED STATES ARMY AND FOR REGULAR
APPOINTMENT UNDER TITLE 10, U.S.C., SECTIONS 624 AND 531:
To be lieutenant colonel
GARY R. MCMEEN
[[Page 29075]]
HOUSE OF REPRESENTATIVES--Monday, November 17, 2003
The House met at 12:30 p.m. and was called to order by the Speaker
pro tempore (Mr. Pence).
____________________
DESIGNATION OF SPEAKER PRO TEMPORE
The SPEAKER pro tempore laid before the House the following
communication from the Speaker:
Washington, DC,
November 17, 2003.
I hereby appoint the Honorable Mike Pence to act as Speaker
pro tempore on this day.
J. Dennis Hastert,
Speaker of the House of Representatives.
____________________
MESSAGE FROM THE SENATE
A message from the Senate by Mr. Monahan, one of its clerks,
announced that the Senate has passed with an amendment in which the
concurrence of the House is requested, a bill of the House of the
following title:
H.R. 1261. An act to enhance the workforce investment
system of the Nation by strengthening one-stop career
centers, providing for more effective governance
arrangements, promoting access to a more comprehensive array
of employment, training, and related services, establishing a
targeted approach to serving youth, and improving performance
accountability, and for other purposes.
The message also announced that the Senate has passed a bill of the
following title in which the concurrence of the House is requested:
S. 1824. An act to amend the Foreign Assistance Act of 1961
to reauthorize the Overseas Private Investment Corporation,
and for other purposes.
____________________
MORNING HOUR DEBATES
The SPEAKER pro tempore. Pursuant to the order of the House of
January 7, 2003, the Chair will now recognize Members from lists
submitted by the majority and minority leaders for morning hour
debates.
The Chair will alternate recognition between the parties, with each
party limited to not to exceed 30 minutes, and each Member, except the
majority leader, the minority leader, or the minority whip, limited to
not to exceed 5 minutes.
The Chair recognizes the gentleman from Florida (Mr. Stearns) for 5
minutes.
____________________
STEMMING THE SPREAD OF CARGO THEFT
Mr. STEARNS. Mr. Speaker, billions and billions of dollars are sapped
from our economy each year by cargo theft. It is a staggering problem,
and, at the same time, a problem that really no one is aware of.
Every day, millions of cargo carrying trucks transport their contents
across the highways of our districts. And, every day, millions of
dollars of goods are stolen from these trucks, often times with violent
results.
Mr. Speaker, this week I will introduce legislation that will seek to
address the growing tide of cargo theft in hopes of bringing awareness
of this problem to the national spotlight.
With the prevalence of cargo theft today, insurance companies have
placed a heavy burden on the trucking industry. The costs associated
with investigation, insurance payments, are only exacerbating what is
already an industry crisis.
Typical targets for cargo theft often include shipments of clothing,
prescription drugs, computers and jewelry. A truckload of computer
microprocessors can be worth millions of dollars. A single pallet of
pharmaceuticals, another common target, can be worth upwards of $2
million dollars, and cargo containers are capable of carrying dozens of
such pallets.
The high value-to-volume ratio of these goods has encouraged
criminals previously involved in drug dealing to move into this area of
activity, where they run less risk of detection and suffer less severe
penalties if they are caught. The National Cargo Security Council
reported that cargo worth $12 billion is stolen in the United States
every year, and yet the penalties for cargo theft are lower than those
for selling drugs.
Cargo thieves employ creative means to prey on cargo carriers and
have managed to stay one step ahead of authorities. Thieves know what
they want and where they can find it, striking cargo containers at
ports and at trains and 18-wheelers.
Thieves will either roll the dice, stealing containers with unknown
contents, or they will go as far as camping outside of distribution
centers. This method is called ``full load truck theft.'' It involves
monitoring shipments out of distribution centers that are known for
putting out expensive goods. The thieves will then follow the trucks in
rental cars waiting for the right time to pounce. This will often occur
at truck rest stops, where the driver leaves the vehicle. The process
can amazingly take but a few minutes. These professional criminals are
usually licensed truck drivers, who can hot wire a truck quickly and
efficiently.
The legislation that I have proposed will seek to finally give both
lawmakers and law enforcement officials the tools they need to combat
this growing crime. Cargo theft does not receive the attention it
deserves because very little concrete information exists today
concerning this problem. There currently is no all-inclusive database
that collects, contains or processes distinct information and data
concerning cargo theft. My bill would require the creation of such a
database that will allow State and local law enforcement officials to
coordinate reports of cargo theft, helping them prove to lawmakers just
how severe this problem really is.
Also, after speaking with officials in my Congressional District, it
has become clear to me that stricter criminal penalties are needed in
order to keep criminals from turning to cargo theft. My bill does just
this, requiring that the United States Sentencing Commission determine
what sentencing enhancement must be made.
Finally, this legislation would ensure that cargo theft reports would
be reflected as a separate category in the Uniform Crime Reporting
System, the data collection system used by the FBI. Currently no such
category exists, resulting in ambiguous data and the inability to track
and monitor trends.
Mr. Speaker, Members in this Chamber need to be aware of this
problem, a problem not only specific to the large port cities of this
country, but a problem specific to all Congressional districts. Flowing
up and down I-75, through the heart of my district, thieves transport
goods to and from Miami. Billions of dollars are being sapped from our
economy, and this body is doing little to stop it. It is time that we
get aggressive and make our highways safe again for commerce.
This body must make an example of cargo thieves. We must let them
know that they will not get away with merely a slap on the hand. And as
sheriff's departments begin integrating special cargo theft task
forces, we must arm them with the ability to prosecute criminals with
stiffer penalties.
Mr. Speaker, my bill represents a cohesive effort backed by law
enforcement and industry representatives alike. I urge Members to
support this bill, in hopes of bringing acknowledgment of this fight
against cargo theft at the Federal level.
[[Page 29076]]
With links even to terrorism, cargo theft is a problem that has flown
under our radar screens for far too long. Until we strengthen these
laws, this 30-year-old crime wave will persist, threatening our ports
and roads and costing our economy billions of dollars.
____________________
LOOMING DIABETES EPIDEMIC CAUSING HEALTHCARE CRISIS
The SPEAKER pro tempore. Pursuant to the order of the House of
January 7, 2003, the gentleman from New Mexico (Mr. Udall) is
recognized during morning hour debates for 5 minutes.
Mr. UDALL of New Mexico. Mr. Speaker, the headlines shout out:
``Healthcare crisis looms.'' ``Diabetes epidemic.'' ``Increase in
childhood obesity.'' Solutions abound, but the one which could make a
real difference, prevention, is only paid lip service. We say ``an
ounce of prevention is worth a pound of cure,'' but then we fail to
reinvent our health policy to make prevention a cornerstone.
The facts are ominous, unrelenting and tell it all:
An obesity epidemic started in the early 1980s and equally impacts
all age groups. Nearly one in four Americans are obese. Obesity is
highly predictive of diabetes.
One in three children now being born in the United States ultimately
will become diabetic.
Diabetes incidence increased 61 percent in the last decade; 76
percent for people in their thirties.
An alarming British study reported one-third of 5-year-old girls were
overweight and showing signs of developing Type II diabetes, formerly
called adult onset diabetes.
The Surgeon General in his December 2001 report left no doubt where
we are headed. ``Left unabated, overweight and obesity may soon cause
as much preventable disease and death as cigarette smoking.''
The healthcare costs to deal with these trends are overwhelming and
unaffordable. The National Institutes of Health has estimated that
diabetes costs the United States close to $138 billion each year in
direct and indirect costs. Let me repeat, $138 billion. We cannot
afford to double, triple and quadruple these costs. Even if we could
find the resources, would this be a wise expenditure of our finite
healthcare dollars?
Today we spend 95 percent of our healthcare dollars on treating
chronic and acute illnesses, many of which could be prevented in the
first place. In other cases we could at least delay the onset of
disease for a number of years and provide a higher quality of life. The
dollars we spend on prevention are minuscule, and we do not track the
outcomes in a meaningful way.
This Nation needs a new approach to healthcare, which puts prevention
front and center. The key to prevention is personal responsibility and
personal action. If people are given the facts and alternatives, they
can take charge of their health.
We are facing an epidemic of diabetes in New Mexico due to obesity
and unhealthy lifestyles. Minority communities are disproportionately
impacted. But there is hope in many of our communities, where
individuals are taking charge of their health and their future.
I was in the Navajo community of Thoreau recently and saw some
dynamic seniors reshaping the health of their community. These Navajo
seniors knew that decades ago, when the Navajo people were leading an
active life and herding their sheep and livestock and eating
traditional food, there was very little disease. They remember diabetes
and other modern ailments were also unheard of in the Navajo
population. So with the help of the Centers for Disease Control and the
University of New Mexico Preventive Health Center, they designed a menu
of healthy traditional foods.
They call the regimen of regular exercise and healthier eating ``The
Healthy Path.'' The seniors are teaching younger parents and their
grandchildren the benefits of these healthier foods and how to begin
The Healthy Path. Word has spread, and there are now a dozen healthy
path initiatives ongoing in Navajo chapter houses.
This is not rocket science. We know prevention works. We have the
tests and screening to know when someone is pre-diabetic, on a path to
diabetes. Doctors have known for years that regular exercise, weight
loss and healthy diet will virtually eliminate Type II diabetes. Let us
put this knowledge to work and create healthier individuals and
communities.
____________________
RECESS
The SPEAKER pro tempore. Pursuant to clause 12(a) of rule I, the
Chair declares the House in recess until 2 p.m. today.
Accordingly (at 12 o'clock and 44 minutes p.m.), the House stood in
recess until 2 p.m.
____________________
{time} 1400
AFTER RECESS
The recess having expired, the House was called to order by the
Speaker pro tempore (Mr. Petri) at 2 p.m.
____________________
PRAYER
The Chaplain, the Reverend Daniel P. Coughlin, offered the following
prayer:
Lord God, all Your ways are just. You alone are the source of true
compassion and love. We turn to You to be strengthened this week so we
may accomplish the work You set before us.
By their deeds You judge all peoples. May this Congress prove to be
just stewards of the resources of this Nation and worthy leaders who
gain the respect of the people.
Above all and in all, guide their judgment and place prudence and
practicality in their hearts. May they meet their responsibilities with
fair and open debate, seeking the best means to achieve common goals.
May their work, conversations and all their efforts be dedicated to
Your service and meet the needs of the least in our midst now and
forever. Amen.
____________________
THE JOURNAL
The SPEAKER pro tempore. The Chair has examined the Journal of the
last day's proceedings and announces to the House his approval thereof.
Pursuant to clause 1, rule I, the Journal stands approved.
____________________
PLEDGE OF ALLEGIANCE
The SPEAKER pro tempore. Will the gentleman from Minnesota (Mr.
Gutknecht) come forward and lead the House in the Pledge of Allegiance.
Mr. GUTKNECHT led the Pledge of Allegiance as follows:
I pledge allegiance to the Flag of the United States of
America, and to the Republic for which it stands, one nation
under God, indivisible, with liberty and justice for all.
____________________
ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, the Chair
will postpone further proceedings today on motions to suspend the rules
on which a recorded vote or the yeas and nays are ordered, or on which
the vote is objected to under clause 6 of rule XX.
Record votes on postponed questions will be taken after 6:30 p.m.
today.
____________________
RECOGNIZING AGRICULTURAL RESEARCH SERVICE FOR 50 YEARS OF OUTSTANDING
SERVICE
Mr. GUTKNECHT. Mr. Speaker, I move to suspend the rules and pass the
Senate joint resolution (S.J. Res. 22) recognizing the Agricultural
Research Service of the Department of Agriculture for 50 years of
outstanding service to the Nation through agricultural research.
The Clerk read as follows:
S.J. Res. 22
Whereas the Agricultural Research Service is the primary
research agency of the Department of Agriculture and provides
the Department of Agriculture and other Federal offices with
objective research that is critical to the missions of those
offices;
Whereas the agricultural research conducted by the
Agricultural Research Service has an enormous impact on the
economic viability of agriculture in the United States and
around the world;
[[Page 29077]]
Whereas people around the world, especially rural
Americans, enjoy a higher quality of life due in part to the
work of the Agricultural Research Service to expand
scientific knowledge;
Whereas the Agricultural Research Service has achieved
major scientific breakthroughs that have benefited farmers,
ranchers, agribusiness, and consumers;
Whereas the Agricultural Research Service has made
scientific discoveries and technological developments that
address agricultural problems of broad scope and high
national priority, ensure safe and high quality food and
other agricultural products that meet nutritional needs, and
maintain a quality environment and natural resource base; and
Whereas the Agricultural Research Service continues to play
a vital role in maintaining the global competitiveness and
leadership of the United States in the next millennium: Now,
therefore, be it
Resolved by the Senate and House of Representatives of the
United States of America in Congress assembled, That
Congress--
(1) recognizes the Agricultural Research Service of the
Department of Agriculture for 50 years of outstanding service
to the Nation through agricultural research; and
(2) acknowledges the promise of the Agricultural Research
Service to continue to perform outstanding agricultural
research in the next 50 years and beyond.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Minnesota (Mr. Gutknecht) and the gentleman from Texas (Mr. Stenholm)
each will control 20 minutes.
The Chair recognizes the gentleman from Minnesota (Mr. Gutknecht).
Mr. GUTKNECHT. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, Senate Joint Resolution 22 honors the Agricultural
Research Service, the primary research agency of the United States
Department of Agriculture. On Wednesday, October 29, the House
Committee on Agriculture reported out an identical resolution, House
Joint Resolution 74.
Although ARS can trace its heritage back to early 19th century seed
collection activities in the U.S. Patent Office, it was originally
organized on November 2, 1953, when the USDA consolidated most of its
research functions into one newly-named Agricultural Research Service.
I am very pleased to help ARS mark its 50th anniversary and to use
this occasion to recognize the important contributions ARS has made to
the agricultural community, as well as to our Nation.
ARS is a public institution that conducts agricultural research
exclusively for the public good. ARS scientists and other employees
serve the Nation in their capacity of public servants and are
accountable to the American people. The research is often long-term and
costly and unlikely to be undertaken by the private sector. The ARS
discoveries and innovations touch the lives of every American through
the food we eat, the clothes we wear, and the environment in which we
all live. Those of us from rural districts see firsthand the impact of
ARS research but we should all be mindful of the agency's unique
contributions to the quality of life for people everywhere. This impact
is far greater than anyone could have imagined 50 years ago.
To mark its five decades of public service and to look forward to the
next 50 years and beyond of even greater service to this Nation, ARS
will be celebrating with various events throughout the next year. In
fact, in recognition of the local and national partnerships that are
the foundation of much of their research, ARS has declared this a year
of outreach and will hold an open house or in some other way throw open
their doors at each location over the next year. With over 100
locations across the country, I hope you will support these activities
and provide special encouragement for continued ARS leadership in the
agricultural, natural resources and technological arenas.
I urge all Members to support this important resolution.
Mr. Speaker, I reserve the balance of my time.
Mr. STENHOLM. Mr. Speaker, I yield myself such time as I may consume.
I rise today in support of S.J. Res. 22, a resolution commending the
USDA Agricultural Research Service for their 50 years of service to
America. For half a century now, the ARS has been a leader in publicly-
funded basic and applied research. Given the structure of U.S.
agriculture, individual family farms are certainly not able to provide
for their own technical and research needs. Publicly-funded research
entities such as ARS can provide the lead for long-term projects and
have been an obvious and significant success to the benefit of the
American people.
Over the years, ARS scientists have made hundreds of technical
advances, released thousands of new plant varieties, and contributed to
the abundant food supply that all our citizens enjoy. My own State and
district have benefited in many tangible ways from the work of the
Agricultural Research Service, and I doubt that there are any of us
here today who could not say the same thing. The ARS has contributed so
very much to advances in the quality and quantity of our food supply,
benefiting rural and urban dwellers alike.
I congratulate the Agricultural Research Service on their 50 years of
service and I look forward to continue working with them to enhance
both American agriculture and the well-being of all our citizens. I
encourage all Members to support this well-deserved resolution of
commendation.
Mr. Speaker, I yield back the balance of my time.
Mr. GUTKNECHT. Mr. Speaker, I yield myself such time as I may
consume.
This is a very important resolution. The ARS has done some wonderful
work for us. This is one small way that Congress can say thank you and
recognize their efforts.
Mr. HOYER. Mr. Speaker, I rise today to recognize the Agriculture
Research Service (ARS) of the Department of Agriculture for 50 years of
outstanding research. ARS is the established leader in agriculture
science, producing quality research used by many to help create
responsible science-based policy. As we prepare to celebrate their
accomplishments of the past half-century, it is also an opportunity for
us to bear in mind future achievements.
ARS is the largest science organization in the world dedicated to
agriculture research. As the Department of Agriculture's in-house
agency. ARS conducts research to solve problems that are of high
national priority and in the best interests of the Nation. This science
is vital to the mission area of several Department of Agriculture
agencies such as the Animal and Plant Health Inspection Service
(APHIS), Food Safety Inspection Service (FSIS), Grain Inspection,
Packers and Stockyard Administration (GIPSA), and the Natural Resources
Conservation Service (NRCS). ARS also serves a number of other Federal
agencies such as the Food and Drug Administration (FDA), the
Environmental Protection Agency (EPA), and some components within the
Department of Defense (DOD), and the Department of Interior (DOI). Not
only is ARS responsible for providing data to these agencies, they also
distribute information to producers, consumers, and other stakeholders.
It is easy to see that research is an essential tool, but it is also
a worthy investment. Federal agriculture research is a critical element
in maintaining our competitive edge in the international arena as well
as helps us address environmental challenges. We can better protect our
resources from plant pests and animal diseases and can expect improved
water quality, resource conservation, and renewable sources of energy.
The value of these should research programs benefit not only
agriculture, but all Americans.
ARS is able to carry out their mission of providing scientific
research through collaborative efforts. There are more than 2,100
scientists conducting research at approximately 100 locations across
the country and overseas. At any given time, ARS has more than 1,000
research projects underway, each of which is incorporated into one of
22 national programs. The network of laboratories and research centers
across the country allows ARS to address problems quickly and
efficiently.
I am proud to represent one center that has significantly contributed
to this effort, the Beltsville Area Research Center (BARC), located in
Beltsville, MD. I have worked with BARC over the years and have
witnessed the work these researchers do and how critical it is to our
daily lives.
BARC is the largest and most diversified agricultural research
complex in the world. Beltsville's record of accomplishments and
programs has earned the center international accolade and attracts
thousands of visitors each year. Research in the Beltsville area
addresses issues of agriculture importance and high
[[Page 29078]]
national priority through programs in the Plant Sciences Institute, the
Animal and Natural Resources Institute, the Beltsville Human Nutrition
Research Center, and the U.S. National Arboretum. I am sure BARC will
live up to its reputation of producing high quality research on the
cutting edge that will propel U.S. agriculture into the future.
We should take great pride for the many milestones that have been met
and continue to support ARS and American agriculture.
Mr. VISCLOSKY. Mr. Speaker, for the past 50 years, the Agriculture
Research Service, or ARS as they are better known, has performed
indispensable agriculture research across the country, including in the
Congressional District I represent. I would like to take this
opportunity to recognize ARS in honor of their 50th anniversary as the
U.S. Department of Agriculture's main research authority.
From improving food safety to protecting crops and livestock, ARS has
proved itself invaluable throughout the past 50 years. As the
Department of Agriculture's research arm, they have been able to
translate their raw data into profitability for farmers and lower costs
for consumers. ARS has formed lasting partnerships with Universities
throughout the nation, and has done so at Purdue University since 1965
when they released their first nationwide soil erosion-prediction
equation. ARS maintains top-notch Crop Production and Pest Control,
Livestock Behavior, and National Soil Erosion Laboratory units at
Purdue. ARS, in conjunction with Purdue, continues to stay on the
leading edge of agricultural research. Just this summer, they released
their cutting edge Water Erosion Prediction Project over the Internet
with software known as GeoWEPP.
From this research station, individuals such as Larry Dunkle, Donald
Lay, and Darrell Norton have been able to study the agricultural
dynamic of Northwest Indiana. They have all contributed a fundamental
service to Northwest Indiana as well as the rest of the state, and
their service with the ARS is indeed recognized and deeply appreciated.
The agricultural community of Northwest Indiana has counted on their
contributions of ARS for 50 years now, and that strong partnership will
continue into the future.
Mr. Speaker, I ask that my colleagues join me as I congratulate ARS
and its researchers on their 50th anniversary by supporting S.J. Res.
22. I would further like to express my gratitude for their service to
the agricultural community. Their accomplishments speak volumes, and I
thank them for their vital public service.
Mr. GUTKNECHT. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Minnesota (Mr. Gutknecht) that the House suspend the
rules and pass the Senate joint resolution, S.J. Res. 22.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. GUTKNECHT. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
____________________
NATIONAL VETERINARY MEDICAL SERVICE ACT
Mr. GUTKNECHT. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 1367) to authorize the Secretary of Agriculture to conduct a
loan repayment program regarding the provision of veterinary services
in shortage situations, and for other purposes, as amended.
The Clerk read as follows:
H.R. 1367
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION. 1. SHORT TITLE.
This Act may be cited as the ``National Veterinary Medical
Service Act''.
SEC. 2. ESTABLISHMENT OF LOAN REPAYMENT PROGRAM REGARDING
VETERINARY MEDICINE.
The National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended by
inserting after section 1415 the following new section:
``SEC. 1415A. VETERINARY MEDICINE LOAN REPAYMENT.
``(a) Program.--
``(1) Service in shortage situations.--The Secretary shall
carry out a program of entering into agreements with
veterinarians under which the veterinarians agree to provide,
for a period of time as determined by the Secretary and
specified in the agreement, veterinary services in
veterinarian shortage situations. For each year of such
service under an agreement under this paragraph, the
Secretary shall pay an amount, as determined by the Secretary
and specified in the agreement, of the principal and interest
of qualifying educational loans of the veterinarians.
``(2) Service to federal government in emergency
situations.--
``(A) In general.--The Secretary may enter into agreements
of one year duration with veterinarians who have agreements
pursuant to paragraph (1) for such veterinarians to provide
services to the Federal Government in emergency situations,
as determined by the Secretary, under terms and conditions
specified in the agreement. Pursuant to an agreement under
this paragraph, the Secretary shall pay an amount, in
addition to the amount paid pursuant to the agreement in
paragraph (1), as determined by the Secretary and specified
in the agreement, of the principal and interest of qualifying
educational loans of the veterinarians.
``(B) Requirements.--Agreements entered into under this
paragraph shall include the following:
``(i) A veterinarian shall not be required to serve more
than 60 working days per year of the agreement.
``(ii) A veterinarian who provides service pursuant to the
agreement shall receive a salary commensurate with the duties
and shall be reimbursed for travel and per diem expenses as
appropriate for the duration of the service.
``(b) Determination of Veterinarian Shortage Situations.--
In determining `veterinarian shortage situations' the
Secretary may consider the following:
``(1) Urban or rural areas that the Secretary determines
have a shortage of veterinarians.
``(2) Areas of veterinary practice that the Secretary
determines have a shortage of veterinarians, such as public
health, epidemiology, and food safety.
``(3) Areas of veterinary need in the Federal Government.
``(4) Other factors that the Secretary considers to be
relevant.
``(c) Administration.--
``(1) Authority.--The Secretary may carry out this program
directly or enter into agreements with another Federal agency
or other service provider to assist in the administration of
this program.
``(2) Breach remedies.--
``(A) In general.--Agreements with program participants
shall provide remedies for any breach of an agreement by a
participant, including repayment or partial repayment of
financial assistance received, with interest.
``(B) Amounts recovered.--Funds recovered under this
subsection shall be credited to the account available to
carry out this section and shall remain available until
expended.
``(3) Waiver.--The Secretary may grant a waiver of the
repayment obligation for breach of contract in the event of
extreme hardship or extreme need, as determined by the
Secretary.
``(4) Amount.--The Secretary shall develop regulations to
determine the amount of loan repayment for a year of service
by a veterinarian. In making the determination, the Secretary
shall consider the extent to which such determination--
``(A) affects the ability of the Secretary to maximize the
number of agreements that can be provided under the
Veterinary Medicine Loan Repayment Program from the amounts
appropriated for such agreements; and
``(B) provides an incentive to serve in veterinary service
shortage areas with the greatest need.
``(5) Qualifying educational loans.--Loan repayments
provided under this section may consist of payments on behalf
of participating individuals of the principal and interest on
government and commercial loans received by the individual
for attendance of the individual at an accredited college of
veterinary medicine resulting in a degree of Doctor of
Veterinary Medicine or the equivalent, which loans were made
for--
``(A) tuition expenses;
``(B) all other reasonable educational expenses, including
fees, books, and laboratory expenses, incurred by the
individual; or
``(C) reasonable living expenses as determined by the
Secretary.
``(6) Repayment schedule.--The Secretary may enter into an
agreement with the holder of any loan for which payments are
made under this section to establish a schedule for the
making of such payments.
``(7) Tax liability.--In addition to educational loan
repayments, the Secretary shall make such additional payments
to participants as the Secretary determines to be appropriate
for the purpose of providing reimbursements to participants
for individual tax liability resulting from participation in
this program.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated for carrying out this section
such sums as may be necessary and such sums shall remain
available to the Secretary for the purposes of this section
until expended.''.
[[Page 29079]]
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Minnesota (Mr. Gutknecht) and the gentleman from Texas (Mr. Stenholm)
each will control 20 minutes.
The Chair recognizes the gentleman from Minnesota (Mr. Gutknecht).
Mr. GUTKNECHT. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise today in support of H.R. 1367, the National
Veterinary Medical Service Act. I commend the gentleman from
Mississippi (Mr. Pickering) for his leadership on this issue.
H.R. 1367, as amended, authorizes the Secretary of Agriculture,
subject to the availability of appropriations, to assist veterinarians
in repaying their educational loans if they agree to provide veterinary
medical services in areas where the Secretary has determined a shortage
of qualified veterinarians exists.
In addition, at the request of the USDA, the bill authorizes the
Secretary to provide additional loan repayment for those veterinarians
in this program who agree to provide services to the Federal Government
in emergency situations. Examples of when this may be important include
California's recent experience with Exotic Newcastle Disease, or in a
case closer to home, an outbreak of low pathogenic Avian influenza in
Virginia here in 2002. In both of these examples, the Federal
Government, acting through USDA's Animal and Plant Health Inspection
Service, mobilizes its resources in order to detect, control and
eradicate disease. Having a pool of qualified veterinarians able to
assist in a time of emergency simply bolsters our ability to rapidly
contain diseases which can cost our economy millions or even billions
of dollars.
Once again, I commend the gentleman from Mississippi for his hard
work on this important legislation and urge all Members to support it.
Mr. Speaker, I reserve the balance of my time.
Mr. STENHOLM. Mr. Speaker, I yield myself such time as I may consume.
I rise today in support of H.R. 1367, the National Veterinary Medical
Services Act. I want to commend the gentleman from Mississippi (Mr.
Pickering) and the gentleman from Texas (Mr. Turner) for their good
work in advancing this legislation.
Assuring an adequate supply of veterinarians in many underserved
rural and urban areas is a critical issue for our Nation's animal
health infrastructure. It is generally private veterinarians who are
the first to identify and respond to animal disease outbreaks. In
addition, there is a great need for private veterinarians to supplement
the Federal response during future animal health emergencies. The
assistance that this legislation will provide to encourage veterinary
practice in underserved areas, along with the creation of something
like a ``National Guard'' for private veterinarians who can be called
up in emergencies, should wisely enhance our preparation to deal with
future animal health emergencies.
The bill under consideration will help to encourage both goals
through a very modest public investment with the U.S. Department of
Agriculture. I believe H.R. 1367 is a good, cost-effective policy. I
encourage Members to support passage of this bill.
Mr. Speaker, I reserve the balance of my time.
Mr. GUTKNECHT. Mr. Speaker, I yield such time as he may consume to
the gentleman from Mississippi (Mr. Pickering), the author of the bill.
Mr. PICKERING. Mr. Speaker, I want to thank the gentleman from
Minnesota (Mr. Gutknecht), the gentleman from Texas (Mr. Stenholm), and
the gentleman from Virginia (Mr. Goodlatte) and all of his staff who
have worked in a bipartisan manner with the gentleman from Texas (Mr.
Turner) and myself as we have brought this much-needed legislation
through the committee and now to the floor of the U.S. House of
Representatives.
I want to thank those leaders at Mississippi State University who had
the foresight and the ability to bring to our attention here on the
committee and in my office the need that we have, the critical need,
the desperate need that we have to be able to help our students, our
veterinarian students who often end up their education with up to, on
average, $70,000 in debt. When that occurs, it is so difficult for them
to pay the debt and practice in rural or underserved markets and make
the type of salary that is needed to be able to retire that debt and
pay that debt and raise a family, start a family and start their
dreams. And so we are doing just as we have done for medical doctors
and dentists and nurses and teachers, and, that is, starting a program
that will help them repay their debt, that will pick up those
obligations, if in return, they will agree to serve in those areas
where we have critical shortages in the rural and the large-animal
practices and the underserved markets. Not only will they fill that
critical need that is so important not only in animal health, but as it
relates to the connections to human health, and in national security,
and in homeland security, where we have new threats of bioterrorism, or
we have the outbreaks of dreaded diseases that we have seen ravage not
only Europe, the economy and the agricultural economy in Europe with
mad cow disease, that in those times of crisis those that sign up and
meet these requirements and then have their debts repaid, will agree to
serve their country, in essence, a National Guard for veterinarians.
{time} 1415
So we see today a way to meet the critical shortage of veterinarians
in rural and underserved markets. We see a way to encourage the service
to our country in homeland security and to meet the threats of either
bioterrorism or major animal disease outbreaks. This is much-needed
legislation that will help us as we go forward.
Again, I want to thank the committee, the staff, the chairman, and
the ranking member for all their help and assistance in getting us to
this point. We hope that this legislation can pass not only today in
the House but move quickly through the Senate as we address this much-
needed legislation and to address the critical shortages that we face
in rural districts like mine and across the country.
Mr. STENHOLM. Mr. Speaker, I yield myself such time as I may consume.
I would ask to engage the gentleman from Minnesota (Mr. Gutknecht) on
behalf of the gentleman from Virginia (Chairman Goodlatte) in a brief
colloquy.
During the Committee consideration of H.R. 1367, I raised some
concerns about the potential that implementation of this bill, should
it be passed and signed into law, might include an arbitrary graduation
cutoff date for veterinarians wishing to participate. We certainly do
not want to preclude participation by veterinarians that may have years
of valuable experience. This has been a problem with regard to a
different educational loan repayment program that folks from my
district have tried to access in the past. It is my understanding that
nothing in this legislation before us today would encourage the
establishment of such a standard by USDA. It is my understanding that
any veterinarian who meets the general standards for participation
would be eligible to apply for this program no matter how long might
have elapsed since her or his graduation from an accredited school of
veterinary medicine. Is that the gentleman's understanding of the bill
language?
Mr. GUTKNECHT. Mr. Speaker, will the gentleman yield?
Mr. STENHOLM. I yield to the gentleman from Minnesota.
Mr. GUTKNECHT. Mr. Speaker, I thank the gentleman from Texas (Mr.
Stenholm) for yielding and for raising this issue. We have talked to
the gentleman from Virginia (Chairman Goodlatte), and it is our
understanding and intent that nothing in this language would preclude
any veterinarian, no matter when they graduated from vet school, from
applying or to participate so long as they have eligible student loan
debt and meet other criteria for participation as described in the
legislation.
Mr. STENHOLM. Mr. Speaker, I thank the gentleman for helping to make
this point clear.
[[Page 29080]]
Mr. Speaker, I have no further requests for time, and I yield back
the balance of my time.
Mr. GUTKNECHT. Mr. Speaker, I yield myself such time as I may
consume.
I would like to thank the gentleman from Mississippi (Mr. Pickering).
I think this is a very important piece of legislation. I think
veterinarians in some respects are like tourniquets: we do not need one
often; but when we do need one, we need one rapidly; and in underserved
areas, it could become a very serious problem. So I think this is an
important piece of legislation. I hope my colleagues will join me in
supporting this bill.
Mr. HAYES. Mr. Speaker, I want to commend my colleagues for this
needed legislation which ensures the Federal Government's deep
commitment to a highly trained and diverse workforce in rural and
underserved areas, and encourages veterinarians to assist the U.S.
Department of Agriculture in emergency disease outbreak situations. But
we should go even further. In order to best maximize Federal Government
resources, both in this program at the Department of Agriculture, as
well as loan repayment programs throughout the Federal Government, we
should allow competition within other aspects of the student loan
program, including consolidation loans.
The 1998 reauthorization of the Higher Education Act allowed Federal
Family Education Loan (FFEL) student loan borrowers who hold loans from
more than one underlying lender to select from those lenders when
consolidating their loans. This change has enabled many recent college
graduates to refinance their loans at a lower fixed-interest rate.
However, student loan borrowers who hold loans through a single lender
must consolidate loans through their current lender. This rule is known
as the ``Single Holder Rule.''
In order to ensure that we instill competition, we will need to make
sure that during the reauthorization of the Higher Education Act, which
is currently moving through the Education and the Workforce Committee,
we repeal the single holder rule. I want to thank Chairman Boehner and
Congressman McKeon for their efforts to keep college costs under
control during consideration of this important legislation. It will be
part of my commitment to Federal agencies, students and families
everywhere that they have the benefit of competition from qualified
lenders in the program when they consolidate their loans and, thus,
allow them to take advantage of historically low fixed interest rates--
just as other borrowers are able to do every day.
Mr. GUTKNECHT. Mr. Speaker, I have no further requests for time, and
I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Petri). The question is on the motion
offered by the gentleman from Minnesota (Mr. Gutknecht) that the House
suspend the rules and pass the bill, H.R. 1367, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________
PROVIDING FOR CONVEYANCE OF LAND IN APALACHICOLA NATIONAL FOREST,
FLORIDA
Mr. GUTKNECHT. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3217) to provide for the conveyance of several small parcels
of National Forest System land in the Apalachicola National Forest,
Florida, to resolve boundary discrepancies involving the Mt. Trial
Primitive Baptist Church of Wakulla County, Florida, and for other
purposes.
The Clerk read as follows:
H.R. 3217
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. LAND CONVEYANCE, APALACHICOLA NATIONAL FOREST,
FLORIDA.
(a) Conveyance Authorized.--The Secretary of Agriculture
may convey, without consideration, to the Mt. Trial Primitive
Baptist Church of Wakulla County, Florida, all right, title,
and interest of the United States in and to four parcels of
real property in the Apalachicola National Forest, Florida,
located in section 5 of township 5 south, range 2 west,
Tallahassee meridian, and consisting of approximately 9.95
acres, 0.09 acres, 0.09 acres, and 0.096 acres, respectively,
as depicted on a map, plat number 5-118, prepared as part of
a 1983 Forest Service survey.
(b) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by the Secretary.
(c) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under subsection (a) as the Secretary
considers appropriate to protect the interests of the United
States.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Minnesota (Mr. Gutknecht) and the gentleman from Texas (Mr. Stenholm)
each will control 20 minutes.
The Chair recognizes the gentleman from Minnesota (Mr. Gutknecht).
Mr. GUTKNECHT. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, H.R. 3217 allows the Forest Service to convey without
consideration 10.2 acres of the Apalachicola National Forest to the Mt.
Trial Primitive Baptist Church of Wakulla County, Florida.
This parcel of land was purchased by the Mt. Trial church in the
1930s; but for a variety of reasons, the deed was never recorded.
Unfortunately, the original landowner subsequently resold the land to
the National Forest Service in the 1950s. While the Forest Service now
technically owns the land, it is more than happy to return this
cemetery to the church. This is a fair and equitable resolution to this
unfortunate situation.
H.R. 3217 was marked up by the Committee on Agriculture on October
29, 2003. It was approved by the committee on a voice vote without
amendment. The bill enjoys the support of the local community and the
administration. I urge all Members to support this legislation and
return this property to its rightful owner.
Mr. STENHOLM. Mr. Speaker, I yield myself such time as I may consume.
I rise in support of H.R. 3217, legislation to convey several small
parcels of National Forest System land in the Apalachicola National
Forest in order to resolve boundary discrepancies involving the U.S.
Forest Service and the Mt. Trial Primitive Baptist Church of Wakulla
County, Florida.
Briefly, H.R. 3217 would allow the Mt. Trial church to expand a
cemetery that it maintains next to its church building. This
legislation would correct boundary discrepancies that resulted from the
church and the Forest Service claiming ownership to the same 10-acre
tract of land.
By way of background, the Mt. Trial Primitive Baptist Church is a
historically African American church that purchased 10 acres of land in
the 1930s in anticipation of expanding its cemetery. The church,
however, never recorded the deed for the land purchased at the local
county courthouse.
In 1938, the U.S. Forest Service purchased the same 10 acres of land
as part of a larger tract that was incorporated into the Apalachicola
National Forest. In that instance, the Forest Service did record its
deed; and while there is no dispute about the validity of the church's
purchase, the Department of Agriculture's legal counsel has ruled that
because the Federal Government did file its deed with the county, it is
the rightful owner of the property. I would also note that two graves
are already located on the Federal Government property and the church's
existing cemetery is full.
Mr. Speaker, H.R. 3217 will solve the boundary discrepancies by
giving the Secretary of Agriculture the authority to transfer the
property to the Mt. Trial Primitive Baptist Church. I encourage my
colleagues to support this measure. This measure has been brought to
our attention by the gentleman from Florida (Mr. Boyd).
Mr. Speaker, I have no further requests for time, and I yield back
the balance of my time.
Mr. GUTKNECHT. Mr. Speaker, I yield myself such time as I may
consume.
This is a fair and equitable way to deal with this problem. All
parties agree to it, and hopefully the Members of the House will join
us in support of this important legislation.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Minnesota (Mr. Gutknecht) that the House suspend the
rules and pass the bill, H.R. 3217.
[[Page 29081]]
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________
GENERAL LEAVE
Mr. GUTKNECHT. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on H.R. 3217, the bill just passed.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Minnesota?
There was no objection.
____________________
PROVIDING FOR DESIGNATION OF A DEPARTMENT OF AGRICULTURE DISASTER
LIAISON
Mr. GUTKNECHT. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3157) to provide for the designation of a Department of
Agriculture disaster liaison to assist State and local employees of the
Department in coordination with other disaster agencies in response to
a federally declared disaster area as a result of a disaster, as
amended.
The Clerk read as follows:
H.R. 3157
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. LIAISON FOR DISASTER EMERGENCIES.
(a) Deployment of Disaster Liaison.--The Secretary of
Agriculture shall deploy disaster liaisons to State and local
Department of Agriculture Service Centers in a federally
declared disaster area whenever Federal Emergency Management
Agency Personnel are deployed in that area, to coordinate
Department programs with the appropriate disaster agencies
designated under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et seq.).
(b) Qualifications.--Disaster liaisons shall be selected
from among Department employees who have experience providing
emergency disaster relief in federally declared disaster
areas.
(c) Duties.--A disaster liaison shall--
(1) serve as a liaison to State and Federal Emergency
Services;
(2) be deployed to a federally declared disaster area to
coordinate Department interagency programs in assistance to
agricultural producers in the declared disaster area;
(3) facilitate the claims and applications of agricultural
producers who are victims of the disaster that are forwarded
to the Department by the appropriate State Department of
Agriculture agency director; and
(4) coordinate with the Director of the State office of the
appropriate Department agency to assist with the application
for and distribution of economic assistance.
(d) Duration of Deployment.--The deployment of a disaster
liaison under subsection (a) may not exceed 30 days.
(e) Definition.--In this section, the term ``federally
declared disaster area'' means--
(1) an area covered by a Presidential declaration of major
disaster, including a disaster caused by a wildfire, issued
under section 301 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5170); or
(2) determined to be a disaster area, including a disaster
caused by a wildfire, by the Secretary under subpart A of
part 1945 of title 7, Code of Federal Regulations.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Minnesota (Mr. Gutknecht) and the gentleman from Texas (Mr. Stenholm)
each will control 20 minutes.
The Chair recognizes the gentleman from Minnesota (Mr. Gutknecht).
Mr. GUTKNECHT. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, H.R. 3157, a bill to designate and deploy U.S.
Department of Agriculture liaison teams to areas of the country
declared disaster areas, was approved by the Committee on Agriculture
on October 29 of this year.
The bill seeks to ensure prompt Federal assistance to agricultural
producers in rural areas affected by natural disasters that have been
declared by the President or the Secretary of Agriculture. The teams
will coordinate the activities of USDA employees assisting agricultural
producers within the disaster area. The teams will facilitate the
making of claims and applications for economic assistance of affected
producers and others as they deal with the agencies designated under
the Robert T. Stafford Disaster Relief and Emergency Assistance Act.
During the business meeting to consider H.R. 3157, the committee
considered and adopted as a substitute amendment four changes to the
legislation as originally introduced by the gentleman from Missouri
(Mr. Blunt). These changes include directing the Secretary of
Agriculture to use USDA Food and Agriculture Council as a point of
contact for the liaison team, requiring the Secretary to make the
deployment only when FEMA has been sent to the disaster area, providing
that the team will conduct and conclude its business within 30 days of
the deployment, and, finally, adding wildfire as a specific disaster
under a secretarial disaster declaration.
The bill before the House this afternoon makes a minor amendment to
the committee-reported bill by returning to the Secretary of
Agriculture the full discretion to assign USDA employees to the liaison
positions, instead of acting through the Department's Food and
Agriculture Council.
As I am certain my colleagues can understand, natural disasters over
large geographical areas often are followed by chaotic circumstances on
the ground. Traditionally, USDA has had a significant role along with
FEMA in assisting farmers, ranchers, and other rural residents; and
this bill attempts to make those circumstances more orderly and more
predictable for our rural constituents during a time when those
residents and the communities in which they live need Federal help.
I hope the House will join with me in supporting this bill that seeks
to improve Federal disaster assistance on our farms and in rural
communities.
Mr. Speaker, I reserve the balance of my time.
Mr. STENHOLM. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, H.R. 3157 is a bipartisan piece of legislation that
attempts to address the very serious issue of USDA program coordination
and information dissemination during times of federally declared
national disasters.
Currently, there is no statutory requirement that USDA make a
representative available at the Emergency Operations Center following a
catastrophic disaster. As a result, if a farmer or rancher suffers a
loss due to a natural disaster, there is no USDA point of contact on
site to answer questions or provide information about departmental
relief programs. Such information is obviously critical, and this
legislation simply ensures that farmers and ranchers will have access
to an on-site USDA point of contact.
While expressing support for this bill, let me briefly address a
bigger issue for farmers and ranchers that have been adversely affected
by a disaster. The fact is there are only minimal standing disaster
programs within USDA to help farmers and ranchers deal with the variety
of losses that can occur as a result of a natural disaster. In effect,
all that USDA on-site points of contact can do is to tell farmers and
ranchers, Sorry, the United States Department of Agriculture cannot
help you. In addition, farmers and ranchers do not qualify for Small
Business Administration programs and, in point of fact, receive very
little help from FEMA.
So again, while I support H.R. 3157, the bigger question is what can
be done to provide farmers and ranchers with greater certainty in terms
of permanent disaster programs so that they may have some hope of
recovering from such disasters.
Mr. BLUNT. Mr. Speaker, I rise today to urge support for the Rural
Disaster Liaison Bill (H.R. 3157).
This past May, my district saw devastating losses in the aftermath of
a series of tornadoes.
Estimates indicate that our agriculture community in southwest
Missouri lost an estimated $27 billion in damages.
On the ground at home following those tornadoes, I noticed that the
U.S. Department of Agriculture (USDA) had no staff in the statewide
disaster field office (DFO) where officials from FEMA and the Small
Business Administration were helping individuals and business owners.
Because Disaster Act declarations make no arrangements for a USDA
representative, a single voice from USDA was noticeably absent on the
ground in Southwest Missouri during disaster response discussions in
the days and weeks after those terrible tornadoes.
[[Page 29082]]
This legislation will bring greater coordination from the USDA's
three major agencies--Natural Resources Conservation Service, the Farm
Service Agency and Rural Development--by requiring that a liaison from
USDA be a member of future Federal disaster response teams. This
individual would be dispatched to a disaster to work side-by-side with
representatives from the local Farm Service Agency (FSA) for 30 days to
help find relief for those disaster victims. Once the 30 days are up,
the liaison will return to his or her post in Washington, DC, and
continue to work on behalf of the farmers and others who need the
services that the USDA provides.
Mr. Speaker, I hope that a disaster response team is never necessary
in any of the districts my colleagues represent. However, should
disaster strike, let's make sure that our agriculture communities are
represented and that they get the help they deserve in a prompt
fashion.
I urge my colleagues to support the passage of H.R. 3157.
Mr. BACA. Mr. Speaker, I rise in support of H.R. 3157. I am proud to
support this legislation that will help farmers recover from national
disasters because I believe that far too often, farmers are not thought
of during times of emergency.
Representative Blunt has authored a good bill. I supported it in the
House Agriculture Committee and I even introduced an amendment that
would make sure that the people in my home State of California, who
suffered from the recent wildfires, could be helped by this bill.
Too many Californians have no idea how they will get by without their
orchards, olive groves, and other farming operations that burned to the
ground.
This legislation will compel the Department of Agriculture to create
disaster liaisons and dispatch them to disaster zones.
In California, we have suffered greatly from several wildfires that
have caused great damage throughout the state.
In San Bernardino County, over 40,000 people were evacuated from
their homes, and nearly 1,200 buildings burned to the ground.
Far too many people lost their homes, farms, and in some cases--their
lives--to these wild fires.
This bill and my amendment are only a small step in the right
direction. We must funnel Federal attention and resources to rebuild
after these deadly wildfires and help prevent similar events in the
future.
Mr. CARDOZA. Mr. Speaker, H.R. 3157 would require USDA to designate
employees of the Department to serve as disaster liaisons to State and
local emergency agencies in a federally declared disaster area. These
liaisons would be responsible for coordinating interagency programs and
assisting agricultural producers in the area to navigate through the
bureaucracy of Federal Government support.
I want to thank Majority Whip Blunt for taking the initiative to
introduce this legislation on behalf of farmers and growers in the
United States. I was more than happy to sign on as the lead cosponsor
because of a situation faced by a handful of growers in my
congressional district earlier this year.
During this past April, an unusual hailstorm descended upon Merced
Country, ruining acres and acres of peach orchards. That event set off
a chain of events involving numerous agencies within USDA, which in
turn led to me and my staff to negotiate on their behalf with countless
officials and administrators throughout USDA attempting to elicit some
type of assistance from the Federal Government. It was a trying
experience to say the least.
When a disaster happens now, multiple USDA agencies involved with
numerous programs actively assess damage in a disaster area, while
compiling information from hundreds of phone calls and by talking to
numerous disaster victims. This information is then assembled and sent
to representatives of the State. The farmer is left to fend for himself
or herself with no point of contact for follow up.
Those situations are what Mr. Blunt and I are trying to avoid with
this legislation.
When enacted, H.R. 3157 will require USDA to recognize the importance
of quick response time to agricultural disasters by deploying an
experienced disaster specialist to an affected area. This official will
facilitate such things as crop insurance claims processing and other
applications for economic assistance as well as provide one legitimate
source of information and comfort from the Federal Government.
My growers affected by the hailstorm were continually given
conflicting information from different USDA employees. It is imperative
that growers, especially the more skeptical growers in my home State of
California, be able to receive clear and concise information on how to
proceed after a Federal disaster as been declared in order to most
efficiently proceed to the next crop year.
H.R. 3157 is the right thing to do for America's agricultural
industry and I am proud to be a sponsor of this bill.
Again, I would like to thank Chairman Goodlatte, Ranking Member
Stenholm, and Majority Whip Blunt for recognizing the importance of the
legislation. I urge an aye vote on this bill.
Ms. BORDALLO. Mr. Speaker, I rise today in support of H.R. 3157,
which will direct the Secretary of Agriculture to designate employees
of the Department of Agriculture to serve as liaisons between the
federal agencies and state and local governments in the event of a
federally declared disaster area.
As Delegate and long-term resident of Guam, I can attest to the
debilitating state of confusion in the after math of a disaster. Just
last year, individuals and businesses on Guam sustained millions of
dollars in damage as result of the destruction wrought by two
supertyphoons, Cha'at'an in May and Pongsona in December, 2002. While
federal agencies worked quickly to implement disaster recovery plans
for Guam, the central communications mechanism between GovGuam and the
various agencies through FEMA and its designated liaisons was crucial
to the typhoon recovery.
H.R. 3157 will create a consistent mechanism of communication between
the federal government and state and local entities for agricultural
issues in the event of a disaster. I strongly support passage of H.R.
3157 and encourage my colleagues to vote in favor of this important
disaster legislation.
Mr. STENHOLM. Mr. Speaker, I yield back the balance of my time.
Mr. GUTKNECHT. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Minnesota (Mr. Gutknecht) that the House suspend the
rules and pass the bill, H.R. 3157, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________
GENERAL LEAVE
Mr. GUTKNECHT. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on the bill, H.R. 3157, as amended.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Minnesota?
There was no objection.
____________________
RESOLVING BOUNDARY CONFLICTS IN VICINITY OF MARK TWAIN NATIONAL FOREST
IN BARRY AND STONE COUNTIES, MISSOURI
Mr. GUTKNECHT. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 2304) to resolve boundary conflicts in the vicinity of the
Mark Twain National Forest in Barry and Stone Counties, Missouri, that
resulted from private landowner reliance on a subsequent Federal
survey, and for other purposes, as amended.
The Clerk read as follows:
H.R. 2304
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) Certain landowners in Barry and Stone Counties,
Missouri, innocently and in good faith relied on subsequent
land surveys, which they believed to be correct, and
occupied, improved, or claimed portions of adjoining Federal
lands based on such survey information.
(2) The appropriate Federal agencies should undertake
actions to correctly reestablish the corners of the Public
Land Survey System in Barry and Stone Counties, Missouri, and
rectify boundary conflicts and landownership claims against
Federal lands resulting from subsequent land surveys, and do
so in a manner which imposes the least cost and inconvenience
to affected private landowners.
(b) Purposes.--The purposes of this Act are--
(1) to resolve boundary conflicts in Barry and Stone
Counties, Missouri, arising from subsequent land surveys; and
(2) to minimize costs and inconvenience to the affected
private property owners in Barry and Stone Counties,
Missouri.
[[Page 29083]]
SEC. 2. RESOLUTION OF BOUNDARY CONFLICTS, VICINITY OF MARK
TWAIN NATIONAL FOREST, BARRY AND STONE
COUNTIES, MISSOURI.
(a) Definitions.--In this section:
(1) The term ``appropriate Secretary'' means the Secretary
of the Army or the Secretary of Agriculture.
(2) The term ``boundary conflict'' means the situation in
which the private claim of ownership to certain lands, based
on subsequent land surveys, overlaps or conflicts with
Federal ownership of the same lands.
(3) The term ``Federal land surveys'' means any land survey
made by any agency or department of the Federal Government
using Federal employees, or by Federal contract with State-
licensed private land surveyors or corporations and
businesses licensed to provide professional land surveying
services in the State of Missouri.
(4) The term ``original land surveys'' means the land
surveys made by the United States General Land Office as part
of the Public Land Survey System in the State of Missouri,
and upon which Government land patents were issued conveying
the land.
(5) The term ``Public Land Survey System'' means the
rectangular system of original Government lands surveys made
by the United States General Land Office and its successor,
the Bureau of Land Management, under Federal laws providing
for the survey of the public lands upon which the original
land patents were issued.
(6) The term ``qualifying claimant'' means a private owner
of real property in Barry or Stone County, Missouri, who has
a boundary conflict as a result of good faith and innocent
reliance on subsequent land surveys, and as a result of such
reliance, has occupied, improved, or made ownership claims to
Federal lands.
(7) The term ``subsequent land surveys'' mean any land
surveys made after the original land surveys.
(b) Notice of Boundary Conflict.--
(1) Submission and contents.--A qualifying claimant shall
notify the appropriate Secretary in writing of a claim that a
boundary conflict exists with Federal land administered by
the appropriate Secretary. The notice shall be accompanied by
the following information, which, except as provided in
subsection (d)(2)(B), shall be provided without cost to the
United States:
(A) A land survey plat and legal description of the
affected Federal lands, which are based upon a land survey
completed and certified by a Missouri State-licensed
professional land surveyor, and done in conformity with the
Public Land Survey System and in compliance with the
applicable State and Federal land surveying laws.
(B) Information relating to the claim of ownership of the
Federal lands, including supporting documentation showing the
landowner relied on a subsequent land survey due to actions
by the Federal Government in making or approving surveys for
the Table Rock Reservoir.
(2) Deadline for submission.--To obtain relief under this
section, a qualifying claimant shall submit the notice
required by paragraph (1) within 15 years after the date of
the enactment of this Act.
(3) Responsibilities of claimants.--The qualifying claimant
shall have the responsibility for establishing that the
qualifying claimant qualifies for the remedies provided in
subsection (c).
(c) Resolution Authorities.--The appropriate Secretary may
take any of the following actions, or combination of actions,
in order to resolve boundary conflicts with qualifying
claimants involving lands under the administrative
jurisdiction of the appropriate Secretary:
(1) Convey and quitclaim all right, title, and interest of
the United States in land subject to a boundary conflict.
(2) Confirm Federal title to, and retain in Federal
management, any land subject to a boundary conflict, if the
appropriate Secretary determines there are Federal interests,
including improvements, authorized uses, easements, hazardous
materials, or historical and cultural resources, on the land
that necessitates retention of the land.
(3) Compensate the qualifying claimant for the value of the
overlapping property for which title is confirmed and
retained in Federal management pursuant to paragraph (2).
(d) Consideration and Cost.--
(1) Conveyance without consideration.--The conveyance of
land under subsection (c)(1) shall be made without
consideration if the appropriate Secretary determines that
the boundary conflict was the result of the innocent
detrimental reliance by the qualifying claimant on a
subsequent land survey.
(2) Costs.--The appropriate Secretary shall--
(A) pay administrative, personnel, and any other costs
associated with the implementation of this section, including
the costs of survey, marking, and monumenting property lines
and corners; and
(B) reimburse the qualifying claimant for reasonable out-
of-pocket survey costs necessary to establish a claim under
this section.
(3) Valuation.--Compensation paid to a qualifying claimant
pursuant to subsection (c)(3) for land retained in Federal
ownership pursuant to subsection (c)(2) shall be valued on
the basis of the contributory value of the tract of land to
the larger adjoining private parcel and not on the basis of
the land being a separate tract. The appropriate Secretary
shall not consider the value of any Federal improvements to
the land.
(e) Preexisting Conditions; Reservations; Existing Rights
and Uses.--
(1) Preexisting conditions.--The appropriate Secretary
shall not compensate a qualifying claimant or any other
person for any preexisting condition or reduction in value of
any land subject to a boundary conflict because of any
existing or outstanding permits, use authorizations,
reservations, timber removal, or other land use or condition.
(2) Existing reservations and rights and uses.--Any
conveyance pursuant to subsection (c)(1) shall be subject
to--
(A) reservations for existing public uses for roads,
utilities, and facilities; and
(B) permits, rights-of-way, contracts and any other
authorization to use the property.
(3) Treatment of land subject to special use authorization
or permit.--For any land subject to a special use
authorization or permit for access or utilities, the
appropriate Secretary may convert, at the request of the
holder, such authorization to a permanent easement prior to
any conveyance pursuant to subsection (c)(1).
(4) Future reservations.--The appropriate Secretary may
reserve rights for future public uses in a conveyance made
pursuant to subsection (c)(1) if the qualifying claimant is
compensated for the reservation in cash or in land of equal
value.
(f) Relation to Other Conveyance Authority.--Nothing in
this section affects the Quiet Title Act (28 U.S.C. 2409a) or
other applicable law, or affects the exchange and disposal
authorities of the Secretary of Agriculture, including the
Small Tracts Act (16 U.S.C. 521c), or the exchange and
disposal authorities of the Secretary of the Army.
(g) Additional Terms and Conditions.--The appropriate
Secretary may require such additional terms and conditions in
connection with a conveyance under subsection (c)(1) as the
Secretary considers appropriate to protect the interests of
the United States.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Minnesota (Mr. Gutknecht) and the gentleman from Texas (Mr. Stenholm)
each will control 20 minutes.
The Chair recognizes the gentleman from Minnesota (Mr. Gutknecht).
{time} 1430
Mr. GUTKNECHT. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, this bill provides a mechanism for the Forest Service
and the Army Corps of Engineers to resolve boundary conflicts between
the Mark Twain National Forest and adjacent private landowners. The
dispute over boundaries stems from recent surveys conducted by
contractors to the U.S. Army Corps of Engineers, which have
subsequently been found severely flawed by the State Surveyor for
Missouri.
The measure sets a process for dealing with disputed boundaries. The
landowner would notify the Secretary of Agriculture of a disputed
boundary, prompting a new land survey. If the Secretary determines that
the boundary conflict is the result of a reliance on a previous land
survey, the land in dispute can be returned to the property owner.
It is important to note that the bill does not require the conveyance
of any particular lands. Where a new survey shows that the lands in
question were surveyed improperly, the Forest Service can either
execute a quit claim deed, assert Federal ownership if the Federal
Government has improved the land, or compensate the landowner for the
land.
We made one minor change to the bill which requires that any
liability for environmental hazards on the property, if any, be settled
through an agreement between the landowner and the Federal Government.
This change was requested by the Committee on Transportation and
Infrastructure.
This is a case where the Federal Government has not exercised
adequate due diligence in maintaining their land surveys to the
detriment of their neighbors. Rather than redrawing map boundaries from
Washington, we are creating a process where these folks can address
their claims closer to home. The Committee on Agriculture regards this
as an equitable solution to a local problem created by the Federal
Government. I urge my colleagues to join me in support of this bill.
Mr. Speaker, I reserve the balance of my time.
[[Page 29084]]
Mr. STENHOLM. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 2304, legislation to resolve
boundary conflicts in the vicinity of the Mark Twain National Forest in
Barry and Stone Counties, Missouri, resulting from private landowner
reliance on a subsequent Federal survey.
These boundary conflicts resulted from discrepancies between recent
land surveys conducted by the U.S. Forest Service and its
implementation of the Restoration of Original Corners Program, and
decades-old surveys conducted by the Army Corps of Engineers. As a
result of the more recent land surveys, private property lands
adjoining Federal lands were moved, and private property landowners
discovered that, due to their reliance on the older land surveys, they
had inadvertently trespassed on Federal land.
Mr. Speaker, H.R. 2304 would remedy these boundary discrepancies by
authorizing and directing the Secretary of Agriculture to convey title
to U.S. Forest Service land on which private landowners can demonstrate
that they inadvertently trespassed because of their reliance on a
previous inaccurate Federal survey, or relied on a survey based on a
previous inaccurate survey.
I urge my colleagues to support this legislation in order to resolve
these boundary discrepancies.
Mr. Speaker, I have no further requests for time, and I yield back
the balance of my time.
Mr. GUTKNECHT. Mr. Speaker, I yield myself such time as I may
consume.
This is a commonsense solution at the local level to problems that
the Federal Government has created. The Committee on Agriculture
strongly supports this bill, and I hope that Members will join us in
supporting this bill.
Mr. BLUNT. Mr. Speaker, I rise today to urge support for the speedy
resolution of a boundary dispute affecting private property owners in
my Congressional District.
Apparently, there are some local issues that apparently only an act
of Congress can solve.
This issue surfaced when private property owners' historic boundary
lines neighboring the Mark Twain National Forest and Table Rock Lake in
Missouri's Barry and Stone Counties were blurred when the U.S. Forest
Service restored the mid-1800s Corners program.
Over the years, the Forest Service has been effectively shaving off
substantial sections of private property that adjoins federal lands.
Recent land surveys have found major differences in surveys conducted
by the Forest Service and the Army Corps of Engineers. My legislation
would resolve these discrepancies, so private property owners don't
lose property adjoining Federal lands.
A fight with the Federal Government over a boundary line can be an
uphill battle. This bill will maintain the original property lines and
hand the title of the disputed land to the private landowner.
The Federal Government already owns a third of the nation's land,
and inaccuracies in federally conducted surveys should never force
landowners to forfeit their property.
Mr. Speaker, I urge the House's approval of this common-sense bill.
Mr. GUTKNECHT. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Petri). The question is on the motion
offered by the gentleman from Minnesota (Mr. Gutknecht) that the House
suspend the rules and pass the bill, H.R. 2304, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________
GENERAL LEAVE
Mr. GUTKNECHT. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on H.R. 2304, the bill just considered.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Minnesota?
There was no objection.
____________________
RECESS
The SPEAKER pro tempore. Pursuant to clause 12(a) of rule I, the
Chair declares the House in recess for approximately 10 minutes.
Accordingly (at 2 o'clock and 34 minutes p.m.), the House stood in
recess for approximately 10 minutes.
____________________
{time} 1448
AFTER RECESS
The recess having expired, the House was called to order by the
Speaker pro tempore (Mr. Petri) at 2 o'clock and 48 minutes p.m.
____________________
GEORGE HENRY WHITE POST OFFICE BUILDING
Mr. DUNCAN. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3353) to designate the facility of the United States Postal
Service located at 525 Main Street in Tarboro, North Carolina, as the
``George Henry White Post Office Building''.
The Clerk read as follows:
H.R. 3353
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. GEORGE HENRY WHITE POST OFFICE BUILDING.
(a) Designation.--The facility of the United States Postal
Service located at 525 Main Street in Tarboro, North
Carolina, shall be known and designated as the ``George Henry
White Post Office Building''.
(b) References.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
facility referred to in subsection (a) shall be deemed to be
a reference to the George Henry White Post Office Building.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Tennessee (Mr. Duncan) and the gentleman from North Carolina (Mr.
Ballance) each will control 20 minutes.
The Chair recognizes the gentleman from Tennessee (Mr. Duncan).
General Leave
Mr. DUNCAN. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Tennessee?
There was no objection.
Mr. DUNCAN. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, on behalf of the Committee on Government Reform, I am
pleased that the House is considering H.R. 3353. This bill names a post
office after a great American statesman, George Henry White. From 1897
to 1901, Republican George Henry White served two terms as the U.S.
Representative for North Carolina's Second Congressional District. At
that time, he was the only African American Member of Congress. As
such, not only was Congressman White responsible for his North Carolina
constituents, but as the highest-ranking black government official in
the Nation he also shouldered the burden of representing the 10 million
African Americans at the turn of the century.
Congressman White took principled stands against the racial
inequality that was far too prevalent for this time period in American
history. His eloquence and temperance toward injustice made him a well-
respected Member of Congress, and he is truly worthy of commendation by
this body from which he departed more than 100 years ago.
Mr. Speaker, this legislation commemorates George Henry White's
courageous legacy as the last black Member of this House following
Reconstruction. I congratulate the gentleman from North Carolina (Mr.
Ballance) for having his bill considered by the whole House.
Mr. Speaker, I urge passage of H.R. 3353.
Mr. Speaker, I reserve the balance of my time.
Mr. BALLANCE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, we gather this afternoon to honor a great man and leader
who blazed trails for African Americans not only in North Carolina but
throughout the Nation, Congressman George Henry White from my home
State of North Carolina.
[[Page 29085]]
I want to express my appreciation for the strong bipartisan support
from the North Carolina delegation and the sponsorship of this bill.
We are here today, Mr. Speaker, to show our appreciation for
Congressman White by naming the post office after him in Tarboro, North
Carolina, the town which he represented; and the County of Edgecombe,
which he represented with distinction as a part of the second
congressional district, I now have the great privilege of representing
that same community, humbly following in his footsteps.
Mr. George Henry White was born in Rosendale, Bladen County, North
Carolina, during slavery. He grew up the son of a sharecropper in
nearby Columbus County. He was educated at the Whitten School in
Lumberton. He first embarked on his trail of excellence when he left
his job as a farm laborer and ventured here to the Nation's Capital to
attend Howard University. Many people mistake him as being a graduate
of Howard Law School, but actually he was a graduate of high school and
Howard undergraduate school.
Upon graduation from Howard University in 1877, Mr. White returned to
North Carolina settling in the coastal town of New Bern, to begin the
fight to better his North Carolina for all families and helping empower
the African American community.
He became a teacher and then a principal and is credited with
establishing four new schools. Mr. White knew then what we all know
now: information is power, and the key to steering one's own course is
a quality education.
While living in New Bern, where he also worked as an attorney, having
read law to become a lawyer, Mr. White embarked upon a career in public
service spanning more than 2 decades when, in 1880, he was elected to
the North Carolina House of Representatives.
In 1884 he was elected to the North Carolina State Senate. And in
1886 he was elected as a solicitor for the second judicial district of
North Carolina where he served two terms. During this time, George
Henry White was the only African American district attorney in the
United States. Continuing a political career steeped in innovation and
leadership, blazing trails unheard of in his day, in 1894 Mr. White
moved to Tarboro. It might be interesting to know that the one reason
he moved was because there was redistricting going on and his hometown
of New Bern was carved out of the second district. So he just packed up
and moved down to Tarboro, North Carolina, his wife's hometown.
Three years later, he would become Congressman White, and only the
third African American elected to the U.S. House of Representatives
from North Carolina, John Adams Hyman being the first, Henry P.
Cheatham the second.
Congressman White was the only African American in the United States
Congress during his two terms and was the highest-ranking elected
African American in the United States. He essentially represented not
only citizens of the second congressional district but all 10 million
African Americans across the Nation. He was the last former slave and
the last African American to serve in the Congress during the post-
Reconstruction era.
He opened doors while in Congress to pave the way for the civil
rights movement more than half a century later. He campaigned against
racial discrimination and urged enforcement of the second section of
the 14th amendment.
In January 1901, his last year in office, Congressman White proposed
a bill that would make lynching of African Americans a Federal crime.
Unfortunately, this bill did not pass; but it did have some impact in
the Deep South in particular. Despite Congressman White's passionate
plea, as I indicated, the term ended without his bill passing.
George Henry White's farewell speech on the floor of Congress, often
referred to as the ``Phoenix Speech,'' or his farewell speech, was made
January 29, 1901: ``This, Mr. Chairman, is perhaps the Negroes'
temporary farewell to the American Congress; but let me say, Phoenix-
like he will rise up some day and come again. These parting words on
behalf of an outraged, heartbroken, bruised and bleeding, but God-
fearing people, faithful, industrious, loyal, rising people full of
potential force.''
Mr. Speaker, while Congressman White is deserving of far greater
accolades, and I am sure they will come in time, it is my great
pleasure to offer this legislation on his behalf. I urge the passage of
this bill.
Mr. Speaker, I yield back the balance of my time.
Mr. DUNCAN. Mr. Speaker, I commend the gentleman from North Carolina
(Mr. Ballance) for introducing this very appropriate bill, and I urge
all of our colleagues to support the passage of H.R. 3353.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Tennessee (Mr. Duncan) that the House suspend the rules
and pass the bill, H.R. 3353.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________
JAMES E. DAVIS POST OFFICE BUILDING
Mr. DUNCAN. Mr. Speaker, I move to suspend the rules and pass the
Senate bill (S. 1590) to redesignate the facility of the United States
Postal Service, located at 315 Empire Boulevard in Crown Heights,
Brooklyn, New York, as the ``James E. Davis Post Office Building''.
The Clerk read as follows:
S. 1590
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. JAMES E. DAVIS POST OFFICE BUILDING.
(a) Designation.--The facility of the United States Postal
Service located at 315 Empire Boulevard in Crown Heights,
Brooklyn, New York, shall be known as designated as the
``James E. Davis Post Office Building''.
(b) References.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
facility referred to in subsection (a) shall be deemed to be
a reference to the James E. Davis Post Office Building.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Tennessee (Mr. Duncan) and the gentleman from North Carolina (Mr.
Ballance) each will control 20 minutes.
The Chair recognizes the gentleman from Tennessee (Mr. Duncan).
General Leave
Mr. DUNCAN. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Tennessee?
There was no objection.
Mr. DUNCAN. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, S. 1590, a bill sponsored by Senator Schumer of New
York, names a postal facility in Brooklyn, New York, as the James E.
Davis Post Office Building. My distinguished colleague on the Committee
on Government Reform, the gentleman from New York (Mr. Towns), authored
the House version of this postal naming bill, H.R. 3012. I commend both
the gentleman from New York (Mr. Towns) and Senator Schumer for their
work on this meaningful effort.
Mr. Speaker, James E. Davis was a devoted public official who lived
and worked in Brooklyn all of his life. The son of a corrections
officer himself, Davis became an officer in the New York Police
Department in 1983. After nearly 2 decades on the police force, he was
elected to the New York City Council in November of 2001. In that
capacity Davis was able to utilize his dynamic public speaking ability.
He truly had a gift for connecting with audiences and delivering
messages that advocated non-violence.
Mr. Speaker, defeating crime and eliminating violence in inner-city
New York were lifelong missions for James E. Davis both as a law
enforcement and elected official. This reality made July
[[Page 29086]]
23, 2003, an even more ironically tragic day for New Yorkers as well as
all Americans. On that afternoon, James Davis had invited a political
rival to City Hall to attend a council meeting. Just after 2 o'clock,
Councilman Davis' guest brandished a handgun and inexplicably shot
Davis twice in the chest. Mr. Davis sadly passed away at a nearby
hospital later that afternoon.
Mr. Speaker, many of us saw the story of James E. Davis' tragic
murder in New York City Hall on national newscasts last summer. I want
to join with the gentleman from New York (Mr. Towns) and Senator
Schumer in extending the sympathy of all Members of Congress to the
family, friends, and supporters of James E. Davis. I am pleased that
passage of this legislation will immortalize James E. Davis'
contributions to his community and to the Nation.
Mr. Speaker, I urge passage of S. 1590.
Mr. Speaker, I reserve the balance of my time.
{time} 1500
Mr. BALLANCE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I am pleased to stand at this time as the designee for
the gentleman from Illinois (Mr. Davis) on behalf of this resolution. I
am pleased to join my colleagues in consideration of S. 1590,
legislation naming a postal facility after the late James E. Davis.
S. 1509, which was introduced by Senator Schumer on September 8,
2003, was unanimously adopted by the Committee on Government Reform on
November 6, 2003. An identical bill, H.R. 3012, sponsored by the
gentleman from New York (Mr. Towns) has the support and cosponsorship
of the entire New York delegation.
Mr. James Davis was born in 1962 and graduated from Tilden High
School in Brooklyn, New York in 1980. He obtained a degree from Pace
University in 1989 and then joined the New York City Correctional
Department. He became a police officer in 1991 and was assigned to the
73rd Precinct in Brooklyn. A youth officer, Mr. Davis served in the New
York Police Department until he decided to enter the political arena in
1988 by running for assemblyman for the 43rd District. Although
unsuccessful, he ran again and won office in November 2001, where he
served as councilman for the 35th District.
Tragically, as we have just heard, Councilman Davis's life was cut
short when he was gunned down in a violent shooting in the City Hall at
the young age of 41.
Mr. Speaker, James Davis was a man of the community. He has dedicated
his life to improving conditions in Brooklyn, New York, helping young
people realize their dreams and stopping urban violence.
I commend my colleagues, the gentleman from New York (Mr. Towns) and
Senator Schumer for seeking to honor the legacy of Councilmember James
Davis and urge the adoption of this bill.
Mr. Speaker, I yield back the balance of my time.
Mr. DUNCAN. Mr. Speaker, I have no additional speakers. I urge
passage of S. 1590, and I urge all of my colleagues to join in support
of this very worthwhile and appropriate measure.
Mr. TOWNS. Mr. Speaker, as the lead sponsor of the House version of
S. 1590, I am pleased that we are considering this legislation today.
S. 1590 would rename the post office located at 315 Empire Boulevard in
Crown Heights, Brooklyn, New York, as the ``James E. Davis Post Office
Building.'' I would also like to note that this bill has been
cosponsored by the entire New York delegation, and I would like to
thank my colleagues from New York for doing so.
On that tragic day when Councilman James Davis of Brooklyn was
murdered in a violent shooting in City Hall, New York City, we lost a
true public servant. He was an intelligent, passionate, and energetic
young man who had an extremely bright future. He worked very hard and
took his duties as a public servant very, very seriously. He was only
41 years old and had served almost one term in the New York City
Council. But he had already made his mark.
I met James through the Youth March Against Violence that he
organized. His commitment to this issue was genuine.
However, when I think of him, I remember one of the last
conversations we had, which I think really embodies his approach to
public service. We were meeting with housing authority officials, and
he told them we weren't there to point fingers at every one. But if we
didn't work together to get thing done, we would all take the blame.
Sound advice that I think all public officials should take to heart.
With James, it was always about the community. He was dedicated to
its betterment, having served as a police officer and district leader
before being elected to the city council. One could always see the love
he had for his neighbors and constituents. Naming a post office after
him would be a lasting tribute to all of his hard work for the
community that he loved so much. While we still have a heavy heart for
losing such a good friend, the James E. Davis post office can help us
celebrate his life. I think I can speak for all of Brooklyn when I say
that the James E. Davis post office is something that we will all be
proud of.
Mr. DUNCAN. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Petri). The question is on the motion
offered by the gentleman from Tennessee (Mr. Duncan) that the House
suspend the rules and pass the Senate bill, S. 1590.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the Senate bill was passed.
A motion to reconsider was laid on the table.
____________________
HUGH GREGG POST OFFICE BUILDING
Mr. DUNCAN. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3185) to designate the facility of the United States Postal
Service located at 38 Spring Street in Nashua, New Hampshire, as the
``Hugh Gregg Post Office Building''.
The Clerk read as follows:
H.R. 3185
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. HUGH GREGG POST OFFICE BUILDING.
(a) Designation.--The facility of the United States Postal
Service located at 38 Spring Street in Nashua, New Hampshire,
shall be known and designated as the ``Hugh Gregg Post Office
Building''.
(b) References.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
facility referred to in subsection (a) shall be deemed to be
a reference to the Hugh Gregg Post Office Building.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Tennessee (Mr. Duncan) and the gentleman from North Carolina (Mr.
Ballance) each will control 20 minutes.
The Chair recognizes the gentleman from Tennessee (Mr. Duncan).
General Leave
Mr. DUNCAN. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
on H.R. 3185.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Tennessee?
There was no objection.
Mr. DUNCAN. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, on behalf of the Committee on Government Reform, I am
pleased to call up H.R. 3185 for consideration. This legislation
introduced by my colleague, the gentleman from New Hampshire (Mr. Bass)
designates the postal facility at 38 Spring Street in Nashua, New
Hampshire, as the Hugh Gregg Post Office Building.
Hugh Gregg, a giant in New Hampshire politics for several decades,
was elected Governor of the Granite State in 1953 at the age of 34. As
a result, he was forevermore nicknamed the ``Boy Governor.'' One of his
most notable achievements was his work in organizing the first-in-the-
Nation Presidential primary in New Hampshire. What began as little more
than a beauty contest for candidates in 1952, his tireless work is a
big reason the New Hampshire primary has evolved into such a critical
date for modern Presidential candidates.
It is also important to note that Governor Gregg's son, Judd, went on
to be elected Governor of New Hampshire in 1989, and he now serves as
the State's senior United States Senator.
[[Page 29087]]
Mr. Speaker, America mourned on September 24th of this year, when
Hugh Gregg passed away at age 85. He is survived by his wife, Catherine
Warner Gregg, two sons, five grandchildren and one great-grandchild.
Mr. Speaker, I commend the gentleman from New Hampshire (Mr. Bass)
for his work on H.R. 3185, and I strongly support its passage.
Mr. Speaker, I reserve the balance of my time.
Mr. BALLANCE. Mr. Speaker, I yield myself such time as I may consume.
I am honored and pleased to join my colleagues in consideration of
H.R. 3185, legislation naming a postal facility after Hugh Gregg. H.R.
3185 which was introduced by the gentleman from New Hampshire (Mr.
Bass) on September 25, 2003, was unanimously approved by the Committee
on Government Reform on October 8, 2003.
H.R. 3185 has the support and cosponsorship of the entire New
Hampshire Congressional delegation. Hugh Gregg, a former Republican
Governor of New Hampshire from 1953 until 1955, was born in New
Hampshire and became its youngest Governor at the age of 34. A graduate
of Yale and Harvard Law School, he served as a Special Agent of the
Counterintelligence Corps during World War II and the Korean Crisis.
A well-known businessman and community leader, Mr. Gregg passed away
on September 24, 2003 at the age of 85. Hugh Gregg was remembered as a
statesman and gentleman. His love for his State and country and
dedication to public service was well known.
Mr. Speaker, I commend my colleagues for seeking to honor the late
Hugh Gregg and urge swift adoption on H.R. 3185.
Mr. Speaker, I yield back the balance of my time.
Mr. DUNCAN. Mr. Speaker, I yield as much time as he may consume to
the gentleman from New Hampshire (Mr. Bass), the author of the bill.
Mr. BASS. Mr. Speaker, I thank my friend, the gentleman from
Tennessee (Mr. Duncan) for recognizing me and for making it possible
along with my friend, the gentleman from North Carolina (Mr. Ballance)
to have the opportunity to bring this bill to the floor.
As the gentleman said at the end of his speech just previously,
Governor Hugh Gregg died on September 24th of this year after a brief
illness, and brief it was, because just prior to that illness, the city
of Nashua, which is the largest city in my district, celebrated its
150th anniversary. And guess who walked at the front of the line in a
top hat and tuxedo with a cane but Hugh Gregg, the grand marshall of
the parade. Governor Hugh Gregg celebrating the city that he loved and
lived in his entire life.
Indeed, he served our country during World War II, not once, but
twice. He served in the Korean War. He served on the Nashua City
Council. He became its mayor, and he was elected Governor of the State
of New Hampshire in his early thirties, the year I was born.
Hugh Gregg also took on big projects. He was not one to think about
things pragmatically or think about things in any small way.
During my political career, he achieved two major accomplishments.
First, he sought out to establish a museum of political history in New
Hampshire. It is no secret that New Hampshire is the first part of the
Nation's primary and always will be. Hugh Gregg wanted to make sure
that the political history of the State, going back as far as anybody
cared to, was properly recorded. And as time went on, candidates
running for office would have a place to repose their memorabilia and
great events and so forth. He published no less than three books on the
subject of New Hampshire political history, the latest with our
Secretary of State, Bill Gardner. Hugh Gregg is responsible for the
establishment of this institution, which will live on in perpetuity.
The second big project he took on was an effort to try to prove that
New Hampshire was the birthplace of the Republican party and not Ripon,
Wisconsin, as it has been previously thought. No offense to our
distinguished presiding officer here today, but he turned out to be
right about that. He made extensive research and determined that the
records of the party originated in Exeter, New Hampshire, and he
established a society called the Amos Tuck Society.
Indeed, Mr. Speaker, Hugh Gregg was not only Governor, mayor of
Nashua, father of U.S. Senator Judd Gregg and Cy Gregg, long-time
husband of Catherine Gregg, a great political crusader for many
different causes, not all of which were necessarily associated with
Republicans, but were really focussed on the good of the State of New
Hampshire and the good of the lives of the people around him. The
efforts he made on behalf of others, not only in the area of politics,
but in charity through the Crotched Mountain Rehabilitation Center
which is one of the Nation's leading centers for the treatment of those
brain-injured and developmentally-disabled individuals established by
his father but nurtured and expanded significantly by him.
He served on a number of different boards, serving on the board of
the Fleet Bank, at that time Indian Head Bank. He was involved in
businesses all over the place.
Hugh Gregg was a man of courage. He was a man that some might say was
tactless on occasion. I know, as Governor of the State of New
Hampshire, on a couple of occasions he was known to become frustrated
with people he came in contact with, and he had a habit of taking
scissors and snipping their ties off just to get their attention and,
indeed, it did.
Hugh Gregg campaigned with me during one of my many campaigns in the
Nashua Recycling Center. We were trying to meet people there, of
course. He was in his early eighties or late seventies. He said, You go
over there and work over there in recycling, where they bring in
bottles and cans. That is a nice clean thing for you to do. I will go
over and carry the garbage because nobody is going to tell a 75-year-
old man that they do not like him for carrying their garbage over to
the garbage area.
Hugh Gregg was the kind of man that was full of energy, full of
enthusiasm and full of compassion and a commitment to the folks around
him in the city of Nashua and the State of New Hampshire. He will be
sorely missed by all of us. I think this is a wonderful opportunity to
name the Nashua Post Office after this great American citizen.
Mr. DUNCAN. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, since the gentleman from New Hampshire (Mr. Bass) has
brought up the founding of the Republican party and Mr. Gregg's
interest in that, I would mention that I have the privilege of
representing the only district in the United States that has had
continuous Republican representation in the United States House of
Representatives since the founding of the Republican party.
This legislation seems to be very fitting and proper to name this
post office facility after Hugh Gregg who was a very great American,
who saw the American dream come true in his life in several different
ways. I urge passage of this bill.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Tennessee (Mr. Duncan) that the House suspend the rules
and pass the bill, H.R. 3185.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________
COMMENDING INSPECTORS GENERAL FOR EFFORTS DURING PAST 25 YEARS
Mr. DUNCAN. Mr. Speaker, I move to suspend the rules and pass the
Senate joint resolution (S.J. Res. 18) commending the Inspectors
General for their efforts to prevent and detect waste, fraud, abuse,
and mismanagement, and to promote economy, efficiency, and
effectiveness in the Federal Government during the past 25 years.
The Clerk read as follows:
[[Page 29088]]
S.J. Res. 18
Whereas the Inspector General Act of 1978 (5 U.S.C. App.)
was signed into law on October 12, 1978, with overwhelming
bipartisan support;
Whereas Inspectors General now exist in the 29 largest
executive branch agencies and in 28 other designated Federal
entities;
Whereas Inspectors General work to serve the American
taxpayer by promoting economy, efficiency, effectiveness, and
integrity in the administration of the programs and
operations of the Federal Government;
Whereas Inspectors General conduct audits and
investigations to both prevent and detect waste, fraud,
abuse, and mismanagement in the programs and operations of
the Federal Government;
Whereas Inspectors General make Congress and agency heads
aware, through semiannual reports and other communications,
of problems and deficiencies in the administration of
programs and operations of the Federal Government;
Whereas Congress and agency heads utilize the
recommendations of Inspectors General in the development and
implementation of policies that promote economy and
efficiency in the administration of, or prevent and detect
waste, fraud, abuse, and mismanagement in, the programs and
operations of the Federal Government;
Whereas Federal employees and other dedicated citizens
report information to Inspectors General regarding the
possible existence of an activity constituting a violation of
law, rules, or regulations, or mismanagement, gross waste of
funds, abuse of authority, or a substantial and specific
danger to public health and safety;
Whereas Inspector General audits and investigations result
in annual recommendations for more effective spending of
billions of taxpayer dollars, thousands of successful
criminal prosecutions, hundreds of millions of dollars
returned to the United States Treasury through investigative
recoveries, and the suspension and debarment of thousands of
individuals or entities from doing business with the
Government; and
Whereas for 25 years the Inspectors General have worked
with Congress to facilitate effective oversight to improve
the programs and operations of the Federal Government: Now,
therefore, be it
Resolved by the Senate and House of Representatives of the
United States of America in Congress assembled, That
Congress--
(1) recognizes the many accomplishments of the Inspectors
General in preventing and detecting waste, fraud, abuse, and
mismanagement in the Federal Government;
(2) commends the Inspectors General and their employees for
the dedication and professionalism displayed in the
performance of their duties; and
(3) reaffirms the role of Inspectors General in promoting
economy, efficiency, and effectiveness in the administration
of the programs and operations of the Federal Government.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Tennessee (Mr. Duncan) and the gentleman from North Carolina (Mr.
Ballance) each will control 20 minutes.
The Chair recognizes the gentleman from Tennessee (Mr. Duncan).
General Leave
Mr. DUNCAN. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
on S.J. Res. 18.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Tennessee?
There was no objection.
Mr. DUNCAN. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, Senate Joint Resolution 18 commends Inspectors General
across the Federal Government for their contributions to taxpayers and
overall government efficiency over the last 25 years.
This year marks the 25th anniversary of the Inspector General Act of
1978 that created the position of Inspector General in Federal agencies
and departments. I had the honor of introducing the original
legislation to name an Inspector General or create an Inspector General
position for the Tennessee Valley Authority.
Today, Inspectors General exist in 57 executive branch agencies.
Their work has eliminated waste in management at all levels of the
Federal Government and saved countless taxpayer dollars.
Mr. Speaker, this body has already passed the House version of this
resolution, so I will similarly urge all Members to support the
adoption of Senate Joint Resolution 18.
Mr. Speaker, I reserve the balance of my time.
Mr. BALLANCE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I support Senate Joint Resolution 18 which recognizes
Inspectors General for their efforts to prevent waste, fraud and abuse
over the past 25 years. In fact, as has been just pointed out, the
House passed H.J. Res. 70 by voice just a few days ago.
Twenty-five years ago the Inspector General Act of 1978 established,
for the first time, IG's in 12 executive branch agencies. They proved
so successful that today there are IG's in 59 Federal agencies. The
Inspectors General report both to the agency head and to Congress and
are one of Congress's principal watchdogs in the executive branch.
{time} 1515
IGs have a tough job. As independent investigators within Federal
agencies, they are often the last person a manager wants to hear from.
The IGs returned over $4.5 billion to the Federal Government during
fiscal year 2002 in restitutions and recoveries. IG audits also
identified another $72 billion in funds that could be used more
efficiently and effectively. They also had more than 10,000 successful
criminal prosecutions.
The IGs make similar contributions year after year. They have more
than proven their usefulness to Congress and the American people. I
urge my colleagues to support this resolution commemorating their 25th
anniversary.
Mr. Speaker, I yield back the balance of my time.
Mr. DUNCAN. Mr. Speaker, I yield myself such time as I may consume to
close by saying that many, many people have paid lip service to waste,
fraud, and abuse within the Federal Government, but these Inspectors
General and their staffs are on the front lines trying to do something
about this to save taxpayers money and help make our Federal Government
run more honestly and efficiently, so I urge passage of this
legislation.
Mr. Speaker, I have no further requests for time, and I yield back
the balance of my time.
The SPEAKER pro tempore (Mr. Petri). The question is on the motion
offered by the gentleman from Tennessee (Mr. Duncan) that the House
suspend the rules and pass the Senate joint resolution, S.J. Res. 18.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. DUNCAN. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
____________________
HONORING MR. SARGENT SHRIVER
Mr. DUNCAN. Mr. Speaker, I move to suspend the rules and agree to the
concurrent resolution (H. Con. Res. 299) honoring Mr. Sargent Shriver
for his dedication and service to the United States of America, for his
service in the United States Navy, and for his lifetime of work as an
ambassador for the poor and powerless citizens of the United States of
America, and for other purposes.
The Clerk read as follows:
H. Con. Res. 299
Whereas from 1955 to 1960, Mr. Shriver served as president
of the Chicago Board of Education;
Whereas Mr. Shriver earned the rank of Lieutenant Commander
after 5 years of service in the United States Navy;
Whereas in 1960, Mr. Shriver began his career in public
service by working as a political and organization
coordinator for Senator John F. Kennedy in the Wisconsin and
West Virginia Presidential primaries;
Whereas from 1961 to 1966, Mr. Shriver organized and
directed the Peace Corps, developing volunteer activities in
Africa, Asia, and Latin America;
Whereas from 1964 to 1968, as the first Director of the
Office of Economic Opportunity during President Lyndon B.
Johnson's administration, Mr. Shriver helped establish Head
Start, VISTA, Community Action, Job Corps, Legal Services,
Foster Grandparents, Indian and Migrant Opportunities, and
Neighborhood Health Services;
Whereas in 1964, Mr. Shriver was appointed by President
Johnson to serve as United States Ambassador to France;
[[Page 29089]]
Whereas in 1972, Mr. Shriver was selected by the Democratic
party as the Vice Presidential candidate during Senator
George McGovern's Presidential campaign against President
Nixon;
Whereas in 1984, Mr. Shriver served as president of the
Board of Directors of Special Olympics and was responsible
for the operation and international development of sports
programs around the world;
Whereas in 1990, Mr. Shriver was appointed chairman of the
Board of Special Olympics;
Whereas in 2003, Mr. Shriver was appointed chairman of the
Board Emeritus of Special Olympics and has held positions in
many associations, including the American Council on Germany,
the National Interreligious Task Force on Soviet Jewry, the
Navy League, the Veterans of Foreign Wars, and the Knights of
Columbus;
Whereas Mr. Shriver has been honored with numerous awards,
including the Distinguished American Award from the John F.
Kennedy Library and Foundation for his work with the Peace
Corps and the Presidential Medal of Freedom, the United
States' highest civilian honor; and
Whereas Mr. Shriver has been honored with more than 24
honorary degrees from universities around the world,
including Yale University, Brandeis University, Boston
College, Yeshiva University, the University of Liberia, and
Chulalongkorn University in Bangkok, Thailand: Now,
therefore, be it
Resolved by the House of Representatives (the Senate
concurring), That Congress--
(1) honors Mr. Sargent Shriver for his dedication and
service to the United States of America, for his service in
the United States Navy, and for his lifetime of work acting
as an ambassador for the poor and powerless citizens of the
United States; and
(2) recognizes Mr. Sargent Shriver for his steadfast
dedication and lifelong service to his country.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Tennessee (Mr. Duncan) and the gentleman from North Carolina (Mr.
Ballance) each will control 20 minutes.
The Chair recognizes the gentleman from Tennessee (Mr. Duncan).
General Leave
Mr. DUNCAN. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
on H. Con. Res. 299, the resolution now under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Tennessee?
There was no objection.
Mr. DUNCAN. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, House Concurrent Resolution 299 honors Mr. Sargent
Shriver for his dedication and service to the United States of America.
In 1961, President John F. Kennedy appointed Sargent Shriver the first
director of the United States Peace Corps, an organization that
continues to help millions of people all over the globe today. Three
years later, because of his success establishing the Peace Corps,
Sargent Shriver was also named director of the Office of Economic
Opportunity by President Lyndon Johnson. He ultimately resigned from
the Peace Corps in 1966 to devote himself full time to the OEO. In
1968, he was selected as our Ambassador to France. Ambassador Shriver
joined the national Presidential ticket in 1972, when he became George
McGovern's Vice Presidential running mate in that year.
Mr. Speaker, Sargent Shriver lived a remarkable life committed to
public service in the U.S. and around the world. I congratulate the
gentleman from California for recognizing Mr. Sargent Shriver for his
steadfast dedication and lifelong service to his country.
Mr. Speaker, I reserve the balance of my time.
Mr. BALLANCE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, Sargent Shriver is a humanitarian, an advocate, a public
servant, and a leader whose contributions to his country and his fellow
man are immeasurable. Leading President Johnson's War on Poverty,
Shriver ushered in many of the great society programs aimed at helping
Americans better their lives. A list of programs Sargent Shriver
started, defended, and expanded, and which remain in place today, are
the Peace Corps, which in 1961 he helped organize and became its first
director, Head Start, Job Corps, Legal Services, Upward Bound,
Community Action, Foster Grandparents, and VISTA. Along with his wife
Eunice, the founder of Special Olympics International, Sargent Shriver
has nurtured the Special Olympics since 1968.
A man of stellar character and tireless energy, Shriver was raised on
a farm in Westminster, Maryland. He worked his way through college,
graduating from Yale University, cum laude, in 1938, and Yale Law
School in 1941. Shriver served 5 years in the Navy during World War II
ending his service as Lieutenant Commander.
Sargent Shriver worked to unite common concerns of the citizens of
America and of the world. In 2001, during a speech at the 40th
Anniversary of the Peace Corps Vigil at the Lincoln Memorial, Shriver
stated: ``Be servants of peace; work at home as you have worked abroad,
humbly, persistently, intelligently. Weep with those who are sorrowful,
care for those who are sick. Serve your wives, serve your husbands,
serve your families, serve your neighbors, serve your citizens, serve
your cities, serve the poor. Join others who serve. Serve, serve,
serve. That's the end. That is the challenge. For in the end, it will
be the servants who save us all.''
Be servants of peace. This is an important directive not only for the
Peace Corps, but for all of us who work to seek to make America and the
world a better place, as Sargent Shriver has. We owe men and women like
Sargent Shriver a debt of gratitude and this resolution serves to do
that.
Mr. Speaker, I yield back the balance of my time.
Mr. DUNCAN. Mr. Speaker, I yield such time as he may consume to the
gentleman from California (Mr. McKeon).
Mr. McKEON. Mr. Speaker, I thank the gentleman for yielding me this
time.
Mr. Speaker, I rise today as the proud sponsor of House Concurrent
Resolution 299, honoring the life and accomplishments of my friend
Sargent Shriver. I have another good friend here today who I met on the
Hill and have known for many years, David Bradley. Mr. Bradley worked
for Sargent, considers him a mentor, and is the one that really got me
interested in studying more about what Sargent Shriver has accomplished
in this life. Just a short week after his 88th birthday, we honor this
American Patriot for his accomplishments in life, for his compassion
for humanity, for his philanthropy, for his generosity, and for his
commitment to public service.
As children, we all have visions and dreams of one day being able to
change the world, to make a real difference to mankind, to be
remembered. But in reality, it is difficult to find a person who has
actually done so. As an ambassador and advocate for the poor and
powerless, as a man of strong conviction, faith, and devotion, as a man
who genuinely loves his country and all that it stands for, it is safe
to say that Sargent Shriver truly has made a difference in the world.
Born 88 years ago last Sunday, Sargent received both his
undergraduate and law degrees from Yale University. He married his
long-time sweetheart, Eunice Kennedy, and 50 years later, their love
remains as strong as the day they met. His devotion to his wife and his
five children, throughout his life, exemplify his character and
represent the true American spirit.
His love for family is followed closely by his love of country. As an
international lawyer and administrator, Sargent Shriver has compiled an
unparalleled record of public service at every tier, from the local
level to the world community. Sargent served as an attorney in the
United States Navy during World War II and retired as a Lieutenant
Commander after 5 years of service.
After ending his military career, Mr. Shriver worked briefly as an
editorial assistant at Newsweek magazine. In 1955, he began a 5-year
tenure as president of the Chicago Board of Education, a position that
would teach him the sense of patriotism and community activism, which
he would carry throughout his life.
In 1961, Mr. Shriver answered the call of duty again, this time by
President John F. Kennedy. Sargent established and directed the newly-
founded organization called the Peace Corps, and
[[Page 29090]]
helped organize operations around the world, from Africa and Asia to
Latin America. The Peace Corps would eventually come to the aid of
foreign communities needing medical, educational and technical
assistance, while giving millions of Americans the opportunity share
our culture and values and democratic way of life to those less
fortunate around the world.
After September 11, many Americans have been searching for their role
in the war against terrorism, asking what can I do. President Bush has
called on every citizen to devote a portion of their lives to service.
Since September 2001, more than 3,000 potential Peace Corps volunteers
have started applications and almost 7,000 men and women have contacted
the Peace Corps to ask about volunteering. The Peace Corps estimates
that there has been a 300 percent increase in volunteer interest.
Sargent Shriver deserves the gratitude of every American for his
contributions to this most noble of causes.
As the true patriot he is, Sargent's commitment to those in need did
not stop there. He served as the first director of the Office of
Economic Opportunity under President Johnson. Using his principles as
his guiding light, Sargent played the American Dream a reality for
millions of Americans across America. And, today, at the young age of
88, Sargent's mission of service continues. He was elected president of
the Special Olympics in 1984 and was appointed Chairman of the Board
Emeritus of Special Olympics earlier this year.
Martin Luther King said, ``You ought to believe in something in life,
and believe that thing so fervently that you will stand up for it until
the end of your days.'' As a man of unflinching moral character,
visionary leadership, and a compassion that sees no end, Sargent
Shriver embodies the idealism that helped make the United States the
world's cornerstone of freedom, opportunity, and democracy.
Mr. Shriver once said that the politics of life is personal
initiative, creativity, experience, and grace. Mr. Speaker, Sargent
Shriver exemplifies the American spirit which represents the very best
in humanity. His life is a celebration of democracy. I am proud to have
sponsored this resolution and encourage all Members to follow the
example set by my friend, Sargent Shriver.
Mr. DUNCAN. Mr. Speaker, I yield myself such time as I may consume to
commend the gentleman from California for introducing this very
worthwhile legislation, and I join him in commending Sargent Shriver on
his career. He has led a life of public service that has set a great
example for everyone in this Nation. He has tried to serve this Nation
well.
Mr. McGOVERN. Mr. Speaker, I am pleased to join my colleagues in
honoring Sargent Shriver for his years of outstanding service to our
country. As a lawyer, government administrator, ambassador, and
passionate spokesman for the poor, Mr. Shriver has devoted his life to
the most vulnerable among us.
Sargent Shriver is perhaps best known as the founder and first
administrator of President John F. Kennedy's Peace Corps. In that
position, Mr. Shriver organized Peace Corps operations in more than 50
countries in the developing world.
After founding the Peace Corps, Mr. Shriver dedicated himself to
President Lyndon B. Johnson's Great Society. Within the Great Society,
Mr. Shriver founded Head Start; he created the Job Corps; he organized
Legal Services; and he created Volunteers in Service to America.
In time, Mr. Shriver's service to our country took on a diplomatic
perspective when he went to Paris as our ambassador to France under
both President Johnson and President Richard M. Nixon.
Upon his return from Paris, Mr. Shriver threw himself into Democratic
politics. During the 1970 election, he traveled the country on behalf
of Democratic House and Senate candidates. And then in 1972 he was the
Democratic nominee for vice president joining the ticket with my good
friend George McGovern. In 1976, Mr. Shriver ran in the Democratic
presidential primaries.
Mr. Speaker, throughout the 1980s and 1990s, Mr. Shriver devoted
himself to philanthropic causes. Among other things, he served on the
Rockefeller University Council; he was elected president of the Special
Olympics; he was later appointed Chairman of the Board of Special
Olympics, Inc. Mr. Shriver went on to receive numerous awards and
honorary degrees from colleges and universities.
Mr. Speaker, this summer I had the opportunity to see and talk with
Sargent Shriver in Massachusetts. He shared with me his dreams of a
peaceful world and his hopes for a brighter future. And he looks great.
Mr. Speaker, as we honor Mr. Shriver today, I believe it is important
that we reflect on his life of service to our country and how we can
learn from him. In a letter he composed about his fight with
Alzheimer's disease, he wrote of the challenges we face as a country
``to search for the pathways to peace . . . to overcome the horrors of
poverty and neglect in this country and around the world. Indeed, Mr.
Shriver's words should guide us each day.
Again, Mr. Speaker, I am pleased to join my colleagues in honoring
Mr. Shriver for his decades of selfless service to our country and the
world community.
Mr. HOYER. Mr. Speaker, in 5 days, we will observe the 40th
anniversary of one of the darkest moments in American history--the
assassination of our 35th President, John F. Kennedy.
President Kennedy stirred the imagination of our Nation and inspired
a generation to ``ask not what your country can do for you--ask what
you can do for your country.''
Today, Mr. Speaker, I join my colleagues in honoring a man who
answered that clarion call to a life in public service; a man who quite
literally was a pillar in President Kennedy's New Frontier; and a man
who is one of the greatest public servants in the history of our
Nation.
I, of course, am referring to Robert Sargent Shriver, Jr., who
celebrated his 88th birthday one week ago.
Sargent Shriver's devotion to this nation--and humanity--sets an
example for all to emulate and a high bar that only a few will ever
hope to exceed.
A native of the State of Maryland, and in fact a member of one of the
Free State's founding families, Sargent Shriver has dedicated his life
to improving the lives of others.
A few years ago, Sarge was asked to explain his lifelong commitment
to public service. ``I just feel my faith,'' he said. ``A life of
service is like catching a disease. In a family it's passed on. . . .
Our five children are all involved in service. It's in their veins.''
There is no doubt that this generation and future generations of
Americans are the beneficiaries of his life of service.
After graduating from Yale Law School in 1941, Sarge enlisted in the
Navy, where he received the Navy Unit Citation and the Submarine Medal
for service in both the Atlantic and Pacific.
After World War II, Sarge accepted a position as assistant editor
with Newsweek magazine. He later went into business with Joseph
Kennedy, President Kennedy's father, and met Eunice, his wife of more
than 50 years.
Sarge then moved his family to Chicago, where he served on the Board
of Education. In 1956, he was elected President of the Board, the
youngest person to serve in such a position in any major American city.
And in 1960, he joined the Presidential campaign of then-Senator
Kennedy. After the election, he was asked by President Kennedy to
create the Peace Corps and in March 1961 was appointed its founding
Director.
Sarge's vision for the Peace Corps was straight-forward and strong:
``to permit Americans to participate directly, personally, and
effectively in this struggle for human dignity.''
In nearly 6 years at the Peace Corps, Sarge developed programs in 55
countries with more than 14,500 volunteers. Forty-two years later, the
solid foundation that he created has only strengthened and expanded.
Today, 163,000 Peace Corps volunteers have served in 135 countries.
However, while Sarge is rightly identified as the founding father of
this great American idea, his contributions to the Peace Corps do not
tell the whole story.
Sarge also served as the first Director of the Office of Economic
Opportunity under President Johnson. Then, between 1964 and 1968, he
created VISTA, Head Start, Community Action, Foster Grandparents, Job
Corps, Legal Services, Indian and Migrant Opportunities and
Neighborhood Health Services.
And, then, from 1968 to 1970, he served as U.S. Ambassador to France,
before being nominated in 1972 to serve as the Vice Presidential
candidate on the Democratic Party's ticket with George McGovern.
Few Americans have given so much to help so many. Yet, in the
twilight of this incredible life, Sarge and Eunice continue to give.
To call this record of public service exemplary is a vast
understatement. Words cannot adequately convey the decency and humanity
that has been brought into the lives of millions worldwide through the
work of Sargent Shriver--international lawyer, ambassador,
humanitarian. His life's work shall live on long after
[[Page 29091]]
this and succeeding generations have passed the torch of public service
to their progeny.
``Serve, serve, serve,'' Sarge was know to say, ``because in the end
it is the servants who save us all.''
Mr. Speaker, today, I honor a great American and wish him only the
best, and I urge all my colleagues on both sides of the aisle to
support this Resolution recognizing Sargent Shriver.
Mr. DUNCAN. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Tennessee (Mr. Duncan) that the House suspend the rules
and agree to the concurrent resolution, H. Con. Res. 299.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. DUNCAN. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
____________________
WALTER F. EHRNFELT, JR. POST OFFICE BUILDING
Mr. DUNCAN. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3300) to designate the facility of the United States Postal
Service located at 15500 Pearl Road in Strongsville, Ohio, as the
``Walter F. Ehrnfelt, Jr. Post Office Building.''
The Clerk read as follows:
H.R. 3300
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. WALTER F. EHRNFELT, JR. POST OFFICE BUILDING.
(a) Designation.--The facility of the United States Postal
Service located at 15500 Pearl Road in Strongsville, Ohio,
shall be known and designated as the ``Walter F. Ehrnfelt,
Jr. Post Office Building''.
(b) References.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
facility referred to in subsection (a) shall be deemed to be
a reference to the Walter F. Ehrnfelt, Jr. Post Office
Building.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Tennessee (Mr. Duncan) and the gentleman from North Carolina (Mr.
Ballance) each will control 20 minutes.
The Chair recognizes the gentleman from Tennessee (Mr. Duncan).
General Leave
Mr. DUNCAN. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
on H.R. 3300, the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Tennessee?
There was no objection.
Mr. DUNCAN. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, H.R. 3300, introduced by another of my distinguished
colleagues on the Committee on Government Reform, the gentleman from
Ohio (Mr. LaTourette), designates the postal facility in Strongsville,
Ohio, as the Walter F. Ehrnfelt, Jr. Post Office Building. All Members
of the Ohio delegation have signed on as cosponsors to this
legislation.
Walter Ehrnfelt served as Mayor of Strongsville, Ohio, for 25 years,
and he was a civic and social institution in this northern Ohio
community outside of Cleveland for even longer than that.
{time} 1530
He was reelected six times after first being appointed as mayor in
1978. The town of Strongsville nearly doubled its population during
Mayor Ehrnfelt's tenure. Largely due to the mayor's efforts over the
years, Strongsville boasts a fantastic school system, a productive
industrial base, and many safe and wonderful neighborhoods.
Mr. Speaker, Mayor Ehrnfelt sadly passed away in office after
suffering a heart attack on May 25 of this year. Naming this post
office after Mayor Ehrnfelt in the city he governed and loved would be
a small, but very deserved, tribute to his leadership. I urge all
Members to support passage of H.R. 3300. I commend the gentleman from
Ohio (Mr. LaTourette) for working to honor Mr. Walter Ehrnfelt.
Mr. Speaker, I reserve the balance of my time.
Mr. BALLANCE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I am pleased to join my colleagues in support of H.R.
3300, sponsored by the gentleman from Ohio (Mr. LaTourette).
Walter Ehrnfelt, Jr., was first elected mayor of Strongsville, Ohio,
in 1978. He was elected for six 4-year terms until his death on May 25,
2003. He was a devoted family man, public servant, and businessman. He
served the citizens of Strongsville in many capacities. He was a member
of the Strongsville school board, and was later elected president of
the board and served as county councilman prior to being elected mayor.
In addition to holding positions in many civic organizations, he was an
honorary trustee of the Strongsville Chamber of Commerce and a member
of the Strongsville United Methodist Church.
I am honored to join my colleagues seeking to honor the many
contributions of Walter Ehrnfelt, and I urge swift passage of H.R.
3300.
Mr. KUCINICH. Mr. Speaker, I feel honored today to support H.R. 3300,
a bill to rename the United States Post Office in Strongsville, OH in
tribute to the city's distinguished and dedicated former mayor and my
friend, the late Walter F. Ehrnfelt. I would also like to extend
special thanks to my colleague, Congressman LaTourette, for helping to
bring his legislation to the floor, along with all of the Ohio
delegation for co-sponsoring this bill.
Mayor Ehrnfelt's impact on the city of Strongsville will never be
forgotten. After graduating from Strongsville High School, he began
what would become a lifetime commitment to civic involvement. In 1973,
while running Ehrnfelt Meats, a family business that operates still
today, his neighbors convinced him to run for the Strongsville School
Board, leading the fight against a campaign to dismiss teachers and ban
books in the school district. He won that race, and in 1978 he was
appointed mayor of Strongsville, later winning his first mayoral race
in November 1979 by more than a 2 to 1 margin. Voters rewarded his
effective leadership by re-electing him to six consecutive 4-year
terms, the last beginning in 2000.
As mayor, Walter Ehrnfelt guided Strongsville through an
unprecedented period of growth, evolving from a community of 22,000 to
a thriving suburb of 45,000 residents. He served on Governor Taft's
State and Local Government Commission and was president of the Ohio
Municipal League. But most importantly, Mayor Ehrnfelt lived each day
with the people of Strongsville close to his heart, truly living his
life for the betterment of others.
I'm pleased we have the opportunity to honor Mayor Ehrnfelt for his
service and spirit today. The people of Strongsville, the state of
Ohio, and everyone who knew him will miss him greatly.
Mr. BALLANCE. Mr. Speaker, I yield back the balance of my time.
Mr. DUNCAN. Mr. Speaker, I urge support for this very fitting and
proper legislation, and I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Petri). The question is on the motion
offered by the gentleman from Tennessee (Mr. Duncan) that the House
suspend the rules and pass the bill, H.R. 3300.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. DUNCAN. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
____________________
JOHN F. KENNEDY CENTER REAUTHORIZATION ACT OF 2003
Mr. PORTER. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3198) to amend the John F. Kennedy Center Act to authorize
appropriations for the John F. Kennedy Center for the Performing Arts,
and for other purposes.
[[Page 29092]]
The Clerk read as follows:
H.R. 3198
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``John F. Kennedy Center
Reauthorization Act of 2003''.
SEC. 2. AUTHORIZATIONS OF APPROPRIATIONS.
Section 13 of the John F. Kennedy Center Act (20 U.S.C.
76r) is amended by striking subsections (a) and (b) and
inserting the following:
``(a) Maintenance, Repair, and Security.--There are
authorized to be appropriated to the Board to carry out
section 4(a)(1)(H)--
``(1) $17,000,000 for fiscal year 2004; and
``(2) $18,000,000 for each of fiscal years 2005 and 2006.
``(b) Capital Projects.--There are authorized to be
appropriated to the Board to carry out subparagraphs (F) and
(G) of section 4(a)(1)--
``(1) $16,000,000 for fiscal year 2004; and
``(2) $18,000,000 for each of fiscal years 2005 and
2006.''.
SEC. 3. JOHN F. KENNEDY CENTER PLAZA.
(a) Responsibilities of the Secretary.--Section 12(b) of
the John F. Kennedy Center Act (20 U.S.C. 76q-1(b)) is
amended by adding at the end the following:
``(6) Project team.--
``(A) Establishment.--To further construction of the
Project, the Secretary shall establish a Project Team.
``(B) Membership.--The Protect Team shall be composed of
the following members:
``(i) The Secretary (or the Secretary's designee).
``(ii) The Administrator of General Services (or the
Administrator's designee).
``(iii) The Chairman of the Board (or the Chairman's
designee).
``(iv) Such other individuals as the Secretary considers
appropriate.
``(C) Project director.--The Project Team shall have a
Project Director who shall be appointed by the Secretary, in
consultation with the Administrator of General Services and
the Chairman of the Board. The Project Director shall report
directly to the Project Team.''.
(b) Responsibilities of the Board.--
(1) In general.--Section 12(c)(1) of such Act (20 U.S.C.
76q-1(c)(1)) is amended by inserting ``, in consultation with
the Project Team,'' after ``The Board''.
(2) Construction of buildings.--Section 12(c)(3) of such
Act (20 U.S.C. 76q-1(c)(3)) is amended by inserting ``, in
consultation with the Project Team,'' after ``The Board''.
(3) Approval by project team.--Section 12(c) of such Act
(20 U.S.C. 76q-1(c)) is amended by adding at the end the
following:
``(5) Approval by project team.--Notwithstanding section
5(e), any decision by the Board that will significantly
affect the scope, cost, schedule, or engineering feasibility
of any element of the Project, other than buildings to be
constructed on the Plaza, shall be subject to the approval of
the Project Team.''.
(c) GAO Review.--Section 12 of such Act (20 U.S.C. 76q-1)
is amended by adding at the end the following:
``(g) GAO Review.--
``(1) In general.--Until completion of the Project, the
Comptroller General shall review the management and oversight
of construction of the Project by the Board and report
periodically on the results of the review to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Environment and Public
Works of the Senate.
``(2) Objectives.--In carrying out paragraph (1), the
Comptroller General shall assess the progress made by the
Board in achieving each of the following objectives:
``(A) Development and implementation of adequate policies
and procedures to guide the planning and management of the
Project.
``(B) Receipt of timely construction data on schedules and
costs related to the Project.
``(C) Improvement of human capital resources and expertise
in managing construction of the Project.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Nevada (Mr. Porter) and the gentleman from New York (Mr. Bishop) each
will control 20 minutes.
The Chair recognizes the gentleman from Nevada (Mr. Porter).
Mr. PORTER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, H.R. 3198 reauthorizes the John F. Kennedy Center for
the Performing Arts for 3 years, authorizing funding for its capital
repair and maintenance, allows for the GAO review of ongoing
construction projects, and creates a new mechanism to ensure effective
project oversight.
This bill is the product of a thorough legislative process. The
subcommittee held an oversight hearing that included the GAO and the
Kennedy Center, reviewed their comprehensive building plan and capital
program, and discussed options for improving upon their programs. This
process resulted in the bipartisan legislation we are bringing to the
floor this afternoon.
I would like to recognize and congratulate the subcommittee chairman,
the gentleman from Ohio (Mr. LaTourette), and the ranking member, the
gentlewoman from the District of Columbia (Ms. Norton), as well as full
committee chairman, the gentleman from Alaska (Mr. Young), and the
ranking member, the gentleman from Minnesota (Mr. Oberstar), for their
hard work in developing this legislation.
Since its founding, the Kennedy Center has become one of the world's
premier entertainment venues, featuring award-winning theater, opera,
and symphony performances. The funds we are authorizing today will go
solely towards the upkeep and maintenance of the facility, for such
repairs as elevator upgrades, handicap accessibility, enhanced fire and
life safety equipment, and improved security systems. These repairs are
in line with a comprehensive building plan maintained by the Kennedy
Center and created at the direction of Congress in 1994. This
legislation also incorporates several provisions that ensure effective
project oversight.
It is no secret that there are Federal construction projects that
have gone beyond their original budget, beyond schedule, and well
beyond their original scope. Oftentimes it is the lack of adequate
project management and oversight that allow this type of growth. That
was the finding of a GAO report requested by the Committee on
Transportation and Infrastructure on the Kennedy Center's garage
expansion project.
The provision in this bill, including the creation of a project team,
the requirement of a project director, and enhanced oversight by the
GAO, should prevent such problems as the Kennedy Center goes forward
with the construction of a new plaza and two new buildings. However,
this reauthorization does not include any money for the plaza project.
All of the funding authorized in this bill will be used for the
existing structure and its surroundings. By supporting the regular
maintenance and upkeep of the Kennedy Center, we will ensure that the
center will continue to be a world-class venue well into the future. I
support this legislation and urge my colleagues to do the same.
Mr. Speaker, I reserve the balance of my time.
Mr. BISHOP of New York. Mr. Speaker, I yield myself such time as I
may consume.
Mr. Speaker, I am pleased to rise in support of H.R. 3198, a bill to
authorize appropriations for the John F. Kennedy Center for the
Performing Arts. Almost a decade ago, the Committee on Public Works,
recognizing the inefficiency of years of divided responsibility for the
operations, maintenance, and capital repairs of the Kennedy Center,
passed H.R. 3567, which gave the board of trustees of the Kennedy
Center centralized responsibilities for these matters.
In an effort to prevent continued deterioration of this landmark
structure and Presidential memorial, the board asked for and received
authority to maintain and improve the center. Former presidents
Wolfensohn and Wilker, along with the current president, Michael
Kaiser, continually worked to identify and put in place a capital
improvement program to enhance the building. They believed it was of
the utmost importance that the Kennedy Center management have the
responsible and accountability for the building as well as its
performing arts and education activities.
The Committee on Transportation and Infrastructure's interest then,
as it is now, focuses on the use of appropriated funds for the capital
improvement program and the repair and alteration of this Presidential
memorial. To avoid the previous situation of unmet building needs and
delayed repair, the center is now required to submit a 5-year capital
plan to the committee. H.R. 3198 authorizes $53 million over 3 years
for routine repair and alteration and $52 million for capital projects.
To address improved management for the plaza project, the bill
authorizes
[[Page 29093]]
the Secretary of Transportation, our former colleague, Norman Mineta,
to establish a project team and appoint a project director. The
president of the Kennedy Center and the administrator of General
Services will serve on the team. The plaza project, when completed,
will change the face of Washington in the West End. It is a monumental
project that will not only enhance our Nation's Capital, but also
provide safer and easier access to the center for patrons, visitors,
and tourists. The center, under the leadership of Michael Kaiser, is
working diligently to address general management of the facility as
well as unmet personal needs. I support H.R. 3198 and urge its passage.
Mr. YOUNG of Alaska. Mr. Speaker, I rise today to offer my strong
support for H.R. 3198, ``The John F. Kennedy Center Reauthorization Act
of 2003.''
The Kennedy Center serves an important role in our Nation. Not only
is it one of the most active theaters in the world, hosting millions of
patrons each year to its seven stages, but is also one of the most
recognizable theater buildings.
The legislation we are considering this afternoon, which I have
offered with my colleagues Mr. Oberstar, Mr. LaTourette, and Ms.
Holmes-Norton, reauthorizes the Capital Infrastructure program of the
Kennedy Center for an additional three years. The bill also makes a
number of important changes that will improve the management of large
construction projects at the Kennedy Center.
This legislation will help ensure that the Kennedy Center continues
to have a world class facility to house world class entertainment,
which includes everything from classical opera to cutting edge films.
In addition to authorizing funds for maintenance, repair, and
security as well as other capital projects, this legislation puts into
place important tools for improved project management.
The legislation creates a project team for the plaza project. This
team will include the secretary of transportation, administrator of
general services, and chairman of the board of trustees of The Kennedy
Center. This team will be responsible for overseeing all aspects of the
plaza project through a project director, who reports to the project
team and is appointed by the Secretary of Transportation.
The legislation also provides for ongoing review by the General
Accounting Office of the plaza project until its completion, with
periodic reporting to the Congress. The GAO will be looking at the
personnel, policies and procedures used to carry out the project.
I support The Kennedy Center Reauthorization and encourage my
colleagues to do the same.
Mr. BISHOP of New York. Mr. Speaker, I have no further requests for
time, and I yield back the balance of my time.
Mr. PORTER. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Nevada (Mr. Porter) that the House suspend the rules and
pass the bill, H.R. 3198.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________
CONVEYANCE TO FRESNO COUNTY, CALIFORNIA, OF EXISTING FEDERAL COURTHOUSE
Mr. PORTER. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 1274) to direct the Administrator of General Services to
convey to Fresno County, California, the existing Federal courthouse in
that county, as amended.
The Clerk read as follows:
H.R. 1274
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
[SECTION 1. CONVEYANCE TO FRESNO COUNTY, CALIFORNIA.
[On completion of a new Federal courthouse in Fresno,
California, the Administrator of General Services shall
convey to Fresno County, California, without consideration,
the existing Federal courthouse in that county.]
SECTION 1. CONVEYANCE OF B.F. SISK FEDERAL BUILDING AND
UNITED STATES COURTHOUSE, CALIFORNIA.
(a) Conveyance Authorized.--Notwithstanding any other
provision of law, the Administrator of General Services may
convey to Fresno County, California, for nominal
consideration, all right, title, and interest of the United
States in and to the building and site located at 1130 O
Street in Fresno, California, known as the B.F. Sisk Federal
Building and United States Courthouse.
(b) Timing of Conveyance.--The Administrator may make the
conveyance under subsection (a) only after the completion of
construction of a new Federal courthouse in Fresno County and
the relocation of the tenants in the building referred to in
subsection (a) to the new Federal courthouse.
(c) Restrictions on Use.--
(1) In general.--The deed for the conveyance under
subsection (a) shall include a covenant that provides that
the property will be used for public use purposes, and
specifically provides for substantial use of the property for
the administration of justice.
(2) Reversion.--If the Administrator determines that the
property is not being used for the purposes described in
paragraph (1), all right, title, and interest in and to the
property shall revert to the United States, at the option of
the United States.
(3) Expiration.--The reversionary interest of the United
States in the property under this subsection shall expire 20
years after the date of the conveyance.
(d) Additional Terms and Conditions.--The Administrator may
require such additional terms and conditions in connection
with the conveyance under subsection (a) as the Administrator
considers appropriate to protect the interests of the United
States.
(e) Application of Other Laws.--This section is not subject
to the provisions of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11301 et seq.).
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Nevada (Mr. Porter) and the gentleman from New York (Mr. Bishop) each
will control 20 minutes.
The Chair recognizes the gentleman from Nevada (Mr. Porter).
Mr. PORTER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, H.R. 1274, introduced by the gentleman from California
(Mr. Dooley) and the gentleman from California (Mr. Radanovich), allows
the administrator of General Services to convey the B.F. Sisk United
States Courthouse located in Fresno, California, to Fresno County. This
is a worthwhile endeavor, as the GSA is currently constructing a new
Federal courthouse in Fresno, and this legislation will ensure that the
people of Fresno County continue to receive a judicial benefit from the
existing Federal courthouse.
This legislation also includes a number of provisions that will help
protect the interests of the Federal Government. Among the provisions
included in this legislation are the requirement that the courthouse be
used for public purpose for at least 20 years, that the transfer not
take place until the new courthouse is completed and occupied, and the
conveyance may also include any additional provisions the administrator
deems necessary to protect the interests of the government. I support
this legislation and urge my colleagues to do the same.
Mr. Speaker, I reserve the balance of my time.
Mr. BISHOP of New York. Mr. Speaker, I yield myself such time as I
may consume.
Mr. Speaker, I rise in strong support of H.R. 1274, as amended, a
bill to convey a Federal courthouse in Fresno, California, to the
County of Fresno. The bill transfers for a nominal fee an obsolete
Federal building in Fresno, California, to the County of Fresno. The
bill ensures that the transfer documents contain a reverter clause, as
well as a public use clause, both of which protect Federal interests.
I would like to thank the chairman of the Subcommittee on Economic
Development, Public Buildings and Emergency Management, the gentleman
from Ohio (Mr. LaTourette), and ranking member, the gentlewoman from
the District of Columbia (Ms. Norton), for their work on this
legislation and for recognizing that outmoded Federal buildings are
still viable and can continue to serve a public purpose. I also commend
the gentleman from California (Mr. Dooley) for introducing this bill,
which is a win/win for all parties involved.
I support H.R. 1274 and urge its passage.
Mr. Speaker, I reserve the balance of my time.
Mr. PORTER. Mr. Speaker, I reserve the balance of my time.
Mr. BISHOP of New York. Mr. Speaker, I yield 2 minutes to the
gentleman from California (Mr. Dooley).
[[Page 29094]]
Mr. DOOLEY of California. Mr. Speaker, I rise in support of H.R. 1274
as introduced by the gentleman from California (Mr. Radanovich) and me,
and I want to thank the gentleman from Ohio (Mr. LaTourette) and the
gentlewoman from the District of Columbia (Ms. Norton) for their work
in advancing this piece of legislation.
The Eastern District of California is very pleased that they have
decided to build a new Federal courthouse in the city of Fresno. The
entire community, as well as the surrounding areas, is very pleased
with this investment into the construction of a new courthouse which
will serve the needs of the entire Eastern District of California.
This legislation is also very important in that it will transfer the
B.F. Sisk Building to the County of Fresno, with the appropriate
stipulations that this legislation embodies, ensuring that it remains
in public use for a considerable period of time. This also meets the
needs of Fresno, it meets the needs of public service, and ensures that
the taxpayers' interests are protected. I thank the committee members
for advancing this legislation.
Mr. BISHOP of New York. Mr. Speaker, I yield back the balance of my
time.
Mr. PORTER. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Nevada (Mr. Porter) that the House suspend the rules and
pass the bill, H.R. 1274, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. PORTER. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
____________________
GENERAL LEAVE
Mr. PORTER. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
and include extraneous material on H.R. 3198 and H.R. 1274, the
measures just considered by the House.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Nevada?
There was no objection.
____________________
{time} 1545
CLARIFYING ACREAGE FOR IRRIGATION WATER UNDER MISSOURI RIVER BASIN
PROJECT
Mr. OSBORNE. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3209) to amend the Reclamation Project Authorization Act of
1972 to clarify the acreage for which the North Loup division is
authorized to provide irrigation water under the Missouri River Basin
project.
The Clerk read as follows:
H.R. 3209
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. CLARIFICATION OF ACREAGE FOR IRRIGATION WATER.
Section 501 of the Reclamation Project Authorization Act of
1972 (43 U.S.C. 615dddd) is amended by striking ``fifty-three
thousand acres'' and inserting ``approximately 53,000
acres''.
The SPEAKER pro tempore (Mr. Petri). Pursuant to the rule, the
gentleman from Nebraska (Mr. Osborne) and the gentlewoman from
California (Mrs. Napolitano) each will control 20 minutes.
The Chair recognizes the gentleman from Nebraska (Mr. Osborne).
General Leave
Mr. OSBORNE. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days to revise and extend their remarks and
include extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Nebraska?
There was no objection.
Mr. OSBORNE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, H.R. 3209 is a bill I introduced to clarify the amount
of acreage for which the North Loup Division is authorized under the
Missouri River Basin Project. This bill provides for a technical
correction by inserting the word ``approximately'' on the amount of
acreage authorized under the project.
Under current law, irrigators must cite the specific amount of
irrigated acreage served under the North Loup project. Conflicting
Federal and State statutes for reporting irrigable service areas,
conversion of irrigated ground to right-of-ways, land conservation
programs and habitat easements are causing ever-changing and
misunderstood adjustments to irrigated acreage. This bill allows for
more flexibility in determining the amount of irrigated acreage.
This is not a new concept and would bring consistency to the act, as
well as to contracts between the irrigation districts and the United
States. I urge my colleagues to support this noncontroversial bill.
Mr. Speaker, I reserve the balance of my time.
Mrs. NAPOLITANO. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, H.R. 3209 would make a minor change by requiring the
North Loup Division of the Pick-Sloan Missouri Basin Program to deliver
water to ``approximately'' 53,000 acres. Existing law, as was explained
by my colleague, requires the project to deliver to exactly 53,000
acres. Yet, the project does not annually deliver water to precisely
53,000 acres.
The bill is not controversial. I urge Members to support this
legislation.
Mr. Speaker, I yield back the balance of my time.
Mr. OSBORNE. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Nebraska (Mr. Osborne) that the House suspend the rules
and pass the bill, H.R. 3209.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________
AUTHORIZING PARTICIPATION IN WILLIAMSON COUNTY, TEXAS, WATER RECYCLING
AND REUSE PROJECT
Mr. OSBORNE. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 1732) to amend the Reclamation Wastewater and Groundwater
Study and Facilities Act to authorize the Secretary of the Interior to
participate in the Williamson County, Texas, Water Recycling and Reuse
Project, and for other purposes, as amended.
The Clerk read as follows:
H.R. 1732
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. PROJECT AUTHORIZATION.
(a) Short Title.--This section may be cited as the
``Williamson County Water Recycling Act of 2003''.
(b) In General.--The Reclamation Wastewater and Groundwater
Study and Facilities Act (Title XVI of Public Law 102-575; 43
U.S.C. 390h et seq.) is amended by inserting after section
1635 the following new section:
``SEC. 1636. WILLIAMSON COUNTY, TEXAS, WATER RECYCLING AND
REUSE PROJECT.
``(a) Authorization.--The Secretary, in cooperation with
the Lower Colorado River Authority, Texas, is authorized to
participate in the design, planning, and construction of
permanent facilities to reclaim and reuse water in Williamson
County, Texas.
``(b) Cost Share.--The Federal share of the costs of the
project described in subsection (a) shall not exceed 25
percent of the total cost.
``(c) Limitation.--The Secretary shall not provide funds
for the operation and maintenance of the project described in
subsection (a).''.
(c) Clerical Amendment.--The table of sections in section 2
of the Reclamation Projects Authorization and Adjustment Act
of 1992 is amended by inserting after the item relating to
section 1635 the following:
``Sec. 1636. Williamson County, Texas, Water Recycling and Reuse
Project.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
[[Page 29095]]
Nebraska (Mr. Osborne) and the gentlewoman from California (Mrs.
Napolitano) each will control 20 minutes.
The Chair recognizes the gentleman from Nebraska (Mr. Osborne).
General Leave
Mr. OSBORNE. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days to revise and extend their remarks and
include extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Nebraska?
There was no objection.
Mr. OSBORNE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, H.R. 1732, offered by the gentleman from Texas (Mr.
Carter) and the gentleman from Texas (Mr. Edwards), authorizes the
Secretary of the Interior to participate in the design, planning and
construction of facilities to reclaim and reuse water in Williamson
County, Texas. Williamson County is one of the fastest growing counties
in the State of Texas. The Texas Water Development Board has concluded
that existing water wells are being overdrawn, and surface water
supplies are not meeting current drinking water demands. This bill will
allow the communities to stretch potable water resources by replacing
drinking water with recycled water on parks, golf courses and school
grounds.
This bill is a commonsense solution for communities that want to
safeguard drinking water supplies for future generations. I urge my
colleagues to support this bipartisan bill.
Mr. Speaker, I reserve the balance of my time.
Mrs. NAPOLITANO. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in support of H.R. 1732. This bill provides the
Secretary of the Interior with authority to help finance a water
recycling project to serve residents of Williamson County, Texas. As my
colleagues know, these water recycling projects are becoming not only
increasingly popular but necessary with communities who need reliable
and cost-effective ways to firm up their community clean water
supplies. It is unfortunate, however, that this administration refuses
to understand and fund the potential of these projects. We will
continue to press the administration to support these projects.
H.R. 1732 is not controversial. I urge support for this bill.
Mr. Speaker, I reserve the balance of my time.
Mr. OSBORNE. Mr. Speaker, I yield such time as he may consume to the
gentleman from Texas (Mr. Carter).
Mr. CARTER. I thank the gentleman for yielding me this time.
Mr. Speaker, I rise to strongly support H.R. 1732 which authorizes
the Secretary of the Interior to participate in the Williamson County,
Texas, water recycling and reuse project. I am proud to represent
Williamson County, or most of it, and I have been living there for over
30 years. During this time, I have witnessed Williamson County become
one of the fastest growing communities in the entire Nation and it has
been consistently the fastest growing county for over a decade. I have
observed the needs of this county because it has a limited supply of
water. Today some would say that water has replaced oil as the
commodity most important to the future of Texas. Unfortunately, current
water supplies will simply not meet the growing needs of Williamson
County and that community.
To meet this need, I introduced H.R. 1732 to allow the Lower Colorado
River Authority, the Brazos River Authority and local communities to
work with the Bureau of Reclamation to design, build and construct
permanent facilities to reclaim and reuse water in Williamson County.
This partnership will be an essential part of the county's water
planning efforts.
In short, this legislation will ensure current and future sources of
drinking water are made available for the residents of Williamson
County. I am excited about this partnership and believe it is a great
example of Federal and local agencies working together to make a
positive difference.
Mr. Speaker, I would like to thank the gentleman from California (Mr.
Pombo), the gentleman from California (Mr. Calvert) and their staffs
for their efforts in having this legislation brought to the floor in a
timely manner. I would also like to thank the gentleman from Texas (Mr.
Edwards), my neighbor to the north, for joining me in this effort. I
urge my colleagues to support this legislation.
Mrs. NAPOLITANO. Mr. Speaker, I yield myself such time as I may
consume.
I am very happy to hear the remarks of my colleagues. Water reuse,
water recycling has been a very, very critical project and favorite
subject of mine. Having been born and raised in Brownsville, Texas, I
understand a lot of the Texas issues with the drought along the border
that is creating havoc with farming and the economy thereof. I hope
that we can continue to address and include funding to be able to
expand not only to those areas that are in critical need but also those
areas that can be used.
We have no new water in this world. It is all the same water that
Mother Earth is recycling for us and we are helping recycle. We just
trust that we can convince the administration of its need and begin
doing it before we face very critical needs.
Mr. Speaker, I yield such time as he may consume to the gentleman
from Texas (Mr. Edwards), the coauthor of this bill.
Mr. EDWARDS. Mr. Speaker, I would first like to thank the gentlewoman
from California for her leadership in this very, very important area. I
also want to congratulate my colleague and neighbor in Williamson
County (Mr. Carter) for offering this important piece of legislation.
Just as oil and gas was the economic engine for Texas in the 20th
century, the availability of water will be the economic engine to Texas
in the future in the 21st century.
As someone who represents part of Williamson County, the gentleman
from Texas (Mr. Carter) represents about 80 percent of that county, it
is one of the largest, fastest-growing counties in the country. Water
usage there is increasing dramatically. Yet our water supply is
limited. I was very glad to cosponsor this bill with the gentleman from
Texas (Mr. Carter) and will look forward to working with him to try to
see that we find the appropriations to fund this important piece of
legislation.
Mrs. NAPOLITANO. Mr. Speaker, I have no further requests for time,
and I yield back the balance of my time.
Mr. OSBORNE. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Nebraska (Mr. Osborne) that the House suspend the rules
and pass the bill, H.R. 1732, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________
CORRECTING TECHNICAL ERROR FROM UNIT OF JOHN H. CHAFEE COASTAL BARRIER
RESOURCES SYSTEM
Mr. OSBORNE. Mr. Speaker, I move to suspend the rules and pass the
Senate bill (S. 1066) to correct a technical error from Unit T-07 of
the John H. Chafee Coastal Barrier Resources System.
The Clerk read as follows:
S. 1066
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. REPLACEMENT OF JOHN H. CHAFEE COASTAL BARRIER
RESOURCES SYSTEM MAP.
(a) In General.--The map described in subsection (b) is
replaced by the map entitled ``John H. Chafee Coastal Barrier
Resources System Matagorda Peninsula Unit T07/T07P'' and
dated July 12, 2002.
(b) Description of Replaced Map.--The map referred to in
subsection (a) is the map relating to the John H. Chafee
Coastal Barrier System unit designated as Coastal Barrier
Resources System Matagorda Peninsula Unit T07/T07P that is
subtitled ``T07/T07P''
[[Page 29096]]
and included in the set of maps entitled ``Coastal Barrier
Resources System'' and referred to in section 4(a) of the
Coastal Barrier Resources Act (16 U.S.C. 3503(a)).
(c) Availability.--The Secretary of the Interior shall keep
the replacement map referred to in subsection (a) on file and
available for inspection in accordance with section 4(b) of
the Coastal Barrier Resources Act (16 U.S.C. 3503(b)).
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Nebraska (Mr. Osborne) and the gentlewoman from California (Mrs.
Napolitano) each will control 20 minutes.
The Chair recognizes the gentleman from Nebraska (Mr. Osborne).
General Leave
Mr. OSBORNE. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days to revise and extend their remarks and
include extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Nebraska?
There was no objection.
Mr. OSBORNE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, S. 1066 introduced by Senator Kay Bailey Hutchison will
remove 19 acres of private property that has been mistakenly included
within the Coastal Barrier Resources System. An identical bill, H.R.
154, has been proposed by the gentleman from Texas (Mr. Paul). I
compliment him for his leadership on behalf of this measure.
Specifically, the Matagorda dunes subdivision in Matagorda, Texas,
was placed into the system despite the fact that a full complement of
infrastructure, including roads and electricity, existed prior to 1977
and that it exceeded the number of structures per acre rule that is
required for inclusion under the act.
For more than 20 years, these homeowners were told they were not
within the system and therefore eligible for both Federal flood
insurance and State wind insurance. These policies have now been
canceled, and it is essential that this mistake be corrected so that
their property can be protected from any future flooding problems. It
is difficult, if not impossible, to sell coastal property or obtain a
home mortgage without access to Federal flood insurance.
During the hearing before the Committee on Resources on this
legislation, the administration expressed strong support and a local
county judge testified, ``A mistake was made 21 years ago that placed
this little subdivision in CBRA. It does not matter who made the
mistake, but now since the mistake has come to light, please help us
fix it.''
Finally, the House version of this bill was unanimously approved by
the Committee on Resources. I urge my colleagues to support Senate
1066. I again compliment the gentleman from Texas (Mr. Paul) for
representing his constituents in such an effective way.
Mr. Speaker, I reserve the balance of my time.
Mrs. NAPOLITANO. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, S. 1066 is a noncontroversial piece of legislation that
is identical to companion legislation, H.R. 154, passed and reported by
the Committee on Resources earlier this year as was just addressed by
my colleague.
By all evidence this technical correction appears to be genuine and
needed to fix a legitimate error in the maps depicting the Matagorda
subdivision in Unit T-07. For this reason and because this legislation
would not undermine the policies of the Coastal Barrier Resources Act,
Members should not oppose this legislation, and I recommend they vote
for it.
Mr. PAUL. Mr. Speaker, I am pleased to support S. 1066, the Senate
version of my H.R. 154, which I introduced on the first day of the
108th Congress. This legislation fixes a mistake in the official Fish
and Wildlife Services' maps by removing a 19-acre area known as
Matagorda Dunes, in Matagorda County, Texas, from the John H. Chafee
Coastal Barrier Resources Act (COBRA). This change is fully supported
by the Fish and Wildlife Service. In fact, a Fish and Wildlife Service
created map, dated July 12, 2002, acknowledges the error.
This change will ensure property owners who had already begun
developing this area are able to obtain insurance. Congress never
intended to deny these landowners access to insurance. Matagorda Dunes
was included in COBRA as a result of a drafting error when the COBRA
maps were revised in the early eighties. Unless this mistake is fixed,
the result could be catastrophic for these property owners who invested
in developing Matagorda Dunes under the belief that the land was
excluded from COBRA. A failure to fix this mistake could also be quite
costly to the American taxpayers.
Fixing this mistake is also quite important to the people of
Matagorda County, which is why a county official traveled to Washington
to testify at a hearing on this bill in September. In conclusion, I
thank Chairman Pombo and my colleague from Texas, Senator Hutchison,
for their work on this issue and I urge my colleagues to support this
important bill.
Mr. Speaker, I yield back the balance of my time.
Mr. OSBORNE. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Nebraska (Mr. Osborne) that the House suspend the rules
and pass the Senate bill, S. 1066.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the Senate bill was passed.
A motion to reconsider was laid on the table.
____________________
CARPINTERIA AND MONTECITO WATER DISTRIBUTION SYSTEMS CONVEYANCE ACT OF
2003
Mr. OSBORNE. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 1648) to authorize the Secretary of the Interior to convey
certain water distribution systems of the Cachuma Project, California,
to the Carpinteria Valley Water District and the Montecito Water
District.
The Clerk read as follows:
H.R. 1648
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Carpinteria and Montecito
Water Distribution Systems Conveyance Act of 2003''.
SEC. 2. CONVEYANCE OF WATER DISTRIBUTION SYSTEMS OF THE
CACHUMA PROJECT, CALIFORNIA.
(a) In General.--The Secretary of the Interior--
(1) may convey to the Carpinteria Valley Water District,
located in Santa Barbara County, California, all right,
title, and interest of the United States in and to the
Carpinteria Distribution System of the Cachuma Project,
California, consistent with the terms and conditions set
forth in the agreement entitled ``Agreement Between the
United States and the Carpinteria Valley Water District to
Transfer Title to the Federally Owned Distribution System to
the Carpinteria Valley Water District'' (Agreement No. 00-XC-
20-0364); and
(2) may convey to the Montecito Water District, located in
Santa Barbara County, California, all right, title, and
interest of the United States in and to the Montecito Water
Distribution System of the Cachuma Project, California,
consistent with the terms and conditions set forth in the
agreement entitled ``Agreement Between the United States and
the Montecito Water District to Transfer Title to the
Federally Owned Distribution System to the Montecito Water
District'' (Agreement No. 01-XC-20-0365).
(b) Liability.--Effective upon the date of conveyance of a
distribution system under this section, the United States
shall not be held liable by any court for damages of any kind
arising out of any act, omission, or occurrence relating to
the distribution system, except for damages caused by acts of
negligence committed by the United States or by its employees
or agents prior to the date of conveyance. Nothing in this
section increases the liability of the United States beyond
that provided in chapter 171 of title 28, United States Code
(popularly known as the Federal Tort Claims Act) on the date
of the enactment of this Act.
(c) Benefits.--After conveyance of a water distribution
system to the Carpinteria Valley Water District or the
Montecito Water District under this section--
(1) such water distribution system shall not be considered
to be a part of a Federal reclamation project; and
(2) such water district shall not be eligible to receive
any benefits with respect to any facility comprising that
distribution system, except benefits that would be available
to a similarly situated person with respect to such a
facility that is not part of a Federal reclamation project.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
[[Page 29097]]
Nebraska (Mr. Osborne) and the gentlewoman from California (Mrs.
Napolitano) each will control 20 minutes.
The Chair recognizes the gentleman from Nebraska (Mr. Osborne).
General Leave
Mr. OSBORNE. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days to revise and extend their remarks and
include extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Nebraska?
There was no objection.
{time} 1600
Mr. OSBORNE. Mr. Speaker, I yield myself such time as I may consume.
This bill authorizes the Secretary of the Interior to transfer
specific water distribution systems of the Cachuma Project of the
Carpinteria Valley Water District and the Montecito Water District in
Santa Barbara County, California.
While this transfer would only apply to land and facilities and would
not affect the repayment obligations of the Federal Government, it will
help simplify the operation and maintenance of the districts' water
delivery systems and eliminate unnecessary paperwork. Both districts
have worked through all Federal requirements and need only to complete
the process with an act of Congress.
Transfers such as those included in this bill help shrink the size
and budget of Federal Government and help our communities manage our
water resources in a more efficient manner. I urge my colleagues to
support this consensus bill.
Mr. Speaker, I reserve the balance of my time.
Mrs. NAPOLITANO. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, H.R. 1648 simply authorizes the transfer of certain
features of the Bureau of Reclamation's Cachuma Project near Santa
Barbara, California, to the local water districts. Allowing the local
districts to take over parts of the project will help simplify the
operation and maintenance of the districts' water distribution systems.
I would like very much to commend the gentlewoman from California (Mrs.
Capps), my Democratic colleague and sponsor of this bill, who is unable
to be on the floor at this moment, for her efforts to get this very
important bill passed.
Mr. Speaker, H.R. 1648 is not controversial, and I urge my colleagues
to support this bill.
Mrs. CAPPS. Mr. Speaker, I rise in strong support of H.R. 1648, the
Carpinteria and Montecito Water Distribution Systems Conveyance Act of
2003--a bill I introduced that would authorize the title transfer of
federally owned water distribution systems in my congressional
district.
I want to commend my colleagues from California, the chairman of the
Resources Committee, Mr. Pombo, the chairman and ranking member of the
Subcommittee on Water and Power, Mr. Calvert and Mrs. Napolitano, as
well as the ranking member of the full Committee, Mr. Rahall for
expediting the consideration of this legislation in their respective
committees and for bringing H.R. 1648 before us today.
This legislation will authorize the title transfer of two federally
owned water distribution systems from the Bureau of Reclamation to the
Carpinteria Valley Water District and Montecito Water District, as
requested by the two Santa Barbara area Districts.
The purpose of the legislation is to simplify the operation and
maintenance of the Districts' water distribution systems and eliminate
unnecessary paperwork and consultation between the Districts and the
Bureau of Reclamation.
The Carpinteria Valley Water District and Montecito Water District,
which have operated and maintained the facilities proposed for transfer
since 1956 and 1995, respectively. The Districts have worked through
all requirements of the Bureau of Reclamation's title transfer process
including public meetings, fulfillment of their repayment obligations,
completion of an environmental assessment, which resulted in a finding
of no significant impact (FONSI), and compliance with all other
applicable laws. The only step remaining to complete the process is an
act of Congress enabling the Secretary of the Interior to transfer
title.
The proposed transfer would apply only to lands and facilities
associated with these facilities and would not affect the Districts'
existing water service contract with the Santa Barbara County Water
Agency nor the Federal government receipts from water deliveries under
the contract. In addition, the proposed transfer does not envision any
new physical modification or expansion of the service infrastructure.
Mr. Speaker, the proposed transfer of ownership would include the
following facilities:
Carpinteria: The distribution system consisting of 36 miles
of pipeline and laterals; Gobernador Reservoir; Shephard Mesa
Tank; Lateral 10L, Carpinteria and Shephard Mesa pumping
plants; several pressure regulating vaults located throughout
the system; fences and structures; and rights-of-way,
easements, leases and other property permitting access to the
Federal system.
Montecito: 9.5 miles of pipelines and laterals; the Asegra
Pumping Plant (a deactivated pumping plant connected to a
portion of lateral 3 located on Asegra Road); Ortega Ridge
Pumping plant located on Ortega Ridge Road; pressure
regulating vaults, fences and structures appurtenant to the
distribution system; and rights-of-way, easements, leases,
and other property permitting access to the Federal system.
Again, I would like to thank the Committee on Resources for
supporting this bill, and urge its immediate passage.
Mrs. NAPOLITANO. Mr. Speaker, I yield back the balance of my time.
Mr. OSBORNE. Mr. Speaker, I commend the gentlewoman from California
for her assistance through this process.
I have no further requests for time, and I yield back the balance of
my time.
The SPEAKER pro tempore (Mr. Culberson). The question is on the
motion offered by the gentleman from Nebraska (Mr. Osborne) that the
House suspend the rules and pass the bill, H.R. 1648.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________
HONORING THE 101ST AIRBORNE AT FORT CAMPBELL
(Mrs. BLACKBURN asked and was given permission to address the House
for 1 minute and to revise and extend her remarks.)
Mrs. BLACKBURN. Mr. Speaker, today I rise to talk a little bit about
the 101st Airborne at Fort Campbell, which is in Clarksville,
Tennessee, and in my district. And I have visited with General
Petreaus, commander of the 101st, and members of this elite group of
American soldiers in Mosul where they are working to stabilize Iraq.
Their work in Iraq is absolutely astounding. What they have
accomplished is astounding, and it is a testament to their training, to
their dedication, and to their love of liberty.
For the past 2 weeks the activity has absolutely broken our hearts.
We have lost some of our Nation's finest, and Fort Campbell has lost
some loved ones. And to the family, the friends, and their colleagues,
we offer our thoughts and our prayers. And we want them to know that
America is grateful not only for their service but certainly grateful
for their sacrifice.
Throughout the history of the 101st, this country has relied on these
brave soldiers, these brave defenders of freedom, to keep us free; and
today is no different. We ask that God bless America, that He bless our
Fort Campbell families and our fallen heroes.
____________________
RECESS
The SPEAKER pro tempore. Pursuant to clause 12(a) of rule I, the
Chair declares the House in recess until approximately 6:30 p.m.
Accordingly (at 4 o'clock and 4 minutes p.m.), the House stood in
recess until approximately 6:30 p.m.
____________________
{time} 1900
AFTER RECESS
The recess having expired, the House was called to order by the
Speaker pro tempore (Mr. Duncan) at 7 p.m.
[[Page 29098]]
____________________
ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, proceedings
will resume on motions to suspend the rules previously postponed.
Votes will be taken in the following order:
S.J. Res. 22, by the yeas and nays;
S.J. Res. 18, by the yeas and nays;
H. Con. Res. 299, by the yeas and nays.
The first electronic vote will be conducted as a 15-minute vote. The
remaining votes in this series will be conducted as 5-minute votes.
____________________
RECOGNIZING AGRICULTURAL RESEARCH SERVICE FOR 50 YEARS OF OUTSTANDING
SERVICE
The SPEAKER pro tempore. The pending business is the question of
suspending the rules and pass the Senate joint resolution, S.J. Res.
22.
The Clerk read the title of the Senate joint resolution.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Minnesota (Mr. Gutknecht) that the House suspend the
rules and pass the Senate joint resolution, S.J. Res. 22, on which the
yeas and nays are ordered.
The vote was taken by electronic device, and there were--yeas 332,
nays 0, not voting 102, as follows:
[Roll No. 620]
YEAS--332
Abercrombie
Alexander
Andrews
Baca
Baird
Baker
Ballance
Ballenger
Barrett (SC)
Bartlett (MD)
Barton (TX)
Bass
Bell
Berkley
Berry
Biggert
Bilirakis
Bishop (GA)
Bishop (NY)
Bishop (UT)
Blackburn
Boehlert
Boehner
Boozman
Boswell
Boucher
Bradley (NH)
Brady (PA)
Brady (TX)
Brown (OH)
Brown (SC)
Brown, Corrine
Burgess
Burns
Burton (IN)
Buyer
Camp
Cannon
Cantor
Capito
Capps
Cardin
Cardoza
Carter
Case
Castle
Chabot
Chocola
Clay
Coble
Conyers
Cooper
Costello
Cox
Cramer
Crane
Crenshaw
Crowley
Cubin
Culberson
Cummings
Cunningham
Davis (AL)
Davis (CA)
Davis (FL)
Davis (TN)
Davis, Jo Ann
Davis, Tom
Deal (GA)
DeFazio
DeGette
Delahunt
DeLauro
Deutsch
Diaz-Balart, L.
Diaz-Balart, M.
Dicks
Dingell
Doggett
Dooley (CA)
Duncan
Edwards
Ehlers
Emerson
Engel
English
Eshoo
Etheridge
Evans
Everett
Farr
Fattah
Feeney
Ferguson
Filner
Flake
Foley
Ford
Fossella
Franks (AZ)
Frelinghuysen
Frost
Gallegly
Garrett (NJ)
Gerlach
Gillmor
Gingrey
Goode
Goodlatte
Gordon
Goss
Granger
Graves
Green (TX)
Green (WI)
Greenwood
Grijalva
Gutknecht
Hall
Harman
Hastings (FL)
Hastings (WA)
Hayes
Hayworth
Hefley
Hensarling
Hill
Hinchey
Hinojosa
Hoeffel
Hoekstra
Holden
Holt
Honda
Hooley (OR)
Hostettler
Houghton
Hyde
Inslee
Israel
Jackson (IL)
Jefferson
John
Johnson (CT)
Johnson (IL)
Johnson, E. B.
Johnson, Sam
Jones (NC)
Jones (OH)
Kanjorski
Keller
Kelly
Kennedy (MN)
Kennedy (RI)
Kildee
Kilpatrick
King (NY)
Kingston
Kirk
Kleczka
Kline
Knollenberg
Kolbe
LaHood
Langevin
Lantos
Larsen (WA)
Larson (CT)
Latham
LaTourette
Leach
Lee
Levin
Lewis (CA)
Lewis (GA)
Lewis (KY)
Linder
LoBiondo
Lofgren
Lowey
Lucas (KY)
Lynch
Maloney
Manzullo
Markey
Marshall
Matheson
McCarthy (MO)
McCarthy (NY)
McCotter
McCrery
McDermott
McHugh
McInnis
McIntyre
McKeon
McNulty
Meehan
Meeks (NY)
Mica
Michaud
Millender-McDonald
Miller (FL)
Miller (NC)
Miller, Gary
Moore
Moran (KS)
Moran (VA)
Murphy
Musgrave
Nadler
Napolitano
Nethercutt
Neugebauer
Ney
Northup
Norwood
Nunes
Oberstar
Obey
Olver
Osborne
Ose
Otter
Owens
Pallone
Pascrell
Pastor
Paul
Payne
Pearce
Pence
Peterson (MN)
Petri
Pickering
Platts
Pomeroy
Porter
Portman
Price (NC)
Pryce (OH)
Putnam
Rahall
Ramstad
Regula
Rehberg
Renzi
Rodriguez
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Ross
Rothman
Roybal-Allard
Royce
Ruppersberger
Rush
Ryan (OH)
Ryan (WI)
Sabo
Sanchez, Loretta
Sandlin
Saxton
Schiff
Schrock
Scott (GA)
Scott (VA)
Sensenbrenner
Shadegg
Shaw
Shays
Sherman
Sherwood
Shimkus
Shuster
Simpson
Skelton
Slaughter
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Solis
Souder
Spratt
Stark
Stearns
Stenholm
Strickland
Stupak
Sullivan
Tancredo
Tauscher
Tauzin
Taylor (MS)
Terry
Thomas
Thompson (CA)
Thompson (MS)
Thornberry
Tiahrt
Tiberi
Toomey
Towns
Turner (OH)
Turner (TX)
Udall (CO)
Udall (NM)
Upton
Van Hollen
Visclosky
Vitter
Walden (OR)
Walsh
Wamp
Watson
Watt
Waxman
Weldon (FL)
Weldon (PA)
Weller
Whitfield
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Woolsey
Wu
Young (AK)
Young (FL)
NOT VOTING--102
Ackerman
Aderholt
Akin
Allen
Bachus
Baldwin
Beauprez
Becerra
Bereuter
Berman
Blumenauer
Blunt
Bonilla
Bonner
Bono
Boyd
Brown-Waite, Ginny
Burr
Calvert
Capuano
Carson (IN)
Carson (OK)
Clyburn
Cole
Collins
Davis (IL)
DeLay
DeMint
Doolittle
Doyle
Dreier
Dunn
Emanuel
Fletcher
Forbes
Frank (MA)
Gephardt
Gibbons
Gilchrest
Gonzalez
Gutierrez
Harris
Hart
Herger
Hobson
Hoyer
Hulshof
Hunter
Isakson
Issa
Istook
Jackson-Lee (TX)
Janklow
Jenkins
Kaptur
Kind
King (IA)
Kucinich
Lampson
Lipinski
Lucas (OK)
Majette
Matsui
McCollum
McGovern
Meek (FL)
Menendez
Miller (MI)
Miller, George
Mollohan
Murtha
Myrick
Neal (MA)
Nussle
Ortiz
Oxley
Pelosi
Peterson (PA)
Pitts
Pombo
Quinn
Radanovich
Rangel
Reyes
Reynolds
Rogers (AL)
Ryun (KS)
Sanchez, Linda T.
Sanders
Schakowsky
Serrano
Sessions
Simmons
Sweeney
Tanner
Taylor (NC)
Tierney
Velazquez
Waters
Weiner
Wexler
Wynn
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (Mr. Duncan) (during the vote). There are 2
minutes remaining in this vote.
{time} 1922
So (two-thirds having voted in favor thereof) the rules were
suspended and the Senate joint resolution was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________
ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, the
remainder of votes in this series will be conducted as 5-minute votes.
____________________
COMMENDING INSPECTORS GENERAL FOR EFFORTS DURING PAST 25 YEARS
The SPEAKER pro tempore. The pending business is the question of
suspending the rules and passing the Senate joint resolution, S.J. Res.
18.
The Clerk read the title of the Senate joint resolution.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Tennessee (Mr. Duncan) that the House suspend the rules
and pass the Senate joint resolution, S.J. Res. 18, on which the yeas
and nays are ordered.
This will be a 5-minute vote.
The vote was taken by electronic device, and there were--yeas 326,
nays 3, not voting 105, as follows:
[Roll No. 621]
YEAS--326
Abercrombie
Alexander
Andrews
Baca
Baird
Baker
Ballance
Ballenger
Barrett (SC)
Bartlett (MD)
Barton (TX)
Bass
Bell
Berkley
Berry
Biggert
Bilirakis
Bishop (GA)
Bishop (NY)
Bishop (UT)
Blackburn
Boehlert
Boehner
Boozman
Boswell
Boucher
Bradley (NH)
Brady (PA)
Brady (TX)
Brown (OH)
Brown (SC)
Brown, Corrine
Burgess
Burns
Burton (IN)
Buyer
Camp
Cannon
Cantor
Capito
Capps
Cardin
Cardoza
Carter
Case
Castle
Chabot
Clay
Coble
Conyers
Cooper
Costello
Cox
Cramer
Crane
Crenshaw
Crowley
Cubin
Culberson
Cummings
Cunningham
Davis (AL)
Davis (CA)
Davis (FL)
Davis (TN)
Davis, Jo Ann
Davis, Tom
Deal (GA)
DeFazio
DeGette
Delahunt
DeLauro
Deutsch
Diaz-Balart, L.
Diaz-Balart, M.
Dicks
Dingell
Doggett
Dooley (CA)
Duncan
Edwards
[[Page 29099]]
Ehlers
Emerson
Engel
English
Eshoo
Etheridge
Evans
Everett
Farr
Fattah
Feeney
Ferguson
Filner
Flake
Foley
Ford
Fossella
Franks (AZ)
Frelinghuysen
Frost
Gallegly
Garrett (NJ)
Gerlach
Gillmor
Gingrey
Goode
Goodlatte
Gordon
Goss
Granger
Graves
Green (TX)
Green (WI)
Greenwood
Grijalva
Gutknecht
Hall
Harman
Hastings (FL)
Hastings (WA)
Hayes
Hayworth
Hefley
Hensarling
Hill
Hinchey
Hinojosa
Hoeffel
Hoekstra
Holden
Holt
Honda
Hooley (OR)
Hostettler
Houghton
Hyde
Inslee
Israel
Jackson (IL)
Janklow
Jefferson
John
Johnson (CT)
Johnson (IL)
Johnson, E. B.
Johnson, Sam
Jones (NC)
Jones (OH)
Kanjorski
Keller
Kelly
Kennedy (MN)
Kennedy (RI)
Kildee
Kilpatrick
King (NY)
Kingston
Kirk
Kleczka
Kline
Knollenberg
LaHood
Langevin
Lantos
Larsen (WA)
Larson (CT)
Latham
LaTourette
Leach
Lee
Levin
Lewis (CA)
Lewis (GA)
Lewis (KY)
Linder
LoBiondo
Lofgren
Lucas (KY)
Lynch
Maloney
Manzullo
Markey
Marshall
Matheson
McCarthy (MO)
McCarthy (NY)
McCotter
McCrery
McDermott
McHugh
McInnis
McIntyre
McKeon
McNulty
Meehan
Meeks (NY)
Mica
Michaud
Millender-McDonald
Miller (NC)
Miller, Gary
Moore
Moran (KS)
Moran (VA)
Murphy
Musgrave
Nadler
Napolitano
Nethercutt
Neugebauer
Ney
Northup
Norwood
Nunes
Oberstar
Obey
Olver
Osborne
Ose
Otter
Owens
Pallone
Pascrell
Pastor
Paul
Payne
Pearce
Pence
Peterson (MN)
Petri
Pickering
Platts
Pomeroy
Porter
Portman
Price (NC)
Pryce (OH)
Putnam
Rahall
Ramstad
Regula
Rehberg
Renzi
Rodriguez
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Ross
Rothman
Roybal-Allard
Royce
Ruppersberger
Rush
Ryan (OH)
Ryan (WI)
Sabo
Sanchez, Loretta
Sandlin
Saxton
Schiff
Schrock
Scott (GA)
Scott (VA)
Sensenbrenner
Shadegg
Shaw
Shays
Sherman
Sherwood
Shimkus
Shuster
Simpson
Skelton
Slaughter
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Solis
Spratt
Stark
Stearns
Strickland
Stupak
Sullivan
Tancredo
Tauscher
Tauzin
Taylor (MS)
Terry
Thomas
Thompson (CA)
Thompson (MS)
Thornberry
Tiahrt
Tiberi
Toomey
Towns
Turner (OH)
Turner (TX)
Udall (CO)
Udall (NM)
Upton
Van Hollen
Visclosky
Vitter
Walden (OR)
Wamp
Watson
Watt
Waxman
Weldon (FL)
Weldon (PA)
Weller
Whitfield
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Woolsey
Wu
Young (AK)
Young (FL)
NAYS--3
Chocola
Miller (FL)
Souder
NOT VOTING--105
Ackerman
Aderholt
Akin
Allen
Bachus
Baldwin
Beauprez
Becerra
Bereuter
Berman
Blumenauer
Blunt
Bonilla
Bonner
Bono
Boyd
Brown-Waite, Ginny
Burr
Calvert
Capuano
Carson (IN)
Carson (OK)
Clyburn
Cole
Collins
Davis (IL)
DeLay
DeMint
Doolittle
Doyle
Dreier
Dunn
Emanuel
Fletcher
Forbes
Frank (MA)
Gephardt
Gibbons
Gilchrest
Gonzalez
Gutierrez
Harris
Hart
Herger
Hobson
Hoyer
Hulshof
Hunter
Isakson
Issa
Istook
Jackson-Lee (TX)
Jenkins
Kaptur
Kind
King (IA)
Kolbe
Kucinich
Lampson
Lipinski
Lowey
Lucas (OK)
Majette
Matsui
McCollum
McGovern
Meek (FL)
Menendez
Miller (MI)
Miller, George
Mollohan
Murtha
Myrick
Neal (MA)
Nussle
Ortiz
Oxley
Pelosi
Peterson (PA)
Pitts
Pombo
Quinn
Radanovich
Rangel
Reyes
Reynolds
Rogers (AL)
Ryun (KS)
Sanchez, Linda T.
Sanders
Schakowsky
Serrano
Sessions
Simmons
Stenholm
Sweeney
Tanner
Taylor (NC)
Tierney
Velazquez
Walsh
Waters
Weiner
Wexler
Wynn
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (during the vote). There are 2 minutes
remaining in this vote.
{time} 1931
So (two-thirds having voted in favor thereof) the rules were
suspended and the Senate joint resolution was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________
PERSONAL EXPLANATION
Mrs. BONO. Mr. Speaker, on November 17, 2003, had I been present, I
would have voted ``yes'' on S.J. Res. 18 and S.J. Res. 22.
____________________
HONORING MR. SARGENT SHRIVER
The SPEAKER pro tempore (Mr. Duncan). The pending business is the
question of suspending the rules and agreeing to the concurrent
resolution, H. Con. Res. 299.
The Clerk read the title of the concurrent resolution.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Tennessee (Mr. Duncan) that the House suspend the rules
and agree to the concurrent resolution, H. Con. Res. 299, on which the
yeas and nays are ordered.
This will be a 5-minute vote.
The vote was taken by electronic device, and there were--yeas 325,
nays 3, not voting 106, as follows:
[Roll No. 622]
YEAS--325
Abercrombie
Alexander
Andrews
Baca
Baird
Baker
Ballance
Ballenger
Barrett (SC)
Bartlett (MD)
Barton (TX)
Bass
Bell
Berkley
Berry
Biggert
Bilirakis
Bishop (GA)
Bishop (NY)
Bishop (UT)
Blackburn
Boehlert
Boehner
Boozman
Boswell
Boucher
Bradley (NH)
Brady (PA)
Brady (TX)
Brown (OH)
Brown (SC)
Brown, Corrine
Burgess
Burns
Burton (IN)
Buyer
Camp
Cannon
Cantor
Capito
Capps
Cardin
Cardoza
Carter
Case
Castle
Chabot
Chocola
Clay
Coble
Conyers
Cooper
Costello
Cox
Cramer
Crane
Crenshaw
Crowley
Cubin
Culberson
Cummings
Cunningham
Davis (AL)
Davis (CA)
Davis (FL)
Davis (TN)
Davis, Jo Ann
Davis, Tom
Deal (GA)
DeFazio
DeGette
Delahunt
DeLauro
Deutsch
Diaz-Balart, L.
Diaz-Balart, M.
Dicks
Dingell
Doggett
Dooley (CA)
Duncan
Edwards
Ehlers
Emerson
Engel
English
Eshoo
Etheridge
Evans
Everett
Farr
Fattah
Feeney
Ferguson
Filner
Flake
Foley
Ford
Fossella
Franks (AZ)
Frelinghuysen
Frost
Gallegly
Garrett (NJ)
Gerlach
Gillmor
Gingrey
Goode
Goodlatte
Gordon
Goss
Granger
Graves
Green (TX)
Green (WI)
Greenwood
Grijalva
Gutknecht
Hall
Harman
Hastings (FL)
Hastings (WA)
Hayes
Hayworth
Hensarling
Hill
Hinchey
Hinojosa
Hoeffel
Hoekstra
Holden
Holt
Honda
Hooley (OR)
Hostettler
Houghton
Hulshof
Hyde
Inslee
Israel
Jackson (IL)
Janklow
Jefferson
Johnson (CT)
Johnson (IL)
Johnson, E. B.
Jones (NC)
Jones (OH)
Kanjorski
Keller
Kelly
Kennedy (MN)
Kennedy (RI)
Kildee
Kilpatrick
King (NY)
Kingston
Kirk
Kleczka
Kline
Knollenberg
Kolbe
LaHood
Langevin
Lantos
Larsen (WA)
Larson (CT)
Latham
LaTourette
Leach
Lee
Levin
Lewis (CA)
Lewis (GA)
Lewis (KY)
Linder
LoBiondo
Lowey
Lucas (KY)
Lynch
Maloney
Manzullo
Markey
Marshall
Matheson
McCarthy (MO)
McCarthy (NY)
McCotter
McCrery
McDermott
McHugh
McInnis
McIntyre
McKeon
McNulty
Meehan
Meeks (NY)
Mica
Michaud
Millender-McDonald
Miller (FL)
Miller (NC)
Miller, Gary
Moore
Moran (KS)
Moran (VA)
Murphy
Musgrave
Nadler
Napolitano
Nethercutt
Neugebauer
Ney
Northup
Norwood
Nunes
Oberstar
Obey
Olver
Osborne
Ose
Otter
Owens
Pallone
Pascrell
Pastor
Payne
Pearce
Pence
Peterson (MN)
Petri
Platts
Pomeroy
Porter
Portman
Price (NC)
Pryce (OH)
Putnam
Rahall
Ramstad
Regula
Rehberg
Renzi
Rodriguez
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Ross
Rothman
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Ryan (WI)
Sabo
Sanchez, Loretta
Sandlin
Saxton
Schiff
Schrock
Scott (GA)
Scott (VA)
Sensenbrenner
Shadegg
Shaw
Shays
Sherman
Sherwood
Shimkus
Shuster
Simpson
Skelton
Slaughter
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Solis
Souder
Spratt
Stark
Stearns
Strickland
Stupak
Sullivan
Tancredo
Tauscher
Tauzin
Taylor (MS)
Terry
Thomas
Thompson (CA)
Thompson (MS)
Thornberry
Tiahrt
Tiberi
Toomey
Towns
Turner (OH)
Turner (TX)
Udall (CO)
Udall (NM)
Upton
Van Hollen
Visclosky
Vitter
Walden (OR)
Walsh
Wamp
Watson
Watt
Waxman
Weldon (FL)
Weldon (PA)
Weller
Whitfield
Wicker
[[Page 29100]]
Wilson (NM)
Wilson (SC)
Wolf
Woolsey
Wu
Young (AK)
NAYS--3
Hefley
Johnson, Sam
Paul
NOT VOTING--106
Ackerman
Aderholt
Akin
Allen
Bachus
Baldwin
Beauprez
Becerra
Bereuter
Berman
Blumenauer
Blunt
Bonilla
Bonner
Bono
Boyd
Brown-Waite, Ginny
Burr
Calvert
Capuano
Carson (IN)
Carson (OK)
Clyburn
Cole
Collins
Davis (IL)
DeLay
DeMint
Doolittle
Doyle
Dreier
Dunn
Emanuel
Fletcher
Forbes
Frank (MA)
Gephardt
Gibbons
Gilchrest
Gonzalez
Gutierrez
Harris
Hart
Herger
Hobson
Hoyer
Hunter
Isakson
Issa
Istook
Jackson-Lee (TX)
Jenkins
John
Kaptur
Kind
King (IA)
Kucinich
Lampson
Lipinski
Lofgren
Lucas (OK)
Majette
Matsui
McCollum
McGovern
Meek (FL)
Menendez
Miller (MI)
Miller, George
Mollohan
Murtha
Myrick
Neal (MA)
Nussle
Ortiz
Oxley
Pelosi
Peterson (PA)
Pickering
Pitts
Pombo
Quinn
Radanovich
Rangel
Reyes
Reynolds
Rogers (AL)
Royce
Ryun (KS)
Sanchez, Linda T.
Sanders
Schakowsky
Serrano
Sessions
Simmons
Stenholm
Sweeney
Tanner
Taylor (NC)
Tierney
Velazquez
Waters
Weiner
Wexler
Wynn
Young (FL)
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (during the vote). Members are advised 2
minutes remain in this vote.
{time} 1938
So (two-thirds having voted in favor thereof) the rules were
suspended and the concurrent resolution was agreed to.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________
PERSONAL EXPLANATION
Mr. COLLINS. Mr. Speaker, I was unavoidably detained and not present
on rollcall vote 620, recognizing the Agricultural Research of the
Department of Agriculture (S.J. Res. 22); rollcall vote 621, commending
the Inspectors General (S.J. Res. 18); and rollcall vote 622, honoring
Mr. Sargent Shriver (H. Con. Res. 299). Had I been present, I would
have voted ``yea'' for rollcall votes 620, 621, 622.
____________________
PERSONAL EXPLANATION
Mr. OXLEY. Mr. Speaker, I was returning from an official delegation
trip to Iraq on Monday evening, and was absent from the House floor
during the rollcall votes on S.J. Res. 22, recognizing the Agricultural
Research Service, S.J. Res. 18, commending the service of Inspectors
General; and H. Con. Res. 299, honoring Sargent Shriver. Had I been
present, I would have voted ``aye'' on each of these resolutions.
____________________
HOUR OF MEETING ON TUESDAY, NOVEMBER 18, 2003
Mr. LINDER. Mr. Speaker, I move that when the House adjourns today,
it adjourn to meet at 10 a.m. tomorrow for morning hour debates.
The SPEAKER pro tempore. The motion is not debatable.
The question is on the motion offered by the gentleman from Georgia
(Mr. Linder).
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Recorded Vote
Ms. DeGETTE. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 296,
noes 25, not voting 113, as follows:
[Roll No. 623]
AYES--296
Abercrombie
Alexander
Andrews
Baca
Baird
Baker
Ballance
Ballenger
Barrett (SC)
Bartlett (MD)
Barton (TX)
Bass
Bell
Berkley
Berry
Biggert
Bilirakis
Bishop (GA)
Bishop (NY)
Bishop (UT)
Blackburn
Boehlert
Boehner
Boozman
Boswell
Boucher
Bradley (NH)
Brady (PA)
Brady (TX)
Brown (SC)
Brown, Corrine
Burgess
Burton (IN)
Buyer
Camp
Cannon
Cantor
Capito
Cardin
Cardoza
Carter
Case
Castle
Chabot
Chocola
Clay
Coble
Conyers
Costello
Cox
Cramer
Crane
Crenshaw
Crowley
Cubin
Culberson
Cummings
Cunningham
Davis (AL)
Davis (CA)
Davis (FL)
Davis (TN)
Davis, Jo Ann
Davis, Tom
Deal (GA)
DeGette
Delahunt
DeLauro
Deutsch
Diaz-Balart, L.
Diaz-Balart, M.
Dicks
Dingell
Doggett
Dooley (CA)
Duncan
Edwards
Ehlers
Emerson
Engel
English
Eshoo
Etheridge
Evans
Everett
Farr
Fattah
Feeney
Ferguson
Foley
Ford
Fossella
Franks (AZ)
Frelinghuysen
Frost
Gallegly
Garrett (NJ)
Gerlach
Gillmor
Goode
Goodlatte
Gordon
Goss
Granger
Graves
Green (WI)
Greenwood
Gutknecht
Hall
Harman
Hastings (WA)
Hayes
Hayworth
Hefley
Hensarling
Hill
Hinchey
Hinojosa
Hoeffel
Hoekstra
Holden
Holt
Honda
Houghton
Hulshof
Hyde
Inslee
Israel
Jackson (IL)
Janklow
Jefferson
John
Johnson (CT)
Johnson (IL)
Johnson, E. B.
Johnson, Sam
Jones (OH)
Kanjorski
Keller
Kelly
Kennedy (MN)
Kennedy (RI)
Kildee
Kilpatrick
King (NY)
Kingston
Kirk
Kleczka
Kline
Knollenberg
Kolbe
LaHood
Langevin
Lantos
Larsen (WA)
Larson (CT)
Latham
LaTourette
Leach
Levin
Lewis (CA)
Lewis (KY)
Linder
LoBiondo
Lowey
Lucas (KY)
Lynch
Maloney
Manzullo
Markey
Marshall
Matheson
McCarthy (MO)
McCarthy (NY)
McCotter
McCrery
McHugh
McIntyre
McKeon
McNulty
Meehan
Meeks (NY)
Mica
Michaud
Millender-McDonald
Miller (FL)
Miller, Gary
Moran (KS)
Moran (VA)
Murphy
Musgrave
Nadler
Napolitano
Nethercutt
Ney
Northup
Norwood
Nunes
Ose
Otter
Owens
Pallone
Pascrell
Pastor
Paul
Payne
Pearce
Pence
Peterson (MN)
Petri
Pickering
Platts
Pomeroy
Porter
Portman
Price (NC)
Pryce (OH)
Putnam
Ramstad
Regula
Rehberg
Renzi
Rodriguez
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Roybal-Allard
Royce
Ruppersberger
Ryan (OH)
Ryan (WI)
Sabo
Sanchez, Loretta
Sandlin
Saxton
Schiff
Schrock
Scott (GA)
Scott (VA)
Sensenbrenner
Shadegg
Shaw
Shays
Sherman
Sherwood
Shimkus
Shuster
Simpson
Skelton
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Solis
Souder
Spratt
Stark
Stearns
Strickland
Stupak
Sullivan
Tancredo
Tauscher
Tauzin
Taylor (MS)
Terry
Thomas
Thompson (CA)
Thornberry
Tiahrt
Tiberi
Toomey
Towns
Turner (OH)
Turner (TX)
Udall (NM)
Upton
Visclosky
Vitter
Walden (OR)
Walsh
Wamp
Watson
Waxman
Weldon (FL)
Weldon (PA)
Weller
Whitfield
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Wu
Young (AK)
NOES--25
Brown (OH)
Capps
Cooper
DeFazio
Filner
Green (TX)
Grijalva
Hastings (FL)
Hooley (OR)
Lee
McDermott
Miller (NC)
Moore
Oberstar
Obey
Olver
Rahall
Ross
Rothman
Slaughter
Thompson (MS)
Udall (CO)
Van Hollen
Watt
Woolsey
NOT VOTING--113
Ackerman
Aderholt
Akin
Allen
Bachus
Baldwin
Beauprez
Becerra
Bereuter
Berman
Blumenauer
Blunt
Bonilla
Bonner
Bono
Boyd
Brown-Waite, Ginny
Burns
Burr
Calvert
Capuano
Carson (IN)
Carson (OK)
Clyburn
Cole
Collins
Davis (IL)
DeLay
DeMint
Doolittle
Doyle
Dreier
Dunn
Emanuel
Flake
Fletcher
Forbes
Frank (MA)
Gephardt
Gibbons
Gilchrest
Gingrey
Gonzalez
Gutierrez
Harris
Hart
Herger
Hobson
Hostettler
Hoyer
Hunter
Isakson
Issa
Istook
Jackson-Lee (TX)
Jenkins
Jones (NC)
Kaptur
Kind
King (IA)
Kucinich
Lampson
Lewis (GA)
Lipinski
Lofgren
Lucas (OK)
Majette
Matsui
McCollum
McGovern
McInnis
Meek (FL)
Menendez
Miller (MI)
Miller, George
Mollohan
Murtha
Myrick
Neal (MA)
Neugebauer
Nussle
Ortiz
Osborne
Oxley
Pelosi
Peterson (PA)
Pitts
Pombo
Quinn
Radanovich
Rangel
Reyes
Reynolds
Rogers (AL)
Rush
Ryun (KS)
Sanchez, Linda T.
Sanders
Schakowsky
Serrano
Sessions
Simmons
Stenholm
Sweeney
Tanner
Taylor (NC)
Tierney
Velazquez
Waters
Weiner
Wexler
Wynn
Young (FL)
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (Mr. Neugebauer) (during the vote). Members
are advised that 2 minutes remain in this vote.
[[Page 29101]]
{time} 1954
So the motion was agreed to.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________
PERSONAL EXPLANATION
Mr. EMANUEL. Mr. Speaker, due to a previously scheduled commitment, I
missed rollcall votes 620 through 623 on Monday, November 17. Had I
been present, I would have voted ``yes'' on each measure.
____________________
ANNOUNCEMENT OF INTENTION TO OFFER MOTION TO INSTRUCT CONFEREES ON H.R.
1, MEDICARE PRESCRIPTION DRUG AND MODERNIZATION ACT OF 2003
Ms. BERKLEY. Mr. Speaker, under rule XXII, clause 7(c), I hereby
announce my intention to offer a motion to instruct on H.R. 1, the
prescription drug bill.
The form of the motion is as follows:
I move that the managers on the part of the House at the
conference on the disagreeing votes of the two Houses on the
Senate amendment to the bill, H.R. 1, be instructed as
follows:
(1) To reject the provisions of subtitle C of title II of
the House bill.
(2) To reject the provisions of section 231 of the Senate
amendment.
(3) Within the scope of conference, to increase payments
for physician services by an amount equal to the amount of
savings attributable to the rejection of the aforementioned
provisions.
(4) To insist upon section 601 of the House bill.
____________________
ANNOUNCEMENT OF INTENTION TO OFFER MOTION TO INSTRUCT CONFEREES ON H.R.
2660, DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION,
AND RELATED AGENCIES APPROPRIATIONS ACT, 2004
Mr. KENNEDY of Rhode Island. Mr. Speaker, pursuant to clause 7(c) of
House rule XXII, I hereby notify the House of my intention tomorrow to
offer the following motion to instruct House conferees on H.R. 2660,
the fiscal year 2004 Labor, Health and Human Services, Education and
Related Agencies Appropriations Act.
The form of the motion is as follows:
I move that the managers on the part of the House at the
conference on the disagreeing votes of the two Houses on the
bill, H.R. 2660, be instructed to insist on the highest
funding levels possible for nutrition programs for our
Nation's seniors authorized by the Older Americans Act.
____________________
ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, the Chair
will postpone further proceedings today on additional motions to
suspend the rules on which a recorded vote or the yeas and nays are
ordered, or on which the vote is objected to under clause 6 of rule XX.
Record votes on postponed questions will be taken tomorrow.
____________________
CONGRATULATING JOHN GAGLIARDI ON OCCASION OF HIS BECOMING ALL-TIME
WINNINGEST COACH IN COLLEGIATE FOOTBALL HISTORY
Mr. KLINE. Mr. Speaker, I move to suspend the rules and agree to the
resolution (H. Res. 438) congratulating John Gagliardi, football coach
of St. John's University, on the occasion of his becoming the all-time
winningest coach in collegiate football history.
The Clerk read as follows:
H. Res. 438
Whereas John Gagliardi began his coaching career in 1943 at
the age of 16 when his high school football coach was drafted
and John Gagliardi asked to take over his position;
Whereas John Gagliardi won four conference titles during
the six years he coached high school football;
Whereas John Gagliardi graduated from Colorado College in
1949 and began coaching football, basketball, and baseball at
Carroll College in Helena, Montana, winning titles in all
three sports;
Whereas John Gagliardi took over the football program at
St. John's University in Collegeville, Minnesota, in 1953 and
the football team won the Minnesota Intercollegiate Athletic
Conference title in his first year as coach;
Whereas by the end of the 2002 season, John Gagliardi had
won three national championships, coached 25 conference title
teams, appeared in 45 post-season games and compiled a 400-
114-11 record during his 50 years at St. John's University;
Whereas under the leadership of John Gagliardi, St. John's
University has been nationally ranked 37 times in the past 39
years, and the university set a record with a 61.5 points per
game average in 1993;
Whereas over 150 students participate in the St. John's
University football program each year and every player
dresses for home games;
Whereas John Gagliardi's coaching methods follow the
``Winning with No's'' theory: no blocking sleds or dummies,
no whistles, no tackling in practices, no athletic
scholarships, and no long practices;
Whereas John Gagliardi has coached over 5,000 players
during his 50 years at St. John's University, and no player
has failed to graduate and most have graduated in four years;
Whereas, in 1993, the John Gagliardi trophy was unveiled,
and it is given each year to the most outstanding Division
III football player;
Whereas on November 1, 2003, John Gagliardi tied Grambling
University coach Eddie Robinson's record of 408 wins with a
15 to 12 victory over the University of St. Thomas;
Whereas on November 8, 2003, John Gagliardi broke Eddie
Robinson's record with a 29 to 26 victory over Bethel
College;
Whereas John Gagliardi is admired by his players, as well
as by the students, faculty, and fans of St. John's
University for his ability to motivate and inspire;
Whereas students who take his course, Theory of Football,
credit John Gagliardi for teaching them more about life than
about football;
Whereas those closest to John Gagliardi will tell you that
football is only part of his life--he values the time he
spends with Peg, his wife of 47 years, and their four
children; and
Whereas the on- and off-the-field accomplishments of John
Gagliardi have placed him in an elite club that includes the
best coaches in history: Now, therefore, be it
Resolved, That the House of Representatives congratulates
John Gagliardi, football coach of St. John's University in
Collegeville, Minnesota, on becoming the all-time winningest
coach in collegiate football history.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Minnesota (Mr. Kline) and the gentlewoman from California (Ms. Woolsey)
each will control 20 minutes.
The Chair recognizes the gentleman from Minnesota (Mr. Kline).
General Leave
Mr. KLINE. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks on
H. Res. 438.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Minnesota?
There was no objection.
Mr. KLINE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise today in support of House Resolution 438. I would
like to thank my colleague, the gentleman from Minnesota (Mr. Kennedy),
for bringing this resolution forward. Mr. Speaker, this resolution
recognizes the achievement of Coach John Gagliardi of St. John's
University for becoming the all-time winningest coach in collegiate
football history.
Coach Gagliardi--John to his players, colleagues and friends--has
long been a force in college athletics and in life. In his 51 years at
St. Johns, John has found great success on the field, leading St.
John's to 23 conference titles and the winningest record in Division
III history.
His performance as a coach is impressive, but it tells only one side
of the story of this great man. John has invested in thousands of lives
over his career in the coaching business. The success earned by the St.
John's team reflects the dedication he inspires in each player. John's
investment in these young lives is, to him, the most important
contribution he can make, and to them the most important reward they
will receive.
I extend my congratulations to Coach John Gagliardi on this important
day for him and for the St. John's community. I am happy to join my
colleagues in honoring a great man and wishing him continued success.
I ask my colleagues to support this resolution.
Mr. Speaker, I reserve the balance of my time.
[[Page 29102]]
Ms. WOOLSEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H. Res. 438. This resolution honors
John Gagliardi, the football coach at St. Johns University. Coach
Gagliardi is the winningest coach in college football history. This
month he overtook the legendary Eddie Robinson by winning the 409th
football game of his career. This record puts Coach Gagliardi at the
very top of his profession. It should come as no surprise that the
students, the student athletes, the faculty and fans of St. John's
University greatly admire Coach Gagliardi. Fortunately, we are not only
honoring Coach Gagliardi for his winning ways but also his commitment
to his school, his team and, most importantly, his players and their
education.
Coach Gagliardi has coached over 5,000 players during his 50 years at
St. John's. Over that time, none of his players have failed to graduate
and most have graduated within 4 years.
{time} 2000
This is an amazing feat in today's world of college athletes. Coach
Gagliardi more than deserves the honor we are bestowing on him today.
Mr. Speaker, I urge all Members of the House to support this
resolution.
Mr. Speaker, I reserve the balance of my time.
Mr. KLINE. Mr. Speaker, I yield 10 minutes to the gentleman from
Minnesota (Mr. Kennedy).
Mr. KENNEDY of Minnesota. Mr. Speaker, I thank the gentleman for
yielding me this time, and I rise today to honor St. John's
University's Coach John Gagliardi for becoming the winningest college
football coach ever. After beating archrival St. Thomas to tie Eddie
Robinson's record of 408 wins at Grambling, Coach Gagliardi's Johnnies
set a new record by defeating nationally ranked Bethel in a hard-fought
game before over 13,000 fans in the natural bowl of Clemens Stadium.
That is quite a crowd, since the stadium only seats 5,500.
As a graduate of St. John's, I was honored to be able to join John at
the White House today where the President rightly praised both his
achievement and his character. Both St. John's University and Coach
John Gagliardi are quite special; and as one might expect from a
relationship stretching over half a century, they are special for many
of the same reasons. Indeed, the similarities begin with both the
university and the coach being named ultimately after St. John.
St. John's, with 1,900 male students, is one of the oldest
universities in the State of Minnesota, having been founded by
Benedictine monks in 1856. It sits on a beautiful campus of 2,400 acres
with four lakes on campus. Their sister school, St. Benedict's, with
2,000 students, was founded by Benedictine nuns in 1913.
The Benedictines live according to the Rule of St. Benedict with an
emphasis on faithfulness, community, study, work, prayer, and humility.
They have infused these values into the culture of St. John's and St.
Ben's as well. Community is important to Johnnie and Bennie alumni, who
are among the most loyal anywhere.
Coach Gagliardi has personified these values. After coaching 4 years
at Carroll College in Helena, Montana, John has coached at St. John's
for the last 51 seasons. That record of faithfulness has been matched
with 47 years of marriage to the partner of his life, his wife, Peggy.
The Gagliardi family has been intertwined with the St. John's
community. They live on campus, and all four of their children have
attended St. John's or St. Ben's. I attended St. John's with their son
John, Jr. Their son Jim is one of St. John's assistant coaches and
joined him today at the White House. Since he is assistant coach there
at St. John's, the President said that he appreciated sons following in
their father's footsteps.
Consistent with John's commitment to community, he cuts no one from
games, from coming out for football, and over 150 players regularly
suit up for home games. In fact, St. John's was recently penalized for
having two players with the same number on the field, a penalty few
teams ever have to worry about. And while Gagliardi is acclaimed for
his perennial success on the football field, he is equally loved and
admired at St. John's for his commitment to making sure that his
players get a quality education.
Consistent with his commitment to study, I am proud to say that no
player has ever failed to graduate in John's over a half century of
coaching. Every class of graduating football players includes those who
go on to graduate, law, or medical school. St. John's and St. Ben's,
which are ranked as among the best Catholic national liberal arts
colleges in the country by ``U.S. News and World Report,'' match
Gagliardi's commitment to educational excellence. The Benedictine monks
have long stressed work and in their early days were almost entirely
self-sufficient, growing and building most of what they needed. Coach
Gagliardi's personal work ethic is reflected in his intent to continue
coaching even after he has achieved this important milestone.
Yet John has a nontraditional view towards work in the form of
practice. His practices involve no blocking sleds, no dummies, no
whistles, no pads, no tackling, and no mandatory weight training. John
does not conduct spring practices, and he gives his team the day off if
it is too cold, too hot, or there are too many mosquitos, as is often
the case in Minnesota.
But where Gagliardi asks his players to work is on game day. They
work and they win. In over 55 years of coaching, he has now had 410
wins and only 114 losses. My son Peter recently commented that it is
impossible to be a fair-weather fan of St. John's because they always
win. Gagliardi's teams have won 26 conference titles, appeared in 45
post-season games, and won three national championships. Their most
recent national championship was in 1976, while I was a student at St.
John's, when they beat Towson State of Maryland, a school 10 times its
size.
Playing bigger schools is not unusual for St. John's with its 1,900
students. I fondly remember sitting at a playoff game with St. John's
president, Brother Dietrich Reinhart, in Dayton, Ohio, against the
University of Dayton. They were playing St. John's in football, but
Michigan State in basketball that evening.
According to St. John's folklore, prayer is vitally important to
their football success. The St. John's abbey is the largest Benedictine
abbey in the world. As the saying goes, if the team gets it close, they
will pray it in.
Despite John's unmatched record of success, he remains amongst the
most humble people one will ever meet. His news director, Michael
Hemisch, has a hard time getting him to speak to the press. John avoids
the limelight and wears a coat during games that everyone is happy to
see has now been contributed to the College Football Hall of Fame, so
he will not wear it anymore. But he said it is the only coat that will
keep him warm enough for Minnesota falls.
Some were surprised that he accepted President Bush's invitation to
come to the White House today. When the press asked him what was the
secret of his success, he answered: talented players, luck, and
prayers.
Certainly, the many players that have played for Coach Gagliardi
should be congratulated on this achievement. John took no credit for
himself but would be happy to ascribe some of the credit to his current
coaching staff and his coaching staff over the years, three of whom
joined him: his son Jim, Jerry Haugen, and Gary Fasching. He would also
give credit to the monks, including athletic director Father Tim
Backous, who joined him as well at the White House. Father Tim and I
sang together at men's chorus at St. John's. And John likes to joke
that the monks said they would always be with him, win or tie.
Though John is humble, my fellow alumni at St. John's and St. Ben's,
including 13 of my family members, have great pride not just in his
success as the winningest college football coach ever but the way his
life has modeled the Benedictine values of faithfulness, community,
study, work, prayer, and humility.
I appreciated the Johnnies who joined John at the White House and the
[[Page 29103]]
many that came out to the reception this afternoon here in Washington
to honor John, including Senator Dave Durenberger; Al Eisele, editor of
``The Hill,'' David Rehr from the Beer Wholesalers; and Tom Super,
whose wife, Kathy, works for President Bush, Sr.
I encourage my fellow Members to join me in honoring his achievement.
Ms. WOOLSEY. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
Mr. KLINE. Mr. Speaker, I yield myself such time as I may consume.
I thank the gentlewoman for her very kind remarks on this occasion,
and I thank the gentleman from Minnesota (Mr. Kennedy) for bringing
this forward. I encourage all of my colleagues to vote for this, with a
hearty congratulations to Coach John Gagliardi.
Mr. Speaker, I have no further requests for time, and I yield back
the balance of my time.
The SPEAKER pro tempore (Mr. Neugebauer). The question is on the
motion offered by the gentleman from Minnesota (Mr. Kline) that the
House suspend the rules and agree to the resolution, H. Res. 438.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the resolution was agreed to.
A motion to reconsider was laid on the table.
____________________
HONORING RICE UNIVERSITY OWLS BASEBALL TEAM
Mr. KLINE. Mr. Speaker, I move to suspend the rules and agree to the
resolution (H. Res. 379) honoring the Rice University Owls baseball
team for winning the NCAA baseball championship.
The Clerk read as follows:
H. Res. 379
Whereas, on June 23, 2003, the Rice University Owls
baseball team won the NCAA baseball championship, defeating
Stanford, with a final score of 14 to 2, before 18,494 Owls
fans in the final game at the College World Series;
Whereas Rice University is a small but prestigious school,
which opened in 1912, and prides itself on being one of the
Nation's best academic institutions;
Whereas winning the national championship in a major
Division I sport is a remarkable accomplishment for Rice
University, which has an undergraduate enrollment of only
2,700 students and holds its athletes to the same high
academic standards as the rest of the school population;
Whereas, before this 2003 victory, the Owls made three
trips to the College World Series, in 1997, 1999, and 2002,
but won just one of seven games;
Whereas the Owls' coach, Wayne Graham, advanced Rice
University's baseball program from obscurity to a national
championship in 12 years;
Whereas the Owls' victory at the College World Series is
Rice University's first national championship in any team
sport and easily the University's crowning athletic
achievement;
Whereas Rice University is the second school in the State
of Texas to win the NCAA baseball title, joining the
University of Texas, which won titles in 1949, 1950, 1975,
1983, and 2002;
Whereas the Owls' victory completed a remarkable season in
which Rice University won 58 of the 70 games it played;
Whereas the Owls opened the 2003 College World Series by
first defeating Southwest Missouri State and then by
defeating Texas University twice in a span of three days,
eliminating the defending national champions and securing a
spot in the championship round;
Whereas Rice University defeated Stanford, with a score of
4 to 3, in the first championship game, and then lost to
Stanford, with a score of 8 to 3, in the second game, forcing
the final game; and
Whereas the final score of 14 to 2, establishing Rice
University's national championship victory, is the largest
margin of victory in a College World Series final game: Now,
therefore, be it
Resolved, That the House of Representatives honors and
congratulates the Rice University Owls baseball team for
their successful season and their historic, outstanding, and
memorable NCAA baseball championship victory.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Minnesota (Mr. Kline) and the gentlewoman from California (Ms. Woolsey)
each will control 20 minutes.
The Chair recognizes the gentleman from Minnesota (Mr. Kline).
General Leave
Mr. KLINE. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
on H. Res. 379.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Minnesota?
There was no objection.
Mr. KLINE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of House Resolution 379. This
resolution honors the Rice University Owls baseball team for their
victory in the 2003 NCAA baseball championship. With their 14 to 2
victory over Stanford, the Rice Owls scored the largest margin of
victory in a College World Series championship game and earned their
first, their first, NCAA baseball championship ever. The Owls won five
of six games in their fourth College World Series appearance to
complete a remarkable season in which they won 58 of their 70 games.
The Owls' victory at the College World Series was Rice University's
first national championship in any team sport. The distinction earned
by these players and the remarkable repeat victories of the team
reflect the dedication of each player, the leadership of Coach Wayne
Graham, and the support of family, friends, and fans.
I want to thank the gentleman from Texas (Mr. Bell) for introducing
this resolution and extend my congratulations to Coach Graham, Rice
University, and each of the hardworking players on the successful Owls
team. As the only Member of Congress to claim Rice University as my
alma mater, I am especially proud and happy to join my colleagues and
am very thankful to have the opportunity to join my colleagues in
honoring the accomplishment of this team and wishing them continued
success. I ask my colleagues to support this resolution.
Mr. Speaker, I reserve the balance of my time.
Ms. WOOLSEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H. Res. 379. This resolution honors
the Rice University Owls baseball team for winning the NCAA baseball
championship. This summer the Rice University Owls captured the
national championship in their fourth trip to the College World Series
in the past 7 years. College fans, student athletes, and the general
public were treated to an exciting 14 to 2 win in the final game of the
year's College World Series. I want to extend my hearty congratulations
to the Owls' head coach, Wayne Graham. His leadership over the past 12
years has taken baseball at Rice University from obscurity to national
prominence. Rice University's student athletes also deserve our
congratulations. We are on the floor today because of their hard work,
their determination, and their winning ways.
I would be remiss if I did not also recognize the outstanding play by
Stanford University's student athletes in the College World Series.
Both teams are to be congratulated for their excellent play.
Winning a championship has brought national acclaim to Rice
University. I hope the Owls fans and their community treasure this
moment for many years to come. And in closing, Mr. Speaker, I urge
Members to support this resolution.
Mr. Speaker, I reserve the balance of my time.
Mr. KLINE. Mr. Speaker, I have no further requests for time, and I
reserve the balance of my time.
Ms. WOOLSEY. Mr. Speaker, I yield such time as he may consume to the
gentleman from Texas (Mr. Bell), the author of this resolution.
Mr. BELL. Mr. Speaker, I rise in support of the resolution to honor
the Rice University Owls, the 2003 NCAA baseball national champions. It
is a study in persistence. Before this victory, the Owls made three
trips to the College World Series in 1997, 1999, and 2002, but won just
one of seven games during those three trips.
The Owls' convincing win over Stanford in the College World Series
championship game this year brought home the school's first national
championship in any team sport.
Rice University is a tremendous source of pride for my 25th
Congressional District in Texas. As one of the Nation's most highly
regarded universities, Rice has always been well
[[Page 29104]]
known for its academic excellence. The school now has the added
distinction of being a baseball powerhouse. Winning a national title in
a major Division I sport is a remarkable accomplishment for a school as
small as Rice with only 2,700 undergraduates.
{time} 2015
Additionally, Rice athletes are held to the same high academic
standards as all of the other students, signifying the incredible well-
roundedness of these ball players.
Since starting at Rice 12 years ago, coaching legend Wayne Graham has
catapulted the team into baseball history. Coach Graham's leadership
took Rice to the NCAA tournament in 1995 and to the College World
Series in 1997, 1999 and 2002. Previously, Coach Graham won five
national junior college titles at San Jacinto College.
The Owls had an unforgettable season, winning 58 of their 70 games.
Early in the season, the team broke a school record by winning 30 games
in a row. In the College World Series, Rice beat Southwest Missouri
State and last year's champion University of Texas team twice, before
meeting Stanford in the championship round. Rice beat Stanford 4-3 in
the first game, lost 8-3 in the second, and won the championship, 14-2,
the largest margin of victory in the history of the College World
Series championship games.
Mr. Speaker, with wholehearted enthusiasm, I congratulate Coach
Graham and the entire Rice Owl College World Series championship team,
including Philip Umber, Jeff Niemann, Wade Townsend, Vincent Sinisi,
Enrique Cruz, Craig Stansberry, Paul Janish, Chris Kolkhorst, Austin
Davis, Dan Bubela, Justin Ruchti, David Aardsma, Joseph Baker, Jeff
Blackinton, Matthew Cavanaugh, Lyndon Duplessis, Matthew Emerson,
Jonathan Gillespie, Steven Herce, Sean Hirsch, Jeff Jorgensen, Colin
Matheny, Matthew Moake, and Lance Pendleton.
These players' success, both in the classroom and on the baseball
field, make them stand out as the very best college sports has to
offer. They played with honor and sportsmanship and raised the bar for
the expectations of college athletes everywhere. Well done, Owls. You
have made Houston, Texas very proud.
Ms. WOOLSEY. Mr. Speaker, I yield such time as he may consume to the
gentleman from Texas (Mr. Rodriguez).
Mr. RODRIGUEZ. Mr. Speaker, I rise today to join my colleagues and
the gentleman from Texas (Mr. Bell) for authoring this legislation in
honoring the National Champion Rice University baseball team. I commend
the hard work of the players and their coaches. Their years of training
and preparation, combined with their ability to work together as a
team, led to an outstanding and overwhelming victory.
It is also important to recognize the unwavering dedication of the
Rice supporters who cheered the team to victory. All Texans are proud
of Rice University. Rice University, its alumni, the city of Houston,
the Houston Astros and others have honored the Rice baseball team, and
now the Congress is joining the local community and the State to show
our support for their achievement.
I have the great honor of being a father of a Rice Owl. My daughter
Xochil attends Rice University, and I am proud that she has chosen to
be a part of this outstanding academic institution. Not only is Rice
University one of the Nation's top-ranking schools, Rice University
students have distinguished themselves by creating a unique academic
atmosphere that provides a well-rounded educational experience.
The win at this year's College World Series marks the first national
championship for a Rice University sports team, but with the hard work
and the discipline shown by the group of student athletes, I have no
doubt that this is only the first of many accomplishments and
championships. Congratulations, Rice University.
Ms. WOOLSEY. Mr. Speaker, I yield such time as he may consume to the
gentleman from Texas (Mr. Green).
Mr. GREEN of Texas. Mr. Speaker, I rise to place in the Record a
statement in offering my congratulations to the Rice University
baseball team for winning the College World Series.
Mr. Speaker, I rise today to offer my congratulations to the Rice
University Baseball team. An exemplary group of young men, the Rice
team won its first baseball national championship this year and showed
the true grit needed to win the College World Series.
The Owls have been no stranger to the College World Series, appearing
with the best of college baseball for 4 out of the last 7 years. The
championship eluded them, however, until this year when they finished
the regular season with an impressive 58-12 record. Thirty of those
wins came during a remarkable winning streak.
And being a University of Houston graduate, it pains me to admit that
the Owls' streak began with a 3-0 win over my beloved Cougars. However,
if we had to lose to a cross-town rival, I'm glad that it was one who
went on to win the national championship.
The national championship was even sweeter for Houstonians
considering that the Owls crushed a Stanford team that had made its
third trip to the finals in the past 4 years. And in winning the final
game 14-2, the Rice team secured the largest margin of victory in any
College World Series final game. Without a doubt, Rice's national
championship is a well-deserved honor for a first-rate team.
My congratulations go out to the Owls, along with my best wishes for
a successful 2004 season in defense of their title.
Ms. WOOLSEY. Mr. Speaker, I yield back the balance of my time.
Mr. KLINE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I would like to thank, again, the gentlewoman from
California for her kind remarks and the other speakers today, and
certainly the gentleman from Texas (Mr. Bell) for authoring this
resolution. I will dare to speak on behalf of all Rice alumni and say
to Coach Graham and to the team, congratulations and thank you from the
bottom of our hearts. The first-ever NCAA championship is a big thing
to the alumni community and Rice University.
Mr. Speaker, I have no further requests for time, and I yield back
the balance of my time.
The SPEAKER pro tempore (Mr. Neugebauer). The question is on the
motion offered by the gentleman from Minnesota (Mr. Kline) that the
House suspend the rules and agree to the resolution, H. Res. 379.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the resolution was agreed to.
A motion to reconsider was laid on the table.
____________________
PERMISSION TO HAVE UNTIL 6 A.M. TUESDAY, NOVEMBER 18, 2003 TO FILE
CONFERENCE REPORT ON H.R. 6, ENERGY POLICY ACT OF 2003
Mr. MORAN of Kansas. Mr. Speaker, I ask unanimous consent that the
managers on the part of the House may have until 6 a.m. on November 18,
2003 to file a conference report to accompany the bill (H.R. 6) to
enhance energy conservation and research and development, to provide
for security and diversity in the energy supply for the American
people, and for other purposes.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Kansas?
There was no objection.
____________________
TWENTY-FIFTH ANNIVERSARY OF JONESTOWN AND THE DEATH OF CONGRESSMAN LEO
RYAN
(Mr. LANTOS asked and was given permission to address the House for 1
minute and to revise and extend his remarks.)
Mr. LANTOS. Mr. Speaker, tomorrow is the 25th anniversary of the
massacre at Jonestown where more than 900 people lost their lives to
the sick cause of a sociopath masquerading as a visionary.
Among the victims was my distinguished predecessor and good friend,
Congressman Leo Ryan, the first Member of Congress ever killed in the
line of duty. He was gunned down along with four others of his
delegation whom he led to investigate reports of human rights abuses in
the jungles of Guyana.
Mr. Speaker, while we continue to struggle to understand such events,
let
[[Page 29105]]
us also continue to commemorate the people they affect.
I would like to ask all of my colleagues for a moment of silence to
remember our fallen colleague, my predecessor representing the San
Francisco peninsula in Congress, Congressman Leo Ryan, and to honor his
work for justice and human rights.
Mr. Speaker, November 18, is the 25th anniversary of the massacre at
Jonestown. A quarter century ago, more than 900 people lost their lives
to the sick cause of a sociopath masquerading as a visionary.
Among the victims was Congressman Leo Ryan, the first Member of
Congress ever killed in the line of duty. He was gunned down, along
with four others of the delegation that he led to investigate reports
of human rights abuses at a compound in the jungles of Guyana. Ten
members of his group were wounded, some of them seriously, including
California State Senator Jackie Speier, who was then a member of
Congressman Ryan's staff.
In addition to those who died, thousands more were directly affected
by the Jonestown tragedy: the grieving family members and friends of
those who had misplaced their faith in the so-called Peoples Temple led
by Jim Jones.
Mr. Speaker, survivors of that misguided movement, as well as
relatives of Leo Ryan and of others who died, are gathering in Foster
City, California, in a park that bears Congressman Ryan's name. They
will consider his gifts and accomplishments as a public servant, and
they will carry on with the struggle to make sense of the events that
cut short his life and those of so many others.
Leo Ryan dedicated his life to protecting the oppressed. Elected to
the California State Assembly in 1962, he was so moved by the
conditions that led to the Watts Riots two years later that he
volunteered as a substitute schoolteacher in Watts while the community
rebuilt itself. This was typical of Leo Ryan: Confronted with a complex
situation of social injustice, he insisted on getting his facts first-
hand. In 1970, after hearing about abuses against convicts in
California's top-security institutions, he spent a week undercover
behind bars in Folsom Prison to see for himself how they were treated.
Mr. Speaker, this hands-on approach characterized Leo Ryan's work
here in Congress, where he served on the Foreign Affairs Committee. In
early 1978, concerns had been raised about U.S. citizens being held
against their will in Guyana; stories were filtering out about beatings
and forced rehearsals for mass suicides. When constituents brought the
issue to Leo Ryan's attention, he took action.
There were warnings, but characteristically, Congressman Ryan was
undeterred. He moved with caution, yet without trepidation, to organize
a trip to Guyana. And to alert the world to what he expected to find,
he brought along with him a handful of journalists, as well as members
of the Concerned Relatives group whose loved ones were in the thrall of
Jim Jones. But after challenging Jones and confirming some of his
concerns, Leo Ryan, three of the journalists and a defector from the
Peoples Temple were to lose their lives on a jungle airstrip as the
cataclysm at Jonestown began.
What lessons can be drawn from these experiences, Mr. Speaker? What
can we conclude when we continue to see the rise of aberrant social
groups that use violence to control their members, and are capable of
unleashing brutality upon the world?
Jim Jones' methods of control mirror those of totalitarian leaders
throughout history. He created a cult of personality centered on
himself, demanded absolute obedience, isolated those who surrounded him
from their former lives, and instilled in them a profound sense of
paranoia about the outside world.
The Peoples Temple's members were manipulated to see in it whatever
they wanted it to be. It was a self-help group for some, for others a
religious movement, and for many it represented a new means to address
society's shortcomings. Jim Jones also managed to legitimize the group
among some conventional religious and political leaders by supporting
their public events and contributing money to their causes during the
years when the Peoples Temple was based in San Francisco.
How could so many people find themselves hoodwinked to varying
degrees, letting themselves even be linked with this deviant community,
much less joining its ranks and sacrificing their lives?
Mr. Speaker, it is a hard question to confront. And the Peoples
Temple example teaches us most dramatically not to be seduced by easy
answers. It is left to historians and specialists in mass psychology to
piece together and place in context the puzzle of Jonestown, the rise
of Fascism in Europe, and any number of other instances in which a
twisted and charismatic individual has found ways to exploit the
weaknesses of large groups and to destroy their will.
As John Ross Hall wrote in one of the definitive studies of
Jonestown, Gone From the Promised Land, ``We hear the screams, but we
do not entirely understand them, and we will continue to wrestle with
the apocalypse they unveiled.''
And I would add, we will continue to commemorate the victims, and to
pay tribute to their lives. Mr. Speaker, I would like to ask for a
moment of silence here in this chamber to remember our fallen
colleague, my predecessor representing the San Francisco Peninsula in
Congress, Leo Ryan, and to honor his work for justice and human rights.
____________________
SPECIAL ORDERS
The SPEAKER pro tempore (Mr. Neugebauer). Under the Speaker's
announced policy of January 7, 2003, and under a previous order of the
House, the following Members will be recognized for 5 minutes each.
____________________
H.R. 876, THE LOCAL RAILROAD REHABILITATION AND INVESTMENT ACT
The SPEAKER pro tempore. Under a previous order of the House, the
gentleman from Kansas (Mr. Moran) is recognized for 5 minutes.
Mr. MORAN of Kansas. Mr. Speaker, I rise tonight on behalf of
thousands of America's rural communities, and I would like to focus
attention on a looming crisis within our Nation's transportation
infrastructure. Short line railroads, rural America's link to the
national rail network, are approaching a crisis point.
Before the rail industry was deregulated, Federal policy created a
tremendous investment disincentive whose repercussions can still be
felt today. With America's generation of heavier rail cars, which many
short lines cannot accommodate, this situation has grown worse. We must
move quickly, because thousands of miles of track are in danger of
being abandoned forever.
Over 550 short line rail carriers now operate 30 percent of the
Nation's rail network. Short line railroads exist in all 50 States and
in over 70 percent of all congressional districts. They operate 50,000
miles of track, employ over 23,000 workers at an average wage of
$47,000, and earn $3 billion in annual revenue.
Today, this local service is threatened due to the introduction of
heavier 286,000 pound railcars that have become a new industry
standard. Because of the interconnectivity of our Nation's rail
network, short lines are forced to use these heavier cars, placing an
added strain on track structure and making rehabilitation urgent.
Studies indicate that it will take $7 billion in new investment for our
Nation's short lines to accommodate these heavier railcars. To keep our
constituents connected with the national rail network, these lines must
be upgraded. Unfortunately, the small railroad revenue is insufficient
to get the job done.
Today, our Nation's short line railroads need help to make the
capital investment required to maintain and rebuild rail service
between rural and urban America. This is why I introduced H.R. 876, the
Local Railroad Rehabilitation and Investment Act. This legislation has
enjoyed bipartisan support with, currently, 178 cosponsors. H.R. 876
provides a $10,000-per-mile tax credit as an offset for rehabilitation
investments needed to maintain and strengthen local rail service. This
temporary incentive program provides a valuable tool for our railroads
to rebuild and improve as they work to meet our Nation's increasing
shipping needs.
Short line railroads play an important role in my home State of
Kansas. Kansas ranks second in the Nation in the amount of farm
products it ships out of State by rail. These railroads keep our
farmers and small businesses connected to a national rail network.
However, since 1980, approximately 2,500 miles of short line rail in
Kansas have been abandoned.
In my State alone, the loss of short line railroads would add nearly
$50 million in annual repair costs to the State's highway system. The
loss of short line rail service could also add
[[Page 29106]]
over $20 million to the annual cost of transporting and handling the
State's wheat harvest, which would result in an annual net decline in
farm income of over $17 million. Nearly every State and every
congressional district would experience similar consequences without
short line rail service.
Congress should have a strong interest in preserving the freight
connection between rural and urban America, because once track is
abandoned, odds are it will never be replaced. In today's world, a
disruption of the network that carries our food, raw materials, and the
fuel for our power plants can be ill afforded. Tens of thousands of
jobs in agriculture, manufacturing, refining, and mining in almost
every congressional district depend upon this service. I urge my
colleagues to join me in cosponsoring this vital transportation
infrastructure legislation, and I ask the leadership of this Congress
to bring this bill forward.
____________________
PHARMACEUTICAL PROMOTION AND PROFITS PROTECTION ACT
The SPEAKER pro tempore. Under a previous order of the House, the
gentleman from Oregon (Mr. DeFazio) is recognized for 5 minutes.
Mr. DeFAZIO. Mr. Speaker, Christmas has come early for the
pharmaceutical and insurance industries, and it is going to be
presented as a very large and complex piece of legislation that as yet
no rank and file Member of Congress, no Democrat on this side of the
Hill, has been able to review, and it will be voted on later this week.
It is being cast as simply a pharmaceutical benefit for seniors and
some sort of a revision of Medicare to make it competitive and so on
and so forth. But what it really is is legislation that was written by
and for the pharmaceutical and insurance industries, the most powerful
lobbies in this country and the most generous of campaign contributors,
particularly to the President and the Republican Party; and it is first
and foremost designed to protect their profits. In fact, perhaps we
should call it the ``Pharmaceutical Promotion and Profits Protection
Act.'' That would be an apt title.
Boston University School of Public Health has analyzed the bill and
they said, 61 percent of the benefits will flow as increased profits to
the pharmaceutical industry. The bill specifically prohibits the
Government of the United States of America, on behalf of America's
seniors and, indeed, all of the American people, to do anything to
lower the extortionate price of prescription drugs in the United
States. In fact, it closes the door on the importation of prescription
drugs from Canada, which is the only relief that many Americans are
able to find today. Oh, they say, well, we do not close the door; we
are going to give the authority to the Secretary of Health and Human
Services to certify whether or not American-manufactured, FDA-approved
pharmaceuticals that have had a short vacation in Canada, where their
price goes down by 50 percent or more, would be safe if they flowed
back into the United States. And, of course, the Secretary of Health
and Human Services, in his wisdom, has already said that he will not
find them to be safe, just to reassure the industry. So they will give
him a power which he will not use, or which he has already arbitrarily
decided.
In fact, it is arguable that the chain of custody of drugs in Canada
is safer than in the United States of America, and it would be arguable
that, in fact, those drugs would be safer than those that are sometimes
made available in the system here because of unregulated, unlicensed
pharmacies, and phoney, closed-door pharmacies and other things that
were exposed recently in a series by the Washington Post. But
nonetheless, we are going to act to protect here, and what we are
really protecting, the Congress will vote, and I am sure the House will
vote; the President is proposing and the conference committee has
proposed to protect the profits of the pharmaceutical industry.
Then, not to leave out the insurance industry, because they are
almost as generous in their campaign contributions, we are going to set
up a new market for them where we will subsidize the private health
insurance industry to create competition. Now, is that not ironic?
{time} 2030
The only industry in the United States of America exempted from
antitrust law, an industry which can, and does, legally fix prices,
collude with their so-called competitors, and, you know, collude also
to determine who they might cover or not cover, we are going to bring
about competition by subsidizing them.
There are quite a few seniors in my district that have a rather
bitter taste in their mouths about the HMO Medicare+Choice and all
these other foolhardy things that have been levied upon them. Those
companies walked away one day and left them high and dry. And under
this bill they will be able to walk away again and leave people high
and dry or they will be able to choose the people they want to cover
and tell the rest of them to go over to the Medicare fee-for-service
plan which will be more expensive. It will get ever more expensive
because all the low-risk people will be moved out and taken by the
insurance industry and these subsidized plans until they become high
risk, until they have to actually file a claim. That is the way the
insurance industry works in America today: they will cover you until
you ask them to cover something that you have been paying premiums for.
And the next time renewal comes up, sorry, we will not renew you. This
does not go on just in health care; it is going on in homeowners and
car insurance and everything else. But it is particularly egregious in
the area of health care. This bill is going to do nothing to rectify
that problem.
Let us look at what the great benefits will be. In the first year,
next year, there will be discount cards that will come out before the
election so the President can say he did something for people, which
will be to give a discount, maybe as much as 15 to 25 percent. That
means that seniors will only have to pay 50 to 75 percent more than
they would have to pay for those drugs imported from Canada. Oh, what a
benefit that is. No, but it is a wonderful windfall for the
pharmaceutical industry. They will still be paying prices higher than
people covered by other private insurance plans, as are Federal
employees, as am I, Blue Cross/Blue Shield, and many others; but they
will get that juicy 15 to 25 percent discount.
Then the big plan kicks in in 2007. Why 2007? Because people, if it
went into effect sooner, if it was such a great deal, people might
figure out what a turkey it is before the next election. So they will
dangle it out there 4 years in the future and say this will be really
great, you just wait. It is so complicated, few people can figure it
out. But here are a couple of numbers. A person who pays $1,000 for
pharmaceuticals under this great plan would only pay $945 for their
pharmaceuticals after they did their premiums and co-payments and
deductibles. They would get a benefit of $55 on an annual $1,000
prescription drug benefit.
Well, let us look at someone who has much bigger costs. Someone who
pays $3,700, $300 a month. Their benefit would be a grand total of
$855. Only about, you know, half of that they could get purchasing the
drugs from Canada. This is a sham.
____________________
MEDICARE LEGISLATION
The SPEAKER pro tempore (Mr. Neugebauer). Under a previous order of
the House, the gentleman from Ohio (Mr. Brown) is recognized for 5
minutes.
Mr. BROWN of Ohio. Mr. Speaker, this summer AARP devised a litmus
test for Medicare legislation. Specifically, AARP said Congress must be
careful not to pass any legislation that jeopardizes employer-sponsored
retiree benefits, or that leaves such large gaps in the drug coverage
that seniors still will not be able to afford needed medicines, or that
includes a premium support privatization provision which will
invariably give HMOs control over Medicare, or undercuts popular
support for the Medicare program by requiring
[[Page 29107]]
higher-income beneficiaries to pay more for the same coverage. In other
words, we should not pass any legislation that introduces means testing
into Medicare.
The Medicare conference committee agreement that was outlined this
weekend still jeopardizes employer-sponsored retiree coverage for 12
million seniors. In other words, as many as a third of the seniors who
now have prescription drug coverage will lose it under this bill
because employers will say why should we do it, we will put you in that
government program.
It still leaves such huge gaps in coverage the average senior will
run out of drug benefits by August each year. Understand that the
average senior will run out of drug benefits two-thirds of the way
through the year, but, get this, will still be required to pay the
premiums through December. That is a great deal.
It still includes a premium support provision that stacks the deck so
resolutely against Medicare fee-for-service, the Medicare that seniors
in this country respect and love and have benefited so greatly from. It
stacks the deck so resolutely against the Medicare fee-for-service
program that seniors will have no choice but to join a private
insurance HMO. And it still means tests seniors.
What else does this bill do? It creates a $12 billion slush fund for
HMOs to induce them to provide coverage. If anyone still believes
privatizing Medicare will reduce health care costs, this $12 billion
bribe going to the insurance industry from U.S. taxpayers, this $12
billion bribe should cure them of that misperception.
Mr. Speaker, there is no surprise here. After all, the insurance
industry gives tens of billions of dollars to my friends on the other
side of the aisle, to President Bush, to Vice President Cheney, to
Republican legislative leadership. This bill also increases drug
profits by nearly 40 percent, an estimated $139 billion over 8 years.
Again, no surprise there, Mr. Speaker. The drug industry gives actually
tens and tens of billions of dollars to President Bush. The word on the
street in Washington is they may give $100 million to President Bush's
reelection. So, of course, they are going to look out for the drug
industry.
Coincidentally, this bill specifically prohibits the Federal
Government from negotiating lower prices on behalf of seniors and
taxpayers to secure lower drug prices. It abandons the one strategy
that would deliver meaningful drug savings to seniors, businesses, and
all prescription drug purchasers. It abandons legislation that my
friend, the gentleman from Minnesota (Mr. Gutknecht), who is in this
Chamber, worked on; the gentleman from Washington (Mr. McDermott); the
gentleman from New Jersey (Mr. Pallone); the gentleman from Arkansas
(Mr. Ross); the gentleman from Texas (Mr. Green); the gentlewoman from
California (Ms. Woolsey), a lot of us on both sides of the aisle worked
on. It abandons legislation to allow importation of prescription drugs,
safe, affordable prescription drugs from Canada and other countries
that charge one-third, one-fourth, one-fifth as much as they do in the
United States.
Other countries negotiate for lower drug prices, but the U.S. is a
passive drug taker. As a result, U.S. consumers get robbed; the drug
industry gets rich. This bill ignores public support for prescription
drug reimportation from other countries for lower price, the same drug
but for lower price, ignores the consequences for consumers, for
employers, and for the Federal Treasury if we fail to bring drug prices
down.
Seniors cannot afford the high cost, employers cannot afford the high
cost, taxpayers cannot afford the high cost of prescription drugs
anymore in this country.
If anyone still believes the drug industry and the insurance industry
are not the ghost writers of this bill and are not its principal
beneficiaries, perhaps the $12 billion HMO slush fund, the $139 billion
in additional drug industry profits, the prohibition on negotiated drug
prices, and the stifling of prescription drug importation just might
convince you.
One more thing. While the drug and insurance industries fair
extremely well under this legislation, the bill's authors decided to
cut corners by barring 3.9 million seniors living at or near poverty
from receiving low-income prescription drug assistance.
Under the deal described this weekend, a senior earning $8,000 a year
may still be required to pay as much as $2,500 to $3,500 for coverage.
That is not protection, Mr. Speaker. It is a cruel joke.
____________________
FALSE PROMISE FOR AMERICA'S SENIORS
The SPEAKER pro tempore. Under a previous order of the House, the
gentleman from Arkansas (Mr. Ross) is recognized for 5 minutes.
Mr. ROSS. Mr. Speaker, after years of talk about the need to help our
seniors with the high cost of prescription drugs, it appears that
sometime this week, or perhaps this weekend, this Congress will be
voting. They will be voting on a bill that is nothing more than a false
hope and a false promise for America's seniors. In fact, Max Richmond,
the head of the National Committee to Preserve Social Security and
Medicare, a nonpartisan, not bipartisan, but a nonpartisan, nonprofit
organization, has been quoted as saying, ``Have you ever heard of
Medicare fraud? Well, this Republican prescription drug bill is
Medicare fraud.''
Let me tell you why. As I see it, there are three major problems with
the bill. Problem number one: the Republican leadership actually had
the nerve to put language in the bill that says the Federal Government
shall be prohibited from negotiating with the big drug manufacturers to
bring down the high cost of medicine. That is in the bill. Then they
call it a seniors bill.
Problem number two is the prescription drug plan will be privatized.
And what is worse than that is the rest of Medicare could very well be
privatized by 2010 under this bill. Insurance is about spreading the
risk. When our homeowners policy comes due, sure, we complain; but when
you think about the fact that they will replace everything in our house
and build us a new house if something happens, it is fairly reasonable,
the premium we pay. And why is that? When is the last time you saw a
home in your neighborhood burn down or get blown away? It does not
happen very often. Insurance is about spreading the risk.
Well, with seniors there is no risk to spread. Seniors require a lot
of medicine and a lot of health care to either get well or to stay
healthy. That is why we created Medicare 38 years ago.
So why do the Republican leadership and the big drug manufacturers
want to privatize the Medicare prescription drug benefit? Well, let me
tell you why. You hear about how prescription drugs are less expensive
in other countries. It is true. I did a survey about a year ago where I
compared the price paid by seniors of the five most commonly used
brand-name drugs in my district with seven other countries. And guess
what we found: seniors in my district pay on average 110 percent more
than seniors in these other countries.
Now, why is that? Because America is the only industrialized Nation
in the world where people go without health insurance; 43.6 million of
them today, 10 million of them are children and the rest of them, for
the most part, are people that are trying to do the right thing and
work jobs, but they are working the jobs with no benefits.
In other countries everybody has health care. And in other countries
they tell the big drug manufacturers if you want your medicine, your
brand in our country, you are going to give us a discount. And they do.
And the drug manufacturers and the Republican leadership know good and
well that if we have 40 million seniors under one plan in America, that
we too will demand those kinds of discounts to help offset the cost of
this program.
So they want to privatize the plan and spread seniors out over about
100 plans and have 100 different insurance companies knocking on your
door and calling and sending mail to your mother or dad or grandfather
or grandmother all trying to sell them, what? Exactly the same plan.
Privatization will not work.
[[Page 29108]]
The third big problem with this is it is not really a meaningful
benefit. Most people who are fortunate enough to have a private health
insurance company, and every plan is a little different, but most
people who are fortunate to have private health insurance, well, the
first $3,500 worth of medicine they pay about $700 out of pocket. Under
this Republican prescription drug plan, on the first $3,500 worth of
medicine, seniors are going to get stuck with $2,600 of it. All this
talk in Washington amounts to $900 worth of help on the first $3,500
worth of medicine.
You see, it is going to have a $250 deductible. And during that time,
you have got to pay the monthly premium, which they say may be $35; but
they are not real sure what it will be, it could be more. And then
after $250 up to $2,000, Medicare is going to pay 80 percent and you
pay 20 percent. That sounds pretty good. But on a $100 prescription,
once you get to the $250 mark and you are paying $20, what happens when
you hit $2,000? All the way up to $3,500 you are back paying the full
$100. Medicare pays nothing. But they still bill you monthly for this
premium. This is Medicare fraud. It is wrong. This is America, and we
can do better than that by our seniors.
____________________
{time} 2045
EXCHANGE OF SPECIAL ORDER TIME
Mr. GUTKNECHT. Mr. Speaker, I ask unanimous consent to claim the time
of the gentleman from North Carolina (Mr. Coble).
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Minnesota?
There was no objection.
____________________
PRESCRIPTION DRUG MARKET ACCESS
The SPEAKER pro tempore. Under a previous order of the House, the
gentleman from Minnesota (Mr. Gutknecht) is recognized for 5 minutes.
Mr. GUTKNECHT. Mr. Speaker, I will not take the whole 5 minutes. I
have been listening to the discussions about Medicare reforms, and I
must tell my colleagues that some of the arguments they are making on
the other side, I agree with. Some of them, I do not agree with.
I do want to let Members know that in first hour there will be a
special order, and I invite Members from the Republican and Democrat
and Independent parties to join us tonight and talk about the issue of
market access because I think that is one thing that most Members here
in the House agree on, and that is, that Americans deserve to have
world class prices for world class drugs.
As the gentleman from Arkansas (Mr. Ross) was just saying, in the
studies that he has done, in the studies that I have done, the studies
that other Americans have done, that have been done by the press and
other groups, they all come to the same conclusion; and that is that
Americans pay by far and away the world's highest prices, even though
we are the world's best customers.
Later on tonight, we will be talking about that issue and whether or
not there is a way that we, here in the House, can exercise the will of
the people and get something done on that issue before we go home for
the break.
____________________
BEWARE THE GHOSTS OF CHRISTMAS PAST
The SPEAKER pro tempore. Under a previous order of the House, the
gentleman from Texas (Mr. Green) is recognized for 5 minutes.
Mr. GREEN of Texas. Mr. Speaker, I want to associate myself with the
remarks of both my colleague, the gentleman from Arkansas (Mr. Ross)
and also my colleague, the gentleman from Ohio (Mr. Brown) in the
concern about what happened in the Medicare conference committee on
prescription drugs.
It is sad that we came here to talk about a prescription drug plan
for seniors, but we are actually going to take it away from them in the
process. But the reason I am here tonight, Mr. Speaker, is to talk
about the problem we have in our country with the unemployment.
Mr. Speaker, as we embark on what we hope will be our last week in
sessions before the holiday recess, I rise to warn my colleagues about
the ghost of Christmas Past, the economic mistakes that Congress and
this administration have made on the eve of past holidays. Let us take
time to learn from those mistakes and not recreate them.
I can say with confidence that each Member of this Chamber was
pleased to hear the impressive economic growth figures for July through
September. Over the past 3 years, this country has suffered through
some of the worst economic conditions since the Great Depression, and
it was certainly uplifting to see the reports of 7.2 percent growth in
gross domestic product. While we remain optimistic about an economic
rebound for the country, I, however, caution my colleagues against
relying on the sustainability of this economic growth.
Economic indicators show that these figures were the result of
consumer spending and a tremendous boost in the housing market. Yet
with consumer spending outpacing consumer income, it is clear that
spending cannot fuel our economic growth indefinitely. Let us remember
our reaction to similar news in 2002. After months of job losses and a
dismal economic growth, the country boasted growth of 5 percent in the
first quarter of 2002. Despite our optimism, however, job losses
continued and the next quarter yielded a 1.3 percent growth.
This time last year we were celebrating third quarter growth of 4
percent, and like today, entering the holidays with high hopes.
Needless to say, our hopes were dashed and the country has since
endured the worst job conditions in 20 years. These are our ghosts of
Christmas Past, the flurry of mistaken optimism that failed to deliver
on its economic promises.
Like the optimism of Christmas Past, this recent economic growth
belies the fact that our manufacturing sector has cut jobs for the 39th
straight month. My State of Texas, with 1.6 million lost jobs, ranks
third in the amount of manufacturing jobs lost since September of 2000.
While the country may be making modest gains in employment, 6 percent
of America's workers are still unemployed. Almost one-quarter of these
8.8 million people have been out of work for more than 6 months. These
figures do not even count the discouraged workers, 462,000 Americans
who have completely given up looking for jobs and are no longer on our
unemployment roles.
Fortunately, many former unemployed workers have found jobs, but we
must examine the kind of jobs they are turning to; 4.8 million
Americans work part-time, but only because they cannot find full-time
work, and many of these workers are former engineers, former computer
technicians who previously earned up to $60,000 a year, but now must
settle for $7.50 an hour at a retail store.
No amount of economic statistics can hide the realities that these
people face. Our unemployed workers are hurting. Our unemployed
families are draining their savings to survive. And this Congress holds
in its hands the ability to extend their unemployment benefits.
Let me remind my colleagues that the holiday season is the time of
the year when we give thanks for our blessings and extend our hearts to
the less fortunate. Last year, that important lesson must have been
lost on the majority's leadership, because Congress packed up for the
year without extending unemployment benefits.
That is right. Congress left town to enjoy the holidays and in doing
so, left America's unemployed workers in the cold.
Mr. Speaker, this year is no different. Unfortunately, if we do not
act soon, the Ghost of Christmas Past will be forced to remind us of
the tremendous mistake we made by withholding these benefits last year.
Even Scrooge learned from his mistakes.
I implore the administration and my colleagues to let us take a hard,
realistic look at our economy and make
[[Page 29109]]
sure that any recovery helps the Americans who have been most hurt by
this downturn, and above all, let us pass the extension of the
temporary unemployment benefits before we adjourn for the holidays.
It is the right thing to do for our economy and for America's
unemployed.
____________________
IRAQ PROPAGANDA CAMPAIGN
The SPEAKER pro tempore. Under a previous order of the House, the
gentlewoman from California (Ms. Woolsey) is recognized for 5 minutes.
Ms. WOOLSEY. Mr. Speaker, the Coalition Provisional Authority which
is the title of the American authority overseeing the reconstruction of
Iraq, and the Bush administration which created it, are openly
dissatisfied with the stories the media has chosen to broadcast
regarding the United States' role in Iraq. In fact, they say the news
media too often covers the negative events that occur in Iraq, but
rarely reports any positive happenings there. They even pressured
reporters to find the so-called good news in Iraq or lose access in an
attempt to manipulate the stories coming out of Iraq.
Let us keep in mind that over 400 American soldiers have died in Iraq
since the start of the war in March. That is more than 11 brave young
men and women killed each week. It is hard to find the good news when
our sons and daughters keep coming home in body bags. And it is
exceptionally insulting to the families of these victims to complain
about media bias at the same time four helicopters have been destroyed
by enemy fire over the last 2 weeks.
The situation in Iraq is getting less safe for our troops, not safer.
In addition to the 404 troops killed in action, over 2,000 have been
wounded and another 7,000 have been evacuated for noncombat medical
conditions. And yet, the President continues to complain about media
bias. So what has the White House decided to do about the quote/unquote
``unfair reporting'' by the media?
Why, bypass that very media, of course. The President's handlers plan
to influence public perception by creating a government-run broadcast
operation to provide American news agencies unfettered access to the
real stories in Iraq. This broadcasting system which the administration
unofficially refers to as C-SPAN Bagdad will run via satellite 24 hours
a day. C-SPAN Bagdad. More like American Al-Jazeera, the media giant
that reports to the Arab world in a very biased fashion.
The White House is increasingly aware, of course, that President
Bush's fate in the upcoming 2004 election is directly linked to the
progress of the war in Iraq. So bypassing the third-party national
media allows the Bush administration to mold public perception of the
war effort. I think our country's founders would be ashamed to know
that at the same time hundreds of our soldiers and thousands of Iraqi
civilians are dying, President Bush is thinking about the chances for
reelection. That is nothing short of appalling.
But equally appalling is that the American taxpayer will finance this
shameful propaganda machine. That is right. The administration is
directing money from the $87 billion emergency supplemental spending
bill that Congress approved last month to help pay for the new Bush
media machine. This is not emergency spending. This is campaign
spending. This is propaganda spending. Instead of trying to win the
hearts and minds of Americans through propaganda, President Bush should
be trying to win the hearts and minds of the insurgents who are making
Iraq less stable. He should show them a United States to which
burgeoning democracies like Iraq can aspire, a United States that would
be a democratic model for the rest of the world. I daresay an
autocratic state-sponsored propaganda campaign is not a part of this
model.
____________________
TENTATIVE AGREEMENT ON MEDICARE CONFERENCE REPORT
The SPEAKER pro tempore. Under a previous order of the House, the
gentleman from New Jersey (Mr. Pallone) is recognized for 5 minutes.
Mr. PALLONE. Mr. Speaker, I rise this evening to express my extreme
disappointment regarding the tentative agreement that has been reached
by the Republicans in Congress with regard to Medicare and prescription
drugs.
Mr. Speaker, the source of my frustration stems from the fact that
this agreement is not good public policy. It is not good for seniors or
any Medicare consumer and it does nothing to reduce the cost of soaring
prescription drugs.
What this bill does, simply stated, is it kills the Medicare program
and, in the process, shores up hundreds of billions of dollars of
funding for the HMO industry and for the name-brand pharmaceutical
industry. If this so-called deal is enacted into law, make no mistake
about it, the Medicare program will be privatized. Medicare, as we know
it today, will be turned into a voucher system and seniors will be
forced into HMO's.
Republicans are trying to fool us into believing that their
privatization provisions are merely a demonstration project or a test,
but nothing could be further from the truth.
Mr. Speaker, the Republican Medicare provisions are unacceptable
because they have nothing to do with prescription drugs. The ``demo''
goes way beyond the scope of providing seniors with prescription drug
coverage, and, in fact, aims to bankrupt seniors, denying them their
right to adequate health care under Medicare, and ultimately forcing
them into HMOs because they can no longer afford Medicare.
This is exactly where the insurance companies come in to get their
big payoff because greater risk and cost are shifted to senior
citizens.
Furthermore, the provisions in the medicare agreement that deal with
prescription drug coverage are completely inadequate in terms of
benefit structure. We are talking about a $275 deductible, a $35
monthly premium, 75-25 coverage, in other words, 75 percent paid by the
Federal Government, 25 percent by the senior to the first $2,200 and no
assistance until $3,600, at which point, the catastrophic is reached.
So there is a huge doughnut hole; basically, between $2,200 and $3,600,
in assistance, seniors get nothing. This means that seniors will have
to pay nearly $2,600 before the government pays for all drug costs.
Twenty million seniors or half of all seniors will be paying premiums
year-round but would have no coverage for part of the year due to this
large gap or doughnut hole in the coverage.
Now, the combination of this insufficient benefit combined with
watered-down generic provisions, watered-down reimportation provisions,
and the prohibition of the Medicare Administrator to negotiate lower
drug prices brings me to my point that this Medicare final agreement is
a giveaway to the name-brand pharmaceutical industry.
Mr. Speaker, there are so many fundamental problems with this
upcoming Medicare agreement beyond what I have discussed tonight. There
is no Medicare fallback in this bill that is favorable to seniors. We
expect 2 to 3 million retirees to have their coverage dropped. Ten
million, or one out of four, seniors will be forced to pay more for
Medicare or to join an HMO. Low-income seniors are not financially
protected and will be subject to an assets test for the first time in
Medicare history. And the Medicare Part B will rise for the first time
in 12 years. Means testing will be implemented in the Medicare program
for the first time in its history, and tax sheltered accounts for the
wealthy are going to be part of this bill, even though it is not really
a Medicare bill.
Mr. Speaker, the list of problems in this so-called Medicare
agreement is overwhelming, and I really do not know how the Republicans
or groups like the AARP or the President and others who have endorsed
this agreement can live with their deceit and ill will against
America's seniors.
[[Page 29110]]
____________________
{time} 2100
UNDERMINING THE WHOLE CONCEPT OF MEDICARE
The SPEAKER pro tempore (Mr. Tancredo). Under a previous order of the
House, the gentleman from Washington (Mr. McDermott) is recognized for
5 minutes.
Mr. McDERMOTT. Mr. Speaker, I want to associate myself with the
remarks of the gentleman from New Jersey (Mr. Pallone). This week is
one of the most important weeks that I have seen in the 16 years I have
been in the Congress because we are dealing with an issue that is about
the question of what is in the common good.
We have no problem in this country believing that fire departments
and police departments and road systems and schools are issues of the
common good. We all pay our taxes. We all get benefits from them, and
we have since 1964 had a program in this country called Medicare which
was a program in which everybody put their money and people over the
age of 65 took out their money to pay for health care benefits when
they needed them. Everybody got the same thing everywhere in the whole
country.
But there have been people in this Congress who have always thought
that the idea of doing something collectively was somehow, I do not
know, socialism or something bad. I do not know. They believe that
everybody should be individually responsible for themselves, that they
should be on their own and that they should deal with these things in a
market, like they were buying cars or buying refrigerators or
television sets.
So we have a bill before us that is going to undo what we have had in
this country for senior citizens for the last 38 years. They have been
waiting. They have been trying to do this for 4 or 5 years.
I was on the Medicare commission. One of the Members of the other
body and the gentleman from Michigan (Mr. Dingell) of this body and I
represented the Democrats on that commission, and we managed to hold
off the disaster which is being foisted on the senior citizens and the
country itself in the next week.
This attitude about the common good really began to be undermined
under Mr. Reagan. It was his campaign slogan in 1980: Are you better
off than you were 4 years ago? Not are ``we'' better off than we were 4
years ago, but are ``you.''
This bill is going to say we are going to guarantee a premium support
to every senior citizen in this country; we are going to write them a
check, $5,900, $6,000, $6,300, whatever; and we are going to say now
you, grandma, take that check out and find yourself an insurance
company that will take care of what your needs are. You can stay in the
program of Medicare as we know it, but since the healthy and the least
sick will go out and find these good deals somewhere, who will be left
in the regular program? The old and the sick.
The price per person is going to go up, so they are going to raise
the premium on anybody who stays in the regular program. Is that
thinking about the common good, that we are going to pick on the ones
who are the old and the sick, and we are going to let the young and the
healthy seniors go off and make a good deal somewhere? No, it is not.
It is wrong, it is un-American, and it is undermining the whole concept
of Medicare.
The idea that all seniors put their money into the pot, nobody sits
around in this country and says, gee, I hope I get sick so I can use
some money out of the pot. There is nobody that crazy in our country.
Everybody wants insurance there when they are sick and particularly
they want to feel independent, they have taken care of it themselves.
It is not their children that have to do it or their grandchildren.
My father died a couple of years ago at 93. My mother is 93, and we
four kids in my family have not had to spend anything on our mother's
health or our father's health. Like every American, we pay our taxes
into the pot, and they have taken out when they needed to; and that has
gone on over the entire country.
What they are saying in this bill is send your mother out and let her
pick her own plan. That is wrong; and as we watch this debate,
understand that is what they are saying to every senior citizen. Here
is your money; good luck, Grandma; I hope you find something for
yourself.
I hope every Member votes ``no'' on this. We could do better than
this.
____________________
PRESCRIPTION DRUG PRICES
The SPEAKER pro tempore. Under the Speaker's announced policy of
January 7, 2003, the gentleman from Texas (Mr. Neugebauer) is
recognized for 60 minutes as the designee of the majority leader.
Mr. NEUGEBAUER. Mr. Speaker, I yield to the gentleman from Minnesota
(Mr. Gutknecht).
Mr. GUTKNECHT. Mr. Speaker, I want to thank the gentleman from Texas
(Mr. Neugebauer) for yielding to me, and I want to thank him for
claiming the time.
I rise tonight to talk about an issue where we have had a lot of
discussion so far tonight. We have had a lot of discussion during this
entire legislative session. In fact, we have had a lot of discussion
for a number of years, and that is the issue of the price that
Americans pay for prescription drugs relative to the rest of the
industrialized world; and the gentleman from Texas (Mr. Neugebauer) was
good enough to join us in what really is an overwhelming majority of
Members of the House who voted on this issue earlier this year.
It all started several years ago for me when I went to a town hall
meeting in Faribault, Minnesota, and there were a lot of seniors there;
and they were talking about their trips up to Canada to save some money
on prescription drugs. It was a little like a Nolan Ryan fastball. It
just blew right by me, and I guess I decided if they wanted to go to
Canada to buy their drugs, that is fine by me; and I never thought much
about the issue.
They continued to pester me about this, saying things like, why is it
we as seniors are treated like common criminal, just because we are
trying to save a few bucks on prescription drugs; and still I did not
pay much attention to the issue until something totally unrelated
happened.
The price of pigs collapsed. Live hogs dropped from about $37 per
hundred weight down to about $7, and we produce a lot of hogs in my
part of the world. My pork producers kept calling me saying,
Congressman, can you not do something about this; and so I called the
Secretary of Commerce, and I called the Secretary of Agriculture. I got
essentially the same answer. I should finish the story. What they
really complained about was all of these Canadian hogs coming across
our borders making our supply-and-demand situation even worse, and they
said can you not do something at least about all these Canadian hogs.
I called the Secretary of Agriculture, called the Secretary of
Commerce, got essentially the same answer. They said, well, that is
NAFTA. That is free trade. We cannot stop the Canadian hogs from coming
in, and all of a sudden a lightbulb went on over my head, and I said,
wait a minute, you mean we have free markets and free trades when it
comes to pork bellies, but not when it comes to Prilosec? I think the
Secretary of Commerce sort of chuckled and said, well, I guess that is
right.
That is when I began this little crusade of mine, and I began to
study this issue even more, and Mr. Speaker, the more I have learned,
the more I realized we in Congress need to do something about this
because we created this environment. Unlike some of my friends on the
left, I usually do not spend a whole lot of time saying shame on the
pharmaceutical companies. I say shame on us because essentially we have
created an environment that they are taking advantage of. We protect
them like no other product from foreign competition, but let me talk
first about the differences between what we pay in the United States
versus what they pay in the rest of the industrialized world.
Let me give my colleagues some examples. We were in Munich, Germany,
[[Page 29111]]
earlier this year; and we purchased 10 of the most commonly prescribed
prescription drugs off the shelf at the Munich airport pharmacy, and
here are some of the prices we paid.
We bought 10 tablets of Cipro, 250 milligrams for $35.12 American.
That same product here in Washington, D.C., is $55. We bought Coumadin.
That is a drug my father takes. It is a blood thinner that was
developed at the University of Wisconsin. The generic version is called
Warfarin. It actually is a rat poison. We bought it in Germany, 100
tablets, 5 milligrams for $21. That same package of drugs here in the
United States, same product, made by the same company, under the same
FDA approval, sells here in the United States not for $21 but for
$89.95.
Glucophage, a miracle drug for diabetes, a drug that we purchased in
Germany, 30 tablets, 850 milligrams, $5 in Germany, $29.95.
Pravachol, Prozac, Synthroid, all the same story. Come down here to
this one, and this is the one that really gets to my gizzard, and that
is the issue of the anticancer drugs, where we, American taxpayers,
have paid so much to develop these drugs. Tamoxifen, we bought, in fact
the actual number, we rounded it off here. It was $59.05 for 60
tablets, 20 milligrams of Tamoxifen. An amazing drug, a miracle drug in
terms of the treatment of breast cancer. That same drug we checked here
in Washington, D.C., local pharmacy, $360, six times more in the United
States. Here is what really chaps my hide.
American taxpayers paid to develop that drug. As a matter of fact,
through the NIH we paid to take that drug all the way through phrase
two trials. The American taxpayer paid to take that drug through phase
two trials, and then we licensed it to one of the pharmaceutical
companies, and they sell it back to us.
Clearly, we ought to pay our fair share of the cost of research. I
think we ought to subsidize the people in sub-Saharan Africa, but I do
not think the American taxpayers and the American consumers should have
to subsidize the starving Swiss or the starving Germans. It really is
time for them to pay their fair share.
Mr. Speaker, we have to ask is it really fair to make American
consumers pay six times more for a drug that they paid to develop and
take through phase two trials? This story goes on.
If we look down here at Zoloft, $82.52 in Germany, $132.95 for
American consumers and the story goes on; and some people say, well,
that is because in some countries they fix the prices. They have price
controls. In some respects that is true, but it is not always true.
For example, in Great Britain, the pharmaceutical companies can sell
their drugs for whatever they want. There are no price controls in
Great Britain. That is according to a report that was done and paid for
by the Pharmaceutical Association in Europe, done, we have a copy of it
in my office; and if any Member would like a copy, they can just call
and we will send them a copy. Essentially what they do in Great Britain
is they can charge whatever they want, but the British medical plan
will only reimburse so much for these drugs, and they found that
consumers in Great Britain have a tremendous amount of resistance to
paying huge co-pays.
I have a drug here, Cipro, a marvelous drug. We bought this in
Germany, $35 in Germany, $55 here in the United States, and my
colleagues do not have to take my word for it. They do not have to just
take my word for it now. More and more of the media are actually doing
their own research, and here is another copy and Members can get a copy
of this by going to my office, calling my office. I think we may even
have this on our Web site. There is one done by USA Today. This was
done by the Associated Press; and I will not bore my colleagues with
all the numbers, but they are exactly the same, and they compare the
prices.
For example, Lipitor in the United States, the best price they could
find online in the U.S., 10 milligrams, 90 tablets each, Lipitor,
$207.99. One can buy that drug in Canada, the online price, $132.07.
Paxil, $80.99 in the United States, $40.80 in Canada; and those stories
go on and on. Vioxx, an amazing drug. I guess it is an antirheumatoid-
type drug. Fortunately, I do not have to take it yet, but it is $85.99
in the United States. It is only $36.17 in Canada.
But the real issue is, why is it that the world's best customers pay
the world's highest prices? That is a fair question. It seems to me we
as policymakers for the United States of America ought to ask that
question, and we ought to demand better answers.
I want to come back to something I mentioned earlier; and I had the
Congressional Research Service do a little research for me, and I asked
is there any other product class that you can think of where we provide
so much protection from competition from the same product from abroad?
They went through and they did some research, and in fact, I will just
read from what the CRS says, and they are our official researcher. I
will quote. It said: ``We have been unable to locate any statutory
provisions similar in language and structure to the one in the Food and
Drug Cosmetic Act.'' In other words, nobody enjoys that kind of
protection.
Matter of fact, they went even further. They said: ``As indicated
above, our research has uncovered no other statute that contains
language similar to that in section 381(d),'' and this is the
interesting thing. Even heavily regulated industries such as chemicals,
pollutants and munitions are not apparently subject to the statutory
provisions limiting reimportation of the product to its original
manufacturer.
{time} 2115
In other words, there is no other product class.
Now, some people say, well, safety. It is all about safety. We want
to protect the consumers. Members, understand this, we keep incredibly
good records in terms of how many people have become seriously ill or
died from taking drugs from other countries. The FDA keeps those
records and the CDC keeps those records. As far as we can determine,
and this is under testimony that was given in front of a subcommittee
of the Committee on Government Reform, and it is an easy number to
remember, it is zero. It is a nice round number.
Now, you contrast that to how many people get very ill and die every
year from food-borne pathogens. Now, it is the Food and Drug
Administration, and yet for some unknown reason, some reason unknown to
me, we have set, for things like Cipro, we have set the bar impossibly
high. We have an absolutist standard. But when it comes to fruits and
vegetables, we barely even look at them when they come into the
country.
The bottom line is you can get just as sick, as a matter of fact you
can die, from food-borne pathogens. By their own studies, the FDA
acknowledges that 2 percent of the fruits and vegetables that come into
the United States every day, 2 percent of them, are contaminated with
food-borne pathogens, including things like salmonella. My colleagues,
if you get salmonella, and particularly if you have any other kind of
medical problem going on in your system at that time, you can die.
We know, for example, in the last 2 years, that 2,264 Americans have
become seriously ill from eating raspberries from Guatemala. Do we stop
raspberries from Guatemala from coming in today? I do not think so.
Forty percent of the orange juice that Americans consume comes from
other countries, and yet it comes right in. They say, well, gee whiz,
somebody might get in there and contaminate the drug supply. What about
contaminating the orange juice supply? It seems to me we have this
ridiculous measure when it comes to safety for prescription drugs and
virtually no measure when it comes to our food supply.
Now, I am not saying we need to have a much stronger implementation
of a security system for fruits and vegetables, but it seems to me if
you are going to have one standard for fruits and vegetables and
another standard for prescription drugs, at least we, as public
policymakers, ought to demand some kind of a rationale from the Food
and Drug Administration.
[[Page 29112]]
Now, the bill we are going to probably consider here at the end of
the week does nothing about allowing Americans to have access to world-
class drugs at world-market prices, and I think that is a terrible
mistake. Because I think, here in Washington, we have spent so much
time talking about coverage, we have to find ways to get people
coverage for prescription drug benefits, that we have missed the big
picture. The issue is not so much about coverage. Every senior in
America qualifies to buy prescription drug coverage. They can buy it
through the AARP. Prescription drug coverage is available in lots of
ways from lots of sources. The issue is not coverage, the issue is
affordability. And that is the tragic problem with the bill that we
will consider later this week, and that is that it does precious little
to deal with affordability.
Now, the sponsors are going to say, well, wait a second, Congressman
Gutknecht, we are going to create these systems, sort of like the
Federal Employees Health Benefit Plan, and that is going to bring down
and hold down the price of prescription drugs. Well, we have some
evidence of just how well the Federal Employees Health Benefit Plan
does in terms of lowering the cost of prescription drugs. Let me give
some examples.
For example, the Blue Cross/Blue Shield plan that services Federal
employees, they do get a discount on Coumadin. I mentioned here that
Coumadin, at the retail price in the United States, can be $90, or
$89.95. Well, the Blue Cross/Blue Shield plan does not pay $89.95. They
get a discount. They buy it for $55.31. The Mail Handlers Plan,
however, does not get their drugs for $55, they pay $72.24. My
colleagues, you can buy that same drug off the shelf in Munich,
Germany, at the Munich Airport pharmacy, for $21. In other words, the
Blue Cross/Blue Shield plan pays more than double what the Blue Cross/
Blue Shield Federal Employees Benefit Plan does.
And it goes on. Take Glucophage. We talked about Glucophage. Well,
this is in a different quantity. We are talking about a larger
prescription. But the Glucophage they are buying using the Federal
Employees Benefit Plan, they buy it for $90 for the Blue Cross/Blue
Shield plan. The Mail Handlers pay $118. The HMO plan, they get a heck
of a deal, they buy it for $18.30. But you can buy it right off the
shelf in Germany for $22 for that exact same drug.
And the story goes on with all of the plans. And Members, do not take
my word for it. This is information that was done by the gentleman from
Oklahoma (Mr. Istook) and his subcommittee staff, where they did some
comparisons about what we pay even through the Federal Employees
Benefit Plan versus prices off the shelf in Canada, in Europe, and
other industrialized countries. And the answer is that in every
category we pay a lot more, even with the discounts that we get for the
Federal employees.
As I say, I think we ought to pay our fair share, and I believe
research is important. I am vice president of the Committee on Science,
and I am proud of the fact we Americans represent 6 percent of the
world's population, but we represent over half of the basic research
done in the world. That is important. And I think it is important that
the pharmaceutical companies continue to do that kind of research. But
I think Members have to understand that we subsidize that research here
in the United States in three separate ways.
First of all, we subsidize it through the Tax Code. Now, when these
pharmaceutical companies say, well, we spend so much on research, well,
you might just ask them how much are you able to write-off on your
Federal tax forms? And if you do business in Puerto Rico, how much
Federal income tax do you pay? And in addition to that, is it not true
over the last 10 years you have taken over $28 billion in investment
tax credits for the research that you do; for research and development
tax credits? So you add it up, and the net real cost to the
pharmaceutical industry is much less than they sometimes say.
And, incidentally, more and more independent groups, bipartisan
groups, nonpartisan groups are coming to the same conclusion, and that
is that the pharmaceutical industry is now spending more money on
marketing and advertising, in fact, in some cases some companies
dramatically more on marketing and advertising than they are for
research. So research is important, but we pay for it through the Tax
Code. We subsidize it through the Tax Code.
We subsidize it also in the amount that we spend on research. I
mentioned that I am proud of the fact that we finance an awful lot of
research with taxpayers' dollars here in Washington. This year we will
spend upwards of $27 billion through the NIH, the CDC, even the
Department of Defense on research projects which will directly or
indirectly benefit the pharmaceutical industry.
And then, finally, of course, the way we subsidize them is in the
prices we pay. I think once is enough. I think once we help to develop
Taxoxiphen, we ought to at least be able to buy it at world market
prices for American consumers.
This is a huge issue, my colleagues. And it is one that more and more
seniors, and not only seniors but American consumers in general
understand this issue. And I think there is a feeling here that if we
just pass this prescription drug benefit plan that somehow this will go
away. Well, Members, you need to understand a few things about,
ultimately, the facts about this prescription drug benefit. And I am
not here to criticize the Medicare reforms, I think most of the
Medicare reforms we are talking about in this bill are very good, very
necessary, and perhaps even overdue. But when you start talking about
the prescription drug benefit, I hope you will understand, at least
from my perspective, the facts:
First of all, this bill, they purport, is going to cost $400 billion.
I think it is going to be a lot more than $400 billion, because we do
not have effective ways of dealing with the cost, we are going to pay
in the affordability of these drugs. But let us say it is $400 billion.
Well, the CBO tells us virtually every dollar of that is going to have
to be borrowed. To pay for this new entitlement, we are literally going
to have to borrow the money from our kids and grandkids. In some
respects, I think that is a terrible tragedy.
But as we look at the overall issue, what is going to happen is next
year, by the time people begin to understand this, they are going to
say, now, wait a second, and whether it is going to be 16 percent or 36
percent, no one really knows, but we do know this, there will be people
who have prescription drug coverage today, through their former
employers, who are going to be pushed off of the system and all of a
sudden they are going to be thrown into this new government plan, and
what they are going to find out is it is not as generous as the plan
that they had through their former employer, for the most part. And
they are not going to be happy.
I think a lot of conservatives and taxpayers are not going to be
happy when they see the cost of this. And I think as they look at the
final issue, if next year they look at the system and say, wait a
second, you mean even after this, we are still going to be spending
$360, or some number, let us say we get a 15 percent discount or a 20
percent discount off $360, that is roughly a $72 discount, that gets
the prices down to about $290. That still is a lot more than they are
paying in Europe for the same drugs.
No, I think Americans should pay their fair share. I think we are
paying our fair share. But I think if we pass this bill later this week
without dealing with the fundamental cause, or one of the fundamental
drivers of this whole debate in affordability, it seems to me we are
making a huge mistake. And it is one I think the voters will not be
appreciative of once they begin to realize.
Yes, we need to reform Medicare. We have 50 million baby boomers
moving on their way towards retirement. And it is inevitable that as we
go forward, we have to do something about reforming the Medicare
system. We have to make it fairer. We have to give consumers and
seniors more choices. But if
[[Page 29113]]
we are going to add a prescription drug benefit to the package, this
new $400 billion entitlement, and going up in my opinion, then it seems
to me we have an obligation to make sure American consumers, American
taxpayers are getting their monies worth.
So I would hope that Members would at least pause and ask the
question what are we going to do about opening up markets? What are we
going to do to control the cost of these prescription drugs? What are
we going to do to make them more affordable for American consumers? I
think the answer ultimately to me is quite simple, and that is give the
market access. Do what we do with those pig producers, require some
competition across the border. Allow prescription drugs to work as
virtually every other market does.
When markets work, when competition works, prices will level. And the
net result is that we will pay considerably less in the United States.
And some of the people in other industrialized countries are going to
probably have to pay a little more. But that is the way markets work.
They tend to level.
Mr. Speaker, again I want to thank the gentleman from Texas (Mr.
Neugebauer) for giving me the chance to present some of these things
tonight. I know that not everyone agrees with me. I try to be
respectful when I debate and discuss these, but it is such an important
issue. And if I could just close with one other point, because some
people say this cannot be done safely.
Members, I would encourage you to take a look at the newest
technology that exists today. This is not pie in the sky. I have the
technology right here in this little vial literally about 100 computer
clips. And within 2 years, most of the products being sold at Wal-Mart
stores will have these on them. This is the new UPC codes. And these
little computer chips in this vial, there are about 100 of them, they
are so small you cannot see them, but they will be able to track that
product literally so that you will know when it runs through the
scanner that this Cipro was produced at the Munich, Germany, plant on
September 3, 2001 at 1 p.m. in the afternoon and it is in fact Cipro.
So the idea that we do not have the technology to do this today is
really laughable. It exists. It is being used on other products. It
will expand and be used even more. But, Mr. Speaker, and particularly
the gentleman from Texas (Mr. Neugebauer), I appreciate having the
opportunity to present some of these things. If Members would like more
information from my office or want to go to my Web site, simply go to
gil.house.gov. We have some great charts which explain this.
As John Adams said, ``Facts are stubborn things.'' This is a stubborn
thing. This chart is not going to go away. And under the bill we are
considering this week, it will not change much. Ultimately, we have the
power to change it. The FDA works for us, not the other way around. It
is not shame on the pharmaceutical industry, it is shame on us.
____________________
DECLINING MEDICARE REIMBURSEMENT FOR PHYSICIANS
The SPEAKER pro tempore (Mr. Tancredo). Under a previous order of the
House, the gentleman from Alabama (Mr. Gingrey) is recognized for 5
minutes.
Mr. GINGREY. Mr. Speaker, I rise again today, as I have a number of
times before, to call attention to declining Medicare reimbursements
for physicians.
Effective January 1, 2004, physicians and other providers paid
pursuant to the Medicare physician fee schedule, face at least a 4.5
percent cut in reimbursements.
{time} 2130
Mr. Speaker, I have been outspoken on this issue and have described
several instances in which the citizens of Georgia and our Nation will
be negatively affected by this cut. There is a staffing issue within
the trauma center at Grady Memorial Hospital in Atlanta. Dr. Harry
Sherman in Augusta is contemplating retirement due to a lack of
adequate Medicare reimbursement and the high cost of liability
premiums. And more specifically, I demonstrated the decreasing
reimbursement for, and thus the eventual reduction in access to very
common procedures provided to Medicare recipients.
I would like to bring the attention of my colleagues to a survey
conducted by the American Academy of Family Physicians. This survey is
not necessarily scientific, but I believe it is indicative of the
problem we are facing. AAFP found that 24 percent of family physicians
no longer accept new Medicare patients. After the 4.5 percent cut was
announced, AAFP surveyed again to find out what its members would do if
the cut takes effect. As detailed in a release from the American
Academy of Family Physicians, only 36 percent said they would take new
Medicare patients if these new cuts occur.
Mr. Speaker, come January, doctors are going to take a cut in their
reimbursement for treating our Nation's most needy individuals. There
is an old saying, however, that the night is always darkest just before
the dawn. With a physician-reimbursement disaster looming, Congress is
on the verge of a breakthrough. Housed within the Medicare
modernization bill is temporary relief for the medical community. House
and Senate negotiators have announced an agreement that will
potentially bring this legislation before the Congress this week. I
thank the gentleman from California (Mr. Thomas) and the subcommittee
chair, the gentlewoman from Connecticut (Mrs. Johnson), and those from
the other Chamber, such as Senators Frist, Grassley, Baucus and Breaux,
who have worked so hard to get us to where we are today.
I encourage all of those involved in this process to continue to act
in the best interests of the American people, but especially our
seniors and the medical community on which they so desperately depend.
Let me be clear, as a physician Member of the United States House of
Representatives, I believe that we must pass the Medicare conference
report now. For nearly 40 years, Medicare has provided necessary health
care to millions of patients across this country. Another steep cut in
reimbursement rates would have been devastating for the physicians who
care for Medicare patients; but with the language that has been
crafted, the physician-reimbursement update would be a positive 1.5
percent.
This chart is representative of the positive impact the current
Medicare legislation will have on Medicare providers throughout the
country. For example, New York will see a benefit of $865 million;
Washington State benefits $155 million; Texas, $641 million; and most
important to me and my colleagues from Georgia, our State will benefit
$254 million. All 50 States will see a positive impact from the current
version of the Medicare conference report.
I cannot overstate the importance of just this one piece of the
overall Medicare bill. It is my hope this will allow for the continued
access to quality health care for our seniors. I am proud that as the
door was slamming shut on our seniors' health care, this Congress stood
up, and will stand up, in a bipartisan fashion and hold this door open.
Mr. Speaker, one of the greatest achievements of the Medicare program
is the access to high-quality care it has brought to our Nation's
seniors and disabled patients. This level of access is more likely to
continue in light of this temporary fix. This legislation will allow
Congress and the Center for Medicare Services the time to work together
to finally find a more permanent solution by revamping the Medicare
payment formula.
Doctors are the linchpin of the Medicare program. Let me say that a
prescription drug plan is no benefit at all unless there are physicians
willing to accept Medicare patients and to write those prescriptions.
We need to pass this conference report and pass it now.
____________________
IRAQ WATCH
The SPEAKER pro tempore (Mr. Tancredo). Under the Speaker's announced
policy of January 7, 2003, the
[[Page 29114]]
gentleman from Pennsylvania (Mr. Hoeffel) is recognized for 60 minutes
as the designee of the minority leader.
Mr. HOEFFEL. Mr. Speaker, I am here tonight with my colleagues to
resume the Iraq Watch we have been conducting almost every week on the
floor since sometime last spring. I believe it was April that we
started speaking every week on the floor about our concerns about our
policies in Iraq, trying to ask questions, trying to seek answers from
the administration regarding the policies that we have been pursuing.
Also, we have been suggesting changes that we would like to see in
those policies. Of course, a lot has happened in Iraq since last
spring, since the very impressive and brave work of our military men
and women, the impressive victory that they won over Saddam Hussein, a
victory no one thought was in doubt, but everyone was happy to see with
minimal loss of life. We thought that the military performed with great
courage and great skill.
Since that time, of course, it has become clear as the military
battle was conducted, the planning for and the actual reconstruction
and security of Iraq has been very poor. We have all been disappointed
in the difficulties. The continuing casualties have been heartbreaking.
The inability to get the American-appointed Governing Council to work
effectively to try to bring the Iraqi society together has been
disappointing. I think the Bush administration finally understands they
need to change their plan for the ultimate creation of a new government
and a representative democracy and hopefully a pluralistic society in
Iraq.
Recently the administration has announced a change. They will no
longer ask that the Governing Council in Iraq be responsible for
writing a new constitution and holding new elections before America
gives up authority for the reconstruction and the occupation of Iraq.
Instead, Mr. Speaker, we are now putting time limits on our
occupation. We have apparently announced that we will give to the
Iraqis the responsibility for their reconstruction next summer,
although the President has been clear, and I agree with the President
that we must continue to keep our forces there to make sure the tyrants
and the murderers do not come back if the Iraqi democrats-to-be fail to
move forward and secure their country.
The question is what is the best policy for this country? How do we
best achieve a stable and secure Iraq, which is a goal all of us share?
How do we best achieve the creation of a pluralistic society? How do we
best establish a representative government based upon principles of
self-government and tolerance and cooperation with the rights of women
protected, with sharing of responsibility between the three great
ethnic groups in Iraq, the Sunnis, the Shiites and the Kurds? How do we
best achieve this in the face of a security threat in Iraq where our
troops are not safe, where the guerilla attacks against our troops
continue, where there is no Iraqi Army yet ready to step forward to
provide for its own security, where the Iraqi police are not yet
capable of providing for security domestically? How do we best proceed?
Some fear that the President after holding on to power and not
allowing the Iraqi Governing Council or any other group to have any
decision-making power, some fear that the President now is moving too
quickly to give up power to the Iraqis; and I think it is a very
legitimate question because if we leave too early, if we leave a vacuum
in any way in Iraq, only bad things can happen, whether Saddam Hussein
or his followers attempt to come back, whether a new group of lawless
thugs attempt to take over, whether forces from other countries attempt
to infiltrate and take over Iraq, none of that would be good. None of
that would be good for the Western democracies; none of that would
honor the sacrifices that brave young Americans have made, including
those who have made the ultimate sacrifice and have died serving their
country.
A premature departure from Iraq by this country could lead to a less
stable country in Iraq. It could lead to a less stable Middle East. It
could allow Iraq to become a haven for terrorists, which is a process,
unfortunately, already under way, a haven which did not exist when
Saddam Hussein was in power. As murderous a tyrant as he was, he
operated in a secular fashion and did not apparently have relationships
with the religious fundamentalists and extremists that form al Qaeda
and other terrorist groups. But now with the instability in Iraq, it
has become a magnet for those who want to attack Americans and disrupt
the search for peace in the Middle East.
It is my view, Mr. Speaker, the way to best achieve our national
goals in Iraq is to recognize that while this country is uniquely
capable of winning military victories and facing down tyrants and
working for the liberation of oppressed people, we are perhaps not best
suited for nation-building; that we are probably not using our
resources and our skills to our highest potential when we get bogged
down in having to administer a country. It is admirable that we are
willing to pay for the reconstruction or some of the reconstruction of
a nation, and that is a great and wonderful American tradition of
rebuilding vanquished foes and those less fortunate. But how do we best
achieve this stabilized society, representative government and the
creation of a pluralistic society where tolerance and economic freedom
and personal liberty can flourish?
I am here tonight to say that I continue to believe that we should
turn to our multinational organizations such as the United Nations,
NATO, and others, to help us with nation-building in Iraq. I would
point out that the United Nations is perhaps uniquely qualified through
experience and organization to be responsible for reconstruction and
nation-building.
In fact, this is what the United Nations was created to do in 1945. I
fear that an almost irrational opposition to the notion and the concept
of the United Nations from some on the other side of the aisle is
preventing this country from calling upon the United Nations to assume
this burden. There are many reasons why I would like to see this
happen. It is not only to get out from under the financial burden of
reconstructing Iraq on our own. It is partly that; it is also partly to
share the responsibility for the reconstruction of Iraq. It is to share
the credibility that is needed, to call upon other nations and
multilateral organizations like the United Nations to provide the
stability and take away from the equation some of the animosity that
has wrongfully built up against America, but nonetheless exists in some
part of the world.
{time} 2145
Frankly, the United Nations is designed to do this kind of work. It
is designed to relieve the United States from taking on all of the
burden of reconstructing a country and building a new Nation. If we
turn to the United Nations, we will still be the senior partner. We pay
25 percent of the bills of the United Nations. We will still have
tremendous influence over what happens, but we would be in a position
where the responsibility and accountability and the burden of
reconstruction would be shared with an organization that is created to
do that very thing.
Secondly, I do not believe, Mr. Speaker, that anyone, the United
States, the United Nations, or anyone else, will have success in the
stabilization of Iraq, not the least of which I would include the Iraqi
Governing Council itself, unless we establish security in Iraq, and
that has not been done. Again, I think it is asking too much of our
American military to become a long-term occupying power, to have our
young men and women serving in what, in parts of Iraq, seems to be,
literally, a shooting gallery, with 20 or 25 daily attacks on American
Forces and our Coalition Forces. We are not in a position to have
secured Iraq. We clearly need more troops to do that. Yet, in my view,
it should not be America's burden to send more troops.
So I would say that it is by far the best strategy to turn to NATO,
the North Atlantic Treaty Organization, which is a military
organization, to
[[Page 29115]]
provide security in Iraq. NATO, of course, historically never fired a
shot, was designed as a defensive alliance to keep the world safe from
any hostility from the Soviet Union. In the conflict in Kosovo, the
NATO forces were used for the first time out of the traditional
confines of Europe, or at least on the southern stretches of Europe,
used for the first time in a proactive way to defeat another tyrant,
another dictator, Milosevic, in Kosovo. And NATO performed brilliantly
and was able to liberate that country from the abuses of that dictator
and has also now moved into Afghanistan to take over some of the
security functions in that country. I believe that NATO would be the
appropriate international organization to provide security in Iraq
while we turn to the United Nations to take primary responsibility for
the reconstruction of Iraq.
Now, none of this will happen, Mr. Speaker, none of this will happen
until the United States is willing to give up some authority in Iraq.
We cannot continue to call all of the shots in Iraq and expect our
traditional allies to send troops or money or advice or anything else.
It is time for us not just to put Iraqis back in charge, because it is
not yet clear Iraqis are able to be back in charge, particularly, with
the insecure conditions that exist there; but it is time for us, in
concert with our traditional allies, in concert with international
organizations that we created at the end of the Second World War, that
we established for the very purpose of Nation-building. Nation-building
was not a phrase then, it is a newer phrase, but the concept is exactly
why NATO was established, and, particularly, why the United Nations was
established. It is time for us to use our diplomatic skill to give up
the necessary authority and responsibility, to share the obligations
with these two international organizations, so that we can more quickly
and more effectively and more safely stabilize Iraq, establish a
pluralistic society, and move them towards self-government.
Now, Mr. Speaker, I would like to turn to my colleague, the gentleman
from Massachusetts (Mr. Delahunt), one of the senior members of the
House Committee on International Relations and a founding member of
Iraq Watch, my good friend.
Mr. DELAHUNT. Mr. Speaker, I thank the gentleman. It is good to be
here with my colleague tonight and share a few observations regarding
this situation in Iraq. Also, I think at some point in time, I think it
is necessary to present some information to the American people and to
those who are listening here tonight relative to what is transpiring in
Afghanistan.
I think to sum up what the gentleman said, one only has to look at
the cover of the November 3 edition of Newsweek magazine, and it is
entitled, ``Bush's $87 Billion Mess. Waste, Chaos, and Cronyism. The
Real Cost of Rebuilding Iraq.''
It has become a matter of concern, as the gentleman well knows, not
only to Members on this side of the aisle, Democrats, but clearly to
our colleagues on the Republican side, particularly in the United
States Senate, because if there is any term that best characterizes
what is occurring, it is chaos.
Mr. Speaker, in our previous efforts in terms of Iraq Watch, we
discussed the lack of post-major combat phase planning. And again, that
opinion was shared by many, most specifically, the chairman of the
Senate Foreign Relations Committee, Richard Lugar who, in fact, had
written an article that I thought was very incisive and appeared in the
Washington Post. But not only do we not have a plan, but the plan seems
to change almost on a daily basis.
If my colleagues remember, I think it was, in fact, a colleague of
ours here in the House, a senior Republican Member of the House
Committee on International Relations, the gentleman from Iowa (Mr.
Leach), highly-regarded and well-respected by all Members, who implored
the President to establish, once and for all, who is in charge of
whatever plan may or may not exist out there. Initially, Jay Garner, a
former general, was dispatched to Iraq to work with Iraqis that were
favorably disposed to the United States to begin the process of
rebuilding. And, after a relatively short period of time, there was a
change there. And L. Paul Bremer became, if you will, the viceroy of
Iraq. Mr. Bremer indicated that his boss to whom he reported directly
was the Secretary of Defense Mr. Rumsfeld. Yet, several months
thereafter, there was an announcement from the White House that in fact
it was the National Security Adviser, Condoleezza Rice, who was vested
with the responsibility of coordinating the plan for Iraq. Of course,
recently we learn that Mr. Bremer, because of the deteriorating
situation in Iraq, either reached out or was summonsed by the White
House for a special meeting directly with the President.
Mr. Speaker, I think it is important that there be one individual
that can be held accountable, other than the President, for the shaping
of this policy that means so much to the American people with our sons
and daughters tragically dying there on an all-too-frequent basis, and
to the American taxpayers who were asked by this White House to
appropriate some $87 billion on top of the $79 billion that we have
already spent in Iraq to create security in Iraq and to rebuild Iraq,
if you will, to reconstruct Iraq. Many of us on this side of the aisle
were adamantly opposed, primarily based on the fact that this money was
not in the form of a loan, but was a gift to Iraq, a nation with
incredible resources, some of the largest reserves in terms of energy
anywhere in the world, second only to Saudi Arabia. And hopefully, at
some time in the not-too-distant future, would clearly be able to repay
the American taxpayers for the sacrifices that they are making now
while we are dealing with these burgeoning deficits that will at some
point in time be a severe drag on our economy.
But not only do we have a confusion in terms of who is in charge, but
we have had a series of different plans. It would appear now that the
most recent plan is what I would describe as the French plan, the plan
that France suggested would be the most fruitful initiative in terms of
bringing stability and rebuilding Iraq. I find that rather ironic,
given our recent rather divisive relationship with France.
Mr. HOEFFEL. Mr. Speaker, the gentleman refers to the latest plan as
the French plan. The New York Times on Sunday, in looking at the plan
that they characterize as throwing the problem to the Iraqis, called it
the ``hot potato plan.'' French, hot potato french fries perhaps,
whatever.
Mr. DELAHUNT. Mr. Speaker, maybe this was a hot french fries plan; I
honestly do not know.
I notice we have been joined by the gentleman from Ohio (Mr.
Strickland), our friend, who is also a member of our Iraq Watch group.
But I think what is difficult to accept is that what we have now
achieved is the expenditure of billions of dollars of American
taxpayers' money. Of course, the White House made note of the fact that
there were other international donors in a conference in Madrid. But
what I thought was particularly noticeable in Madrid was that not a
single donor there, with the exception of the Japanese, provided gifts,
outright grants like this institution did and like this White House
did, but no, they decided they would loan the money so that their
people would be repaid rather than our people who are carrying the
entire burden.
But here we are, we have suffered, and let us be very candid and
frank: We have suffered a loss of prestige all over the world. One only
has to turn to nightly news shows. Leading the news now are the
preparations in Great Britain for the visit of our President, President
Bush who, according to the most recent polls is viewed negatively by
our ally, the English people, by 60 percent. Sixty percent of the
English people disapprove of President Bush. Whether one is a Democrat
or whether one is a Republican, that is painful to us. That is painful
to us. We do not wish our President to be viewed as negative by our
ally. And recently during the course of a hearing on the Subcommittee
on Latin America, data was put forward that 87 percent of our
[[Page 29116]]
neighbors here in this hemisphere disapprove of our President. Again,
that pains us all.
{time} 2200
That pains us all.
Mr. HOEFFEL. Mr. Speaker, may I interrupt the gentleman from
Massachusetts (Mr. Delahunt) again?
There was additional polling information made available over the
weekend from a European pollster, I do not know the name, saying that a
majority of citizens in virtually every European country except, I
believe, Italy, view the United States as the most likely country to
start a war or to create instability. Now, I reject that view
completely. We are the peacemakers and we are not the war makers; but I
wanted to emphasize the gentleman's point that something has gone wrong
with the way we are viewed by our friends around the world, let alone
how we are viewed by our enemies. I am not so concerned about how the
enemies look at us, but when the Western European democracies have a
negative view of our President and our country, a negative view that I
do not share, but that they have come to that conclusion, something is
dramatically wrong.
Mr. Speaker, would the gentleman from Massachusetts (Mr. Delahunt)
mind if we bring our colleague into the conversation?
Mr. DELAHUNT. Mr. Speaker, I would welcome our friend, the gentleman
from Ohio (Mr. Strickland).
Mr. STRICKLAND. Mr. Speaker, it is good to be with you this evening.
I was asked a few days ago by a reporter in my district why the
emphasis on what has gone wrong in Iraq. The question was phrased in
this way: Should you not be concerned about the future and what we do
next? And my response was this: The same people who are in charge of
planning for the future are the people who have gotten us to the point
where we are now. And unless we look at how we got into this situation,
unless we scrutinize the decision-makers who brought us to this point,
we cannot have confidence that we are being taken in the right
direction as far as the future is concerned.
If I could just say a word about the $87 billion that my friend
referred to earlier. I think the American people need to know that if
we were to take the 435 congressional districts in this country, and we
were to divide $87 billion by the 435 congressional districts, what we
would come out with is $200 million that could be spent in every
congressional district in this country for the needs that exist back
home, for the jobless people, for the children who do not have health
care, for the older people who do not have prescription drugs.
Mr. DELAHUNT. And, Mr. Speaker, for our veterans.
Mr. STRICKLAND. For our veterans. And that leads me to the fact that
we are underfunding veterans health care by $1.8 billion. $1.8 billion.
We are sending $87 billion to Iraq in addition to what we have already
spent this year, and we are being so stingy with our veterans that we
are underfunding their health care by $1.8 billion.
And the American people need to know that over in the Senate they
passed an amendment to add an additional $1.3 billion of that $1.8
billion shortfall. And the very day that amendment passed the Senate,
the White House put out a statement opposing it. Now, think of that.
Here we have a President, we have a President who has asked for $87
billion for Iraq and takes active opposition toward the efforts in this
Congress to give an additional $1.8 billion to our veterans. I mean, I
think that is shocking; I think it is something the American people
would object to. And they need to know about that.
But I want to talk about one other thing, if I can, in regard to this
war effort, and it is something that I have talked about and I think
others have talked about on this floor before. But it is something that
the American people need to know about. As our soldiers continue to die
on a daily basis in Iraq, I think Americans have a right to ask for
answers from the President, from our Secretary of Defense, from the
Pentagon: Why do all of our troops who are fighting for us this very
moment in Iraq not have the best protective armor available? When will
this armor be available to all of our soldiers? Why were soldiers sent
into battle with these cheap, Vietnam-era flak jackets that are not
capable of stopping bullets?
I have asked the Secretary of Defense, Mr. Rumsfeld, to provide
answers as to how many American soldiers have been killed or have been
seriously wounded in part because they were not adequately protected.
And I have asked the Secretary to commit that we will not provide this
protection to foreign troops until every, every American soldier in
harm's way is so protected.
Somebody needs to be held accountable for this. We had months to
prepare for this war, months during which we knew we were likely to be
sending young Americans into harm's way. And yet we did so without
giving them this protection. Somebody ought to be held responsible.
Either the President or Secretary Rumsfeld or some lower-level
individual apparently made the decision that this was not a priority.
And I believe American soldiers have lost their lives because of this
failure to plan, failure to set appropriate priorities. And who is
going to be helped accountable, and when is the situation going to be
altered?
Americans need to know that as we sit in our homes and watch TV, and
those of us who work in this Chamber are here, we carry out our daily
lives, that there are young Americans over there in tanks and in
Humvees and walking patrols that do not have the most basic protection,
this body armor that is capable of stopping bullets. Why do they not
have that protection?
Mr. DELAHUNT. Mr. Speaker, would the gentleman from Ohio (Mr.
Strickland) yield for just a moment.
I met with families of Reservists and National Guard, military that
are serving in Iraq currently. They have been trained as a
transportation unit. They are now serving in a different role that
exposes them to great danger. They are using their own equipment,
trucks that have no armor protection, that are open, that leave these
men and women on the back of what I would call a large pickup vehicle
as a sitting target. These families were outraged. One actually had to
go to a military hardware store, presumably, to purchase for their son
a $900 kevlar suit because the parents simply could not sleep at night.
And it cost that family $400 to send it via the United States Post
Office.
Mr. STRICKLAND. General Myers and others have been widely quoted in
the press as saying this is not a money problem; it is a supply
problem. Well, it is a supply problem because this war was under way
for almost 7 months before the first request came to this Congress for
resources to provide this protection. But even beyond that, I got a
call in my office, week before last, from a company that told me they
had 30,000 of these plates in stock, plates that meet specifications.
Because they say they also provide them to our Army Rangers.
I do not know how those responsible can sleep at night. They ought to
stay up until they solve this problem.
I just met with a young soldier back in my district who was wounded
by shrapnel. He told me that he sees no way that this Pentagon
commitment to have these vests delivered to all of our troops by
December is going to be possible. He says there are thousands of troops
over there without this most basic protection.
Now, how can we trust these people to tell us what is the best course
of action for the future of this war in Iraq when they have been so
incompetent and negligent in providing our troops with this most basic
protection?
Mr. DELAHUNT. And yet, Mr. Speaker, they would criticize those who
ask those questions and instead put forth, if you will, a PR campaign
to say what is right in Iraq. But it is time, I believe, to listen to
the troops who give us insight. We all know, for example, because we
travel abroad and oftentimes we visit our troops, that these trips are
very carefully structured so that only those things the civilian
leadership of the Department of Defense wants us to hear is provided
us.
[[Page 29117]]
If I could just indulge my two friends for a moment. Back in mid-
October there was a report in The Washington Post and it is entitled,
``Many Troops Dissatisfied, Iraq Poll Finds.'' A broad survey of U.S.
troops in Iraq found that half of those questioned described their
unit's morale as low and their training as insufficient and said they
do not plan to reenlist. Now, this was not a poll conducted by The
Washington Post or the New York Times, or the Los Angeles Times or the
Boston Globe. It was a poll that was conducted by the Stars and Stripes
newspaper, a newspaper funded by our Pentagon, our Department of
Defense.
The findings, if I can just go on, the findings drawn from 1,900
questionnaires presented to U.S. servicemembers throughout Iraq
conflict with statements by military commanders and Bush administration
officials that portray the deployed troops as highly spirited and
generally well prepared. Though not obtained through scientific
methods, the survey results indicate that prolonged tours in Iraq are
wearing down a significant portion of the U.S. force and threatening to
provoke a sizable exodus from military service. And yet the paper
quotes General Sanchez, commander of the U.S. forces in Iraq, saying in
a September 9 interview for this particular series, ``There is no moral
problem.''
Of course, as we know, the Bush administration has launched this
campaign. But the Stars and Stripes, the military's paper, raised
questions about what visiting dignitaries, such as us and our other
colleagues who have visited Iraq, get to see. Let me quote again from
the Stars and Stripes: ``Many soldiers, including several officers,
allege that VIP visits from the Pentagon and Capitol Hill are only
given hand-picked troops to meet with during their tours of Iraq,'' the
newspaper said in its interview with General Sanchez.
The phrase ``dog and pony show'' is usually used. Some troops even go
so far as to say they have been ordered not to talk to VIPs because
leaders are afraid of what they might say.
Let me say it is about time for the unvarnished truth to be presented
to the American people. And that is what we attempt to do during the
course of this hour, of which we have had many.
Mr. STRICKLAND. Mr. Speaker, if I could just say a word about the
troops. I spent some time last weekend with two young soldiers from my
district, both of whom have been wounded, and they have come back for
medical treatment. They are good, loyal, patriotic soldiers. They are
going to do their duty. They care about Iraq. They care about the Iraqi
people. They care about the final outcome in that country. The problem
is not with our troops. These are wonderful young Americans who are
simply doing what they are called upon to do. And they are doing it
well.
The problem, as I see it, exists with the decision-makers, those who
sit here in the safety of the offices in Washington D.C. and elsewhere
and make decisions which affect real lives. I had breakfast in a
restaurant in Ohio a couple of weekends ago. As I was finishing my
breakfast, I struck up a conversation with a young woman sitting in a
booth next to me. She was leaving Ohio as soon as she finished her
breakfast and driving to Baltimore to meet her husband, who is
stationed in Africa and who is coming home, who is coming home for a 2-
week leave. And then she told me that she had just gotten her orders
and she is being deployed to Iraq. The children are going to be taken
care of by the grandparents.
{time} 2215
I just share that with you to emphasize the fact that we are talking
about real people, real mothers and dads, real sweethearts, real sons
and daughters. These are real Americans, and decisions are being made
to expose them to the most incredible danger.
The question is, is this war being pursued in a way that is rationale
and reasonable? I still wish that this President, this administration
would go to the world community, would seek out the help that we need,
would internationalize the effort in Iraq, would stop our soldiers
being the only targets basically.
We hear talk about a coalition. Let us face it. There are a handful
basically of coalition forces in Iraq. Most of the young people there
are being killed and injured and shot at are American troops; and we
need to internationalize our effort, spread this responsibility and not
just simply allow our kids, our children for the next, no one knows for
sure. The most recent estimate I have heard is that at least for 5
years our troops are likely to be there, and I just do not think the
American people want this to continue as it is unfolding before our
eyes. Every day we see it happening.
Mr. HOEFFEL. Mr. Speaker, I agree with the gentleman. The problem is
not with our troops. It is with the policymakers and our planners here
in Washington.
I referred earlier to the New York Times article this Sunday. They
entitled it ``Iraq Goes Sour.'' And I take issue, actually, with one of
the claims they make here. They blame the intelligence agencies for the
failures to understand what was actually happening in Iraq. The
editorial said, for example, the Central Intelligence Agency we now
realize had no idea what was going on inside Iraq. They continue, the
CIA's estimate regarding weapons of mass destruction were basically
worst-case scenarios of what the Hussein regime might have been up to
in the interim, in 1998 when inspections were cut off.
They continue, that was apparently a mistake, if an understandable
one. The reality I think is different. I think that while the
intelligence agencies clearly did not get it right, they were telling
the policymakers last fall before Congress voted on whether or not to
authorize the war, they were telling the White House that there was
great uncertainty about what Hussein had and what he did not have. We
know that now. We did not know it then.
This past Spring, 6 months after we voted, and after the war was
fought and won, at least according to the President's proclamation on
May 1, at least the military's battle was won, if not the guerilla
battle. The House Permanent Select Committee on Intelligence made
available to rank and file members 18 or 20 boxes of intelligence
information, most notably the Defense Intelligence Agency report of
September 2002. And then the great summary report the national
intelligence estimate of October of 2002. And I have read the executive
summaries of those documents. It is very long, and I spent a couple of
hours reading it. It would take days to read all of those boxes, but
those summaries which are still classified are replete with
uncertainties, with the agencies saying, well, we believe he has got
this. We believe he has got that but we are not sure. He had this
amount of weapons in the past and we are not quite sure where they are
today.
They have made the case, as the Vice President has said, that Hussein
was trying to do certain things, but they were full of uncertainty. And
my objection is none of that uncertainty was communicated to Congress
and to the American people. The President and all of his people, and I
want to give an example in a second, told us with complete clarity and
certainty that Hussein had these weapons. We knew where they were. We
knew how much they weighed. We knew everything about them. We were
going to get them and we could not trust him for another moment. And it
is my view that it is not the intelligence agencies that failed, but
the politicians.
Mr. DELAHUNT. Mr. Speaker, I thank the gentleman for yielding to me.
I cannot agree more. Ironically, in this week's edition of Newsweek
magazine, there is an article that I would commend to all of our
colleagues here in the House and to the viewing audience here tonight.
This is very important to read. As one can see, there is a picture of
the Vice President on the cover. It is entitled, ``How Dick Cheney Sold
the War. Why He Fell for Bad Intelligence and Pitched It to the
President.''
The Central Intelligence Agency, I daresay, made a solid effort from
what information now appears to be back in the public domain. I think
it is safe to
[[Page 29118]]
conclude that key players led by the Vice President, supported by
Secretary Rumsfeld, and Under Secretary Wolfowitz, and Under Secretary
Fife, cherry-picked, if you will, those pieces of information that
buttress their case and made unequivocal statement to the American
people.
It is very fascinating when the American people and the United States
Congress learn that there is a special covert group within the
Department of Defense. And this is within the civilian leadership,
called the Office for Special Plans that was running a parallel
operation in terms of intelligence analysis. It was that group that was
doing the cherry-picking. It was that group that got us into this war.
They made unequivocal statements, like Secretary Rumsfeld, that those
weapons of mass destruction, we know where they are. They are in
Tikrit, in the west here and in the east here. And, of course, we have
discovered after expending close to a billion dollars to just simply
looking for them that they do not exist, much to our embarrassment and
again our loss of prestige.
So I think it is important that those who attack the CIA often do it
in a way that I think reveals their own political agenda. Again,
demeaning the professionalism of the men and women that serve in the
CIA is not the way to have a constructive debate about what we ought to
occur, what we ought to be doing right now.
Mr. STRICKLAND. Mr. Speaker, I would just concur with the gentleman
that that is a very interesting Newsweek article. I read it a few hours
ago. It is very disturbing because it does lay out how under the Vice
President's leadership, this Office of Special Plans collected their
own information and drew their own conclusions, and then they use those
conclusions to encourage the kind of action that occurred.
Now, the fact is that the President has finally admitted quite
publicly, in spite of the Vice President's statement to the contrary,
that there is no evidence that Iraq or Saddam Hussein was responsible
for the attack upon our Nation on September 11, 2001. That is a very
critical conclusion, I think, for us to have come to. Because given
that and given the fact that we had weapons inspectors in Iraq and they
were asking for more time, would not you think that if there is
uncertainty about exactly what Saddam Hussein has or may have, that
there is no evidence that he was involved in the direct attack upon our
country, that we would have approached this situation a little more
cautiously, a little more thoughtfully, that we would have expended the
time that the inspectors were asking for.
If we had done that, it may have been possible. It may have been
possible.
Mr. DELAHUNT. Again, this is a situation that is continuing today
where a conclusion or an opinion or a predisposed policy is searching
for facts.
Talking about the CIA, what prompted Paul Bremer to come to
Washington, DC, was a new top secret CIA report from Iraq that growing
numbers of Iraqis are concluding that the U.S.-led coalition can be
defeated and a supporting the insurgents.
Again, I am quoting from a newspaper report, ``The report paints a
bleak picture of the political and security situation in Iraq and
cautions that the U.S.-led drive to rebuild a country as a democracy
could collapse.''
The report's bleak tone and Bremer's private endorsement differ
sharply with the upbeat public assessments that President Bush, his
chief aids, and even Bremer are giving as part of an aggressive
publicity campaign aimed at countering rising anxieties over increasing
U.S. causalities in Iraq. Let us be honest with the American people.
Remember in Vietnam what, I daresay, forced Lyndon Johnson to reassess
his plans for reelection, was the fact that there was such a great
divergence and disparity between the reality that was being presented
to the American people and the reality on the ground.
Mr. HOEFFEL. Mr. Speaker, let me introduce our colleague who has been
waiting patiently. The gentleman from Washington (Mr. McDermott).
Mr. McDERMOTT. Mr. Speaker, I thank the gentleman for putting this
special order together.
I think that it is very clear we now know that they wanted to go to
war immediately after 9/11 in Iraq. They went to Afghanistan really
because that was more obvious to people at that point, but they were
clearly planning for a long time and they simply misled us about what
was there.
Everybody understands that now. There is no mystery in this country
or anywhere else in the world. The question is, What are we going to do
now?
I picked up the Sunday morning newspaper and last Thursday I came
back to Washington, DC and went out to MCI Center to a hockey game with
a bunch of amputees from Walter Reed. The next day I went up there and
walked through several of the wards. There are two pictures of the
front page of young men who have been severely injured that I know. I
have met them. These are young kids who did what their country asked
them, and we honored them.
I told them I was there because I wanted to say thank you. But the
fact is that that is exactly what happened in Vietnam. Young people
went and died doing exactly what they were asked to do. It is the
leadership that ought to have to pay the price and they ought to start
paying it right now.
We have a President who simply will not get off the fact that he made
a mistake. He simply went the wrong place. He should never have stopped
the war on terror. He should have finished what was going on in
Afghanistan and then perhaps you look later at something, but
Afghanistan is as bad or worse than it was when we went in there.
We still have people dying there. One died yesterday from the State
of Washington. And we continued to allow our young people, men and
women, now to be killed in a war that makes no sense in the way it is
being run. And the President will not admit it. The whole world has
told him that. They told him on the 25th of February, ten million
people marched in the streets this in this country. The President said,
It is just a focus group. We are going to war.
Now, my belief is that we have to figure out how we get out and how
we, with honor, get out of this thing. It is going to be very difficult
to do that.
{time} 2230
When they called Bremer back here in the other day, it was simply
because they said, gee, it is 1 year to the election. How in the heck
are we going to explain this mess at election time? We have got to end
it. So we are now, in every decision that will be made, it will be made
not about what is good for our troops or what is good for the
Reservists or the Guard people or anybody else, but what is seen to be
good for the President's reelection campaign.
I am afraid that unless the Congress raises some noise about this, we
are going to see more people sacrificed in this process because they
will not get the international community in. If the President would say
tomorrow, I want Kofi Annan to take over the reconstruction and Kofi
Annan to take over the military peacekeeping in the country, we will
make a contribution as we have but we are not going to run it, things
would begin to change dramatically.
This is viewed as an occupation. The actual choice of where do they
go with their headquarters when they came into Baghdad, they went to
the palaces that Saddam Hussein had built and they moved in, and they
said to the people, this is where we belong; we are running the place.
No Iraqi missed the message.
Mr. STRICKLAND. Mr. Speaker, if the good doctor will allow me to
interject a thought here, the President tries to set this up as a two
choice paradigm. We either do exactly what we are doing now or, as he
says, we cut and run, as if there are no other options, but the
gentleman is describing a third option. There may be a fourth or a
fifth option. We ought to be looking at the situation, not just simply
blindly pursuing a course of action that is resulting in more and more
death.
Quite frankly, I resent it when the President refers to those of us
who question his policies as those who want to cut and run. The last
thing I want to do in Iraq is cut and run. We cannot cut and run, and I
know not a single
[[Page 29119]]
Democrat who is suggesting that course of action, but that does not
mean that we endorse his plan because his plan is getting us deeper and
deeper and deeper into a quagmire. More and more young Americans are
being killed, and even more are being seriously wounded. We cannot
allow this situation to continue.
Mr. McDERMOTT. The hardest part about this is that the American
people are not being told the truth. If we read the American
newspapers, they are told there are only 5,000 in al Qaeda over in
Iraq. If we read the European papers, they say 50,000. We do not see
any bodies coming back. They have absolutely prohibited the press and
the media from going out to Dover when the troops come back or to go to
cemeteries when people are being buried. They are simply blinding the
American people's eyes. In my view, the American people have to demand
that they know what is going on, and I think there is really no excuse
for what they have done except that they have to make the political
campaign look better.
This is a mess. Everywhere in the world we look at the press, any
country in the world we see the press. They have all analyzed the
President made a big mistake. The French, in fact, were right. If
people really want to understand what is going on here, go watch the
movie The Battle of Algiers. The French went through exactly the same
thing in Algeria. There has not been a country in the 20th century that
invaded a sovereign country and came out whole. Everybody loses.
Whether we are talking about Vietnam or we are talking about Algeria
or we are talking about Lebanon or we are talking about any of those
countries, the people who invaded always back out with their tail
between their legs, and that is where we are today. Those kids, we have
still got them out on the line; hold on, kid; keep fighting; try and
save yourself. The people behind them are making bad decisions, again
and again and again. It is a terrifying thing, and I think the American
people cannot let them be blinded from it. They have to begin to demand
that they see what the truth is.
Mr. HOEFFEL. Mr. Speaker, I thank the gentleman for his comments.
I believe our hour is up. I thank all of my colleagues for taking
part in Iraq Watch tonight, and we will be back next week.
____________________
RECESS
The SPEAKER pro tempore (Mr. Tancredo). Pursuant to clause 12(a) of
rule I, the Chair declares the House in recess subject to the call of
the Chair.
Accordingly (at 10 o'clock and 35 minutes p.m.), the House stood in
recess subject to the call of the Chair.
____________________
{time} 0850
AFTER RECESS
The recess having expired, the House was called to order by the
Speaker pro tempore (Mr. Hastings of Washington) at 8 o'clock and 50
minutes a.m.
____________________
CONFERENCE REPORT ON H.R. 6
Mr. TAUZIN submitted the following conference report and statement on
the bill (H.R. 6), to enhance energy conservation and research and
development, to provide for security and diversity in the energy supply
for the American people, and for other purposes:
Conference Report (H. Rept. 108-375)
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H.R.
6), to enhance energy conservation and research and
development, to provide for security and diversity in the
energy supply for the American people, and for other
purposes, having met, after full and free conference, have
agreed to recommend and do recommend to their respective
Houses as follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an
amendment as follows:
In lieu of the matter proposed to be inserted by the Senate
amendment, insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy
Policy Act of 2003''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
TITLE I--ENERGY EFFICIENCY
Subtitle A--Federal Programs
Sec. 101. Energy and water saving measures in congressional buildings.
Sec. 102. Energy management requirements.
Sec. 103. Energy use measurement and accountability.
Sec. 104. Procurement of energy efficient products.
Sec. 105. Energy savings performance contracts.
Sec. 106. Energy savings performance contracts pilot program for
nonbuilding applications.
Sec. 107. Voluntary commitments to reduce industrial energy intensity.
Sec. 108. Advanced Building Efficiency Testbed.
Sec. 109. Federal building performance standards.
Sec. 110. Increased use of recovered mineral component in federally
funded projects involving procurement of cement or
concrete.
Subtitle B--Energy Assistance and State Programs
Sec. 121. Low Income Home Energy Assistance Program.
Sec. 122. Weatherization assistance.
Sec. 123. State energy programs.
Sec. 124. Energy efficient appliance rebate programs.
Sec. 125. Energy efficient public buildings.
Sec. 126. Low income community energy efficiency pilot program.
Subtitle C--Energy Efficient Products
Sec. 131. Energy Star program.
Sec. 132. HVAC maintenance consumer education program.
Sec. 133. Energy conservation standards for additional products.
Sec. 134. Energy labeling.
Subtitle D--Public Housing
Sec. 141. Capacity building for energy-efficient, affordable housing.
Sec. 142. Increase of CDBG public services cap for energy conservation
and efficiency activities.
Sec. 143. FHA mortgage insurance incentives for energy efficient
housing.
Sec. 144. Public Housing Capital Fund.
Sec. 145. Grants for energy-conserving improvements for assisted
housing.
Sec. 146. North American Development Bank.
Sec. 147. Energy-efficient appliances.
Sec. 148. Energy efficiency standards.
Sec. 149. Energy strategy for HUD.
TITLE II--RENEWABLE ENERGY
Subtitle A--General Provisions
Sec. 201. Assessment of renewable energy resources.
Sec. 202. Renewable energy production incentive.
Sec. 203. Federal purchase requirement.
Sec. 204. Insular areas energy security.
Sec. 205. Use of photovoltaic energy in public buildings.
Sec. 206. Grants to improve the commercial value of forest biomass for
electric energy, useful heat, transportation fuels,
petroleum-based product substitutes, and other commercial
purposes.
Sec. 207. Biobased products.
Subtitle B--Geothermal Energy
Sec. 211. Short title.
Sec. 212. Competitive lease sale requirements.
Sec. 213. Direct use.
Sec. 214. Royalties and near-term production incentives.
Sec. 215. Geothermal leasing and permitting on Federal lands.
Sec. 216. Review and report to Congress.
Sec. 217. Reimbursement for costs of NEPA analyses, documentation, and
studies.
Sec. 218. Assessment of geothermal energy potential.
Sec. 219. Cooperative or unit plans.
Sec. 220. Royalty on byproducts.
Sec. 221. Repeal of authorities of Secretary to readjust terms,
conditions, rentals, and royalties.
Sec. 222. Crediting of rental toward royalty.
Sec. 223. Lease duration and work commitment requirements.
Sec. 224. Advanced royalties required for suspension of production.
Sec. 225. Annual rental.
Sec. 226. Leasing and permitting on Federal lands withdrawn for
military purposes.
Sec. 227. Technical amendments.
Subtitle C--Hydroelectric
Part I--Alternative Conditions
Sec. 231. Alternative conditions and fishways.
Part II--Additional Hydropower
Sec. 241. Hydroelectric production incentives.
Sec. 242. Hydroelectric efficiency improvement.
Sec. 243. Small hydroelectric power projects.
Sec. 244. Increased hydroelectric generation at existing Federal
facilities.
Sec. 245. Shift of project loads to off-peak periods.
Sec. 246. Corps of Engineers hydropower operation and maintenance
funding.
Sec. 247. Limitation on certain charges assessed to the Flint Creek
Project, Montana.
Sec. 248. Reinstatement and transfer.
[[Page 29120]]
TITLE III--OIL AND GAS
Subtitle A--Petroleum Reserve and Home Heating Oil
Sec. 301. Permanent authority to operate the Strategic Petroleum
Reserve and other energy programs.
Sec. 302. National Oilheat Research Alliance.
Subtitle B--Production Incentives
Sec. 311. Definition of Secretary.
Sec. 312. Program on oil and gas royalties in-kind.
Sec. 313. Marginal property production incentives.
Sec. 314. Incentives for natural gas production from deep wells in the
shallow waters of the Gulf of Mexico.
Sec. 315. Royalty relief for deep water production.
Sec. 316. Alaska offshore royalty suspension.
Sec. 317. Oil and gas leasing in the National Petroleum Reserve in
Alaska.
Sec. 318. Orphaned, abandoned, or idled wells on Federal land.
Sec. 319. Combined hydrocarbon leasing.
Sec. 320. Liquified natural gas.
Sec. 321. Alternate energy-related uses on the Outer Continental Shelf.
Sec. 322. Preservation of geological and geophysical data.
Sec. 323. Oil and gas lease acreage limitations.
Sec. 324. Assessment of dependence of State of Hawaii on oil.
Sec. 325. Deadline for decision on appeals of consistency determination
under the Coastal Zone Management Act of 1972.
Sec. 326. Reimbursement for costs of NEPA analyses, documentation, and
studies.
Sec. 327. Hydraulic fracturing.
Sec. 328. Oil and gas exploration and production defined.
Sec. 329. Outer Continental Shelf provisions.
Sec. 330. Appeals relating to pipeline construction or offshore mineral
development projects.
Sec. 331. Bilateral international oil supply agreements.
Sec. 332. Natural gas market reform.
Sec. 333. Natural gas market transparency.
Subtitle C--Access to Federal Land
Sec. 341. Office of Federal Energy Project Coordination.
Sec. 342. Federal onshore oil and gas leasing and permitting practices.
Sec. 343. Management of Federal oil and gas leasing programs.
Sec. 344. Consultation regarding oil and gas leasing on public land.
Sec. 345. Estimates of oil and gas resources underlying onshore Federal
land.
Sec. 346. Compliance with Executive Order 13211; actions concerning
regulations that significantly affect energy supply,
distribution, or use.
Sec. 347. Pilot project to improve Federal permit coordination.
Sec. 348. Deadline for consideration of applications for permits.
Sec. 349. Clarification of fair market rental value determinations for
public land and Forest Service rights-of-way.
Sec. 350. Energy facility rights-of-way and corridors on Federal land.
Sec. 351. Consultation regarding energy rights-of-way on public land.
Sec. 352. Renewable energy on Federal land.
Sec. 353. Electricity transmission line right-of-way, Cleveland
National Forest and adjacent public land, California.
Sec. 354. Sense of Congress regarding development of minerals under
Padre Island National Seashore.
Sec. 355. Encouraging prohibition of off-shore drilling in the Great
Lakes.
Sec. 356. Finger Lakes National Forest withdrawal.
Sec. 357. Study on lease exchanges in the Rocky Mountain Front.
Sec. 358. Federal coalbed methane regulation.
Sec. 359. Livingston Parish mineral rights transfer.
Subtitle D--Alaska Natural Gas Pipeline
Sec. 371. Short title.
Sec. 372. Definitions.
Sec. 373. Issuance of certificate of public convenience and necessity.
Sec. 374. Environmental reviews.
Sec. 375. Pipeline expansion.
Sec. 376. Federal Coordinator.
Sec. 377. Judicial review.
Sec. 378. State jurisdiction over in-State delivery of natural gas.
Sec. 379. Study of alternative means of construction.
Sec. 380. Clarification of ANGTA status and authorities.
Sec. 381. Sense of Congress concerning use of steel manufactured in
North America negotiation of a project labor agreement.
Sec. 382. Sense of Congress and study concerning participation by small
business concerns.
Sec. 383. Alaska pipeline construction training program.
Sec. 384. Sense of Congress concerning natural gas demand.
Sec. 385. Sense of Congress concerning Alaskan ownership.
Sec. 386. Loan guarantees.
TITLE IV--COAL
Subtitle A--Clean Coal Power Initiative
Sec. 401. Authorization of appropriations.
Sec. 402. Project criteria.
Sec. 403. Report.
Sec. 404. Clean coal Centers of Excellence.
Subtitle B--Clean Power Projects
Sec. 411. Coal technology loan.
Sec. 412. Coal gasification.
Sec. 413. Integrated gasification combined cycle technology.
Sec. 414. Petroleum coke gasification.
Sec. 415. Integrated coal/renewable energy system.
Sec. 416. Electron scrubbing demonstration.
Subtitle C--Federal Coal Leases
Sec. 421. Repeal of the 160-acre limitation for coal leases.
Sec. 422. Mining plans.
Sec. 423. Payment of advance royalties under coal leases.
Sec. 424. Elimination of deadline for submission of coal lease
operation and reclamation plan.
Sec. 425. Amendment relating to financial assurances with respect to
bonus bids.
Sec. 426. Inventory requirement.
Sec. 427. Application of amendments.
Subtitle D--Coal and Related Programs
Sec. 441. Clean air coal program.
TITLE V--INDIAN ENERGY
Sec. 501. Short title.
Sec. 502. Office of Indian Energy Policy and Programs.
Sec. 503. Indian energy.
Sec. 504. Four Corners transmission line project.
Sec. 505. Energy efficiency in federally assisted housing.
Sec. 506. Consultation with Indian tribes.
TITLE VI--NUCLEAR MATTERS
Subtitle A--Price-Anderson Act Amendments
Sec. 601. Short title.
Sec. 602. Extension of indemnification authority.
Sec. 603. Maximum assessment.
Sec. 604. Department of Energy liability limit.
Sec. 605. Incidents outside the United States.
Sec. 606. Reports.
Sec. 607. Inflation adjustment.
Sec. 608. Treatment of modular reactors.
Sec. 609. Applicability.
Sec. 610. Prohibition on assumption by United States Government of
liability for certain foreign incidents.
Sec. 611. Civil penalties.
Subtitle B--General Nuclear Matters
Sec. 621. Licenses.
Sec. 622. NRC training program.
Sec. 623. Cost recovery from Government agencies.
Sec. 624. Elimination of pension offset.
Sec. 625. Antitrust review.
Sec. 626. Decommissioning.
Sec. 627. Limitation on legal fee reimbursement.
Sec. 628. Decommissioning pilot program.
Sec. 629. Report on feasibility of developing commercial nuclear energy
generation facilities at existing Department of Energy
sites.
Sec. 630. Uranium sales.
Sec. 631. Cooperative research and development and special
demonstration projects for the uranium mining industry.
Sec. 632. Whistleblower protection.
Sec. 633. Medical isotope production.
Sec. 634. Fernald byproduct material.
Sec. 635. Safe disposal of greater-than-class C radioactive waste.
Sec. 636. Prohibition on nuclear exports to countries that sponsor
terrorism.
Sec. 637. Uranium enrichment facilities.
Sec. 638. National uranium stockpile.
Subtitle C--Advanced Reactor Hydrogen Cogeneration Project
Sec. 651. Project establishment.
Sec. 652. Project definition.
Sec. 653. Project management.
Sec. 654. Project requirements.
Sec. 655. Authorization of appropriations.
Subtitle D--Nuclear Security
Sec. 661. Nuclear facility threats.
Sec. 662. Fingerprinting for criminal history record checks.
Sec. 663. Use of firearms by security personnel of licensees and
certificate holders of the Commission.
Sec. 664. Unauthorized introduction of dangerous weapons.
Sec. 665. Sabotage of nuclear facilities or fuel.
Sec. 666. Secure transfer of nuclear materials.
Sec. 667. Department of Homeland Security consultation.
Sec. 668. Authorization of appropriations.
TITLE VII--VEHICLES AND FUELS
Subtitle A--Existing Programs
Sec. 701. Use of alternative fuels by dual-fueled vehicles.
Sec. 702. Neighborhood electric vehicles.
Sec. 703. Credits for medium and heavy duty dedicated vehicles.
Sec. 704. Incremental cost allocation.
Sec. 705. Alternative compliance and flexibility.
Sec. 706. Review of Energy Policy Act of 1992 programs.
Sec. 707. Report concerning compliance with alternative fueled vehicle
purchasing requirements.
Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses
Part 1--Hybrid Vehicles
Sec. 711. Hybrid vehicles.
Part 2--Advanced Vehicles
Sec. 721. Definitions.
[[Page 29121]]
Sec. 722. Pilot program.
Sec. 723. Reports to Congress.
Sec. 724. Authorization of appropriations.
Part 3--Fuel Cell Buses
Sec. 731. Fuel cell transit bus demonstration.
Subtitle C--Clean School Buses
Sec. 741. Definitions.
Sec. 742. Program for replacement of certain school buses with clean
school buses.
Sec. 743. Diesel retrofit program.
Sec. 744. Fuel cell school buses.
Subtitle D--Miscellaneous
Sec. 751. Railroad efficiency.
Sec. 752. Mobile emission reductions trading and crediting.
Sec. 753. Aviation fuel conservation and emissions.
Sec. 754. Diesel fueled vehicles.
Sec. 755. Conserve by bicycling program.
Sec. 756. Reduction of engine idling of heavy-duty vehicles.
Sec. 757. Biodiesel engine testing program.
Sec. 758. High occupancy vehicle exception.
Subtitle E--Automobile Efficiency
Sec. 771. Authorization of appropriations for implementation and
enforcement of fuel economy standards.
Sec. 772. Revised considerations for decisions on maximum feasible
average fuel economy.
Sec. 773. Extension of maximum fuel economy increase for alternative
fueled vehicles.
Sec. 774. Study of feasibility and effects of reducing use of fuel for
automobiles.
TITLE VIII--HYDROGEN
Sec. 801. Definitions.
Sec. 802. Plan.
Sec. 803. Programs.
Sec. 804. Interagency task force.
Sec. 805. Advisory Committee.
Sec. 806. External review.
Sec. 807. Miscellaneous provisions.
Sec. 808. Savings clause.
Sec. 809. Authorization of appropriations.
TITLE IX--RESEARCH AND DEVELOPMENT
Sec. 901. Goals.
Sec. 902. Definitions.
Subtitle A--Energy Efficiency
Sec. 904. Energy efficiency.
Sec. 905. Next Generation Lighting Initiative.
Sec. 906. National Building Performance Initiative.
Sec. 907. Secondary electric vehicle battery use program.
Sec. 908. Energy Efficiency Science Initiative.
Sec. 909. Electric motor control technology.
Sec. 910. Advanced Energy Technology Transfer Centers.
Subtitle B--Distributed Energy and Electric Energy Systems
Sec. 911. Distributed energy and electric energy systems.
Sec. 912. Hybrid distributed power systems.
Sec. 913. High power density industry program.
Sec. 914. Micro-cogeneration energy technology.
Sec. 915. Distributed energy technology demonstration program.
Sec. 916. Reciprocating power.
Subtitle C--Renewable Energy
Sec. 918. Renewable energy.
Sec. 919. Bioenergy programs.
Sec. 920. Concentrating solar power research and development program.
Sec. 921. Miscellaneous projects.
Sec. 922. Renewable energy in public buildings.
Sec. 923. Study of marine renewable energy options.
Subtitle D--Nuclear Energy
Sec. 924. Nuclear energy.
Sec. 925. Nuclear energy research and development programs.
Sec. 926. Advanced fuel cycle initiative.
Sec. 927. University nuclear science and engineering support.
Sec. 928. Security of reactor designs.
Sec. 929. Alternatives to industrial radioactive sources.
Sec. 930. Geological isolation of spent fuel.
Subtitle E--Fossil Energy
Part I--Research Programs
Sec. 931. Fossil energy.
Sec. 932. Oil and gas research programs.
Sec. 933. Technology transfer.
Sec. 934. Research and development for coal mining technologies.
Sec. 935. Coal and related technologies program.
Sec. 936. Complex well technology testing facility.
Sec. 937. Fischer-Tropsch diesel fuel loan guarantee program.
Part II--Ultra-deepwater and Unconventional Natural Gas and Other
Petroleum Resources
Sec. 941. Program authority.
Sec. 942. Ultra-deepwater program.
Sec. 943. Unconventional natural gas and other petroleum resources
program.
Sec. 944. Additional requirements for awards.
Sec. 945. Advisory Committees.
Sec. 946. Limits on participation.
Sec. 947. Sunset.
Sec. 948. Definitions.
Sec. 949. Funding.
Subtitle F--Science
Sec. 951. Science.
Sec. 952. United States participation in ITER.
Sec. 953. Plan for fusion energy sciences program.
Sec. 954. Spallation Neutron Source.
Sec. 955. Support for science and energy facilities and infrastructure.
Sec. 956. Catalysis research and development program.
Sec. 957. Nanoscale science and engineering research, development,
demonstration, and commercial application.
Sec. 958. Advanced scientific computing for energy missions.
Sec. 959. Genomes to Life program.
Sec. 960. Fission and fusion energy materials research program.
Sec. 961. Energy-Water Supply Program.
Sec. 962. Nitrogen fixation.
Subtitle G--Energy and Environment
Sec. 964. United States-Mexico energy technology cooperation.
Sec. 965. Western Hemisphere energy cooperation.
Sec. 966. Waste reduction and use of alternatives.
Sec. 967. Report on fuel cell test center.
Sec. 968. Arctic Engineering Research Center.
Sec. 969. Barrow Geophysical Research Facility.
Sec. 970. Western Michigan demonstration project.
Subtitle H--Management
Sec. 971. Availability of funds.
Sec. 972. Cost sharing.
Sec. 973. Merit review of proposals.
Sec. 974. External technical review of departmental programs.
Sec. 975. Improved coordination of technology transfer activities.
Sec. 976. Federal laboratory educational partners.
Sec. 977. Interagency cooperation.
Sec. 978. Technology infrastructure program.
Sec. 979. Reprogramming.
Sec. 980. Construction with other laws.
Sec. 981. Report on research and development program evaluation
methodologies.
Sec. 982. Department of Energy Science and Technology Scholarship
Program.
Sec. 983. Report on equal employment opportunity practices.
Sec. 984. Small business advocacy and assistance.
Sec. 985. Report on mobility of scientific and technical personnel.
Sec. 986. National Academy of Sciences report.
Sec. 987. Outreach.
Sec. 988. Competitive award of management contracts.
Sec. 989. Educational programs in science and mathematics.
TITLE X--DEPARTMENT OF ENERGY MANAGEMENT
Sec. 1001. Additional Assistant Secretary position.
Sec. 1002. Other transactions authority.
TITLE XI--PERSONNEL AND TRAINING
Sec. 1101. Training guidelines for electric energy industry personnel.
Sec. 1102. Improved access to energy-related scientific and technical
careers.
Sec. 1103. National Power Plant Operations Technology and Education
Center.
Sec. 1104. International energy training.
TITLE XII--ELECTRICITY
Sec. 1201. Short title.
Subtitle A--Reliability Standards
Sec. 1211. Electric reliability standards.
Subtitle B--Transmission Infrastructure Modernization
Sec. 1221. Siting of interstate electric transmission facilities.
Sec. 1222. Third-party finance.
Sec. 1223. Transmission system monitoring.
Sec. 1224. Advanced transmission technologies.
Sec. 1225. Electric transmission and distribution programs.
Sec. 1226. Advanced Power System Technology Incentive Program.
Sec. 1227. Office of Electric Transmission and Distribution.
Subtitle C--Transmission Operation Improvements
Sec. 1231. Open nondiscriminatory access.
Sec. 1232. Sense of the Congress on Regional Transmission
Organizations.
Sec. 1233. Regional Transmission Organization applications progress
report.
Sec. 1234. Federal utility participation in Regional Transmission
Organizations.
Sec. 1235. Standard market design.
Sec. 1236. Native load service obligation.
Sec. 1237. Study on the benefits of economic dispatch.
Subtitle D--Transmission Rate Reform
Sec. 1241. Transmission infrastructure investment.
Sec. 1242. Voluntary transmission pricing plans.
Subtitle E--Amendments to PURPA
Sec. 1251. Net metering and additional standards.
Sec. 1252. Smart metering.
Sec. 1253. Cogeneration and small power production purchase and sale
requirements.
Subtitle F--Repeal of PUHCA
Sec. 1261. Short title.
Sec. 1262. Definitions.
[[Page 29122]]
Sec. 1263. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1264. Federal access to books and records.
Sec. 1265. State access to books and records.
Sec. 1266. Exemption authority.
Sec. 1267. Affiliate transactions.
Sec. 1268. Applicability.
Sec. 1269. Effect on other regulations.
Sec. 1270. Enforcement.
Sec. 1271. Savings provisions.
Sec. 1272. Implementation.
Sec. 1273. Transfer of resources.
Sec. 1274. Effective date.
Sec. 1275. Service allocation.
Sec. 1276. Authorization of appropriations.
Sec. 1277. Conforming amendments to the Federal Power Act.
Subtitle G--Market Transparency, Enforcement, and Consumer Protection
Sec. 1281. Market transparency rules.
Sec. 1282. Market manipulation.
Sec. 1283. Enforcement.
Sec. 1284. Refund effective date.
Sec. 1285. Refund authority.
Sec. 1286. Sanctity of contract.
Sec. 1287. Consumer privacy and unfair trade practices.
Subtitle H--Merger Reform
Sec. 1291. Merger review reform and accountability.
Sec. 1292. Electric utility mergers.
Subtitle I--Definitions
Sec. 1295. Definitions.
Subtitle J--Technical and Conforming Amendments
Sec. 1297. Conforming amendments.
TITLE XIII--ENERGY TAX INCENTIVES
Sec. 1300. Short title; amendment of 1986 code.
Subtitle A--Conservation
Part I--Residential and Business Property
Sec. 1301. Credit for residential energy efficient property.
Sec. 1302. Extension and expansion of credit for electricity produced
from certain renewable resources.
Sec. 1303. Credit for business installation of qualified fuel cells.
Sec. 1304. Credit for energy efficiency improvements to existing homes.
Sec. 1305. Credit for construction of new energy efficient homes.
Sec. 1306. Energy credit for combined heat and power system property.
Sec. 1307. Credit for energy efficient appliances.
Sec. 1308. Energy efficient commercial buildings deduction.
Sec. 1309. Three-year applicable recovery period for depreciation of
qualified energy management devices.
Sec. 1310. Credit for production from advanced nuclear power
facilities.
Part II--Fuels and Alternative Motor Vehicles
Sec. 1311. Repeal of 4.3-cent motor fuel excise taxes on railroads and
inland waterway transportation which remain in general
fund.
Sec. 1312. Reduced motor fuel excise tax on certain mixtures of diesel
fuel.
Sec. 1313. Small ethanol producer credit.
Sec. 1314. Incentives for biodiesel.
Sec. 1315. Alcohol fuel and biodiesel mixtures excise tax credit.
Sec. 1316. Nonapplication of export exemption to delivery of fuel to
motor vehicles removed from United States.
Sec. 1317. Repeal of phaseouts for qualified electric vehicle credit
and deduction for clean fuel-vehicles.
Sec. 1318. Alternative motor vehicle credit.
Sec. 1319. Modifications of deduction for certain refueling property.
Subtitle B--Reliability
Sec. 1321. Natural gas gathering lines treated as 7-year property.
Sec. 1322. Natural gas distribution lines treated as 15-year property.
Sec. 1323. Electric transmission property treated as 15-year property.
Sec. 1324. Expensing of capital costs incurred in complying with
Environmental Protection Agency sulfur regulations.
Sec. 1325. Credit for production of low sulfur diesel fuel.
Sec. 1326. Determination of small refiner exception to oil depletion
deduction.
Sec. 1327. Sales or dispositions to implement Federal Energy Regulatory
Commission or State electric restructuring policy.
Sec. 1328. Modifications to special rules for nuclear decommissioning
costs.
Sec. 1329. Treatment of certain income of cooperatives.
Sec. 1330. Arbitrage rules not to apply to prepayments for natural gas.
Subtitle C--Production
Part I--Oil and Gas Provisions
Sec. 1341. Oil and gas from marginal wells.
Sec. 1342. Temporary suspension of limitation based on 65 percent of
taxable income and extension of suspension of taxable
income limit with respect to marginal production.
Sec. 1343. Amortization of delay rental payments.
Sec. 1344. Amortization of geological and geophysical expenditures.
Sec. 1345. Extension and modification of credit for producing fuel from
a nonconventional source.
Part II--Alternative Minimum Tax Provisions
Sec. 1346. New nonrefundable personal credits allowed against regular
and minimum taxes.
Sec. 1347. Business related energy credits allowed against regular and
minimum tax.
Sec. 1348. Temporary repeal of alternative minimum tax preference for
intangible drilling costs.
Part III--Clean Coal Incentives
Sec. 1351. Credit for clean coal technology units.
Sec. 1352. Expansion of amortization for certain pollution control
facilities.
Sec. 1353. 5-year recovery period for eligible integrated gasification
combined cycle technology unit eligible for credit.
Part IV--High Volume Natural Gas Provisions
Sec. 1355. High volume natural gas pipe treated as 7-year property.
Sec. 1356. Extension of enhanced oil recovery credit to high volume
natural gas facilities.
Subtitle D--Additional Provisions
Sec. 1361. Extension of accelerated depreciation benefit for energy-
related businesses on Indian reservations.
Sec. 1362. Payment of dividends on stock of cooperatives without
reducing patronage dividends.
Sec. 1363. Distributions from publicly traded partnerships treated as
qualifying income of regulated investment companies.
Sec. 1364. Ceiling fans.
Sec. 1365. Certain steam generators, and certain reactor vessel heads,
used in nuclear facilities.
Sec. 1366. Brownfields demonstration program for qualified green
building and sustainable design projects.
TITLE XIV--MISCELLANEOUS
Subtitle A--Rural and Remote Electricity Construction
Sec. 1401. Denali Commission programs.
Sec. 1402. Rural and remote community assistance.
Subtitle B--Coastal Programs
Sec. 1411. Royalty payments under leases under the Outer Continental
Shelf Lands Act.
Sec. 1412. Domestic offshore energy reinvestment.
Subtitle C--Reforms to the Board of Directors of the Tennessee Valley
Authority
Sec. 1431. Change in composition, operation, and duties of the board of
directors of the Tennessee Valley Authority.
Sec. 1432. Change in manner of appointment of staff.
Sec. 1433. Conforming amendments.
Sec. 1434. Appointments; effective date; transition.
Subtitle D--Other Provisions
Sec. 1441. Continuation of transmission security order.
Sec. 1442. Review of agency determinations.
Sec. 1443. Attainment dates for downwind ozone nonattainment areas.
Sec. 1444. Energy production incentives
Sec. 1445. Use of granular mine tailings.
TITLE XV--ETHANOL AND MOTOR FUELS
Subtitle A--General Provisions
Sec. 1501. Renewable content of motor vehicle fuel.
Sec. 1502. Fuels safe harbor.
Sec. 1503. Findings and MTBE transition assistance.
Sec. 1504. Use of MTBE.
Sec. 1505. National Academy of Sciences review and presidential
determination.
Sec. 1506. Elimination of oxygen content requirement for reformulated
gasoline.
Sec. 1507. Analyses of motor vehicle fuel changes.
Sec. 1508. Data collection.
Sec. 1509. Reducing the proliferation of State fuel controls.
Sec. 1510. Fuel system requirements harmonization study.
Sec. 1511. Commercial byproducts from municipal solid waste and
cellulosic biomass loan guarantee program.
Sec. 1512. Resource center.
Sec. 1513. Cellulosic biomass and waste-derived ethanol conversion
assistance.
Sec. 1514. Blending of compliant reformulated gasolines.
Subtitle B--Underground Storage Tank Compliance
Sec. 1521. Short title.
Sec. 1522. Leaking underground storage tanks.
Sec. 1523. Inspection of underground storage tanks.
Sec. 1524. Operator training.
Sec. 1525. Remediation from oxygenated fuel additives.
Sec. 1526. Release prevention, compliance, and enforcement.
Sec. 1527. Delivery prohibition.
Sec. 1528. Federal facilities.
Sec. 1529. Tanks on tribal lands.
Sec. 1530. Future release containment technology.
Sec. 1531. Authorization of appropriations.
Sec. 1532. Conforming amendments.
Sec. 1533. Technical amendments.
[[Page 29123]]
TITLE XVI--STUDIES
Sec. 1601. Study on inventory of petroleum and natural gas storage.
Sec. 1602. Natural gas supply shortage report.
Sec. 1603. Split-estate Federal oil and gas leasing and development
practices.
Sec. 1604. Resolution of Federal resource development conflicts in the
Powder River Basin.
Sec. 1605. Study of energy efficiency standards.
Sec. 1606. Telecommuting study.
Sec. 1607. LIHEAP report.
Sec. 1608. Oil bypass filtration technology.
Sec. 1609. Total integrated thermal systems.
Sec. 1610. University collaboration.
Sec. 1611. Reliability and consumer protection assessment.
TITLE I--ENERGY EFFICIENCY
Subtitle A--Federal Programs
SEC. 101. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL
BUILDINGS.
(a) In General.--Part 3 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8251 et seq.) is amended
by adding at the end the following:
``SEC. 552. ENERGY AND WATER SAVINGS MEASURES IN
CONGRESSIONAL BUILDINGS.
``(a) In General.--The Architect of the Capitol--
``(1) shall develop, update, and implement a cost-effective
energy conservation and management plan (referred to in this
section as the `plan') for all facilities administered by
Congress (referred to in this section as `congressional
buildings') to meet the energy performance requirements for
Federal buildings established under section 543(a)(1); and
``(2) shall submit the plan to Congress, not later than 180
days after the date of enactment of this section.
``(b) Plan Requirements.--The plan shall include--
``(1) a description of the life cycle cost analysis used to
determine the cost-effectiveness of proposed energy
efficiency projects;
``(2) a schedule of energy surveys to ensure complete
surveys of all congressional buildings every 5 years to
determine the cost and payback period of energy and water
conservation measures;
``(3) a strategy for installation of life cycle cost-
effective energy and water conservation measures;
``(4) the results of a study of the costs and benefits of
installation of submetering in congressional buildings; and
``(5) information packages and `how-to' guides for each
Member and employing authority of Congress that detail
simple, cost-effective methods to save energy and taxpayer
dollars in the workplace.
``(c) Annual Report.--The Architect of the Capitol shall
submit to Congress annually a report on congressional energy
management and conservation programs required under this
section that describes in detail--
``(1) energy expenditures and savings estimates for each
facility;
``(2) energy management and conservation projects; and
``(3) future priorities to ensure compliance with this
section.''.
(b) Table of Contents Amendment.--The table of contents of
the National Energy Conservation Policy Act is amended by
adding at the end of the items relating to part 3 of title V
the following new item:
``Sec. 552. Energy and water savings measures in congressional
buildings.''.
(c) Repeal.--Section 310 of the Legislative Branch
Appropriations Act, 1999 (2 U.S.C. 1815), is repealed.
(d) Energy Infrastructure.--The Architect of the Capitol,
building on the Master Plan Study completed in July 2000,
shall commission a study to evaluate the energy
infrastructure of the Capital Complex to determine how the
infrastructure could be augmented to become more energy
efficient, using unconventional and renewable energy
resources, in a way that would enable the Complex to have
reliable utility service in the event of power fluctuations,
shortages, or outages.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to the Architect of the Capitol to carry
out subsection (d), $2,000,000 for each of fiscal years 2004
through 2008.
SEC. 102. ENERGY MANAGEMENT REQUIREMENTS.
(a) Energy Reduction Goals.--
(1) Amendment.--Section 543(a)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended by
striking ``its Federal buildings so that'' and all that
follows through the end and inserting ``the Federal buildings
of the agency (including each industrial or laboratory
facility) so that the energy consumption per gross square
foot of the Federal buildings of the agency in fiscal years
2004 through 2013 is reduced, as compared with the energy
consumption per gross square foot of the Federal buildings of
the agency in fiscal year 2001, by the percentage specified
in the following table:
``Fiscal Year Percentage reduction
2004............................................................ 2
2005............................................................ 4
2006............................................................ 6
2007............................................................ 8
2008............................................................10
2009............................................................12
2010............................................................14
2011............................................................16
2012............................................................18
2013.........................................................20.''.
(2) Reporting baseline.--The energy reduction goals and
baseline established in paragraph (1) of section 543(a) of
the National Energy Conservation Policy Act (42 U.S.C.
8253(a)(1)), as amended by this subsection, supersede all
previous goals and baselines under such paragraph, and
related reporting requirements.
(b) Review and Revision of Energy Performance
Requirement.--Section 543(a) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(a)) is further
amended by adding at the end the following:
``(3) Not later than December 31, 2012, the Secretary shall
review the results of the implementation of the energy
performance requirement established under paragraph (1) and
submit to Congress recommendations concerning energy
performance requirements for fiscal years 2014 through
2023.''.
(c) Exclusions.--Section 543(c)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended by
striking ``An agency may exclude'' and all that follows
through the end and inserting ``(A) An agency may exclude,
from the energy performance requirement for a fiscal year
established under subsection (a) and the energy management
requirement established under subsection (b), any Federal
building or collection of Federal buildings, if the head of
the agency finds that--
``(i) compliance with those requirements would be
impracticable;
``(ii) the agency has completed and submitted all federally
required energy management reports;
``(iii) the agency has achieved compliance with the energy
efficiency requirements of this Act, the Energy Policy Act of
1992, Executive orders, and other Federal law; and
``(iv) the agency has implemented all practicable, life
cycle cost-effective projects with respect to the Federal
building or collection of Federal buildings to be excluded.
``(B) A finding of impracticability under subparagraph
(A)(i) shall be based on--
``(i) the energy intensiveness of activities carried out in
the Federal building or collection of Federal buildings; or
``(ii) the fact that the Federal building or collection of
Federal buildings is used in the performance of a national
security function.''.
(d) Review by Secretary.--Section 543(c)(2) of the National
Energy Conservation Policy Act (42 U.S.C. 8253(c)(2)) is
amended--
(1) by striking ``impracticability standards'' and
inserting ``standards for exclusion'';
(2) by striking ``a finding of impracticability'' and
inserting ``the exclusion''; and
(3) by striking ``energy consumption requirements'' and
inserting ``requirements of subsections (a) and (b)(1)''.
(e) Criteria.--Section 543(c) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(c)) is further
amended by adding at the end the following:
``(3) Not later than 180 days after the date of enactment
of this paragraph, the Secretary shall issue guidelines that
establish criteria for exclusions under paragraph (1).''.
(f) Retention of Energy and Water Savings.--Section 546 of
the National Energy Conservation Policy Act (42 U.S.C. 8256)
is amended by adding at the end the following new subsection:
``(e) Retention of Energy and Water Savings.--An agency may
retain any funds appropriated to that agency for energy
expenditures, water expenditures, or wastewater treatment
expenditures, at buildings subject to the requirements of
section 543(a) and (b), that are not made because of energy
savings or water savings. Except as otherwise provided by
law, such funds may be used only for energy efficiency, water
conservation, or unconventional and renewable energy
resources projects.''.
(g) Reports.--Section 548(b) of the National Energy
Conservation Policy Act (42 U.S.C. 8258(b)) is amended--
(1) in the subsection heading, by inserting ``the President
and'' before ``Congress''; and
(2) by inserting ``President and'' before ``Congress''.
(h) Conforming Amendment.--Section 550(d) of the National
Energy Conservation Policy Act (42 U.S.C. 8258b(d)) is
amended in the second sentence by striking ``the 20 percent
reduction goal established under section 543(a) of the
National Energy Conservation Policy Act (42 U.S.C.
8253(a)).'' and inserting ``each of the energy reduction
goals established under section 543(a).''.
SEC. 103. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.
Section 543 of the National Energy Conservation Policy Act
(42 U.S.C. 8253 is further amended by adding at the end the
following:
``(e) Metering of Energy Use.--
``(1) Deadline.--By October 1, 2010, in accordance with
guidelines established by the Secretary under paragraph (2),
all Federal buildings shall, for the purposes of efficient
use of energy and reduction in the cost of electricity used
in such buildings, be metered or submetered. Each agency
shall use, to the maximum extent practicable, advanced meters
or advanced metering devices that provide data at least daily
and that measure at least hourly consumption of electricity
in the Federal buildings of the agency. Such data shall be
incorporated into existing Federal energy tracking systems
and made available to Federal facility energy managers.
``(2) Guidelines.--
``(A) In general.--Not later than 180 days after the date
of enactment of this subsection,
[[Page 29124]]
the Secretary, in consultation with the Department of
Defense, the General Services Administration, representatives
from the metering industry, utility industry, energy services
industry, energy efficiency industry, energy efficiency
advocacy organizations, national laboratories, universities,
and Federal facility energy managers, shall establish
guidelines for agencies to carry out paragraph (1).
``(B) Requirements for guidelines.--The guidelines shall--
``(i) take into consideration--
``(I) the cost of metering and submetering and the reduced
cost of operation and maintenance expected to result from
metering and submetering;
``(II) the extent to which metering and submetering are
expected to result in increased potential for energy
management, increased potential for energy savings and energy
efficiency improvement, and cost and energy savings due to
utility contract aggregation; and
``(III) the measurement and verification protocols of the
Department of Energy;
``(ii) include recommendations concerning the amount of
funds and the number of trained personnel necessary to gather
and use the metering information to track and reduce energy
use;
``(iii) establish priorities for types and locations of
buildings to be metered and submetered based on cost-
effectiveness and a schedule of 1 or more dates, not later
than 1 year after the date of issuance of the guidelines, on
which the requirements specified in paragraph (1) shall take
effect; and
``(iv) establish exclusions from the requirements specified
in paragraph (1) based on the de minimis quantity of energy
use of a Federal building, industrial process, or structure.
``(3) Plan.--Not later than 6 months after the date
guidelines are established under paragraph (2), in a report
submitted by the agency under section 548(a), each agency
shall submit to the Secretary a plan describing how the
agency will implement the requirements of paragraph (1),
including (A) how the agency will designate personnel
primarily responsible for achieving the requirements and (B)
demonstration by the agency, complete with documentation, of
any finding that advanced meters or advanced metering
devices, as defined in paragraph (1), are not practicable.''.
SEC. 104. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
(a) Requirements.--Part 3 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8251 et seq.), as amended
by section 101, is amended by adding at the end the
following:
``SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
``(a) Definitions.--In this section:
``(1) Energy star product.--The term `Energy Star product'
means a product that is rated for energy efficiency under an
Energy Star program.
``(2) Energy star program.--The term `Energy Star program'
means the program established by section 324A of the Energy
Policy and Conservation Act.
``(3) Executive agency.--The term `executive agency' has
the meaning given the term in section 4 of the Office of
Federal Procurement Policy Act (41 U.S.C. 403).
``(4) FEMP designated product.--The term `FEMP designated
product' means a product that is designated under the Federal
Energy Management Program of the Department of Energy as
being among the highest 25 percent of equivalent products for
energy efficiency.
``(b) Procurement of Energy Efficient Products.--
``(1) Requirement.--To meet the requirements of an
executive agency for an energy consuming product, the head of
the executive agency shall, except as provided in paragraph
(2), procure--
``(A) an Energy Star product; or
``(B) a FEMP designated product.
``(2) Exceptions.--The head of an executive agency is not
required to procure an Energy Star product or FEMP designated
product under paragraph (1) if the head of the executive
agency finds in writing that--
``(A) an Energy Star product or FEMP designated product is
not cost-effective over the life of the product taking energy
cost savings into account; or
``(B) no Energy Star product or FEMP designated product is
reasonably available that meets the functional requirements
of the executive agency.
``(3) Procurement planning.--The head of an executive
agency shall incorporate into the specifications for all
procurements involving energy consuming products and systems,
including guide specifications, project specifications, and
construction, renovation, and services contracts that include
provision of energy consuming products and systems, and into
the factors for the evaluation of offers received for the
procurement, criteria for energy efficiency that are
consistent with the criteria used for rating Energy Star
products and for rating FEMP designated products.
``(c) Listing of Energy Efficient Products in Federal
Catalogs.--Energy Star products and FEMP designated products
shall be clearly identified and prominently displayed in any
inventory or listing of products by the General Services
Administration or the Defense Logistics Agency. The General
Services Administration or the Defense Logistics Agency shall
supply only Energy Star products or FEMP designated products
for all product categories covered by the Energy Star program
or the Federal Energy Management Program, except in cases
where the agency ordering a product specifies in writing that
no Energy Star product or FEMP designated product is
available to meet the buyer's functional requirements, or
that no Energy Star product or FEMP designated product is
cost-effective for the intended application over the life of
the product, taking energy cost savings into account.
``(d) Specific Products.--(1) In the case of electric
motors of 1 to 500 horsepower, agencies shall select only
premium efficient motors that meet a standard designated by
the Secretary. The Secretary shall designate such a standard
not later than 120 days after the date of the enactment of
this section, after considering the recommendations of
associated electric motor manufacturers and energy efficiency
groups.
``(2) All Federal agencies are encouraged to take actions
to maximize the efficiency of air conditioning and
refrigeration equipment, including appropriate cleaning and
maintenance, including the use of any system treatment or
additive that will reduce the electricity consumed by air
conditioning and refrigeration equipment. Any such treatment
or additive must be--
``(A) determined by the Secretary to be effective in
increasing the efficiency of air conditioning and
refrigeration equipment without having an adverse impact on
air conditioning performance (including cooling capacity) or
equipment useful life;
``(B) determined by the Administrator of the Environmental
Protection Agency to be environmentally safe; and
``(C) shown to increase seasonal energy efficiency ratio
(SEER) or energy efficiency ratio (EER) when tested by the
National Institute of Standards and Technology according to
Department of Energy test procedures without causing any
adverse impact on the system, system components, the
refrigerant or lubricant, or other materials in the system.
Results of testing described in subparagraph (C) shall be
published in the Federal Register for public review and
comment. For purposes of this section, a hardware device or
primary refrigerant shall not be considered an additive.
``(e) Regulations.--Not later than 180 days after the date
of the enactment of this section, the Secretary shall issue
guidelines to carry out this section.''.
(b) Conforming Amendment.--The table of contents of the
National Energy Conservation Policy Act is further amended by
inserting after the item relating to section 552 the
following new item:
``Sec. 553. Federal procurement of energy efficient products.''.
SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS.
(a) Permanent Extension.--Effective September 30, 2003,
section 801(c) of the National Energy Conservation Policy Act
(42 U.S.C. 8287(c)) is repealed.
(b) Payment of Costs.--Section 802 of the National Energy
Conservation Policy Act (42 U.S.C. 8287a) is amended by
inserting ``, water, or wastewater treatment'' after
``payment of energy''.
(c) Energy Savings.--Section 804(2) of the National Energy
Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to
read as follows:
``(2) The term `energy savings' means a reduction in the
cost of energy, water, or wastewater treatment, from a base
cost established through a methodology set forth in the
contract, used in an existing federally owned building or
buildings or other federally owned facilities as a result
of--
``(A) the lease or purchase of operating equipment,
improvements, altered operation and maintenance, or technical
services;
``(B) the increased efficient use of existing energy
sources by cogeneration or heat recovery, excluding any
cogeneration process for other than a federally owned
building or buildings or other federally owned facilities; or
``(C) the increased efficient use of existing water sources
in either interior or exterior applications.''.
(d) Energy Savings Contract.--Section 804(3) of the
National Energy Conservation Policy Act (42 U.S.C. 8287c(3))
is amended to read as follows:
``(3) The terms `energy savings contract' and `energy
savings performance contract' mean a contract that provides
for the performance of services for the design, acquisition,
installation, testing, and, where appropriate, operation,
maintenance, and repair, of an identified energy or water
conservation measure or series of measures at 1 or more
locations. Such contracts shall, with respect to an agency
facility that is a public building (as such term is defined
in section 3301 of title 40, United States Code), be in
compliance with the prospectus requirements and procedures of
section 3307 of title 40, United States Code.''.
(e) Energy or Water Conservation Measure.--Section 804(4)
of the National Energy Conservation Policy Act (42 U.S.C.
8287c(4)) is amended to read as follows:
``(4) The term `energy or water conservation measure'
means--
``(A) an energy conservation measure, as defined in section
551; or
``(B) a water conservation measure that improves the
efficiency of water use, is life-cycle cost-effective, and
involves water conservation, water recycling or reuse, more
efficient treatment of wastewater or stormwater, improvements
in operation or maintenance efficiencies, retrofit
activities, or other related activities, not at a Federal
hydroelectric facility.''.
(f) Review.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Energy shall complete
a review of the Energy Savings Performance Contract program
to identify statutory, regulatory, and administrative
[[Page 29125]]
obstacles that prevent Federal agencies from fully utilizing
the program. In addition, this review shall identify all
areas for increasing program flexibility and effectiveness,
including audit and measurement verification requirements,
accounting for energy use in determining savings, contracting
requirements, including the identification of additional
qualified contractors, and energy efficiency services
covered. The Secretary shall report these findings to
Congress and shall implement identified administrative and
regulatory changes to increase program flexibility and
effectiveness to the extent that such changes are consistent
with statutory authority.
(g) Extension of Authority.--Any energy savings performance
contract entered into under section 801 of the National
Energy Conservation Policy Act (42 U.S.C. 8287) after October
1, 2003, and before the date of enactment of this Act, shall
be deemed to have been entered into pursuant to such section
801 as amended by subsection (a) of this section.
SEC. 106. ENERGY SAVINGS PERFORMANCE CONTRACTS PILOT PROGRAM
FOR NONBUILDING APPLICATIONS.
(a) In General.--The Secretary of Defense and the heads of
other interested Federal agencies are authorized to enter
into up to 10 energy savings performance contracts using
procedures, established under subsection (b), based on the
procedures under title VIII of the National Energy
Conservation Policy Act (42 U.S.C. 8287 et seq.), for the
purpose of achieving energy or water savings, secondary
savings, and benefits incidental to those purposes, in
nonbuilding applications. The payments to be made by the
Federal Government under such contracts shall not exceed a
total of $200,000,000 for all such contracts combined.
(b) Procedures.--The Secretary of Energy, in consultation
with the Administrator of General Services and the Secretary
of Defense, shall establish procedures based on the
procedures under title VIII of the National Energy
Conservation Policy Act (42 U.S.C. 8287 et seq.), for
implementing this section.
(c) Definitions.--In this section:
(1) Nonbuilding application.--The term ``nonbuilding
application'' means--
(A) any class of vehicles, devices, or equipment that are
transportable under their own power by land, sea, or air that
consume energy from any fuel source for the purpose of such
transportability, or to maintain a controlled environment
within such vehicle, device, or equipment; or
(B) any Federally owned equipment used to generate
electricity or transport water.
(2) Secondary savings.--The term ``secondary savings''
means additional energy or cost savings that are a direct
consequence of the energy or water savings that result from
the financing and implementation of the energy savings
performance contract, including, but not limited to, energy
or cost savings that result from a reduction in the need for
fuel delivery and logistical support, or the increased
efficiency in the production of electricity.
(d) Report.--Not later than 3 years after the date of
enactment of this section, the Secretary of Energy shall
report to Congress on the progress and results of the
projects funded pursuant to this section. Such report shall
include a description of projects undertaken; the energy,
water, and cost savings, secondary savings, and other
benefits that resulted from such projects; and
recommendations on whether the pilot program should be
extended, expanded, or authorized permanently as a part of
the program authorized under title VIII of the National
Energy Conservation Policy Act (42 U.S.C. 8287 et seq.).
SEC. 107. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY
INTENSITY.
(a) Voluntary Agreements.--The Secretary of Energy is
authorized to enter into voluntary agreements with 1 or more
persons in industrial sectors that consume significant
amounts of primary energy per unit of physical output to
reduce the energy intensity of their production activities by
a significant amount relative to improvements in each sector
in recent years.
(b) Recognition.--The Secretary of Energy, in cooperation
with the Administrator of the Environmental Protection Agency
and other appropriate Federal agencies, shall recognize and
publicize the achievements of participants in voluntary
agreements under this section.
(c) Definition.--In this section, the term ``energy
intensity'' means the primary energy consumed per unit of
physical output in an industrial process.
SEC. 108. ADVANCED BUILDING EFFICIENCY TESTBED.
(a) Establishment.--The Secretary of Energy, in
consultation with the Administrator of General Services,
shall establish an Advanced Building Efficiency Testbed
program for the development, testing, and demonstration of
advanced engineering systems, components, and materials to
enable innovations in building technologies. The program
shall evaluate efficiency concepts for government and
industry buildings, and demonstrate the ability of next
generation buildings to support individual and organizational
productivity and health (including by improving indoor air
quality) as well as flexibility and technological change to
improve environmental sustainability. Such program shall
complement and not duplicate existing national programs.
(b) Participants.--The program established under subsection
(a) shall be led by a university with the ability to combine
the expertise from numerous academic fields including, at a
minimum, intelligent workplaces and advanced building systems
and engineering, electrical and computer engineering,
computer science, architecture, urban design, and
environmental and mechanical engineering. Such university
shall partner with other universities and entities who have
established programs and the capability of advancing
innovative building efficiency technologies.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy to carry out
this section $6,000,000 for each of the fiscal years 2004
through 2006, to remain available until expended. For any
fiscal year in which funds are expended under this section,
the Secretary shall provide \1/3\ of the total amount to the
lead university described in subsection (b), and provide the
remaining \2/3\ to the other participants referred to in
subsection (b) on an equal basis.
SEC. 109. FEDERAL BUILDING PERFORMANCE STANDARDS.
Section 305(a) of the Energy Conservation and Production
Act (42 U.S.C. 6834(a)) is amended--
(1) in paragraph (2)(A), by striking ``CABO Model Energy
Code, 1992'' and inserting ``the 2003 International Energy
Conservation Code''; and
(2) by adding at the end the following:
``(3) Revised federal building energy efficiency
performance standards.--
``(A) In general.--Not later than 1 year after the date of
enactment of this paragraph, the Secretary of Energy shall
establish, by rule, revised Federal building energy
efficiency performance standards that require that--
``(i) if life-cycle cost-effective, for new Federal
buildings--
``(I) such buildings be designed so as to achieve energy
consumption levels at least 30 percent below those of the
version current as of the date of enactment of this paragraph
of the ASHRAE Standard or the International Energy
Conservation Code, as appropriate; and
``(II) sustainable design principles are applied to the
siting, design, and construction of all new and replacement
buildings; and
``(ii) where water is used to achieve energy efficiency,
water conservation technologies shall be applied to the
extent they are life-cycle cost effective.
``(B) Additional revisions.--Not later than 1 year after
the date of approval of each subsequent revision of the
ASHRAE Standard or the International Energy Conservation
Code, as appropriate, the Secretary of Energy shall
determine, based on the cost-effectiveness of the
requirements under the amendments, whether the revised
standards established under this paragraph should be updated
to reflect the amendments.
``(C) Statement on compliance of new buildings.--In the
budget request of the Federal agency for each fiscal year and
each report submitted by the Federal agency under section
548(a) of the National Energy Conservation Policy Act (42
U.S.C. 8258(a)), the head of each Federal agency shall
include--
``(i) a list of all new Federal buildings owned, operated,
or controlled by the Federal agency; and
``(ii) a statement concerning whether the Federal buildings
meet or exceed the revised standards established under this
paragraph.''.
SEC. 110. INCREASED USE OF RECOVERED MINERAL COMPONENT IN
FEDERALLY FUNDED PROJECTS INVOLVING PROCUREMENT
OF CEMENT OR CONCRETE.
(a) Amendment.--Subtitle F of the Solid Waste Disposal Act
(42 U.S.C. 6961 et seq.) is amended by adding at the end the
following new section:
``increased use of recovered mineral component in federally funded
projects involving procurement of cement or concrete
``Sec. 6005. (a) Definitions.--In this section:
``(1) Agency head.--The term `agency head' means--
``(A) the Secretary of Transportation; and
``(B) the head of each other Federal agency that on a
regular basis procures, or provides Federal funds to pay or
assist in paying the cost of procuring, material for cement
or concrete projects.
``(2) Cement or concrete project.--The term `cement or
concrete project' means a project for the construction or
maintenance of a highway or other transportation facility or
a Federal, State, or local government building or other
public facility that--
``(A) involves the procurement of cement or concrete; and
``(B) is carried out in whole or in part using Federal
funds.
``(3) Recovered mineral component.--The term `recovered
mineral component' means--
``(A) ground granulated blast furnace slag;
``(B) coal combustion fly ash; and
``(C) any other waste material or byproduct recovered or
diverted from solid waste that the Administrator, in
consultation with an agency head, determines should be
treated as recovered mineral component under this section for
use in cement or concrete projects paid for, in whole or in
part, by the agency head.
``(b) Implementation of Requirements.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Administrator and each agency
head shall take such actions as are necessary to implement
fully all procurement requirements and incentives in effect
as of the date of enactment of this section (including
guidelines under section 6002) that provide for the use of
cement and concrete incorporating recovered mineral component
in cement or concrete projects.
[[Page 29126]]
``(2) Priority.--In carrying out paragraph (1) an agency
head shall give priority to achieving greater use of
recovered mineral component in cement or concrete projects
for which recovered mineral components historically have not
been used or have been used only minimally.
``(3) Conformance.--The Administrator and each agency head
shall carry out this subsection in accordance with section
6002.
``(c) Full Implementation Study.--
``(1) In general.--The Administrator, in cooperation with
the Secretary of Transportation and the Secretary of Energy,
shall conduct a study to determine the extent to which
current procurement requirements, when fully implemented in
accordance with subsection (b), may realize energy savings
and environmental benefits attainable with substitution of
recovered mineral component in cement used in cement or
concrete projects.
``(2) Matters to be addressed.--The study shall--
``(A) quantify the extent to which recovered mineral
components are being substituted for Portland cement,
particularly as a result of current procurement requirements,
and the energy savings and environmental benefits associated
with that substitution;
``(B) identify all barriers in procurement requirements to
greater realization of energy savings and environmental
benefits, including barriers resulting from exceptions from
current law; and
``(C)(i) identify potential mechanisms to achieve greater
substitution of recovered mineral component in types of
cement or concrete projects for which recovered mineral
components historically have not been used or have been used
only minimally;
``(ii) evaluate the feasibility of establishing guidelines
or standards for optimized substitution rates of recovered
mineral component in those cement or concrete projects; and
``(iii) identify any potential environmental or economic
effects that may result from greater substitution of
recovered mineral component in those cement or concrete
projects.
``(3) Report.--Not later than 30 months after the date of
enactment of this section, the Administrator shall submit to
Congress a report on the study.
``(d) Additional Procurement Requirements.--Unless the
study conducted under subsection (c) identifies any effects
or other problems described in subsection (c)(2)(C)(iii) that
warrant further review or delay, the Administrator and each
agency head shall, not later than 1 year after the release of
the report in accordance with subsection (c)(3), take
additional actions authorized under this Act to establish
procurement requirements and incentives that provide for the
use of cement and concrete with increased substitution of
recovered mineral component in the construction and
maintenance of cement or concrete projects, so as to--
``(1) realize more fully the energy savings and
environmental benefits associated with increased
substitution; and
``(2) eliminate barriers identified under subsection (c).
``(e) Effect of Section.--Nothing in this section affects
the requirements of section 6002 (including the guidelines
and specifications for implementing those requirements).''.
(b) Table of Contents Amendment.--The table of contents of
the Solid Waste Disposal Act is amended by adding after the
item relating to section 6004 the following new item:
``Sec. 6005. Increased use of recovered mineral component in federally
funded projects involving procurement of cement or
concrete.''.
Subtitle B--Energy Assistance and State Programs
SEC. 121. LOW INCOME HOME ENERGY ASSISTANCE PROGRAM.
Section 2602(b) of the Low-Income Home Energy Assistance
Act of 1981 (42 U.S.C. 8621(b)) is amended by striking ``and
$2,000,000,000 for each of fiscal years 2002 through 2004''
and inserting ``$2,000,000,000 for fiscal years 2002 and
2003, and $3,400,000,000 for each of fiscal years 2004
through 2006''.
SEC. 122. WEATHERIZATION ASSISTANCE.
Section 422 of the Energy Conservation and Production Act
(42 U.S.C. 6872) is amended by striking ``for fiscal years
1999 through 2003 such sums as may be necessary'' and
inserting ``$325,000,000 for fiscal year 2004, $400,000,000
for fiscal year 2005, and $500,000,000 for fiscal year
2006''.
SEC. 123. STATE ENERGY PROGRAMS.
(a) State Energy Conservation Plans.--Section 362 of the
Energy Policy and Conservation Act (42 U.S.C. 6322) is
amended by inserting at the end the following new subsection:
``(g) The Secretary shall, at least once every 3 years,
invite the Governor of each State to review and, if
necessary, revise the energy conservation plan of such State
submitted under subsection (b) or (e). Such reviews should
consider the energy conservation plans of other States within
the region, and identify opportunities and actions carried
out in pursuit of common energy conservation goals.''.
(b) State Energy Efficiency Goals.--Section 364 of the
Energy Policy and Conservation Act (42 U.S.C. 6324) is
amended to read as follows:
``state energy efficiency goals
``Sec. 364. Each State energy conservation plan with
respect to which assistance is made available under this part
on or after the date of enactment of the Energy Policy Act of
2003 shall contain a goal, consisting of an improvement of 25
percent or more in the efficiency of use of energy in the
State concerned in calendar year 2010 as compared to calendar
year 1990, and may contain interim goals.''.
(c) Authorization of Appropriations.--Section 365(f) of the
Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is
amended by striking ``for fiscal years 1999 through 2003 such
sums as may be necessary'' and inserting ``$100,000,000 for
each of the fiscal years 2004 and 2005 and $125,000,000 for
fiscal year 2006''.
SEC. 124. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.
(a) Definitions.--In this section:
(1) Eligible state.--The term ``eligible State'' means a
State that meets the requirements of subsection (b).
(2) Energy star program.--The term ``Energy Star program''
means the program established by section 324A of the Energy
Policy and Conservation Act.
(3) Residential energy star product.--The term
``residential Energy Star product'' means a product for a
residence that is rated for energy efficiency under the
Energy Star program.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(5) State energy office.--The term ``State energy office''
means the State agency responsible for developing State
energy conservation plans under section 362 of the Energy
Policy and Conservation Act (42 U.S.C. 6322).
(6) State program.--The term ``State program'' means a
State energy efficient appliance rebate program described in
subsection (b)(1).
(b) Eligible States.--A State shall be eligible to receive
an allocation under subsection (c) if the State--
(1) establishes (or has established) a State energy
efficient appliance rebate program to provide rebates to
residential consumers for the purchase of residential Energy
Star products to replace used appliances of the same type;
(2) submits an application for the allocation at such time,
in such form, and containing such information as the
Secretary may require; and
(3) provides assurances satisfactory to the Secretary that
the State will use the allocation to supplement, but not
supplant, funds made available to carry out the State
program.
(c) Amount of Allocations.--
(1) In general.--Subject to paragraph (2), for each fiscal
year, the Secretary shall allocate to the State energy office
of each eligible State to carry out subsection (d) an amount
equal to the product obtained by multiplying the amount made
available under subsection (f) for the fiscal year by the
ratio that the population of the State in the most recent
calendar year for which data are available bears to the total
population of all eligible States in that calendar year.
(2) Minimum allocations.--For each fiscal year, the amounts
allocated under this subsection shall be adjusted
proportionately so that no eligible State is allocated a sum
that is less than an amount determined by the Secretary.
(d) Use of Allocated Funds.--The allocation to a State
energy office under subsection (c) may be used to pay up to
50 percent of the cost of establishing and carrying out a
State program.
(e) Issuance of Rebates.--Rebates may be provided to
residential consumers that meet the requirements of the State
program. The amount of a rebate shall be determined by the
State energy office, taking into consideration--
(1) the amount of the allocation to the State energy office
under subsection (c);
(2) the amount of any Federal or State tax incentive
available for the purchase of the residential Energy Star
product; and
(3) the difference between the cost of the residential
Energy Star product and the cost of an appliance that is not
a residential Energy Star product, but is of the same type
as, and is the nearest capacity, performance, and other
relevant characteristics (as determined by the State energy
office) to, the residential Energy Star product.
(f) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section
$50,000,000 for each of the fiscal years 2004 through 2008.
SEC. 125. ENERGY EFFICIENT PUBLIC BUILDINGS.
(a) Grants.--The Secretary of Energy may make grants to the
State agency responsible for developing State energy
conservation plans under section 362 of the Energy Policy and
Conservation Act (42 U.S.C. 6322), or, if no such agency
exists, a State agency designated by the Governor of the
State, to assist units of local government in the State in
improving the energy efficiency of public buildings and
facilities--
(1) through construction of new energy efficient public
buildings that use at least 30 percent less energy than a
comparable public building constructed in compliance with
standards prescribed in the most recent version of the
International Energy Conservation Code, or a similar State
code intended to achieve substantially equivalent efficiency
levels; or
(2) through renovation of existing public buildings to
achieve reductions in energy use of at least 30 percent as
compared to the baseline energy use in such buildings prior
to renovation, assuming a 3-year, weather-normalized average
for calculating such baseline.
(b) Administration.--State energy offices receiving grants
under this section shall--
(1) maintain such records and evidence of compliance as the
Secretary may require; and
(2) develop and distribute information and materials and
conduct programs to provide technical services and assistance
to encourage planning, financing, and design of energy
efficient public buildings by units of local government.
[[Page 29127]]
(c) Authorization of Appropriations.--For the purposes of
this section, there are authorized to be appropriated to the
Secretary of Energy $30,000,000 for each of fiscal years 2004
through 2008. Not more than 10 percent of appropriated funds
shall be used for administration.
SEC. 126. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT
PROGRAM.
(a) Grants.--The Secretary of Energy is authorized to make
grants to units of local government, private, non-profit
community development organizations, and Indian tribe
economic development entities to improve energy efficiency;
identify and develop alternative, renewable, and distributed
energy supplies; and increase energy conservation in low
income rural and urban communities.
(b) Purpose of Grants.--The Secretary may make grants on a
competitive basis for--
(1) investments that develop alternative, renewable, and
distributed energy supplies;
(2) energy efficiency projects and energy conservation
programs;
(3) studies and other activities that improve energy
efficiency in low income rural and urban communities;
(4) planning and development assistance for increasing the
energy efficiency of buildings and facilities; and
(5) technical and financial assistance to local government
and private entities on developing new renewable and
distributed sources of power or combined heat and power
generation.
(c) Definition.--For purposes of this section, the term
``Indian tribe'' means any Indian tribe, band, nation, or
other organized group or community, including any Alaskan
Native village or regional or village corporation as defined
in or established pursuant to the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.), that is recognized
as eligible for the special programs and services provided by
the United States to Indians because of their status as
Indians.
(d) Authorization of Appropriations.--For the purposes of
this section there are authorized to be appropriated to the
Secretary of Energy $20,000,000 for each of fiscal years 2004
through 2006.
Subtitle C--Energy Efficient Products
SEC. 131. ENERGY STAR PROGRAM.
(a) Amendment.--The Energy Policy and Conservation Act (42
U.S.C. 6201 et seq.) is amended by inserting the following
after section 324:
``SEC. 324A. ENERGY STAR PROGRAM.
``There is established at the Department of Energy and the
Environmental Protection Agency a voluntary program to
identify and promote energy-efficient products and buildings
in order to reduce energy consumption, improve energy
security, and reduce pollution through voluntary labeling of
or other forms of communication about products and buildings
that meet the highest energy efficiency standards.
Responsibilities under the program shall be divided between
the Department of Energy and the Environmental Protection
Agency consistent with the terms of agreements between the 2
agencies. The Administrator and the Secretary shall--
``(1) promote Energy Star compliant technologies as the
preferred technologies in the marketplace for achieving
energy efficiency and to reduce pollution;
``(2) work to enhance public awareness of the Energy Star
label, including special outreach to small businesses;
``(3) preserve the integrity of the Energy Star label;
``(4) solicit comments from interested parties prior to
establishing or revising an Energy Star product category,
specification, or criterion (or effective dates for any of
the foregoing);
``(5) upon adoption of a new or revised product category,
specification, or criterion, provide reasonable notice to
interested parties of any changes (including effective dates)
in product categories, specifications, or criteria along with
an explanation of such changes and, where appropriate,
responses to comments submitted by interested parties; and
``(6) provide appropriate lead time (which shall be 9
months, unless the Agency or Department determines otherwise)
prior to the effective date for a new or a significant
revision to a product category, specification, or criterion,
taking into account the timing requirements of the
manufacturing, product marketing, and distribution process
for the specific product addressed.''.
(b) Table of Contents Amendment.--The table of contents of
the Energy Policy and Conservation Act is amended by
inserting after the item relating to section 324 the
following new item:
``Sec. 324A. Energy Star program.''.
SEC. 132. HVAC MAINTENANCE CONSUMER EDUCATION PROGRAM.
Section 337 of the Energy Policy and Conservation Act (42
U.S.C. 6307) is amended by adding at the end the following:
``(c) HVAC Maintenance.--For the purpose of ensuring that
installed air conditioning and heating systems operate at
their maximum rated efficiency levels, the Secretary shall,
not later than 180 days after the date of enactment of this
subsection, carry out a program to educate homeowners and
small business owners concerning the energy savings resulting
from properly conducted maintenance of air conditioning,
heating, and ventilating systems. The Secretary shall carry
out the program in a cost-shared manner in cooperation with
the Administrator of the Environmental Protection Agency and
such other entities as the Secretary considers appropriate,
including industry trade associations, industry members, and
energy efficiency organizations.
``(d) Small Business Education and Assistance.--The
Administrator of the Small Business Administration, in
consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency, shall
develop and coordinate a Government-wide program, building on
the existing Energy Star for Small Business Program, to
assist small businesses to become more energy efficient,
understand the cost savings obtainable through efficiencies,
and identify financing options for energy efficiency
upgrades. The Secretary and the Administrator of the Small
Business Administration shall make the program information
available directly to small businesses and through other
Federal agencies, including the Federal Emergency Management
Program and the Department of Agriculture.''.
SEC. 133. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL
PRODUCTS.
(a) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) is amended--
(1) in paragraph (30)(S), by striking the period and adding
at the end the following: ``but does not include any lamp
specifically designed to be used for special purpose
applications and that is unlikely to be used in general
purpose applications such as those described in subparagraph
(D), and also does not include any lamp not described in
subparagraph (D) that is excluded by the Secretary, by rule,
because the lamp is designed for special applications and is
unlikely to be used in general purpose applications.''; and
(2) by adding at the end the following:
``(32) The term `battery charger' means a device that
charges batteries for consumer products and includes battery
chargers embedded in other consumer products.
``(33) The term `commercial refrigerators, freezers, and
refrigerator-freezers' means refrigerators, freezers, or
refrigerator-freezers that--
``(A) are not consumer products regulated under this Act;
and
``(B) incorporate most components involved in the vapor-
compression cycle and the refrigerated compartment in a
single package.
``(34) The term `external power supply' means an external
power supply circuit that is used to convert household
electric current into either DC current or lower-voltage AC
current to operate a consumer product.
``(35) The term `illuminated exit sign' means a sign that--
``(A) is designed to be permanently fixed in place to
identify an exit; and
``(B) consists of an electrically powered integral light
source that illuminates the legend `EXIT' and any directional
indicators and provides contrast between the legend, any
directional indicators, and the background.
``(36)(A) Except as provided in subparagraph (B), the term
`distribution transformer' means a transformer that--
``(i) has an input voltage of 34.5 kilovolts or less;
``(ii) has an output voltage of 600 volts or less; and
``(iii) is rated for operation at a frequency of 60 Hertz.
``(B) The term `distribution transformer' does not
include--
``(i) transformers with multiple voltage taps, with the
highest voltage tap equaling at least 20 percent more than
the lowest voltage tap;
``(ii) transformers, such as those commonly known as drive
transformers, rectifier transformers, auto-transformers,
Uninterruptible Power System transformers, impedance
transformers, harmonic transformers, regulating transformers,
sealed and nonventilating transformers, machine tool
transformers, welding transformers, grounding transformers,
or testing transformers, that are designed to be used in a
special purpose application and are unlikely to be used in
general purpose applications; or
``(iii) any transformer not listed in clause (ii) that is
excluded by the Secretary by rule because--
``(I) the transformer is designed for a special
application;
``(II) the transformer is unlikely to be used in general
purpose applications; and
``(III) the application of standards to the transformer
would not result in significant energy savings.
``(37) The term `low-voltage dry-type distribution
transformer' means a distribution transformer that--
``(A) has an input voltage of 600 volts or less;
``(B) is air-cooled; and
``(C) does not use oil as a coolant.
``(38) The term `standby mode' means the lowest power
consumption mode that--
``(A) cannot be switched off or influenced by the user; and
``(B) may persist for an indefinite time when an appliance
is connected to the main electricity supply and used in
accordance with the manufacturer's instructions,
as defined on an individual product basis by the Secretary.
``(39) The term `torchiere' means a portable electric lamp
with a reflector bowl that directs light upward so as to give
indirect illumination.
``(40) The term `traffic signal module' means a standard 8-
inch (200mm) or 12-inch (300mm) traffic signal indication,
consisting of a light source, a lens, and all other parts
necessary for operation, that communicates movement messages
to drivers through red, amber, and green colors.
``(41) The term `transformer' means a device consisting of
2 or more coils of insulated wire
[[Page 29128]]
that transfers alternating current by electromagnetic
induction from 1 coil to another to change the original
voltage or current value.
``(42) The term `unit heater' means a self-contained fan-
type heater designed to be installed within the heated space,
except that such term does not include a warm air furnace.''.
(b) Test Procedures.--Section 323 of the Energy Policy and
Conservation Act (42 U.S.C. 6293) is amended--
(1) in subsection (b), by adding at the end the following:
``(9) Test procedures for illuminated exit signs shall be
based on the test method used under Version 2.0 of the Energy
Star program of the Environmental Protection Agency for
illuminated exit signs.
``(10) Test procedures for distribution transformers and
low voltage dry-type distribution transformers shall be based
on the `Standard Test Method for Measuring the Energy
Consumption of Distribution Transformers' prescribed by the
National Electrical Manufacturers Association (NEMA TP 2-
1998). The Secretary may review and revise this test
procedure. For purposes of section 346(a), this test
procedure shall be deemed to be testing requirements
prescribed by the Secretary under section 346(a)(1) for
distribution transformers for which the Secretary makes a
determination that energy conservation standards would be
technologically feasible and economically justified, and
would result in significant energy savings.
``(11) Test procedures for traffic signal modules shall be
based on the test method used under the Energy Star program
of the Environmental Protection Agency for traffic signal
modules, as in effect on the date of enactment of this
paragraph.
``(12) Test procedures for medium base compact fluorescent
lamps shall be based on the test methods used under the
August 9, 2001, version of the Energy Star program of the
Environmental Protection Agency and Department of Energy for
compact fluorescent lamps. Covered products shall meet all
test requirements for regulated parameters in section
325(bb). However, covered products may be marketed prior to
completion of lamp life and lumen maintenance at 40 percent
of rated life testing provided manufacturers document
engineering predictions and analysis that support expected
attainment of lumen maintenance at 40 percent rated life and
lamp life time.''; and
(2) by adding at the end the following:
``(f) Additional Consumer and Commercial Products.--The
Secretary shall, not later than 24 months after the date of
enactment of this subsection, prescribe testing requirements
for suspended ceiling fans, refrigerated bottled or canned
beverage vending machines, and commercial refrigerators,
freezers, and refrigerator-freezers. Such testing
requirements shall be based on existing test procedures used
in industry to the extent practical and reasonable. In the
case of suspended ceiling fans, such test procedures shall
include efficiency at both maximum output and at an output no
more than 50 percent of the maximum output.''.
(c) New Standards.--Section 325 of the Energy Policy and
Conservation Act (42 U.S.C. 6295) is amended by adding at the
end the following:
``(u) Battery Charger and External Power Supply Electric
Energy Consumption.--
``(1) Initial rulemaking.--(A) The Secretary shall, within
18 months after the date of enactment of this subsection,
prescribe by notice and comment, definitions and test
procedures for the power use of battery chargers and external
power supplies. In establishing these test procedures, the
Secretary shall consider, among other factors, existing
definitions and test procedures used for measuring energy
consumption in standby mode and other modes and assess the
current and projected future market for battery chargers and
external power supplies. This assessment shall include
estimates of the significance of potential energy savings
from technical improvements to these products and suggested
product classes for standards. Prior to the end of this time
period, the Secretary shall hold a scoping workshop to
discuss and receive comments on plans for developing energy
conservation standards for energy use for these products.
``(B) The Secretary shall, within 3 years after the date of
enactment of this subsection, issue a final rule that
determines whether energy conservation standards shall be
issued for battery chargers and external power supplies or
classes thereof. For each product class, any such standards
shall be set at the lowest level of energy use that--
``(i) meets the criteria and procedures of subsections (o),
(p), (q), (r), (s), and (t); and
``(ii) will result in significant overall annual energy
savings, considering both standby mode and other operating
modes.
``(2) Review of standby energy use in covered products.--In
determining pursuant to section 323 whether test procedures
and energy conservation standards pursuant to this section
should be revised, the Secretary shall consider, for covered
products that are major sources of standby mode energy
consumption, whether to incorporate standby mode into such
test procedures and energy conservation standards, taking
into account, among other relevant factors, standby mode
power consumption compared to overall product energy
consumption.
``(3) Rulemaking.--The Secretary shall not propose a
standard under this section unless the Secretary has issued
applicable test procedures for each product pursuant to
section 323.
``(4) Effective date.--Any standard issued under this
subsection shall be applicable to products manufactured or
imported 3 years after the date of issuance.
``(5) Voluntary programs.--The Secretary and the
Administrator shall collaborate and develop programs,
including programs pursuant to section 324A (relating to
Energy Star Programs) and other voluntary industry agreements
or codes of conduct, that are designed to reduce standby mode
energy use.
``(v) Suspended Ceiling Fans, Vending Machines, and
Commercial Refrigerators, Freezers, and Refrigerator-
Freezers.--The Secretary shall not later than 36 months after
the date on which testing requirements are prescribed by the
Secretary pursuant to section 323(f), prescribe, by rule,
energy conservation standards for suspended ceiling fans,
refrigerated bottled or canned beverage vending machines, and
commercial refrigerators, freezers, and refrigerator-
freezers. In establishing standards under this subsection,
the Secretary shall use the criteria and procedures contained
in subsections (o) and (p). Any standard prescribed under
this subsection shall apply to products manufactured 3 years
after the date of publication of a final rule establishing
such standard.
``(w) Illuminated Exit Signs.--Illuminated exit signs
manufactured on or after January 1, 2005, shall meet the
Version 2.0 Energy Star Program performance requirements for
illuminated exit signs prescribed by the Environmental
Protection Agency.
``(x) Torchieres.--Torchieres manufactured on or after
January 1, 2005--
``(1) shall consume not more than 190 watts of power; and
``(2) shall not be capable of operating with lamps that
total more than 190 watts.
``(y) Low Voltage Dry-Type Distribution Transformers.--The
efficiency of low voltage dry-type distribution transformers
manufactured on or after January 1, 2005, shall be the Class
I Efficiency Levels for distribution transformers specified
in Table 4-2 of the `Guide for Determining Energy Efficiency
for Distribution Transformers' published by the National
Electrical Manufacturers Association (NEMA TP-1-2002).
``(z) Traffic Signal Modules.--Traffic signal modules
manufactured on or after January 1, 2006, shall meet the
performance requirements used under the Energy Star program
of the Environmental Protection Agency for traffic signals,
as in effect on the date of enactment of this subsection, and
shall be installed with compatible, electrically connected
signal control interface devices and conflict monitoring
systems.
``(aa) Unit Heaters.--Unit heaters manufactured on or after
the date that is 3 years after the date of enactment of this
subsection shall be equipped with an intermittent ignition
device and shall have either power venting or an automatic
flue damper.
``(bb) Medium Base Compact Fluorescent Lamps.--Bare lamp
and covered lamp (no reflector) medium base compact
fluorescent lamps manufactured on or after January 1, 2005,
shall meet the following requirements prescribed by the
August 9, 2001, version of the Energy Star Program
Requirements for Compact Fluorescent Lamps, Energy Star
Eligibility Criteria, Energy-Efficiency Specification issued
by the Environmental Protection Agency and Department of
Energy: minimum initial efficacy; lumen maintenance at 1000
hours; lumen maintenance at 40 percent of rated life; rapid
cycle stress test; and lamp life. The Secretary may, by rule,
establish requirements for color quality (CRI); power factor;
operating frequency; and maximum allowable start time based
on the requirements prescribed by the August 9, 2001, version
of the Energy Star Program Requirements for Compact
Fluorescent Lamps. The Secretary may, by rule, revise these
requirements or establish other requirements considering
energy savings, cost effectiveness, and consumer
satisfaction.
``(cc) Effective Date.--Section 327 shall apply--
``(1) to products for which standards are to be established
under subsections (u) and (v) on the date on which a final
rule is issued by the Department of Energy, except that any
State or local standards prescribed or enacted for any such
product prior to the date on which such final rule is issued
shall not be preempted until the standard established under
subsection (u) or (v) for that product takes effect; and
``(2) to products for which standards are established under
subsections (w) through (bb) on the date of enactment of
those subsections, except that any State or local standards
prescribed or enacted prior to the date of enactment of those
subsections shall not be preempted until the standards
established under subsections (w) through (bb) take
effect.''.
(d) Residential Furnace Fans.--Section 325(f)(3) of the
Energy Policy and Conservation Act (42 U.S.C. 6295(f)(3)) is
amended by adding the following new subparagraph at the end:
``(D) Notwithstanding any provision of this Act, the
Secretary may consider, and prescribe, if the requirements of
subsection (o) of this section are met, energy efficiency or
energy use standards for electricity used for purposes of
circulating air through duct work.''.
SEC. 134. ENERGY LABELING.
(a) Rulemaking on Effectiveness of Consumer Product
Labeling.--Section 324(a)(2) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding
at the end the following:
``(F) Not later than 3 months after the date of enactment
of this subparagraph, the Commission shall initiate a
rulemaking to consider the effectiveness of the current
consumer products
[[Page 29129]]
labeling program in assisting consumers in making purchasing
decisions and improving energy efficiency and to consider
changes to the labeling rules that would improve the
effectiveness of consumer product labels. Such rulemaking
shall be completed not later than 2 years after the date of
enactment of this subparagraph.''.
(b) Rulemaking on Labeling for Additional Products.--
Section 324(a) of the Energy Policy and Conservation Act (42
U.S.C. 6294(a)) is further amended by adding at the end the
following:
``(5) The Secretary or the Commission, as appropriate, may,
for covered products referred to in subsections (u) through
(aa) of section 325, prescribe, by rule, pursuant to this
section, labeling requirements for such products after a test
procedure has been set pursuant to section 323. In the case
of products to which TP-1 standards under section 325(y)
apply, labeling requirements shall be based on the `Standard
for the Labeling of Distribution Transformer Efficiency'
prescribed by the National Electrical Manufacturers
Association (NEMA TP-3) as in effect upon the date of
enactment of this paragraph.''.
Subtitle D--Public Housing
SEC. 141. CAPACITY BUILDING FOR ENERGY-EFFICIENT, AFFORDABLE
HOUSING.
Section 4(b) of the HUD Demonstration Act of 1993 (42
U.S.C. 9816 note) is amended--
(1) in paragraph (1), by inserting before the semicolon at
the end the following: ``, including capabilities regarding
the provision of energy efficient, affordable housing and
residential energy conservation measures''; and
(2) in paragraph (2), by inserting before the semicolon the
following: ``, including such activities relating to the
provision of energy efficient, affordable housing and
residential energy conservation measures that benefit low-
income families''.
SEC. 142. INCREASE OF CDBG PUBLIC SERVICES CAP FOR ENERGY
CONSERVATION AND EFFICIENCY ACTIVITIES.
Section 105(a)(8) of the Housing and Community Development
Act of 1974 (42 U.S.C. 5305(a)(8)) is amended--
(1) by inserting ``or efficiency'' after ``energy
conservation'';
(2) by striking ``, and except that'' and inserting ``;
except that''; and
(3) by inserting before the semicolon at the end the
following: ``; and except that each percentage limitation
under this paragraph on the amount of assistance provided
under this title that may be used for the provision of public
services is hereby increased by 10 percent, but such
percentage increase may be used only for the provision of
public services concerning energy conservation or
efficiency''.
SEC. 143. FHA MORTGAGE INSURANCE INCENTIVES FOR ENERGY
EFFICIENT HOUSING.
(a) Single Family Housing Mortgage Insurance.--Section
203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2))
is amended, in the first undesignated paragraph beginning
after subparagraph (B)(ii)(IV) (relating to solar energy
systems), by striking ``20 percent'' and inserting ``30
percent''.
(b) Multifamily Housing Mortgage Insurance.--Section 207(c)
of the National Housing Act (12 U.S.C. 1713(c)) is amended,
in the last undesignated paragraph beginning after paragraph
(3) (relating to solar energy systems and residential energy
conservation measures), by striking ``20 percent'' and
inserting ``30 percent''.
(c) Cooperative Housing Mortgage Insurance.--Section 213(p)
of the National Housing Act (12 U.S.C. 1715e(p)) is amended
by striking ``20 per centum'' and inserting ``30 percent''.
(d) Rehabilitation and Neighborhood Conservation Housing
Mortgage Insurance.--Section 220(d)(3)(B)(iii)(IV) of the
National Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii)(IV)) is
amended--
(1) by striking ``with respect to rehabilitation projects
involving not more than five family units,''; and
(2) by striking ``20 per centum'' and inserting ``30
percent''.
(e) Low-Income Multifamily Housing Mortgage Insurance.--
Section 221(k) of the National Housing Act (12 U.S.C.
1715l(k)) is amended by striking ``20 per centum'' and
inserting ``30 percent''.
(f) Elderly Housing Mortgage Insurance.--Section
231(c)(2)(C) of the National Housing Act (12 U.S.C.
1715v(c)(2)(C)) is amended by striking ``20 per centum'' and
inserting ``30 percent''.
(g) Condominium Housing Mortgage Insurance.--Section 234(j)
of the National Housing Act (12 U.S.C. 1715y(j)) is amended
by striking ``20 per centum'' and inserting ``30 percent''.
SEC. 144. PUBLIC HOUSING CAPITAL FUND.
Section 9 of the United States Housing Act of 1937 (42
U.S.C. 1437g) is amended--
(1) in subsection (d)(1)--
(A) in subparagraph (I), by striking ``and'' at the end;
(B) in subparagraph (J), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following new subparagraphs:
``(K) improvement of energy and water-use efficiency by
installing fixtures and fittings that conform to the American
Society of Mechanical Engineers/American National Standards
Institute standards A112.19.2-1998 and A112.18.1-2000, or any
revision thereto, applicable at the time of installation, and
by increasing energy efficiency and water conservation by
such other means as the Secretary determines are appropriate;
and
``(L) integrated utility management and capital planning to
maximize energy conservation and efficiency measures.''; and
(2) in subsection (e)(2)(C)--
(A) by striking ``The'' and inserting the following:
``(i) In general.--The''; and
(B) by adding at the end the following:
``(ii) Third party contracts.--Contracts described in
clause (i) may include contracts for equipment conversions to
less costly utility sources, projects with resident-paid
utilities, and adjustments to frozen base year consumption,
including systems repaired to meet applicable building and
safety codes and adjustments for occupancy rates increased by
rehabilitation.
``(iii) Term of contract.--The total term of a contract
described in clause (i) shall not exceed 20 years to allow
longer payback periods for retrofits, including windows,
heating system replacements, wall insulation, site-based
generation, advanced energy savings technologies, including
renewable energy generation, and other such retrofits.''.
SEC. 145. GRANTS FOR ENERGY-CONSERVING IMPROVEMENTS FOR
ASSISTED HOUSING.
Section 251(b)(1) of the National Energy Conservation
Policy Act (42 U.S.C. 8231(1)) is amended--
(1) by striking ``financed with loans'' and inserting
``assisted'';
(2) by inserting after ``1959,'' the following: ``which are
eligible multifamily housing projects (as such term is
defined in section 512 of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note))
and are subject to mortgage restructuring and rental
assistance sufficiency plans under such Act,''; and
(3) by inserting after the period at the end of the first
sentence the following new sentence: ``Such improvements may
also include the installation of energy and water conserving
fixtures and fittings that conform to the American Society of
Mechanical Engineers/American National Standards Institute
standards A112.19.2-1998 and A112.18.1-2000, or any revision
thereto, applicable at the time of installation.''.
SEC. 146. NORTH AMERICAN DEVELOPMENT BANK.
Part 2 of subtitle D of title V of the North American Free
Trade Agreement Implementation Act (22 U.S.C. 290m-290m-3) is
amended by adding at the end the following:
``SEC. 545. SUPPORT FOR CERTAIN ENERGY POLICIES.
``Consistent with the focus of the Bank's Charter on
environmental infrastructure projects, the Board members
representing the United States should use their voice and
vote to encourage the Bank to finance projects related to
clean and efficient energy, including energy conservation,
that prevent, control, or reduce environmental pollutants or
contaminants.''.
SEC. 147. ENERGY-EFFICIENT APPLIANCES.
In purchasing appliances, a public housing agency shall
purchase energy-efficient appliances that are Energy Star
products or FEMP-designated products, as such terms are
defined in section 553 of the National Energy Conservation
Policy Act (as amended by this title), unless the purchase of
energy-efficient appliances is not cost-effective to the
agency.
SEC. 148. ENERGY EFFICIENCY STANDARDS.
Section 109 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12709) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``1 year after the date of the enactment of
the Energy Policy Act of 1992'' and inserting ``September 30,
2004'';
(ii) in subparagraph (A), by striking ``and'' at the end;
(iii) in subparagraph (B), by striking the period at the
end and inserting ``; and''; and
(iv) by adding at the end the following:
``(C) rehabilitation and new construction of public and
assisted housing funded by HOPE VI revitalization grants
under section 24 of the United States Housing Act of 1937 (42
U.S.C. 1437v), where such standards are determined to be cost
effective by the Secretary of Housing and Urban
Development.''; and
(B) in paragraph (2), by striking ``Council of American''
and all that follows through ``90.1-1989')'' and inserting
``2003 International Energy Conservation Code'';
(2) in subsection (b)--
(A) by striking ``within 1 year after the date of the
enactment of the Energy Policy Act of 1992'' and inserting
``by September 30, 2004''; and
(B) by striking ``CABO'' and all that follows through
``1989'' and inserting ``the 2003 International Energy
Conservation Code''; and
(3) in subsection (c)--
(A) in the heading, by striking ``Model Energy Code'' and
inserting ``The International Energy Conservation Code''; and
(B) by striking ``CABO'' and all that follows through
``1989'' and inserting ``the 2003 International Energy
Conservation Code''.
SEC. 149. ENERGY STRATEGY FOR HUD.
The Secretary of Housing and Urban Development shall
develop and implement an integrated strategy to reduce
utility expenses through cost-effective energy conservation
and efficiency measures and energy efficient design and
construction of public and assisted housing. The energy
strategy shall include the development of energy reduction
goals and incentives for public housing agencies. The
Secretary shall submit a report to Congress, not later than 1
year after
[[Page 29130]]
the date of the enactment of this Act, on the energy strategy
and the actions taken by the Department of Housing and Urban
Development to monitor the energy usage of public housing
agencies and shall submit an update every 2 years thereafter
on progress in implementing the strategy.
TITLE II--RENEWABLE ENERGY
Subtitle A--General Provisions
SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.
(a) Resource Assessment.--Not later than 6 months after the
date of enactment of this Act, and each year thereafter, the
Secretary of Energy shall review the available assessments of
renewable energy resources within the United States,
including solar, wind, biomass, ocean (tidal, wave, current,
and thermal), geothermal, and hydroelectric energy resources,
and undertake new assessments as necessary, taking into
account changes in market conditions, available technologies,
and other relevant factors.
(b) Contents of Reports.--Not later than 1 year after the
date of enactment of this Act, and each year thereafter, the
Secretary shall publish a report based on the assessment
under subsection (a). The report shall contain--
(1) a detailed inventory describing the available amount
and characteristics of the renewable energy resources; and
(2) such other information as the Secretary believes would
be useful in developing such renewable energy resources,
including descriptions of surrounding terrain, population and
load centers, nearby energy infrastructure, location of
energy and water resources, and available estimates of the
costs needed to develop each resource, together with an
identification of any barriers to providing adequate
transmission for remote sources of renewable energy resources
to current and emerging markets, recommendations for removing
or addressing such barriers, and ways to provide access to
the grid that do not unfairly disadvantage renewable or other
energy producers.
(c) Authorization of Appropriations.--For the purposes of
this section, there are authorized to be appropriated to the
Secretary of Energy $10,000,000 for each of fiscal years 2004
through 2008.
SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE.
(a) Incentive Payments.--Section 1212(a) of the Energy
Policy Act of 1992 (42 U.S.C. 13317(a)) is amended by
striking ``and which satisfies'' and all that follows through
``Secretary shall establish.'' and inserting ``. If there are
insufficient appropriations to make full payments for
electric production from all qualified renewable energy
facilities in any given year, the Secretary shall assign 60
percent of appropriated funds for that year to facilities
that use solar, wind, geothermal, or closed-loop (dedicated
energy crops) biomass technologies to generate electricity,
and assign the remaining 40 percent to other projects. The
Secretary may, after transmitting to Congress an explanation
of the reasons therefor, alter the percentage requirements of
the preceding sentence.''.
(b) Qualified Renewable Energy Facility.--Section 1212(b)
of the Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is
amended--
(1) by striking ``a State or any political'' and all that
follows through ``nonprofit electrical cooperative'' and
inserting ``a not-for-profit electric cooperative, a public
utility described in section 115 of the Internal Revenue Code
of 1986, a State, Commonwealth, territory, or possession of
the United States or the District of Columbia, or a political
subdivision thereof, or an Indian tribal government or
subdivision thereof,''; and
(2) by inserting ``landfill gas,'' after ``wind,
biomass,''.
(c) Eligibility Window.--Section 1212(c) of the Energy
Policy Act of 1992 (42 U.S.C. 13317(c)) is amended by
striking ``during the 10-fiscal year period beginning with
the first full fiscal year occurring after the enactment of
this section'' and inserting ``after October 1, 2003, and
before October 1, 2013''.
(d) Amount of Payment.--Section 1212(e)(1) of the Energy
Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is amended by
inserting ``landfill gas,'' after ``wind, biomass,''.
(e) Sunset.--Section 1212(f) of the Energy Policy Act of
1992 (42 U.S.C. 13317(f)) is amended by striking ``the
expiration of'' and all that follows through ``of this
section'' and inserting ``September 30, 2023''.
(f) Authorization of Appropriations.--Section 1212(g) of
the Energy Policy Act of 1992 (42 U.S.C. 13317(g)) is amended
to read as follows:
``(g) Authorization of Appropriations.--
``(1) In general.--Subject to paragraph (2), there are
authorized to be appropriated such sums as may be necessary
to carry out this section for fiscal years 2003 through 2023.
``(2) Availability of funds.--Funds made available under
paragraph (1) shall remain available until expended.''.
SEC. 203. FEDERAL PURCHASE REQUIREMENT.
(a) Requirement.--The President, acting through the
Secretary of Energy, shall seek to ensure that, to the extent
economically feasible and technically practicable, of the
total amount of electric energy the Federal Government
consumes during any fiscal year, the following amounts shall
be renewable energy:
(1) Not less than 3 percent in fiscal years 2005 through
2007.
(2) Not less than 5 percent in fiscal years 2008 through
2010.
(3) Not less than 7.5 percent in fiscal year 2011 and each
fiscal year thereafter.
(b) Definitions.--In this section:
(1) Biomass.--The term ``biomass'' means any solid,
nonhazardous, cellulosic material that is derived from--
(A) any of the following forest-related resources: mill
residues, precommercial thinnings, slash, and brush, or
nonmerchantable material;
(B) solid wood waste materials, including waste pallets,
crates, dunnage, manufacturing and construction wood wastes
(other than pressure-treated, chemically-treated, or painted
wood wastes), and landscape or right-of-way tree trimmings,
but not including municipal solid waste (garbage), gas
derived from the biodegradation of solid waste, or paper that
is commonly recycled;
(C) agriculture wastes, including orchard tree crops,
vineyard, grain, legumes, sugar, and other crop by-products
or residues, and livestock waste nutrients; or
(D) a plant that is grown exclusively as a fuel for the
production of electricity.
(2) Renewable energy.--The term ``renewable energy'' means
electric energy generated from solar, wind, biomass, landfill
gas, geothermal, municipal solid waste, or new hydroelectric
generation capacity achieved from increased efficiency or
additions of new capacity at an existing hydroelectric
project.
(c) Calculation.--For purposes of determining compliance
with the requirement of this section, the amount of renewable
energy shall be doubled if--
(1) the renewable energy is produced and used on-site at a
Federal facility;
(2) the renewable energy is produced on Federal lands and
used at a Federal facility; or
(3) the renewable energy is produced on Indian land as
defined in title XXVI of the Energy Policy Act of 1992 (25
U.S.C. 3501 et. seq.) and used at a Federal facility.
(d) Report.--Not later than April 15, 2005, and every 2
years thereafter, the Secretary of Energy shall provide a
report to Congress on the progress of the Federal Government
in meeting the goals established by this section.
SEC. 204. INSULAR AREAS ENERGY SECURITY.
Section 604 of the Act entitled ``An Act to authorize
appropriations for certain insular areas of the United
States, and for other purposes'', approved December 24, 1980
(48 U.S.C. 1492), is amended--
(1) in subsection (a)(4) by striking the period and
inserting a semicolon;
(2) by adding at the end of subsection (a) the following
new paragraphs:
``(5) electric power transmission and distribution lines in
insular areas are inadequate to withstand damage caused by
the hurricanes and typhoons which frequently occur in insular
areas and such damage often costs millions of dollars to
repair; and
``(6) the refinement of renewable energy technologies since
the publication of the 1982 Territorial Energy Assessment
prepared pursuant to subsection (c) reveals the need to
reassess the state of energy production, consumption,
infrastructure, reliance on imported energy, opportunities
for energy conservation and increased energy efficiency, and
indigenous sources in regard to the insular areas.'';
(3) by amending subsection (e) to read as follows:
``(e)(1) The Secretary of the Interior, in consultation
with the Secretary of Energy and the head of government of
each insular area, shall update the plans required under
subsection (c) by--
``(A) updating the contents required by subsection (c);
``(B) drafting long-term energy plans for such insular
areas with the objective of reducing, to the extent feasible,
their reliance on energy imports by the year 2010, increasing
energy conservation and energy efficiency, and maximizing, to
the extent feasible, use of indigenous energy sources; and
``(C) drafting long-term energy transmission line plans for
such insular areas with the objective that the maximum
percentage feasible of electric power transmission and
distribution lines in each insular area be protected from
damage caused by hurricanes and typhoons.
``(2) Not later than December 31, 2005, the Secretary of
the Interior shall submit to Congress the updated plans for
each insular area required by this subsection.''; and
(4) by amending subsection (g)(4) to read as follows:
``(4) Power line grants for insular areas.--
``(A) In general.--The Secretary of the Interior is
authorized to make grants to governments of insular areas of
the United States to carry out eligible projects to protect
electric power transmission and distribution lines in such
insular areas from damage caused by hurricanes and typhoons.
``(B) Eligible projects.--The Secretary may award grants
under subparagraph (A) only to governments of insular areas
of the United States that submit written project plans to the
Secretary for projects that meet the following criteria:
``(i) The project is designed to protect electric power
transmission and distribution lines located in 1 or more of
the insular areas of the United States from damage caused by
hurricanes and typhoons.
``(ii) The project is likely to substantially reduce the
risk of future damage, hardship, loss, or suffering.
``(iii) The project addresses 1 or more problems that have
been repetitive or that pose a significant risk to public
health and safety.
``(iv) The project is not likely to cost more than the
value of the reduction in direct damage and other negative
impacts that the project is designed to prevent or mitigate.
The cost benefit analysis required by this criterion shall be
computed on a net present value basis.
[[Page 29131]]
``(v) The project design has taken into consideration long-
term changes to the areas and persons it is designed to
protect and has manageable future maintenance and
modification requirements.
``(vi) The project plan includes an analysis of a range of
options to address the problem it is designed to prevent or
mitigate and a justification for the selection of the project
in light of that analysis.
``(vii) The applicant has demonstrated to the Secretary
that the matching funds required by subparagraph (D) are
available.
``(C) Priority.--When making grants under this paragraph,
the Secretary shall give priority to grants for projects
which are likely to--
``(i) have the greatest impact on reducing future disaster
losses; and
``(ii) best conform with plans that have been approved by
the Federal Government or the government of the insular area
where the project is to be carried out for development or
hazard mitigation for that insular area.
``(D) Matching requirement.--The Federal share of the cost
for a project for which a grant is provided under this
paragraph shall not exceed 75 percent of the total cost of
that project. The non-Federal share of the cost may be
provided in the form of cash or services.
``(E) Treatment of funds for certain purposes.--Grants
provided under this paragraph shall not be considered as
income, a resource, or a duplicative program when determining
eligibility or benefit levels for Federal major disaster and
emergency assistance.
``(F) Authorization of appropriations.--There are
authorized to be appropriated to carry out this paragraph
$5,000,000 for each fiscal year beginning after the date of
the enactment of this paragraph.''.
SEC. 205. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.
(a) In General.--Subchapter VI of chapter 31 of title 40,
United States Code, is amended by adding at the end the
following:
``Sec. 3177. Use of photovoltaic energy in public buildings
``(a) Photovoltaic Energy Commercialization Program.--
``(1) In general.--The Administrator of General Services
may establish a photovoltaic energy commercialization program
for the procurement and installation of photovoltaic solar
electric systems for electric production in new and existing
public buildings.
``(2) Purposes.--The purposes of the program shall be to
accomplish the following:
``(A) To accelerate the growth of a commercially viable
photovoltaic industry to make this energy system available to
the general public as an option which can reduce the national
consumption of fossil fuel.
``(B) To reduce the fossil fuel consumption and costs of
the Federal Government.
``(C) To attain the goal of installing solar energy systems
in 20,000 Federal buildings by 2010, as contained in the
Federal Government's Million Solar Roof Initiative of 1997.
``(D) To stimulate the general use within the Federal
Government of life-cycle costing and innovative procurement
methods.
``(E) To develop program performance data to support policy
decisions on future incentive programs with respect to
energy.
``(3) Acquisition of photovoltaic solar electric systems.--
``(A) In general.--The program shall provide for the
acquisition of photovoltaic solar electric systems and
associated storage capability for use in public buildings.
``(B) Acquisition levels.--The acquisition of photovoltaic
electric systems shall be at a level substantial enough to
allow use of low-cost production techniques with at least 150
megawatts (peak) cumulative acquired during the 5 years of
the program.
``(4) Administration.--The Administrator shall administer
the program and shall--
``(A) issue such rules and regulations as may be
appropriate to monitor and assess the performance and
operation of photovoltaic solar electric systems installed
pursuant to this subsection;
``(B) develop innovative procurement strategies for the
acquisition of such systems; and
``(C) transmit to Congress an annual report on the results
of the program.
``(b) Photovoltaic Systems Evaluation Program.--
``(1) In general.--Not later than 60 days after the date of
enactment of this section, the Administrator, in consultation
with the Secretary of Energy, shall establish a photovoltaic
solar energy systems evaluation program to evaluate such
photovoltaic solar energy systems as are required in public
buildings.
``(2) Program Requirement.--In evaluating photovoltaic
solar energy systems under the program, the Administrator
shall ensure that such systems reflect the most advanced
technology.
``(c) Authorization of Appropriations.--
``(1) Photovoltaic energy commercialization program.--There
are authorized to be appropriated to carry out subsection (a)
$50,000,000 for each of fiscal years 2004 through 2008. Such
sums shall remain available until expended.
``(2) Photovoltaic systems evaluation program.--There are
authorized to be appropriated to carry out subsection (b)
$10,000,000 for each of fiscal years 2004 through 2008. Such
sums shall remain available until expended.''.
(b) Conforming Amendment.--The section analysis for such
chapter is amended by inserting after the item relating to
section 3176 the following:
``3177. Use of photovoltaic energy in public buildings.''.
SEC. 206. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST
BIOMASS FOR ELECTRIC ENERGY, USEFUL HEAT,
TRANSPORTATION FUELS, PETROLEUM-BASED PRODUCT
SUBSTITUTES, AND OTHER COMMERCIAL PURPOSES.
(a) Findings.--Congress finds the following:
(1) Thousands of communities in the United States, many
located near Federal lands, are at risk to wildfire.
Approximately 190,000,000 acres of land managed by the
Secretary of Agriculture and the Secretary of the Interior
are at risk of catastrophic fire in the near future. The
accumulation of heavy forest fuel loads continues to increase
as a result of disease, insect infestations, and drought,
further raising the risk of fire each year.
(2) In addition, more than 70,000,000 acres across all land
ownerships are at risk to higher than normal mortality over
the next 15 years from insect infestation and disease. High
levels of tree mortality from insects and disease result in
increased fire risk, loss of old growth, degraded watershed
conditions, and changes in species diversity and
productivity, as well as diminished fish and wildlife habitat
and decreased timber values.
(3) Preventive treatments such as removing fuel loading,
ladder fuels, and hazard trees, planting proper species mix
and restoring and protecting early successional habitat, and
other specific restoration treatments designed to reduce the
susceptibility of forest land, woodland, and rangeland to
insect outbreaks, disease, and catastrophic fire present the
greatest opportunity for long-term forest health by creating
a mosaic of species-mix and age distribution. Such prevention
treatments are widely acknowledged to be more successful and
cost effective than suppression treatments in the case of
insects, disease, and fire.
(4) The byproducts of preventive treatment (wood, brush,
thinnings, chips, slash, and other hazardous fuels) removed
from forest lands, woodlands and rangelands represent an
abundant supply of biomass for biomass-to-energy facilities
and raw material for business. There are currently few
markets for the extraordinary volumes of byproducts being
generated as a result of the necessary large-scale preventive
treatment activities.
(5) The United States should--
(A) promote economic and entrepreneurial opportunities in
using byproducts removed through preventive treatment
activities related to hazardous fuels reduction, disease, and
insect infestation; and
(B) develop and expand markets for traditionally underused
wood and biomass as an outlet for byproducts of preventive
treatment activities.
(b) Definitions.--In this section:
(1) Biomass.--The term ``biomass'' means trees and woody
plants, including limbs, tops, needles, and other woody
parts, and byproducts of preventive treatment, such as wood,
brush, thinnings, chips, and slash, that are removed--
(A) to reduce hazardous fuels; or
(B) to reduce the risk of or to contain disease or insect
infestation.
(2) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4(e) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
450b(e)).
(3) Person.--The term ``person'' includes--
(A) an individual;
(B) a community (as determined by the Secretary concerned);
(C) an Indian tribe;
(D) a small business, micro-business, or a corporation that
is incorporated in the United States; and
(E) a nonprofit organization.
(4) Preferred community.--The term ``preferred community''
means--
(A) any town, township, municipality, or other similar unit
of local government (as determined by the Secretary
concerned) that--
(i) has a population of not more than 50,000 individuals;
and
(ii) the Secretary concerned, in the sole discretion of the
Secretary concerned, determines contains or is located near
land, the condition of which is at significant risk of
catastrophic wildfire, disease, or insect infestation or
which suffers from disease or insect infestation; or
(B) any county that--
(i) is not contained within a metropolitan statistical
area; and
(ii) the Secretary concerned, in the sole discretion of the
Secretary concerned, determines contains or is located near
land, the condition of which is at significant risk of
catastrophic wildfire, disease, or insect infestation or
which suffers from disease or insect infestation.
(5) Secretary concerned.--The term ``Secretary concerned''
means--
(A) the Secretary of Agriculture with respect to National
Forest System lands; and
(B) the Secretary of the Interior with respect to Federal
lands under the jurisdiction of the Secretary of the Interior
and Indian lands.
(c) Biomass Commercial Use Grant Program.--
(1) In general.--The Secretary concerned may make grants to
any person that owns or operates a facility that uses biomass
as a raw material to produce electric energy, sensible heat,
transportation fuels, or substitutes for petroleum-based
products to offset the costs incurred to purchase biomass for
use by such facility.
(2) Grant amounts.--A grant under this subsection may not
exceed $20 per green ton of biomass delivered.
(3) Monitoring of grant recipient activities.--As a
condition of a grant under this subsection, the grant
recipient shall keep such
[[Page 29132]]
records as the Secretary concerned may require to fully and
correctly disclose the use of the grant funds and all
transactions involved in the purchase of biomass. Upon notice
by a representative of the Secretary concerned, the grant
recipient shall afford the representative reasonable access
to the facility that purchases or uses biomass and an
opportunity to examine the inventory and records of the
facility.
(d) Improved Biomass Use Grant Program.--
(1) In general.--The Secretary concerned may make grants to
persons to offset the cost of projects to develop or research
opportunities to improve the use of, or add value to,
biomass. In making such grants, the Secretary concerned shall
give preference to persons in preferred communities.
(2) Selection.--The Secretary concerned shall select a
grant recipient under paragraph (1) after giving
consideration to the anticipated public benefits of the
project, including the potential to develop thermal or
electric energy resources or affordable energy, opportunities
for the creation or expansion of small businesses and micro-
businesses, and the potential for new job creation.
(3) Grant amount.--A grant under this subsection may not
exceed $500,000.
(e) Authorization of Appropriations.--There are authorized
to be appropriated $50,000,000 for each of the fiscal years
2004 through 2014 to carry out this section.
(f) Report.--Not later than October 1, 2010, the Secretary
of Agriculture, in consultation with the Secretary of the
Interior, shall submit to the Committee on Energy and Natural
Resources and the Committee on Agriculture, Nutrition, and
Forestry of the Senate and the Committee on Resources, the
Committee on Energy and Commerce, and the Committee on
Agriculture of the House of Representatives a report
describing the results of the grant programs authorized by
this section. The report shall include the following:
(1) An identification of the size, type, and the use of
biomass by persons that receive grants under this section.
(2) The distance between the land from which the biomass
was removed and the facility that used the biomass.
(3) The economic impacts, particularly new job creation,
resulting from the grants to and operation of the eligible
operations.
SEC. 207. BIOBASED PRODUCTS.
Section 9002(c)(1) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8102(c)(1)) is amended by
inserting ``or such items that comply with the regulations
issued under section 103 of Public Law 100-556 (42 U.S.C.
6914b-1)'' after ``practicable''.
Subtitle B--Geothermal Energy
SEC. 211. SHORT TITLE.
This subtitle may be cited as the ``John Rishel Geothermal
Steam Act Amendments of 2003''.
SEC. 212. COMPETITIVE LEASE SALE REQUIREMENTS.
Section 4 of the Geothermal Steam Act of 1970 (30 U.S.C.
1003) is amended to read as follows:
``SEC. 4. LEASING PROCEDURES.
``(a) Nominations.--The Secretary shall accept nominations
of lands to be leased at any time from qualified companies
and individuals under this Act.
``(b) Competitive Lease Sale Required.--The Secretary shall
hold a competitive lease sale at least once every 2 years for
lands in a State which has nominations pending under
subsection (a) if such lands are otherwise available for
leasing.
``(c) Noncompetitive Leasing.--The Secretary shall make
available for a period of 2 years for noncompetitive leasing
any tract for which a competitive lease sale is held, but for
which the Secretary does not receive any bids in a
competitive lease sale.
``(d) Leases Sold As a Block.--If information is available
to the Secretary indicating a geothermal resource that could
be produced as 1 unit can reasonably be expected to underlie
more than 1 parcel to be offered in a competitive lease sale,
the parcels for such a resource may be offered for bidding as
a block in the competitive lease sale.
``(e) Pending Lease Applications on April 1, 2003.--It
shall be a priority for the Secretary of the Interior, and
for the Secretary of Agriculture with respect to National
Forest Systems lands, to ensure timely completion of
administrative actions necessary to process applications for
geothermal leasing pending on April 1, 2003. Such an
application, and any lease issued pursuant to such an
application--
``(1) except as provided in paragraph (2), shall be subject
to this section as in effect on April 1, 2003; or
``(2) at the election of the applicant, shall be subject to
this section as in effect on the effective date of this
paragraph.''.
SEC. 213. DIRECT USE.
(a) Fees for Direct Use.--Section 5 of the Geothermal Steam
Act of 1970 (30 U.S.C. 1004) is amended--
(1) in paragraph (c) by redesignating subparagraphs (1) and
(2) as subparagraphs (A) and (B);
(2) by redesignating paragraphs (a) through (d) in order as
paragraphs (1) through (4);
(3) by inserting ``(a) In General.--'' after ``Sec. 5.'';
and
(4) by adding at the end the following:
``(b) Direct Use.--Notwithstanding subsection (a)(1), with
respect to the direct use of geothermal resources for
purposes other than the commercial generation of electricity,
the Secretary of the Interior shall establish a schedule of
fees and collect fees pursuant to such a schedule in lieu of
royalties based upon the total amount of the geothermal
resources used. The schedule of fees shall ensure that there
is a fair return to the public for the use of a geothermal
resource based upon comparable fees charged for direct use of
geothermal resources by States or private persons. For direct
use by a State or local government for public purposes there
shall be no royalty and the fee charged shall be nominal.
Leases in existence on the date of enactment of the Energy
Policy Act of 2003 shall be modified in order to reflect the
provisions of this subsection.''.
(b) Leasing for Direct Use.--Section 4 of the Geothermal
Steam Act of 1970 (30 U.S.C. 1003) is further amended by
adding at the end the following:
``(f) Leasing for Direct Use of Geothermal Resources.--
Lands leased under this Act exclusively for direct use of
geothermal resources shall be leased to any qualified
applicant who first applies for such a lease under
regulations issued by the Secretary, if--
``(1) the Secretary publishes a notice of the lands
proposed for leasing 60 days before the date of the issuance
of the lease; and
``(2) the Secretary does not receive in the 60-day period
beginning on the date of such publication any nomination to
include the lands concerned in the next competitive lease
sale.
``(g) Area Subject to Lease for Direct Use.--A geothermal
lease for the direct use of geothermal resources shall
embrace not more than the amount of acreage determined by the
Secretary to be reasonably necessary for such proposed
utilization.''.
(c) Existing Leases With a Direct Use Facility.--
(1) Application to convert.--Any lessee under a lease under
the Geothermal Steam Act of 1970 that was issued before the
date of the enactment of this Act may apply to the Secretary
of the Interior, by not later than 18 months after the date
of the enactment of this Act, to convert such lease to a
lease for direct utilization of geothermal resources in
accordance with the amendments made by this section.
(2) Conversion.--The Secretary shall approve such an
application and convert such a lease to a lease in accordance
with the amendments by not later than 180 days after receipt
of such application, unless the Secretary determines that the
applicant is not a qualified applicant with respect to the
lease.
(3) Application of new lease terms.--The amendment made by
subsection (a)(4) shall apply with respect to payments under
a lease converted under this subsection that are due and
owing to the United States on or after July 16, 2003.
SEC. 214. ROYALTIES AND NEAR-TERM PRODUCTION INCENTIVES.
(a) Royalty.--Section 5 of the Geothermal Steam Act of 1970
(30 U.S.C. 1004) is further amended--
(1) in subsection (a) by striking paragraph (1) and
inserting the following:
``(1) a royalty on electricity produced using geothermal
steam and associated geothermal resources, other than direct
use of geothermal resources, that shall be--
``(A) not less than 1 percent and not more than 2.5 percent
of the gross proceeds from the sale of electricity produced
from such resources during the first 10 years of production
under the lease; and
``(B) not less than 2 and not more than 5 percent of the
gross proceeds from the sale of electricity produced from
such resources during each year after such 10-year period;'';
and
(2) by adding at the end the following:
``(c) Final Regulation Establishing Royalty Rates.--In
issuing any final regulation establishing royalty rates under
this section, the Secretary shall seek--
``(1) to provide lessees a simplified administrative
system;
``(2) to encourage new development; and
``(3) to achieve the same long-term level of royalty
revenues to States and counties as the regulation in effect
on the date of enactment of this subsection.
``(d) Credits for In-Kind Payments of Electricity.--The
Secretary may provide to a lessee a credit against royalties
owed under this Act, in an amount equal to the value of
electricity provided under contract to a State or county
government that is entitled to a portion of such royalties
under section 20 of this Act, section 35 of the Mineral
Leasing Act (30 U.S.C. 191), or section 6 of the Mineral
Leasing Act for Acquired Lands (30 U.S.C. 355), if--
``(1) the Secretary has approved in advance the contract
between the lessee and the State or county government for
such in-kind payments;
``(2) the contract establishes a specific methodology to
determine the value of such credits; and
``(3) the maximum credit will be equal to the royalty value
owed to the State or county that is a party to the contract
and the electricity received will serve as the royalty
payment from the Federal Government to that entity.''.
(b) Disposal of Moneys From Sales, Bonuses, Royalties, and
Rentals.--Section 20 of the Geothermal Steam Act of 1970 (30
U.S.C. 1019) is amended to read as follows:
``SEC. 20. DISPOSAL OF MONEYS FROM SALES, BONUSES, RENTALS,
AND ROYALTIES.
``(a) In General.--Except with respect to lands in the
State of Alaska, all monies received by the United States
from sales, bonuses, rentals, and royalties under this Act
shall be paid into the Treasury of the United States. Of
[[Page 29133]]
amounts deposited under this subsection, subject to the
provisions of section 35 of the Mineral Leasing Act (30
U.S.C. 191(b)) and section 5(a)(2) of this Act--
``(1) 50 percent shall be paid to the State within the
boundaries of which the leased lands or geothermal resources
are or were located; and
``(2) 25 percent shall be paid to the County within the
boundaries of which the leased lands or geothermal resources
are or were located.
``(b) Use of Payments.--Amounts paid to a State or county
under subsection (a) shall be used consistent with the terms
of section 35 of the Mineral Leasing Act (30 U.S.C. 191).''.
(c) Near-Term Production Incentive for Existing Leases.--
(1) In general.--Notwithstanding section 5(a) of the
Geothermal Steam Act of 1970, the royalty required to be paid
shall be 50 percent of the amount of the royalty otherwise
required, on any lease issued before the date of enactment of
this Act that does not convert to new royalty terms under
subsection (e)--
(A) with respect to commercial production of energy from a
facility that begins such production in the 6-year period
beginning on the date of the enactment of this Act; or
(B) on qualified expansion geothermal energy.
(2) 4-year application.--Paragraph (1) applies only to new
commercial production of energy from a facility in the first
4 years of such production.
(d) Definition of Qualified Expansion Geothermal Energy.--
In this section, the term ``qualified expansion geothermal
energy'' means geothermal energy produced from a generation
facility for which--
(1) the production is increased by more than 10 percent as
a result of expansion of the facility carried out in the 6-
year period beginning on the date of the enactment of this
Act; and
(2) such production increase is greater than 10 percent of
the average production by the facility during the 5-year
period preceding the expansion of the facility.
(e) Royalty Under Existing Leases.--
(1) In general.--Any lessee under a lease issued under the
Geothermal Steam Act of 1970 before the date of the enactment
of this Act may modify the terms of the lease relating to
payment of royalties to comply with the amendment made by
subsection (a), by applying to the Secretary of the Interior
by not later than 18 months after the date of the enactment
of this Act.
(2) Application of modification.--Such modification shall
apply to any use of geothermal steam and any associated
geothermal resources to which the amendment applies that
occurs after the date of that application.
(3) Consultation.--The Secretary--
(A) shall consult with the State and local governments
affected by any proposed changes in lease royalty terms under
this subsection; and
(B) may establish a gross proceeds percentage within the
range specified in the amendment made by subsection (a)(1)
and with the concurrence of the lessee and the State.
SEC. 215. GEOTHERMAL LEASING AND PERMITTING ON FEDERAL LANDS.
(a) In General.--Not later than 180 days after the date of
the enactment of this section, the Secretary of the Interior
and the Secretary of Agriculture shall enter into and submit
to Congress a memorandum of understanding in accordance with
this section regarding leasing and permitting for geothermal
development of public lands and National Forest System lands
under their respective jurisdictions.
(b) Lease and Permit Applications.--The memorandum of
understanding shall--
(1) identify areas with geothermal potential on lands
included in the National Forest System and, when necessary,
require review of management plans to consider leasing under
the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) as
a land use; and
(2) establish an administrative procedure for processing
geothermal lease applications, including lines of authority,
steps in application processing, and time limits for
application procession.
(c) Data Retrieval System.--The memorandum of understanding
shall establish a joint data retrieval system that is capable
of tracking lease and permit applications and providing to
the applicant information as to their status within the
Departments of the Interior and Agriculture, including an
estimate of the time required for administrative action.
SEC. 216. REVIEW AND REPORT TO CONGRESS.
The Secretary of the Interior shall promptly review and
report to Congress not later than 3 years after the date of
the enactment of this Act regarding the status of all
withdrawals from leasing under the Geothermal Steam Act of
1970 (30 U.S.C. 1001 et seq.) of Federal lands, specifying
for each such area whether the basis for such withdrawal
still applies.
SEC. 217. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES,
DOCUMENTATION, AND STUDIES.
(a) In General.--The Geothermal Steam Act of 1970 (30
U.S.C. 1001 et seq.) is amended by adding at the end the
following:
``SEC. 30. REIMBURSEMENT FOR COSTS OF CERTAIN ANALYSES,
DOCUMENTATION, AND STUDIES.
``(a) In General.--The Secretary of the Interior may
reimburse a person that is a lessee, operator, operating
rights owner, or applicant for any lease under this Act for
reasonable amounts paid by the person for preparation for the
Secretary by a contractor or other person selected by the
Secretary of any project-level analysis, documentation, or
related study required pursuant to the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to
the lease.
``(b) Conditions.--The Secretary may provide reimbursement
under subsection (a) only if--
``(1) adequate funding to enable the Secretary to timely
prepare the analysis, documentation, or related study is not
appropriated;
``(2) the person paid the costs voluntarily;
``(3) the person maintains records of its costs in
accordance with regulations issued by the Secretary;
``(4) the reimbursement is in the form of a reduction in
the Federal share of the royalty required to be paid for the
lease for which the analysis, documentation, or related study
is conducted, and is agreed to by the Secretary and the
person reimbursed prior to commencing the analysis,
documentation, or related study; and
``(5) the agreement required under paragraph (4) contains
provisions--
``(A) reducing royalties owed on lease production based on
market prices;
``(B) stipulating an automatic termination of the royalty
reduction upon recovery of documented costs; and
``(C) providing a process by which the lessee may seek
reimbursement for circumstances in which production from the
specified lease is not possible.''.
(b) Application.--The amendment made by this section shall
apply with respect to an analysis, documentation, or a
related study conducted on or after the date of enactment of
this Act for any lease entered into before, on, or after the
date of enactment of this Act.
(c) Deadline for Regulations.--The Secretary shall issue
regulations implementing the amendment made by this section
by not later than 1 year after the date of enactment of this
Act.
SEC. 218. ASSESSMENT OF GEOTHERMAL ENERGY POTENTIAL.
The Secretary of Interior, acting through the Director of
the United States Geological Survey and in cooperation with
the States, shall update the 1978 Assessment of Geothermal
Resources, and submit that updated assessment to Congress--
(1) not later than 3 years after the date of enactment of
this Act; and
(2) thereafter as the availability of data and developments
in technology warrant.
SEC. 219. COOPERATIVE OR UNIT PLANS.
Section 18 of the Geothermal Steam Act of 1970 (30 U.S.C.
1017) is amended to read as follows:
``SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS.
``(a) Adoption of Units by Lessees.--
``(1) In general.--For the purpose of more properly
conserving the natural resources of any geothermal reservoir,
field, or like area, or any part thereof (whether or not any
part of the geothermal field, or like area, is then subject
to any Unit Agreement (cooperative plan of development or
operation)), lessees thereof and their representatives may
unite with each other, or jointly or separately with others,
in collectively adopting and operating under a Unit Agreement
for such field, or like area, or any part thereof including
direct use resources, if determined and certified by the
Secretary to be necessary or advisable in the public
interest. A majority interest of owners of any single lease
shall have the authority to commit that lease to a Unit
Agreement. The Secretary of the Interior may also initiate
the formation of a Unit Agreement if in the public interest.
``(2) Modification of lease requirements by secretary.--The
Secretary may, in the discretion of the Secretary, and with
the consent of the holders of leases involved, establish,
alter, change, or revoke rates of operations (including
drilling, operations, production, and other requirements) of
such leases and make conditions with reference to such
leases, with the consent of the lessees, in connection with
the creation and operation of any such Unit Agreement as the
Secretary may deem necessary or proper to secure the proper
protection of the public interest. Leases with unlike lease
terms or royalty rates do not need to be modified to be in
the same unit.
``(b) Requirement of Plans Under New Leases.--The
Secretary--
``(1) may provide that geothermal leases issued under this
Act shall contain a provision requiring the lessee to operate
under such a reasonable Unit Agreement; and
``(2) may prescribe such an Agreement under which such
lessee shall operate, which shall adequately protect the
rights of all parties in interest, including the United
States.
``(c) Modification of Rate of Prospecting, Development, and
Production.--The Secretary may require that any Agreement
authorized by this section that applies to lands owned by the
United States contain a provision under which authority is
vested in the Secretary, or any person, committee, or State
or Federal officer or agency as may be designated in the
Agreement to alter or modify from time to time the rate of
prospecting and development and the quantity and rate of
production under such an Agreement.
``(d) Exclusion From Determination of Holding or Control.--
Any lands that are subject to any Agreement approved or
prescribed by the Secretary under this section shall not be
considered in determining holdings or control under any
provision of this Act.
``(e) Pooling of Certain Lands.--If separate tracts of
lands cannot be independently developed and operated to use
geothermal steam and associated geothermal resources pursuant
to any section of this Act--
[[Page 29134]]
``(1) such lands, or a portion thereof, may be pooled with
other lands, whether or not owned by the United States, for
purposes of development and operation under a Communitization
Agreement providing for an apportionment of production or
royalties among the separate tracts of land comprising the
production unit, if such pooling is determined by the
Secretary to be in the public interest; and
``(2) operation or production pursuant to such an Agreement
shall be treated as operation or production with respect to
each tract of land that is subject to the agreement.
``(f) Unit Agreement Review.--No more than 5 years after
approval of any cooperative or Unit Agreement and at least
every 5 years thereafter, the Secretary shall review each
such Agreement and, after notice and opportunity for comment,
eliminate from inclusion in such Agreement any lands that the
Secretary determines are not reasonably necessary for Unit
operations under the Agreement. Such elimination shall be
based on scientific evidence, and shall occur only if it is
determined by the Secretary to be for the purpose of
conserving and properly managing the geothermal resource. Any
land so eliminated shall be eligible for an extension under
subsection (g) of section 6 if it meets the requirements for
such an extension.
``(g) Drilling or Development Contracts.-- The Secretary
may, on such conditions as the Secretary may prescribe,
approve drilling or development contracts made by 1 or more
lessees of geothermal leases, with 1 or more persons,
associations, or corporations if, in the discretion of the
Secretary, the conservation of natural resources or the
public convenience or necessity may require or the interests
of the United States may be best served thereby. All leases
operated under such approved drilling or development
contracts, and interests thereunder, shall be excepted in
determining holdings or control under section 7.
``(h) Coordination With State Governments.--The Secretary
shall coordinate unitization and pooling activities with the
appropriate State agencies and shall ensure that State leases
included in any unitization or pooling arrangement are
treated equally with Federal leases.''.
SEC. 220. ROYALTY ON BYPRODUCTS.
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004) is further amended in subsection (a) by striking
paragraph (2) and inserting the following:
``(2) a royalty on any byproduct that is a mineral named in
the first section of the Mineral Leasing Act (30 U.S.C. 181),
and that is derived from production under the lease, at the
rate of the royalty that applies under that Act to production
of such mineral under a lease under that Act;''.
SEC. 221. REPEAL OF AUTHORITIES OF SECRETARY TO READJUST
TERMS, CONDITIONS, RENTALS, AND ROYALTIES.
Section 8 of the Geothermal Steam Act of 1970 (30 U.S.C.
1007) is amended by repealing subsection (b), and by
redesignating subsection (c) as subsection (b).
SEC. 222. CREDITING OF RENTAL TOWARD ROYALTY.
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004) is further amended--
(1) in subsection (a)(2) by inserting ``and'' after the
semicolon at the end;
(2) in subsection (a)(3) by striking ``; and'' and
inserting a period;
(3) by striking paragraph (4) of subsection (a); and
(4) by adding at the end the following:
``(e) Crediting of Rental Toward Royalty.--Any annual
rental under this section that is paid with respect to a
lease before the first day of the year for which the annual
rental is owed shall be credited to the amount of royalty
that is required to be paid under the lease for that year.''.
SEC. 223. LEASE DURATION AND WORK COMMITMENT REQUIREMENTS.
Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C.
1005) is amended--
(1) by striking so much as precedes subsection (c), and
striking subsections (e), (g), (h), (i), and (j);
(2) by redesignating subsections (c), (d), and (f) in order
as subsections (g), (h), and (i); and
(3) by inserting before subsection (g), as so redesignated,
the following:
``SEC. 6. LEASE TERM AND WORK COMMITMENT REQUIREMENTS.
``(a) In General.--
``(1) Primary term.--A geothermal lease shall be for a
primary term of 10 years.
``(2) Initial extension.--The Secretary shall extend the
primary term of a geothermal lease for 5 years if, for each
year after the fifth year of the lease--
``(A) the Secretary determined under subsection (c) that
the lessee satisfied the work commitment requirements that
applied to the lease for that year; or
``(B) the lessee paid in accordance with subsection (d) the
value of any work that was not completed in accordance with
those requirements.
``(3) Additional extension.--The Secretary shall extend the
primary term of a geothermal lease (after an initial
extension under paragraph (2)) for an additional 5 years if,
for each year of the initial extension under paragraph (2),
the Secretary determined under subsection (c) that the lessee
satisfied the work commitment requirements that applied to
the lease for that year.
``(b) Requirement to Satisfy Annual Work Commitment
Requirement.--
``(1) In general.--The lessee for a geothermal lease shall,
for each year after the fifth year of the lease, satisfy work
commitment requirements prescribed by the Secretary that
apply to the lease for that year.
``(2) Prescription of work commitment requirements.--The
Secretary shall issue regulations prescribing minimum
equivalent dollar value work commitment requirements for
geothermal leases, that--
``(A) require that a lessee, in each year after the fifth
year of the primary term of a geothermal lease, diligently
work to achieve commercial production or utilization of steam
under the lease;
``(B) require that in each year to which work commitment
requirements under the regulations apply, the lessee shall
significantly reduce the amount of work that remains to be
done to achieve such production or utilization;
``(C) describe specific work that must be completed by a
lessee by the end of each year to which the work commitment
requirements apply and factors, such as force majeure events,
that suspend or modify the work commitment obligation;
``(D) carry forward and apply to work commitment
requirements for a year, work completed in any year in the
preceding 3-year period that was in excess of the work
required to be performed in that preceding year;
``(E) establish transition rules for leases issued before
the date of the enactment of this subsection, including terms
under which a lease that is near the end of its term on the
date of enactment of this subsection may be extended for up
to 2 years--
``(i) to allow achievement of production under the lease;
or
``(ii) to allow the lease to be included in a producing
unit; and
``(F) establish an annual payment that, at the option of
the lessee, may be exercised in lieu of meeting any work
requirement for a limited number of years that the Secretary
determines will not impair achieving diligent development of
the geothermal resource.
``(3) Termination of application of requirements.--Work
commitment requirements prescribed under this subsection
shall not apply to a geothermal lease after the date on which
geothermal steam is produced or utilized under the lease in
commercial quantities.
``(c) Determination of Whether Requirements Satisfied.--The
Secretary shall, by not later than 90 days after the end of
each year for which work commitment requirements under
subsection (b) apply to a geothermal lease--
``(1) determine whether the lessee has satisfied the
requirements that apply for that year;
``(2) notify the lessee of that determination; and
``(3) in the case of a notification that the lessee did not
satisfy work commitment requirements for the year, include in
the notification--
``(A) a description of the specific work that was not
completed by the lessee in accordance with the requirements;
and
``(B) the amount of the dollar value of such work that was
not completed, reduced by the amount of expenditures made for
work completed in a prior year that is carried forward
pursuant to subsection (b)(2)(D).
``(d) Payment of Value of Uncompleted Work.--
``(1) In general.--If the Secretary notifies a lessee that
the lessee failed to satisfy work commitment requirements
under subsection (b), the lessee shall pay to the Secretary,
by not later than the end of the 60-day period beginning on
the date of the notification, the dollar value of work that
was not completed by the lessee, in the amount stated in the
notification (as reduced under subsection (c)(3)(B)).
``(2) Failure to pay value of uncompleted work.--If a
lessee fails to pay such amount to the Secretary before the
end of that period, the lease shall terminate upon the
expiration of the period.
``(e) Continuation After Commercial Production or
Utilization.--If geothermal steam is produced or utilized in
commercial quantities within the primary term of the lease
under subsection (a) (including any extension of the lease
under subsection (a)), such lease shall continue until the
date on which geothermal steam is no longer produced or
utilized in commercial quantities.
``(f) Conversion of Geothermal Lease to Mineral Lease.--The
lessee under a lease that has produced geothermal steam for
electrical generation, has been determined by the Secretary
to be incapable of any further commercial production or
utilization of geothermal steam, and that is producing any
valuable byproduct in payable quantities may, within 6 months
after such determination--
``(1) convert the lease to a mineral lease under the
Mineral Leasing Act (30 U.S.C. 181 et seq.) or under the
Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et
seq.), if the lands that are subject to the lease can be
leased under that Act for the production of such byproduct;
or
``(2) convert the lease to a mining claim under the general
mining laws, if the byproduct is a locatable mineral.''.
SEC. 224. ADVANCED ROYALTIES REQUIRED FOR SUSPENSION OF
PRODUCTION.
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004) is further amended by adding at the end the following:
``(f) Advanced Royalties Required for Suspension of
Production.--
``(1) Continuation of lease following cessation of
production.--If, at any time after commercial production
under a lease is achieved, production ceases for any cause
the lease shall remain in full force and effect--
[[Page 29135]]
``(A) during the 1-year period beginning on the date
production ceases; and
``(B) after such period if, and so long as, the lessee
commences and continues diligently and in good faith until
such production is resumed the steps, operations, or
procedures necessary to cause a resumption of such
production.
``(2) If production of heat or energy under a geothermal
lease is suspended after the date of any such production for
which royalty is required under subsection (a) and the terms
of paragraph (1) are not met, the Secretary shall require the
lessee, until the end of such suspension, to pay royalty in
advance at the monthly pro-rata rate of the average annual
rate at which such royalty was paid each year in the 5-year-
period preceding the date of suspension.
``(3) Paragraph (2) shall not apply if the suspension is
required or otherwise caused by the Secretary, the Secretary
of a military department, a State or local government, or a
force majeure.''.
SEC. 225. ANNUAL RENTAL.
(a) Annual Rental Rate.--Section 5 of the Geothermal Steam
Act of 1970 (30 U.S.C. 1004) is further amended in subsection
(a) in paragraph (3) by striking ``$1 per acre or fraction
thereof for each year of the lease'' and all that follows
through the end of the paragraph and inserting ``$1 per acre
or fraction thereof for each year of the lease through the
tenth year in the case of a lease awarded in a noncompetitive
lease sale; or $2 per acre or fraction thereof for the first
year, $3 per acre or fraction thereof for each of the second
through tenth years, in the case of a lease awarded in a
competitive lease sale; and $5 per acre or fraction thereof
for each year after the 10th year thereof for all leases.''.
(b) Termination of Lease for Failure to Pay Rental.--
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004) is further amended by adding at the end the following:
``(g) Termination of Lease for Failure to Pay Rental.---
``(1) In general.--The Secretary shall terminate any lease
with respect to which rental is not paid in accordance with
this Act and the terms of the lease under which the rental is
required, upon the expiration of the 45-day period beginning
on the date of the failure to pay such rental.
``(2) Notification.--The Secretary shall promptly notify a
lessee that has not paid rental required under the lease that
the lease will be terminated at the end of the period
referred to in paragraph (1).
``(3) Reinstatement.--A lease that would otherwise
terminate under paragraph (1) shall not terminate under that
paragraph if the lessee pays to the Secretary, before the end
of the period referred to in paragraph (1), the amount of
rental due plus a late fee equal to 10 percent of such
amount.''.
SEC. 226. LEASING AND PERMITTING ON FEDERAL LANDS WITHDRAWN
FOR MILITARY PURPOSES.
Not later than 2 years after the date of enactment of this
Act, the Secretary of the Interior and the Secretary of
Defense, in consultation with each military service and with
interested States, counties, representatives of the
geothermal industry, and other persons, shall submit to
Congress a joint report concerning leasing and permitting
activities for geothermal energy on Federal lands withdrawn
for military purposes. Such report shall include the
following:
(1) A description of the Military Geothermal Program,
including any differences between it and the non-Military
Geothermal Program, including required security procedures,
and operational considerations, and discussions as to the
differences, and why they are important. Further, the report
shall describe revenues or energy provided to the Department
of Defense and its facilities, royalty structures, where
applicable, and any revenue sharing with States and counties
or other benefits between--
(A) the implementation of the Geothermal Steam Act of 1970
(30 U.S.C 1001 et seq.) and other applicable Federal law by
the Secretary of the Interior; and
(B) the administration of geothermal leasing under section
2689 of title 10, United States Code, by the Secretary of
Defense.
(2) If appropriate, a description of the current methods
and procedures used to ensure interagency coordination, where
needed, in developing renewable energy sources on Federal
lands withdrawn for military purposes, and an identification
of any new procedures that might be required in the future
for the improvement of interagency coordination to ensure
efficient processing and administration of leases or
contracts for geothermal energy on Federal lands withdrawn
for military purposes, consistent with the defense purposes
of such withdrawals.
(3) Recommendations for any legislative or administrative
actions that might better achieve increased geothermal
production, including a common royalty structure, leasing
procedures, or other changes that increase production, offset
military operation costs, or enhance the Federal agencies'
ability to develop geothermal resources.
Except as provided in this section, nothing in this subtitle
shall affect the legal status of the Department of the
Interior and the Department of the Defense with respect to
each other regarding geothermal leasing and development until
such status is changed by law.
SEC. 227. TECHNICAL AMENDMENTS.
The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.)
is further amended as follows:
(1) By striking ``geothermal steam and associated
geothermal resources'' each place it appears and inserting
``geothermal resources''.
(2) Section 2(e) (30 U.S.C. 1001(e)) is amended to read as
follows:
``(e) `direct use' means utilization of geothermal
resources for commercial, residential, agricultural, public
facilities, or other energy needs other than the commercial
production of electricity; and''.
(3) Section 21 (30 U.S.C. 1020) is amended by striking
``(a) Within one hundred'' and all that follows through ``(b)
Geothermal'' and inserting ``Geothermal''.
(4) The first section (30 U.S.C. 1001 note) is amended by
striking ``That this'' and inserting the following:
``SECTION 1. SHORT TITLE.
``This''.
(5) Section 2 (30 U.S.C. 1001) is amended by striking
``Sec. 2. As'' and inserting the following:
``SEC. 2. DEFINITIONS.
``As''.
(6) Section 3 (30 U.S.C. 1002) is amended by striking
``Sec. 3. Subject'' and inserting the following:
``SEC. 3 . LANDS SUBJECT TO GEOTHERMAL LEASING.
``Subject''.
(7) Section 5 (30 U.S.C. 1004) is further amended by
striking ``Sec. 5.'', and by inserting immediately before and
above subsection (a) the following:
``SEC. 5. RENTS AND ROYALTIES.''.
(8) Section 7 (30 U.S.C. 1006) is amended by striking
``Sec. 7. A geothermal'' and inserting the following:
``SEC. 7. ACREAGE OF GEOTHERMAL LEASE.
``A geothermal''.
(9) Section 8 (30 U.S.C. 1007) is amended by striking
``Sec. 8. (a) The'' and inserting the following:
``SEC. 8. READJUSTMENT OF LEASE TERMS AND CONDITIONS.
``(a) The''.
(10) Section 9 (30 U.S.C. 1008) is amended by striking
``Sec. 9. If'' and inserting the following:
``SEC. 9. BYPRODUCTS.
``If''.
(11) Section 10 (30 U.S.C. 1009) is amended by striking
``Sec. 10. The'' and inserting the following:
``SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS.
``The''.
(12) Section 11 (30 U.S.C. 1010) is amended by striking
``Sec. 11. The'' and inserting the following:
``SEC. 11. SUSPENSION OF OPERATIONS AND PRODUCTION.
``The''.
(13) Section 12 (30 U.S.C. 1011) is amended by striking
``Sec. 12. Leases'' and inserting the following:
``SEC. 12. TERMINATION OF LEASES.
``Leases''.
(14) Section 13 (30 U.S.C. 1012) is amended by striking
``Sec. 13. The'' and inserting the following:
``SEC. 13. WAIVER, SUSPENSION, OR REDUCTION OF RENTAL OR
ROYALTY.
``The''.
(15) Section 14 (30 U.S.C. 1013) is amended by striking
``Sec. 14. Subject'' and inserting the following:
``SEC. 14. SURFACE LAND USE.
``Subject''.
(16) Section 15 (30 U.S.C. 1014) is amended by striking
``Sec. 15. (a) Geothermal'' and inserting the following:
``SEC. 15. LANDS SUBJECT TO GEOTHERMAL LEASING.
``(a) Geothermal''.
(17) Section 16 (30 U.S.C. 1015) is amended by striking
``Sec. 16. Leases'' and inserting the following:
``SEC. 16. REQUIREMENT FOR LESSEES.
``Leases''.
(18) Section 17 (30 U.S.C. 1016) is amended by striking
``Sec. 17. Administration'' and inserting the following:
``SEC. 17. ADMINISTRATION.
``Administration''.
(19) Section 19 (30 U.S.C. 1018) is amended by striking
``Sec. 19. Upon'' and inserting the following:
``SEC. 19. DATA FROM FEDERAL AGENCIES.
``Upon''.
(20) Section 21 (30 U.S.C. 1020) is further amended by
striking ``Sec. 21.'', and by inserting immediately before
and above the remainder of that section the following:
``SEC. 21. PUBLICATION IN FEDERAL REGISTER; RESERVATION OF
MINERAL RIGHTS.''.
(21) Section 22 (30 U.S.C. 1021) is amended by striking
``Sec. 22. Nothing'' and inserting the following:
``SEC. 22. FEDERAL EXEMPTION FROM STATE WATER LAWS.
``Nothing''.
(22) Section 23 (30 U.S.C. 1022) is amended by striking
``Sec. 23. (a) All'' and inserting the following:
``SEC. 23. PREVENTION OF WASTE; EXCLUSIVITY.
``(a) All''.
(23) Section 24 (30 U.S.C. 1023) is amended by striking
``Sec. 24. The'' and inserting the following:
``SEC. 24. RULES AND REGULATIONS.
``The''.
(24) Section 25 (30 U.S.C. 1024) is amended by striking
``Sec. 25. As'' and inserting the following:
``SEC. 25. INCLUSION OF GEOTHERMAL LEASING UNDER CERTAIN
OTHER LAWS.
``As''.
[[Page 29136]]
(25) Section 26 is amended by striking ``Sec. 26. The'' and
inserting the following:
``SEC. 26. AMENDMENT.
``The''.
(26) Section 27 (30 U.S.C. 1025) is amended by striking
``Sec. 27. The'' and inserting the following:
``SEC. 27. FEDERAL RESERVATION OF CERTAIN MINERAL RIGHTS.
``The''.
(27) Section 28 (30 U.S.C. 1026) is amended by striking
``Sec. 28. (a)(1) The'' and inserting the following:
``SEC. 28. SIGNIFICANT THERMAL FEATURES.
``(a)(1) The''.
(28) Section 29 (30 U.S.C. 1027) is amended by striking
``Sec. 29. The'' and inserting the following:
``SEC. 29. LAND SUBJECT TO PROHIBITION ON LEASING.
``The''.
Subtitle C--Hydroelectric
PART I--ALTERNATIVE CONDITIONS
SEC. 231. ALTERNATIVE CONDITIONS AND FISHWAYS.
(a) Federal Reservations.--Section 4(e) of the Federal
Power Act (16 U.S.C. 797(e)) is amended by inserting after
``adequate protection and utilization of such reservation.''
at the end of the first proviso the following: ``The license
applicant shall be entitled to a determination on the record,
after opportunity for an expedited agency trial-type hearing
of any disputed issues of material fact, with respect to such
conditions. Such hearing may be conducted in accordance with
procedures established by agency regulation in consultation
with the Federal Energy Regulatory Commission.''.
(b) Fishways.--Section 18 of the Federal Power Act (16
U.S.C. 811) is amended by inserting after ``and such fishways
as may be prescribed by the Secretary of Commerce.'' the
following: ``The license applicant shall be entitled to a
determination on the record, after opportunity for an
expedited agency trial-type hearing of any disputed issues of
material fact, with respect to such fishways. Such hearing
may be conducted in accordance with procedures established by
agency regulation in consultation with the Federal Energy
Regulatory Commission.''.
(c) Alternative Conditions and Prescriptions.--Part I of
the Federal Power Act (16 U.S.C. 791a et seq.) is amended by
adding the following new section at the end thereof:
``SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.
``(a) Alternative Conditions.--(1) Whenever any person
applies for a license for any project works within any
reservation of the United States, and the Secretary of the
department under whose supervision such reservation falls
(referred to in this subsection as `the Secretary') deems a
condition to such license to be necessary under the first
proviso of section 4(e), the license applicant may propose an
alternative condition.
``(2) Notwithstanding the first proviso of section 4(e),
the Secretary shall accept the proposed alternative condition
referred to in paragraph (1), and the Commission shall
include in the license such alternative condition, if the
Secretary determines, based on substantial evidence provided
by the license applicant or otherwise available to the
Secretary, that such alternative condition--
``(A) provides for the adequate protection and utilization
of the reservation; and
``(B) will either--
``(i) cost less to implement; or
``(ii) result in improved operation of the project works
for electricity production,
as compared to the condition initially deemed necessary by
the Secretary.
``(3) The Secretary shall submit into the public record of
the Commission proceeding with any condition under section
4(e) or alternative condition it accepts under this section,
a written statement explaining the basis for such condition,
and reason for not accepting any alternative condition under
this section. The written statement must demonstrate that the
Secretary gave equal consideration to the effects of the
condition adopted and alternatives not accepted on energy
supply, distribution, cost, and use; flood control;
navigation; water supply; and air quality (in addition to the
preservation of other aspects of environmental quality);
based on such information as may be available to the
Secretary, including information voluntarily provided in a
timely manner by the applicant and others. The Secretary
shall also submit, together with the aforementioned written
statement, all studies, data, and other factual information
available to the Secretary and relevant to the Secretary's
decision.
``(4) Nothing in this section shall prohibit other
interested parties from proposing alternative conditions.
``(5) If the Secretary does not accept an applicant's
alternative condition under this section, and the Commission
finds that the Secretary's condition would be inconsistent
with the purposes of this part, or other applicable law, the
Commission may refer the dispute to the Commission's Dispute
Resolution Service. The Dispute Resolution Service shall
consult with the Secretary and the Commission and issue a
non-binding advisory within 90 days. The Secretary may accept
the Dispute Resolution Service advisory unless the Secretary
finds that the recommendation will not provide for the
adequate protection and utilization of the reservation. The
Secretary shall submit the advisory and the Secretary's final
written determination into the record of the Commission's
proceeding.
``(b) Alternative Prescriptions.--(1) Whenever the
Secretary of the Interior or the Secretary of Commerce
prescribes a fishway under section 18, the license applicant
or licensee may propose an alternative to such prescription
to construct, maintain, or operate a fishway.
``(2) Notwithstanding section 18, the Secretary of the
Interior or the Secretary of Commerce, as appropriate, shall
accept and prescribe, and the Commission shall require, the
proposed alternative referred to in paragraph (1), if the
Secretary of the appropriate department determines, based on
substantial evidence provided by the licensee or otherwise
available to the Secretary, that such alternative--
``(A) will be no less protective than the fishway initially
prescribed by the Secretary; and
``(B) will either--
``(i) cost less to implement; or
``(ii) result in improved operation of the project works
for electricity production,
as compared to the fishway initially deemed necessary by the
Secretary.
``(3) The Secretary concerned shall submit into the public
record of the Commission proceeding with any prescription
under section 18 or alternative prescription it accepts under
this section, a written statement explaining the basis for
such prescription, and reason for not accepting any
alternative prescription under this section. The written
statement must demonstrate that the Secretary gave equal
consideration to the effects of the condition adopted and
alternatives not accepted on energy supply, distribution,
cost, and use; flood control; navigation; water supply; and
air quality (in addition to the preservation of other aspects
of environmental quality); based on such information as may
be available to the Secretary, including information
voluntarily provided in a timely manner by the applicant and
others. The Secretary shall also submit, together with the
aforementioned written statement, all studies, data, and
other factual information available to the Secretary and
relevant to the Secretary's decision.
``(4) Nothing in this section shall prohibit other
interested parties from proposing alternative prescriptions.
``(5) If the Secretary concerned does not accept an
applicant's alternative prescription under this section, and
the Commission finds that the Secretary's prescription would
be inconsistent with the purposes of this part, or other
applicable law, the Commission may refer the dispute to the
Commission's Dispute Resolution Service. The Dispute
Resolution Service shall consult with the Secretary and the
Commission and issue a non-binding advisory within 90 days.
The Secretary may accept the Dispute Resolution Service
advisory unless the Secretary finds that the recommendation
will be less protective than the fishway initially prescribed
by the Secretary. The Secretary shall submit the advisory and
the Secretary's final written determination into the record
of the Commission's proceeding.''.
PART II--ADDITIONAL HYDROPOWER
SEC. 241. HYDROELECTRIC PRODUCTION INCENTIVES.
(a) Incentive Payments.--For electric energy generated and
sold by a qualified hydroelectric facility during the
incentive period, the Secretary of Energy (referred to in
this section as the ``Secretary'') shall make, subject to the
availability of appropriations, incentive payments to the
owner or operator of such facility. The amount of such
payment made to any such owner or operator shall be as
determined under subsection (e) of this section. Payments
under this section may only be made upon receipt by the
Secretary of an incentive payment application which
establishes that the applicant is eligible to receive such
payment and which satisfies such other requirements as the
Secretary deems necessary. Such application shall be in such
form, and shall be submitted at such time, as the Secretary
shall establish.
(b) Definitions.--For purposes of this section:
(1) Qualified hydroelectric facility.--The term ``qualified
hydroelectric facility'' means a turbine or other generating
device owned or solely operated by a non-Federal entity which
generates hydroelectric energy for sale and which is added to
an existing dam or conduit.
(2) Existing dam or conduit.--The term ``existing dam or
conduit'' means any dam or conduit the construction of which
was completed before the date of the enactment of this
section and which does not require any construction or
enlargement of impoundment or diversion structures (other
than repair or reconstruction) in connection with the
installation of a turbine or other generating device.
(3) Conduit.--The term ``conduit'' has the same meaning as
when used in section 30(a)(2) of the Federal Power Act (16
U.S.C. 823a(a)(2)).
The terms defined in this subsection shall apply without
regard to the hydroelectric kilowatt capacity of the facility
concerned, without regard to whether the facility uses a dam
owned by a governmental or nongovernmental entity, and
without regard to whether the facility begins operation on or
after the date of the enactment of this section.
(c) Eligibility Window.--Payments may be made under this
section only for electric energy generated from a qualified
hydroelectric facility which begins operation during the
period of 10 fiscal years beginning with the first full
fiscal year occurring after the date of enactment of this
subtitle.
(d) Incentive Period.--A qualified hydroelectric facility
may receive payments under this section for a period of 10
fiscal years (referred to in this section as the ``incentive
period''). Such
[[Page 29137]]
period shall begin with the fiscal year in which electric
energy generated from the facility is first eligible for such
payments.
(e) Amount of Payment.--
(1) In general.--Payments made by the Secretary under this
section to the owner or operator of a qualified hydroelectric
facility shall be based on the number of kilowatt hours of
hydroelectric energy generated by the facility during the
incentive period. For any such facility, the amount of such
payment shall be 1.8 cents per kilowatt hour (adjusted as
provided in paragraph (2)), subject to the availability of
appropriations under subsection (g), except that no facility
may receive more than $750,000 in 1 calendar year.
(2) Adjustments.--The amount of the payment made to any
person under this section as provided in paragraph (1) shall
be adjusted for inflation for each fiscal year beginning
after calendar year 2003 in the same manner as provided in
the provisions of section 29(d)(2)(B) of the Internal Revenue
Code of 1986, except that in applying such provisions the
calendar year 2003 shall be substituted for calendar year
1979.
(f) Sunset.--No payment may be made under this section to
any qualified hydroelectric facility after the expiration of
the period of 20 fiscal years beginning with the first full
fiscal year occurring after the date of enactment of this
subtitle, and no payment may be made under this section to
any such facility after a payment has been made with respect
to such facility for a period of 10 fiscal years.
(g) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out the purposes
of this section $10,000,000 for each of the fiscal years 2004
through 2013.
SEC. 242. HYDROELECTRIC EFFICIENCY IMPROVEMENT.
(a) Incentive Payments.--The Secretary of Energy shall make
incentive payments to the owners or operators of
hydroelectric facilities at existing dams to be used to make
capital improvements in the facilities that are directly
related to improving the efficiency of such facilities by at
least 3 percent.
(b) Limitations.--Incentive payments under this section
shall not exceed 10 percent of the costs of the capital
improvement concerned and not more than 1 payment may be made
with respect to improvements at a single facility. No payment
in excess of $750,000 may be made with respect to
improvements at a single facility.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section not more than
$10,000,000 for each of the fiscal years 2004 through 2013.
SEC. 243. SMALL HYDROELECTRIC POWER PROJECTS.
Section 408(a)(6) of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2708(a)(6)) is amended by striking
``April 20, 1977'' and inserting ``March 4, 2003''.
SEC. 244. INCREASED HYDROELECTRIC GENERATION AT EXISTING
FEDERAL FACILITIES.
(a) In General.--The Secretary of the Interior and the
Secretary of Energy, in consultation with the Secretary of
the Army, shall jointly conduct a study of the potential for
increasing electric power production capability at federally
owned or operated water regulation, storage, and conveyance
facilities.
(b) Content.--The study under this section shall include
identification and description in detail of each facility
that is capable, with or without modification, of producing
additional hydroelectric power, including estimation of the
existing potential for the facility to generate hydroelectric
power.
(c) Report.--The Secretaries shall submit to the Committees
on Energy and Commerce, Resources, and Transportation and
Infrastructure of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate a
report on the findings, conclusions, and recommendations of
the study under this section by not later than 18 months
after the date of the enactment of this Act. The report shall
include each of the following:
(1) The identifications, descriptions, and estimations
referred to in subsection (b).
(2) A description of activities currently conducted or
considered, or that could be considered, to produce
additional hydroelectric power from each identified facility.
(3) A summary of prior actions taken by the Secretaries to
produce additional hydroelectric power from each identified
facility.
(4) The costs to install, upgrade, or modify equipment or
take other actions to produce additional hydroelectric power
from each identified facility and the level of Federal power
customer involvement in the determination of such costs.
(5) The benefits that would be achieved by such
installation, upgrade, modification, or other action,
including quantified estimates of any additional energy or
capacity from each facility identified under subsection (b).
(6) A description of actions that are planned, underway, or
might reasonably be considered to increase hydroelectric
power production by replacing turbine runners, by performing
generator upgrades or rewinds, or construction of pumped
storage facilities.
(7) The impact of increased hydroelectric power production
on irrigation, fish, wildlife, Indian tribes, river health,
water quality, navigation, recreation, fishing, and flood
control.
(8) Any additional recommendations to increase
hydroelectric power production from, and reduce costs and
improve efficiency at, federally owned or operated water
regulation, storage, and conveyance facilities.
SEC. 245. SHIFT OF PROJECT LOADS TO OFF-PEAK PERIODS.
(a) In General.--The Secretary of the Interior shall--
(1) review electric power consumption by Bureau of
Reclamation facilities for water pumping purposes; and
(2) make such adjustments in such pumping as possible to
minimize the amount of electric power consumed for such
pumping during periods of peak electric power consumption,
including by performing as much of such pumping as possible
during off-peak hours at night.
(b) Consent of Affected Irrigation Customers Required.--The
Secretary may not under this section make any adjustment in
pumping at a facility without the consent of each person that
has contracted with the United States for delivery of water
from the facility for use for irrigation and that would be
affected by such adjustment.
(c) Existing Obligations Not Affected.--This section shall
not be construed to affect any existing obligation of the
Secretary to provide electric power, water, or other benefits
from Bureau of Reclamation facilities, including recreational
releases.
SEC. 246. CORPS OF ENGINEERS HYDROPOWER OPERATION AND
MAINTENANCE FUNDING.
(a) In General.--Notwithstanding the last sentence of
section 5 of the Act of December 22, 1944 (commonly known as
the ``Flood Control Act of 1944'') (58 Stat. 890, chapter
665; 16 U.S.C. 825s), the 11th paragraph under the heading
``office of the secretary'' in title I of the Act of October
12, 1949 (63 Stat. 767, chapter 680; 16 U.S.C. 825s-1), the
matter under the heading ``continuing fund, southeastern
power administration'' in title I of the Act of August 31,
1951 (65 Stat. 249, chapter 375; 16 U.S.C. 825s-2), section
3302 of title 31, United States Code, or any other law, and
without further appropriation or fiscal year limitation, for
fiscal year 2004, the Administrator of the Southeastern Power
Administration, the Administrator of the Southwestern Power
Administration, and the Administrator of the Western Area
Power Administration may credit to the Secretary of the Army
(referred to in this section as the ``Secretary''), receipts,
in an amount determined under subsection (c), from the sale
of power and related services.
(b) Use of Funds.--
(1) In general.--The Secretary--
(A) shall, except as provided in paragraph (2), use the
amounts credited under subsection (a) to fund only the Corps
of Engineers annual operation and maintenance activities that
are allocated exclusively to the power function and assigned
to the respective power marketing administration and
respective project system as applicable for repayment; and
(B) shall not use the amounts for any costs allocated to
non-power functions of Corps of Engineer operations.
(2) Exception.--The Secretary may use amounts credited by
the Southwestern Power Administration under subsection (a)
for capital and nonrecurring costs.
(c) Amount.--The amount of the receipts credited under
subsection (a) shall be equal to such amount as--
(1) the Secretary of the Army requests; and
(2) the appropriate Administrator, in consultation with the
power customers of the Administrator's power marketing
administration, determines to be appropriate to apply to the
costs referred to in subsection (b).
(d) Applicable Law.--The amounts credited under subsection
(a) are exempt from sequestration under the Balanced Budget
and Emergency Deficit Control Act of 1985 (2 U.S.C. 901 et
seq.).
SEC. 247. LIMITATION ON CERTAIN CHARGES ASSESSED TO THE FLINT
CREEK PROJECT, MONTANA.
Notwithstanding section 10(e)(1) of the Federal Power Act
(16 U.S.C. 803(e)(1)) or any other provision of Federal law
providing for the payment to the United States of charges for
the use of Federal land for the purposes of operating and
maintaining a hydroelectric development licensed by the
Federal Energy Regulatory Commission (referred to in this
section as the ``Commission''), any political subdivision of
the State of Montana that holds a license for Commission
Project No. 1473 in Granite and Deer Lodge Counties, Montana,
shall be required to pay to the United States for the use of
that land for each year during which the political
subdivision continues to hold the license for the project,
the lesser of--
(1) $25,000; or
(2) such annual charge as the Commission or any other
department or agency of the Federal Government may assess.
SEC. 248. REINSTATEMENT AND TRANSFER.
(a) Reinstatement and Transfer of Federal License for
Project Numbered 2696.--Notwithstanding section 8 of the
Federal Power Act (16 U.S.C. 801) or any other provision of
such Act, the Federal Energy Regulatory Commission shall
reinstate the license for Project No. 2696 and transfer the
license, without delay or the institution of any proceedings,
to the Town of Stuyvesant, New York, holder of Federal Energy
Regulatory Commission Preliminary Permit No. 11787, within 30
days after the date of enactment of this Act.
(b) Hydroelectric Incentives.--Project No. 2696 shall be
entitled to the full benefit of any Federal legislation that
promotes hydroelectric development that is enacted within 2
years either before or after the date of enactment of this
Act.
[[Page 29138]]
(c) Project Development and Financing.--The Federal Energy
Regulatory Commission shall permit the Town of Stuyvesant to
add as a colicensee any private or public entity or entities
to the reinstated license at any time, notwithstanding the
issuance of a preliminary permit to the Town of Stuyvesant
and any consideration of municipal preference. The town shall
be entitled, to the extent that funds are available or shall
be made available, to receive loans under sections 402 and
403 of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2702 and 2703), or similar programs, for the
reimbursement of feasibility studies or development costs, or
both, incurred since January 1, 2001, through and including
December 31, 2006. All power produced by the project shall be
deemed incremental hydropower for purpose of qualifying for
any energy credit or similar benefits.
TITLE III--OIL AND GAS
Subtitle A--Petroleum Reserve and Home Heating Oil
SEC. 301. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC
PETROLEUM RESERVE AND OTHER ENERGY PROGRAMS.
(a) Amendment to Title I of the Energy Policy and
Conservation Act.--Title I of the Energy Policy and
Conservation Act (42 U.S.C. 6211 et seq.) is amended--
(1) by striking section 166 (42 U.S.C. 6246) and inserting
the following:
``authorization of appropriations
``Sec. 166. There are authorized to be appropriated to the
Secretary such sums as may be necessary to carry out this
part and part D, to remain available until expended.'';
(2) by striking section 186 (42 U.S.C. 6250e); and
(3) by striking part E (42 U.S.C. 6251; relating to the
expiration of title I of the Act).
(b) Amendment to Title II of the Energy Policy and
Conservation Act.--Title II of the Energy Policy and
Conservation Act (42 U.S.C. 6271 et seq.) is amended--
(1) by inserting before section 273 (42 U.S.C. 6283) the
following:
``Part C--Summer Fill and Fuel Budgeting Programs'';
(2) by striking section 273(e) (42 U.S.C. 6283(e); relating
to the expiration of summer fill and fuel budgeting
programs); and
(3) by striking part D (42 U.S.C. 6285; relating to the
expiration of title II of the Act).
(c) Technical Amendments.--The table of contents for the
Energy Policy and Conservation Act is amended--
(1) by inserting after the items relating to part C of
title I the following:
``Part D--Northeast Home Heating Oil Reserve
``Sec. 181. Establishment.
``Sec. 182. Authority.
``Sec. 183. Conditions for release; plan.
``Sec. 184. Northeast Home Heating Oil Reserve Account.
``Sec. 185. Exemptions.'';
(2) by amending the items relating to part C of title II to
read as follows:
``Part C--Summer Fill and Fuel Budgeting Programs
``Sec. 273. Summer fill and fuel budgeting programs.'';
and
(3) by striking the items relating to part D of title II.
(d) Amendment to the Energy Policy and Conservation Act.--
Section 183(b)(1) of the Energy Policy and Conservation Act
(42 U.S.C. 6250(b)(1)) is amended by striking all after
``increases'' through to ``mid-October through March'' and
inserting ``by more than 60 percent over its 5-year rolling
average for the months of mid-October through March
(considered as a heating season average)''.
(e) Fill Strategic Petroleum Reserve to Capacity.--The
Secretary of Energy shall, as expeditiously as practicable,
acquire petroleum in amounts sufficient to fill the Strategic
Petroleum Reserve to the 1,000,000,000 barrel capacity
authorized under section 154(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6234(a)), consistent with the
provisions of sections 159 and 160 of such Act (42 U.S.C.
6239, 6240).
SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE.
Section 713 of the Energy Act of 2000 (42 U.S.C. 6201 note)
is amended by striking ``4'' and inserting ``9''.
Subtitle B--Production Incentives
SEC. 311. DEFINITION OF SECRETARY.
In this subtitle, the term ``Secretary'' means the
Secretary of the Interior.
SEC. 312. PROGRAM ON OIL AND GAS ROYALTIES IN-KIND.
(a) Applicability of Section.--Notwithstanding any other
provision of law, this section applies to all royalty in-kind
accepted by the Secretary on or after the date of enactment
of this Act under any Federal oil or gas lease or permit
under section 36 of the Mineral Leasing Act (30 U.S.C. 192),
section 27 of the Outer Continental Shelf Lands Act (43
U.S.C. 1353), or any other Federal law governing leasing of
Federal land for oil and gas development.
(b) Terms and Conditions.--All royalty accruing to the
United States shall, on the demand of the Secretary, be paid
in oil or gas. If the Secretary makes such a demand, the
following provisions apply to such payment:
(1) Satisfaction of royalty obligation.--Delivery by, or on
behalf of, the lessee of the royalty amount and quality due
under the lease satisfies the lessee's royalty obligation for
the amount delivered, except that transportation and
processing reimbursements paid to, or deductions claimed by,
the lessee shall be subject to review and audit.
(2) Marketable condition.--
(A) In general.--Royalty production shall be placed in
marketable condition by the lessee at no cost to the United
States.
(B) Definition of marketable condition.--In this paragraph,
the term ``in marketable condition'' means sufficiently free
from impurities and otherwise in a condition that the royalty
production will be accepted by a purchaser under a sales
contract typical of the field or area in which the royalty
production was produced.
(3) Disposition by the secretary.--The Secretary may--
(A) sell or otherwise dispose of any royalty production
taken in-kind (other than oil or gas transferred under
section 27(a)(3) of the Outer Continental Shelf Lands Act (43
U.S.C. 1353(a)(3)) for not less than the market price; and
(B) transport or process (or both) any royalty production
taken in-kind.
(4) Retention by the secretary.--The Secretary may,
notwithstanding section 3302 of title 31, United States Code,
retain and use a portion of the revenues from the sale of oil
and gas taken in-kind that otherwise would be deposited to
miscellaneous receipts, without regard to fiscal year
limitation, or may use oil or gas received as royalty taken
in-kind (in this paragraph referred to as ``royalty
production'') to pay the cost of--
(A) transporting the royalty production;
(B) processing the royalty production;
(C) disposing of the royalty production; or
(D) any combination of transporting, processing, and
disposing of the royalty production.
(5) Limitation.--
(A) In general.--Except as provided in subparagraph (B),
the Secretary may not use revenues from the sale of oil and
gas taken in-kind to pay for personnel, travel, or other
administrative costs of the Federal Government.
(B) Exception.--Notwithstanding subparagraph (A), the
Secretary may use a portion of the revenues from the sale of
oil taken in-kind, without fiscal year limitation, to pay
transportation costs, salaries, and other administrative
costs directly related to filling the Strategic Petroleum
Reserve.
(c) Reimbursement of Cost.--If the lessee, pursuant to an
agreement with the United States or as provided in the lease,
processes the royalty gas or delivers the royalty oil or gas
at a point not on or adjacent to the lease area, the
Secretary shall--
(1) reimburse the lessee for the reasonable costs of
transportation (not including gathering) from the lease to
the point of delivery or for processing costs; or
(2) allow the lessee to deduct the transportation or
processing costs in reporting and paying royalties in-value
for other Federal oil and gas leases.
(d) Benefit to the United States Required.--The Secretary
may receive oil or gas royalties in-kind only if the
Secretary determines that receiving royalties in-kind
provides benefits to the United States that are greater than
or equal to the benefits that are likely to have been
received had royalties been taken in-value.
(e) Reports.--
(1) In general.--Not later than September 30, 2005, the
Secretary shall submit to Congress a report that addresses--
(A) actions taken to develop businesses processes and
automated systems to fully support the royalty-in-kind
capability to be used in tandem with the royalty-in-value
approach in managing Federal oil and gas revenue; and
(B) future royalty-in-kind businesses operation plans and
objectives.
(2) Reports on oil or gas royalties taken in-kind.--For
each of fiscal years 2004 through 2013 in which the United
States takes oil or gas royalties in-kind from production in
any State or from the outer Continental Shelf, excluding
royalties taken in-kind and sold to refineries under
subsection (h), the Secretary shall submit to Congress a
report that describes--
(A) the methodology or methodologies used by the Secretary
to determine compliance with subsection (d), including the
performance standard for comparing amounts received by the
United States derived from royalties in-kind to amounts
likely to have been received had royalties been taken in-
value;
(B) an explanation of the evaluation that led the Secretary
to take royalties in-kind from a lease or group of leases,
including the expected revenue effect of taking royalties in-
kind;
(C) actual amounts received by the United States derived
from taking royalties in-kind and costs and savings incurred
by the United States associated with taking royalties in-
kind, including, but not limited to, administrative savings
and any new or increased administrative costs; and
(D) an evaluation of other relevant public benefits or
detriments associated with taking royalties in-kind.
(f) Deduction of Expenses.--
(1) In general.--Before making payments under section 35 of
the Mineral Leasing Act (30 U.S.C. 191) or section 8(g) of
the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)) of
revenues derived from the sale of royalty production taken
in-kind from a lease, the Secretary shall deduct amounts paid
or deducted under subsections (b)(4) and (c) and deposit the
amount of the deductions in the miscellaneous receipts of the
United States Treasury.
[[Page 29139]]
(2) Accounting for deductions.--When the Secretary allows
the lessee to deduct transportation or processing costs under
subsection (c), the Secretary may not reduce any payments to
recipients of revenues derived from any other Federal oil and
gas lease as a consequence of that deduction.
(g) Consultation with States.--The Secretary--
(1) shall consult with a State before conducting a royalty
in-kind program under this subtitle within the State, and may
delegate management of any portion of the Federal royalty in-
kind program to the State except as otherwise prohibited by
Federal law; and
(2) shall consult annually with any State from which
Federal oil or gas royalty is being taken in-kind to ensure,
to the maximum extent practicable, that the royalty in-kind
program provides revenues to the State greater than or equal
to those likely to have been received had royalties been
taken in-value.
(h) Small Refineries.--
(1) Preference.--If the Secretary finds that sufficient
supplies of crude oil are not available in the open market to
refineries that do not have their own source of supply for
crude oil, the Secretary may grant preference to such
refineries in the sale of any royalty oil accruing or
reserved to the United States under Federal oil and gas
leases issued under any mineral leasing law, for processing
or use in such refineries at private sale at not less than
the market price.
(2) Proration among refineries in production area.--In
disposing of oil under this subsection, the Secretary of
Energy may, at the discretion of the Secretary, prorate the
oil among refineries described in paragraph (1) in the area
in which the oil is produced.
(i) Disposition to Federal Agencies.--
(1) Onshore royalty.--Any royalty oil or gas taken by the
Secretary in-kind from onshore oil and gas leases may be sold
at not less than the market price to any Federal agency.
(2) Offshore royalty.--Any royalty oil or gas taken in-kind
from a Federal oil or gas lease on the outer Continental
Shelf may be disposed of only under section 27 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1353).
(j) Federal Low-income Energy Assistance Programs.--
(1) Preference.--In disposing of royalty oil or gas taken
in-kind under this section, the Secretary may grant a
preference to any person, including any Federal or State
agency, for the purpose of providing additional resources to
any Federal low-income energy assistance program.
(2) Report.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall transmit a report
to Congress, assessing the effectiveness of granting
preferences specified in paragraph (1) and providing a
specific recommendation on the continuation of authority to
grant preferences.
SEC. 313. MARGINAL PROPERTY PRODUCTION INCENTIVES.
(a) Definition of Marginal Property.--Until such time as
the Secretary issues regulations under subsection (e) that
prescribe a different definition, in this section the term
``marginal property'' means an onshore unit, communitization
agreement, or lease not within a unit or communitization
agreement, that produces on average the combined equivalent
of less than 15 barrels of oil per well per day or 90 million
British thermal units of gas per well per day calculated
based on the average over the 3 most recent production
months, including only wells that produce on more than half
of the days during those 3 production months.
(b) Conditions for Reduction of Royalty Rate.--Until such
time as the Secretary issues regulations under subsection (e)
that prescribe different thresholds or standards, the
Secretary shall reduce the royalty rate on--
(1) oil production from marginal properties as prescribed
in subsection (c) when the spot price of West Texas
Intermediate crude oil at Cushing, Oklahoma, is, on average,
less than $15 per barrel for 90 consecutive trading days; and
(2) gas production from marginal properties as prescribed
in subsection (c) when the spot price of natural gas
delivered at Henry Hub, Louisiana, is, on average, less than
$2.00 per million British thermal units for 90 consecutive
trading days.
(c) Reduced Royalty Rate.--
(1) In general.--When a marginal property meets the
conditions specified in subsection (b), the royalty rate
shall be the lesser of--
(A) 5 percent; or
(B) the applicable rate under any other statutory or
regulatory royalty relief provision that applies to the
affected production.
(2) Period of effectiveness.--The reduced royalty rate
under this subsection shall be effective beginning on the
first day of the production month following the date on which
the applicable condition specified in subsection (b) is met.
(d) Termination of Reduced Royalty Rate.--A royalty rate
prescribed in subsection (d)(1)(A) shall terminate--
(1) with respect to oil production from a marginal
property, on the first day of the production month following
the date on which--
(A) the spot price of West Texas Intermediate crude oil at
Cushing, Oklahoma, on average, exceeds $15 per barrel for 90
consecutive trading days; or
(B) the property no longer qualifies as a marginal
property; and
(2) with respect to gas production from a marginal
property, on the first day of the production month following
the date on which--
(A) the spot price of natural gas delivered at Henry Hub,
Louisiana, on average, exceeds $2.00 per million British
thermal units for 90 consecutive trading days; or
(B) the property no longer qualifies as a marginal
property.
(e) Regulations Prescribing Different Relief.--
(1) Discretionary regulations.--The Secretary may by
regulation prescribe different parameters, standards, and
requirements for, and a different degree or extent of,
royalty relief for marginal properties in lieu of those
prescribed in subsections (a) through (d).
(2) Mandatory regulations.--Not later than 18 months after
the date of enactment of this Act, the Secretary shall by
regulation--
(A) prescribe standards and requirements for, and the
extent of royalty relief for, marginal properties for oil and
gas leases on the outer Continental Shelf; and
(B) define what constitutes a marginal property on the
outer Continental Shelf for purposes of this section.
(3) Considerations.--In promulgating regulations under this
subsection, the Secretary may consider--
(A) oil and gas prices and market trends;
(B) production costs;
(C) abandonment costs;
(D) Federal and State tax provisions and the effects of
those provisions on production economics;
(E) other royalty relief programs;
(F) regional differences in average wellhead prices;
(G) national energy security issues; and
(H) other relevant matters.
(f) Savings Provision.--Nothing in this section prevents a
lessee from receiving royalty relief or a royalty reduction
pursuant to any other law (including a regulation) that
provides more relief than the amounts provided by this
section.
SEC. 314. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP
WELLS IN THE SHALLOW WATERS OF THE GULF OF
MEXICO.
(a) Royalty Incentive Regulations.--The Secretary shall
publish a final regulation to complete the rulemaking begun
by the Notice of Proposed Rulemaking entitled ``Relief or
Reduction in Royalty Rates--Deep Gas Provisions'', published
in the Federal Register on March 26, 2003 (Federal Register,
volume 68, number 58, 14868-14886).
(b) Royalty Incentive Regulations for Ultra Deep Gas
Wells.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, in addition to any other regulations
that may provide royalty incentives for natural gas produced
from deep wells on oil and gas leases issued pursuant to the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.),
the Secretary shall issue regulations, in accordance with the
regulations published pursuant to subsection (a), granting
royalty relief suspension volumes of not less than
35,000,000,000 cubic feet with respect to the production of
natural gas from ultra deep wells on leases issued before
January 1, 2001, in shallow waters less than 200 meters deep
located in the Gulf of Mexico wholly west of 87 degrees, 30
minutes West longitude. Regulations issued under this
subsection shall be retroactive to the date that the Notice
of Proposed Rulemaking is published in the Federal Register.
(2) Definition of ultra deep well.--In this subsection, the
term ``ultra deep well'' means a well drilled with a
perforated interval, the top of which is at least 20,000 feet
true vertical depth below the datum at mean sea level.
SEC. 315. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.
(a) In General.--For all tracts located in water depths of
greater than 400 meters in the Western and Central Planning
Area of the Gulf of Mexico, including the portion of the
Eastern Planning Area of the Gulf of Mexico encompassing
whole lease blocks lying west of 87 degrees, 30 minutes West
longitude, any oil or gas lease sale under the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.)
occurring within 5 years after the date of enactment of this
Act shall use the bidding system authorized in section
8(a)(1)(H) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(a)(1)(H)), except that the suspension of
royalties shall be set at a volume of not less than--
(1) 5,000,000 barrels of oil equivalent for each lease in
water depths of 400 to 800 meters;
(2) 9,000,000 barrels of oil equivalent for each lease in
water depths of 800 to 1,600 meters; and
(3) 12,000,000 barrels of oil equivalent for each lease in
water depths greater than 1,600 meters.
(b) Limitation.--The Secretary may place limitations on the
suspension of royalty relief granted based on market price.
SEC. 316. ALASKA OFFSHORE ROYALTY SUSPENSION.
Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1337(a)(3)(B)) is amended by inserting ``and in
the Planning Areas offshore Alaska'' after ``West
longitude''.
SEC. 317. OIL AND GAS LEASING IN THE NATIONAL PETROLEUM
RESERVE IN ALASKA.
(a) Transfer of Authority.--
(1) Redesignation.--The Naval Petroleum Reserves Production
Act of 1976 (42 U.S.C. 6501 et seq.) is amended by
redesignating section 107 (42 U.S.C. 6507) as section 108.
(2) Transfer.--The matter under the heading ``exploration
of national petroleum reserve in alaska'' under the heading
``ENERGY AND MINERALS'' of title I of Public Law 96-514 (42
U.S.C. 6508) is--
(A) transferred to the Naval Petroleum Reserves Production
Act of 1976 (42 U.S.C. 6501 et seq.);
[[Page 29140]]
(B) redesignated as section 107 of that Act; and
(C) moved so as to appear after section 106 of that Act (42
U.S.C. 6506).
(b) Competitive Leasing.--Section 107 of the Naval
Petroleum Reserves Production Act of 1976 (as amended by
subsection (a) of this section) is amended--
(1) by striking the heading and all that follows through
``Provided, That (1) activities'' and inserting the
following:
``SEC. 107. COMPETITIVE LEASING OF OIL AND GAS.
``(a) In General.--Notwithstanding any other provision of
law and pursuant to regulations issued by the Secretary, the
Secretary shall conduct an expeditious program of competitive
leasing of oil and gas in the National Petroleum Reserve in
Alaska (referred to in this section as the `Reserve').
``(b) Mitigation of Adverse Effects.--Activities'';
(2) by striking ``Alaska (the Reserve); (2) the'' and
inserting ``Alaska.
``(c) Land Use Planning; BLM Wilderness Study.--The'';
(3) by striking ``Reserve; (3) the'' and inserting
``Reserve.
``(d) First Lease Sale.--The'';
(4) by striking ``4332); (4) the'' and inserting ``4321 et
seq.).
``(e) Withdrawals.--The'';
(5) by striking ``herein; (5) bidding'' and inserting
``under this section.
``(f) Bidding Systems.--Bidding'';
(6) by striking ``629); (6) lease'' and inserting ``629).
``(g) Geological Structures.--Lease'';
(7) by striking ``structures; (7) the'' and inserting
``structures.
``(h) Size of Lease Tracts.--The'';
(8) by striking ``Secretary; (8)'' and all that follows
through ``Drilling, production,'' and inserting ``Secretary.
``(i) Terms.--
``(1) In general.--Each lease shall be--
``(A) issued for an initial period of not more than 10
years; and
``(B) renewed for successive 10-year terms if--
``(i) oil or gas is produced from the lease in paying
quantities;
``(ii) oil or gas is capable of being produced in paying
quantities; or
``(iii) drilling or reworking operations, as approved by
the Secretary, are conducted on the leased land.
``(2) Renewal of nonproducing leases.--The Secretary shall
renew for an additional 10-year term a lease that does not
meet the requirements of paragraph (1)(B) if the lessee
submits to the Secretary an application for renewal not later
than 60 days before the expiration of the primary lease and--
``(A) the lessee certifies, and the Secretary agrees, that
hydrocarbon resources were discovered on 1 or more wells
drilled on the leased land in such quantities that a prudent
operator would hold the lease for potential future
development;
``(B) the lessee--
``(i) pays the Secretary a renewal fee of $100 per acre of
leased land; and
``(ii) provides evidence, and the Secretary agrees that,
the lessee has diligently pursued exploration that warrants
continuation with the intent of continued exploration or
future development of the leased land; or
``(C) all or part of the lease--
``(i) is part of a unit agreement covering a lease
described in subparagraph (A) or (B); and
``(ii) has not been previously contracted out of the unit.
``(3) Applicability.--This subsection applies to a lease
that--
``(A) is entered into before, on, or after the date of
enactment of the Energy Policy Act of 2003; and
``(B) is effective on or after the date of enactment of
that Act.
``(j) Unit Agreements.--
``(1) In general.--For the purpose of conservation of the
natural resources of all or part of any oil or gas pool,
field, reservoir, or like area, lessees (including
representatives) of the pool, field, reservoir, or like area
may unite with each other, or jointly or separately with
others, in collectively adopting and operating under a unit
agreement for all or part of the pool, field, reservoir, or
like area (whether or not any other part of the oil or gas
pool, field, reservoir, or like area is already subject to
any cooperative or unit plan of development or operation), if
the Secretary determines the action to be necessary or
advisable in the public interest.
``(2) Participation by state of alaska.--The Secretary
shall ensure that the State of Alaska is provided the
opportunity for active participation concerning creation and
management of units formed or expanded under this subsection
that include acreage in which the State of Alaska has an
interest in the mineral estate.
``(3) Participation by regional corporations.--The
Secretary shall ensure that any Regional Corporation (as
defined in section 3 of the Alaska Native Claims Settlement
Act (43 U.S.C. 1602)) is provided the opportunity for active
participation concerning creation and management of units
that include acreage in which the Regional Corporation has an
interest in the mineral estate.
``(4) Production allocation methodology.--The Secretary may
use a production allocation methodology for each
participating area within a unit created for land in the
Reserve, State of Alaska land, or Regional Corporation land
shall, when appropriate, be based on the characteristics of
each specific oil or gas pool, field, reservoir, or like area
to take into account reservoir heterogeneity and a real
variation in reservoir producibility across diverse leasehold
interests.
``(5) Benefit of operations.--Drilling, production,'';
(9) by striking ``When separate'' and inserting the
following:
``(6) Pooling.--If separate'';
(10) by inserting ``(in consultation with the owners of the
other land)'' after ``determined by the Secretary of the
Interior'';
(11) by striking ``thereto; (10) to'' and all that follows
through ``the terms provided therein'' and inserting ``to the
agreement.
``(k) Exploration Incentives.--
``(1) In general.--
``(A) Waiver, suspension, or reduction.--To encourage the
greatest ultimate recovery of oil or gas or in the interest
of conservation, the Secretary may waive, suspend, or reduce
the rental fees or minimum royalty, or reduce the royalty on
an entire leasehold (including on any lease operated pursuant
to a unit agreement), if (after consultation with the State
of Alaska and the North Slope Borough of Alaska and the
concurrence of any Regional Corporation for leases that
include lands available for acquisition by the Regional
Corporation under the provisions of section 1431(o) of the
Alaska National Interest Lands Conservation Act (16 U.S.C.
3101 et seq.)) the Secretary determines that the waiver,
suspension, or reduction is in the public interest.
``(B) Applicability.--This paragraph applies to a lease
that--
``(i) is entered into before, on, or after the date of
enactment of the Energy Policy Act of 2003; and
``(ii) is effective on or after the date of enactment of
that Act.'';
(12) by striking ``The Secretary is authorized to'' and
inserting the following:
``(2) Suspension of operations and production.--The
Secretary may'';
(13) by striking ``In the event'' and inserting the
following:
``(3) Suspension of payments.--If'';
(14) by striking ``thereto; and (11) all'' and inserting
``to the lease.
``(l) Receipts.--All'';
(15) by redesignating clauses (A), (B), and (C) as clauses
(1), (2), and (3), respectively;
(16) by striking ``Any agency'' and inserting the
following:
``(m) Explorations.--Any agency'';
(17) by striking ``Any action'' and inserting the
following:
``(n) Environmental Impact Statements.--
``(1) Judicial review.--Any action'';
(18) by striking ``The detailed'' and inserting the
following:
``(2) Initial lease sales.--The detailed'';
(19) by striking ``of the Naval Petroleum Reserves
Production Act of 1976 (90 Stat. 304; 42 U.S.C. 6504)''; and
(20) by adding at the end the following:
``(o) Waiver of Administration for Conveyed Lands.--
Notwithstanding section 14(g) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1613(g)) or any other provision of
law--
``(1) the Secretary of the Interior shall waive
administration of any oil and gas lease insofar as such lease
covers any land in the National Petroleum Reserve in Alaska
in which the subsurface estate is conveyed to the Arctic
Slope Regional Corporation; and
``(2) if any such conveyance of such subsurface estate does
not cover all the land embraced within any such oil and gas
lease--
``(A) the person who owns the subsurface estate in any
particular portion of the land covered by such lease shall be
entitled to all of the revenues reserved under such lease as
to such portion, including, without limitation, all the
royalty payable with respect to oil or gas produced from or
allocated to such particular portion of the land covered by
such lease; and
``(B) the Secretary of the Interior shall segregate such
lease into 2 leases, 1 of which shall cover only the
subsurface estate conveyed to the Arctic Slope Regional
Corporation, and operations, production, or other
circumstances (other than payment of rentals or royalties)
that satisfy obligations of the lessee under, or maintain,
either of the segregated leases shall likewise satisfy
obligations of the lessee under, or maintain, the other
segregated lease to the same extent as if such segregated
leases remained a part of the original unsegregated lease.''.
SEC. 318. ORPHANED, ABANDONED, OR IDLED WELLS ON FEDERAL
LAND.
(a) In General.--The Secretary, in cooperation with the
Secretary of Agriculture, shall establish a program not later
than 1 year after the date of enactment of this Act to
remediate, reclaim, and close orphaned, abandoned, or idled
oil and gas wells located on land administered by the land
management agencies within the Department of the Interior and
the Department of Agriculture.
(b) Activities.--The program under subsection (a) shall--
(1) include a means of ranking orphaned, abandoned, or
idled wells sites for priority in remediation, reclamation,
and closure, based on public health and safety, potential
environmental harm, and other land use priorities;
(2) provide for identification and recovery of the costs of
remediation, reclamation, and closure from persons or other
entities currently providing a bond or other financial
assurance required under State or Federal law for an oil or
gas well that is orphaned, abandoned, or idled; and
[[Page 29141]]
(3) provide for recovery from the persons or entities
identified under paragraph (2), or their sureties or
guarantors, of the costs of remediation, reclamation, and
closure of such wells.
(c) Cooperation and Consultations.--In carrying out the
program under subsection (a), the Secretary shall--
(1) work cooperatively with the Secretary of Agriculture
and the States within which Federal land is located; and
(2) consult with the Secretary of Energy and the Interstate
Oil and Gas Compact Commission.
(d) Plan.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in cooperation with the
Secretary of Agriculture, shall submit to Congress a plan for
carrying out the program under subsection (a).
(e) Idled Well.--For the purposes of this section, a well
is idled if--
(1) the well has been nonoperational for at least 7 years;
and
(2) there is no anticipated beneficial use for the well.
(f) Technical Assistance Program for Non-Federal Land.--
(1) In general.--The Secretary of Energy shall establish a
program to provide technical and financial assistance to oil
and gas producing States to facilitate State efforts over a
10-year period to ensure a practical and economical remedy
for environmental problems caused by orphaned or abandoned
oil and gas exploration or production well sites on State or
private land.
(2) Assistance.--The Secretary of Energy shall work with
the States, through the Interstate Oil and Gas Compact
Commission, to assist the States in quantifying and
mitigating environmental risks of onshore orphaned or
abandoned oil or gas wells on State and private land.
(3) Activities.--The program under paragraph (1) shall
include--
(A) mechanisms to facilitate identification, if feasible,
of the persons currently providing a bond or other form of
financial assurance required under State or Federal law for
an oil or gas well that is orphaned or abandoned;
(B) criteria for ranking orphaned or abandoned well sites
based on factors such as public health and safety, potential
environmental harm, and other land use priorities;
(C) information and training programs on best practices for
remediation of different types of sites; and
(D) funding of State mitigation efforts on a cost-shared
basis.
(g) Federal Reimbursement for Orphaned Well Reclamation
Pilot Program.--
(1) Reimbursement for remediating, reclaiming, and closing
wells on land subject to a new lease.--The Secretary shall
carry out a pilot program under which, in issuing a new oil
and gas lease on federally owned land on which 1 or more
orphaned wells are located, the Secretary--
(A) may require, but not as a condition of the lease, that
the lessee remediate, reclaim, and close in accordance with
standards established by the Secretary, all orphaned wells on
the land leased; and
(B) shall develop a program to reimburse a lessee, through
a royalty credit against the Federal share of royalties owed
or other means, for the reasonable actual costs of
remediating, reclaiming, and closing the orphaned well
pursuant to that requirement.
(2) Reimbursement for reclaiming orphaned wells on other
land.--In carrying out this subsection, the Secretary--
(A) may authorize any lessee under an oil and gas lease on
federally owned land to reclaim in accordance with the
Secretary's standards--
(i) an orphaned well on unleased federally owned land; or
(ii) an orphaned well located on an existing lease on
federally owned land for the reclamation of which the lessee
is not legally responsible; and
(B) shall develop a program to provide reimbursement of 115
percent of the reasonable actual costs of remediating,
reclaiming, and closing the orphaned well, through credits
against the Federal share of royalties or other means.
(3) Effect of remediation, reclamation, or closure of well
pursuant to an approved remediation plan.--
(A) Definition of remediating party.--In this paragraph the
term ``remediating party'' means a person who remediates,
reclaims, or closes an abandoned, orphaned, or idled well
pursuant to this subsection.
(B) General rule.--A remediating party who remediates,
reclaims, or closes an abandoned, orphaned, or idled well in
accordance with a detailed written remediation plan approved
by the Secretary under this subsection, shall be immune from
civil liability under Federal environmental laws, for--
(i) pre-existing environmental conditions at or associated
with the well, unless the remediating party owns or operates,
in the past owned or operated, or is related to a person that
owns or operates or in the past owned or operated, the well
or the land on which the well is located; or
(ii) any remaining releases of pollutants from the well
during or after completion of the remediation, reclamation,
or closure of the well, unless the remediating party causes
increased pollution as a result of activities that are not in
accordance with the approved remediation plan.
(C) Limitations.--Nothing in this section shall limit in
any way the liability of a remediating party for injury,
damage, or pollution resulting from the remediating party's
acts or omissions that are not in accordance with the
approved remediation plan, are reckless or willful,
constitute gross negligence or wanton misconduct, or are
unlawful.
(4) Regulations.--The Secretary may issue such regulations
as are appropriate to carry out this subsection.
(h) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
carry out this section $25,000,000 for each of fiscal years
2005 through 2009.
(2) Use.--Of the amounts authorized under paragraph (1),
$5,000,000 are authorized for each fiscal year for activities
under subsection (f).
SEC. 319. COMBINED HYDROCARBON LEASING.
(a) Special Provisions Regarding Leasing.--Section 17(b)(2)
of the Mineral Leasing Act (30 U.S.C. 226(b)(2)) is amended--
(1) by inserting ``(A)'' after ``(2)''; and
(2) by adding at the end the following:
``(B) For any area that contains any combination of tar
sand and oil or gas (or both), the Secretary may issue under
this Act, separately--
``(i) a lease for exploration for and extraction of tar
sand; and
``(ii) a lease for exploration for and development of oil
and gas.
``(C) A lease issued for tar sand shall be issued using the
same bidding process, annual rental, and posting period as a
lease issued for oil and gas, except that the minimum
acceptable bid required for a lease issued for tar sand shall
be $2 per acre.
``(D) The Secretary may waive, suspend, or alter any
requirement under section 26 that a permittee under a permit
authorizing prospecting for tar sand must exercise due
diligence, to promote any resource covered by a combined
hydrocarbon lease.''.
(b) Conforming Amendment.--Section 17(b)(1)(B) of the
Mineral Leasing Act (30 U.S.C. 226(b)(1)(B)) is amended in
the second sentence by inserting ``, subject to paragraph
(2)(B),'' after ``Secretary''.
(c) Regulations.--Not later than 45 days after the date of
enactment of this Act, the Secretary shall issue final
regulations to implement this section.
SEC. 320. LIQUIFIED NATURAL GAS.
Section 3 of the Natural Gas Act (15 U.S.C. 717b) is
amended by adding at the end the following:
``(d) Limitation on Commission Authority.--If an applicant
under this section proposes to construct or expand a
liquified natural gas terminal either onshore or in State
waters for the purpose of importing liquified natural gas
into the United States, the Commission shall not deny or
condition the application solely on the basis that the
applicant proposes to utilize the terminal exclusively or
partially for gas that the applicant or any affiliate thereof
will supply thereto. In all other respects, subsection (a)
shall remain applicable to any such proposal.''.
SEC. 321. ALTERNATE ENERGY-RELATED USES ON THE OUTER
CONTINENTAL SHELF.
(a) Amendment to Outer Continental Shelf Lands Act.--
Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C.
1337) is amended by adding at the end the following:
``(p) Leases, Easements, or Rights-Of-Way for Energy and
Related Purposes.--
``(1) In General.--The Secretary, in consultation with the
Secretary of the Department in which the Coast Guard is
operating and other relevant departments and agencies of the
Federal Government, may grant a lease, easement, or right-of-
way on the outer Continental Shelf for activities not
otherwise authorized in this Act, the Deepwater Port Act of
1974 (33 U.S.C. 1501 et seq.), or the Ocean Thermal Energy
Conversion Act of 1980 (42 U.S.C. 9101 et seq.), or other
applicable law, if those activities--
``(A) support exploration, development, production,
transportation, or storage of oil, natural gas, or other
minerals;
``(B) produce or support production, transportation, or
transmission of energy from sources other than oil and gas;
or
``(C) use, for energy-related or marine-related purposes,
facilities currently or previously used for activities
authorized under this Act.
``(2) Payments.--The Secretary shall establish reasonable
forms of payments for any easement or right-of-way granted
under this subsection. Such payments shall not be assessed on
the basis of throughput or production. The Secretary may
establish fees, rentals, bonus, or other payments by rule or
by agreement with the party to which the lease, easement, or
right-of-way is granted.
``(3) Consultation.--Before exercising authority under this
subsection, the Secretary shall consult with the Secretary of
Defense and other appropriate agencies concerning issues
related to national security and navigational obstruction.
``(4) Competitive or noncompetitive basis.--
``(A) In general.--The Secretary may issue a lease,
easement, or right-of-way for energy and related purposes as
described in paragraph (1) on a competitive or noncompetitive
basis.
``(B) Considerations.--In determining whether a lease,
easement, or right-of-way shall be granted competitively or
noncompetitively, the Secretary shall consider such factors
as--
``(i) prevention of waste and conservation of natural
resources;
``(ii) the economic viability of an energy project;
``(iii) protection of the environment;
``(iv) the national interest and national security;
``(v) human safety;
``(vi) protection of correlative rights; and
``(vii) potential return for the lease, easement, or right-
of-way.
[[Page 29142]]
``(5) Regulations.--Not later than 270 days after the date
of enactment of the Energy Policy Act of 2003, the Secretary,
in consultation with the Secretary of the Department in which
the Coast Guard is operating and other relevant agencies of
the Federal Government and affected States, shall issue any
necessary regulations to ensure safety, protection of the
environment, prevention of waste, and conservation of the
natural resources of the outer Continental Shelf, protection
of national security interests, and protection of correlative
rights in the outer Continental Shelf.
``(6) Security.--The Secretary shall require the holder of
a lease, easement, or right-of-way granted under this
subsection to furnish a surety bond or other form of
security, as prescribed by the Secretary, and to comply with
such other requirements as the Secretary considers necessary
to protect the interests of the United States.
``(7) Effect of subsection.--Nothing in this subsection
displaces, supersedes, limits, or modifies the jurisdiction,
responsibility, or authority of any Federal or State agency
under any other Federal law.
``(8) Applicability.--This subsection does not apply to any
area on the outer Continental Shelf designated as a National
Marine Sanctuary.''.
(b) Conforming Amendment.--Section 8 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337) is amended by
striking the section heading and inserting the following:
``Leases, Easements, and Rights-of-Way on the Outer
Continental Shelf.--''.
(c) Savings Provision.--Nothing in the amendment made by
subsection (a) requires, with respect to any project--
(1) for which offshore test facilities have been
constructed before the date of enactment of this Act; or
(2) for which a request for proposals has been issued by a
public authority,
any resubmittal of documents previously submitted or any
reauthorization of actions previously authorized.
SEC. 322. PRESERVATION OF GEOLOGICAL AND GEOPHYSICAL DATA.
(a) Short Title.--This section may be cited as the
``National Geological and Geophysical Data Preservation
Program Act of 2003''.
(b) Program.--The Secretary shall carry out a National
Geological and Geophysical Data Preservation Program in
accordance with this section--
(1) to archive geologic, geophysical, and engineering data,
maps, well logs, and samples;
(2) to provide a national catalog of such archival
material; and
(3) to provide technical and financial assistance related
to the archival material.
(c) Plan.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Congress
a plan for the implementation of the Program.
(d) Data Archive System.--
(1) Establishment.--The Secretary shall establish, as a
component of the Program, a data archive system to provide
for the storage, preservation, and archiving of subsurface,
surface, geological, geophysical, and engineering data and
samples. The Secretary, in consultation with the Advisory
Committee, shall develop guidelines relating to the data
archive system, including the types of data and samples to be
preserved.
(2) System components.--The system shall be comprised of
State agencies that elect to be part of the system and
agencies within the Department of the Interior that maintain
geological and geophysical data and samples that are
designated by the Secretary in accordance with this
subsection. The Program shall provide for the storage of data
and samples through data repositories operated by such
agencies.
(3) Limitation of designation.--The Secretary may not
designate a State agency as a component of the data archive
system unless that agency is the agency that acts as the
geological survey in the State.
(4) Data from federal land.--The data archive system shall
provide for the archiving of relevant subsurface data and
samples obtained from Federal land--
(A) in the most appropriate repository designated under
paragraph (2), with preference being given to archiving data
in the State in which the data were collected; and
(B) consistent with all applicable law and requirements
relating to confidentiality and proprietary data.
(e) National Catalog.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary shall develop and
maintain, as a component of the Program, a national catalog
that identifies--
(A) data and samples available in the data archive system
established under subsection (d);
(B) the repository for particular material in the system;
and
(C) the means of accessing the material.
(2) Availability.--The Secretary shall make the national
catalog accessible to the public on the site of the Survey on
the Internet, consistent with all applicable requirements
related to confidentiality and proprietary data.
(f) Advisory Committee.--
(1) In general.--The Advisory Committee shall advise the
Secretary on planning and implementation of the Program.
(2) New duties.--In addition to its duties under the
National Geologic Mapping Act of 1992 (43 U.S.C. 31a et
seq.), the Advisory Committee shall perform the following
duties:
(A) Advise the Secretary on developing guidelines and
procedures for providing assistance for facilities under
subsection (g)(1).
(B) Review and critique the draft implementation plan
prepared by the Secretary under subsection (c).
(C) Identify useful studies of data archived under the
Program that will advance understanding of the Nation's
energy and mineral resources, geologic hazards, and
engineering geology.
(D) Review the progress of the Program in archiving
significant data and preventing the loss of such data, and
the scientific progress of the studies funded under the
Program.
(E) Include in the annual report to the Secretary required
under section 5(b)(3) of the National Geologic Mapping Act of
1992 (43 U.S.C. 31d(b)(3)) an evaluation of the progress of
the Program toward fulfilling the purposes of the Program
under subsection (b).
(g) Financial Assistance.--
(1) Archive facilities.--Subject to the availability of
appropriations, the Secretary shall provide financial
assistance to a State agency that is designated under
subsection (d)(2) for providing facilities to archive energy
material.
(2) Studies.--Subject to the availability of
appropriations, the Secretary shall provide financial
assistance to any State agency designated under subsection
(d)(2) for studies and technical assistance activities that
enhance understanding, interpretation, and use of materials
archived in the data archive system established under
subsection (d).
(3) Federal share.--The Federal share of the cost of an
activity carried out with assistance under this subsection
shall be not more than 50 percent of the total cost of the
activity.
(4) Private contributions.--The Secretary shall apply to
the non-Federal share of the cost of an activity carried out
with assistance under this subsection the value of private
contributions of property and services used for that
activity.
(h) Report.--The Secretary shall include in each report
under section 8 of the National Geologic Mapping Act of 1992
(43 U.S.C. 31g)--
(1) a description of the status of the Program;
(2) an evaluation of the progress achieved in developing
the Program during the period covered by the report; and
(3) any recommendations for legislative or other action the
Secretary considers necessary and appropriate to fulfill the
purposes of the Program under subsection (b).
(i) Maintenance of State Effort.--It is the intent of
Congress that the States not use this section as an
opportunity to reduce State resources applied to the
activities that are the subject of the Program.
(j) Definitions.--In this section:
(1) Advisory committee.--The term ``Advisory Committee''
means the advisory committee established under section 5 of
the National Geologic Mapping Act of 1992 (43 U.S.C. 31d).
(2) Program.--The term ``Program'' means the National
Geological and Geophysical Data Preservation Program carried
out under this section.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of the United
States Geological Survey.
(4) Survey.--The term ``Survey'' means the United States
Geological Survey.
(k) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $30,000,000 for
each of fiscal years 2004 through 2008.
SEC. 323. OIL AND GAS LEASE ACREAGE LIMITATIONS.
Section 27(d)(1) of the Mineral Leasing Act (30 U.S.C.
184(d)(1)) is amended by inserting after ``acreage held in
special tar sand areas'' the following: ``, and acreage under
any lease any portion of which has been committed to a
federally approved unit or cooperative plan or
communitization agreement or for which royalty (including
compensatory royalty or royalty in-kind) was paid in the
preceding calendar year,''.
SEC. 324. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON OIL.
(a) Assessment.--The Secretary of Energy shall assess the
economic implication of the dependence of the State of Hawaii
on oil as the principal source of energy for the State,
including--
(1) the short- and long-term prospects for crude oil supply
disruption and price volatility and potential impacts on the
economy of Hawaii;
(2) the economic relationship between oil-fired generation
of electricity from residual fuel and refined petroleum
products consumed for ground, marine, and air transportation;
(3) the technical and economic feasibility of increasing
the contribution of renewable energy resources for generation
of electricity, on an island-by-island basis, including--
(A) siting and facility configuration;
(B) environmental, operational, and safety considerations;
(C) the availability of technology;
(D) effects on the utility system including reliability;
(E) infrastructure and transport requirements;
(F) community support; and
(G) other factors affecting the economic impact of such an
increase and any effect on the economic relationship
described in paragraph (2);
(4) the technical and economic feasibility of using
liquified natural gas to displace residual fuel oil for
electric generation, including neighbor island opportunities,
and the effect of the displacement on the economic
relationship described in paragraph (2), including--
(A) the availability of supply;
[[Page 29143]]
(B) siting and facility configuration for onshore and
offshore liquified natural gas receiving terminals;
(C) the factors described in subparagraphs (B) through (F)
of paragraph (3); and
(D) other economic factors;
(5) the technical and economic feasibility of using
renewable energy sources (including hydrogen) for ground,
marine, and air transportation energy applications to
displace the use of refined petroleum products, on an island-
by-island basis, and the economic impact of the displacement
on the relationship described in (2); and
(6) an island-by-island approach to--
(A) the development of hydrogen from renewable resources;
and
(B) the application of hydrogen to the energy needs of
Hawaii
(b) Contracting Authority.--The Secretary of Energy may
carry out the assessment under subsection (a) directly or, in
whole or in part, through 1 or more contracts with qualified
public or private entities.
(c) Report.--Not later than 300 days after the date of
enactment of this Act, the Secretary of Energy shall prepare,
in consultation with agencies of the State of Hawaii and
other stakeholders, as appropriate, and submit to Congress, a
report detailing the findings, conclusions, and
recommendations resulting from the assessment.
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
SEC. 325. DEADLINE FOR DECISION ON APPEALS OF CONSISTENCY
DETERMINATION UNDER THE COASTAL ZONE MANAGEMENT
ACT OF 1972.
(a) In General.--Section 319 of the Coastal Zone Management
Act of 1972 (16 U.S.C. 1465) is amended to read as follows:
``appeals to the secretary
``Sec. 319. (a) Notice.--The Secretary shall publish an
initial notice in the Federal Register not later than 30 days
after the date of the filing of any appeal to the Secretary
of a consistency determination under section 307.
``(b) Closure of Record.--
``(1) In general.--Not later than the end of the 120-day
period beginning on the date of publication of an initial
notice under subsection (a), the Secretary shall receive no
more filings on the appeal and the administrative record
regarding the appeal shall be closed.
``(2) Notice.--Upon the closure of the administrative
record, the Secretary shall immediately publish a notice that
the administrative record has been closed.
``(c) Deadline for Decision.--The Secretary shall issue a
decision in any appeal filed under section 307 not later than
120 days after the closure of the administrative record.
``(d) Application.--This section applies to appeals
initiated by the Secretary and appeals filed by an
applicant.''.
(b) Application.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by subsection (a) shall apply with respect to
any appeal initiated or filed before, on, or after the date
of enactment of this Act.
(2) Limitation.--Subsection (a) of section 319 of the
Coastal Zone Management Act of 1972 (as amended by subsection
(a)) shall not apply with respect to an appeal initiated or
filed before the date of enactment of this Act.
(c) Closure of Record for Appeal Filed Before Date of
Enactment.--Notwithstanding section 319(b)(1) of the Coastal
Zone Management Act of 1972 (as amended by this section), in
the case of an appeal of a consistency determination under
section 307 of that Act initiated or filed before the date of
enactment of this Act, the Secretary of Commerce shall
receive no more filings on the appeal and the administrative
record regarding the appeal shall be closed not later than
120 days after the date of enactment of this Act.
SEC. 326. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES,
DOCUMENTATION, AND STUDIES.
(a) In General.--The Mineral Leasing Act is amended by
inserting after section 37 (30 U.S.C. 193) the following:
``reimbursement for costs of certain analyses, documentation, and
studies
``Sec. 38. (a) In General.--The Secretary of the Interior
may reimburse a person that is a lessee, operator, operating
rights owner, or applicant for any lease under this Act for
reasonable amounts paid by the person for preparation for the
Secretary by a contractor or other person selected by the
Secretary of any project-level analysis, documentation, or
related study required pursuant to the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to
the lease.
``(b) Conditions.--The Secretary may provide reimbursement
under subsection (a) only if--
``(1) adequate funding to enable the Secretary to timely
prepare the analysis, documentation, or related study is not
appropriated;
``(2) the person paid the costs voluntarily;
``(3) the person maintains records of its costs in
accordance with regulations issued by the Secretary;
``(4) the reimbursement is in the form of a reduction in
the Federal share of the royalty required to be paid for the
lease for which the analysis, documentation, or related study
is conducted, and is agreed to by the Secretary and the
person reimbursed prior to commencing the analysis,
documentation, or related study; and
``(5) the agreement required under paragraph (4) contains
provisions--
``(A) reducing royalties owed on lease production based on
market prices;
``(B) stipulating an automatic termination of the royalty
reduction upon recovery of documented costs; and
``(C) providing a process by which the lessee may seek
reimbursement for circumstances in which production from the
specified lease is not possible.''.
(b) Application.--The amendment made by this section shall
apply with respect to an analysis, documentation, or a
related study conducted on or after the date of enactment of
this Act for any lease entered into before, on, or after the
date of enactment of this Act.
(c) Deadline for Regulations.--The Secretary shall issue
regulations implementing the amendment made by this section
by not later than 1 year after the date of enactment of this
Act.
SEC. 327. HYDRAULIC FRACTURING.
Paragraph (1) of section 1421(d) of the Safe Drinking Water
Act (42 U.S.C. 300h(d)) is amended to read as follows:
``(1) Underground injection.--The term `underground
injection'--
``(A) means the subsurface emplacement of fluids by well
injection; and
``(B) excludes--
``(i) the underground injection of natural gas for purposes
of storage; and
``(ii) the underground injection of fluids or propping
agents pursuant to hydraulic fracturing operations related to
oil or gas production activities.''.
SEC. 328. OIL AND GAS EXPLORATION AND PRODUCTION DEFINED.
Section 502 of the Federal Water Pollution Control Act (33
U.S.C. 1362) is amended by adding at the end the following:
``(24) Oil and gas exploration and production.--The term
`oil and gas exploration, production, processing, or
treatment operations or transmission facilities' means all
field activities or operations associated with exploration,
production, processing, or treatment operations, or
transmission facilities, including activities necessary to
prepare a site for drilling and for the movement and
placement of drilling equipment, whether or not such field
activities or operations may be considered to be construction
activities.''.
SEC. 329. OUTER CONTINENTAL SHELF PROVISIONS.
(a) Storage on the Outer Continental Shelf.--Section
5(a)(5) of the Outer Continental Shelf Lands Act (43 U.S.C.
1334(a)(5)) is amended by inserting ``from any source'' after
``oil and gas''.
(b) Deepwater Projects.--Section 6 of the Deepwater Port
Act of 1974 (33 U.S.C. 1505) is amended by adding at the end
the following:
``(d) Reliance on Activities of Other Agencies.--In
fulfilling the requirements of section 5(f)--
``(1) to the extent that other Federal agencies have
prepared environmental impact statements, are conducting
studies, or are monitoring the affected human, marine, or
coastal environment, the Secretary may use the information
derived from those activities in lieu of directly conducting
such activities; and
``(2) the Secretary may use information obtained from any
State or local government or from any person.''.
(c) Natural Gas Defined.--Section 3(13) of the Deepwater
Port Act of 1974 (33 U.S.C. 1502(13)) is amended to read as
follows:
``(13) natural gas means--
``(A) natural gas unmixed; or
``(B) any mixture of natural or artificial gas, including
compressed or liquefied natural gas, natural gas liquids,
liquefied petroleum gas, and condensate recovered from
natural gas;''.
SEC. 330. APPEALS RELATING TO PIPELINE CONSTRUCTION OR
OFFSHORE MINERAL DEVELOPMENT PROJECTS.
(a) Agency of Record, Pipeline Construction Projects.--Any
Federal administrative agency proceeding that is an appeal or
review under section 319 of the Coastal Zone Management Act
of 1972 (16 U.S.C. 1465), as amended by this Act, related to
Federal authority for an interstate natural gas pipeline
construction project, including construction of natural gas
storage and liquefied natural gas facilities, shall use as
its exclusive record for all purposes the record compiled by
the Federal Energy Regulatory Commission pursuant to the
Commission's proceeding under sections 3 and 7 of the Natural
Gas Act (15 U.S.C. 717b, 717f).
(b) Sense of Congress.--It is the sense of Congress that
all Federal and State agencies with jurisdiction over
interstate natural gas pipeline construction activities
should coordinate their proceedings within the timeframes
established by the Federal Energy Regulatory Commission when
the Commission is acting under sections 3 and 7 of the
Natural Gas Act (15 U.S.C. 717b, 717f) to determine whether a
certificate of public convenience and necessity should be
issued for a proposed interstate natural gas pipeline.
(c) Agency of Record, Offshore Mineral Development
Projects.--Any Federal administrative agency proceeding that
is an appeal or review under section 319 of the Coastal Zone
Management Act of 1972 (16 U.S.C. 1465), as amended by this
Act, related to Federal authority for the permitting,
approval, or other authorization of energy projects,
including projects to explore, develop, or produce mineral
resources in or underlying the outer Continental Shelf shall
use as its exclusive record for all purposes (except for the
filing of pleadings) the record compiled by the relevant
Federal permitting agency.
[[Page 29144]]
SEC. 331. BILATERAL INTERNATIONAL OIL SUPPLY AGREEMENTS.
(a) In General.--Notwithstanding any other provision of
law, the President may export oil to, or secure oil for, any
country pursuant to a bilateral international oil supply
agreement entered into by the United States with the country
before June 25, 1979, or to any country pursuant to the
International Emergency Oil Sharing Plan of the International
Energy Agency.
(b) Memorandum of Agreement.--The following agreements are
deemed to have entered into force by operation of law and are
deemed to have no termination date:
(1) The agreement entitled ``Agreement amending and
extending the memorandum of agreement of June 22, 1979'',
entered into force November 13, 1994 (TIAS 12580).
(2) The agreement entitled ``Agreement amending the
contingency implementing arrangements of October 17, 1980'',
entered into force June 27, 1995 (TIAS 12670).
SEC. 332. NATURAL GAS MARKET REFORM.
(a) Clarification of Existing CFTC Authority.--
(1) False reporting.--Section 9(a)(2) of the Commodity
Exchange Act (7 U.S.C. 13(a)(2)) is amended by striking
``false or misleading or knowingly inaccurate reports'' and
inserting ``knowingly false or knowingly misleading or
knowingly inaccurate reports''.
(2) Commission Administrative and Civil Authority.--Section
9 of the Commodity Exchange Act (7 U.S.C. 13) is amended by
redesignating subsection (f) as subsection (e), and adding:
``(f) Commission Administrative and Civil Authority.--The
Commission may bring administrative or civil actions as
provided in this Act against any person for a violation of
any provision of this section including, but not limited to,
false reporting under subsection (a)(2).''.
(3) Effect of amendments.--The amendments made by
paragraphs (1) and (2) restate, without substantive change,
existing burden of proof provisions and existing Commission
civil enforcement authority, respectively. These clarifying
changes do not alter any existing burden of proof or grant
any new statutory authority. The provisions of this section,
as restated herein, continue to apply to any action pending
on or commenced after the date of enactment of this Act for
any act, omission, or violation occurring before, on, or
after, such date of enactment.
(b) Fraud Authority.--Section 4b of the Commodity Exchange
Act (7 U.S.C. 6b) is amended--
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(2) by striking subsection (a) and inserting the following:
``(a) It shall be unlawful--
``(1) for any person, in or in connection with any order to
make, or the making of, any contract of sale of any commodity
for future delivery or in interstate commerce, that is made,
or to be made, on or subject to the rules of a designated
contract market, for or on behalf of any other person; or
``(2) for any person, in or in connection with any order to
make, or the making of, any contract of sale of any commodity
for future delivery, or other agreement, contract, or
transaction subject to section 5a(g) (1) and (2) of this Act,
that is made, or to be made, for or on behalf of, or with,
any other person, other than on or subject to the rules of a
designated contract market--
``(A) to cheat or defraud or attempt to cheat or defraud
such other person;
``(B) willfully to make or cause to be made to such other
person any false report or statement or willfully to enter or
cause to be entered for such other person any false record;
``(C) willfully to deceive or attempt to deceive such other
person by any means whatsoever in regard to any order or
contract or the disposition or execution of any order or
contract, or in regard to any act of agency performed, with
respect to any order or contract for or, in the case of
subsection (a)(2), with such other person; or
``(D)(i) to bucket an order if such order is either
represented by such person as an order to be executed, or
required to be executed, on or subject to the rules of a
designated contract market; or
``(ii) to fill an order by offset against the order or
orders of any other person, or willfully and knowingly and
without the prior consent of such other person to become the
buyer in respect to any selling order of such other person,
or become the seller in respect to any buying order of such
other person, if such order is either represented by such
person as an order to be executed, or required to be
executed, on or subject to the rules of a designated contract
market.
``(b) Subsection (a)(2) shall not obligate any person, in
connection with a transaction in a contract of sale of a
commodity for future delivery, or other agreement, contract
or transaction subject to section 5a(g) (1) and (2) of this
Act, with another person, to disclose to such other person
nonpublic information that may be material to the market
price of such commodity or transaction, except as necessary
to make any statement made to such other person in connection
with such transaction, not misleading in any material
respect.''.
(c) Jurisdiction of the CFTC.--The Natural Gas Act (15
U.S.C. 717 et seq.) is amended by adding at the end:
``SEC. 26. JURISDICTION.
``This Act shall not affect the exclusive jurisdiction of
the Commodity Futures Trading Commission with respect to
accounts, agreements, contracts, or transactions in
commodities under the Commodity Exchange Act (7 U.S.C. 1 et
seq.). Any request for information by the Commission to a
designated contract market, registered derivatives
transaction execution facility, board of trade, exchange, or
market involving accounts, agreements, contracts, or
transactions in commodities (including natural gas,
electricity, and other energy commodities) within the
exclusive jurisdiction of the Commodity Futures Trading
Commission shall be directed to the Commodity Futures Trading
Commission, which shall cooperate in responding to any
information request by the Commission.''.
(d) Increased Penalties.--Section 21 of the Natural Gas Act
(15 U.S.C. 717t) is amended--
(1) in subsection (a)--
(A) by striking ``$5,000'' and inserting ``$1,000,000'';
and
(B) by striking ``two years'' and inserting ``5 years'';
and
(2) in subsection (b), by striking ``$500'' and inserting
``$50,000''.
SEC. 333. NATURAL GAS MARKET TRANSPARENCY.
The Natural Gas Act (15 U.S.C 717 et seq.) is amended--
(1) by redesignating section 24 as section 25; and
(2) by inserting after section 23 the following:
``SEC. 24. NATURAL GAS MARKET TRANSPARENCY.
``(a) Authorization.--(1) Not later than 180 days after the
date of enactment of the Energy Policy Act of 2003, the
Federal Energy Regulatory Commission shall issue rules
directing all entities subject to the Commission's
jurisdiction as provided under this Act to timely report
information about the availability and prices of natural gas
sold at wholesale in interstate commerce to the Commission
and price publishers.
``(2) The Commission shall evaluate the data for adequate
price transparency and accuracy.
``(3) Rules issued under this subsection requiring the
reporting of information to the Commission that may become
publicly available shall be limited to aggregate data and
transaction-specific data that are otherwise required by the
Commission to be made public.
``(4) In exercising its authority under this section, the
Commission shall not--
``(A) compete with, or displace from the market place, any
price publisher; or
``(B) regulate price publishers or impose any requirements
on the publication of information.
``(b) Timely Enforcement.--No person shall be subject to
any penalty under this section with respect to a violation
occurring more than 3 years before the date on which the
Federal Energy Regulatory Commission seeks to assess a
penalty.
``(c) Limitation on Commission Authority.--(1) The
Commission shall not condition access to interstate pipeline
transportation upon the reporting requirements authorized
under this section.
``(2) Natural gas sales by a producer that are attributable
to volumes of natural gas produced by such producer shall not
be subject to the rules issued pursuant to this section.
``(3) The Commission shall not require natural gas
producers, processors, or users who have a de minimis market
presence to participate in the reporting requirements
provided in this section.''.
Subtitle C--Access to Federal Land
SEC. 341. OFFICE OF FEDERAL ENERGY PROJECT COORDINATION.
(a) Establishment.--The President shall establish the
Office of Federal Energy Project Coordination (referred to in
this section as the ``Office'') within the Executive Office
of the President in the same manner and with the same mission
as the White House Energy Projects Task Force established by
Executive Order No. 13212 (42 U.S.C. 13201 note).
(b) Staffing.--The Office shall be staffed by functional
experts from relevant Federal agencies on a nonreimbursable
basis to carry out the mission of the Office.
(c) Report.--The Office shall transmit an annual report to
Congress that describes the activities put in place to
coordinate and expedite Federal decisions on energy projects.
The report shall list accomplishments in improving the
Federal decisionmaking process and shall include any
additional recommendations or systemic changes needed to
establish a more effective and efficient Federal permitting
process.
SEC. 342. FEDERAL ONSHORE OIL AND GAS LEASING AND PERMITTING
PRACTICES.
(a) Review of Onshore Oil and Gas Leasing Practices.--
(1) In general.--The Secretary of the Interior, in
consultation with the Secretary of Agriculture with respect
to National Forest System lands under the jurisdiction of the
Department of Agriculture, shall perform an internal review
of current Federal onshore oil and gas leasing and permitting
practices.
(2) Inclusions.--The review shall include the process for--
(A) accepting or rejecting offers to lease;
(B) administrative appeals of decisions or orders of
officers or employees of the Bureau of Land Management with
respect to a Federal oil or gas lease;
(C) considering surface use plans of operation, including
the timeframes in which the plans are considered, and any
recommendations for improving and expediting the process; and
(D) identifying stipulations to address site-specific
concerns and conditions, including those stipulations
relating to the environment and resource use conflicts.
(b) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Interior and the
Secretary of Agriculture shall transmit a report to Congress
that describes--
[[Page 29145]]
(1) actions taken under section 3 of Executive Order No.
13212 (42 U.S.C. 13201 note); and
(2) actions taken or any plans to improve the Federal
onshore oil and gas leasing program.
SEC. 343. MANAGEMENT OF FEDERAL OIL AND GAS LEASING PROGRAMS.
(a) Timely Action on Leases and Permits.--To ensure timely
action on oil and gas leases and applications for permits to
drill on land otherwise available for leasing, the Secretary
of the Interior (in this section referred to as the
``Secretary'') shall--
(1) ensure expeditious compliance with section 102(2)(C) of
the National Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(C));
(2) improve consultation and coordination with the States
and the public; and
(3) improve the collection, storage, and retrieval of
information relating to the leasing activities.
(b) Best Management Practices.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall develop and
implement best management practices to--
(A) improve the administration of the onshore oil and gas
leasing program under the Mineral Leasing Act (30 U.S.C. 181
et seq.); and
(B) ensure timely action on oil and gas leases and
applications for permits to drill on lands otherwise
available for leasing.
(2) Considerations.--In developing the best management
practices under paragraph (1), the Secretary shall consider
any recommendations from the review under section 342.
(3) Regulations.--Not later than 180 days after the
development of best management practices under paragraph (1),
the Secretary shall publish, for public comment, proposed
regulations that set forth specific timeframes for processing
leases and applications in accordance with the practices,
including deadlines for--
(A) approving or disapproving resource management plans and
related documents, lease applications, and surface use plans;
and
(B) related administrative appeals.
(c) Improved Enforcement.--The Secretary shall improve
inspection and enforcement of oil and gas activities,
including enforcement of terms and conditions in permits to
drill.
(d) Authorization of Appropriations.--In addition to
amounts authorized to be appropriated to carry out section 17
of the Mineral Leasing Act (30 U.S.C. 226), there are
authorized to be appropriated to the Secretary for each of
fiscal years 2004 through 2007--
(1) $40,000,000 to carry out subsections (a) and (b); and
(2) $20,000,000 to carry out subsection (c).
SEC. 344. CONSULTATION REGARDING OIL AND GAS LEASING ON
PUBLIC LAND.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Interior and the
Secretary of Agriculture shall enter into a memorandum of
understanding regarding oil and gas leasing on--
(1) public lands under the jurisdiction of the Secretary of
the Interior; and
(2) National Forest System lands under the jurisdiction of
the Secretary of Agriculture.
(b) Contents.--The memorandum of understanding shall
include provisions that--
(1) establish administrative procedures and lines of
authority that ensure timely processing of oil and gas lease
applications, surface use plans of operation, and
applications for permits to drill, including steps for
processing surface use plans and applications for permits to
drill consistent with the timelines established by the
amendment made by section 348;
(2) eliminate duplication of effort by providing for
coordination of planning and environmental compliance
efforts; and
(3) ensure that lease stipulations are--
(A) applied consistently;
(B) coordinated between agencies; and
(C) only as restrictive as necessary to protect the
resource for which the stipulations are applied.
(c) Data Retrieval System.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary of the Interior and the
Secretary of Agriculture shall establish a joint data
retrieval system that is capable of--
(A) tracking applications and formal requests made in
accordance with procedures of the Federal onshore oil and gas
leasing program; and
(B) providing information regarding the status of the
applications and requests within the Department of the
Interior and the Department of Agriculture.
(2) Resource mapping.--Not later than 2 years after the
date of enactment of this Act, the Secretary of the Interior
and the Secretary of Agriculture shall establish a joint
Geographic Information System mapping system for use in--
(A) tracking surface resource values to aid in resource
management; and
(B) processing surface use plans of operation and
applications for permits to drill.
SEC. 345. ESTIMATES OF OIL AND GAS RESOURCES UNDERLYING
ONSHORE FEDERAL LAND.
(a) Assessment.--Section 604 of the Energy Act of 2000 (42
U.S.C. 6217) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``reserve''; and
(ii) by striking ``and'' after the semicolon; and
(B) by striking paragraph (2) and inserting the following:
``(2) the extent and nature of any restrictions or
impediments to the development of the resources, including--
``(A) impediments to the timely granting of leases;
``(B) post-lease restrictions, impediments, or delays on
development for conditions of approval, applications for
permits to drill, or processing of environmental permits; and
``(C) permits or restrictions associated with transporting
the resources for entry into commerce; and
``(3) the quantity of resources not produced or introduced
into commerce because of the restrictions.'';
(2) in subsection (b)--
(A) by striking ``reserve'' and inserting ``resource''; and
(B) by striking ``publically'' and inserting ``publicly'';
and
(3) by striking subsection (d) and inserting the following:
``(d) Assessments.--Using the inventory, the Secretary of
Energy shall make periodic assessments of economically
recoverable resources accounting for a range of parameters
such as current costs, commodity prices, technology, and
regulations.''.
(b) Methodology.--The Secretary of the Interior shall use
the same assessment methodology across all geological
provinces, areas, and regions in preparing and issuing
national geological assessments to ensure accurate
comparisons of geological resources.
SEC. 346. COMPLIANCE WITH EXECUTIVE ORDER 13211; ACTIONS
CONCERNING REGULATIONS THAT SIGNIFICANTLY
AFFECT ENERGY SUPPLY, DISTRIBUTION, OR USE.
(a) Requirement.--The head of each Federal agency shall
require that before the Federal agency takes any action that
could have a significant adverse effect on the supply of
domestic energy resources from Federal public land, the
Federal agency taking the action shall comply with Executive
Order No. 13211 (42 U.S.C. 13201 note).
(b) Guidance.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Energy shall publish
guidance for purposes of this section describing what
constitutes a significant adverse effect on the supply of
domestic energy resources under Executive Order No. 13211 (42
U.S.C. 13201 note).
(c) Memorandum of Understanding.--The Secretary of the
Interior and the Secretary of Agriculture shall include in
the memorandum of understanding under section 344 provisions
for implementing subsection (a) of this section.
SEC. 347. PILOT PROJECT TO IMPROVE FEDERAL PERMIT
COORDINATION.
(a) Establishment.--The Secretary of the Interior (in this
section referred to as the ``Secretary'') shall establish a
Federal Permit Streamlining Pilot Project (in this section
referred to as the ``Pilot Project'').
(b) Memorandum of Understanding.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall enter into a
memorandum of understanding with the Secretary of
Agriculture, the Administrator of the Environmental
Protection Agency, and the Chief of Engineers of the Army
Corps of Engineers for purposes of this section.
(2) State participation.--The Secretary may request that
the Governors of Wyoming, Montana, Colorado, Utah, and New
Mexico be signatories to the memorandum of understanding.
(c) Designation of Qualified Staff.--
(1) In general.--Not later than 30 days after the date of
the signing of the memorandum of understanding under
subsection (b), all Federal signatory parties shall assign to
each of the field offices identified in subsection (d), on a
nonreimbursable basis, an employee who has expertise in the
regulatory issues relating to the office in which the
employee is employed, including, as applicable, particular
expertise in--
(A) the consultations and the preparation of biological
opinions under section 7 of the Endangered Species Act of
1973 (16 U.S.C. 1536);
(B) permits under section 404 of Federal Water Pollution
Control Act (33 U.S.C. 1344);
(C) regulatory matters under the Clean Air Act (42 U.S.C.
7401 et seq.);
(D) planning under the National Forest Management Act of
1976 (16 U.S.C. 472a et seq.); and
(E) the preparation of analyses under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(2) Duties.--Each employee assigned under paragraph (1)
shall--
(A) not later than 90 days after the date of assignment,
report to the Bureau of Land Management Field Managers in the
office to which the employee is assigned;
(B) be responsible for all issues relating to the
jurisdiction of the home office or agency of the employee;
and
(C) participate as part of the team of personnel working on
proposed energy projects, planning, and environmental
analyses.
(d) Field Offices.--The following Bureau of Land Management
Field Offices shall serve as the Pilot Project offices:
(1) Rawlins, Wyoming.
(2) Buffalo, Wyoming.
(3) Miles City, Montana
(4) Farmington, New Mexico.
(5) Carlsbad, New Mexico.
(6) Glenwood Springs, Colorado.
(7) Vernal, Utah.
(e) Reports.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall transmit to
Congress a report that--
(1) outlines the results of the Pilot Project to date; and
(2) makes a recommendation to the President regarding
whether the Pilot Project should be implemented throughout
the United States.
(f) Additional Personnel.--The Secretary shall assign to
each field office identified in subsection (d) any additional
personnel that are
[[Page 29146]]
necessary to ensure the effective implementation of--
(1) the Pilot Project; and
(2) other programs administered by the field offices,
including inspection and enforcement relating to energy
development on Federal land, in accordance with the multiple
use mandate of the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1701 et seq).
(g) Savings Provision.--Nothing in this section affects--
(1) the operation of any Federal or State law; or
(2) any delegation of authority made by the head of a
Federal agency whose employees are participating in the Pilot
Project.
SEC. 348. DEADLINE FOR CONSIDERATION OF APPLICATIONS FOR
PERMITS.
Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is
amended by adding at the end the following:
``(p) Deadlines for Consideration of Applications for
Permits.--
``(1) In general.--Not later than 10 days after the date on
which the Secretary receives an application for any permit to
drill, the Secretary shall--
``(A) notify the applicant that the application is
complete; or
``(B) notify the applicant that information is missing and
specify any information that is required to be submitted for
the application to be complete.
``(2) Issuance or deferral.--Not later than 30 days after
the applicant for a permit has submitted a complete
application, the Secretary shall--
``(A) issue the permit; or
``(B)(i) defer decision on the permit; and
``(ii) provide to the applicant a notice that specifies any
steps that the applicant could take for the permit to be
issued.
``(3) Requirements for deferred applications.--
``(A) In general.--If the Secretary provides notice under
paragraph (2)(B)(ii), the applicant shall have a period of 2
years from the date of receipt of the notice in which to
complete all requirements specified by the Secretary,
including providing information needed for compliance with
the National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.).
``(B) Issuance of decision on permit.--If the applicant
completes the requirements within the period specified in
subparagraph (A), the Secretary shall issue a decision on the
permit not later than 10 days after the date of completion of
the requirements described in subparagraph (A).
``(C) Denial of permit.--If the applicant does not complete
the requirements within the period specified in subparagraph
(A), the Secretary shall deny the permit.
``(q) Report.--On a quarterly basis, each field office of
the Bureau of Land Management and the Forest Service shall
transmit to the Secretary of the Interior or the Secretary of
Agriculture, respectively, a report that--
``(1) specifies the number of applications for permits to
drill received by the field office in the period covered by
the report; and
``(2) describes how each of the applications was disposed
of by the field office.''.
SEC. 349. CLARIFICATION OF FAIR MARKET RENTAL VALUE
DETERMINATIONS FOR PUBLIC LAND AND FOREST
SERVICE RIGHTS-OF-WAY.
(a) Linear Rights-Of-Way Under Federal Land Policy and
Management Act of 1976.--Section 504 of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1764) is amended
by adding at the end the following:
``(k) Determination of Fair Market Value of Linear Rights-
Of-Way.--
``(1) In general.--Effective beginning on the date of the
issuance of the rules required by paragraph (2), for purposes
of subsection (g), the Secretary concerned shall determine
the fair market value for the use of land encumbered by a
linear right-of-way granted, issued, or renewed under this
title using the valuation method described in paragraphs (2),
(3), and (4).
``(2) Revisions.--Not later than 1 year after the date of
enactment of this subsection--
``(A) the Secretary of the Interior shall amend section
2803.1-2 of title 43, Code of Federal Regulations, as in
effect on the date of enactment of this subsection, to revise
the per acre rental fee zone value schedule by State, county,
and type of linear right-of-way use to reflect current values
of land in each zone; and
``(B) the Secretary of Agriculture shall make the same
revision for linear rights-of-way granted, issued, or renewed
under this title on National Forest System land.
``(3) Updates.--The Secretary concerned shall annually
update the schedule revised under paragraph (2) by
multiplying the current year's rental per acre by the annual
change, second quarter to second quarter (June 30 to June 30)
in the Gross National Product Implicit Price Deflator Index
published in the Survey of Current Business of the Department
of Commerce, Bureau of Economic Analysis.
``(4) Review.--If the cumulative change in the index
referred to in paragraph (3) exceeds 30 percent, or the
change in the 3-year average of the 1-year Treasury interest
rate used to determine per acre rental fee zone values
exceeds plus or minus 50 percent, the Secretary concerned
shall conduct a review of the zones and rental per acre
figures to determine whether the value of Federal land has
differed sufficiently from the index referred to in paragraph
(3) to warrant a revision in the base zones and rental per
acre figures. If, as a result of the review, the Secretary
concerned determines that such a revision is warranted, the
Secretary concerned shall revise the base zones and rental
per acre figures accordingly. Any revision of base zones and
rental per acre figure shall only affect lease rental rates
at inception or renewal.''.
(b) Rights-Of-Way Under Mineral Leasing Act.--Section 28(l)
of the Mineral Leasing Act (30 U.S.C. 185(l)) is amended by
inserting before the period at the end the following: ``using
the valuation method described in section 2803.1-2 of title
43, Code of Federal Regulations, as revised in accordance
with section 504(k) of the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1764(k))''.
SEC. 350. ENERGY FACILITY RIGHTS-OF-WAY AND CORRIDORS ON
FEDERAL LAND.
(a) Report to Congress.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Agriculture and the
Secretary of the Interior, in consultation with the Secretary
of Commerce, the Secretary of Defense, the Secretary of
Energy, and the Federal Energy Regulatory Commission, shall
submit to Congress a joint report--
(A) that addresses--
(i) the location of existing rights-of-way and designated
and de facto corridors for oil and gas pipelines and electric
transmission and distribution facilities on Federal land; and
(ii) opportunities for additional oil and gas pipeline and
electric transmission capacity within those rights-of-way and
corridors; and
(B) that includes a plan for making available, on request,
to the appropriate Federal, State, and local agencies, tribal
governments, and other persons involved in the siting of oil
and gas pipelines and electricity transmission facilities
Geographic Information System-based information regarding the
location of the existing rights-of-way and corridors and any
planned rights-of-way and corridors.
(2) Consultations and considerations.--In preparing the
report, the Secretary of the Interior and the Secretary of
Agriculture shall consult with--
(A) other agencies of Federal, State, tribal, or local
units of government, as appropriate;
(B) persons involved in the siting of oil and gas pipelines
and electric transmission facilities; and
(C) other interested members of the public.
(3) Limitation.--The Secretary of the Interior and the
Secretary of Agriculture shall limit the distribution of the
report and Geographic Information System-based information
referred to in paragraph (1) as necessary for national and
infrastructure security reasons, if either Secretary
determines that the information may be withheld from public
disclosure under a national security or other exception under
section 552(b) of title 5, United States Code.
(b) Corridor Designations.--
(1) 11 contiguous western states.--Not later than 2 years
after the date of enactment of this Act, the Secretary of
Agriculture, the Secretary of Commerce, the Secretary of
Defense, the Secretary of Energy, and the Secretary of the
Interior, in consultation with the Federal Energy Regulatory
Commission and the affected utility industries, shall
jointly--
(A) designate, under title V of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1761 et seq.) and other
applicable Federal laws, corridors for oil and gas pipelines
and electricity transmission and facilities on Federal land
in the eleven contiguous Western States (as defined in
section 103 of the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1702));
(B) perform any environmental reviews that may be required
to complete the designations of corridors for the facilities
on Federal land in the eleven contiguous Western States; and
(C) incorporate the designated corridors into--
(i) the relevant departmental and agency land use and
resource management plans; or
(ii) equivalent plans.
(2) Other states.--Not later than 4 years after the date of
enactment of this Act, the Secretary of Agriculture, the
Secretary of Commerce, the Secretary of Defense, the
Secretary of Energy, and the Secretary of the Interior, in
consultation with the Federal Energy Regulatory Commission
and the affected utility industries, shall jointly--
(A) identify corridors for oil and gas pipelines and
electricity transmission and distribution facilities on
Federal land in the States other than those described in
paragraph (1); and
(B) schedule prompt action to identify, designate, and
incorporate the corridors into the land use plan.
(3) Ongoing responsibilities.--After completing the
requirements under paragraphs (1) and (2), the Secretary of
Agriculture, the Secretary of Commerce, the Secretary of
Defense, the Secretary of Energy, and the Secretary of the
Interior, with respect to lands under their respective
jurisdictions, in consultation with the Federal Energy
Regulatory Commission and the affected utility industries,
shall establish procedures that--
(A) ensure that additional corridors for oil and gas
pipelines and electricity transmission and distribution
facilities on Federal land are promptly identified and
designated; and
(B) expedite applications to construct or modify oil and
gas pipelines and electricity transmission and distribution
facilities within the corridors, taking into account prior
analyses and environmental reviews undertaken during the
designation of corridors.
(c) Considerations.--In carrying out this section, the
Secretaries shall take into account the need for upgraded and
new electricity transmission and distribution facilities to--
[[Page 29147]]
(1) improve reliability;
(2) relieve congestion; and
(3) enhance the capability of the national grid to deliver
electricity.
(d) Definition of Corridor.--
(1) In general.--In this section and title V of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1761 et
seq.), the term ``corridor'' means--
(A) a linear strip of land--
(i) with a width determined with consideration given to
technological, environmental, and topographical factors; and
(ii) that contains, or may in the future contain, 1 or more
utility, communication, or transportation facilities;
(B) a land use designation that is established--
(i) by law;
(ii) by Secretarial Order;
(iii) through the land use planning process; or
(iv) by other management decision; and
(C) a designation made for the purpose of establishing the
preferred location of compatible linear facilities and land
uses.
(2) Specifications of corridor.--On designation of a
corridor under this section, the centerline, width, and
compatible uses of a corridor shall be specified.
SEC. 351. CONSULTATION REGARDING ENERGY RIGHTS-OF-WAY ON
PUBLIC LAND.
(a) Memorandum of Understanding.--
(1) In general.--Not later than 6 months after the date of
enactment of this Act, the Secretary of Energy, in
consultation with the Secretary of the Interior, the
Secretary of Agriculture, and the Secretary of Defense with
respect to lands under their respective jurisdictions, shall
enter into a memorandum of understanding to coordinate all
applicable Federal authorizations and environmental reviews
relating to a proposed or existing utility facility. To the
maximum extent practicable under applicable law, the
Secretary of Energy shall, to ensure timely review and permit
decisions, coordinate such authorizations and reviews with
any Indian tribes, multi-State entities, and State agencies
that are responsible for conducting any separate permitting
and environmental reviews of the affected utility facility.
(2) Contents.--The memorandum of understanding shall
include provisions that--
(A) establish--
(i) a unified right-of-way application form; and
(ii) an administrative procedure for processing right-of-
way applications, including lines of authority, steps in
application processing, and timeframes for application
processing;
(B) provide for coordination of planning relating to the
granting of the rights-of-way;
(C) provide for an agreement among the affected Federal
agencies to prepare a single environmental review document to
be used as the basis for all Federal authorization decisions;
and
(D) provide for coordination of use of right-of-way
stipulations to achieve consistency.
(b) Natural Gas Pipelines.--
(1) In general.--With respect to permitting activities for
interstate natural gas pipelines, the May 2002 document
entitled ``Interagency Agreement On Early Coordination Of
Required Environmental And Historic Preservation Reviews
Conducted In Conjunction With The Issuance Of Authorizations
To Construct And Operate Interstate Natural Gas Pipelines
Certificated By The Federal Energy Regulatory Commission''
shall constitute compliance with subsection (a).
(2) Report.--
(A) In general.--Not later than 1 year after the date of
enactment of this Act, and every 2 years thereafter, agencies
that are signatories to the document referred to in paragraph
(1) shall transmit to Congress a report on how the agencies
under the jurisdiction of the Secretaries are incorporating
and implementing the provisions of the document referred to
in paragraph (1).
(B) Contents.--The report shall address--
(i) efforts to implement the provisions of the document
referred to in paragraph (1);
(ii) whether the efforts have had a streamlining effect;
(iii) further improvements to the permitting process of the
agency; and
(iv) recommendations for inclusion of State and tribal
governments in a coordinated permitting process.
(c) Definition of Utility Facility.--In this section, the
term ``utility facility'' means any privately, publicly, or
cooperatively owned line, facility, or system--
(1) for the transportation of--
(A) oil, natural gas, synthetic liquid fuel, or gaseous
fuel;
(B) any refined product produced from oil, natural gas,
synthetic liquid fuel, or gaseous fuel; or
(C) products in support of the production of material
referred to in subparagraph (A) or (B);
(2) for storage and terminal facilities in connection with
the production of material referred to in paragraph (1); or
(3) for the generation, transmission, and distribution of
electric energy.
SEC. 352. RENEWABLE ENERGY ON FEDERAL LAND.
(a) Report.--
(1) In general.--Not later than 24 months after the date of
enactment of this Act, the Secretary of the Interior, in
cooperation with the Secretary of Agriculture, shall develop
and transmit to Congress a report that includes
recommendations on opportunities to develop renewable energy
on--
(A) public lands under the jurisdiction of the Secretary of
the Interior; and
(B) National Forest System lands under the jurisdiction of
the Secretary of Agriculture.
(2) Contents.--The report shall include--
(A) 5-year plans developed by the Secretary of the Interior
and the Secretary of Agriculture, respectively, for
encouraging the development of renewable energy consistent
with applicable law and management plans;
(B) an analysis of--
(i) the use of rights-of-way, leases, or other methods to
develop renewable energy on such lands;
(ii) the anticipated benefits of grants, loans, tax
credits, or other provisions to promote renewable energy
development on such lands; and
(iii) any issues that the Secretary of the Interior or the
Secretary of Agriculture have encountered in managing
renewable energy projects on such lands, believe are likely
to arise in relation to the development of renewable energy
on such lands;
(C) a list, developed in consultation with the Secretary of
Energy and the Secretary of Defense, of lands under the
jurisdiction of the Department of Energy or the Department of
Defense that would be suitable for development for renewable
energy, and any recommended statutory and regulatory
mechanisms for such development; and
(D) any recommendations relating to the issues addressed in
the report.
(b) National Academy of Sciences Study.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary of the Interior shall
contract with the National Academy of Sciences to--
(A) study the potential for the development of wind, solar,
and ocean energy (including tidal, wave, and thermal energy)
on the outer Continental Shelf;
(B) assess existing Federal authorities for the development
of such resources; and
(C) recommend statutory and regulatory mechanisms for such
development.
(2) Transmittal.--The results of the study shall be
transmitted to Congress not later than 2 years after the date
of enactment of this Act.
(c) Generation Capacity of Electricity From Renewable
Energy Resources on Public Land.--The Secretary of the
Interior shall, not later than 10 years after the date of
enactment of this Act, seek to approve renewable energy
projects located (or to be located) on public lands with a
generation capacity of at least 10,000 megawatts of
electricity.
SEC. 353. ELECTRICITY TRANSMISSION LINE RIGHT-OF-WAY,
CLEVELAND NATIONAL FOREST AND ADJACENT PUBLIC
LAND, CALIFORNIA.
(a) Issuance.--
(1) In general.--Not later than 60 days after the
completion of the environmental reviews under subsection (c),
the Secretary of the Interior and the Secretary of
Agriculture shall issue all necessary grants, easements,
permits, plan amendments, and other approvals to allow for
the siting and construction of a high-voltage electricity
transmission line right-of-way running approximately north to
south through the Trabuco Ranger District of the Cleveland
National Forest in the State of California and adjacent lands
under the jurisdiction of the Bureau of Land Management and
the Forest Service.
(2) Inclusions.--The right-of-way approvals under paragraph
(1) shall provide all necessary Federal authorization from
the Secretary of the Interior and the Secretary of
Agriculture for the routing, construction, operation, and
maintenance of a 500-kilovolt transmission line capable of
meeting the long-term electricity transmission needs of the
region between the existing Valley-Serrano transmission line
to the north and the Telega-Escondido transmission line to
the south, and for connecting to future generating capacity
that may be developed in the region.
(b) Protection of Wilderness Areas.--The Secretary of the
Interior and the Secretary of Agriculture shall not allow any
portion of a transmission line right-of-way corridor
identified in subsection (a) to enter any identified
wilderness area in existence as of the date of enactment of
this Act.
(c) Environmental and Administrative Reviews.--
(1) Department of interior or local agency.--The Secretary
of the Interior, acting through the Director of the Bureau of
Land Management, shall be the lead Federal agency with
overall responsibility to ensure completion of required
environmental and other reviews of the approvals to be issued
under subsection (a).
(2) National forest system land.--For the portions of the
corridor on National Forest System lands, the Secretary of
Agriculture shall complete all required environmental reviews
and administrative actions in coordination with the Secretary
of the Interior.
(3) Expeditious completion.--The reviews required for
issuance of the approvals under subsection (a) shall be
completed not later than 1 year after the date of the
enactment of this Act.
(d) Other Terms and Conditions.--The transmission line
right-of-way shall be subject to such terms and conditions as
the Secretary of the Interior and the Secretary of
Agriculture consider necessary, based on the environmental
reviews under subsection (c), to protect the value of
historic, cultural, and natural resources under the
jurisdiction of the Secretary of the Interior or the
Secretary of Agriculture.
[[Page 29148]]
(e) Preference Among Proposals.--The Secretary of the
Interior and the Secretary of Agriculture shall give a
preference to any application or preapplication proposal for
a transmission line right-of-way referred to in subsection
(a) that was submitted before December 31, 2002, over all
other applications and proposals for the same or a similar
right-of-way submitted on or after that date.
SEC. 354. SENSE OF CONGRESS REGARDING DEVELOPMENT OF MINERALS
UNDER PADRE ISLAND NATIONAL SEASHORE.
(a) Findings.--Congress finds the following:
(1) Pursuant to Public Law 87-712 (16 U.S.C. 459d et seq.;
popularly known as the ``Federal Enabling Act'') and various
deeds and actions under that Act, the United States is the
owner of only the surface estate of certain lands
constituting the Padre Island National Seashore.
(2) Ownership of the oil, gas, and other minerals in the
subsurface estate of the lands constituting the Padre Island
National Seashore was never acquired by the United States,
and ownership of those interests is held by the State of
Texas and private parties.
(3) Public Law 87-712 (16 U.S.C. 459d et seq.)--
(A) expressly contemplated that the United States would
recognize the ownership and future development of the oil,
gas, and other minerals in the subsurface estate of the lands
constituting the Padre Island National Seashore by the owners
and their mineral lessees; and
(B) recognized that approval of the State of Texas was
required to create Padre Island National Seashore.
(4) Approval was given for the creation of Padre Island
National Seashore by the State of Texas through Tex. Rev.
Civ. Stat. Ann. Art. 6077(t) (Vernon 1970), which expressly
recognized that development of the oil, gas, and other
minerals in the subsurface of the lands constituting Padre
Island National Seashore would be conducted with full rights
of ingress and egress under the laws of the State of Texas.
(b) Sense of Congress.--It is the sense of Congress that
with regard to Federal law, any regulation of the development
of oil, gas, or other minerals in the subsurface of the lands
constituting Padre Island National Seashore should be made as
if those lands retained the status that the lands had on
September 27, 1962.
SEC. 355. ENCOURAGING PROHIBITION OF OFF-SHORE DRILLING IN
THE GREAT LAKES.
Congress encourages--
(1) the States of Illinois, Michigan, New York,
Pennsylvania, and Wisconsin to continue to prohibit offshore
drilling in the Great Lakes for oil and gas; and
(2) the States of Indiana, Minnesota, and Ohio to enact a
prohibition of such drilling.
SEC. 356. FINGER LAKES NATIONAL FOREST WITHDRAWAL.
All Federal land within the boundary of Finger Lakes
National Forest in the State of New York is withdrawn from--
(1) all forms of entry, appropriation, or disposal under
the public land laws; and
(2) disposition under all laws relating to oil and gas
leasing.
SEC. 357. STUDY ON LEASE EXCHANGES IN THE ROCKY MOUNTAIN
FRONT.
(a) Definitions.--For the purposes of this section:
(1) Badger-two medicine area.--The term ``Badger-Two
Medicine Area'' means the Forest Service land located in--
(A) T. 31 N., R. 12-13 W.;
(B) T. 30 N., R. 11-13 W.;
(C) T. 29 N., R. 10-16 W.; and
(D) T. 28 N., R. 10-14 W.
(2) Blackleaf area.--The term ``Blackleaf Area'' means the
Federal land owned by the Forest Service and Bureau of Land
Management that is located in--
(A) T. 27 N., R. 9 W.;
(B) T. 26 N., R. 9-10 W.;
(C) T. 25 N., R. 8-10 W.; and
(D) T. 24 N., R. 8-9 W.
(3) Eligible lessee.--The term ``eligible lessee'' means a
lessee under a nonproducing lease.
(4) Nonproducing lease.--The term ``nonproducing lease''
means a Federal oil or gas lease--
(A) that is in existence and in good standing on the date
of enactment of this Act; and
(B) that is located in the Badger-Two Medicine Area or the
Blackleaf Area.
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(6) State.--The term ``State'' means the State of Montana.
(b) Evaluation.--
(1) In general.--The Secretary, in consultation with the
Governor of the State, and the eligible lessees, shall
evaluate opportunities for domestic oil and gas production
through the exchange of the nonproducing leases.
(2) Requirements.--In carrying out the evaluation under
subsection (a), the Secretary shall--
(A) consider opportunities for domestic production of oil
and gas through--
(i) the exchange of the nonproducing leases for oil and gas
lease tracts of comparable value in the State; and
(ii) the issuance of bidding, royalty, or rental credits
for Federal oil and gas leases in the State in exchange for
the cancellation of the nonproducing leases;
(B) consider any other appropriate means to exchange, or
provide compensation for the cancellation of, nonproducing
leases, subject to the consent of the eligible lessees;
(C) consider the views of any interested persons, including
the State;
(D) determine the level of interest of the eligible lessees
in exchanging the nonproducing leases;
(E) assess the economic impact on the lessees and the State
of lease exchange, lease cancellation, and final judicial or
administrative decisions related to the nonproducing leases;
and
(F) provide recommendations on--
(i) whether to pursue an exchange of the nonproducing
leases;
(ii) any changes in laws (including regulations) that are
necessary for the Secretary to carry out the exchange; and
(iii) any other appropriate means to exchange or provide
compensation for the cancellation of a nonproducing lease,
subject to the consent of the eligible lessee.
(c) Valuation of Nonproducing Leases.--For the purpose of
the evaluation under subsection (a), the value of a
nonproducing lease shall be an amount equal to the difference
between--
(1) the sum of--
(A) the amount paid by the eligible lessee for the
nonproducing lease;
(B) any direct expenditures made by the eligible lessee
before the transmittal of the report in subsection (c)
associated with the exploration and development of the
nonproducing lease; and
(C) interest on any amounts under subparagraphs (A) and (B)
during the period beginning on the date on which the amount
was paid and ending on the date on which credits are issued
under subsection (b)(2)(A)(ii); and
(2) the sum of the revenues from the nonproducing lease.
(d) Report to Congress.--Not later than 2 years after the
date of the enactment of this Act, the Secretary shall
initiate the evaluation in subsection (b) and transmit to
Congress a report on the evaluation.
SEC. 358. FEDERAL COALBED METHANE REGULATION.
Any State currently on the list of Affected States
established under section 1339(b) of the Energy Policy Act of
1992 (42 U.S.C. 13368(b)) shall be removed from the list if,
not later than 3 years after the date of enactment of this
Act, the State takes, or prior to the date of enactment has
taken, any of the actions required for removal from the list
under such section 1339(b).
SEC. 359. LIVINGSTON PARISH MINERAL RIGHTS TRANSFER.
(a) Amendments.--Section 102 of Public Law 102-562 (106
Stat. 4234) is amended--
(1) by striking ``(a) In General.--
(2) by striking ``and subject to the reservation in
subsection (b),''; and
(3) by striking subsection (b).
(b) Implementation of Amendment.--The Secretary of the
Interior shall execute the legal instruments necessary to
effectuate the amendment made by subsection (a)(3).
Subtitle D--Alaska Natural Gas Pipeline
SEC. 371. SHORT TITLE.
This subtitle may be cited as the ``Alaska Natural Gas
Pipeline Act''.
SEC. 372. DEFINITIONS.
In this subtitle:
(1) Alaska natural gas.--The term ``Alaska natural gas''
means natural gas derived from the area of the State of
Alaska lying north of 64 degrees north latitude.
(2) Alaska natural gas transportation project.--The term
``Alaska natural gas transportation project'' means any
natural gas pipeline system that carries Alaska natural gas
to the border between Alaska and Canada (including related
facilities subject to the jurisdiction of the Commission)
that is authorized under--
(A) the Alaska Natural Gas Transportation Act of 1976 (15
U.S.C. 719 et seq.); or
(B) section 373.
(3) Alaska natural gas transportation system.--The term
``Alaska natural gas transportation system'' means the Alaska
natural gas transportation project authorized under the
Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719
et seq.) and designated and described in section 2 of the
President's decision.
(4) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(5) Federal coordinator.--The term ``Federal Coordinator''
means the head of the Office of the Federal Coordinator for
Alaska Natural Gas Transportation Projects established by
section 376(a).
(6) President's decision.--The term ``President's
decision'' means the decision and report to Congress on the
Alaska natural gas transportation system--
(A) issued by the President on September 22, 1977, in
accordance with section 7 of the Alaska Natural Gas
Transportation Act of 1976 (15 U.S.C. 719e); and
(B) approved by Public Law 95-158 (15 U.S.C. 719f note; 91
Stat. 1268).
(7) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(8) State.--The term ``State'' means the State of Alaska.
SEC. 373. ISSUANCE OF CERTIFICATE OF PUBLIC CONVENIENCE AND
NECESSITY.
(a) Authority of the Commission.--Notwithstanding the
Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719
et seq.), the Commission may, in accordance with section 7(c)
of the Natural Gas Act (15 U.S.C. 717f(c)), consider and act
on an application for the issuance of a certificate of public
convenience and necessity authorizing the construction and
operation of an Alaska natural gas transportation project
other than the Alaska natural gas transportation system.
(b) Issuance of Certificate.--
(1) In general.--The Commission shall issue a certificate
of public convenience and necessity
[[Page 29149]]
authorizing the construction and operation of an Alaska
natural gas transportation project under this section if the
applicant has satisfied the requirements of section 7(e) of
the Natural Gas Act (15 U.S.C. 717f(e)).
(2) Considerations.--In considering an application under
this section, the Commission shall presume that--
(A) a public need exists to construct and operate the
proposed Alaska natural gas transportation project; and
(B) sufficient downstream capacity will exist to transport
the Alaska natural gas moving through the project to markets
in the contiguous United States.
(c) Expedited Approval Process.--Not later than 60 days
after the date of issuance of the final environmental impact
statement under section 374 for an Alaska natural gas
transportation project, the Commission shall issue a final
order granting or denying any application for a certificate
of public convenience and necessity for the project under
section 7(c) of the Natural Gas Act (15 U.S.C. 717f(c)) and
this section.
(d) Prohibition of Certain Pipeline Route.--No license,
permit, lease, right-of-way, authorization, or other approval
required under Federal law for the construction of any
pipeline to transport natural gas from land within the
Prudhoe Bay oil and gas lease area may be granted for any
pipeline that follows a route that--
(1) traverses land beneath navigable waters (as defined in
section 2 of the Submerged Lands Act (43 U.S.C. 1301))
beneath, or the adjacent shoreline of, the Beaufort Sea; and
(2) enters Canada at any point north of 68 degrees north
latitude.
(e) Open Season.--
(1) In general.--Not later than 120 days after the date of
enactment of this Act, the Commission shall issue regulations
governing the conduct of open seasons for Alaska natural gas
transportation projects (including procedures for the
allocation of capacity).
(2) Regulations.--The regulations referred to in paragraph
(1) shall--
(A) include the criteria for and timing of any open
seasons;
(B) promote competition in the exploration, development,
and production of Alaska natural gas; and
(C) for any open season for capacity exceeding the initial
capacity, provide the opportunity for the transportation of
natural gas other than from the Prudhoe Bay and Point Thomson
units.
(3) Applicability.--Except in a case in which an expansion
is ordered in accordance with section 375, initial or
expansion capacity on any Alaska natural gas transportation
project shall be allocated in accordance with procedures to
be established by the Commission in regulations issued under
paragraph (1).
(f) Projects in the Contiguous United States.--
(1) In general.--An application for additional or expanded
pipeline facilities that may be required to transport Alaska
natural gas from Canada to markets in the contiguous United
States may be made in accordance with the Natural Gas Act (15
U.S.C. 717a et seq.).
(2) Expansion.--To the extent that a pipeline facility
described in paragraph (1) includes the expansion of any
facility constructed in accordance with the Alaska Natural
Gas Transportation Act of 1976 (15 U.S.C. 719 et seq.), that
Act shall continue to apply.
(g) Study of In-State Needs.--The holder of the certificate
of public convenience and necessity issued, modified, or
amended by the Commission for an Alaska natural gas
transportation project shall demonstrate that the holder has
conducted a study of Alaska in-State needs, including tie-in
points along the Alaska natural gas transportation project
for in-State access.
(h) Alaska Royalty Gas.--
(1) In general.--Except as provided in paragraph (2), the
Commission, on a request by the State and after a hearing,
may provide for reasonable access to the Alaska natural gas
transportation project by the State (or State designee) for
the transportation of royalty gas of the State for the
purpose of meeting local consumption needs within the State.
(2) Exception.--The rates of shippers of subscribed
capacity on an Alaska natural gas transportation project
described in paragraph (1), as in effect as of the date on
which access under that paragraph is granted, shall not be
increased as a result of such access.
(i) Regulations.--The Commission may issue such regulations
as are necessary to carry out this section.
SEC. 374. ENVIRONMENTAL REVIEWS.
(a) Compliance With NEPA.--The issuance of a certificate of
public convenience and necessity authorizing the construction
and operation of any Alaska natural gas transportation
project under section 373 shall be treated as a major Federal
action significantly affecting the quality of the human
environment within the meaning of section 102(2)(C) of the
National Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(C)).
(b) Designation of Lead Agency.--
(1) In general.--The Commission--
(A) shall be the lead agency for purposes of complying with
the National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.); and
(B) shall be responsible for preparing the environmental
impact statement required by section 102(2)(c) of that Act
(42 U.S.C. 4332(2)(c)) with respect to an Alaska natural gas
transportation project under section 373.
(2) Consolidation of statements.--In carrying out paragraph
(1), the Commission shall prepare a single environmental
impact statement, which shall consolidate the environmental
reviews of all Federal agencies considering any aspect of the
Alaska natural gas transportation project covered by the
environmental impact statement.
(c) Other Agencies.--
(1) In general.--Each Federal agency considering an aspect
of the construction and operation of an Alaska natural gas
transportation project under section 373 shall--
(A) cooperate with the Commission; and
(B) comply with deadlines established by the Commission in
the preparation of the environmental impact statement under
this section.
(2) Satisfaction of nepa requirements.--The environmental
impact statement prepared under this section shall be adopted
by each Federal agency described in paragraph (1) in
satisfaction of the responsibilities of the Federal agency
under section 102(2)(C) of the National Environmental Policy
Act of 1969 (42 U.S.C. 4332(2)(C)) with respect to the Alaska
natural gas transportation project covered by the
environmental impact statement.
(d) Expedited Process.--The Commission shall--
(1) not later than 1 year after the Commission determines
that the application under section 373 with respect to an
Alaska natural gas transportation project is complete, issue
a draft environmental impact statement under this section;
and
(2) not later than 180 days after the date of issuance of
the draft environmental impact statement, issue a final
environmental impact statement, unless the Commission for
good cause determines that additional time is needed.
SEC. 375. PIPELINE EXPANSION.
(a) Authority.--With respect to any Alaska natural gas
transportation project, on a request by 1 or more persons and
after giving notice and an opportunity for a hearing, the
Commission may order the expansion of the Alaska natural gas
project if the Commission determines that such an expansion
is required by the present and future public convenience and
necessity.
(b) Responsibilities of Commission.--Before ordering an
expansion under subsection (a), the Commission shall--
(1) approve or establish rates for the expansion service
that are designed to ensure the recovery, on an incremental
or rolled-in basis, of the cost associated with the expansion
(including a reasonable rate of return on investment);
(2) ensure that the rates do not require existing shippers
on the Alaska natural gas transportation project to subsidize
expansion shippers;
(3) find that a proposed shipper will comply with, and the
proposed expansion and the expansion of service will be
undertaken and implemented based on, terms and conditions
consistent with the tariff of the Alaska natural gas
transportation project in effect as of the date of the
expansion;
(4) find that the proposed facilities will not adversely
affect the financial or economic viability of the Alaska
natural gas transportation project;
(5) find that the proposed facilities will not adversely
affect the overall operations of the Alaska natural gas
transportation project;
(6) find that the proposed facilities will not diminish the
contract rights of existing shippers to previously subscribed
certificated capacity;
(7) ensure that all necessary environmental reviews have
been completed; and
(8) find that adequate downstream facilities exist or are
expected to exist to deliver incremental Alaska natural gas
to market.
(c) Requirement for a Firm Transportation Agreement.--Any
order of the Commission issued in accordance with this
section shall be void unless the person requesting the order
executes a firm transportation agreement with the Alaska
natural gas transportation project within such reasonable
period of time as the order may specify.
(d) Limitation.--Nothing in this section expands or
otherwise affects any authority of the Commission with
respect to any natural gas pipeline located outside the
State.
(e) Regulations.--The Commission may issue such regulations
as are necessary to carry out this section.
SEC. 376. FEDERAL COORDINATOR.
(a) Establishment.--There is established, as an independent
office in the executive branch, the Office of the Federal
Coordinator for Alaska Natural Gas Transportation Projects.
(b) Federal Coordinator.--
(1) Appointment.--The Office shall be headed by a Federal
Coordinator for Alaska Natural Gas Transportation Projects,
who shall be appointed by the President, by and with the
advice and consent of the Senate, to serve a term to last
until 1 year following the completion of the project referred
to in section 373.
(2) Compensation.--The Federal Coordinator shall be
compensated at the rate prescribed for level III of the
Executive Schedule (5 U.S.C. 5314).
(c) Duties.--The Federal Coordinator shall be responsible
for--
(1) coordinating the expeditious discharge of all
activities by Federal agencies with respect to an Alaska
natural gas transportation project; and
(2) ensuring the compliance of Federal agencies with the
provisions of this subtitle.
(d) Reviews and Actions of Other Federal Agencies.--
(1) Expedited reviews and actions.--All reviews conducted
and actions taken by any Federal agency relating to an Alaska
natural gas
[[Page 29150]]
transportation project authorized under this section shall be
expedited, in a manner consistent with completion of the
necessary reviews and approvals by the deadlines under this
subtitle.
(2) Prohibition of certain terms and conditions.--No
Federal agency may include in any certificate, right-of-way,
permit, lease, or other authorization issued to an Alaska
natural gas transportation project any term or condition that
may be permitted, but is not required, by any applicable law
if the Federal Coordinator determines that the term or
condition would prevent or impair in any significant respect
the expeditious construction and operation, or an expansion,
of the Alaska natural gas transportation project.
(3) Prohibition of certain actions.--Unless required by
law, no Federal agency shall add to, amend, or abrogate any
certificate, right-of-way, permit, lease, or other
authorization issued to an Alaska natural gas transportation
project if the Federal Coordinator determines that the action
would prevent or impair in any significant respect the
expeditious construction and operation, or an expansion, of
the Alaska natural gas transportation project.
(4) Limitation.--The Federal Coordinator shall not have
authority to--
(A) override--
(i) the implementation or enforcement of regulations issued
by the Commission under section 373; or
(ii) an order by the Commission to expand the project under
section 375; or
(B) impose any terms, conditions, or requirements in
addition to those imposed by the Commission or any agency
with respect to construction and operation, or an expansion
of, the project.
(e) State Coordination.--
(1) In general.--The Federal Coordinator and the State
shall enter into a joint surveillance and monitoring
agreement similar to the agreement in effect during
construction of the Trans-Alaska Pipeline, to be approved by
the President and the Governor of the State, for the purpose
of monitoring the construction of the Alaska natural gas
transportation project.
(2) Primary responsibility.--With respect to an Alaska
natural gas transportation project--
(A) the Federal Government shall have primary surveillance
and monitoring responsibility in areas where the Alaska
natural gas transportation project crosses Federal land or
private land; and
(B) the State government shall have primary surveillance
and monitoring responsibility in areas where the Alaska
natural gas transportation project crosses State land.
(f) Transfer of Federal Inspector Functions and
Authority.--On appointment of the Federal Coordinator by the
President, all of the functions and authority of the Office
of Federal Inspector of Construction for the Alaska Natural
Gas Transportation System vested in the Secretary under
section 3012(b) of the Energy Policy Act of 1992 (15 U.S.C.
719e note; Public Law 102-486), including all functions and
authority described and enumerated in the Reorganization Plan
No. 1 of 1979 (44 Fed. Reg. 33663), Executive Order No. 12142
of June 21, 1979 (44 Fed. Reg. 36927), and section 5 of the
President's decision, shall be transferred to the Federal
Coordinator.
(g) Temporary Authority.--The functions, authorities,
duties, and responsibilities of the Federal Coordinator shall
be vested in the Secretary until the later of the appointment
of the Federal Coordinator by the President, or 18 months
after the date of enactment of this Act.
SEC. 377. JUDICIAL REVIEW.
(a) Exclusive Jurisdiction.--Except for review by the
Supreme Court on writ of certiorari, the United States Court
of Appeals for the District of Columbia Circuit shall have
original and exclusive jurisdiction to determine--
(1) the validity of any final order or action (including a
failure to act) of any Federal agency or officer under this
subtitle;
(2) the constitutionality of any provision of this
subtitle, or any decision made or action taken under this
subtitle; or
(3) the adequacy of any environmental impact statement
prepared under the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.) with respect to any action under
this subtitle.
(b) Deadline for Filing Claim.--A claim arising under this
subtitle may be brought not later than 60 days after the date
of the decision or action giving rise to the claim.
(c) Expedited Consideration.--The United States Court of
Appeals for the District of Columbia Circuit shall set any
action brought under subsection (a) for expedited
consideration, taking into account the national interest of
enhancing national energy security by providing access to the
significant gas reserves in Alaska needed to meet the
anticipated demand for natural gas.
(d) Amendment of the Alaska Natural Gas Transportation Act
of 1976.--Section 10(c) of the Alaska Natural Gas
Transportation Act of 1976 (15 U.S.C. 719h) is amended--
(1) by striking ``(c)(1) A claim'' and inserting the
following:
``(c) Jurisdiction.--
``(1) Special courts.--
``(A) In general.--A claim'';
(2) by striking ``Such court shall have'' and inserting the
following:
``(B) Exclusive jurisdiction.--The Special Court shall
have'';
(3) by inserting after paragraph (1) the following:
``(2) Expedited consideration.--The Special Court shall set
any action brought under this section for expedited
consideration, taking into account the national interest
described in section 2.''; and
(4) in paragraph (3), by striking ``(3) The enactment'' and
inserting the following:
``(3) Environmental impact statements.--The enactment''.
SEC. 378. STATE JURISDICTION OVER IN-STATE DELIVERY OF
NATURAL GAS.
(a) Local Distribution.--Any facility receiving natural gas
from an Alaska natural gas transportation project for
delivery to consumers within the State--
(1) shall be deemed to be a local distribution facility
within the meaning of section 1(b) of the Natural Gas Act (15
U.S.C. 717(b)); and
(2) shall not be subject to the jurisdiction of the
Commission.
(b) Additional Pipelines.--Except as provided in section
373(d), nothing in this subtitle shall preclude or otherwise
affect a future natural gas pipeline that may be constructed
to deliver natural gas to Fairbanks, Anchorage, Matanuska-
Susitna Valley, or the Kenai peninsula or Valdez or any other
site in the State for consumption within or distribution
outside the State.
(c) Rate Coordination.--
(1) In general.--In accordance with the Natural Gas Act (15
U.S.C. 717a et seq.), the Commission shall establish rates
for the transportation of natural gas on any Alaska natural
gas transportation project.
(2) Consultation.--In carrying out paragraph (1), the
Commission, in accordance with section 17(b) of the Natural
Gas Act (15 U.S.C. 717p(b)), shall consult with the State
regarding rates (including rate settlements) applicable to
natural gas transported on and delivered from the Alaska
natural gas transportation project for use within the State.
SEC. 379. STUDY OF ALTERNATIVE MEANS OF CONSTRUCTION.
(a) Requirement of Study.--If no application for the
issuance of a certificate or amended certificate of public
convenience and necessity authorizing the construction and
operation of an Alaska natural gas transportation project has
been filed with the Commission by the date that is 18 months
after the date of enactment of this Act, the Secretary shall
conduct a study of alternative approaches to the construction
and operation of such an Alaska natural gas transportation
project.
(b) Scope of Study.--The study under subsection (a) shall
take into consideration the feasibility of--
(1) establishing a Federal Government corporation to
construct an Alaska natural gas transportation project; and
(2) securing alternative means of providing Federal
financing and ownership (including alternative combinations
of Government and private corporate ownership) of the Alaska
natural gas transportation project.
(c) Consultation.--In conducting the study under subsection
(a), the Secretary shall consult with the Secretary of the
Treasury and the Secretary of the Army (acting through the
Chief of Engineers).
(d) Report.--On completion of any study under subsection
(a), the Secretary shall submit to Congress a report that
describes--
(1) the results of the study; and
(2) any recommendations of the Secretary (including
proposals for legislation to implement the recommendations).
SEC. 380. CLARIFICATION OF ANGTA STATUS AND AUTHORITIES.
(a) Savings Clause.--Nothing in this subtitle affects--
(1) any decision, certificate, permit, right-of-way, lease,
or other authorization issued under section 9 of the Alaska
Natural Gas Transportation Act of 1976 (15 U.S.C. 719g); or
(2) any Presidential finding or waiver issued in accordance
with that Act.
(b) Clarification of Authority to Amend Terms and
Conditions to Meet Current Project Requirements.--Any Federal
agency responsible for granting or issuing any certificate,
permit, right-of-way, lease, or other authorization under
section 9 of the Alaska Natural Gas Transportation Act of
1976 (15 U.S.C. 719g) may add to, amend, or rescind any term
or condition included in the certificate, permit, right-of-
way, lease, or other authorization to meet current project
requirements (including the physical design, facilities, and
tariff specifications), if the addition, amendment, or
rescission--
(1) would not compel any change in the basic nature and
general route of the Alaska natural gas transportation system
as designated and described in section 2 of the President's
decision; or
(2) would not otherwise prevent or impair in any
significant respect the expeditious construction and initial
operation of the Alaska natural gas transportation system.
(c) Updated Environmental Reviews.--The Secretary shall
require the sponsor of the Alaska natural gas transportation
system to submit such updated environmental data, reports,
permits, and impact analyses as the Secretary determines are
necessary to develop detailed terms, conditions, and
compliance plans required by section 5 of the President's
decision.
SEC. 381. SENSE OF CONGRESS CONCERNING USE OF STEEL
MANUFACTURED IN NORTH AMERICA NEGOTIATION OF A
PROJECT LABOR AGREEMENT.
It is the sense of Congress that--
(1) an Alaska natural gas transportation project would
provide significant economic benefits to the United States
and Canada; and
[[Page 29151]]
(2) to maximize those benefits, the sponsors of the Alaska
natural gas transportation project should make every effort
to--
(A) use steel that is manufactured in North America; and
(B) negotiate a project labor agreement to expedite
construction of the pipeline.
SEC. 382. SENSE OF CONGRESS AND STUDY CONCERNING
PARTICIPATION BY SMALL BUSINESS CONCERNS.
(a) Definition of Small Business Concern.--In this section,
the term ``small business concern'' has the meaning given the
term in section 3(a) of the Small Business Act (15 U.S.C.
632(a)).
(b) Sense of Congress.--It is the sense of Congress that--
(1) an Alaska natural gas transportation project would
provide significant economic benefits to the United States
and Canada; and
(2) to maximize those benefits, the sponsors of the Alaska
natural gas transportation project should maximize the
participation of small business concerns in contracts and
subcontracts awarded in carrying out the project.
(c) Study.--
(1) In general.--The Comptroller General of the United
States shall conduct a study to determine the extent to which
small business concerns participate in the construction of
oil and gas pipelines in the United States.
(2) Report.--Not later that 1 year after the date of
enactment of this Act, the Comptroller General shall submit
to Congress a report that describes results of the study
under paragraph (1).
(3) Updates.--The Comptroller General shall--
(A) update the study at least once every 5 years until
construction of an Alaska natural gas transportation project
is completed; and
(B) on completion of each update, submit to Congress a
report containing the results of the update.
SEC. 383. ALASKA PIPELINE CONSTRUCTION TRAINING PROGRAM.
(a) Program.--
(1) Establishment.--The Secretary of Labor (in this section
referred to as the ``Secretary'') shall make grants to the
Alaska Workforce Investment Board--
(A) to recruit and train adult and dislocated workers in
Alaska, including Alaska Natives, in the skills required to
construct and operate an Alaska gas pipeline system; and
(B) for the design and construction of a training facility
to be located in Fairbanks, Alaska, to support an Alaska gas
pipeline training program.
(2) Coordination with existing programs.--The training
program established with the grants authorized under
paragraph (1) shall be consistent with the vision and goals
set forth in the State of Alaska Unified Plan, as developed
pursuant to the Workforce Investment Act of 1998 (29 U.S.C.
2801 et seq.).
(b) Requirements for Grants.--The Secretary shall make a
grant under subsection (a) only if--
(1) the Governor of the State of Alaska requests the grant
funds and certifies in writing to the Secretary that there is
a reasonable expectation that the construction of the Alaska
natural gas pipeline system will commence by the date that is
2 years after the date of the certification; and
(2) the Secretary of Energy concurs in writing to the
Secretary with the certification made under paragraph (1)
after considering--
(A) the status of necessary Federal and State permits;
(B) the availability of financing for the Alaska natural
gas pipeline project; and
(C) other relevant factors.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section
$20,000,000. Not more than 15 percent of the funds may be
used for the facility described in subsection (a)(1)(B).
SEC. 384. SENSE OF CONGRESS CONCERNING NATURAL GAS DEMAND.
It is the sense of Congress that--
(1) North American demand for natural gas will increase
dramatically over the course of the next several decades;
(2) both the Alaska Natural Gas Pipeline and the Mackenzie
Delta Natural Gas project in Canada will be necessary to help
meet the increased demand for natural gas in North America;
(3) Federal and State officials should work together with
officials in Canada to ensure both projects can move forward
in a mutually beneficial fashion;
(4) Federal and State officials should acknowledge that the
smaller scope, fewer permitting requirements, and lower cost
of the Mackenzie Delta project means it will most likely be
completed before the Alaska Natural Gas Pipeline;
(5) natural gas production in the 48 contiguous States and
Canada will not be able to meet all domestic demand in the
coming decades; and
(6) as a result, natural gas delivered from Alaskan North
Slope will not displace or reduce the commercial viability of
Canadian natural gas produced from the Mackenzie Delta or
production from the 48 contiguous States.
SEC. 385. SENSE OF CONGRESS CONCERNING ALASKAN OWNERSHIP.
It is the sense of Congress that--
(1) Alaska Native Regional Corporations, companies owned
and operated by Alaskans, and individual Alaskans should have
the opportunity to own shares of the Alaska natural gas
pipeline in a way that promotes economic development for the
State; and
(2) to facilitate economic development in the State, all
project sponsors should negotiate in good faith with any
willing Alaskan person that desires to be involved in the
project.
SEC. 386. LOAN GUARANTEES.
(a) Authority.--(1) The Secretary may enter into agreements
with 1 or more holders of a certificate of public convenience
and necessity issued under section 373(b) of this Act or
section 9 of the Alaska Natural Gas Transportation Act of
1976 (15 U.S.C. 719g) to issue Federal guarantee instruments
with respect to loans and other debt obligations for a
qualified infrastructure project.
(2) Subject to the requirements of this section, the
Secretary may also enter into agreements with 1 or more
owners of the Canadian portion of a qualified infrastructure
project to issue Federal guarantee instruments with respect
to loans and other debt obligations for a qualified
infrastructure project as though such owner were a holder
described in paragraph (1).
(3) The authority of the Secretary to issue Federal
guarantee instruments under this section for a qualified
infrastructure project shall expire on the date that is 2
years after the date on which the final certificate of public
convenience and necessity (including any Canadian
certificates of public convenience and necessity) is issued
for the project. A final certificate shall be considered to
have been issued when all certificates of public convenience
and necessity have been issued that are required for the
initial transportation of commercially economic quantities of
natural gas from Alaska to the continental United States.
(b) Conditions.--(1) The Secretary may issue a Federal
guarantee instrument for a qualified infrastructure project
only after a certificate of public convenience and necessity
under section 373(b) of this Act or an amended certificate
under section 9 of the Alaska Natural Gas Transportation Act
of 1976 (15 U.S.C. 719g) has been issued for the project.
(2) The Secretary may issue a Federal guarantee instrument
under this section for a qualified infrastructure project
only if the loan or other debt obligation guaranteed by the
instrument has been issued by an eligible lender.
(3) The Secretary shall not require as a condition of
issuing a Federal guarantee instrument under this section any
contractual commitment or other form of credit support of the
sponsors (other than equity contribution commitments and
completion guarantees), or any throughput or other guarantee
from prospective shippers greater than such guarantees as
shall be required by the project owners.
(c) Limitations on Amounts.--(1) The amount of loans and
other debt obligations guaranteed under this section for a
qualified infrastructure project shall not exceed 80 percent
of the total capital costs of the project, including interest
during construction.
(2) The principal amount of loans and other debt
obligations guaranteed under this section shall not exceed,
in the aggregate, $18,000,000,000, which amount shall be
indexed for United States dollar inflation from the date of
enactment of this Act, as measured by the Consumer Price
Index.
(d) Loan Terms and Fees.--(1) The Secretary may issue
Federal guarantee instruments under this section that take
into account repayment profiles and grace periods justified
by project cash flows and project-specific considerations.
The term of any loan guaranteed under this section shall not
exceed 30 years.
(2) An eligible lender may assess and collect from the
borrower such other fees and costs associated with the
application and origination of the loan or other debt
obligation as are reasonable and customary for a project
finance transaction in the oil and gas sector.
(e) Regulations.--The Secretary may issue regulations to
carry out this section.
(f) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to cover the
cost of loan guarantees under this section, as defined by
section 502(5) of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a(5)). Such sums shall remain available until
expended.
(g) Definitions.--In this section, the following
definitions apply:
(1) The term ``Consumer Price Index'' means the Consumer
Price Index for all-urban consumers, United States city
average, as published by the Bureau of Labor Statistics, or
if such index shall cease to be published, any successor
index or reasonable substitute thereof.
(2) The term ``eligible lender'' means any non-Federal
qualified institutional buyer (as defined by section
230.144A(a) of title 17, Code of Federal Regulations (or any
successor regulation), known as Rule 144A(a) of the
Securities and Exchange Commission and issued under the
Securities Act of 1933), including--
(A) a qualified retirement plan (as defined in section
4974(c) of the Internal Revenue Code of 1986 (26 U.S.C.
4974(c)) that is a qualified institutional buyer; and
(B) a governmental plan (as defined in section 414(d) of
the Internal Revenue Code of 1986 (26 U.S.C. 414(d)) that is
a qualified institutional buyer.
(3) The term ``Federal guarantee instrument'' means any
guarantee or other pledge by the Secretary to pledge the full
faith and credit of the United States to pay all of the
principal and interest on any loan or other debt obligation
entered into by a holder of a certificate of public
convenience and necessity.
(4) The term ``qualified infrastructure project'' means an
Alaskan natural gas transportation
[[Page 29152]]
project consisting of the design, engineering, finance,
construction, and completion of pipelines and related
transportation and production systems (including gas
treatment plants), and appurtenances thereto, that are used
to transport natural gas from the Alaska North Slope to the
continental United States.
TITLE IV--COAL
Subtitle A--Clean Coal Power Initiative
SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
(a) Clean Coal Power Initiative.--There are authorized to
be appropriated to the Secretary of Energy (referred to in
this title as the ``Secretary'') to carry out the activities
authorized by this subtitle $200,000,000 for each of fiscal
years 2004 through 2012, to remain available until expended.
(b) Report.--The Secretary shall submit to Congress the
report required by this subsection not later than March 31,
2005. The report shall include, with respect to subsection
(a), a 10-year plan containing--
(1) a detailed assessment of whether the aggregate funding
levels provided under subsection (a) are the appropriate
funding levels for that program;
(2) a detailed description of how proposals will be
solicited and evaluated, including a list of all activities
expected to be undertaken;
(3) a detailed list of technical milestones for each coal
and related technology that will be pursued; and
(4) a detailed description of how the program will avoid
problems enumerated in General Accounting Office reports on
the Clean Coal Technology Program, including problems that
have resulted in unspent funds and projects that failed
either financially or scientifically.
SEC. 402. PROJECT CRITERIA.
(a) In General.--The Secretary shall not provide funding
under this subtitle for any project that does not advance
efficiency, environmental performance, and cost
competitiveness well beyond the level of technologies that
are in commercial service or have been demonstrated on a
scale that the Secretary determines is sufficient to
demonstrate that commercial service is viable as of the date
of enactment of this Act.
(b) Technical Criteria for Clean Coal Power Initiative.--
(1) Gasification projects.--
(A) In general.--In allocating the funds made available
under section 401(a), the Secretary shall ensure that at
least 60 percent of the funds are used only for projects on
coal-based gasification technologies, including gasification
combined cycle, gasification fuel cells, gasification
coproduction, and hybrid gasification/combustion.
(B) Technical milestones.--The Secretary shall periodically
set technical milestones specifying the emission and thermal
efficiency levels that coal gasification projects under this
subtitle shall be designed, and reasonably expected, to
achieve. The technical milestones shall become more
restrictive during the life of the program. The Secretary
shall set the periodic milestones so as to achieve by 2020
coal gasification projects able--
(i) to remove 99 percent of sulfur dioxide;
(ii) to emit not more than .05 lbs of NOx per
million Btu;
(iii) to achieve substantial reductions in mercury
emissions; and
(iv) to achieve a thermal efficiency of--
(I) 60 percent for coal of more than 9,000 Btu;
(II) 59 percent for coal of 7,000 to 9,000 Btu; and
(III) 50 percent for coal of less than 7,000 Btu.
(2) Other projects.--The Secretary shall periodically set
technical milestones and ensure that up to 40 percent of the
funds appropriated pursuant to section 401(a) are used for
projects not described in paragraph (1). The milestones shall
specify the emission and thermal efficiency levels that
projects funded under this paragraph shall be designed to and
reasonably expected to achieve. The technical milestones
shall become more restrictive during the life of the program.
The Secretary shall set the periodic milestones so as to
achieve by 2010 projects able--
(A) to remove 97 percent of sulfur dioxide;
(B) to emit no more than .08 lbs of NOx per
million Btu;
(C) to achieve substantial reductions in mercury emissions;
and
(D) to achieve a thermal efficiency of--
(i) 45 percent for coal of more than 9,000 Btu;
(ii) 44 percent for coal of 7,000 to 9,000 Btu; and
(iii) 40 percent for coal of less than 7,000 Btu.
(3) Consultation.--Before setting the technical milestones
under paragraphs (1)(B) and (2), the Secretary shall consult
with the Administrator of the Environmental Protection Agency
and interested entities, including coal producers, industries
using coal, organizations to promote coal or advanced coal
technologies, environmental organizations, and organizations
representing workers.
(4) Existing units.--In the case of projects at units in
existence on the date of enactment of this Act, in lieu of
the thermal efficiency requirements set forth in paragraph
(1)(B)(iv) and (2)(D), the milestones shall be designed to
achieve an overall thermal design efficiency improvement,
compared to the efficiency of the unit as operated, of not
less than--
(A) 7 percent for coal of more than 9,000 Btu;
(B) 6 percent for coal of 7,000 to 9,000 Btu; or
(C) 4 percent for coal of less than 7,000 Btu.
(5) Permitted uses.--In carrying out this subtitle, the
Secretary may fund projects that include, as part of the
project, the separation and capture of carbon dioxide.
(c) Financial Criteria.--The Secretary shall not provide a
funding award under this subtitle unless the recipient
documents to the satisfaction of the Secretary that--
(1) the award recipient is financially viable without the
receipt of additional Federal funding;
(2) the recipient will provide sufficient information to
the Secretary to enable the Secretary to ensure that the
award funds are spent efficiently and effectively; and
(3) a market exists for the technology being demonstrated
or applied, as evidenced by statements of interest in writing
from potential purchasers of the technology.
(d) Financial Assistance.--The Secretary shall provide
financial assistance to projects that meet the requirements
of subsections (a), (b), and (c) and are likely to--
(1) achieve overall cost reductions in the utilization of
coal to generate useful forms of energy;
(2) improve the competitiveness of coal among various forms
of energy in order to maintain a diversity of fuel choices in
the United States to meet electricity generation
requirements; and
(3) demonstrate methods and equipment that are applicable
to 25 percent of the electricity generating facilities, using
various types of coal, that use coal as the primary feedstock
as of the date of enactment of this Act.
(e) Federal Share.--The Federal share of the cost of a coal
or related technology project funded by the Secretary under
this subtitle shall not exceed 50 percent.
(f) Applicability.--No technology, or level of emission
reduction, shall be treated as adequately demonstrated for
purposes of section 111 of the Clean Air Act (42 U.S.C.
7411), achievable for purposes of section 169 of that Act (42
U.S.C. 7479), or achievable in practice for purposes of
section 171 of that Act (42 U.S.C. 7501) solely by reason of
the use of such technology, or the achievement of such
emission reduction, by 1 or more facilities receiving
assistance under this subtitle.
SEC. 403. REPORT.
Not later than 1 year after the date of enactment of this
Act, and once every 2 years thereafter through 2012, the
Secretary, in consultation with other appropriate Federal
agencies, shall submit to Congress a report describing--
(1) the technical milestones set forth in section 402 and
how those milestones ensure progress toward meeting the
requirements of subsections (b)(1)(B) and (b)(2) of section
402; and
(2) the status of projects funded under this subtitle.
SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE.
As part of the program authorized in section 401, the
Secretary shall award competitive, merit-based grants to
universities for the establishment of Centers of Excellence
for Energy Systems of the Future. The Secretary shall provide
grants to universities that show the greatest potential for
advancing new clean coal technologies.
Subtitle B--Clean Power Projects
SEC. 411. COAL TECHNOLOGY LOAN.
There are authorized to be appropriated to the Secretary
$125,000,000 to provide a loan to the owner of the
experimental plant constructed under United States Department
of Energy cooperative agreement number DE-FC-22-91PC90544 on
such terms and conditions as the Secretary determines,
including interest rates and upfront payments.
SEC. 412. COAL GASIFICATION.
The Secretary is authorized to provide loan guarantees for
a project to produce energy from a plant using integrated
gasification combined cycle technology of at least 400
megawatts in capacity that produces power at competitive
rates in deregulated energy generation markets and that does
not receive any subsidy (direct or indirect) from ratepayers.
SEC. 413. INTEGRATED GASIFICATION COMBINED CYCLE TECHNOLOGY.
The Secretary is authorized to provide loan guarantees for
a project to produce energy from a plant using integrated
gasification combined cycle technology located in a taconite-
producing region of the United States that is entitled under
the law of the State in which the plant is located to enter
into a long-term contract approved by a State Public Utility
Commission to sell at least 450 megawatts of output to a
utility.
SEC. 414. PETROLEUM COKE GASIFICATION.
The Secretary is authorized to provide loan guarantees for
at least 1 petroleum coke gasification polygeneration
project.
SEC. 415. INTEGRATED COAL/RENEWABLE ENERGY SYSTEM.
The Secretary is authorized, subject to the availability of
appropriations, to provide loan guarantees for a project to
produce energy from coal of less than 7000 btu/lb using
appropriate advanced integrated gasification combined cycle
technology, including repowering of existing facilities, that
is combined with wind and other renewable sources, minimizes
and offers the potential to sequester carbon dioxide
emissions, and provides a ready source of hydrogen for near-
site fuel cell demonstrations. The facility may be built in
stages, combined output shall be at least 200 megawatts at
successively more competitive rates, and the facility shall
be located in the Upper Great Plains. Section 402(b)
technical criteria apply, and the Federal cost share shall
not exceed 50 percent. The loan guarantees provided under
this section do not preclude the facility from receiving an
allocation for investment tax credits under section 48A of
the Internal Revenue Code of 1986. Utilizing this investment
tax credit does not prohibit the use of other Clean Coal
Program funding.
[[Page 29153]]
SEC. 416. ELECTRON SCRUBBING DEMONSTRATION.
The Secretary shall use $5,000,000 from amounts
appropriated to initiate, through the Chicago Operations
Office, a project to demonstrate the viability of high-energy
electron scrubbing technology on commercial-scale electrical
generation using high-sulfur coal.
Subtitle C--Federal Coal Leases
SEC. 421. REPEAL OF THE 160-ACRE LIMITATION FOR COAL LEASES.
Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is
amended--
(1) in the first sentence--
(A) by striking ``Any person'' and inserting ``(a) Any
person'';
(B) by inserting a comma after ``may''; and
(C) by striking ``upon'' and all that follows through the
period and inserting the following: ``upon a finding by the
Secretary that the lease--
``(1) would be in the interest of the United States;
``(2) would not displace a competitive interest in the
land; and
``(3) would not include land or deposits that can be
developed as part of another potential or existing operation;
secure modifications of the original coal lease by including
additional coal land or coal deposits contiguous or cornering
to those embraced in the lease, but in no event shall the
total area added by any modifications to an existing coal
lease exceed 1280 acres, or add acreage larger than the
acreage in the original lease.'';
(2) in the second sentence, by striking ``The Secretary''
and inserting the following:
``(b) The Secretary''; and
(3) in the third sentence, by striking ``The minimum'' and
inserting the following:
``(c) The minimum''.
SEC. 422. MINING PLANS.
Section 2(d)(2) of the Mineral Leasing Act (30 U.S.C.
202a(2)) is amended--
(1) by inserting ``(A)'' after ``(2)''; and
(2) by adding at the end the following:
``(B) The Secretary may establish a period of more than 40
years if the Secretary determines that the longer period--
``(i) will ensure the maximum economic recovery of a coal
deposit; or
``(ii) the longer period is in the interest of the orderly,
efficient, or economic development of a coal resource.''.
SEC. 423. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.
Section 7(b) of the Mineral Leasing Act (30 U.S.C. 207(b))
is amended to read as follows:
``(b)(1) Each lease shall be subjected to the condition of
diligent development and continued operation of the mine or
mines, except in a case in which operations under the lease
are interrupted by strikes, the elements, or casualties not
attributable to the lessee.
``(2)(A) The Secretary of the Interior may suspend the
condition of continued operation upon the payment of advance
royalties, if the Secretary determines that the public
interest will be served by the suspension.
``(B) Advance royalties required under subparagraph (A)
shall be computed based on--
``(i) the average price for coal sold in the spot market
from the same region during the last month of each applicable
continued operation year; or
``(ii) by using other methods established by the Secretary
of the Interior to capture the commercial value of coal,
and based on commercial quantities, as defined by regulation
by the Secretary of the Interior.
``(C) The aggregate number of years during the initial and
any extended term of any lease for which advance royalties
may be accepted in lieu of the condition of continued
operation shall not exceed 20.
``(3) The amount of any production royalty paid for any
year shall be reduced (but not below 0) by the amount of any
advance royalties paid under the lease, to the extent that
the advance royalties have not been used to reduce production
royalties for a prior year.
``(4) The Secretary may, upon 6 months' notice to a lessee,
cease to accept advance royalties in lieu of the requirement
of continued operation.
``(5) Nothing in this subsection affects the requirement
contained in the second sentence of subsection (a) relating
to commencement of production at the end of 10 years.''.
SEC. 424. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL
LEASE OPERATION AND RECLAMATION PLAN.
Section 7(c) of the Mineral Leasing Act (30 U.S.C. 207(c))
is amended in the first sentence by striking ``and not later
than three years after a lease is issued,''.
SEC. 425. AMENDMENT RELATING TO FINANCIAL ASSURANCES WITH
RESPECT TO BONUS BIDS.
Section 2(a) of the Mineral Leasing Act (30 U.S.C. 201(a))
is amended by adding at the end the following:
``(4)(A) The Secretary shall not require a surety bond or
any other financial assurance to guarantee payment of
deferred bonus bid installments with respect to any coal
lease issued on a cash bonus bid to a lessee or successor in
interest having a history of a timely payment of noncontested
coal royalties and advanced coal royalties in lieu of
production (where applicable) and bonus bid installment
payments.
``(B) The Secretary may waive any requirement that a lessee
provide a surety bond or other financial assurance for a coal
lease issued before the date of the enactment of the Energy
Policy Act of 2003 only if the Secretary determines that the
lessee has a history of making timely payments referred to in
subparagraph (A).
``(5) Notwithstanding any other provision of law, if the
lessee under a coal lease fails to pay any installment of a
deferred cash bonus bid within 10 days after the Secretary
provides written notice that payment of the installment is
past due--
``(A) the lease shall automatically terminate; and
``(B) any bonus payments already made to the United States
with respect to the lease shall not be returned to the lessee
or credited in any future lease sale.''.
SEC. 426. INVENTORY REQUIREMENT.
(a) Review of Assessments.--
(1) In general.--The Secretary of the Interior, in
consultation with the Secretary of Agriculture and the
Secretary, shall review coal assessments and other available
data to identify--
(A) public lands, other than National Park lands, with coal
resources;
(B) the extent and nature of any restrictions or
impediments to the development of coal resources on public
lands identified under subparagraph (A); and
(C) with respect to areas of such lands for which
sufficient data exists, resources of compliant coal and
supercompliant coal.
(2) Definitions.--In this subsection:
(A) Compliant coal.--The term ``compliant coal'' means coal
that contains not less than 1.0 and not more than 1.2 pounds
of sulfur dioxide per million Btu.
(B) Supercompliant coal.--The term ``supercompliant coal''
means coal that contains less than 1.0 pounds of sulfur
dioxide per million Btu.
(b) Completion and Updating of the Inventory.--The
Secretary of the Interior--
(1) shall complete the inventory under subsection (a)(1) by
not later than 2 years after the date of the enactment of
this Act; and
(2) shall update the inventory as the availability of data
and developments in technology warrant.
(c) Report.--The Secretary of the Interior shall submit to
Congress, and make publicly available--
(1) a report containing the inventory under this section by
not later than 2 years after the effective date of this
section; and
(2) each update of that inventory.
SEC. 427. APPLICATION OF AMENDMENTS.
The amendments made by this subtitle apply--
(1) with respect to any coal lease issued on or after the
date of enactment of this Act; and
(2) with respect to any coal lease issued before the date
of enactment of this Act, upon the earlier of--
(A) the date of readjustment of the lease as provided for
by section 7(a) of the Mineral Leasing Act (30 U.S.C.
207(a)); or
(B) the date the lessee requests such application.
Subtitle D--Coal and Related Programs
SEC. 441. CLEAN AIR COAL PROGRAM.
(a) Amendment.--The Energy Policy Act of 1992 is amended by
adding the following new title at the end thereof:
``TITLE XXXI--CLEAN AIR COAL PROGRAM
``SEC. 3101. FINDINGS; PURPOSES; DEFINITIONS.
``(a) Findings.--The Congress finds that--
``(1) new environmental regulations present additional
challenges for coal-fired electrical generation in the
private marketplace; and
``(2) the Department of Energy, in cooperation with
industry, has already fully developed and commercialized
several new clean-coal technologies that will allow the clean
use of coal.
``(b) Purposes.--The purposes of this title are to--
``(1) promote national energy policy and energy security,
diversity, and economic competitiveness benefits that result
from the increased use of coal;
``(2) mitigate financial risks, reduce the cost, and
increase the marketplace acceptance of the new clean coal
technologies; and
``(3) advance the deployment of pollution control equipment
to meet the current and future obligations of coal-fired
generation units regulated under the Clean Air Act (42 U.S.C.
7402 and following).
``SEC. 3102. AUTHORIZATION OF PROGRAM.
``The Secretary shall carry out a program to facilitate
production and generation of coal-based power and the
installation of pollution control equipment.
``SEC. 3103. AUTHORIZATION OF APPROPRIATIONS.
``(a) Pollution Control Projects.--There are authorized to
be appropriated to the Secretary $300,000,000 for fiscal year
2005, $100,000,000 for fiscal year 2006, $40,000,000 for
fiscal year 2007, $30,000,000 for fiscal year 2008, and
$30,000,000 for fiscal year 2009, to remain available until
expended, for carrying out the program for pollution control
projects, which may include--
``(1) pollution control equipment and processes for the
control of mercury air emissions;
``(2) pollution control equipment and processes for the
control of nitrogen dioxide air emissions or sulfur dioxide
emissions;
``(3) pollution control equipment and processes for the
mitigation or collection of more than one pollutant;
``(4) advanced combustion technology for the control of at
least two pollutants, including mercury, particulate matter,
nitrogen oxides, and sulfur dioxide, which may also be
designed to improve the energy efficiency of the unit; and
[[Page 29154]]
``(5) advanced pollution control equipment and processes
designed to allow use of the waste byproducts or other
byproducts of the equipment or an electrical generation unit
designed to allow the use of byproducts.
Funds appropriated under this subsection which are not
awarded before fiscal year 2011 may be applied to projects
under subsection (b), in addition to amounts authorized under
subsection (b).
``(b) Generation Projects.--There are authorized to be
appropriated to the Secretary $150,000,000 for fiscal year
2006, $250,000,000 for each of the fiscal years 2007 through
2011, and $100,000,000 for fiscal year 2012, to remain
available until expended, for generation projects and air
pollution control projects. Such projects may include--
``(1) coal-based electrical generation equipment and
processes, including gasification combined cycle or other
coal-based generation equipment and processes;
``(2) associated environmental control equipment, that will
be cost-effective and that is designed to meet anticipated
regulatory requirements;
``(3) coal-based electrical generation equipment and
processes, including gasification fuel cells, gasification
coproduction, and hybrid gasification/combustion projects;
and
``(4) advanced coal-based electrical generation equipment
and processes, including oxidation combustion techniques,
ultra-supercritical boilers, and chemical looping, which the
Secretary determines will be cost-effective and could
substantially contribute to meeting anticipated environmental
or energy needs.
``(c) Limitation.--Funds placed at risk during any fiscal
year for Federal loans or loan guarantees pursuant to this
title may not exceed 30 percent of the total funds obligated
under this title.
``SEC. 3104. AIR POLLUTION CONTROL PROJECT CRITERIA.
``The Secretary shall pursuant to authorizations contained
in section 3103 provide funding for air pollution control
projects designed to facilitate compliance with Federal and
State environmental regulations, including any regulation
that may be established with respect to mercury.
``SEC. 3105. CRITERIA FOR GENERATION PROJECTS.
``(a) Criteria.--The Secretary shall establish criteria on
which selection of individual projects described in section
3103(b) should be based. The Secretary may modify the
criteria as appropriate to reflect improvements in equipment,
except that the criteria shall not be modified to be less
stringent. These selection criteria shall include--
``(1) prioritization of projects whose installation is
likely to result in significant air quality improvements in
nonattainment air quality areas;
``(2) prioritization of projects that result in the
repowering or replacement of older, less efficient units;
``(3) documented broad interest in the procurement of the
equipment and utilization of the processes used in the
projects by electrical generator owners or operators;
``(4) equipment and processes beginning in 2005 through
2010 that are projected to achieve an thermal efficiency of--
``(A) 40 percent for coal of more than 9,000 Btu per pound
based on higher heating values;
``(B) 38 percent for coal of 7,000 to 9,000 Btu per pound
based on higher heating values; and
``(C) 36 percent for coal of less than 7,000 Btu per pound
based on higher heating values,
except that energy used for coproduction or cogeneration
shall not be counted in calculating the thermal efficiency
under this paragraph; and
``(5) equipment and processes beginning in 2011 and 2012
that are projected to achieve an thermal efficiency of--
``(A) 45 percent for coal of more than 9,000 Btu per pound
based on higher heating values;
``(B) 44 percent for coal of 7,000 to 9,000 Btu per pound
based on higher heating values; and
``(C) 40 percent for coal of less than 7,000 Btu per pound
based on higher heating values,
except that energy used for coproduction or cogeneration
shall not be counted in calculating the thermal efficiency
under this paragraph.
``(b) Selection.--(1) In selecting the projects, up to 25
percent of the projects selected may be either coproduction
or cogeneration or other gasification projects, but at least
25 percent of the projects shall be for the sole purpose of
electrical generation, and priority should be given to
equipment and projects less than 600 MW to foster and promote
standard designs.
``(2) The Secretary shall give priority to projects that
have been developed and demonstrated that are not yet cost
competitive, and for coal energy generation projects that
advance efficiency, environmental performance, or cost
competitiveness significantly beyond the level of pollution
control equipment that is in operation on a full scale.
``SEC. 3106. FINANCIAL CRITERIA.
``(a) In General.--The Secretary shall only provide
financial assistance to projects that meet the requirements
of sections 3103 and 3104 and are likely to--
``(1) achieve overall cost reductions in the utilization of
coal to generate useful forms of energy; and
``(2) improve the competitiveness of coal in order to
maintain a diversity of domestic fuel choices in the United
States to meet electricity generation requirements.
``(b) Conditions.--The Secretary shall not provide a
funding award under this title unless--
``(1) the award recipient is financially viable without the
receipt of additional Federal funding; and
``(2) the recipient provides sufficient information to the
Secretary for the Secretary to ensure that the award funds
are spent efficiently and effectively.
``(c) Equal Access.--The Secretary shall, to the extent
practical, utilize cooperative agreement, loan guarantee, and
direct Federal loan mechanisms designed to ensure that all
electrical generation owners have equal access to these
technology deployment incentives. The Secretary shall develop
and direct a competitive solicitation process for the
selection of technologies and projects under this title.
``SEC. 3107. FEDERAL SHARE.
``The Federal share of the cost of a coal or related
technology project funded by the Secretary under this title
shall not exceed 50 percent. For purposes of this title,
Federal funding includes only appropriated funds.
``SEC. 3108. APPLICABILITY.
``No technology, or level of emission reduction, shall be
treated as adequately demonstrated for purposes of section
111 of the Clean Air Act (42 U.S.C. 7411), achievable for
purposes of section 169 of the Clean Air Act (42 U.S.C.
7479), or achievable in practice for purposes of section 171
of the Clean Air Act (42 U.S.C. 7501) solely by reason of the
use of such technology, or the achievement of such emission
reduction, by one or more facilities receiving assistance
under this title.''.
(b) Table of Contents Amendment.--The table of contents of
the Energy Policy Act of 1992 is amended by adding at the end
the following:
``TITLE XXXI--CLEAN AIR COAL PROGRAM
``Sec. 3101. Findings; purposes; definitions.
``Sec. 3102. Authorization of program.
``Sec. 3103. Authorization of appropriations.
``Sec. 3104. Air pollution control project criteria.
``Sec. 3105. Criteria for generation projects.
``Sec. 3106. Financial criteria.
``Sec. 3107. Federal share.
``Sec. 3108. Applicability.''.
TITLE V--INDIAN ENERGY
SEC. 501. SHORT TITLE.
This title may be cited as the ``Indian Tribal Energy
Development and Self-Determination Act of 2003''.
SEC. 502. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.
(a) In General.--Title II of the Department of Energy
Organization Act (42 U.S.C. 7131 et seq.) is amended by
adding at the end the following:
``office of indian energy policy and programs
``Sec. 217. (a) Establishment.--There is established within
the Department an Office of Indian Energy Policy and Programs
(referred to in this section as the `Office'). The Office
shall be headed by a Director, who shall be appointed by the
Secretary and compensated at a rate equal to that of level IV
of the Executive Schedule under section 5315 of title 5,
United States Code.
``(b) Duties of Director.--The Director, in accordance with
Federal policies promoting Indian self-determination and the
purposes of this Act, shall provide, direct, foster,
coordinate, and implement energy planning, education,
management, conservation, and delivery programs of the
Department that--
``(1) promote Indian tribal energy development, efficiency,
and use;
``(2) reduce or stabilize energy costs;
``(3) enhance and strengthen Indian tribal energy and
economic infrastructure relating to natural resource
development and electrification; and
``(4) bring electrical power and service to Indian land and
the homes of tribal members located on Indian lands or
acquired, constructed, or improved (in whole or in part) with
Federal funds.''.
(b) Conforming Amendments.--
(1) The table of contents of the Department of Energy
Organization Act (42 U.S.C. prec. 7101) is amended--
(A) in the item relating to section 209, by striking
``Section'' and inserting ``Sec.''; and
(B) by striking the items relating to sections 213 through
216 and inserting the following:
``Sec. 213. Establishment of policy for National Nuclear Security
Administration.
``Sec. 214. Establishment of security, counterintelligence, and
intelligence policies.
``Sec. 215. Office of Counterintelligence.
``Sec. 216. Office of Intelligence.
``Sec. 217. Office of Indian Energy Policy and Programs.''.
(2) Section 5315 of title 5, United States Code, is amended
by inserting ``Director, Office of Indian Energy Policy and
Programs, Department of Energy.'' after ``Inspector General,
Department of Energy.''.
SEC. 503. INDIAN ENERGY.
(a) In General.--Title XXVI of the Energy Policy Act of
1992 (25 U.S.C. 3501 et seq.) is amended to read as follows:
``TITLE XXVI--INDIAN ENERGY
``SEC. 2601. DEFINITIONS.
``For purposes of this title:
``(1) The term `Director' means the Director of the Office
of Indian Energy Policy and Programs, Department of Energy.
``(2) The term `Indian land' means--
``(A) any land located within the boundaries of an Indian
reservation, pueblo, or rancheria;
[[Page 29155]]
``(B) any land not located within the boundaries of an
Indian reservation, pueblo, or rancheria, the title to which
is held--
``(i) in trust by the United States for the benefit of an
Indian tribe or an individual Indian;
``(ii) by an Indian tribe or an individual Indian, subject
to restriction against alienation under laws of the United
States; or
``(iii) by a dependent Indian community; and
``(C) land that is owned by an Indian tribe and was
conveyed by the United States to a Native Corporation
pursuant to the Alaska Native Claims Settlement Act (43
U.S.C. 1601 et seq.), or that was conveyed by the United
States to a Native Corporation in exchange for such land.
``(3) The term `Indian reservation' includes--
``(A) an Indian reservation in existence in any State or
States as of the date of enactment of this paragraph;
``(B) a public domain Indian allotment; and
``(C) a dependent Indian community located within the
borders of the United States, regardless of whether the
community is located--
``(i) on original or acquired territory of the community;
or
``(ii) within or outside the boundaries of any particular
State.
``(4) The term `Indian tribe' has the meaning given the
term in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b), except that the
term `Indian tribe', for the purpose of paragraph (11) and
sections 2603(b)(3) and 2604, shall not include any Native
Corporation.
``(5) The term `integration of energy resources' means any
project or activity that promotes the location and operation
of a facility (including any pipeline, gathering system,
transportation system or facility, or electric transmission
or distribution facility) on or near Indian land to process,
refine, generate electricity from, or otherwise develop
energy resources on, Indian land.
``(6) The term `Native Corporation' has the meaning given
the term in section 3 of the Alaska Native Claims Settlement
Act (43 U.S.C. 1602).
``(7) The term `organization' means a partnership, joint
venture, limited liability company, or other unincorporated
association or entity that is established to develop Indian
energy resources.
``(8) The term `Program' means the Indian energy resource
development program established under section 2602(a).
``(9) The term `Secretary' means the Secretary of the
Interior.
``(10) The term `tribal energy resource development
organization' means an organization of 2 or more entities, at
least 1 of which is an Indian tribe, that has the written
consent of the governing bodies of all Indian tribes
participating in the organization to apply for a grant, loan,
or other assistance authorized by section 2602.
``(11) The term `tribal land' means any land or interests
in land owned by any Indian tribe, title to which is held in
trust by the United States or which is subject to a
restriction against alienation under laws of the United
States.
``SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOPMENT.
``(a) Department of the Interior Program.--
``(1) To assist Indian tribes in the development of energy
resources and further the goal of Indian self-determination,
the Secretary shall establish and implement an Indian energy
resource development program to assist consenting Indian
tribes and tribal energy resource development organizations
in achieving the purposes of this title.
``(2) In carrying out the Program, the Secretary shall--
``(A) provide development grants to Indian tribes and
tribal energy resource development organizations for use in
developing or obtaining the managerial and technical capacity
needed to develop energy resources on Indian land, and to
properly account for resulting energy production and
revenues;
``(B) provide grants to Indian tribes and tribal energy
resource development organizations for use in carrying out
projects to promote the integration of energy resources, and
to process, use, or develop those energy resources, on Indian
land; and
``(C) provide low-interest loans to Indian tribes and
tribal energy resource development organizations for use in
the promotion of energy resource development on Indian land
and integration of energy resources.
``(3) There are authorized to be appropriated to carry out
this subsection such sums as are necessary for each of fiscal
years 2004 through 2014.
``(b) Department of Energy Indian Energy Education Planning
and Management Assistance Program.--
``(1) The Director shall establish programs to assist
consenting Indian tribes in meeting energy education,
research and development, planning, and management needs.
``(2) In carrying out this subsection, the Director may
provide grants, on a competitive basis, to an Indian tribe or
tribal energy resource development organization for use in
carrying out--
``(A) energy, energy efficiency, and energy conservation
programs;
``(B) studies and other activities supporting tribal
acquisitions of energy supplies, services, and facilities;
``(C) planning, construction, development, operation,
maintenance, and improvement of tribal electrical generation,
transmission, and distribution facilities located on Indian
land; and
``(D) development, construction, and interconnection of
electric power transmission facilities located on Indian land
with other electric transmission facilities.
``(3)(A) The Director may develop, in consultation with
Indian tribes, a formula for providing grants under this
subsection.
``(B) In providing a grant under this subsection, the
Director shall give priority to an application received from
an Indian tribe with inadequate electric service (as
determined by the Director).
``(4) The Secretary of Energy may issue such regulations as
necessary to carry out this subsection.
``(5) There are authorized to be appropriated to carry out
this subsection $20,000,000 for each of fiscal years 2004
through 2014.
``(c) Department of Energy Loan Guarantee Program.--
``(1) Subject to paragraph (3), the Secretary of Energy may
provide loan guarantees (as defined in section 502 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) for not
more than 90 percent of the unpaid principal and interest due
on any loan made to any Indian tribe for energy development.
``(2) A loan guarantee under this subsection shall be made
by--
``(A) a financial institution subject to examination by the
Secretary of Energy; or
``(B) an Indian tribe, from funds of the Indian tribe.
``(3) The aggregate outstanding amount guaranteed by the
Secretary of Energy at any time under this subsection shall
not exceed $2,000,000,000.
``(4) The Secretary of Energy may issue such regulations as
the Secretary of Energy determines are necessary to carry out
this subsection.
``(5) There are authorized to be appropriated such sums as
are necessary to carry out this subsection, to remain
available until expended.
``(6) Not later than 1 year from the date of enactment of
this section, the Secretary of Energy shall report to
Congress on the financing requirements of Indian tribes for
energy development on Indian land.
``(d) Federal Agencies-Indian Energy Preference.--
``(1) In purchasing electricity or any other energy product
or byproduct, a Federal agency or department may give
preference to an energy and resource production enterprise,
partnership, consortium, corporation, or other type of
business organization the majority of the interest in which
is owned and controlled by 1 or more Indian tribes.
``(2) In carrying out this subsection, a Federal agency or
department shall not--
``(A) pay more than the prevailing market price for an
energy product or byproduct; or
``(B) obtain less than prevailing market terms and
conditions.
``SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULATION.
``(a) Grants.--The Secretary may provide to Indian tribes,
on an annual basis, grants for use in accordance with
subsection (b).
``(b) Use of Funds.--Funds from a grant provided under this
section may be used--
``(1) by an Indian tribe for the development of a tribal
energy resource inventory or tribal energy resource on Indian
land;
``(2) by an Indian tribe for the development of a
feasibility study or other report necessary to the
development of energy resources on Indian land;
``(3) by an Indian tribe (other than an Indian Tribe in
Alaska except the Metlakatla Indian Community) for the
development and enforcement of tribal laws (including
regulations) relating to tribal energy resource development
and the development of technical infrastructure to protect
the environment under applicable law; or
``(4) by a Native Corporation for the development and
implementation of corporate policies and the development of
technical infrastructure to protect the environment under
applicable law; and
``(5) by an Indian tribe for the training of employees
that--
``(A) are engaged in the development of energy resources on
Indian land; or
``(B) are responsible for protecting the environment.
``(c) Other Assistance.--In carrying out the obligations of
the United States under this title, the Secretary shall
ensure, to the maximum extent practicable and to the extent
of available resources, that upon the request of an Indian
tribe, the Indian tribe shall have available scientific and
technical information and expertise, for use in the Indian
tribe's regulation, development, and management of energy
resources on Indian land. The Secretary may fulfill this
responsibility either directly, through the use of Federal
officials, or indirectly, by providing financial assistance
to the Indian tribe to secure independent assistance.
``SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS-OF-WAY
INVOLVING ENERGY DEVELOPMENT OR TRANSMISSION.
``(a) Leases and Business Agreements.--Subject to the
provisions of this section--
``(1) an Indian tribe may, at its discretion, enter into a
lease or business agreement for the purpose of energy
resource development on tribal land, including a lease or
business agreement for--
``(A) exploration for, extraction of, processing of, or
other development of the Indian tribe's energy mineral
resources located on tribal land; and
``(B) construction or operation of an electric generation,
transmission, or distribution facility
[[Page 29156]]
located on tribal land or a facility to process or refine
energy resources developed on tribal land; and
``(2) such lease or business agreement described in
paragraph (1) shall not require the approval of the Secretary
under section 2103 of the Revised Statutes (25 U.S.C. 81) or
any other provision of law, if--
``(A) the lease or business agreement is executed pursuant
to a tribal energy resource agreement approved by the
Secretary under subsection (e);
``(B) the term of the lease or business agreement does not
exceed--
``(i) 30 years; or
``(ii) in the case of a lease for the production of oil
resources, gas resources, or both, 10 years and as long
thereafter as oil or gas is produced in paying quantities;
and
``(C) the Indian tribe has entered into a tribal energy
resource agreement with the Secretary, as described in
subsection (e), relating to the development of energy
resources on tribal land (including the periodic review and
evaluation of the activities of the Indian tribe under the
agreement, to be conducted pursuant to the provisions
required by subsection (e)(2)(D)(i)).
``(b) Rights-of-Way for Pipelines or Electric Transmission
or Distribution Lines.--An Indian tribe may grant a right-of-
way over tribal land for a pipeline or an electric
transmission or distribution line without approval by the
Secretary if--
``(1) the right-of-way is executed in accordance with a
tribal energy resource agreement approved by the Secretary
under subsection (e);
``(2) the term of the right-of-way does not exceed 30
years;
``(3) the pipeline or electric transmission or distribution
line serves--
``(A) an electric generation, transmission, or distribution
facility located on tribal land; or
``(B) a facility located on tribal land that processes or
refines energy resources developed on tribal land; and
``(4) the Indian tribe has entered into a tribal energy
resource agreement with the Secretary, as described in
subsection (e), relating to the development of energy
resources on tribal land (including the periodic review and
evaluation of the Indian tribe's activities under such
agreement described in subparagraphs (D) and (E) of
subsection (e)(2)).
``(c) Renewals.--A lease or business agreement entered into
or a right-of-way granted by an Indian tribe under this
section may be renewed at the discretion of the Indian tribe
in accordance with this section.
``(d) Validity.--No lease, business agreement, or right-of-
way relating to the development of tribal energy resources
pursuant to the provisions of this section shall be valid
unless the lease, business agreement, or right-of-way is
authorized by the provisions of a tribal energy resource
agreement approved by the Secretary under subsection (e)(2).
``(e) Tribal Energy Resource Agreements.--
``(1) On issuance of regulations under paragraph (8), an
Indian tribe may submit to the Secretary for approval a
tribal energy resource agreement governing leases, business
agreements, and rights-of-way under this section.
``(2)(A) Not later than 180 days after the date on which
the Secretary receives a tribal energy resource agreement
submitted by an Indian tribe under paragraph (1), or not
later than 60 days after the Secretary receives a revised
tribal energy resource agreement submitted by an Indian tribe
under paragraph (4)(C), (or such later date as may be agreed
to by the Secretary and the Indian tribe), the Secretary
shall approve or disapprove the tribal energy resource
agreement.
``(B) The Secretary shall approve a tribal energy resource
agreement submitted under paragraph (1) if--
``(i) the Secretary determines that the Indian tribe has
demonstrated that the Indian tribe has sufficient capacity to
regulate the development of energy resources of the Indian
tribe;
``(ii) the tribal energy resource agreement includes
provisions required under subparagraph (D); and
``(iii) the tribal energy resource agreement includes
provisions that, with respect to a lease, business agreement,
or right-of-way under this section--
``(I) ensure the acquisition of necessary information from
the applicant for the lease, business agreement, or right-of-
way;
``(II) address the term of the lease or business agreement
or the term of conveyance of the right-of-way;
``(III) address amendments and renewals;
``(IV) address the economic return to the Indian tribe
under leases, business agreements, and rights-of-way;
``(V) address technical or other relevant requirements;
``(VI) establish requirements for environmental review in
accordance with subparagraph (C);
``(VII) ensure compliance with all applicable environmental
laws;
``(VIII) identify final approval authority;
``(IX) provide for public notification of final approvals;
``(X) establish a process for consultation with any
affected States concerning off-reservation impacts, if any,
identified pursuant to the provisions required under
subparagraph (C)(i);
``(XI) describe the remedies for breach of the lease,
business agreement, or right-of-way;
``(XII) require each lease, business agreement, and right-
of-way to include a statement that, in the event that any of
its provisions violates an express term or requirement set
forth in the tribal energy resource agreement pursuant to
which it was executed--
``(aa) such provision shall be null and void; and
``(bb) if the Secretary determines such provision to be
material, the Secretary shall have the authority to suspend
or rescind the lease, business agreement, or right-of-way or
take other appropriate action that the Secretary determines
to be in the best interest of the Indian tribe;
``(XIII) require each lease, business agreement, and right-
of-way to provide that it will become effective on the date
on which a copy of the executed lease, business agreement, or
right-of-way is delivered to the Secretary in accordance with
regulations adopted pursuant to this subsection; and
``(XIV) include citations to tribal laws, regulations, or
procedures, if any, that set out tribal remedies that must be
exhausted before a petition may be submitted to the Secretary
pursuant to paragraph (7)(B).
``(C) Tribal energy resource agreements submitted under
paragraph (1) shall establish, and include provisions to
ensure compliance with, an environmental review process that,
with respect to a lease, business agreement, or right-of-way
under this section, provides for--
``(i) the identification and evaluation of all significant
environmental impacts (as compared with a no-action
alternative), including effects on cultural resources;
``(ii) the identification of proposed mitigation;
``(iii) a process for ensuring that the public is informed
of and has an opportunity to comment on the environmental
impacts of the proposed action before tribal approval of the
lease, business agreement, or right-of-way; and
``(iv) sufficient administrative support and technical
capability to carry out the environmental review process.
``(D) A tribal energy resource agreement negotiated between
the Secretary and an Indian tribe in accordance with this
subsection shall include--
``(i) provisions requiring the Secretary to conduct a
periodic review and evaluation to monitor the performance of
the Indian tribe's activities associated with the development
of energy resources under the tribal energy resource
agreement; and
``(ii) when such review and evaluation result in a finding
by the Secretary of imminent jeopardy to a physical trust
asset arising from a violation of the tribal energy resource
agreement or applicable Federal laws, provisions authorizing
the Secretary to take appropriate actions determined by the
Secretary to be necessary to protect such asset, which
actions may include reassumption of responsibility for
activities associated with the development of energy
resources on tribal land until the violation and conditions
that gave rise to such jeopardy have been corrected.
``(E) The periodic review and evaluation described in
subparagraph (D) shall be conducted on an annual basis,
except that, after the third such annual review and
evaluation, the Secretary and the Indian tribe may mutually
agree to amend the tribal energy resource agreement to
authorize the review and evaluation required by subparagraph
(D) to be conducted once every 2 years.
``(3) The Secretary shall provide notice and opportunity
for public comment on tribal energy resource agreements
submitted for approval under paragraph (1). The Secretary's
review of a tribal energy resource agreement under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) shall be limited to the direct effects of that
approval.
``(4) If the Secretary disapproves a tribal energy resource
agreement submitted by an Indian tribe under paragraph (1),
the Secretary shall, not later than 10 days after the date of
disapproval--
``(A) notify the Indian tribe in writing of the basis for
the disapproval;
``(B) identify what changes or other actions are required
to address the concerns of the Secretary; and
``(C) provide the Indian tribe with an opportunity to
revise and resubmit the tribal energy resource agreement.
``(5) If an Indian tribe executes a lease or business
agreement or grants a right-of-way in accordance with a
tribal energy resource agreement approved under this
subsection, the Indian tribe shall, in accordance with the
process and requirements set forth in the Secretary's
regulations adopted pursuant to paragraph (8), provide to the
Secretary--
``(A) a copy of the lease, business agreement, or right-of-
way document (including all amendments to and renewals of the
document); and
``(B) in the case of a tribal energy resource agreement or
a lease, business agreement, or right-of-way that permits
payments to be made directly to the Indian tribe, information
and documentation of those payments sufficient to enable the
Secretary to discharge the trust responsibility of the United
States to enforce the terms of, and protect the Indian
tribe's rights under, the lease, business agreement, or
right-of-way.
``(6)(A) For purposes of the activities to be undertaken by
the Secretary pursuant to this section, the Secretary shall--
``(i) carry out such activities in a manner consistent with
the trust responsibility of the United States relating to
mineral and other trust resources; and
``(ii) act in good faith and in the best interests of the
Indian tribes.
``(B) Subject to the provisions of subsections (a)(2), (b),
and (c) waiving the requirement of Secretarial approval of
leases, business agreements, and rights-of-way executed
pursuant to
[[Page 29157]]
tribal energy resource agreements approved under this
section, and the provisions of subparagraph (D), nothing in
this section shall absolve the United States from any
responsibility to Indians or Indian tribes, including, but
not limited to, those which derive from the trust
relationship or from any treaties, statutes, and other laws
of the United States, Executive Orders, or agreements between
the United States and any Indian tribe.
``(C) The Secretary shall continue to have a trust
obligation to ensure that the rights and interests of an
Indian tribe are protected in the event that--
``(i) any other party to any such lease, business
agreement, or right-of-way violates any applicable provision
of Federal law or the terms of any lease, business agreement,
or right-of-way under this section; or
``(ii) any provision in such lease, business agreement, or
right-of-way violates any express provision or requirement
set forth in the tribal energy resource agreement pursuant to
which the lease, business agreement, or right-of-way was
executed.
``(D) Notwithstanding subparagraph (B), the United States
shall not be liable to any party (including any Indian tribe)
for any of the negotiated terms of, or any losses resulting
from the negotiated terms of, a lease, business agreement, or
right-of-way executed pursuant to and in accordance with a
tribal energy resource agreement approved by the Secretary
under paragraph (2). For the purpose of this subparagraph,
the term `negotiated terms' means any terms or provisions
that are negotiated by an Indian tribe and any other party or
parties to a lease, business agreement, or right-of-way
entered into pursuant to an approved tribal energy resource
agreement.
``(7)(A) In this paragraph, the term `interested party'
means any person or entity the interests of which have
sustained or will sustain a significant adverse environmental
impact as a result of the failure of an Indian tribe to
comply with a tribal energy resource agreement of the Indian
tribe approved by the Secretary under paragraph (2).
``(B) After exhaustion of tribal remedies, and in
accordance with the process and requirements set forth in
regulations adopted by the Secretary pursuant to paragraph
(8), an interested party may submit to the Secretary a
petition to review compliance of an Indian tribe with a
tribal energy resource agreement of the Indian tribe approved
by the Secretary under paragraph (2).
``(C)(i) Not later than 120 days after the date on which
the Secretary receives a petition under subparagraph (B), the
Secretary shall determine whether the Indian tribe is not in
compliance with the tribal energy resource agreement, as
alleged in the petition.
``(ii) The Secretary may adopt procedures under paragraph
(8) authorizing an extension of time, not to exceed 120 days,
for making the determination under clause (i) in any case in
which the Secretary determines that additional time is
necessary to evaluate the allegations of the petition.
``(iii) Subject to subparagraph (D), if the Secretary
determines that the Indian tribe is not in compliance with
the tribal energy resource agreement as alleged in the
petition, the Secretary shall take such action as is
necessary to ensure compliance with the provisions of the
tribal energy resource agreement, which action may include--
``(I) temporarily suspending some or all activities under a
lease, business agreement, or right-of-way under this section
until the Indian tribe or such activities are in compliance
with the provisions of the approved tribal energy resource
agreement; or
``(II) rescinding approval of all or part of the tribal
energy resource agreement, and if all of such agreement is
rescinded, reassuming the responsibility for approval of any
future leases, business agreements, or rights-of-way
described in subsections (a) and (b).
``(D) Prior to seeking to ensure compliance with the
provisions of the tribal energy resource agreement of an
Indian tribe under subparagraph (C)(iii), the Secretary
shall--
``(i) make a written determination that describes the
manner in which the tribal energy resource agreement has been
violated;
``(ii) provide the Indian tribe with a written notice of
the violations together with the written determination; and
``(iii) before taking any action described in subparagraph
(C)(iii) or seeking any other remedy, provide the Indian
tribe with a hearing and a reasonable opportunity to attain
compliance with the tribal energy resource agreement.
``(E) An Indian tribe described in subparagraph (D) shall
retain all rights to appeal as provided in regulations issued
by the Secretary.
``(8) Not later than 1 year after the date of enactment of
the Indian Tribal Energy Development and Self-Determination
Act of 2003, the Secretary shall issue regulations that
implement the provisions of this subsection, including--
``(A) criteria to be used in determining the capacity of an
Indian tribe described in paragraph (2)(B)(i), including the
experience of the Indian tribe in managing natural resources
and financial and administrative resources available for use
by the Indian tribe in implementing the approved tribal
energy resource agreement of the Indian tribe;
``(B) a process and requirements in accordance with which
an Indian tribe may--
``(i) voluntarily rescind a tribal energy resource
agreement approved by the Secretary under this subsection;
and
``(ii) return to the Secretary the responsibility to
approve any future leases, business agreements, and rights-
of-way described in this subsection;
``(C) provisions setting forth the scope of, and procedures
for, the periodic review and evaluation described in
subparagraphs (D) and (E) of paragraph (2), including
provisions for review of transactions, reports, site
inspections, and any other review activities the Secretary
determines to be appropriate; and
``(D) provisions defining final agency actions after
exhaustion of administrative appeals from determinations of
the Secretary under paragraph (7).
``(f) No Effect on Other Law.--Nothing in this section
affects the application of--
``(1) any Federal environment law;
``(2) the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1201 et seq.); or
``(3) except as otherwise provided in this title, the
Indian Mineral Development Act of 1982 (25 U.S.C. 2101 et
seq.) and the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).
``(g) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary such sums as
are necessary for each of fiscal years 2004 through 2014 to
implement the provisions of this section and to make grants
or provide other appropriate assistance to Indian tribes to
assist the Indian tribes in developing and implementing
tribal energy resource agreements in accordance with the
provisions of this section.
``SEC. 2605. INDIAN MINERAL DEVELOPMENT REVIEW.
``(a) In General.--The Secretary shall conduct a review of
all activities being conducted under the Indian Mineral
Development Act of 1982 (25 U.S.C. 2101 et seq.) as of that
date.
``(b) Report.--Not later than 1 year after the date of
enactment of the Indian Tribal Energy Development and Self-
Determination Act of 2003, the Secretary shall submit to
Congress a report that includes--
``(1) the results of the review;
``(2) recommendations to ensure that Indian tribes have the
opportunity to develop Indian energy resources; and
``(3) an analysis of the barriers to the development of
energy resources on Indian land (including legal, fiscal,
market, and other barriers), along with recommendations for
the removal of those barriers.
``SEC. 2606. FEDERAL POWER MARKETING ADMINISTRATIONS.
``(a) Definitions.--In this section:
``(1) The term ``Administrator'' means the Administrator of
the Bonneville Power Administration and the Administrator of
the Western Area Power Administration.
``(2) The term ``power marketing administration'' means--
``(A) the Bonneville Power Administration;
``(B) the Western Area Power Administration; and
``(C) any other power administration the power allocation
of which is used by or for the benefit of an Indian tribe
located in the service area of the administration.
``(b) Encouragement of Indian Tribal Energy Development.--
Each Administrator shall encourage Indian tribal energy
development by taking such actions as are appropriate,
including administration of programs of the Bonneville Power
Administration and the Western Area Power Administration, in
accordance with this section.
``(c) Action by the Administrator.--In carrying out this
section, and in accordance with existing law--
``(1) each Administrator shall consider the unique
relationship that exists between the United States and Indian
tribes;
``(2) power allocations from the Western Area Power
Administration to Indian tribes may be used to meet firming
and reserve needs of Indian-owned energy projects on Indian
land;
``(3) the Administrator of the Western Area Power
Administration may purchase non-federally generated power
from Indian tribes to meet the firming and reserve
requirements of the Western Area Power Administration; and
``(4) each Administrator shall not pay more than the
prevailing market price for an energy product nor obtain less
than prevailing market terms and conditions.
``(d) Assistance for Transmission System Use.--(1) An
Administrator may provide technical assistance to Indian
tribes seeking to use the high-voltage transmission system
for delivery of electric power.
``(2) The costs of technical assistance provided under
paragraph (1) shall be funded by the Secretary of Energy
using nonreimbursable funds appropriated for that purpose, or
by the applicable Indian tribes.
``(e) Power Allocation Study.--Not later than 2 years after
the date of enactment of the Indian Tribal Energy Development
and Self-Determination Act of 2003, the Secretary of Energy
shall submit to Congress a report that--
``(1) describes the use by Indian tribes of Federal power
allocations of the Western Area Power Administration (or
power sold by the Southwestern Power Administration) and the
Bonneville Power Administration to or for the benefit of
Indian tribes in service areas of those administrations; and
``(2) identifies--
``(A) the quantity of power allocated to, or used for the
benefit of, Indian tribes by the Western Area Power
Administration;
``(B) the quantity of power sold to Indian tribes by other
power marketing administrations; and
[[Page 29158]]
``(C) barriers that impede tribal access to and use of
Federal power, including an assessment of opportunities to
remove those barriers and improve the ability of power
marketing administrations to deliver Federal power.
``(f) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$750,000, which shall remain available until expended and
shall not be reimbursable.
``SEC. 2607. WIND AND HYDROPOWER FEASIBILITY STUDY.
``(a) Study.--The Secretary of Energy, in coordination with
the Secretary of the Army and the Secretary, shall conduct a
study of the cost and feasibility of developing a
demonstration project that would use wind energy generated by
Indian tribes and hydropower generated by the Army Corps of
Engineers on the Missouri River to supply firming power to
the Western Area Power Administration.
``(b) Scope of Study.--The study shall--
``(1) determine the feasibility of the blending of wind
energy and hydropower generated from the Missouri River dams
operated by the Army Corps of Engineers;
``(2) review historical and projected requirements for
firming power and the patterns of availability and use of
firming power;
``(3) assess the wind energy resource potential on tribal
land and projected cost savings through a blend of wind and
hydropower over a 30-year period;
``(4) determine seasonal capacity needs and associated
transmission upgrades for integration of tribal wind
generation; and
``(5) include an independent tribal engineer as a study
team member.
``(c) Report.--Not later than 1 year after the date of
enactment of the Energy Policy Act of 2003, the Secretary and
Secretary of the Army shall submit to Congress a report that
describes the results of the study, including--
``(1) an analysis of the potential energy cost or benefits
to the customers of the Western Area Power Administration
through the use of combined wind and hydropower;
``(2) an evaluation of whether a combined wind and
hydropower system can reduce reservoir fluctuation, enhance
efficient and reliable energy production, and provide
Missouri River management flexibility;
``(3) recommendations for a demonstration project that
could be carried out by the Western Area Power Administration
in partnership with an Indian tribal government or tribal
energy resource development organization to demonstrate the
feasibility and potential of using wind energy produced on
Indian land to supply firming energy to the Western Area
Power Administration or any other Federal power marketing
agency; and
``(4) an identification of--
``(A) the economic and environmental costs or benefits to
be realized through such a Federal-tribal partnership; and
``(B) the manner in which such a partnership could
contribute to the energy security of the United States.
``(d) Funding.--
``(1) Authorization of appropriations.--There are
authorized to be appropriated to carry out this section
$500,000, to remain available until expended.
``(2) Nonreimbursability.--Costs incurred by the Secretary
in carrying out this section shall be nonreimbursable.''.
(b) Conforming Amendments.--The table of contents for the
Energy Policy Act of 1992 is amended by striking the items
relating to title XXVI and inserting the following:
``Sec. 2601. Definitions.
``Sec. 2602. Indian tribal energy resource development.
``Sec. 2603. Indian tribal energy resource regulation.
``Sec. 2604. Leases, business agreements, and rights-of-way involving
energy development or transmission.
``Sec. 2605. Indian mineral development review.
``Sec. 2606. Federal Power Marketing Administrations.
``Sec. 2607. Wind and hydropower feasibility study.''.
SEC. 504. FOUR CORNERS TRANSMISSION LINE PROJECT.
The Dine Power Authority, an enterprise of the Navajo
Nation, shall be eligible to receive grants and other
assistance as authorized by section 217 of the Department of
Energy Organization Act, as added by section 502 of this
title, and section 2602 of the Energy Policy Act of 1992, as
amended by this title, for activities associated with the
development of a transmission line from the Four Corners Area
to southern Nevada, including related power generation
opportunities.
SEC. 505. ENERGY EFFICIENCY IN FEDERALLY ASSISTED HOUSING.
(a) In General.--The Secretary of Housing and Urban
Development shall promote energy conservation in housing that
is located on Indian land and assisted with Federal resources
through--
(1) the use of energy-efficient technologies and
innovations (including the procurement of energy-efficient
refrigerators and other appliances);
(2) the promotion of shared savings contracts; and
(3) the use and implementation of such other similar
technologies and innovations as the Secretary of Housing and
Urban Development considers to be appropriate.
(b) Amendment.--Section 202(2) of the Native American
Housing and Self-Determination Act of 1996 (25 U.S.C.
4132(2)) is amended by inserting ``improvement to achieve
greater energy efficiency,'' after ``planning,''.
SEC. 506. CONSULTATION WITH INDIAN TRIBES.
In carrying out this title and the amendments made by this
title, the Secretary of Energy and the Secretary shall, as
appropriate and to the maximum extent practicable, involve
and consult with Indian tribes in a manner that is consistent
with the Federal trust and the government-to-government
relationships between Indian tribes and the United States.
TITLE VI--NUCLEAR MATTERS
Subtitle A--Price-Anderson Act Amendments
SEC. 601. SHORT TITLE.
This subtitle may be cited as the ``Price-Anderson
Amendments Act of 2003''.
SEC. 602. EXTENSION OF INDEMNIFICATION AUTHORITY.
(a) Indemnification of Nuclear Regulatory Commission
Licensees.--Section 170 c. of the Atomic Energy Act of 1954
(42 U.S.C. 2210(c)) is amended--
(1) in the subsection heading, by striking ``Licenses'' and
inserting ``Licensees''; and
(2) by striking ``December 31, 2003'' each place it appears
and inserting ``December 31, 2023''.
(b) Indemnification of Department of Energy Contractors.--
Section 170 d.(1)(A) of the Atomic Energy Act of 1954 (42
U.S.C. 2210(d)(1)(A)) is amended by striking ``December 31,
2004'' and inserting ``December 31, 2023''.
(c) Indemnification of Nonprofit Educational
Institutions.--Section 170 k. of the Atomic Energy Act of
1954 (42 U.S.C. 2210(k)) is amended by striking ``August 1,
2002'' each place it appears and inserting ``December 31,
2023''.
SEC. 603. MAXIMUM ASSESSMENT.
Section 170 of the Atomic Energy Act of 1954 (42 U.S.C.
2210) is amended--
(1) in the second proviso of the third sentence of
subsection b.(1)--
(A) by striking ``$63,000,000'' and inserting
``$95,800,000''; and
(B) by striking ``$10,000,000 in any 1 year'' and inserting
``$15,000,000 in any 1 year (subject to adjustment for
inflation under subsection t.)''; and
(2) in subsection t.(1)--
(A) by inserting ``total and annual'' after ``amount of the
maximum'';
(B) by striking ``the date of the enactment of the Price-
Anderson Amendments Act of 1988'' and inserting ``August 20,
2003''; and
(C) in subparagraph (A), by striking ``such date of
enactment'' and inserting ``August 20, 2003''.
SEC. 604. DEPARTMENT OF ENERGY LIABILITY LIMIT.
(a) Indemnification of Department of Energy Contractors.--
Section 170 d. of the Atomic Energy Act of 1954 (42 U.S.C.
2210(d)) is amended by striking paragraph (2) and inserting
the following:
``(2) In an agreement of indemnification entered into under
paragraph (1), the Secretary--
``(A) may require the contractor to provide and maintain
financial protection of such a type and in such amounts as
the Secretary shall determine to be appropriate to cover
public liability arising out of or in connection with the
contractual activity; and
``(B) shall indemnify the persons indemnified against such
liability above the amount of the financial protection
required, in the amount of $10,000,000,000 (subject to
adjustment for inflation under subsection t.), in the
aggregate, for all persons indemnified in connection with the
contract and for each nuclear incident, including such legal
costs of the contractor as are approved by the Secretary.''.
(b) Contract Amendments.--Section 170 d. of the Atomic
Energy Act of 1954 (42 U.S.C. 2210(d)) is further amended by
striking paragraph (3) and inserting the following--
``(3) All agreements of indemnification under which the
Department of Energy (or its predecessor agencies) may be
required to indemnify any person under this section shall be
deemed to be amended, on the date of enactment of the Price-
Anderson Amendments Act of 2003, to reflect the amount of
indemnity for public liability and any applicable financial
protection required of the contractor under this
subsection.''.
(c) Liability Limit.--Section 170 e.(1)(B) of the Atomic
Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is amended--
(1) by striking ``the maximum amount of financial
protection required under subsection b. or''; and
(2) by striking ``paragraph (3) of subsection d., whichever
amount is more'' and inserting ``paragraph (2) of subsection
d.''.
SEC. 605. INCIDENTS OUTSIDE THE UNITED STATES.
(a) Amount of Indemnification.--Section 170 d.(5) of the
Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(5)) is amended
by striking ``$100,000,000'' and inserting ``$500,000,000''.
(b) Liability Limit.--Section 170 e.(4) of the Atomic
Energy Act of 1954 (42 U.S.C. 2210(e)(4)) is amended by
striking ``$100,000,000'' and inserting ``$500,000,000''.
SEC. 606. REPORTS.
Section 170 p. of the Atomic Energy Act of 1954 (42 U.S.C.
2210(p)) is amended by striking ``August 1, 1998'' and
inserting ``December 31, 2019''.
SEC. 607. INFLATION ADJUSTMENT.
Section 170 t. of the Atomic Energy Act of 1954 (42 U.S.C.
2210(t)) is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following:
[[Page 29159]]
``(2) The Secretary shall adjust the amount of
indemnification provided under an agreement of
indemnification under subsection d. not less than once during
each 5-year period following July 1, 2003, in accordance with
the aggregate percentage change in the Consumer Price Index
since--
``(A) that date, in the case of the first adjustment under
this paragraph; or
``(B) the previous adjustment under this paragraph.''.
SEC. 608. TREATMENT OF MODULAR REACTORS.
Section 170 b. of the Atomic Energy Act of 1954 (42 U.S.C.
2210(b)) is amended by adding at the end the following:
``(5)(A) For purposes of this section only, the Commission
shall consider a combination of facilities described in
subparagraph (B) to be a single facility having a rated
capacity of 100,000 electrical kilowatts or more.
``(B) A combination of facilities referred to in
subparagraph (A) is 2 or more facilities located at a single
site, each of which has a rated capacity of 100,000
electrical kilowatts or more but not more than 300,000
electrical kilowatts, with a combined rated capacity of not
more than 1,300,000 electrical kilowatts.''.
SEC. 609. APPLICABILITY.
The amendments made by sections 603, 604, and 605 do not
apply to a nuclear incident that occurs before the date of
the enactment of this Act.
SEC. 610. PROHIBITION ON ASSUMPTION BY UNITED STATES
GOVERNMENT OF LIABILITY FOR CERTAIN FOREIGN
INCIDENTS.
Section 170 of the Atomic Energy Act of 1954 (42 U.S.C.
2210) is amended by adding at the end the following new
subsection:
``u. Prohibition on Assumption of Liability for Certain
Foreign Incidents.--Notwithstanding this section or any other
provision of law, no officer of the United States or of any
department, agency, or instrumentality of the United States
Government may enter into any contract or other arrangement,
or into any amendment or modification of a contract or other
arrangement, the purpose or effect of which would be to
directly or indirectly impose liability on the United States
Government, or any department, agency, or instrumentality of
the United States Government, or to otherwise directly or
indirectly require an indemnity by the United States
Government, for nuclear incidents occurring in connection
with the design, construction, or operation of a production
facility or utilization facility in any country whose
government has been identified by the Secretary of State as
engaged in state sponsorship of terrorist activities
(specifically including any country the government of which,
as of September 11, 2001, had been determined by the
Secretary of State under section 620A(a) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2371(a)), section 6(j)(1)
of the Export Administration Act of 1979 (50 U.S.C. App.
2405(j)(1)), or section 40(d) of the Arms Export Control Act
(22 U.S.C. 2780(d)) to have repeatedly provided support for
acts of international terrorism). This subsection shall not
apply to nuclear incidents occurring as a result of missions,
carried out under the direction of the Secretary of Energy,
the Secretary of Defense, or the Secretary of State, that are
necessary to safely secure, store, transport, or remove
nuclear materials for nuclear safety or nonproliferation
purposes.''.
SEC. 611. CIVIL PENALTIES.
(a) Repeal of Automatic Remission.--Section 234A b.(2) of
the Atomic Energy Act of 1954 (42 U.S.C. 2282a(b)(2)) is
amended by striking the last sentence.
(b) Limitation for Not-for-Profit Institutions.--Subsection
d. of section 234A of the Atomic Energy Act of 1954 (42
U.S.C. 2282a(d)) is amended to read as follows:
``d.(1) Notwithstanding subsection a., in the case of any
not-for-profit contractor, subcontractor, or supplier, the
total amount of civil penalties paid under subsection a. may
not exceed the total amount of fees paid within any 1-year
period (as determined by the Secretary) under the contract
under which the violation occurs.
``(2) For purposes of this section, the term ``not-for-
profit'' means that no part of the net earnings of the
contractor, subcontractor, or supplier inures to the benefit
of any natural person or for-profit artificial person.''.
(c) Effective Date.--The amendments made by this section
shall not apply to any violation of the Atomic Energy Act of
1954 (42 U.S.C. 2011 et seq.) occurring under a contract
entered into before the date of enactment of this section.
Subtitle B--General Nuclear Matters
SEC. 621. LICENSES.
Section 103 c. of the Atomic Energy Act of 1954 (42 U.S.C.
2133(c)) is amended by inserting ``from the authorization to
commence operations'' after ``forty years''.
SEC. 622. NRC TRAINING PROGRAM.
(a) In General.--In order to maintain the human resource
investment and infrastructure of the United States in the
nuclear sciences, health physics, and engineering fields, in
accordance with the statutory authorities of the Nuclear
Regulatory Commission relating to the civilian nuclear energy
program, the Nuclear Regulatory Commission shall carry out a
training and fellowship program to address shortages of
individuals with critical nuclear safety regulatory skills.
(b) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Nuclear Regulatory Commission to carry out this section
$1,000,000 for each of fiscal years 2004 through 2008.
(2) Availability.--Funds made available under paragraph (1)
shall remain available until expended.
SEC. 623. COST RECOVERY FROM GOVERNMENT AGENCIES.
Section 161 w. of the Atomic Energy Act of 1954 (42 U.S.C.
2201(w)) is amended--
(1) by striking ``for or is issued'' and all that follows
through ``1702'' and inserting ``to the Commission for, or is
issued by the Commission, a license or certificate'';
(2) by striking ``483a'' and inserting ``9701''; and
(3) by striking ``, of applicants for, or holders of, such
licenses or certificates''.
SEC. 624. ELIMINATION OF PENSION OFFSET.
Section 161 of the Atomic Energy Act of 1954 (42 U.S.C.
2201) is amended by adding at the end the following:
``y. Exempt from the application of sections 8344 and 8468
of title 5, United States Code, an annuitant who was formerly
an employee of the Commission who is hired by the Commission
as a consultant, if the Commission finds that the annuitant
has a skill that is critical to the performance of the duties
of the Commission.''.
SEC. 625. ANTITRUST REVIEW.
Section 105 c. of the Atomic Energy Act of 1954 (42 U.S.C.
2135(c)) is amended by adding at the end the following:
``(9) Applicability.--This subsection does not apply to an
application for a license to construct or operate a
utilization facility or production facility under section 103
or 104 b. that is filed on or after the date of enactment of
this paragraph.''.
SEC. 626. DECOMMISSIONING.
Section 161 i. of the Atomic Energy Act of 1954 (42 U.S.C.
2201(i)) is amended--
(1) by striking ``and (3)'' and inserting ``(3)''; and
(2) by inserting before the semicolon at the end the
following: ``, and (4) to ensure that sufficient funds will
be available for the decommissioning of any production or
utilization facility licensed under section 103 or 104 b.,
including standards and restrictions governing the control,
maintenance, use, and disbursement by any former licensee
under this Act that has control over any fund for the
decommissioning of the facility''.
SEC. 627. LIMITATION ON LEGAL FEE REIMBURSEMENT.
The Department of Energy shall not, except as required
under a contract entered into before the date of enactment of
this Act, reimburse any contractor or subcontractor of the
Department for any legal fees or expenses incurred with
respect to a complaint subsequent to--
(1) an adverse determination on the merits with respect to
such complaint against the contractor or subcontractor by the
Director of the Department of Energy's Office of Hearings and
Appeals pursuant to part 708 of title 10, Code of Federal
Regulations, or by a Department of Labor Administrative Law
Judge pursuant to section 211 of the Energy Reorganization
Act of 1974 (42 U.S.C. 5851); or
(2) an adverse final judgment by any State or Federal court
with respect to such complaint against the contractor or
subcontractor for wrongful termination or retaliation due to
the making of disclosures protected under chapter 12 of title
5, United States Code, section 211 of the Energy
Reorganization Act of 1974 (42 U.S.C. 5851), or any
comparable State law,
unless the adverse determination or final judgment is
reversed upon further administrative or judicial review.
SEC. 628. DECOMMISSIONING PILOT PROGRAM.
(a) Pilot Program.--The Secretary of Energy shall establish
a decommissioning pilot program to decommission and
decontaminate the sodium-cooled fast breeder experimental
test-site reactor located in northwest Arkansas in accordance
with the decommissioning activities contained in the August
31, 1998, Department of Energy report on the reactor.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy to carry out
this section $16,000,000.
SEC. 629. REPORT ON FEASIBILITY OF DEVELOPING COMMERCIAL
NUCLEAR ENERGY GENERATION FACILITIES AT
EXISTING DEPARTMENT OF ENERGY SITES.
Not later than 1 year after the date of the enactment of
this Act, the Secretary of Energy shall submit to Congress a
report on the feasibility of developing commercial nuclear
energy generation facilities at Department of Energy sites in
existence on the date of enactment of this Act.
SEC. 630. URANIUM SALES.
(a) Sales, Transfers, and Services.--Section 3112 of the
USEC Privatization Act (42 U.S.C. 2297h-10) is amended by
striking subsections (d), (e), and (f) and inserting the
following:
``(3) The Secretary may transfer to the Corporation,
notwithstanding subsections (b)(2) and (d), natural uranium
in amounts sufficient to fulfill the Department of Energy's
commitments under Article 4(B) of the Agreement between the
Department and the Corporation dated June 17, 2002.
``(d) Inventory Sales.--(1) In addition to the transfers
and sales authorized under subsections (b) and (c) and under
paragraph (5) of this subsection, the United States
Government may transfer or sell uranium in any form subject
to paragraphs (2), (3), and (4).
``(2) Except as provided in subsections (b) and (c) and
paragraph (5) of this subsection, no sale or transfer of
uranium shall be made under this subsection by the United
States Government unless--
[[Page 29160]]
``(A) the President determines that the material is not
necessary for national security needs and the sale or
transfer has no adverse impact on implementation of existing
government-to-government agreements;
``(B) the price paid to the appropriate Federal agency, if
the transaction is a sale, will not be less than the fair
market value of the material; and
``(C) the sale or transfer to commercial nuclear power end
users is made pursuant to a contract of at least 3 years'
duration.
``(3) Except as provided in paragraph (5), the United
States Government shall not make any transfer or sale of
uranium in any form under this subsection that would cause
the total amount of uranium transferred or sold pursuant to
this subsection that is delivered for consumption by
commercial nuclear power end users to exceed--
``(A) 3,000,000 pounds of U3O8
equivalent in fiscal year 2004, 2005, 2006, 2007, 2008, or
2009;
``(B) 5,000,000 pounds of U3O8
equivalent in fiscal year 2010 or 2011;
``(C) 7,000,000 pounds of U3O8
equivalent in fiscal year 2012; and
``(D) 10,000,000 pounds of U3O8
equivalent in fiscal year 2013 or any fiscal year thereafter.
``(4) Except for sales or transfers under paragraph (5),
for the purposes of this subsection, the recovery of uranium
from uranium bearing materials transferred or sold by the
United States Government to the domestic uranium industry
shall be the preferred method of making uranium available.
The recovered uranium shall be counted against the annual
maximum deliveries set forth in this section, when such
uranium is sold to end users.
``(5) The United States Government may make the following
sales and transfers:
``(A) Sales or transfers to a Federal agency if the
material is transferred for the use of the receiving agency
without any resale or transfer to another entity and the
material does not meet commercial specifications.
``(B) Sales or transfers to any person for national
security purposes, as determined by the Secretary.
``(C) Sales or transfers to any State or local agency or
nonprofit, charitable, or educational institution for use
other than the generation of electricity for commercial use.
``(D) Sales or transfers to the Department of Energy
research reactor sales program.
``(E) Sales or transfers, at fair market value, for
emergency purposes in the event of a disruption in supply to
commercial nuclear power end users in the United States.
``(F) Sales or transfers, at fair market value, for use in
a commercial reactor in the United States with nonstandard
fuel requirements.
``(G) Sales or transfers provided for under law for use by
the Tennessee Valley Authority in relation to the Department
of Energy's highly enriched uranium or tritium programs.
``(6) For purposes of this subsection, the term ``United
States Government'' does not include the Tennessee Valley
Authority.
``(e) Savings Provision.--Nothing in this subchapter
modifies the terms of the Russian HEU Agreement.----
``(f) Services.--Notwithstanding any other provision of
this section, if the Secretary determines that the
Corporation has failed, or may fail, to perform any
obligation under the Agreement between the Department of
Energy and the Corporation dated June 17, 2002, and as
amended thereafter, which failure could result in termination
of the Agreement, the Secretary shall notify Congress, in
such a manner that affords Congress an opportunity to
comment, prior to a determination by the Secretary whether
termination, waiver, or modification of the Agreement is
required. The Secretary is authorized to take such action as
he determines necessary under the Agreement to terminate,
waive, or modify provisions of the Agreement to achieve its
purposes.''.
(b) Report.--Not later than 3 years after the date of
enactment of this Act, the Secretary of Energy shall report
to Congress on the implementation of this section. The report
shall include a discussion of available excess uranium
inventories; all sales or transfers made by the United States
Government; the impact of such sales or transfers on the
domestic uranium industry, the spot market uranium price, and
the national security interests of the United States; and any
steps taken to remediate any adverse impacts of such sales or
transfers.
SEC. 631. COOPERATIVE RESEARCH AND DEVELOPMENT AND SPECIAL
DEMONSTRATION PROJECTS FOR THE URANIUM MINING
INDUSTRY.
(a) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy $10,000,000 for
each of fiscal years 2004, 2005, and 2006 for--
(1) cooperative, cost-shared agreements between the
Department of Energy and domestic uranium producers to
identify, test, and develop improved in situ leaching mining
technologies, including low-cost environmental restoration
technologies that may be applied to sites after completion of
in situ leaching operations; and
(2) funding for competitively selected demonstration
projects with domestic uranium producers relating to--
(A) enhanced production with minimal environmental impacts;
(B) restoration of well fields; and
(C) decommissioning and decontamination activities.
(b) Domestic Uranium Producer.--For purposes of this
section, the term ``domestic uranium producer'' has the
meaning given that term in section 1018(4) of the Energy
Policy Act of 1992 (42 U.S.C. 2296b-7(4)), except that the
term shall not include any producer that has not produced
uranium from domestic reserves on or after July 30, 1998.
(c) Limitation.--No activities funded under this section
may be carried out in the State of New Mexico.
SEC. 632. WHISTLEBLOWER PROTECTION.
(a) Definition of Employer.--Section 211(a)(2) of the
Energy Reorganization Act of 1974 (42 U.S.C. 5851(a)(2)) is
amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting ``; and'' and
(3) by adding at the end the following:
``(E) a contractor or subcontractor of the Commission.''.-
(b) De Novo Review.--Subsection (b) of such section 211 is
amended by adding at the end the following new paragraph:
``(4) If the Secretary has not issued a final decision
within 540 days after the filing of a complaint under
paragraph (1), and there is no showing that such delay is due
to the bad faith of the person seeking relief under this
paragraph, such person may bring an action at law or equity
for de novo review in the appropriate district court of the
United States, which shall have jurisdiction over such an
action without regard to the amount in controversy.''.
SEC. 633. MEDICAL ISOTOPE PRODUCTION.
Section 134 of the Atomic Energy Act of 1954 (42 U.S.C.
2160d) is amended--
(1) in subsection a., by striking ``a. The Commission'' and
inserting ``a. In General.--Except as provided in subsection
b., the Commission'';
(2) by redesignating subsection b. as subsection c.; and
(3) by inserting after subsection a. the following:
``b. Medical Isotope Production.--
``(1) Definitions.--In this subsection:
``(A) Highly enriched uranium.--The term `highly enriched
uranium' means uranium enriched to include concentration of
U-235 above 20 percent.
``(B) Medical isotope.--The term `medical isotope' includes
Molybdenum 99, Iodine 131, Xenon 133, and other radioactive
materials used to produce a radiopharmaceutical for
diagnostic, therapeutic procedures or for research and
development.
``(C) Radiopharmaceutical.--The term `radiopharmaceutical'
means a radioactive isotope that--
``(i) contains byproduct material combined with chemical or
biological material; and
``(ii) is designed to accumulate temporarily in a part of
the body for therapeutic purposes or for enabling the
production of a useful image for use in a diagnosis of a
medical condition.
``(D) Recipient country.--The term `recipient country'
means Canada, Belgium, France, Germany, and the Netherlands.
``(2) Licenses.--The Commission may issue a license
authorizing the export (including shipment to and use at
intermediate and ultimate consignees specified in the
license) to a recipient country of highly enriched uranium
for medical isotope production if, in addition to any other
requirements of this Act (except subsection a.), the
Commission determines that--
``(A) a recipient country that supplies an assurance letter
to the United States Government in connection with the
consideration by the Commission of the export license
application has informed the United States Government that
any intermediate consignees and the ultimate consignee
specified in the application are required to use the highly
enriched uranium solely to produce medical isotopes; and
``(B) the highly enriched uranium for medical isotope
production will be irradiated only in a reactor in a
recipient country that--
``(i) uses an alternative nuclear reactor fuel; or
``(ii) is the subject of an agreement with the United
States Government to convert to an alternative nuclear
reactor fuel when alternative nuclear reactor fuel can be
used in the reactor.
``(3) Review of physical protection requirements.--
``(A) In general.--The Commission shall review the adequacy
of physical protection requirements that, as of the date of
an application under paragraph (2), are applicable to the
transportation and storage of highly enriched uranium for
medical isotope production or control of residual material
after irradiation and extraction of medical isotopes.
``(B) Imposition of additional requirements.--If the
Commission determines that additional physical protection
requirements are necessary (including a limit on the quantity
of highly enriched uranium that may be contained in a single
shipment), the Commission shall impose such requirements as
license conditions or through other appropriate means.
``(4) First report to congress.--
``(A) NAS study.--The Secretary shall enter into an
arrangement with the National Academy of Sciences to conduct
a study to determine--
``(i) the feasibility of procuring supplies of medical
isotopes from commercial sources that do not use highly
enriched uranium;
``(ii) the current and projected demand and availability of
medical isotopes in regular current domestic use;
``(iii) the progress that is being made by the Department
of Energy and others to eliminate all use of highly enriched
uranium in reactor fuel, reactor targets, and medical isotope
production facilities; and
[[Page 29161]]
``(iv) the potential cost differential in medical isotope
production in the reactors and target processing facilities
if the products were derived from production systems that do
not involve fuels and targets with highly enriched uranium.
``(B) Feasibility.--For the purpose of this subsection, the
use of low enriched uranium to produce medical isotopes shall
be determined to be feasible if--
``(i) low enriched uranium targets have been developed and
demonstrated for use in the reactors and target processing
facilities that produce significant quantities of medical
isotopes to serve United States needs for such isotopes;
``(ii) sufficient quantities of medical isotopes are
available from low enriched uranium targets and fuel to meet
United States domestic needs; and
``(iii) the average anticipated total cost increase from
production of medical isotopes in such facilities without use
of highly enriched uranium is less than 10 percent.
``(C) Report by the secretary.--Not later than 5 years
after the date of enactment of the Energy Policy Act of 2003,
the Secretary shall submit to Congress a report that--
``(i) contains the findings of the National Academy of
Sciences made in the study under subparagraph (A); and
``(ii) discloses the existence of any commitments from
commercial producers to provide domestic requirements for
medical isotopes without use of highly enriched uranium
consistent with the feasibility criteria described in
subparagraph (B) not later than the date that is 4 years
after the date of submission of the report.
``(5) Second report to congress.--If the study of the
National Academy of Sciences determines under paragraph
(4)(A)(i) that the procurement of supplies of medical
isotopes from commercial sources that do not use highly
enriched uranium is feasible, but the Secretary is unable to
report the existence of commitments under paragraph
(4)(C)(ii), not later than the date that is 6 years after the
date of enactment of the Energy Policy Act of 2003, the
Secretary shall submit to Congress a report that describes
options for developing domestic supplies of medical isotopes
in quantities that are adequate to meet domestic demand
without the use of highly enriched uranium consistent with
the cost increase described in paragraph (4)(B)(iii).
``(6) Certification.--At such time as commercial facilities
that do not use highly enriched uranium are capable of
meeting domestic requirements for medical isotopes, within
the cost increase described in paragraph (4)(B)(iii) and
without impairing the reliable supply of medical isotopes for
domestic utilization, the Secretary shall submit to Congress
a certification to that effect.
``(7) Sunset provision.--After the Secretary submits a
certification under paragraph (6), the Commission shall, by
rule, terminate its review of export license applications
under this subsection.''.
SEC. 634. FERNALD BYPRODUCT MATERIAL.
Notwithstanding any other law, the material in the concrete
silos at the Fernald uranium processing facility managed on
the date of enactment of this Act by the Department of Energy
shall be considered byproduct material (as defined by section
11 e.(2) of the Atomic Energy Act of 1954 (42 U.S.C.
2014(e)(2))). The Department of Energy may dispose of the
material in a facility regulated by the Nuclear Regulatory
Commission or by an Agreement State. If the Department of
Energy disposes of the material in such a facility, the
Nuclear Regulatory Commission or the Agreement State shall
regulate the material as byproduct material under that Act.
This material shall remain subject to the jurisdiction of the
Department of Energy until it is received at a commercial,
Nuclear Regulatory Commission-licensed, or Agreement State-
licensed facility, at which time the material shall be
subject to the health and safety requirements of the Nuclear
Regulatory Commission or the Agreement State with
jurisdiction over the disposal site.
SEC. 635. SAFE DISPOSAL OF GREATER-THAN-CLASS C RADIOACTIVE
WASTE.
(a) Designation of Responsibility.--The Secretary of Energy
shall designate an Office within the Department of Energy to
have the responsibility for activities needed to develop a
new, or use an existing, facility for safely disposing of all
low-level radioactive waste with concentrations of
radionuclides that exceed the limits established by the
Nuclear Regulatory Commission for Class C radioactive waste
(referred to in this section as ``GTCC waste'').
(b) Comprehensive Plan.--The Secretary of Energy shall
develop a comprehensive plan for permanent disposal of GTCC
waste which includes plans for a disposal facility. This plan
shall be transmitted to Congress in a series of reports,
including the following:
(1) Report on short-term plan.--Not later than 180 days
after the date of enactment of this Act, the Secretary of
Energy shall submit to Congress a plan describing the
Secretary's operational strategy for continued recovery and
storage of GTCC waste until a permanent disposal facility is
available.
(2) Update of 1987 report.--
(A) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Energy shall submit
to Congress an update of the Secretary's February 1987 report
submitted to Congress that made comprehensive recommendations
for the disposal of GTCC waste.
(B) Contents.--The update under this paragraph shall
contain--
(i) a detailed description and identification of the GTCC
waste that is to be disposed;
(ii) a description of current domestic and international
programs, both Federal and commercial, for management and
disposition of GTCC waste;
(iii) an identification of the Federal and private options
and costs for the safe disposal of GTCC waste;
(iv) an identification of the options for ensuring that,
wherever possible, generators and users of GTCC waste bear
all reasonable costs of waste disposal;
(v) an identification of any new statutory authority
required for disposal of GTCC waste; and
(vi) in coordination with the Environmental Protection
Agency and the Nuclear Regulatory Commission, an
identification of any new regulatory guidance needed for the
disposal of GTCC waste.
(3) Report on cost and schedule for completion of
environmental impact statement and record of decision.--Not
later than 180 days after the date of submission of the
update required under paragraph (2), the Secretary of Energy
shall submit to Congress a report containing an estimate of
the cost and schedule to complete a draft and final
environmental impact statement and to issue a record of
decision for a permanent disposal facility, utilizing either
a new or existing facility, for GTCC waste.
SEC. 636. PROHIBITION ON NUCLEAR EXPORTS TO COUNTRIES THAT
SPONSOR TERRORISM.
(a) In General.--Section 129 of the Atomic Energy Act of
1954 (42 U.S.C. 2158) is amended--
(1) by inserting ``a.'' before ``No nuclear materials and
equipment''; and
(2) by adding at the end the following new subsection:
``b.(1) Notwithstanding any other provision of law,
including specifically section 121 of this Act, and except as
provided in paragraphs (2) and (3), no nuclear materials and
equipment or sensitive nuclear technology, including items
and assistance authorized by section 57 b. of this Act and
regulated under part 810 of title 10, Code of Federal
Regulations, and nuclear-related items on the Commerce
Control List maintained under part 774 of title 15 of the
Code of Federal Regulations, shall be exported or reexported,
or transferred or retransferred whether directly or
indirectly, and no Federal agency shall issue any license,
approval, or authorization for the export or reexport, or
transfer, or retransfer, whether directly or indirectly, of
these items or assistance (as defined in this paragraph) to
any country whose government has been identified by the
Secretary of State as engaged in state sponsorship of
terrorist activities (specifically including any country the
government of which has been determined by the Secretary of
State under section 620A(a) of the Foreign Assistance Act of
1961 (22 U.S.C. 2371(a)), section 6(j)(1) of the Export
Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)), or
section 40(d) of the Arms Export Control Act (22 U.S.C.
2780(d)) to have repeatedly provided support for acts of
international terrorism).
``(2) This subsection shall not apply to exports,
reexports, transfers, or retransfers of radiation monitoring
technologies, surveillance equipment, seals, cameras, tamper-
indication devices, nuclear detectors, monitoring systems, or
equipment necessary to safely store, transport, or remove
hazardous materials, whether such items, services, or
information are regulated by the Department of Energy, the
Department of Commerce, or the Nuclear Regulatory Commission,
except to the extent that such technologies, equipment,
seals, cameras, devices, detectors, or systems are available
for use in the design or construction of nuclear reactors or
nuclear weapons.
``(3) The President may waive the application of paragraph
(1) to a country if the President determines and certifies to
Congress that the waiver will not result in any increased
risk that the country receiving the waiver will acquire
nuclear weapons, nuclear reactors, or any materials or
components of nuclear weapons and--
``(A) the government of such country has not within the
preceding 12-month period willfully aided or abetted the
international proliferation of nuclear explosive devices to
individuals or groups or willfully aided and abetted an
individual or groups in acquiring unsafeguarded nuclear
materials;
``(B) in the judgment of the President, the government of
such country has provided adequate, verifiable assurances
that it will cease its support for acts of international
terrorism;
``(C) the waiver of that paragraph is in the vital national
security interest of the United States; or
``(D) such a waiver is essential to prevent or respond to a
serious radiological hazard in the country receiving the
waiver that may or does threaten public health and safety.''.
(b) Applicability To Exports Approved for Transfer but Not
Transferred.--Subsection b. of section 129 of Atomic Energy
Act of 1954, as added by subsection (a) of this section,
shall apply with respect to exports that have been approved
for transfer as of the date of the enactment of this Act but
have not yet been transferred as of that date.
SEC. 637. URANIUM ENRICHMENT FACILITIES.
(a) Nuclear Regulatory Commission Review of Applications.--
(1) In general.--In order to facilitate a timely review and
approval of an application in a proceeding for a license for
the construction and operation of a uranium enrichment
facility under sections 53 and 63 of the Atomic Energy Act of
1954 (42 U.S.C. 2073, 2093) (referred to in this subsection
as a ``covered proceeding''), the
[[Page 29162]]
Nuclear Regulatory Commission shall, not later than 30 days
after the receipt of the application, establish, by order,
the schedule for the conduct of any hearing that may be
requested by any person whose interest may be affected by the
covered proceeding.
(2) Final agency decision.--The schedule shall provide that
a final decision by the Commission on the application shall
be made not later than the date that is 2 years after the
date of submission of the application by the applicant.
(3) Compliance with schedule.--
(A) In general.--The Commission shall establish a process
to assess compliance with the schedule established under
paragraph (1) on an ongoing basis during the course of the
review of the application, including ensuring compliance with
schedules and milestones that are established for the conduct
of any covered proceeding by the Atomic Safety and Licensing
Board.
(B) Report.--The Commission shall submit to Congress on a
bimonthly basis a report describing the status of compliance
with the schedule established under paragraph (1), including
a description of the status of actions required to be
completed pursuant to the schedule by officers and employees
of--
(i) the Commission in undertaking the safety and
environmental review of applications; and
(ii) the Atomic Safety and Licensing Board in the conduct
of any covered proceeding.
(4) Environmental review.--
(A) In general.--In evaluating an application under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) for licensing of a facility in a covered proceeding,
the Commission shall limit the consideration of need to
whether the licensing of the facility would advance the
national interest of encouraging in the United States--
(i) additional secure, reliable uranium enrichment
capacity;
(ii) diverse supplies and suppliers of uranium enrichment
capacity; and
(iii) the deployment of advanced centrifuge enrichment
technology.
(B) Comment.--In carrying out subparagraph (A), the
Commission shall consider and solicit the views of other
affected Federal agencies.
(C) Atomic safety and licensing board.--
(i) In general.--Except as provided in clause (ii), in any
covered proceeding, the Commission shall allow the litigation
and resolution by the Atomic Safety and Licensing Board of
issues arising under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.), on the basis of information
submitted by the applicant in its environmental report, prior
to publication of any required environmental impact
statement.
(ii) Exceptions.--On the publication of any required
environmental impact statement, issues may be proffered for
resolution by the Atomic Safety and Licensing Board only if
information or conclusions in the environmental impact
statement differ significantly from the information or
conclusions in the environmental report submitted by the
applicant.
(D) Environmental justice.--In a covered proceeding, the
Commission shall apply the criteria in Appendix C of the
final report entitled ``Environmental Review Guidance for
Licensing Actions Associated with NMSS Programs'' (NUREG-
1748), published in August 2003, in any required review of
environmental justice.
(5) Low-level waste.--In any covered proceeding, the
Commission shall--
(A) deem the obligation of the Secretary of Energy pursuant
to section 3113 of the USEC Privitization Act (42 U.S.C. 2297
h-11) to constitute a plausible strategy with regard to the
disposition of depleted uranium generated by such facility;
and
(B) treat any residual material that remains following the
extraction of any usable resource value from depleted uranium
as low-level radioactive waste under part 61 of title 10,
Code of Federal Regulations.
(6) Adjudicatory hearing on licensing of uranium enrichment
facilities.--Section 193(b) of the Atomic Energy Act of 1954
(42 U.S.C. 2243(b)) is amended by striking paragraph (2) and
inserting the following:
``(2) Timing.--On the issuance of a final decision on the
application by the Atomic Safety and Licensing Board, the
Commission shall issue and make immediately effective any
license for the construction and operation of a uranium
enrichment facility under sections 53 and 63, on a
determination by the Commission that the issuance of the
license would not cause irreparable injury to the public
health and safety or the common defense and security,
notwithstanding the pendency before the Commission of any
appeal or petition for review of any decision of the Atomic
Safety and Licensing Board.''.
(b) Department of Energy Responsibilities.--
(1) In general.--Not later than 180 days after a request is
made to the Secretary of Energy by an applicant for or
recipient of a license for a uranium enrichment facility
under section 53, 63, or 193 of the Atomic Energy Act of 1954
((42 U.S.C. 2073, 2093, 2243), the Secretary shall enter into
a memorandum of agreement with the applicant or licensee that
provides a schedule for the transfer to the Secretary, not
later than 5 years after the generation of any depleted
uranium hexafluoride, of title and possession of the depleted
uranium hexafluoride to be generated by the applicant or
licensee.
(2) Cost.--
(A) In general.--Subject to subparagraphs (B) and (C), the
memorandum of agreement shall specify the cost to be assessed
by the Secretary for the transfer to the Secretary of the
depleted uranium hexafluoride.
(B) Nondiscriminatory basis.--The cost shall be determined
by the Secretary on a nondiscriminatory basis.
(C) Cost.--Taking into account the physical and chemical
characteristics of such depleted uranium hexafluoride, the
cost shall not exceed the cost assessed by the Secretary for
the acceptance of depleted uranium hexafluoride under--
(i) the memorandum of agreement between the United States
Department of Energy and the United States Enrichment
Corporation Relating to Depleted Uranium, dated June 30,
1998; and
(ii) the Agreement Between the U.S. Department of Energy
and USEC Inc., dated June 17, 2002.
SEC. 638. NATIONAL URANIUM STOCKPILE.
(a) Stockpile Creation.--The Secretary of Energy may create
a national low-enriched uranium stockpile with the goals to--
(1) enhance national energy security; and
(2) reduce global proliferation threats.
(b) Source of Material.--The Secretary shall obtain
material for the stockpile from--
(1) material derived from blend-down of Russian highly
enriched uranium derived from weapons materials; and
(2) domestically mined and enriched uranium.
(c) Limitation on Sales or Transfers.--Sales or transfer of
materials in the stockpile shall occur pursuant to section
3112 of the USEC Privitization Act (42 U.S.C. 2297h-10), as
amended by section 630 of this Act.
Subtitle C--Advanced Reactor Hydrogen Cogeneration Project
SEC. 651. PROJECT ESTABLISHMENT.
The Secretary of Energy (in this subtitle referred to as
the ``Secretary'') is directed to establish an Advanced
Reactor Hydrogen Cogeneration Project.
SEC. 652. PROJECT DEFINITION.
The project shall consist of the research, development,
design, construction, and operation of a hydrogen production
cogeneration research facility that, relative to the current
commercial reactors, enhances safety features, reduces waste
production, enhances thermal efficiencies, increases
proliferation resistance, and has the potential for improved
economics and physical security in reactor siting. This
facility shall be constructed so as to enable research and
development on advanced reactors of the type selected and on
alternative approaches for reactor-based production of
hydrogen.
SEC. 653. PROJECT MANAGEMENT.
(a) Management.--The project shall be managed within the
Department by the Office of Nuclear Energy, Science, and
Technology.
(b) Lead Laboratory.--The lead laboratory for the project,
providing the site for the reactor construction, shall be the
Idaho National Engineering and Environmental Laboratory (in
this subtitle referred to as ``INEEL'').
(c) Steering Committee.--The Secretary shall establish a
national steering committee with membership from the national
laboratories, universities, and industry to provide advice to
the Secretary and the Director of the Office of Nuclear
Energy, Science, and Technology on technical and program
management aspects of the project.
(d) Collaboration.--Project activities shall be conducted
at INEEL, other national laboratories, universities, domestic
industry, and international partners.
SEC. 654. PROJECT REQUIREMENTS.
(a) Research and Development.--
(1) In general.--The project shall include planning,
research and development, design, and construction of an
advanced, next-generation, nuclear energy system suitable for
enabling further research and development on advanced reactor
technologies and alternative approaches for reactor-based
generation of hydrogen.
(2) Reactor test capabilities at ineel.--The project shall
utilize, where appropriate, extensive reactor test
capabilities resident at INEEL.
(3) Alternatives.--The project shall be designed to explore
technical, environmental, and economic feasibility of
alternative approaches for reactor-based hydrogen production.
(4) Industrial lead.--The industrial lead for the project
shall be a company incorporated in the United States.
(b) International Collaboration.--
(1) In general.--The Secretary shall seek international
cooperation, participation, and financial contribution in
this project.
(2) Assistance from international partners.--The Secretary
may contract for assistance from specialists or facilities
from member countries of the Generation IV International
Forum, the Russian Federation, or other international
partners where such specialists or facilities provide access
to cost-effective and relevant skills or test capabilities.
(3) Generation iv international forum.--International
activities shall be coordinated with the Generation IV
International Forum.
(4) Generation iv nuclear energy systems program.--The
Secretary may combine this project with the Generation IV
Nuclear Energy Systems Program.
(c) Demonstration.--The overall project, which may involve
demonstration of selected project objectives in a partner
nation, must demonstrate both electricity and hydrogen
production and may provide flexibility, where technically and
economically feasible in the design and construction, to
enable tests of alternative reactor core and cooling
configurations.
[[Page 29163]]
(d) Partnerships.--The Secretary shall establish cost-
shared partnerships with domestic industry or international
participants for the research, development, design,
construction, and operation of the research facility, and
preference in determining the final project structure shall
be given to an overall project which retains United States
leadership while maximizing cost sharing opportunities and
minimizing Federal funding responsibilities.
(e) Target Date.--The Secretary shall select technologies
and develop the project to provide initial testing of either
hydrogen production or electricity generation by 2010, or
provide a report to Congress explaining why this date is not
feasible.
(f) Waiver of Construction Timelines.--The Secretary is
authorized to conduct the Advanced Reactor Hydrogen
Cogeneration Project without the constraints of DOE Order
413.3, relating to program and project management for the
acquisition of capital assets, as necessary to meet the
specified operational date.
(g) Competition.--The Secretary may fund up to 2 teams for
up to 1 year to develop detailed proposals for competitive
evaluation and selection of a single proposal and concept for
further progress. The Secretary shall define the format of
the competitive evaluation of proposals.
(h) Use of Facilities.--Research facilities in industry,
national laboratories, or universities either within the
United States or with cooperating international partners may
be used to develop the enabling technologies for the research
facility. Utilization of domestic university-based facilities
shall be encouraged to provide educational opportunities for
student development.
(i) Role of Nuclear Regulatory Commission.--
(1) In general.--The Nuclear Regulatory Commission shall
have licensing and regulatory authority for any reactor
authorized under this subtitle, pursuant to section 202 of
the Energy Reorganization Act of 1974 (42 U.S.C. 5842).
(2) Risk-based criteria.--The Secretary shall seek active
participation of the Nuclear Regulatory Commission throughout
the project to develop risk-based criteria for any future
commercial development of a similar reactor architecture.
(j) Report--The Secretary shall develop and transmit to
Congress a comprehensive project plan not later than April
30, 2004. The project plan shall be updated annually with
each annual budget submission.
SEC. 655. AUTHORIZATION OF APPROPRIATIONS.
(a) Research, Development, and Design Programs.--The
following sums are authorized to be appropriated to the
Secretary for all activities under this subtitle except for
construction activities described in subsection (b):
(1) For fiscal year 2004, $35,000,000.
(2) For each of fiscal years 2005 through 2008,
$150,000,000.
(3) For fiscal years beyond 2008, such sums as are
necessary.
(b) Construction.--There are authorized to be appropriated
to the Secretary for all project-related construction
activities, to be available until expended, $500,000,000.
Subtitle D--Nuclear Security
SEC. 661. NUCLEAR FACILITY THREATS.
(a) Study.--The President, in consultation with the Nuclear
Regulatory Commission (referred to in this subtitle as the
``Commission'') and other appropriate Federal, State, and
local agencies and private entities, shall conduct a study to
identify the types of threats that pose an appreciable risk
to the security of the various classes of facilities licensed
by the Commission under the Atomic Energy Act of 1954 (42
U.S.C. 2011 et seq.). Such study shall take into account, but
not be limited to--
(1) the events of September 11, 2001;
(2) an assessment of physical, cyber, biochemical, and
other terrorist threats;
(3) the potential for attack on facilities by multiple
coordinated teams of a large number of individuals;
(4) the potential for assistance in an attack from several
persons employed at the facility;
(5) the potential for suicide attacks;
(6) the potential for water-based and air-based threats;
(7) the potential use of explosive devices of considerable
size and other modern weaponry;
(8) the potential for attacks by persons with a
sophisticated knowledge of facility operations;
(9) the potential for fires, especially fires of long
duration;
(10) the potential for attacks on spent fuel shipments by
multiple coordinated teams of a large number of individuals;
(11) the adequacy of planning to protect the public health
and safety at and around nuclear facilities, as appropriate,
in the event of a terrorist attack against a nuclear
facility; and
(12) the potential for theft and diversion of nuclear
materials from such facilities.
(b) Summary and Classification Report.--Not later than 180
days after the date of the enactment of this Act, the
President shall transmit to Congress and the Commission a
report--
(1) summarizing the types of threats identified under
subsection (a); and
(2) classifying each type of threat identified under
subsection (a), in accordance with existing laws and
regulations, as either--
(A) involving attacks and destructive acts, including
sabotage, directed against the facility by an enemy of the
United States, whether a foreign government or other person,
or otherwise falling under the responsibilities of the
Federal Government; or
(B) involving the type of risks that Commission licensees
should be responsible for guarding against.
(c) Federal Action Report.--Not later than 90 days after
the date on which a report is transmitted under subsection
(b), the President shall transmit to Congress a report on
actions taken, or to be taken, to address the types of
threats identified under subsection (b)(2)(A), including
identification of the Federal, State, and local agencies
responsible for carrying out the obligations and authorities
of the United States. Such report may include a classified
annex, as appropriate.
(d) Regulations.--Not later than 180 days after the date on
which a report is transmitted under subsection (b), the
Commission may revise, by rule, the design basis threats
issued before the date of enactment of this section as the
Commission considers appropriate based on the summary and
classification report.
(e) Physical Security Program.--The Commission shall
establish an operational safeguards response evaluation
program that ensures that the physical protection capability
and operational safeguards response for sensitive nuclear
facilities, as determined by the Commission consistent with
the protection of public health and the common defense and
security, shall be tested periodically through Commission
approved or designed, observed, and evaluated force-on-force
exercises to determine whether the ability to defeat the
design basis threat is being maintained. For purposes of this
subsection, the term ``sensitive nuclear facilities''
includes at a minimum commercial nuclear power plants and
category I fuel cycle facilities.
(f) Control of Information.--Notwithstanding any other
provision of law, the Commission may undertake any rulemaking
under this subtitle in a manner that will fully protect
safeguards and classified national security information.
(g) Federal Security Coordinators.--
(1) Regional offices.--Not later than 18 months after the
date of enactment of this Act, the Commission shall assign a
Federal security coordinator, under the employment of the
Commission, to each region of the Commission.
(2) Responsibilities.--The Federal security coordinator
shall be responsible for--
(A) communicating with the Commission and other Federal,
State, and local authorities concerning threats, including
threats against such classes of facilities as the Commission
determines to be appropriate;
(B) ensuring that such classes of facilities as the
Commission determines to be appropriate maintain security
consistent with the security plan in accordance with the
appropriate threat level; and
(C) assisting in the coordination of security measures
among the private security forces at such classes of
facilities as the Commission determines to be appropriate and
Federal, State, and local authorities, as appropriate.
(h) Training Program.--The President shall establish a
program to provide technical assistance and training to
Federal agencies, the National Guard, and State and local law
enforcement and emergency response agencies in responding to
threats against a designated nuclear facility.
SEC. 662. FINGERPRINTING FOR CRIMINAL HISTORY RECORD CHECKS.
(a) In General.--Subsection a. of section 149 of the Atomic
Energy Act of 1954 (42 U.S.C. 2169(a)) is amended--
(1) by striking ``a. The Nuclear'' and all that follows
through ``section 147.'' and inserting the following:
``a. In General.--
``(1) Requirements.--
``(A) In general.-- The Commission shall require each
individual or entity--
``(i) that is licensed or certified to engage in an
activity subject to regulation by the Commission;
``(ii) that has filed an application for a license or
certificate to engage in an activity subject to regulation by
the Commission; or
``(iii) that has notified the Commission, in writing, of an
intent to file an application for licensing, certification,
permitting, or approval of a product or activity subject to
regulation by the Commission,
to fingerprint each individual described in subparagraph (B)
before the individual is permitted unescorted access or
access, whichever is applicable, as described in subparagraph
(B).
``(B) Individuals required to be fingerprinted.--The
Commission shall require to be fingerprinted each individual
who--
``(i) is permitted unescorted access to--
``(I) a utilization facility; or
``(II) radioactive material or other property subject to
regulation by the Commission that the Commission determines
to be of such significance to the public health and safety or
the common defense and security as to warrant fingerprinting
and background checks; or
``(ii) is permitted access to safeguards information under
section 147.'';
(2) by striking ``All fingerprints obtained by a licensee
or applicant as required in the preceding sentence'' and
inserting the following:
``(2) Submission to the attorney general.--All fingerprints
obtained by an individual or entity as required in paragraph
(1)'';
(3) by striking ``The costs of any identification and
records check conducted pursuant to the preceding sentence
shall be paid by the licensee or applicant.'' and inserting
the following:
``(3) Costs.--The costs of any identification and records
check conducted pursuant to paragraph (1) shall be paid by
the individual or entity required to conduct the
fingerprinting under paragraph (1)(A).''; and
[[Page 29164]]
(4) by striking ``Notwithstanding any other provision of
law, the Attorney General may provide all the results of the
search to the Commission, and, in accordance with regulations
prescribed under this section, the Commission may provide
such results to licensee or applicant submitting such
fingerprints.'' and inserting the following:
``(4) Provision to individual or entity required to conduct
fingerprinting.--Notwithstanding any other provision of law,
the Attorney General may provide all the results of the
search to the Commission, and, in accordance with regulations
prescribed under this section, the Commission may provide
such results to the individual or entity required to conduct
the fingerprinting under paragraph (1)(A).''.
(b) Administration--Subsection c. of section 149 of the
Atomic Energy Act of 1954 (42 U.S.C. 2169(c)) is amended--
(1) by striking ``, subject to public notice and comment,
regulations--'' and inserting ``requirements--''; and
(2) by striking, in paragraph (2)(B), ``unescorted access
to the facility of a licensee or applicant'' and inserting
``unescorted access to a utilization facility, radioactive
material, or other property described in subsection
a.(1)(B)''.
(c) Biometric Methods.--Subsection d. of section 149 of the
Atomic Energy Act of 1954 (42 U.S.C. 2169(d)) is redesignated
as subsection e., and the following is inserted after
subsection c.:
``d. Use of Other Biometric Methods.--The Commission may
satisfy any requirement for a person to conduct
fingerprinting under this section using any other biometric
method for identification approved for use by the Attorney
General, after the Commission has approved the alternative
method by rule.''.
SEC. 663. USE OF FIREARMS BY SECURITY PERSONNEL OF LICENSEES
AND CERTIFICATE HOLDERS OF THE COMMISSION.
Section 161 of the Atomic Energy Act of 1954 (42 U.S.C.
2201) is amended by adding at the end the following
subsection:
``(z)(1) notwithstanding section 922(o), (v), and (w) of
title 18, United States Code, or any similar provision of any
State law or any similar rule or regulation of a State or any
political subdivision of a State prohibiting the transfer or
possession of a handgun, a rifle or shotgun, a short-barreled
shotgun, a short-barreled rifle, a machinegun, a
semiautomatic assault weapon, ammunition for the foregoing,
or a large capacity ammunition feeding device, authorize
security personnel of licensees and certificate holders of
the Commission (including employees of contractors of
licensees and certificate holders) to receive, possess,
transport, import, and use 1 or more of those weapons,
ammunition, or devices, if the Commission determines that--
``(A) such authorization is necessary to the discharge of
the security personnel's official duties; and
``(B) the security personnel--
``(i) are not otherwise prohibited from possessing or
receiving a firearm under Federal or State laws pertaining to
possession of firearms by certain categories of persons;
``(ii) have successfully completed requirements established
through guidelines implementing this subsection for training
in use of firearms and tactical maneuvers;
``(iii) are engaged in the protection of--
``(I) facilities owned or operated by a Commission licensee
or certificate holder that are designated by the Commission;
or
``(II) radioactive material or other property owned or
possessed by a person that is a licensee or certificate
holder of the Commission, or that is being transported to or
from a facility owned or operated by such a licensee or
certificate holder, and that has been determined by the
Commission to be of significance to the common defense and
security or public health and safety; and
``(iv) are discharging their official duties.
``(2) Such receipt, possession, transportation,
importation, or use shall be subject to--
``(A) chapter 44 of title 18, United States Code, except
for section 922(a)(4), (o), (v), and (w);
``(B) chapter 53 of title 26, United States Code, except
for section 5844; and
``(C) a background check by the Attorney General, based on
fingerprints and including a check of the system established
under section 103(b) of the Brady Handgun Violence Prevention
Act (18 U.S.C. 922 note) to determine whether the person
applying for the authority is prohibited from possessing or
receiving a firearm under Federal or State law.
``(3) This subsection shall become effective upon the
issuance of guidelines by the Commission, with the approval
of the Attorney General, to govern the implementation of this
subsection.
``(4) In this subsection, the terms ``handgun'', ``rifle'',
``shotgun'', ``firearm'', ``ammunition'', ``machinegun'',
``semiautomatic assault weapon'', ``large capacity ammunition
feeding device'', ``short-barreled shotgun'', and ``short-
barreled rifle'' shall have the meanings given those terms in
section 921(a) of title 18, United States Code.''.
SEC. 664. UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS.
Section 229 a. of the Atomic Energy Act of 1954 (42 U.S.C.
2278a(a)) is amended in the first sentence by inserting ``or
subject to the licensing authority of the Commission or to
certification by the Commission under this Act or any other
Act'' before the period at the end.
SEC. 665. SABOTAGE OF NUCLEAR FACILITIES OR FUEL.
(a) In General.--Section 236 a. of the Atomic Energy Act of
1954 (42 U.S.C. 2284(a)) is amended--
(1) in paragraph (2), by striking ``storage facility'' and
inserting ``storage, treatment, or disposal facility'';
(2) in paragraph (3)--
(A) by striking ``such a utilization facility'' and
inserting ``a utilization facility licensed under this Act'';
and
(B) by striking ``or'' at the end;
(3) in paragraph (4)--
(A) by striking ``facility licensed'' and inserting ``,
uranium conversion, or nuclear fuel fabrication facility
licensed or certified''; and
(B) by striking the comma at the end and inserting a
semicolon; and
(4) by inserting after paragraph (4) the following:
``(5) any production, utilization, waste storage, waste
treatment, waste disposal, uranium enrichment, uranium
conversion, or nuclear fuel fabrication facility subject to
licensing or certification under this Act during construction
of the facility, if the destruction or damage caused or
attempted to be caused could adversely affect public health
and safety during the operation of the facility;
``(6) any primary facility or backup facility from which a
radiological emergency preparedness alert and warning system
is activated; or
``(7) any radioactive material or other property subject to
regulation by the Nuclear Regulatory Commission that, before
the date of the offense, the Nuclear Regulatory Commission
determines, by order or regulation published in the Federal
Register, is of significance to the public health and safety
or to common defense and security,''.
(b) Penalties.--Section 236 of the Atomic Energy Act of
1954 (42 U.S.C. 2284) is amended by striking ``$10,000 or
imprisoned for not more than 20 years, or both, and, if death
results to any person, shall be imprisoned for any term of
years or for life'' both places it appears and inserting
``$1,000,000 or imprisoned for up to life without parole''.
SEC. 666. SECURE TRANSFER OF NUCLEAR MATERIALS.
(a) Amendment.--Chapter 14 of the Atomic Energy Act of 1954
(42 U.S.C. 2201-2210b) is amended by adding at the end the
following new section:
``SEC. 170C. SECURE TRANSFER OF NUCLEAR MATERIALS.
``a. The Nuclear Regulatory Commission shall establish a
system to ensure that materials described in subsection b.,
when transferred or received in the United States by any
party pursuant to an import or export license issued pursuant
to this Act, are accompanied by a manifest describing the
type and amount of materials being transferred or received.
Each individual receiving or accompanying the transfer of
such materials shall be subject to a security background
check conducted by appropriate Federal entities.
``b. Except as otherwise provided by the Commission by
regulation, the materials referred to in subsection a. are
byproduct materials, source materials, special nuclear
materials, high-level radioactive waste, spent nuclear fuel,
transuranic waste, and low-level radioactive waste (as
defined in section 2(16) of the Nuclear Waste Policy Act of
1982 (42 U.S.C. 10101(16))).''.
(b) Regulations.--Not later than 1 year after the date of
the enactment of this Act, and from time to time thereafter
as it considers necessary, the Nuclear Regulatory Commission
shall issue regulations identifying radioactive materials or
classes of individuals that, consistent with the protection
of public health and safety and the common defense and
security, are appropriate exceptions to the requirements of
section 170C of the Atomic Energy Act of 1954, as added by
subsection (a) of this section.
(c) Effective Date.--The amendment made by subsection (a)
shall take effect upon the issuance of regulations under
subsection (b), except that the background check requirement
shall become effective on a date established by the
Commission.
(d) Effect on Other Law.--Nothing in this section or the
amendment made by this section shall waive, modify, or affect
the application of chapter 51 of title 49, United States
Code, part A of subtitle V of title 49, United States Code,
part B of subtitle VI of title 49, United States Code, and
title 23, United States Code.
(e) Table of Sections Amendment.--The table of sections for
chapter 14 of the Atomic Energy Act of 1954 is amended by
adding at the end the following new item:
``Sec. 170C. Secure transfer of nuclear materials.''.
SEC. 667. DEPARTMENT OF HOMELAND SECURITY CONSULTATION.
Before issuing a license for a utilization facility, the
Nuclear Regulatory Commission shall consult with the
Department of Homeland Security concerning the potential
vulnerabilities of the location of the proposed facility to
terrorist attack.
SEC. 668. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated
such sums as are necessary to carry out this subtitle and the
amendments made by this subtitle.
(b) Aggregate Amount of Charges.--Section 6101(c)(2)(A) of
the Omnibus Budget Reconciliation Act of 1990 (42 U.S.C.
2214(c)(2)(A)) is amended--
(1) in clause (i), by striking ``and'' at the end;
(2) in clause (ii), by striking the period at the end and
inserting ``; and'' and
(3) by adding at the end the following:
``(iii) amounts appropriated to the Commission for homeland
security activities of the Commission for the fiscal year,
except for the costs of
[[Page 29165]]
fingerprinting and background checks required by section 149
of the Atomic Energy Act of 1954 (42 U.S.C. 2169) and the
costs of conducting security inspections.''.
TITLE VII--VEHICLES AND FUELS
Subtitle A--Existing Programs
SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED VEHICLES.
Section 400AA(a)(3)(E) of the Energy Policy and
Conservation Act (42 U.S.C. 6374(a)(3)(E)) is amended to read
as follows:
``(E)(i) Dual fueled vehicles acquired pursuant to this
section shall be operated on alternative fuels unless the
Secretary determines that an agency qualifies for a waiver of
such requirement for vehicles operated by the agency in a
particular geographic area in which--
``(I) the alternative fuel otherwise required to be used in
the vehicle is not reasonably available to retail purchasers
of the fuel, as certified to the Secretary by the head of the
agency; or
``(II) the cost of the alternative fuel otherwise required
to be used in the vehicle is unreasonably more expensive
compared to gasoline, as certified to the Secretary by the
head of the agency.
``(ii) The Secretary shall monitor compliance with this
subparagraph by all such fleets and shall report annually to
Congress on the extent to which the requirements of this
subparagraph are being achieved. The report shall include
information on annual reductions achieved from the use of
petroleum-based fuels and the problems, if any, encountered
in acquiring alternative fuels.''.
SEC. 702. NEIGHBORHOOD ELECTRIC VEHICLES.
(a) Amendments.--Section 301 of the Energy Policy Act of
1992 (42 U.S.C. 13211) is amended--
(1) in paragraph (3), by striking ``or a dual fueled
vehicle'' and inserting ``, a dual fueled vehicle, or a
neighborhood electric vehicle'';
(2) in paragraph (13), by striking ``and'' at the end;
(3) in paragraph (14), by striking the period at the end
and inserting ``; and''; and
(4) by adding at the end the following:
``(15) the term `neighborhood electric vehicle' means a
motor vehicle that--
``(A) meets the definition of a low-speed vehicle (as
defined in part 571 of title 49, Code of Federal
Regulations);
``(B) meets the definition of a zero-emission vehicle (as
defined in section 86.1702-99 of title 40, Code of Federal
Regulations);
``(C) meets the requirements of Federal Motor Vehicle
Safety Standard No. 500; and
``(D) has a maximum speed of not greater than 25 miles per
hour.''.
(b) Credits.--Notwithstanding section 508 of the Energy
Policy Act of 1992 (42 U.S.C. 13258) or any other provision
of law, a neighborhood electric vehicle shall not be
allocated credit as more than 1 vehicle for purposes of
determining compliance with any requirement under title III
or title V of such Act.
SEC. 703. CREDITS FOR MEDIUM AND HEAVY DUTY DEDICATED
VEHICLES.
Section 508 of the Energy Policy Act of 1992 (42 U.S.C.
13258) is amended by adding at the end the following:
``(e) Credit for Purchase of Medium and Heavy Duty
Dedicated Vehicles.--
``(1) Definitions.--In this subsection:
``(A) Heavy duty dedicated vehicle.--The term `heavy duty
dedicated vehicle' means a dedicated vehicle that has a gross
vehicle weight rating of more than 14,000 pounds.
``(B) Medium duty dedicated vehicle.--The term `medium duty
dedicated vehicle' means a dedicated vehicle that has a gross
vehicle weight rating of more than 8,500 pounds but not more
than 14,000 pounds.
``(2) Credits for medium duty vehicles.--The Secretary
shall issue 2 full credits to a fleet or covered person under
this title, if the fleet or covered person acquires a medium
duty dedicated vehicle.
``(3) Credits for heavy duty vehicles.--The Secretary shall
issue 3 full credits to a fleet or covered person under this
title, if the fleet or covered person acquires a heavy duty
dedicated vehicle.
``(4) Use of credits.--At the request of a fleet or covered
person allocated a credit under this subsection, the
Secretary shall, for the year in which the acquisition of the
dedicated vehicle is made, treat that credit as the
acquisition of 1 alternative fueled vehicle that the fleet or
covered person is required to acquire under this title.''.
SEC. 704. INCREMENTAL COST ALLOCATION.
Section 303(c) of the Energy Policy Act of 1992 (42 U.S.C.
13212(c)) is amended by striking ``may'' and inserting
``shall''.
SEC. 705. ALTERNATIVE COMPLIANCE AND FLEXIBILITY.
(a) Alternative Compliance.--
(1) In general.--Title V of the Energy Policy Act of 1992
(42 U.S.C. 13251 et seq.) is amended--
(A) by redesignating section 514 as section 515; and
(B) by inserting after section 513 the following:
``SEC. 514. ALTERNATIVE COMPLIANCE.
``(a) Application for Waiver.--Any covered person subject
to section 501 and any State subject to section 507(o) may
petition the Secretary for a waiver of the applicable
requirements of section 501 or 507(o).
``(b) Grant of Waiver.--The Secretary may grant a waiver of
the requirements of section 501 or 507(o) upon a showing that
the fleet owned, operated, leased, or otherwise controlled by
the State or covered person--
``(1) will achieve a reduction in its annual consumption of
petroleum fuels equal to the reduction in consumption of
petroleum that would result from 100 percent compliance with
fuel use requirements in section 501, or, for entities
covered under section 507(o), a reduction equal to the
covered State entity's consumption of alternative fuels if
all its alternative fuel vehicles given credit under section
508 were to use alternative fuel 100 percent of the time; and
``(2) is in compliance with all applicable vehicle emission
standards established by the Administrator under the Clean
Air Act (42 U.S.C. 7401 et seq.).
``(c) Revocation of Waiver.--The Secretary shall revoke any
waiver granted under this section if the State or covered
person fails to comply with subsection (b).''.
(2) Table of contents amendment.--The table of contents of
the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is
amended by striking the item relating to section 514 and
inserting the following:
``Sec. 514. Alternative compliance.
``Sec. 515. Authorization of appropriations.''.
(b) Credits.--Section 508 of the Energy Policy Act of 1992
(42 U.S.C. 13258) (as amended by section 703) is amended--
(1) by redesignating subsections (b) through (e) as
subsections (c) through (f), respectively;
(2) by striking subsection (a) and inserting the following:
``(a) In General.--The Secretary shall allocate a credit to
a fleet or covered person that is required to acquire an
alternative fueled vehicle under this title, if that fleet or
person acquires an alternative fueled vehicle--
``(1) in excess of the number that fleet or person is
required to acquire under this title;
``(2) before the date on which that fleet or person is
required to acquire an alternative fueled vehicle under this
title; or
``(3) that is eligible to receive credit under subsection
(b).
``(b) Maximum Available Power.--The Secretary shall
allocate credit to a fleet under subsection (a)(3) for the
acquisition by the fleet of a hybrid vehicle as follows:
``(1) For a hybrid vehicle with at least 4 percent but less
than 10 percent maximum available power, the Secretary shall
allocate 25 percent of 1 credit.
``(2) For a hybrid vehicle with at least 10 percent but
less than 20 percent maximum available power, the Secretary
shall allocate 50 percent of 1 credit.
``(3) For a hybrid vehicle with at least 20 percent but
less than 30 percent maximum available power, the Secretary
shall allocate 75 percent of 1 credit.
``(4) For a hybrid vehicle with 30 percent or more maximum
available power, the Secretary shall allocate 1 credit.'';
and
(3) by adding at the end the following:
``(g) Credit for Investment in Alternative Fuel
Infrastructure.--
``(1) Definition of qualifying infrastructure.--In this
subsection, the term `qualifying infrastructure' means--
``(A) equipment required to refuel or recharge alternative
fueled vehicles;
``(B) facilities or equipment required to maintain, repair,
or operate alternative fueled vehicles; and
``(C) such other activities as the Secretary considers to
constitute an appropriate expenditure in support of the
operation, maintenance, or further widespread adoption of or
utilization of alternative fueled vehicles.
``(2) Issuance of credits.--The Secretary shall issue a
credit to a fleet or covered person under this title for
investment in qualifying infrastructure if the qualifying
infrastructure is open to the general public during regular
business hours.
``(3) Amount.--For the purpose of credits under this
subsection--
``(A) 1 credit shall be equal to a minimum investment of
$25,000 in cash or equivalent expenditure, as determined by
the Secretary; and
``(B) except in the case of a Federal or State fleet, no
part of the investment may be provided by Federal or State
funds.
``(4) Use of credits.--At the request of a fleet or covered
person allocated a credit under this subsection, the
Secretary shall, for the year in which the investment is
made, treat that credit as the acquisition of 1 alternative
fueled vehicle that the fleet or covered person is required
to acquire under this title.
``(h) Definition of Maximum Available Power.--In this
section, the term `maximum available power' means the
quotient obtained by dividing--
``(1) the maximum power available from the energy storage
device of a hybrid vehicle, during a standard 10-second pulse
power or equivalent test; by
``(2) the sum of--
``(A) the maximum power described in subparagraph (A); and
``(B) the net power of the internal combustion or heat
engine, as determined in accordance with standards
established by the Society of Automobile Engineers.''.
(c) Lease Condensate Fuels.--Section 301 of the Energy
Policy Act of 1992 (42 U.S.C. 13211) (as amended by section
702) is amended--
(1) in paragraph (2), by inserting ``mixtures containing 50
percent or more by volume of lease condensate or fuels
extracted from lease condensate;'' after ``liquefied
petroleum gas;'';
(2) in paragraph (14)--
(A) by inserting ``mixtures containing 50 percent or more
by volume of lease condensate or fuels extracted from lease
condensate,'' after ``liquefied petroleum gas,''; and
(B) by striking ``and'' at the end;
[[Page 29166]]
(3) in paragraph (15), by striking the period at the end
and inserting ``; and''; and
(4) by adding at the end the following:
``(16) the term `lease condensate' means a mixture,
primarily of pentanes and heavier hydrocarbons, that is
recovered as a liquid from natural gas in lease separation
facilities.''.
(d) Lease Condensate Use Credits.--
(1) In general.--Title III of the Energy Policy Act of 1992
(42 U.S.C. 13211 et seq.) is amended by adding at the end the
following:
``SEC. 313. LEASE CONDENSATE USE CREDITS.
``(a) In General.--Subject to subsection (d), the Secretary
shall allocate 1 credit under this section to a fleet or
covered person for each qualifying volume of the lease
condensate component of fuel containing at least 50 percent
lease condensate, or fuels extracted from lease condensate,
after the date of enactment of this section for use by the
fleet or covered person in vehicles owned or operated by the
fleet or covered person that weigh more than 8,500 pounds
gross vehicle weight rating.
``(b) Requirements.--A credit allocated under this
section--
``(1) shall be subject to the same exceptions, authority,
documentation, and use of credits that are specified for
qualifying volumes of biodiesel in section 312; and
``(2) shall not be considered a credit under section 508.
``(c) Regulation.--
``(1) In general.--Subject to subsection (d), not later
than January 1, 2004, after the collection of appropriate
information and data that consider usage options, uses in
other industries, products, or processes, potential volume
capacities, costs, air emissions, and fuel efficiencies, the
Secretary shall issue a regulation establishing requirements
and procedures for the implementation of this section.
``(2) Qualifying volume.--The regulation shall include a
determination of an appropriate qualifying volume for lease
condensate, except that in no case shall the Secretary
determine that the qualifying volume for lease condensate is
less than 1,125 gallons.
``(d) Applicability.--This section applies unless the
Secretary finds that the use of lease condensate as an
alternative fuel would adversely affect public health or
safety or ambient air quality or the environment.''.
(2) Table of contents amendment.--The table of contents of
the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is
amended by adding at the end of the items relating to title
III the following:
``Sec. 313. Lease condensate use credits.''.
(e) Emergency Exemption.--Section 301 of the Energy Policy
Act of 1992 (42 U.S.C. 13211) (as amended by section 702 and
this section) is amended in paragraph (9)(E) by inserting
before the semicolon at the end ``, including vehicles
directly used in the emergency repair of transmission lines
and in the restoration of electricity service following power
outages, as determined by the Secretary''.
SEC. 706. REVIEW OF ENERGY POLICY ACT OF 1992 PROGRAMS.
(a) In General.--Not later than 180 days after the date of
enactment of this section, the Secretary of Energy shall
complete a study to determine the effect that titles III, IV,
and V of the Energy Policy Act of 1992 (42 U.S.C. 13211 et
seq.) have had on--
(1) the development of alternative fueled vehicle
technology;
(2) the availability of that technology in the market; and
(3) the cost of alternative fueled vehicles.
(b) Topics.--As part of the study under subsection (a), the
Secretary shall specifically identify--
(1) the number of alternative fueled vehicles acquired by
fleets or covered persons required to acquire alternative
fueled vehicles;
(2) the quantity, by type, of alternative fuel actually
used in alternative fueled vehicles acquired by fleets or
covered persons;
(3) the quantity of petroleum displaced by the use of
alternative fuels in alternative fueled vehicles acquired by
fleets or covered persons;
(4) the direct and indirect costs of compliance with
requirements under titles III, IV, and V of the Energy Policy
Act of 1992 (42 U.S.C. 13211 et seq.), including--
(A) vehicle acquisition requirements imposed on fleets or
covered persons;
(B) administrative and recordkeeping expenses;
(C) fuel and fuel infrastructure costs;
(D) associated training and employee expenses; and
(E) any other factors or expenses the Secretary determines
to be necessary to compile reliable estimates of the overall
costs and benefits of complying with programs under those
titles for fleets, covered persons, and the national economy;
(5) the existence of obstacles preventing compliance with
vehicle acquisition requirements and increased use of
alternative fuel in alternative fueled vehicles acquired by
fleets or covered persons; and
(6) the projected impact of amendments to the Energy Policy
Act of 1992 made by this title.
(c) Report.--Upon completion of the study under this
section, the Secretary shall submit to Congress a report that
describes the results of the study and includes any
recommendations of the Secretary for legislative or
administrative changes concerning the alternative fueled
vehicle requirements under titles III, IV and V of the Energy
Policy Act of 1992 (42 U.S.C. 13211 et seq.).
SEC. 707. REPORT CONCERNING COMPLIANCE WITH ALTERNATIVE
FUELED VEHICLE PURCHASING REQUIREMENTS.
Section 310(b)(1) of the Energy Policy Act of 1992 (42
U.S.C. 13218(b)(1)) is amended by striking ``1 year after the
date of enactment of this subsection'' and inserting
``February 15, 2004''.
Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses
PART 1--HYBRID VEHICLES
SEC. 711. HYBRID VEHICLES.
The Secretary of Energy shall accelerate efforts directed
toward the improvement of batteries and other rechargeable
energy storage systems, power electronics, hybrid systems
integration, and other technologies for use in hybrid
vehicles.
PART 2--ADVANCED VEHICLES
SEC. 721. DEFINITIONS.
In this part:
(1) Alternative fueled vehicle.--
(A) In general.--The term ``alternative fueled vehicle''
means a vehicle propelled solely on an alternative fuel (as
defined in section 301 of the Energy Policy Act of 1992 (42
U.S.C. 13211)).
(B) Exclusion.--The term ``alternative fueled vehicle''
does not include a vehicle that the Secretary determines, by
regulation, does not yield substantial environmental benefits
over a vehicle operating solely on gasoline or diesel derived
from fossil fuels.
(2) Fuel cell vehicle.--The term ``fuel cell vehicle''
means a vehicle propelled by an electric motor powered by a
fuel cell system that converts chemical energy into
electricity by combining oxygen (from air) with hydrogen fuel
that is stored on the vehicle or is produced onboard by
reformation of a hydrocarbon fuel. Such fuel cell system may
or may not include the use of auxiliary energy storage
systems to enhance vehicle performance.
(3) Hybrid vehicle.--The term ``hybrid vehicle'' means a
medium or heavy duty vehicle propelled by an internal
combustion engine or heat engine using any combustible fuel
and an onboard rechargeable energy storage device.
(4) Neighborhood electric vehicle.--The term ``neighborhood
electric vehicle'' means a motor vehicle that--
(A) meets the definition of a low-speed vehicle (as defined
in part 571 of title 49, Code of Federal Regulations);
(B) meets the definition of a zero-emission vehicle (as
defined in section 86.1702-99 of title 40, Code of Federal
Regulations);
(C) meets the requirements of Federal Motor Vehicle Safety
Standard No. 500; and
(D) has a maximum speed of not greater than 25 miles per
hour.
(5) Pilot program.--The term ``pilot program'' means the
competitive grant program established under section 722.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(7) Ultra-low sulfur diesel vehicle.--The term ``ultra-low
sulfur diesel vehicle'' means a vehicle manufactured in any
of model years 2003 through 2006 powered by a heavy-duty
diesel engine that--
(A) is fueled by diesel fuel that contains sulfur at not
more than 15 parts per million; and
(B) emits not more than the lesser of--
(i) for vehicles manufactured in--
(I) model year 2003, 3.0 grams per brake horsepower-hour of
oxides of nitrogen and .01 grams per brake horsepower-hour of
particulate matter; and
(II) model years 2004 through 2006, 2.5 grams per brake
horsepower-hour of nonmethane hydrocarbons and oxides of
nitrogen and .01 grams per brake horsepower-hour of
particulate matter; or
(ii) the quantity of emissions of nonmethane hydrocarbons,
oxides of nitrogen, and particulate matter of the best-
performing technology of ultra-low sulfur diesel vehicles of
the same class and application that are commercially
available.
SEC. 722. PILOT PROGRAM.
(a) Establishment.--The Secretary, in consultation with the
Secretary of Transportation, shall establish a competitive
grant pilot program, to be administered through the Clean
Cities Program of the Department of Energy, to provide not
more than 15 geographically dispersed project grants to State
governments, local governments, or metropolitan
transportation authorities to carry out a project or projects
for the purposes described in subsection (b).
(b) Grant Purposes.--A grant under this section may be used
for the following purposes:
(1) The acquisition of alternative fueled vehicles or fuel
cell vehicles, including--
(A) passenger vehicles (including neighborhood electric
vehicles); and
(B) motorized 2-wheel bicycles, scooters, or other vehicles
for use by law enforcement personnel or other State or local
government or metropolitan transportation authority
employees.
(2) The acquisition of alternative fueled vehicles, hybrid
vehicles, or fuel cell vehicles, including--
(A) buses used for public transportation or transportation
to and from schools;
(B) delivery vehicles for goods or services; and
(C) ground support vehicles at public airports (including
vehicles to carry baggage or push or pull airplanes toward or
away from terminal gates).
(3) The acquisition of ultra-low sulfur diesel vehicles.
(4) Installation or acquisition of infrastructure necessary
to directly support an alternative fueled vehicle, fuel cell
vehicle, or hybrid vehicle project funded by the grant,
including fueling and other support equipment.
[[Page 29167]]
(5) Operation and maintenance of vehicles, infrastructure,
and equipment acquired as part of a project funded by the
grant.
(c) Applications.--
(1) Requirements.--
(A) In general.--The Secretary shall issue requirements for
applying for grants under the pilot program.
(B) Minimum requirements.--At a minimum, the Secretary
shall require that an application for a grant--
(i) be submitted by the head of a State or local government
or a metropolitan transportation authority, or any
combination thereof, and a registered participant in the
Clean Cities Program of the Department of Energy; and
(ii) include--
(I) a description of the project proposed in the
application, including how the project meets the requirements
of this part;
(II) an estimate of the ridership or degree of use of the
project;
(III) an estimate of the air pollution emissions reduced
and fossil fuel displaced as a result of the project, and a
plan to collect and disseminate environmental data, related
to the project to be funded under the grant, over the life of
the project;
(IV) a description of how the project will be sustainable
without Federal assistance after the completion of the term
of the grant;
(V) a complete description of the costs of the project,
including acquisition, construction, operation, and
maintenance costs over the expected life of the project;
(VI) a description of which costs of the project will be
supported by Federal assistance under this part; and
(VII) documentation to the satisfaction of the Secretary
that diesel fuel containing sulfur at not more than 15 parts
per million is available for carrying out the project, and a
commitment by the applicant to use such fuel in carrying out
the project.
(2) Partners.--An applicant under paragraph (1) may carry
out a project under the pilot program in partnership with
public and private entities.
(d) Selection Criteria.--In evaluating applications under
the pilot program, the Secretary shall--
(1) consider each applicant's previous experience with
similar projects; and
(2) give priority consideration to applications that--
(A) are most likely to maximize protection of the
environment;
(B) demonstrate the greatest commitment on the part of the
applicant to ensure funding for the proposed project and the
greatest likelihood that the project will be maintained or
expanded after Federal assistance under this part is
completed; and
(C) exceed the minimum requirements of subsection
(c)(1)(B)(ii).
(e) Pilot Project Requirements.--
(1) Maximum amount.--The Secretary shall not provide more
than $20,000,000 in Federal assistance under the pilot
program to any applicant.
(2) Cost sharing.--The Secretary shall not provide more
than 50 percent of the cost, incurred during the period of
the grant, of any project under the pilot program.
(3) Maximum period of grants.--The Secretary shall not fund
any applicant under the pilot program for more than 5 years.
(4) Deployment and distribution.--The Secretary shall seek
to the maximum extent practicable to ensure a broad
geographic distribution of project sites.
(5) Transfer of information and knowledge.--The Secretary
shall establish mechanisms to ensure that the information and
knowledge gained by participants in the pilot program are
transferred among the pilot program participants and to other
interested parties, including other applicants that submitted
applications.
(f) Schedule.--
(1) Publication.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall publish in the
Federal Register, Commerce Business Daily, and elsewhere as
appropriate, a request for applications to undertake projects
under the pilot program. Applications shall be due not later
than 180 days after the date of publication of the notice.
(2) Selection.--Not later than 180 days after the date by
which applications for grants are due, the Secretary shall
select by competitive, peer reviewed proposal, all
applications for projects to be awarded a grant under the
pilot program.
(g) Limit on Funding.--The Secretary shall provide not less
than 20 nor more than 25 percent of the grant funding made
available under this section for the acquisition of ultra-low
sulfur diesel vehicles.
SEC. 723. REPORTS TO CONGRESS.
(a) Initial Report.--Not later than 60 days after the date
on which grants are awarded under this part, the Secretary
shall submit to Congress a report containing--
(1) an identification of the grant recipients and a
description of the projects to be funded;
(2) an identification of other applicants that submitted
applications for the pilot program; and
(3) a description of the mechanisms used by the Secretary
to ensure that the information and knowledge gained by
participants in the pilot program are transferred among the
pilot program participants and to other interested parties,
including other applicants that submitted applications.
(b) Evaluation.--Not later than 3 years after the date of
enactment of this Act, and annually thereafter until the
pilot program ends, the Secretary shall submit to Congress a
report containing an evaluation of the effectiveness of the
pilot program, including--
(1) an assessment of the benefits to the environment
derived from the projects included in the pilot program; and
(2) an estimate of the potential benefits to the
environment to be derived from widespread application of
alternative fueled vehicles and ultra-low sulfur diesel
vehicles.
SEC. 724. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary to
carry out this part $200,000,000, to remain available until
expended.
PART 3--FUEL CELL BUSES
SEC. 731. FUEL CELL TRANSIT BUS DEMONSTRATION.
(a) In General.--The Secretary of Energy, in consultation
with the Secretary of Transportation, shall establish a
transit bus demonstration program to make competitive, merit-
based awards for 5-year projects to demonstrate not more than
25 fuel cell transit buses (and necessary infrastructure) in
5 geographically dispersed localities.
(b) Preference.--In selecting projects under this section,
the Secretary of Energy shall give preference to projects
that are most likely to mitigate congestion and improve air
quality.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy to carry out
this section $10,000,000 for each of fiscal years 2004
through 2008.
Subtitle C--Clean School Buses
SEC. 741. DEFINITIONS.
In this subtitle:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Alternative fuel.--The term ``alternative fuel'' means
liquefied natural gas, compressed natural gas, liquefied
petroleum gas, hydrogen, propane, or methanol or ethanol at
no less than 85 percent by volume.
(3) Alternative fuel school bus.--The term ``alternative
fuel school bus'' means a school bus that meets all of the
requirements of this subtitle and is operated solely on an
alternative fuel.
(4) Emissions control retrofit technology.--The term
``emissions control retrofit technology'' means a particulate
filter or other emissions control equipment that is verified
or certified by the Administrator or the California Air
Resources Board as an effective emission reduction technology
when installed on an existing school bus.
(5) Idling.--The term ``idling'' means operating an engine
while remaining stationary for more than approximately 15
minutes, except that the term does not apply to routine
stoppages associated with traffic movement or congestion.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(7) Ultra-low sulfur diesel fuel.--The term ``ultra-low
sulfur diesel fuel'' means diesel fuel that contains sulfur
at not more than 15 parts per million.
(8) Ultra-low sulfur diesel fuel school bus.--The term
``ultra-low sulfur diesel fuel school bus'' means a school
bus that meets all of the requirements of this subtitle and
is operated solely on ultra-low sulfur diesel fuel.
SEC. 742. PROGRAM FOR REPLACEMENT OF CERTAIN SCHOOL BUSES
WITH CLEAN SCHOOL BUSES.
(a) Establishment.--The Administrator, in consultation with
the Secretary and other appropriate Federal departments and
agencies, shall establish a program for awarding grants on a
competitive basis to eligible entities for the replacement of
existing school buses manufactured before model year 1991
with alternative fuel school buses and ultra-low sulfur
diesel fuel school buses.
(b) Requirements.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall establish and
publish in the Federal Register grant requirements on
eligibility for assistance, and on implementation of the
program established under subsection (a), including
instructions for the submission of grant applications and
certification requirements to ensure compliance with this
subtitle.
(2) Application deadlines.--The requirements established
under paragraph (1) shall require submission of grant
applications not later than--
(A) in the case of the first year of program
implementation, the date that is 180 days after the
publication of the requirements in the Federal Register; and
(B) in the case of each subsequent year, June 1 of the
year.
(c) Eligible Recipients.--A grant shall be awarded under
this section only--
(1) to 1 or more local or State governmental entities
responsible for providing school bus service to 1 or more
public school systems or responsible for the purchase of
school buses;
(2) to 1 or more contracting entities that provide school
bus service to 1 or more public school systems, if the grant
application is submitted jointly with the 1 or more school
systems to be served by the buses, except that the
application may provide that buses purchased using funds
awarded shall be owned, operated, and maintained exclusively
by the 1 or more contracting entities; or
(3) to a nonprofit school transportation association
representing private contracting entities,
[[Page 29168]]
if the association has notified and received approval from
the 1 or more school systems to be served by the buses.
(d) Award Deadlines.--
(1) In general.--Subject to paragraph (2), the
Administrator shall award a grant made to a qualified
applicant for a fiscal year--
(A) in the case of the first fiscal year of program
implementation, not later than the date that is 90 days after
the application deadline established under subsection (b)(2);
and
(B) in the case of each subsequent fiscal year, not later
than August 1 of the fiscal year.
(2) Insufficient number of qualified grant applications.--
If the Administrator does not receive a sufficient number of
qualified grant applications to meet the requirements of
subsection (i)(1) for a fiscal year, the Administrator shall
award a grant made to a qualified applicant under subsection
(i)(2) not later than September 30 of the fiscal year.
(e) Types of Grants.--
(1) In general.--A grant under this section shall be used
for the replacement of school buses manufactured before model
year 1991 with alternative fuel school buses and ultra-low
sulfur diesel fuel school buses.
(2) No economic benefit.--Other than the receipt of the
grant, a recipient of a grant under this section may not
receive any economic benefit in connection with the receipt
of the grant.
(3) Priority of grant applications.--The Administrator
shall give priority to applicants that propose to replace
school buses manufactured before model year 1977.
(f) Conditions of Grant.--A grant provided under this
section shall include the following conditions:
(1) School bus fleet.--All buses acquired with funds
provided under the grant shall be operated as part of the
school bus fleet for which the grant was made for a minimum
of 5 years.
(2) Use of funds.--Funds provided under the grant may only
be used--
(A) to pay the cost, except as provided in paragraph (3),
of new alternative fuel school buses or ultra-low sulfur
diesel fuel school buses, including State taxes and contract
fees associated with the acquisition of such buses; and
(B) to provide--
(i) up to 20 percent of the price of the alternative fuel
school buses acquired, for necessary alternative fuel
infrastructure if the infrastructure will only be available
to the grant recipient; and
(ii) up to 25 percent of the price of the alternative fuel
school buses acquired, for necessary alternative fuel
infrastructure if the infrastructure will be available to the
grant recipient and to other bus fleets.
(3) Grant recipient funds.--The grant recipient shall be
required to provide at least--
(A) in the case of a grant recipient described in paragraph
(1) or (3) of subsection (c), the lesser of--
(i) an amount equal to 15 percent of the total cost of each
bus received; or
(ii) $15,000 per bus; and
(B) in the case of a grant recipient described in
subsection (c)(2), the lesser of--
(i) an amount equal to 20 percent of the total cost of each
bus received; or
(ii) $20,000 per bus.
(4) Ultra-low sulfur diesel fuel.--In the case of a grant
recipient receiving a grant for ultra-low sulfur diesel fuel
school buses, the grant recipient shall be required to
provide documentation to the satisfaction of the
Administrator that diesel fuel containing sulfur at not more
than 15 parts per million is available for carrying out the
purposes of the grant, and a commitment by the applicant to
use such fuel in carrying out the purposes of the grant.
(5) Timing.--All alternative fuel school buses, ultra-low
sulfur diesel fuel school buses, or alternative fuel
infrastructure acquired under a grant awarded under this
section shall be purchased and placed in service as soon as
practicable.
(g) Buses.--
(1) In general.--Except as provided in paragraph (2),
funding under a grant made under this section for the
acquisition of new alternative fuel school buses or ultra-low
sulfur diesel fuel school buses shall only be used to acquire
school buses--
(A) with a gross vehicle weight of greater than 14,000
pounds;
(B) that are powered by a heavy duty engine;
(C) in the case of alternative fuel school buses
manufactured in model years 2004 through 2006, that emit not
more than 1.8 grams per brake horsepower-hour of nonmethane
hydrocarbons and oxides of nitrogen and .01 grams per brake
horsepower-hour of particulate matter; and
(D) in the case of ultra-low sulfur diesel fuel school
buses manufactured in model years 2004 through 2006, that
emit not more than 2.5 grams per brake horsepower-hour of
nonmethane hydrocarbons and oxides of nitrogen and .01 grams
per brake horsepower-hour of particulate matter.
(2) Limitations.--A bus shall not be acquired under this
section that emits nonmethane hydrocarbons, oxides of
nitrogen, or particulate matter at a rate greater than the
best performing technology of the same class of ultra-low
sulfur diesel fuel school buses commercially available at the
time the grant is made.
(h) Deployment and Distribution.--The Administrator shall--
(1) seek, to the maximum extent practicable, to achieve
nationwide deployment of alternative fuel school buses and
ultra-low sulfur diesel fuel school buses through the program
under this section; and
(2) ensure a broad geographic distribution of grant awards,
with a goal of no State receiving more than 10 percent of the
grant funding made available under this section for a fiscal
year.
(i) Allocation of Funds.--
(1) In general.--Subject to paragraph (2), of the amount of
grant funding made available to carry out this section for
any fiscal year, the Administrator shall use--
(A) 70 percent for the acquisition of alternative fuel
school buses or supporting infrastructure; and
(B) 30 percent for the acquisition of ultra-low sulfur
diesel fuel school buses.
(2) Insufficient number of qualified grant applications.--
After the first fiscal year in which this program is in
effect, if the Administrator does not receive a sufficient
number of qualified grant applications to meet the
requirements of subparagraph (A) or (B) of paragraph (1) for
a fiscal year, effective beginning on August 1 of the fiscal
year, the Administrator shall make the remaining funds
available to other qualified grant applicants under this
section.
(j) Reduction of School Bus Idling.--Each local educational
agency (as defined in section 9101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801)) that
receives Federal funds under the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301 et seq.) is encouraged
to develop a policy, consistent with the health, safety, and
welfare of students and the proper operation and maintenance
of school buses, to reduce the incidence of unnecessary
school bus idling at schools when picking up and unloading
students.
(k) Annual Report.--
(1) In general.--Not later than January 31 of each year,
the Administrator shall transmit to Congress a report
evaluating implementation of the programs under this section
and section 743.
(2) Components.--The reports shall include a description
of--
(A) the total number of grant applications received;
(B) the number and types of alternative fuel school buses,
ultra-low sulfur diesel fuel school buses, and retrofitted
buses requested in grant applications;
(C) grants awarded and the criteria used to select the
grant recipients;
(D) certified engine emission levels of all buses purchased
or retrofitted under the programs under this section and
section 743;
(E) an evaluation of the in-use emission level of buses
purchased or retrofitted under the programs under this
section and section 743; and
(F) any other information the Administrator considers
appropriate.
(l) Authorization of Appropriations.--There are authorized
to be appropriated to the Administrator to carry out this
section, to remain available until expended--
(1) $45,000,000 for fiscal year 2005;
(2) $65,000,000 for fiscal year 2006;
(3) $90,000,000 for fiscal year 2007; and
(4) such sums as are necessary for each of fiscal years
2008 and 2009.
SEC. 743. DIESEL RETROFIT PROGRAM.
(a) Establishment.--The Administrator, in consultation with
the Secretary, shall establish a program for awarding grants
on a competitive basis to entities for the installation of
retrofit technologies for diesel school buses.
(b) Eligible Recipients.--A grant shall be awarded under
this section only--
(1) to a local or State governmental entity responsible for
providing school bus service to 1 or more public school
systems;
(2) to 1 or more contracting entities that provide school
bus service to 1 or more public school systems, if the grant
application is submitted jointly with the 1 or more school
systems that the buses will serve, except that the
application may provide that buses purchased using funds
awarded shall be owned, operated, and maintained exclusively
by the 1 or more contracting entities; or
(3) to a nonprofit school transportation association
representing private contracting entities, if the association
has notified and received approval from the 1 or more school
systems to be served by the buses.
(c) Awards.--
(1) In general.--The Administrator shall seek, to the
maximum extent practicable, to ensure a broad geographic
distribution of grants under this section.
(2) Preferences.--In making awards of grants under this
section, the Administrator shall give preference to proposals
that--
(A) will achieve the greatest reductions in emissions of
nonmethane hydrocarbons, oxides of nitrogen, or particulate
matter per proposal or per bus; or
(B) involve the use of emissions control retrofit
technology on diesel school buses that operate solely on
ultra-low sulfur diesel fuel.
(d) Conditions of Grant.--A grant shall be provided under
this section on the conditions that--
(1) buses on which retrofit emissions-control technology
are to be demonstrated--
(A) will operate on ultra-low sulfur diesel fuel where such
fuel is reasonably available or required for sale by State or
local law or regulation;
(B) were manufactured in model year 1991 or later; and
(C) will be used for the transportation of school children
to and from school for a minimum of 5 years;
(2) grant funds will be used for the purchase of emission
control retrofit technology, including State taxes and
contract fees; and
[[Page 29169]]
(3) grant recipients will provide at least 15 percent of
the total cost of the retrofit, including the purchase of
emission control retrofit technology and all necessary labor
for installation of the retrofit.
(e) Verification.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall publish in the
Federal Register procedures to verify--
(1) the retrofit emissions-control technology to be
demonstrated;
(2) that buses powered by ultra-low sulfur diesel fuel on
which retrofit emissions-control technology are to be
demonstrated will operate on diesel fuel containing not more
than 15 parts per million of sulfur; and
(3) that grants are administered in accordance with this
section.
(f) Authorization of Appropriations.--There are authorized
to be appropriated to the Administrator to carry out this
section, to remain available until expended--
(1) $20,000,000 for fiscal year 2005;
(2) $35,000,000 for fiscal year 2006;
(3) $45,000,000 for fiscal year 2007; and
(4) such sums as are necessary for each of fiscal years
2008 and 2009.
SEC. 744. FUEL CELL SCHOOL BUSES.
(a) Establishment.--The Secretary shall establish a program
for entering into cooperative agreements--
(1) with private sector fuel cell bus developers for the
development of fuel cell-powered school buses; and
(2) subsequently, with not less than 2 units of local
government using natural gas-powered school buses and such
private sector fuel cell bus developers to demonstrate the
use of fuel cell-powered school buses.
(b) Cost Sharing.--The non-Federal contribution for
activities funded under this section shall be not less than--
(1) 20 percent for fuel infrastructure development
activities; and
(2) 50 percent for demonstration activities and for
development activities not described in paragraph (1).
(c) Reports to Congress.--Not later than 3 years after the
date of enactment of this Act, the Secretary shall transmit
to Congress a report that--
(1) evaluates the process of converting natural gas
infrastructure to accommodate fuel cell-powered school buses;
and
(2) assesses the results of the development and
demonstration program under this section.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section
$25,000,000 for the period of fiscal years 2004 through 2006.
Subtitle D--Miscellaneous
SEC. 751. RAILROAD EFFICIENCY.
(a) Establishment.--The Secretary of Energy shall, in
cooperation with the Secretary of Transportation and the
Administrator of the Environmental Protection Agency,
establish a cost-shared, public-private research partnership
involving the Federal Government, railroad carriers,
locomotive manufacturers and equipment suppliers, and the
Association of American Railroads, to develop and demonstrate
railroad locomotive technologies that increase fuel economy,
reduce emissions, and lower costs of operation.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy to carry out
this section--
(1) $25,000,000 for fiscal year 2005;
(2) $35,000,000 for fiscal year 2006; and
(3) $50,000,000 for fiscal year 2007.
SEC. 752. MOBILE EMISSION REDUCTIONS TRADING AND CREDITING.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Administrator of the Environmental
Protection Agency shall submit to Congress a report on the
experience of the Administrator with the trading of mobile
source emission reduction credits for use by owners and
operators of stationary source emission sources to meet
emission offset requirements within a nonattainment area.
(b) Contents.--The report shall describe--
(1) projects approved by the Administrator that include the
trading of mobile source emission reduction credits for use
by stationary sources in complying with offset requirements,
including a description of--
(A) project and stationary sources location;
(B) volumes of emissions offset and traded;
(C) the sources of mobile emission reduction credits; and
(D) if available, the cost of the credits;
(2) the significant issues identified by the Administrator
in consideration and approval of trading in the projects;
(3) the requirements for monitoring and assessing the air
quality benefits of any approved project;
(4) the statutory authority on which the Administrator has
based approval of the projects;
(5) an evaluation of how the resolution of issues in
approved projects could be used in other projects; and
(6) any other issues that the Administrator considers
relevant to the trading and generation of mobile source
emission reduction credits for use by stationary sources or
for other purposes.
SEC. 753. AVIATION FUEL CONSERVATION AND EMISSIONS.
(a) In General.--Not later than 60 days after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration and the Administrator of the
Environmental Protection Agency shall jointly initiate a
study to identify--
(1) the impact of aircraft emissions on air quality in
nonattainment areas; and
(2) ways to promote fuel conservation measures for aviation
to--
(A) enhance fuel efficiency; and
(B) reduce emissions.
(b) Focus.--The study under subsection (a) shall focus on
how air traffic management inefficiencies, such as aircraft
idling at airports, result in unnecessary fuel burn and air
emissions.
(c) Report.--Not later than 1 year after the date of the
initiation of the study under subsection (a), the
Administrator of the Federal Aviation Administration and the
Administrator of the Environmental Protection Agency shall
jointly submit to the Committee on Energy and Commerce and
the Committee on Transportation and Infrastructure of the
House of Representatives and the Committee on Environment and
Public Works and the Committee on Commerce, Science, and
Transportation of the Senate a report that--
(1) describes the results of the study; and
(2) includes any recommendations on ways in which
unnecessary fuel use and emissions affecting air quality may
be reduced--
(A) without adversely affecting safety and security and
increasing individual aircraft noise; and
(B) while taking into account all aircraft emissions and
the impact of the emissions on human health.
SEC. 754. DIESEL FUELED VEHICLES.
(a) Definition of Tier 2 Emission Standards.--In this
section, the term ``tier 2 emission standards'' means the
motor vehicle emission standards that apply to passenger
cars, light trucks, and larger passenger vehicles
manufactured after the 2003 model year, as issued on February
10, 2000, by the Administrator of the Environmental
Protection Agency under sections 202 and 211 of the Clean Air
Act (42 U.S.C. 7521, 7545).
(b) Diesel Combustion and After-Treatment Technologies.--
The Secretary of Energy shall accelerate efforts to improve
diesel combustion and after-treatment technologies for use in
diesel fueled motor vehicles.
(c) Goals.--The Secretary shall carry out subsection (b)
with a view toward achieving the following goals:
(1) Developing and demonstrating diesel technologies that,
not later than 2010, meet the following standards:
(A) Tier 2 emission standards.
(B) The heavy-duty emissions standards of 2007 that are
applicable to heavy-duty vehicles under regulations issued by
the Administrator of the Environmental Protection Agency as
of the date of enactment of this Act.
(2) Developing the next generation of low-emission, high
efficiency diesel engine technologies, including homogeneous
charge compression ignition technology.
SEC. 755. CONSERVE BY BICYCLING PROGRAM.
(a) Definitions.--In this section:
(1) Program.--The term ``program'' means the Conserve by
Bicycling Program established by subsection (b).
(2) Secretary.--The term ``Secretary'' means the Secretary
of Transportation.
(b) Establishment.--There is established within the
Department of Transportation a program to be known as the
``Conserve by Bicycling Program''.
(c) Projects.--
(1) In general.--In carrying out the program, the Secretary
shall establish not more than 10 pilot projects that are--
(A) dispersed geographically throughout the United States;
and
(B) designed to conserve energy resources by encouraging
the use of bicycles in place of motor vehicles.
(2) Requirements.--A pilot project described in paragraph
(1) shall--
(A) use education and marketing to convert motor vehicle
trips to bicycle trips;
(B) document project results and energy savings (in
estimated units of energy conserved);
(C) facilitate partnerships among interested parties in at
least 2 of the fields of--
(i) transportation;
(ii) law enforcement;
(iii) education;
(iv) public health;
(v) environment; and
(vi) energy;
(D) maximize bicycle facility investments;
(E) demonstrate methods that may be used in other regions
of the United States; and
(F) facilitate the continuation of ongoing programs that
are sustained by local resources.
(3) Cost sharing.--At least 20 percent of the cost of each
pilot project described in paragraph (1) shall be provided
from State or local sources.
(d) Energy and Bicycling Research Study.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall enter into a
contract with the National Academy of Sciences for, and the
National Academy of Sciences shall conduct and submit to
Congress a report on, a study on the feasibility of
converting motor vehicle trips to bicycle trips.
(2) Components.--The study shall--
(A) document the results or progress of the pilot projects
under subsection (c);
(B) determine the type and duration of motor vehicle trips
that people in the United States may feasibly make by
bicycle, taking into consideration factors such as--
(i) weather;
(ii) land use and traffic patterns;
(iii) the carrying capacity of bicycles; and
(iv) bicycle infrastructure;
[[Page 29170]]
(C) determine any energy savings that would result from the
conversion of motor vehicle trips to bicycle trips;
(D) include a cost-benefit analysis of bicycle
infrastructure investments; and
(E) include a description of any factors that would
encourage more motor vehicle trips to be replaced with
bicycle trips.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section
$6,200,000, to remain available until expended, of which--
(1) $5,150,000 shall be used to carry out pilot projects
described in subsection (c);
(2) $300,000 shall be used by the Secretary to coordinate,
publicize, and disseminate the results of the program; and
(3) $750,000 shall be used to carry out subsection (d).
SEC. 756. REDUCTION OF ENGINE IDLING OF HEAVY-DUTY VEHICLES.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Advanced truck stop electrification system.--The term
``advanced truck stop electrification system'' means a
stationary system that delivers heat, air conditioning,
electricity, and communications, and is capable of providing
verifiable and auditable evidence of use of those services,
to a heavy-duty vehicle and any occupants of the heavy-duty
vehicle without relying on components mounted onboard the
heavy-duty vehicle for delivery of those services.
(3) Auxiliary power unit.--The term ``auxiliary power
unit'' means an integrated system that--
(A) provides heat, air conditioning, engine warming, and
electricity to the factory-installed components on a heavy-
duty vehicle as if the main drive engine of the heavy-duty
vehicle were running; and
(B) is certified by the Administrator under part 89 of
title 40, Code of Federal Regulations (or any successor
regulation), as meeting applicable emission standards.
(4) Heavy-duty vehicle.--The term ``heavy-duty vehicle''
means a vehicle that--
(A) has a gross vehicle weight rating greater than 12,500
pounds; and
(B) is powered by a diesel engine.
(5) Idle reduction technology.--The term ``idle reduction
technology'' means an advanced truck stop electrification
system, auxiliary power unit, or other device or system of
devices that--
(A) is used to reduce long-duration idling of a heavy-duty
vehicle; and
(B) allows for the main drive engine or auxiliary
refrigeration engine of a heavy-duty vehicle to be shut down.
(6) Long-duration idling.--
(A) In general.--The term ``long-duration idling'' means
the operation of a main drive engine or auxiliary
refrigeration engine of a heavy-duty vehicle, for a period
greater than 15 consecutive minutes, at a time at which the
main drive engine is not engaged in gear.
(B) Exclusions.--The term ``long-duration idling'' does not
include the operation of a main drive engine or auxiliary
refrigeration engine of a heavy-duty vehicle during a routine
stoppage associated with traffic movement or congestion.
(b) Idle Reduction Technology Benefits, Programs, and
Studies.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall--
(A)(i) commence a review of the mobile source air emission
models of the Environmental Protection Agency used under the
Clean Air Act (42 U.S.C. 7401 et seq.) to determine whether
the models accurately reflect the emissions resulting from
long-duration idling of heavy-duty vehicles and other
vehicles and engines; and
(ii) update those models as the Administrator determines to
be appropriate; and
(B)(i) commence a review of the emission reductions
achieved by the use of idle reduction technology; and
(ii) complete such revisions of the regulations and
guidance of the Environmental Protection Agency as the
Administrator determines to be appropriate.
(2) Deadline for completion.--Not later than 180 days after
the date of enactment of this Act, the Administrator shall--
(A) complete the reviews under subparagraphs (A)(i) and
(B)(i) of paragraph (1); and
(B) prepare and make publicly available 1 or more reports
on the results of the reviews.
(3) Discretionary inclusions.--The reviews under
subparagraphs (A)(i) and (B)(i) of paragraph (1) and the
reports under paragraph (2)(B) may address the potential fuel
savings resulting from use of idle reduction technology.
(4) Idle reduction deployment program.--
(A) Establishment.--
(i) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator, in consultation
with the Secretary of Transportation, shall establish a
program to support deployment of idle reduction technology.
(ii) Priority.--The Administrator shall give priority to
the deployment of idle reduction technology based on
beneficial effects on air quality and ability to lessen the
emission of criteria air pollutants.
(B) Funding.--
(i) Authorization of appropriations.--There are authorized
to be appropriated to the Administrator to carry out
subparagraph (A) $19,500,000 for fiscal year 2004,
$30,000,000 for fiscal year 2005, and $45,000,000 for fiscal
year 2006.
(ii) Cost sharing.--Subject to clause (iii), the
Administrator shall require at least 50 percent of the costs
directly and specifically related to any project under this
section to be provided from non-Federal sources.
(iii) Necessary and appropriate reductions.--The
Administrator may reduce the non-Federal requirement under
clause (ii) if the Administrator determines that the
reduction is necessary and appropriate to meet the objectives
of this section.
(5) Idling location study.--
(A) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator, in consultation
with the Secretary of Transportation, shall commence a study
to analyze all locations at which heavy-duty vehicles stop
for long-duration idling, including--
(i) truck stops;
(ii) rest areas;
(iii) border crossings;
(iv) ports;
(v) transfer facilities; and
(vi) private terminals.
(B) Deadline for completion.--Not later than 180 days after
the date of enactment of this Act, the Administrator shall--
(i) complete the study under subparagraph (A); and
(ii) prepare and make publicly available 1 or more reports
of the results of the study.
(c) Vehicle Weight Exemption.--Section 127(a) of title 23,
United States Code, is amended--
(1) by designating the first through eleventh sentences as
paragraphs (1) through (11), respectively; and
(2) by adding at the end the following:
``(12) Heavy duty vehicles.--
``(A) In general.--Subject to subparagraphs (B) and (C), in
order to promote reduction of fuel use and emissions because
of engine idling, the maximum gross vehicle weight limit and
the axle weight limit for any heavy-duty vehicle equipped
with an idle reduction technology shall be increased by a
quantity necessary to compensate for the additional weight of
the idle reduction system.
``(B) Maximum weight increase.--The weight increase under
subparagraph (A) shall be not greater than 250 pounds.
``(C) Proof.--On request by a regulatory agency or law
enforcement agency, the vehicle operator shall provide proof
(through demonstration or certification) that--
``(i) the idle reduction technology is fully functional at
all times; and
``(ii) the 250-pound gross weight increase is not used for
any purpose other than the use of idle reduction technology
described in subparagraph (A).''.
SEC. 757. BIODIESEL ENGINE TESTING PROGRAM.
(a) In General.--Not later that 180 days after the date of
enactment of this Act, the Secretary shall initiate a
partnership with diesel engine, diesel fuel injection system,
and diesel vehicle manufacturers and diesel and biodiesel
fuel providers, to include biodiesel testing in advanced
diesel engine and fuel system technology.
(b) Scope.--The program shall provide for testing to
determine the impact of biodiesel from different sources on
current and future emission control technologies, with
emphasis on--
(1) the impact of biodiesel on emissions warranty, in-use
liability, and antitampering provisions;
(2) the impact of long-term use of biodiesel on engine
operations;
(3) the options for optimizing these technologies for both
emissions and performance when switching between biodiesel
and diesel fuel; and
(4) the impact of using biodiesel in these fueling systems
and engines when used as a blend with 2006 Environmental
Protection Agency-mandated diesel fuel containing a maximum
of 15-parts-per-million sulfur content.
(c) Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall provide an interim
report to Congress on the findings of the program, including
a comprehensive analysis of impacts from biodiesel on engine
operation for both existing and expected future diesel
technologies, and recommendations for ensuring optimal
emissions reductions and engine performance with biodiesel.
(d) Authorization of Appropriations.--There are authorized
to be appropriated $5,000,000 for each of fiscal years 2004
through 2008 to carry out this section.
(e) Definition.--For purposes of this section, the term
``biodiesel'' means a diesel fuel substitute produced from
nonpetroleum renewable resources that meets the registration
requirements for fuels and fuel additives established by the
Environmental Protection Agency under section 211 of the
Clean Air Act (42 U.S.C. 7545) and that meets the American
Society for Testing and Materials D6751-02a Standard
Specification for Biodiesel Fuel (B100) Blend Stock for
Distillate Fuels.
SEC. 758. HIGH OCCUPANCY VEHICLE EXCEPTION.
Notwithstanding section 102(a) of title 23, United States
Code, a State may permit a vehicle with fewer than 2
occupants to operate in high occupancy vehicle lanes if the
vehicle--
(1) is a dedicated vehicle (as defined in section 301 of
the Energy Policy Act of 1992 (42 U.S. 13211)); or
(2) is a hybrid vehicle (as defined by the State for the
purpose of this section).
[[Page 29171]]
Subtitle E--Automobile Efficiency
SEC. 771. AUTHORIZATION OF APPROPRIATIONS FOR IMPLEMENTATION
AND ENFORCEMENT OF FUEL ECONOMY STANDARDS.
In addition to any other funds authorized by law, there are
authorized to be appropriated to the National Highway Traffic
Safety Administration to carry out its obligations with
respect to average fuel economy standards $2,000,000 for each
of fiscal years 2004 through 2008.
SEC. 772. REVISED CONSIDERATIONS FOR DECISIONS ON MAXIMUM
FEASIBLE AVERAGE FUEL ECONOMY.
Section 32902(f) of title 49, United States Code, is
amended to read as follows:
``(f) Considerations For Decisions on Maximum Feasible
Average Fuel Economy.--When deciding maximum feasible average
fuel economy under this section, the Secretary of
Transportation shall consider the following matters:
``(1) Technological feasibility.
``(2) Economic practicability.
``(3) The effect of other motor vehicle standards of the
Government on fuel economy.
``(4) The need of the United States to conserve energy.
``(5) The effects of fuel economy standards on passenger
automobiles, nonpassenger automobiles, and occupant safety.
``(6) The effects of compliance with average fuel economy
standards on levels of automobile industry employment in the
United States.''.
SEC. 773. EXTENSION OF MAXIMUM FUEL ECONOMY INCREASE FOR
ALTERNATIVE FUELED VEHICLES.
(a) Manufacturing Incentives.--Section 32905 of title 49,
United States Code, is amended--
(1) in each of subsections (b) and (d), by striking ``1993-
2004'' and inserting ``1993-2008'';
(2) in subsection (f), by striking ``2001'' and inserting
``2005''; and
(3) in subsection (f)(1), by striking ``2004'' and
inserting ``2008''.
(b) Maximum Fuel Economy Increase.--Subsection (a)(1) of
section 32906 of title 49, United States Code, is amended--
(1) in subparagraph (A), by striking ``the model years
1993-2004'' and inserting ``model years 1993-2008''; and
(2) in subparagraph (B), by striking ``the model years
2005-2008'' and inserting ``model years 2009-2012''.
SEC. 774. STUDY OF FEASIBILITY AND EFFECTS OF REDUCING USE OF
FUEL FOR AUTOMOBILES.
(a) In General.--Not later than 30 days after the date of
the enactment of this Act, the Administrator of the National
Highway Traffic Safety Administration shall initiate a study
of the feasibility and effects of reducing by model year
2012, by a significant percentage, the amount of fuel
consumed by automobiles.
(b) Subjects of Study.--The study under this section shall
include--
(1) examination of, and recommendation of alternatives to,
the policy under current Federal law of establishing average
fuel economy standards for automobiles and requiring each
automobile manufacturer to comply with average fuel economy
standards that apply to the automobiles it manufactures;
(2) examination of how automobile manufacturers could
contribute toward achieving the reduction referred to in
subsection (a);
(3) examination of the potential of fuel cell technology in
motor vehicles in order to determine the extent to which such
technology may contribute to achieving the reduction referred
to in subsection (a); and
(4) examination of the effects of the reduction referred to
in subsection (a) on--
(A) gasoline supplies;
(B) the automobile industry, including sales of automobiles
manufactured in the United States;
(C) motor vehicle safety; and
(D) air quality.
(c) Report.--The Administrator shall submit to Congress a
report on the findings, conclusion, and recommendations of
the study under this section by not later than 1 year after
the date of the enactment of this Act.
TITLE VIII--HYDROGEN
SEC. 801. DEFINITIONS.
In this title:
(1) Advisory committee.--The term ``Advisory Committee''
means the Hydrogen Technical and Fuel Cell Advisory Committee
established under section 805.
(2) Department.--The term ``Department'' means the
Department of Energy.
(3) Fuel cell.--The term ``fuel cell'' means a device that
directly converts the chemical energy of a fuel and an
oxidant into electricity by an electrochemical process taking
place at separate electrodes in the device.
(4) Infrastructure.--The term ``infrastructure'' means the
equipment, systems, or facilities used to produce,
distribute, deliver, or store hydrogen.
(5) Light duty vehicle.--The term ``light duty vehicle''
means a car or truck classified by the Department of
Transportation as a Class I or IIA vehicle.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 802. PLAN.
Not later than 6 months after the date of enactment of this
Act, the Secretary shall transmit to Congress a coordinated
plan for the programs described in this title and any other
programs of the Department that are directly related to fuel
cells or hydrogen. The plan shall describe, at a minimum--
(1) the agenda for the next 5 years for the programs
authorized under this title, including the agenda for each
activity enumerated in section 803(a);
(2) the types of entities that will carry out the
activities under this title and what role each entity is
expected to play;
(3) the milestones that will be used to evaluate the
programs for the next 5 years;-
(4) the most significant technical and nontechnical hurdles
that stand in the way of achieving the goals described in
section 803(b), and how the programs will address those
hurdles; and-
(5) the policy assumptions that are implicit in the plan,
including any assumptions that would affect the sources of
hydrogen or the marketability of hydrogen-related products.
SEC. 803. PROGRAMS.
(a) Activities.--The Secretary, in partnership with the
private sector, shall conduct programs to address--
(1) production of hydrogen from diverse energy sources,
including--
(A) fossil fuels, which may include carbon capture and
sequestration;
(B) hydrogen-carrier fuels (including ethanol and
methanol);
(C) renewable energy resources, including biomass; and
(D) nuclear energy;
(2) use of hydrogen for commercial, industrial, and
residential electric power generation;
(3) safe delivery of hydrogen or hydrogen-carrier fuels,
including--
(A) transmission by pipeline and other distribution
methods; and
(B) convenient and economic refueling of vehicles either at
central refueling stations or through distributed on-site
generation;
(4) advanced vehicle technologies, including--
(A) engine and emission control systems;
(B) energy storage, electric propulsion, and hybrid
systems;
(C) automotive materials; and
(D) other advanced vehicle technologies;
(5) storage of hydrogen or hydrogen-carrier fuels,
including development of materials for safe and economic
storage in gaseous, liquid, or solid form at refueling
facilities and onboard vehicles;
(6) development of safe, durable, affordable, and efficient
fuel cells, including fuel-flexible fuel cell power systems,
improved manufacturing processes, high-temperature membranes,
cost-effective fuel processing for natural gas, fuel cell
stack and system reliability, low temperature operation, and
cold start capability;
(7) development, after consultation with the private
sector, of necessary codes and standards (including
international codes and standards and voluntary consensus
standards adopted in accordance with OMB Circular A-119) and
safety practices for the production, distribution, storage,
and use of hydrogen, hydrogen-carrier fuels, and related
products; and
(8) a public education program to develop improved
knowledge and acceptability of hydrogen-based systems.
(b) Program Goals.--
(1) Vehicles.--For vehicles, the goals of the program are--
(A) to enable a commitment by automakers no later than year
2015 to offer safe, affordable, and technically viable
hydrogen fuel cell vehicles in the mass consumer market; and
(B) to enable production, delivery, and acceptance by
consumers of model year 2020 hydrogen fuel cell and other
hydrogen-powered vehicles that will have--
(i) a range of at least 300 miles;
(ii) improved performance and ease of driving;
(iii) safety and performance comparable to vehicle
technologies in the market; and
(iv) when compared to light duty vehicles in model year
2003--
(I) fuel economy that is substantially higher;
(II) substantially lower emissions of air pollutants; and
(III) equivalent or improved vehicle fuel system crash
integrity and occupant protection.
(2) Hydrogen energy and energy infrastructure.--For
hydrogen energy and energy infrastructure, the goals of the
program are to enable a commitment not later than 2015 that
will lead to infrastructure by 2020 that will provide--
(A) safe and convenient refueling;
(B) improved overall efficiency;
(C) widespread availability of hydrogen from domestic
energy sources through--
(i) production, with consideration of emissions levels;
(ii) delivery, including transmission by pipeline and other
distribution methods for hydrogen; and
(iii) storage, including storage in surface transportation
vehicles;
(D) hydrogen for fuel cells, internal combustion engines,
and other energy conversion devices for portable, stationary,
and transportation applications; and
(E) other technologies consistent with the Department's
plan.
(3) Fuel cells.--The goals for fuel cells and their
portable, stationary, and transportation applications are to
enable--
(A) safe, economical, and environmentally sound hydrogen
fuel cells;
(B) fuel cells for light duty and other vehicles; and
(C) other technologies consistent with the Department's
plan.
(c) Demonstration.--In carrying out the programs under this
section, the Secretary shall
[[Page 29172]]
fund a limited number of demonstration projects, consistent
with a determination of the maturity, cost-effectiveness, and
environmental impacts of technologies supporting each
project. In selecting projects under this subsection, the
Secretary shall, to the extent practicable and in the public
interest, select projects that--
(1) involve using hydrogen and related products at existing
facilities or installations, such as existing office
buildings, military bases, vehicle fleet centers, transit bus
authorities, or units of the National Park System;
(2) depend on reliable power from hydrogen to carry out
essential activities;-
(3) lead to the replication of hydrogen technologies and
draw such technologies into the marketplace;
(4) include vehicle, portable, and stationary
demonstrations of fuel cell and hydrogen-based energy
technologies;
(5) address the interdependency of demand for hydrogen fuel
cell applications and hydrogen fuel infrastructure;
(6) raise awareness of hydrogen technology among the
public;
(7) facilitate identification of an optimum technology
among competing alternatives;
(8) address distributed generation using renewable sources;
and
(9) address applications specific to rural or remote
locations, including isolated villages and islands, the
National Park System, and tribal entities.
The Secretary shall give preference to projects which address
multiple elements contained in paragraphs (1) through (9).
(d) Deployment.--In carrying out the programs under this
section, the Secretary shall, in partnership with the private
sector, conduct activities to facilitate the deployment of
hydrogen energy and energy infrastructure, fuel cells, and
advanced vehicle technologies.
(e) Funding.--
(1) In general.--The Secretary shall carry out the programs
under this section using a competitive, merit-based review
process and consistent with the generally applicable Federal
laws and regulations governing awards of financial
assistance, contracts, or other agreements.
(2) Research centers.--Activities under this section may be
carried out by funding nationally recognized university-based
or Federal laboratory research centers.
(f) Cost Sharing.--
(1) Research and development.--Except as otherwise provided
in this title, for research and development programs carried
out under this title the Secretary shall require a commitment
from non-Federal sources of at least 20 percent of the cost
of the project. The Secretary may reduce or eliminate the
non-Federal requirement under this paragraph if the Secretary
determines that the research and development is of a basic or
fundamental nature or involves technical analyses or
educational activities.
(2) Demonstration and commercial application.--Except as
otherwise provided in this title, the Secretary shall require
at least 50 percent of the costs directly and specifically
related to any demonstration or commercial application
project under this title to be provided from non-Federal
sources. The Secretary may reduce the non-Federal requirement
under this paragraph if the Secretary determines that the
reduction is necessary and appropriate considering the
technological risks involved in the project and is necessary
to meet the objectives of this title.
(3) Calculation of amount.--In calculating the amount of
the non-Federal commitment under paragraph (1) or (2), the
Secretary may include personnel, services, equipment, and
other resources.
(4) Size of non-federal share.--The Secretary may consider
the size of the non-Federal share in selecting projects.
(g) Disclosure.--Section 623 of the Energy Policy Act of
1992 (42 U.S.C. 13293) relating to the protection of
information shall apply to projects carried out through
grants, cooperative agreements, or contracts under this
title.
SEC. 804. INTERAGENCY TASK FORCE.
(a) Establishment.--Not later than 120 days after the date
of enactment of this Act, the President shall establish an
interagency task force chaired by the Secretary with
representatives from each of the following:
(1) The Office of Science and Technology Policy within the
Executive Office of the President.
(2) The Department of Transportation.
(3) The Department of Defense.
(4) The Department of Commerce (including the National
Institute of Standards and Technology).
(5) The Department of State.
(6) The Environmental Protection Agency.
(7) The National Aeronautics and Space Administration.
(8) Other Federal agencies as the Secretary determines
appropriate.
(b) Duties.--
(1) Planning.--The interagency task force shall work
toward--
(A) a safe, economical, and environmentally sound fuel
infrastructure for hydrogen and hydrogen-carrier fuels,
including an infrastructure that supports buses and other
fleet transportation;
(B) fuel cells in government and other applications,
including portable, stationary, and transportation
applications;
(C) distributed power generation, including the generation
of combined heat, power, and clean fuels including hydrogen;
(D) uniform hydrogen codes, standards, and safety
protocols; and
(E) vehicle hydrogen fuel system integrity safety
performance.
(2) Activities.--The interagency task force may organize
workshops and conferences, may issue publications, and may
create databases to carry out its duties. The interagency
task force shall--
(A) foster the exchange of generic, nonproprietary
information and technology among industry, academia, and
government;
(B) develop and maintain an inventory and assessment of
hydrogen, fuel cells, and other advanced technologies,
including the commercial capability of each technology for
the economic and environmentally safe production,
distribution, delivery, storage, and use of hydrogen;
(C) integrate technical and other information made
available as a result of the programs and activities under
this title;
(D) promote the marketplace introduction of infrastructure
for hydrogen fuel vehicles; and
(E) conduct an education program to provide hydrogen and
fuel cell information to potential end-users.
(c) Agency Cooperation.--The heads of all agencies,
including those whose agencies are not represented on the
interagency task force, shall cooperate with and furnish
information to the interagency task force, the Advisory
Committee, and the Department.
SEC. 805. ADVISORY COMMITTEE.
(a) Establishment.--The Hydrogen Technical and Fuel Cell
Advisory Committee is established to advise the Secretary on
the programs and activities under this title.
(b) Membership.--
(1) Members.--The Advisory Committee shall be comprised of
not fewer than 12 nor more than 25 members. The members shall
be appointed by the Secretary to represent domestic industry,
academia, professional societies, government agencies,
Federal laboratories, previous advisory panels, and
financial, environmental, and other appropriate organizations
based on the Department's assessment of the technical and
other qualifications of committee members and the needs of
the Advisory Committee.
(2) Terms.--The term of a member of the Advisory Committee
shall not be more than 3 years. The Secretary may appoint
members of the Advisory Committee in a manner that allows the
terms of the members serving at any time to expire at spaced
intervals so as to ensure continuity in the functioning of
the Advisory Committee. A member of the Advisory Committee
whose term is expiring may be reappointed.
(3) Chairperson.--The Advisory Committee shall have a
chairperson, who is elected by the members from among their
number.
(c) Review.--The Advisory Committee shall review and make
recommendations to the Secretary on--
(1) the implementation of programs and activities under
this title;
(2) the safety, economical, and environmental consequences
of technologies for the production, distribution, delivery,
storage, or use of hydrogen energy and fuel cells; and
(3) the plan under section 802.
(d) Response.--
(1) Consideration of recommendations.--The Secretary shall
consider, but need not adopt, any recommendations of the
Advisory Committee under subsection (c).
(2) Biennial report.--The Secretary shall transmit a
biennial report to Congress describing any recommendations
made by the Advisory Committee since the previous report. The
report shall include a description of how the Secretary has
implemented or plans to implement the recommendations, or an
explanation of the reasons that a recommendation will not be
implemented. The report shall be transmitted along with the
President's budget proposal.
(e) Support.--The Secretary shall provide resources
necessary in the judgment of the Secretary for the Advisory
Committee to carry out its responsibilities under this title.
SEC. 806. EXTERNAL REVIEW.
(a) Plan.--The Secretary shall enter into an arrangement
with the National Academy of Sciences to review the plan
prepared under section 802, which shall be completed not
later than 6 months after the Academy receives the plan. Not
later than 45 days after receiving the review, the Secretary
shall transmit the review to Congress along with a plan to
implement the review's recommendations or an explanation of
the reasons that a recommendation will not be implemented.
(b) Additional review.--The Secretary shall enter into an
arrangement with the National Academy of Sciences under which
the Academy will review the programs under section 803 during
the fourth year following the date of enactment of this Act.
The Academy's review shall include the research priorities
and technical milestones, and evaluate the progress toward
achieving them. The review shall be completed not later than
5 years after the date of enactment of this Act. Not later
than 45 days after receiving the review, the Secretary shall
transmit the review to Congress along with a plan to
implement the review's recommendations or an explanation for
the reasons that a recommendation will not be implemented.
SEC. 807. MISCELLANEOUS PROVISIONS.
(a) Representation.--The Secretary may represent the United
States interests with respect to activities and programs
under this title, in coordination with the Department of
Transportation, the National Institute of Standards and
Technology, and other relevant Federal agencies, before
governments and nongovernmental organizations including--
(1) other Federal, State, regional, and local governments
and their representatives;
(2) industry and its representatives, including members of
the energy and transportation industries; and
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(3) in consultation with the Department of State, foreign
governments and their representatives including international
organizations.
(b) Regulatory Authority.--Nothing in this title shall be
construed to alter the regulatory authority of the
Department.
SEC. 808. SAVINGS CLAUSE.
Nothing in this title shall be construed to affect the
authority of the Secretary of Transportation that may exist
prior to the date of enactment of this Act with respect to--
(1) research into, and regulation of, hydrogen-powered
vehicles fuel systems integrity, standards, and safety under
subtitle VI of title 49, United States Code;
(2) regulation of hazardous materials transportation under
chapter 51 of title 49, United States Code;
(3) regulation of pipeline safety under chapter 601 of
title 49, United States Code;
(4) encouragement and promotion of research, development,
and deployment activities relating to advanced vehicle
technologies under section 5506 of title 49, United States
Code;
(5) regulation of motor vehicle safety under chapter 301 of
title 49, United States Code;
(6) automobile fuel economy under chapter 329 of title 49,
United States Code; or
(7) representation of the interests of the United States
with respect to the activities and programs under the
authority of title 49, United States Code.
SEC. 809. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary to
carry out this title, in addition to any amounts made
available for these purposes under other Acts--
(1) $273,500,000 for fiscal year 2004;
(2) $375,000,000 for fiscal year 2005;
(3) $450,000,000 for fiscal year 2006;
(4) $500,000,000 for fiscal year 2007; and
(5) $550,000,000 for fiscal year 2008.
TITLE IX--RESEARCH AND DEVELOPMENT
SEC. 901. GOALS.
(a) In General.--The Secretary shall conduct a balanced set
of programs of energy research, development, demonstration,
and commercial application to support Federal energy policy
and programs by the Department. Such programs shall be
focused on--
(1) increasing the efficiency of all energy intensive
sectors through conservation and improved technologies;
(2) promoting diversity of energy supply;
(3) decreasing the Nation's dependence on foreign energy
supplies;
(4) improving United States energy security; and
(5) decreasing the environmental impact of energy-related
activities.
(b) Goals.--The Secretary shall publish measurable 5-year
cost and performance-based goals with each annual budget
submission in at least the following areas:
(1) Energy efficiency for buildings, energy-consuming
industries, and vehicles.
(2) Electric energy generation (including distributed
generation), transmission, and storage.
(3) Renewable energy technologies including wind power,
photovoltaics, solar thermal systems, geothermal energy,
hydrogen-fueled systems, biomass-based systems, biofuels, and
hydropower.
(4) Fossil energy including power generation, onshore and
offshore oil and gas resource recovery, and transportation.
(5) Nuclear energy including programs for existing and
advanced reactors and education of future specialists.
(c) Public Comment.--The Secretary shall provide mechanisms
for input on the annually published goals from industry,
university, and other public sources.
(d) Effect of Goals.--
(1) No new authority or requirement.--Nothing in subsection
(a) or the annually published goals shall--
(A) create any new--
(i) authority for any Federal agency; or
(ii) requirement for any other person;
(B) be used by a Federal agency to support the
establishment of regulatory standards or regulatory
requirements; or
(C) alter the authority of the Secretary to make grants or
other awards.
(2) No limitation.--Nothing in this subsection shall be
construed to limit the authority of the Secretary to impose
conditions on grants or other awards based on the goals in
subsection (a) or any subsequent modification thereto.
SEC. 902. DEFINITIONS.
For purposes of this title:
(1) Department.--The term ``Department'' means the
Department of Energy.
(2) Departmental mission.--The term ``departmental
mission'' means any of the functions vested in the Secretary
of Energy by the Department of Energy Organization Act (42
U.S.C. 7101 et seq.) or other law.
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning given
that term in section 101(a) of the Higher Education Act of
1965 (20 U.S.C. 1001(a)).
(4) National laboratory.--The term ``National Laboratory''
means any of the following laboratories owned by the
Department:
(A) Ames Laboratory.
(B) Argonne National Laboratory.
(C) Brookhaven National Laboratory.
(D) Fermi National Accelerator Laboratory.
(E) Idaho National Engineering and Environmental
Laboratory.
(F) Lawrence Berkeley National Laboratory.
(G) Lawrence Livermore National Laboratory.
(H) Los Alamos National Laboratory.
(I) National Energy Technology Laboratory.
(J) National Renewable Energy Laboratory.
(K) Oak Ridge National Laboratory.
(L) Pacific Northwest National Laboratory.
(M) Princeton Plasma Physics Laboratory.
(N) Sandia National Laboratories.
(O) Stanford Linear Accelerator Center.
(P) Thomas Jefferson National Accelerator Facility.
(5) Nonmilitary energy laboratory.--The term ``nonmilitary
energy laboratory'' means the laboratories listed in
paragraph (4), except for those listed in subparagraphs (G),
(H), and (N).
(6) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(7) Single-purpose research facility.--The term ``single-
purpose research facility'' means any of the primarily
single-purpose entities owned by the Department or any other
organization of the Department designated by the Secretary.
Subtitle A--Energy Efficiency
SEC. 904. ENERGY EFFICIENCY.
(a) In General.--The following sums are authorized to be
appropriated to the Secretary for energy efficiency and
conservation research, development, demonstration, and
commercial application activities, including activities
authorized under this subtitle:
(1) For fiscal year 2004, $616,000,000.
(2) For fiscal year 2005, $695,000,000.
(3) For fiscal year 2006, $772,000,000.
(4) For fiscal year 2007, $865,000,000.
(5) For fiscal year 2008, $920,000,000.
(b) Allocations.--From amounts authorized under subsection
(a), the following sums are authorized:
(1) For activities under section 905--
(A) for fiscal year 2004, $20,000,000;
(B) for fiscal year 2005, $30,000,000;
(C) for fiscal year 2006, $50,000,000;
(D) for fiscal year 2007, $50,000,000; and
(E) for fiscal year 2008, $50,000,000.
(2) For activities under section 907--
(A) for fiscal year 2004, $4,000,000; and
(B) for each of fiscal years 2005 through 2008, $7,000,000.
(3) For activities under section 908--
(A) for fiscal year 2004, $20,000,000;
(B) for fiscal year 2005, $25,000,000;
(C) for fiscal year 2006, $30,000,000;
(D) for fiscal year 2007, $35,000,000; and
(E) for fiscal year 2008, $40,000,000.
(4) For activities under section 909, $2,000,000 for each
of fiscal years 2005 through 2008.
(c) Extended Authorization.--There are authorized to be
appropriated to the Secretary for activities under section
905, $50,000,000 for each of fiscal years 2009 through 2013.
(d) Limitation on Use of Funds.--None of the funds
authorized to be appropriated under this section may be used
for--
(1) the issuance and implementation of energy efficiency
regulations;
(2) the Weatherization Assistance Program under part A of
title IV of the Energy Conservation and Production Act (42
U.S.C. 6861 et seq.);
(3) the State Energy Program under part D of title III of
the Energy Policy and Conservation Act (42 U.S.C. 6321 et
seq.); or
(4) the Federal Energy Management Program under part 3 of
title V of the National Energy Conservation Policy Act (42
U.S.C. 8251 et seq.).
SEC. 905. NEXT GENERATION LIGHTING INITIATIVE.
(a) In General.--The Secretary shall carry out a Next
Generation Lighting Initiative in accordance with this
section to support research, development, demonstration, and
commercial application activities related to advanced solid-
state lighting technologies based on white light emitting
diodes.
(b) Objectives.--The objectives of the initiative shall be
to develop advanced solid-state organic and inorganic
lighting technologies based on white light emitting diodes
that, compared to incandescent and fluorescent lighting
technologies, are longer lasting; more energy-efficient; and
cost-competitive, and have less environmental impact.
(c) Industry Alliance.--The Secretary shall, not later than
3 months after the date of enactment of this section,
competitively select an Industry Alliance to represent
participants that are private, for-profit firms which, as a
group, are broadly representative of United States solid
state lighting research, development, infrastructure, and
manufacturing expertise as a whole.
(d) Research.--
(1) In general.--The Secretary shall carry out the research
activities of the Next Generation Lighting Initiative through
competitively awarded grants to researchers, including
Industry Alliance participants, National Laboratories, and
institutions of higher education.
(2) Assistance from the industry alliance.--The Secretary
shall annually solicit from the Industry Alliance--
(A) comments to identify solid-state lighting technology
needs;
(B) assessment of the progress of the Initiative's research
activities; and
(C) assistance in annually updating solid-state lighting
technology roadmaps.
(3) Availability of information and roadmaps.--The
information and roadmaps under paragraph (2) shall be
available to the public and public response shall be
solicited by the Secretary.
(e) Development, Demonstration, and Commercial
Application.--The Secretary shall carry out a development,
demonstration, and commercial application program for the
Next Generation Lighting Initiative through competitively
selected awards. The Secretary may give
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preference to participants of the Industry Alliance selected
pursuant to subsection (c).
(f) Intellectual Property.--The Secretary may require, in
accordance with the authorities provided in section
202(a)(ii) of title 35, United States Code, section 152 of
the Atomic Energy Act of 1954 (42 U.S.C. 2182), and section 9
of the Federal Nonnuclear Energy Research and Development Act
of 1974 (42 U.S.C. 5908), that--
(1) for any new invention resulting from activities under
subsection (d)--
(A) the Industry Alliance members that are active
participants in research, development, and demonstration
activities related to the advanced solid-state lighting
technologies that are the subject of this section shall be
granted first option to negotiate with the invention owner
nonexclusive licenses and royalties for uses of the invention
related to solid-state lighting on terms that are reasonable
under the circumstances; and
(B)(i) for 1 year after a United States patent is issued
for the invention, the patent holder shall not negotiate any
license or royalty with any entity that is not a participant
in the Industry Alliance described in subparagraph (A); and
(ii) during the year described in clause (i), the invention
owner shall negotiate nonexclusive licenses and royalties in
good faith with any interested participant in the Industry
Alliance described in subparagraph (A); and
(2) such other terms as the Secretary determines are
required to promote accelerated commercialization of
inventions made under the Initiative.
(g) National Academy Review.--The Secretary shall enter
into an arrangement with the National Academy of Sciences to
conduct periodic reviews of the Next Generation Lighting
Initiative. The Academy shall review the research priorities,
technical milestones, and plans for technology transfer and
progress towards achieving them. The Secretary shall consider
the results of such reviews in evaluating the information
obtained under subsection (d)(2).
(h) Definitions.--As used in this section:
(1) Advanced solid-state lighting.--The term ``advanced
solid-state lighting'' means a semiconducting device package
and delivery system that produces white light using
externally applied voltage.
(2) Research.--The term ``research'' includes research on
the technologies, materials, and manufacturing processes
required for white light emitting diodes. -
(3) Industry alliance.--The term ``Industry Alliance''
means an entity selected by the Secretary under subsection
(c).
(4) White light emitting diode.--The term ``white light
emitting diode'' means a semiconducting package, utilizing
either organic or inorganic materials, that produces white
light using externally applied voltage.
SEC. 906. NATIONAL BUILDING PERFORMANCE INITIATIVE.
(a) Interagency Group.--Not later than 90 days after the
date of enactment of this Act, the Director of the Office of
Science and Technology Policy shall establish an interagency
group to develop, in coordination with the advisory committee
established under subsection (e), a National Building
Performance Initiative (in this section referred to as the
``Initiative''). The interagency group shall be co-chaired by
appropriate officials of the Department and the Department of
Commerce, who shall jointly arrange for the provision of
necessary administrative support to the group.
(b) Integration of Efforts.--The Initiative, working with
the National Institute of Building Sciences, shall integrate
Federal, State, and voluntary private sector efforts to
reduce the costs of construction, operation, maintenance, and
renovation of commercial, industrial, institutional, and
residential buildings.
(c) Plan.--Not later than 1 year after the date of
enactment of this Act, the interagency group shall submit to
Congress a plan for carrying out the appropriate Federal role
in the Initiative. The plan shall include--
(1) research, development, demonstration, and commercial
application of systems and materials for new construction and
retrofit relating to the building envelope and building
system components; and
(2) the collection, analysis, and dissemination of research
results and other pertinent information on enhancing building
performance to industry, government entities, and the public.
(d) Department of Energy Role.--Within the Federal portion
of the Initiative, the Department shall be the lead agency
for all aspects of building performance related to use and
conservation of energy.
(e) Advisory Committee.--
(1) Establishment.--The Secretary, in consultation with the
Secretary of Commerce and the Director of the Office of
Science and Technology Policy, shall establish an advisory
committee to--
(A) analyze and provide recommendations on potential
private sector roles and participation in the Initiative; and
(B) review and provide recommendations on the plan
described in subsection (c).
(2) Membership.--Membership of the advisory committee shall
include representatives with a broad range of appropriate
expertise, including expertise in--
(A) building research and technology;
(B) architecture, engineering, and building materials and
systems; and
(C) the residential, commercial, and industrial sectors of
the construction industry.
(f) Construction.--Nothing in this section provides any
Federal agency with new authority to regulate building
performance.
SEC. 907. SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM.
(a) Definitions.--For purposes of this section:
(1) Associated equipment.--The term ``associated
equipment'' means equipment located where the batteries will
be used that is necessary to enable the use of the energy
stored in the batteries.
(2) Battery.--The term `battery'' means an energy storage
device that previously has been used to provide motive power
in a vehicle powered in whole or in part by electricity.
(b) Program.--The Secretary shall establish and conduct a
research, development, demonstration, and commercial
application program for the secondary use of batteries if the
Secretary finds that there are sufficient numbers of such
batteries to support the program. The program shall be--
(1) designed to demonstrate the use of batteries in
secondary applications, including utility and commercial
power storage and power quality;
(2) structured to evaluate the performance, including
useful service life and costs, of such batteries in field
operations, and the necessary supporting infrastructure,
including reuse and disposal of batteries; and
(3) coordinated with ongoing secondary battery use programs
at the National Laboratories and in industry.
(c) Solicitation.--Not later than 180 days after the date
of enactment of this Act, if the Secretary finds under
subsection (b) that there are sufficient numbers of batteries
to support the program, the Secretary shall solicit proposals
to demonstrate the secondary use of batteries and associated
equipment and supporting infrastructure in geographic
locations throughout the United States. The Secretary may
make additional solicitations for proposals if the Secretary
determines that such solicitations are necessary to carry out
this section.
(d) Selection of Proposals.--
(1) In general.--The Secretary shall, not later than 90
days after the closing date established by the Secretary for
receipt of proposals under subsection (c), select up to 5
proposals which may receive financial assistance under this
section, subject to the availability of appropriations.
(2) Diversity; environmental effect.--In selecting
proposals, the Secretary shall consider diversity of battery
type, geographic and climatic diversity, and life-cycle
environmental effects of the approaches.
(3) Limitation.--No 1 project selected under this section
shall receive more than 25 percent of the funds authorized
for the program under this section.
(4) Optimization of federal resources.--The Secretary shall
consider the extent of involvement of State or local
government and other persons in each demonstration project to
optimize use of Federal resources.
(5) Other criteria.--The Secretary may consider such other
criteria as the Secretary considers appropriate.
(e) Conditions.--The Secretary shall require that--
(1) relevant information be provided to the Department, the
users of the batteries, the proposers, and the battery
manufacturers;
(2) the proposer provide at least 50 percent of the costs
associated with the proposal; and
(3) the proposer provide to the Secretary such information
regarding the disposal of the batteries as the Secretary may
require to ensure that the proposer disposes of the batteries
in accordance with applicable law.
SEC. 908. ENERGY EFFICIENCY SCIENCE INITIATIVE.
(a) Establishment.--The Secretary shall establish an Energy
Efficiency Science Initiative to be managed by the Assistant
Secretary in the Department with responsibility for energy
conservation under section 203(a)(9) of the Department of
Energy Organization Act (42 U.S.C. 7133(a)(9)), in
consultation with the Director of the Office of Science, for
grants to be competitively awarded and subject to peer review
for research relating to energy efficiency.
(b) Report.--The Secretary shall submit to Congress, along
with the President's annual budget request under section
1105(a) of title 31, United States Code, a report on the
activities of the Energy Efficiency Science Initiative,
including a description of the process used to award the
funds and an explanation of how the research relates to
energy efficiency.
SEC. 909. ELECTRIC MOTOR CONTROL TECHNOLOGY.
The Secretary shall conduct a research, development,
demonstration, and commercial application program on advanced
control devices to improve the energy efficiency of electric
motors used in heating, ventilation, air conditioning, and
comparable systems.
SEC. 910. ADVANCED ENERGY TECHNOLOGY TRANSFER CENTERS.
(a) Grants.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall make grants to
nonprofit institutions, State and local governments, or
universities (or consortia thereof), to establish a
geographically dispersed network of Advanced Energy
Technology Transfer Centers, to be located in areas the
Secretary determines have the greatest need of the services
of such Centers.
(b) Activities.--
(1) In general.--Each Center shall operate a program to
encourage demonstration and commercial application of
advanced energy methods
[[Page 29175]]
and technologies through education and outreach to building
and industrial professionals, and to other individuals and
organizations with an interest in efficient energy use.
(2) Advisory panel.--Each Center shall establish an
advisory panel to advise the Center on how best to accomplish
the activities under paragraph (1).
(c) Application.--A person seeking a grant under this
section shall submit to the Secretary an application in such
form and containing such information as the Secretary may
require. The Secretary may award a grant under this section
to an entity already in existence if the entity is otherwise
eligible under this section.
(d) Selection Criteria.--The Secretary shall award grants
under this section on the basis of the following criteria, at
a minimum:
(1) The ability of the applicant to carry out the
activities in subsection (b).
(2) The extent to which the applicant will coordinate the
activities of the Center with other entities, such as State
and local governments, utilities, and educational and
research institutions.
(e) Matching Funds.--The Secretary shall require a non-
Federal matching requirement of at least 50 percent of the
costs of establishing and operating each Center.
(f) Advisory Committee.--The Secretary shall establish an
advisory committee to advise the Secretary on the
establishment of Centers under this section. The advisory
committee shall be composed of individuals with expertise in
the area of advanced energy methods and technologies,
including at least 1 representative from--
(1) State or local energy offices;
(2) energy professionals;
(3) trade or professional associations;
(4) architects, engineers, or construction professionals;
(5) manufacturers;
(6) the research community; and
(7) nonprofit energy or environmental organizations.
(g) Definitions.--For purposes of this section:
(1) Advanced energy methods and technologies.--The term
``advanced energy methods and technologies'' means all
methods and technologies that promote energy efficiency and
conservation, including distributed generation technologies,
and life-cycle analysis of energy use.
(2) Center.--The term ``Center'' means an Advanced Energy
Technology Transfer Center established pursuant to this
section.
(3) Distributed generation.--The term ``distributed
generation'' means an electric power generation facility that
is designed to serve retail electric consumers at or near the
facility site.
Subtitle B--Distributed Energy and Electric Energy Systems
SEC. 911. DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS.
(a) In General.--The following sums are authorized to be
appropriated to the Secretary for distributed energy and
electric energy systems activities, including activities
authorized under this subtitle:
(1) For fiscal year 2004, $190,000,000.
(2) For fiscal year 2005, $200,000,000.
(3) For fiscal year 2006, $220,000,000.
(4) For fiscal year 2007, $240,000,000.
(5) For fiscal year 2008, $260,000,000.
(b) Micro-Cogeneration Energy Technology.--From amounts
authorized under subsection (a), $20,000,000 for each of
fiscal years 2004 and 2005 is authorized for activities under
section 914.
SEC. 912. HYBRID DISTRIBUTED POWER SYSTEMS.
(a) Requirement.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall develop and
transmit to Congress a strategy for a comprehensive research,
development, demonstration, and commercial application
program to develop hybrid distributed power systems that
combine--
(1) 1 or more renewable electric power generation
technologies of 10 megawatts or less located near the site of
electric energy use; and
(2) nonintermittent electric power generation technologies
suitable for use in a distributed power system.
(b) Contents.--The strategy shall--
(1) identify the needs best met with such hybrid
distributed power systems and the technological barriers to
the use of such systems;
(2) provide for the development of methods to design, test,
integrate into systems, and operate such hybrid distributed
power systems;
(3) include, as appropriate, research, development,
demonstration, and commercial application on related
technologies needed for the adoption of such hybrid
distributed power systems, including energy storage devices
and environmental control technologies;
(4) include research, development, demonstration, and
commercial application of interconnection technologies for
communications and controls of distributed generation
architectures, particularly technologies promoting real-time
response to power market information and physical conditions
on the electrical grid; and
(5) describe how activities under the strategy will be
integrated with other research, development, demonstration,
and commercial application activities supported by the
Department related to electric power technologies.
SEC. 913. HIGH POWER DENSITY INDUSTRY PROGRAM.
The Secretary shall establish a comprehensive research,
development, demonstration, and commercial application
program to improve energy efficiency of high power density
facilities, including data centers, server farms, and
telecommunications facilities. Such program shall consider
technologies that provide significant improvement in thermal
controls, metering, load management, peak load reduction, or
the efficient cooling of electronics.
SEC. 914. MICRO-COGENERATION ENERGY TECHNOLOGY.
The Secretary shall make competitive, merit-based grants to
consortia for the development of micro-cogeneration energy
technology. The consortia shall explore--
(1) the use of small-scale combined heat and power in
residential heating appliances; and
(2) the use of excess power to operate other appliances
within the residence and supply excess generated power to the
power grid.
SEC. 915. DISTRIBUTED ENERGY TECHNOLOGY DEMONSTRATION
PROGRAM.
The Secretary, within the sums authorized under section
911(a), may provide financial assistance to coordinating
consortia of interdisciplinary participants for
demonstrations designed to accelerate the utilization of
distributed energy technologies, such as fuel cells,
microturbines, reciprocating engines, thermally activated
technologies, and combined heat and power systems, in highly
energy intensive commercial applications.
SEC. 916. RECIPROCATING POWER.
The Secretary shall conduct a research, development, and
demonstration program regarding fuel system optimization and
emissions reduction after-treatment technologies for
industrial reciprocating engines. Such after-treatment
technologies shall use processes that reduce emissions by
recirculating exhaust gases and shall be designed to be
retrofitted to any new or existing diesel or natural gas
engine used for power generation, peaking power generation,
combined heat and power, or compression.
Subtitle C--Renewable Energy
SEC. 918. RENEWABLE ENERGY.
(a) In General.--The following sums are authorized to be
appropriated to the Secretary for renewable energy research,
development, demonstration, and commercial application
activities, including activities authorized under this
subtitle:
(1) For fiscal year 2004, $480,000,000.
(2) For fiscal year 2005, $550,000,000.
(3) For fiscal year 2006, $610,000,000.
(4) For fiscal year 2007, $659,000,000.
(5) For fiscal year 2008, $710,000,000.
(b) Bioenergy.--From the amounts authorized under
subsection (a), the following sums are authorized to be
appropriated to carry out section 919:
(1) For fiscal year 2004, $135,425,000.
(2) For fiscal year 2005, $155,600,000.
(3) For fiscal year 2006, $167,650,000.
(4) For fiscal year 2007, $180,000,000.
(5) For fiscal year 2008, $192,000,000.
(c) Concentrating Solar Power.--From amounts authorized
under subsection (a), the following sums are authorized to be
appropriated to carry out section 920:
(1) For fiscal year 2004, $20,000,000.
(2) For fiscal year 2005, $40,000,000.
(3) For each of fiscal years 2006, 2007 and 2008,
$50,000,000.
(d) Public Buildings.--From the amounts authorized under
subsection (a), $30,000,000 for each of the fiscal years 2004
through 2008 are authorized to be appropriated to carry out
section 922.
(e) Limits on Use of Funds.--
(1) No funds for renewable support and implementation.--
None of the funds authorized to be appropriated under this
section may be used for Renewable Support and Implementation.
(2) Grants.--Of the funds authorized under subsection (b),
not less than $5,000,000 for each fiscal year shall be made
available for grants to Historically Black Colleges and
Universities, Tribal Colleges, and Hispanic-Serving
Institutions.
(3) Regional field verification program.--Of the funds
authorized under subsection (a), not less than $4,000,000 for
each fiscal year shall be made available for the Regional
Field Verification Program of the Department.
(4) Off-stream pumped storage hydropower.--Of the funds
authorized under subsection (a), such sums as may be
necessary shall be made available for demonstration projects
of off-stream pumped storage hydropower.
(f) Consultation.--In carrying out this subtitle, the
Secretary, in consultation with the Secretary of Agriculture,
shall demonstrate the use of advanced wind power technology,
including combined use with coal gasification; biomass;
geothermal energy systems; and other renewable energy
technologies to assist in delivering electricity to rural and
remote locations.
SEC. 919. BIOENERGY PROGRAMS.
(a) Definitions.--For the purposes of this section:
(1) The term ``agricultural byproducts'' includes waste
products, including poultry fat and poultry waste.
(2) The term ``cellulosic biomass'' means any portion of a
crop containing lignocellulose or hemicellulose, including
barley grain, grapeseed, forest thinnings, rice bran, rice
hulls, rice straw, soybean matter, and sugarcane bagasse, or
any crop grown specifically for the purpose of producing
cellulosic feedstocks.
(b) Program.--The Secretary shall conduct a program of
research, development, demonstration, and commercial
application for bioenergy, including--
(1) biopower energy systems;
(2) biofuels;
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(3) bio-based products;
(4) integrated biorefineries that may produce biopower,
biofuels, and bio-based products;
(5) cross-cutting research and development in feedstocks
and enzymes; and
(6) economic analysis.
(c) Biofuels and Bio-Based Products.--The goals of the
biofuels and bio-based products programs shall be to develop,
in partnership with industry--
(1) advanced biochemical and thermochemical conversion
technologies capable of making biofuels that are price-
competitive with gasoline or diesel in either internal
combustion engines or fuel cell-powered vehicles, and bio-
based products from a variety of feedstocks, including
grains, cellulosic biomass, and other agricultural
byproducts; and
(2) advanced biotechnology processes capable of making
biofuels and bio-based products with emphasis on development
of biorefinery technologies using enzyme-based processing
systems.
SEC. 920. CONCENTRATING SOLAR POWER RESEARCH AND DEVELOPMENT
PROGRAM.
(a) In General.--The Secretary shall conduct a program of
research and development to evaluate the potential of
concentrating solar power for hydrogen production, including
cogeneration approaches for both hydrogen and electricity.
Such program shall take advantage of existing facilities to
the extent possible and shall include--
(1) development of optimized technologies that are common
to both electricity and hydrogen production;
(2) evaluation of thermochemical cycles for hydrogen
production at the temperatures attainable with concentrating
solar power;
(3) evaluation of materials issues for the thermochemical
cycles described in paragraph (2);
(4) system architectures and economics studies; and
(5) coordination with activities in the Advanced Reactor
Hydrogen Cogeneration Project on high temperature materials,
thermochemical cycles, and economic issues.
(b) Assessment.--In carrying out the program under this
section, the Secretary shall--
(1) assess conflicting guidance on the economic potential
of concentrating solar power for electricity production
received from the National Research Council report entitled
``Renewable Power Pathways: A Review of the U.S. Department
of Energy's Renewable Energy Programs'' in 2000 and
subsequent Department-funded reviews of that report; and
(2) provide an assessment of the potential impact of the
technology before, or concurrent with, submission of the
fiscal year 2006 budget.
(c) Report.--Not later than 5 years after the date of
enactment of this Act, the Secretary shall provide a report
to Congress on the economic and technical potential for
electricity or hydrogen production, with or without
cogeneration, with concentrating solar power, including the
economic and technical feasibility of potential construction
of a pilot demonstration facility suitable for commercial
production of electricity or hydrogen from concentrating
solar power.
SEC. 921. MISCELLANEOUS PROJECTS.
The Secretary may conduct research, development,
demonstration, and commercial application programs for--
(1) ocean energy, including wave energy; and
(2) the combined use of renewable energy technologies with
one another and with other energy technologies, including the
combined use of wind power and coal gasification
technologies.
SEC. 922. RENEWABLE ENERGY IN PUBLIC BUILDINGS.
(a) Demonstration and Technology Transfer Program.--The
Secretary shall establish a program for the demonstration of
innovative technologies for solar and other renewable energy
sources in buildings owned or operated by a State or local
government, and for the dissemination of information
resulting from such demonstration to interested parties.
(b) Limit on Federal Funding.--The Secretary shall provide
under this section no more than 40 percent of the incremental
costs of the solar or other renewable energy source project
funded.
(c) Requirement.--As part of the application for awards
under this section, the Secretary shall require all
applicants--
(1) to demonstrate a continuing commitment to the use of
solar and other renewable energy sources in buildings they
own or operate; and
(2) to state how they expect any award to further their
transition to the significant use of renewable energy.
SEC. 923. STUDY OF MARINE RENEWABLE ENERGY OPTIONS.
(a) In General.--The Secretary shall enter into an
arrangement with the National Academy of Sciences to conduct
a study on--
(1) the feasibility of various methods of renewable
generation of energy from the ocean, including energy from
waves, tides, currents, and thermal gradients; and
(2) the research, development, demonstration, and
commercial application activities required to make marine
renewable energy generation competitive with other forms of
electricity generation.
(b) Transmittal.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall transmit the study
to Congress along with the Secretary's recommendations for
implementing the results of the study.
Subtitle D--Nuclear Energy
SEC. 924. NUCLEAR ENERGY.
(a) Core Programs.--The following sums are authorized to be
appropriated to the Secretary for nuclear energy research,
development, demonstration, and commercial application
activities, including activities authorized under this
subtitle, other than those described in subsection (b):
(1) For fiscal year 2004, $273,000,000.
(2) For fiscal year 2005, $355,000,000.
(3) For fiscal year 2006, $430,000,000.
(4) For fiscal year 2007, $455,000,000.
(5) For fiscal year 2008, $545,000,000.
(b) Nuclear Infrastructure Support.--The following sums are
authorized to be appropriated to the Secretary for activities
under section 925(e):
(1) For fiscal year 2004, $125,000,000.
(2) For fiscal year 2005, $130,000,000.
(3) For fiscal year 2006, $135,000,000.
(4) For fiscal year 2007, $140,000,000.
(5) For fiscal year 2008, $145,000,000.
(c) Allocations.--From amounts authorized under subsection
(a), the following sums are authorized:
(1) For activities under section 926--
(A) for fiscal year 2004, $140,000,000;
(B) for fiscal year 2005, $145,000,000;
(C) for fiscal year 2006, $150,000,000;
(D) for fiscal year 2007, $155,000,000; and
(E) for fiscal year 2008, $275,000,000.
(2) For activities under section 927--
(A) for fiscal year 2004, $35,200,000;
(B) for fiscal year 2005, $44,350,000;
(C) for fiscal year 2006, $49,200,000;
(D) for fiscal year 2007, $54,950,000; and
(E) for fiscal year 2008, $60,000,000.
(3) For activities under section 929, for each of fiscal
years 2004 through 2008, $6,000,000.
(d) Limitation on Use of Funds.--None of the funds
authorized under this section may be used for decommissioning
the Fast Flux Test Facility.
SEC. 925. NUCLEAR ENERGY RESEARCH AND DEVELOPMENT PROGRAMS.
(a) Nuclear Energy Research Initiative.--The Secretary
shall carry out a Nuclear Energy Research Initiative for
research and development related to nuclear energy.
(b) Nuclear Energy Plant Optimization Program.--The
Secretary shall carry out a Nuclear Energy Plant Optimization
Program to support research and development activities
addressing reliability, availability, productivity, component
aging, safety, and security of existing nuclear power plants.
(c) Nuclear Power 2010 Program.--The Secretary shall carry
out a Nuclear Power 2010 Program, consistent with
recommendations in the October 2001 report entitled ``A
Roadmap to Deploy New Nuclear Power Plants in the United
States by 2010'' issued by the Nuclear Energy Research
Advisory Committee of the Department. Whatever type of
reactor is chosen for the hydrogen cogeneration project under
subtitle C of title VI, that type shall not be addressed in
the Program under this section. The Program shall include--
(1) support for first-of-a-kind engineering design and
certification expenses of advanced nuclear power plant
designs, which offer improved safety and economics over
current conventional plants and the promise of near-term to
medium-term commercial deployment;
(2) action by the Secretary to encourage domestic power
companies to install new nuclear plant capacity as soon as
possible;
(3) utilization of the expertise and capabilities of
industry, universities, and National Laboratories in
evaluation of advanced nuclear fuel cycles and fuels testing;
(4) consideration of proliferation-resistant passively-
safe, small reactors suitable for long-term electricity
production without refueling and suitable for use in remote
installations;
(5) participation of international collaborators in
research, development, design, and deployment efforts as
appropriate and consistent with United States interests in
nonproliferation of nuclear weapons;
(6) encouragement for university and industry
participation; and
(7) selection of projects such as to strengthen the
competitive position of the domestic nuclear power industrial
infrastructure.
(d) Generation IV Nuclear Energy Systems Initiative.--The
Secretary shall carry out a Generation IV Nuclear Energy
Systems Initiative to develop an overall technology plan and
to support research and development necessary to make an
informed technical decision about the most promising
candidates for eventual commercial application. The
Initiative shall examine advanced proliferation-resistant and
passively safe reactor designs, including designs that--
(1) are economically competitive with other electric power
generation plants;
(2) have higher efficiency, lower cost, and improved safety
compared to reactors in operation on the date of enactment of
this Act;
(3) use fuels that are proliferation-resistant and have
substantially reduced production of high-level waste per unit
of output; and
(4) use improved instrumentation.
(e) Nuclear Infrastructure Support.--The Secretary shall
develop and implement a strategy for the facilities of the
Office of Nuclear Energy, Science, and Technology and shall
transmit a report containing the strategy along with the
President's budget request to Congress for fiscal year 2006.
SEC. 926. ADVANCED FUEL CYCLE INITIATIVE.
(a) In General.--The Secretary, through the Director of the
Office of Nuclear Energy, Science, and Technology, shall
conduct an advanced fuel recycling technology research and
development program to evaluate proliferation-resistant fuel
recycling and transmutation technologies that minimize
environmental or public health and safety impacts as an
alternative to aqueous reprocessing technologies deployed as
[[Page 29177]]
of the date of enactment of this Act in support of evaluation
of alternative national strategies for spent nuclear fuel and
the Generation IV advanced reactor concepts, subject to
annual review by the Secretary's Nuclear Energy Research
Advisory Committee or other independent entity, as
appropriate. Opportunities to enhance progress of the program
through international cooperation should be sought.
(b) Reports.--The Secretary shall report on the activities
of the advanced fuel recycling technology research and
development program as part of the Department's annual budget
submission.
SEC. 927. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.
(a) Establishment.--The Secretary shall support a program
to invest in human resources and infrastructure in the
nuclear sciences and engineering and related fields
(including health physics and nuclear and radiochemistry),
consistent with departmental missions related to civilian
nuclear research and development.
(b) Duties.--In carrying out the program under this
section, the Secretary shall establish fellowship and faculty
assistance programs, as well as provide support for
fundamental research and encourage collaborative research
among industry, National Laboratories, and universities
through the Nuclear Energy Research Initiative. The Secretary
is encouraged to support activities addressing the entire
fuel cycle through involvement of both the Office of Nuclear
Energy, Science, and Technology and the Office of Civilian
Radioactive Waste Management. The Secretary shall support
communication and outreach related to nuclear science,
engineering, and nuclear waste management, consistent with
interests of the United States in nonproliferation of nuclear
weapons capabilities.
(c) Strengthening University Research and Training Reactors
and Associated Infrastructure.--Activities under this section
may include--
(1) converting research and training reactors currently
using high-enrichment fuels to low-enrichment fuels,
upgrading operational instrumentation, and sharing of
reactors among institutions of higher education;
(2) providing technical assistance, in collaboration with
the United States nuclear industry, in relicensing and
upgrading research and training reactors as part of a student
training program; and
(3) providing funding, through the Innovations in Nuclear
Infrastructure and Education Program, for reactor
improvements as part of a focused effort that emphasizes
research, training, and education.
(d) University National Laboratory Interactions.--The
Secretary shall develop sabbatical fellowship and visiting
scientist programs to encourage sharing of personnel between
National Laboratories and universities.
(e) Operating and Maintenance Costs.--Funding for a
research project provided under this section may be used to
offset a portion of the operating and maintenance costs of a
research and training reactor at an institution of higher
education used in the research project.
SEC. 928. SECURITY OF REACTOR DESIGNS.
The Secretary, through the Director of the Office of
Nuclear Energy, Science, and Technology, shall conduct a
research and development program on cost-effective
technologies for increasing the safety of reactor designs
from natural phenomena and the security of reactor designs
from deliberate attacks.
SEC. 929. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE SOURCES.
(a) Study.--The Secretary shall conduct a study and provide
a report to Congress not later than August 1, 2004. The study
shall--
(1) survey industrial applications of large radioactive
sources, including well-logging sources;
(2) review current domestic and international Department,
Department of Defense, Department of State, and commercial
programs to manage and dispose of radioactive sources;
(3) discuss disposal options and practices for currently
deployed or future sources and, if deficiencies are noted in
existing disposal options or practices for either deployed or
future sources, recommend options to remedy deficiencies; and
(4) develop a program plan for research and development to
develop alternatives to large industrial sources that reduce
safety, environmental, or proliferation risks to either
workers using the sources or the public.
(b) Program.--The Secretary shall establish a research and
development program to implement the program plan developed
under subsection (a)(4). The program shall include
miniaturized particle accelerators for well-logging or other
industrial applications and portable accelerators for
production of short-lived radioactive materials at an
industrial site.
SEC. 930. GEOLOGICAL ISOLATION OF SPENT FUEL.
The Secretary shall conduct a study to determine the
feasibility of deep borehole disposal of spent nuclear fuel
and high-level radioactive waste. The study shall emphasize
geological, chemical, and hydrological characterization of,
and design of engineered structures for, deep borehole
environments. Not later than 1 year after the date of
enactment of this Act, the Secretary shall transmit the study
to Congress.
Subtitle E--Fossil Energy
PART I--RESEARCH PROGRAMS
SEC. 931. FOSSIL ENERGY.
(a) In General.--The following sums are authorized to be
appropriated to the Secretary for fossil energy research,
development, demonstration, and commercial application
activities, including activities authorized under this part:
(1) For fiscal year 2004, $530,000,000.
(2) For fiscal year 2005, $556,000,000.
(3) For fiscal year 2006, $583,000,000.
(4) For fiscal year 2007, $611,000,000.
(5) For fiscal year 2008, $626,000,000.
(b) Allocations.--From amounts authorized under subsection
(a), the following sums are authorized:
(1) For activities under section 932(b)(2), $28,000,000 for
each of the fiscal years 2004 through 2008.
(2) For activities under section 934--
(A) for fiscal year 2004, $12,000,000;
(B) for fiscal year 2005, $15,000,000; and
(C) for each of fiscal years 2006 through 2008,
$20,000,000.
(3) For activities under section 935--
(A) for fiscal year 2004, $259,000,000;
(B) for fiscal year 2005, $272,000,000;
(C) for fiscal year 2006, $285,000,000;
(D) for fiscal year 2007, $298,000,000; and
(E) for fiscal year 2008, $308,000,000.
(4) For the Office of Arctic Energy under section 3197 of
the Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001 (42 U.S.C. 7144d), $25,000,000 for each of
fiscal years 2004 through 2008.
(5) For activities under section 933, $4,000,000 for fiscal
year 2004 and $2,000,000 for each of fiscal years 2005
through 2008.
(c) Extended Authorization.--There are authorized to be
appropriated to the Secretary for the Office of Arctic Energy
under section 3197 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (42 U.S.C. 7144d),
$25,000,000 for each of fiscal years 2009 through 2012.
(d) Limits on Use of Funds.--
(1) No funds for certain programs.--None of the funds
authorized under this section may be used for Fossil Energy
Environmental Restoration or Import/Export Authorization.
(2) Institutions of higher education.--Of the funds
authorized under subsection (b)(2), not less than 20 percent
of the funds appropriated for each fiscal year shall be
dedicated to research and development carried out at
institutions of higher education.
SEC. 932. OIL AND GAS RESEARCH PROGRAMS.
(a) Oil and Gas Research.--The Secretary shall conduct a
program of research, development, demonstration, and
commercial application on oil and gas, including--
(1) exploration and production;
(2) gas hydrates;
(3) reservoir life and extension;
(4) transportation and distribution infrastructure;
(5) ultraclean fuels;
(6) heavy oil and oil shale;
(7) related environmental research; and
(8) compressed natural gas marine transport.
(b) Fuel Cells.--
(1) In general.--The Secretary shall conduct a program of
research, development, demonstration, and commercial
application on fuel cells for low-cost, high-efficiency,
fuel-flexible, modular power systems.
(2) Improved manufacturing production and processes.--The
demonstrations under paragraph (1) shall include fuel cell
technology for commercial, residential, and transportation
applications, and distributed generation systems, utilizing
improved manufacturing production and processes.
(c) Natural Gas and Oil Deposits Report.--Not later than 2
years after the date of enactment of this Act, and every 2
years thereafter, the Secretary of the Interior, in
consultation with other appropriate Federal agencies, shall
transmit a report to Congress of the latest estimates of
natural gas and oil reserves, reserves growth, and
undiscovered resources in Federal and State waters off the
coast of Louisiana and Texas.
(d) Integrated Clean Power and Energy Research.--
(1) National center or consortium of excellence.--The
Secretary shall establish a national center or consortium of
excellence in clean energy and power generation, utilizing
the resources of the existing Clean Power and Energy Research
Consortium, to address the Nation's critical dependence on
energy and the need to reduce emissions.
(2) Program.--The center or consortium shall conduct a
program of research, development, demonstration, and
commercial application on integrating the following focus
areas:
(A) Efficiency and reliability of gas turbines for power
generation.
(B) Reduction in emissions from power generation.
(C) Promotion of energy conservation issues.
(D) Effectively utilizing alternative fuels and renewable
energy.
(E) Development of advanced materials technology for oil
and gas exploration and utilization in harsh environments.
(F) Education on energy and power generation issues.
SEC. 933. TECHNOLOGY TRANSFER.
The Secretary shall establish a competitive program to
award a contract to a nonprofit entity for the purpose of
transferring technologies developed with public funds. The
entity selected under this section shall have experience in
offshore oil and gas technology research management, in the
transfer of technologies developed with public funds to the
offshore and maritime industry, and in management of an
offshore and maritime industry consortium. The program
[[Page 29178]]
consortium selected under section 942 shall not be eligible
for selection under this section. When appropriate, the
Secretary shall consider utilizing the entity selected under
this section when implementing the activities authorized by
section 975.
SEC. 934. RESEARCH AND DEVELOPMENT FOR COAL MINING
TECHNOLOGIES.
(a) Establishment.--The Secretary shall carry out a program
of research and development on coal mining technologies. The
Secretary shall cooperate with appropriate Federal agencies,
coal producers, trade associations, equipment manufacturers,
institutions of higher education with mining engineering
departments, and other relevant entities.
(b) Program.--The research and development activities
carried out under this section shall--
(1) be guided by the mining research and development
priorities identified by the Mining Industry of the Future
Program and in the recommendations from relevant reports of
the National Academy of Sciences on mining technologies;
(2) include activities exploring minimization of
contaminants in mined coal that contribute to environmental
concerns including development and demonstration of
electromagnetic wave imaging ahead of mining operations;
(3) develop and demonstrate electromagnetic wave imaging
and radar techniques for horizontal drilling in coal beds in
order to increase methane recovery efficiency, prevent
spoilage of domestic coal reserves, and minimize water
disposal associated with methane extraction; and
(4) expand mining research capabilities at institutions of
higher education.
SEC. 935. COAL AND RELATED TECHNOLOGIES PROGRAM.
(a) In General.--In addition to the programs authorized
under title IV, the Secretary shall conduct a program of
technology research, development, demonstration, and
commercial application for coal and power systems, including
programs to facilitate production and generation of coal-
based power through--
(1) innovations for existing plants;
(2) integrated gasification combined cycle;
(3) advanced combustion systems;
(4) turbines for synthesis gas derived from coal;
(5) carbon capture and sequestration research and
development;
(6) coal-derived transportation fuels and chemicals;
(7) solid fuels and feedstocks;
(8) advanced coal-related research;
(9) advanced separation technologies; and
(10) a joint project for permeability enhancement in coals
for natural gas production and carbon dioxide sequestration.
(b) Cost and Performance Goals.--In carrying out programs
authorized by this section, the Secretary shall identify cost
and performance goals for coal-based technologies that would
permit the continued cost-competitive use of coal for
electricity generation, as chemical feedstocks, and as
transportation fuel in 2007, 2015, and the years after 2020.
In establishing such cost and performance goals, the
Secretary shall--
(1) consider activities and studies undertaken to date by
industry in cooperation with the Department in support of
such assessment;
(2) consult with interested entities, including coal
producers, industries using coal, organizations to promote
coal and advanced coal technologies, environmental
organizations, and organizations representing workers;
(3) not later than 120 days after the date of enactment of
this Act, publish in the Federal Register proposed draft cost
and performance goals for public comments; and
(4) not later than 180 days after the date of enactment of
this Act and every 4 years thereafter, submit to Congress a
report describing final cost and performance goals for such
technologies that includes a list of technical milestones as
well as an explanation of how programs authorized in this
section will not duplicate the activities authorized under
the Clean Coal Power Initiative authorized under subtitle A
of title IV.
SEC. 936. COMPLEX WELL TECHNOLOGY TESTING FACILITY.
The Secretary, in coordination with industry leaders in
extended research drilling technology, shall establish a
Complex Well Technology Testing Facility at the Rocky
Mountain Oilfield Testing Center to increase the range of
extended drilling technologies.
SEC. 937. FISCHER-TROPSCH DIESEL FUEL LOAN GUARANTEE PROGRAM.
(a) Definition of Fischer-Tropsch Diesel Fuel.--In this
section, the term ``Fischer-Tropsch diesel fuel'' means
diesel fuel that--
(1) contains less than 10 parts per million sulfur; and
(2) is produced through the Fischer-Tropsch liquification
process from coal or waste from coal that was mined in the
United States.
(b) Loan Guarantees.--
(1) Establishment of program.--The Secretary of Energy
shall establish a program to provide guarantees of loans by
private lending institutions for the construction of
facilities for the production of Fischer-Tropsch diesel fuel
and commercial byproducts of that production.
(2) Requirements.--The Secretary may provide a loan
guarantee under paragraph (1) if--
(A) without a loan guarantee, credit is not available to
the applicant under reasonable terms or conditions sufficient
to finance the construction of a facility described in
paragraph (1);
(B) the prospective earning power of the applicant and the
character and value of the security pledged provide a
reasonable assurance of repayment of the loan to be
guaranteed in accordance with the terms of the loan; and
(C) the loan bears interest at a rate determined by the
Secretary to be reasonable, taking into account the current
average yield on outstanding obligations of the United States
with remaining periods of maturity comparable to the maturity
of the loan.
(3) Criteria.--In selecting recipients of loan guarantees
from among applicants, the Secretary shall give preference to
proposals that--
(A) meet all Federal and State permitting requirements;
(B) are most likely to be successful; and
(C) are located in local markets that have the greatest
need for the facility because of--
(i) the availability of domestic coal or coal waste for
conversion; or
(ii) a projected high level of demand for Fischer-Tropsch
diesel fuel or other commercial byproducts of the facility.
(4) Maturity.--A loan guaranteed under paragraph (1) shall
have a maturity of not more than 25 years.
(5) Terms and conditions.--The loan agreement for a loan
guaranteed under paragraph (1) shall provide that no
provision of the loan may be amended or waived without the
consent of the Secretary.
(6) Guarantee fee.--A recipient of a loan guarantee under
paragraph (1) shall pay the Secretary an amount to be
determined by the Secretary to be sufficient to cover the
administrative costs of the Secretary relating to the loan
guarantee.
(7) Full faith and credit.--
(A) In general.--The full faith and credit of the United
States is pledged to payment of loan guarantees made under
this section.
(B) Conclusive evidence.--Any loan guarantee made by the
Secretary under this section shall be conclusive evidence of
the eligibility of the loan for the guarantee with respect to
principal and interest.
(C) Validity.--The validity of a loan guarantee shall be
incontestable in the hands of a holder of the guaranteed
loan.
(8) Reports.--Until each guaranteed loan under this section
is repaid in full, the Secretary shall annually submit to
Congress a report on the activities of the Secretary under
this section.
(9) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
(10) Termination of authority.--The authority of the
Secretary to issue a new loan guarantee under paragraph (1)
terminates on the date that is 5 years after the date of
enactment of this Act.
PART II--ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER
PETROLEUM RESOURCES
SEC. 941. PROGRAM AUTHORITY.
(a) In General.--The Secretary shall carry out a program
under this part of research, development, demonstration, and
commercial application of technologies for ultra-deepwater
and unconventional natural gas and other petroleum resource
exploration and production, including addressing the
technology challenges for small producers, safe operations,
and environmental mitigation (including reduction of
greenhouse gas emissions and sequestration of carbon).
(b) Program Elements.--The program under this part shall
address the following areas, including improving safety and
minimizing environmental impacts of activities within each
area:
(1) Ultra-deepwater technology, including drilling to
formations in the Outer Continental Shelf to depths greater
than 15,000 feet.
(2) Ultra-deepwater architecture.
(3) Unconventional natural gas and other petroleum resource
exploration and production technology, including the
technology challenges of small producers.
(c) Limitation on Location of Field Activities.--Field
activities under the program under this part shall be carried
out only--
(1) in--
(A) areas in the territorial waters of the United States
not under any Outer Continental Shelf moratorium as of
September 30, 2002;
(B) areas onshore in the United States on public land
administered by the Secretary of the Interior available for
oil and gas leasing, where consistent with applicable law and
land use plans; and
(C) areas onshore in the United States on State or private
land, subject to applicable law; and
(2) with the approval of the appropriate Federal or State
land management agency or private land owner.
(d) Research at National Energy Technology Laboratory.--The
Secretary, through the National Energy Technology Laboratory,
shall carry out research complementary to research under
subsection (b).
(e) Consultation with Secretary of the Interior.--In
carrying out this part, the Secretary shall consult regularly
with the Secretary of the Interior.
SEC. 942. ULTRA-DEEPWATER PROGRAM.
(a) In general.--The Secretary shall carry out the
activities under section 941(a), to maximize the use of the
ultra-deepwater natural gas and other petroleum resources of
the United States by increasing the supply of such resources,
through reducing the cost and increasing the efficiency of
exploration for and production of such resources, while
improving safety and minimizing environmental impacts.
[[Page 29179]]
(b) Role of the Secretary.--The Secretary shall have
ultimate responsibility for, and oversight of, all aspects of
the program under this section.
(c) Role of the Program Consortium.--
(1) In general.--The Secretary may contract with a
consortium to--
(A) manage awards pursuant to subsection (f)(4);
(B) make recommendations to the Secretary for project
solicitations;
(C) disburse funds awarded under subsection (f) as directed
by the Secretary in accordance with the annual plan under
subsection (e); and
(D) carry out other activities assigned to the program
consortium by this section.
(2) Limitation.--The Secretary may not assign any
activities to the program consortium except as specifically
authorized under this section.
(3) Conflict of interest.--
(A) Procedures.--The Secretary shall establish procedures--
(i) to ensure that each board member, officer, or employee
of the program consortium who is in a decision-making
capacity under subsection (f)(3) or (4) shall disclose to the
Secretary any financial interests in, or financial
relationships with, applicants for or recipients of awards
under this section, including those of his or her spouse or
minor child, unless such relationships or interests would be
considered to be remote or inconsequential; and
(ii) to require any board member, officer, or employee with
a financial relationship or interest disclosed under clause
(i) to recuse himself or herself from any review under
subsection (f)(3) or oversight under subsection (f)(4) with
respect to such applicant or recipient.
(B) Failure to comply.--The Secretary may disqualify an
application or revoke an award under this section if a board
member, officer, or employee has failed to comply with
procedures required under subparagraph (A)(ii).
(d) Selection of the Program Consortium.--
(1) In general.--The Secretary shall select the program
consortium through an open, competitive process.
(2) Members.--The program consortium may include
corporations, trade associations, institutions of higher
education, National Laboratories, or other research
institutions. After submitting a proposal under paragraph
(4), the program consortium may not add members without the
consent of the Secretary.
(3) Tax status.--The program consortium shall be an entity
that is exempt from tax under section 501(c)(3) of the
Internal Revenue Code of 1986.
(4) Schedule.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall solicit proposals
from eligible consortia to perform the duties in subsection
(c)(1), which shall be submitted not later than 360 days
after the date of enactment of this Act. The Secretary shall
select the program consortium not later than 18 months after
such date of enactment.
(5) Application.--Applicants shall submit a proposal
including such information as the Secretary may require. At a
minimum, each proposal shall--
(A) list all members of the consortium;
(B) fully describe the structure of the consortium,
including any provisions relating to intellectual property;
and
(C) describe how the applicant would carry out the
activities of the program consortium under this section.
(6) Eligibility.--To be eligible to be selected as the
program consortium, an applicant must be an entity whose
members collectively have demonstrated capabilities in
planning and managing research, development, demonstration,
and commercial application programs in natural gas or other
petroleum exploration or production.
(7) Criterion.--The Secretary shall consider the amount of
the fee an applicant proposes to receive under subsection (g)
in selecting a consortium under this section.
(e) Annual Plan.--
(1) In general.--The program under this section shall be
carried out pursuant to an annual plan prepared by the
Secretary in accordance with paragraph (2).
(2) Development.--
(A) Solicitation of recommendations.--Before drafting an
annual plan under this subsection, the Secretary shall
solicit specific written recommendations from the program
consortium for each element to be addressed in the plan,
including those described in paragraph (4). The Secretary may
request that the program consortium submit its
recommendations in the form of a draft annual plan.
(B) Submission of recommendations; other comment.--The
Secretary shall submit the recommendations of the program
consortium under subparagraph (A) to the Ultra-Deepwater
Advisory Committee established under section 945(a) for
review, and such Advisory Committee shall provide to the
Secretary written comments by a date determined by the
Secretary. The Secretary may also solicit comments from any
other experts.
(C) Consultation.--The Secretary shall consult regularly
with the program consortium throughout the preparation of the
annual plan.
(3) Publication.--The Secretary shall transmit to Congress
and publish in the Federal Register the annual plan, along
with any written comments received under paragraph (2)(A) and
(B).
(4) Contents.--The annual plan shall describe the ongoing
and prospective activities of the program under this section
and shall include--
(A) a list of any solicitations for awards that the
Secretary plans to issue to carry out research, development,
demonstration, or commercial application activities,
including the topics for such work, who would be eligible to
apply, selection criteria, and the duration of awards; and
(B) a description of the activities expected of the program
consortium to carry out subsection (f)(4).
(5) Estimates of increased royalty receipts.--The
Secretary, in consultation with the Secretary of the
Interior, shall provide an annual report to Congress with the
President's budget on the estimated cumulative increase in
Federal royalty receipts (if any) resulting from the
implementation of this part. The initial report under this
paragraph shall be submitted in the first President's budget
following the completion of the first annual plan required
under this subsection.
(f) Awards.--
(1) In general.--The Secretary shall make awards to carry
out research, development, demonstration, and commercial
application activities under the program under this section.
The program consortium shall not be eligible to receive such
awards, but members of the program consortium may receive
such awards.
(2) Proposals.--The Secretary shall solicit proposals for
awards under this subsection in such manner and at such time
as the Secretary may prescribe, in consultation with the
program consortium.
(3) Review.--The Secretary shall make awards under this
subsection through a competitive process, which shall include
a review by individuals selected by the Secretary. Such
individuals shall include, for each application, Federal
officials, the program consortium, and non-Federal experts
who are not board members, officers, or employees of the
program consortium or of a member of the program consortium.
(4) Oversight.--
(A) In general.--The program consortium shall oversee the
implementation of awards under this subsection, consistent
with the annual plan under subsection (e), including
disbursing funds and monitoring activities carried out under
such awards for compliance with the terms and conditions of
the awards.
(B) Effect.--Nothing in subparagraph (A) shall limit the
authority or responsibility of the Secretary to oversee
awards, or limit the authority of the Secretary to review or
revoke awards.
(C) Provision of information.--The Secretary shall provide
to the program consortium the information necessary for the
program consortium to carry out its responsibilities under
this paragraph.
(g) Administrative Costs.--
(1) In general.--To compensate the program consortium for
carrying out its activities under this section, the Secretary
shall provide to the program consortium funds sufficient to
administer the program. This compensation may include a
management fee consistent with Department of Energy
contracting practices and procedures.
(2) Advance.--The Secretary shall advance funds to the
program consortium upon selection of the consortium, which
shall be deducted from amounts to be provided under paragraph
(1).
(h) Audit.--The Secretary shall retain an independent,
commercial auditor to determine the extent to which funds
provided to the program consortium, and funds provided under
awards made under subsection (f), have been expended in a
manner consistent with the purposes and requirements of this
part. The auditor shall transmit a report annually to the
Secretary, who shall transmit the report to Congress, along
with a plan to remedy any deficiencies cited in the report.
SEC. 943. UNCONVENTIONAL NATURAL GAS AND OTHER PETROLEUM
RESOURCES PROGRAM.
(a) In General.--The Secretary shall carry out activities
under subsection 941(b)(3), to maximize the use of the
onshore unconventional natural gas and other petroleum
resources of the United States, by increasing the supply of
such resources, through reducing the cost and increasing the
efficiency of exploration for and production of such
resources, while improving safety and minimizing
environmental impacts.
(b) Awards.--
(1) In general.--The Secretary shall carry out this section
through awards to research consortia made through an open,
competitive process. As a condition of award of funds,
qualified research consortia shall--
(A) demonstrate capability and experience in unconventional
onshore natural gas or other petroleum research and
development;
(B) provide a research plan that demonstrates how
additional natural gas or oil production will be achieved;
and
(C) at the request of the Secretary, provide technical
advice to the Secretary for the purposes of developing the
annual plan required under subsection (e).
(2) Production potential.--The Secretary shall seek to
ensure that the number and types of awards made under this
subsection have reasonable potential to lead to additional
oil and natural gas production on Federal lands.
(3) Schedule.--To carry out this subsection, not later than
180 days after the date of enactment of this Act, the
Secretary shall solicit proposals from research consortia,
which shall be submitted not later than 360 days after the
date of enactment of this Act. The Secretary shall select the
first group of research consortia to receive awards under
this subsection not later than 18 months after such date of
enactment.
[[Page 29180]]
(c) Audit.--The Secretary shall retain an independent,
commercial auditor to determine the extent to which funds
provided under awards made under this section have been
expended in a manner consistent with the purposes and
requirements of this part. The auditor shall transmit a
report annually to the Secretary, who shall transmit the
report to Congress, along with a plan to remedy any
deficiencies cited in the report.
(d) Focus Areas for Awards.--
(1) Unconventional resources.--Awards from allocations
under section 949(d)(2) shall focus on areas including
advanced coalbed methane, deep drilling, natural gas
production from tight sands, natural gas production from gas
shales, stranded gas, innovative exploration and production
techniques, enhanced recovery techniques, and environmental
mitigation of unconventional natural gas and other petroleum
resources exploration and production.
(2) Small producers.--Awards from allocations under section
949(d)(3) shall be made to consortia consisting of small
producers or organized primarily for the benefit of small
producers, and shall focus on areas including complex geology
involving rapid changes in the type and quality of the oil
and gas reservoirs across the reservoir; low reservoir
pressure; unconventional natural gas reservoirs in coalbeds,
deep reservoirs, tight sands, or shales; and unconventional
oil reservoirs in tar sands and oil shales.
(e) Annual Plan.--
(1) In general.--The program under this section shall be
carried out pursuant to an annual plan prepared by the
Secretary in accordance with paragraph (2).
(2) Development.--
(A) Written recommendations.--Before drafting an annual
plan under this subsection, the Secretary shall solicit
specific written recommendations from the research consortia
receiving awards under subsection (b) and the Unconventional
Resources Technology Advisory Committee for each element to
be addressed in the plan, including those described in
subparagraph (D).
(B) Consultation.--The Secretary shall consult regularly
with the research consortia throughout the preparation of the
annual plan.
(C) Publication.--The Secretary shall transmit to Congress
and publish in the Federal Register the annual plan, along
with any written comments received under subparagraph (A).
(D) Contents.--The annual plan shall describe the ongoing
and prospective activities under this section and shall
include a list of any solicitations for awards that the
Secretary plans to issue to carry out research, development,
demonstration, or commercial application activities,
including the topics for such work, who would be eligible to
apply, selection criteria, and the duration of awards.
(3) Estimates of increased royalty receipts.--The
Secretary, in consultation with the Secretary of the
Interior, shall provide an annual report to Congress with the
President's budget on the estimated cumulative increase in
Federal royalty receipts (if any) resulting from the
implementation of this part. The initial report under this
paragraph shall be submitted in the first President's budget
following the completion of the first annual plan required
under this subsection.
(f) Activities by the United States Geological Survey.--The
Secretary of the Interior, through the United States
Geological Survey, shall, where appropriate, carry out
programs of long-term research to complement the programs
under this section.
SEC. 944. ADDITIONAL REQUIREMENTS FOR AWARDS.
(a) Demonstration Projects.--An application for an award
under this part for a demonstration project shall describe
with specificity the intended commercial use of the
technology to be demonstrated.
(b) Flexibility in Locating Demonstration Projects.--
Subject to the limitation in section 941(c), a demonstration
project under this part relating to an ultra-deepwater
technology or an ultra-deepwater architecture may be
conducted in deepwater depths.
(c) Intellectual Property Agreements.--If an award under
this part is made to a consortium (other than the program
consortium), the consortium shall provide to the Secretary a
signed contract agreed to by all members of the consortium
describing the rights of each member to intellectual property
used or developed under the award.
(d) Technology Transfer.--2.5 percent of the amount of each
award made under this part shall be designated for technology
transfer and outreach activities under this title.
(e) Cost Sharing Reduction for Independent Producers.--In
applying the cost sharing requirements under section 972 to
an award under this part the Secretary may reduce or
eliminate the non-Federal requirement if the Secretary
determines that the reduction is necessary and appropriate
considering the technological risks involved in the project.
SEC. 945. ADVISORY COMMITTEES.
(a) Ultra-Deepwater Advisory Committee.--
(1) Establishment.--Not later than 270 days after the date
of enactment of this Act, the Secretary shall establish an
advisory committee to be known as the Ultra-Deepwater
Advisory Committee.
(2) Membership.--The advisory committee under this
subsection shall be composed of members appointed by the
Secretary including--
(A) individuals with extensive research experience or
operational knowledge of offshore natural gas and other
petroleum exploration and production;
(B) individuals broadly representative of the affected
interests in ultra-deepwater natural gas and other petroleum
production, including interests in environmental protection
and safe operations;
(C) no individuals who are Federal employees; and
(D) no individuals who are board members, officers, or
employees of the program consortium.
(3) Duties.--The advisory committee under this subsection
shall--
(A) advise the Secretary on the development and
implementation of programs under this part related to ultra-
deepwater natural gas and other petroleum resources; and
(B) carry out section 942(e)(2)(B).
(4) Compensation.--A member of the advisory committee under
this subsection shall serve without compensation but shall
receive travel expenses in accordance with applicable
provisions under subchapter I of chapter 57 of title 5,
United States Code.
(b) Unconventional Resources Technology Advisory
Committee.--
(1) Establishment.--Not later than 270 days after the date
of enactment of this Act, the Secretary shall establish an
advisory committee to be known as the Unconventional
Resources Technology Advisory Committee.
(2) Membership.--The advisory committee under this
subsection shall be composed of members appointed by the
Secretary including--
(A) a majority of members who are employees or
representatives of independent producers of natural gas and
other petroleum, including small producers;
(B) individuals with extensive research experience or
operational knowledge of unconventional natural gas and other
petroleum resource exploration and production;
(C) individuals broadly representative of the affected
interests in unconventional natural gas and other petroleum
resource exploration and production, including interests in
environmental protection and safe operations; and
(D) no individuals who are Federal employees.
(3) Duties.--The advisory committee under this subsection
shall advise the Secretary on the development and
implementation of activities under this part related to
unconventional natural gas and other petroleum resources.
(4) Compensation.--A member of the advisory committee under
this subsection shall serve without compensation but shall
receive travel expenses in accordance with applicable
provisions under subchapter I of chapter 57 of title 5,
United States Code.
(c) Prohibition.--No advisory committee established under
this section shall make recommendations on funding awards to
particular consortia or other entities, or for specific
projects.
SEC. 946. LIMITS ON PARTICIPATION.
An entity shall be eligible to receive an award under this
part only if the Secretary finds--
(1) that the entity's participation in the program under
this part would be in the economic interest of the United
States; and
(2) that either--
(A) the entity is a United States-owned entity organized
under the laws of the United States; or
(B) the entity is organized under the laws of the United
States and has a parent entity organized under the laws of a
country that affords--
(i) to United States-owned entities opportunities,
comparable to those afforded to any other entity, to
participate in any cooperative research venture similar to
those authorized under this part;
(ii) to United States-owned entities local investment
opportunities comparable to those afforded to any other
entity; and
(iii) adequate and effective protection for the
intellectual property rights of United States-owned entities.
SEC. 947. SUNSET.
The authority provided by this part shall terminate on
September 30, 2011.
SEC. 948. DEFINITIONS.
In this part:
(1) Deepwater.--The term ``deepwater'' means a water depth
that is greater than 200 but less than 1,500 meters.
(2) Independent producer of oil or gas.--
(A) In general.--The term ``independent producer of oil or
gas'' means any person that produces oil or gas other than a
person to whom subsection (c) of section 613A of the Internal
Revenue Code of 1986 does not apply by reason of paragraph
(2) (relating to certain retailers) or paragraph (4)
(relating to certain refiners) of section 613A(d) of such
Code.
(B) Rules for applying paragraphs (2) and (4) of section
613a(d).--For purposes of subparagraph (A), paragraphs (2)
and (4) of section 613A(d) of the Internal Revenue Code of
1986 shall be applied by substituting ``calendar year'' for
``taxable year'' each place it appears in such paragraphs.
(3) Program consortium.--The term ``program consortium''
means the consortium selected under section 942(d).
(4) Remote or inconsequential.--The term ``remote or
inconsequential'' has the meaning given that term in
regulations issued by the Office of Government Ethics under
section 208(b)(2) of title 18, United States Code.
(5) Small producer.--The term ``small producer'' means an
entity organized under the laws of the United States with
production levels of less than 1,000 barrels per day of oil
equivalent.
(6) Ultra-deepwater.--The term ``ultra-deepwater'' means a
water depth that is equal to or greater than 1,500 meters.
[[Page 29181]]
(7) Ultra-deepwater architecture.--The term ``ultra-
deepwater architecture'' means the integration of
technologies for the exploration for, or production of,
natural gas or other petroleum resources located at ultra-
deepwater depths.
(8) Ultra-deepwater technology.--The term ``ultra-deepwater
technology'' means a discrete technology that is specially
suited to address 1 or more challenges associated with the
exploration for, or production of, natural gas or other
petroleum resources located at ultra-deepwater depths.
(9) Unconventional natural gas and other petroleum
resource.--The term ``unconventional natural gas and other
petroleum resource'' means natural gas and other petroleum
resource located onshore in an economically inaccessible
geological formation, including resources of small producers.
SEC. 949. FUNDING.
(a) In General.--
(1) Oil and gas lease income.--For each of fiscal years
2004 through 2013, from any Federal royalties, rents, and
bonuses derived from Federal onshore and offshore oil and gas
leases issued under the Outer Continental Shelf Lands Act and
the Mineral Leasing Act which are deposited in the Treasury,
and after distribution of any such funds as described in
subsection (c), $150,000,000 shall be deposited into the
Ultra-Deepwater and Unconventional Natural Gas and Other
Petroleum Research Fund (in this section referred to as the
Fund). For purposes of this section, the term ``royalties''
excludes proceeds from the sale of royalty production taken
in kind and royalty production that is transferred under
section 27(a)(3) of the Outer Continental Shelf Lands Act (43
U.S.C. 1353(a)(3)).
(2) Authorization of appropriations.--In addition to
amounts described in paragraph (1), there are authorized to
be appropriated to the Secretary, to be deposited in the
Fund, $50,000,000 for each of the fiscal years 2004 through
2013, to remain available until expended.
(b) Obligational Authority.--Monies in the Fund shall be
available to the Secretary for obligation under this part
without fiscal year limitation, to remain available until
expended.
(c) Prior Distributions.--The distributions described in
subsection (a) are those required by law--
(A) to States and to the Reclamation Fund under the Mineral
Leasing Act (30 U.S.C. 191(a)); and
(B) to other funds receiving monies from Federal oil and
gas leasing programs, including--
(i) any recipients pursuant to section 8(g) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(g));
(ii) the Land and Water Conservation Fund, pursuant to
section 2(c) of the Land and Water Conservation Fund Act of
1965 (16 U.S.C. 4601-5(c));
(iii) the Historic Preservation Fund, pursuant to section
108 of the National Historic Preservation Act (16 U.S.C.
470h); and
(iv) the Secure Energy Reinvestment Fund.
(d) Allocation.--Amounts obligated from the Fund under this
section in each fiscal year shall be allocated as follows:
(1) 50 percent shall be for activities under section 942.
(2) 35 percent shall be for activities under section
943(d)(1).
(3) 10 percent shall be for activities under section
943(d)(2).
(4) 5 percent shall be for research under section 941(d).
(e) Fund.--There is hereby established in the Treasury of
the United States a separate fund to be known as the ``Ultra-
Deepwater and Unconventional Natural Gas and Other Petroleum
Research Fund''.
Subtitle F--Science
SEC. 951. SCIENCE.
(a) In General.--The following sums are authorized to be
appropriated to the Secretary for research, development,
demonstration, and commercial application activities of the
Office of Science, including activities authorized under this
subtitle, including the amounts authorized under the
amendment made by section 958(c)(2)(C), and including basic
energy sciences, advanced scientific computing research,
biological and environmental research, fusion energy
sciences, high energy physics, nuclear physics, and research
analysis and infrastructure support:
(1) For fiscal year 2004, $3,785,000,000.
(2) For fiscal year 2005, $4,153,000,000.
(3) For fiscal year 2006, $4,618,000,000.
(4) For fiscal year 2007, $5,310,000,000.
(5) For fiscal year 2008, $5,800,000,000.
(b) Allocations.--From amounts authorized under subsection
(a), the following sums are authorized:
(1) For activities of the Fusion Energy Sciences Program,
including activities under sections 952 and 953--
(A) for fiscal year 2004, $335,000,000;
(B) for fiscal year 2005, $349,000,000;
(C) for fiscal year 2006, $362,000,000;
(D) for fiscal year 2007, $377,000,000; and
(E) for fiscal year 2008, $393,000,000.
(2) For the Spallation Neutron Source--
(A) for construction in fiscal year 2004, $124,600,000;
(B) for construction in fiscal year 2005, $79,800,000;
(C) for completion of construction in fiscal year 2006,
$41,100,000; and
(D) for other project costs (including research and
development necessary to complete the project, preoperations
costs, and capital equipment related to construction),
$103,279,000 for the period encompassing fiscal years 2003
through 2006, to remain available until expended through
September 30, 2006.
(3) For Catalysis Research activities under section 956--
(A) for fiscal year 2004, $33,000,000;
(B) for fiscal year 2005, $35,000,000;
(C) for fiscal year 2006, $36,500,000;
(D) for fiscal year 2007, $38,200,000; and
(E) for fiscal year 2008, $40,100,000.
(4) For Nanoscale Science and Engineering Research
activities under section 957--
(A) for fiscal year 2004, $270,000,000;
(B) for fiscal year 2005, $292,000,000;
(C) for fiscal year 2006, $322,000,000;
(D) for fiscal year 2007, $355,000,000; and
(E) for fiscal year 2008, $390,000,000.
(5) For activities under section 957(c), from the amounts
authorized under paragraph (4) of this subsection--
(A) for fiscal year 2004, $135,000,000;
(B) for fiscal year 2005, $150,000,000;
(C) for fiscal year 2006, $120,000,000;
(D) for fiscal year 2007, $100,000,000; and
(E) for fiscal year 2008, $125,000,000.
(6) For activities in the Genomes to Life Program under
section 959--
(A) for fiscal year 2004, $100,000,000; and
(B) for fiscal years 2005 through 2008, such sums as may be
necessary.
(7) For activities in the Energy-Water Supply Program under
section 961, $30,000,000 for each of fiscal years 2004
through 2008.
(c) ITER Construction.--In addition to the funds authorized
under subsection (b)(1), such sums as may be necessary for
costs associated with ITER construction, consistent with
limitations under section 952.
SEC. 952. UNITED STATES PARTICIPATION IN ITER.
(a) In General.--The United States may participate in ITER
in accordance with the provisions of this section.
(b) Agreement.--
(1) In general.--The Secretary is authorized to negotiate
an agreement for United States participation in ITER.
(2) Contents.--Any agreement for United States
participation in ITER shall, at a minimum--
(A) clearly define the United States financial contribution
to construction and operating costs;
(B) ensure that the share of ITER's high-technology
components manufactured in the United States is at least
proportionate to the United States financial contribution to
ITER;
(C) ensure that the United States will not be financially
responsible for cost overruns in components manufactured in
other ITER participating countries;
(D) guarantee the United States full access to all data
generated by ITER;
(E) enable United States researchers to propose and carry
out an equitable share of the experiments at ITER;
(F) provide the United States with a role in all collective
decisionmaking related to ITER; and
(G) describe the process for discontinuing or
decommissioning ITER and any United States role in those
processes.
(c) Plan.--The Secretary, in consultation with the Fusion
Energy Sciences Advisory Committee, shall develop a plan for
the participation of United States scientists in ITER that
shall include the United States research agenda for ITER,
methods to evaluate whether ITER is promoting progress toward
making fusion a reliable and affordable source of power, and
a description of how work at ITER will relate to other
elements of the United States fusion program. The Secretary
shall request a review of the plan by the National Academy of
Sciences.
(d) Limitation.--No funds shall be expended for the
construction of ITER until the Secretary has transmitted to
Congress--
(1) the agreement negotiated pursuant to subsection (b) and
120 days have elapsed since that transmission;
(2) a report describing the management structure of ITER
and providing a fixed dollar estimate of the cost of United
States participation in the construction of ITER, and 120
days have elapsed since that transmission;
(3) a report describing how United States participation in
ITER will be funded without reducing funding for other
programs in the Office of Science, including other fusion
programs, and 60 days have elapsed since that transmission;
and
(4) the plan required by subsection (c) (but not the
National Academy of Sciences review of that plan), and 60
days have elapsed since that transmission.
(e) Alternative to ITER.--If at any time during the
negotiations on ITER, the Secretary determines that
construction and operation of ITER is unlikely or infeasible,
the Secretary shall send to Congress, as part of the budget
request for the following year, a plan for implementing the
domestic burning plasma experiment known as FIRE, including
costs and schedules for such a plan. The Secretary shall
refine such plan in full consultation with the Fusion Energy
Sciences Advisory Committee and shall also transmit such plan
to the National Academy of Sciences for review.
(f) Definitions.--In this section and sections 951(b)(1)
and (c):
(1) Construction.--The term ``construction'' means the
physical construction of the ITER facility, and the physical
construction, purchase, or manufacture of equipment or
components that are specifically designed for the ITER
facility, but does not mean the design of the facility,
equipment, or components.
(2) FIRE.--The term ``FIRE'' means the Fusion Ignition
Research Experiment, the fusion
[[Page 29182]]
research experiment for which design work has been supported
by the Department as a possible alternative burning plasma
experiment in the event that ITER fails to move forward.
(3) ITER.--The term ``ITER'' means the international
burning plasma fusion research project in which the President
announced United States participation on January 30, 2003.
SEC. 953. PLAN FOR FUSION ENERGY SCIENCES PROGRAM.
(a) Declaration of Policy.--It shall be the policy of the
United States to conduct research, development,
demonstration, and commercial application to provide for the
scientific, engineering, and commercial infrastructure
necessary to ensure that the United States is competitive
with other nations in providing fusion energy for its own
needs and the needs of other nations, including by
demonstrating electric power or hydrogen production for the
United States energy grid utilizing fusion energy at the
earliest date possible.
(b) Planning.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall present to
Congress a plan, with proposed cost estimates, budgets, and
potential international partners, for the implementation of
the policy described in subsection (a). The plan shall ensure
that--
(A) existing fusion research facilities are more fully
utilized;
(B) fusion science, technology, theory, advanced
computation, modeling, and simulation are strengthened;
(C) new magnetic and inertial fusion research facilities
are selected based on scientific innovation, cost
effectiveness, and their potential to advance the goal of
practical fusion energy at the earliest date possible, and
those that are selected are funded at a cost-effective rate;
(D) communication of scientific results and methods between
the fusion energy science community and the broader
scientific and technology communities is improved;
(E) inertial confinement fusion facilities are utilized to
the extent practicable for the purpose of inertial fusion
energy research and development; and
(F) attractive alternative inertial and magnetic fusion
energy approaches are more fully explored.
(2) Costs and schedules.--Such plan shall also address the
status of and, to the degree possible, costs and schedules
for--
(A) in coordination with the program under section 960, the
design and implementation of international or national
facilities for the testing of fusion materials; and
(B) the design and implementation of international or
national facilities for the testing and development of key
fusion technologies.
SEC. 954. SPALLATION NEUTRON SOURCE.
(a) Definition.--For the purposes of this section, the term
``Spallation Neutron Source'' means Department Project 99-E-
334, Oak Ridge National Laboratory, Oak Ridge, Tennessee.
(b) Report.--The Secretary shall report on the Spallation
Neutron Source as part of the Department's annual budget
submission, including a description of the achievement of
milestones, a comparison of actual costs to estimated costs,
and any changes in estimated project costs or schedule.
(c) Limitations.--The total amount obligated by the
Department, including prior year appropriations, for the
Spallation Neutron Source shall not exceed--
(1) $1,192,700,000 for costs of construction;
(2) $219,000,000 for other project costs; and
(3) $1,411,700,000 for total project cost.
SEC. 955. SUPPORT FOR SCIENCE AND ENERGY FACILITIES AND
INFRASTRUCTURE.
(a) Facility and Infrastructure Policy.--The Secretary
shall develop and implement a strategy for facilities and
infrastructure supported primarily from the Office of
Science, the Office of Energy Efficiency and Renewable
Energy, the Office of Fossil Energy, or the Office of Nuclear
Energy, Science, and Technology Programs at all National
Laboratories and single-purpose research facilities. Such
strategy shall provide cost-effective means for--
(1) maintaining existing facilities and infrastructure, as
needed;
(2) closing unneeded facilities;
(3) making facility modifications; and
(4) building new facilities.
(b) Report.--
(1) In general.--The Secretary shall prepare and transmit,
along with the President's budget request to Congress for
fiscal year 2006, a report containing the strategy developed
under subsection (a).
(2) Contents.--For each National Laboratory and single-
purpose research facility, for the facilities primarily used
for science and energy research, such report shall contain--
(A) the current priority list of proposed facilities and
infrastructure projects, including cost and schedule
requirements;
(B) a current 10-year plan that demonstrates the
reconfiguration of its facilities and infrastructure to meet
its missions and to address its long-term operational costs
and return on investment;
(C) the total current budget for all facilities and
infrastructure funding; and
(D) the current status of each facility and infrastructure
project compared to the original baseline cost, schedule, and
scope.
SEC. 956. CATALYSIS RESEARCH AND DEVELOPMENT PROGRAM.
(a) Establishment.--The Secretary, through the Office of
Science, shall support a program of research and development
in catalysis science consistent with the Department's
statutory authorities related to research and development.
The program shall include efforts to--
(1) enable catalyst design using combinations of
experimental and mechanistic methodologies coupled with
computational modeling of catalytic reactions at the
molecular level;
(2) develop techniques for high throughput synthesis,
assay, and characterization at nanometer and subnanometer
scales in situ under actual operating conditions;
(3) synthesize catalysts with specific site architectures;
(4) conduct research on the use of precious metals for
catalysis; and
(5) translate molecular understanding to the design of
catalytic compounds.
(b) Duties of the Office of Science.--In carrying out the
program under this section, the Director of the Office of
Science shall--
(1) support both individual investigators and
multidisciplinary teams of investigators to pioneer new
approaches in catalytic design;
(2) develop, plan, construct, acquire, share, or operate
special equipment or facilities for the use of investigators
in collaboration with national user facilities such as
nanoscience and engineering centers;
(3) support technology transfer activities to benefit
industry and other users of catalysis science and
engineering; and
(4) coordinate research and development activities with
industry and other Federal agencies.
(c) Triennial Assessment.--The National Academy of Sciences
shall review the catalysis program every 3 years to report on
gains made in the fundamental science of catalysis and its
progress towards developing new fuels for energy production
and material fabrication processes.
SEC. 957. NANOSCALE SCIENCE AND ENGINEERING RESEARCH,
DEVELOPMENT, DEMONSTRATION, AND COMMERCIAL
APPLICATION.
(a) Establishment.--The Secretary, acting through the
Office of Science, shall support a program of research,
development, demonstration, and commercial application in
nanoscience and nanoengineering. The program shall include
efforts to further the understanding of the chemistry,
physics, materials science, and engineering of phenomena on
the scale of nanometers and to apply that knowledge to the
Department's mission areas.
(b) Duties of the Office of Science.--In carrying out the
program under this section, the Office of Science shall--
(1) support both individual investigators and teams of
investigators, including multidisciplinary teams;
(2) carry out activities under subsection (c);
(3) support technology transfer activities to benefit
industry and other users of nanoscience and nanoengineering;
(4) coordinate research and development activities with
other Department programs, industry, and other Federal
agencies;
(5) ensure that societal and ethical concerns will be
addressed as the technology is developed by--
(A) establishing a research program to identify societal
and ethical concerns related to nanotechnology, and ensuring
that the results of such research are widely disseminated;
and
(B) integrating, insofar as possible, research on societal
and ethical concerns with nanotechnology research and
development; and
(6) ensure that the potential of nanotechnology to produce
or facilitate the production of clean, inexpensive energy is
realized by supporting nanotechnology energy applications
research and development.
(c) Nanoscience and Nanoengineering Research Centers and
Major Instrumentation.--
(1) In general.--The Secretary shall carry out projects to
develop, plan, construct, acquire, operate, or support
special equipment, instrumentation, or facilities for
investigators conducting research and development in
nanoscience and nanoengineering.
(2) Activities.--Projects under paragraph (1) may include
the measurement of properties at the scale of nanometers,
manipulation at such scales, and the integration of
technologies based on nanoscience or nanoengineering into
bulk materials or other technologies.
(3) Facilities.--Facilities under paragraph (1) may include
electron microcharacterization facilities, microlithography
facilities, scanning probe facilities, and related
instrumentation.
(4) Collaborations.--The Secretary shall encourage
collaborations among Department programs, institutions of
higher education, laboratories, and industry at facilities
under this subsection.
SEC. 958. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY MISSIONS.
(a) In General.--The Secretary, acting through the Office
of Science, shall support a program to advance the Nation's
computing capability across a diverse set of grand challenge,
computationally based, science problems related to
departmental missions.
(b) Duties of the Office of Science.--In carrying out the
program under this section, the Office of Science shall--
(1) advance basic science through computation by developing
software to solve grand challenge science problems on new
generations of computing platforms in collaboration with
other Department program offices;
(2) enhance the foundations for scientific computing by
developing the basic mathematical and computing systems
software needed to take
[[Page 29183]]
full advantage of the computing capabilities of computers
with peak speeds of 100 teraflops or more, some of which may
be unique to the scientific problem of interest;
(3) enhance national collaboratory and networking
capabilities by developing software to integrate
geographically separated researchers into effective research
teams and to facilitate access to and movement and analysis
of large (petabyte) data sets;
(4) develop and maintain a robust scientific computing
hardware infrastructure to ensure that the computing
resources needed to address departmental missions are
available; and
(5) explore new computing approaches and technologies that
promise to advance scientific computing, including
developments in quantum computing.
(c) High-Performance Computing Act of 1991 Amendments.--The
High-Performance Computing Act of 1991 is amended--
(1) in section 4 (15 U.S.C. 5503)--
(A) in paragraph (3) by striking ``means'' and inserting
``and networking and information technology mean'', and by
striking ``(including vector supercomputers and large scale
parallel systems)''; and
(B) in paragraph (4), by striking ``packet switched''; and
(2) in section 203 (15 U.S.C. 5523)--
(A) in subsection (a), by striking all after ``As part of
the'' and inserting ``Networking and Information Technology
Research and Development Program, the Secretary of Energy
shall conduct basic and applied research in networking and
information technology, with emphasis on supporting
fundamental research in the physical sciences and
engineering, and energy applications; providing supercomputer
access and advanced communication capabilities and facilities
to scientific researchers; and developing tools for
distributed scientific collaboration.'';
(B) in subsection (b), by striking ``Program'' and
inserting ``Networking and Information Technology Research
and Development Program''; and
(C) by amending subsection (e) to read as follows:
``(e) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary of Energy to
carry out the Networking and Information Technology Research
and Development Program such sums as may be necessary for
fiscal years 2004 through 2008.''.
(d) Coordination.--The Secretary shall ensure that the
program under this section is integrated and consistent
with--
(1) the Advanced Simulation and Computing Program, formerly
known as the Accelerated Strategic Computing Initiative, of
the National Nuclear Security Administration; and
(2) other national efforts related to advanced scientific
computing for science and engineering.
(e) Report.--
(1) In general.--Before undertaking any new initiative to
develop any new advanced architecture for high-speed
computing, the Secretary, through the Director of the Office
of Science, shall transmit a report to Congress describing--
(A) the expected duration and cost of the initiative;
(B) the technical milestones the initiative is designed to
achieve;
(C) how institutions of higher education and private firms
will participate in the initiative; and
(D) why the goals of the initiative could not be achieved
through existing programs.
(2) Limitation.--No funds may be expended on any initiative
described in paragraph (1) until 30 days after the report
required by that paragraph is transmitted to Congress.
SEC. 959. GENOMES TO LIFE PROGRAM.
(a) Program.--
(1) Establishment.--The Secretary shall establish a
research, development, and demonstration program in genetics,
protein science, and computational biology to support the
energy, national security, and environmental mission of the
Department.
(2) Grants.--The program shall support individual
investigators and multidisciplinary teams of investigators
through competitive, merit-reviewed grants.
(3) Consultation.--In carrying out the program, the
Secretary shall consult with other Federal agencies that
conduct genetic and protein research.
(b) Goals.--The program shall have the goal of developing
technologies and methods based on the biological functions of
genomes, microbes, and plants that--
(1) can facilitate the production of fuels, including
hydrogen;
(2) convert carbon dioxide to organic carbon;
(3) improve national security and combat terrorism;
(4) detoxify soils and water at Department facilities
contaminated with heavy metals and radiological materials;
and
(5) address other Department missions as identified by the
Secretary.
(c) Plan.--
(1) Development of plan.--Not later than 1 year after the
date of enactment of this Act, the Secretary shall prepare
and transmit to Congress a research plan describing how the
program authorized pursuant to this section will be
undertaken to accomplish the program goals established in
subsection (b).
(2) Review of plan.--The Secretary shall contract with the
National Academy of Sciences to review the research plan
developed under this subsection. The Secretary shall transmit
the review to Congress not later than 18 months after
transmittal of the research plan under paragraph (1), along
with the Secretary's response to the recommendations
contained in the review.
(d) Genomes to Life User Facilities and Ancillary
Equipment.--
(1) In general.--Within the funds authorized to be
appropriated pursuant to this Act, the amounts specified
under section 951(b)(6) shall, subject to appropriations, be
available for projects to develop, plan, construct, acquire,
or operate special equipment, instrumentation, or facilities
for investigators conducting research, development,
demonstration, and commercial application in systems biology
and proteomics and associated biological disciplines.
(2) Facilities.--Facilities under paragraph (1) may include
facilities, equipment, or instrumentation for--
(A) the production and characterization of proteins;
(B) whole proteome analysis;
(C) characterization and imaging of molecular machines; and
(D) analysis and modeling of cellular systems.
(3) Collaborations.--The Secretary shall encourage
collaborations among universities, laboratories, and industry
at facilities under this subsection. All facilities under
this subsection shall have a specific mission of technology
transfer to other institutions.
(e) Prohibition on Biomedical and Human Cell and Human
Subject Research.--
(1) No biomedical research.--In carrying out the program
under this section, the Secretary shall not conduct
biomedical research.
(2) Limitations.--Nothing in this section shall authorize
the Secretary to conduct any research or demonstrations--
(A) on human cells or human subjects; or
(B) designed to have direct application with respect to
human cells or human subjects.
SEC. 960. FISSION AND FUSION ENERGY MATERIALS RESEARCH
PROGRAM.
In the President's fiscal year 2006 budget request, the
Secretary shall establish a research and development program
on material science issues presented by advanced fission
reactors and the Department's fusion energy program. The
program shall develop a catalog of material properties
required for these applications, develop theoretical models
for materials possessing the required properties, benchmark
models against existing data, and develop a roadmap to guide
further research and development in this area.
SEC. 961. ENERGY-WATER SUPPLY PROGRAM.
(a) Establishment.--There is established within the
Department the Energy-Water Supply Program, to study energy-
related and certain other issues associated with the supply
of drinking water and operation of community water systems
and to study water supply issues related to energy.
(b) Definitions.--For the purposes of this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Agency.--The term ``Agency'' means the Environmental
Protection Agency.
(3) Foundation.--The term ``Foundation'' means the American
Water Works Association Research Foundation.
(4) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(5) Program.--The term ``Program'' means the Energy-Water
Supply Program established by this section.
(c) Program Areas.--The Program shall develop methods,
means, procedures, equipment, and improved technologies
relating to--
(1) the arsenic removal program under subsection (d);
(2) the desalination program under subsection (e); and
(3) the water and energy sustainability program under
subsection (f).
(d) Arsenic Removal Program.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary, in coordination with
the Administrator and in partnership with the Foundation,
shall utilize the facilities, institutions, and relationships
established in the Consolidated Appropriations Resolution,
2003 as described in Senate Report 107-220 to carry out a
research program to provide innovative methods and means for
removal of arsenic.
(2) Required evaluations.--The program shall, to the
maximum extent practicable, evaluate the means of--
(A) reducing energy costs incurred in using arsenic removal
technologies;
(B) minimizing materials, operating, and maintenance costs;
and
(C) minimizing any quantities of waste (especially
hazardous waste) that result from use of arsenic removal
technologies.
(3) Peer review.--Where applicable and reasonably
available, projects undertaken under this subsection shall be
peer-reviewed.
(4) Community water systems.--In carrying out the program
under this subsection, the Secretary, in coordination with
the Administrator, shall--
(A) select projects involving a geographically and
hydrologically diverse group of community water systems (as
defined in section 1003 of the Public Health Service Act (42
U.S.C. 300)) and water chemistries, that have experienced
technical or economic difficulties in providing drinking
water with levels of arsenic at 10 parts-per-billion or
lower, which projects shall be designed to develop innovative
methods and means to deliver drinking water that contains
less than 10 parts per billion of arsenic; and
[[Page 29184]]
(B) provide not less than 40 percent of all funds spent
pursuant to this subsection to address the needs of, and in
collaboration with, rural communities or Indian tribes.
(5) Cost effectiveness.--The Foundation shall create
methods for determining cost effectiveness of arsenic removal
technologies used in the program.
(6) Education, training, and technology.--The Foundation
shall include education, training, and technology transfer as
part of the program.
(7) Coordination.--The Secretary shall consult with the
Administrator to ensure that all activities conducted under
the program are coordinated with the Agency and do not
duplicate other programs in the Agency and other Federal
agencies, State programs, and academia.
(8) Reports.--Not later than 1 year after the date of
commencement of the program under this subsection, and once
every year thereafter, the Secretary shall submit to the
Committee on Energy and Commerce of the House of
Representatives and the Committee on Environment and Public
Works and the Committee on Energy and Natural Resources of
the Senate a report on the results of the program under this
subsection.
(e) Desalination Program.--
(1) In general.--The Secretary, in cooperation with the
Commissioner of Reclamation of the Department of the
Interior, shall carry out a program to conduct research and
develop methods and means for desalination in accordance with
the desalination technology progress plan developed under
title II of the Energy and Water Development Appropriations
Act, 2002 (115 Stat. 498), and described in Senate Report
107-39 under the heading ``water and related resources'' in
the ``Bureau of Reclamation'' section.
(2) Requirements.--The desalination program shall--
(A) use the resources of the Department and the Department
of the Interior that were involved in the development of the
2003 National Desalination and Water Purification Technology
Roadmap for next-generation desalination technology;
(B) focus on technologies that are appropriate for use in
desalinating brackish groundwater, drinking water, wastewater
and other saline water supplies, or disposal of residual
brine or salt; and
(C) consider the use of renewable energy sources.
(3) Construction projects.--Funds made available to carry
out this subsection may be used for construction projects,
including completion of the National Desalination Research
Center for brackish groundwater and ongoing operational costs
of this facility.
(4) Steering committee.--The Secretary and the Commissioner
of Reclamation of the Department of the Interior shall
jointly establish a steering committee for activities
conducted under this subsection. The steering committee shall
be jointly chaired by 1 representative from the program and 1
representative from the Bureau of Reclamation.
(f) Water and Energy Sustainability Program.--
(1) In general.--The Secretary shall develop a program to
identify methods, means, procedures, equipment, and improved
technologies necessary to ensure that sufficient quantities
of water are available to meet energy needs and sufficient
energy is available to meet water needs.
(2) Assessments.--In order to acquire information and avoid
duplication, the Secretary shall work in collaboration with
the Secretary of the Interior, the Army Corps of Engineers,
the Administrator, the Secretary of Commerce, the Secretary
of Defense, relevant State agencies, nongovernmental
organizations, and academia, to assess--
(A) future water resources needed to support energy
development and production within the United States including
water used for hydropower, and production of, or electricity
generation by, hydrogen, biomass, fossil fuels, and nuclear
fuel;
(B) future energy resources needed to support water
purification and wastewater treatment, including desalination
and water conveyance;
(C) use of impaired and nontraditional water supplies for
energy production other than oil and gas extraction;
(D) technology and programs for improving water use
efficiency; and
(E) technologies to reduce water use in energy development
and production.
(3) Roadmap; tools.--The Secretary shall--
(A) develop a program plan and technology development
roadmap for the Water and Energy Sustainability Program to
identify scientific and technical requirements and activities
that are required to support planning for energy
sustainability under current and potential future conditions
of water availability, use of impaired water for energy
production and other uses, and reduction of water use in
energy development and production;
(B) develop tools for national and local energy and water
sustainability planning, including numerical models, decision
analysis tools, economic analysis tools, databases, and
planning methodologies and strategies;
(C) implement at least 3 planning projects involving energy
development or production that use the tools described in
subparagraph (B) and assess the viability of those tools at
the scale of river basins with at least 1 demonstration
involving an international border; and
(D) transfer those tools to other Federal agencies, State
agencies, nonprofit organizations, industry, and academia.
(4) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Congress
a report on the Water and Energy Sustainability Program
that--
(A) includes the results of the assessment under paragraph
(2) and the program plan and technology development roadmap;
and
(B) identifies policy, legal, and institutional issues
related to water and energy sustainability.
SEC. 962. NITROGEN FIXATION.
The Secretary, acting through the Office of Science, shall
support a program of research, development, demonstration,
and commercial application on biological nitrogen fixation,
including plant genomics research relevant to the development
of commercial crop varieties with enhanced nitrogen fixation
efficiency and ability.
Subtitle G--Energy and Environment
SEC. 964. UNITED STATES-MEXICO ENERGY TECHNOLOGY COOPERATION.
(a) Program.--The Secretary shall establish a research,
development, demonstration, and commercial application
program to be carried out in collaboration with entities in
Mexico and the United States to promote energy efficient,
environmentally sound economic development along the United
States-Mexico border that minimizes public health risks from
industrial activities in the border region.
(b) Program Management.--The program under subsection (a)
shall be managed by the Department of Energy Carlsbad
Environmental Management Field Office.
(c) Technology Transfer.--In carrying out projects and
activities under this section, the Secretary shall assess the
applicability of technology developed under the Environmental
Management Science Program of the Department.
(d) Intellectual Property.--In carrying out this section,
the Secretary shall comply with the requirements of any
agreement entered into between the United States and Mexico
regarding intellectual property protection.
(e) Authorization of Appropriations.--The following sums
are authorized to be appropriated to the Secretary to carry
out activities under this section:
(1) For each of fiscal years 2004 and 2005, $5,000,000.
(2) For each of fiscal years 2006, 2007, and 2008,
$6,000,000.
SEC. 965. WESTERN HEMISPHERE ENERGY COOPERATION.
(a) Program.--The Secretary shall carry out a program to
promote cooperation on energy issues with Western Hemisphere
countries.
(b) Activities.--Under the program, the Secretary shall
fund activities to work with Western Hemisphere countries
to--
(1) assist the countries in formulating and adopting
changes in economic policies and other policies to--
(A) increase the production of energy supplies; and
(B) improve energy efficiency; and
(2) assist in the development and transfer of energy supply
and efficiency technologies that would have a beneficial
impact on world energy markets.
(c) University Participation.--To the extent practicable,
the Secretary shall carry out the program under this section
with the participation of universities so as to take
advantage of the acceptance of universities by Western
Hemisphere countries as sources of unbiased technical and
policy expertise when assisting the Secretary in--
(1) evaluating new technologies;
(2) resolving technical issues;
(3) working with those countries in the development of new
policies; and
(4) training policymakers, particularly in the case of
universities that involve the participation of minority
students, such as Hispanic-serving institutions and
Historically Black Colleges and Universities.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section--
(1) $8,000,000 for fiscal year 2004;
(2) $10,000,000 for fiscal year 2005;
(3) $13,000,000 for fiscal year 2006;
(4) $16,000,000 for fiscal year 2007; and
(5) $19,000,000 for fiscal year 2008.
SEC. 966. WASTE REDUCTION AND USE OF ALTERNATIVES.
(a) Grant Authority.--The Secretary may make a single grant
to a qualified institution to examine and develop the
feasibility of burning post-consumer carpet in cement kilns
as an alternative energy source. The purposes of the grant
shall include determining--
(1) how post-consumer carpet can be burned without
disrupting kiln operations;
(2) the extent to which overall kiln emissions may be
reduced;
(3) the emissions of air pollutants and other relevant
environmental impacts; and
(4) how this process provides benefits to both cement kiln
operations and carpet suppliers.
(b) Qualified Institution.--For the purposes of subsection
(a), a qualified institution is a research-intensive
institution of higher education with demonstrated expertise
in the fields of fiber recycling and logistical modeling of
carpet waste collection and preparation.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
section $500,000.
SEC. 967. REPORT ON FUEL CELL TEST CENTER.
(a) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary
[[Page 29185]]
shall transmit to Congress a report on the results of a study
of the establishment of a test center for next-generation
fuel cells at an institution of higher education that has
available a continuous source of hydrogen and access to the
electric transmission grid. Such report shall include a
conceptual design for such test center and a projection of
the costs of establishing the test center.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
section $500,000.
SEC. 968. ARCTIC ENGINEERING RESEARCH CENTER.
(a) In General.--The Secretary of Energy (referred to in
this section as the ``Secretary'') in consultation with the
Secretary of Transportation and the United States Arctic
Research Commission shall provide annual grants to a
university located adjacent to the Arctic Energy Office of
the Department of Energy, to establish and operate a
university research center to be headquartered in Fairbanks
and to be known as the ``Arctic Engineering Research Center''
(referred to in this section as the ``Center'').
(b) Purpose.--The purpose of the Center shall be to conduct
research on, and develop improved methods of, construction
and use of materials to improve the overall performance of
roads, bridges, residential, commercial, and industrial
structures, and other infrastructure in the Arctic region,
with an emphasis on developing--
(1) new construction techniques for roads, bridges, rail,
and related transportation infrastructure and residential,
commercial, and industrial infrastructure that are capable of
withstanding the Arctic environment and using limited energy
resources as efficiently as possible;
(2) technologies and procedures for increasing road,
bridge, rail, and related transportation infrastructure and
residential, commercial, and industrial infrastructure
safety, reliability, and integrity in the Arctic region;
(3) new materials and improving the performance and energy
efficiency of existing materials for the construction of
roads, bridges, rail, and related transportation
infrastructure and residential, commercial, and industrial
infrastructure in the Arctic region; and
(4) recommendations for new local, regional, and State
permitting and building codes to ensure transportation and
building safety and efficient energy use when constructing,
using, and occupying such infrastructure in the Arctic
region.
(c) Objectives.--The Center shall carry out--
(1) basic and applied research in the subjects described in
subsection (b), the products of which shall be judged by
peers or other experts in the field to advance the body of
knowledge in road, bridge, rail, and infrastructure
engineering in the Arctic region; and
(2) an ongoing program of technology transfer that makes
research results available to potential users in a form that
can be implemented.
(d) Amount of Grant.--For each of fiscal years 2004 through
2009, the Secretary shall provide a grant in the amount of
$3,000,000 to the institution specified in subsection (a) to
carry out this section.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $3,000,000 for
each of fiscal years 2004 through 2009.
SEC. 969. BARROW GEOPHYSICAL RESEARCH FACILITY.
(a) Establishment.--The Secretary of Commerce, in
consultation with the Secretaries of Energy and the Interior,
the Director of the National Science Foundation, and the
Administrator of the Environmental Protection Agency, shall
establish a joint research facility in Barrow, Alaska, to be
known as the ``Barrow Geophysical Research Facility'', to
support scientific research activities in the Arctic.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretaries of Commerce, Energy,
and the Interior, the Director of the National Science
Foundation, and the Administrator of the Environmental
Protection Agency for the planning, design, construction, and
support of the Barrow Geophysical Research Facility
$61,000,000.
SEC. 970. WESTERN MICHIGAN DEMONSTRATION PROJECT.
The Administrator of the Environmental Protection Agency,
in consultation with the State of Michigan and affected local
officials, shall conduct a demonstration project to address
the effect of transported ozone and ozone precursors in
Southwestern Michigan. The demonstration program shall
address projected nonattainment areas in Southwestern
Michigan that include counties with design values for ozone
of less than .095 based on years 2000 to 2002 or the most
current 3-year period of air quality data. The Administrator
shall assess any difficulties such areas may experience in
meeting the 8 hour national ambient air quality standard for
ozone due to the effect of transported ozone or ozone
precursors into the areas. The Administrator shall work with
State and local officials to determine the extent of ozone
and ozone precursor transport, to assess alternatives to
achieve compliance with the 8 hour standard apart from local
controls, and to determine the timeframe in which such
compliance could take place. The Administrator shall complete
this demonstration project no later than 2 years after the
date of enactment of this section and shall not impose any
requirement or sanction that might otherwise apply during the
pendency of the demonstration project.
Subtitle H--Management
SEC. 971. AVAILABILITY OF FUNDS.
Funds authorized to be appropriated to the Department under
this title shall remain available until expended.
SEC. 972. COST SHARING.
(a) Research and Development.--Except as otherwise provided
in this title, for research and development programs carried
out under this title the Secretary shall require a commitment
from non-Federal sources of at least 20 percent of the cost
of the project. The Secretary may reduce or eliminate the
non-Federal requirement under this subsection if the
Secretary determines that the research and development is of
a basic or fundamental nature or involves technical analyses
or educational activities.
(b) Demonstration and Commercial Application.--Except as
otherwise provided in this title, the Secretary shall require
at least 50 percent of the costs directly and specifically
related to any demonstration or commercial application
project under this title to be provided from non-Federal
sources. The Secretary may reduce the non-Federal requirement
under this subsection if the Secretary determines that the
reduction is necessary and appropriate considering the
technological risks involved in the project and is necessary
to meet the objectives of this title.
(c) Calculation of Amount.--In calculating the amount of
the non-Federal commitment under subsection (a) or (b), the
Secretary may include personnel, services, equipment, and
other resources.
(d) Size of Non-Federal Share.--The Secretary may consider
the size of the non-Federal share in selecting projects.
SEC. 973. MERIT REVIEW OF PROPOSALS.
Awards of funds authorized under this title shall be made
only after an impartial review of the scientific and
technical merit of the proposals for such awards has been
carried out by or for the Department.
SEC. 974. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.
(a) National Energy Research and Development Advisory
Boards.--
(1) In general.--The Secretary shall establish 1 or more
advisory boards to review Department research, development,
demonstration, and commercial application programs in energy
efficiency, renewable energy, nuclear energy, and fossil
energy.
(2) Existing advisory boards.--The Secretary may designate
an existing advisory board within the Department to fulfill
the responsibilities of an advisory board under this
subsection, and may enter into appropriate arrangements with
the National Academy of Sciences to establish such an
advisory board.
(b) Office of Science Advisory Committees.--
(1) Utilization of existing committees.--The Secretary
shall continue to use the scientific program advisory
committees chartered under the Federal Advisory Committee Act
(5 U.S.C. App.) by the Office of Science to oversee research
and development programs under that Office.
(2) Science advisory committee.--
(A) Establishment.--There shall be in the Office of Science
a Science Advisory Committee that includes the chairs of each
of the advisory committees described in paragraph (1).
(B) Responsibilities.--The Science Advisory Committee
shall--
(i) serve as the science advisor to the Director of the
Office of Science;
(ii) advise the Director with respect to the well-being and
management of the National Laboratories and single-purpose
research facilities;
(iii) advise the Director with respect to education and
workforce training activities required for effective short-
term and long-term basic and applied research activities of
the Office of Science; and
(iv) advise the Director with respect to the well being of
the university research programs supported by the Office of
Science.
(c) Membership.--Each advisory board under this section
shall consist of persons with appropriate expertise
representing a diverse range of interests.
(d) Meetings and Purposes.--Each advisory board under this
section shall meet at least semiannually to review and advise
on the progress made by the respective research, development,
demonstration, and commercial application program or
programs. The advisory board shall also review the measurable
cost and performance-based goals for such programs as
established under section 901(b), and the progress on meeting
such goals.
(e) Periodic Reviews and Assessments.--The Secretary shall
enter into appropriate arrangements with the National Academy
of Sciences to conduct periodic reviews and assessments of
the programs authorized by this title, the measurable cost
and performance-based goals for such programs as established
under section 901(b), if any, and the progress on meeting
such goals. Such reviews and assessments shall be conducted
every 5 years, or more often as the Secretary considers
necessary, and the Secretary shall transmit to Congress
reports containing the results of all such reviews and
assessments.
SEC. 975. IMPROVED COORDINATION OF TECHNOLOGY TRANSFER
ACTIVITIES.
(a) Technology Transfer Coordinator.--The Secretary shall
designate a Technology Transfer Coordinator to perform
oversight of and policy development for technology transfer
activities at the Department. The Technology Transfer
Coordinator shall--
(1) coordinate the activities of the Technology Transfer
Working Group;
[[Page 29186]]
(2) oversee the expenditure of funds allocated to the
Technology Transfer Working Group; and
(3) coordinate with each technology partnership ombudsman
appointed under section 11 of the Technology Transfer
Commercialization Act of 2000 (42 U.S.C. 7261c).
(b) Technology Transfer Working Group.--The Secretary shall
establish a Technology Transfer Working Group, which shall
consist of representatives of the National Laboratories and
single-purpose research facilities, to--
(1) coordinate technology transfer activities occurring at
National Laboratories and single-purpose research facilities;
(2) exchange information about technology transfer
practices, including alternative approaches to resolution of
disputes involving intellectual property rights and other
technology transfer matters; and
(3) develop and disseminate to the public and prospective
technology partners information about opportunities and
procedures for technology transfer with the Department,
including those related to alternative approaches to
resolution of disputes involving intellectual property rights
and other technology transfer matters.
(c) Technology Transfer Responsibility.--Nothing in this
section shall affect the technology transfer responsibilities
of Federal employees under the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3701 et seq.).
SEC. 976. FEDERAL LABORATORY EDUCATIONAL PARTNERS.
(a) Distribution of Royalties Received by Federal
Agencies.--Section 14(a)(1)(B)(v) of the Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C.
3710c(a)(1)(B)(v)), is amended to read as follows:
``(v) for scientific research and development and for
educational assistance and other purposes consistent with the
missions and objectives of the agency and the laboratory.''.
(b) Cooperative Research and Development Agreements.--
Section 12(b)(5)(C) of the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3710a(b)(5)(C)) is amended
to read as follows:
``(C) for scientific research and development and for
educational assistance consistent with the missions and
objectives of the agency and the laboratory.''.
SEC. 977. INTERAGENCY COOPERATION.
The Secretary shall enter into discussions with the
Administrator of the National Aeronautics and Space
Administration with the goal of reaching an interagency
working agreement between the 2 agencies that would make the
National Aeronautics and Space Administration's expertise in
energy, gained from its existing and planned programs, more
readily available to the relevant research, development,
demonstration, and commercial applications programs of the
Department. Technologies to be discussed should include the
National Aeronautics and Space Administration's modeling,
research, development, testing, and evaluation of new energy
technologies, including solar, wind, fuel cells, and hydrogen
storage and distribution.
SEC. 978. TECHNOLOGY INFRASTRUCTURE PROGRAM.
(a) Establishment.--The Secretary shall establish a
Technology Infrastructure Program in accordance with this
section.
(b) Purpose.--The purpose of the Technology Infrastructure
Program shall be to improve the ability of National
Laboratories and single-purpose research facilities to
support departmental missions by--
(1) stimulating the development of technology clusters that
can support departmental missions at the National
Laboratories or single-purpose research facilities;
(2) improving the ability of National Laboratories and
single-purpose research facilities to leverage and benefit
from commercial research, technology, products, processes,
and services; and
(3) encouraging the exchange of scientific and
technological expertise between National Laboratories or
single-purpose research facilities and entities that can
support departmental missions at the National Laboratories or
single-purpose research facilities, such as institutions of
higher education; technology-related business concerns;
nonprofit institutions; and agencies of State, tribal, or
local governments.
(c) Projects.--The Secretary shall authorize the Director
of each National Laboratory or single-purpose research
facility to implement the Technology Infrastructure Program
at such National Laboratory or facility through projects that
meet the requirements of subsections (d) and (e).
(d) Program Requirements.--Each project funded under this
section shall meet the following requirements:
(1) Each project shall include at least 1 of each of the
following entities: a business; an institution of higher
education; a nonprofit institution; and an agency of a State,
local, or tribal government.
(2) Not less than 50 percent of the costs of each project
funded under this section shall be provided from non-Federal
sources. The calculation of costs paid by the non-Federal
sources to a project shall include cash, personnel, services,
equipment, and other resources expended on the project after
start of the project. Independent research and development
expenses of Government contractors that qualify for
reimbursement under section 31.205-18(e) of the Federal
Acquisition Regulation issued pursuant to section 25(c)(1) of
the Office of Federal Procurement Policy Act (41 U.S.C.
421(c)(1)) may be credited toward costs paid by non-Federal
sources to a project, if the expenses meet the other
requirements of this section.
(3) All projects under this section shall be competitively
selected using procedures determined by the Secretary.
(4) Any participant that receives funds under this section
may use generally accepted accounting principles for
maintaining accounts, books, and records relating to the
project.
(5) No Federal funds shall be made available under this
section for construction or any project for more than 5
years.
(e) Selection Criteria.--
(1) In general.--The Secretary shall allocate funds under
this section only if the Director of the National Laboratory
or single-purpose research facility managing the project
determines that the project is likely to improve the ability
of the National Laboratory or single-purpose research
facility to achieve technical success in meeting departmental
missions.
(2) Criteria.--The Secretary shall consider the following
criteria in selecting a project to receive Federal funds:
(A) The potential of the project to promote the development
of a commercially sustainable technology cluster following
the period of Department investment, which will derive most
of the demand for its products or services from the private
sector, and which will support departmental missions at the
participating National Laboratory or single-purpose research
facility.
(B) The potential of the project to promote the use of
commercial research, technology, products, processes, and
services by the participating National Laboratory or single-
purpose research facility to achieve its mission or the
commercial development of technological innovations made at
the participating National Laboratory or single-purpose
research facility.
(C) The extent to which the project involves a wide variety
and number of institutions of higher education, nonprofit
institutions, and technology-related business concerns that
can support the missions of the participating National
Laboratory or single-purpose research facility and that will
make substantive contributions to achieving the goals of the
project.
(D) The extent to which the project focuses on promoting
the development of technology-related business concerns that
are small businesses or involves such small businesses
substantively in the project.
(E) Such other criteria as the Secretary determines to be
appropriate.
(f) Allocation.--In allocating funds for projects approved
under this section, the Secretary shall provide--
(1) the Federal share of the project costs; and
(2) additional funds to the National Laboratory or single-
purpose research facility managing the project to permit the
National Laboratory or single-purpose research facility to
carry out activities relating to the project, and to
coordinate such activities with the project.
(g) Report to Congress.--Not later than July 1, 2006, the
Secretary shall report to Congress on whether the Technology
Infrastructure Program should be continued and, if so, how
the program should be managed.
(h) Definitions.--In this section:
(1) Technology cluster.--The term ``technology cluster''
means a concentration of technology-related business
concerns, institutions of higher education, or nonprofit
institutions that reinforce each other's performance in the
areas of technology development through formal or informal
relationships.
(2) Technology-related business concern.--The term
``technology-related business concern'' means a for-profit
corporation, company, association, firm, partnership, or
small business concern that conducts scientific or
engineering research; develops new technologies; manufactures
products based on new technologies; or performs technological
services.
(i) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for activities under this
section $10,000,000 for each of fiscal years 2004, 2005, and
2006.
SEC. 979. REPROGRAMMING.
(a) Distribution Report.--Not later than 60 days after the
date of the enactment of an Act appropriating amounts
authorized under this title, the Secretary shall transmit to
the appropriate authorizing committees of Congress a report
explaining how such amounts will be distributed among the
authorizations contained in this title.
(b) Prohibition.--
(1) In general.--No amount identified under subsection (a)
shall be reprogrammed if such reprogramming would result in
an obligation which changes an individual distribution
required to be reported under subsection (a) by more than 5
percent unless the Secretary has transmitted to the
appropriate authorizing committees of Congress a report
described in subsection (c) and a period of 30 days has
elapsed after such committees receive the report.
(2) Computation.--In the computation of the 30-day period
described in paragraph (1), there shall be excluded any day
on which either House of Congress is not in session because
of an adjournment of more than 3 days to a day certain.
(c) Reprogramming Report.--A report referred to in
subsection (b)(1) shall contain a full and complete statement
of the action proposed to be taken and the facts and
circumstances relied on in support of the proposed action.
SEC. 980. CONSTRUCTION WITH OTHER LAWS.
Except as otherwise provided in this title, the Secretary
shall carry out the research, development, demonstration, and
commercial application programs, projects, and activities
authorized by this title in accordance with the applicable
provisions of the Atomic Energy Act of 1954
[[Page 29187]]
(42 U.S.C. 2011 et seq.), the Federal Nonnuclear Research and
Development Act of 1974 (42 U.S.C. 5901 et seq.), the Energy
Policy Act of 1992 (42 U.S.C. 13201 et seq.), the Stevenson-
Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 et
seq.), chapter 18 of title 35, United States Code (commonly
referred to as the Bayh-Dole Act), and any other Act under
which the Secretary is authorized to carry out such
activities.
SEC. 981. REPORT ON RESEARCH AND DEVELOPMENT PROGRAM
EVALUATION METHODOLOGIES.
Not later than 180 days after the date of enactment of this
Act, the Secretary shall enter into appropriate arrangements
with the National Academy of Sciences to investigate and
report on the scientific and technical merits of any
evaluation methodology currently in use or proposed for use
in relation to the scientific and technical programs of the
Department by the Secretary or other Federal official. Not
later than 6 months after receiving the report of the
National Academy, the Secretary shall submit such report to
Congress, along with any other views or plans of the
Secretary with respect to the future use of such evaluation
methodology.
SEC. 982. DEPARTMENT OF ENERGY SCIENCE AND TECHNOLOGY
SCHOLARSHIP PROGRAM.
(a) Establishment of Program.--
(1) In general.--The Secretary is authorized to establish a
Department of Energy Science and Technology Scholarship
Program to award scholarships to individuals that is designed
to recruit and prepare students for careers in the
Department.
(2) Competitive process.--Individuals shall be selected to
receive scholarships under this section through a competitive
process primarily on the basis of academic merit, with
consideration given to financial need and the goal of
promoting the participation of individuals identified in
section 33 or 34 of the Science and Engineering Equal
Opportunities Act (42 U.S.C. 1885a or 1885b).
(3) Service agreements.--To carry out the Program the
Secretary shall enter into contractual agreements with
individuals selected under paragraph (2) under which the
individuals agree to serve as full-time employees of the
Department, for the period described in subsection (f)(1), in
positions needed by the Department and for which the
individuals are qualified, in exchange for receiving a
scholarship.
(b) Scholarship Eligibility.--In order to be eligible to
participate in the Program, an individual must--
(1) be enrolled or accepted for enrollment as a full-time
student at an institution of higher education in an academic
program or field of study described in the list made
available under subsection (d);
(2) be a United States citizen; and
(3) at the time of the initial scholarship award, not be a
Federal employee as defined in section 2105 of title 5 of the
United States Code.
(c) Application Required.--An individual seeking a
scholarship under this section shall submit an application to
the Secretary at such time, in such manner, and containing
such information, agreements, or assurances as the Secretary
may require.
(d) Eligible Academic Programs.--The Secretary shall make
publicly available a list of academic programs and fields of
study for which scholarships under the Program may be
utilized, and shall update the list as necessary.
(e) Scholarship Requirement.--
(1) In general.--The Secretary may provide a scholarship
under the Program for an academic year if the individual
applying for the scholarship has submitted to the Secretary,
as part of the application required under subsection (c), a
proposed academic program leading to a degree in a program or
field of study on the list made available under subsection
(d).
(2) Duration of eligibility.--An individual may not receive
a scholarship under this section for more than 4 academic
years, unless the Secretary grants a waiver.
(3) Scholarship amount.--The dollar amount of a scholarship
under this section for an academic year shall be determined
under regulations issued by the Secretary, but shall in no
case exceed the cost of attendance.
(4) Authorized uses.--A scholarship provided under this
section may be expended for tuition, fees, and other
authorized expenses as established by the Secretary by
regulation.
(5) Contracts regarding direct payments to institutions.--
The Secretary may enter into a contractual agreement with an
institution of higher education under which the amounts
provided for a scholarship under this section for tuition,
fees, and other authorized expenses are paid directly to the
institution with respect to which the scholarship is
provided.
(f) Period of Obligated Service.--
(1) Duration of service.--The period of service for which
an individual shall be obligated to serve as an employee of
the Department is, except as provided in subsection (h)(2),
24 months for each academic year for which a scholarship
under this section is provided.
(2) Schedule for service.--
(A) In general.--Except as provided in subparagraph (B),
obligated service under paragraph (1) shall begin not later
than 60 days after the individual obtains the educational
degree for which the scholarship was provided.
(B) Deferral.--The Secretary may defer the obligation of an
individual to provide a period of service under paragraph (1)
if the Secretary determines that such a deferral is
appropriate. The Secretary shall prescribe the terms and
conditions under which a service obligation may be deferred
through regulation.
(g) Penalties for Breach of Scholarship Agreement.--
(1) Failure to complete academic training.--Scholarship
recipients who fail to maintain a high level of academic
standing, as defined by the Secretary by regulation, who are
dismissed from their educational institutions for
disciplinary reasons, or who voluntarily terminate academic
training before graduation from the educational program for
which the scholarship was awarded, shall be in breach of
their contractual agreement and, in lieu of any service
obligation arising under such agreement, shall be liable to
the United States for repayment not later than 1 year after
the date of default of all scholarship funds paid to them and
to the institution of higher education on their behalf under
the agreement, except as provided in subsection (h)(2). The
repayment period may be extended by the Secretary when
determined to be necessary, as established by regulation.
(2) Failure to begin or complete the service obligation or
meet the terms and conditions of deferment.--A scholarship
recipient who, for any reason, fails to begin or complete a
service obligation under this section after completion of
academic training, or fails to comply with the terms and
conditions of deferment established by the Secretary pursuant
to subsection (f)(2)(B), shall be in breach of the
contractual agreement. When a recipient breaches an agreement
for the reasons stated in the preceding sentence, the
recipient shall be liable to the United States for an amount
equal to--
(A) the total amount of scholarships received by such
individual under this section; plus
(B) the interest on the amounts of such awards which would
be payable if at the time the awards were received they were
loans bearing interest at the maximum legal prevailing rate,
as determined by the Treasurer of the United States,
multiplied by 3.
(h) Waiver or Suspension of Obligation.--
(1) Death of individual.--Any obligation of an individual
incurred under the Program (or a contractual agreement
thereunder) for service or payment shall be canceled upon the
death of the individual.
(2) Impossibility or extreme hardship.--The Secretary shall
by regulation provide for the partial or total waiver or
suspension of any obligation of service or payment incurred
by an individual under the Program (or a contractual
agreement thereunder) whenever compliance by the individual
is impossible or would involve extreme hardship to the
individual, or if enforcement of such obligation with respect
to the individual would be contrary to the best interests of
the Government.
(i) Definitions.--In this section the following definitions
apply:
(1) Cost of attendance.--The term ``cost of attendance''
has the meaning given that term in section 472 of the Higher
Education Act of 1965 (20 U.S.C. 1087ll).
(2) Program.--The term ``Program'' means the Department of
Energy Science and Technology Scholarship Program established
under this section.
(j) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for activities under this
section--
(1) for fiscal year 2004, $800,000;
(2) for fiscal year 2005, $1,600,000;
(3) for fiscal year 2006, $2,000,000;
(4) for fiscal year 2007, $2,000,000; and
(5) for fiscal year 2008, $2,000,000.
SEC. 983. REPORT ON EQUAL EMPLOYMENT OPPORTUNITY PRACTICES.
Not later than 12 months after the date of enactment of
this Act, and biennially thereafter, the Secretary shall
transmit to Congress a report on the equal employment
opportunity practices at National Laboratories. Such report
shall include--
(1) a thorough review of each laboratory contractor's equal
employment opportunity policies, including promotion to
management and professional positions and pay raises;
(2) a statistical report on complaints and their
disposition in the laboratories;
(3) a description of how equal employment opportunity
practices at the laboratories are treated in the contract and
in calculating award fees for each contractor;
(4) a summary of disciplinary actions and their disposition
by either the Department or the relevant contractors for each
laboratory;
(5) a summary of outreach efforts to attract women and
minorities to the laboratories;
(6) a summary of efforts to retain women and minorities in
the laboratories; and
(7) a summary of collaboration efforts with the Office of
Federal Contract Compliance Programs to improve equal
employment opportunity practices at the laboratories.
SEC. 984. SMALL BUSINESS ADVOCACY AND ASSISTANCE.
(a) Small Business Advocate.--The Secretary shall require
the Director of each National Laboratory, and may require the
Director of a single-purpose research facility, to designate
a small business advocate to--
(1) increase the participation of small business concerns,
including socially and economically disadvantaged small
business concerns, in procurement, collaborative research,
technology licensing, and technology transfer activities
conducted by the National Laboratory or single-purpose
research facility;
(2) report to the Director of the National Laboratory or
single-purpose research facility on
[[Page 29188]]
the actual participation of small business concerns,
including socially and economically disadvantaged small
business concerns, in procurement, collaborative research,
technology licensing, and technology transfer activities
along with recommendations, if appropriate, on how to improve
participation;
(3) make available to small businesses training, mentoring,
and information on how to participate in procurement and
collaborative research activities;
(4) increase the awareness inside the National Laboratory
or single-purpose research facility of the capabilities and
opportunities presented by small business concerns; and
(5) establish guidelines for the program under subsection
(b) and report on the effectiveness of such program to the
Director of the National Laboratory or single-purpose
research facility.
(b) Establishment of Small Business Assistance Program.--
The Secretary shall require the Director of each National
Laboratory, and may require the Director of a single-purpose
research facility, to establish a program to provide small
business concerns--
(1) assistance directed at making them more effective and
efficient subcontractors or suppliers to the National
Laboratory or single-purpose research facility; or
(2) general technical assistance, the cost of which shall
not exceed $10,000 per instance of assistance, to improve the
small business concerns' products or services.
(c) Use of Funds.--None of the funds expended under
subsection (b) may be used for direct grants to the small
business concerns.
(d) Definitions.--In this section:
(1) Small business concern.--The term ``small business
concern'' has the meaning given such term in section 3 of the
Small Business Act (15 U.S.C. 632).
(2) Socially and economically disadvantaged small business
concerns.--The term ``socially and economically disadvantaged
small business concerns'' has the meaning given such term in
section 8(a)(4) of the Small Business Act (15 U.S.C.
637(a)(4)).
(e) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for activities under this
section $5,000,000 for each of fiscal years 2004 through
2008.
SEC. 985. REPORT ON MOBILITY OF SCIENTIFIC AND TECHNICAL
PERSONNEL.
Not later than 2 years after the date of enactment of this
Act, the Secretary shall transmit a report to Congress
identifying any policies or procedures of a contractor
operating a National Laboratory or single-purpose research
facility that create disincentives to the temporary transfer
of scientific and technical personnel among the contractor-
operated National Laboratories or contractor-operated single-
purpose research facilities and provide suggestions for
improving interlaboratory exchange of scientific and
technical personnel.
SEC. 986. NATIONAL ACADEMY OF SCIENCES REPORT.
Not later than 90 days after the date of enactment of this
Act, the Secretary shall enter into an arrangement with the
National Academy of Sciences for the Academy to--
(1) conduct a study on--
(A) the obstacles to accelerating the commercial
application of energy technology; and
(B) the adequacy of Department policies and procedures for,
and oversight of, technology transfer-related disputes
between contractors of the Department and the private sector;
and
(2) transmit a report to Congress on recommendations
developed as a result of the study.
SEC. 987. OUTREACH.
The Secretary shall ensure that each program authorized by
this title includes an outreach component to provide
information, as appropriate, to manufacturers, consumers,
engineers, architects, builders, energy service companies,
institutions of higher education, small businesses, facility
planners and managers, State and local governments, and other
entities.
SEC. 988. COMPETITIVE AWARD OF MANAGEMENT CONTRACTS.
None of the funds authorized to be appropriated to the
Secretary by this title may be used to award a management and
operating contract for a nonmilitary energy laboratory of the
Department unless such contract is competitively awarded or
the Secretary grants, on a case-by-case basis, a waiver to
allow for such a deviation. The Secretary may not delegate
the authority to grant such a waiver and shall submit to
Congress a report notifying Congress of the waiver and
setting forth the reasons for the waiver at least 60 days
prior to the date of the award of such a contract.
SEC. 989. EDUCATIONAL PROGRAMS IN SCIENCE AND MATHEMATICS.
(a) Activities.--Section 3165(a) of the Department of
Energy Science Education Enhancement Act (42 U.S.C. 7381b(a))
is amended by adding at the end the following:
``(14) Support competitive events for students, under
supervision of teachers, designed to encourage student
interest and knowledge in science and mathematics.''.
(b) Authorization of Appropriations.--Section 3169 of the
Department of Energy Science Education Enhancement Act (42
U.S.C. 7381e), as so redesignated by section 1102(b), is
amended by inserting before the period ``; and $40,000,000
for each of fiscal years 2004 through 2008''.
TITLE X--DEPARTMENT OF ENERGY MANAGEMENT
SEC. 1001. ADDITIONAL ASSISTANT SECRETARY POSITION.
(a) Additional Assistant Secretary Position to Enable
Improved Management of Nuclear Energy Issues.--
(1) In general.--Section 203(a) of the Department of Energy
Organization Act (42 U.S.C. 7133(a)) is amended by striking
``six Assistant Secretaries'' and inserting ``7 Assistant
Secretaries''.
(2) Sense of congress.--It is the sense of Congress that
the leadership for departmental missions in nuclear energy
should be at the Assistant Secretary level.
(b) Technical and Conforming Amendments.--
(1) Title 5.--Section 5315 of title 5, United States Code,
is amended by striking ``Assistant Secretaries of Energy
(6)'' and inserting ``Assistant Secretaries of Energy (7)''.
(2) Department of energy organization act.--The table of
contents for the Department of Energy Organization Act (42
U.S.C. 7101 note) is amended--
(A) by striking ``Section 209'' and inserting ``Sec. 209'';
(B) by striking ``213.'' and inserting ``Sec. 213.'';
(C) by striking ``214.'' and inserting ``Sec. 214.'';
(D) by striking ``215.'' and inserting ``Sec. 215.''; and
(E) by striking ``216.'' and inserting ``Sec. 216.''.
SEC. 1002. OTHER TRANSACTIONS AUTHORITY.
Section 646 of the Department of Energy Organization Act
(42 U.S.C. 7256) is amended by adding at the end the
following:
``(g)(1) In addition to other authorities granted to the
Secretary under law, the Secretary may enter into other
transactions on such terms as the Secretary may deem
appropriate in furtherance of research, development, or
demonstration functions vested in the Secretary. Such other
transactions shall not be subject to the provisions of
section 9 of the Federal Nonnuclear Energy Research and
Development Act of 1974 (42 U.S.C. 5908) or section 152 of
the Atomic Energy Act of 1954 (42 U.S.C. 2182).
``(2)(A) The Secretary shall ensure that--
``(i) to the maximum extent the Secretary determines
practicable, no transaction entered into under paragraph (1)
provides for research, development, or demonstration that
duplicates research, development, or demonstration being
conducted under existing projects carried out by the
Department;
``(ii) to the extent the Secretary determines practicable,
the funds provided by the Government under a transaction
authorized by paragraph (1) do not exceed the total amount
provided by other parties to the transaction; and
``(iii) to the extent the Secretary determines practicable,
competitive, merit-based selection procedures shall be used
when entering into transactions under paragraph (1).
``(B) A transaction authorized by paragraph (1) may be used
for a research, development, or demonstration project only if
the Secretary makes a written determination that the use of a
standard contract, grant, or cooperative agreement for the
project is not feasible or appropriate.
``(3)(A) The Secretary shall protect from disclosure,
including disclosure under section 552 of title 5, United
States Code, for up to 5 years after the date the information
is received by the Secretary--
``(i) a proposal, proposal abstract, and supporting
documents submitted to the Department in a competitive or
noncompetitive process having the potential for resulting in
an award under paragraph (1) to the party submitting the
information; and
``(ii) a business plan and technical information relating
to a transaction authorized by paragraph (1) submitted to the
Department as confidential business information.
``(B) The Secretary may protect from disclosure, for up to
5 years after the information was developed, any information
developed pursuant to a transaction under paragraph (1) which
developed information is of a character that it would be
protected from disclosure under section 552(b)(4) of title 5,
United States Code, if obtained from a person other than a
Federal agency.
``(4) Not later than 90 days after the date of enactment of
this subsection, the Secretary shall prescribe guidelines for
using other transactions authorized by paragraph (1). Such
guidelines shall be published in the Federal Register for
public comment under rulemaking procedures of the Department.
``(5) The authority of the Secretary under this subsection
may be delegated only to an officer of the Department who is
appointed by the President by and with the advice and consent
of the Senate and may not be delegated to any other person.
``(6)(A) Not later than September 31, 2005, the Comptroller
General of the United States shall report to Congress on the
Department's use of the authorities granted under this
section, including the ability to attract nontraditional
government contractors and whether additional safeguards are
needed with respect to the use of such authorities.
``(B) In this section, the term `nontraditional Government
contractor' has the same meaning as the term `nontraditional
defense contractor' as defined in section 845(e) of the
National Defense Authorization Act for Fiscal Year 1994
(Public Law 103-160; 10 U.S.C. 2371 note).''.
[[Page 29189]]
TITLE XI--PERSONNEL AND TRAINING
SEC. 1101. TRAINING GUIDELINES FOR ELECTRIC ENERGY INDUSTRY
PERSONNEL.
The Secretary of Energy, in consultation with the Secretary
of Labor and jointly with the electric industry and
recognized employee representatives, shall develop model
personnel training guidelines to support electric system
reliability and safety. The training guidelines shall, at a
minimum--
(1) include training requirements for workers engaged in
the construction, operation, inspection, and maintenance of
electric generation, transmission, and distribution,
including competency and certification requirements, and
assessment requirements that include initial and ongoing
evaluation of workers, recertification assessment procedures,
and methods for examining or testing the qualification of
individuals performing covered tasks; and
(2) consolidate existing training guidelines on the
construction, operation, maintenance, and inspection of
electric generation, transmission, and distribution
facilities, such as those established by the National
Electric Safety Code and other industry consensus standards.
SEC. 1102. IMPROVED ACCESS TO ENERGY-RELATED SCIENTIFIC AND
TECHNICAL CAREERS.
(a) Department of Energy Science Education Programs.--
Section 3164 of the Department of Energy Science Education
Enhancement Act (42 U.S.C. 7381a) is amended by adding at the
end the following:
``(c) Programs for Students From Underrepresented Groups.--
In carrying out a program under subsection (a), the Secretary
shall give priority to activities that are designed to
encourage students from underrepresented groups to pursue
scientific and technical careers.''.
(b) Partnerships With Historically Black Colleges and
Universities, Hispanic-Servicing Institutions, and Tribal
Colleges.--The Department of Energy Science Education
Enhancement Act (42 U.S.C. 7381 et seq.) is amended--
(1) by redesignating sections 3167 and 3168 as sections
3168 and 3169, respectively; and
(2) by inserting after section 3166 the following:
``SEC. 3167. PARTNERSHIPS WITH HISTORICALLY BLACK COLLEGES
AND UNIVERSITIES, HISPANIC-SERVING
INSTITUTIONS, AND TRIBAL COLLEGES.
``(a) Definitions.--In this section:
``(1) Hispanic-serving institution.--The term `Hispanic-
serving institution' has the meaning given that term in
section 502(a) of the Higher Education Act of 1965 (20 U.S.C.
1101a(a)).
``(2) Historically black college or university.--The term
`historically Black college or university' has the meaning
given the term `part B institution' in section 322 of the
Higher Education Act of 1965 (20 U.S.C. 1061).
``(3) National laboratory.--The term `National Laboratory'
has the meaning given that term in section 902 of the Energy
Policy Act of 2003.
``(4) Science facility.--The term `science facility' has
the meaning given the term `single-purpose research facility'
in section 902 of the Energy Policy Act of 2003.
``(5) Tribal college.--The term `tribal college' has the
meaning given the term `Tribal College or University' in
section 316(b)(3) of the Higher Education Act of 1965 (20
U.S.C. 1059c(b)(3)).
``(b) Education Partnership.--The Secretary shall direct
the Director of each National Laboratory and, to the extent
practicable, the head of any science facility to increase the
participation of historically Black colleges or universities,
Hispanic-serving institutions, or tribal colleges in
activities that increase the capacity of the historically
Black colleges or universities, Hispanic-serving
institutions, or tribal colleges to train personnel in
science or engineering.
``(c) Activities.--An activity under subsection (b) may
include--
``(1) collaborative research;
``(2) equipment transfer;
``(3) training activities conducted at a National
Laboratory or science facility; and
``(4) mentoring activities conducted at a National
Laboratory or science facility.
``(d) Report.--Not later than 2 years after the date of
enactment of the Energy Policy Act of 2003, the Secretary
shall submit to Congress a report on the activities carried
out under this section.''.
SEC. 1103. NATIONAL POWER PLANT OPERATIONS TECHNOLOGY AND
EDUCATION CENTER.
(a) Establishment.--The Secretary shall support the
establishment of a National Power Plant Operations Technology
and Education Center (in this section referred to as the
``Center''), to address the need for training and educating
certified operators for nonnuclear electric power generation
plants.
(b) Role.--The Center shall provide both training and
continuing education relating to nonnuclear electric power
generation plant technologies and operations. The Center
shall conduct training and education activities on site and
through Internet-based information technologies that allow
for learning at remote sites.
(c) Criteria for Competitive Selection.--The Secretary
shall support the establishment of the Center at an
institution of higher education with expertise in power plant
technology and operation and with the ability to provide
onsite as well as Internet-based training.
SEC. 1104. INTERNATIONAL ENERGY TRAINING.
(a) In General.--The Secretary of Energy, in consultation
with the Secretaries of Commerce, Interior, and State and the
Federal Energy Regulatory Commission, shall coordinate
training and outreach efforts for international commercial
energy markets in countries with developing and restructuring
economies.
(b) Components.--The efforts may address--
(1) production-related fiscal regimes;
(2) grid and network issues;
(3) energy user and demand side response;
(4) international trade of energy; and
(5) international transportation of energy.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $1,500,000 for
each of fiscal years 2004 through 2007.
TITLE XII--ELECTRICITY
SEC. 1201. SHORT TITLE.
This title may be cited as the ``Electric Reliability Act
of 2003''.
Subtitle A--Reliability Standards
SEC. 1211. ELECTRIC RELIABILITY STANDARDS.
(a) In General.--Part II of the Federal Power Act (16 U.S.C
824 et seq.) is amended by adding at the end the following:
``SEC. 215. ELECTRIC RELIABILITY.
``(a) Definitions.--For purposes of this section:
``(1) The term `bulk-power system' means--
``(A) facilities and control systems necessary for
operating an interconnected electric energy transmission
network (or any portion thereof); and
``(B) electric energy from generation facilities needed to
maintain transmission system reliability.
The term does not include facilities used in the local
distribution of electric energy.
``(2) The terms `Electric Reliability Organization' and
`ERO' mean the organization certified by the Commission under
subsection (c) the purpose of which is to establish and
enforce reliability standards for the bulk-power system,
subject to Commission review.
``(3) The term `reliability standard' means a requirement,
approved by the Commission under this section, to provide for
reliable operation of the bulk-power system. The term
includes requirements for the operation of existing bulk-
power system facilities and the design of planned additions
or modifications to such facilities to the extent necessary
to provide for reliable operation of the bulk-power system,
but the term does not include any requirement to enlarge such
facilities or to construct new transmission capacity or
generation capacity.
``(4) The term `reliable operation' means operating the
elements of the bulk-power system within equipment and
electric system thermal, voltage, and stability limits so
that instability, uncontrolled separation, or cascading
failures of such system will not occur as a result of a
sudden disturbance or unanticipated failure of system
elements.
``(5) The term `Interconnection' means a geographic area in
which the operation of bulk-power system components is
synchronized such that the failure of 1 or more of such
components may adversely affect the ability of the operators
of other components within the system to maintain reliable
operation of the facilities within their control.
``(6) The term `transmission organization' means a Regional
Transmission Organization, Independent System Operator,
independent transmission provider, or other transmission
organization finally approved by the Commission for the
operation of transmission facilities.
``(7) The term `regional entity' means an entity having
enforcement authority pursuant to subsection (e)(4).
``(b) Jurisdiction and Applicability.--(1) The Commission
shall have jurisdiction, within the United States, over the
ERO certified by the Commission under subsection (c), any
regional entities, and all users, owners and operators of the
bulk-power system, including but not limited to the entities
described in section 201(f), for purposes of approving
reliability standards established under this section and
enforcing compliance with this section. All users, owners and
operators of the bulk-power system shall comply with
reliability standards that take effect under this section.
``(2) The Commission shall issue a final rule to implement
the requirements of this section not later than 180 days
after the date of enactment of this section.
``(c) Certification.--Following the issuance of a
Commission rule under subsection (b)(2), any person may
submit an application to the Commission for certification as
the Electric Reliability Organization. The Commission may
certify 1 such ERO if the Commission determines that such
ERO--
``(1) has the ability to develop and enforce, subject to
subsection (e)(2), reliability standards that provide for an
adequate level of reliability of the bulk-power system; and
``(2) has established rules that--
``(A) assure its independence of the users and owners and
operators of the bulk-power system, while assuring fair
stakeholder representation in the selection of its directors
and balanced decisionmaking in any ERO committee or
subordinate organizational structure;
``(B) allocate equitably reasonable dues, fees, and other
charges among end users for all activities under this
section;
``(C) provide fair and impartial procedures for enforcement
of reliability standards through the imposition of penalties
in accordance with subsection (e) (including limitations on
activities, functions, or operations, or other appropriate
sanctions);
[[Page 29190]]
``(D) provide for reasonable notice and opportunity for
public comment, due process, openness, and balance of
interests in developing reliability standards and otherwise
exercising its duties; and
``(E) provide for taking, after certification, appropriate
steps to gain recognition in Canada and Mexico.
``(d) Reliability Standards.--(1) The Electric Reliability
Organization shall file each reliability standard or
modification to a reliability standard that it proposes to be
made effective under this section with the Commission.
``(2) The Commission may approve, by rule or order, a
proposed reliability standard or modification to a
reliability standard if it determines that the standard is
just, reasonable, not unduly discriminatory or preferential,
and in the public interest. The Commission shall give due
weight to the technical expertise of the Electric Reliability
Organization with respect to the content of a proposed
standard or modification to a reliability standard and to the
technical expertise of a regional entity organized on an
Interconnection-wide basis with respect to a reliability
standard to be applicable within that Interconnection, but
shall not defer with respect to the effect of a standard on
competition. A proposed standard or modification shall take
effect upon approval by the Commission.
``(3) The Electric Reliability Organization shall
rebuttably presume that a proposal from a regional entity
organized on an Interconnection-wide basis for a reliability
standard or modification to a reliability standard to be
applicable on an Interconnection-wide basis is just,
reasonable, and not unduly discriminatory or preferential,
and in the public interest.
``(4) The Commission shall remand to the Electric
Reliability Organization for further consideration a proposed
reliability standard or a modification to a reliability
standard that the Commission disapproves in whole or in part.
``(5) The Commission, upon its own motion or upon
complaint, may order the Electric Reliability Organization to
submit to the Commission a proposed reliability standard or a
modification to a reliability standard that addresses a
specific matter if the Commission considers such a new or
modified reliability standard appropriate to carry out this
section.
``(6) The final rule adopted under subsection (b)(2) shall
include fair processes for the identification and timely
resolution of any conflict between a reliability standard and
any function, rule, order, tariff, rate schedule, or
agreement accepted, approved, or ordered by the Commission
applicable to a transmission organization. Such transmission
organization shall continue to comply with such function,
rule, order, tariff, rate schedule or agreement accepted
approved, or ordered by the Commission until--
``(A) the Commission finds a conflict exists between a
reliability standard and any such provision;
``(B) the Commission orders a change to such provision
pursuant to section 206 of this part; and
``(C) the ordered change becomes effective under this part.
If the Commission determines that a reliability standard
needs to be changed as a result of such a conflict, it shall
order the ERO to develop and file with the Commission a
modified reliability standard under paragraph (4) or (5) of
this subsection.
``(e) Enforcement.--(1) The ERO may impose, subject to
paragraph (2), a penalty on a user or owner or operator of
the bulk-power system for a violation of a reliability
standard approved by the Commission under subsection (d) if
the ERO, after notice and an opportunity for a hearing--
``(A) finds that the user or owner or operator has violated
a reliability standard approved by the Commission under
subsection (d); and
``(B) files notice and the record of the proceeding with
the Commission.
``(2) A penalty imposed under paragraph (1) may take effect
not earlier than the 31st day after the ERO files with the
Commission notice of the penalty and the record of
proceedings. Such penalty shall be subject to review by the
Commission, on its own motion or upon application by the
user, owner or operator that is the subject of the penalty
filed within 30 days after the date such notice is filed with
the Commission. Application to the Commission for review, or
the initiation of review by the Commission on its own motion,
shall not operate as a stay of such penalty unless the
Commission otherwise orders upon its own motion or upon
application by the user, owner or operator that is the
subject of such penalty. In any proceeding to review a
penalty imposed under paragraph (1), the Commission, after
notice and opportunity for hearing (which hearing may consist
solely of the record before the ERO and opportunity for the
presentation of supporting reasons to affirm, modify, or set
aside the penalty), shall by order affirm, set aside,
reinstate, or modify the penalty, and, if appropriate, remand
to the ERO for further proceedings. The Commission shall
implement expedited procedures for such hearings.
``(3) On its own motion or upon complaint, the Commission
may order compliance with a reliability standard and may
impose a penalty against a user or owner or operator of the
bulk-power system if the Commission finds, after notice and
opportunity for a hearing, that the user or owner or operator
of the bulk-power system has engaged or is about to engage in
any acts or practices that constitute or will constitute a
violation of a reliability standard.
``(4) The Commission shall issue regulations authorizing
the ERO to enter into an agreement to delegate authority to a
regional entity for the purpose of proposing reliability
standards to the ERO and enforcing reliability standards
under paragraph (1) if--
``(A) the regional entity is governed by--
``(i) an independent board;
``(ii) a balanced stakeholder board; or
``(iii) a combination independent and balanced stakeholder
board.
``(B) the regional entity otherwise satisfies the
provisions of subsection (c)(1) and (2); and
``(C) the agreement promotes effective and efficient
administration of bulk-power system reliability.
The Commission may modify such delegation. The ERO and the
Commission shall rebuttably presume that a proposal for
delegation to a regional entity organized on an
Interconnection-wide basis promotes effective and efficient
administration of bulk-power system reliability and should be
approved. Such regulation may provide that the Commission may
assign the ERO's authority to enforce reliability standards
under paragraph (1) directly to a regional entity consistent
with the requirements of this paragraph.
``(5) The Commission may take such action as is necessary
or appropriate against the ERO or a regional entity to ensure
compliance with a reliability standard or any Commission
order affecting the ERO or a regional entity.
``(6) Any penalty imposed under this section shall bear a
reasonable relation to the seriousness of the violation and
shall take into consideration the efforts of such user,
owner, or operator to remedy the violation in a timely
manner.
``(f) Changes in Electric Reliability Organization Rules.--
The Electric Reliability Organization shall file with the
Commission for approval any proposed rule or proposed rule
change, accompanied by an explanation of its basis and
purpose. The Commission, upon its own motion or complaint,
may propose a change to the rules of the ERO. A proposed rule
or proposed rule change shall take effect upon a finding by
the Commission, after notice and opportunity for comment,
that the change is just, reasonable, not unduly
discriminatory or preferential, is in the public interest,
and satisfies the requirements of subsection (c).
``(g) Reliability Reports.--The ERO shall conduct periodic
assessments of the reliability and adequacy of the bulk-power
system in North America.
``(h) Coordination With Canada and Mexico.--The President
is urged to negotiate international agreements with the
governments of Canada and Mexico to provide for effective
compliance with reliability standards and the effectiveness
of the ERO in the United States and Canada or Mexico.
``(i) Savings Provisions.--(1) The ERO shall have authority
to develop and enforce compliance with reliability standards
for only the bulk-power system.
``(2) This section does not authorize the ERO or the
Commission to order the construction of additional generation
or transmission capacity or to set and enforce compliance
with standards for adequacy or safety of electric facilities
or services.
``(3) Nothing in this section shall be construed to preempt
any authority of any State to take action to ensure the
safety, adequacy, and reliability of electric service within
that State, as long as such action is not inconsistent with
any reliability standard.
``(4) Within 90 days of the application of the Electric
Reliability Organization or other affected party, and after
notice and opportunity for comment, the Commission shall
issue a final order determining whether a State action is
inconsistent with a reliability standard, taking into
consideration any recommendation of the ERO.
``(5) The Commission, after consultation with the ERO and
the State taking action, may stay the effectiveness of any
State action, pending the Commission's issuance of a final
order.
``(j) Regional Advisory Bodies.--The Commission shall
establish a regional advisory body on the petition of at
least \2/3\ of the States within a region that have more than
\1/2\ of their electric load served within the region. A
regional advisory body shall be composed of 1 member from
each participating State in the region, appointed by the
Governor of each State, and may include representatives of
agencies, States, and provinces outside the United States. A
regional advisory body may provide advice to the Electric
Reliability Organization, a regional entity, or the
Commission regarding the governance of an existing or
proposed regional entity within the same region, whether a
standard proposed to apply within the region is just,
reasonable, not unduly discriminatory or preferential, and in
the public interest, whether fees proposed to be assessed
within the region are just, reasonable, not unduly
discriminatory or preferential, and in the public interest
and any other responsibilities requested by the Commission.
The Commission may give deference to the advice of any such
regional advisory body if that body is organized on an
Interconnection-wide basis.
``(k) Alaska and Hawaii.--The provisions of this section do
not apply to Alaska or Hawaii.''.
(b) Status of ERO.--The Electric Reliability Organization
certified by the Federal Energy Regulatory Commission under
section 215(c) of the Federal Power Act and any regional
entity delegated enforcement authority pursuant to section
215(e)(4) of that Act are not departments, agencies, or
instrumentalities of the United States Government.
[[Page 29191]]
Subtitle B--Transmission Infrastructure Modernization
SEC. 1221. SITING OF INTERSTATE ELECTRIC TRANSMISSION
FACILITIES.
(a) Amendment of Federal Power Act.--Part II of the Federal
Power Act is amended by adding at the end the following:
``SEC. 216. SITING OF INTERSTATE ELECTRIC TRANSMISSION
FACILITIES.
``(a) Designation of National Interest Electric
Transmission Corridors.--
``(1) Transmission congestion study.--Within 1 year after
the enactment of this section, and every 3 years thereafter,
the Secretary of Energy, in consultation with affected
States, shall conduct a study of electric transmission
congestion. After considering alternatives and
recommendations from interested parties, including an
opportunity for comment from affected States, the Secretary
shall issue a report, based on such study, which may
designate any geographic area experiencing electric energy
transmission capacity constraints or congestion that
adversely affects consumers as a national interest electric
transmission corridor. The Secretary shall conduct the study
and issue the report in consultation with any appropriate
regional entity referenced in section 215 of this Act.
``(2) Considerations.--In determining whether to designate
a national interest electric transmission corridor referred
to in paragraph (1) under this section, the Secretary may
consider whether--
``(A) the economic vitality and development of the
corridor, or the end markets served by the corridor, may be
constrained by lack of adequate or reasonably priced
electricity;
``(B)(i) economic growth in the corridor, or the end
markets served by the corridor, may be jeopardized by
reliance on limited sources of energy; and
``(ii) a diversification of supply is warranted;
``(C) the energy independence of the United States would be
served by the designation;
``(D) the designation would be in the interest of national
energy policy; and
``(E) the designation would enhance national defense and
homeland security.
``(b) Construction Permit.--Except as provided in
subsection (i), the Commission is authorized, after notice
and an opportunity for hearing, to issue a permit or permits
for the construction or modification of electric transmission
facilities in a national interest electric transmission
corridor designated by the Secretary under subsection (a) if
the Commission finds that--
``(1)(A) a State in which the transmission facilities are
to be constructed or modified is without authority to--
``(i) approve the siting of the facilities; or
``(ii) consider the interstate benefits expected to be
achieved by the proposed construction or modification of
transmission facilities in the State;
``(B) the applicant for a permit is a transmitting utility
under this Act but does not qualify to apply for a permit or
siting approval for the proposed project in a State because
the applicant does not serve end-use customers in the State;
or
``(C) a State commission or other entity that has authority
to approve the siting of the facilities has--
``(i) withheld approval for more than 1 year after the
filing of an application pursuant to applicable law seeking
approval or 1 year after the designation of the relevant
national interest electric transmission corridor, whichever
is later; or
``(ii) conditioned its approval in such a manner that the
proposed construction or modification will not significantly
reduce transmission congestion in interstate commerce or is
not economically feasible;
``(2) the facilities to be authorized by the permit will be
used for the transmission of electric energy in interstate
commerce;
``(3) the proposed construction or modification is
consistent with the public interest;
``(4) the proposed construction or modification will
significantly reduce transmission congestion in interstate
commerce and protects or benefits consumers; and
``(5) the proposed construction or modification is
consistent with sound national energy policy and will enhance
energy independence.
``(c) Permit Applications.--Permit applications under
subsection (b) shall be made in writing to the Commission.
The Commission shall issue rules setting forth the form of
the application, the information to be contained in the
application, and the manner of service of notice of the
permit application upon interested persons.
``(d) Comments.--In any proceeding before the Commission
under subsection (b), the Commission shall afford each State
in which a transmission facility covered by the permit is or
will be located, each affected Federal agency and Indian
tribe, private property owners, and other interested persons,
a reasonable opportunity to present their views and
recommendations with respect to the need for and impact of a
facility covered by the permit.
``(e) Rights-of-Way.--In the case of a permit under
subsection (b) for electric transmission facilities to be
located on property other than property owned by the United
States or a State, if the permit holder cannot acquire by
contract, or is unable to agree with the owner of the
property to the compensation to be paid for, the necessary
right-of-way to construct or modify such transmission
facilities, the permit holder may acquire the right-of-way by
the exercise of the right of eminent domain in the district
court of the United States for the district in which the
property concerned is located, or in the appropriate court of
the State in which the property is located. The practice and
procedure in any action or proceeding for that purpose in the
district court of the United States shall conform as nearly
as may be with the practice and procedure in similar action
or proceeding in the courts of the State where the property
is situated.
``(f) State Law.--Nothing in this section shall preclude
any person from constructing or modifying any transmission
facility pursuant to State law.
``(g) Compensation.--Any exercise of eminent domain
authority pursuant to this section shall be considered a
taking of private property for which just compensation is
due. Just compensation shall be an amount equal to the full
fair market value of the property taken on the date of the
exercise of eminent domain authority, except that the
compensation shall exceed fair market value if necessary to
make the landowner whole for decreases in the value of any
portion of the land not subject to eminent domain. Any parcel
of land acquired by eminent domain under this subsection
shall be transferred back to the owner from whom it was
acquired (or his heirs or assigns) if the land is not used
for the construction or modification of electric transmission
facilities within a reasonable period of time after the
acquisition. Other than construction, modification,
operation, or maintenance of electric transmission facilities
and related facilities, property acquired under subsection
(e) may not be used for any purpose (including use for any
heritage area, recreational trail, or park) without the
consent of the owner of the parcel from whom the property was
acquired (or the owner's heirs or assigns).
``(h) Coordination of Federal Authorizations for
Transmission and Distribution Facilities.--
``(1) Lead agency.--If an applicant, or prospective
applicant, for a Federal authorization related to an electric
transmission or distribution facility so requests, the
Department of Energy (DOE) shall act as the lead agency for
purposes of coordinating all applicable Federal
authorizations and related environmental reviews of the
facility. For purposes of this subsection, the term `Federal
authorization' means any authorization required under Federal
law in order to site a transmission or distribution facility,
including but not limited to such permits, special use
authorizations, certifications, opinions, or other approvals
as may be required, whether issued by a Federal or a State
agency. To the maximum extent practicable under applicable
Federal law, the Secretary of Energy shall coordinate this
Federal authorization and review process with any Indian
tribes, multi-State entities, and State agencies that are
responsible for conducting any separate permitting and
environmental reviews of the facility, to ensure timely and
efficient review and permit decisions.
``(2) Authority to set deadlines.--As lead agency, the
Department of Energy, in consultation with agencies
responsible for Federal authorizations and, as appropriate,
with Indian tribes, multi-State entities, and State agencies
that are willing to coordinate their own separate permitting
and environmental reviews with the Federal authorization and
environmental reviews, shall establish prompt and binding
intermediate milestones and ultimate deadlines for the review
of, and Federal authorization decisions relating to, the
proposed facility. The Secretary of Energy shall ensure that
once an application has been submitted with such data as the
Secretary considers necessary, all permit decisions and
related environmental reviews under all applicable Federal
laws shall be completed within 1 year or, if a requirement of
another provision of Federal law makes this impossible, as
soon thereafter as is practicable. The Secretary of Energy
also shall provide an expeditious pre-application mechanism
for prospective applicants to confer with the agencies
involved to have each such agency determine and communicate
to the prospective applicant within 60 days of when the
prospective applicant submits a request for such information
concerning--
``(A) the likelihood of approval for a potential facility;
and
``(B) key issues of concern to the agencies and public.
``(3) Consolidated environmental review and record of
decision.--As lead agency head, the Secretary of Energy, in
consultation with the affected agencies, shall prepare a
single environmental review document, which shall be used as
the basis for all decisions on the proposed project under
Federal law. The document may be an environmental assessment
or environmental impact statement under the National
Environmental Policy Act of 1969 if warranted, or such other
form of analysis as may be warranted. The Secretary of Energy
and the heads of other agencies shall streamline the review
and permitting of transmission and distribution facilities
within corridors designated under section 503 of the Federal
Land Policy and Management Act (43 U.S.C. 1763) by fully
taking into account prior analyses and decisions relating to
the corridors. Such document shall include consideration by
the relevant agencies of any applicable criteria or other
matters as required under applicable laws.
``(4) Appeals.--In the event that any agency has denied a
Federal authorization required for a transmission or
distribution facility, or has failed to act by the deadline
established by the Secretary pursuant to this section for
deciding whether to issue the authorization, the applicant or
any State in which the facility would be located may file an
appeal with the Secretary,
[[Page 29192]]
who shall, in consultation with the affected agency, review
the denial or take action on the pending application. Based
on the overall record and in consultation with the affected
agency, the Secretary may then either issue the necessary
authorization with any appropriate conditions, or deny the
application. The Secretary shall issue a decision within 90
days of the filing of the appeal. In making a decision under
this paragraph, the Secretary shall comply with applicable
requirements of Federal law, including any requirements of
the Endangered Species Act, the Clean Water Act, the National
Forest Management Act, the National Environmental Policy Act
of 1969, and the Federal Land Policy and Management Act.
``(5) Conforming regulations and memoranda of
understanding.--Not later than 18 months after the date of
enactment of this section, the Secretary of Energy shall
issue any regulations necessary to implement this subsection.
Not later than 1 year after the date of enactment of this
section, the Secretary and the heads of all Federal agencies
with authority to issue Federal authorizations shall enter
into Memoranda of Understanding to ensure the timely and
coordinated review and permitting of electricity transmission
and distribution facilities. The head of each Federal agency
with authority to issue a Federal authorization shall
designate a senior official responsible for, and dedicate
sufficient other staff and resources to ensure, full
implementation of the DOE regulations and any Memoranda.
Interested Indian tribes, multi-State entities, and State
agencies may enter such Memoranda of Understanding.
``(6) Duration and Renewal.--Each Federal land use
authorization for an electricity transmission or distribution
facility shall be issued--
``(A) for a duration, as determined by the Secretary of
Energy, commensurate with the anticipated use of the
facility, and
``(B) with appropriate authority to manage the right-of-way
for reliability and environmental protection.
Upon the expiration of any such authorization (including an
authorization issued prior to enactment of this section), the
authorization shall be reviewed for renewal taking fully into
account reliance on such electricity infrastructure,
recognizing its importance for public health, safety and
economic welfare and as a legitimate use of Federal lands.
``(7) Maintaining and enhancing the transmission
infrastructure.--In exercising the responsibilities under
this section, the Secretary of Energy shall consult regularly
with the Federal Energy Regulatory Commission (FERC), FERC-
approved electric reliability organizations (including
related regional entities), and FERC-approved Regional
Transmission Organizations and Independent System Operators.
``(i) Interstate Compacts.--The consent of Congress is
hereby given for 3 or more contiguous States to enter into an
interstate compact, subject to approval by Congress,
establishing regional transmission siting agencies to
facilitate siting of future electric energy transmission
facilities within such States and to carry out the electric
energy transmission siting responsibilities of such States.
The Secretary of Energy may provide technical assistance to
regional transmission siting agencies established under this
subsection. Such regional transmission siting agencies shall
have the authority to review, certify, and permit siting of
transmission facilities, including facilities in national
interest electric transmission corridors (other than
facilities on property owned by the United States). The
Commission shall have no authority to issue a permit for the
construction or modification of electric transmission
facilities within a State that is a party to a compact,
unless the members of a compact are in disagreement and the
Secretary makes, after notice and an opportunity for a
hearing, the finding described in section (b)(1)(C).
``(j) Savings Clause.--Nothing in this section shall be
construed to affect any requirement of the environmental laws
of the United States, including, but not limited to, the
National Environmental Policy Act of 1969. Subsection (h)(4)
of this section shall not apply to any Congressionally-
designated components of the National Wilderness Preservation
System, the National Wild and Scenic Rivers System, or the
National Park system (including National Monuments therein).
``(k) ERCOT.--This section shall not apply within the area
referred to in section 212(k)(2)(A).''.
(b) Reports to Congress on Corridors and Rights of Way on
Federal Lands.--The Secretary of the Interior, the Secretary
of Energy, the Secretary of Agriculture, and the Chairman of
the Council on Environmental Quality shall, within 90 days of
the date of enactment of this subsection, submit a joint
report to Congress identifying each of the following:
(1) All existing designated transmission and distribution
corridors on Federal land and the status of work related to
proposed transmission and distribution corridor designations
under Title V of the Federal Land Policy and Management Act
(43 U.S.C. 1761 et. Seq.), the schedule for completing such
work, any impediments to completing the work, and steps that
Congress could take to expedite the process.
(2) The number of pending applications to locate
transmission and distribution facilities on Federal lands,
key information relating to each such facility, how long each
application has been pending, the schedule for issuing a
timely decision as to each facility, and progress in
incorporating existing and new such rights-of-way into
relevant land use and resource management plans or their
equivalent.
(3) The number of existing transmission and distribution
rights-of-way on Federal lands that will come up for renewal
within the following 5, 10, and 15 year periods, and a
description of how the Secretaries plan to manage such
renewals.
SEC. 1222. THIRD-PARTY FINANCE.
(a) Existing Facilities.--The Secretary of Energy
(hereinafter in this section referred to as the
``Secretary''), acting through the Administrator of the
Western Area Power Administration (hereinafter in this
section referred to as ``WAPA''), or through the
Administrator of the Southwestern Power Administration
(hereinafter in this section referred to as ``SWPA''), or
both, may design, develop, construct, operate, maintain, or
own, or participate with other entities in designing,
developing, constructing, operating, maintaining, or owning,
an electric power transmission facility and related
facilities (``Project'') needed to upgrade existing
transmission facilities owned by SWPA or WAPA if the
Secretary of Energy, in consultation with the applicable
Administrator, determines that the proposed Project--
(1)(A) is located in a national interest electric
transmission corridor designated under section 216(a) of the
Federal Power Act and will reduce congestion of electric
transmission in interstate commerce; or
(B) is necessary to accommodate an actual or projected
increase in demand for electric transmission capacity;
(2) is consistent with--
(A) transmission needs identified, in a transmission
expansion plan or otherwise, by the appropriate Regional
Transmission Organization or Independent System Operator (as
defined in the Federal Power Act), if any, or approved
regional reliability organization; and
(B) efficient and reliable operation of the transmission
grid; and
(3) would be operated in conformance with prudent utility
practice.
(b) New Facilities.--The Secretary, acting through WAPA or
SWPA, or both, may design, develop, construct, operate,
maintain, or own, or participate with other entities in
designing, developing, constructing, operating, maintaining,
or owning, a new electric power transmission facility and
related facilities (``Project'') located within any State in
which WAPA or SWPA operates if the Secretary, in consultation
with the applicable Administrator, determines that the
proposed Project--
(1)(A) is located in an area designated under section
216(a) of the Federal Power Act and will reduce congestion of
electric transmission in interstate commerce; or
(B) is necessary to accommodate an actual or projected
increase in demand for electric transmission capacity;
(2) is consistent with--
(A) transmission needs identified, in a transmission
expansion plan or otherwise, by the appropriate Regional
Transmission Organization or Independent System Operator, if
any, or approved regional reliability organization; and
(B) efficient and reliable operation of the transmission
grid;
(3) will be operated in conformance with prudent utility
practice;
(4) will be operated by, or in conformance with the rules
of, the appropriate (A) Regional Transmission Organization or
Independent System Operator, if any, or (B) if such an
organization does not exist, regional reliability
organization; and
(5) will not duplicate the functions of existing
transmission facilities or proposed facilities which are the
subject of ongoing or approved siting and related permitting
proceedings.
(c) Other Funds.--
(1) In general.--In carrying out a Project under subsection
(a) or (b), the Secretary may accept and use funds
contributed by another entity for the purpose of carrying out
the Project.
(2) Availability.--The contributed funds shall be available
for expenditure for the purpose of carrying out the Project--
(A) without fiscal year limitation; and
(B) as if the funds had been appropriated specifically for
that Project.
(3) Allocation of costs.--In carrying out a Project under
subsection (a) or (b), any costs of the Project not paid for
by contributions from another entity shall be collected
through rates charged to customers using the new transmission
capability provided by the Project and allocated equitably
among these project beneficiaries using the new transmission
capability.
(d) Relationship to Other Laws.--Nothing in this section
affects any requirement of--
(1) any Federal environmental law, including the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);
(2) any Federal or State law relating to the siting of
energy facilities; or
(3) any existing authorizing statutes.
(e) Savings Clause.--Nothing in this section shall
constrain or restrict an Administrator in the utilization of
other authority delegated to the Administrator of WAPA or
SWPA.
(f) Secretarial Determinations.--Any determination made
pursuant to subsections (a) or (b) shall be based on findings
by the Secretary using the best available data.
(g) Maximum Funding Amount.--The Secretary shall not accept
and use more than $100,000,000 under subsection (c)(1) for
the period encompassing fiscal years 2004 through 2013.
SEC. 1223. TRANSMISSION SYSTEM MONITORING.
Within 6 months after the date of enactment of this Act,
the Secretary of Energy and the Federal Energy Regulatory
Commission shall
[[Page 29193]]
study and report to Congress on the steps which must be taken
to establish a system to make available to all transmission
system owners and Regional Transmission Organizations (as
defined in the Federal Power Act) within the Eastern and
Western Interconnections real-time information on the
functional status of all transmission lines within such
Interconnections. In such study, the Commission shall assess
technical means for implementing such transmission
information system and identify the steps the Commission or
Congress must take to require the implementation of such
system.
SEC. 1224. ADVANCED TRANSMISSION TECHNOLOGIES.
(a) Authority.--The Federal Energy Regulatory Commission,
in the exercise of its authorities under the Federal Power
Act and the Public Utility Regulatory Policies Act of 1978,
shall encourage the deployment of advanced transmission
technologies.
(b) Definition.--For the purposes of this section, the term
``advanced transmission technologies'' means technologies
that increase the capacity, efficiency, or reliability of
existing or new transmission facilities, including, but not
limited to--
(1) high-temperature lines (including superconducting
cables);
(2) underground cables;
(3) advanced conductor technology (including advanced
composite conductors, high-temperature low-sag conductors,
and fiber optic temperature sensing conductors);
(4) high-capacity ceramic electric wire, connectors, and
insulators;
(5) optimized transmission line configurations (including
multiple phased transmission lines);
(6) modular equipment;
(7) wireless power transmission;
(8) ultra-high voltage lines;
(9) high-voltage DC technology;
(10) flexible AC transmission systems;
(11) energy storage devices (including pumped hydro,
compressed air, superconducting magnetic energy storage,
flywheels, and batteries);
(12) controllable load;
(13) distributed generation (including PV, fuel cells,
microturbines);
(14) enhanced power device monitoring;
(15) direct system state sensors;
(16) fiber optic technologies;
(17) power electronics and related software (including real
time monitoring and analytical software); and
(18) any other technologies the Commission considers
appropriate.
(c) Obsolete or Impracticable Technologies.--The Commission
is authorized to cease encouraging the deployment of any
technology described in this section on a finding that such
technology has been rendered obsolete or otherwise
impracticable to deploy.
SEC. 1225. ELECTRIC TRANSMISSION AND DISTRIBUTION PROGRAMS.
(a) Electric Transmission and Distribution Program.--The
Secretary of Energy (hereinafter in this section referred to
as the ``Secretary'') acting through the Director of the
Office of Electric Transmission and Distribution shall
establish a comprehensive research, development,
demonstration and commercial application program to promote
improved reliability and efficiency of electrical
transmission and distribution systems. This program shall
include--
(1) advanced energy delivery and storage technologies,
materials, and systems, including new transmission
technologies, such as flexible alternating current
transmission systems, composite conductor materials and other
technologies that enhance reliability, operational
flexibility, or power-carrying capability;
(2) advanced grid reliability and efficiency technology
development;
(3) technologies contributing to significant load
reductions;
(4) advanced metering, load management, and control
technologies;
(5) technologies to enhance existing grid components;
(6) the development and use of high-temperature
superconductors to--
(A) enhance the reliability, operational flexibility, or
power-carrying capability of electric transmission or
distribution systems; or
(B) increase the efficiency of electric energy generation,
transmission, distribution, or storage systems;
(7) integration of power systems, including systems to
deliver high-quality electric power, electric power
reliability, and combined heat and power;
(8) supply of electricity to the power grid by small scale,
distributed and residential-based power generators;
(9) the development and use of advanced grid design,
operation and planning tools;
(10) any other infrastructure technologies, as appropriate;
and
(11) technology transfer and education.
(b) Program Plan.--Not later than 1 year after the date of
the enactment of this legislation, the Secretary, in
consultation with other appropriate Federal agencies, shall
prepare and transmit to Congress a 5-year program plan to
guide activities under this section. In preparing the program
plan, the Secretary may consult with utilities, energy
services providers, manufacturers, institutions of higher
education, other appropriate State and local agencies,
environmental organizations, professional and technical
societies, and any other persons the Secretary considers
appropriate.
(c) Implementation.--The Secretary shall consider
implementing this program using a consortium of industry,
university and national laboratory participants.
(d) Report.--Not later than 2 years after the transmittal
of the plan under subsection (b), the Secretary shall
transmit a report to Congress describing the progress made
under this section and identifying any additional resources
needed to continue the development and commercial application
of transmission and distribution infrastructure technologies.
(e) Power Delivery Research Initiative.--
(1) In general.--The Secretary shall establish a research,
development, demonstration, and commercial application
initiative specifically focused on power delivery utilizing
components incorporating high temperature superconductivity.
(2) Goals.--The goals of this initiative shall be to--
(A) establish facilities to develop high temperature
superconductivity power applications in partnership with
manufacturers and utilities;
(B) provide technical leadership for establishing
reliability for high temperature superconductivity power
applications including suitable modeling and analysis;
(C) facilitate commercial transition toward direct current
power transmission, storage, and use for high power systems
utilizing high temperature superconductivity; and
(D) facilitate the integration of very low impedance high
temperature superconducting wires and cables in existing
electric networks to improve system performance, power flow
control and reliability.
(3) Requirements.--The initiative shall include--
(A) feasibility analysis, planning, research, and design to
construct demonstrations of superconducting links in high
power, direct current and controllable alternating current
transmission systems;
(B) public-private partnerships to demonstrate deployment
of high temperature superconducting cable into testbeds
simulating a realistic transmission grid and under varying
transmission conditions, including actual grid insertions;
and
(C) testbeds developed in cooperation with national
laboratories, industries, and universities to demonstrate
these technologies, prepare the technologies for commercial
introduction, and address cost or performance roadblocks to
successful commercial use.
(4) Authorization of appropriations.--For purposes of
carrying out this subsection, there are authorized to be
appropriated--
(A) for fiscal year 2004, $15,000,000;
(B) for fiscal year 2005, $20,000,000;
(C) for fiscal year 2006, $30,000,000;
(D) for fiscal year 2007, $35,000,000; and
(E) for fiscal year 2008, $40,000,000.
SEC. 1226. ADVANCED POWER SYSTEM TECHNOLOGY INCENTIVE
PROGRAM.
(a) Program.--The Secretary of Energy is authorized to
establish an Advanced Power System Technology Incentive
Program to support the deployment of certain advanced power
system technologies and to improve and protect certain
critical governmental, industrial, and commercial processes.
Funds provided under this section shall be used by the
Secretary to make incentive payments to eligible owners or
operators of advanced power system technologies to increase
power generation through enhanced operational, economic, and
environmental performance. Payments under this section may
only be made upon receipt by the Secretary of an incentive
payment application establishing an applicant as either--
(1) a qualifying advanced power system technology facility;
or
(2) a qualifying security and assured power facility.
(b) Incentives.--Subject to availability of funds, a
payment of 1.8 cents per kilowatt-hour shall be paid to the
owner or operator of a qualifying advanced power system
technology facility under this section for electricity
generated at such facility. An additional 0.7 cents per
kilowatt-hour shall be paid to the owner or operator of a
qualifying security and assured power facility for
electricity generated at such facility. Any facility
qualifying under this section shall be eligible for an
incentive payment for up to, but not more than, the first
10,000,000 kilowatt-hours produced in any fiscal year.
(c) Eligibility.--For purposes of this section:
(1) Qualifying advanced power system technology facility.--
The term ``qualifying advanced power system technology
facility'' means a facility using an advanced fuel cell,
turbine, or hybrid power system or power storage system to
generate or store electric energy.
(2) Qualifying security and assured power facility.--The
term ``qualifying security and assured power facility'' means
a qualifying advanced power system technology facility
determined by the Secretary of Energy, in consultation with
the Secretary of Homeland Security, to be in critical need of
secure, reliable, rapidly available, high-quality power for
critical governmental, industrial, or commercial
applications.
(d) Authorization.--There are authorized to be appropriated
to the Secretary of Energy for the purposes of this section,
$10,000,000 for each of the fiscal years 2004 through 2010.
SEC. 1227. OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION.
(a) Creation of an Office of Electric Transmission and
Distribution.--Title II of the Department of Energy
Organization Act (42 U.S.C. 7131 et seq.) (as amended by
section 502(a) of this Act) is amended by inserting the
following after section 217, as added by title V of this Act:
[[Page 29194]]
``SEC. 218. OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION.
``(a) Establishment.--There is established within the
Department an Office of Electric Transmission and
Distribution. This Office shall be headed by a Director,
subject to the authority of the Secretary. The Director shall
be appointed by the Secretary. The Director shall be
compensated at the annual rate prescribed for level IV of the
Executive Schedule under section 5315 of title 5, United
States Code.
``(b) Director.--The Director shall--
``(1) coordinate and develop a comprehensive, multi-year
strategy to improve the Nation's electricity transmission and
distribution;
``(2) implement or, where appropriate, coordinate the
implementation of, the recommendations made in the
Secretary's May 2002 National Transmission Grid Study;
``(3) oversee research, development, and demonstration to
support Federal energy policy related to electricity
transmission and distribution;
``(4) grant authorizations for electricity import and
export pursuant to section 202(c), (d), (e), and (f) of the
Federal Power Act (16 U.S.C. 824a);
``(5) perform other functions, assigned by the Secretary,
related to electricity transmission and distribution; and
``(6) develop programs for workforce training in power and
transmission engineering.''.
(b) Conforming Amendments.--(1) The table of contents of
the Department of Energy Organization Act (42 U.S.C. 7101
note) is amended by inserting after the item relating to
section 217 the following new item:
``Sec. 218. Office of Electric Transmission and Distribution.''.
(2) Section 5315 of title 5, United States Code, is amended
by inserting after the item relating to ``Inspector General,
Department of Energy.'' the following:
``Director, Office of Electric Transmission and
Distribution, Department of Energy.''.
Subtitle C--Transmission Operation Improvements
SEC. 1231. OPEN NONDISCRIMINATORY ACCESS.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by inserting after section 211 the following new
section:
``SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMITTING
UTILITIES.
``(a) Transmission Services.--Subject to section 212(h),
the Commission may, by rule or order, require an unregulated
transmitting utility to provide transmission services--
``(1) at rates that are comparable to those that the
unregulated transmitting utility charges itself; and
``(2) on terms and conditions (not relating to rates) that
are comparable to those under which such unregulated
transmitting utility provides transmission services to itself
and that are not unduly discriminatory or preferential.
``(b) Exemption.--The Commission shall exempt from any rule
or order under this section any unregulated transmitting
utility that--
``(1) sells no more than 4,000,000 megawatt hours of
electricity per year; or
``(2) does not own or operate any transmission facilities
that are necessary for operating an interconnected
transmission system (or any portion thereof); or
``(3) meets other criteria the Commission determines to be
in the public interest.
``(c) Local Distribution Facilities.--The requirements of
subsection (a) shall not apply to facilities used in local
distribution.
``(d) Exemption Termination.--Whenever the Commission,
after an evidentiary hearing held upon a complaint and after
giving consideration to reliability standards established
under section 215, finds on the basis of a preponderance of
the evidence that any exemption granted pursuant to
subsection (b) unreasonably impairs the continued reliability
of an interconnected transmission system, it shall revoke the
exemption granted to that transmitting utility.
``(e) Application to Unregulated Transmitting Utilities.--
The rate changing procedures applicable to public utilities
under subsections (c) and (d) of section 205 are applicable
to unregulated transmitting utilities for purposes of this
section.
``(f) Remand.--In exercising its authority under paragraph
(1) of subsection (a), the Commission may remand transmission
rates to an unregulated transmitting utility for review and
revision where necessary to meet the requirements of
subsection (a).
``(g) Other Requests.--The provision of transmission
services under subsection (a) does not preclude a request for
transmission services under section 211.
``(h) Limitation.--The Commission may not require a State
or municipality to take action under this section that would
violate a private activity bond rule for purposes of section
141 of the Internal Revenue Code of 1986 (26 U.S.C. 141).
``(i) Transfer of Control of Transmitting Facilities.--
Nothing in this section authorizes the Commission to require
an unregulated transmitting utility to transfer control or
operational control of its transmitting facilities to an RTO
or any other Commission-approved independent transmission
organization designated to provide nondiscriminatory
transmission access.
``(j) Definition.--For purposes of this section, the term
`unregulated transmitting utility' means an entity that--
``(1) owns or operates facilities used for the transmission
of electric energy in interstate commerce; and
``(2) is an entity described in section 201(f).''.
SEC. 1232. SENSE OF CONGRESS ON REGIONAL TRANSMISSION
ORGANIZATIONS.
It is the sense of Congress that, in order to promote fair,
open access to electric transmission service, benefit retail
consumers, facilitate wholesale competition, improve
efficiencies in transmission grid management, promote grid
reliability, remove opportunities for unduly discriminatory
or preferential transmission practices, and provide for the
efficient development of transmission infrastructure needed
to meet the growing demands of competitive wholesale power
markets, all transmitting utilities in interstate commerce
should voluntarily become members of Regional Transmission
Organizations as defined in section 3 of the Federal Power
Act.
SEC. 1233. REGIONAL TRANSMISSION ORGANIZATION APPLICATIONS
PROGRESS REPORT.
Not later than 120 days after the date of enactment of this
section, the Federal Energy Regulatory Commission shall
submit to Congress a report containing each of the following:
(1) A list of all regional transmission organization
applications filed at the Commission pursuant to subpart F of
part 35 of title 18, Code of Federal Regulations (in this
section referred to as ``Order No. 2000''), including an
identification of each public utility and other entity
included within the proposed membership of the regional
transmission organization.
(2) A brief description of the status of each pending
regional transmission organization application, including a
precise explanation of how each fails to comply with the
minimal requirements of Order No. 2000 and what steps need to
be taken to bring each application into such compliance.
(3) For any application that has not been finally approved
by the Commission, a detailed description of every aspect of
the application that the Commission has determined does not
conform to the requirements of Order No. 2000.
(4) For any application that has not been finally approved
by the Commission, an explanation by the Commission of why
the items described pursuant to paragraph (3) constitute
material noncompliance with the requirements of the
Commission's Order No. 2000 sufficient to justify denial of
approval by the Commission.
(5) For all regional transmission organization applications
filed pursuant to the Commission's Order No. 2000, whether
finally approved or not--
(A) a discussion of that regional transmission
organization's efforts to minimize rate seams between itself
and--
(i) other regional transmission organizations; and
(ii) entities not participating in a regional transmission
organization;
(B) a discussion of the impact of such seams on consumers
and wholesale competition; and
(C) a discussion of minimizing cost-shifting on consumers.
SEC. 1234. FEDERAL UTILITY PARTICIPATION IN REGIONAL
TRANSMISSION ORGANIZATIONS.
(a) Definitions.--For purposes of this section--
(1) Appropriate federal regulatory authority.--The term
``appropriate Federal regulatory authority'' means--
(A) with respect to a Federal power marketing agency (as
defined in the Federal Power Act), the Secretary of Energy,
except that the Secretary may designate the Administrator of
a Federal power marketing agency to act as the appropriate
Federal regulatory authority with respect to the transmission
system of that Federal power marketing agency; and
(B) with respect to the Tennessee Valley Authority, the
Board of Directors of the Tennessee Valley Authority.
(2) Federal utility.--The term ``Federal utility'' means a
Federal power marketing agency or the Tennessee Valley
Authority.
(3) Transmission system.--The term ``transmission system''
means electric transmission facilities owned, leased, or
contracted for by the United States and operated by a Federal
utility.
(b) Transfer.--The appropriate Federal regulatory authority
is authorized to enter into a contract, agreement or other
arrangement transferring control and use of all or part of
the Federal utility's transmission system to an RTO or ISO
(as defined in the Federal Power Act), approved by the
Federal Energy Regulatory Commission. Such contract,
agreement or arrangement shall include--
(1) performance standards for operation and use of the
transmission system that the head of the Federal utility
determines necessary or appropriate, including standards that
assure recovery of all the Federal utility's costs and
expenses related to the transmission facilities that are the
subject of the contract, agreement or other arrangement;
consistency with existing contracts and third-party financing
arrangements; and consistency with said Federal utility's
statutory authorities, obligations, and limitations;
(2) provisions for monitoring and oversight by the Federal
utility of the RTO's or ISO's fulfillment of the terms and
conditions of the contract, agreement or other arrangement,
including a provision for the resolution of disputes through
arbitration or other means with the regional transmission
organization or with other participants, notwithstanding the
obligations and limitations of any other law regarding
arbitration; and
(3) a provision that allows the Federal utility to withdraw
from the RTO or ISO and terminate the contract, agreement or
other arrangement in accordance with its terms.
[[Page 29195]]
Neither this section, actions taken pursuant to it, nor any
other transaction of a Federal utility using an RTO or ISO
shall confer upon the Federal Energy Regulatory Commission
jurisdiction or authority over the Federal utility's electric
generation assets, electric capacity or energy that the
Federal utility is authorized by law to market, or the
Federal utility's power sales activities.
(c) Existing Statutory and Other Obligations.--
(1) System operation requirements.--No statutory provision
requiring or authorizing a Federal utility to transmit
electric power or to construct, operate or maintain its
transmission system shall be construed to prohibit a transfer
of control and use of its transmission system pursuant to,
and subject to all requirements of subsection (b).
(2) Other obligations.--This subsection shall not be
construed to--
(A) suspend, or exempt any Federal utility from, any
provision of existing Federal law, including but not limited
to any requirement or direction relating to the use of the
Federal utility's transmission system, environmental
protection, fish and wildlife protection, flood control,
navigation, water delivery, or recreation; or
(B) authorize abrogation of any contract or treaty
obligation.
(3) Repeal.--Section 311 of title III of Appendix B of the
Act of October 27, 2000 (P.L. 106-377, section 1(a)(2); 114
Stat. 1441, 1441A-80; 16 U.S.C. 824n) is repealed.
SEC. 1235. STANDARD MARKET DESIGN.
(a) Remand.--The Commission's proposed rulemaking entitled
``Remedying Undue Discrimination through Open Access
Transmission Service and Standard Electricity Market Design''
(Docket No. RM01-12-000) (``SMD NOPR'') is remanded to the
Commission for reconsideration. No final rule mandating a
standard electricity market design pursuant to the proposed
rulemaking, including any rule or order of general
applicability within the scope of the proposed rulemaking,
may be issued before October 31, 2006, or take effect before
December 31, 2006. Any final rule issued by the Commission
pursuant to the proposed rulemaking shall be preceded by a
second notice of proposed rulemaking issued after the date of
enactment of this Act and an opportunity for public comment.
(b) Savings Clause.--This section shall not be construed to
modify or diminish any authority or obligation the Commission
has under this Act, the Federal Power Act, or other
applicable law, including, but not limited to, any authority
to--
(1) issue any rule or order (of general or particular
applicability) pursuant to any such authority or obligation;
or
(2) act on a filing or filings by 1 or more transmitting
utilities for the voluntary formation of a Regional
Transmission Organization or Independent System Operator (as
defined in the Federal Power Act) (and related market
structures or rules) or voluntary modification of an existing
Regional Transmission Organization or Independent System
Operator (and related market structures or rules).
SEC. 1236. NATIVE LOAD SERVICE OBLIGATION.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:
``SEC. 217. NATIVE LOAD SERVICE OBLIGATION.
``(a) Meeting Service Obligations.--(1) Any load-serving
entity that, as of the date of enactment of this section--
``(A) owns generation facilities, markets the output of
Federal generation facilities, or holds rights under 1 or
more wholesale contracts to purchase electric energy, for the
purpose of meeting a service obligation, and
``(B) by reason of ownership of transmission facilities, or
1 or more contracts or service agreements for firm
transmission service, holds firm transmission rights for
delivery of the output of such generation facilities or such
purchased energy to meet such service obligation,
is entitled to use such firm transmission rights, or,
equivalent tradable or financial transmission rights, in
order to deliver such output or purchased energy, or the
output of other generating facilities or purchased energy to
the extent deliverable using such rights, to the extent
required to meet its service obligation.
``(2) To the extent that all or a portion of the service
obligation covered by such firm transmission rights or
equivalent tradable or financial transmission rights is
transferred to another load-serving entity, the successor
load-serving entity shall be entitled to use the firm
transmission rights or equivalent tradable or financial
transmission rights associated with the transferred service
obligation. Subsequent transfers to another load-serving
entity, or back to the original load-serving entity, shall be
entitled to the same rights.
``(3) The Commission shall exercise its authority under
this Act in a manner that facilitates the planning and
expansion of transmission facilities to meet the reasonable
needs of load-serving entities to satisfy their service
obligations.
``(b) Allocation of Transmission Rights.--Nothing in this
section shall affect any methodology approved by the
Commission prior to September 15, 2003, for the allocation of
transmission rights by an RTO or ISO that has been authorized
by the Commission to allocate transmission rights.
``(c) Certain Transmission Rights.--The Commission may
exercise authority under this Act to make transmission rights
not used to meet an obligation covered by subsection (a)
available to other entities in a manner determined by the
Commission to be just, reasonable, and not unduly
discriminatory or preferential.
``(d) Obligation To Build.--Nothing in this Act shall
relieve a load-serving entity from any obligation under State
or local law to build transmission or distribution facilities
adequate to meet its service obligations.
``(e) Contracts.--Nothing in this section shall provide a
basis for abrogating any contract or service agreement for
firm transmission service or rights in effect as of the date
of the enactment of this subsection.
``(f) Water Pumping Facilities.--The Commission shall
ensure that any entity described in section 201(f) that owns
transmission facilities used predominately to support its own
water pumping facilities shall have, with respect to such
facilities, protections for transmission service comparable
to those provided to load-serving entities pursuant to this
section.
``(g) ERCOT.--This section shall not apply within the area
referred to in section 212(k)(2)(A).
``(h) Jurisdiction.--This section does not authorize the
Commission to take any action not otherwise within its
jurisdiction.
``(i) Effect of Exercising Rights.--An entity that lawfully
exercises rights granted under subsection (a) shall not be
considered by such action as engaging in undue discrimination
or preference under this Act.
``(j) TVA Area.--For purposes of subsection (a)(1)(B), a
load-serving entity that is located within the service area
of the Tennessee Valley Authority and that has a firm
wholesale power supply contract with the Tennessee Valley
Authority shall be deemed to hold firm transmission rights
for the transmission of such power.
``(k) Definitions.--For purposes of this section:
``(1) The term `distribution utility' means an electric
utility that has a service obligation to end-users or to a
State utility or electric cooperative that, directly or
indirectly, through 1 or more additional State utilities or
electric cooperatives, provides electric service to end-
users.
``(2) The term `load-serving entity' means a distribution
utility or an electric utility that has a service obligation.
``(3) The term `service obligation' means a requirement
applicable to, or the exercise of authority granted to, an
electric utility under Federal, State or local law or under
long-term contracts to provide electric service to end-users
or to a distribution utility.
``(4) The term `State utility' means a State or any
political subdivision of a State, or any agency, authority,
or instrumentality of any 1 or more of the foregoing, or a
corporation which is wholly owned, directly or indirectly, by
any 1 or more of the foregoing, competent to carry on the
business of developing, transmitting, utilizing or
distributing power.''.
SEC. 1237. STUDY ON THE BENEFITS OF ECONOMIC DISPATCH.
(a) Study.--The Secretary of Energy, in coordination and
consultation with the States, shall conduct a study on--
(1) the procedures currently used by electric utilities to
perform economic dispatch;
(2) identifying possible revisions to those procedures to
improve the ability of nonutility generation resources to
offer their output for sale for the purpose of inclusion in
economic dispatch; and
(3) the potential benefits to residential, commercial, and
industrial electricity consumers nationally and in each state
if economic dispatch procedures were revised to improve the
ability of nonutility generation resources to offer their
output for inclusion in economic dispatch.
(b) Definition.--The term ``economic dispatch'' when used
in this section means the operation of generation facilities
to produce energy at the lowest cost to reliably serve
consumers, recognizing any operational limits of generation
and transmission facilities.
(c) Report to Congress and the States.--Not later than 90
days after the date of enactment of this Act, and on a yearly
basis following, the Secretary of Energy shall submit a
report to Congress and the States on the results of the study
conducted under subsection (a), including recommendations to
Congress and the States for any suggested legislative or
regulatory changes.
Subtitle D--Transmission Rate Reform
SEC. 1241. TRANSMISSION INFRASTRUCTURE INVESTMENT.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:
``SEC. 218. TRANSMISSION INFRASTRUCTURE INVESTMENT.
``(a) Rulemaking Requirement.--Within 1 year after the
enactment of this section, the Commission shall establish, by
rule, incentive-based (including, but not limited to
performance-based) rate treatments for the transmission of
electric energy in interstate commerce by public utilities
for the purpose of benefiting consumers by ensuring
reliability and reducing the cost of delivered power by
reducing transmission congestion. Such rule shall--
``(1) promote reliable and economically efficient
transmission and generation of electricity by promoting
capital investment in the enlargement, improvement,
maintenance and operation of facilities for the transmission
of electric energy in interstate commerce;
``(2) provide a return on equity that attracts new
investment in transmission facilities (including related
transmission technologies);
``(3) encourage deployment of transmission technologies and
other measures to increase the
[[Page 29196]]
capacity and efficiency of existing transmission facilities
and improve the operation of such facilities; and
``(4) allow recovery of all prudently incurred costs
necessary to comply with mandatory reliability standards
issued pursuant to section 215 of this Act.
The Commission may, from time to time, revise such rule.
``(b) Additional Incentives for RTO Participation.--In the
rule issued under this section, the Commission shall, to the
extent within its jurisdiction, provide for incentives to
each transmitting utility or electric utility that joins a
Regional Transmission Organization or Independent System
Operator. Incentives provided by the Commission pursuant to
such rule shall include--
``(1) recovery of all prudently incurred costs to develop
and participate in any proposed or approved RTO, ISO, or
independent transmission company;
``(2) recovery of all costs previously approved by a State
commission which exercised jurisdiction over the transmission
facilities prior to the utility's participation in the RTO or
ISO, including costs necessary to honor preexisting
transmission service contracts, in a manner which does not
reduce the revenues the utility receives for transmission
services for a reasonable transition period after the utility
joins the RTO or ISO;
``(3) recovery as an expense in rates of the costs
prudently incurred to conduct transmission planning and
reliability activities, including the costs of participating
in RTO, ISO and other regional planning activities and
design, study and other precertification costs involved in
seeking permits and approvals for proposed transmission
facilities;
``(4) a current return in rates for construction work in
progress for transmission facilities and full recovery of
prudently incurred costs for constructing transmission
facilities;
``(5) formula transmission rates; and
``(6) a maximum 15 year accelerated depreciation on new
transmission facilities for rate treatment purposes.
The Commission shall ensure that any costs recoverable
pursuant to this subsection may be recovered by such utility
through the transmission rates charged by such utility or
through the transmission rates charged by the RTO or ISO that
provides transmission service to such utility.
``(c) Just and Reasonable Rates.--All rates approved under
the rules adopted pursuant to this section, including any
revisions to such rules, are subject to the requirement of
sections 205 and 206 that all rates, charges, terms, and
conditions be just and reasonable and not unduly
discriminatory or preferential.''.
SEC. 1242. VOLUNTARY TRANSMISSION PRICING PLANS.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:
``SEC. 219. VOLUNTARY TRANSMISSION PRICING PLANS.
``(a) In General.--Any transmission provider, including an
RTO or ISO, may submit to the Commission a plan or plans
under section 205 containing the criteria for determining the
person or persons that will be required to pay for any
construction of new transmission facilities or expansion,
modification or upgrade of transmission facilities (in this
section referred to as `transmission service related
expansion') or new generator interconnection.
``(b) Voluntary Transmission Pricing Plans.--(1) Any plan
or plans submitted under subsection (a) shall specify the
method or methods by which costs may be allocated or
assigned. Such methods may include, but are not limited to:
``(A) directly assigned;
``(B) participant funded; or
``(C) rolled into regional or sub-regional rates.-
``(2) FERC shall approve a plan or plans submitted under
subparagraph (B) of paragraph (1) if such plan or plans--
``(A) result in rates that are just and reasonable and not
unduly discriminatory or preferential consistent with section
205; and
``(B) ensure that the costs of any transmission service
related expansion or new generator interconnection not
required to meet applicable reliability standards established
under section 215 are assigned in a fair manner, meaning that
those who benefit from the transmission service related
expansion or new generator interconnection pay an appropriate
share of the associated costs, provided that--
``(i) costs may not be assigned or allocated to an electric
utility if the native load customers of that utility would
not have required such transmission service related expansion
or new generator interconnection absent the request for
transmission service related expansion or new generator
interconnection that necessitated the investment;
``(ii) the party requesting such transmission service
related expansion or new generator interconnection shall not
be required to pay for both--
``(I) the assigned cost of the upgrade; and
``(II) the difference between--
``(aa) the embedded cost paid for transmission services
(including the cost of the requested upgrade); and
``(bb) the embedded cost that would have been paid absent
the upgrade; and
``(iii) the party or parties who pay for facilities
necessary for the transmission service related expansion or
new generator interconnection receives full compensation for
its costs for the participant funded facilities in the form
of--
``(I) monetary credit equal to the cost of the participant
funded facilities (accounting for the time value of money at
the Gross Domestic Product deflator), which credit shall be
pro-rated in equal installments over a period of not more
than 30 years and shall not exceed in total the amount of the
initial investment, against the transmission charges that the
funding entity or its assignee is otherwise assessed by the
transmission provider;
``(II) appropriate financial or physical rights; or
``(III) any other method of cost recovery or compensation
approved by the Commission.
``(3) A plan submitted under this section shall apply only
to--
``(A) a contract or interconnection agreement executed or
filed with the Commission after the date of enactment of this
section; or
``(B) an interconnection agreement pending rehearing as of
November 1, 2003.
``(4) Nothing in this section diminishes or alters the
rights of individual members of an RTO or ISO under this Act.
``(5) Nothing in this section shall affect the allocation
of costs or the cost methodology employed by an RTO or ISO
authorized by the Commission to allocate costs (including
costs for transmission service related expansion or new
generator interconnection) prior to the date of enactment of
this section.
``(6) This section shall not apply within the area referred
to in section 212(k)(2)(A).
``(7) The term `transmission provider' means a public
utility that owns or operates facilities that provide
interconnection or transmission service in interstate
commerce.''.
Subtitle E--Amendments to PURPA
SEC. 1251. NET METERING AND ADDITIONAL STANDARDS.
(a) Adoption of Standards.--Section 111(d) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d))
is amended by adding at the end the following:
``(11) Net metering.--Each electric utility shall make
available upon request net metering service to any electric
consumer that the electric utility serves. For purposes of
this paragraph, the term `net metering service' means service
to an electric consumer under which electric energy generated
by that electric consumer from an eligible on-site generating
facility and delivered to the local distribution facilities
may be used to offset electric energy provided by the
electric utility to the electric consumer during the
applicable billing period.
``(12) Fuel sources.--Each electric utility shall develop a
plan to minimize dependence on 1 fuel source and to ensure
that the electric energy it sells to consumers is generated
using a diverse range of fuels and technologies, including
renewable technologies.
``(13) Fossil fuel generation efficiency.--Each electric
utility shall develop and implement a 10-year plan to
increase the efficiency of its fossil fuel generation.''.
(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is
amended by adding at the end the following:
``(3)(A) Not later than 2 years after the enactment of this
paragraph, each State regulatory authority (with respect to
each electric utility for which it has ratemaking authority)
and each nonregulated electric utility shall commence the
consideration referred to in section 111, or set a hearing
date for such consideration, with respect to each standard
established by paragraphs (11) through (13) of section
111(d).
``(B) Not later than 3 years after the date of the
enactment of this paragraph, each State regulatory authority
(with respect to each electric utility for which it has
ratemaking authority), and each nonregulated electric
utility, shall complete the consideration, and shall make the
determination, referred to in section 111 with respect to
each standard established by paragraphs (11) through (13) of
section 111(d).''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c))
is amended by adding at the end the following:
``In the case of each standard established by paragraphs (11)
through (13) of section 111(d), the reference contained in
this subsection to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of such
paragraphs (11) through (13).''.
(3) Prior state actions.--
(A) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended
by adding at the end the following:
``(d) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standards established by
paragraphs (11) through (13) of section 111(d) in the case of
any electric utility in a State if, before the enactment of
this subsection--
``(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
``(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility; or
``(3) the State legislature has voted on the implementation
of such standard (or a comparable standard) for such
utility.''.
(B) Cross reference.--Section 124 of such Act (16 U.S.C.
2634) is amended by adding the following at the end thereof:
``In the case of each standard established by paragraphs (11)
[[Page 29197]]
through (13) of section 111(d), the reference contained in
this subsection to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of such
paragraphs (11) through (13).''.
SEC. 1252. SMART METERING.
(a) In General.--Section 111(d) of the Public Utilities
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is
amended by adding at the end the following:
``(14) Time-based metering and communications.--
``(A) Not later than 18 months after the date of enactment
of this paragraph, each electric utility shall offer each of
its customer classes, and provide individual customers upon
customer request, a time-based rate schedule under which the
rate charged by the electric utility varies during different
time periods and reflects the variance, if any, in the
utility's costs of generating and purchasing electricity at
the wholesale level. The time-based rate schedule shall
enable the electric consumer to manage energy use and cost
through advanced metering and communications technology.
``(B) The types of time-based rate schedules that may be
offered under the schedule referred to in subparagraph (A)
include, among others--
``(i) time-of-use pricing whereby electricity prices are
set for a specific time period on an advance or forward
basis, typically not changing more often than twice a year,
based on the utility's cost of generating and/or purchasing
such electricity at the wholesale level for the benefit of
the consumer. Prices paid for energy consumed during these
periods shall be pre-established and known to consumers in
advance of such consumption, allowing them to vary their
demand and usage in response to such prices and manage their
energy costs by shifting usage to a lower cost period or
reducing their consumption overall;
``(ii) critical peak pricing whereby time-of-use prices are
in effect except for certain peak days, when prices may
reflect the costs of generating and/or purchasing electricity
at the wholesale level and when consumers may receive
additional discounts for reducing peak period energy
consumption; and
``(iii) real-time pricing whereby electricity prices are
set for a specific time period on an advanced or forward
basis, reflecting the utility's cost of generating and/or
purchasing electricity at the wholesale level, and may change
as often as hourly.
``(C) Each electric utility subject to subparagraph (A)
shall provide each customer requesting a time-based rate with
a time-based meter capable of enabling the utility and
customer to offer and receive such rate, respectively.
``(D) For purposes of implementing this paragraph, any
reference contained in this section to the date of enactment
of the Public Utility Regulatory Policies Act of 1978 shall
be deemed to be a reference to the date of enactment of this
paragraph.
``(E) In a State that permits third-party marketers to sell
electric energy to retail electric consumers, such consumers
shall be entitled to receive the same time-based metering and
communications device and service as a retail electric
consumer of the electric utility.
``(F) Notwithstanding subsections (b) and (c) of section
112, each State regulatory authority shall, not later than 18
months after the date of enactment of this paragraph conduct
an investigation in accordance with section 115(i) and issue
a decision whether it is appropriate to implement the
standards set out in subparagraphs (A) and (C).''.
(b) State Investigation of Demand Response and Time-Based
Metering.--Section 115 of the Public Utilities Regulatory
Policies Act of 1978 (16 U.S.C. 2625) is amended as follows:
(1) By inserting in subsection (b) after the phrase ``the
standard for time-of-day rates established by section
111(d)(3)'' the following: ``and the standard for time-based
metering and communications established by section
111(d)(14)''.
(2) By inserting in subsection (b) after the phrase ``are
likely to exceed the metering'' the following: ``and
communications''.
(3) By adding the at the end the following:
``(i) Time-based metering and communications.--In making a
determination with respect to the standard established by
section 111(d)(14), the investigation requirement of section
111(d)(14)(F) shall be as follows: Each State regulatory
authority shall conduct an investigation and issue a decision
whether or not it is appropriate for electric utilities to
provide and install time-based meters and communications
devices for each of their customers which enable such
customers to participate in time-based pricing rate schedules
and other demand response programs.''.
(c) Federal Assistance on Demand Response.--Section 132(a)
of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2642(a)) is amended by striking ``and'' at the end of
paragraph (3), striking the period at the end of paragraph
(4) and inserting ``; and'', and by adding the following at
the end thereof:
``(5) technologies, techniques, and rate-making methods
related to advanced metering and communications and the use
of these technologies, techniques and methods in demand
response programs.''.
(d) Federal Guidance.--Section 132 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2642) is amended
by adding the following at the end thereof:
``(d) Demand response.--The Secretary shall be responsible
for--
``(1) educating consumers on the availability, advantages,
and benefits of advanced metering and communications
technologies, including the funding of demonstration or pilot
projects;
``(2) working with States, utilities, other energy
providers and advanced metering and communications experts to
identify and address barriers to the adoption of demand
response programs; and
``(3) not later than 180 days after the date of enactment
of the Energy Policy Act of 2003, providing Congress with a
report that identifies and quantifies the national benefits
of demand response and makes a recommendation on achieving
specific levels of such benefits by January 1, 2005.''.
(e) Demand Response and Regional Coordination.--
(1) In general.--It is the policy of the United States to
encourage States to coordinate, on a regional basis, State
energy policies to provide reliable and affordable demand
response services to the public.
(2) Technical assistance.--The Secretary of Energy shall
provide technical assistance to States and regional
organizations formed by 2 or more States to assist them in--
(A) identifying the areas with the greatest demand response
potential;
(B) identifying and resolving problems in transmission and
distribution networks, including through the use of demand
response;
(C) developing plans and programs to use demand response to
respond to peak demand or emergency needs; and
(D) identifying specific measures consumers can take to
participate in these demand response programs.
(3) Report.--Not later than 1 year after the date of
enactment of the Energy Policy Act of 2003, the Commission
shall prepare and publish an annual report, by appropriate
region, that assesses demand response resources, including
those available from all consumer classes, and which
identifies and reviews--
(A) saturation and penetration rate of advanced meters and
communications technologies, devices and systems;
(B) existing demand response programs and time-based rate
programs;
(C) the annual resource contribution of demand resources;
(D) the potential for demand response as a quantifiable,
reliable resource for regional planning purposes; and
(E) steps taken to ensure that, in regional transmission
planning and operations, demand resources are provided
equitable treatment as a quantifiable, reliable resource
relative to the resource obligations of any load-serving
entity, transmission provider, or transmitting party.
(f) Federal Encouragement of Demand Response Devices.--It
is the policy of the United States that time-based pricing
and other forms of demand response, whereby electricity
customers are provided with electricity price signals and the
ability to benefit by responding to them, shall be
encouraged, and the deployment of such technology and devices
that enable electricity customers to participate in such
pricing and demand response systems shall be facilitated. It
is further the policy of the United States that the benefits
of such demand response that accrue to those not deploying
such technology and devices, but who are part of the same
regional electricity entity, shall be recognized.
(g) Time Limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is
amended by adding at the end the following:
``(4)(A) Not later than 1 year after the enactment of this
paragraph, each State regulatory authority (with respect to
each electric utility for which it has ratemaking authority)
and each nonregulated electric utility shall commence the
consideration referred to in section 111, or set a hearing
date for such consideration, with respect to the standard
established by paragraph (14) of section 111(d).
``(B) Not later than 2 years after the date of the
enactment of this paragraph, each State regulatory authority
(with respect to each electric utility for which it has
ratemaking authority), and each nonregulated electric
utility, shall complete the consideration, and shall make the
determination, referred to in section 111 with respect to the
standard established by paragraph (14) of section 111(d).''.
(h) Failure To Comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c))
is amended by adding at the end the following:
``In the case of the standard established by paragraph (14)
of section 111(d), the reference contained in this subsection
to the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of such paragraph (14).''.
(i) Prior State Actions Regarding Smart Metering
Standards.--
(1) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended
by adding at the end the following:
``(e) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standard established by
paragraph (14) of section 111(d) in the case of any electric
utility in a State if, before the enactment of this
subsection--
``(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
``(2) the State regulatory authority for such State or
relevant nonregulated electric utility
[[Page 29198]]
has conducted a proceeding to consider implementation of the
standard concerned (or a comparable standard) for such
utility within the previous 3 years; or
``(3) the State legislature has voted on the implementation
of such standard (or a comparable standard) for such utility
within the previous 3 years.''.
(2) Cross reference.--Section 124 of such Act (16 U.S.C.
2634) is amended by adding the following at the end thereof:
``In the case of the standard established by paragraph (14)
of section 111(d), the reference contained in this subsection
to the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of such paragraph (14).''.
SEC. 1253. COGENERATION AND SMALL POWER PRODUCTION PURCHASE
AND SALE REQUIREMENTS.
(a) Termination of Mandatory Purchase and Sale
Requirements.--Section 210 of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 824a-3) is amended by adding
at the end the following:
``(m) Termination of Mandatory Purchase and Sale
Requirements.--
``(1) Obligation to purchase.--After the date of enactment
of this subsection, no electric utility shall be required to
enter into a new contract or obligation to purchase electric
energy from a qualifying cogeneration facility or a
qualifying small power production facility under this section
if the Commission finds that the qualifying cogeneration
facility or qualifying small power production facility has
nondiscriminatory access to--
``(A)(i) independently administered, auction-based day
ahead and real time wholesale markets for the sale of
electric energy; and (ii) wholesale markets for long-term
sales of capacity and electric energy; or
``(B)(i) transmission and interconnection services that are
provided by a Commission-approved regional transmission
entity and administered pursuant to an open access
transmission tariff that affords nondiscriminatory treatment
to all customers; and (ii) competitive wholesale markets that
provide a meaningful opportunity to sell capacity, including
long-term and short-term sales, and electric energy,
including long-term, short-term and real-time sales, to
buyers other than the utility to which the qualifying
facility is interconnected. In determining whether a
meaningful opportunity to sell exists, the Commission shall
consider, among other factors, evidence of transactions
within the relevant market; or
``(C) wholesale markets for the sale of capacity and
electric energy that are, at a minimum, of comparable
competitive quality as markets described in subparagraphs (A)
and (B).
``(2) Revised purchase and sale obligation for new
facilities.--(A) After the date of enactment of this
subsection, no electric utility shall be required pursuant to
this section to enter into a new contract or obligation to
purchase from or sell electric energy to a facility that is
not an existing qualifying cogeneration facility unless the
facility meets the criteria for qualifying cogeneration
facilities established by the Commission pursuant to the
rulemaking required by subsection (n).
``(B) For the purposes of this paragraph, the term
`existing qualifying cogeneration facility' means a facility
that--
``(i) was a qualifying cogeneration facility on the date of
enactment of subsection (m); or
``(ii) had filed with the Commission a notice of self-
certification, self recertification or an application for
Commission certification under 18 C.F.R. 292.207 prior to the
date on which the Commission issues the final rule required
by subsection (n).
``(3) Commission review.--Any electric utility may file an
application with the Commission for relief from the mandatory
purchase obligation pursuant to this subsection on a service
territory-wide basis. Such application shall set forth the
factual basis upon which relief is requested and describe why
the conditions set forth in subparagraphs (A), (B) or (C) of
paragraph (1) of this subsection have been met. After notice,
including sufficient notice to potentially affected
qualifying cogeneration facilities and qualifying small power
production facilities, and an opportunity for comment, the
Commission shall make a final determination within 90 days of
such application regarding whether the conditions set forth
in subparagraphs (A), (B) or (C) of paragraph (1) have been
met.
``(4) Reinstatement of obligation to purchase.--At any time
after the Commission makes a finding under paragraph (3)
relieving an electric utility of its obligation to purchase
electric energy, a qualifying cogeneration facility, a
qualifying small power production facility, a State agency,
or any other affected person may apply to the Commission for
an order reinstating the electric utility's obligation to
purchase electric energy under this section. Such application
shall set forth the factual basis upon which the application
is based and describe why the conditions set forth in
subparagraphs (A), (B) or (C) of paragraph (1) of this
subsection are no longer met. After notice, including
sufficient notice to potentially affected utilities, and
opportunity for comment, the Commission shall issue an order
within 90 days of such application reinstating the electric
utility's obligation to purchase electric energy under this
section if the Commission finds that the conditions set forth
in subparagraphs (A), (B) or (C) of paragraph (1) which
relieved the obligation to purchase, are no longer met.
``(5) Obligation to sell.--After the date of enactment of
this subsection, no electric utility shall be required to
enter into a new contract or obligation to sell electric
energy to a qualifying cogeneration facility or a qualifying
small power production facility under this section if the
Commission finds that--
``(A) competing retail electric suppliers are willing and
able to sell and deliver electric energy to the qualifying
cogeneration facility or qualifying small power production
facility; and
``(B) the electric utility is not required by State law to
sell electric energy in its service territory.
``(6) No effect on existing rights and remedies.--Nothing
in this subsection affects the rights or remedies of any
party under any contract or obligation, in effect or pending
approval before the appropriate State regulatory authority or
non-regulated electric utility on the date of enactment of
this subsection, to purchase electric energy or capacity from
or to sell electric energy or capacity to a qualifying
cogeneration facility or qualifying small power production
facility under this Act (including the right to recover costs
of purchasing electric energy or capacity).
``(7) Recovery of costs.--(A) The Commission shall issue
and enforce such regulations as are necessary to ensure that
an electric utility that purchases electric energy or
capacity from a qualifying cogeneration facility or
qualifying small power production facility in accordance with
any legally enforceable obligation entered into or imposed
under this section recovers all prudently incurred costs
associated with the purchase.
``(B) A regulation under subparagraph (A) shall be
enforceable in accordance with the provisions of law
applicable to enforcement of regulations under the Federal
Power Act (16 U.S.C. 791a et seq.).
``(n) Rulemaking for New Qualifying Facilities.--(1)(A) Not
later than 180 days after the date of enactment of this
section, the Commission shall issue a rule revising the
criteria in 18 C.F.R. 292.205 for new qualifying cogeneration
facilities seeking to sell electric energy pursuant to
section 210 of this Act to ensure--
``(i) that the thermal energy output of a new qualifying
cogeneration facility is used in a productive and beneficial
manner;
``(ii) the electrical, thermal, and chemical output of the
cogeneration facility is used fundamentally for industrial,
commercial, or institutional purposes and is not intended
fundamentally for sale to an electric utility, taking into
account technological, efficiency, economic, and variable
thermal energy requirements, as well as State laws applicable
to sales of electric energy from a qualifying facility to its
host facility; and
``(iii) continuing progress in the development of efficient
electric energy generating technology.
``(B) The rule issued pursuant to section (n)(1)(A) shall
be applicable only to facilities that seek to sell electric
energy pursuant to section 210 of this Act. For all other
purposes, except as specifically provided in section
(m)(2)(A), qualifying facility status shall be determined in
accordance with the rules and regulations of this Act.
``(2) Notwithstanding rule revisions under paragraph (1),
the Commission's criteria for qualifying cogeneration
facilities in effect prior to the date on which the
Commission issues the final rule required by paragraph (1)
shall continue to apply to any cogeneration facility that--
``(A) was a qualifying cogeneration facility on the date of
enactment of subsection (m), or
``(B) had filed with the Commission a notice of self-
certification, self-recertification or an application for
Commission certification under 18 C.F.R. 292.207 prior to the
date on which the Commission issues the final rule required
by paragraph (1).''.
(b) Elimination of Ownership Limitations.--
(1) Qualifying small power production facility.--Section
3(17)(C) of the Federal Power Act (16 U.S.C. 796(17)(C)) is
amended to read as follows:
``(C) `qualifying small power production facility' means a
small power production facility that the Commission
determines, by rule, meets such requirements (including
requirements respecting fuel use, fuel efficiency, and
reliability) as the Commission may, by rule, prescribe;''.
(2) Qualifying cogeneration facility.--Section 3(18)(B) of
the Federal Power Act (16 U.S.C. 796(18)(B)) is amended to
read as follows:
``(B) `qualifying cogeneration facility' means a
cogeneration facility that the Commission determines, by
rule, meets such requirements (including requirements
respecting minimum size, fuel use, and fuel efficiency) as
the Commission may, by rule, prescribe;''.
Subtitle F--Repeal of PUHCA
SEC. 1261. SHORT TITLE.
This subtitle may be cited as the ``Public Utility Holding
Company Act of 2003''.
SEC. 1262. DEFINITIONS.
For purposes of this subtitle:
(1) Affiliate.--The term ``affiliate'' of a company means
any company, 5 percent or more of the outstanding voting
securities of which are owned, controlled, or held with power
to vote, directly or indirectly, by such company.
(2) Associate company.--The term ``associate company'' of a
company means any company in the same holding company system
with such company.
(3) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(4) Company.--The term ``company'' means a corporation,
partnership, association, joint
[[Page 29199]]
stock company, business trust, or any organized group of
persons, whether incorporated or not, or a receiver, trustee,
or other liquidating agent of any of the foregoing.
(5) Electric utility company.--The term ``electric utility
company'' means any company that owns or operates facilities
used for the generation, transmission, or distribution of
electric energy for sale.
(6) Exempt wholesale generator and foreign utility
company.--The terms ``exempt wholesale generator'' and
``foreign utility company'' have the same meanings as in
sections 32 and 33, respectively, of the Public Utility
Holding Company Act of 1935 (15 U.S.C. 79z-5a, 79z-5b), as
those sections existed on the day before the effective date
of this subtitle.
(7) Gas utility company.--The term ``gas utility company''
means any company that owns or operates facilities used for
distribution at retail (other than the distribution only in
enclosed portable containers or distribution to tenants or
employees of the company operating such facilities for their
own use and not for resale) of natural or manufactured gas
for heat, light, or power.
(8) Holding company.--The term ``holding company'' means--
(A) any company that directly or indirectly owns, controls,
or holds, with power to vote, 10 percent or more of the
outstanding voting securities of a public-utility company or
of a holding company of any public-utility company; and
(B) any person, determined by the Commission, after notice
and opportunity for hearing, to exercise directly or
indirectly (either alone or pursuant to an arrangement or
understanding with 1 or more persons) such a controlling
influence over the management or policies of any public-
utility company or holding company as to make it necessary or
appropriate for the rate protection of utility customers with
respect to rates that such person be subject to the
obligations, duties, and liabilities imposed by this subtitle
upon holding companies.
(9) Holding company system.--The term ``holding company
system'' means a holding company, together with its
subsidiary companies.
(10) Jurisdictional rates.--The term ``jurisdictional
rates'' means rates accepted or established by the Commission
for the transmission of electric energy in interstate
commerce, the sale of electric energy at wholesale in
interstate commerce, the transportation of natural gas in
interstate commerce, and the sale in interstate commerce of
natural gas for resale for ultimate public consumption for
domestic, commercial, industrial, or any other use.
(11) Natural gas company.--The term ``natural gas company''
means a person engaged in the transportation of natural gas
in interstate commerce or the sale of such gas in interstate
commerce for resale.
(12) Person.--The term ``person'' means an individual or
company.
(13) Public utility.--The term ``public utility'' means any
person who owns or operates facilities used for transmission
of electric energy in interstate commerce or sales of
electric energy at wholesale in interstate commerce.
(14) Public-utility company.--The term ``public-utility
company'' means an electric utility company or a gas utility
company.
(15) State commission.--The term ``State commission'' means
any commission, board, agency, or officer, by whatever name
designated, of a State, municipality, or other political
subdivision of a State that, under the laws of such State,
has jurisdiction to regulate public utility companies.
(16) Subsidiary company.--The term ``subsidiary company''
of a holding company means--
(A) any company, 10 percent or more of the outstanding
voting securities of which are directly or indirectly owned,
controlled, or held with power to vote, by such holding
company; and
(B) any person, the management or policies of which the
Commission, after notice and opportunity for hearing,
determines to be subject to a controlling influence, directly
or indirectly, by such holding company (either alone or
pursuant to an arrangement or understanding with 1 or more
other persons) so as to make it necessary for the rate
protection of utility customers with respect to rates that
such person be subject to the obligations, duties, and
liabilities imposed by this subtitle upon subsidiary
companies of holding companies.
(17) Voting security.--The term ``voting security'' means
any security presently entitling the owner or holder thereof
to vote in the direction or management of the affairs of a
company.
SEC. 1263. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT
OF 1935.
The Public Utility Holding Company Act of 1935 (15 U.S.C.
79 et seq.) is repealed.
SEC. 1264. FEDERAL ACCESS TO BOOKS AND RECORDS.
(a) In General.--Each holding company and each associate
company thereof shall maintain, and shall make available to
the Commission, such books, accounts, memoranda, and other
records as the Commission determines are relevant to costs
incurred by a public utility or natural gas company that is
an associate company of such holding company and necessary or
appropriate for the protection of utility customers with
respect to jurisdictional rates.
(b) Affiliate Companies.--Each affiliate of a holding
company or of any subsidiary company of a holding company
shall maintain, and shall make available to the Commission,
such books, accounts, memoranda, and other records with
respect to any transaction with another affiliate, as the
Commission determines are relevant to costs incurred by a
public utility or natural gas company that is an associate
company of such holding company and necessary or appropriate
for the protection of utility customers with respect to
jurisdictional rates.
(c) Holding Company Systems.--The Commission may examine
the books, accounts, memoranda, and other records of any
company in a holding company system, or any affiliate
thereof, as the Commission determines are relevant to costs
incurred by a public utility or natural gas company within
such holding company system and necessary or appropriate for
the protection of utility customers with respect to
jurisdictional rates.
(d) Confidentiality.--No member, officer, or employee of
the Commission shall divulge any fact or information that may
come to his or her knowledge during the course of examination
of books, accounts, memoranda, or other records as provided
in this section, except as may be directed by the Commission
or by a court of competent jurisdiction.
SEC. 1265. STATE ACCESS TO BOOKS AND RECORDS.
(a) In General.--Upon the written request of a State
commission having jurisdiction to regulate a public-utility
company in a holding company system, the holding company or
any associate company or affiliate thereof, other than such
public-utility company, wherever located, shall produce for
inspection books, accounts, memoranda, and other records
that--
(1) have been identified in reasonable detail in a
proceeding before the State commission;
(2) the State commission determines are relevant to costs
incurred by such public-utility company; and
(3) are necessary for the effective discharge of the
responsibilities of the State commission with respect to such
proceeding.
(b) Limitation.--Subsection (a) does not apply to any
person that is a holding company solely by reason of
ownership of 1 or more qualifying facilities under the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et
seq.).
(c) Confidentiality of Information.--The production of
books, accounts, memoranda, and other records under
subsection (a) shall be subject to such terms and conditions
as may be necessary and appropriate to safeguard against
unwarranted disclosure to the public of any trade secrets or
sensitive commercial information.
(d) Effect on State Law.--Nothing in this section shall
preempt applicable State law concerning the provision of
books, accounts, memoranda, and other records, or in any way
limit the rights of any State to obtain books, accounts,
memoranda, and other records under any other Federal law,
contract, or otherwise.
(e) Court Jurisdiction.--Any United States district court
located in the State in which the State commission referred
to in subsection (a) is located shall have jurisdiction to
enforce compliance with this section.
SEC. 1266. EXEMPTION AUTHORITY.
(a) Rulemaking.--Not later than 90 days after the effective
date of this subtitle, the Commission shall issue a final
rule to exempt from the requirements of section 1264
(relating to Federal access to books and records) any person
that is a holding company, solely with respect to 1 or more--
(1) qualifying facilities under the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.);
(2) exempt wholesale generators; or
(3) foreign utility companies.
(b) Other Authority.--The Commission shall exempt a person
or transaction from the requirements of section 1264
(relating to Federal access to books and records) if, upon
application or upon the motion of the Commission--
(1) the Commission finds that the books, accounts,
memoranda, and other records of any person are not relevant
to the jurisdictional rates of a public utility or natural
gas company; or
(2) the Commission finds that any class of transactions is
not relevant to the jurisdictional rates of a public utility
or natural gas company.
SEC. 1267. AFFILIATE TRANSACTIONS.
(a) Commission Authority Unaffected.--Nothing in this
subtitle shall limit the authority of the Commission under
the Federal Power Act (16 U.S.C. 791a et seq.) to require
that jurisdictional rates are just and reasonable, including
the ability to deny or approve the pass through of costs, the
prevention of cross-subsidization, and the issuance of such
rules and regulations as are necessary or appropriate for the
protection of utility consumers.
(b) Recovery of Costs.--Nothing in this subtitle shall
preclude the Commission or a State commission from exercising
its jurisdiction under otherwise applicable law to determine
whether a public-utility company, public utility, or natural
gas company may recover in rates any costs of an activity
performed by an associate company, or any costs of goods or
services acquired by such public-utility company from an
associate company.
SEC. 1268. APPLICABILITY.
Except as otherwise specifically provided in this subtitle,
no provision of this subtitle shall apply to, or be deemed to
include--
(1) the United States;
(2) a State or any political subdivision of a State;
(3) any foreign governmental authority not operating in the
United States;
(4) any agency, authority, or instrumentality of any entity
referred to in paragraph (1), (2), or (3); or
[[Page 29200]]
(5) any officer, agent, or employee of any entity referred
to in paragraph (1), (2), (3), or (4) acting as such in the
course of his or her official duty.
SEC. 1269. EFFECT ON OTHER REGULATIONS.
Nothing in this subtitle precludes the Commission or a
State commission from exercising its jurisdiction under
otherwise applicable law to protect utility customers.
SEC. 1270. ENFORCEMENT.
The Commission shall have the same powers as set forth in
sections 306 through 317 of the Federal Power Act (16 U.S.C.
825e-825p) to enforce the provisions of this subtitle.
SEC. 1271. SAVINGS PROVISIONS.
(a) In General.--Nothing in this subtitle, or otherwise in
the Public Utility Holding Company Act of 1935, or rules,
regulations, or orders thereunder, prohibits a person from
engaging in or continuing to engage in activities or
transactions in which it is legally engaged or authorized to
engage on the date of enactment of this Act, if that person
continues to comply with the terms (other than an expiration
date or termination date) of any such authorization, whether
by rule or by order.
(b) Effect on Other Commission Authority.--Nothing in this
subtitle limits the authority of the Commission under the
Federal Power Act (16 U.S.C. 791a et seq.) or the Natural Gas
Act (15 U.S.C. 717 et seq.).
SEC. 1272. IMPLEMENTATION.
Not later than 12 months after the date of enactment of
this subtitle, the Commission shall--
(1) issue such regulations as may be necessary or
appropriate to implement this subtitle (other than section
1265, relating to State access to books and records); and
(2) submit to Congress detailed recommendations on
technical and conforming amendments to Federal law necessary
to carry out this subtitle and the amendments made by this
subtitle.
SEC. 1273. TRANSFER OF RESOURCES.
All books and records that relate primarily to the
functions transferred to the Commission under this subtitle
shall be transferred from the Securities and Exchange
Commission to the Commission.
SEC. 1274. EFFECTIVE DATE.
(a) In General.--Except for section 1272 (relating to
implementation), this subtitle shall take effect 12 months
after the date of enactment of this subtitle.
(b) Compliance With Certain Rules.--If the Commission
approves and makes effective any final rulemaking modifying
the standards of conduct governing entities that own,
operate, or control facilities for transmission of
electricity in interstate commerce or transportation of
natural gas in interstate commerce prior to the effective
date of this subtitle, any action taken by a public-utility
company or utility holding company to comply with the
requirements of such rulemaking shall not subject such
public-utility company or utility holding company to any
regulatory requirement applicable to a holding company under
the Public Utility Holding Company Act of 1935 (15 U.S.C. 79
et seq.).
SEC. 1275. SERVICE ALLOCATION.
(a) FERC Review.--In the case of non-power goods or
administrative or management services provided by an
associate company organized specifically for the purpose of
providing such goods or services to any public utility in the
same holding company system, at the election of the system or
a State commission having jurisdiction over the public
utility, the Commission, after the effective date of this
subtitle, shall review and authorize the allocation of the
costs for such goods or services to the extent relevant to
that associate company in order to assure that each
allocation is appropriate for the protection of investors and
consumers of such public utility.
(b) Cost Allocation.--Nothing in this section shall
preclude the Commission or a State commission from exercising
its jurisdiction under other applicable law with respect to
the review or authorization of any costs allocated to a
public utility in a holding company system located in the
affected State as a result of the acquisition of non-power
goods or administrative and management services by such
public utility from an associate company organized
specifically for that purpose.
(c) Rules.--Not later than 6 months after the date of
enactment of this Act, the Commission shall issue rules
(which rules shall be effective no earlier than the effective
date of this subtitle) to exempt from the requirements of
this section any company in a holding company system whose
public utility operations are confined substantially to a
single State and any other class of transactions that the
Commission finds is not relevant to the jurisdictional rates
of a public utility.
(d) Public Utility.--As used in this section, the term
``public utility'' has the meaning given that term in section
201(e) of the Federal Power Act.
SEC. 1276. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such funds as may
be necessary to carry out this subtitle.
SEC. 1277. CONFORMING AMENDMENTS TO THE FEDERAL POWER ACT.
(a) Conflict of Jurisdiction.--Section 318 of the Federal
Power Act (16 U.S.C. 825q) is repealed.
(b) Definitions.--(1) Section 201(g)(5) of the Federal
Power Act (16 U.S.C. 824(g)(5)) is amended by striking
``1935'' and inserting ``2003''.
(2) Section 214 of the Federal Power Act (16 U.S.C. 824m)
is amended by striking ``1935'' and inserting ``2003''.
Subtitle G--Market Transparency, Enforcement, and Consumer Protection
SEC. 1281. MARKET TRANSPARENCY RULES.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:
``SEC. 220. MARKET TRANSPARENCY RULES.
``(a) In General.--Not later than 180 days after the date
of enactment of this section, the Commission shall issue
rules establishing an electronic information system to
provide the Commission and the public with access to such
information as is necessary or appropriate to facilitate
price transparency and participation in markets subject to
the Commission's jurisdiction under this Act. Such systems
shall provide information about the availability and market
price of wholesale electric energy and transmission services
to the Commission, State commissions, buyers and sellers of
wholesale electric energy, users of transmission services,
and the public on a timely basis. The Commission shall have
authority to obtain such information from any electric
utility or transmitting utility, including any entity
described in section 201(f).
``(b) Exemptions.--The Commission shall exempt from
disclosure information it determines would, if disclosed, be
detrimental to the operation of an effective market or
jeopardize system security. This section shall not apply to
transactions for the purchase or sale of wholesale electric
energy or transmission services within the area described in
section 212(k)(2)(A). In determining the information to be
made available under this section and time to make such
information available, the Commission shall seek to ensure
that consumers and competitive markets are protected from the
adverse effects of potential collusion or other anti-
competitive behaviors that can be facilitated by untimely
public disclosure of transaction-specific information.
``(c) Commodity Futures Trading Commission.--This section
shall not affect the exclusive jurisdiction of the Commodity
Futures Trading Commission with respect to accounts,
agreements, contracts, or transactions in commodities under
the Commodity Exchange Act (7 U.S.C. 1 et seq.). Any request
for information to a designated contract market, registered
derivatives transaction execution facility, board of trade,
exchange, or market involving accounts, agreements,
contracts, or transactions in commodities (including natural
gas, electricity and other energy commodities) within the
exclusive jurisdiction of the Commodity Futures Trading
Commission shall be directed to the Commodity Futures Trading
Commission.
``(d) Savings Provision.--In exercising its authority under
this section, the Commission shall not--
``(1) compete with, or displace from the market place, any
price publisher; or
``(2) regulate price publishers or impose any requirements
on the publication of information.''.
SEC. 1282. MARKET MANIPULATION.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:
``SEC. 221. PROHIBITION ON FILING FALSE INFORMATION.
``No person or other entity (including an entity described
in section 201(f)) shall willfully and knowingly report any
information relating to the price of electricity sold at
wholesale or availability of transmission capacity, which
information the person or any other entity knew to be false
at the time of the reporting, to a Federal agency with intent
to fraudulently affect the data being compiled by such
Federal agency.
``SEC. 222. PROHIBITION ON ROUND TRIP TRADING.
``(a) Prohibition.--No person or other entity (including an
entity described in section 201(f)) shall willfully and
knowingly enter into any contract or other arrangement to
execute a `round trip trade' for the purchase or sale of
electric energy at wholesale.
``(b) Definition.--For the purposes of this section, the
term `round trip trade' means a transaction, or combination
of transactions, in which a person or any other entity--
``(1) enters into a contract or other arrangement to
purchase from, or sell to, any other person or other entity
electric energy at wholesale;
``(2) simultaneously with entering into the contract or
arrangement described in paragraph (1), arranges a
financially offsetting trade with such other person or entity
for the same such electric energy, at the same location,
price, quantity and terms so that, collectively, the purchase
and sale transactions in themselves result in no financial
gain or loss; and
``(3) enters into the contract or arrangement with a
specific intent to fraudulently affect reported revenues,
trading volumes, or prices.''.
SEC. 1283. ENFORCEMENT.
(a) Complaints.--Section 306 of the Federal Power Act (16
U.S.C. 825e) is amended as follows:
(1) By inserting ``electric utility,'' after ``Any
person,''.
(2) By inserting ``, transmitting utility,'' after
``licensee'' each place it appears.
(b) Review of Commission Orders.--Section 313(a) of the
Federal Power Act (16 U.S.C. 8251) is amended by inserting
`electric utility,' after `person,' in the first 2 places it
appears and by striking `any person unless such person' and
inserting `any entity unless such entity'.
(c) Investigations.--Section 307(a) of the Federal Power
Act (16 U.S.C. 825f(a)) is amended as follows:
(1) By inserting `, electric utility, transmitting utility,
or other entity' after `person' each time it appears.
[[Page 29201]]
(2) By striking the period at the end of the first sentence
and inserting the following: ``or in obtaining information
about the sale of electric energy at wholesale in interstate
commerce and the transmission of electric energy in
interstate commerce.''.
(d) Criminal Penalties.--Section 316 of the Federal Power
Act (16 U.S.C. 825o) is amended--
(1) in subsection (a), by striking ``$5,000'' and inserting
``$1,000,000'', and by striking ``two years'' and inserting
``5 years'';
(2) in subsection (b), by striking ``$500'' and inserting
``$25,000''; and
(3) by striking subsection (c).
(e) Civil Penalties.--Section 316A of the Federal Power Act
(16 U.S.C. 825o-1) is amended as follows:
(1) In subsections (a) and (b), by striking ``section 211,
212, 213, or 214'' each place it appears and inserting ``Part
II''.
(2) In subsection (b), by striking ``$10,000'' and
inserting ``$1,000,000''.
SEC. 1284. REFUND EFFECTIVE DATE.
Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b))
is amended as follows:
(1) By striking ``the date 60 days after the filing of such
complaint nor later than 5 months after the expiration of
such 60-day period'' in the second sentence and inserting
``the date of the filing of such complaint nor later than 5
months after the filing of such complaint''.
(2) By striking ``60 days after'' in the third sentence and
inserting ``of''.
(3) By striking ``expiration of such 60-day period'' in the
third sentence and inserting ``publication date''.
(4) By striking the fifth sentence and inserting the
following: ``If no final decision is rendered by the
conclusion of the 180-day period commencing upon initiation
of a proceeding pursuant to this section, the Commission
shall state the reasons why it has failed to do so and shall
state its best estimate as to when it reasonably expects to
make such decision.''.
SEC. 1285. REFUND AUTHORITY.
Section 206 of the Federal Power Act (16 U.S.C. 824e) is
amended by adding the following new subsection at the end
thereof:
``(e)(1) Except as provided in paragraph (2), if an entity
described in section 201(f) voluntarily makes a short-term
sale of electric energy and the sale violates Commission
rules in effect at the time of the sale, such entity shall be
subject to the Commission's refund authority under this
section with respect to such violation.
``(2) This section shall not apply to--
``(A) any entity that sells less than 8,000,000 megawatt
hours of electricity per year; or
``(B) any electric cooperative.
``(3) For purposes of this subsection, the term `short-term
sale' means an agreement for the sale of electric energy at
wholesale in interstate commerce that is for a period of 31
days or less (excluding monthly contracts subject to
automatic renewal).
``(4) The Commission shall have refund authority under
subsection (e)(1) with respect to a voluntary short-term sale
of electric energy by the Bonneville Power Administration (in
this section `Bonneville') only if the sale is at an unjust
and unreasonable rate and, in that event, may order a refund
only for short-term sales made by Bonneville at rates that
are higher than the highest just and reasonable rate charged
by any other entity for a short-term sale of electric energy
in the same geographic market for the same, or most nearly
comparable, period as the sale by Bonneville.
``(5) With respect to any Federal power marketing agency or
the Tennessee Valley Authority, the Commission shall not
assert or exercise any regulatory authority or powers under
subsection (e)(1) other than the ordering of refunds to
achieve a just and reasonable rate.''.
SEC. 1286. SANCTITY OF CONTRACT.
(a) In General.--The Federal Energy Regulatory Commission
(in this section, ``the Commission'') shall have no authority
to abrogate or modify any provision of an executed contract
or executed contract amendment described in subsection (b)
that has been entered into or taken effect, except upon a
finding that failure to take such action would be contrary to
the public interest.
(b) Limitation.--Except as provided in subsection (c), this
section shall apply only to a contract or contract
amendment--
(1) executed on or after the date of enactment of this Act;
and
(2) entered into--
(A) for the purchase or sale of electric energy under
section 205 of the Federal Power Act (16 U.S.C. 824d) where
the seller has been authorized by the Commission to charge
market-based rates; or
(B) under section 4 of the Natural Gas Act (15 U.S.C. 717c)
where the natural gas company has been authorized by the
Commission to charge market-based rates for the service
described in the contract.
(c) Exclusion.--This section shall not apply to an executed
contract or executed contract amendment that expressly
provides for a standard of review other than the public
interest standard.
(d) Savings Provision.--With respect to contracts to which
this section does not apply, nothing in this section alters
existing law regarding the applicable standard of review for
a contract subject to the jurisdiction of the Commission.
SEC. 1287. CONSUMER PRIVACY AND UNFAIR TRADE PRACTICES.
(a) Privacy.--The Federal Trade Commission may issue rules
protecting the privacy of electric consumers from the
disclosure of consumer information obtained in connection
with the sale or delivery of electric energy to electric
consumers.
(b) Slamming.--The Federal Trade Commission may issue rules
prohibiting the change of selection of an electric utility
except with the informed consent of the electric consumer or
if approved by the appropriate State regulatory authority.
(c) Cramming.--The Federal Trade Commission may issue rules
prohibiting the sale of goods and services to an electric
consumer unless expressly authorized by law or the electric
consumer.
(d) Rulemaking.--The Federal Trade Commission shall proceed
in accordance with section 553 of title 5, United States
Code, when prescribing a rule under this section.
(e) State Authority.--If the Federal Trade Commission
determines that a State's regulations provide equivalent or
greater protection than the provisions of this section, such
State regulations shall apply in that State in lieu of the
regulations issued by the Commission under this section.
(f) Definitions.--For purposes of this section:
(1) State regulatory authority.--The term ``State
regulatory authority'' has the meaning given that term in
section 3(21) of the Federal Power Act (16 U.S.C. 796(21)).
(2) Electric consumer and electric utility.--The terms
``electric consumer'' and ``electric utility'' have the
meanings given those terms in section 3 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2602).
Subtitle H--Merger Reform
SEC. 1291. MERGER REVIEW REFORM AND ACCOUNTABILITY.
(a) Merger Review Reform.--Within 180 days after the date
of enactment of this Act, the Secretary of Energy, in
consultation with the Federal Energy Regulatory Commission
and the Attorney General of the United States, shall prepare,
and transmit to Congress each of the following:
(1) A study of the extent to which the authorities vested
in the Federal Energy Regulatory Commission under section 203
of the Federal Power Act are duplicative of authorities
vested in--
(A) other agencies of Federal and State Government; and
(B) the Federal Energy Regulatory Commission, including
under sections 205 and 206 of the Federal Power Act.
(2) Recommendations on reforms to the Federal Power Act
that would eliminate any unnecessary duplication in the
exercise of regulatory authority or unnecessary delays in the
approval (or disapproval) of applications for the sale,
lease, or other disposition of public utility facilities.
(b) Merger Review Accountability.--Not later than 1 year
after the date of enactment of this Act and annually
thereafter, with respect to all orders issued within the
preceding year that impose a condition on a sale, lease, or
other disposition of public utility facilities under section
203(b) of the Federal Power Act, the Federal Energy
Regulatory Commission shall transmit a report to Congress
explaining each of the following:
(1) The condition imposed.
(2) Whether the Commission could have imposed such
condition by exercising its authority under any provision of
the Federal Power Act other than under section 203(b).
(3) If the Commission could not have imposed such condition
other than under section 203(b), why the Commission
determined that such condition was consistent with the public
interest.
SEC. 1292. ELECTRIC UTILITY MERGERS.
(a) Amendment.--Section 203(a) of the Federal Power Act (16
U.S.C. 824b(a)) is amended to read as follows:
``(a)(1) No public utility shall, without first having
secured an order of the Commission authorizing it to do so--
``(A) sell, lease, or otherwise dispose of the whole of its
facilities subject to the jurisdiction of the Commission, or
any part thereof of a value in excess of $10,000,000;
``(B) merge or consolidate, directly or indirectly, such
facilities or any part thereof with those of any other
person, by any means whatsoever; or
``(C) purchase, acquire, or take any security with a value
in excess of $10,000,000 of any other public utility.
``(2) No holding company in a holding company system that
includes a public utility shall purchase, acquire, or take
any security with a value in excess of $10,000,000 of, or, by
any means whatsoever, directly or indirectly, merge or
consolidate with, a public utility or a holding company in a
holding company system that includes a public utility with a
value in excess of $10,000,000 without first having secured
an order of the Commission authorizing it to do so.
``(3) Upon receipt of an application for such approval the
Commission shall give reasonable notice in writing to the
Governor and State commission of each of the States in which
the physical property affected, or any part thereof, is
situated, and to such other persons as it may deem advisable.
``(4) After notice and opportunity for hearing, the
Commission shall approve the proposed disposition,
consolidation, acquisition, or change in control, if it finds
that the proposed transaction will be consistent with the
public interest. In evaluating whether a transaction will be
consistent with the public interest, the Commission shall
consider whether the proposed transaction--
``(A) will adequately protect consumer interests;
[[Page 29202]]
``(B) will be consistent with competitive wholesale
markets;
``(C) will impair the financial integrity of any public
utility that is a party to the transaction or an associate
company of any party to the transaction; and
``(D) satisfies such other criteria as the Commission
considers consistent with the public interest.
``(5) The Commission shall, by rule, adopt procedures for
the expeditious consideration of applications for the
approval of dispositions, consolidations, or acquisitions
under this section. Such rules shall identify classes of
transactions, or specify criteria for transactions, that
normally meet the standards established in paragraph (4). The
Commission shall provide expedited review for such
transactions. The Commission shall grant or deny any other
application for approval of a transaction not later than 180
days after the application is filed. If the Commission does
not act within 180 days, such application shall be deemed
granted unless the Commission finds, based on good cause,
that further consideration is required to determine whether
the proposed transaction meets the standards of paragraph (4)
and issues an order tolling the time for acting on the
application for not more than 180 days, at the end of which
additional period the Commission shall grant or deny the
application.
``(6) For purposes of this subsection, the terms `associate
company', `holding company', and `holding company system'
have the meaning given those terms in the Public Utility
Holding Company Act of 2003.''.
(b) Effective Date.--The amendments made by this section
shall take effect 12 months after the date of enactment of
this section.
Subtitle I--Definitions
SEC. 1295. DEFINITIONS.
(a) Electric Utility.--Section 3(22) of the Federal Power
Act (16 U.S.C. 796(22)) is amended to read as follows:
``(22) Electric utility.--The term `electric utility' means
any person or Federal or State agency (including any entity
described in section 201(f)) that sells electric energy; such
term includes the Tennessee Valley Authority and each Federal
power marketing administration.''.
(b) Transmitting Utility.--Section 3(23) of the Federal
Power Act (16 U.S.C. 796(23)) is amended to read as follows:
``(23) Transmitting utility.--The term `transmitting
utility' means an entity, including any entity described in
section 201(f), that owns, operates, or controls facilities
used for the transmission of electric energy--
``(A) in interstate commerce; or
``(B) for the sale of electric energy at wholesale.''.
(c) Additional Definitions.--Section 3 of the Federal Power
Act (16 U.S.C. 796) is amended by adding at the end the
following:
``(26) Electric cooperative.--The term `electric
cooperative' means a cooperatively owned electric utility.
``(27) RTO.--The term `Regional Transmission Organization'
or `RTO' means an entity of sufficient regional scope
approved by the Commission to exercise operational or
functional control of facilities used for the transmission of
electric energy in interstate commerce and to ensure
nondiscriminatory access to such facilities.
``(28) ISO.--The term `Independent System Operator' or
`ISO' means an entity approved by the Commission to exercise
operational or functional control of facilities used for the
transmission of electric energy in interstate commerce and to
ensure nondiscriminatory access to such facilities.''.
(d) Commission.--For the purposes of this title, the term
``Commission'' means the Federal Energy Regulatory
Commission.
(e) Applicability.--Section 201(f) of the Federal Power Act
(16 U.S.C. 824(f)) is amended by adding after ``political
subdivision of a state,'' the following: ``an electric
cooperative that has financing under the Rural
Electrification Act of 1936 (7 U.S.C. 901 et seq.) or that
sells less than 4,000,000 megawatt hours of electricity per
year,''.
Subtitle J--Technical and Conforming Amendments
SEC. 1297. CONFORMING AMENDMENTS.
The Federal Power Act is amended as follows:
(1) Section 201(b)(2) of such Act (16 U.S.C. 824(b)(2)) is
amended as follows:
(A) In the first sentence by striking ``210, 211, and 212''
and inserting ``203(a)(2), 206(e), 210, 211, 211A, 212, 215,
216, 217, 218, 219, 220, 221, and 222''.
(B) In the second sentence by striking ``210 or 211'' and
inserting ``203(a)(2), 206(e), 210, 211, 211A, 212, 215, 216,
217, 218, 219, 220, 221, and 222''.
(C) Section 201(b)(2) of such Act is amended by striking
``The'' in the first place it appears and inserting
``Notwithstanding section 201(f), the'' and in the second
sentence after ``any order'' by inserting ``or rule''.
(2) Section 201(e) of such Act is amended by striking
``210, 211, or 212'' and inserting ``206(e), 206(f), 210,
211, 211A, 212, 215, 216, 217, 218, 219, 220, 221, and 222''.
(3) Section 206 of such Act (16 U.S.C. 824e) is amended as
follows:
(A) In subsection (b), in the seventh sentence, by striking
``the public utility to make''.
(B) In the first sentence of subsection (a), by striking
`hearing had' and inserting ``hearing held''.
(4) Section 211(c) of such Act (16 U.S.C. 824j(c)) is
amended by--
(A) striking ``(2)'';
(B) striking ``(A)'' and inserting ``(1)''
(C) striking ``(B)'' and inserting ``(2)''; and
(D) striking ``termination of modification'' and inserting
``termination or modification''.
(5) Section 211(d)(1) of such Act (16 U.S.C. 824j(d)(1)) is
amended by striking ``electric utility'' the second time it
appears and inserting ``transmitting utility''.
(6) Section 315 (c) of such Act (16 U.S.C. 825n(c)) is
amended by striking ``subsection'' and inserting ``section''.
TITLE XIII--ENERGY TAX INCENTIVES
SEC. 1300. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) Short Title.--This title may be cited as the ``Energy
Tax Policy Act of 2003''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
Subtitle A--Conservation
PART I--RESIDENTIAL AND BUSINESS PROPERTY
SEC. 1301. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.
(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 (relating to nonrefundable personal credits) is
amended by inserting after section 25B the following new
section:
``SEC. 25C. RESIDENTIAL ENERGY EFFICIENT PROPERTY.
``(a) Allowance of Credit.--In the case of an individual,
there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to the sum
of--
``(1) 15 percent of the qualified solar water heating
property expenditures made by the taxpayer during such year,
``(2) 15 percent of the qualified photovoltaic property
expenditures made by the taxpayer during such year,
``(3) 15 percent of the qualified wind energy property
expenditures made by the taxpayer during such year, and
``(4) 20 percent of the qualified fuel cell property
expenditures made by the taxpayer during such year.
``(b) Limitations.--
``(1) Maximum credit.--
``(A) In general.--The credit allowed under subsection (a)
shall not exceed--
``(i) $2,000 for property described in paragraph (1), (2),
or (3) of subsection (c), and
``(ii) $500 for each 0.5 kilowatt of capacity of property
described in subsection (c)(4).
``(B) Prior expenditures by taxpayer on same residence
taken into account.--In determining the amount of the credit
allowed to a taxpayer with respect to any dwelling unit under
this section, the dollar amount under subparagraph (A)(i)
with respect to each type of property described in such
subparagraph shall be reduced by the credit allowed to the
taxpayer under this section with respect to such property for
all preceding taxable years with respect to such dwelling
unit.
``(2) Property standards.--No credit shall be allowed under
this section for an item of property unless--
``(A) the original use of such property commences with the
taxpayer,
``(B) such property reasonably can be expected to remain in
use for at least 5 years,
``(C) such property is installed on or in connection with a
dwelling unit located in the United States and used as a
residence by the taxpayer,
``(D) in the case of solar water heating property, such
property is certified for performance by the non-profit Solar
Rating and Certification Corporation or a comparable entity
endorsed by the government of the State in which such
property is installed,
``(E) in the case of fuel cell property, such property
meets the performance and quality standards (if any) which
have been prescribed by the Secretary by regulations (after
consultation with the Secretary of Energy), and
``(F) in the case of any photovoltaic property, fuel cell
property, or wind energy property, such property meets
appropriate fire and electric code requirements.
``(c) Definitions.--For purposes of this section--
``(1) Qualified solar water heating property expenditure.--
The term `qualified solar water heating property expenditure'
means an expenditure for property which uses solar energy to
heat water for use in a dwelling unit.
``(2) Qualified photovoltaic property expenditure.--The
term `qualified photovoltaic property expenditure' means an
expenditure for property which uses solar energy to generate
electricity for use in a dwelling unit and which is not
described in paragraph (1).
``(3) Qualified wind energy property expenditure.--The term
`qualified wind energy property expenditure' means an
expenditure for property which uses wind energy to generate
electricity for use in a dwelling unit.
``(4) Qualified fuel cell property expenditure.--The term
`qualified fuel cell property expenditure' means an
expenditure for any qualified fuel cell property (as defined
in section 48(c)(1)).
``(d) Special Rules.--For purposes of this section--
``(1) Solar panels.--No expenditure relating to a solar
panel or other property installed as a roof (or portion
thereof) shall fail to be treated as property described in
paragraph (1) or (2) of subsection (c) solely because it
constitutes a
[[Page 29203]]
structural component of the structure on which it is
installed.
``(2) Swimming pools, etc., used as storage medium.--
Expenditures which are properly allocable to a swimming pool,
hot tub, or any other energy storage medium which has a
function other than the function of such storage shall not be
taken into account for purposes of this section.
``(3) Dollar amounts in case of joint occupancy.--In the
case of any dwelling unit which is jointly occupied and used
during any calendar year as a residence by 2 or more
individuals, the following rules shall apply:
``(A) The amount of the credit allowable under subsection
(a) by reason of expenditures made during such calendar year
by any of such individuals with respect to such dwelling unit
shall be determined by treating all of such individuals as 1
taxpayer whose taxable year is such calendar year.
``(B) There shall be allowable, with respect to such
expenditures to each of such individuals, a credit under
subsection (a) for the taxable year in which such calendar
year ends in an amount which bears the same ratio to the
amount determined under subparagraph (A) as the amount of
such expenditures made by such individual during such
calendar year bears to the aggregate of such expenditures
made by all of such individuals during such calendar year.
``(C) Subparagraphs (A) and (B) shall be applied separately
with respect to expenditures described in paragraphs (1),
(2), (3), and (4) of subsection (c).
``(4) Tenant-stockholder in cooperative housing
corporation.--In the case of an individual who is a tenant-
stockholder (as defined in section 216) in a cooperative
housing corporation (as defined in such section), such
individual shall be treated as having made the individual's
tenant-stockholder's proportionate share (as defined in
section 216(b)(3)) of any expenditures of such corporation.
``(5) Condominiums.--
``(A) In general.--In the case of an individual who is a
member of a condominium management association with respect
to a condominium which the individual owns, such individual
shall be treated as having made the individual's
proportionate share of any expenditures of such association.
``(B) Condominium management association.--For purposes of
this paragraph, the term `condominium management association'
means an organization which meets the requirements of
paragraph (1) of section 528(c) (other than subparagraph (E)
thereof) with respect to a condominium project substantially
all of the units of which are used as residences.
``(6) Allocation in certain cases.--Except in the case of
qualified wind energy property expenditures, if less than 80
percent of the use of an item is for nonbusiness purposes,
only that portion of the expenditures for such item which is
properly allocable to use for nonbusiness purposes shall be
taken into account.
``(7) When expenditure made; amount of expenditure.--
``(A) In general.--Except as provided in subparagraph (B),
an expenditure with respect to an item shall be treated as
made when the original installation of the item is completed.
``(B) Expenditures part of building construction.--In the
case of an expenditure in connection with the construction or
reconstruction of a structure, such expenditure shall be
treated as made when the original use of the constructed or
reconstructed structure by the taxpayer begins.
``(C) Amount.--The amount of any expenditure shall be the
cost thereof.
``(8) Property financed by subsidized energy financing.--
For purposes of determining the amount of expenditures made
by any individual with respect to any dwelling unit, there
shall not be taken into account expenditures which are made
from subsidized energy financing (as defined in section
48(a)(4)(C)).
``(9) Denial of depreciation on wind energy property for
which credit allowed.--No deduction shall be allowed under
section 167 for property which uses wind energy to generate
electricity if the taxpayer is allowed a credit under this
section with respect to such property.
``(e) Basis Adjustments.--For purposes of this subtitle, if
a credit is allowed under this section for any expenditure
with respect to any property, the increase in the basis of
such property which would (but for this subsection) result
from such expenditure shall be reduced by the amount of the
credit so allowed.
``(f) Termination.--The credit allowed under this section
shall not apply to taxable years beginning after December 31,
2006 (December 31, 2008, with respect to qualified
photovoltaic property expenditures).''.
(b) Conforming Amendments.--
(1) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (27), by striking the period at the end of
paragraph (28) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(29) to the extent provided in section 25C(e), in the
case of amounts with respect to which a credit has been
allowed under section 25C.''.
(2) The table of sections for subpart A of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 25B the following new item:
``Sec. 25C. Residential energy efficient property.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending after December 31, 2003.
SEC. 1302. EXTENSION AND EXPANSION OF CREDIT FOR ELECTRICITY
PRODUCED FROM CERTAIN RENEWABLE RESOURCES.
(a) Expansion of Qualified Energy Resources.--Subsection
(c) of section 45 (relating to electricity produced from
certain renewable resources) is amended to read as follows:
``(c) Qualified Energy Resources.--For purposes of this
section--
``(1) In general.--The term `qualified energy resources'
means--
``(A) wind,
``(B) closed-loop biomass,
``(C) open-loop biomass,
``(D) geothermal energy,
``(E) solar energy,
``(F) small irrigation power, and
``(G) municipal solid waste.
``(2) Closed-loop biomass.--The term `closed-loop biomass'
means any organic material from a plant which is planted
exclusively for purposes of being used at a qualified
facility to produce electricity.
``(3) Open-loop biomass.--
``(A) In general.--The term `open-loop biomass' means--
``(i) any agricultural livestock waste nutrients, or
``(ii) any solid, nonhazardous, cellulosic waste material
which is segregated from other waste materials and which is
derived from--
``(I) any of the following forest-related resources: mill
and harvesting residues, precommercial thinnings, slash, and
brush,
``(II) solid wood waste materials, including waste pallets,
crates, dunnage, manufacturing and construction wood wastes
(other than pressure-treated, chemically-treated, or painted
wood wastes), and landscape or right-of-way tree trimmings,
but not including municipal solid waste, gas derived from the
biodegradation of solid waste, or paper which is commonly
recycled, or
``(III) agriculture sources, including orchard tree crops,
vineyard, grain, legumes, sugar, and other crop by-products
or residues.
Such term shall not include closed-loop biomass.
``(B) Agricultural livestock waste nutrients.--
``(i) In general.--The term `agricultural livestock waste
nutrients' means agricultural livestock manure and litter,
including wood shavings, straw, rice hulls, and other bedding
material for the disposition of manure.
``(ii) Agricultural livestock.--The term `agricultural
livestock' includes bovine, swine, poultry, and sheep.
``(4) Geothermal energy.--The term `geothermal energy'
means energy derived from a geothermal deposit (within the
meaning of section 613(e)(2)).
``(5) Small irrigation power.--The term `small irrigation
power' means power--
``(A) generated without any dam or impoundment of water
through an irrigation system canal or ditch, and
``(B) the nameplate capacity rating of which is not less
than 150 kilowatts but is less than 5 megawatts.
``(6) Municipal solid waste.--The term `municipal solid
waste' has the meaning given the term `solid waste' under
section 2(27) of the Solid Waste Disposal Act (42 U.S.C.
6903).''.
(b) Extension and Expansion of Qualified Facilities.--
(1) In general.--Section 45 is amended by redesignating
subsection (d) as subsection (e) and by inserting after
subsection (c) the following new subsection:
``(d) Qualified Facilities.--For purposes of this section--
``(1) Wind facility.--In the case of a facility using wind
to produce electricity, the term `qualified facility' means
any facility owned by the taxpayer which is originally placed
in service after December 31, 1993, and before January 1,
2007.
``(2) Closed-loop biomass facility.--
``(A) In general.--In the case of a facility using closed-
loop biomass to produce electricity, the term `qualified
facility' means any facility--
``(i) owned by the taxpayer which is originally placed in
service after December 31, 1992, and before January 1, 2007,
or
``(ii) owned by the taxpayer which before January 1, 2007,
is originally placed in service and modified to use closed-
loop biomass to co-fire with coal, with other biomass, or
with both, but only if the modification is approved under the
Biomass Power for Rural Development Programs or is part of a
pilot project of the Commodity Credit Corporation as
described in 65 Fed. Reg. 63052.
``(B) Special rules.--In the case of a qualified facility
described in subparagraph (A)(ii)--
``(i) the 10-year period referred to in subsection (a)
shall be treated as beginning no earlier than the date of the
enactment of the Energy Tax Policy Act of 2003,
``(ii) the amount of the credit determined under subsection
(a) with respect to the facility shall be an amount equal to
the amount determined without regard to this clause
multiplied by the ratio of the thermal content of the closed-
loop biomass used in such facility to the thermal content of
all fuels used in such facility, and
``(iii) if the owner of such facility is not the producer
of the electricity, the person eligible for the credit
allowable under subsection (a) shall be the lessee or the
operator of such facility.
``(3) Open-loop biomass facilities.--
``(A) In general.--In the case of a facility using open-
loop biomass to produce electricity, the term `qualified
facility' means any facility owned by the taxpayer which--
[[Page 29204]]
``(i) in the case of a facility using agricultural
livestock waste nutrients--
``(I) is originally placed in service after the date of the
enactment of the Energy Tax Policy Act of 2003 and before
January 1, 2007, and
``(II) the nameplate capacity rating of which is not less
than 150 kilowatts, and
``(ii) in the case of any other facility, is originally
placed in service before January 1, 2007.
``(B) Credit eligibility.--In the case of any facility
described in subparagraph (A), if the owner of such facility
is not the producer of the electricity, the person eligible
for the credit allowable under subsection (a) shall be the
lessee or the operator of such facility.
``(4) Geothermal or solar energy facility.--In the case of
a facility using geothermal or solar energy to produce
electricity, the term `qualified facility' means any facility
owned by the taxpayer which is originally placed in service
after the date of the enactment of the Energy Tax Policy Act
of 2003 and before January 1, 2007. Such term shall not
include any property described in section 48(a)(3) the basis
of which is taken into account by the taxpayer for purposes
of determining the energy credit under section 48.
``(5) Small irrigation power facility.--In the case of a
facility using small irrigation power to produce electricity,
the term `qualified facility' means any facility owned by the
taxpayer which is originally placed in service after the date
of the enactment of the Energy Tax Policy Act of 2003 and
before January 1, 2007.
``(6) Landfill gas facilities.--In the case of a facility
producing electricity from gas derived from the
biodegradation of municipal solid waste, the term `qualified
facility' means any facility owned by the taxpayer which is
originally placed in service after the date of the enactment
of the Energy Tax Policy Act of 2003 and before January 1,
2007.
``(7) Trash combustion facilities.--In the case of a
facility which burns municipal solid waste to produce
electricity, the term `qualified facility' means any facility
owned by the taxpayer which is originally placed in service
after the date of the enactment of the Energy Tax Policy Act
of 2003 and before January 1, 2007.''.
(2) Conforming amendment.--Section 45(e), as so
redesignated, is amended by striking ``subsection (c)(3)(A)''
in paragraph (7)(A)(i) and inserting ``subsection (d)(1)''.
(c) Special Credit Rate and Period for Electricity Produced
and Sold After Enactment Date.--Section 45(b) is amended by
adding at the end the following new paragraph:
``(4) Credit rate and period for electricity produced and
sold from certain facilities.--
``(A) Credit rate.--In the case of electricity produced and
sold in any calendar year after 2003 at any qualified
facility described in paragraph (3), (5), (6), or (7) of
subsection (d), the amount in effect under subsection (a)(1)
for such calendar year (determined before the application of
the last sentence of paragraph (2) of this subsection) shall
be reduced by one-third.
``(B) Credit period.--
``(i) In general.--Except as provided in clause (ii), in
the case of any facility described in paragraph (3), (4),
(5), (6), or (7) of subsection (d), the 5-year period
beginning on the date the facility was originally placed in
service shall be substituted for the 10-year period in
subsection (a)(2)(A)(ii).
``(ii) Certain open-loop biomass facilities.--In the case
of any facility described in subsection (d)(3)(A)(ii) placed
in service before the date of the enactment of this
paragraph, the 5-year period beginning on January 1, 2004,
shall be substituted for the 10-year period in subsection
(a)(2)(A)(ii).''.
(d) Coordination With Other Credits.--Section 45(e), as so
redesignated, is amended by adding at the end the following
new paragraph:
``(8) Coordination with other credits.--The term `qualified
facility' shall not include--
``(A) any property with respect to which a credit is
allowed under section 25C, and
``(B) any facility the production from which is allowed as
a credit under section 45K,
for the taxable year or any prior taxable year.''.
(e) Coordination With Section 48.--Section 48(a)(3)
(defining energy property) is amended by adding at the end
the following new sentence: ``Such term shall not include any
property which is part of a facility the production from
which is allowed as a credit under section 45 for the taxable
year or any prior taxable year.''.
(f) Elimination of Certain Credit Reductions.--Section
45(b)(3) (relating to credit reduced for grants, tax-exempt
bonds, subsidized energy financing, and other credits) is
amended--
(1) by inserting ``the lesser of \1/2\ or'' before ``a
fraction'' in the matter preceding subparagraph (A), and
(2) by adding at the end the following new sentence: ``This
paragraph shall not apply with respect to any facility
described in subsection (d)(2)(A)(ii).''.
(g) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to electricity produced and sold after the date of the
enactment of this Act, in taxable years ending after such
date.
(2) Certain biomass facilities.--With respect to any
facility described in section 45(d)(3)(A)(ii) of the Internal
Revenue Code of 1986, as added by subsection (b)(1), which is
placed in service before the date of the enactment of this
Act, the amendments made by this section shall apply to
electricity produced and sold after December 31, 2003, in
taxable years ending after such date.
(3) Credit rate and period for new facilities.--The
amendments made by subsection (c) shall apply to electricity
produced and sold after December 31, 2003, in taxable years
ending after such date.
(4) Nonapplication of amendments to preeffective date
poultry waste facilities.--The amendments made by this
section shall not apply with respect to any poultry waste
facility (within the meaning of section 45(c)(3)(C), as in
effect on the day before the date of the enactment of this
Act) placed in service before January 1, 2004.
(h) GAO Study.--The Comptroller General of the United
States shall conduct a study on the market viability of
producing electricity from resources with respect to which
credit is allowed under section 45 of the Internal Revenue
Code of 1986 but without such credit. In the case of open-
loop biomass and municipal solid waste resources, the study
should take into account savings associated with not having
to dispose of such resources. In conducting such study, the
Comptroller shall estimate the dollar value of the
environmental impact of producing electricity from such
resources relative to producing electricity from fossil fuels
using the latest generation of technology. Not later than
June 30, 2006, the Comptroller shall report on such study to
the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate.
SEC. 1303. CREDIT FOR BUSINESS INSTALLATION OF QUALIFIED FUEL
CELLS.
(a) In General.--Section 48(a)(3)(A) (defining energy
property) is amended by striking ``or'' at the end of clause
(i), by adding ``or'' at the end of clause (ii), and by
inserting after clause (ii) the following new clause:
``(iii) qualified fuel cell property,''.
(b) Qualified Fuel Cell Property.--Section 48 (relating to
energy credit; reforestation credit) is amended by adding at
the end the following new subsection:
``(c) Qualified Fuel Cell Property.--For purposes of
subsection (a)(3)(A)(iii)--
``(1) In general.--The term `qualified fuel cell property'
means a fuel cell power plant which generates at least 0.5
kilowatt of electricity using an electrochemical process.
``(2) Limitation.--The energy credit with respect to any
qualified fuel cell property shall not exceed an amount equal
to $500 for each 0.5 kilowatt of capacity of such property.
``(3) Fuel cell power plant.--The term `fuel cell power
plant' means an integrated system, comprised of a fuel cell
stack assembly and associated balance of plant components,
which converts a fuel into electricity using electrochemical
means.
``(4) Termination.--The term `qualified fuel cell property'
shall not include any property placed in service after
December 31, 2006.''.
(c) Energy Percentage.--Subparagraph (A) of section
48(a)(2) (relating to energy percentage) is amended to read
as follows:
``(A) In general.--The energy percentage is--
``(i) in the case of qualified fuel cell property, 20
percent, and
``(ii) in the case of any other energy property, 10
percent.''.
(d) Conforming Amendment.--Section 48(a)(1) is amended by
inserting ``except as provided in subsection (c)(2),'' before
``the energy''.
(e) Effective Date.--The amendments made by this section
shall apply to periods after December 31, 2003, under rules
similar to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990).
SEC. 1304. CREDIT FOR ENERGY EFFICIENCY IMPROVEMENTS TO
EXISTING HOMES.
(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 (relating to nonrefundable personal credits), as
amended by this Act, is amended by inserting after section
25C the following new section:
``SEC. 25D. ENERGY EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.
``(a) Allowance of Credit.--In the case of an individual,
there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to 20
percent of the amount paid or incurred by the taxpayer for
qualified energy efficiency improvements installed during
such taxable year.
``(b) Limitations.--
``(1) Maximum credit.--The credit allowed by this section
with respect to a dwelling unit shall not exceed $2,000.
``(2) Prior credit amounts for taxpayer on same dwelling
taken into account.--If a credit was allowed to the taxpayer
under subsection (a) with respect to a dwelling unit in 1 or
more prior taxable years, the amount of the credit otherwise
allowable for the taxable year with respect to that dwelling
unit shall be reduced by the sum of the credits allowed under
subsection (a) to the taxpayer with respect to the dwelling
unit for all prior taxable years.
``(c) Qualified Energy Efficiency Improvements.--For
purposes of this section, the term `qualified energy
efficiency improvements' means any energy efficient building
envelope component which meets the prescriptive criteria for
such component established by the 2000 International Energy
Conservation Code, as such Code (including supplements) is in
effect on the date of the enactment of this section (or, in
the case of a metal roof with appropriate pigmented coatings
which meet the Energy Star program requirements), if--
``(1) such component is installed in or on a dwelling
unit--
``(A) located in the United States,
[[Page 29205]]
``(B) owned and used by the taxpayer as the taxpayer's
principal residence (within the meaning of section 121), and
``(C) which has not been treated as a qualified new energy
efficient home for purposes of any credit allowed under
section 45G,
``(2) the original use of such component commences with the
taxpayer, and
``(3) such component reasonably can be expected to remain
in use for at least 5 years.
If the aggregate cost of such components with respect to any
dwelling unit exceeds $1,000, such components shall be
treated as qualified energy efficiency improvements only if
such components are also certified in accordance with
subsection (d) as meeting such prescriptive criteria.
``(d) Certification.--The certification described in
subsection (c) shall be--
``(1) determined on the basis of the technical
specifications or applicable ratings (including product
labeling requirements) for the measurement of energy
efficiency (based upon energy use or building envelope
component performance) for the energy efficient building
envelope component,
``(2) provided by a local building regulatory authority, a
utility, a manufactured home production inspection primary
inspection agency (IPIA), or an accredited home energy rating
system provider who is accredited by or otherwise authorized
to use approved energy performance measurement methods by the
Residential Energy Services Network (RESNET), and
``(3) made in writing in a manner which specifies in
readily verifiable fashion the energy efficient building
envelope components installed and their respective energy
efficiency levels.
``(e) Definitions and Special Rules.--For purposes of this
section--
``(1) Building envelope component.--The term `building
envelope component' means--
``(A) any insulation material or system which is
specifically and primarily designed to reduce the heat loss
or gain of a dwelling unit when installed in or on such
dwelling unit,
``(B) exterior windows (including skylights),
``(C) exterior doors, and
``(D) any metal roof installed on a dwelling unit, but only
if such roof has appropriate pigmented coatings which are
specifically and primarily designed to reduce the heat gain
of such dwelling unit.
``(2) Manufactured homes included.--The term `dwelling
unit' includes a manufactured home which conforms to Federal
Manufactured Home Construction and Safety Standards (section
3280 of title 24, Code of Federal Regulations).
``(3) Application of rules.--Rules similar to the rules
under paragraphs (3), (4), and (5) of section 25C(d) shall
apply.
``(f) Basis Adjustment.--For purposes of this subtitle, if
a credit is allowed under this section for any expenditure
with respect to any property, the increase in the basis of
such property which would (but for this subsection) result
from such expenditure shall be reduced by the amount of the
credit so allowed.
``(g) Application of Section.--This section shall apply to
qualified energy efficiency improvements installed after
December 31, 2003, and before January 1, 2007.''.
(b) Conforming Amendments.--
(1) Subsection (a) of section 1016, as amended by this Act,
is amended by striking ``and'' at the end of paragraph (28),
by striking the period at the end of paragraph (29) and
inserting ``, and'', and by adding at the end the following
new paragraph:
``(30) to the extent provided in section 25D(f), in the
case of amounts with respect to which a credit has been
allowed under section 25D.''.
(2) The table of sections for subpart A of part IV of
subchapter A of chapter 1, as amended by this Act, is amended
by inserting after the item relating to section 25C the
following new item:
``Sec. 25D. Energy efficiency improvements to existing homes.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending after December 31, 2003.
SEC. 1305. CREDIT FOR CONSTRUCTION OF NEW ENERGY EFFICIENT
HOMES.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business related credits) is amended
by adding at the end the following new section:
``SEC. 45G. NEW ENERGY EFFICIENT HOME CREDIT.
``(a) In General.--For purposes of section 38, in the case
of an eligible contractor with respect to a qualified new
energy efficient home, the credit determined under this
section for the taxable year with respect to such home is an
amount equal to the aggregate adjusted bases of all energy
efficient property installed in such home during construction
of such home.
``(b) Limitations.--
``(1) Maximum credit.--
``(A) In general.--The credit allowed by this section with
respect to a dwelling unit shall not exceed--
``(i) in the case of a dwelling unit described in clause
(i) or (iii) of subsection (c)(3)(D), $1,000, and
``(ii) in the case of a dwelling unit described in
subsection (c)(3)(D)(ii), $2,000.
``(B) Prior credit amounts on same dwelling unit taken into
account.--If a credit was allowed under subsection (a) with
respect to a dwelling unit in 1 or more prior taxable years,
the amount of the credit otherwise allowable for the taxable
year with respect to such dwelling unit shall be reduced by
the sum of the credits allowed under subsection (a) with
respect to the dwelling unit for all prior taxable years.
``(2) Coordination with certain credits.--For purposes of
this section--
``(A) the basis of any property referred to in subsection
(a) shall be reduced by that portion of the basis of any
property which is attributable to qualified rehabilitation
expenditures (as defined in section 47(c)(2)) or to the
energy percentage of energy property (as determined under
section 48(a)), and
``(B) expenditures taken into account under section 47 or
48(a) shall not be taken into account under this section.
``(c) Definitions.--For purposes of this section--
``(1) Eligible contractor.--The term `eligible contractor'
means--
``(A) the person who constructed the qualified new energy
efficient home, or
``(B) in the case of a qualified new energy efficient home
which is a manufactured home, the manufactured home producer
of such home.
If more than 1 person is described in subparagraph (A) or (B)
with respect to any qualified new energy efficient home, such
term means the person designated as such by the owner of such
home.
``(2) Energy efficient property.--The term `energy
efficient property' means any energy efficient building
envelope component, and any energy efficient heating or
cooling equipment or system, which can, individually or in
combination with other components, result in a dwelling unit
meeting the requirements of this section.
``(3) Qualified new energy efficient home.--The term
`qualified new energy efficient home' means a dwelling unit--
``(A) located in the United States,
``(B) the construction of which is substantially completed
after December 31, 2003,
``(C) the original use of which, after such construction,
is reasonably expected to be as a residence by the person who
acquires such dwelling unit from the eligible contractor,
``(D) which is--
``(i) certified to have a level of annual heating and
cooling energy consumption which is at least 30 percent below
the annual level of heating and cooling energy consumption of
a comparable dwelling unit constructed in accordance with the
standards of chapter 4 of the 2000 International Energy
Conservation Code, as such Code (including supplements) is in
effect on the date of the enactment of this section, and to
have building envelope component improvements account for at
least \1/3\ of such 30 percent,
``(ii) certified to have a level of annual heating and
cooling energy consumption which is at least 50 percent below
such annual level and to have building envelope component
improvements account for at least \1/5\ of such 50 percent,
or
``(iii) a manufactured home which--
``(I) conforms to Federal Manufactured Home Construction
and Safety Standards (section 3280 of title 24, Code of
Federal Regulations), and
``(II) meets the applicable standards required by the
Administrator of the Environmental Protection Agency under
the Energy Star Labeled Homes program.
``(4) Construction.--The term `construction' includes
substantial reconstruction and rehabilitation.
``(5) Acquire.--The term `acquire' includes purchase and,
in the case of reconstruction and rehabilitation, such term
includes a binding written contract for such reconstruction
or rehabilitation.
``(6) Building envelope component.--The term `building
envelope component' means--
``(A) any insulation material or system which is
specifically and primarily designed to reduce the heat loss
or gain of a dwelling unit when installed in or on such
dwelling unit,
``(B) exterior windows (including skylights),
``(C) exterior doors, and
``(D) any metal roof installed on a dwelling unit, but only
if such roof has appropriate pigmented coatings which--
``(i) are specifically and primarily designed to reduce the
heat gain of such dwelling unit, and
``(ii) meet the Energy Star program requirements.
``(d) Certification.--
``(1) Method of certification.--A certification described
in subsection (c)(3)(D) shall be determined in accordance
with guidance prescribed by the Secretary. Such guidance
shall specify procedures and methods for calculating energy
and cost savings.
``(2) Form.--A certification described in subsection
(c)(3)(D) shall be made in writing--
``(A) in a manner which specifies in readily verifiable
fashion the energy efficient building envelope components and
energy efficient heating or cooling equipment installed and
their respective rated energy efficiency performance, and
``(B) in the case of a qualified new energy efficient home
which is a manufactured home, accompanied by such
documentation as required by the Administrator of the
Environmental Protection Agency under the Energy Star Labeled
Homes program.
``(e) Basis Adjustment.--For purposes of this subtitle, if
a credit is determined under this section for any expenditure
with respect to any property, the increase in the basis of
such property which would (but for this subsection) result
from such expenditure shall be reduced by the amount of the
credit so determined.
``(f) Application of Section.--Subsection (a) shall apply
to qualified new energy efficient homes acquired during the
period beginning on January 1, 2004, and ending on December
31, 2006.''.
(b) Credit Made Part of General Business Credit.--Section
38(b) (relating to current year
[[Page 29206]]
business credit) is amended by striking ``plus'' at the end
of paragraph (14), by striking the period at the end of
paragraph (15) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(16) the new energy efficient home credit determined
under section 45G(a).''.
(c) Basis Adjustment.--Subsection (a) of section 1016, as
amended by this Act, is amended by striking ``and'' at the
end of paragraph (29), by striking the period at the end of
paragraph (30) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(31) to the extent provided in section 45G(e), in the
case of amounts with respect to which a credit has been
allowed under section 45G.''.
(d) Limitation on Carryback.--
(1) In general.--Subsection (d) of section 39 is amended to
read as follows:
``(d) Transitional Rule.--No portion of the unused business
credit for any taxable year which is attributable to a credit
specified in section 38(b) or any portion thereof may be
carried back to any taxable year before the first taxable
year for which such specified credit or such portion is
allowable (without regard to subsection (a)).''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to taxable years ending after
December 31, 2002.
(e) Deduction for Certain Unused Business Credits.--Section
196(c) (defining qualified business credits) is amended by
striking ``and'' at the end of paragraph (10), by striking
the period at the end of paragraph (11) and inserting ``,
and'', and by adding after paragraph (11) the following new
paragraph:
``(12) the new energy efficient home credit determined
under section 45G(a).''.
(f) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 is amended by
adding at the end the following new item:
``Sec. 45G. New energy efficient home credit.''.
(g) Effective Date.--The amendments made by this section
shall apply to taxable years ending after December 31, 2003.
SEC. 1306. ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM
PROPERTY.
(a) In General.--Section 48(a)(3)(A) (defining energy
property), as amended by this Act, is amended by striking
``or'' at the end of clause (ii), by adding ``or'' at the end
of clause (iii), and by inserting after clause (iii) the
following new clause:
``(iv) combined heat and power system property,''.
(b) Combined Heat and Power System Property.--Section 48
(relating to energy credit; reforestation credit), as amended
by this Act, is amended by adding at the end the following
new subsection:
``(d) Combined Heat and Power System Property.--For
purposes of subsection (a)(3)(A)(iv)--
``(1) Combined heat and power system property.--The term
`combined heat and power system property' means property
comprising a system--
``(A) which uses the same energy source for the
simultaneous or sequential generation of electrical power,
mechanical shaft power, or both, in combination with the
generation of steam or other forms of useful thermal energy
(including heating and cooling applications),
``(B) which has an electrical capacity of not more than 15
megawatts or a mechanical energy capacity of not more than
2,000 horsepower or an equivalent combination of electrical
and mechanical energy capacities,
``(C) which produces--
``(i) at least 20 percent of its total useful energy in the
form of thermal energy which is not used to produce
electrical or mechanical power (or combination thereof), and
``(ii) at least 20 percent of its total useful energy in
the form of electrical or mechanical power (or combination
thereof),
``(D) the energy efficiency percentage of which exceeds 60
percent, and
``(E) which is placed in service before January 1, 2007.
``(2) Special rules.--
``(A) Energy efficiency percentage.--For purposes of this
subsection, the energy efficiency percentage of a system is
the fraction--
``(i) the numerator of which is the total useful
electrical, thermal, and mechanical power produced by the
system at normal operating rates, and expected to be consumed
in its normal application, and
``(ii) the denominator of which is the lower heating value
of the fuel sources for the system.
``(B) Determinations made on btu basis.--The energy
efficiency percentage and the percentages under paragraph
(1)(C) shall be determined on a Btu basis.
``(C) Input and output property not included.--The term
`combined heat and power system property' does not include
property used to transport the energy source to the facility
or to distribute energy produced by the facility.
``(D) Public utility property.--
``(i) Accounting rule for public utility property.--If the
combined heat and power system property is public utility
property (as defined in section 168(i)(10)), the taxpayer may
only claim the credit under subsection (a) if, with respect
to such property, the taxpayer uses a normalization method of
accounting.
``(ii) Certain exception not to apply.--The matter in
subsection (a)(3) which follows subparagraph (D) thereof
shall not apply to combined heat and power system property.
``(3) Systems using bagasse.--If a system is designed to
use bagasse for at least 90 percent of the energy source--
``(A) paragraph (1)(D) shall not apply, but
``(B) the amount of credit determined under subsection (a)
with respect to such system shall not exceed the amount which
bears the same ratio to such amount of credit (determined
without regard to this paragraph) as the energy efficiency
percentage of such system bears to 60 percent.''.
(c) Effective Date.--The amendments made by this subsection
shall apply to periods after December 31, 2003, in taxable
years ending after such date, under rules similar to the
rules of section 48(m) of the Internal Revenue Code of 1986
(as in effect on the day before the date of the enactment of
the Revenue Reconciliation Act of 1990).
SEC. 1307. CREDIT FOR ENERGY EFFICIENT APPLIANCES.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business-related credits), as amended
by this Act, is amended by adding at the end the following
new section:
``SEC. 45H. ENERGY EFFICIENT APPLIANCE CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, the
energy efficient appliance credit determined under this
section for the taxable year is an amount equal to the sum
of--
``(1) the tier I appliance amount, and
``(2) the tier II appliance amount,
with respect to qualified energy efficient appliances
produced by the taxpayer during the calendar year ending with
or within the taxable year.
``(b) Appliance Amounts.--For purposes of subsection (a)--
``(1) Tier i appliance amount.--The tier I appliance amount
is equal to--
``(A) $100, multiplied by
``(B) an amount (rounded to the nearest whole number) equal
to the applicable percentage of the eligible production.
``(2) Tier ii appliance amount.--The tier II appliance
amount is equal to $150, multiplied by an amount equal to the
eligible production reduced by the amount determined under
paragraph (1)(B).
``(3) Applicable percentage.--The applicable percentage is
the percentage determined by dividing the tier I appliances
produced by the taxpayer during the calendar year by the sum
of the tier I and tier II appliances so produced.
``(4) Eligible production.--The eligible production of
qualified energy efficient appliances by the taxpayer for any
calendar year is the excess of--
``(A) the number of such appliances which are produced by
the taxpayer during such calendar year, over
``(B) 110 percent of the average annual number of such
appliances which were produced by the taxpayer (or any
predecessor) during the preceding 3-calendar year period.
``(c) Qualified Energy Efficient Appliance.--For purposes
of this section--
``(1) In general.--The term `qualified energy efficient
appliance' means any tier I appliance or tier II appliance
which is produced in the United States.
``(2) Tier i appliance.--The term `tier I appliance'
means--
``(A) a clothes washer which is produced with at least a
1.50 MEF, and
``(B) a refrigerator which consumes at least 15 percent (20
percent in the case of a refrigerator produced after 2006)
less kilowatt hours per year than the energy conservation
standards for refrigerators promulgated by the Department of
Energy and effective on July 1, 2001.
``(3) Tier ii appliance.--The term `tier II appliance'
means a refrigerator produced before 2007 which consumes at
least 20 percent less kilowatt hours per year than the energy
conservation standards described in paragraph (2)(B).
``(4) Clothes washer.--The term `clothes washer' means a
residential clothes washer, including a residential style
coin operated washer.
``(5) Refrigerator.--The term `refrigerator' means an
automatic defrost refrigerator-freezer which has an internal
volume of at least 16.5 cubic feet.
``(6) MEF.--The term `MEF' means Modified Energy Factor (as
determined by the Secretary of Energy).
``(7) Produced.--The term `produced' includes manufactured.
``(d) Limitation on Maximum Credit.--
``(1) In general.--The amount of credit allowed under
subsection (a) with respect to a taxpayer for any taxable
year shall not exceed $60,000,000, reduced by the amount of
the credit allowed under subsection (a) to the taxpayer (or
any predecessor) for any prior taxable year.
``(2) Limitation based on gross receipts.--The credit
allowed under subsection (a) with respect to a taxpayer for
the taxable year shall not exceed an amount equal to 2
percent of the average annual gross receipts of the taxpayer
for the 3 taxable years preceding the taxable year for which
the credit is determined.
``(3) Gross receipts.--For purposes of this subsection, the
rules of paragraphs (2) and (3) of section 448(c) shall
apply.
``(e) Special Rules.--For purposes of this section--
``(1) In general.--Rules similar to the rules of
subsections (c), (d), and (e) of section 52 shall apply.
``(2) Controlled groups.--
``(A) In general.--All persons treated as a single employer
under subsection (a) or (b) of section 52 or subsection (m)
or (o) of section 414 shall be treated as a single
manufacturer.
[[Page 29207]]
``(B) Inclusion of foreign corporations.--For purposes of
subparagraph (A), in applying subsections (a) and (b) of
section 52 to this section, section 1563 shall be applied
without regard to subsection (b)(2)(C) thereof.
``(f) Verification.--The taxpayer shall submit such
information or certification as the Secretary, after
consultation with the Secretary of Energy, determines
necessary to claim the credit amount under subsection (a).
``(g) Termination.--This section shall not apply with
respect to appliances produced after December 31, 2007.''.
(b) Credit Made Part of General Business Credit.--Section
38(b) (relating to current year business credit), as amended
by this Act, is amended by striking ``plus'' at the end of
paragraph (15), by striking the period at the end of
paragraph (16) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(17) the energy efficient appliance credit determined
under section 45H(a).''.
(c) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1, as amended by this
Act, is amended by adding at the end the following new item:
``Sec. 45H. Energy efficient appliance credit.''.
(d) Effective Date.--The amendments made by this section
shall apply to appliances produced after December 31, 2003,
in taxable years ending after such date.
SEC. 1308. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
(a) In General.--Part VI of subchapter B of chapter 1
(relating to itemized deductions for individuals and
corporations) is amended by inserting after section 179A the
following new section:
``SEC. 179B. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
``(a) In General.--There shall be allowed as a deduction an
amount equal to the cost of energy efficient commercial
building property placed in service during the taxable year.
``(b) Maximum Amount of Deduction.--The deduction under
subsection (a) with respect to any building for the taxable
year and all prior taxable years shall not exceed an amount
equal to the product of--
``(1) $1.50, and
``(2) the square footage of the building.
``(c) Definitions.--For purposes of this section--
``(1) Energy efficient commercial building property.--The
term `energy efficient commercial building property' means
property--
``(A) which is installed on or in a building--
``(i) which is located in the United States, and
``(ii) which is the type of structure to which the Standard
90.1-2001 is applicable,
``(B) which is installed as part of--
``(i) the lighting systems,
``(ii) the heating, cooling, ventilation, and hot water
systems, or
``(iii) the building envelope, and
``(C) which is certified in accordance with subsection
(d)(4) as being installed as part of a plan designed to
reduce the total annual energy and power costs with respect
to the lighting systems, heating, cooling, ventilation, and
hot water systems of the building by 50 percent or more in
comparison to a reference building which meets the minimum
requirements of Standard 90.1-2001 using methods of
calculation under subsection (d)(2).
``(2) Standard 90.1-2001.--The term `Standard 90.1-2001'
means Standard 90.1-2001 of the American Society of Heating,
Refrigerating, and Air Conditioning Engineers and the
Illuminating Engineering Society of North America (as in
effect on April 2, 2003).
``(d) Special Rules.--
``(1) Partial allowance.--
``(A) In general.--Except as provided in subsection (f), in
the case of a building placed in service on or before the
date of the enactment of this section, if--
``(i) the requirement of subsection (c)(1)(C) is not met,
but
``(ii) there is a certification in accordance with
subsection (d)(4) that any system referred to in subsection
(c)(1)(B) satisfies the energy-savings targets established by
the Secretary under subparagraph (B) with respect to such
system,
then the requirement of subsection (c)(1)(C) shall be treated
as met with respect to such system, and the deduction under
subsection (a) shall be allowed with respect to energy
efficient commercial building property installed as part of
such system and as part of a plan to meet such targets,
except that subsection (b) shall be applied to such property
by substituting `$.50' for `$1.50'.
``(B) Regulations.--The Secretary, after consultation with
the Secretary of Energy, shall establish a target for each
system described in subsection (c)(1)(B) which, if such
targets were met for all such systems, the building would
meet the requirements of subsection (c)(1)(C).
``(2) Methods of calculation.--The Secretary, after
consultation with the Secretary of Energy, shall promulgate
regulations which describe in detail methods for calculating
and verifying energy and power cost for purposes of this
section.
``(3) Notice to owner.--Each certification required under
this section shall include an explanation to the building
owner regarding the energy efficiency features of the
building and its projected annual energy costs.
``(4) Certification.--
``(A) In general.--The Secretary shall prescribe the manner
and method for the making of certifications under this
section.
``(B) Procedures.--The Secretary shall include as part of
the certification process procedures for inspection and
testing by qualified individuals described in subparagraph
(C) to ensure compliance of buildings with energy-savings
plans and targets. Such procedures shall be--
``(i) comparable, given the difference between commercial
and residential buildings, to the requirements in the
Mortgage Industry National Accreditation Procedures for Home
Energy Rating Systems, and
``(ii) fuel neutral such that the same energy efficiency
measures allow a building to be eligible for the deduction
under this section regardless of whether such building uses a
gas or oil furnace or boiler, an electric heat pump, or other
fuel source.
``(C) Qualified individuals.--Individuals qualified to
determine compliance shall be only those individuals who are
recognized by an organization certified by the Secretary for
such purposes.
``(e) Basis Reduction.--For purposes of this subtitle, if a
deduction is allowed under this section with respect to any
energy efficient commercial building property, the basis of
such property shall be reduced by the amount of the deduction
so allowed.
``(f) Interim Rules for Lighting Systems.--Until such time
as the Secretary issues final regulations under subsection
(d)(1)(B) with respect to property which is part of a
lighting system--
``(1) In general.--The lighting system target under
subsection (d)(1)(A)(ii) shall be a reduction in lighting
power density of 25 percent (50 percent in the case of a
warehouse) of the minimum requirements in Table 9.3.1.1 or
Table 9.3.1.2 (not including additional interior lighting
power allowances) of Standard 90.1-2001.
``(2) Reduction in deduction if reduction less than 40
percent.--
``(A) In general.--If, with respect to the lighting system
of any building other than a warehouse, the reduction in
lighting power density of the lighting system is not at least
40 percent, only the applicable percentage of the amount of
deduction otherwise allowable under this section with respect
to such property shall be allowed.
``(B) Applicable percentage.--For purposes of subparagraph
(A), the applicable percentage is the number of percentage
points (not greater than 100) equal to the sum of--
``(i) 50, and
``(ii) the amount which bears the same ratio to 50 as the
excess of the reduction of lighting power density of the
lighting system over 25 percentage points bears to 15.
``(C) Exceptions.--This subsection shall not apply to any
system--
``(i) the controls and circuiting of which do not comply
fully with the mandatory and prescriptive requirements of
Standard 90.1-2001 and which do not include provision for
bilevel switching in all occupancies except hotel and motel
guest rooms, store rooms, restrooms, and public lobbies, or
``(ii) which does not meet the minimum requirements for
calculated lighting levels as set forth in the Illuminating
Engineering Society of North America Lighting Handbook,
Performance and Application, Ninth Edition, 2000.
``(g) Regulations.--The Secretary shall promulgate such
regulations as necessary--
``(1) to take into account new technologies regarding
energy efficiency and renewable energy for purposes of
determining energy efficiency and savings under this section,
and
``(2) to provide for a recapture of the deduction allowed
under this section if the plan described in subsection
(c)(1)(C) or (d)(1)(A) is not fully implemented.
``(h) Termination.--This section shall not apply with
respect to property placed in service after December 31,
2007.''.
(b) Conforming Amendments.--
(1) Section 1016(a), as amended by this section, is amended
by striking ``and'' at the end of paragraph (30), by striking
the period at the end of paragraph (31) and inserting ``,
and'', and by adding at the end the following new paragraph:
``(32) to the extent provided in section 179B(e).''.
(2) Section 1245(a) is amended by inserting ``179B,'' after
``179A,'' both places it appears in paragraphs (2)(C) and
(3)(C).
(3) Section 1250(b)(3) is amended by inserting before the
period at the end of the first sentence ``or by section
179B''.
(4) Section 263(a)(1) is amended by striking ``or'' at the
end of subparagraph (G), by striking the period at the end of
subparagraph (H) and inserting ``, or'', and by inserting
after subparagraph (H) the following new subparagraph:
``(I) expenditures for which a deduction is allowed under
section 179B.''.
(5) Section 312(k)(3)(B) is amended by striking ``or 179A''
each place it appears in the heading and text and inserting
``, 179A, or 179B''.
(c) Clerical Amendment.--The table of sections for part VI
of subchapter B of chapter 1 is amended by inserting after
section 179A the following new item:
``Sec. 179B. Energy efficient commercial buildings deduction.''.
(d) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act in taxable years ending after such
date.
SEC. 1309. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR
DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT
DEVICES.
(a) In General.--Section 168(e)(3)(A) (defining 3-year
property) is amended by striking
[[Page 29208]]
``and'' at the end of clause (ii), by striking the period at
the end of clause (iii) and inserting ``, and'', and by
adding at the end the following new clause:
``(iv) any qualified energy management device.''.
(b) Definition of Qualified Energy Management Device.--
Section 168(i) (relating to definitions and special rules) is
amended by inserting at the end the following new paragraph:
``(15) Qualified energy management device.--
``(A) In general.--The term `qualified energy management
device' means any energy management device which is placed in
service before January 1, 2008, by a taxpayer who is a
supplier of electric energy or a provider of electric energy
services.
``(B) Energy management device.--For purposes of
subparagraph (A), the term `energy management device' means
any meter or metering device which is used by the taxpayer--
``(i) to measure and record electricity usage data on a
time-differentiated basis in at least 4 separate time
segments per day, and
``(ii) to provide such data on at least a monthly basis to
both consumers and the taxpayer.''.
(c) Alternative System.--The table contained in section
168(g)(3)(B) is amended by inserting after the item relating
to subparagraph (A)(iii) the following:
``(A)(iv).........................................................20''.
(d) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act, in taxable years ending after such
date.
SEC. 1310. CREDIT FOR PRODUCTION FROM ADVANCED NUCLEAR POWER
FACILITIES.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business related credits), as amended
by this Act, is amended by adding after section 45K the
following new section:
``SEC. 45L. CREDIT FOR PRODUCTION FROM ADVANCED NUCLEAR POWER
FACILITIES.
``(a) General Rule.--For purposes of section 38, the
advanced nuclear power facility production credit of any
taxpayer for any taxable year is equal to the product of--
``(1) 1.8 cents, multiplied by
``(2) the kilowatt hours of electricity--
``(A) produced by the taxpayer at an advanced nuclear power
facility during the 8-year period beginning on the date the
facility was originally placed in service, and
``(B) sold by the taxpayer to an unrelated person during
the taxable year.
``(b) National Limitation.--
``(1) In general.--The amount of credit which would (but
for this subsection and subsection (c)) be allowed with
respect to any facility for any taxable year shall not exceed
the amount which bears the same ratio to such amount of
credit as--
``(A) the national megawatt capacity limitation allocated
to the facility, bears to
``(B) the total megawatt nameplate capacity of such
facility.
``(2) Amount of national limitation.--The national megawatt
capacity limitation shall be 6,000 megawatts.
``(3) Allocation of limitation.--The Secretary shall
allocate the national megawatt capacity limitation in such
manner as the Secretary may prescribe.
``(4) Regulations.--Not later than 6 months after the date
of the enactment of this section, the Secretary shall
prescribe such regulations as may be necessary or appropriate
to carry out the purposes of this subsection. Such
regulations shall provide a certification process under which
the Secretary, after consultation with the Secretary of
Energy, shall approve and allocate the national megawatt
capacity limitation.
``(c) Other Limitations.--
``(1) Annual limitation.--The amount of the credit
allowable under subsection (a) (after the application of
subsection (b)) for any taxable year with respect to any
facility shall not exceed an amount which bears the same
ratio to $125,000,000 as--
``(A) the national megawatt capacity limitation allocated
under subsection (b) to the facility, bears to
``(B) 1,000.
``(2) Other limitations.--Rules similar to the rules of
section 45(b) shall apply for purposes of this section,
except that paragraph (2) thereof shall not apply to the 1.8
cents under subsection (a)(1).
``(d) Advanced Nuclear Power Facility.--For purposes of
this section--
``(1) In general.--The term `advanced nuclear power
facility' means any advanced nuclear facility--
``(A) which is owned by the taxpayer and which uses nuclear
energy to produce electricity, and
``(B) which is placed in service after the date of the
enactment of this paragraph and before January 1, 2021.
``(2) Advanced nuclear facility.--For purposes of paragraph
(1), the term `advanced nuclear facility' means any nuclear
facility the reactor design for which is approved after the
date of the enactment of this paragraph by the Nuclear
Regulatory Commission (and such design or a substantially
similar design of comparable capacity was not approved on or
before such date).
``(e) Other Rules To Apply.--Rules similar to the rules of
paragraphs (1), (2), (3), (4), and (5) of section 45(e) shall
apply for purposes of this section.''
(b) Credit Treated as Business Credit.--Section 38(b), as
amended by this Act, is amended by striking ``plus'' at the
end of paragraph (20), by striking the period at the end of
paragraph (21) and inserting ``, plus'', and by adding at the
end the following:
``(22) the advanced nuclear power facility production
credit determined under section 45L(a).''.
(c) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1, as amended by this
Act, is amended by adding at the end the following:
``Sec. 45L. Credit for production from advanced nuclear power
facilities.''.
(d) Effective Date.--The amendments made by this section
shall apply to production in taxable years beginning after
December 31, 2003.
PART II--FUELS AND ALTERNATIVE MOTOR VEHICLES
SEC. 1311. REPEAL OF 4.3-CENT MOTOR FUEL EXCISE TAXES ON
RAILROADS AND INLAND WATERWAY TRANSPORTATION
WHICH REMAIN IN GENERAL FUND.
(a) Taxes on Trains.--
(1) In general.--Subparagraph (A) of section 4041(a)(1) is
amended by striking ``or a diesel-powered train'' each place
it appears and by striking ``or train''.
(2) Conforming amendments.--
(A) Subparagraph (C) of section 4041(a)(1) is amended by
striking clause (ii) and by redesignating clause (iii) as
clause (ii).
(B) Subparagraph (C) of section 4041(b)(1) is amended by
striking all that follows ``section 6421(e)(2)'' and
inserting a period.
(C) Subsection (d) of section 4041 is amended by
redesignating paragraph (3) as paragraph (4) and by inserting
after paragraph (2) the following new paragraph:
``(3) Diesel fuel used in trains.--There is hereby imposed
a tax of 0.1 cent per gallon on any liquid other than
gasoline (as defined in section 4083)--
``(A) sold by any person to an owner, lessee, or other
operator of a diesel-powered train for use as a fuel in such
train, or
``(B) used by any person as a fuel in a diesel-powered
train unless there was a taxable sale of such fuel under
subparagraph (A).
No tax shall be imposed by this paragraph on the sale or use
of any liquid if tax was imposed on such liquid under section
4081.''.
(D) Subsection (f) of section 4082 is amended by striking
``section 4041(a)(1)'' and inserting ``subsections (d)(3) and
(a)(1) of section 4041, respectively''.
(E) Paragraph (3) of section 4083(a) is amended by striking
``or a diesel-powered train''.
(F) Paragraph (3) of section 6421(f) is amended to read as
follows:
``(3) Gasoline used in trains.--In the case of gasoline
used as a fuel in a train, this section shall not apply with
respect to the Leaking Underground Storage Tank Trust Fund
financing rate under section 4081.''.
(G) Paragraph (3) of section 6427(l) is amended to read as
follows:
``(3) Refund of certain taxes on fuel used in diesel-
powered trains.--For purposes of this subsection, the term
`nontaxable use' includes fuel used in a diesel-powered
train. The preceding sentence shall not apply to the tax
imposed by section 4041(d) and the Leaking Underground
Storage Tank Trust Fund financing rate under section 4081
except with respect to fuel sold for exclusive use by a State
or any political subdivision thereof.''.
(b) Fuel Used on Inland Waterways.--
(1) In general.--Paragraph (1) of section 4042(b) is
amended by adding ``and'' at the end of subparagraph (A), by
striking ``, and'' at the end of subparagraph (B) and
inserting a period, and by striking subparagraph (C).
(2) Conforming amendment.--Paragraph (2) of section 4042(b)
is amended by striking subparagraph (C).
(c) Effective Date.--The amendments made by this section
shall take effect on January 1, 2004.
SEC. 1312. REDUCED MOTOR FUEL EXCISE TAX ON CERTAIN MIXTURES
OF DIESEL FUEL.
(a) In General.--Paragraph (2) of section 4081(a) is
amended by adding at the end the following:
``(C) Diesel-water fuel emulsion.--In the case of diesel-
water fuel emulsion at least 14 percent of which is water and
with respect to which the emulsion additive is registered by
a United States manufacturer with the Environmental
Protection Agency pursuant to section 211 of the Clean Air
Act (as in effect on March 31, 2003), subparagraph (A)(iii)
shall be applied by substituting `19.7 cents' for `24.3
cents'.''.
(b) Special Rules for Diesel-Water Fuel Emulsions.--
(1) Refunds for tax-paid purchases.--Section 6427 is
amended by redesignating subsections (m) through (p) as
subsections (n) through (q), respectively, and by inserting
after subsection (l) the following new subsection:
``(m) Diesel Fuel Used To Produce Emulsion.--
``(1) In general.--Except as provided in subsection (k), if
any diesel fuel on which tax was imposed by section 4081 at
the regular tax rate is used by any person in producing an
emulsion described in section 4081(a)(2)(C) which is sold or
used in such person's trade or business, the Secretary shall
pay (without interest) to such person an amount equal to the
excess of the regular tax rate over the incentive tax rate
with respect to such fuel.
[[Page 29209]]
``(2) Definitions.--For purposes of paragraph (1)--
``(A) Regular tax rate.--The term `regular tax rate' means
the aggregate rate of tax imposed by section 4081 determined
without regard to section 4081(a)(2)(C).
``(B) Incentive tax rate.--The term `incentive tax rate'
means the aggregate rate of tax imposed by section 4081
determined with regard to section 4081(a)(2)(C).''.
(2) Later separation of fuel.--
(A) In general.--Section 4081 (relating to imposition of
tax) is amended by redesignating subsections (d) and (e) as
subsections (e) and (f), respectively, and by inserting after
subsection (c) the following new subsection:
``(d) Later Separation of Fuel From Diesel-Water Fuel
Emulsion.--If any person separates the taxable fuel from a
diesel-water fuel emulsion on which tax was imposed under
subsection (a) at a rate determined under subsection
(a)(2)(C) (or with respect to which a credit or payment was
allowed or made by reason of section 6427), such person shall
be treated as the refiner of such taxable fuel. The amount of
tax imposed on any removal of such fuel by such person shall
be reduced by the amount of tax imposed (and not credited or
refunded) on any prior removal or entry of such fuel.''.
(B) Conforming amendment.--Subsection (d) of section 6416
is amended by striking ``section 4081(e)'' and inserting
``section 4081(f)''.
(c) Effective Date.--The amendments made by this section
shall take effect on January 1, 2004.
SEC. 1313. SMALL ETHANOL PRODUCER CREDIT.
(a) Allocation of Alcohol Fuels Credit to Patrons of a
Cooperative.--Section 40(g) (relating to definitions and
special rules for eligible small ethanol producer credit) is
amended by adding at the end the following new paragraph:
``(6) Allocation of small ethanol producer credit to
patrons of cooperative.--
``(A) Election to allocate.--
``(i) In general.--In the case of a cooperative
organization described in section 1381(a), any portion of the
credit determined under subsection (a)(3) for the taxable
year may, at the election of the organization, be apportioned
pro rata among patrons of the organization on the basis of
the quantity or value of business done with or for such
patrons for the taxable year.
``(ii) Form and effect of election.--An election under
clause (i) for any taxable year shall be made on a timely
filed return for such year. Such election, once made, shall
be irrevocable for such taxable year.
``(B) Treatment of organizations and patrons.--The amount
of the credit apportioned to patrons under subparagraph (A)--
``(i) shall not be included in the amount determined under
subsection (a) with respect to the organization for the
taxable year, and
``(ii) shall be included in the amount determined under
subsection (a) for the taxable year of each patron for which
the patronage dividends for the taxable year described in
subparagraph (A) are included in gross income.
``(C) Special rule.--If the amount of a credit which has
been apportioned to any patron under this paragraph is
decreased for any reason--
``(i) such amount shall not increase the tax imposed on
such patron, and
``(ii) the tax imposed by this chapter on such organization
shall be increased by such amount.
The increase under clause (ii) shall not be treated as tax
imposed by this chapter for purposes of determining the
amount of any credit under this chapter or for purposes of
section 55.''.
(b) Definition of Small Ethanol Producer.--Section 40(g)
(relating to definitions and special rules for eligible small
ethanol producer credit) is amended by striking
``30,000,000'' each place it appears and inserting
``60,000,000''.
(c) Conforming Amendment.--Section 1388 (relating to
definitions and special rules for cooperative organizations)
is amended by adding at the end the following new subsection:
``(k) Cross Reference.--
``For provisions relating to the apportionment of the alcohol fuels
credit between cooperative organizations and their patrons, see section
40(g)(6).''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2003.
SEC. 1314. INCENTIVES FOR BIODIESEL.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business related credits) is amended
by inserting after section 40 the following new section:
``SEC. 40A. BIODIESEL USED AS FUEL.
``(a) General Rule.--For purposes of section 38, the
biodiesel fuels credit determined under this section for the
taxable year is an amount equal to the sum of--
``(1) the biodiesel mixture credit, plus
``(2) the biodiesel credit.
``(b) Definition of Biodiesel Mixture Credit and Biodiesel
Credit.--For purposes of this section--
``(1) Biodiesel mixture credit.--
``(A) In general.--The biodiesel mixture credit of any
taxpayer for any taxable year is 50 cents for each gallon of
biodiesel used by the taxpayer in the production of a
qualified biodiesel mixture.
``(B) Qualified biodiesel mixture.--The term `qualified
biodiesel mixture' means a mixture of biodiesel and a taxable
fuel (within the meaning of section 4083(a)(1)) which--
``(i) is sold by the taxpayer producing such mixture to any
person for use as a fuel, or
``(ii) is used as a fuel by the taxpayer producing such
mixture.
``(C) Sale or use must be in trade or business, etc.--
Biodiesel used in the production of a qualified biodiesel
mixture shall be taken into account--
``(i) only if the sale or use described in subparagraph (B)
is in a trade or business of the taxpayer, and
``(ii) for the taxable year in which such sale or use
occurs.
``(D) Casual off-farm production not eligible.--No credit
shall be allowed under this section with respect to any
casual off-farm production of a qualified biodiesel mixture.
``(2) Biodiesel credit.--
``(A) In general.--The biodiesel credit of any taxpayer for
any taxable year is 50 cents for each gallon of biodiesel
which is not in a mixture and which during the taxable year--
``(i) is used by the taxpayer as a fuel in a trade or
business, or
``(ii) is sold by the taxpayer at retail to a person and
placed in the fuel tank of such person's vehicle.
``(B) User credit not to apply to biodiesel sold at
retail.--No credit shall be allowed under subparagraph (A)(i)
with respect to any biodiesel which was sold in a retail sale
described in subparagraph (A)(ii).
``(3) Credit for agri-biodiesel.--In the case of any
biodiesel which is agri-biodiesel, paragraphs (1)(A) and
(2)(A) shall be applied by substituting `$1.00' for `50
cents'.
``(4) Certification for biodiesel.--No credit shall be
allowed under this section unless the taxpayer obtains a
certification (in such form and manner as prescribed by the
Secretary) from the producer of the biodiesel which
identifies the product produced and the percentage of
biodiesel and agri-biodiesel in the product.
``(c) Coordination With Credit Against Excise Tax.--The
amount of the credit determined under this section with
respect to any biodiesel shall be properly reduced to take
into account any benefit provided with respect to such
biodiesel solely by reason of the application of section
6426.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Biodiesel.--The term `biodiesel' means the monoalkyl
esters of long chain fatty acids derived from plant or animal
matter which meet--
``(A) the registration requirements for fuels and fuel
additives established by the Environmental Protection Agency
under section 211 of the Clean Air Act (42 U.S.C. 7545), and
``(B) the requirements of the American Society of Testing
and Materials D6751.
``(2) Agri-biodiesel.--The term `agri-biodiesel' means
biodiesel derived solely from virgin oils, including esters
derived from virgin vegetable oils from corn, soybeans,
sunflower seeds, cottonseeds, canola, crambe, rapeseeds,
safflowers, flaxseeds, rice bran, and mustard seeds, and from
animal fats.
``(3) Mixture or biodiesel not used as a fuel, etc.--
``(A) Mixtures.--If--
``(i) any credit was determined under this section with
respect to biodiesel used in the production of any qualified
biodiesel mixture, and
``(ii) any person--
``(I) separates the biodiesel from the mixture, or
``(II) without separation, uses the mixture other than as a
fuel,
then there is hereby imposed on such person a tax equal to
the product of the rate applicable under subsection (b)(1)(A)
and the number of gallons of such biodiesel in such mixture.
``(B) Biodiesel.--If--
``(i) any credit was determined under this section with
respect to the retail sale of any biodiesel, and
``(ii) any person mixes such biodiesel or uses such
biodiesel other than as a fuel,
then there is hereby imposed on such person a tax equal to
the product of the rate applicable under subsection (b)(2)(A)
and the number of gallons of such biodiesel.
``(C) Applicable laws.--All provisions of law, including
penalties, shall, insofar as applicable and not inconsistent
with this section, apply in respect of any tax imposed under
subparagraph (A) or (B) as if such tax were imposed by
section 4081 and not by this chapter.
``(4) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(e) Termination.--This section shall not apply to any
sale or use after December 31, 2005.''.
(b) Credit Treated as Part of General Business Credit.--
Section 38(b) (relating to current year business credit) is
amended by striking ``plus'' at the end of paragraph (16), by
striking the period at the end of paragraph (17) and
inserting ``, plus'', and by adding at the end the following
new paragraph:
``(18) the biodiesel fuels credit determined under section
40A(a).''.
(c) Conforming Amendments.--
(1)(A) Section 87 is amended to read as follows:
``SEC. 87. ALCOHOL AND BIODIESEL FUELS CREDITS.
``Gross income includes--
``(1) the amount of the alcohol fuels credit determined
with respect to the taxpayer for the taxable year under
section 40(a), and
``(2) the biodiesel fuels credit determined with respect to
the taxpayer for the taxable year under section 40A(a).''.
(B) The item relating to section 87 in the table of
sections for part II of subchapter B of chapter
[[Page 29210]]
1 is amended by striking ``fuel credit'' and inserting ``and
biodiesel fuels credits''.
(2) Section 196(c), as amended by this Act, is amended by
striking ``and'' at the end of paragraph (11), by striking
the period at the end of paragraph (12) and inserting ``,
and'', and by adding at the end the following new paragraph:
``(13) the biodiesel fuels credit determined under section
40A(a).''.
(3) The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by adding after the item
relating to section 40 the following new item:
``Sec. 40A. Biodiesel used as fuel.''.
(d) Effective Date.--The amendments made by this section
shall apply to fuel produced, and sold or used, after
December 31, 2003, in taxable years ending after such date.
SEC. 1315. ALCOHOL FUEL AND BIODIESEL MIXTURES EXCISE TAX
CREDIT.
(a) In General.--Subchapter B of chapter 65 (relating to
rules of special application) is amended by inserting after
section 6425 the following new section:
``SEC. 6426. CREDIT FOR ALCOHOL FUEL AND BIODIESEL MIXTURES.
``(a) Allowance of Credits.--There shall be allowed as a
credit against the tax imposed by section 4081 an amount
equal to the sum of--
``(1) the alcohol fuel mixture credit, plus
``(2) the biodiesel mixture credit.
``(b) Alcohol Fuel Mixture Credit.--
``(1) In general.--For purposes of this section, the
alcohol fuel mixture credit is the product of the applicable
amount and the number of gallons of alcohol used by the
taxpayer in producing any alcohol fuel mixture for sale or
use in a trade or business of the taxpayer.
``(2) Applicable amount.--For purposes of this subsection--
``(A) In general.--Except as provided in subparagraph (B),
the applicable amount is 52 cents (51 cents in the case of
any sale or use after 2004).
``(B) Mixtures not containing ethanol.--In the case of an
alcohol fuel mixture in which none of the alcohol consists of
ethanol, the applicable amount is 60 cents.
``(3) Alcohol fuel mixture.--For purposes of this
subsection, the term `alcohol fuel mixture' means a mixture
of alcohol and a taxable fuel which--
``(A) is sold by the taxpayer producing such mixture to any
person for use as a fuel,
``(B) is used as a fuel by the taxpayer producing such
mixture, or
``(C) is removed from the refinery by a person producing
such mixture.
``(4) Other definitions.--For purposes of this subsection--
``(A) Alcohol.--The term `alcohol' includes methanol and
ethanol but does not include--
``(i) alcohol produced from petroleum, natural gas, or coal
(including peat), or
``(ii) alcohol with a proof of less than 190 (determined
without regard to any added denaturants).
Such term also includes an alcohol gallon equivalent of ethyl
tertiary butyl ether or other ethers produced from such
alcohol.
``(B) Taxable fuel.--The term `taxable fuel' has the
meaning given such term by section 4083(a)(1).
``(5) Termination.--This subsection shall not apply to any
sale, use, or removal for any period after December 31, 2010.
``(c) Biodiesel Mixture Credit.--
``(1) In general.--For purposes of this section, the
biodiesel mixture credit is the product of the applicable
amount and the number of gallons of biodiesel used by the
taxpayer in producing any biodiesel mixture for sale or use
in a trade or business of the taxpayer.
``(2) Applicable amount.--For purposes of this subsection--
``(A) In general.--Except as provided in subparagraph (B),
the applicable amount is 50 cents.
``(B) Amount for agri-biodiesel.--In the case of any
biodiesel which is agri-biodiesel, the applicable amount is
$1.00.
``(3) Biodiesel mixture.--For purposes of this section, the
term `biodiesel mixture' means a mixture of biodiesel and a
taxable fuel which--
``(A) is sold by the taxpayer producing such mixture to any
person for use as a fuel,
``(B) is used as a fuel by the taxpayer producing such
mixture, or
``(C) is removed from the refinery by a person producing
such mixture.
``(4) Certification for biodiesel.--No credit shall be
allowed under this section unless the taxpayer obtains a
certification (in such form and manner as prescribed by the
Secretary) from the producer of the biodiesel which
identifies the product produced and the percentage of
biodiesel and agri-biodiesel in the product.
``(5) Other definitions.--Any term used in this subsection
which is also used in section 40A shall have the meaning
given such term by section 40A.
``(6) Termination.--This subsection shall not apply to any
sale, use, or removal for any period after December 31, 2005.
``(d) Mixture not used as a fuel, etc.--
``(1) Imposition of tax.--If--
``(A) any credit was determined under this section with
respect to alcohol or biodiesel used in the production of any
alcohol fuel mixture or biodiesel mixture, respectively, and
``(B) any person--
``(i) separates the alcohol or biodiesel from the mixture,
or
``(ii) without separation, uses the mixture other than as a
fuel,
then there is hereby imposed on such person a tax equal to
the product of the applicable amount and the number of
gallons of such alcohol or biodiesel.
``(2) Applicable laws.--All provisions of law, including
penalties, shall, insofar as applicable and not inconsistent
with this section, apply in respect of any tax imposed under
paragraph (1) as if such tax were imposed by section 4081 and
not by this section.
``(e) Coordination With Exemption From Excise Tax.--Rules
similar to the rules under section 40(c) shall apply for
purposes of this section.''.
(b) Registration Requirement.--Section 4101(a) (relating to
registration) is amended by inserting ``and every person
producing biodiesel (as defined in section 40A(d)(1)) or
alcohol (as defined in section 6426(b)(4)(A))'' after
``4091''.
(c) Additional Amendments.--
(1) Section 40(c) is amended by striking ``or section
4091(c)'' and inserting ``section 4091(c), or section 6426''.
(2) Section 40(e)(1) is amended--
(A) by striking ``2007'' in subparagraph (A) and inserting
``2010'', and
(B) by striking ``2008'' in subparagraph (B) and inserting
``2011''.
(3) Section 40(h) is amended--
(A) by striking ``2007'' in paragraph (1) and inserting
``2010'', and
(B) by striking ``, 2006, or 2007'' in the table contained
in paragraph (2) and inserting ``through 2010''.
(4)(A) Subpart C of part III of subchapter A of chapter 32
is amended by adding at the end the following new section:
``SEC. 4104. INFORMATION REPORTING FOR PERSONS CLAIMING
CERTAIN TAX BENEFITS.
``(a) In General.--The Secretary shall require any person
claiming tax benefits under the provisions of section 34, 40,
40A, 4041(b)(2), 4041(k), 4081(c), 6426, or 6427(f) to file a
quarterly return (in such manner as the Secretary may
prescribe) providing such information relating to such
benefits and the coordination of such benefits as the
Secretary may require to ensure the proper administration and
use of such benefits.
``(b) Enforcement.--With respect to any person described in
subsection (a) and subject to registration requirements under
this title, rules similar to rules of section 4222(c) shall
apply with respect to any requirement under this section.''.
(B) The table of sections for subpart C of part III of
subchapter A of chapter 32 is amended by adding at the end
the following new item:
``Sec. 4104. Information reporting for persons claiming certain tax
benefits.''.
(5) Section 6427(i)(3) is amended--
(A) by adding at the end of subparagraph (A) the following
new flush sentence:
``In the case of an electronic claim, this subparagraph shall
be applied without regard to clause (i).'', and
(B) by striking ``20 days of the date of the filing of such
claim'' in subparagraph (B) and inserting ``45 days of the
date of the filing of such claim (20 days in the case of an
electronic claim)''.
(6) Section 9503(b)(1) is amended by adding at the end the
following new flush sentence:
``For purposes of this paragraph, taxes received under
sections 4041 and 4081 shall be determined without reduction
for credits under section 6426.''.
(d) Clerical Amendment.--The table of sections for
subchapter B of chapter 65 is amended by inserting after the
item relating to section 6425 the following new item:
``Sec. 6426. Credit for alcohol fuel and biodiesel mixtures.''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the amendments made by this section shall apply to fuel
sold, used, or removed after December 31, 2003.
(2) Subsection (c)(4).--The amendments made by subsection
(c)(4) shall take effect on January 1, 2004.
(3) Subsection (c)(5).--The amendments made by subsection
(c)(5) shall apply to claims filed after December 31, 2004.
(f) Format for Filing.--The Secretary of the Treasury shall
prescribe the electronic format for filing claims described
in section 6427(i)(3)(B) of the Internal Revenue Code of 1986
(as amended by subsection (c)(5)(A)) not later than December
31, 2004.
SEC. 1316. NONAPPLICATION OF EXPORT EXEMPTION TO DELIVERY OF
FUEL TO MOTOR VEHICLES REMOVED FROM UNITED
STATES.
(a) In General.--Section 4221(d)(2) (defining export) is
amended by adding at the end the following new sentence:
``Such term does not include the delivery of a taxable fuel
(as defined in section 4083(a)(1)) into a fuel tank of a
motor vehicle which is shipped or driven out of the United
States.''.
(b) Conforming Amendments.--
(1) Section 4041(g) (relating to other exemptions) is
amended by adding at the end the following new sentence:
``Paragraph (3) shall not apply to the sale for delivery of a
liquid into a fuel tank of a motor vehicle which is shipped
or driven out of the United States.''.
(2) Clause (iv) of section 4081(a)(1)(A) (relating to tax
on removal, entry, or sale) is amended by inserting ``or at a
duty-free sales enterprise (as defined in section 555(b)(8)
of the Tariff Act of 1930)'' after ``section 4101''.
(c) Effective Date.--The amendments made by this section
shall apply to sales or deliveries made after the date of the
enactment of this Act.
[[Page 29211]]
SEC. 1317. REPEAL OF PHASEOUTS FOR QUALIFIED ELECTRIC VEHICLE
CREDIT AND DEDUCTION FOR CLEAN FUEL-VEHICLES.
(a) Credit for Qualified Electric Vehicles.--Subsection (b)
of section 30 (relating to limitations) is amended by
striking paragraph (2) and redesignating paragraph (3) as
paragraph (2).
(b) Deduction for Clean-Fuel Vehicles and Certain Refueling
Property.--Paragraph (1) of section 179A(b) (relating to
qualified clean-fuel vehicle property) is amended to read as
follows:
``(1) Qualified clean-fuel vehicle property.-- The cost
which may be taken into account under subsection (a)(1)(A)
with respect to any motor vehicle shall not exceed--
``(A) in the case of a motor vehicle not described in
subparagraph (B) or (C), $2,000,
``(B) in the case of any truck or van with a gross vehicle
weight rating greater than 10,000 pounds but not greater than
26,000 pounds, $5,000, or
``(C) $50,000 in the case of--
``(i) a truck or van with a gross vehicle weight rating
greater than 26,000 pounds, or
``(ii) any bus which has a seating capacity of at least 20
adults (not including the driver).''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. 1318. ALTERNATIVE MOTOR VEHICLE CREDIT.
(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 (relating to foreign tax credit, etc.) is amended
by adding at the end the following:
``SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT.
``(a) Allowance of Credit.--There shall be allowed as a
credit against the tax imposed by this chapter for the
taxable year an amount equal to the sum of--
``(1) the new qualified fuel cell motor vehicle credit
determined under subsection (b),
``(2) the new advanced lean burn technology motor vehicle
credit determined under subsection (c),
``(3) the new qualified hybrid motor vehicle credit
determined under subsection (d), and
``(4) the new qualified alternative fuel motor vehicle
credit determined under subsection (e).
``(b) New Qualified Fuel Cell Motor Vehicle Credit.--
``(1) In general.--For purposes of subsection (a), the new
qualified fuel cell motor vehicle credit determined under
this subsection with respect to a new qualified fuel cell
motor vehicle placed in service by the taxpayer during the
taxable year shall be determined in accordance with the
following table:
``In the case of a vehicle which has a gross vehicle wThe new qualified
fuel cell motor
vehicle credit is--
Not more than 8,500 lbs...................................$4,000 ....
More than 8,500 lbs but not more than 14,000 lbs.........$10,000 ....
More than 14,000 lbs but not more than 26,000 lbs........$20,000 ....
More than 26,000 lbs.....................................$40,000.....
``(2) Increase for fuel efficiency.--
``(A) In general.--The amount determined under paragraph
(1) with respect to a new qualified fuel cell motor vehicle
which is a passenger automobile or light truck shall be
increased by the additional credit amount.
``(B) Additional credit amount.--For purposes of
subparagraph (A), the additional credit amount shall be
determined in accordance with the following table:
``In the case of a vehicle which achieves a fuel economy (expressed as
a percentage of the 2002 model year city fuel economy) The additional
credit amount
is--
At least 150 percent but less than 175 percent............$1,000 ....
At least 175 percent but less than 200 percent............$1,500 ....
At least 200 percent but less than 225 percent............$2,000 ....
At least 225 percent but less than 250 percent............$2,500 ....
At least 250 percent but less than 275 percent............$3,000 ....
At least 275 percent but less than 300 percent............$3,500 ....
At least 300 percent......................................$4,000.....
``(3) New qualified fuel cell motor vehicle.--For purposes
of this subsection, the term `new qualified fuel cell motor
vehicle' means a motor vehicle--
``(A) which is propelled by power derived from one or more
cells which convert chemical energy directly into electricity
by combining oxygen with hydrogen fuel which is stored on
board the vehicle in any form and may or may not require
reformation prior to use,
``(B) which, in the case of a passenger automobile or light
truck, has received--
``(i) a certificate of conformity under the Clean Air Act
and meets or exceeds the equivalent qualifying California low
emission vehicle standard under section 243(e)(2) of the
Clean Air Act for that make and model year, and
``(ii) a certificate that such vehicle meets or exceeds the
Bin 5 Tier II emission standard established in regulations
prescribed by the Administrator of the Environmental
Protection Agency under section 202(i) of the Clean Air Act
for that make and model year vehicle,
``(C) the original use of which commences with the
taxpayer,
``(D) which is acquired for use or lease by the taxpayer
and not for resale, and
``(E) which is made by a manufacturer.
``(c) New Advanced Lean Burn Technology Motor Vehicle
Credit.--
``(1) In general.--For purposes of subsection (a), the new
advanced lean burn technology motor vehicle credit determined
under this subsection with respect to a new advanced lean
burn technology motor vehicle placed in service by the
taxpayer during the taxable year is the credit amount
determined under paragraph (2).
``(2) Credit amount.--
``(A) Fuel economy.--The credit amount determined under
this paragraph shall be determined in accordance with the
following table:
``In the case of a vehicle which achieves a fuel economy (expressed as
a percentage of the 2002 model year city fuel economy) of--The credit
amount is--
At least 125 percent but less than 150 percent..............$400 ....
At least 150 percent but less than 175 percent..............$800 ....
At least 175 percent but less than 200 percent............$1,200 ....
At least 200 percent but less than 225 percent............$1,600 ....
At least 225 percent but less than 250 percent............$2,000 ....
At least 250 percent......................................$2,400.....
``(B) Conservation credit.--The amount determined under
subparagraph (A) with respect to a new advanced lean burn
technology motor vehicle shall be increased by the
conservation credit amount determined in accordance with the
following table:
``In the case of a vehicle which achieves a lifetime fuel savings
(expressed in gallons of gasoline) of-- The conservation
credit amount
is--
At least 1,200 but less than 1,800..........................$250 ....
At least 1,800 but less than 2,400..........................$500 ....
At least 2,400 but less than 3,000..........................$750 ....
At least 3,000............................................$1,000.....
``(3) New advanced lean burn technology motor vehicle.--For
purposes of this subsection, the term `new advanced lean burn
technology motor vehicle' means a passenger automobile or a
light truck--
``(A) with an internal combustion engine which--
``(i) is designed to operate primarily using more air than
is necessary for complete combustion of the fuel,
``(ii) incorporates direct injection,
``(iii) achieves at least 125 percent of the 2002 model
year city fuel economy,
``(iv) for 2004 and later model vehicles, has received a
certificate that such vehicle meets or exceeds--
``(I) in the case of a vehicle having a gross vehicle
weight rating of 6,000 pounds or less, the Bin 5 Tier II
emission standard established in regulations prescribed by
the Administrator of the Environmental Protection Agency
under section 202(i) of the Clean Air Act for that make and
model year vehicle, and
``(II) in the case of a vehicle having a gross vehicle
weight rating of more than 6,000 pounds but not more than
8,500 pounds, the Bin 8 Tier II emission standard which is so
established.
``(B) the original use of which commences with the
taxpayer,
``(C) which is acquired for use or lease by the taxpayer
and not for resale, and
``(D) which is made by a manufacturer.
``(4) Lifetime fuel savings.--For purposes of this
subsection, the term `lifetime fuel savings' means, in the
case of any new advanced lean burn technology motor vehicle,
an amount equal to the excess (if any) of--
``(A) 120,000 divided by the 2002 model year city fuel
economy for the vehicle inertia weight class, over
``(B) 120,000 divided by the city fuel economy for such
vehicle.
``(d) New Qualified Hybrid Motor Vehicle Credit.--
``(1) In general.--For purposes of subsection (a), the new
qualified hybrid motor vehicle credit determined under this
subsection with respect to a new qualified hybrid motor
vehicle placed in service by the taxpayer during the taxable
year is the credit amount determined under paragraph (2).
``(2) Credit amount.--
``(A) Credit amount for passenger automobiles and light
trucks.--In the case of a new qualified hybrid motor vehicle
which is a passenger automobile or light truck and which has
a gross vehicle weight rating of not more than 8,500 pounds,
the amount determined under this paragraph is the sum of the
amounts determined under clauses (i) and (ii).
``(i) Fuel economy.--The amount determined under this
clause is the amount which would be determined under
subsection (c)(2)(A) if such vehicle were a vehicle referred
to in such subsection.
``(ii) Conservation credit.--The amount determined under
this clause is the amount which would be determined under
subsection (c)(2)(B) if such vehicle were a vehicle referred
to in such subsection.
``(B) Credit amount for other motor vehicles.--
[[Page 29212]]
``(i) In general.--In the case of any new qualified hybrid
motor vehicle to which subparagraph (A) does not apply, the
amount determined under this paragraph is the amount equal to
the applicable percentage of the qualified incremental hybrid
cost of the vehicle as certified under clause (v).
``(ii) Applicable percentage.--For purposes of clause (i),
the applicable percentage is--
``(I) 20 percent if the vehicle achieves an increase in
city fuel economy relative to a comparable vehicle of at
least 30 percent but less than 40 percent,
``(II) 30 percent if the vehicle achieves such an increase
of at least 40 percent but less than 50 percent, and
``(III) 40 percent if the vehicle achieves such an increase
of at least 50 percent.
``(iii) Qualified incremental hybrid cost.--For purposes of
this subparagraph, the qualified incremental hybrid cost of
any vehicle is equal to the amount of the excess of the
manufacturer's suggested retail price for such vehicle over
such price for a comparable vehicle, to the extent such
amount does not exceed--
``(I) $7,500, if such vehicle has a gross vehicle weight
rating of not more than 14,000 pounds,
``(II) $15,000, if such vehicle has a gross vehicle weight
rating of more than 14,000 pounds but not more than 26,000
pounds, and
``(III) $30,000, if such vehicle has a gross vehicle weight
rating of more than 26,000 pounds.
``(iv) Comparable vehicle.--For purposes of this
subparagraph, the term `comparable vehicle' means, with
respect to any new qualified hybrid motor vehicle, any
vehicle which is powered solely by a gasoline or diesel
internal combustion engine and which is comparable in weight,
size, and use to such vehicle.
``(v) Certification.--A certification described in clause
(i) shall be made by the manufacturer and shall be determined
in accordance with guidance prescribed by the Secretary. Such
guidance shall specify procedures and methods for calculating
fuel economy savings and incremental hybrid costs.
``(3) New qualified hybrid motor vehicle.--For purposes of
this subsection--
``(A) In general.--The term `new qualified hybrid motor
vehicle' means a motor vehicle--
``(i) which draws propulsion energy from onboard sources of
stored energy which are both--
``(I) an internal combustion or heat engine using
consumable fuel, and
``(II) a rechargeable energy storage system,
``(ii) which, in the case of a vehicle to which paragraph
(2)(A) applies, has received a certificate of conformity
under the Clean Air Act and meets or exceeds the equivalent
qualifying California low emission vehicle standard under
section 243(e)(2) of the Clean Air Act for that make and
model year, and
``(I) in the case of a vehicle having a gross vehicle
weight rating of 6,000 pounds or less, the Bin 5 Tier II
emission standard established in regulations prescribed by
the Administrator of the Environmental Protection Agency
under section 202(i) of the Clean Air Act for that make and
model year vehicle, and
``(II) in the case of a vehicle having a gross vehicle
weight rating of more than 6,000 pounds but not more than
8,500 pounds, the Bin 8 Tier II emission standard which is so
established,
``(iii) which has a maximum available power of at least--
``(I) 4 percent in the case of a vehicle to which paragraph
(2)(A) applies,
``(II) 10 percent in the case of a vehicle which has a
gross vehicle weight rating or more than 8,500 pounds and not
than 14,000 pounds, and
``(III) 15 percent in the case of a vehicle in excess of
14,000 pounds,
``(iv) which, in the case of a vehicle to which paragraph
(2)(B) applies, has an internal combustion or heat engine
which has received a certificate of conformity under the
Clean Air Act as meeting the emission standards set in the
regulations prescribed by the Administrator of the
Environmental Protection Agency for 2004 through 2007 model
year diesel heavy duty engines or ottocycle heavy duty
engines, as applicable,
``(v) the original use of which commences with the
taxpayer,
``(vi) which is acquired for use or lease by the taxpayer
and not for resale, and
``(vii) which is made by a manufacturer.
Such term shall not include any vehicle which is not a
passenger automobile or light truck if such vehicle has a
gross vehicle weight rating of less than 8,500 pounds.
``(B) Consumable fuel.--For purposes of subparagraph
(A)(i)(I), the term `consumable fuel' means any solid,
liquid, or gaseous matter which releases energy when consumed
by an auxiliary power unit.
``(C) Maximum available power.--
``(i) Certain passenger automobiles and light trucks.--In
the case of a vehicle to which paragraph (2)(A) applies, the
term `maximum available power' means the maximum power
available from the rechargeable energy storage system, during
a standard 10 second pulse power or equivalent test, divided
by such maximum power and the SAE net power of the heat
engine.
``(ii) Other motor vehicles.--In the case of a vehicle to
which paragraph (2)(B) applies, the term `maximum available
power' means the maximum power available from the
rechargeable energy storage system, during a standard 10
second pulse power or equivalent test, divided by the
vehicle's total traction power. For purposes of the preceding
sentence, the term `total traction power' means the sum of
the peak power from the rechargeable energy storage system
and the heat engine peak power of the vehicle, except that if
such storage system is the sole means by which the vehicle
can be driven, the total traction power is the peak power of
such storage system.
``(e) New Qualified Alternative Fuel Motor Vehicle
Credit.--
``(1) Allowance of credit.--Except as provided in paragraph
(5), the new qualified alternative fuel motor vehicle credit
determined under this subsection is an amount equal to the
applicable percentage of the incremental cost of any new
qualified alternative fuel motor vehicle placed in service by
the taxpayer during the taxable year.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage with respect to any new
qualified alternative fuel motor vehicle is--
``(A) 40 percent, plus
``(B) 30 percent, if such vehicle--
``(i) has received a certificate of conformity under the
Clean Air Act and meets or exceeds the most stringent
standard available for certification under the Clean Air Act
for that make and model year vehicle (other than a zero
emission standard), or
``(ii) has received an order certifying the vehicle as
meeting the same requirements as vehicles which may be sold
or leased in California and meets or exceeds the most
stringent standard available for certification under the
State laws of California (enacted in accordance with a waiver
granted under section 209(b) of the Clean Air Act) for that
make and model year vehicle (other than a zero emission
standard).
For purposes of the preceding sentence, in the case of any
new qualified alternative fuel motor vehicle which has a
gross vehicle weight rating of more than 14,000 pounds, the
most stringent standard available shall be such standard
available for certification on the date of the enactment of
the Energy Tax Policy Act of 2003.
``(3) Incremental cost.--For purposes of this subsection,
the incremental cost of any new qualified alternative fuel
motor vehicle is equal to the amount of the excess of the
manufacturer's suggested retail price for such vehicle over
such price for a gasoline or diesel fuel motor vehicle of the
same model, to the extent such amount does not exceed--
``(A) $5,000, if such vehicle has a gross vehicle weight
rating of not more than 8,500 pounds,
``(B) $10,000, if such vehicle has a gross vehicle weight
rating of more than 8,500 pounds but not more than 14,000
pounds,
``(C) $25,000, if such vehicle has a gross vehicle weight
rating of more than 14,000 pounds but not more than 26,000
pounds, and
``(D) $40,000, if such vehicle has a gross vehicle weight
rating of more than 26,000 pounds.
``(4) New qualified alternative fuel motor vehicle.--For
purposes of this subsection--
``(A) In general.--The term `new qualified alternative fuel
motor vehicle' means any motor vehicle--
``(i) which is only capable of operating on an alternative
fuel,
``(ii) the original use of which commences with the
taxpayer,
``(iii) which is acquired by the taxpayer for use or lease,
but not for resale, and
``(iv) which is made by a manufacturer.
``(B) Alternative fuel.--The term `alternative fuel' means
compressed natural gas, liquefied natural gas, liquefied
petroleum gas, hydrogen, and any liquid at least 85 percent
of the volume of which consists of methanol.
``(5) Credit for mixed-fuel vehicles.--
``(A) In general.--In the case of a mixed-fuel vehicle
placed in service by the taxpayer during the taxable year,
the credit determined under this subsection is an amount
equal to--
``(i) in the case of a 75/25 mixed-fuel vehicle, 70 percent
of the credit which would have been allowed under this
subsection if such vehicle was a qualified alternative fuel
motor vehicle, and
``(ii) in the case of a 90/10 mixed-fuel vehicle, 90
percent of the credit which would have been allowed under
this subsection if such vehicle was a qualified alternative
fuel motor vehicle.
``(B) Mixed-fuel vehicle.--For purposes of this subsection,
the term `mixed-fuel vehicle' means any motor vehicle
described in subparagraph (C) or (D) of paragraph (3),
which--
``(i) is certified by the manufacturer as being able to
perform efficiently in normal operation on a combination of
an alternative fuel and a petroleum-based fuel,
``(ii) either--
``(I) has received a certificate of conformity under the
Clean Air Act, or
``(II) has received an order certifying the vehicle as
meeting the same requirements as vehicles which may be sold
or leased in California and meets or exceeds the low emission
vehicle standard under section 88.105-94 of title 40, Code of
Federal Regulations, for that make and model year vehicle,
``(iii) the original use of which commences with the
taxpayer,
``(iv) which is acquired by the taxpayer for use or lease,
but not for resale, and
``(v) which is made by a manufacturer.
``(C) 75/25 mixed-fuel vehicle.--For purposes of this
subsection, the term `75/25 mixed-fuel vehicle' means a
mixed-fuel vehicle which operates using at least 75 percent
alternative fuel and not more than 25 percent petroleum-based
fuel.
``(D) 90/10 mixed-fuel vehicle.--For purposes of this
subsection, the term `90/10 mixed-fuel vehicle' means a
mixed-fuel vehicle which operates using at least 90 percent
alternative fuel and not more than 10 percent petroleum-based
fuel.
[[Page 29213]]
``(f) Limitation on Number of New Qualified Hybrid and
Advanced Lean-Burn Technology Vehicles Eligible for Credit.--
``(1) In general.--In the case of a qualified vehicle sold
during the phaseout period, only the applicable percentage of
the credit otherwise allowable under subsection (c) or (d)
shall be allowed.
``(2) Phaseout period.--For purposes of this subsection,
the phaseout period is the period beginning with the second
calendar quarter following the calendar quarter which
includes the first date on which the number of qualified
vehicles manufactured by the manufacturer of the vehicle
referred to in paragraph (1) sold for use in the United
States after the date of the enactment of this section is at
least 80,000.
``(3) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage is--
``(A) 50 percent for the first 2 calendar quarters of the
phaseout period,
``(B) 25 percent for the 3d and 4th calendar quarters of
the phaseout period, and
``(C) 0 percent for each calendar quarter thereafter.
``(4) Controlled groups.--
``(A) In general.--For purposes of this subsection, all
persons treated as a single employer under subsection (a) or
(b) of section 52 or subsection (m) or (o) of section 414
shall be treated as a single manufacturer.
``(B) Inclusion of foreign corporations.--For purposes of
subparagraph (A), in applying subsections (a) and (b) of
section 52 to this section, section 1563 shall be applied
without regard to subsection (b)(2)(C) thereof.
``(5) Qualified vehicle.--For purposes of this subsection,
the term `qualified vehicle' means any new qualified hybrid
motor vehicle and any new advanced lean burn technology motor
vehicle.
``(g) Limitation Based on Amount of Tax.--The credit
allowed under subsection (a) for the taxable year shall not
exceed the excess of--
``(1) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(2) the sum of the credits allowable under subpart A and
sections 27 and 30 for the taxable year.
``(h) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Motor vehicle.--The term `motor vehicle' has the
meaning given such term by section 30(c)(2).
``(2) Other terms.--The terms `automobile', `passenger
automobile', `light truck', and `manufacturer' have the
meanings given such terms in regulations prescribed by the
Administrator of the Environmental Protection Agency for
purposes of the administration of title II of the Clean Air
Act (42 U.S.C. 7521 et seq.).
``(3) 2002 model year city fuel economy.--
``(A) In general.--The 2002 model year city fuel economy
with respect to a vehicle shall be determined in accordance
with the following tables:
``(i) In the case of a passenger automobile:
``If vehicle inertia weight clThe 2002 model year city fuel economy is:
1,500 or 1,750 lbs............................................45.2 mpg
2,000 lbs.....................................................39.6 mpg
2,250 lbs.....................................................35.2 mpg
2,500 lbs.....................................................31.7 mpg
2,750 lbs.....................................................28.8 mpg
3,000 lbs.....................................................26.4 mpg
3,500 lbs.....................................................22.6 mpg
4,000 lbs.....................................................19.8 mpg
4,500 lbs.....................................................17.6 mpg
5,000 lbs.....................................................15.9 mpg
5,500 lbs.....................................................14.4 mpg
6,000 lbs.....................................................13.2 mpg
6,500 lbs.....................................................12.2 mpg
7,000 to 8,500 lbs............................................11.3 mpg.
``(ii) In the case of a light truck:
``If vehicle inertia weight clThe 2002 model year city fuel economy is:
1,500 or 1,750 lbs............................................39.4 mpg
2,000 lbs.....................................................35.2 mpg
2,250 lbs.....................................................31.8 mpg
2,500 lbs.....................................................29.0 mpg
2,750 lbs.....................................................26.8 mpg
3,000 lbs.....................................................24.9 mpg
3,500 lbs.....................................................21.8 mpg
4,000 lbs.....................................................19.4 mpg
4,500 lbs.....................................................17.6 mpg
5,000 lbs.....................................................16.1 mpg
5,500 lbs.....................................................14.8 mpg
6,000 lbs.....................................................13.7 mpg
6,500 lbs.....................................................12.8 mpg
7,000 to 8,500 lbs............................................12.1 mpg.
``(B) Vehicle inertia weight class.--For purposes of
subparagraph (A), the term `vehicle inertia weight class' has
the same meaning as when defined in regulations prescribed by
the Administrator of the Environmental Protection Agency for
purposes of the administration of title II of the Clean Air
Act (42 U.S.C. 7521 et seq.).
``(4) Fuel economy.--Fuel economy with respect to any
vehicle shall be measured under rules similar to the rules
under section 4064(c).
``(5) Reduction in basis.--For purposes of this subtitle,
if a credit is allowed under this section for any expenditure
with respect to any property, the increase in the basis of
such property which would (but for this paragraph) result
from such expenditure shall be reduced by the amount of the
credit so allowed.
``(6) No double benefit.--The amount of any deduction or
credit allowable under this chapter (other than the credits
allowable under this section and section 30) shall be reduced
by the amount of credit allowed under subsection (a) for such
vehicle for the taxable year.
``(7) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which
ceases to be property eligible for such credit (including
recapture in the case of a lease period of less than the
economic life of a vehicle).
``(8) Property used outside united states, etc., not
qualified.--No credit shall be allowed under subsection (a)
with respect to any property referred to in section 50(b) or
with respect to the portion of the cost of any property taken
into account under section 179.
``(9) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(10) Business carryovers allowed.--If the credit
allowable under subsection (a) for a taxable year exceeds the
limitation under subsection (g) for such taxable year, such
excess (to the extent of the credit allowable with respect to
property subject to the allowance for depreciation) shall be
allowed as a credit carryback and carryforward under rules
similar to the rules of section 39.
``(11) Interaction with motor vehicle safety standards.--
Unless otherwise provided in this section, a motor vehicle
shall not be considered eligible for a credit under this
section unless such vehicle is in compliance with the motor
vehicle safety provisions of sections 30101 through 30169 of
title 49, United States Code.
``(i) Regulations.--
``(1) In general.--The Secretary shall promulgate such
regulations as necessary to carry out the provisions of this
section.
``(2) Determination of motor vehicle eligibility.--The
Secretary, after coordination with the Secretary of
Transportation and the Administrator of the Environmental
Protection Agency, shall prescribe such regulations as
necessary to determine whether a motor vehicle meets the
requirements to be eligible for a credit under this section.
``(j) Termination.--This section shall not apply to any
property placed in service after--
``(1) in the case of a new qualified alternative fuel motor
vehicle, December 31, 2006,
``(2) in the case of a new advanced lean burn technology
motor vehicle or a new qualified hybrid motor vehicle,
December 31, 2008, and
``(3) in the case of a new qualified fuel cell motor
vehicle, December 31, 2012.''.
(b) Conforming Amendments.--
(1) Section 30(d) (relating to special rules) is amended by
adding at the end the following new paragraphs:
``(5) No double benefit.--No credit shall be allowed under
this section for any motor vehicle for which a credit is also
allowed under section 30B.''.
(2) Section 1016(a), as amended by this Act, is amended by
striking ``and'' at the end of paragraph (31), by striking
the period at the end of paragraph (32) and inserting ``,
and'', and by adding at the end the following:
``(33) to the extent provided in section 30B(h)(5).''.
(3) Section 6501(m) is amended by inserting ``30B(h)(9),''
after ``30(d)(4),''.
(4) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 30A the following:
``Sec. 30B. Alternative motor vehicle credit.''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act, in taxable years ending after such
date.
(d) Sticker Information Required at Retail Sale.--
(1) In general.--The Secretary of the Treasury shall issue
regulations under which each qualified vehicle sold at retail
shall display a notice--
(A) that such vehicle is a qualified vehicle, and
(B) that the buyer may not benefit from the credit allowed
under section 30B of the Internal Revenue Code of 1986 if
such buyer has insufficient tax liability.
(2) Qualified vehicle.--For purposes of paragraph (1), the
term ``qualified vehicle'' means a vehicle with respect to
which a credit is allowed under section 30B of the Internal
Revenue Code of 1986.
SEC. 1319. MODIFICATIONS OF DEDUCTION FOR CERTAIN REFUELING
PROPERTY.
(a) In General.--Subsection (f) of section 179A is amended
to read as follows:
``(f) Termination.--This section shall not apply to any
property placed in service--
``(1) in the case of property relating to hydrogen, after
December 31, 2011, and
``(2) in the case of any other property, after December 31,
2008.''.
(b) Incentive for Production of Hydrogen at Qualified
Clean-Fuel Vehicle Refueling Property.--Section 179A(d)
(defining qualified clean-fuel vehicle refueling property) is
amended by adding at the end the following new flush
sentence:
``In the case of clean-burning fuel which is hydrogen
produced from another clean-burning fuel, paragraph (3)(A)
shall be applied by substituting `production, storage, or
dispensing' for `storage or dispensing' both places it
appears.''.
(c) Increase in Location Expenditures.--Section
179A(b)(2)(A)(i) is amended by striking ``$100,000'' and
inserting ``$150,000''.
(d) Nonbusiness Use of Qualified Clean-Fuel Vehicle
Refueling Property.--Section 179A(d) is amended by striking
paragraph (1)
[[Page 29214]]
and by redesignating paragraphs (2) and (3) as paragraphs (1)
and (2), respectively.
(e) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act, in taxable years ending after such
date.
Subtitle B--Reliability
SEC. 1321. NATURAL GAS GATHERING LINES TREATED AS 7-YEAR
PROPERTY.
(a) In General.--Subparagraph (C) of section 168(e)(3)
(relating to classification of certain property) is amended
by striking ``and'' at the end of clause (i), by
redesignating clause (ii) as clause (iii), and by inserting
after clause (i) the following new clause:
``(ii) any natural gas gathering line, and''.
(b) Natural Gas Gathering Line.--Subsection (i) of section
168, as amended by this Act, is amended by adding after
paragraph (15) the following new paragraph:
``(16) Natural gas gathering line.--The term `natural gas
gathering line' means--
``(A) the pipe, equipment, and appurtenances determined to
be a gathering line by the Federal Energy Regulatory
Commission, or
``(B) the pipe, equipment, and appurtenances used to
deliver natural gas from the wellhead or a commonpoint to the
point at which such gas first reaches--
``(i) a gas processing plant,
``(ii) an interconnection with a transmission pipeline for
which a certificate as an interstate transmission pipeline
has been issued by the Federal Energy Regulatory Commission,
``(iii) an interconnection with an intrastate transmission
pipeline, or
``(iv) a direct interconnection with a local distribution
company, a gas storage facility, or an industrial
consumer.''.
(c) Alternative System.--The table contained in section
168(g)(3)(B) is amended by inserting after the item relating
to subparagraph (C)(i) the following:
``(C)(ii).........................................................14''.
(d) Alternative Minimum Tax Exception.--Subparagraph (B) of
section 56(a)(1) is amended by inserting before the period
the following: ``, or in section 168(e)(3)(C)(ii)''.
(e) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act, in taxable years ending after such
date.
SEC. 1322. NATURAL GAS DISTRIBUTION LINES TREATED AS 15-YEAR
PROPERTY.
(a) In General.--Subparagraph (E) of section 168(e)(3)
(relating to classification of certain property) is amended
by striking ``and'' at the end of clause (ii), by striking
the period at the end of clause (iii) and by inserting ``,
and'', and by adding at the end the following new clause:
``(iv) any natural gas distribution line.''.
(b) Alternative System.--The table contained in section
168(g)(3)(B) is amended by inserting after the item relating
to subparagraph (E)(iii) the following:
``(E)(iv).........................................................35''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act, in taxable years ending after such
date.
SEC. 1323. ELECTRIC TRANSMISSION PROPERTY TREATED AS 15-YEAR
PROPERTY.
(a) In General.--Subparagraph (E) of section 168(e)(3)
(relating to classification of certain property), as amended
by this Act, is amended by striking ``and'' at the end of
clause (iii), by striking the period at the end of clause
(iv) and by inserting ``, and'', and by adding at the end the
following new clause:
``(v) any section 1245 property (as defined in section
1245(a)(3)) used in the transmission at 69 or more kilovolts
of electricity for sale the original use of which commences
with the taxpayer after the date of the enactment of this
clause.''.
(b) Alternative System.--The table contained in section
168(g)(3)(B) is amended by inserting after the item relating
to subparagraph (E)(iv) the following:
``(E)(v)..........................................................30''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act, in taxable years ending after such
date.
SEC. 1324. EXPENSING OF CAPITAL COSTS INCURRED IN COMPLYING
WITH ENVIRONMENTAL PROTECTION AGENCY SULFUR
REGULATIONS.
(a) In General.--Part VI of subchapter B of chapter 1
(relating to itemized deductions for individuals and
corporations), as amended by this Act, is amended by
inserting after section 179B the following new section:
``SEC. 179C. DEDUCTION FOR CAPITAL COSTS INCURRED IN
COMPLYING WITH ENVIRONMENTAL PROTECTION AGENCY
SULFUR REGULATIONS.
``(a) Treatment as Expenses.--A small business refiner (as
defined in section 45I(c)(1)) may elect to treat 75 percent
of qualified capital costs (as defined in section 45I(c)(2))
which are paid or incurred by the taxpayer during the taxable
year as expenses which are not chargeable to capital account.
Any cost so treated shall be allowed as a deduction for the
taxable year in which paid or incurred.
``(b) Reduced Percentage.--In the case of a small business
refiner with average daily domestic refinery runs for the 1-
year period ending on December 31, 2002, in excess of 155,000
barrels, the number of percentage points described in
subsection (a) shall be reduced (not below zero) by the
product of such number (before the application of this
subsection) and the ratio of such excess to 50,000 barrels.
``(c) Basis Reduction.--
``(1) In general.--For purposes of this title, the basis of
any property shall be reduced by the portion of the cost of
such property taken into account under subsection (a).
``(2) Ordinary income recapture.--For purposes of section
1245, the amount of the deduction allowable under subsection
(a) with respect to any property which is of a character
subject to the allowance for depreciation shall be treated as
a deduction allowed for depreciation under section 167.''.
``(d) Coordination With Other Provisions.--Section 280B
shall not apply to amounts which are treated as expenses
under this section.''.
(b) Conforming Amendments.--
(1) Section 263(a)(1), as amended by this Act, is amended
by striking ``or'' at the end of subparagraph (H), by
striking the period at the end of subparagraph (I) and
inserting ``; or'', and by adding at the end the following
new subparagraph:
``(J) expenditures for which a deduction is allowed under
section 179C.''.
(2) Section 263A(c)(3) is amended by inserting ``179C,''
after ``section''.
(3) Section 312(k)(3)(B), as amended by this Act, is
amended by striking ``or 179B'' each place it appears in the
heading and text and inserting ``179B, or 179C''.
(4) Section 1016(a), as amended by this Act, is amended by
striking ``and'' at the end of paragraph (32), by striking
the period at the end of paragraph (33) and inserting ``,
and'', and by adding at the end the following new paragraph:
``(34) to the extent provided in section 179C(c).''
(5) Paragraphs (2)(C) and (3)(C) of section 1245(a), as
amended by this Act, are each amended by inserting ``179C,''
after ``179B,''.
(6) The table of sections for part VI of subchapter B of
chapter 1, as amended by this Act, is amended by inserting
after the item relating to section 179B the following new
item:
``Sec. 179C. Deduction for capital costs incurred in complying with
Environmental Protection Agency sulfur regulations.''.
(c) Effective Date.--The amendment made by this section
shall apply to expenses paid or incurred after December 31,
2002, in taxable years ending after such date.
SEC. 1325. CREDIT FOR PRODUCTION OF LOW SULFUR DIESEL FUEL.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business-related credits), as amended
by this Act, is amended by adding at the end the following
new section:
``SEC. 45I. CREDIT FOR PRODUCTION OF LOW SULFUR DIESEL FUEL.
``(a) In General.--For purposes of section 38, the amount
of the low sulfur diesel fuel production credit determined
under this section with respect to any facility of a small
business refiner is an amount equal to 5 cents for each
gallon of low sulfur diesel fuel produced during the taxable
year by such small business refiner at such facility.
``(b) Maximum Credit.--
``(1) In general.--The aggregate credit determined under
subsection (a) for any taxable year with respect to any
facility shall not exceed--
``(A) 25 percent of the qualified capital costs incurred by
the small business refiner with respect to such facility,
reduced by
``(B) the aggregate credits determined under this section
for all prior taxable years with respect to such facility.
``(2) Reduced percentage.--In the case of a small business
refiner with average daily domestic refinery runs for the 1-
year period ending on December 31, 2002, in excess of 155,000
barrels, the number of percentage points described in
paragraph (1) shall be reduced (not below zero) by the
product of such number (before the application of this
paragraph) and the ratio of such excess to 50,000 barrels.
``(c) Definitions and Special Rule.--For purposes of this
section--
``(1) Small business refiner.--The term `small business
refiner' means, with respect to any taxable year, a refiner
of crude oil--
``(A) with respect to which not more than 1,500 individuals
are engaged in the refinery operations of the business on any
day during such taxable year, and
``(B) the average daily domestic refinery run or average
retained production of which for all facilities of the
taxpayer for the 1-year period ending on December 31, 2002,
did not exceed 205,000 barrels.
``(2) Qualified capital costs.--The term `qualified capital
costs' means, with respect to any facility, those costs paid
or incurred during the applicable period for compliance with
the applicable EPA regulations with respect to such facility,
including expenditures for the construction of new process
operation units or the dismantling and reconstruction of
existing process units to be used in the production of low
sulfur diesel fuel, associated adjacent or offsite equipment
(including tankage, catalyst, and power supply), engineering,
construction period interest, and sitework.
``(3) Applicable epa regulations.--The term `applicable EPA
regulations' means the Highway Diesel Fuel Sulfur Control
Requirements of the Environmental Protection Agency.
``(4) Applicable period.--The term `applicable period'
means, with respect to any facility, the period beginning on
January 1, 2003, and ending on the earlier of the date which
is 1 year after the date on which the taxpayer must comply
with the applicable EPA regulations with respect to such
facility or December 31, 2009.
[[Page 29215]]
``(5) Low sulfur diesel fuel.--The term `low sulfur diesel
fuel' means diesel fuel with a sulfur content of 15 parts per
million or less.
``(d) Reduction in Basis.--For purposes of this subtitle,
if a credit is determined under this section for any
expenditure with respect to any property, the increase in
basis of such property which would (but for this subsection)
result from such expenditure shall be reduced by the amount
of the credit so determined.
``(e) Special Rule for Determination of Refinery Runs.--For
purposes this section and section 179C(b), in the calculation
of average daily domestic refinery run or retained
production, only refineries which on April 1, 2003, were
refineries of the refiner or a related person (within the
meaning of section 613A(d)(3)), shall be taken into account.
``(f) Certification.--
``(1) Required.--No credit shall be allowed unless, not
later than the date which is 30 months after the first day of
the first taxable year in which the low sulfur diesel fuel
production credit is allowed with respect to a facility, the
small business refiner obtains certification from the
Secretary, after consultation with the Administrator of the
Environmental Protection Agency, that the taxpayer's
qualified capital costs with respect to such facility will
result in compliance with the applicable EPA regulations.
``(2) Contents of application.--An application for
certification shall include relevant information regarding
unit capacities and operating characteristics sufficient for
the Secretary, after consultation with the Administrator of
the Environmental Protection Agency, to determine that such
qualified capital costs are necessary for compliance with the
applicable EPA regulations.
``(3) Review period.--Any application shall be reviewed and
notice of certification, if applicable, shall be made within
60 days of receipt of such application. In the event the
Secretary does not notify the taxpayer of the results of such
certification within such period, the taxpayer may presume
the certification to be issued until so notified.
``(4) Statute of limitations.--With respect to the credit
allowed under this section--
``(A) the statutory period for the assessment of any
deficiency attributable to such credit shall not expire
before the end of the 3-year period ending on the date that
the review period described in paragraph (3) ends with
respect to the taxpayer, and
``(B) such deficiency may be assessed before the expiration
of such 3-year period notwithstanding the provisions of any
other law or rule of law which would otherwise prevent such
assessment.
``(g) Cooperative Organizations.--
``(1) Apportionment of credit.--
``(A) In general.--In the case of a cooperative
organization described in section 1381(a), any portion of the
credit determined under subsection (a) for the taxable year
may, at the election of the organization, be apportioned
among patrons eligible to share in patronage dividends on the
basis of the quantity or value of business done with or for
such patrons for the taxable year.
``(B) Form and effect of election.--An election under
subparagraph (A) for any taxable year shall be made on a
timely filed return for such year. Such election, once made,
shall be irrevocable for such taxable year.
``(2) Treatment of organizations and patrons.--
``(A) Organizations.--The amount of the credit not
apportioned to patrons pursuant to paragraph (1) shall be
included in the amount determined under subsection (a) for
the taxable year of the organization.
``(B) Patrons.--The amount of the credit apportioned to
patrons pursuant to paragraph (1) shall be included in the
amount determined under subsection (a) for the first taxable
year of each patron ending on or after the last day of the
payment period (as defined in section 1382(d)) for the
taxable year of the organization or, if earlier, for the
taxable year of each patron ending on or after the date on
which the patron receives notice from the cooperative of the
apportionment.
``(3) Special rule.--If the amount of a credit which has
been apportioned to any patron under this subsection is
decreased for any reason--
``(A) such amount shall not increase the tax imposed on
such patron, and
``(B) the tax imposed by this chapter on such organization
shall be increased by such amount.
The increase under subparagraph (B) shall not be treated as
tax imposed by this chapter for purposes of determining the
amount of any credit under this chapter or for purposes of
section 55.''.
(b) Credit Made Part of General Business Credit.--
Subsection (b) of section 38 (relating to general business
credit), as amended by this Act, is amended by striking
``plus'' at the end of paragraph (17), by striking the period
at the end of paragraph (18) and inserting ``, plus'', and by
adding at the end the following new paragraph:
``(19) in the case of a small business refiner, the low
sulfur diesel fuel production credit determined under section
45I(a).''.
(c) Denial of Double Benefit.--Section 280C (relating to
certain expenses for which credits are allowable) is amended
by adding at the end the following new subsection:
``(d) Low Sulfur Diesel Fuel Production Credit.--No
deduction shall be allowed for that portion of the expenses
otherwise allowable as a deduction for the taxable year which
is equal to the amount of the credit determined for the
taxable year under section 45I(a).''.
(d) Basis Adjustment.--Section 1016(a) (relating to
adjustments to basis), as amended by this Act, is amended by
striking ``and'' at the end of paragraph (33), by striking
the period at the end of paragraph (34) and inserting ``,
and'', and by adding at the end the following new paragraph:
``(35) in the case of a facility with respect to which a
credit was allowed under section 45I, to the extent provided
in section 45I(d).''.
(e) Deduction for Certain Unused Business Credits.--Section
196(c) (defining qualified business credits), as amended by
this Act, is amended by striking ``and'' at the end of
paragraph (12), by striking the period at the end of
paragraph (13) and inserting ``, and'', and by adding after
paragraph (13) the following new paragraph:
``(14) the low sulfur diesel fuel production credit
determined under section 45I(a).''.
(e) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1, as amended by this
Act, is amended by adding at the end the following new item:
``Sec. 45I. Credit for production of low sulfur diesel fuel.''.
(f) Effective Date.--The amendments made by this section
shall apply to expenses paid or incurred after December 31,
2002, in taxable years ending after such date.
SEC. 1326. DETERMINATION OF SMALL REFINER EXCEPTION TO OIL
DEPLETION DEDUCTION.
(a) In General.--Paragraph (4) of section 613A(d) (relating
to limitations on application of subsection (c)) is amended
to read as follows:
``(4) Certain refiners excluded.--If the taxpayer or 1 or
more related persons engages in the refining of crude oil,
subsection (c) shall not apply to the taxpayer for a taxable
year if the average daily refinery runs of the taxpayer and
such persons for the taxable year exceed 67,500 barrels. For
purposes of this paragraph, the average daily refinery runs
for any taxable year shall be determined by dividing the
aggregate refinery runs for the taxable year by the number of
days in the taxable year.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.
SEC. 1327. SALES OR DISPOSITIONS TO IMPLEMENT FEDERAL ENERGY
REGULATORY COMMISSION OR STATE ELECTRIC
RESTRUCTURING POLICY.
(a) In General.--Section 451 (relating to general rule for
taxable year of inclusion) is amended by adding at the end
the following new subsection:
``(i) Special Rule for Sales or Dispositions To Implement
Federal Energy Regulatory Commission or State Electric
Restructuring Policy.--
``(1) In general.--In the case of any qualifying electric
transmission transaction for which the taxpayer elects the
application of this section, qualified gain from such
transaction shall be recognized--
``(A) in the taxable year which includes the date of such
transaction to the extent the amount realized from such
transaction exceeds--
``(i) the cost of exempt utility property which is
purchased by the taxpayer during the 4-year period beginning
on such date, reduced (but not below zero) by
``(ii) any portion of such cost previously taken into
account under this subsection, and
``(B) ratably over the 8-taxable year period beginning with
the taxable year which includes the date of such transaction,
in the case of any such gain not recognized under
subparagraph (A).
``(2) Qualified gain.--For purposes of this subsection, the
term `qualified gain' means, with respect to any qualifying
electric transmission transaction in any taxable year--
``(A) any ordinary income derived from such transaction
which would be required to be recognized under section 1245
or 1250 for such taxable year (determined without regard to
this subsection), and
``(B) any income derived from such transaction in excess of
the amount described in subparagraph (A) which is required to
be included in gross income for such taxable year (determined
without regard to this subsection).
``(3) Qualifying electric transmission transaction.--For
purposes of this subsection, the term `qualifying electric
transmission transaction' means any sale or other disposition
before January 1, 2007, of--
``(A) property used in the trade or business of providing
electric transmission services, or
``(B) any stock or partnership interest in a corporation or
partnership, as the case may be, whose principal trade or
business consists of providing electric transmission
services,
but only if such sale or disposition is to an independent
transmission company.
``(4) Independent transmission company.--For purposes of
this subsection, the term `independent transmission company'
means--
``(A) an independent transmission provider approved by the
Federal Energy Regulatory Commission,
``(B) a person--
``(i) who the Federal Energy Regulatory Commission
determines in its authorization of the transaction under
section 203 of the Federal Power Act (16 U.S.C. 824b) or by
declaratory order is not a market participant within the
meaning of such Commission's rules applicable to independent
transmission providers, and
``(ii) whose transmission facilities to which the election
under this subsection applies are
[[Page 29216]]
under the operational control of a Federal Energy Regulatory
Commission-approved independent transmission provider before
the close of the period specified in such authorization, but
not later than the close of the period applicable under
subsection (a)(2)(B) as extended under paragraph (2), or
``(C) in the case of facilities subject to the jurisdiction
of the Public Utility Commission of Texas--
``(i) a person which is approved by that Commission as
consistent with Texas State law regarding an independent
transmission provider, or
``(ii) a political subdivision or affiliate thereof whose
transmission facilities are under the operational control of
a person described in clause (i).
``(5) Exempt utility property.--For purposes of this
subsection--
``(A) In general.--The term `exempt utility property' means
property used in the trade or business of--
``(i) generating, transmitting, distributing, or selling
electricity, or
``(ii) producing, transmitting, distributing, or selling
natural gas.
``(B) Nonrecognition of gain by reason of acquisition of
stock.--Acquisition of control of a corporation shall be
taken into account under this subsection with respect to a
qualifying electric transmission transaction only if the
principal trade or business of such corporation is a trade or
business referred to in subparagraph (A).
``(6) Special rule for consolidated groups.--In the case of
a corporation which is a member of an affiliated group filing
a consolidated return, any exempt utility property purchased
by another member of such group shall be treated as purchased
by such corporation for purposes of applying paragraph
(1)(A).
``(7) Time for assessment of deficiencies.--If the taxpayer
has made the election under paragraph (1) and any gain is
recognized by such taxpayer as provided in paragraph (1)(B),
then--
``(A) the statutory period for the assessment of any
deficiency, for any taxable year in which any part of the
gain on the transaction is realized, attributable to such
gain shall not expire prior to the expiration of 3 years from
the date the Secretary is notified by the taxpayer (in such
manner as the Secretary may by regulations prescribe) of the
purchase of exempt utility property or of an intention not to
purchase such property, and
``(B) such deficiency may be assessed before the expiration
of such 3-year period notwithstanding any law or rule of law
which would otherwise prevent such assessment.
``(8) Purchase.--For purposes of this subsection, the
taxpayer shall be considered to have purchased any property
if the unadjusted basis of such property is its cost within
the meaning of section 1012.
``(9) Election.--An election under paragraph (1) shall be
made at such time and in such manner as the Secretary may
require and, once made, shall be irrevocable.
``(10) Nonapplication of installment sales treatment.--
Section 453 shall not apply to any qualifying electric
transmission transaction with respect to which an election to
apply this subsection is made.''.
(b) Effective Date.--The amendments made by this section
shall apply to transactions occurring after the date of the
enactment of this Act, in taxable years ending after such
date.
SEC. 1328. MODIFICATIONS TO SPECIAL RULES FOR NUCLEAR
DECOMMISSIONING COSTS.
(a) Repeal of Limitation on Deposits Into Fund Based on
Cost of Service; Contributions After Funding Period.--
Subsection (b) of section 468A (relating to special rules for
nuclear decommissioning costs) is amended to read as follows:
``(b) Limitation on Amounts Paid Into Fund.--
``(1) In general.--The amount which a taxpayer may pay into
the Fund for any taxable year shall not exceed the ruling
amount applicable to such taxable year.
``(2) Contributions after funding period.--Notwithstanding
any other provision of this section, a taxpayer may pay into
the Fund in any taxable year after the last taxable year to
which the ruling amount applies. Payments may not be made
under the preceding sentence to the extent such payments
would cause the assets of the Fund to exceed the nuclear
decommissioning costs allocable to the taxpayer's current or
former interest in the nuclear power plant to which the Fund
relates. The limitation under the preceding sentence shall be
determined by taking into account a reasonable rate of
inflation for the nuclear decommissioning costs and a
reasonable after-tax rate of return on the assets of the Fund
until such assets are anticipated to be expended.''.
(b) Clarification of Treatment of Fund Transfers.--Section
468A(e) (relating to Nuclear Decommissioning Reserve Fund) is
amended by adding at the end the following new paragraph:
``(8) Treatment of fund transfers.--
``(A) In general.--If, in connection with the transfer of
the taxpayer's interest in a nuclear power plant, the
taxpayer transfers the Fund with respect to such power plant
to the transferee of such interest and the transferee elects
to continue the application of this section to such Fund--
``(i) the transfer of such Fund shall not cause such Fund
to be disqualified from the application of this section, and
``(ii) no amount shall be treated as distributed from such
Fund, or be includable in gross income, by reason of such
transfer.
``(B) Special rules if transferor is tax-exempt entity.--
``(i) In general.--If--
``(I) a person exempt from taxation under this title
transfers an interest in a nuclear power plant,
``(II) such person has set aside amounts for nuclear
decommissioning which are transferred to the transferee of
the interest, and
``(III) the transferee elects the application of this
subparagraph no later than the due date (including
extensions) of its return of tax for the taxable year in
which the transfer occurs,
the amounts so set aside shall be treated as if contributed
by such person to a Fund immediately before the transfer and
then transferred in the Fund to the transferee.
``(ii) Limitation.--The amount treated as transferred to a
Fund under clause (i) shall not exceed the amount which bears
the same ratio to the present value of the nuclear
decommissioning costs of the transferor with respect to the
nuclear power plant as the number of years the nuclear power
plant has been in service bears to the estimated useful life
of such power plant.
``(iii) Basis.--The transferee's basis in any asset treated
as transferred in the Fund shall be the same as the adjusted
basis of such asset in the hands of the transferor.
``(iv) Ruling amount required.--This subparagraph shall not
apply to any transfer unless the transferee requests from the
Secretary a schedule of ruling amounts.
``(v) Election disregarded.--An election under this
subparagraph shall be disregarded in determining the Federal
income tax of the transferor.''
(c) Treatment of Certain Decommissioning Costs.--
(1) In general.--Section 468A is amended by redesignating
subsections (f) and (g) as subsections (g) and (h),
respectively, and by inserting after subsection (e) the
following new subsection:
``(f) Transfers Into Qualified Funds.--
``(1) In general.--Notwithstanding subsection (b), any
taxpayer maintaining a Fund to which this section applies
with respect to a nuclear power plant may transfer into such
Fund not more than an amount equal to the present value of
the portion of the total nuclear decommissioning costs with
respect to such nuclear power plant previously excluded for
such nuclear power plant under subsection (d)(2)(A) as in
effect immediately before the date of the enactment of the
Energy Tax Policy Act of 2003.
``(2) Deduction for amounts transferred.--
``(A) In general.--Except as provided in subparagraph (C),
the deduction allowed by subsection (a) for any transfer
permitted by this subsection shall be allowed ratably over
the remaining estimated useful life (within the meaning of
subsection (d)(2)(A)) of the nuclear power plant beginning
with the taxable year during which the transfer is made.
``(B) Denial of deduction for previously deducted
amounts.--No deduction shall be allowed for any transfer
under this subsection of an amount for which a deduction was
previously allowed to the taxpayer (or a predecessor) or a
corresponding amount was not included in gross income of the
taxpayer (or a predecessor). For purposes of the preceding
sentence, a ratable portion of each transfer shall be treated
as being from previously deducted or excluded amounts to the
extent thereof.
``(C) Transfers of qualified funds.--If--
``(i) any transfer permitted by this subsection is made to
any Fund to which this section applies, and
``(ii) such Fund is transferred thereafter,
any deduction under this subsection for taxable years ending
after the date that such Fund is transferred shall be allowed
to the transferor for the taxable year which includes such
date.
``(D) Special rules.--
``(i) Gain or loss not recognized.--No gain or loss shall
be recognized on any transfer permitted by this subsection.
``(ii) Transfers of appreciated property.--If appreciated
property is transferred in a transfer permitted by this
subsection, the amount of the deduction shall not exceed the
adjusted basis of such property.
``(3) New ruling amount required.--Paragraph (1) shall not
apply to any transfer unless the taxpayer requests from the
Secretary a new schedule of ruling amounts in connection with
such transfer.
``(4) No basis in qualified funds.--Notwithstanding any
other provision of law, the taxpayer's basis in any Fund to
which this section applies shall not be increased by reason
of any transfer permitted by this subsection.''.
(2) New ruling amount to take into account total costs.--
Subparagraph (A) of section 468A(d)(2) (defining ruling
amount) is amended to read as follows:
``(A) fund the total nuclear decommissioning costs with
respect to such power plant over the estimated useful life of
such power plant, and''.
(d) Technical Amendments.--Section 468A(e)(2) (relating to
taxation of Fund) is amended--
(1) by striking ``rate set forth in subparagraph (B)'' in
subparagraph (A) and inserting ``rate of 20 percent'',
(2) by striking subparagraph (B), and
(3) by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C), respectively.
[[Page 29217]]
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2003.
SEC. 1329. TREATMENT OF CERTAIN INCOME OF COOPERATIVES.
(a) Income From Open Access and Nuclear Decommissioning
Transactions.--
(1) In general.--Subparagraph (C) of section 501(c)(12) is
amended by striking ``or'' at the end of clause (i), by
striking clause (ii), and by adding at the end the following
new clauses:
``(ii) from any provision or sale of electric energy
transmission services or ancillary services if such services
are provided on a nondiscriminatory open access basis under
an open access transmission tariff approved or accepted by
FERC or under an independent transmission provider agreement
approved or accepted by FERC (other than income received or
accrued directly or indirectly from a member),
``(iii) from the provision or sale of electric energy
distribution services or ancillary services if such services
are provided on a nondiscriminatory open access basis to
distribute electric energy not owned by the mutual or
electric cooperative company--
``(I) to end-users who are served by distribution
facilities not owned by such company or any of its members
(other than income received or accrued directly or indirectly
from a member), or
``(II) generated by a generation facility not owned or
leased by such company or any of its members and which is
directly connected to distribution facilities owned by such
company or any of its members (other than income received or
accrued directly or indirectly from a member),
``(iv) from any nuclear decommissioning transaction, or
``(v) from any asset exchange or conversion transaction.''.
(2) Definitions and special rules.--Paragraph (12) of
section 501(c) is amended by adding at the end the following
new subparagraphs:
``(E) For purposes of subparagraph (C)(ii), the term `FERC'
means the Federal Energy Regulatory Commission and references
to such term shall be treated as including the Public Utility
Commission of Texas with respect to any ERCOT utility (as
defined in section 212(k)(2)(B) of the Federal Power Act (16
U.S.C. 824k(k)(2)(B))).
``(F) For purposes of subparagraph (C)(iii), the term
`nuclear decommissioning transaction' means--
``(i) any transfer into a trust, fund, or instrument
established to pay any nuclear decommissioning costs if the
transfer is in connection with the transfer of the mutual or
cooperative electric company's interest in a nuclear power
plant or nuclear power plant unit,
``(ii) any distribution from any trust, fund, or instrument
established to pay any nuclear decommissioning costs, or
``(iii) any earnings from any trust, fund, or instrument
established to pay any nuclear decommissioning costs.
``(G) For purposes of subparagraph (C)(iv), the term `asset
exchange or conversion transaction' means any voluntary
exchange or involuntary conversion of any property related to
generating, transmitting, distributing, or selling electric
energy by a mutual or cooperative electric company, the gain
from which qualifies for deferred recognition under section
1031 or 1033, but only if the replacement property acquired
by such company pursuant to such section constitutes property
which is used, or to be used, for--
``(i) generating, transmitting, distributing, or selling
electric energy, or
``(ii) producing, transmitting, distributing, or selling
natural gas.''.
(b) Treatment of Income From Load Loss Transactions, Etc.--
Paragraph (12) of section 501(c), as amended by subsection
(a)(2), is amended by adding after subparagraph (G) the
following new subparagraph:
``(H)(i) In the case of a mutual or cooperative electric
company described in this paragraph or an organization
described in section 1381(a)(2)(C), income received or
accrued from a load loss transaction shall be treated as an
amount collected from members for the sole purpose of meeting
losses and expenses.
``(ii) For purposes of clause (i), the term `load loss
transaction' means any wholesale or retail sale of electric
energy (other than to members) to the extent that the
aggregate sales during the recovery period do not exceed the
load loss mitigation sales limit for such period.
``(iii) For purposes of clause (ii), the load loss
mitigation sales limit for the recovery period is the sum of
the annual load losses for each year of such period.
``(iv) For purposes of clause (iii), a mutual or
cooperative electric company's annual load loss for each year
of the recovery period is the amount (if any) by which--
``(I) the megawatt hours of electric energy sold during
such year to members of such electric company are less than
``(II) the megawatt hours of electric energy sold during
the base year to such members.
``(v) For purposes of clause (iv)(II), the term `base year'
means--
``(I) the calendar year preceding the start-up year, or
``(II) at the election of the mutual or cooperative
electric company, the second or third calendar years
preceding the start-up year.
``(vi) For purposes of this subparagraph, the recovery
period is the 7-year period beginning with the start-up year.
``(vii) For purposes of this subparagraph, the start-up
year is the first year that the mutual or cooperative
electric company offers nondiscriminatory open access or the
calendar year which includes the date of the enactment of
this subparagraph, if later, at the election of such company.
``(viii) A company shall not fail to be treated as a mutual
or cooperative electric company for purposes of this
paragraph or as a corporation operating on a cooperative
basis for purposes of section 1381(a)(2)(C) by reason of the
treatment under clause (i).
``(ix) For purposes of subparagraph (A), in the case of a
mutual or cooperative electric company, income received, or
accrued, indirectly from a member shall be treated as an
amount collected from members for the sole purpose of meeting
losses and expenses.''.
(c) Exception From Unrelated Business Taxable Income.--
Subsection (b) of section 512 (relating to modifications) is
amended by adding at the end the following new paragraph:
``(18) Treatment of mutual or cooperative electric
companies.--In the case of a mutual or cooperative electric
company described in section 501(c)(12), there shall be
excluded income which is treated as member income under
subparagraph (H) thereof.''.
(d) Cross Reference.--Section 1381 is amended by adding at
the end the following new subsection:
``(c) Cross Reference.--
``For treatment of income from load loss transactions of
organizations described in subsection (a)(2)(C), see section
501(c)(12)(H).''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 1330. ARBITRAGE RULES NOT TO APPLY TO PREPAYMENTS FOR
NATURAL GAS.
(a) In General.--Subsection (b) of section 148 (relating to
higher yielding investments) is amended by adding at the end
the following new paragraph:
``(4) Safe harbor for prepaid natural gas.--
``(A) In general.--The term `investment-type property' does
not include a prepayment under a qualified natural gas supply
contract.
``(B) Qualified natural gas supply contract.--For purposes
of this paragraph, the term `qualified natural gas supply
contract' means any contract to acquire natural gas for
resale by a utility owned by a governmental unit if the
amount of gas permitted to be acquired under the contract by
the utility during any year does not exceed the sum of--
``(i) the annual average amount during the testing period
of natural gas purchased (other than for resale) by customers
of such utility who are located within the service area of
such utility, and
``(ii) the amount of natural gas to be used to transport
the prepaid natural gas to the utility during such year.
``(C) Natural gas used to generate electricity.--Natural
gas used to generate electricity shall be taken into account
in determining the average under subparagraph (B)(i)--
``(i) only if the electricity is generated by a utility
owned by a governmental unit, and
``(ii) only to the extent that the electricity is sold
(other than for resale) to customers of such utility who are
located within the service area of such utility.
``(D) Adjustments for changes in customer base.--
``(i) New business customers.--If--
``(I) after the close of the testing period and before the
date of issuance of the issue, the utility owned by a
governmental unit enters into a contract to supply natural
gas (other than for resale) for a business use at a property
within the service area of such utility, and
``(II) the utility did not supply natural gas to such
property during the testing period or the ratable amount of
natural gas to be supplied under the contract is
significantly greater than the ratable amount of gas supplied
to such property during the testing period,
then a contract shall not fail to be treated as a qualified
natural gas supply contract by reason of supplying the
additional natural gas under the contract referred to in
subclause (I).
``(ii) Lost customers.--The average under subparagraph
(B)(i) shall not exceed the annual amount of natural gas
reasonably expected to be purchased (other than for resale)
by persons who are located within the service area of such
utility and who, as of the date of issuance of the issue, are
customers of such utility.
``(E) Ruling requests.--The Secretary may increase the
average under subparagraph (B)(i) for any period if the
utility owned by the governmental unit establishes to the
satisfaction of the Secretary that, based on objective
evidence of growth in natural gas consumption or population,
such average would otherwise be insufficient for such period.
``(F) Adjustment for natural gas otherwise on hand.--
``(i) In general.--The amount otherwise permitted to be
acquired under the contract for any period shall be reduced
by--
``(I) the applicable share of natural gas held by the
utility on the date of issuance of the issue, and
``(II) the natural gas (not taken into account under
subclause (I)) which the utility has a right to acquire
during such period (determined as of the date of issuance of
the issue).
``(ii) Applicable share.--For purposes of the clause (i),
the term `applicable share' means,
[[Page 29218]]
with respect to any period, the natural gas allocable to such
period if the gas were allocated ratably over the period to
which the prepayment relates.
``(G) Intentional acts.--Subparagraph (A) shall cease to
apply to any issue if the utility owned by the governmental
unit engages in any intentional act to render the volume of
natural gas acquired by such prepayment to be in excess of
the sum of--
``(i) the amount of natural gas needed (other than for
resale) by customers of such utility who are located within
the service area of such utility, and
``(ii) the amount of natural gas used to transport such
natural gas to the utility.
``(H) Testing period.--For purposes of this paragraph, the
term `testing period' means, with respect to an issue, the
most recent 5 calendar years ending before the date of
issuance of the issue.
``(I) Service area.--For purposes of this paragraph, the
service area of a utility owned by a governmental unit shall
be comprised of--
``(i) any area throughout which such utility provided at
all times during the testing period--
``(I) in the case of a natural gas utility, natural gas
transmission or distribution services, and
``(II) in the case of an electric utility, electricity
distribution services,
``(ii) any area within a county contiguous to the area
described in clause (i) in which retail customers of such
utility are located if such area is not also served by
another utility providing natural gas or electricity
services, as the case may be, and
``(iii) any area recognized as the service area of such
utility under State or Federal law.''.
(b) Private Loan Financing Test Not To Apply to Prepayments
for Natural Gas.--Paragraph (2) of section 141(c) (providing
exceptions to the private loan financing test) is amended by
striking ``or'' at the end of subparagraph (A), by striking
the period at the end of subparagraph (B) and inserting ``,
or'', and by adding at the end the following new
subparagraph:
``(C) is a qualified natural gas supply contract (as
defined in section 148(b)(4)).''.
(c) Exception for Qualified Electric and Natural Gas Supply
Contracts.--Section 141(d) is amended by adding at the end
the following new paragraph:
``(7) Exception for qualified electric and natural gas
supply contracts.--The term `nongovernmental output property'
shall not include any contract for the prepayment of
electricity or natural gas which is not investment property
under section 148(b)(2).''.
(d) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
Subtitle C--Production
PART I--OIL AND GAS PROVISIONS
SEC. 1341. OIL AND GAS FROM MARGINAL WELLS.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business credits), as amended by this
Act, is amended by adding at the end the following:
``SEC. 45J. CREDIT FOR PRODUCING OIL AND GAS FROM MARGINAL
WELLS.
``(a) General Rule.--For purposes of section 38, the
marginal well production credit for any taxable year is an
amount equal to the product of--
``(1) the credit amount, and
``(2) the qualified credit oil production and the qualified
natural gas production which is attributable to the taxpayer.
``(b) Credit Amount.--For purposes of this section--
``(1) In general.--The credit amount is--
``(A) $3 per barrel of qualified crude oil production, and
``(B) 50 cents per 1,000 cubic feet of qualified natural
gas production.
``(2) Reduction as oil and gas prices increase.--
``(A) In general.--The $3 and 50 cents amounts under
paragraph (1) shall each be reduced (but not below zero) by
an amount which bears the same ratio to such amount
(determined without regard to this paragraph) as--
``(i) the excess (if any) of the applicable reference price
over $15 ($1.67 for qualified natural gas production), bears
to
``(ii) $3 ($0.33 for qualified natural gas production).
The applicable reference price for a taxable year is the
reference price of the calendar year preceding the calendar
year in which the taxable year begins.
``(B) Inflation adjustment.--In the case of any taxable
year beginning in a calendar year after 2003, each of the
dollar amounts contained in subparagraph (A) shall be
increased to an amount equal to such dollar amount multiplied
by the inflation adjustment factor for such calendar year
(determined under section 43(b)(3)(B) by substituting `2002'
for `1990').
``(C) Reference price.--For purposes of this paragraph, the
term `reference price' means, with respect to any calendar
year--
``(i) in the case of qualified crude oil production, the
reference price determined under section 45K(d)(2)(C), and
``(ii) in the case of qualified natural gas production, the
Secretary's estimate of the annual average wellhead price per
1,000 cubic feet for all domestic natural gas.
``(c) Qualified Crude Oil and Natural Gas Production.--For
purposes of this section--
``(1) In general.--The terms `qualified crude oil
production' and `qualified natural gas production' mean
domestic crude oil or natural gas which is produced from a
qualified marginal well.
``(2) Limitation on amount of production which may
qualify.--
``(A) In general.--Crude oil or natural gas produced during
any taxable year from any well shall not be treated as
qualified crude oil production or qualified natural gas
production to the extent production from the well during the
taxable year exceeds 1,095 barrels or barrel-of-oil
equivalents (as defined in section 45K(d)(5)).
``(B) Proportionate reductions.--
``(i) Short taxable years.--In the case of a short taxable
year, the limitations under this paragraph shall be
proportionately reduced to reflect the ratio which the number
of days in such taxable year bears to 365.
``(ii) Wells not in production entire year.--In the case of
a well which is not capable of production during each day of
a taxable year, the limitations under this paragraph
applicable to the well shall be proportionately reduced to
reflect the ratio which the number of days of production
bears to the total number of days in the taxable year.
``(3) Definitions.--
``(A) Qualified marginal well.--The term `qualified
marginal well' means a domestic well--
``(i) the production from which during the taxable year is
treated as marginal production under section 613A(c)(6), or
``(ii) which, during the taxable year--
``(I) has average daily production of not more than 25
barrel-of-oil equivalents (as so defined), and
``(II) produces water at a rate not less than 95 percent of
total well effluent.
``(B) Crude oil, etc.--The terms `crude oil', `natural
gas', `domestic', and `barrel' have the meanings given such
terms by section 613A(e).
``(d) Other Rules.--
``(1) Production attributable to the taxpayer.--In the case
of a qualified marginal well in which there is more than one
owner of operating interests in the well and the crude oil or
natural gas production exceeds the limitation under
subsection (c)(2), qualifying crude oil production or
qualifying natural gas production attributable to the
taxpayer shall be determined on the basis of the ratio which
taxpayer's revenue interest in the production bears to the
aggregate of the revenue interests of all operating interest
owners in the production.
``(2) Operating interest required.--Any credit under this
section may be claimed only on production which is
attributable to the holder of an operating interest.
``(3) Production from nonconventional sources excluded.--In
the case of production from a qualified marginal well which
is eligible for the credit allowed under section 45K for the
taxable year, no credit shall be allowable under this section
unless the taxpayer elects not to claim the credit under
section 45K with respect to the well.''.
(b) Credit Treated as Business Credit.--Section 38(b), as
amended by this Act, is amended by striking ``plus'' at the
end of paragraph (18), by striking the period at the end of
paragraph (19) and inserting ``, plus'', and by adding at the
end the following:
``(20) the marginal oil and gas well production credit
determined under section 45J(a).''.
(c) Carryback.--Subsection (a) of section 39 (relating to
carryback and carryforward of unused credits generally) is
amended by adding at the end the following:
``(3) 5-year carryback for marginal oil and gas well
production credit.--Notwithstanding subsection (d), in the
case of the marginal oil and gas well production credit--
``(A) this section shall be applied separately from the
business credit (other than the marginal oil and gas well
production credit),
``(B) paragraph (1) shall be applied by substituting `5
taxable years' for `1 taxable years' in subparagraph (A)
thereof, and
``(C) paragraph (2) shall be applied--
``(i) by substituting `25 taxable years' for `21 taxable
years' in subparagraph (A) thereof, and
``(ii) by substituting `24 taxable years' for `20 taxable
years' in subparagraph (B) thereof.''.
(d) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1, as amended by this
Act, is amended by adding at the end the following:
``Sec. 45J. Credit for producing oil and gas from marginal wells.''.
(e) Effective Date.--The amendments made by this section
shall apply to production in taxable years beginning after
December 31, 2003.
SEC. 1342. TEMPORARY SUSPENSION OF LIMITATION BASED ON 65
PERCENT OF TAXABLE INCOME AND EXTENSION OF
SUSPENSION OF TAXABLE INCOME LIMIT WITH RESPECT
TO MARGINAL PRODUCTION.
(a) Limitation Based on 65 Percent of Taxable Income.--
Subsection (d) of section 613A (relating to limitation on
percentage depletion in case of oil and gas wells) is amended
by adding at the end the following new paragraph:
``(6) Temporary suspension of taxable income limit.--
Paragraph (1) shall not apply to taxable years beginning
after December 31, 2003, and before January 1, 2005,
including with respect to amounts carried under the second
sentence of paragraph (1) to such taxable years.''.
(b) Extension of Suspension of Taxable Income Limit With
Respect to Marginal Production.--Subparagraph (H) of section
613A(c)(6) (relating to temporary suspension of taxable
income limit with respect to marginal
[[Page 29219]]
production) is amended by striking ``2004'' and inserting
``2005''.
(c) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31,
2003.
SEC. 1343. AMORTIZATION OF DELAY RENTAL PAYMENTS.
(a) In General.--Section 167 (relating to depreciation) is
amended by redesignating subsection (h) as subsection (i) and
by inserting after subsection (g) the following new
subsection:
``(h) Amortization of Delay Rental Payments for Domestic
Oil and Gas Wells.--
``(1) In general.--Any delay rental payment paid or
incurred in connection with the development of oil or gas
wells within the United States (as defined in section 638)
shall be allowed as a deduction ratably over the 24-month
period beginning on the date that such payment was paid or
incurred.
``(2) Half-year convention.--For purposes of paragraph (1),
any payment paid or incurred during the taxable year shall be
treated as paid or incurred on the mid-point of such taxable
year.
``(3) Exclusive method.--Except as provided in this
subsection, no depreciation or amortization deduction shall
be allowed with respect to such payments.
``(4) Treatment upon abandonment.--If any property to which
a delay rental payment relates is retired or abandoned during
the 24-month period described in paragraph (1), no deduction
shall be allowed on account of such retirement or abandonment
and the amortization deduction under this subsection shall
continue with respect to such payment.
``(5) Delay rental payments.--For purposes of this
subsection, the term `delay rental payment' means an amount
paid for the privilege of deferring development of an oil or
gas well under an oil or gas lease.''.
(b) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred in taxable years
beginning after the date of the enactment of this Act.
SEC. 1344. AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL
EXPENDITURES.
(a) In General.--Section 167 (relating to depreciation), as
amended by this Act, is amended by redesignating subsection
(i) as subsection (j) and by inserting after subsection (h)
the following new subsection:
``(i) Amortization of Geological and Geophysical
Expenditures.--
``(1) In general.--Any geological and geophysical expenses
paid or incurred in connection with the exploration for, or
development of, oil or gas within the United States (as
defined in section 638) shall be allowed as a deduction
ratably over the 24-month period beginning on the date that
such expense was paid or incurred.
``(2) Special rules.--For purposes of this subsection,
rules similar to the rules of paragraphs (2), (3), and (4) of
subsection (h) shall apply.''.
(b) Conforming Amendment.--Section 263A(c)(3) is amended by
inserting ``167(h), 167(i),'' after ``under section''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred in taxable years
beginning after the date of the enactment of this Act.
SEC. 1345. EXTENSION AND MODIFICATION OF CREDIT FOR PRODUCING
FUEL FROM A NONCONVENTIONAL SOURCE.
(a) In General.--Section 29 (relating to credit for
producing fuel from a nonconventional source) is amended by
adding at the end the following new subsection:
``(h) Extension for Other Facilities.--Notwithstanding
subsection (f)--
``(1) New oil and gas wells and facilities.--In the case of
a well or facility for producing qualified fuels described in
subparagraph (A) or (B) of subsection (c)(1) which was
drilled or placed in service after the date of the enactment
of this subsection and before January 1, 2007, this section
shall apply with respect to such fuels produced at such well
or facility and sold during the period--
``(A) beginning on the later of January 1, 2004, or the
date that such well is drilled or such facility is placed in
service, and
``(B) ending on the earlier of the date which is 4 years
after the date such period began or December 31, 2009.
``(2) Old oil and gas wells and facilities.--In the case of
a well or facility producing qualified fuels described in
subparagraph (A) or (B)(i) of subsection (c)(1) or a facility
producing natural gas and byproducts by coal gasification
from lignite, subsection (f)(2) shall be applied by
substituting `2008' for `2003' with respect to wells and
facilities described in subsection (f)(1) with respect to
such fuels.
``(3) Extension for facilities producing qualified fuel
from landfill gas.--
``(A) In general.--In the case of a facility for producing
qualified fuel from landfill gas which was placed in service
after June 30, 1998, and before January 1, 2007, this section
shall apply to fuel produced at such facility and sold during
the period--
``(i) beginning on the later of January 1, 2004, or the
date that such facility is placed in service, and
``(ii) ending on the earlier of the date which is 4 years
after the date such period began or December 31, 2009.
``(B) Reduction of credit for certain landfill
facilities.--In the case of a facility to which subparagraph
(A) applies and which is located at a landfill which is
required pursuant to section 60.751(b)(2) or section 60.33c
of title 40, Code of Federal Regulations (as in effect on
April 3, 2003) to install and operate a collection and
control system which captures gas generated within the
landfill, subsection (a)(1) shall be applied to gas so
captured by substituting `$2' for `$3' for the taxable year
during which such system is required to be installed and
operated.
``(4) Facilities producing fuels from agricultural and
animal waste.--
``(A) In general.--In the case of any facility for
producing liquid, gaseous, or solid fuels from qualified
agricultural and animal wastes, including such fuels when
used as feedstocks, which is placed in service after the date
of the enactment of this subsection and before January 1,
2007, this section shall apply with respect to fuel produced
at such facility and sold during the period--
``(i) beginning on the later of January 1, 2004, or the
date that such facility is placed in service, and
``(ii) ending on the earlier of the date which is 4 years
after the date such period began or December 31, 2009.
``(B) Qualified agricultural and animal waste.--For
purposes of this paragraph, the term `qualified agricultural
and animal waste' means agriculture and animal waste,
including by-products, packaging, and any materials
associated with the processing, feeding, selling,
transporting, or disposal of agricultural or animal products
or wastes.
``(5) Facilities producing refined coal.--
``(A) In general.--In the case of a facility described in
subparagraph (C) for producing refined coal which is placed
in service after the date of the enactment of this subsection
and before January 1, 2008, this section shall apply with
respect to fuel produced at such facility and sold before the
close of the 5-year period beginning on the date such
facility is placed in service.
``(B) Refined coal.--For purposes of this paragraph, the
term `refined coal' means a fuel which is a liquid, gaseous,
or solid synthetic fuel produced from coal (including
lignite) or high carbon fly ash, including such fuel used as
a feedstock.
``(C) Covered facilities.--
``(i) In general.--A facility is described in this
subparagraph if such facility produces refined coal using a
technology which the taxpayer certifies (in such manner as
the Secretary may prescribe) results in--
``(I) a qualified emission reduction, and
``(II) a qualified enhanced value.
``(ii) Qualified emission reduction.--For purposes of this
subparagraph, the term `qualified emission reduction' means a
reduction of at least 20 percent of the emissions of nitrogen
oxide and either sulfur dioxide or mercury released when
burning the refined coal (excluding any dilution caused by
materials combined or added during the production process),
as compared to the emissions released when burning the
feedstock coal or comparable coal predominantly available in
the marketplace as of January 1, 2003.
``(iii) Qualified enhanced value.--For purposes of this
subparagraph, the term `qualified enhanced value' means an
increase of at least 50 percent in the market value of the
refined coal (excluding any increase caused by materials
combined or added during the production process), as compared
to the value of the feedstock coal.
``(iv) Advanced clean coal technology units excluded.--A
facility described in this subparagraph shall not include any
advanced clean coal technology unit (as defined in section
48A(e)).
``(6) Coalmine gas.--
``(A) In general.--This section shall apply to coalmine
gas--
``(i) captured or extracted by the taxpayer during the
period beginning on the day after the date of the enactment
of this subsection and ending on December 31, 2006, and
``(ii) utilized as a fuel source or sold by or on behalf of
the taxpayer to an unrelated person during such period.
``(B) Coalmine gas.--For purposes of this paragraph, the
term `coalmine gas' means any methane gas which is--
``(i) liberated during or as a result of coal mining
operations, or
``(ii) extracted up to 10 years in advance of coal mining
operations as part of a specific plan to mine a coal deposit.
``(C) Special rule for advanced extraction.--In the case of
coalmine gas which is captured in advance of coal mining
operations, the credit under subsection (a) shall be allowed
only after the date the coal extraction occurs in the
immediate area where the coalmine gas was removed.
``(D) Noncompliance with pollution laws.--This paragraph
shall not apply to the capture or extraction of coalmine gas
from coal mining operations with respect to any period in
which such coal mining operations are not in compliance with
applicable Federal pollution prevention, control, and permit
requirements.
``(7) Coke and coke gas.--In the case of a facility for
producing coke or coke gas which was placed in service before
January 1, 1993, or after June 30, 1998, and before January
1, 2007, this section shall apply with respect to coke and
coke gas produced in such facility and sold during the during
the period--
``(A) beginning on the later of January 1, 2004, or the
date that such facility is placed in service, and
``(B) ending on the earlier of the date which is 4 years
after the date such period began or December 31, 2009.
[[Page 29220]]
``(8) Special rules.--In determining the amount of credit
allowable under this section solely by reason of this
subsection--
``(A) Fuels treated as qualified fuels.--Any fuel described
in paragraph (3), (4), (5), or (6) shall be treated as a
qualified fuel for purposes of this section.
``(B) Daily limit.--The amount of qualified fuels sold
during any taxable year which may be taken into account by
reason of this subsection with respect to any property or
facility shall not exceed an average barrel-of-oil equivalent
of 200,000 cubic feet of natural gas per day. Days before the
date the property or facility is placed in service shall not
be taken into account in determining such average.
``(C) Extension period to commence with unadjusted credit
amount and new phaseout adjustment.--For purposes of applying
subsection (b)(2), in the case of fuels sold after 2003--
``(i) paragraphs (1)(A) and (2) of subsection (b) shall be
applied by substituting `$35.00' for `$23.50', and
``(ii) subparagraph (B) of subsection (d)(2) shall be
applied by substituting `2002' for `1979'.
``(D) Denial of double benefit.--This subsection shall not
apply to any facility producing qualified fuels for which a
credit was allowed under this section for the taxable year or
any preceding taxable year by reason of subsection (g).''.
(b) Treatment as Business Credit.--
(1) Credit moved to subpart relating to business related
credits.--The Internal Revenue Code of 1986 is amended by
redesignating section 29, as amended by this Act, as section
45K and by moving section 45K (as so redesignated) from
subpart B of part IV of subchapter A of chapter 1 to the end
of subpart D of part IV of subchapter A of chapter 1.
(2) Credit Treated as Business Credit.--Section 38(b) is
amended by striking ``plus'' at the end of paragraph (19), by
striking the period at the end of paragraph (20) and
inserting ``, plus'', and by adding at the end the following:
``(21) the nonconventional source production credit
determined under section 45K(a).''.
(3) Conforming Amendments.--
(A) Section 30(b)(2)(A), as redesignated by section
1317(a), is amended by striking ``sections 27 and 29'' and
inserting ``section 27''.
(B) Sections 43(b)(2) and 613A(c)(6)(C) are each amended by
striking ``section 29(d)(2)(C)'' and inserting ``section
45K(d)(2)(C)''.
(C) Section 45K(a), as redesignated by paragraph (1), is
amended by striking ``At the election of the taxpayer, there
shall be allowed as a credit against the tax imposed by this
chapter for the taxable year'' and inserting ``For purposes
of section 38, if the taxpayer elects to have this section
apply, the nonconventional source production credit
determined under this section for the taxable year is''.
(D) Section 45K(b), as so redesignated, is amended by
striking paragraph (6).
(E) Section 53(d)(1)(B)(iii) is amended by striking ``under
section 29'' and all that follows through ``or not allowed''.
(F) Section 55(c)(2) is amended by striking ``29(b)(6),''.
(G) Subsection (a) of section 772 is amended by inserting
``and'' at the end of paragraph (9), by striking paragraph
(10), and by redesignating paragraph (11) as paragraph (10).
(H) Paragraph (5) of section 772(d) is amended by striking
``the foreign tax credit, and the credit allowable under
section 29'' and inserting ``and the foreign tax credit''.
(I) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by striking the item
relating to section 29.
(J) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by this Act, is amended
by inserting after the item relating to section 45J the
following new item:
``Sec. 45K. Credit for producing fuel from a nonconventional source.''.
(c) Determinations Under Natural Gas Policy Act of 1978.--
Subparagraph (A) of section 45K(c)(2), as redesignated by
subsection (b)(1), is amended--
(1) by inserting ``by the Secretary, after consultation
with the Federal Energy Regulatory Commission,'' after
``shall be made'', and
(2) by inserting ``(as in effect before the repeal of such
section)'' after ``1978''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced
and sold after December 31, 2003, in taxable years ending
after such date.
(2) Determinations under natural gas policy act of 1978.--
The amendments made by subsection (c) shall apply as if
included in the provisions repealing section 503 of the
Natural Gas Policy Act of 1978.
PART II--ALTERNATIVE MINIMUM TAX PROVISIONS
SEC. 1346. NEW NONREFUNDABLE PERSONAL CREDITS ALLOWED AGAINST
REGULAR AND MINIMUM TAXES.
(a) In General.--
(1) Section 25C.--Section 25C(b), as added by section 1301
of this Act, is amended by adding at the end the following
new paragraph:
``(3) Limitation based on amount of tax.--The credit
allowed under subsection (a) for the taxable year shall not
exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this section and section 25D) and section 27 for
the taxable year.''.
(2) Section 25D.--Section 25D(b), as added by section 1304
of this Act, is amended by adding at the end the following
new paragraph:
``(3) Limitation based on amount of tax.--The credit
allowed under subsection (a) for the taxable year shall not
exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this section) and section 27 for the taxable
year.''.
(b) Conforming Amendments.--
(1) Section 23(b)(4)(B) is amended by inserting ``and
sections 25C and 25D'' after ``this section''.
(2) Section 24(b)(3)(B) is amended by striking ``and 25B''
and inserting ``, 25B, 25C, and 25D''.
(3) Section 25(e)(1)(C) is amended by inserting ``25C, and
25D'' after ``25B,''.
(4) Section 25B(g)(2) is amended by striking ``section 23''
and inserting ``sections 23, 25C, and 25D''.
(5) Section 26(a)(1) is amended by striking ``and 25B'' and
inserting ``25B, 25C, and 25D''.
(6) Section 904(h) is amended by striking ``and 25B'' and
inserting ``25B, 25C, and 25D''.
(7) Section 1400C(d) is amended by striking ``and 25B'' and
inserting ``25B, 25C, and 25D''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2003.
SEC. 1347. BUSINESS RELATED ENERGY CREDITS ALLOWED AGAINST
REGULAR AND MINIMUM TAX.
(a) In General.--Subsection (c) of section 38 (relating to
limitation based on amount of tax) is amended by
redesignating paragraph (4) as paragraph (5) and by inserting
after paragraph (3) the following new paragraph:
``(4) Special rules for specified energy credits.--
``(A) In general.--In the case of specified energy
credits--
``(i) this section and section 39 shall be applied
separately with respect to such credits, and
``(ii) in applying paragraph (1) to such credits--
``(I) the tentative minimum tax shall be treated as being
zero, and
``(II) the limitation under paragraph (1) (as modified by
subclause (I)) shall be reduced by the credit allowed under
subsection (a) for the taxable year (other than the specified
energy credits).
``(B) Specified energy credits.--For purposes of this
subsection, the term `specified energy credits' means the
credits determined under sections 45G, 45H, 45I, and 45J. For
taxable years beginning after December 31, 2003, such term
includes the credit determined under section 40. For taxable
years beginning after December 31, 2003, and before January
1, 2006, such term includes the credit determined under
section 43.
``(C) Special rule for electricity produced from qualified
facilities.--For purposes of this subsection, the term
`specified energy credits' shall include the credit
determined under section 45 to the extent that such credit is
attributable to electricity produced--
``(i) at a facility which is originally placed in service
after the date of the enactment of this paragraph, and
``(ii) during the 4-year period beginning on the date that
such facility was originally placed in service.''.
(b) Conforming Amendments.--
(1) Paragraph (2)(A)(ii)(II) of section 38(c) is amended by
striking ``or'' and inserting a comma and by inserting ``,
and the specified energy credits'' after ``employee credit''.
(2) Paragraph (3)(A)(ii)(II) of section 38(c) is amended by
inserting ``and the specified energy credits'' after
``employee credit''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.
SEC. 1348. TEMPORARY REPEAL OF ALTERNATIVE MINIMUM TAX
PREFERENCE FOR INTANGIBLE DRILLING COSTS.
(a) In General.--Clause (ii) of section 57(a)(2)(E) is
amended by adding at the end the following new sentence:
``The preceding sentence shall not apply to taxable years
beginning after December 31, 2003, and before January 1,
2006.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2003.
PART III--CLEAN COAL INCENTIVES
SEC. 1351. CREDIT FOR CLEAN COAL TECHNOLOGY UNITS.
(a) In General.--Subpart E of part IV of subchapter A of
chapter 1 (relating to rules for computing investment credit)
is amended by inserting after section 48 the following new
section:
``SEC. 48A. CLEAN COAL TECHNOLOGY CREDIT.
``(a) In General.--For purposes of section 46, the clean
coal technology credit for any taxable year is an amount
equal to the applicable percentage of the basis of qualified
clean coal property placed in service during such year.
``(b) Applicable Percentage.--For purposes of this section,
the applicable percentage is--
``(1) 15 percent in the case of property placed in service
in connection with any basic clean coal technology unit, and
``(2) 17.5 percent in the case of property placed in
service in connection with any advanced clean coal technology
unit.
``(c) Qualified Clean Coal Property.--For purposes of this
section--
``(1) In general.--The term `qualified clean coal property'
means section 1245 property--
[[Page 29221]]
``(A) which is installed in connection with--
``(i) an existing coal-based unit as part of the conversion
of such unit to any basic or advanced clean coal technology
unit, or
``(ii) any new advanced clean coal technology unit,
``(B) which is placed in service after December 31, 2003,
and before--
``(i) in the case of property to which subsection (b)(1)
applies, January 1, 2014, and
``(ii) in the case of property to which subsection (b)(2)
applies, January 1, 2017 (January 1, 2013, in the case of
property installed in connection with an eligible advanced
pulverized coal or atmospheric fluidized bed combustion
technology unit),
``(C) the original use of which commences with the
taxpayer, and
``(D) which has a useful life of not less than 4 years.
``(2) Existing coal-based unit.--The term `existing coal-
based unit' means a coal-based electricity generating steam
generator-turbine unit--
``(A) which is not a basic or advanced clean coal
technology unit, and
``(B) which is in operation on or before January 1, 2004.
In the case of a unit being converted to a basic clean coal
technology unit, such term shall not include a unit having a
nameplate capacity rating of more than 300 megawatts.
``(3) New advanced clean coal technology unit.--The term
`new advanced clean coal technology unit' means any advanced
clean coal technology unit which is placed in service after
December 31, 2003, and the original use of which commences
with the taxpayer.
``(d) Basic Clean Coal Technology Unit.--For purposes of
this section--
``(1) In general.--The term `basic clean coal technology
unit' means a unit which--
``(A) uses clean coal technology (including advanced
pulverized coal or atmospheric fluidized bed combustion,
pressurized fluidized bed combustion, and integrated
gasification combined cycle) for the production of
electricity,
``(B) uses an input of at least 75 percent coal to produce
at least 50 percent of its thermal output as electricity,
``(C) has a design net heat rate of at least 500 less than
that of the existing coal-based unit prior to its conversion,
``(D) has a maximum design net heat rate of not more than
9,500, and
``(E) meets the pollution control requirements of paragraph
(2).
Such term shall not include an advanced clean coal technology
unit.
``(2) Pollution control requirements.--
``(A) In general.--A unit meets the requirements of this
paragraph if--
``(i) its emissions of sulfur dioxide, nitrogen oxide, or
particulates meet the lower of the emission levels for each
such emission specified in--
``(I) subparagraph (B), or
``(II) the new source performance standards of the Clean
Air Act (42 U.S.C. 7411) which are in effect for the category
of source at the time of the conversion of the unit, and
``(ii) its emissions do not exceed any relevant emission
level specified by regulation pursuant to the hazardous air
pollutant requirements of the Clean Air Act (42 U.S.C. 7412)
in effect at the time of the conversion of the unit.
``(B) Specific levels.--The levels specified in this
subparagraph are--
``(i) in the case of sulfur dioxide emissions, 50 percent
of the sulfur dioxide emission levels specified in the new
source performance standards of the Clean Air Act (42 U.S.C.
7411) in effect on the date of the enactment of this section
for the category of source,
``(ii) in the case of nitrogen oxide emissions--
``(I) 0.1 pound per million Btu of heat input if the unit
is not a cyclone-fired boiler, and
``(II) if the unit is a cyclone-fired boiler, 15 percent of
the uncontrolled nitrogen oxide emissions from such boilers,
and
``(iii) in the case of particulate emissions, 0.02 pound
per million Btu of heat input.
``(3) Design net heat rate.--The design net heat rate with
respect to any unit, measured in Btu per kilowatt hour
(HHV)--
``(A) shall be based on the design annual heat input to and
the design annual net electrical power, fuels, and chemicals
output from such unit (determined without regard to such
unit's co-generation of steam),
``(B) shall be adjusted for the heat content of the design
coal to be used by the unit if it is less than 12,000 Btu per
pound according to the following formula:
Design net heat rate = Unit net heat rate [l- {((12,000-
design coal heat content, Btu per pound)/1,000) 0.013}],
``(C) shall be corrected for the site reference conditions
of--
``(i) elevation above sea level of 500 feet,
``(ii) air pressure of 14.4 pounds per square inch absolute
(psia),
``(iii) temperature, dry bulb of 63 deg.F,
``(iv) temperature, wet bulb of 54 deg.F, and
``(v) relative humidity of 55 percent, and
``(D) if carbon capture controls have been installed with
respect to any existing coal-based unit and such controls
remove at least 50 percent of the unit's carbon dioxide
emissions, shall be adjusted up to the design heat rate level
which would have resulted without the installation of such
controls.
``(4) HHV.--The term `HHV' means higher heating value.
``(e) Advanced Clean Coal Technology Unit.--For purposes of
this section--
``(1) In general.--The term `advanced clean coal technology
unit' means any electricity generating unit of the taxpayer--
``(A) which is--
``(i) an eligible advanced pulverized coal or atmospheric
fluidized bed combustion technology unit,
``(ii) an eligible pressurized fluidized bed combustion
technology unit,
``(iii) an eligible integrated gasification combined cycle
technology unit, or
``(iv) an eligible other technology unit,
``(B) which uses an input of at least 75 percent coal to
produce at least 50 percent of its thermal output as
electricity, and
``(C) which meets the carbon emission rate requirements of
paragraph (6).
``(2) Eligible advanced pulverized coal or atmospheric
fluidized bed combustion technology unit.--The term `eligible
advanced pulverized coal or atmospheric fluidized bed
combustion technology unit' means a clean coal technology
unit using advanced pulverized coal or atmospheric fluidized
bed combustion technology which has a design net heat rate of
not more than 8,500 (8,900 in the case of units placed in
service before 2009).
``(3) Eligible pressurized fluidized bed combustion
technology unit.--The term `eligible pressurized fluidized
bed combustion technology unit' means a clean coal technology
unit using pressurized fluidized bed combustion technology
which has a design net heat rate of not more than 7,720
(8,900 in the case of units placed in service before 2009,
and 8,500 in the case of units placed in service after 2008
and before 2013).
``(4) Eligible integrated gasification combined cycle
technology unit.--The term `eligible integrated gasification
combined cycle technology unit' means a clean coal technology
unit using integrated gasification combined cycle technology,
with or without fuel or chemical co-production--
``(A) which has a design net heat rate of not more than
7,720 (8,900 in the case of units placed in service before
2009, and 8,500 in the case of units placed in service after
2008 and before 2013), and
``(B) has a net thermal efficiency (HHV) using coal with
fuel or chemical co-production of not less than 44.2 percent
(38.4 percent in the case of units placed in service before
2009, and 40.2 percent in the case of units placed in service
after 2008 and before 2013).
``(5) Eligible other technology unit.--The term `eligible
other technology unit' means a clean coal technology unit--
``(A) which uses any other technology for the production of
electricity, and
``(B) which has a design net heat rate which meets the
requirement of paragraph (2).
``(6) Carbon emission rate requirements.--
``(A) In general.--Except as provided in subparagraph (B),
a unit meets the requirements of this paragraph if--
``(i) in the case of a unit using design coal with a heat
content of not more than 9,000 Btu per pound, the carbon
emission rate is less than 0.60 pound of carbon per kilowatt
hour, and
``(ii) in the case of a unit using design coal with a heat
content of more than 9,000 Btu per pound, the carbon emission
rate is less than 0.54 pound of carbon per kilowatt hour.
``(B) Eligible other technology unit.--In the case of an
eligible other technology unit, subparagraph (A) shall be
applied by substituting `0.51' and `0.459' for `0.60' and
`0.54', respectively.
``(f) National Limitations on Credit.--For purposes of this
section--
``(1) In general.--The amount of credit which would (but
for this subsection) be allowed with respect to any property
shall not exceed the amount which bears the same ratio to
such amount of credit as--
``(A) the national megawatt capacity limitation allocated
to the taxpayer with respect to the basic or advanced clean
coal technology unit to which such property relates, bears to
``(B) the total megawatt capacity of such unit.
The capacity described in subparagraph (B) shall be the
reasonably expected capacity after the installation of the
property.
``(2) Amount of national limitation.--
``(A) Advanced units.--The national megawatt capacity
limitation for advanced clean coal technology units shall be
6,000 megawatts. Of such amount, the national megawatt
capacity limitation is--
``(i) for advanced clean coal technology units using
advanced pulverized coal or atmospheric fluidized bed
combustion technology, not more than 1,500 megawatts (not
more than 750 megawatts in the case of units placed in
service before 2009),
``(ii) for such units using pressurized fluidized bed
combustion technology, not more than 750 megawatts (not more
than 375 megawatts in the case of units placed in service
before 2009),
``(iii) for such units using integrated gasification
combined cycle technology, with or without fuel or chemical
co-production, not more than 3,000 megawatts (not more than
1,250 megawatts in the case of units placed in service before
2009), and
``(iv) for such units using other technology for the
production of electricity, not more than 750 megawatts (not
more than 375 megawatts in the case of units placed in
service before 2009).
``(B) Basic units.--The national megawatt capacity
limitation for basic clean coal technology units shall be
4,000 megawatts.
``(3) Allocation of limitation.--The Secretary shall
allocate the national megawatt capacity limitations in such
manner as the Secretary may prescribe, except that the
Secretary may not allocate more than 300 megawatts to any
basic clean coal technology unit.
[[Page 29222]]
``(4) Regulations.--Not later than 6 months after the date
of the enactment of this section, the Secretary shall
prescribe such regulations as may be necessary or appropriate
to carry out the purposes of this subsection. Such
regulations shall provide a certification process under which
the Secretary, after consultation with the Secretary of
Energy, shall approve and allocate the national megawatt
capacity limitations--
``(A) to encourage that units with the highest thermal
efficiencies, when adjusted for the heat content of the
design coal and site reference conditions, and environmental
performance, be placed in service as soon as possible, and
``(B) to allocate capacity to taxpayers which have a
definite and credible plan for placing into commercial
operation a basic or advanced clean coal technology unit,
including--
``(i) a site,
``(ii) contractual commitments for procurement and
construction or, in the case of regulated utilities, the
agreement of the State utility commission,
``(iii) filings for all necessary preconstruction
approvals,
``(iv) a demonstrated record of having successfully
completed comparable projects on a timely basis, and
``(v) such other factors which the Secretary determines are
appropriate.
``(g) Special Rules.--For purposes of this section--
``(1) Certain progress expenditure rules made applicable.--
Rules similar to the rules of subsections (c)(4) and (d) of
section 46 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of this section.
``(2) Property financed by subsidized financing or
industrial development bonds.--Rules similar to the rules of
section 45(b)(3) shall apply for purposes of this section.
``(3) Noncompliance with pollution laws.--The terms `basic
clean coal technology unit' and `advanced clean coal
technology unit' shall not include any unit which is not in
compliance with the applicable Federal pollution prevention,
control, and permit requirements at any time during the
period applicable under subsection (c)(1)(B).
``(4) Denial of credit for units receiving certain other
federal assistance.--The terms `basic clean coal technology
unit' and `advanced clean coal technology unit' shall not
include any unit if, at any time during the period applicable
under subsection (c)(1)(B), any funding is provided to such
unit under the Clean Coal Technology Program, the Power Plant
Improvement Initiative, or the Clean Coal Power Initiative
administered by the Secretary of Energy.
``(5) Coordination with other credits.--This section shall
not apply to any property with respect to which the
rehabilitation credit under section 47, the energy credit
under section 48, or any credit under section 45 or 45K is
allowable unless the taxpayer elects to waive the application
of such credit to such property.''.
(b) Special Recapture Rules.--
(1) Subsection (a) of section 50 is amended by
redesignating paragraph (3), (4), and (5) as paragraphs (4),
(5), and (6), respectively, and by inserting after paragraph
(2) the following new paragraph:
``(3) Special rules for clean coal technology credits.--
``(A) Early disposition, etc.--If, during any taxable year,
qualified clean coal property is disposed of, or otherwise
ceases to be part of a basic or advanced clean coal
technology unit with respect to the taxpayer, before the
close of the recovery period under section 168 for such unit,
then the tax under this chapter for such taxable year shall
be increased by--
``(i) the aggregate decrease in the credits allowed under
section 38 for all prior taxable years which would have
resulted solely from reducing to zero any credit determined
under section 48A with respect to such property, multiplied
by
``(ii) a fraction--
``(I) the numerator of which is the number of years in the
period beginning with the year of such disposition or
cessation and ending with the last year of such recovery
period, and
``(II) the denominator of which is the total number of
years in such recovery period.
``(B) Property ceases to qualify for progress
expenditures.--Rules similar to the rules of this paragraph
shall apply in cases where qualified progress expenditures
were taken into account under the rules referred to in
section 48A(g)(1).
``(C) Increased recapture in certain cases.--The fraction
in subparagraph (A)(ii) shall be 1 in any case in which the
property ceases to be a basic or advanced clean coal
technology unit by reason of paragraph (3), (4), or (5) of
section 48A(g).
``(D) Coordination with other recapture rules.--Paragraphs
(1) and (2) shall not apply to qualified clean coal property.
``(E) Definitions.--Terms used in this section which are
also used in section 48A shall have the meanings given to
such terms in section 48A.''.
(2) Paragraph (4) of section 50(a), as redesignated by
paragraph (1), is amended by striking ``or (2)'' and
inserting ``, (2), or (3)''.
(3) Paragraph (5) of section 50(a), as so redesignated, is
amended by striking ``and (2)'' and inserting ``, (2), and
(3)''.
(4) Section 1371(d)(1) is amended by striking ``section
50(a)(4)'' and inserting ``section 50(a)(5)''.
(c) Technical Amendments.--
(1) Section 46 (relating to amount of credit) is amended by
striking ``and'' at the end of paragraph (2), by striking the
period at the end of paragraph (3) and inserting ``, and'',
and by adding at the end the following new paragraph:
``(4) the clean coal technology credit.''.
(2) Section 49(a)(1)(C) is amended by striking ``and'' at
the end of clause (ii), by striking the period at the end of
clause (iii) and inserting ``, and'', and by adding at the
end the following new clause:
``(iv) the portion of the basis of any qualified clean coal
property (as defined by section 48A(c)).''.
(3) The table of sections for subpart E of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 48 the following new item:
``Sec. 48A. Clean coal technology credit.''.
(d) Effective Date.--The amendments made by this section
shall apply to periods after December 31, 2003, under rules
similar to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990).
SEC. 1352. EXPANSION OF AMORTIZATION FOR CERTAIN POLLUTION
CONTROL FACILITIES.
(a) Eligibility of Post-1975 Pollution Control
Facilities.--
(1) In general.--Paragraph (1) of section 169(d) is amended
by striking ``before January 1, 1976,'' and by striking ``a
new identifiable'' and inserting ``an identifiable''.
(2) Identifiable treatment facility.--Paragraph (4) of
section 169(d) is amended to read as follows:
``(4) Identifiable treatment facility.--For purposes of
paragraph (1), the term `identifiable treatment facility'
includes only tangible property (not including a building and
its structural components, other than a building which is
exclusively a treatment facility) which is of a character
subject to the allowance for depreciation provided in section
167, which is identifiable as a treatment facility, and which
is property--
``(A) the construction, reconstruction, or erection of
which is completed by the taxpayer, or
``(B) the original use of the property commences with the
taxpayer.''
(3) Technical amendment.--Section 169(d)(3) is amended by
striking ``Health, Education, and Welfare'' and inserting
``Health and Human Services''.
(b) Coordination With Section 48A Investment Credit.--
Section 169 is amended by redesignating subsections (e)
though (j) as subsection (f) through (k), respectively, and
by inserting after subsection (d) the following new
subsection:
``(e) Coordination With Section 48A Investment Credit.--
``(1) In general.--In the case of any treatment facility
used in connection with a plant or other property to which an
amount is allocated under section 48A(f), this section shall
apply only if such plant or other property was in operation
before January 1, 1976.
``(2) 36-month amortization with respect to pre-1976 plants
not allocated credit.--References in this section to 60
months shall be treated as references to 36 months in the
case of treatment facilities used in connection with a plant
or other property in operation before January 1, 1976, if no
allocation is made under section 48A(f) with respect to such
plant or property.''
(c) Effective Date.--The amendments made by this section
shall apply to facilities placed in service after the date of
the enactment of this Act.
SEC. 1353. 5-YEAR RECOVERY PERIOD FOR ELIGIBLE INTEGRATED
GASIFICATION COMBINED CYCLE TECHNOLOGY UNIT
ELIGIBLE FOR CREDIT.
(a) In General.--Subparagraph (B) of section 168(e)(3)
(defining 5-year property) is amended by striking ``and'' at
the end of clause (v), by striking the period at the end of
clause (vi) and inserting ``, and'', and by inserting after
clause (vi) the following new clause:
``(vii) any section 1245 property which is part of an
eligible integrated gasification combined cycle technology
unit (as defined in section 48A(e)(4)) for which an
allocation is made under section 48A(f).''
(b) Alternative System.--The table contained in section
168(g)(3)(B) (relating to special rule for certain property
assigned to classes) is amended by inserting after the item
relating to subparagraph (B)(iii) the following new item:
``(B)(vii)........................................................20''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act in taxable years ending after such
date.
PART IV--HIGH VOLUME NATURAL GAS PROVISIONS
SEC. 1355. HIGH VOLUME NATURAL GAS PIPE TREATED AS 7-YEAR
PROPERTY.
(a) In General.--Section 168(e)(3)(C) (defining 7-year
property), as amended by this Act, is amended by striking
``and'' at the end of clause (ii), by redesignating clause
(iii) as clause (iv), and by inserting after clause (ii) the
following new clause:
``(iii) any high volume natural gas pipe the original use
of which commences with the taxpayer after the date of the
enactment of this clause, and''.
(b) High Volume Natural Gas Pipe.--Section 168(i) (relating
to definitions and special
[[Page 29223]]
rules), as amended by this Act, is amended by adding at the
end the following new paragraph:
``(17) High volume natural gas pipe.--The term `high volume
natural gas pipe' means--
``(A) pipe which has an interior diameter of at least 42
inches and which is part of a natural gas pipeline system,
and
``(B) any related equipment and appurtenances used in
connection with such pipe.''.
(c) Alternative System.--The table contained in section
168(g)(3)(B) (relating to special rule for certain property
assigned to classes), as amended by this Act, is amended by
inserting after the item relating to subparagraph (C)(ii) the
following new item:
``(C)(iii)........................................................22''.
(d) Alternative Minimum Tax Exception.--Subparagraph (B) of
section 56(a)(1), as amended by this Act, is amended by
inserting before the period the following: ``, or in section
168(e)(3)(C)(iii)''.
(e) Effective Date.--The amendments made by this section
shall apply to property placed in service on or after the
date of the enactment of this Act.
SEC. 1356. EXTENSION OF ENHANCED OIL RECOVERY CREDIT TO HIGH
VOLUME NATURAL GAS FACILITIES.
(a) In General.--Section 43(c)(1) (defining qualified
enhanced oil recovery costs) is amended by adding at the end
the following new subparagraph:
``(D) Any amount which is paid or incurred during the
taxable year in connection with the construction of a gas
treatment plant which--
``(i) prepares natural gas for transportation through a
pipeline with a capacity of at least 1,000,000,000,000 Btu of
natural gas per day, and
``(ii) produces carbon dioxide which is injected into
hydrocarbon-bearing geological formations.''.
(b) Effective Date.--The amendment made by this section
shall apply to costs paid or incurred in taxable years
beginning after December 31, 2003.
Subtitle D--Additional Provisions
SEC. 1361. EXTENSION OF ACCELERATED DEPRECIATION BENEFIT FOR
ENERGY-RELATED BUSINESSES ON INDIAN
RESERVATIONS.
Paragraph (8) of section 168(j) (relating to termination)
is amended by adding at the end the following new sentence:
``The preceding sentence shall be applied by substituting
`December 31, 2005' for `December 31, 2004' in the case of
property placed in service as part of a facility for--
``(A) the generation or transmission of electricity
(including from any qualified energy resource, as defined in
section 45(c)),
``(B) an oil or gas well,
``(C) the transmission or refining of oil or gas, or
``(D) the production of any qualified fuel (as defined in
section 45K(c)).''.
SEC. 1362. PAYMENT OF DIVIDENDS ON STOCK OF COOPERATIVES
WITHOUT REDUCING PATRONAGE DIVIDENDS.
(a) In General.--Subsection (a) of section 1388 (relating
to patronage dividend defined) is amended by adding at the
end the following: ``For purposes of paragraph (3), net
earnings shall not be reduced by amounts paid during the year
as dividends on capital stock or other proprietary capital
interests of the organization to the extent that the articles
of incorporation or bylaws of such organization or other
contract with patrons provide that such dividends are in
addition to amounts otherwise payable to patrons which are
derived from business done with or for patrons during the
taxable year.''.
(b) Effective Date.--The amendment made by this section
shall apply to distributions in taxable years ending after
the date of the enactment of this Act.
SEC. 1363. DISTRIBUTIONS FROM PUBLICLY TRADED PARTNERSHIPS
TREATED AS QUALIFYING INCOME OF REGULATED
INVESTMENT COMPANIES.
(a) In General.--Paragraph (2) of section 851(b) (defining
regulated investment company) is amended to read as follows:
``(2) at least 90 percent of its gross income is derived
from--
``(A) dividends, interest, payments with respect to
securities loans (as defined in section 512(a)(5)), and gains
from the sale or other disposition of stock or securities (as
defined in section 2(a)(36) of the Investment Company Act of
1940, as amended) or foreign currencies, or other income
(including but not limited to gains from options, futures or
forward contracts) derived with respect to its business of
investing in such stock, securities, or currencies, and
``(B) distributions or other income derived from an
interest in a qualified publicly traded partnership (as
defined in subsection (h)); and''
(b) Source Flow-Through Rule Not To Apply.--The last
sentence of section 851(b) is amended by inserting ``(other
than a qualified publicly traded partnership as defined in
subsection (h))'' after ``derived from a partnership''.
(c) Limitation on Ownership.--Subsection (c) of section 851
is amended by redesignating paragraph (5) as paragraph (6)
and inserting after paragraph (4) the following new
paragraph:
``(5) The term `outstanding voting securities of such
issuer' shall include the equity securities of a qualified
publicly traded partnership (as defined in subsection
(h)).''.
(d) Definition of Qualified Publicly Traded Partnership.--
Section 851 is amended by adding at the end the following new
subsection:
``(h) Qualified Publicly Traded Partnership.--For purposes
of this section, the term `qualified publicly traded
partnership' means a publicly traded partnership described in
section 7704(b) other than a partnership which would satisfy
the gross income requirements of section 7704(c)(2) if
qualifying income included only income described in
subsection (b)(2)(A).''.
(e) Definition of Qualifying Income.--Section 7704(d)(4) is
amended by striking ``section 851(b)(2)'' and inserting
``section 851(b)(2)(A)''.
(f) Limitation on Composition of Assets.--Subparagraph (B)
of section 851(b)(3) is amended to read as follows:
``(B) not more than 25 percent of the value of its total
assets is invested in--
``(i) the securities (other than Government securities or
the securities of other regulated investment companies) of
any one issuer,
``(ii) the securities (other than the securities of other
regulated investment companies) of two or more issuers which
the taxpayer controls and which are determined, under
regulations prescribed by the Secretary, to be engaged in the
same or similar trades or businesses or related trades or
businesses, or
``(iii) the securities of one or more qualified publicly
traded partnerships (as defined in subsection (h)).''.
(g) Application of Special Passive Activity Rule to
Regulated Investment Companies.--Subsection (k) of section
469 (relating to separate application of section in case of
publicly traded partnerships) is amended by adding at the end
the following new paragraph:
``(4) Application to regulated investment companies.--For
purposes of this section, a regulated investment company (as
defined in section 851) holding an interest in a qualified
publicly traded partnership (as defined in section 851(h))
shall be treated as a taxpayer described in subsection (a)(2)
with respect to items attributable to such interest.''.
(h) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 1364. CEILING FANS.
(a) In General.--Subchapter II of chapter 99 of the
Harmonized Tariff Schedule of the United States is amended by
inserting in numerical sequence the following new heading:
9902.84.14 Ceiling fans Free No change No change On or before 12/
for permanent 31/2005 .''
installation
(provided for
in subheading
8414.51.00).
(b) Effective Date.--The amendment made by this section
applies to goods entered, or withdrawn from warehouse, for
consumption on or after the 15th day after the date of
enactment of this Act.
SEC. 1365. CERTAIN STEAM GENERATORS, AND CERTAIN REACTOR
VESSEL HEADS, USED IN NUCLEAR FACILITIES.
(a) Certain Steam Generators.--Heading 9902.84.02 of the
Harmonized Tariff Schedule of the United States is amended by
striking ``12/31/2006'' and inserting ``12/31/2008''.
(b) Certain Reactor Vessel Heads.--Subchapter II of chapter
99 of the Harmonized Tariff Schedule of the United States is
amended by inserting in numerical sequence the following new
heading:
9902.84.03 Reactor vessel Free No change No change On or before 12/
heads for 31/2007 .''
nuclear
reactors
(provided for
in subheading
8401.40.00).
(c) Effective Date.--
(1) Subsection (a).--The amendment made by subsection (a)
shall take effect on the date of the enactment of this Act.
(2) Subsection (b).--The amendment made by subsection (b)
shall apply to goods entered, or withdrawn from warehouse,
for consumption on or after the 15th day after the date of
the enactment of this Act.
SEC. 1366. BROWNFIELDS DEMONSTRATION PROGRAM FOR QUALIFIED
GREEN BUILDING AND SUSTAINABLE DESIGN PROJECTS.
(a) Treatment as Exempt Facility Bond.--Subsection (a) of
section 142 (relating to the definition of exempt facility
bond) is amended by striking ``or'' at the end of paragraph
(12), by striking the period at the end of paragraph (13) and
inserting ``, or'', and by inserting at the end the following
new paragraph:
``(14) qualified green building and sustainable design
projects.''.
(b) Qualified Green Building and Sustainable Design
Projects.--Section 142 (relating to exempt facility bonds) is
amended by adding at the end thereof the following new
subsection:
``(l) Qualified Green Building and Sustainable Design
Projects.--
[[Page 29224]]
``(1) In general.--For purposes of subsection (a)(14), the
term `qualified green building and sustainable design
project' means any project which is designated by the
Secretary, after consultation with the Administrator of the
Environmental Protection Agency, as a qualified green
building and sustainable design project and which meets the
requirements of clauses (i), (ii), (iii), and (iv) of
paragraph (4)(A).
``(2) Designations.--
``(A) In general.--Within 60 days after the end of the
application period described in paragraph (3)(A), the
Secretary, after consultation with the Administrator of the
Environmental Protection Agency, shall designate qualified
green building and sustainable design projects. At least one
of the projects designated shall be located in, or within a
10-mile radius of, an empowerment zone as designated pursuant
to section 1391, and at least one of the projects designated
shall be located in a rural State. No more than one project
shall be designated in a State. A project shall not be
designated if such project includes a stadium or arena for
professional sports exhibitions or games.
``(B) Minimum conservation and technology innovation
objectives.--The Secretary, after consultation with the
Administrator of the Environmental Protection Agency, shall
ensure that, in the aggregate, the projects designated
shall--
``(i) reduce electric consumption by more than 150
megawatts annually as compared to conventional construction,
``(ii) reduce daily sulfur dioxide emissions by at least 10
tons compared to coal generation power,
``(iii) expand by 75 percent the domestic solar
photovoltaic market in the United States (measured in
megawatts) as compared to the expansion of that market from
2001 to 2002, and
``(iv) use at least 25 megawatts of fuel cell energy
generation.
``(3) Limited designations.--A project may not be
designated under this subsection unless--
``(A) the project is nominated by a State or local
government within 180 days of the enactment of this
subsection, and
``(B) such State or local government provides written
assurances that the project will satisfy the eligibility
criteria described in paragraph (4).
``(4) Application.--
``(A) In general.--A project may not be designated under
this subsection unless the application for such designation
includes a project proposal which describes the energy
efficiency, renewable energy, and sustainable design features
of the project and demonstrates that the project satisfies
the following eligibility criteria:
``(i) Green building and sustainable design.--At least 75
percent of the square footage of commercial buildings which
are part of the project is registered for United States Green
Building Council's LEED certification and is reasonably
expected (at the time of the designation) to receive such
certification.
``(ii) Brownfield redevelopment.--The project includes a
brownfield site as defined by section 101(39) of the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9601), including a site
described in subparagraph (D)(ii)(II)(aa) thereof.
``(iii) State and local support.--The project receives
specific State or local government resources which will
support the project in an amount equal to at least
$5,000,000. For purposes of the preceding sentence, the term
`resources' includes tax abatement benefits and contributions
in kind.
``(iv) Size.--The project includes at least one of the
following:
``(I) At least 1,000,000 square feet of building.
``(II) At least 20 acres.
``(v) Use of tax benefit.--The project proposal includes a
description of the net benefit of the tax-exempt financing
provided under this subsection which will be allocated for
financing of one or more of the following:
``(I) The purchase, construction, integration, or other use
of energy efficiency, renewable energy, and sustainable
design features of the project.
``(II) Compliance with LEED certification standards.
``(III) The purchase, remediation, and foundation
construction and preparation of the brownfields site.
``(vi) Employment.--The project is projected to provide
permanent employment of at least 1,500 full time equivalents
(150 full time equivalents in rural States) when completed
and construction employment of at least 1,000 full time
equivalents (100 full time equivalents in rural States).
The application shall include an independent analysis which
describes the project's economic impact, including the amount
of projected employment.
``(B) Project description.--Each application described in
subparagraph (A) shall contain for each project a description
of--
``(i) the amount of electric consumption reduced as
compared to conventional construction,
``(ii) the amount of sulfur dioxide daily emissions reduced
compared to coal generation,
``(iii) the amount of the gross installed capacity of the
project's solar photovoltaic capacity measured in megawatts,
and
``(iv) the amount, in megawatts, of the project's fuel cell
energy generation.
``(5) Certification of use of tax benefit.--No later than
30 days after the completion of the project, each project
must certify to the Secretary that the net benefit of the
tax-exempt financing was used for the purposes described in
paragraph (4).
``(6) Definitions.--For purposes of this subsection--
``(A) Rural state.--The term `rural State' means any State
which has--
``(i) a population of less than 4,500,000 according to the
2000 census,
``(ii) a population density of less than 150 people per
square mile according to the 2000 census, and
``(iii) increased in population by less than half the rate
of the national increase between the 1990 and 2000 censuses.
``(B) Local government.--The term `local government' has
the meaning given such term by section 1393(a)(5).
``(C) Net benefit of tax-exempt financing.--The term `net
benefit of tax-exempt financing' means the present value of
the interest savings (determined by a calculation established
by the Secretary) which result from the tax-exempt status of
the bonds.
``(7) Aggregate face amount of tax-exempt financing.--
``(A) In general.--An issue shall not be treated as an
issue described in subsection (a)(14) if the aggregate face
amount of bonds issued by the State or local government
pursuant thereto for a project (when added to the aggregate
face amount of bonds previously so issued for such project)
exceeds an amount designated by the Secretary as part of the
designation.
``(B) Limitation on amount of bonds.--The Secretary may not
allocate authority to issue qualified green building and
sustainable design project bonds in an aggregate face amount
exceeding $2,000,000,000.
``(8) Termination.--Subsection (a)(14) shall not apply with
respect to any bond issued after September 30, 2009.
``(9) Treatment of current refunding bonds.--Paragraphs
(7)(B) and (8) shall not apply to any bond (or series of
bonds) issued to refund a bond issued under subsection
(a)(14) before October 1, 2009, if--
``(A) the average maturity date of the issue of which the
refunding bond is a part is not later than the average
maturity date of the bonds to be refunded by such issue,
``(B) the amount of the refunding bond does not exceed the
outstanding amount of the refunded bond, and
``(C) the net proceeds of the refunding bond are used to
redeem the refunded bond not later than 90 days after the
date of the issuance of the refunding bond.
For purposes of subparagraph (A), average maturity shall be
determined in accordance with section 147(b)(2)(A).''.
(c) Exemption From General State Volume Caps.--Paragraph
(3) of section 146(g) (relating to exception for certain
bonds) is amended--
(1) by striking ``or (13)'' and inserting ``(13), or
(14)'', and
(2) by striking ``and qualified public educational
facilities'' and inserting ``qualified public educational
facilities, and qualified green building and sustainable
design projects''.
(d) Special Rule for Assets Financed Under This Section and
Accountability.--
(1) Denial of double benefit.--Any asset financed with
bonds issued pursuant to this section shall be ineligible for
any credit or deduction established under the Energy Tax
Policy Act of 2003.
(2) Accountability.--Each issuer shall maintain, on behalf
of each project, an interest bearing reserve account equal to
1 percent of the net proceeds of any bond issued under this
section for such project. Not later than 5 years after the
date of issuance, the Secretary of the Treasury, after
consultation with the Administrator of the Environmental
Protection Agency, shall determine whether the project
financed with such bonds has substantially complied with the
terms and conditions described in section 142(l)(4) of the
Internal Revenue Code of 1986 (as added by this section). If
the Secretary, after such consultation, certifies that the
project has substantially complied with such terms and
conditions and meets the commitments set forth in the
application for such project described in section 142(l)(4)
of such Code, amounts in the reserve account, including all
interest, shall be released to the project. If the Secretary
determines that the project has not substantially complied
with such terms and conditions, amounts in the reserve
account, including all interest, shall be paid to the United
States Treasury.
(e) Effective Date.--The amendments made by this section
shall apply to bonds issued after the date of the enactment
of this Act.
TITLE XIV--MISCELLANEOUS
Subtitle A--Rural and Remote Electricity Construction
SEC. 1401. DENALI COMMISSION PROGRAMS.
(a) Power Cost Equalization Program.--There are authorized
to be appropriated to the Denali Commission established by
the Denali Commission Act of 1998 (42 U.S.C. 3121 note) not
more than $5,000,000 for each of fiscal years 2005 through
2011 for the purposes of funding the power cost equalization
program established under section 42.45.100 of the Alaska
Statutes.
(b) Availability of Funds.--
(1) Purpose.--Amounts described in paragraph (2) shall be
available to the Denali Commission to permit energy
generation and development (including fuel cells,
hydroelectric, solar, wind, wave, and tidal energy, and
alternative energy sources), energy transmission (including
interties), fuel tank replacement and clean-up, fuel
transportation networks and related facilities, power cost
equalization programs, and other energy programs,
notwithstanding any other provision of law.
[[Page 29225]]
(2) Amounts.--(A) Except as provided in subparagraph (B),
the amounts referred to in paragraph (1) shall be any Federal
royalties, rents, and bonuses derived from the Federal share
of Federal oil and gas leases in the National Petroleum
Reserve in Alaska, up to a maximum of $50,000,000, for each
of the fiscal years 2004 through 2013.
(B) If amounts available under subparagraph (A) for one of
the fiscal years 2004 through 2013 are less than $50,000,000,
the Secretary of Energy shall make available an amount
sufficient to ensure that the amount available under this
subsection for that fiscal year equals $50,000,000, from
amounts remaining after deposits are made under section
949(a)(1), from the same source from which those deposits are
made.
SEC. 1402. RURAL AND REMOTE COMMUNITY ASSISTANCE.
(a) Program.--Section 19 of the Rural Electrification Act
of 1936 (7 U.S.C 918a) is amended by striking all that
precedes subsection (b) and inserting the following:
``SEC. 19. ELECTRIC GENERATION, TRANSMISSION, AND
DISTRIBUTION FACILITIES EFFICIENCY GRANTS AND
LOANS TO RURAL AND REMOTE COMMUNITIES WITH
EXTREMELY HIGH ELECTRICITY COSTS.
``(a) In General.--The Secretary, acting through the Rural
Utilities Service, may--
``(1) in coordination with State rural development
initiatives, make grants and loans to persons, States,
political subdivisions of States, and other entities
organized under the laws of States, to acquire, construct,
extend, upgrade, and otherwise improve electric generation,
transmission, and distribution facilities serving communities
in which the average revenue per kilowatt hour of electricity
for all consumers is greater than 150 percent of the average
revenue per kilowatt hour of electricity for all consumers in
the United States (as determined by the Energy Information
Administration using the most recent data available);
``(2) make grants and loans to the Denali Commission
established by the Denali Commission Act of 1998 (42 U.S.C.
3121 note; Public 105-277) to be used for the purpose of
providing funds to acquire, construct, extend, upgrade,
finance, and otherwise improve electric generation,
transmission, and distribution facilities serving communities
described in paragraph (1); and
``(3) make grants to State entities to establish and
support a revolving fund to provide a more cost-effective
means of purchasing fuel in areas where the fuel cannot be
shipped by means of surface transportation.''.
(b) Definition of Person.--Section 13 of the Rural
Electrification Act of 1936 (7 U.S.C. 913) is amended by
striking ``or association'' and inserting ``association, or
Indian tribe (as defined in section 4 of the Indian Self-
Determination and Education Assistance Act)''.
Subtitle B--Coastal Programs
SEC. 1411. ROYALTY PAYMENTS UNDER LEASES UNDER THE OUTER
CONTINENTAL SHELF LANDS ACT.
(a) Royalty Relief.--
(1) In general.--For purposes of providing compensation for
lessees and a State for which amounts are authorized by
section 6004(c) of the Oil Pollution Act of 1990 (Public Law
101-380), a lessee may withhold from payment any royalty due
and owing to the United States under any leases under the
Outer Continental Shelf Lands Act (43 U.S.C. 1301 et seq.)
for offshore oil or gas production from a covered lease tract
if, on or before the date that the payment is due and payable
to the United States, the lessee makes a payment to the
Secretary of the Interior of 44 cents for every $1 of royalty
withheld.
(2) Use of amounts paid to secretary.--Within 30 days after
the Secretary of the Interior receives payments under
paragraph (1), the Secretary of the Interior shall--
(A) make 47.5 percent of such payments available to the
State referred to in section 6004(c) of the Oil Pollution Act
of 1990; and
(B) make 52.5 percent of such payments available equally,
only for the programs and purposes identified as number 282
at page 1389 of House Report number 108-10 and for a program
described at page 1159 of that Report in the State referred
to in such section 6004(c).
(3) Treatment of amounts.--Any royalty withheld by a lessee
in accordance with this section (including any portion
thereof that is paid to the Secretary of the Interior under
paragraph (1)) shall be treated as paid for purposes of
satisfaction of the royalty obligations of the lessee to the
United States.
(4) Certification of withheld amounts.--The Secretary of
the Treasury shall--
(A) determine the amount of royalty withheld by a lessee
under this section; and
(B) promptly publish a certification when the total amount
of royalty withheld by the lessee under this section is equal
to--
(i) the dollar amount stated at page 47 of Senate Report
number 101-534, which is designated therein as the total
drainage claim for the West Delta field; plus
(ii) interest as described at page 47 of that Report.
(b) Period of Royalty Relief.--Subsection (a) shall apply
to royalty amounts that are due and payable in the period
beginning on January 1, 2004, and ending on the date on which
the Secretary of the Treasury publishes a certification under
subsection (a)(4)(B).
(c) Definitions.--As used in this section:
(1) Covered lease tract.--The term ``covered lease tract''
means a leased tract (or portion of a leased tract)--
(A) lying seaward of the zone defined and governed by
section 8(g) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(g)); or
(B) lying within such zone but to which such section does
not apply.
(2) Lessee.--The term ``lessee''--
(A) means a person or entity that, on the date of the
enactment of the Oil Pollution Act of 1990, was a lessee
referred to in section 6004(c) of that Act (as in effect on
that date of the enactment), but did not hold lease rights in
Federal offshore lease OCS-G-5669; and
(B) includes successors and affiliates of a person or
entity described in subparagraph (A).
SEC. 1412. DOMESTIC OFFSHORE ENERGY REINVESTMENT.
(a) Domestic Offshore Energy Reinvestment Program.--The
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is
amended by adding at the end the following:
``SEC. 32. DOMESTIC OFFSHORE ENERGY REINVESTMENT PROGRAM.
``(a) Definitions.--In this section:
``(1) Approved plan.--The term `approved plan' means a
Secure Energy Reinvestment Plan approved by the Secretary
under this section.
``(2) Coastal energy state.--The term `Coastal Energy
State' means a Coastal State off the coastline of which,
within the seaward lateral boundary as determined by the map
referenced in subsection (c)(2)(A), outer Continental Shelf
bonus bids or royalties are generated, other than bonus bids
or royalties from a leased tract within any area of the outer
Continental Shelf for which a moratorium on new leasing was
in effect as of January 1, 2002, unless the lease was issued
before the establishment of the moratorium and was in
production on such date.
``(3) Coastal political subdivision.--The term `coastal
political subdivision' means a county, parish, or other
equivalent subdivision of a Coastal Energy State, all or part
of which lies within the boundaries of the coastal zone of
the State, as identified in the State's approved coastal zone
management program under the Coastal Zone Management Act of
1972 (16 U.S.C. 1451 et seq.) on the date of the enactment of
this section.
``(4) Coastal population.--The term `coastal population'
means the population of a coastal political subdivision, as
determined by the most recent official data of the Census
Bureau.
``(5) Coastline.--The term `coastline' has the same meaning
as the term `coast line' in subsection 2(c) of the Submerged
Lands Act (43 U.S.C. 1301(c)).
``(6) Fund.--The term `Fund' means the Secure Energy
Reinvestment Fund established by this section.
``(7) Leased tract.--The term `leased tract' means a tract
maintained under section 6 or leased under section 8 for the
purpose of drilling for, developing, and producing oil and
natural gas resources.
``(8) Qualified outer continental shelf revenues.--(A)
Except as provided in subparagraph (B), the term `qualified
outer Continental Shelf revenues' means all amounts received
by the United States on or after October 1, 2003, from each
leased tract or portion of a leased tract lying seaward of
the zone defined and governed by section 8(g), or lying
within such zone but to which section 8(g) does not apply,
including bonus bids, rents, royalties (including payments
for royalties taken in kind and sold), net profit share
payments, and related interest.
``(B) Such term does not include any revenues from a leased
tract or portion of a leased tract that is included within
any area of the outer Continental Shelf for which a
moratorium on new leasing was in effect as of January 1,
2002, unless the lease was issued before the establishment of
the moratorium and was in production on such date.
``(9) Secretary.--The term `Secretary' means the Secretary
of the Interior.
``(b) Secure Energy Reinvestment Fund.--
``(1) Establishment.--There is established in the Treasury
of the United States a separate account which shall be known
as the `Secure Energy Reinvestment Fund'. The Fund shall
consist of amounts deposited under paragraph (2), and such
other amounts as may be appropriated to the Fund.
``(2) Deposits.--For each fiscal year after fiscal year
2003, the Secretary of the Treasury shall deposit into the
Fund the following:
``(A) Notwithstanding section 9, all qualified outer
Continental Shelf revenues attributable to royalties received
by the United States in the fiscal year that are in excess of
the following amount:
``(i) $3,455,000,000 in the case of royalties received in
fiscal year 2004.
``(ii) $3,726,000,000 in the case of royalties received in
fiscal year 2005.
``(iii) $4,613,000,000 in the case of royalties received in
fiscal year 2006.
``(iv) $5,226,000,000 in the case of royalties received in
fiscal year 2007.
``(v) $5,841,000,000 in the case of royalties received in
fiscal year 2008.
``(vi) $5,763,000,000 in the case of royalties received in
fiscal year 2009.
``(vii) $6,276,000,000 in the case of royalties received in
fiscal year 2010.
``(viii) $6,351,000,000 in the case of royalties received
in fiscal year 2011.
``(ix) $6,551,000,000 in the case of royalties received in
fiscal year 2012.
``(x) $5,120,000,000 in the case of royalties received in
fiscal year 2013.
``(B) Notwithstanding section 9, all qualified outer
Continental shelf revenues attributable to bonus bids
received by the United States in each of the fiscal years
2004 through 2013 that are in excess of $1,000,000,000.
[[Page 29226]]
``(C) Notwithstanding section 9, in addition to amounts
deposited under subparagraphs (A) and (B), $35,000,000 of
amounts received by the United States each fiscal year as
royalties for oil or gas production on the outer Continental
Shelf, except that no amounts shall be deposited under this
subparagraph before fiscal year 2004 or after fiscal year
2013.
``(D) All interest earned under paragraph (4).
``(E) All repayments under subsection (f).
``(3) Reduction in deposit.--(A) For each fiscal year after
fiscal year 2013 in which amounts received by the United
States as royalties for oil or gas production on the outer
Continental Shelf are less than the sum of the amounts
described in subparagraph (B) (before the application of this
subparagraph), the Secretary of the Treasury shall reduce
each of the amounts described in subparagraph (B)
proportionately.
``(B) The amounts referred to in subparagraph (A) are the
following:
``(i) The amount required to be covered into the Historic
Preservation Fund under section 108 of the National Historic
Preservation Act (16 U.S.C. 470h) on the date of the
enactment of this paragraph.
``(ii) The amount required to be credited to the Land and
Water Conservation Fund under section 2(c)(2) of the Land and
Water Conservation Fund Act of 1965 (16 U.S.C. 4601-5(c)(2))
on the date of the enactment of this paragraph.
``(iii) The amount required to be deposited under
subparagraph (C) of paragraph (2) of this subsection.
``(4) Investment.--The Secretary of the Treasury shall
invest moneys in the Fund (including interest) in public debt
securities with maturities suitable to the needs of the Fund,
as determined by the Secretary of the Treasury, and bearing
interest at rates determined by the Secretary of the
Treasury, taking into consideration current market yields on
outstanding marketable obligations of the United States of
comparable maturity. Such invested moneys shall remain
invested until needed to meet requirements for disbursement
under this section.
``(5) Review and revision of baseline amounts.--Not later
than December 31, 2008, the Secretary of the Interior, in
consultation with the Secretary of the Treasury, shall--
``(A) determine the amount and composition of outer
Continental Shelf revenues that were received by the United
States in each of the fiscal years 2004 through 2008;
``(B) project the amount and composition of outer
Continental Shelf revenues that will be received in the
United States in each of the fiscal years 2009 through 2013;
and
``(C) submit to the Congress a report regarding whether any
of the dollar amounts set forth in clauses (v) though (x) of
paragraph (2)(A) or paragraph (2)(B) should be modified to
reflect those projections.
``(6) Authorization of appropriation of additional
amounts.--In addition to the amounts deposited into the Fund
under paragraph (2) there are authorized to be appropriated
to the Fund--
``(A) for each of fiscal years 2004 through 2013 up to
$500,000,000; and
``(B) for each fiscal year after fiscal year 2013 up to 25
percent of qualified outer Continental Shelf revenues
received by the United States in the preceding fiscal year.
``(c) Use of Secure Energy Reinvestment Fund.--
``(1) In general.--(A) The Secretary shall use amounts in
the Fund remaining after the application of subsections (h)
and (i) to pay to each Coastal Energy State that has a Secure
Energy Reinvestment Plan approved by the Secretary under this
section, and to coastal political subdivisions of such State,
the amount allocated to the State or coastal political
subdivision, respectively, under this subsection.
``(B) The Secretary shall make payments under this
paragraph in December of 2004, and of each year thereafter,
from revenues received by the United States in the
immediately preceding fiscal year.
``(2) Allocation.--The Secretary shall allocate amounts
deposited into the Fund in a fiscal year, and other amounts
determined by the Secretary to be available, among Coastal
Energy States that have an approved plan, and to coastal
political subdivisions of such States, as follows:
``(A)(i) Of the amounts made available for each of the
first 10 fiscal years for which amounts are available for
allocation under this paragraph, the allocation for each
Coastal Energy State shall be calculated based on the ratio
of qualified outer Continental Shelf revenues generated off
the coastline of the Coastal Energy State to the qualified
outer Continental Shelf revenues generated off the coastlines
of all Coastal Energy States for the period beginning January
1, 1992, and ending December 31, 2001.
``(ii) Of the amounts available for a fiscal year in a
subsequent 10-fiscal-year period, the allocation for each
Coastal Energy State shall be calculated based on such ratio
determined by the Secretary with respect to qualified outer
Continental Shelf revenues generated in each subsequent
corresponding 10-year period.
``(iii) For purposes of this subparagraph, qualified outer
Continental Shelf revenues shall be considered to be
generated off the coastline of a Coastal Energy State if the
geographic center of the lease tract from which the revenues
are generated is located within the area formed by the
extension of the State's seaward lateral boundaries,
calculated using the strict and scientifically derived
conventions established to delimit international lateral
boundaries under the Law of the Sea, as indicated on the map
entitled `Calculated Seaward Lateral Boundaries' and dated
October 2003, on file in the Office of the Director, Minerals
Management Service.
``(B) 35 percent of each Coastal Energy State's allocable
share as determined under subparagraph (A) shall be allocated
among and paid directly to the coastal political subdivisions
of the State by the Secretary based on the following formula:
``(i) 25 percent shall be allocated based on the ratio of
each coastal political subdivision's coastal population to
the coastal population of all coastal political subdivisions
of the Coastal Energy State.
``(ii) 25 percent shall be allocated based on the ratio of
each coastal political subdivision's coastline miles to the
coastline miles of all coastal political subdivisions of the
State. In the case of a coastal political subdivision without
a coastline, the coastline of the political subdivision for
purposes of this clause shall be one-third the average length
of the coastline of the other coastal political subdivisions
of the State.
``(iii) 50 percent shall be allocated based on a formula
that allocates 75 percent of the funds based on such coastal
political subdivision's relative distance from any leased
tract used to calculate that State's allocation and 25
percent of the funds based on the relative level of outer
Continental Shelf oil and gas activities in a coastal
political subdivision to the level of outer Continental Shelf
oil and gas activities in all coastal political subdivisions
in such State, as determined by the Secretary, except that in
the case of a coastal political subdivision in the State of
California that has a coastal shoreline, that is not within
200 miles of the geographic center of a leased tract or
portion of a leased tract, and in which there is located one
or more oil refineries the allocation under this clause shall
be determined as if that coastal political subdivision were
located within a distance of 50 miles from the geographic
center of the closest leased tract with qualified outer
Continental Shelf revenues.
``(3) Reallocation.--Any amount allocated to a Coastal
Energy State or coastal political subdivision of such a State
but not disbursed because of a failure of a Coastal Energy
State to have an approved plan shall be reallocated by the
Secretary among all other Coastal Energy States in a manner
consistent with this subsection, except that the Secretary--
``(A) shall hold the amount in escrow within the Fund until
the earlier of the end of the next fiscal year in which the
allocation is made or the final resolution of any appeal
regarding the disapproval of a plan submitted by the State
under this section; and
``(B) shall continue to hold such amount in escrow until
the end of the subsequent fiscal year thereafter, if the
Secretary determines that such State is making a good faith
effort to develop and submit, or update, a Secure Energy
Reinvestment Plan under subsection (d).
``(4) Minimum share.--Notwithstanding any other provision
of this subsection, the amount allocated under this
subsection to each Coastal Energy State each fiscal year
shall be not less than 5 percent of the total amount
available for that fiscal year for allocation under this
subsection to Coastal Energy States, except that for any
Coastal Energy State determined by the Secretary to have an
area formed by the extension of the State's seaward lateral
boundary, as designated by the map referenced in paragraph
(2)(A)(iii), of less than 490 square statute miles, the
amount allocated to such State shall not be less than 10
percent of the total amount available for that fiscal year
for allocation under this subsection.
``(5) Recomputation.--If the allocation to one or more
Coastal Energy States under paragraph (4) with respect to a
fiscal year is greater than the amount that would be
allocated to such States under this subsection if paragraph
(4) did not apply, then the allocations under this subsection
to all other Coastal Energy States shall be paid from the
amount remaining after deduction of the amounts allocated
under paragraph (4), but shall be reduced on a pro rata basis
by the sum of the allocations under paragraph (4) so that not
more than 100 percent of the funds available in the Fund for
allocation with respect to that fiscal year is allocated.
``(d) Secure Energy Reinvestment Plan.--
``(1) Development and submission of state plans.--The
Governor of each State seeking to receive funds under this
section shall prepare, and submit to the Secretary, a Secure
Energy Reinvestment Plan describing planned expenditures of
funds received under this section. The Governor shall include
in the State plan submitted to the Secretary plans prepared
by the coastal political subdivisions of the State. The
Governor and the coastal political subdivision shall solicit
local input and provide for public participation in the
development of the State plan. In describing the planned
expenditures, the State and coastal political subdivisions
shall include only items that are uses authorized under
subsection (e).
``(2) Approval or disapproval.--
``(A) In general.--The Secretary may not disburse funds to
a State or coastal political subdivision of a State under
this section before the date the State has an approved plan.
The Secretary shall approve a Secure Energy Reinvestment Plan
submitted by a State under paragraph (1) if the Secretary
determines that the expenditures provided for in the plan are
uses authorized under subsection (e), and that the plan
contains each of the following:
``(i) The name of the State agency that will have the
authority to represent and act for the State in dealing with
the Secretary for purposes of this section.
[[Page 29227]]
``(ii) A program for the implementation of the plan, that
(I) has as a goal improving the environment, (II) has as a
goal addressing the impacts of oil and gas production from
the outer Continental Shelf, and (III) includes a description
of how the State and coastal political subdivisions of the
State will evaluate the effectiveness of the plan.
``(iii) Certification by the Governor that ample
opportunity has been accorded for public participation in the
development and revision of the plan.
``(iv) Measures for taking into account other relevant
Federal resources and programs. The plan shall be correlated
so far as practicable with other State, regional, and local
plans.
``(v) For any State for which the ratio determined under
subsection (c)(2)(A)(i) or (c)(2)(A)(ii), as appropriate,
expressed as a percentage, exceeds 25 percent, a plan to
spend not less than 30 percent of the total funds provided
under this section each fiscal year to that State and
appropriate coastal political subdivisions, to address the
socioeconomic or environmental impacts identified in the plan
that remain significant or progressive after implementation
of mitigation measures identified in the most current
environmental impact statement (as of the date of the
enactment of this clause) required under the National
Environmental Protection Act of 1969 for lease sales under
this Act.
``(vi) A plan to utilize at least one-half of the funds
provided pursuant to subsection (c)(2)(B), and a portion of
other funds provided to such State under this section, on
programs or projects that are coordinated and conducted in
partnership between the State and coastal political
subdivision.
``(B) Procedure and timing.--The Secretary shall approve or
disapprove each plan submitted in accordance with this
subsection within 90 days after its submission.
``(3) Amendment or revision.--Any amendment to or revision
of an approved plan shall be prepared and submitted in
accordance with the requirements under this paragraph for the
submittal of plans, and shall be approved or disapproved by
the Secretary in accordance with paragraph (2)(B).
``(e) Authorized Uses.--A Coastal Energy State, and a
coastal political subdivision of such a State, shall use
amounts paid under this section (including any such amounts
deposited into a trust fund administered by the State or
coastal political subdivision dedicated to uses consistent
with this subsection), in compliance with Federal and State
law and the approved plan of the State, only for one or more
of the following purposes:
``(1) Projects and activities, including educational
activities, for the conservation, protection, or restoration
of coastal areas including wetlands.
``(2) Mitigating damage to, or the protection of, fish,
wildlife, or natural resources.
``(3) To the extent of such sums as are considered
reasonable by the Secretary, planning assistance and
administrative costs of complying with this section.
``(4) Implementation of federally approved plans or
programs for marine, coastal, subsidence, or conservation
management or for protection of resources from natural
disasters.
``(5) Mitigating impacts of outer Continental Shelf
activities through funding onshore infrastructure and public
service needs.
``(f) Compliance With Authorized Uses.--If the Secretary
determines that an expenditure of an amount made by a Coastal
Energy State or coastal political subdivision is not in
accordance with the approved plan of the State (including the
plans of coastal political subdivisions included in such
plan), the Secretary shall not disburse any further amounts
under this section to that Coastal Energy State or coastal
political subdivision until--
``(1) the amount is repaid to the Secretary; or
``(2) the Secretary approves an amendment to the plan that
authorizes the expenditure.
``(g) Arbitration of State and Local Disputes.--The
Secretary may require, as a condition of any payment under
this section, that a State or coastal political subdivision
in a State must submit to arbitration--
``(1) any dispute between the State or coastal political
subdivision (or both) and the Secretary regarding
implementation of this section; and
``(2) any dispute between the State and political
subdivision regarding implementation of this section,
including any failure to include, in the plan submitted by
the State for purposes of subsection (d), any spending plan
of the coastal political subdivision.
``(h) Administrative Expenses.--Of amounts in the Fund each
fiscal year, the Secretary may use up to one-half of one
percent for the administrative costs of implementing this
section.
``(i) Funding for Consortium.--
``(1) In general.--Of amounts deposited into the Fund in
each fiscal year 2004 through 2013, 2 percent shall be
available to the Secretary of the Interior to provide funding
for the Coastal Restoration and Enhancement through Science
and Technology program.
``(2) Treatment.--Any amount available under this
subsection for a fiscal year shall, for purposes of
determining the amount appropriated under any other provision
of law that authorizes appropriations to carry out the
program referred to in paragraph (1), be treated as
appropriated under that other provision.
``(j) Disposition of Funds.--A Coastal Energy State or
coastal political subdivision may use funds provided to such
entity under this section, subject to subsection (e), for any
payment that is eligible to be made with funds provided to
States under section 35 of the Mineral Leasing Act (30 U.S.C.
191).
``(k) Reports.--Each fiscal year following a fiscal year in
which a Coastal Energy State or coastal political subdivision
of a Coastal Energy State receives funds under this section,
the Governor of the Coastal Energy State, in coordination
with such State's coastal political subdivisions, shall
account for all funds so received for the previous fiscal
year in a written report to the Secretary. The report shall
include, in accordance with regulations prescribed by the
Secretary, a description of all projects and activities that
received such funds. In order to avoid duplication, such
report may incorporate, by reference, any other reports
required to be submitted under other provisions of law.
``(l) Signs.--The Secretary shall require, as a condition
of any allocation of funds provided with amounts made
available by this section, that each State and coastal
political subdivision shall include on any sign otherwise
installed at any site at or near an entrance or public use
focal point area for which such funds are used, a statement
that the existence or development of the site (or both), as
appropriate, is a product of such funds.''.
(b) Additional Amendments.--Section 31 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1356a) is amended--
(1) by striking subsection (a);
(2) in subsection (c) by striking ``For fiscal year 2001,
$150,000,000 is'' and inserting ``Such sums as may be
necessary to carry out this section are'';
(3) in subsection (d)(1)(B) by striking ``, except'' and
all that follows through the end of the sentence and
inserting a period;
(4) by redesignating subsections (b) though (g) in order as
subsection (a) through (f); and
(5) by striking ``subsection (f)'' each place it appears
and inserting ``subsection (e)''.
(c) Utilization of Coastal Restoration and Enhancement
Through Science and Technology Program.--
(1) Authorization.--The Secretary of the Interior and the
Secretary of Commerce may each use the Coastal Restoration
and Enhancement through Science and Technology program for
the purposes of--
(A) assessing the effects of coastal habitat restoration
techniques;
(B) developing improved ecosystem modeling capabilities for
improved predictions of coastal conditions and habitat change
and for developing new technologies for restoration
activities; and
(C) identifying economic options to address socioeconomic
consequences of coastal degradation.
(2) Condition.--The Secretary of the Interior, in
consultation with the Secretary of Commerce, shall ensure
that the program--
(A) establishes procedures designed to avoid duplicative
activities among Federal agencies and entities receiving
Federal funds;
(B) coordinates with persons involved in similar
activities; and
(C) establishes a mechanism to collect, organize, and make
available information and findings on coastal restoration.
(3) Report.--Not later than September 30, 2008, the
Secretary of the Interior, in consultation with the Secretary
of Commerce, shall transmit a report to the Congress on the
effectiveness of any Federal and State restoration efforts
conducted pursuant to this subsection and make
recommendations to improve coordinated coastal restoration
efforts.
(4) Funding.--For each of fiscal years 2004 through 2013,
there is authorized to be appropriated to the Secretary
$10,000,000 to carry out activities under this subsection.
Subtitle C--Reforms to the Board of Directors of the Tennessee Valley
Authority
SEC. 1431. CHANGE IN COMPOSITION, OPERATION, AND DUTIES OF
THE BOARD OF DIRECTORS OF THE TENNESSEE VALLEY
AUTHORITY.
The Tennessee Valley Authority Act of 1933 (16 U.S.C. 831
et seq.) is amended by striking section 2 and inserting the
following:
``SEC. 2. MEMBERSHIP, OPERATION, AND DUTIES OF THE BOARD OF
DIRECTORS.
``(a) Membership.--
``(1) Appointment.--The Board of Directors of the
Corporation (referred to in this Act as the `Board') shall be
composed of 9 members appointed by the President by and with
the advice and consent of the Senate, at least 5 of whom
shall be a legal resident of a State any part of which is in
the service area of the Corporation.
``(2) Chairman.--The members of the Board shall select 1 of
the members to act as chairman of the Board.
``(b) Qualifications.--To be eligible to be appointed as a
member of the Board, an individual--
``(1) shall be a citizen of the United States;
``(2) shall have management expertise relative to a large
for-profit or nonprofit corporate, government, or academic
structure;
``(3) shall not be an employee of the Corporation; and
``(4) shall make full disclosure to Congress of any
investment or other financial interest that the individual
holds in the energy industry.
``(c) Recommendations.--In appointing members of the Board,
the President shall--
``(1) consider recommendations from such public officials
as--
``(A) the Governors of States in the service area;
``(B) individual citizens;
``(C) business, industrial, labor, electric power
distribution, environmental, civic, and service
organizations; and
[[Page 29228]]
``(D) the congressional delegations of the States in the
service area; and
``(2) seek qualified members from among persons who reflect
the diversity, including the geographical diversity, and
needs of the service area of the Corporation.
``(d) Terms.--
``(1) In general.--A member of the Board shall serve a term
of 5 years. A member of the Board whose term has expired may
continue to serve after the member's term has expired until
the date on which a successor takes office, except that the
member shall not serve beyond the end of the session of
Congress in which the term of the member expires.
``(2) Vacancies.--A member appointed to fill a vacancy on
the Board occurring before the expiration of the term for
which the predecessor of the member was appointed shall be
appointed for the remainder of that term.
``(e) Quorum.--
``(1) In general.--Five of the members of the Board shall
constitute a quorum for the transaction of business.
``(2) Vacancies.--A vacancy on the Board shall not impair
the power of the Board to act.
``(f) Compensation.--
``(1) In general.--A member of the Board shall be entitled
to receive--
``(A) a stipend of--
``(i) $45,000 per year; or
``(ii)(I) in the case of the chairman of any committee of
the Board created by the Board, $46,000 per year; or
``(II) in the case of the chairman of the Board, $50,000
per year; and
``(B) travel expenses, including per diem in lieu of
subsistence, in the same manner as persons employed
intermittently in Government service under section 5703 of
title 5, United States Code.
``(2) Adjustments in stipends.--The amount of the stipend
under paragraph (1)(A)(i) shall be adjusted by the same
percentage, at the same time and manner, and subject to the
same limitations as are applicable to adjustments under
section 5318 of title 5, United States Code.
``(g) Duties.--
``(1) In general.--The Board shall--
``(A) establish the broad goals, objectives, and policies
of the Corporation that are appropriate to carry out this
Act;
``(B) develop long-range plans to guide the Corporation in
achieving the goals, objectives, and policies of the
Corporation and provide assistance to the chief executive
officer to achieve those goals, objectives, and policies;
``(C) ensure that those goals, objectives, and policies are
achieved;
``(D) approve an annual budget for the Corporation;
``(E) adopt and submit to Congress a conflict-of-interest
policy applicable to members of the Board and employees of
the Corporation;
``(F) establish a compensation plan for employees of the
Corporation in accordance with subsection (i);
``(G) approve all compensation (including salary or any
other pay, bonuses, benefits, incentives, and any other form
of remuneration) of all managers and technical personnel that
report directly to the chief executive officer (including any
adjustment to compensation);
``(H) ensure that all activities of the Corporation are
carried out in compliance with applicable law;
``(I) create an audit committee, composed solely of Board
members independent of the management of the Corporation,
which shall--
``(i) in consultation with the inspector general of the
Corporation, recommend to the Board an external auditor;
``(ii) receive and review reports from the external auditor
of the Corporation and inspector general of the Corporation;
and
``(iii) make such recommendations to the Board as the audit
committee considers necessary;
``(J) create such other committees of Board members as the
Board considers to be appropriate;
``(K) conduct such public hearings as it deems appropriate
on issues that could have a substantial effect on--
``(i) the electric ratepayers in the service area; or
``(ii) the economic, environmental, social, or physical
well-being of the people of the service area;
``(L) establish the electricity rates charged by the
Corporation; and
``(M) engage the services of an external auditor for the
Corporation.
``(2) Meetings.--The Board shall meet at least 4 times each
year.
``(h) Chief Executive Officer.--
``(1) Appointment.--The Board shall appoint a person to
serve as chief executive officer of the Corporation.
``(2) Qualifications.--
``(A) In general.--To serve as chief executive officer of
the Corporation, a person--
``(i) shall have senior executive-level management
experience in large, complex organizations;
``(ii) shall not be a current member of the Board or have
served as a member of the Board within 2 years before being
appointed chief executive officer; and
``(iii) shall comply with the conflict-of-interest policy
adopted by the Board.
``(B) Expertise.--In appointing a chief executive officer,
the Board shall give particular consideration to appointing
an individual with expertise in the electric industry and
with strong financial skills.
``(3) Tenure.--The chief executive officer shall serve at
the pleasure of the Board.
``(i) Compensation Plan.--
``(1) In general.--The Board shall approve a compensation
plan that specifies all compensation (including salary or any
other pay, bonuses, benefits, incentives, and any other form
of remuneration) for the chief executive officer and
employees of the Corporation.
``(2) Annual survey.--The compensation plan shall be based
on an annual survey of the prevailing compensation for
similar positions in private industry, including engineering
and electric utility companies, publicly owned electric
utilities, and Federal, State, and local governments.
``(3) Considerations.--The compensation plan shall provide
that education, experience, level of responsibility,
geographic differences, and retention and recruitment needs
will be taken into account in determining compensation of
employees.
``(4) Positions at or below level iv.--The chief executive
officer shall determine the salary and benefits of employees
whose annual salary is not greater than the annual rate
payable for positions at level IV of the Executive Schedule
under section 5315 of title 5, United States Code.
``(5) Positions above level iv.--On the recommendation of
the chief executive officer, the Board shall approve the
salaries of employees whose annual salaries would be in
excess of the annual rate payable for positions at level IV
of the Executive Schedule under section 5315 of title 5,
United States Code.''.
SEC. 1432. CHANGE IN MANNER OF APPOINTMENT OF STAFF.
Section 3 of the Tennessee Valley Authority Act of 1933 (16
U.S.C. 831b) is amended--
(1) by striking the first undesignated paragraph and
inserting the following:
``(a) Appointment by the Chief Executive Officer.--The
chief executive officer shall appoint, with the advice and
consent of the Board, and without regard to the provisions of
the civil service laws applicable to officers and employees
of the United States, such managers, assistant managers,
officers, employees, attorneys, and agents as are necessary
for the transaction of the business of the Corporation.'';
and
(2) by striking ``All contracts'' and inserting the
following:
``(b) Wage Rates.--All contracts''.
SEC. 1433. CONFORMING AMENDMENTS.
(a) The Tennessee Valley Authority Act of 1933 (16 U.S.C.
831 et seq.) is amended--
(1) by striking ``board of directors'' each place it
appears and inserting ``Board of Directors''; and
(2) by striking ``board'' each place it appears and
inserting ``Board''.
(b) Section 9 of the Tennessee Valley Authority Act of 1933
(16 U.S.C. 831h) is amended--
(1) by striking ``The Comptroller General of the United
States shall audit'' and inserting the following:
``(c) Audits.--The Comptroller General of the United States
shall audit''; and
(2) by striking ``The Corporation shall determine'' and
inserting the following:
``(d) Administrative Accounts and Business Documents.--The
Corporation shall determine''.
(c) Title 5, United States Code, is amended--
(1) in section 5314, by striking ``Chairman, Board of
Directors of the Tennessee Valley Authority.''; and
(2) in section 5315, by striking ``Members, Board of
Directors of the Tennessee Valley Authority.''.
SEC. 1434. APPOINTMENTS; EFFECTIVE DATE; TRANSITION.
(a) Appointments.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the President shall submit to the
Senate nominations of 6 persons to serve as members of the
Board of Directors of the Tennessee Valley Authority in
addition to the members serving on the date of enactment of
this Act.
(2) Initial terms.--Notwithstanding section 2(d) of the
Tennessee Valley Authority Act of 1933 (as amended by this
subtitle), in making the appointments under paragraph (1),
the President shall appoint--
(A) 2 members for a term to expire on May 18, 2006;
(B) 2 members for a term to expire on May 18, 2008; and
(C) 2 members for a term to expire on May 18, 2010.
(b) Effective Date.--The amendments made by this section
and sections 1431, 1432, and 1433 take effect on the later of
the date on which at least 3 persons nominated under
subsection (a) take office or May 18, 2005.
(c) Selection of Chairman.--The Board of Directors of the
Tennessee Valley Authority shall select 1 of the members to
act as chairman of the Board not later than 30 days after the
effective date of this section.
(d) Conflict-of-Interest Policy.--The Board of Directors of
the Tennessee Valley Authority shall adopt and submit to
Congress a conflict-of-interest policy, as required by
section 2(g)(1)(E) of the Tennessee Valley Authority Act of
1933 (as amended by this subtitle), as soon as practicable
after the effective date of this section.
(e) Transition.--A person who is serving as a member of the
board of directors of the Tennessee Valley Authority on the
date of enactment of this Act--
(1) shall continue to serve until the end of the current
term of the member; but
(2) after the effective date specified in subsection (b),
shall serve under the terms of the Tennessee Valley Authority
Act of 1933 (as amended by this subtitle); and
[[Page 29229]]
(3) may not be reappointed.
Subtitle D--Other Provisions
SEC. 1441. CONTINUATION OF TRANSMISSION SECURITY ORDER.
Department of Energy Order No. 202-03-2, issued by the
Secretary of Energy on August 28, 2003, shall remain in
effect unless rescinded by Federal statute.
SEC. 1442. REVIEW OF AGENCY DETERMINATIONS.
Section 7 of the Natural Gas Act (15 U.S.C. 717f) is
amended by adding at the end the following:
``(i)(1) The United States Court of Appeals for the
District of Columbia Circuit shall have original and
exclusive jurisdiction over any civil action--
``(A) for review of any order or action of any Federal or
State administrative agency or officer to issue, condition,
or deny any permit, license, concurrence, or approval issued
under authority of any Federal law, other than the Coastal
Zone Management Act of 1972 (16 U.S.C. 1451 et seq.),
required for the construction of a natural gas pipeline for
which a certificate of public convenience and necessity is
issued by the Commission under this section;
``(B) alleging unreasonable delay by any Federal or State
administrative agency or officer in entering an order or
taking other action described in subparagraph (A); or
``(C) challenging any decision made or action taken under
this subsection.
``(2)(A) If the Court finds that the order, action, or
failure to act is not consistent with the public convenience
and necessity (as determined by the Commission under this
section), or would prevent the construction and operation of
natural gas facilities authorized by the certificate of
public convenience and necessity, the permit, license,
concurrence, or approval that is the subject of the order,
action, or failure to act shall be deemed to have been issued
subject to any conditions set forth in the reviewed order or
action that the Court finds to be consistent with the public
convenience and necessity.
``(B) For purposes of paragraph (1)(B), the failure of an
agency or officer to issue any such permit, license,
concurrence, or approval within the later of 1 year after the
date of filing of an application for the permit, license,
concurrence, or approval or 60 days after the date of
issuance of the certificate of public convenience and
necessity under this section, shall be considered to be
unreasonable delay unless the Court, for good cause shown,
determines otherwise.
``(C) The Court shall set any action brought under
paragraph (1) for expedited consideration.''.
SEC. 1443. ATTAINMENT DATES FOR DOWNWIND OZONE NONATTAINMENT
AREAS.
Section 181 of the Clean Air Act (42 U.S.C.7511) is amended
by adding the following new subsection at the end thereof:
``(d) Extended Attainment Date for Certain Downwind
Areas.--
``(1) Definitions.--(A) The term `upwind area' means an
area that--
``(i) significantly contributes to nonattainment in another
area, hereinafter referred to as a `downwind area'; and
``(ii) is either--
``(I) a nonattainment area with a later attainment date
than the downwind area, or
``(II) an area in another State that the Administrator has
found to be significantly contributing to nonattainment in
the downwind area in violation of section 110(a)(2)(D) and
for which the Administrator has established requirements
through notice and comment rulemaking to eliminate the
emissions causing such significant contribution.
``(B) The term `current classification' means the
classification of a downwind area under this section at the
time of the determination under paragraph (2).
``(2) Extension.--If the Administrator--
``(A) determines that any area is a downwind area with
respect to a particular national ambient air quality standard
for ozone; and
``(B) approves a plan revision for such area as provided in
paragraph (3) prior to a reclassification under subsection
(b)(2)(A),
the Administrator, in lieu of such reclassification, shall
extend the attainment date for such downwind area for such
standard in accordance with paragraph (5).
``(3) Required approval.--In order to extend the attainment
date for a downwind area under this subsection, the
Administrator must approve a revision of the applicable
implementation plan for the downwind area for such standard
that--
``(A) complies with all requirements of this Act applicable
under the current classification of the downwind area,
including any requirements applicable to the area under
section 172(c) for such standard; and
``(B) includes any additional measures needed to
demonstrate attainment by the extended attainment date
provided under this subsection.
``(4) Prior reclassification determination.--If, no more
than 18 months prior to the date of enactment of this
subsection, the Administrator made a reclassification
determination under subsection (b)(2)(A) for any downwind
area, and the Administrator approves the plan revision
referred to in paragraph (3) for such area within 12 months
after the date of enactment of this subsection, the
reclassification shall be withdrawn and the attainment date
extended in accordance with paragraph (5) upon such approval.
The Administrator shall also withdraw a reclassification
determination under subsection (b)(2)(A) made after the date
of enactment of this subsection and extend the attainment
date in accordance with paragraph (5) if the Administrator
approves the plan revision referred to in paragraph (3)
within 12 months of the date the reclassification
determination under subsection (b)(2)(A) is issued. In such
instances the `current classification' used for evaluating
the revision of the applicable implementation plan under
paragraph (3) shall be the classification of the downwind
area under this section immediately prior to such
reclassification.
``(5) Extended date.--The attainment date extended under
this subsection shall provide for attainment of such national
ambient air quality standard for ozone in the downwind area
as expeditiously as practicable but no later than the date on
which the last reductions in pollution transport necessary
for attainment in the downwind area are required to be
achieved by the upwind area or areas.''.
SEC. 1444. ENERGY PRODUCTION INCENTIVES
(a) In General.--A State may provide to any entity--
(1) a credit against any tax or fee owed to the State under
a State law, or
(2) any other tax incentive,
determined by the State to be appropriate, in the amount
calculated under and in accordance with a formula determined
by the State, for production described in subsection (b) in
the State by the entity that receives such credit or such
incentive.
(b) Eligible Entities.--Subsection (a) shall apply with
respect to the production in the State of--
(1) electricity from coal mined in the State and used in a
facility, if such production meets all applicable Federal and
State laws and if such facility uses scrubbers or other forms
of clean coal technology,
(2) electricity from a renewable source such as wind,
solar, or biomass, or
(3) ethanol.
(c) Effect on Interstate Commerce--Any action taken by a
State in accordance with this section with respect to a tax
or fee payable, or incentive applicable, for any period
beginning after the date of the enactment of this Act shall--
(1) be considered to be a reasonable regulation of
commerce; and
(2) not be considered to impose an undue burden on
interstate commerce or to otherwise impair, restrain, or
discriminate, against interstate commerce.
SEC. 1445. USE OF GRANULAR MINE TAILINGS.
(a) Amendment.--Subtitle F of the Solid Waste Disposal Act
(42 U.S.C. 6961 et seq.) is amended by adding at the end the
following:
``SEC. 6006. USE OF GRANULAR MINE TAILINGS.
``(a) Mine Tailings.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section, the Administrator, in
consultation with the Secretary of Transportation and heads
of other Federal agencies, shall establish criteria
(including an evaluation of whether to establish a numerical
standard for concentration of lead and other hazardous
substances) for the safe and environmentally protective use
of granular mine tailings from the Tar Creek, Oklahoma Mining
District, known as `chat', for--
``(A) cement or concrete projects; and
``(B) transportation construction projects (including
transportation construction projects involving the use of
asphalt) that are carried out, in whole or in part, using
Federal funds.
``(2) Requirements.--In establishing criteria under
paragraph (1), the Administrator shall consider--
``(A) the current and previous uses of granular mine
tailings as an aggregate for asphalt; and
``(B) any environmental and public health risks and
benefits derived from the removal, transportation, and use in
transportation projects of granular mine tailings.
``(3) Public participation.--In establishing the criteria
under paragraph (1), the Administrator shall solicit and
consider comments from the public.
``(4) Applicability of criteria.--On the establishment of
the criteria under paragraph (1), any use of the granular
mine tailings described in paragraph (1) in a transportation
project that is carried out, in whole or in part, using
Federal funds, shall meet the criteria established under
paragraph (1).
``(b) Effect of Sections.--Nothing in this section or
section 6005 affects any requirement of any law (including a
regulation) in effect on the date of enactment of this
section.''.
(b) Conforming Amendment.--The table of contents of the
Solid Waste Disposal Act (42 U.S.C. prec. 6901) is amended by
adding at the end of the items relating to subtitle F the
following:
``Sec. 6006. Use of granular mine tailings.''.
TITLE XV--ETHANOL AND MOTOR FUELS
Subtitle A--General Provisions
SEC. 1501. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.
(a) In General.--Section 211 of the Clean Air Act (42
U.S.C. 7545) is amended--
(1) by redesignating subsection (o) as subsection (q); and
(2) by inserting after subsection (n) the following:
``(o) Renewable Fuel Program.--
``(1) Definitions.--In this section:
``(A) Ethanol.--(i) The term `cellulosic biomass ethanol'
means ethanol derived from any lignocellulosic or
hemicellulosic matter that is available on a renewable or
recurring basis, including--
``(I) dedicated energy crops and trees;
``(II) wood and wood residues;
``(III) plants;
``(IV) grasses;
[[Page 29230]]
``(V) agricultural residues; and
``(VI) fibers.
``(ii) The term `waste derived ethanol' means ethanol
derived from--
``(I) animal wastes, including poultry fats and poultry
wastes, and other waste materials; or
``(II) municipal solid waste.
``(B) Renewable fuel.--
``(i) In general.--The term `renewable fuel' means motor
vehicle fuel that--
``(I)(aa) is produced from grain, starch, oilseeds, or
other biomass; or
``(bb) is natural gas produced from a biogas source,
including a landfill, sewage waste treatment plant, feedlot,
or other place where decaying organic material is found; and
``(II) is used to replace or reduce the quantity of fossil
fuel present in a fuel mixture used to operate a motor
vehicle.
``(ii) Inclusion.--The term `renewable fuel' includes
cellulosic biomass ethanol, waste derived ethanol, and
biodiesel (as defined in section 312(f) of the Energy Policy
Act of 1992 (42 U.S.C. 13220(f)) and any blending components
derived from renewable fuel (provided that only the renewable
fuel portion of any such blending component shall be
considered part of the applicable volume under the renewable
fuel program established by this subsection).
``(C) Small refinery.--The term `small refinery' means a
refinery for which average aggregate daily crude oil
throughput for the calendar year (as determined by dividing
the aggregate throughput for the calendar year by the number
of days in the calendar year) does not exceed 75,000 barrels.
``(2) Renewable fuel program.--
``(A) In general.--Not later than 1 year after the
enactment of this subsection, the Administrator shall
promulgate regulations ensuring that motor vehicle fuel sold
or dispensed to consumers in the contiguous United States, on
an annual average basis, contains the applicable volume of
renewable fuel as specified in subparagraph (B). Regardless
of the date of promulgation, such regulations shall contain
compliance provisions for refiners, blenders, and importers,
as appropriate, to ensure that the requirements of this
section are met, but shall not restrict where renewable fuel
can be used, or impose any per-gallon obligation for the use
of renewable fuel. If the Administrator does not promulgate
such regulations, the applicable percentage referred to in
paragraph (4), on a volume percentage of gasoline basis,
shall be 2.2 in 2005.
``(B) Applicable volume.--
``(i) Calendar years 2005 through 2012.--For the purpose of
subparagraph (A), the applicable volume for any of calendar
years 2005 through 2012 shall be determined in accordance
with the following table:
``Applicable volume of renewable fuel
Calendar year: (In billions of gallons)
2005...........................................................3.1
2006...........................................................3.3
2007...........................................................3.5
2008...........................................................3.8
2009...........................................................4.1
2010...........................................................4.4
2011...........................................................4.7
2012...........................................................5.0
``(ii) Calendar year 2013 and thereafter.--For the purpose
of subparagraph (A), the applicable volume for calendar year
2013 and each calendar year thereafter shall be equal to the
product obtained by multiplying--
``(I) the number of gallons of gasoline that the
Administrator estimates will be sold or introduced into
commerce in the calendar year; and
``(II) the ratio that--
``(aa) 5.0 billion gallons of renewable fuels; bears to
``(bb) the number of gallons of gasoline sold or introduced
into commerce in calendar year 2012.
``(3) Non-contiguous State Opt-In.--Upon the petition of a
non-contiguous State, the Administrator may allow the
renewable fuel program established by subtitle A of title XV
of the Energy Policy Act of 2003 to apply in such non-
contiguous State at the same time or any time after the
Administrator promulgates regulations under paragraph (2).
The Administrator may promulgate or revise regulations under
paragraph (2), establish applicable percentages under
paragraph (4), provide for the generation of credits under
paragraph (6), and take such other actions as may be
necessary to allow for the application of the renewable fuels
program in a non-contiguous State.
``(4) Applicable percentages.--
``(A) Provision of estimate of volumes of gasoline sales.--
Not later than October 31 of each of calendar years 2004
through 2011, the Administrator of the Energy Information
Administration shall provide to the Administrator of the
Environmental Protection Agency an estimate of the volumes of
gasoline that will be sold or introduced into commerce in the
United States during the following calendar year.
``(B) Determination of applicable percentages.--
``(i) In general.--Not later than November 30 of each of
the calendar years 2004 through 2011, based on the estimate
provided under subparagraph (A), the Administrator shall
determine and publish in the Federal Register, with respect
to the following calendar year, the renewable fuel obligation
that ensures that the requirements of paragraph (2) are met.
``(ii) Required elements.--The renewable fuel obligation
determined for a calendar year under clause (i) shall--
``(I) be applicable to refiners, blenders, and importers,
as appropriate;
``(II) be expressed in terms of a volume percentage of
gasoline sold or introduced into commerce; and
``(III) subject to subparagraph (C)(i), consist of a single
applicable percentage that applies to all categories of
persons specified in subclause (I).
``(C) Adjustments.--In determining the applicable
percentage for a calendar year, the Administrator shall make
adjustments--
``(i) to prevent the imposition of redundant obligations to
any person specified in subparagraph (B)(ii)(I); and
``(ii) to account for the use of renewable fuel during the
previous calendar year by small refineries that are exempt
under paragraph (11).
``(5) Equivalency.--For the purpose of paragraph (2), 1
gallon of either cellulosic biomass ethanol or waste derived
ethanol--
``(A) shall be considered to be the equivalent of 1.5
gallon of renewable fuel; or
``(B) if the cellulostic biomass ethanol or waste derived
ethanol is derived from agricultural residue or is an
agricultural byproduct (as that term is used in section 919
of the Energy Policy Act of 2003), shall be considered to be
the equivalent of 2.5 gallons of renewable fuel.
``(6) Credit program.--
``(A) In general.--The regulations promulgated to carry out
this subsection shall provide for the generation of an
appropriate amount of credits by any person that refines,
blends, or imports gasoline that contains a quantity of
renewable fuel that is greater than the quantity required
under paragraph (2). Such regulations shall provide for the
generation of an appropriate amount of credits for biodiesel
fuel. If a small refinery notifies the Administrator that it
waives the exemption provided paragraph (11), the regulations
shall provide for the generation of credits by the small
refinery beginning in the year following such notification.
``(B) Use of credits.--A person that generates credits
under subparagraph (A) may use the credits, or transfer all
or a portion of the credits to another person, for the
purpose of complying with paragraph (2).
``(C) Life of credits.--A credit generated under this
paragraph shall be valid to show compliance--
``(i) in the calendar year in which the credit was
generated or the next calendar year; or
``(ii) in the calendar year in which the credit was
generated or next two consecutive calendar years if the
Administrator promulgates regulations under paragraph (7).
``(D) Inability to purchase sufficient credits.--The
regulations promulgated to carry out this subsection shall
include provisions allowing any person that is unable to
generate or purchase sufficient credits to meet the
requirements under paragraph (2) to carry forward a renewable
fuel deficit provided that, in the calendar year following
the year in which the renewable fuel deficit is created, such
person shall achieve compliance with the renewable fuel
requirement under paragraph (2), and shall generate or
purchase additional renewable fuel credits to offset the
renewable fuel deficit of the previous year.
``(7) Seasonal variations in renewable fuel use.--
``(A) Study.--For each of the calendar years 2005 through
2012, the Administrator of the Energy Information
Administration shall conduct a study of renewable fuels
blending to determine whether there are excessive seasonal
variations in the use of renewable fuels.
``(B) Regulation of excessive seasonal variations.--If, for
any calendar year, the Administrator of the Energy
Information Administration, based on the study under
subparagraph (A), makes the determinations specified in
subparagraph (C), the Administrator shall promulgate
regulations to ensure that 35 percent or more of the quantity
of renewable fuels necessary to meet the requirement of
paragraph (2) is used during each of the periods specified in
subparagraph (D) of each subsequent calendar year.
``(C) Determinations.--The determinations referred to in
subparagraph (B) are that--
``(i) less than 35 percent of the quantity of renewable
fuels necessary to meet the requirement of paragraph (2) has
been used during one of the periods specified in subparagraph
(D) of the calendar year;
``(ii) a pattern of excessive seasonal variation described
in clause (i) will continue in subsequent calendar years; and
``(iii) promulgating regulations or other requirements to
impose a 35 percent or more seasonal use of renewable fuels
will not prevent or interfere with the attainment of national
ambient air quality standards or significantly increase the
price of motor fuels to the consumer.
``(D) Periods.--The two periods referred to in this
paragraph are--
``(i) April through September; and
``(ii) January through March and October through December.
``(E) Exclusions.--Renewable fuels blended or consumed in
2005 in a State which has received a waiver under section
209(b) shall not be included in the study in subparagraph
(A).
``(8) Waivers.--
``(A) In general.--The Administrator, in consultation with
the Secretary of Agriculture and the Secretary of Energy, may
waive the requirement of paragraph (2) in whole or in part on
petition by one or more States by reducing the national
quantity of renewable fuel required under this subsection--
``(i) based on a determination by the Administrator, after
public notice and opportunity for
[[Page 29231]]
comment, that implementation of the requirement would
severely harm the economy or environment of a State, a
region, or the United States; or
``(ii) based on a determination by the Administrator, after
public notice and opportunity for comment, that there is an
inadequate domestic supply or distribution capacity to meet
the requirement.
``(B) Petitions for waivers.--The Administrator, in
consultation with the Secretary of Agriculture and the
Secretary of Energy, shall approve or disapprove a State
petition for a waiver of the requirement of paragraph (2)
within 90 days after the date on which the petition is
received by the Administrator.
``(C) Termination of waivers.--A waiver granted under
subparagraph (A) shall terminate after 1 year, but may be
renewed by the Administrator after consultation with the
Secretary of Agriculture and the Secretary of Energy.
``(9) Study and waiver for initial year of program.--Not
later than 180 days after the enactment of this subsection,
the Secretary of Energy shall complete for the Administrator
a study assessing whether the renewable fuels requirement
under paragraph (2) will likely result in significant adverse
consumer impacts in 2005, on a national, regional, or State
basis. Such study shall evaluate renewable fuel supplies and
prices, blendstock supplies, and supply and distribution
system capabilities. Based on such study, the Secretary shall
make specific recommendations to the Administrator regarding
waiver of the requirements of paragraph (2), in whole or in
part, to avoid any such adverse impacts. Within 270 days
after the enactment of this subsection, the Administrator
shall, consistent with the recommendations of the Secretary,
waive, in whole or in part, the renewable fuels requirement
under paragraph (2) by reducing the national quantity of
renewable fuel required under this subsection in 2005. This
paragraph shall not be interpreted as limiting the
Administrator's authority to waive the requirements of
paragraph (2) in whole, or in part, under paragraph (8) or
paragraph (10), pertaining to waivers.
``(10) Assessment and waiver.--The Administrator, in
consultation with the Secretary of Energy and the Secretary
of Agriculture, shall evaluate the requirement of paragraph
(2) and determine, prior to January 1, 2007, and prior to
January 1 of any subsequent year in which the applicable
volume of renewable fuel is increased under paragraph (2)(B),
whether the requirement of paragraph (2), including the
applicable volume of renewable fuel contained in paragraph
(2)(B) should remain in effect, in whole or in part, during
2007 or any year or years subsequent to 2007. In evaluating
the requirement of paragraph (2) and in making any
determination under this section, the Administrator shall
consider the best available information and data collected by
accepted methods or best available means regarding--
``(A) the capacity of renewable fuel producers to supply an
adequate amount of renewable fuel at competitive prices to
fulfill the requirement of paragraph (2);
``(B) the potential of the requirement of paragraph (2) to
significantly raise the price of gasoline, food (excluding
the net price impact on the requirement in paragraph (2) on
commodities used in the production of ethanol), or heating
oil for consumers in any significant area or region of the
country above the price that would otherwise apply to such
commodities in the absence of such requirement;
``(C) the potential of the requirement of paragraph (2) to
interfere with the supply of fuel in any significant gasoline
market or region of the country, including interference with
the efficient operation of refiners, blenders, importers,
wholesale suppliers, and retail vendors of gasoline, and
other motor fuels; and
``(D) the potential of the requirement of paragraph (2) to
cause or promote exceedances of Federal, State, or local air
quality standards.
If the Administrator determines, by clear and convincing
information, after public notice and the opportunity for
comment, that the requirement of paragraph (2) would have
significant and meaningful adverse impact on the supply of
fuel and related infrastructure or on the economy, public
health, or environment of any significant area or region of
the country, the Administrator may waive, in whole or in
part, the requirement of paragraph (2) in any one year for
which the determination is made for that area or region of
the country, except that any such waiver shall not have the
effect of reducing the applicable volume of renewable fuel
specified in paragraph (2)(B) with respect to any year for
which the determination is made. In determining economic
impact under this paragraph, the Administrator shall not
consider the reduced revenues available from the Highway
Trust Fund (section 9503 of the Internal Revenue Code of
1986) as a result of the use of ethanol.
``(11) Small refineries.--
``(A) In general.--The requirement of paragraph (2) shall
not apply to small refineries until the first calendar year
beginning more than 5 years after the first year set forth in
the table in paragraph (2)(B)(i). Not later than December 31,
2007, the Secretary of Energy shall complete for the
Administrator a study to determine whether the requirement of
paragraph (2) would impose a disproportionate economic
hardship on small refineries. For any small refinery that the
Secretary of Energy determines would experience a
disproportionate economic hardship, the Administrator shall
extend the small refinery exemption for such small refinery
for no less than two additional years.
``(B) Economic hardship.--
``(i) Extension of exemption.--A small refinery may at any
time petition the Administrator for an extension of the
exemption from the requirement of paragraph (2) for the
reason of disproportionate economic hardship. In evaluating a
hardship petition, the Administrator, in consultation with
the Secretary of Energy, shall consider the findings of the
study in addition to other economic factors.
``(ii) Deadline for action on petitions.--The Administrator
shall act on any petition submitted by a small refinery for a
hardship exemption not later than 90 days after the receipt
of the petition.
``(C) Credit program.--If a small refinery notifies the
Administrator that it waives the exemption provided by this
Act, the regulations shall provide for the generation of
credits by the small refinery beginning in the year following
such notification.
``(D) Opt-in for small refiners.--A small refinery shall be
subject to the requirements of this section if it notifies
the Administrator that it waives the exemption under
subparagraph (A).
``(12) Ethanol market concentration analysis.--
``(A) Analysis.--
``(i) In general.--Not later than 180 days after the date
of enactment of this subsection, and annually thereafter, the
Federal Trade Commission shall perform a market concentration
analysis of the ethanol production industry using the
Herfindahl-Hirschman Index to determine whether there is
sufficient competition among industry participants to avoid
price setting and other anticompetitive behavior.
``(ii) Scoring.--For the purpose of scoring under clause
(i) using the Herfindahl-Hirschman Index, all marketing
arrangements among industry participants shall be considered.
``(B) Report.--Not later than December 1, 2004, and
annually thereafter, the Federal Trade Commission shall
submit to Congress and the Administrator a report on the
results of the market concentration analysis performed under
subparagraph (A)(i).''.
(b) Penalties and Enforcement.--Section 211(d) of the Clean
Air Act (42 U.S.C. 7545(d)) is amended as follows:
(1) In paragraph (1)--
(A) in the first sentence, by striking ``or (n)'' each
place it appears and inserting ``(n), or (o)''; and
(B) in the second sentence, by striking ``or (m)'' and
inserting ``(m), or (o)''.
(2) In the first sentence of paragraph (2), by striking
``and (n)'' each place it appears and inserting ``(n), and
(o)''.
(c) Survey of Renewable Fuel Market.--
(1) Survey and report.--Not later than December 1, 2006,
and annually thereafter, the Administrator of the
Environmental Protection Agency (in consultation with the
Secretary of Energy acting through the Administrator of the
Energy Information Administration) shall--
(A) conduct, with respect to each conventional gasoline use
area and each reformulated gasoline use area in each State, a
survey to determine the market shares of--
(i) conventional gasoline containing ethanol;
(ii) reformulated gasoline containing ethanol;
(iii) conventional gasoline containing renewable fuel; and
(iv) reformulated gasoline containing renewable fuel; and
(B) submit to Congress, and make publicly available, a
report on the results of the survey under subparagraph (A).
(2) Recordkeeping and reporting requirements.--The
Administrator of the Environmental Protection Agency
(hereinafter in this subsection referred to as the
``Administrator'') may require any refiner, blender, or
importer to keep such records and make such reports as are
necessary to ensure that the survey conducted under paragraph
(1) is accurate. The Administrator, to avoid duplicative
requirements, shall rely, to the extent practicable, on
existing reporting and recordkeeping requirements and other
information available to the Administrator including gasoline
distribution patterns that include multistate use areas.
(3) Applicable law.--Activities carried out under this
subsection shall be conducted in a manner designed to protect
confidentiality of individual responses.
SEC. 1502. FUELS SAFE HARBOR.
(a) In General.--Notwithstanding any other provision of
Federal or State law, no renewable fuel, as defined by
section 211(o)(1) of the Clean Air Act, or methyl tertiary
butyl ether (hereinafterin this section referred to as
``MTBE''), used or intended to be used as a motor vehicle
fuel, nor any motor vehicle fuel containing such renewable
fuel or MTBE, shall be deemed a defective product by virtue
of the fact that it is, or contains, such a renewable fuel or
MTBE, if it does not violate a control or prohibition imposed
by the Administrator of the Environmental Protection Agency
(hereinafter in this section referred to as the
``Administrator'') under section 211 of such Act, and the
manufacturer is in compliance with all requests for
information under subsection (b) of such section 211 of such
Act. If the safe harbor provided by this section does not
apply, the existence of a claim of defective product shall be
determined under otherwise applicable law. Nothing in this
subsection shall be construed to affect the liability of any
person for environmental remediation costs, drinking water
contamination, negligence for spills or other reasonably
foreseeable events,
[[Page 29232]]
public or private nuisance, trespass, breach of warranty,
breach of contract, or any other liability other than
liability based upon a claim of defective product.
(b) Effective Date.--This section shall be effective as of
September 5, 2003, and shall apply with respect to all claims
filed on or after that date.
SEC. 1503. FINDINGS AND MTBE TRANSITION ASSISTANCE.
(a) Findings.--Congress finds that--
(1) since 1979, methyl tertiary butyl ether (hereinafter in
this section referred to as ``MTBE'') has been used
nationwide at low levels in gasoline to replace lead as an
octane booster or anti-knocking agent;
(2) Public Law 101-549 (commonly known as the ``Clean Air
Act Amendments of 1990'') (42 U.S.C. 7401 et seq.)
established a fuel oxygenate standard under which
reformulated gasoline must contain at least 2 percent oxygen
by weight;
(3) at the time of the adoption of the fuel oxygen
standard, Congress was aware that significant use of MTBE
would result from the adoption of that standard, and that the
use of MTBE would likely be important to the cost-effective
implementation of that program;
(4) Congress was aware that gasoline and its component
additives can and do leak from storage tanks;
(5) the fuel industry responded to the fuel oxygenate
standard established by Public Law 101-549 by making
substantial investments in--
(A) MTBE production capacity; and
(B) systems to deliver MTBE-containing gasoline to the
marketplace;
(6) having previously required oxygenates like MTBE for air
quality purposes, Congress has--
(A) reconsidered the relative value of MTBE in gasoline;
(B) decided to establish a date certain for action by the
Environmental Protection Agency to prohibit the use of MTBE
in gasoline; and
(C) decided to provide for the elimination of the oxygenate
requirement for reformulated gasoline and to provide for a
renewable fuels content requirement for motor fuel; and
(7) it is appropriate for Congress to provide some limited
transition assistance--
(A) to merchant producers of MTBE who produced MTBE in
response to a market created by the oxygenate requirement
contained in the Clean Air Act; and
(B) for the purpose of mitigating any fuel supply problems
that may result from the elimination of the oxygenate
requirement for reformulated gasoline and from the decision
to establish a date certain for action by the Environmental
Protection Agency to prohibit the use of MTBE in gasoline.
(b) Purposes.--The purpose of this section is to provide
assistance to merchant producers of MTBE in making the
transition from producing MTBE to producing other fuel
additives.
(c) MTBE Merchant Producer Conversion Assistance.--Section
211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is amended by
adding at the end the following:
``(5) MTBE merchant producer conversion assistance.--
``(A) In general.--
``(i) Grants.--The Secretary of Energy, in consultation
with the Administrator, may make grants to merchant producers
of methyl tertiary butyl ether (hereinafter in this
subsection referred to as `MTBE') in the United States to
assist the producers in the conversion of eligible production
facilities described in subparagraph (C) to the production of
iso-octane, iso-octene, alkylates, or renewable fuels.
``(ii) Determination.--The Administrator, in consultation
with the Secretary of Energy, may determine that transition
assistance for the production of iso-octane, iso-octene,
alkylates, or renewable fuels is inconsistent with the
provisions of subparagraph (B) and, on that basis, may deny
applications for grants authorized by this paragraph.
``(B) Further grants.--The Secretary of Energy, in
consultation with the Administrator, may also further make
grants to merchant producers of MTBE in the United States to
assist the producers in the conversion of eligible production
facilities described in subparagraph (C) to the production of
such other fuel additives (unless the Administrator
determines that such fuel additives may reasonably be
anticipated to endanger public health or the environment)
that, consistent with this subsection--
``(i) have been registered and have been tested or are
being tested in accordance with the requirements of this
section; and
``(ii) will contribute to replacing gasoline volumes lost
as a result of amendments made to subsection (k) of this
section by section 1504(a) and 1506 of the Energy Policy Act
of 2003.
``(C) Eligible production facilities.--A production
facility shall be eligible to receive a grant under this
paragraph if the production facility--
``(i) is located in the United States; and
``(ii) produced MTBE for consumption before April 1, 2003
and ceased production at any time after the date of enactment
of this paragraph.
``(D) Authorization of appropriations.--There are
authorized to be appropriated to carry out this paragraph
$250,000,000 for each of fiscal years 2005 through 2012, to
remain available until expended.''.
(d) Effect on State Law.--The amendments made to the Clean
Air Act by this title have no effect regarding any available
authority of States to limit the use of methyl tertiary butyl
ether in motor vehicle fuel.
SEC. 1504. USE OF MTBE.
(a) In General.--Subject to subsections (e) and (f), not
later than December 31, 2014, the use of methyl tertiary
butyl ether (hereinafter in this section referred to as
``MTBE'') in motor vehicle fuel in any State other than a
State described in subsection (c) is prohibited.
(b) Regulations.--The Administrator of the Environmental
Protection Agency (hereafter referred to in this section as
the ``Administrator'') shall promulgate regulations to effect
the prohibition in subsection (a).
(c) States That Authorize Use.--A State described in this
subsection is a State in which the Governor of the State
submits a notification to the Administrator authorizing the
use of MTBE in motor vehicle fuel sold or used in the State.
(d) Publication of Notice.--The Administrator shall publish
in the Federal Register each notice submitted by a State
under subsection (c).
(e) Trace Quantities.--In carrying out subsection (a), the
Administrator may allow trace quantities of MTBE, not to
exceed 0.5 percent by volume, to be present in motor vehicle
fuel in cases that the Administrator determines to be
appropriate.
(f) Limitation.--The Administrator, under authority of
subsection (a), shall not prohibit or control the production
of MTBE for export from the United States or for any other
use other than for use in motor vehicle fuel.
SEC. 1505. NATIONAL ACADEMY OF SCIENCES REVIEW AND
PRESIDENTIAL DETERMINATION.
(a) NAS Review.--Not later than May 31, 2013, the Secretary
shall enter into an arrangement with the National Academy of
Sciences to review the use of methyl tertiary butyl ether
(hereafter referred to in this section as ``MTBE'') in fuel
and fuel additives. The review shall only use the best
available scientific information and data collected by
accepted methods or the best available means. The review
shall examine the use of MTBE in fuel and fuel additives,
significant beneficial and detrimental effects of this use on
environmental quality or public health or welfare including
the costs and benefits of such effects, likely effects of
controls or prohibitions on MTBE regarding fuel availability
and price, and other appropriate and reasonable actions that
are available to protect the environment or public health or
welfare from any detrimental effects of the use of MTBE in
fuel or fuel additives. The review shall be peer-reviewed
prior to publication and all supporting data and analytical
models shall be available to the public. The review shall be
completed no later than May 31, 2014.
(b) Presidential Determination.--No later than June 30,
2014, the President may make a determination that
restrictions on the use of MTBE to be implemented pursuant to
section 1504 shall not take place and that the legal
authority contained in section 1504 to prohibit the use of
MTBE in motor vehicle fuel shall become null and void.
SEC. 1506. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR
REFORMULATED GASOLINE.
(a) Elimination.--
(1) In general.--Section 211(k) of the Clean Air Act (42
U.S.C. 7545(k)) is amended as follows:
(A) In paragraph (2)--
(i) in the second sentence of subparagraph (A), by striking
``(including the oxygen content requirement contained in
subparagraph (B))'';
(ii) by striking subparagraph (B); and
(iii) by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C), respectively.
(B) In paragraph (3)(A), by striking clause (v).
(C) In paragraph (7)--
(i) in subparagraph (A)--
(I) by striking clause (i); and
(II) by redesignating clauses (ii) and (iii) as clauses (i)
and (ii), respectively; and
(ii) in subparagraph (C)--
(I) by striking clause (ii).
(II) by redesignating clause (iii) as clause (ii).
(2) Effective date.--The amendments made by paragraph (1)
take effect 270 days after the date of enactment of this Act,
except that such amendments shall take effect upon such date
of enactment in any State that has received a waiver under
section 209(b) of the Clean Air Act.
(b) Maintenance of Toxic Air Pollutant Emission
Reductions.--Section 211(k)(1) of the Clean Air Act (42
U.S.C. 7545(k)(1)) is amended as follows:
(1) By striking ``Within 1 year after the enactment of the
Clean Air Act Amendments of 1990,'' and inserting the
following:
``(A) In general.--Not later than November 15, 1991,''.
(2) By adding at the end the following:
``(B) Maintenance of toxic air pollutant emissions
reductions from reformulated gasoline.--
``(i) Definitions.--In this subparagraph the term `PADD'
means a Petroleum Administration for Defense District.
``(ii) Regulations regarding emissions of toxic air
pollutants.--Not later than 270 days after the date of
enactment of this subparagraph the Administrator shall
establish, for each refinery or importer, standards for toxic
air pollutants from use of the reformulated gasoline produced
or distributed by the refinery or importer that maintain the
reduction of the average annual aggregate emissions of toxic
air pollutants for reformulated gasoline produced or
distributed by the refinery or importer during calendar years
1999 and 2000, determined on the basis of data collected by
the Administrator with respect to the refinery or importer.
[[Page 29233]]
``(iii) Standards applicable to specific refineries or
importers.--
``(I) Applicability of standards.--For any calendar year,
the standards applicable to a refinery or importer under
clause (ii) shall apply to the quantity of gasoline produced
or distributed by the refinery or importer in the calendar
year only to the extent that the quantity is less than or
equal to the average annual quantity of reformulated gasoline
produced or distributed by the refinery or importer during
calendar years 1999 and 2000.
``(II) Applicability of other standards.--For any calendar
year, the quantity of gasoline produced or distributed by a
refinery or importer that is in excess of the quantity
subject to subclause (I) shall be subject to standards for
toxic air pollutants promulgated under subparagraph (A) and
paragraph (3)(B).
``(iv) Credit program.--The Administrator shall provide for
the granting and use of credits for emissions of toxic air
pollutants in the same manner as provided in paragraph (7).
``(v) Regional protection of toxics reduction baselines.--
``(I) In general.--Not later than 60 days after the date of
enactment of this subparagraph, and not later than April 1 of
each calendar year that begins after that date of enactment,
the Administrator shall publish in the Federal Register a
report that specifies, with respect to the previous calendar
year--
``(aa) the quantity of reformulated gasoline produced that
is in excess of the average annual quantity of reformulated
gasoline produced in 1999 and 2000; and
``(bb) the reduction of the average annual aggregate
emissions of toxic air pollutants in each PADD, based on
retail survey data or data from other appropriate sources.
``(II) Effect of failure to maintain aggregate toxics
reductions.--If, in any calendar year, the reduction of the
average annual aggregate emissions of toxic air pollutants in
a PADD fails to meet or exceed the reduction of the average
annual aggregate emissions of toxic air pollutants in the
PADD in calendar years 1999 and 2000, the Administrator, not
later than 90 days after the date of publication of the
report for the calendar year under subclause (I), shall--
``(aa) identify, to the maximum extent practicable, the
reasons for the failure, including the sources, volumes, and
characteristics of reformulated gasoline that contributed to
the failure; and
``(bb) promulgate revisions to the regulations promulgated
under clause (ii), to take effect not earlier than 180 days
but not later than 270 days after the date of promulgation,
to provide that, notwithstanding clause (iii)(II), all
reformulated gasoline produced or distributed at each
refinery or importer shall meet the standards applicable
under clause (ii) not later than April 1 of the year
following the report in subclause (II) and for subsequent
years.
``(vi) Regulations to control hazardous air pollutants from
motor vehicles and motor vehicle fuels.--Not later than July
1, 2004, the Administrator shall promulgate final regulations
to control hazardous air pollutants from motor vehicles and
motor vehicle fuels, as provided for in section 80.1045 of
title 40, Code of Federal Regulations (as in effect on the
date of enactment of this subparagraph).''.
(c) Consolidation in Reformulated Gasoline Regulations.--
Not later than 180 days after the date of enactment of this
Act, the Administrator of the Environmental Protection Agency
shall revise the reformulated gasoline regulations under
subpart D of part 80 of title 40, Code of Federal
Regulations, to consolidate the regulations applicable to
VOC-Control Regions 1 and 2 under section 80.41 of that title
by eliminating the less stringent requirements applicable to
gasoline designated for VOC-Control Region 2 and instead
applying the more stringent requirements applicable to
gasoline designated for VOC-Control Region 1.
(d) Savings Clause.--Nothing in this section is intended to
affect or prejudice either any legal claims or actions with
respect to regulations promulgated by the Administrator of
the Environmental Protection Agency (hereinafter in this
subsection referred to as the ``Administrator'') prior to the
date of enactment of this Act regarding emissions of toxic
air pollutants from motor vehicles or the adjustment of
standards applicable to a specific refinery or importer made
under such prior regulations and the Administrator may apply
such adjustments to the standards applicable to such refinery
or importer under clause (iii)(I) of section 211(k)(1)(B) of
the Clean Air Act, except that--
(1) the Administrator shall revise such adjustments to be
based only on calendar years 1999-2000; and
(2) for adjustments based on toxic air pollutant emissions
from reformulated gasoline significantly below the national
annual average emissions of toxic air pollutants from all
reformulated gasoline, the Administrator may revise such
adjustments to take account of the scope of Federal or State
prohibitions on the use of methyl tertiary butyl ether
imposed after the date of the enactment of this paragraph,
except that any such adjustment shall require such refiner or
importer, to the greatest extent practicable, to maintain the
reduction achieved during calendar years 1999-2000 in the
average annual aggregate emissions of toxic air pollutants
from reformulated gasoline produced or distributed by the
refinery or importer; Provided that, any such adjustment
shall not be made at a level below the average percentage of
reductions of emissions of toxic air pollutants for
reformulated gasoline supplied to PADD I during calendar
years 1999-2000.
SEC. 1507. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended by inserting after subsection (o) the following:
``(p) Analyses of Motor Vehicle Fuel Changes and Emissions
Model.--
``(1) Anti-backsliding analysis.--
``(A) Draft analysis.--Not later than 4 years after the
date of enactment of this subsection, the Administrator shall
publish for public comment a draft analysis of the changes in
emissions of air pollutants and air quality due to the use of
motor vehicle fuel and fuel additives resulting from
implementation of the amendments made by subtitle A of title
XV of the Energy Policy Act of 2003.
``(B) Final analysis.--After providing a reasonable
opportunity for comment but not later than 5 years after the
date of enactment of this paragraph, the Administrator shall
publish the analysis in final form.
``(2) Emissions model.--For the purposes of this
subsection, as soon as the necessary data are available, the
Administrator shall develop and finalize an emissions model
that reasonably reflects the effects of gasoline
characteristics or components on emissions from vehicles in
the motor vehicle fleet during calendar year 2005.''.
SEC. 1508. DATA COLLECTION.
Section 205 of the Department of Energy Organization Act
(42 U.S.C. 7135) is amended by adding at the end the
following:
``(m) Renewable Fuels Survey.--(1) In order to improve the
ability to evaluate the effectiveness of the Nation's
renewable fuels mandate, the Administrator shall conduct and
publish the results of a survey of renewable fuels demand in
the motor vehicle fuels market in the United States monthly,
and in a manner designed to protect the confidentiality of
individual responses. In conducting the survey, the
Administrator shall collect information both on a national
and regional basis, including each of the following:
``(A) The quantity of renewable fuels produced.
``(B) The quantity of renewable fuels blended.
``(C) The quantity of renewable fuels imported.
``(D) The quantity of renewable fuels demanded.
``(E) Market price data.
``(F) Such other analyses or evaluations as the
Administrator finds is necessary to achieve the purposes of
this section.
``(2) The Administrator shall also collect or estimate
information both on a national and regional basis, pursuant
to subparagraphs (A) through (F) of paragraph (1), for the 5
years prior to implementation of this subsection.
``(3) This subsection does not affect the authority of the
Administrator to collect data under section 52 of the Federal
Energy Administration Act of 1974 (15 U.S.C. 790a).''.
SEC. 1509. REDUCING THE PROLIFERATION OF STATE FUEL CONTROLS.
(a) EPA Approval of State Plans with Fuel Controls.--
Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C.
7545(c)(4)(C)) is amended by adding at the end the following:
``The Administrator shall not approve a control or
prohibition respecting the use of a fuel or fuel additive
under this subparagraph unless the Administrator, after
consultation with the Secretary of Energy, publishes in the
Federal Register a finding that, in the Administrator's
judgment, such control or prohibition will not cause fuel
supply or distribution interruptions or have a significant
adverse impact on fuel producibility in the affected area or
contiguous areas.''.
(b) Study.--The Administrator of the Environmental
Protection Agency (hereinafter in this subsection referred to
as the ``Administrator''), in cooperation with the Secretary
of Energy, shall undertake a study of the projected effects
on air quality, the proliferation of fuel blends, fuel
availability, and fuel costs of providing a preference for
each of the following:
(A) Reformulated gasoline referred to in subsection (k) of
section 211 of the Clean Air Act.
(B) A low RVP gasoline blend that has been certified by the
Administrator as having a Reid Vapor Pressure of 7.0 pounds
per square inch (psi).
(C) A low RVP gasoline blend that has been certified by the
Administrator as having a Reid Vapor Pressure of 7.8 pounds
per square inch (psi).
In carrying out such study, the Administrator shall obtain
comments from affected parties. The Administrator shall
submit the results of such study to the Congress not later
than 18 months after the date of enactment of this Act,
together with any recommended legislative changes.
SEC. 1510. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.
(a) Study.--
(1) In general.--The Administrator of the Environmental
Protection Agency (hereinafter in this section referred to as
the ``Administrator'') and the Secretary of Energy shall
jointly conduct a study of Federal, State, and local
requirements concerning motor vehicle fuels, including--
(A) requirements relating to reformulated gasoline,
volatility (measured in Reid vapor pressure), oxygenated
fuel, and diesel fuel; and
(B) other requirements that vary from State to State,
region to region, or locality to locality.
(2) Required elements.--The study shall assess--
(A) the effect of the variety of requirements described in
paragraph (1) on the supply, quality, and price of motor
vehicle fuels available to consumers in various States and
localities;
[[Page 29234]]
(B) the effect of the requirements described in paragraph
(1) on achievement of--
(i) national, regional, and local air quality standards and
goals; and
(ii) related environmental and public health protection
standards and goals;
(C) the effect of Federal, State, and local motor vehicle
fuel regulations, including multiple motor vehicle fuel
requirements, on--
(i) domestic refineries;
(ii) the fuel distribution system; and
(iii) industry investment in new capacity;
(D) the effect of the requirements described in paragraph
(1) on emissions from vehicles, refineries, and fuel handling
facilities;
(E) the feasibility of developing national or regional
motor vehicle fuel slates for the 48 contiguous States that,
while improving air quality at the national, regional and
local levels consistent with the attainment of national
ambient air quality standards, could--
(i) enhance flexibility in the fuel distribution
infrastructure and improve fuel fungibility;
(ii) reduce price volatility and costs to consumers and
producers;
(iii) provide increased liquidity to the gasoline market;
and
(iv) enhance fuel quality, consistency, and supply;
(F) the feasibility of providing incentives to promote
cleaner burning motor vehicle fuel; and
(G) the extent to which improvements in air quality and any
increases or decreases in the price of motor fuel can be
projected to result from the Environmental Protection
Agency's Tier II requirements for conventional gasoline and
vehicle emission systems, the reformulated gasoline program,
the renewable content requirements established by this
subtitle, State programs regarding gasoline volatility, and
any other requirements imposed by States or localities
affecting the composition of motor fuel.
(b) Report.--
(1) In general.--Not later than December 31, 2007, the
Administrator and the Secretary of Energy shall submit to
Congress a report on the results of the study conducted under
subsection (a).
(2) Recommendations.--
(A) In general.--The report under this subsection shall
contain recommendations for legislative and administrative
actions that may be taken--
(i) to improve air quality;
(ii) to reduce costs to consumers and producers; and
(iii) to increase supply liquidity.
(B) Required considerations.--The recommendations under
subparagraph (A) shall take into account the need to provide
advance notice of required modifications to refinery and fuel
distribution systems in order to ensure an adequate supply of
motor vehicle fuel in all States.
(3) Consultation.--In developing the report under this
subsection, the Administrator and the Secretary of Energy
shall consult with--
(A) the Governors of the States;
(B) automobile manufacturers;
(C) motor vehicle fuel producers and distributors; and
(D) the public.
SEC. 1511. COMMERCIAL BYPRODUCTS FROM MUNICIPAL SOLID WASTE
AND CELLULOSIC BIOMASS LOAN GUARANTEE PROGRAM.
(a) Definition of Municipal Solid Waste.--In this section,
the term ``municipal solid waste'' has the meaning given the
term ``solid waste'' in section 1004 of the Solid Waste
Disposal Act (42 U.S.C. 6903).
(b) Establishment of Program.--The Secretary of Energy
(hereinafter in this section referred to as the
``Secretary'') shall establish a program to provide
guarantees of loans by private institutions for the
construction of facilities for the processing and conversion
of municipal solid waste and cellulosic biomass into fuel
ethanol and other commercial byproducts.
(c) Requirements.--The Secretary may provide a loan
guarantee under subsection (b) to an applicant if--
(1) without a loan guarantee, credit is not available to
the applicant under reasonable terms or conditions sufficient
to finance the construction of a facility described in
subsection (b);
(2) the prospective earning power of the applicant and the
character and value of the security pledged provide a
reasonable assurance of repayment of the loan to be
guaranteed in accordance with the terms of the loan; and
(3) the loan bears interest at a rate determined by the
Secretary to be reasonable, taking into account the current
average yield on outstanding obligations of the United States
with remaining periods of maturity comparable to the maturity
of the loan.
(d) Criteria.--In selecting recipients of loan guarantees
from among applicants, the Secretary shall give preference to
proposals that--
(1) meet all applicable Federal and State permitting
requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the greatest
need for the facility because of--
(A) the limited availability of land for waste disposal;
(B) the availability of sufficient quantities of cellulosic
biomass; or
(C) a high level of demand for fuel ethanol or other
commercial byproducts of the facility.
(e) Maturity.--A loan guaranteed under subsection (b) shall
have a maturity of not more than 20 years.
(f) Terms and Conditions.--The loan agreement for a loan
guaranteed under subsection (b) shall provide that no
provision of the loan agreement may be amended or waived
without the consent of the Secretary.
(g) Assurance of Repayment.--The Secretary shall require
that an applicant for a loan guarantee under subsection (b)
provide an assurance of repayment in the form of a
performance bond, insurance, collateral, or other means
acceptable to the Secretary in an amount equal to not less
than 20 percent of the amount of the loan.
(h) Guarantee Fee.--The recipient of a loan guarantee under
subsection (b) shall pay the Secretary an amount determined
by the Secretary to be sufficient to cover the administrative
costs of the Secretary relating to the loan guarantee.
(i) Full Faith and Credit.--The full faith and credit of
the United States is pledged to the payment of all guarantees
made under this section. Any such guarantee made by the
Secretary shall be conclusive evidence of the eligibility of
the loan for the guarantee with respect to principal and
interest. The validity of the guarantee shall be
incontestable in the hands of a holder of the guaranteed
loan.
(j) Reports.--Until each guaranteed loan under this section
has been repaid in full, the Secretary shall annually submit
to Congress a report on the activities of the Secretary under
this section.
(k) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
(l) Termination of Authority.--The authority of the
Secretary to issue a loan guarantee under subsection (b)
terminates on the date that is 10 years after the date of
enactment of this Act.
SEC. 1512. RESOURCE CENTER.
(a) Definition.--In this section, the term ``RFG State''
means a State in which is located one or more covered areas
(as defined in section 211(k)(10)(D) of the Clean Air Act (42
U.S.C. 7545(k)(10)(D)).
(b) Authorization of Appropriations for Resource Center.--
There are authorized to be appropriated, for a resource
center to further develop bioconversion technology using low-
cost biomass for the production of ethanol at the Center for
Biomass-Based Energy at the University of Mississippi and the
University of Oklahoma, $4,000,000 for each of fiscal years
2004 through 2006.
(c) Renewable Fuel Production Research and Development
Grants.--
(1) In general.--The Administrator of the Environmental
Protection Agency shall provide grants for the research into,
and development and implementation of, renewable fuel
production technologies in RFG States with low rates of
ethanol production, including low rates of production of
cellulosic biomass ethanol.
(2) Eligibility.--
(A) In general.--The entities eligible to receive a grant
under this subsection are academic institutions in RFG
States, and consortia made up of combinations of academic
institutions, industry, State government agencies, or local
government agencies in RFG States, that have proven
experience and capabilities with relevant technologies.
(B) Application.--To be eligible to receive a grant under
this subsection, an eligible entity shall submit to the
Administrator an application in such manner and form, and
accompanied by such information, as the Administrator may
specify.
(3) Authorization of appropriations.--There are authorized
to be appropriated to carry out this subsection $25,000,000
for each of fiscal years 2004 through 2008.
SEC. 1513. CELLULOSIC BIOMASS AND WASTE-DERIVED ETHANOL
CONVERSION ASSISTANCE.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended by adding at the end the following:
``(r) Cellulosic Biomass and Waste-Derived Ethanol
Conversion Assistance.--
``(1) In general.--The Secretary of Energy may provide
grants to merchant producers of cellulosic biomass ethanol
and waste-derived ethanol in the United States to assist the
producers in building eligible production facilities
described in paragraph (2) for the production of ethanol.
``(2) Eligible production facilities.--A production
facility shall be eligible to receive a grant under this
subsection if the production facility--
``(A) is located in the United States; and
``(B) uses cellulosic biomass or waste-derived feedstocks
derived from agricultural residues, municipal solid waste, or
agricultural byproducts as that term is used in section 919
of the Energy Policy Act of 2003.
``(3) Authorization of appropriations.--There are
authorized to be appropriated the following amounts to carry
out this subsection:
``(A) $100,000,000 for fiscal year 2004.
``(B) $250,000,000 for fiscal year 2005.
``(C) $400,000,000 for fiscal year 2006.''.
SEC. 1514. BLENDING OF COMPLIANT REFORMULATED GASOLINES.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended by adding at the end the following:
``(s) Blending of Compliant Reformulated Gasolines.--
``(1) In general.--Notwithstanding subsections (h) and (k)
and subject to the limitations in paragraph (2) of this
subsection, it shall not be a violation of this subtitle for
a gasoline retailer, during any month of the year, to blend
at a retail location batches of ethanol-blended
[[Page 29235]]
and non-ethanol-blended reformulated gasoline, provided
that--
``(A) each batch of gasoline to be blended has been
individually certified as in compliance with subsections (h)
and (k) prior to being blended;
``(B) the retailer notifies the Administrator prior to such
blending, and identifies the exact location of the retail
station and the specific tank in which such blending will
take place;
``(C) the retailer retains and, as requested by the
Administrator or the Administrator's designee, makes
available for inspection such certifications accounting for
all gasoline at the retail outlet; and
``(D) the retailer does not, between June 1 and September
15 of each year, blend a batch of VOC-controlled, or
`summer', gasoline with a batch of non-VOC-controlled, or
`winter', gasoline (as these terms are defined under
subsections (h) and (k)).
``(2) Limitations.--
``(A) Frequency limitation.--A retailer shall only be
permitted to blend batches of compliant reformulated gasoline
under this subsection a maximum of two blending periods
between May 1 and September 15 of each calendar year.
``(B) Duration of blending period.--Each blending period
authorized under subparagraph (A) shall extend for a period
of no more than 10 consecutive calendar days.
``(3) Surveys.--A sample of gasoline taken from a retail
location that has blended gasoline within the past 30 days
and is in compliance with subparagraphs (A), (B), (C), and
(D) of paragraph (1) shall not be used in a VOC survey
mandated by 40 C.F.R. Part 80.
``(4) State implementation plans.--A State shall be held
harmless and shall not be required to revise its State
implementation plan under section 110 to account for the
emissions from blended gasoline authorized under paragraph
(1).
``(5) Preservation of state law.--Nothing in this
subsection shall--
``(A) preempt existing State laws or regulations regulating
the blending of compliant gasolines; or
``(B) prohibit a State from adopting such restrictions in
the future.
``(6) Regulations.--The Administrator shall promulgate,
after notice and comment, regulations implementing this
subsection within one year after the date of enactment of
this subsection.
``(7) Effective date.--This subsection shall become
effective 15 months after the date of its enactment and shall
apply to blended batches of reformulated gasoline on or after
that date, regardless of whether the implementing regulations
required by paragraph (6) have been promulgated by the
Administrator by that date.
``(8) Liability.--No person other than the person
responsible for blending under this subsection shall be
subject to an enforcement action or penalties under
subsection (d) solely arising from the blending of compliant
reformulated gasolines by the retailers.
``(9) Formulation of gasoline.--This subsection does not
grant authority to the Administrator or any State (or any
subdivision thereof) to require reformulation of gasoline at
the refinery to adjust for potential or actual emissions
increases due to the blending authorized by this
subsection.''.
Subtitle B--Underground Storage Tank Compliance
SEC. 1521. SHORT TITLE.
This subtitle may be cited as the ``Underground Storage
Tank Compliance Act of 2003''.
SEC. 1522. LEAKING UNDERGROUND STORAGE TANKS.
(a) In General.--Section 9004 of the Solid Waste Disposal
Act (42 U.S.C. 6991c) is amended by adding at the end the
following:
``(f) Trust Fund Distribution.--
``(1) In general.--
``(A) Amount and permitted uses of distribution.--The
Administrator shall distribute to States not less than 80
percent of the funds from the Trust Fund that are made
available to the Administrator under section 9014(2)(A) for
each fiscal year for use in paying the reasonable costs,
incurred under a cooperative agreement with any State for--
``(i) actions taken by the State under section
9003(h)(7)(A);
``(ii) necessary administrative expenses, as determined by
the Administrator, that are directly related to State fund or
State assurance programs under subsection (c)(1);
``(iii) any State fund or State assurance program carried
out under subsection (c)(1) for a release from an underground
storage tank regulated under this subtitle to the extent
that, as determined by the State in accordance with
guidelines developed jointly by the Administrator and the
States, the financial resources of the owner and operator of
the underground storage tank (including resources provided by
a program in accordance with subsection (c)(1)) are not
adequate to pay the cost of a corrective action without
significantly impairing the ability of the owner or operator
to continue in business; or
``(iv) enforcement, by a State or a local government, of
State or local regulations pertaining to underground storage
tanks regulated under this subtitle.
``(B) Use of funds for enforcement.--In addition to the
uses of funds authorized under subparagraph (A), the
Administrator may use funds from the Trust Fund that are not
distributed to States under subparagraph (A) for enforcement
of any regulation promulgated by the Administrator under this
subtitle.
``(C) Prohibited uses.--Funds provided to a State by the
Administrator under subparagraph (A) shall not be used by the
State to provide financial assistance to an owner or operator
to meet any requirement relating to underground storage tanks
under subparts B, C, D, H, and G of part 280 of title 40,
Code of Federal Regulations (as in effect on the date of
enactment of this subsection).
``(2) Allocation.--
``(A) Process.--Subject to subparagraphs (B) and (C), in
the case of a State with which the Administrator has entered
into a cooperative agreement under section 9003(h)(7)(A), the
Administrator shall distribute funds from the Trust Fund to
the State using an allocation process developed by the
Administrator.
``(B) Diversion of State funds.--The Administrator shall
not distribute funds under subparagraph (A)(iii) of
subsection (f)(1) to any State that has diverted funds from a
State fund or State assurance program for purposes other than
those related to the regulation of underground storage tanks
covered by this subtitle, with the exception of those
transfers that had been completed earlier than the date of
enactment of this subsection.
``(C) Revisions to process.--The Administrator may revise
the allocation process referred to in subparagraph (A)
after--
``(i) consulting with State agencies responsible for
overseeing corrective action for releases from underground
storage tanks; and
``(ii) taking into consideration, at a minimum, each of the
following:
``(I) The number of confirmed releases from federally
regulated leaking underground storage tanks in the States.
``(II) The number of federally regulated underground
storage tanks in the States.
``(III) The performance of the States in implementing and
enforcing the program.
``(IV) The financial needs of the States.
``(V) The ability of the States to use the funds referred
to in subparagraph (A) in any year.
``(3) Distributions to state agencies.--Distributions from
the Trust Fund under this subsection shall be made directly
to a State agency that--
``(A) enters into a cooperative agreement referred to in
paragraph (2)(A); or
``(B) is enforcing a State program approved under this
section.
``(4) Cost recovery prohibition.--Funds from the Trust Fund
provided by States to owners or operators under paragraph
(1)(A)(iii) shall not be subject to cost recovery by the
Administrator under section 9003(h)(6).''.
(b) Withdrawal of Approval of State Funds.--Section 9004(c)
of the Solid Waste Disposal Act (42 U.S.C. 6991c(c)) is
amended by inserting the following new paragraph at the end
thereof:
``(6) Withdrawal of Approval.--After an opportunity for
good faith, collaborative efforts to correct financial
deficiencies with a State fund, the Administrator may
withdraw approval of any State fund or State assurance
program to be used as a financial responsibility mechanism
without withdrawing approval of a State underground storage
tank program under section 9004(a).''.
SEC. 1523. INSPECTION OF UNDERGROUND STORAGE TANKS.
(a) Inspection Requirements.--Section 9005 of the Solid
Waste Disposal Act (42 U.S.C. 6991d) is amended by inserting
the following new subsection at the end thereof:
``(c) Inspection Requirements.--
``(1) Uninspected tanks.--In the case of underground
storage tanks regulated under this subtitle that have not
undergone an inspection since December 22, 1998, not later
than 2 years after the date of enactment of this subsection,
the Administrator or a State that receives funding under this
subtitle, as appropriate, shall conduct on-site inspections
of all such tanks to determine compliance with this subtitle
and the regulations under this subtitle (40 C.F.R. 280) or a
requirement or standard of a State program developed under
section 9004.
``(2) Periodic inspections.--After completion of all
inspections required under paragraph (1), the Administrator
or a State that receives funding under this subtitle, as
appropriate, shall conduct on-site inspections of each
underground storage tank regulated under this subtitle at
least once every 3 years to determine compliance with this
subtitle and the regulations under this subtitle (40 C.F.R.
280) or a requirement or standard of a State program
developed under section 9004. The Administrator may extend
for up to one additional year the first 3-year inspection
interval under this paragraph if the State demonstrates that
it has insufficient resources to complete all such
inspections within the first 3-year period.
``(3) Inspection authority.--Nothing in this section shall
be construed to diminish the Administrator's or a State's
authorities under section 9005(a).''.
(b) Study of Alternative Inspection Programs.--The
Administrator of the Environmental Protection Agency, in
coordination with a State, shall gather information on
compliance assurance programs that could serve as an
alternative to the inspection programs under section 9005(c)
of the Solid Waste Disposal Act (42 U.S.C. 6991d(c)) and
shall, within 4 years after the date of enactment of this
Act, submit a report to the Congress containing the results
of such study.
SEC. 1524. OPERATOR TRAINING.
(a) In General.--Section 9010 of the Solid Waste Disposal
Act (42 U.S.C. 6991i) is amended to read as follows:
``SEC. 9010. OPERATOR TRAINING.
``(a) Guidelines.--
[[Page 29236]]
``(1) In general.--Not later than 2 years after the date of
enactment of the Underground Storage Tank Compliance Act of
2003, in consultation and cooperation with States and after
public notice and opportunity for comment, the Administrator
shall publish guidelines that specify training requirements
for persons having primary daily on-site management
responsibility for the operation and maintenance of
underground storage tanks.
``(2) Considerations.--The guidelines described in
paragraph (1) shall take into account--
``(A) State training programs in existence as of the date
of publication of the guidelines;
``(B) training programs that are being employed by tank
owners and tank operators as of the date of enactment of the
Underground Storage Tank Compliance Act of 2003;
``(C) the high turnover rate of tank operators and other
personnel;
``(D) the frequency of improvement in underground storage
tank equipment technology;
``(E) the nature of the businesses in which the tank
operators are engaged; and
``(F) such other factors as the Administrator determines to
be necessary to carry out this section.
``(b) State Programs.--
``(1) In general.--Not later than 2 years after the date on
which the Administrator publishes the guidelines under
subsection (a)(1), each State that receives funding under
this subtitle shall develop State-specific training
requirements that are consistent with the guidelines
developed under subsection (a)(1).
``(2) Requirements.--State requirements described in
paragraph (1) shall--
``(A) be consistent with subsection (a);
``(B) be developed in cooperation with tank owners and tank
operators;
``(C) take into consideration training programs implemented
by tank owners and tank operators as of the date of enactment
of this section; and
``(D) be appropriately communicated to tank owners and
operators.
``(3) Financial incentive.--The Administrator may award to
a State that develops and implements requirements described
in paragraph (1), in addition to any funds that the State is
entitled to receive under this subtitle, not more than
$200,000, to be used to carry out the requirements.
``(c) Operators.--All persons having primary daily on-site
management responsibility for the operation and maintenance
of any underground storage tank shall--
``(1) meet the training requirements developed under
subsection (b); and
``(2) repeat the applicable requirements developed under
subsection (b), if the tank for which they have primary daily
on-site management responsibilities is determined to be out
of compliance with--
``(A) a requirement or standard promulgated by the
Administrator under section 9003; or
``(B) a requirement or standard of a State program approved
under section 9004.''.
(b) State Program Requirement.--Section 9004(a) of the
Solid Waste Disposal Act (42 U.S.C. 6991c(a)) is amended by
striking ``and'' at the end of paragraph (7), by striking the
period at the end of paragraph (8) and inserting ``; and'',
and by adding the following new paragraph at the end thereof:
``(9) State-specific training requirements as required by
section 9010.''.
(c) Enforcement.--Section 9006(d)(2) of such Act (42 U.S.C.
6991e) is amended as follows:
(1) By striking ``or'' at the end of subparagraph (B).
(2) By adding the following new subparagraph after
subparagraph (C):
``(D) the training requirements established by States
pursuant to section 9010 (relating to operator training);
or''.
(d) Table of Contents.--The item relating to section 9010
in table of contents for the Solid Waste Disposal Act is
amended to read as follows:
``Sec. 9010. Operator training.''.
SEC. 1525. REMEDIATION FROM OXYGENATED FUEL ADDITIVES.
Section 9003(h) of the Solid Waste Disposal Act (42 U.S.C.
6991b(h)) is amended as follows:
(1) In paragraph (7)(A)--
(A) by striking ``paragraphs (1) and (2) of this
subsection'' and inserting ``paragraphs (1), (2), and (12)''
; and
(B) by striking ``and including the authorities of
paragraphs (4), (6), and (8) of this subsection'' and
inserting ``and the authority under sections 9011 and 9012
and paragraphs (4), (6), and (8),''.
(2) By adding at the end the following:
``(12) Remediation of oxygenated fuel contamination.--
``(A) In general.--The Administrator and the States may use
funds made available under section 9014(2)(B) to carry out
corrective actions with respect to a release of a fuel
containing an oxygenated fuel additive that presents a threat
to human health or welfare or the environment.
``(B) Applicable authority.--The Administrator or a State
shall carry out subparagraph (A) in accordance with paragraph
(2), and in the case of a State, in accordance with a
cooperative agreement entered into by the Administrator and
the State under paragraph (7).''.
SEC. 1526. RELEASE PREVENTION, COMPLIANCE, AND ENFORCEMENT.
(a) Release Prevention and Compliance.--Subtitle I of the
Solid Waste Disposal Act (42 U.S.C. 6991 et seq.) is amended
by adding at the end the following:
``SEC. 9011. USE OF FUNDS FOR RELEASE PREVENTION AND
COMPLIANCE.
``Funds made available under section 9014(2)(D) from the
Trust Fund may be used to conduct inspections, issue orders,
or bring actions under this subtitle--
``(1) by a State, in accordance with a grant or cooperative
agreement with the Administrator, of State regulations
pertaining to underground storage tanks regulated under this
subtitle; and
``(2) by the Administrator, for tanks regulated under this
subtitle (including under a State program approved under
section 9004).''.
(b) Government-Owned Tanks.--Section 9003 of the Solid
Waste Disposal Act (42 U.S.C. 6991b) is amended by adding at
the end the following:
``(i) Government-Owned Tanks.--
``(1) State compliance report.--(A) Not later than 2 years
after the date of enactment of this subsection, each State
that receives funding under this subtitle shall submit to the
Administrator a State compliance report that--
``(i) lists the location and owner of each underground
storage tank described in subparagraph (B) in the State that,
as of the date of submission of the report, is not in
compliance with section 9003; and
``(ii) specifies the date of the last inspection and
describes the actions that have been and will be taken to
ensure compliance of the underground storage tank listed
under clause (i) with this subtitle.
``(B) An underground storage tank described in this
subparagraph is an underground storage tank that is--
``(i) regulated under this subtitle; and
``(ii) owned or operated by the Federal, State, or local
government.
``(C) The Administrator shall make each report, received
under subparagraph (A), available to the public through an
appropriate media.
``(2) Financial incentive.--The Administrator may award to
a State that develops a report described in paragraph (1), in
addition to any other funds that the State is entitled to
receive under this subtitle, not more than $50,000, to be
used to carry out the report.
``(3) Not a safe harbor.--This subsection does not relieve
any person from any obligation or requirement under this
subtitle.''.
(c) Public Record.--Section 9002 of the Solid Waste
Disposal Act (42 U.S.C. 6991a) is amended by adding at the
end the following:
``(d) Public Record.--
``(1) In general.--The Administrator shall require each
State that receives Federal funds to carry out this subtitle
to maintain, update at least annually, and make available to
the public, in such manner and form as the Administrator
shall prescribe (after consultation with States), a record of
underground storage tanks regulated under this subtitle.
``(2) Considerations.--To the maximum extent practicable,
the public record of a State, respectively, shall include,
for each year--
``(A) the number, sources, and causes of underground
storage tank releases in the State;
``(B) the record of compliance by underground storage tanks
in the State with--
``(i) this subtitle; or
``(ii) an applicable State program approved under section
9004; and
``(C) data on the number of underground storage tank
equipment failures in the State.''.
(d) Incentive for Performance.--Section 9006 of the Solid
Waste Disposal Act (42 U.S.C. 6991e) is amended by adding at
the end the following:
``(e) Incentive for Performance.--Both of the following may
be taken into account in determining the terms of a civil
penalty under subsection (d):
``(1) The compliance history of an owner or operator in
accordance with this subtitle or a program approved under
section 9004.
``(2) Any other factor the Administrator considers
appropriate.''.
(e) Table of Contents.--The table of contents for such
subtitle I is amended by adding the following new item at the
end thereof:
``Sec. 9011. Use of funds for release prevention and compliance.''.
SEC. 1527. DELIVERY PROHIBITION.
(a) In General.--Subtitle I of the Solid Waste Disposal Act
(42 U.S.C. 6991 et seq.) is amended by adding at the end the
following:
``SEC. 9012. DELIVERY PROHIBITION.
``(a) Requirements.--
``(1) Prohibition of delivery or deposit.--Beginning 2
years after the date of enactment of this section, it shall
be unlawful to deliver to, deposit into, or accept a
regulated substance into an underground storage tank at a
facility which has been identified by the Administrator or a
State implementing agency to be ineligible for fuel delivery
or deposit.
``(2) Guidance.--Within 1 year after the date of enactment
of this section, the Administrator and States that receive
funding under this subtitle shall, in consultation with the
underground storage tank owner and product delivery
industries, for territory for which they are the primary
implementing agencies, publish guidelines detailing the
specific processes and procedures they will use to implement
the provisions of this section. The processes and procedures
include, at a minimum--
``(A) the criteria for determining which underground
storage tank facilities are ineligible for delivery or
deposit;
``(B) the mechanisms for identifying which facilities are
ineligible for delivery or deposit to the underground storage
tank owning and fuel delivery industries;
[[Page 29237]]
``(C) the process for reclassifying ineligible facilities
as eligible for delivery or deposit; and
``(D) a delineation of, or a process for determining, the
specified geographic areas subject to paragraph (4).
``(3) Delivery prohibition notice.--
``(A) Roster.--The Administrator and each State
implementing agency that receives funding under this subtitle
shall establish within 24 months after the date of enactment
of this section a Delivery Prohibition Roster listing
underground storage tanks under the Administrator's or the
State's jurisdiction that are determined to be ineligible for
delivery or deposit pursuant to paragraph (2).
``(B) Notification.--The Administrator and each State, as
appropriate, shall make readily known, to underground storage
tank owners and operators and to product delivery industries,
the underground storage tanks listed on a Delivery
Prohibition Roster by:
``(i) posting such Rosters, including the physical location
and street address of each listed underground storage tank,
on official web sites and, if the Administrator or the State
so chooses, other electronic means;
``(ii) updating these Rosters periodically; and
``(iii) installing a tamper-proof tag, seal, or other
device blocking the fill pipes of such underground storage
tanks to prevent the delivery of product into such
underground storage tanks.
``(C) Roster updates.--The Administrator and the State
shall update the Delivery Prohibition Rosters as appropriate,
but not less than once a month on the first day of the month.
``(D) Tampering with device.--
``(i) Prohibition.--It shall be unlawful for any person,
other than an authorized representative of the Administrator
or a State, as appropriate, to remove, tamper with, destroy,
or damage a device installed by the Administrator or a State,
as appropriate, under subparagraph (B)(iii) of this
subsection.
``(ii) Civil penalties.--Any person violating clause (i) of
this subparagraph shall be subject to a civil penalty not to
exceed $10,000 for each violation.
``(4) Limitation.--
``(A) Rural and remote areas.--Subject to subparagraph (B),
the Administrator or a State shall not include an underground
storage tank on a Delivery Prohibition Roster under paragraph
(3) if an urgent threat to public health, as determined by
the Administrator, does not exist and if such a delivery
prohibition would jeopardize the availability of, or access
to, fuel in any rural and remote areas.
``(B) Applicability of limitation.--The limitation under
subparagraph (A) shall apply only during the 180-day period
following the date of a determination by the Administrator or
the appropriate State that exercising the authority of
paragraph (3) is limited by subparagraph (A).
``(b) Effect on state authority.--Nothing in this section
shall affect the authority of a State to prohibit the
delivery of a regulated substance to an underground storage
tank.
``(c) Defense to violation.--A person shall not be in
violation of subsection (a)(1) if the underground storage
tank into which a regulated substance is delivered is not
listed on the Administrator's or the appropriate State's
Prohibited Delivery Roster 7 calendar days prior to the
delivery being made.''.
(b) Enforcement.--Section 9006(d)(2) of such Act (42 U.S.C.
6991e(d)(2)) is amended as follows:
(1) By adding the following new subparagraph after
subparagraph (D):
``(E) the delivery prohibition requirement established by
section 9012,''.
(2) By adding the following new sentence at the end
thereof: ``Any person making or accepting a delivery or
deposit of a regulated substance to an underground storage
tank at an ineligible facility in violation of section 9012
shall also be subject to the same civil penalty for each day
of such violation.''.
(c) Table of Contents.--The table of contents for such
subtitle I is amended by adding the following new item at the
end thereof:
``Sec. 9012. Delivery prohibition.''.
SEC. 1528. FEDERAL FACILITIES.
Section 9007 of the Solid Waste Disposal Act (42 U.S.C.
6991f) is amended to read as follows:
``SEC. 9007. FEDERAL FACILITIES.
``(a) In General.--Each department, agency, and
instrumentality of the executive, legislative, and judicial
branches of the Federal Government (1) having jurisdiction
over any underground storage tank or underground storage tank
system, or (2) engaged in any activity resulting, or which
may result, in the installation, operation, management, or
closure of any underground storage tank, release response
activities related thereto, or in the delivery, acceptance,
or deposit of any regulated substance to an underground
storage tank or underground storage tank system shall be
subject to, and comply with, all Federal, State, interstate,
and local requirements, both substantive and procedural
(including any requirement for permits or reporting or any
provisions for injunctive relief and such sanctions as may be
imposed by a court to enforce such relief), respecting
underground storage tanks in the same manner, and to the same
extent, as any person is subject to such requirements,
including the payment of reasonable service charges. The
Federal, State, interstate, and local substantive and
procedural requirements referred to in this subsection
include, but are not limited to, all administrative orders
and all civil and administrative penalties and fines,
regardless of whether such penalties or fines are punitive or
coercive in nature or are imposed for isolated, intermittent,
or continuing violations. The United States hereby expressly
waives any immunity otherwise applicable to the United States
with respect to any such substantive or procedural
requirement (including, but not limited to, any injunctive
relief, administrative order or civil or administrative
penalty or fine referred to in the preceding sentence, or
reasonable service charge). The reasonable service charges
referred to in this subsection include, but are not limited
to, fees or charges assessed in connection with the
processing and issuance of permits, renewal of permits,
amendments to permits, review of plans, studies, and other
documents, and inspection and monitoring of facilities, as
well as any other nondiscriminatory charges that are assessed
in connection with a Federal, State, interstate, or local
underground storage tank regulatory program. Neither the
United States, nor any agent, employee, or officer thereof,
shall be immune or exempt from any process or sanction of any
State or Federal Court with respect to the enforcement of any
such injunctive relief. No agent, employee, or officer of the
United States shall be personally liable for any civil
penalty under any Federal, State, interstate, or local law
concerning underground storage tanks with respect to any act
or omission within the scope of the official duties of the
agent, employee, or officer. An agent, employee, or officer
of the United States shall be subject to any criminal
sanction (including, but not limited to, any fine or
imprisonment) under any Federal or State law concerning
underground storage tanks, but no department, agency, or
instrumentality of the executive, legislative, or judicial
branch of the Federal Government shall be subject to any such
sanction. The President may exempt any underground storage
tank of any department, agency, or instrumentality in the
executive branch from compliance with such a requirement if
he determines it to be in the paramount interest of the
United States to do so. No such exemption shall be granted
due to lack of appropriation unless the President shall have
specifically requested such appropriation as a part of the
budgetary process and the Congress shall have failed to make
available such requested appropriation. Any exemption shall
be for a period not in excess of one year, but additional
exemptions may be granted for periods not to exceed one year
upon the President's making a new determination. The
President shall report each January to the Congress all
exemptions from the requirements of this section granted
during the preceding calendar year, together with his reason
for granting each such exemption.
``(b) Review of and Report on Federal Underground Storage
Tanks.--
``(1) Review.--Not later than 12 months after the date of
enactment of the Underground Storage Tank Compliance Act of
2003, each Federal agency that owns or operates 1 or more
underground storage tanks, or that manages land on which 1 or
more underground storage tanks are located, shall submit to
the Administrator, the Committee on Energy and Commerce of
the United States House of Representatives, and the Committee
on the Environment and Public Works of the United States
Senate a compliance strategy report that--
``(A) lists the location and owner of each underground
storage tank described in this paragraph;
``(B) lists all tanks that are not in compliance with this
subtitle that are owned or operated by the Federal agency;
``(C) specifies the date of the last inspection by a State
or Federal inspector of each underground storage tank owned
or operated by the agency;
``(D) lists each violation of this subtitle respecting any
underground storage tank owned or operated by the agency;
``(E) describes the operator training that has been
provided to the operator and other persons having primary
daily on-site management responsibility for the operation and
maintenance of underground storage tanks owned or operated by
the agency; and
``(F) describes the actions that have been and will be
taken to ensure compliance for each underground storage tank
identified under subparagraph (B).
``(2) Not a safe harbor.--This subsection does not relieve
any person from any obligation or requirement under this
subtitle.''.
SEC. 1529. TANKS ON TRIBAL LANDS.
(a) In General.--Subtitle I of the Solid Waste Disposal Act
(42 U.S.C. 6991 et seq.) is amended by adding the following
at the end thereof:
``SEC. 9013. TANKS ON TRIBAL LANDS.
``(a) Strategy.--The Administrator, in coordination with
Indian tribes, shall, not later than 1 year after the date of
enactment of this section, develop and implement a strategy--
``(1) giving priority to releases that present the greatest
threat to human health or the environment, to take necessary
corrective action in response to releases from leaking
underground storage tanks located wholly within the
boundaries of--
``(A) an Indian reservation; or
``(B) any other area under the jurisdiction of an Indian
tribe; and
``(2) to implement and enforce requirements concerning
underground storage tanks located wholly within the
boundaries of--
``(A) an Indian reservation; or
``(B) any other area under the jurisdiction of an Indian
tribe.
``(b) Report.--Not later than 2 years after the date of
enactment of this section, the Administrator shall submit to
Congress a report that summarizes the status of
implementation and
[[Page 29238]]
enforcement of this subtitle in areas located wholly within--
``(1) the boundaries of Indian reservations; and
``(2) any other areas under the jurisdiction of an Indian
tribe.
The Administrator shall make the report under this subsection
available to the public.
``(c) Not a Safe Harbor.--This section does not relieve any
person from any obligation or requirement under this
subtitle.
``(d) State Authority.--Nothing in this section applies to
any underground storage tank that is located in an area under
the jurisdiction of a State, or that is subject to regulation
by a State, as of the date of enactment of this section.''.
(b) Table of Contents.--The table of contents for such
subtitle I is amended by adding the following new item at the
end thereof:
``Sec. 9013. Tanks on Tribal lands.''.
SEC. 1530. FUTURE RELEASE CONTAINMENT TECHNOLOGY.
Not later than 2 years after the date of enactment of this
Act, the Administrator of the Environmental Protection
Agency, after consultation with States, shall make available
to the public and to the Committee on Energy and Commerce of
the House of Representatives and the Committee on Environment
and Public Works of the Senate information on the
effectiveness of alternative possible methods and means for
containing releases from underground storage tanks systems.
SEC. 1531. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Subtitle I of the Solid Waste Disposal Act
(42 U.S.C. 6991 et seq.) is amended by adding at the end the
following:
``SEC. 9014. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to the
Administrator the following amounts:
``(1) To carry out subtitle I (except sections 9003(h),
9005(c), 9011 and 9012) $50,000,000 for each of fiscal years
2004 through 2008.
``(2) From the Trust Fund, notwithstanding section
9508(c)(1) of the Internal Revenue Code of 1986:
``(A) to carry out section 9003(h) (except section
9003(h)(12)) $200,000,000 for each of fiscal years 2004
through 2008;
``(B) to carry out section 9003(h)(12), $200,000,000 for
each of fiscal years 2004 through 2008;
``(C) to carry out sections 9004(f) and 9005(c)
$100,000,000 for each of fiscal years 2004 through 2008; and
``(D) to carry out sections 9011 and 9012 $55,000,000 for
each of fiscal years 2004 through 2008.''.
(b) Table of Contents.--The table of contents for such
subtitle I is amended by adding the following new item at the
end thereof:
``Sec. 9014. Authorization of appropriations.''.
SEC. 1532. CONFORMING AMENDMENTS.
(a) In General.--Section 9001 of the Solid Waste Disposal
Act (42 U.S.C. 6991) is amended as follows:
(1) By striking ``For the purposes of this subtitle--'' and
inserting ``In this subtitle:''.
(2) By redesignating paragraphs (1), (2), (3), (4), (5),
(6), (7), and (8) as paragraphs (10), (7), (4), (3), (8),
(5), (2), and (6), respectively.
(3) By inserting before paragraph (2) (as redesignated by
paragraph (2) of this subsection) the following:
``(1) Indian tribe.--
``(A) In general.-- The term `Indian tribe' means any
Indian tribe, band, nation, or other organized group or
community that is recognized as being eligible for special
programs and services provided by the United States to
Indians because of their status as Indians.
``(B) Inclusions.--The term `Indian tribe' includes an
Alaska Native village, as defined in or established under the
Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.);
and''.
(4) By inserting after paragraph (8) (as redesignated by
paragraph (2) of this subsection) the following:
``(9) Trust fund.-- The term `Trust Fund' means the Leaking
Underground Storage Tank Trust Fund established by section
9508 of the Internal Revenue Code of 1986.''.
(b) Conforming Amendments.--The Solid Waste Disposal Act
(42 U.S.C. 6901 and following) is amended as follows:
(1) Section 9003(f) (42 U.S.C. 6991b(f)) is amended--
(A) in paragraph (1), by striking ``9001(2)(B)'' and
inserting ``9001(7)(B)''; and
(B) in paragraphs (2) and (3), by striking ``9001(2)(A)''
each place it appears and inserting ``9001(7)(A)''.
(2) Section 9003(h) (42 U.S.C. 6991b(h)) is amended in
paragraphs (1), (2)(C), (7)(A), and (11) by striking
``Leaking Underground Storage Tank Trust Fund'' each place it
appears and inserting ``Trust Fund''.
(3) Section 9009 (42 U.S.C. 6991h) is amended--
(A) in subsection (a), by striking ``9001(2)(B)'' and
inserting ``9001(7)(B)''; and
(B) in subsection (d), by striking ``section 9001(1) (A)
and (B)'' and inserting ``subparagraphs (A) and (B) of
section 9001(10)''.
SEC. 1533. TECHNICAL AMENDMENTS.
The Solid Waste Disposal Act is amended as follows:
(1) Section 9001(4)(A) (42 U.S.C. 6991(4)(A)) is amended by
striking ``sustances'' and inserting ``substances''.
(2) Section 9003(f)(1) (42 U.S.C. 6991b(f)(1)) is amended
by striking ``subsection (c) and (d) of this section'' and
inserting ``subsections (c) and (d)''.
(3) Section 9004(a) (42 U.S.C. 6991c(a)) is amended by
striking ``in 9001(2) (A) or (B) or both'' and inserting ``in
subparagraph (A) or (B) of section 9001(7)''.
(4) Section 9005 (42 U.S.C. 6991d) is amended--
(A) in subsection (a), by striking ``study taking'' and
inserting ``study, taking'';
(B) in subsection (b)(1), by striking ``relevent'' and
inserting ``relevant''; and
(C) in subsection (b)(4), by striking ``Evironmental'' and
inserting ``Environmental''.
TITLE XVI--STUDIES
SEC. 1601. STUDY ON INVENTORY OF PETROLEUM AND NATURAL GAS
STORAGE.
(a) Definition.--For purposes of this section ``petroleum''
means crude oil, motor gasoline, jet fuel, distillates, and
propane.
(b) Study.--The Secretary of Energy shall conduct a study
on petroleum and natural gas storage capacity and operational
inventory levels, nationwide and by major geographical
regions.
(c) Contents.--The study shall address--
(1) historical normal ranges for petroleum and natural gas
inventory levels;
(2) historical and projected storage capacity trends;
(3) estimated operation inventory levels below which
outages, delivery slowdown, rationing, interruptions in
service, or other indicators of shortage begin to appear;
(4) explanations for inventory levels dropping below normal
ranges; and
(5) the ability of industry to meet United States demand
for petroleum and natural gas without shortages or price
spikes, when inventory levels are below normal ranges.
(d) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Secretary of Energy shall
submit a report to Congress on the results of the study,
including findings and any recommendations for preventing
future supply shortages.
SEC. 1602. NATURAL GAS SUPPLY SHORTAGE REPORT.
(a) Report.--Not later than 6 months after the date of
enactment of this Act, the Secretary of Energy shall submit
to Congress a report on natural gas supplies and demand. In
preparing the report, the Secretary shall consult with
experts in natural gas supply and demand as well as
representatives of State and local units of government,
tribal organizations, and consumer and other organizations.
As the Secretary deems advisable, the Secretary may hold
public hearings and provide other opportunities for public
comment. The report shall contain recommendations for Federal
actions that, if implemented, will result in a balance
between natural gas supply and demand at a level that will
ensure, to the maximum extent practicable, achievement of the
objectives established in subsection (b).
(b) Objectives of Report.--In preparing the report, the
Secretary shall seek to develop a series of recommendations
that will result in a balance between natural gas supply and
demand adequate to--
(1) provide residential consumers with natural gas at
reasonable and stable prices;
(2) accommodate long-term maintenance and growth of
domestic natural gas-dependent industrial, manufacturing, and
commercial enterprises;
(3) facilitate the attainment of national ambient air
quality standards under the Clean Air Act;
(4) permit continued progress in reducing emissions
associated with electric power generation; and
(5) support development of the preliminary phases of
hydrogen-based energy technologies.
(c) Contents of Report.--The report shall provide a
comprehensive analysis of natural gas supply and demand in
the United States for the period from 2004 to 2015. The
analysis shall include, at a minimum--
(1) estimates of annual domestic demand for natural gas
that take into account the effect of Federal policies and
actions that are likely to increase and decrease demand for
natural gas;
(2) projections of annual natural gas supplies, from
domestic and foreign sources, under existing Federal
policies;
(3) an identification of estimated natural gas supplies
that are not available under existing Federal policies;
(4) scenarios for decreasing natural gas demand and
increasing natural gas supplies comparing relative economic
and environmental impacts of Federal policies that--
(A) encourage or require the use of natural gas to meet air
quality, carbon dioxide emission reduction, or energy
security goals;
(B) encourage or require the use of energy sources other
than natural gas, including coal, nuclear, and renewable
sources;
(C) support technologies to develop alternative sources of
natural gas and synthetic gas, including coal gasification
technologies;
(D) encourage or require the use of energy conservation and
demand side management practices; and
(E) affect access to domestic natural gas supplies; and
(5) recommendations for Federal actions to achieve the
objectives of the report, including recommendations that--
(A) encourage or require the use of energy sources other
than natural gas, including coal, nuclear, and renewable
sources;
(B) encourage or require the use of energy conservation or
demand side management practices;
(C) support technologies for the development of alternative
sources of natural gas and synthetic gas, including coal
gasification technologies; and
[[Page 29239]]
(D) will improve access to domestic natural gas supplies.
SEC. 1603. SPLIT-ESTATE FEDERAL OIL AND GAS LEASING AND
DEVELOPMENT PRACTICES.
(a) Review.--In consultation with affected private surface
owners, oil and gas industry, and other interested parties,
the Secretary of the Interior shall undertake a review of the
current policies and practices with respect to management of
Federal subsurface oil and gas development activities and
their effects on the privately owned surface. This review
shall include--
(1) a comparison of the rights and responsibilities under
existing mineral and land law for the owner of a Federal
mineral lease, the private surface owners and the Department;
(2) a comparison of the surface owner consent provisions in
section 714 of the Surface Mining Control and Reclamation Act
of 1977 (30 U.S.C. 1304) concerning surface mining of Federal
coal deposits and the surface owner consent provisions for
oil and gas development, including coalbed methane
production; and
(3) recommendations for administrative or legislative
action necessary to facilitate reasonable access for Federal
oil and gas activities while addressing surface owner
concerns and minimizing impacts to private surface.
(b) Report.--The Secretary of the Interior shall report the
results of such review to Congress not later than 180 days
after the date of enactment of this Act.
SEC. 1604. RESOLUTION OF FEDERAL RESOURCE DEVELOPMENT
CONFLICTS IN THE POWDER RIVER BASIN.
The Secretary of the Interior shall--
(1) undertake a review of existing authorities to resolve
conflicts between the development of Federal coal and the
development of Federal and non-Federal coalbed methane in the
Powder River Basin in Wyoming and Montana; and
(2) not later than 6 months after the date of enactment of
this Act, report to Congress on alternatives to resolve these
conflicts and identification of a preferred alternative with
specific legislative language, if any, required to implement
the preferred alternative.
SEC. 1605. STUDY OF ENERGY EFFICIENCY STANDARDS.
The Secretary of Energy shall contract with the National
Academy of Sciences for a study, to be completed within 1
year after the date of enactment of this Act, to examine
whether the goals of energy efficiency standards are best
served by measurement of energy consumed, and efficiency
improvements, at the actual site of energy consumption, or
through the full fuel cycle, beginning at the source of
energy production. The Secretary shall submit the report to
Congress.
SEC. 1606. TELECOMMUTING STUDY.
(a) Study Required.--The Secretary, in consultation with
the Commission, the Director of the Office of Personnel
Management, the Administrator of General Services, and the
Administrator of NTIA, shall conduct a study of the energy
conservation implications of the widespread adoption of
telecommuting by Federal employees in the United States.
(b) Required Subjects of Study.--The study required by
subsection (a) shall analyze the following subjects in
relation to the energy saving potential of telecommuting by
Federal employees:
(1) Reductions of energy use and energy costs in commuting
and regular office heating, cooling, and other operations.
(2) Other energy reductions accomplished by telecommuting.
(3) Existing regulatory barriers that hamper telecommuting,
including barriers to broadband telecommunications services
deployment.
(4) Collateral benefits to the environment, family life,
and other values.
(c) Report Required.--The Secretary shall submit to the
President and Congress a report on the study required by this
section not later than 6 months after the date of enactment
of this Act. Such report shall include a description of the
results of the analysis of each of the subject described in
subsection (b).
(d) Definitions.--As used in this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(2) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(3) NTIA.--The term ``NTIA'' means the National
Telecommunications and Information Administration of the
Department of Commerce.
(4) Telecommuting.--The term ``telecommuting'' means the
performance of work functions using communications
technologies, thereby eliminating or substantially reducing
the need to commute to and from traditional worksites.
(5) Federal employee.--The term ``Federal employee'' has
the meaning provided the term ``employee'' by section 2105 of
title 5, United States Code.
SEC. 1607. LIHEAP REPORT.
Not later than 1 year after the date of enactment of this
Act, the Secretary of Health and Human Services shall
transmit to Congress a report on how the Low-Income Home
Energy Assistance Program could be used more effectively to
prevent loss of life from extreme temperatures. In preparing
such report, the Secretary shall consult with appropriate
officials in all 50 States and the District of Columbia.
SEC. 1608. OIL BYPASS FILTRATION TECHNOLOGY.
The Secretary of Energy and the Administrator of the
Environmental Protection Agency shall--
(1) conduct a joint study of the benefits of oil bypass
filtration technology in reducing demand for oil and
protecting the environment;
(2) examine the feasibility of using oil bypass filtration
technology in Federal motor vehicle fleets; and
(3) include in such study, prior to any determination of
the feasibility of using oil bypass filtration technology,
the evaluation of products and various manufacturers.
SEC. 1609. TOTAL INTEGRATED THERMAL SYSTEMS.
The Secretary of Energy shall--
(1) conduct a study of the benefits of total integrated
thermal systems in reducing demand for oil and protecting the
environment; and
(2) examine the feasibility of using total integrated
thermal systems in Department of Defense and other Federal
motor vehicle fleets.
SEC. 1610. UNIVERSITY COLLABORATION.
Not later than 2 years after the date of enactment of this
Act, the Secretary of Energy shall transmit to Congress a
report that examines the feasibility of promoting
collaborations between large institutions of higher education
and small institutions of higher education through grants,
contracts, and cooperative agreements made by the Secretary
for energy projects. The Secretary shall also consider
providing incentives for the inclusion of small institutions
of higher education, including minority-serving institutions,
in energy research grants, contracts, and cooperative
agreements.
SEC. 1611. RELIABILITY AND CONSUMER PROTECTION ASSESSMENT.
Not later than 5 years after the date of enactment of this
Act, and each 5 years thereafter, the Federal Energy
Regulatory Commission shall assess the effects of the
exemption of electric cooperatives and government-owned
utilities from Commission regulation under section 201(f) of
the Federal Power Act. The assessment shall include any
effects on--
(1) reliability of interstate electric transmission
networks;
(2) benefit to consumers, and efficiency, of competitive
wholesale electricity markets;
(3) just and reasonable rates for electricity consumers;
and
(4) the ability of the Commission to protect electricity
consumers.
If the Commission finds that the 201(f) exemption results in
adverse effects on consumers or electric reliability, the
Commission shall make appropriate recommendations to Congress
pursuant to section 311 of the Federal Power Act.
And the Senate agree to the same.
From the Committee on Energy and Commerce, for consideration
of the House bill and the Senate amendment, and modifications
committed to conference:
Billy Tauzin,
Michael Bilirakis,
Joe Barton,
Fred Upton,
Cliff Stearns,
Paul Gillmor,
John Shimkus,
From the Committee on Agriculture, for consideration of secs.
30202, 30208, 30212, Title III of Division C, secs. 30604,
30901, and 30903 of the House bill and secs. 265, 301, 604,
941-948, 950, 1103, 1221, 1311-1313, and 2008 of the Senate
amendment, and modifications committed to conference:
Bob Goodlatte,
Frank D. Lucas,
Charles W. Stenholm,
From the Committee on Armed Services, for consideration of
secs. 11005, 11010, 14001-14007, 14009-14015, 21805 and 21806
of the House bill and secs. 301, 501-507, 509, 513, 809, 821,
914, 920, 1401, 1407-1409, 1411, 1801, and 1803 of the Senate
amendment, and modifications committed to conference:
Duncan Hunter,
Curt Weldon,
From the Committee on Education and the Workforce, for
consideration of secs. 11021, 12014, 14033, and 30406 of the
House bill and secs. 715, 774, 901, 903, 1505, and 1507 of
the Senate amendment, and modifications committed to
conference:
Sam Johnson,
From the Committee on Financial Services, for consideration
of Division G of the House bill and secs. 931-940 and 950 of
the Senate amendment and modifications committed to
conference:
Robert W. Ney,
From the Committee on Government Reform, for consideration of
secs. 11002, 11005, 11006, 11010, 11011, 14025, 14033, and
22002 of the House bill and secs. 263, 805, 806, 914-916,
918, 920, 1406, and 1410 of the Senate amendment, and
modifications committed to conference:
Tom Davis,
Tim Murphy,
From the Committee on the Judiciary, for consideration of
secs. 12008, 12401, 14014, 14026, 14027, 14028, 14033, 16012,
16045, 16084, 30101, 30210, and 30408 of the House bill and
secs. 206, 209, 253, 531-532, 708, 767, 783, and 1109 of the
Senate amendment, and modifications committed to conference:
Lamar Smith,
From the Committee on Resources, for consideration of secs.
12005, 12007, 12011, 12101, 13001, 21501, 21521-21530,
Division C, and sec. 60009 of the House bill and secs. 201,
265, 272, 301, 401-407, 602-606, 609, 612, 705, 707, 712,
721, 1234, 1351-1352, 1704, and 1811 of the Senate amendment,
and modifications committed to conference:
Richard Pombo,
Barbara Cubin,
Provided that Mr. Kind is appointed in lieu of Mr. Rahall for
consideration of Title IV of
[[Page 29240]]
Division C of the House bill, and modifications committed to
conference:
From the Committee on Science, for consideration of secs.
11009, 11025, 12301-12312, 14001-14007, 14009-14015, 14029,
15021-15024, 15031-15034, 15041, 15045, Division B, sec.
30301, Division E, and Division F of the House bill and secs.
501-507, 509, 513-516, 770-772, 807-809, 814-816, 824, 832,
1001-1022, Title XI, Title XII, Title XIII, Title XIV, secs.
1502, 1504-1505, Title XVI, and secs. 1801-1805 of the Senate
amendment, and modifications committed to conference:
Judy Biggert,
Ralph M. Hall,
Provided that Mr. Costello is appointed in lieu of Mr. Hall
of Texas for consideration of Division E of the House bill,
and modifications committed to conference:
Jerry Costello,
Provided that Mr. Lampson is appointed in lieu of Mr. Hall
of Texas for consideration of sec. 21708 and Division F of
the House bill, and secs. 824 and 1223 of the Senate
amendment and modifications committed to conference:
Nick Lampson,
From the Committee on Transportation and Infrastructure, for
consideration of secs. 11001-11004, 11006, 11009-11011,
12001-12012, 12014, 12401, 12403, 13001, 13201, 13202, 15021-
15024, 15031-15034, 15041, 15043, 15051, 16012, 16021, 16022,
16023, 16031, 16081, 16082, 16092, 23001-23004, 30407, 30410,
and 30901 of the House bill and secs. 102, 201, 205, 301,
701-783, 812, 814, 816, 823, 911-916, 918-920, 949, 1214,
1261-1262, and 1351-1352 of the Senate amendment, and
modifications committed to conference:
Don Young,
Thomas Petri,
From the Committee on Ways and Means, for consideration of
Division D of the House bill and Division H and I of the
Senate amendment, and modifications committed to conference:
William Thomas,
Jim McCrery,
Managers on the Part of the House.
Pete V. Domenici,
Don Nickles,
Larry E. Craig,
Ben Nighthorse Campbell,
Craig Thomas,
Chuck Grassley,
Trent Lott,
Byron L. Dorgan,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE
The managers on the part of the House and the Senate at the
conference on the disagreeing votes of the two Houses on the
amendment of the Senate to the bill (H.R. 6), to provide for
security and diversity in the energy supply for the American
people, and for other purposes, submit the following joint
statement to the House and the Senate in explanation of the
effect of the action agreed upon by the managers and
recommended in the accompanying conference report:
The Senate amendment struck all of the House bill after the
enacting clause and inserted a substitute text.
The House recedes from its disagreement to the amendment of
the Senate with an amendment that is a substitute for the
House bill and the Senate amendment. The differences between
the House bill, the Senate amendment, and the substitute
agreed to in conference are noted below, except for clerical
corrections, conforming changes made necessary by agreements
reached by the conferees, and minor drafting and clarifying
changes.
TITLE I--ENERGY EFFICIENCY
Title I of the conference report sets new performance
requirements for the operations of Federal agencies and
buildings, requires Federal agencies to procure energy
efficient products, and mandates metering of energy use in
Federal buildings. The title has a permanent authorization
for the Energy Savings Performance Contracts (ESPC) program,
and establishes a pilot program for ESPC non-building
applications. The conference report authorizes funding for
new programs to expand State and local energy efficiency
programs in low-income communities and in public buildings
such as schools, hospitals and government facilities. It
provides funding to States and local governments to encourage
consumers to replace existing appliances with more energy
efficient units. The conference report sets energy efficiency
standards for a number of new consumer products, and directs
the Department of Energy to initiate rulemakings to set
standards for others. It requires the Federal Trade
Commission to review and improve energy efficiency labeling
programs. The conference report also authorizes funding for
the Energy Star program and a consumer education program on
HVAC maintenance. Authorization for the Low-Income Home
Energy Assistance Program is extended and expanded, and
additional funds are provided for state energy and
weatherization programs. The report includes a number of
changes to public housing law that encourage improved energy
efficiency in the construction and maintenance of public
housing, improve Federal efficiency standards for public
housing facilities, and require public housing agencies to
purchase energy efficient products.
TITLE II--RENEWABLE ENERGY
Title II of the conference report provides for an ongoing
assessment of renewable energy resources, extends existing
authority for incentive programs for production of renewable
electricity, requires an update of energy plans for insular
areas, and requires the Federal government to purchase a set
amount of electric energy from renewable resources. The
report authorizes $300 million for solar programs, and sets a
goal of installing 20,000 solar roof-top systems in Federal
buildings by 2010. The use of biomass from Federal or Indian
lands is encouraged by the creation of a grant program to
produce electric energy, transportation fuels, or substitutes
for petroleum products from biomass. The program encourages
removal of hazardous fuels from the highest risk areas on
Federal and Indian lands and development of new technologies
to use biomass.
Subtitle B updates the Geothermal Steam Act by amending the
leasing provisions to provide for a competitive leasing
system. The subtitle also directs other actions that will
facilitate new development of geothermal resources. Subtitle
C amends the Federal Power Act to streamline the process for
issuance of hydroelectric licenses. It also provides
production incentives and promotes efficiency improvements at
hydroelectric facilities.
TITLE III--OIL AND GAS
Title III of the conference report includes a variety of
oil and gas production provisions. It improves the Federal
permitting process and expedites the construction of the
Alaska Natural Gas Pipeline.
Subtitle A permanently authorizes the Strategic Petroleum
Reserve and extends authorization for the National Oilheat
Research Alliance. Subtitle B provides financial incentives
to encourage production in deep water and production from
deep natural gas wells in the Gulf of Mexico. The subtitle
also provides royalty relief to marginal wells located on
Federal lands and the Outer Continental Shelf. The Secretary
of the Interior is authorized to provide royalty relief to
existing, non-producing offshore leases in Alaska. The report
addresses natural gas market transparency, and provides
additional market reforms.
Subtitle C authorizes provisions that will improve access
to Federal lands and expedite the approval of permits on
multiple-use lands. There are also provisions to improve
inspection and enforcement of existing permits. The
Secretaries of the Interior and Agriculture are instructed to
designate energy corridors on western lands that can be used
for the deployment of energy transportation and transmission
rights-of-way. A regional pilot program is established to
develop procedures for the timely processing of applications
and permits for Federal lands.
Subtitle D authorizes expedited certification and
permitting of a pipeline to transport natural gas from Alaska
to markets in the continental United States to meet the
rapidly growing demand for natural gas. The conference report
includes loan guarantee authority to support the construction
of the pipeline, and establishes an executive-level office to
coordinate agency actions related to the pipeline.
TITLE IV--COAL
Title IV of the conference report contains provisions that
provide critical research related to the country's most
abundant fossil resource: coal: Subtitle A authorizes a Clean
Coal Power Initiative, providing $200 million annually for
clean coal research in coal-based gasification technologies.
The Secretary of Energy is directed to set increasingly
restrictive emission targets over the life of the program to
develop state-of-the-art technology. Subtitle B provides
financial assistance to a variety of clean coal projects
around the nation. Subtitle C amends several provisions of
the Mineral Leasing Act governing the Federal Coal Leasing
Program, including those pertaining to: lease modifications
to avoid the bypass of coal; mining requirements for logical
mining units; payment of advance royalties; and the deadline
for submission of a coal lease operation and reclamation
plan.
TITLE V--INDIAN ENERGY
Title V of the conference report, referred to as the Indian
Tribal Energy Development and Self-Determination Act of 2003,
assists Indian Tribes in the development of Indian energy
resources by increasing Tribes' internal capacity to develop
their own resources. The title provides grants and technical
assistance, and streamlines the approval profess for Tribal
leases, agreements, and rights-of-way so that outside parties
have more incentive to partner with Tribes in developing
energy resources. Included in this title are provisions
creating an Office of Indian Energy Policy and Programs
within the Department of Energy to support the development of
tribal energy resources. Section 5-05 makes Dine Power
Authority, a Navajo Nation enterprise, eligible for funding
under this title. Section 506 directs the Secretary of
Housing and Urban Development to promote energy efficiency
for Indian housing.
The title also provides a complete substitute for title 26
of the Energy Policy Act of 1992. Sections 2602 and 2603
authorize the
[[Page 29241]]
Secretary of the Interior to provide grants to tribes to
develop and utilize their energy resources and to enhance the
legal and administrative ability of tribes to manage their
resources. Section 2604 establishes a process by which an
Indian tribe, upon demonstrating its technical and financial
capacity, could negotiate and execute energy resource
development leases, agreements and rights-of-way with third
parties without first obtaining the approval of the Secretary
of the Interior. Section 2605 authorizes the Secretary of the
Interior to review activities authorized under the Indian
Mineral Development Act. Section 2606 authorizes WAPA to make
power allocations to meet the firming and reserve needs of
Indian-owned energy projects and acquire power generated by
Indian tribes for firming and reserve needs, so long as the
rates and terms are competitive. Section 2607 authorizes a
study of wind and hydropower potential along the Missouri
River.
TITLE VI--NUCLEAR MATTERS
Title VI of the conference report provides for programs to
ensure that nuclear energy remains a major component of the
Nation's energy supply. Price Anderson liability protection
is extended for both NRC licensees and DOE contractors.
Coverage is increased and indexed for inflation, and non-
profit contractors of the Department are made subject to
payment of penalties assessed for nuclear safety violations.
A research, development, and construction project is
authorized for a new test reactor to be constructed at the
Idaho National Engineering and Environmental Laboratory. The
reactor will serve as a national testbed for advanced reactor
technologies that provide improved attributes over existing
plants, and for co-generation of hydrogen by nuclear energy.
Limits, with several listed exemptions, are imposed on future
sales or transfers of government stockpiles of uranium,
subject to tests that fair market value is received for sales
and that national security is not adversely impacted.
Important nuclear security programs are established, along
with industry reforms, including whistleblower protection,
antitrust review, and legal fee reimbursement.
TITLE VII--FUELS AND VEHICLES
Title VII of the conference report makes a number of
changes to the alternative fuel vehicle mandate program
applicable to Federal, State, local and fuel provider vehicle
fleets pursuant to the Energy Policy Act of 1992. In
particular, credits towards compliance with fleet mandates
can be accrued for the actual use of alternative fuels, the
purchase of neighborhood electric vehicles, investment in
alternative fuel infrastructures, or equivalent contributions
toward compliance by other fleets with their mandates through
the purchase of vehicles or fueling infrastructure. The bill
requires a complete review of alternative fuel mandates, and
enables States to enact regulations to allow alternative fuel
vehicles to use High Occupancy Vehicle lanes regardless of
the number of passengers carried. The conference report
requires the National Highway Transportation Safety
Administration (NHTSA) to additionally consider the effects
on passenger safety and employment levels in the U.S. auto
industry when setting fuel economy standards, requires an
analysis of the fuel economy program, and extends incentives
for ``dual-fuel'' vehicles for another four years.
TITLE VIII--HYDROGEN
Title VIII of the conference report provides for basic
hydrogen energy research and development programs. The title
authorizes new research and development programs for hydrogen
vehicle technologies and hydrogen fuel. The title provides
authorization for a variety of programs to demonstrate
hydrogen and fuel cells for use in light- and heavy-duty
vehicle fleets, stationary power applications, and
international projects. The title requires Federal agencies
to consider methods of incorporating hydrogen and fuel cell
technologies into their missions, and establishes an
interagency task force to oversee hydrogen initiatives.
TITLE IX--RESEARCH AND DEVELOPMENT
Title IX of the conference report provides the research and
development base for the full range of energy-related
technologies. Subtitles include those devoted to Energy
Efficiency, Distributed Energy and Electric Energy Systems,
Renewable Energy, Nuclear Energy, Fossil Energy, Science,
Energy and Environment, and Management. Broad goals are
established to guide the research and development activities
of diversifying energy supplies, increasing energy
efficiency, decreasing dependence on foreign energy supplies,
improving energy security, and decreasing environmental
impact. The Secretary is annually directed to publish
specific goals in major program areas consistent with these
broad goals.
TITLE X--DEPARTMENT OF ENERGY MANAGEMENT
Title X of the conference report creates a new Assistant
Secretary position and expresses the sense of the Congress
that the position should be used to improve management of
Nuclear Energy at the Department of Energy, and grants the
Secretary of Energy authority to enter into other
transactions as appropriate to further research, development,
or demonstration goals of the Department.
TITLE XI--PERSONNEL AND TRAINING
Title XI of the conference report requires establishment of
training guidelines for electric energy industry personnel
and centers for building technologies and power plant
operations training. It also directs increased activity by
the Department of Energy to improve recruitment of under-
represented groups into energy professions. The title directs
the Secretary of Energy to support establishment of a
National Power Plant Operations Center, and encourages agency
coordination for training and outreach efforts for
international commercial energy markets in countries with
developing and restructuring economies.
TITLE XII--ELECTRICITY
Title XII of the conference report reduces regulatory
uncertainty, promotes transmission infrastructure development
and security, and increases consumer protections associated
with the production and delivery of electricity. Subtitle A
requires development of mandatory rules to ensure
transmission grid reliability. Subtitle B addresses
transmission siting, third-party financing of transmission,
and research programs related to transmission upgrades and
improvements. Subtitle C protects transmission access for
native load customers and authorizes the Federal Energy
Regulatory Commission [FERC] to exercise limited jurisdiction
over currently unregulated transmitting utilities to ensure
open access to the transmission grid. It also remands the
proposed rulemaking on Standard Market Design to FERC and
prohibits a final rule before December 31, 2006. Subtitle D
directs FERC to issue rules on transmission pricing policies
and cost allocation for transmission expansion. Subtitle E
amends the Public Utility Regulatory Policies Act of 1978
(PURPA). It prospectively repeals the requirement for
mandatory purchase from qualifying facilities by electric
utilities if a competitive market exists and establishes new
criteria for qualifying cogeneration facilities. Subtitle F
repeals the Public Utility Holding Company Act of 1935
(PUHCA). Subtitle G addresses market transparency and
manipulation, contract sanctity, and unfair trade practices.
It also increases penalties for violations of the Federal
Power Act. Subtitle H provides for merger review reform and
accountability. Subtitle I defines new terms in the Federal
Power Act, and Subtitle J makes technical and conforming
amendments.
TITLE XIII--ENERGY TAXES
I. CONSERVATION
A. Residential and Business Property
1. Residential solar hot water, photovoltaics and other
energy efficient property (sec. 41001 of the House bill,
sec. 2103 of the Senate amendment, and new sec. 25C of
the Code)
present law
A nonrefundable, 10-percent business energy credit is
allowed for the cost of new property that is equipment (1)
that uses solar energy to generate electricity, to heat or
cool a structure, or to provide solar process heat, or (2)
used to produce, distribute, or use energy derived from a
geothermal deposit, but only, in the case of electricity
generated by geothermal power, up to the electric
transmission stage.
The business energy tax credits are components of the
general business credit (sec. 38(b)(1)). The business energy
tax credits, when combined with all other components of the
general business credit, generally may not exceed for any
taxable year the excess of the taxpayer's net income tax over
the greater of (1) 25 percent of net regular tax liability
above $25,000 or (2) the tentative minimum tax. For credits
arising in taxable years beginning after December 31, 1997,
an unused general business credit generally may be carried
back one year and carried forward 20 years (sec. 39).
A taxpayer may exclude from income the value of any subsidy
provided by a public utility for the purchase or installation
of an energy conservation measure. An energy conservation
measure means any installation or modification primarily
designed to reduce consumption of electricity or natural gas
or to improve the management of energy demand with respect to
a dwelling unit (sec. 136).
There is no present-law personal tax credit for energy
efficient residential property.
house bill
The provision provides a personal tax credit for the
purchase of qualified photovoltaic property and qualified
solar water heating property that is used exclusively for
purposes other than heating swimming pools and hot tubs. The
credit is equal to 15 percent of qualified investment up to a
maximum credit of $2,000 for solar water heating property and
$2,000 for rooftop photovoltaic property. This credit is
nonrefundable, and the depreciable basis of the property is
reduced by the amount of the credit.
Qualifying solar water heating property is property that
heats water for use in a dwelling unit located in the United
States and used as a residence if at least half of the energy
used by such property for such purpose
[[Page 29242]]
is derived from the sun. Qualified photovoltaic property is
property that uses solar energy to generate electricity for
use in a dwelling unit. Expenditures for labor costs
allocable to onsite preparation, assembly, or original
installation of property eligible for the credit are eligible
expenditures.
Certain equipment safety requirements need to be met to
qualify for the credit. Special proration rules apply in the
case of jointly owned property, condominiums, and tenant-
stockholders in cooperative housing corporations.
Effective date.--The credit applies to purchases in taxable
years ending after December 31, 2003 and before January 1,
2007 (January 1, 2009 in the case of qualified photovoltaic
property).
senate amendment
The Senate amendment includes the provisions of the House
bill. Additionally, the Senate amendment adds a 30-percent
credit for qualified wind energy property, up to a maximum
credit of $2,000. Qualified wind energy property is property
that uses wind energy to generate electricity for use in a
dwelling unit.
The Senate amendment also provides a 100 percent credit,
with caps, for the purchase of other qualified energy
efficient property, as described below.
Electric heat pump hot water heaters with an energy factor
of at least 1.7. The maximum credit is $75 per unit.
Electric heat pumps with a heating efficiency of at least 9
HSPF (Heating Seasonal Performance Factor) and a cooling
efficiency of at least 15 SEER (Seasonal Energy Efficiency
Rating) and an energy efficiency ratio (EER) of 12.5 or
greater. The maximum credit is $250 per unit.
Advanced natural gas furnaces that achieve a 95 percent
annual fuel utilization efficiency. The maximum credit is
$250 per unit.
Central air conditioners with an efficiency of at least 15
SEER and an EER of 12.5 or greater. The maximum credit is
$250 per unit.
Natural gas water heaters with an Energy Factor of at least
0.8. The maximum credit is $75 per unit.
Geothermal heat pumps that have an EER of at least 21. The
maximum credit is $250 per unit.
With the exception of wind energy property, if less than 80
percent of the property is used for nonbusiness purposes,
only that portion of expenditures that is used for
nonbusiness purposes is taken into account.
Effective date.--The credit applies to purchases after
December 31, 2002, and before January 1, 2008.
conference agreement
The conference agreement generally follows the House bill
with respect to residential solar and photovoltaic property.
With respect to wind energy property, the conference
agreement follows the Senate amendment with two
modifications. First, the credit rate is reduced to 15
percent. Second, with respect to property a portion of which
is used in business, the taxpayer may choose either to claim
the personal credit, or to claim depreciation for the
business use portion of the property, but not both. The
conference agreement clarifies that the $2,000 credit cap
that applies to solar, photovoltaic, and wind energy property
applies across all taxable years. Thus, with respect to a
given dwelling, a taxpayer can claim at most $2,000 in
credits for solar water heating property, $2,000 for
photovoltaic property, and $2,000 for wind energy property.
The conference agreement also clarifies that no section 45
credit may be claimed with respect to any electricity
produced from property for which a residential energy
efficient property credit has been claimed.
The conference agreement does not follow the Senate
amendment with respect to all other energy efficient
property.
It is intended under the conference agreement that
availability of the credit for photovoltaic and wind energy
property would not be impacted by any net-metering or net-
billing arrangements under which the taxpayer sells excess
electricity back to a utility. It is also intended that
expenditures for labor costs properly allocable to the onsite
preparation, assembly, or original installation of qualifying
property and for piping or wiring to interconnect such
property to the dwelling unit can be taken into account for
determining the amount of the credit.
Effective date.--The credit applies to purchases in taxable
years ending after December 31, 2003, and before January 1,
2007 (January 1, 2009, in the case of qualified photovoltaic
property).
2. Credit for electricity produced from certain sources (sec.
41002 of the House bill, secs. 1901, 1902, 1903, 1904,
1905, and 1906 of Senate amendment, and sec. 45 of the
Code)
present law
An income tax credit is allowed for the production of
electricity from either qualified wind energy, qualified
``closed-loop'' biomass, or qualified poultry waste
facilities (sec. 45). The amount of the credit is 1.5 cents
per kilowatt-hour (indexed for inflation) of electricity
produced. The amount of the credit is 1.8 cents per kilowatt-
hour for 2003. The credit is reduced for grants, tax-exempt
bonds, subsidized energy financing, and other credits.
The credit applies to electricity produced by a wind energy
facility placed in service after December 31, 1993, and
before January 1, 2004, to electricity produced by a closed-
loop biomass facility placed in service after December 31,
1992, and before January 1, 2004, and to a poultry waste
facility placed in service after December 31, 1999, and
before January 1, 2004. The credit is allowable for
production during the 10-year period after a facility is
originally placed in service. In order to claim the credit, a
taxpayer must own the facility and sell the electricity
produced by the facility to an unrelated party. In the case
of a poultry waste facility, the taxpayer may claim the
credit as a lessee/operator of a facility owned by a
governmental unit.
house bill
Extension of placed in service date for existing facilities
The House bill extends the placed in service date for wind
facilities and closed-loop biomass facilities to facilities
placed in service after December 31, 1993 (December 31, 1992,
in the case of closed-loop biomass facilities) and before
January 1, 2007. The House bill does not extend the placed in
service date for poultry waste facilities.
Additional qualifying facilities
The House bill also defines three new qualifying
facilities: open-loop biomass facilities, landfill gas
facilities, and trash combustion facilities. Open-loop
biomass is defined as any solid, nonhazardous, cellulosic
waste material which is segregated from other waste materials
and which is derived from any of forest-related resources,
solid wood waste materials, or agricultural sources. Landfill
gas is defined as methane gas derived from the biodegradation
of municipal solid waste. Trash combustion facilities are
facilities that burn municipal solid waste (garbage) to
produce steam to drive a turbine for the production of
electricity. Qualifying open-loop biomass facilities and
qualifying landfill gas facilities include facilities used to
produce electricity placed in service before January 1, 2007.
Qualifying trash combustion facilities include facilities
placed in service after the date of enactment and before
January 1, 2007.
In the case of qualifying open-loop biomass facilities and
qualifying landfill gas facilities placed in service on or
before the date of enactment, the taxpayer may claim the
section 45 production credit for only five years, commencing
on the date of enactment. In the case of qualifying open-loop
biomass facilities and qualifying landfill gas facilities
placed in service on or before the date of enactment, the
taxpayer may claim two-thirds of the otherwise allowable
credit for electricity produced at the facility.
Credit claimants and treatment of other subsidies
In the case of qualifying open-loop biomass facilities
originally placed in service on or before the date of
enactment, a lessee or operator may claim the credit in lieu
of the owner of the qualifying facility. In addition, for
such facilities, any reduction in credit by reason of grants,
tax-exempt bonds, subsidized energy financing, and other
credits cannot exceed 50 percent.
Alternative minimum tax
In the case of wind facilities placed in service after the
date of enactment, the taxpayer may claim credit for
electricity production against both the taxpayer's regular
tax and the taxpayer's alternative minimum tax, if any, for
electricity produced during the first four years of
production measured from the date on which the facility is
placed in service.
No facility that previously claimed or currently claims
credit under section 29 of the Code is a qualifying facility
for purposes of section 45.
Effective date.--The provision is effective for electricity
sold from qualifying facilities after the date of enactment.
senate amendment
Extension of placed in service date for existing facilities
The Senate amendment extends the placed in service date for
wind facilities, closed-loop biomass facilities, and poultry
waste facilities to facilities placed in service after
December 31, 1993 (December 31, 1992, in the case of closed-
loop biomass facilities and December 31, 1999, in the case of
poultry waste facilities) and before January 1, 2007.
Additional qualifying facilities
The Senate amendment also defines seven new qualifying
energy resources: open-loop biomass, swine and bovine waste
nutrients, geothermal energy, solar energy, municipal
biosolids, recycled sludge, and small irrigation.
Open-loop biomass is defined as any solid, nonhazardous,
cellulosic waste material which is segregated from other
waste materials and which is derived from any of forest-
related resources, solid wood waste materials, or
agricultural sources. Eligible forest-related resources are
mill residues, precommercial thinnings, slash, and brush, but
not including old-growth timber (other than old growth timber
that has been permitted or contracted for removal by
appropriate Federal authority under the National
[[Page 29243]]
Environmental Policy Act or appropriate State law authority).
Solid wood waste materials include waste pallets, crates,
dunnage, manufacturing and construction wood wastes (other
than pressure-treated, chemically-treated, or painted wood
wastes), and landscape or right-of-way tree trimmings.
Agricultural sources include orchard tree crops, vineyard,
grain, legumes, sugar, and other crop by-products or
residues. However, qualifying open-loop biomass does not
include municipal solid waste (garbage), gas derived from
biodegradation of solid waste, or paper that is commonly
recycled.
Swine and bovine waste nutrients are defined as swine and
bovine manure and litter, including bedding material for the
disposition of manure.
Geothermal energy is energy derived from a geothermal
deposit which is a geothermal reservoir consisting of natural
heat which is stored in rocks or in an aqueous liquid or
vapor (whether or not under pressure).
Municipal biosolids are the residue or solids removed by a
municipal wastewater treatment facility.
Recycled sludge is the recycled residue byproduct created
in the treatment of commercial, industrial, municipal, or
navigational wastewater, but not including residues from
incineration.
A small irrigation power facility is a facility that
generates electric power through an irrigation system canal
or ditch without any dam or impoundment of water. The
installed capacity of a qualified facility is less than five
megawatts.
Qualifying open-loop biomass facilities are facilities
using open-loop biomass to produce electricity that are
placed in service prior to January 1, 2005. Qualifying swine
and bovine waste nutrient facilities are facilities using
swine and bovine waste nutrients to produce electricity that
are placed in service after the date of enactment and before
January 1, 2007. Qualifying geothermal energy facilities are
facilities using geothermal deposits to produce electricity
that are placed in service after the date of enactment and
before January 1, 2007. Qualifying solar energy facilities
are facilities using solar energy to generate electricity
that are placed in service after the date of enactment and
before January 1, 2007. Qualifying municipal biosolids
facilities are facilities using municipal biosolids to
generate electricity that are originally placed in service
after December 31, 2001, and before January 1, 2007.
Qualifying recycled sludge facilities are facilities using
recycled sludge to generate electricity that are originally
placed in service before January 1, 2007. Qualifying small
irrigation power facilities are facilities using small
irrigation power systems to generate electricity that are
originally placed in service after the date of enactment and
before January 1, 2007.
In the case of qualifying open-loop biomass facilities,
taxpayers may claim the otherwise allowable credit for a
three-year period. For a facility placed in service after the
date of enactment, the three-year period commences when the
facility is placed in service. In the case of open-loop
biomass facility originally placed in service before the date
of enactment, the three-year period commences after December
31, 2002, and the otherwise allowable 1.5 cent-per-kilowatt-
hour credit (adjusted for inflation) is reduced to 1.0 cent-
per-kilowatt-hour credit (adjusted for inflation). In the
case of qualifying geothermal energy and solar energy
facilities, taxpayers may claim the otherwise allowable
credit for the five-year period commencing when the facility
is placed service. In the case of electricity generated from
a recycled sludge facility the 10-year credit period shall
begin no earlier than the date of enactment.
In addition, the Senate amendment modifies present law to
provide that qualifying closed-loop biomass facilities
include any facility originally placed in service before
December 31, 1992 and modified to use closed-loop biomass to
co-fire with coal before January 1, 2007. The taxpayer may
claim credit for all electricity produced at such qualifying
facilities with no reduction for the thermal value of the
coal.
Credit claimants and treatment of other subsidies
In the case of qualifying open-loop biomass facilities and
qualifying closed-loop biomass facilities modified to use
closed-loop biomass to co-fire with coal, the Senate
amendment permits a lessee operator to claim the credit in
lieu of the owner of the facilities.
The Senate amendment provides that certain persons (public
utilities, electric cooperatives, rural electric
cooperatives, and Indian tribes) may sell, trade, or assign
to any taxpayer any credits that would otherwise be allowable
to that person, if that person were a taxpayer, for
production of electricity from a qualified facility owned by
such person. However, any credit sold, traded, or assigned
may only be sold, traded, or assigned once. Subsequent trades
are not permitted. In addition, any credits that would
otherwise be allowable to such person, to the extent provided
by the Administrator of the Rural Electrification
Administration, may be applied as a prepayment to certain
loans or obligations undertaken by such person under the
Rural Electrification Act of 1936.
The Senate amendment repeals the present-law reduction in
allowable credit for facilities financed with tax-exempt
bonds or with certain loans received under the Rural
Electrification Act of 1936.
Effective date.--The Senate amendment generally is
effective for electricity sold from qualifying facilities
after the date of enactment. For electricity produced from
qualifying open-loop biomass facilities originally placed in
service prior to the date of enactment, the provision is
effective January 1, 2003.
conference agreement
Extension of placed in service date for existing facilities
The conference agreement extends the placed in service date
for wind facilities and closed-loop biomass facilities to
facilities placed in service after December 31, 1993
(December 31, 1992, in the case of closed-loop biomass
facilities) and before January 1, 2007.
Under the conference agreement, qualifying closed-loop
biomass facilities include any facility originally placed in
service before December 31, 1992, and modified to use closed-
loop biomass to co-fire with coal, to co-fire with other
biomass, or to co-fire with coal and other biomass before
January 1, 2007. The taxpayer may claim credit for
electricity produced at such qualifying facilities with the
credit amount equal to the otherwise allowable credit
multiplied by the ratio of the thermal content of the closed-
loop biomass fuel burned in the facility to the thermal
content of all fuels burned in the facility.
Additional qualifying resource and facilities
The conference agreement also defines five new qualifying
resources: open-loop biomass (including agricultural
livestock waste nutrients), geothermal energy, solar energy,
small irrigation power, and municipal solid waste. Two
different qualifying facilities use municipal solid waste as
a qualifying resource: landfill gas facilities and trash
combustion facilities.
Qualifying open-loop biomass facilities are facilities
using biomass to produce electricity that are placed in
service prior to January 1, 2007. Qualifying agricultural
livestock waste nutrient facilities are facilities using
agricultural livestock waste nutrients to produce electricity
that are placed in service after the date of enactment and
before January 1, 2007.\1\ The installed capacity of a
qualified agricultural livestock waste nutrient facility is
not less than 150 kilowatts.
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\1\The provision deletes poultry litter as a separate
qualifying facility for facilities placed in service after
the effective date. Poultry litter facilities remain
qualifying facilities as agricultural waste nutrient
facilities. Any poultry litter facility placed in service on
or prior to December 31, 2003, is unaffected by the
modifications made by this provision. For example, the value
of the credit that may be claimed for production from such a
facility would not be reduced by one-third as would be the
case for other animal waste nutrient facilities.
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Qualifying geothermal energy facilities are facilities
using geothermal deposits to produce electricity that are
placed in service after the date of enactment and before
January 1, 2007. Qualifying solar energy facilities are
facilities using solar energy to generate electricity that
are placed in service after the date of enactment and before
January 1, 2007. A qualifying geothermal energy facility or
solar energy facility may not have claimed any credit under
sec. 48 of the Code.\2\
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\2\If a geothermal facility or solar facility claims credit
for any year under section 45 of the Code, the facility is
precluded from claiming any investment credit under section
48 of the Code in the future.
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A qualified small irrigation power facility is a facility
originally placed in service after the date of enactment and
before January 1, 2007. A small irrigation power facility is
a facility that generates electric power through an
irrigation system canal or ditch without any dam or
impoundment of water. The installed capacity of a qualified
facility is not less than 150 kilowatts and less than five
megawatts.
Landfill gas is defined as methane gas derived from the
biodegradation of municipal solid waste. Trash combustion
facilities are facilities that burn municipal solid waste
(garbage) to produce steam to drive a turbine for the
production of electricity. Qualifying landfill gas facilities
and qualifying trash combustion facilities include facilities
used to produce electricity placed in service after the date
of enactment and before January 1, 2007.
Credit period and credit rates
In general, as under present law, taxpayers may claim the
credit at a rate of 1.5 cents per kilowatt-hour (indexed for
inflation and currently 1.8 cents per kilowatt-hour) for 10
years of production commencing on the date the facility is
placed in service. In the case of open-loop biomass
facilities (including agricultural livestock waste
nutrients), geothermal energy, solar energy, small irrigation
power, landfill gas facilities, and trash combustion
facilities the 10-year credit period is reduced to five years
commencing on the date the facility is placed in service. In
general, for facilities placed in service prior to January 1,
2004, the credit period commences on January 1, 2004. In the
case of closed-loop biomass facilities modified to co-fire
with coal, to co-fire with other biomass, or to co-fire with
coal and other biomass, the
[[Page 29244]]
credit period shall begin no earlier than the date of
enactment.
In the case of open-loop biomass facilities (including
agricultural livestock waste nutrients), small irrigation
power, landfill gas facilities, and trash combustion
facilities, the otherwise allowable credit amount is reduced
by one-third.
Credit claimants and treatment of other subsidies
A lessee or operation may claim the credit in lieu of the
owner of the qualifying facility in the case of qualifying
open-loop biomass facilities originally placed in service on
or before the date of enactment and in the case of closed-
loop biomass facilities modified to co-fire with coal, to co-
fire with other biomass, or to co-fire with coal and other
biomass.
In addition, for all qualifying facilities, other than
closed-loop biomass facilities modified to co-fire with coal,
to co-fire with other biomass, or to co-fire with coal and
other biomass, any reduction in credit by reason of grants,
tax-exempt bonds, subsidized energy financing, and other
credits cannot exceed 50 percent. In the case of closed-loop
biomass facilities modified to co-fire with coal, to co-fire
with other biomass, or to co-fire with coal and other
biomass, there is no reduction in credit by reason of grants,
tax-exempt bonds, subsidized energy financing, and other
credits.
No facility that previously claimed or currently claims
credit under section 45K of the Code (as amended by the
conference agreement)\3\ is a qualifying facility for
purposes of section 45.
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\3\The conference agreement modifies present-law section 29
as described below and moves present-law section 29 to new
Code section 45K.
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Alternative minimum tax
In the case of qualifying facilities placed in service
after the date of enactment, the taxpayer may claim credit
for electricity production against both the taxpayer's
regular tax and the taxpayer's alternative minimum tax, if
any, for electricity produced during the first four years of
production measured from the date on which the facility is
placed in service.
GAO study
The conference agreement directs the Comptroller General of
the United States to conduct a study of the market viability
of producing electricity from resources qualifying for the
section 45 production credit (as amended by the conference
agreement). The conferees seek a comparison of the cost of
producing electricity from the various qualifying resources
compared to the cost of producing electricity from fossil
fuels (i.e., coal, oil, and natural gas) using the latest
generation of production technology currently in service in
the United States. The cost of producing electricity should
be reported, on a per kilowatt-hour basis, both as the
incremental cost of production from a facility and on a
fully-amortized cost basis assuming capital costs are
amortized over the useful life of the property. In the case
of facilities using open-loop biomass and municipal solid
waste resources, the measurement of costs should take into
account the avoided costs of waste disposal for which
taxpayers otherwise would be responsible. The study is to
estimate the dollar value of the environmental impact of
producing electricity from qualifying resources compared to
fossil fuels. The Comptroller General is to report his
findings to the Committee on Ways and Means and Committee on
Finance not later than June 30, 2006.
Effective date.--The provision is effective for electricity
produced and sold from qualifying facilities after the date
of enactment.
3. Tax incentives for fuel cells (sec. 41003 of the House
bill, secs. 2103 and 2104 of the Senate amendment, and
sec. 48 and new sec. 25C of the Code)
Present Law
A nonrefundable, 10-percent business energy credit is
allowed for the cost of new property that is equipment (1)
that uses solar energy to generate electricity, to heat or
cool a structure, or to provide solar process heat, or (2)
used to produce, distribute, or use energy derived from a
geothermal deposit, but only, in the case of electricity
generated by geothermal power, up to the electric
transmission stage.
The business energy tax credits are components of the
general business credit (sec. 38(b)(1)). The business energy
tax credits, when combined with all other components of the
general business credit, generally may not exceed for any
taxable year the excess of the taxpayer's net income tax over
the greater of (1) 25 percent of net regular tax liability
above $25,000 or (2) the tentative minimum tax. For credits
arising in taxable years beginning after December 31, 1997,
an unused general business credit generally may be carried
back one year and carried forward 20 years (sec. 39).
A taxpayer may exclude from income the value of any subsidy
provided by a public utility for the purchase or installation
of an energy conservation measure. An energy conservation
measure means any installation or modification primarily
designed to reduce consumption of electricity or natural gas
or to improve the management of energy demand with respect to
a dwelling unit (sec. 136).
There is no present-law credit for stationary fuel cell
power plant property.
House Bill
The provision provides a 10-percent credit for the purchase
of qualified fuel cell power plants for businesses and
individuals. A qualified fuel cell power plant is an
integrated system comprised of a fuel cell stack assembly and
associated balance of plant components that converts a fuel
into electricity using electrochemical means, and which has
an electricity-only generation efficiency of greater than 30
percent. The credit may not exceed $500 for each 0.5 kilowatt
of capacity. For individuals, the qualified fuel cell power
plant must be installed on or in connection with a dwelling
unit located in the United States and used by the taxpayer as
a residence. The credit is nonrefundable. The taxpayer's
basis in the property is reduced by the amount of the credit
claimed.
Effective date.--The credit for businesses applies to
property placed in service after December 31, 2003, and
before January 1, 2007, under rules similar to rules of
section 48(m) of the Internal Revenue Code of 1986 (as in
effect on the day before the date of enactment of the Revenue
Reconciliation Act of 1990). The credit for individuals
applies to expenditures made after December 31, 2003, and
before January 1, 2007.
Senate Amendment
The Senate amendment provides a 30-percent business energy
credit for the purchase of qualified fuel cell power plants
for businesses. A qualified fuel cell power plant is an
integrated system comprised of a fuel cell stack assembly and
associated balance of plant components that converts a fuel
into electricity using electrochemical means, and which has
an electricity-only generation efficiency of greater than 30
percent and generates at least 500 watts of electricity. The
credit for any fuel cell may not exceed $500 for each
kilowatt of capacity. The taxpayer's basis in the property is
reduced by the amount of the credit claimed.
The proposal also provides a 30-percent credit for
individuals for the purchase of qualified fuel cell power
plants. The credit for any fuel cell may not exceed $1,000
for each kilowatt of capacity. The qualified fuel cell power
plant must be installed on or in connection with a dwelling
unit located in the United States and used by the taxpayer as
a principal residence.
Additionally, the Senate amendment provides a 10-percent
credit for the purchase of qualifying stationary microturbine
power plants. A qualified stationary microturbine power plant
is a system comprising a rotary engine that is actuated by
the aerodynamic reaction or impulse or both on radial or
axial curved full-circumferential-admission airfoils on a
central axial rotating spindle. Such system must have an
electricity-only generation efficiency of not less that 26
percent at International Standard Organization conditions.
The credit is limited to the lesser of 10 percent of the
basis of the property or $200 for each kilowatt of capacity.
Effective date.--The credit for businesses applies to
property placed in service after December 31, 2002, and
before January 1, 2008 (January 1, 2007, in the case of
microturbines), under rules similar to rules of section 48(m)
of the Internal Revenue Code of 1986 (as in effect on the day
before the date of enactment of the Revenue Reconciliation
Act of 1990). The credit for individuals applies to
expenditures made after December 31, 2002, and before January
1, 2008.
Conference Agreement
The conference agreement follows the House bill with the
modification that the credit rate is increased to 20 percent.
Effective date.--The provision applies to periods after
December 31, 2003, under rules similar to rules of section
48(m) of the Internal Revenue Code of 1986 (as in effect on
the day before the date of enactment of the Revenue
Reconciliation Act of 1990), for property placed in service
before January 1, 2007. The credit for individuals applies to
expenditures made after December 31, 2003, and before January
1, 2007.
4. Energy efficient improvements to existing homes (secs.
41004 of the House bill, sec. 2109 of the Senate
amendment, and new sec. 25D of the Code)
Present Law
A taxpayer may exclude from income the value of any subsidy
provided by a public utility for the purchase or installation
of an energy conservation measure. An energy conservation
measure means any installation or modification primarily
designed to reduce consumption of electricity or natural gas
or to improve the management of energy demand with respect to
a dwelling unit (sec. 136).
There is no present law credit for energy efficiency
improvements to existing homes.
House Bill
The provision provides a 20-percent nonrefundable credit
for the purchase of qualified energy efficiency improvements.
The maximum credit for a taxpayer with respect to the same
dwelling for all taxable years is $2,000. A qualified energy
efficiency improvement is any energy efficiency building
envelope component that is certified (in the case of
expenditures that exceed $1,000) to meet or exceed the
prescriptive criteria for such a
[[Page 29245]]
component established by the 2000 International Energy
Conservation Code (or, in the case of metal roofs with
appropriate pigmented coatings, meets the Energy Star program
requirements), and (1) that is installed in or on a dwelling
located in the United States; (2) owned and used by the
taxpayer as the taxpayer's principal residence; (3) the
original use of which commences with the taxpayer; and (4)
such component reasonably can be expected to remain in use
for at least five years.
Building envelope components are: (1) insulation materials
or systems which are specifically and primarily designed to
reduce the heat loss or gain for a dwelling; (2) exterior
windows (including skylights) and doors; and (3) metal roofs
with appropriate pigmented coatings which are specifically
and primarily designed to reduce the heat loss or gain for a
dwelling.
The taxpayer's basis in the property is reduced by the
amount of the credit. Special rules apply in the case of
condominiums and tenant-stockholders in cooperative housing
corporations.
Any unused credit may be carried forward to future years.
Effective date.--The credit is effective for qualified
energy efficiency improvements installed after December 31,
2003 and before January 1, 2007.
Senate Amendment
The provision provides a 10-percent nonrefundable credit
for the purchase of qualified energy efficiency improvements.
The maximum credit for a taxpayer with respect to the same
dwelling for all taxable years is $300. A qualified energy
efficiency improvement is any energy efficiency building
envelope component that is certified to meet or exceed the
prescriptive criteria for such a component established by the
2000 International Energy Conservation Code, or any
combination of energy efficiency measures that is certified
to achieve at least a 30 percent reduction in heating and
cooling energy usage for the dwelling and (1) that is
installed in or on a dwelling located in the United States;
(2) that is owned and used by the taxpayer as the taxpayer's
principal residence; (3) the original use of which commences
with the taxpayer; and (4) such component can reasonably be
expected to remain in use for at least five years.
Building envelope components are: (1) insulation materials
or systems which are specifically and primarily designed to
reduce the heat loss or gain for a dwelling; and (2) exterior
windows (including skylights) and doors.
Homes must be certified according to a component-based
method or a performance-based method. The component-based
method is based on applicable energy-efficiency ratings,
including current product labeling requirements. The
performance-based method is based on a comparison of the
projected energy consumption of the dwelling in its original
condition and after the completion of energy efficiency
measures. The performance-based method of certification must
be conducted by an individual or organization recognized by
the Secretary for such purposes.
The certification process requires that energy savings to
the consumer be measured in terms of energy costs. To ensure
consistent and reasonable energy cost analyses, the
Department of Energy shall include in its rulemaking related
to this bill specific reference data to be used for
qualification for the credit.
The taxpayer's basis in the property is reduced by the
amount of the credit. Special rules apply in the case of
condominiums and tenant-stockholders in cooperative housing
corporations.
The credit is allowed against the regular and alternative
minimum tax.
Effective date.--The credit is effective for qualified
energy efficiency improvements installed on or after the date
of enactment and before January 1, 2006.
conference agreement
The conference agreement generally follows the House bill
with the modification that the credit may not be carried
forward. Additionally, the efficiency is to be measured
relative to the 2000 IECC standards as supplemented and as in
effect on the date of enactment.
Effective date.--The credit is effective for qualified
energy efficiency improvements installed after December 31,
2003, and before January 1, 2007.
5. Energy efficient new homes (sec. 41005 of the House bill,
sec. 2101 of the Senate amendment, and new sec. 45G of
the Code)
present law
A nonrefundable, 10-percent business energy credit is
allowed for the cost of new property that is equipment (1)
that uses solar energy to generate electricity, to heat or
cool a structure, or to provide solar process heat, or (2)
used to produce, distribute, or use energy derived from a
geothermal deposit, but only, in the case of electricity
generated by geothermal power, up to the electric
transmission stage.
The business energy tax credits are components of the
general business credit (sec. 38(b)(1)). The business energy
tax credits, when combined with all other components of the
general business credit, generally may not exceed for any
taxable year the excess of the taxpayer's net income tax over
the greater of (1) 25 percent of net regular tax liability
above $25,000 or (2) the tentative minimum tax. For credits
arising in taxable years beginning after December 31, 1997,
an unused general business credit generally may be carried
back one year and carried forward 20 years (sec. 39).
A taxpayer may exclude from income the value of any subsidy
provided by a public utility for the purchase or installation
of an energy conservation measure. An energy conservation
measure means any installation or modification primarily
designed to reduce consumption of electricity or natural gas
or to improve the management of energy demand with respect to
a dwelling unit (sec. 136).
There is no present-law credit for the construction of new
energy-efficient homes.
house bill
The provision provides a credit to an eligible contractor
(up to $2,000 per dwelling) of an amount equal to the
aggregate adjusted bases of all energy-efficient property
installed in a qualified new energy-efficient home during
construction.
The eligible contractor is the person who constructs the
home, or in the case of a manufactured home, the producer of
such home. Energy efficiency property is any energy-efficient
building envelope component (insulation materials, exterior
windows and doors, metal roofs with appropriate pigmented
coatings) and any energy-efficient heating or cooling
appliance.
To qualify as an energy-efficient new home, the home must
be: (1) a dwelling located in the United States; (2) the
principal residence of the person who acquires the dwelling
from the eligible contractor; (3) certified to have a level
of annual heating and cooling energy consumption that is at
least 30 percent below the annual level of heating and
cooling energy consumption of a comparable dwelling
constructed in accordance with the standards of the 2000
International Energy Conservation Code; and (4) with respect
to the building envelope alone, certified to have a level of
annual heating and cooling energy consumption that is 10
percent below the annual level of heating and cooling energy
consumption of a comparable dwelling constructed in
accordance with the standards of the 2000 International
Energy Conservation Code.
Effective date.--The credit applies to homes whose
construction is substantially completed after December 31,
2003, and which are purchased during the period beginning on
January 1, 2003, and ending on December 31, 2006.
senate amendment
The proposal provides a credit to an eligible contractor of
an amount equal to the aggregate adjusted bases of all
energy-efficient property installed in a qualified new
energy-efficient home during construction. The credit cannot
exceed $1,250 ($2,000) in the case of a new home which has a
projected level of annual heating and cooling costs that is
30 percent (50 percent) less than a comparable dwelling
constructed in accordance with Chapter 4 of the 2000
International Energy Conservation Code.
The eligible contractor is the person who constructed the
home, or in the case of a manufactured home, the producer of
such home. Energy efficiency property is any energy-efficient
building envelope component (insulation materials or system
designed to reduce heat loss or gain, and exterior windows,
including skylights, and doors) and any energy-efficient
heating or cooling appliance that can, individually or in
combination with other components, meet the standards for the
home.
To qualify as an energy-efficient new home, the home must
be: (1) a dwelling located in the United States; (2) the
principal residence of the person who acquires the dwelling
from the eligible contractor; and (3) certified to have a
projected level of annual heating and cooling energy
consumption that is either 30-percent or 50-percent less than
a comparable dwelling constructed in accordance with Chapter
4 of the 2000 International Energy Conservation Code. The
home may be certified according to a component-based method
or an energy performance based method. Manufactured homes
that meet the standards of the Department of Energy's Energy
Star program are deemed to satisfy the 30-percent energy
efficiency standard.
The component-based method of certification will be based
on applicable energy-efficiency specifications or ratings,
including current product labeling requirements. The
Secretary will develop component-based packages that are
equivalent in energy performance to properties that qualify
for the credit.
The performance-based method of certification will be based
on an evaluation of the home in reference to a home which
uses the same energy source and system heating type, and is
constructed in accordance with the Chapter 4 of the 2000
International Energy Conservation Code. The certification
will be provided by an individual recognized by the Secretary
for such purposes.
The certification process requires that energy savings to
the consumer be measured in terms of energy costs. To ensure
consistent
[[Page 29246]]
and reasonable energy cost analyses, the Department of Energy
will include in its rulemaking related to this bill specific
reference data to be used for qualification for the credit.
The credit will be part of the general business credit. No
credits attributable to energy efficient homes may be carried
back to any taxable year ending on or before the effective
date of the credit.
Effective date.--The credit applies to homes whose
construction is substantially completed after the date of
enactment and which are purchased during the period beginning
on the date of enactment and ending on December 31, 2007.
conference agreement
The conference agreement generally follows the House bill
with modifications. The requirement that the qualified new
energy efficient home be used as the principal residence of
the person acquiring the home is modified to provide that the
contractor reasonably expect such home to be used as a
residence of the person who acquires the home from the
contractor. The credit amount is limited to $1,000 for new
homes that are 30 percent more efficient than the 2000 IECC
standards, as supplemented and as in effect on the date of
enactment. The credit amount is limited to $2,000 for new
homes that are 50 percent more efficient than the 2000 IECC
standards, as supplemented and as in effect on the date of
enactment. With respect to the building envelope alone, all
qualifying new homes must be at least 10 percent more
efficient than the 2000 IECC standard as supplemented and as
in effect on the date of enactment. Additionally, the
conference agreement includes the Senate amendment provision
with respect to Energy Star manufactured homes, though the
credit is limited to $1,000.
Certification requirements are to be met in accordance with
guidance prescribed by the Secretary of the Treasury. Such
guidance shall specify procedures and methods for calculating
energy and cost savings. It is expected that such guidance
will allow for third-party certification, but will also allow
the eligible contractor to meet the certification
requirements without necessarily involving a third-party
certifier. It is also expected that such guidance will
provide sufficient safeguards to ensure that only homes
meeting the required standards will obtain certification.
The certification shall be made in writing in a manner
which specifies the energy efficient building envelope
components and energy efficient heating or cooling equipment
installed and their respective energy efficiency performance.
In the case of homes qualifying under the Energy Star
program, the certification shall be accompanied by
documentation as required by the Administrator of the
Environmental Protection Agency under the Energy Star Labeled
Homes program.
The credit is treated as part of the general business
credit and, under a special transition rule, may not be
carried back to a taxable year ending before or on the
effective date of the provision.
Effective date.--The credit applies to homes whose
construction is substantially completed after December 31,
2003, and which are purchased during the period beginning on
January 1, 2004, and ending on December 31, 2006.
6. Energy credit for combined heat and power system property
(sec. 41006 of the House bill, sec. 2108 of the Senate
amendment, and sec. 48 of the Code)
present law
A nonrefundable, 10-percent business energy credit is
allowed for the cost of new property that is equipment (1)
that uses solar energy to generate electricity, to heat or
cool a structure, or to provide solar process heat, or (2)
used to produce, distribute, or use energy derived from a
geothermal deposit, but only, in the case of electricity
generated by geothermal power, up to the electric
transmission stage.
The business energy tax credits are components of the
general business credit (sec. 38(b)(1)). The business energy
tax credits, when combined with all other components of the
general business credit, generally may not exceed for any
taxable year the excess of the taxpayer's net income tax over
the greater of (1) 25 percent of net regular tax liability
above $25,000 or (2) the tentative minimum tax. For credits
arising in taxable years beginning after December 31, 1997,
an unused general business credit generally may be carried
back one year and carried forward 20 years (sec. 39).
A taxpayer may exclude from income the value of any subsidy
provided by a public utility for the purchase or installation
of an energy conservation measure. An energy conservation
measure means any installation or modification primarily
designed to reduce consumption of electricity or natural gas
or to improve the management of energy demand with respect to
a dwelling unit (sec. 136).
There is no present-law credit for combined heat and power
(``CHP'') property.
house bill
The provision provides a 10-percent credit for the purchase
of CHP property.
CHP property is property: (1) that uses the same energy
source for the simultaneous or sequential generation of
electrical power, mechanical shaft power, or both, in
combination with the generation of steam or other forms of
useful thermal energy (including heating and cooling
applications); (2) that has an electrical capacity of more
than 50 kilowatts or a mechanical energy capacity of more
than 67 horsepower or an equivalent combination of electrical
and mechanical energy capacities; (3) that produces at least
20 percent of its total useful energy in the form of thermal
energy and at least 20 percent in the form of electrical or
mechanical power (or a combination thereof); and (4) the
energy efficiency percentage of which exceeds 60 percent (70
percent in the case of a system with an electrical capacity
in excess of 50 megawatts or a mechanical energy capacity in
excess of 67,000 horsepower, or an equivalent combination of
electrical and mechanical capacities.)
CHP property does not include property used to transport
the energy source to the generating facility or to distribute
energy produced by the facility.
If a taxpayer is allowed a credit for CHP property, and the
property would ordinarily have a depreciation class life of
15 years or less, the depreciation period for the property is
treated as having a 22-year class life. The present-law carry
back rules of the general business credit generally apply
except that no credits attributable to combined heat and
power property may be carried back before the effective date
of this provision.
Effective date.--The credit applies to property placed in
service after December 31, 2003 and before January 1, 2007.
senate amendment
The Senate amendment is similar to the House bill. However,
for purposes of determining whether CHP property includes
technologies which generate electricity or mechanical power
using back-pressure steam turbines in place of existing
pressure-reducing valves, or which make use of waste heat
from industrial processes such as by using organic rankine,
stirling, or kalina heat engine systems, the energy output
requirements related to heat versus power described under
(3), above, and the energy efficiency requirements of (4),
above, may be disregarded.
Effective date.--The credit applies to property placed in
service after December 31, 2002 and before January 1, 2007.
conference agreement
The conference agreement follows the House bill with
modifications. The first modification removes the minimum
system size requirement and limits the availability of the
credit to systems with capacity less than 15 megawatts or
2,000 horsepower. The second modification eliminates the
extension of the depreciation period from 15 to 22 years. The
third modification is that systems whose fuel source is at
least 90 percent bagasse and that would qualify for the
credit, but for the failure to meet the efficiency standard,
are eligible for a credit that is reduced in proportion to
the degree to which the system fails to meet the efficiency
standard. For example, a system that would otherwise be
required to meet the 60-percent efficiency standard, but
which only achieves 30-percent efficiency, would be permitted
a credit equal to one-half of the otherwise allowable credit
(i.e., a 5-percent credit).
The credit may not be carried back to a taxable year ending
before January 1, 2004.
Effective date.--The provision applies to periods after
December 31, 2003, in taxable years ending after such date,
under rules similar to rules of section 48(m) of the Internal
Revenue Code of 1986 (as in effect on the day before the date
of enactment of the Revenue Reconciliation Act of 1990), for
property placed in service before January 1, 2007.
7. Energy efficient appliances (sec. 2102 of the Senate
amendment and new sec. 45H of the Code)
present law
A nonrefundable, 10-percent business energy credit is
allowed for the cost of new property that is equipment: (1)
that uses solar energy to generate electricity, to heat or
cool a structure, or to provide solar process heat; or (2)
used to produce, distribute, or use energy derived from a
geothermal deposit, but only, in the case of electricity
generated by geothermal power, up to the electric
transmission stage.
The business energy tax credits are components of the
general business credit (sec. 38(b)(1)). The business energy
tax credits, when combined with all other components of the
general business credit, generally may not exceed for any
taxable year the excess of the taxpayer's net income tax over
the greater of: (1) 25 percent of net regular tax liability
above $25,000 or (2) the tentative minimum tax. For credits
arising in taxable years beginning after December 31, 1997,
an unused general business credit generally may be carried
back one year and carried forward 20 years (sec. 39).
A taxpayer may exclude from income the value of any subsidy
provided by a public utility for the purchase or installation
of an energy conservation measure. An energy conservation
measure means any installation or modification primarily
designed to
[[Page 29247]]
reduce consumption of electricity or natural gas or to
improve the management of energy demand with respect to a
dwelling unit (sec. 136).
There is no present-law credit for the manufacture of
energy-efficient appliances.
House Bill
No provision.
Senate Amendment
The Senate amendment provides a credit for the production
of certain energy-efficient clothes washers and
refrigerators. The credit would equal $50 per appliance for
energy-efficient clothes washers produced with a modified
energy factor (``MEF'') of 1.26 or greater and for
refrigerators produced that consume 10 percent less kilowatt-
hours per year than the energy conservation standards
promulgated by the Department of Energy that took effect on
July 1, 2001. The credit equals $100 for energy-efficient
clothes washers produced with a MEF of 1.42 or greater (1.5
or greater for clothes washers produced after 2004) and for
refrigerators produced that consume 15 percent less kilowatt-
hours per year than the energy conservation standards
promulgated by the Department of Energy that took effect on
July 1, 2001. A refrigerator must be an automatic defrost
refrigerator-freezer with an internal volume of at least 16.5
cubic feet to qualify for the credit. A clothes washer is any
residential clothes washer, including a residential style
coin operated washer, that satisfies the relevant efficiency
standard.
For each category of appliances (i.e., clothes washers that
meet the lower MEF standard, washers that meet the higher MEF
standard, refrigerators that meet the 10 percent standard,
refrigerators that meet the 15 percent standard), only
production in excess of average production for each such
category during calendar years 1999-2001 would be eligible
for the credit. The taxpayer may not claim credits in excess
of $30 million for all taxable years for appliances that
qualify for the $50 credit, and may not claim credits in
excess of $30 million for all taxable years for appliances
that qualify for the $100 credit. Additionally, the credit
allowed for all appliances may not exceed two percent of the
average annual gross receipts of the taxpayer for the three
taxable years preceding the taxable year in which the credit
is determined.
The credit will be part of the general business credit. No
credits attributable to energy-efficient appliances may be
carried back to taxable years ending before January 1, 2003.
Effective date.--The credit applies to appliances produced
after December 31, 2002, and prior to (1) January 1, 2005, in
the case of refrigerators that only meet the 10 percent
credit standard, or (2) January 1, 2007, in the case of all
other qualified energy-efficient appliances.
Conference Agreement
The conference agreement generally follows the Senate
amendment with modifications. The $50 credit is eliminated
for clothes washers and refrigerators. A credit of $100 is
allowed for refrigerators that consume 15 percent (20 percent
for refrigerators produced after 2006) less kilowatt-hours
per year than the energy conservation standards promulgated
by the Department of Energy that took effect on July 1, 2001.
A credit of $100 is allowed for clothes washers with a MEF of
1.5 or greater. A credit of $150 is allowed for refrigerators
produced prior to 2007 that consume 20 percent less kilowatt-
hours per year than the energy conservation standards
promulgated by the Department of Energy that took effect on
July 1, 2001. The $30 million overall credit limitation for
each of two separate categories of appliances is replaced
with a cap of $60 million across all appliances combined.
The three prior years are the base period years for
calculation of the credit for any specific year. To qualify
for any credit, production must exceed 110 percent of the
average annual production in the base period years.
Additionally, in order to determine if production has
exceeded the baseline, all clothes washers and refrigerators
are treated as a single group, rather than separately by
their credit-specific efficiency standard. For example, if in
the base period a producer produced an average of 1000
refrigerators and clothes washers combined that would have
met the $100 credit standard, and no refrigerators that would
have met the $150 credit standard, such producer would need
to produce a combination of at least 1100 (110 percent of
base period average) refrigerators or clothes washers that
met the efficiency standards in order to receive any tax
credit. Thus, even though the base period production of
refrigerators meeting the $150 credit standard is zero, a
producer would not be eligible to receive a credit for
production of such refrigerators unless a combination of at
least 1100 refrigerators or clothes washers meeting any of
the efficiency standards were produced. The aggregate amount
of production eligible for a credit is allocated between the
$100 and $150 credit categories in proportion to the total
production in each credit category. Only production in the
United States is eligible for credit and only U.S. production
is considered for the base-period production levels.
The credit is treated as part of the general business
credit and, under a special transition rule, may not be
carried back to a taxable year ending before or on the
effective date of the provision.
Effective date.--The credit applies to appliances produced
after December 31, 2003, and before January 1, 2008.
8. Energy efficient commercial building deduction (sec. 2105
of Senate amendment, and new sec. 179B of the Code)
Present Law
No special deduction is currently provided for expenses
incurred for energy-efficient commercial building property.
House Bill
No provision.
Senate Amendment
The Senate amendment provides a deduction equal to energy-
efficient commercial building property expenditures made by
the taxpayer. Energy-efficient commercial building property
expenditures are defined as amounts paid or incurred for
energy-efficient commercial building property installed in
connection with the new construction or reconstruction of
property: (1) which is depreciable property, (2) which is
located in the United States, and (3) the construction or
erection of which is completed by the taxpayer. The deduction
is limited to an amount equal to the product of $2.25 and the
square footage of the property for which such expenditures
were made. The deduction is allowed in the taxable year in
which the construction of the building is completed.
Energy-efficient commercial building property means any
property that reduces total annual energy and power costs
with respect to the lighting, heating, cooling, ventilation,
and hot water supply systems of the building by 50 percent or
more in comparison to a reference building which meets the
requirements of a Standard 90.1-1999 of the American Society
of Heating, Refrigerating, and Air Conditioning Engineers and
the Illuminating Engineering Society of North America
(``ASHRAE/IESNA'').
Certain certification requirements must be met in order to
qualify for the deduction. The Secretary, in consultation
with the Secretary of Energy, is directed to promulgate
regulations that describe methods of calculating and
verifying energy and power costs, taking into consideration
the provisions of the 2001 California Nonresidential
Alternative Calculation Method Approval Manual. To allow
proper calculations of cost, the Secretary shall prescribe
the costs per unit of energy and power, such as kilowatt
hour, kilowatt, gallon of fuel oil, and cubic foot or Btu of
natural gas, which may be dependent on time of usage.
The Secretary shall promulgate procedures for the
inspection and testing for compliance of buildings that are
comparable, given the difference between commercial and
residential buildings, to the requirements in the Mortgage
Industry National Home Energy Rating Standards. Such
procedures are to be fuel neutral, such that the same energy
efficiency features shall qualify a building for the
deduction under this subsection regardless of whether the
heating source is a gas or oil furnace or an electric heat
pump. Individuals qualified to determine compliance shall
only be those recognized by one or more organizations
certified by the Secretary for such purposes.
When final regulations are adopted, such regulations shall,
with respect to methods of calculating and verifying energy
and power costs, take into consideration appropriate energy
savings from design methodologies and technologies not
otherwise credited in ASHRAE/IESNA Standard 90.1-1999 or in
the 2001 California Nonresidential Alternative Calculation
Method Approval Manual.
For public property, such as schools, the Secretary will
issue regulations to allow the deduction to be allocated to
the person primarily responsible for designing the property
in lieu of the public entity owner.
The basis of the property is reduced by the amount of the
deduction allowed.
Effective date.--The Senate amendment is effective for
taxable years beginning after September 1, 2002, for plans
certified prior to December 31, 2007, whose construction is
completed on or before December 31, 2009.
Conference Agreement
The conference agreement follows the Senate amendment with
modifications. The maximum deduction is limited to $1.50 per
square foot, and energy efficiency is to be measured relative
to the Standard 90.1-2001 of the American Society of Heating,
Refrigerating, and Air Conditioning Engineers and the
Illuminating Engineering Society of North America, as in
effect on April 2, 2003. Additionally, with respect to public
property, no transfer of the deduction to the person
primarily responsible for designing the property is allowed.
In the case of a retrofitted or reconstructed building, but
not a new building placed in service after the date of
enactment, that does not meet the overall building
requirement of a 50-percent energy savings, a partial
deduction is allowed with respect to each separate building
system that comprises energy efficient property and which is
certified by a qualified professional as meeting or exceeding
the applicable system-specific savings targets established by
the Secretary of the Treasury. The applicable system-specific
savings targets to be established by the Secretary are those
that
[[Page 29248]]
would result in a total annual energy savings with respect to
the whole building of 50 percent, if each of the separate
systems met the system specific target. The separate building
systems are (1) the lighting system, (2) the heating cooling
and ventilation and hot water systems, and (3) the building
envelope. The maximum allowable deduction is $0.50 per square
foot for each separate system.
In the case of system-specific partial deductions for
retrofitted or reconstructed buildings, in general no
deduction is allowed until the Secretary establishes system-
specific targets. However, in the case of lighting system
retrofits, until such time as the Secretary issues final
regulations, the system-specific energy savings target for
the lighting system is deemed to be met by a reduction in
Lighting Power Density of 40 percent (50 percent in the case
of a warehouse) of the minimum requirements in Table 9.3.1.1
or Table 9.3.1.2 of ASHRAE/IESNA Standard 90.1-2001. Also, in
the case of a lighting system that reduces lighting power
density by 25 percent, a partial deduction of 25 cents per
square foot is allowed. A prorated partial deduction is
allowed in the case of a lighting system that reduces
lighting power density between 25 percent and 40 percent.
Certain lighting level and lighting control requirements must
also be met in order to qualify for the partial lighting
deductions.
The conference agreement provides that the Secretary shall
establish procedures for certifying eligibility to claim the
deduction. The Secretary shall include as part of the
certification process procedures for inspection and testing
by qualified individuals to ensure compliance of buildings
with energy savings plans and targets. Individuals qualified
to determine compliance shall only be those individuals who
are recognized by an organization certified by the Secretary
for such purposes.
The Secretary, in consultation with the Secretary of
Energy, is directed to promulgate regulations that describe
methods of calculating and verifying energy and power costs.
Additionally, the Secretary is directed to promulgate
regulations as necessary to take into account new
technologies regarding energy efficiency and renewable energy
for purposes of determining energy efficiency and savings.
Additionally, the Secretary shall promulgate regulations for
recapture of the deduction if the deduction is taken pursuant
to a plan to achieve the requisite energy efficiency standard
that is subsequently not fully implemented as necessary to
achieve such standard.
Effective date.--The provision is effective for property
placed in service after the date of enactment and on or
before December 31, 2007.
9. Three-year applicable recovery period for depreciation of
qualified energy management devices and qualified water
submetering devices (secs. 2107 and 2111 of the Senate
amendment and sec. 168 of the Code)
Present Law
No special recovery period is currently provided for
depreciation of energy management devices or water
submetering devices.
House Bill
No provision.
Senate Amendment
The Senate amendment provides a three-year recovery period
for qualified new or retrofitted energy management devices
placed in service by any taxpayer who is a supplier of
electric energy or natural gas or is a provider of electric
energy or natural gas services. A qualified energy management
device is any tangible property eligible for accelerated
depreciation under section 168 and which is acquired and used
by the taxpayer to enable consumers or others to manage their
purchase, sale, or use of electricity in response to energy
price and usage signals and which permits reading of energy
price and usage signals on at least a daily basis.
Additionally, the provision provides a three-year recovery
period for qualified new water submetering devices placed in
service by any taxpayer who is an eligible resupplier. An
eligible resupplier is any taxpayer who purchases and
installs qualified water submetering devices in every unit in
any multi-unit property. A qualified water submetering device
is any tangible property eligible for accelerated
depreciation under section 168 that enables consumers to
manage their purchase or use of water in response to water
price and usage signals and that permits reading of water
price and usage signals on at least a daily basis.
Effective date.--The provision is effective for any
qualified energy management device placed in service after
the date of enactment of the Act, and for any water
submetering device placed in service after the date of
enactment of the Act and prior to January 1, 2008.
Conference Agreement
The conference agreement generally follows the Senate
amendment with respect to energy management devices, but with
modifications. The conference agreement provides a three-year
recovery period for qualified new energy management devices
placed in service by any taxpayer who is a supplier of
electric energy or is a provider of electric energy services.
A qualified energy management device is any meter or metering
device eligible for accelerated depreciation under section
168 and which is used by the taxpayer (1) to measure and
record electricity usage data on a time-differentiated basis
in at least 4 separate time segments per day, and (2) to
provide such data on at least a monthly basis to both
consumers and the taxpayer.
The conference agreement does not include the Senate
amendment provision related to water submetering devices.
Effective date.--The provision is effective for any
qualified energy management device placed in service after
the date of enactment and prior to January 1, 2008.
10. Allowance of deduction for qualified energy management
devices and qualified water submetering devices (secs.
2106 and 2110 of the Senate amendment)
Present Law
No special deduction is currently provided for expenses
incurred for energy management devices or water submetering
devices.
House Bill
No provision.
Senate Amendment
The Senate amendment provides a $30 deduction for each
qualified new or retrofitted energy management device placed
in service by any taxpayer who is a supplier of electric
energy or natural gas or is a provider of electric energy or
natural gas services. A qualified energy management device is
any tangible property eligible for accelerated depreciation
under section 168 and which is acquired and used by the
taxpayer to enable consumers or others to manage their
purchase, sale, or use of electricity in response to energy
price and usage signals and which permits reading of energy
price and usage signals on at least a daily basis.
The deduction is not allowed to property used outside of
the United States. The taxpayer would have basis reduction
for such property equal to the deduction. Other rules apply.
In addition, the Senate amendment provides a $30 deduction
for qualified water submetering devices. A qualified water
submetering device is any tangible property eligible for
accelerated depreciation under section 168 that enables
consumers to manage their purchase or use of water in
response to water price and usage signals and that permits
reading of water price and usage signals on at least a daily
basis.
Effective date.--The provision is effective for any
qualified energy management device placed in service after
the date of enactment of the Act, and for any water
submetering device placed in service after the date of
enactment of the Act and prior to January 1, 2008.
Conference Agreement
The conference agreement does not include the Senate
amendment.
11. Credit for electricity produced from advanced nuclear
power facilities (new sec. 45L of the Code)
Present Law
An income tax credit is allowed for the production of
electricity from either qualified wind energy, qualified
``closed-loop'' biomass, or qualified poultry waste
facilities (sec. 45). The amount of the credit is 1.5 cents
per kilowatt-hour (indexed for inflation) of electricity
produced. The amount of the credit is 1.8 cents per kilowatt-
hour for 2003. The credit is reduced for grants, tax-exempt
bonds, subsidized energy financing, and other credits.
House Bill
No provision.
Senate Amendment
No provision.
Conference Agreement
The conference agreement that a taxpayer producing
electricity at a qualifying advanced nuclear power facility
may claim a credit equal to 1.8 cents per kilowatt-hour of
electricity produced for the eight year period starting when
the facility is placed in service.\4\ The aggregate amount of
credit that a taxpayer may claim in any year during the
eight-year period is subject to limitation based on allocated
capacity and an annual limitation as described below.
---------------------------------------------------------------------------
\4\The 1.8-cents credit amount is reduced, but not below
zero, if the annual average contract price per kilowatt-hour
of electricity generated from advanced nuclear power
facilities in the preceding year exceeds eight cents per
kilowatt-hour. The eight-cent price comparison level is
indexed for inflation after 1992.
---------------------------------------------------------------------------
A qualifying advanced nuclear facility is an advanced
nuclear facility for which the taxpayer has received an
allocation of megawatt capacity from the Secretary and is
placed in service before January 1, 2021. The taxpayer may
only claim credit for production of electricity equal to the
ratio of the allocated capacity that the taxpayer receives
from the Secretary to the rated nameplate capacity of the
taxpayer's facility. For example, if the taxpayer receives an
allocation of 750 megawatts of capacity from the Secretary
and the taxpayer's facility has a rated nameplate capacity of
1,000 megawatts, then the taxpayer may claim three-quarters
of the otherwise allowable credit, or 1.35 cents per
kilowatt-hour, for each kilowatt-hour of electricity produced
at the facility
[[Page 29249]]
(subject to the annual limitation described below). The
Secretary may allocate up to 6,000 megawatts of capacity.
A taxpayer operating a qualified facility may claim no more
than $125 million in tax credits per 1,000 megawatts of
allocated capacity in any one year of the eight-year credit
period. If the taxpayer operates a 1,350 megawatt rated
nameplate capacity system and has received an allocation from
the Secretary for 1,350 megawatts of capacity eligible for
the credit, the taxpayer's annual limitation on credits that
may be claimed is equal to 1.35 time $125 million, or $168.75
million. If the taxpayer operates a facility with a nameplate
rated capacity of 1,350 megawatts, but has received an
allocation from the Secretary for 750 megawatts of credit
eligible capacity, then the two limitations apply such that
the taxpayer may claim a credit equal to 1.35 cents per
kilowatt-hour of electricity produced (as described above)
subject to an annual credit limitation of $93.75 million in
credits (three-quarters of $125 million).
An advanced nuclear facility is any nuclear facility for
the production of electricity, the reactor design for which
is approved after the date of enactment. For this purpose, a
qualifying advanced nuclear facility is not any facility for
which a substantial similar design for a facility of
comparable capacity was approved on or before the date of
enactment.
In addition, the credit allowable to the taxpayer is
reduced by reason of grants, tax-exempt bonds, subsidized
energy financing, and other credits, but such reduction
cannot exceed 50 percent of the otherwise allowable credit.
The credit is treated as part of the general business credit
and, under a special transition rule may not be carried back
to a taxable year ending before or on the effective date of
the provision.
Effective date.--The provision is effective for production
in taxable years beginning after December 31, 2003.
B. Fuels and Alternative Motor Vehicles
1. Repeal certain excise taxes on rail diesel fuel and inland
waterway barge fuels (sec. 41008 of the House bill and
secs. 4041, 4042, 6421, and 6427 of the Code)
Present Law
Under present law, diesel fuel used in trains is subject to
a 4.4-cents-per gallon excise tax. Revenues from 4.3 cents
per gallon of this excise tax are retained in the General
Fund of the Treasury. The remaining 0.1 cent per gallon is
deposited in the Leaking Underground Storage Tank (``LUST'')
Trust Fund.
Similarly, fuels used in barges operating on the designated
inland waterways system are subject to a 4.3-cents-per-gallon
General Fund excise tax. This tax is in addition to the 20.1-
cents-per-gallon tax rates that are imposed on fuels used in
these barges to fund the Inland Waterways Trust Fund and the
Leaking Underground Storage Tank Trust Fund.
In both cases, the 4.3-cents-per-gallon excise tax rates
are permanent. The LUST tax is scheduled to expire after
March 31, 2005.
House Bill
The 4.3-cents-per-gallon General Fund excise tax rate on
diesel fuel used in trains and fuels used in barges operating
on the designated inland waterways system is repealed. The
0.1 cent per gallon for the Leaking Underground Storage Tank
(``LUST'') Trust Fund is unchanged by the provision.
Effective date.--The provision is effective on January 1,
2004.
Senate Amendment
No provision.
Conference Agreement
The conference agreement follows the House bill.
2. Btu-based rate for diesel/water emulsion fuel (sec. 41009
of the House bill and secs. 4081 and 6427 of the Code)
Present Law
A 24.3 cents per gallon excise tax is imposed on diesel
fuel to finance the Highway Trust Fund. Gasoline and most
special motor fuels are subject to tax at 18.3 cents per
gallon for the Trust Fund. The statutory rate for certain
special motor fuels is determined on an energy equivalent
basis, as follows:
Liquefied petroleum gas (propane)......... 13.6 cents per gallon.
Liquefied natural gas..................... 11.9 cents per gallon.
Methanol derived from petroleum or natural 9.15 cents per gallon.
gas......................................
Compressed natural gas.................... 48.54 cents per MCF.
No special tax rate is provided for diesel fuel blended in
a water emulsion fuel.
House Bill
A special tax rate of 19.7 cents per gallon is provided for
diesel fuel blended with water into a diesel/water emulsion
fuel to reflect the reduced Btu content per gallon resulting
from the water. Emulsion fuels eligible for the special rate
must consist of not more than 86 percent diesel fuel (and
other minor chemical additives to enhance combustion) and at
least 14 percent water. Anyone who separates the diesel fuel
from the diesel-water fuel emulsion on which a reduced rate
of tax was imposed is treated as a refiner of the fuel and is
liable for the difference between the amount of tax on the
latest removal of the separated fuel and the amount of tax
that was imposed on any prior removal or entry of such fuel.
Effective date.--The provision applies to fuels removed
after September 30, 2003.
Senate Amendment
No provision.
Conference Agreement
The conference agreement follows the House bill except as
to the effective date.
Effective date.--The provision is effective January 1,
2004.
3. Modifications to small producer ethanol credit (sec. 2005
of the Senate amendment and sec. 40 of the Code)
Present Law
Small producer credit
Present law provides several tax benefits for ethanol and
methanol produced from renewable sources (e.g., biomass) that
are used as a motor fuel or that are blended with other fuels
(e.g., gasoline) for such a use. In the case of ethanol, a
separate 10-cents-per-gallon credit is provided for small
producers, defined generally as persons whose production does
not exceed 15 million gallons per year and whose production
capacity does not exceed 30 million gallons per year. The
small producer credit is part of the alcohol fuels tax credit
under section 40 of the Code. The alcohol fuels tax credits
are includible in income. This credit, like tax credits
generally, may not be used to offset alternative minimum tax
liability. The credit is treated as a general business
credit, subject to the ordering rules and carryforward/
carryback rules that apply to business credits generally. The
alcohol fuels tax credit is scheduled to expire after
December 31, 2007.
Taxation of cooperatives and their patrons
Under present law, cooperatives in essence are treated as
pass-through entities in that the cooperative is not subject
to corporate income tax to the extent the cooperative timely
pays patronage dividends. Under present law (sec. 38(d)(4)),
the only excess credits that may be passed through to
cooperative patrons are the rehabilitation credit (sec. 47),
the energy property credit (sec. 48(a)), and the
reforestation credit (sec. 48(b)).
House Bill
No provision.
Senate Amendment
The Senate amendment makes several modifications to the
rules governing the small producer ethanol credit. First, the
provision liberalizes the definition of an eligible small
producer to include persons whose production capacity does
not exceed 60 million gallons. Second, the provision allows
cooperatives to elect to pass through the small ethanol
producer credits to its patrons. The credit is apportioned
pro rata among patrons of the cooperative on the basis of the
quantity or value of the business done with or for such
patrons for the taxable year. An election to pass through the
credit is made on a timely filed return for the taxable year
and is irrevocable for such taxable year.
Third, the provision repeals the rule that includes the
small producer credit in income of taxpayers claiming it.
Fourth, the provision allows the small producer credit to be
claimed against the alternative minimum tax. Finally, the
provision provides that the small producer ethanol credit is
not treated as derived from a passive activity under the Code
rules restricting credits and deductions attributable to such
activities.
Effective date.--The provision is effective for taxable
years beginning after date of enactment.
Conference Agreement
The conference agreement generally follows the Senate
amendment except the small producer credit will continue to
be included in the income of taxpayers claiming it and no
exemption from the passive activity rules under the Code is
provided. With respect to the alternative minimum tax, the
conference agreement provides the same treatment given other
business related energy credits that are the subject of the
agreement as described below (see sec. 1347 of the Act).
Effective date.--The provision is effective for taxable
years beginning after December 31, 2003.
4. Transfer full amount of excise tax imposed on gasohol to
the highway trust fund (sec. 2006 of the Senate
amendment)
Present Law
An 18.4 cents-per-gallon excise tax is imposed on gasoline.
The tax is imposed when the fuel is removed from a refinery
unless the removal is to a bulk transportation facility
(e.g., removal by pipeline or barge to a registered
terminal). In the case of gasoline removed in bulk by
registered parties, tax is imposed when the gasoline is
removed from the terminal facility, typically by truck (i.e.,
``breaks bulk''). If gasoline is sold to an unregistered
party before it is removed from a terminal, tax is imposed on
that sale. When the gasoline subsequently breaks bulk, a
second tax is imposed. The payor of the second tax may file a
refund claim if it can prove payment of the first tax. The
party liable for payment of the gasoline excise tax is called
a ``position holder,'' defined as the owner of record inside
the refinery or terminal facility.
[[Page 29250]]
A 52-cents-per-gallon income tax credit is allowed for
ethanol used as a motor fuel (the ``alcohol fuels credit'').
The benefit of the alcohol fuels tax credit may be claimed as
a reduction in excise tax payments when the ethanol is
blended with gasoline (``gasohol''). The reduction is based
on the amount of ethanol contained in the gasohol. The excise
tax benefits apply to gasohol blends of 90 percent gasoline/
10 percent ethanol, 92.3 percent gasoline/7.7 percent
ethanol, or 94.3 percent gasoline/5.7 percent ethanol. The
income tax credit is based on the amount of alcohol contained
in the blended fuel.
In general, 18.3 cents per gallon of the gasoline excise
tax is deposited in the Highway Trust Fund and 0.1 cent per
gallon is deposited in the Leaking Underground Storage Tank
Trust Fund (the ``LUST'' rate). In the case of gasohol with
respect to which a reduced excise tax is paid, 2.5 cents per
gallon of the reduced tax is retained in the General Fund.
The balance of the reduced rate (less the LUST rate) is
deposited in the Highway Trust Fund.
House Bill
No provision.
Senate Amendment
The Senate amendment transfers the 2.5 cents per gallon of
excise tax on gasohol that currently is retained in the
General Fund to the Highway Trust Fund.
Effective date.--The Senate amendment would be effective
for taxes imposed after September 30, 2003.
Conference Agreement
The conference agreement does not include the Senate
amendment provision.
5. Incentives for biodiesel (sec. 2008 of the Senate
amendment and new sec. 40A of the Code)
Present Law
No income tax credit or excise tax rate reduction is
provided for biodiesel fuels under present law.
However, a 52-cents-per-gallon income tax credit (the
``alcohol fuels credit'') is allowed for ethanol and methanol
(derived from renewable sources) when the alcohol is used as
a highway motor fuel. The 52-cents-per-gallon rate is
scheduled to decline to 51 cents per gallon beginning in
calendar year 2005. The benefit of this income tax credit may
be claimed through reductions in excise taxes paid on alcohol
fuels. In the case of alcohol blended with other fuels (e.g.,
gasoline), the excise tax rate reductions are allowable only
for blends of 90 percent gasoline/10 percent alcohol, 92.3
percent gasoline/7.7 percent alcohol, or 94.3 percent
gasoline/5.7 percent alcohol. These present-law provisions
are scheduled to expire after 2007.
House Bill
No provision.
Senate Amendment
A new income tax credit is provided for biodiesel fuel
mixtures (``biodiesel V'' and ``biodiesel NV''). The
structure of the new credit is similar to structure of the
present-law alcohol fuels credit. Biodiesel V is derived from
virgin vegetable oils from corn, soybeans, sunflower seeds,
cottonseeds, canola, crambe, rapeseeds, safflowers,
flaxseeds, rice bran, or mustard seeds, for use in diesel
engines. Biodiesel NV is derived from nonvirgin vegetable
oils or animal fats for use in diesel engines. Both biodiesel
V and biodiesel NV must meet the requirements of the
Environmental Protection Agency under section 211 of the
Clean Air Act (42 USC 7545) and the American Society of
Testing and Materials D6751.
The per gallon biodiesel mixture credit rate for biodiesel
V equals one cent for each percentage point of biodiesel in
the fuels mixture, subject to a maximum credit of 20 cents
per blended gallon of fuel. The per gallon biodiesel mixture
credit rate for biodiesel NV equals .5 cent for each
percentage point of biodiesel in the fuels mixture, subject
to a maximum credit of 20 cents per blended gallon of fuel.
The amount of the biodiesel fuel mixture credit is includible
in income. The credit cannot be carried back to a taxable
year beginning before January 1, 2003.
Mixtures of biodiesel V are subject to a reduced rate of
excise tax, which is coordinated with the income tax credit.
An excise tax reduction is not available for biodiesel NV.
The provision further provides for transfers to the Highway
Trust Fund from the funds of the Commodity Credit Corporation
of amounts equivalent to the reduction in receipts to the
Trust Fund resulting from the excise tax rate reduction
allowed under the provision.
Effective date.--The income tax provision is effective for
taxable years beginning after December 31, 2002, for fuel
sold before January 1, 2006. The excise tax provision is
effective for fuel sold after December 31, 2002, and before
January 1, 2006.
Conference Agreement
The conference agreement generally follows S. 1548 as
ordered reported by the Committee on Finance on September 17,
2003, with respect to the income tax credit for biodiesel and
biodiesel mixtures. The conference agreement does not provide
for any reduced excise tax rate for mixtures of biodiesel,
including virgin biodiesel.
The provision provides a new income tax credit for
biodiesel and qualified biodiesel mixtures, the biodiesel
fuels credit. The biodiesel fuels credit is the sum of the
biodiesel mixture credit plus the biodiesel credit and is
treated as a general business credit. The amount of the
biodiesel fuels credit is includable in gross income. The
biodiesel fuels credit is coordinated to take into account
benefits from the excise tax credit for qualified biodiesel
mixtures. The credit is treated as part of the general
business credit and, under a special transition rule, may not
be carried back to a taxable year ending before or on the
effective date of the provision. The provision does not apply
to fuel used or sold after December 31, 2005.
Biodiesel may be taken into account for purposes of the
credit only if the taxpayer obtains a certification (in such
form and manner as prescribed by the Secretary) from the
producer of the biodiesel that identifies the product
produced and the percentage of biodiesel and agri-biodiesel
in the product. Biodiesel is monoalkyl esters of long chain
fatty acids derived from plant or animal matter that meet (1)
the registration requirements established by the
Environmental Protection Agency under section 211 of the
Clean Air Act, and (2) the requirements of the American
Society of Testing and Materials D6751. Agri-biodiesel is
biodiesel derived from virgin oils including esters derived
from corn, soybeans, sunflower seeds, cottonseeds, canola,
crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard
seeds, or animal fats.
Biodiesel mixture credit
The biodiesel mixture credit is 50 cents for each gallon of
biodiesel used by the taxpayer in the production of a
qualified biodiesel mixture. For agri-biodiesel, the credit
is $1.00 per gallon. A qualified biodiesel mixture is a
mixture of biodiesel and a taxable fuel that is (1) sold by
the taxpayer producing such mixture to any person for use as
a fuel, or (2) is used as a fuel by the taxpayer producing
such mixture. The sale or use must be in the trade or
business of the taxpayer and must be taken into account for
the taxable year in which such sale or use occurs. No credit
is allowed with respect to any casual off-farm production of
a qualified biodiesel mixture.
Biodiesel credit
The biodiesel credit is 50 cents for each gallon of 100
percent biodiesel that is not in a mixture and which during
the taxable year is (1) used by the taxpayer as a fuel in a
trade or business or (2) sold by the taxpayer at retail to a
person and placed in the fuel tank of such person's vehicle.
The first condition is not satisfied by a person who acquires
the biodiesel in a sale that satisfies the second condition.
For agri-biodiesel, the credit is $1.00 per gallon.
Later separation or failure to use as fuel
In a manner similar to the treatment of alcohol fuels, a
tax is imposed if a biodiesel fuels credit is claimed with
respect to biodiesel that is subsequently used for a purpose
for which the credit is not allowed or that is changed into a
substance that does not qualify for the credit. The first tax
applies if two conditions are satisfied. First, a biodiesel
mixture credit must have been allowed with respect to
biodiesel used in the production of a qualified mixture.
Second, any person either separates the biodiesel from the
mixture or, without separation, uses the mixture other than
as a fuel. The tax equals the applicable amount ($1.00 in the
case of agri-biodiesel or 50 cents in the case of other
biodiesel) multiplied by the number of gallons of biodiesel
in such mixture. The second tax applies if two conditions are
satisfied. First, a biodiesel credit must have been allowed
with respect to the retail sale of any biodiesel. Second, any
person mixes that biodiesel or uses it other than as a fuel.
The tax equals the applicable amount multiplied by the number
of gallons of biodiesel.
Effective date.--The biodiesel fuel income tax credit
provision is effective for fuel produced, and sold or used,
after December 31, 2003, in taxable years ending after such
date.
6. Alcohol and biodiesel excise tax credit and extension of
alcohol fuels income tax credit (secs. 40, 4101, 6427,
9503 and new secs. 4104, and 6426 of the Code)
Present Law
Alcohol fuels income tax credit
The alcohol fuels credit is the sum of three credits: the
alcohol mixture credit, the alcohol credit, and the small
ethanol producer credit. Generally, the alcohol fuels credit
expires after December 31, 2007.\5\
---------------------------------------------------------------------------
\5\The alcohol fuels credit is unavailable when, for any
period before January 1, 2008, the tax rates for gasoline and
diesel fuels drop to 4.3 cents per gallon.
---------------------------------------------------------------------------
A taxpayer (generally a petroleum refiner, distributor, or
marketer) who mixes ethanol with gasoline (or a special
fuel)\6\ is an ``ethanol blender.'' Ethanol blenders are
eligible for an income tax credit of 52 cents per gallon of
ethanol used in the production of a qualified mixture (the
``alcohol mixture credit''). A qualified mixture means a
mixture of alcohol and gasoline, (or of alcohol and a special
fuel) sold by the blender as
[[Page 29251]]
fuel, or used as fuel by the blender in producing the
mixture. The term alcohol includes methanol and ethanol but
does not include (1) alcohol produced from petroleum, natural
gas, or coal (including peat), or (2) alcohol with a proof of
less than 150. Businesses also may reduce their income taxes
by 52 cents for each gallon of ethanol (not mixed with
gasoline or other special fuel) that they sell at the retail
level as vehicle fuel or use themselves as a fuel in their
trade or business (``the alcohol credit''). The 52-cents-per-
gallon income tax credit rate is scheduled to decline to 51
cents per gallon during the period 2005 through 2007. For
blenders using an alcohol other than ethanol, the rate is 60
cents per gallon.\7\
---------------------------------------------------------------------------
\6\A special fuel includes any liquid (other than gasoline)
that is suitable for use in an internal combustion engine.
\7\In the case of any alcohol (other than ethanol) with a
proof that is at least 150 but less than 190, the credit is
45 cents per gallon (the ``low-proof blender amount''). For
ethanol with a proof that is at least 150 but less than 190,
the low-proof blender amount is 38.52 cents for sales or uses
during calendar year 2003 and 2004, and 37.78 cents for
calendar years 2005, 2006, and 2007.
---------------------------------------------------------------------------
A separate income tax credit is available for small ethanol
producers (the ``small ethanol producer credit''). A small
ethanol producer is defined as a person whose ethanol
production capacity does not exceed 30 million gallons per
year. The small ethanol producer credit is 10 cents per
gallon of ethanol produced during the taxable year for up to
a maximum of 15 million gallons.
The credits that comprise the alcohol fuels tax credit are
includible in income. The credit may not be used to offset
alternative minimum tax liability. The credit is treated as a
general business credit, subject to the ordering rules and
carryforward/carryback rules that apply to business credits
generally.
Excise tax reductions for alcohol mixture fuels
Generally, motor fuels tax rates are as follows:\8\
---------------------------------------------------------------------------
\8\These rates include an additional 0.1 cent-per-gallon
excise tax to fund the Leaking Underground Storage Tank Trust
Fund. See secs. 4041(d) and 4081(a)(2)(B). In addition, the
basic fuel tax rate will drop to 4.3 cents per gallon
beginning on October 1, 2005.
Gasoline.................................. 18.4 cents per gallon.
Diesel fuel and kerosene.................. 24.4 cents per gallon.
Special motor fuels....................... 18.4 cents per gallon
generally.
Alcohol-blended fuels are subject to a reduced rate of tax.
The benefits provided by the alcohol fuels income tax credit
and the excise tax reduction are integrated such that the
alcohol fuels credit is reduced to take into account the
benefit of any excise tax reduction.
Gasohol
Registered ethanol blenders may forgo the full income tax
credit and instead pay reduced rates of excise tax on
gasoline that they purchase for blending with ethanol. Most
of the benefit of the alcohol fuels credit is claimed through
the excise tax system.
The reduced excise tax rates apply to gasohol upon its
removal or entry. Gasohol is defined as a gasoline/ethanol
blend that contains 5.7 percent ethanol, 7.7 percent ethanol,
or 10 percent ethanol. For the calendar year 2003, the
following reduced rates apply to gasohol:\9\
---------------------------------------------------------------------------
\9\These rates include the additional 0.1 cent-per-gallon
excise tax to fund the Leaking Underground Storage Tank Trust
Fund. These special rates will terminate after September 30,
2007 (sec. 4081(c)(8)).
5.7 percent ethanol....................... 15.436 cents per gallon.
7.7 percent ethanol....................... 14.396 cents per gallon.
10.0 percent ethanol...................... 13.200 cents per gallon.
Reduced excise tax rates also apply when gasoline is being
purchased for the production of ``gasohol.'' When gasoline is
purchased for blending into gasohol, the rates above are
multiplied by a fraction (e.g., 10/9 for 10-percent gasohol)
so that the increased volume of motor fuel will be subject to
tax. The reduced tax rates apply if the person liable for the
tax is registered with the IRS and (1) produces gasohol with
gasoline within 24 hours of removing or entering the gasoline
or (2) gasoline is sold upon its removal or entry and such
person has an unexpired certificate from the buyer and has no
reason to believe the certificate is false.\10\
---------------------------------------------------------------------------
\10\Treas. Reg. sec. 48.4081-6(c). A certificate from the
buyer assures that the gasoline will be used to produce
gasohol within 24 hours after purchase. A copy of the
registrant's letter of registration cannot be used as a
gasohol blender's certificate.
---------------------------------------------------------------------------
Qualified methanol and ethanol fuels
Qualified methanol or ethanol fuel is any liquid that
contains at least 85 percent methanol or ethanol or other
alcohol produced from a substance other than petroleum or
natural gas. These fuels are taxed at reduced rates.\11\ The
rate of tax on qualified methanol is 12.35 cents per gallon.
The rate on qualified ethanol in 2003 and 2004 is 13.15
cents. From January 1, 2005, through September 30, 2007, the
rate of tax on qualified ethanol is 13.25 cents.\12\
---------------------------------------------------------------------------
\11\A 0.05-cent-per-gallon Leaking Underground Storage Tank
Trust Fund tax is imposed on such fuel. This provision
expires on October 1, 2007 (sec. 4041(b)(2)).
\12\These reduced rates terminate after September 30, 2007.
---------------------------------------------------------------------------
Alcohol produced from natural gas
A mixture of methanol, ethanol, or other alcohol produced
from natural gas that consists of at least 85 percent alcohol
is also taxed at reduced rates.\13\ For mixtures not
containing ethanol, the applicable rate of tax is 9.25 cents
per gallon before October 1, 2005. In all other cases, the
rate is 11.4 cents per gallon. After September 31, 2005, the
rate is reduced to 2.15 cents per gallon when the mixture
does not contain ethanol and 4.3 cents per gallon in all
other cases.
---------------------------------------------------------------------------
\13\These rates include the additional 0.1 cent-per-gallon
excise tax to fund the Leaking Underground Storage Tank Trust
Fund (sec. 4041(d)(1)).
---------------------------------------------------------------------------
Blends of alcohol and diesel fuel or special motor fuels
A reduced rate of tax applies to diesel fuel or kerosene
that is combined with alcohol as long as at least 10 percent
of the finished mixture is alcohol. If none of the alcohol in
the mixture is ethanol, the rate of tax is 18.4 cents per
gallon. For alcohol mixtures containing ethanol, the rate of
tax in 2003 and 2004 is 19.2 cents per gallon and for 2005
through September 30, 2007, the rate for ethanol mixtures is
19.3 cents per gallon. Fuel removed or entered for use in
producing a 10 percent diesel-alcohol fuel mixture (without
ethanol), is subject to a tax of 20.44 cents. The rate of tax
for fuel removed or entered to produce a 10 percent diesel-
ethanol fuel mixture is 21.333 cents per gallon for 2003 and
2004 and 21.444 cents per gallon for the period January 1,
2005, through September 30, 2007.
Special motor fuel (nongasoline) mixtures with alcohol also
are taxed at reduced rates.
Aviation fuel
Noncommercial aviation fuel is subject to a tax of 21.9
cents per gallon.\14\ Fuel mixtures containing at least 10
percent alcohol are taxed at lower rates.\15\ In the case of
10 percent ethanol mixtures, any sale or use during 2003 and
2004, the 21.9 cents is reduced by 13.2 cents (for a tax of
8.7 cents per gallon), for 2005, 2006, and 2007 the reduction
is 13.1 cents (for a tax of 8.8 cents per gallon) and is
reduced by 13.4 cents in the case of any sale during 2008 or
thereafter. For mixtures not containing ethanol, the 21.9
cents is reduced by 14 cents for a tax of 7.9 cents. These
reduced rates expire after September 30, 2007.\16\
---------------------------------------------------------------------------
\14\This rate includes the additional 0.1 cent-per-gallon tax
for the Leaking Underground Storage Tank Trust fund.
\15\Sec. 4041(k)(1) and 4091(c).
\16\Sec. 4091(c)(1).
---------------------------------------------------------------------------
When aviation fuel is purchased for blending with alcohol,
the rates above are multiplied by a fraction (10/9) so that
the increased volume of aviation fuel will be subject to tax.
Refunds and payments
If fully taxed gasoline (or other taxable fuel) is used to
produce a qualified alcohol mixture, the Code permits the
blender to file a claim for a quick excise tax refund. The
refund is equal to the difference between the gasoline (or
other taxable fuel) excise tax that was paid and the tax that
would have been paid by a registered blender on the alcohol
fuel mixture being produced. Generally, the IRS pays these
quick refunds within 20 days. Interest accrues if the refund
is paid more than 20 days after filing. A claim may be filed
by any person with respect to gasoline, diesel fuel, or
kerosene used to produce a qualified alcohol fuel mixture for
any period for which $200 or more is payable and which is not
less than one week.
Ethyl tertiary butyl ether (ETBE)
Ethyl tertiary butyl ether (``ETBE'') is an ether that is
manufactured using ethanol. Unlike ethanol, ETBE can be
blended with gasoline before the gasoline enters a pipeline
because ETBE does not result in contamination of fuel with
water while in transport. Treasury regulations provide that
gasohol blenders may claim the income tax credit and excise
tax rate reductions for ethanol used in the production of
ETBE. The regulations also provide a special election
allowing refiners to claim the benefit of the excise tax rate
reduction even though the fuel being removed from terminals
does not contain the requisite percentages of ethanol for
claiming the excise tax rate reduction.
Highway Trust Fund
With certain exceptions, the taxes imposed by section 4041
(relating to retail taxes on diesel fuels and special motor
fuels) and section 4081 (relating to tax on gasoline, diesel
fuel and kerosene) are credited to the Highway Trust Fund. In
the case of alcohol fuels, 2.5 cents per gallon of the tax
imposed is retained in the General Fund.\17\ In the case of a
taxable fuel taxed at a reduced rate upon removal or entry
prior to mixing with alcohol, 2.8 cents of the reduced rate
is retained in the General Fund.\18\
---------------------------------------------------------------------------
\17\Sec. 9503(b)(4)(E).
\18\Sec. 9503(b)(4)(F).
---------------------------------------------------------------------------
Biodiesel
If biodiesel is used in the production of blended taxable
fuel, the Code imposes tax on the removal or sale of the
blended taxable fuel.\19\ In addition, the Code imposes tax
on
[[Page 29252]]
any liquid other than gasoline sold for use or used as a fuel
in a diesel-powered highway vehicle or diesel-powered train
unless tax was previously imposed and not refunded or
credited.\20\ If biodiesel that was not previously taxed or
exempt is sold for use or used as a fuel in a diesel-powered
highway vehicle or a diesel-powered train, tax is
imposed.\21\ There are no reduced excise tax rates for
biodiesel.
---------------------------------------------------------------------------
\19\Sec. 4081(b); Rev. Rul. 2002-76, 2002-46 I.R.B. 841
(2002). ``Taxable fuels'' are gasoline, diesel and kerosene
(sec. 4083). Biodiesel, although suitable for use as a fuel
in a diesel-powered highway vehicle or diesel-powered train,
contains less than four percent normal paraffins and,
therefore, is not treated as diesel fuel under the applicable
Treasury regulations. Treas. Reg. secs. 48.4081-1(c)(2)(i)
and (ii), and 48.4081-1(b); Rev. Rul. 2002-76, 2002-46 I.R.B.
841 (2002). As a result, biodiesel alone is not a taxable
fuel for purposes of section 4081. As noted above, however,
tax is imposed upon the removal or entry of blended taxable
fuel made with biodiesel.
\20\Sec. 4041. The tax imposed under section 4041 also will
not apply if an exemption from tax applies.
\21\Rev. Rul. 2002-76, 2002-46 I.R.B. 841 (2002).
---------------------------------------------------------------------------
House bill
No provision.
Senate Amendment
No provision.
Conference Agreement
The conference agreement creates two new excise tax
credits, the alcohol fuel mixture excise tax credit and the
biodiesel fuel mixture excise tax credit. The sum of these
credits may be taken against the tax imposed on taxable fuels
(by section 4081). The amount of fuel taxes transferred to
the Highway Trust Fund is not reduced by any excise tax
credits claimed. The conference agreement also extends the
alcohol fuels income tax credit (sec. 40) through December
31, 2010.\22\
---------------------------------------------------------------------------
\22\The conference agreement contains several provisions
found in S. 1548 as ordered reported by the Committee on
Finance on September 17, 2003. While similar to S. 1548, the
conference agreement differs from S. 1548 in several
respects. Unlike S. 1548, the conference agreement leaves in
place the present-law reduced rate excise tax structure.
Also, the conference agreement does not eliminate the
requirement that 2.5 and 2.8 cents per gallon of the reduced
rate of excise tax be retained in the General Fund. In
addition, the conference agreement does not contain any
provisions regarding payments with respect to qualified
alcohol and biodiesel fuel mixtures nor with respect to
alcohol and biodiesel used as a fuel.
---------------------------------------------------------------------------
Alcohol fuel mixture excise tax credit
The conference agreement provides for an excise tax credit,
the alcohol fuel mixture credit. The alcohol fuel mixture
credit is 52 cents for each gallon of alcohol used by a
person in producing an alcohol fuel mixture for sale or use
in a trade or business of the taxpayer. The credit declines
to 51 cents per gallon after calendar year 2004. For mixtures
not containing ethanol (renewable source methanol), the
credit is 60 cents per gallon.
For purposes of the alcohol fuel mixture credit, an
``alcohol fuel mixture'' is a mixture of alcohol and a
taxable fuel that is (1) sold for use or used as a fuel by
the taxpayer producing the mixture or (2) removed from the
refinery by a person producing the mixture. Alcohol for this
purpose includes methanol, ethanol, and alcohol gallon
equivalents of ETBE or other ethers produced from such
alcohol. It does not include alcohol produced from petroleum,
natural gas, or coal (including peat), or alcohol with a
proof of less than 190 (determined without regard to any
added denaturants). Taxable fuel is gasoline, diesel, and
kerosene.\23\
---------------------------------------------------------------------------
\23\Sec. 4083(a)(1). As under present law, dyed fuels are
taxable fuels that have been exempted from tax.
---------------------------------------------------------------------------
The excise tax credit is coordinated with the alcohol fuels
income tax credit and is available through December 31, 2010.
In addition, any excise tax exemption for alcohol fuels
reduces the amount of the alcohol fuel excise tax credit.\24\
---------------------------------------------------------------------------
\24\Rules similar to those found in section 40(c) regarding
the income tax credit for alcohol fuels apply.
---------------------------------------------------------------------------
Biodiesel mixture excise tax credit
The provision provides an excise tax credit for biodiesel
mixtures.\25\ The credit is 50 cents for each gallon of
biodiesel used by the taxpayer in producing a qualified
biodiesel mixture for sale or use in a trade or business of
the taxpayer. A qualified biodiesel mixture is a mixture of
biodiesel and taxable fuel that is (1) sold for use or used
by the taxpayer producing such mixture as a fuel, or (2)
removed from the refinery by a person producing the mixture.
In the case of agri-biodiesel, the amount of the credit is
$1.00 per gallon. The credit applies only if the taxpayer
obtains a certification (in such form and manner as
prescribed by the Secretary) from the producer of the
biodiesel which identifies the product produced and the
percentage of biodiesel and agri-biodiesel in the product.
---------------------------------------------------------------------------
\25\The excise tax credit uses the same definitions as the
biodiesel fuels income tax credit.
---------------------------------------------------------------------------
The credit is not available for any sale, use or removal
for any period after December 31, 2005. This excise tax
credit is coordinated with the income tax credit for
biodiesel such that the credit for the same biodiesel cannot
be claimed for both income and excise tax purposes.
Later separation or mixture not used as fuel
Under certain circumstances, a tax is imposed if an alcohol
fuel mixture credit or biodiesel fuel mixture credit is
claimed with respect to alcohol or biodiesel used in the
production of any alcohol or biodiesel mixture, that is
subsequently used for a purpose for which the credit is not
allowed or changed into a substance that does not qualify for
the credit. The tax applies if two conditions are satisfied.
First, a credit must have been allowed with respect to
alcohol or biodiesel used in the production of a qualified
mixture. Second, any person either separates the alcohol or
biodiesel from the mixture or, without separation, uses the
mixture other than as a fuel. The tax equals the applicable
amount multiplied by the number of gallons of such alcohol or
biodiesel.
Registration requirements
Under the provision, the Secretary shall require
registration of every person that produces biodiesel or
alcohol.
Information reporting for persons claiming certain tax
benefits
The Secretary shall require any person claiming tax
benefits under certain sections relating to alcohol and
biodiesel fuels\26\ to file a quarterly return (in such
manner as the Secretary may prescribe) providing such
information relating to such benefits and the coordination of
such benefits as the Secretary may require to ensure the
proper administration and use of such benefits. With respect
to persons required to register with the Secretary, failure
to comply with these information-reporting requirements could
subject such a person to the denial, revocation or suspension
of registration.
---------------------------------------------------------------------------
\26\These sections are sections 34, 40, 40A, 4041(b)(2),
4041(k), 4081(c), 6426, and 6427(f).
---------------------------------------------------------------------------
Refund claims
If fully taxed gasoline (or other taxable fuel) is used to
produce a qualified alcohol mixture, the Code permits the
blender to file a claim for a quick excise tax refund. For
claims filed after December 31, 2004, if such claims are not
paid within 45 days, the claim is to be paid with interest.
In the case of an electronic claim, if such claim is not paid
within 20 days, the claim is to be paid with interest. If
claims are filed electronically, the claimant may make a
claim for less than $200. The Secretary is to prescribe the
electronic format for filing claims not later than December
31, 2004.
Highway Trust Fund
The provision provides that the amount of fuel taxes to be
appropriated to the Highway Trust Fund shall be determined
without reduction for amounts equivalent to the excise tax
credits allowed for alcohol fuel mixtures and biodiesel
mixtures.
Effective date.--In general, the provisions are effective
for fuel sold, used, or removed after December 31, 2003. The
provisions relating to refund claims are effective for claims
filed after December 31, 2004.
7. Nonapplication of export exemption to delivery of fuel to
motor vehicles removed from United States (sec. 2504 of
the Senate amendment and secs. 4221, 4041, and 4081 of
the Code)
Present Law
A manufacturer's excise tax is imposed upon
(1) The removal of any taxable fuel from a refinery or
terminal;
(2) The entry of any taxable fuel into the United States
for consumption, use or warehousing; or
(3) The sale of any taxable fuel to any person who is not
registered, unless there was a prior taxable removal or
entry.\27\
---------------------------------------------------------------------------
\27\Sec. 4081(a)(1).
---------------------------------------------------------------------------
The term ``taxable fuel'' means gasoline, diesel fuel and
kerosene.
Special provisions under the Code provide for a refund of
tax to any person who sells gasoline to another for
exportation.\28\ Section 6421(c) provides ``If gasoline is
sold to any person for any purpose described in paragraph
(2), (3), (4), or (5) of section 4221(a), the Secretary shall
pay (without interest) to such person an amount equal to the
product of the number of gallons so sold multiplied by the
rate at which tax was imposed on such gasoline by section
4081.'' Section 4221 provides, in pertinent part, ``Under
regulations prescribed by the Secretary, no tax shall be
imposed under this chapter * * * on the sale by the
manufacturer * * * of an article-- * * * for export, or for
resale by the purchaser to a second purchaser for export * *
* but only if such exportation or use is to occur before any
other use. * * *''
---------------------------------------------------------------------------
\28\Secs. 6421(c) and 4221(a)(2).
---------------------------------------------------------------------------
It is the IRS administrative position that the exemption
from manufacturers excise tax by reason of exportation does
not apply to the sale of motor fuel pumped into a fuel tank
of a vehicle that is to be driven, or shipped, directly out
of the United States.\29\
---------------------------------------------------------------------------
\29\Rev. Rul. 69-150.
---------------------------------------------------------------------------
A duty-free sales facility that meets certain conditions
may sell and deliver for export from the customs territory of
the United States duty-free merchandise. Duty-free
merchandise is merchandise sold by a duty-free sales facility
on which neither Federal duty nor Federal tax has been
assessed pending exportation from the customs territory of
the United States. The statutes covering duty-free facilities
do not contain any limitation on what goods may qualify for
duty-free treatment.
The United States Court of Federal Claims (``Claims
Court'') and a District Court in Michigan have taken
different positions on whether fuel sold from a duty-free
facility and placed into the tank of an automobile that is
then driven out of the country is exported fuel.\30\ Both
cases involved the same
[[Page 29253]]
duty-free facility, which is near the Canadian border and is
configured in such a way that anyone leaving the facility
must depart the United States and enter into Canada. The
District Court agreed with the IRS position that such fuel is
not exported, while the Claims Court reached the opposite
conclusion. The Claims Court concluded that the act of
exportation began with the consumer's purchase and that the
fuel necessarily enters into the stream of exportation at the
moment it is placed into the fuel supply tank and the
customer drives into Canada.
---------------------------------------------------------------------------
\30\See, Ammex Inc. v. United States, 52 Fed. Cl. 303 (2002)
(on cross-motions for summary judgment, the court found that
plaintiff established standing to proceed to trial pursuant
to sec. 6421(c) respecting its gasoline purchases only); and
Ammex Inc. v. United States, 2002 U.S. Dist. LEXIS 25771
(E.D. Mich. July 31, 2002) (granting defendant's motion for
summary judgment), reconsideration denied, Ammex, Inc. v.
United States, 2002 U.S. Dist. LEXIS 22893 (E.D. Mich. Oct.
22, 2002). Although the Claims Court ruled that Ammex had
standing to challenge the excise tax on gasoline, it
subsequently held that Ammex was not entitled to a payment
pursuant to sec. 6421(c) because it failed to prove at trial
that it did not pass the tax on to its customers. Ammex Inc.
v. United States, 2003 U.S. Claims LEXIS 63 (Fed. Cl. Mar.
26, 2003).
---------------------------------------------------------------------------
House Bill
No provision.
Senate Amendment
The Senate amendment amends section 555(b) of the Tariff
Act of 1930 (19 U.S.C. 1555(b)) to provide that gasoline or
diesel fuel sold at duty-free facilities are considered to be
entered for consumption into the United States and thus
ineligible for classification as duty-free merchandise.
Effective date.--The provision is effective on the date of
enactment.
Conference Agreement
The conference agreement reaffirms the long-standing IRS
position taken in Rev. Rul. 69-150 and restates present law
by amending the Code definition of export to exclude the
delivery of a taxable fuel into a fuel tank of a motor
vehicle that is shipped or driven out of the United States.
It also imposes a tax on the sale of taxable fuel at a duty-
free sales enterprise unless there was a prior taxable
removal, or entry of such fuel.
Effective date.--The provision applies to sales or
deliveries made after the date of enactment.
8. Modification of credit for electric vehicles (sec. 41010
of the House bill, sec. 2002 of Senate amendment, and
sec. 30 of the Code)
Present Law
A 10-percent tax credit is provided for the cost of a
qualified electric vehicle, up to a maximum credit of $4,000
(sec. 30). A qualified electric vehicle is a motor vehicle
that is powered primarily by an electric motor drawing
current from rechargeable batteries, fuel cells, or other
portable sources of electrical current, the original use of
which commences with the taxpayer, and that is acquired for
the use by the taxpayer and not for resale. The full amount
of the credit is available for purchases prior to 2002. The
credit phases down in the years 2004 through 2006, and is
unavailable for purchases after December 31, 2006. There is
no carry forward or carryback of the credit for electric
vehicles.
House Bill
The House bill repeals the phased-down reduction in the
credit for years 2004, 2005, and 2006. Thus, the House bill
provides that a taxpayer may claim the full 10-percent credit
(up to a $4,000) maximum for the purchase of qualified
electric vehicles before January 1, 2007.
Effective date.--The House bill provision is effective for
property placed in service after the date of enactment.
Senate Amendment
The Senate amendment modifies the present-law credit for
electric vehicles to provide that the credit for qualifying
vehicles generally ranges between $3,500 and $40,000
depending upon the weight of the vehicle and, for certain
vehicles, the driving range of the vehicle. In the case of
property purchased by tax-exempt persons, the seller may
claim the credit. The taxpayer would be ineligible for the
deduction allowable under present-law section 179A for a
qualified battery electric vehicle on which a credit is
allowable. The provision also extends the expiration date of
the credit from December 31, 2004, to December 31, 2006, and
would repeal the phase-out schedule of present law. The
taxpayer would be able to carry forward unused credits for 20
years or carry unused credits back for three years (but not
carried back to taxable years beginning before October 1,
2002).
Effective date.--The Senate amendment is effective for
property placed in service after September 30, 2002.
Conference Agreement
The conference agreement follows the House bill.
9. Alternative motor vehicle credit (sec. 41011 of the House
bill, secs. 2001 and 2010 of Senate amendment, and new
sec. 30B of the Code)
Present Law
Certain costs of qualified clean-fuel vehicle may be
expensed and deducted when such property is placed in service
(sec. 179A). Qualified clean-fuel vehicle property includes
motor vehicles that use certain clean-burning fuels (natural
gas, liquefied natural gas, liquefied petroleum gas,
hydrogen, electricity and any other fuel at least 85 percent
of which is methanol, ethanol, any other alcohol or
ether).\31\ The maximum amount of the deduction is $50,000
for a truck or van with a gross vehicle weight over 26,000
pounds or a bus with seating capacities of at least 20
adults; $5,000 in the case of a truck or van with a gross
vehicle weight between 10,000 and 26,000 pounds; and $2,000
in the case of any other motor vehicle. Qualified electric
vehicles do not qualify for the clean-fuel vehicle deduction.
The deduction phases down in the years 2004 through 2006, and
is unavailable for purchases after December 31, 2006.
---------------------------------------------------------------------------
\31\A hybrid-electric vehicle may qualify as a clean-fuel
vehicle under present law.
---------------------------------------------------------------------------
House Bill
Clean-fuel vehicles
The House bill repeals the phased-down reduction in the
allowable deduction for years 2004, 2005, and 2006. Thus, the
provision provides that a taxpayer could claim a full
deduction for allowable costs of clean-fuel vehicles
purchased before January 1, 2007.
Fuel cell vehicles
The House bill provides a credit for the purchase of a new
qualified fuel cell motor vehicle. A qualifying fuel cell
vehicle is a motor vehicle that is propelled by power derived
from one or more cells which convert chemical energy directly
into electricity by combining oxygen with hydrogen fuel which
is stored on board the vehicle and may or may not require
reformation prior to use. In general the House bill provides
that the buyer claims the credit, unless the buyer is a tax-
exempt entity in which case the seller or lessor of the
vehicle may claim the credit. The provision permits unused
credits to be carried forward for up to 20 years. Qualified
fuel cell motor vehicles are vehicles placed in service
before 2013.
The amount of credit for the purchase of a fuel cell
vehicle is determined by a base credit amount that depends
upon the weight class of the vehicle and, in the case of
automobiles or light trucks, an additional credit amount that
depends upon the rated fuel economy of the vehicle compared
to a base fuel economy. For these purposes the base fuel
economy is the 2000 model year city fuel economy rating for
vehicles of various weight classes (see below). Table 1,
below, shows the base credit amounts.
TABLE 1.--BASE CREDIT AMOUNT FOR FUEL CELL VEHICLES
------------------------------------------------------------------------
Vehicle gross weight rating in pounds Credit amount
------------------------------------------------------------------------
Vehicle = 8,500...................................... $4,000
8,500 < vehicle = 14,000............................. 10,000
14,000 < vehicle = 26,000............................ 20,000
26,000 < vehicle..................................... 40,000
------------------------------------------------------------------------
Table 2, below, shows the additional credits for
automobiles or light trucks.
TABLE 2.--CREDIT FOR QUALIFYING FUEL CELL VEHICLES
[Percent of base fuel economy]
------------------------------------------------------------------------
If fuel economy of
the fuel cell
vehicle is:
Credit ---------------------
But less
At least than
------------------------------------------------------------------------
$1,000............................................ 150 175
1,500............................................. 175 200
2,000............................................. 200 225
2,500............................................. 225 250
3,000............................................. 250 275
3,500............................................. 275 300
4,000............................................. 300
------------------------------------------------------------------------
Advanced lean-burn technology motor vehicle
The House bill provides a credit for the purchase of a new
advanced lean burn technology motor vehicle. A qualifying
advanced lean burn technology motor vehicle must meet the
Environmental Protection Agency's Tier II bin 8 emissions
standards. In general the provision provides that the buyer
claims the credit, unless the buyer is a tax-exempt entity in
which case the seller or lessor of the vehicle may claim the
credit. The House bill permits unused credits to be carried
forward for up to 20 years. Qualified advanced lean burn
technology motor vehicles are vehicles placed in service
before 2007. Table 3, below, shows the credits for the
purchase of an advanced lean burn technology motor vehicle.
TABLE 3.--CREDIT FOR QUALIFYING ADVANCED LEAN BURN TECHNOLOGY MOTOR
VEHICLES
[Percent of base fuel economy]
------------------------------------------------------------------------
If fuel economy of
the vehicle is:
Credit ---------------------
But less
At least than
------------------------------------------------------------------------
$500.............................................. 125 150
1,000............................................. 150 175
1,500............................................. 175 200
2,000............................................. 200 225
2,500............................................. 225 250
3,000............................................. 250
------------------------------------------------------------------------
In addition to the credit amount shown in Table 3, an
advanced lean burn technology automobile or light truck may
be eligible for
[[Page 29254]]
an additional credit of $250 if the vehicle achieves an
estimated lifetime fuel savings of at least 1,500 gallons of
fuel and a further additional credit of $500 if the vehicle
achieves an estimated lifetime fuel savings of at least 2,500
gallons compared to a like conventional vehicle (using the
2000 model year city fuel economy rating for the like vehicle
and assuming 120,000 miles driven).
Base fuel economy
The base fuel economy is the 2000 model year city fuel
economy for vehicles by inertia weight class by vehicle type.
The ``vehicle inertia weight class'' is that defined in
regulations prescribed by the Environmental Protection Agency
for purposes of Title II of the Clean Air Act.
Effective date.--The House bill provision is effective for
property placed in service after the date of enactment.
Senate Amendment
Section 179A
The Senate amendment extends the present-law deduction
through December 31, 2011, for hydrogen-related property and
through December 31, 2007, for all other vehicles. The Senate
amendment provides that the otherwise allowable deduction is
reduced by 25 percent in 2004 through 2009 for hydrogen-
related property and in 2004 and 2005 for all other vehicles.
The Senate amendment reduces the otherwise allowable
deduction by 50 percent and 75 percent in 2010 and 2011
respectively in the case of hydrogen-related property and in
2006 and 2007 for all other vehicles.
Fuel cell motor vehicles
The Senate amendment provides a credit for the purchase of
qualified fuel cell motor vehicles. The base credit for the
purchase of new qualified fuel cell motor vehicles ranges
between $4,000 and $40,000 depending upon the weight class of
the vehicle. For automobiles and light trucks, the otherwise
allowable credit amount ($4,000) is increased by an amount
from $1,000 to $4,000 if the vehicle meets certain fuel
economy increases compared to a stated standard. Credit may
not be claimed for qualified fuel cell motor vehicles
purchased after December 31, 2011.
Hybrid motor vehicles
The Senate amendment provides a credit for the purchase of
qualified hybrid motor vehicles. The base credit for the
purchase of a new qualified hybrid motor vehicle ranges from
$250 to $10,000 depending upon the weight of the vehicle and
the maximum power available from the vehicle's rechargeable
energy storage system. For automobiles and light trucks, the
otherwise allowable credit amount ($250 to $1,000) is
increased by an amount from $500 to $3,000 if the vehicle
meets certain fuel economy increases. For heavy duty hybrid
motor vehicles, the otherwise allowable credit ($1,000 to
$10,000) is increased depending upon the vehicle's weight and
provided the vehicle meets certain 2007 (and beyond)
emissions standards. The amount of credit is increased by
between $3,500 and $14,000 for vehicles placed in service in
2002; is increased by between $3,000 and $12,000 for vehicles
placed in service in 2003, is increased by between $2,500 and
$10,000 for vehicles placed in service in 2004, is increased
by between $2,000 and $8,000 for vehicles placed in service
in 2005, and is increased by between $1,500 and $6,000 for
vehicles placed in service in 2006. Credit may not be claimed
for qualified hybrid motor vehicles purchased after December
31, 2006.
Alternative fuel motor vehicles
The Senate amendment provides a credit for the purchase of
qualified alternative fuel motor vehicles. The base credit
for the purchase of a new alternative fuel motor vehicle
equals 40 percent of the incremental cost of such vehicle.
The otherwise allowable credit for 40 percent of the
incremental cost is increased by an additional 30 percent of
the incremental cost of the vehicle if the vehicle meets
certain emissions standards. For computation of the credit,
the incremental cost of the vehicle may not exceed between
$5,000 and $40,000 (resulting in a maximum total credit of
between $3,500 and $28,000) depending upon the weight of the
vehicle. For this purpose, incremental cost generally is
defined as the amount of the increase of the manufacturer's
suggested retail price of such a vehicle compared to the
manufacturer's suggested retail price of a comparable
gasoline or diesel model. Qualifying alternative fuel motor
vehicles are vehicles that operate only on qualifying
alternative fuels and are incapable of operating on gasoline
or diesel (except in the extent gasoline or diesel fuel is
part of a qualified mixed fuel). Qualifying alternative fuels
are compressed natural gas, liquefied natural gas, liquefied
petroleum gas, hydrogen, and any liquid mixture consisting of
at least 85 percent methanol.
Taxpayers purchasing certain mixed-fuel vehicles also may
claim the alternative fuel motor vehicle credit, at a reduced
rate. A mixed-fuel vehicle is a vehicle with gross weight of
seven tons or more and is certified by the manufacturer as
being able to operate on a combination of alternative fuel
and a petroleum-based fuel. A qualifying mixed-fuel vehicle
must use at least 75 percent alternative fuel (a ``75/25
mixed-fuel vehicle'') or 90 percent alternative fuel (a ``90/
10 mixed-fuel vehicle'') and be incapable of operating on a
mixture containing less than 75 percent alternative fuel in
the case of a 75/25 vehicle (less than 90 percent alternative
fuel in the case of a 90/10 vehicle). A taxpayer purchasing a
75/25 mixed-fuel vehicle may claim 70 percent of the
otherwise allowable credit. A taxpayer purchasing a 90/10
mixed-fuel vehicle may claim 90 percent of the otherwise
allowable credit.
Credit may not be claimed for qualified alternative fuel
motor vehicles purchased after December 31, 2006. The
taxpayer's basis in the property is reduced by the amount of
credit claimed.
Provisions of general application
The Senate amendment provides that unused credits may be
carried forward for 20 years and three years (but not into
taxable years beginning before October 1, 2002).
If a tax-exempt person purchases or leases a qualifying
vehicle, the seller or lessor may claim the credit.
Effective date
The Senate amendment is effective for property placed in
service after September 30, 2002.
conference agreement
Clean-fuel vehicles (section 179A)
The conference agreement follows the House bill with
respect to modifications to present-law section 179A.
Fuel cell vehicles
The conference agreement follows the House bill with
respect to providing a credit for the purchase of a new
qualified fuel cell motor vehicle, except the base-year for
fuel economy comparisons is modified as described below.
Hybrid motor vehicles
A qualifying hybrid vehicle is a motor vehicle that draws
propulsion energy from on-board sources of stored energy
which include both an internal combustion engine or heat
engine using combustible fuel and a rechargeable energy
storage system (e.g., batteries). A qualifying hybrid motor
vehicle must be placed in service before January 1, 2009.
In the case of an automobile or light truck (vehicles
weighing 8,500 pounds or less), the amount of credit for the
purchase of a hybrid vehicle is the sum of two components: a
fuel economy credit amount that varies with the rated fuel
economy of the vehicle compared to a 2002 model year standard
and a conservation credit based on the estimated lifetime
fuel savings of a qualifying vehicle compared to a comparable
2002 model year vehicle. A qualifying hybrid automobile or
light truck must have a maximum available power from the
rechargeable energy storage system of at least four percent.
In addition, the vehicle must meet or exceed certain EPA
emissions standards. For a vehicle with a gross vehicle
weight rating of 6,000 pounds or less the applicable
emissions standards are the Bin 5 Tier II emissions
standards. For a vehicle with a gross vehicle weight rating
greater than 6,000 pounds and less than or equal to 8,500
pounds, the applicable emissions standards are the Bin 8 Tier
II emissions standards.
Table 4, below, shows the fuel economy credit available to
a hybrid passenger automobile or light truck whose fuel
economy (on a gasoline gallon equivalent basis) exceeds that
of a base fuel economy.
TABLE 4.--FUEL ECONOMY CREDIT
[Percent of base fuel economy]
------------------------------------------------------------------------
If fuel economy of
the hybrid vehicle
is:
Credit ---------------------
But less
At least than
------------------------------------------------------------------------
$400.............................................. 125 150
800............................................... 150 175
1,200............................................. 175 200
1,600............................................. 200 225
2,000............................................. 225 250
2,400............................................. 250
------------------------------------------------------------------------
Table 5, below, shows the conservation credit.
TABLE 5.--CONSERVATION CREDIT
------------------------------------------------------------------------
Conservation
Estimated lifetime fuel savings amount
------------------------------------------------------------------------
At least 1,200 but less than 1,800................... $250
At least 1,800 but less than 2,400................... 500
At least 2,400 but less than 3,000................... 750
At least 3,000....................................... 1,000
------------------------------------------------------------------------
In the case of a qualifying hybrid motor vehicle weighing
more than 8,500 pounds, the amount of credit is determined by
the estimated increase in fuel economy and the incremental
cost of the hybrid vehicle compared to a comparable vehicle
powered solely by a gasoline or diesel internal combustion
engine and that is comparable in weight, size, and use of the
vehicle. For a vehicle that achieves a fuel economy increase
of at least 30 percent but less than 40 percent, the credit
is equal to 20 percent of the incremental cost of the hybrid
vehicle. For a vehicle that achieves a fuel economy increase
of at least 40 percent but less than 50 percent, the credit
is equal to 30 percent of the incremental cost of the hybrid
vehicle. For a vehicle that achieves a fuel economy increase
of 50 percent or more, the credit is equal to 40 percent of
the incremental cost of the hybrid vehicle.
The credit is subject to certain maximum applicable
incremental cost amounts. For a qualifying hybrid motor
vehicle weighing
[[Page 29255]]
more than 8,500 pounds but not more than 14,000 pounds, the
maximum allowable incremental cost amount is $7,500. For a
qualifying hybrid motor vehicle weighing more than 14,000
pounds but not more than 26,000 pounds, the maximum allowable
incremental cost amount is $15,000. For a qualifying hybrid
motor vehicle weighing more than 26,000 pounds, the maximum
allowable incremental cost amount is $30,000.
A qualifying hybrid motor vehicle weighing more than 8,500
pounds but not more than 14,000 pounds must have a maximum
available power from the rechargeable energy storage system
of at least 10 percent. A qualifying hybrid vehicle weighing
more than 14,000 pounds must have a maximum available power
from the rechargeable energy storage system of at least 15
percent.
The conferees recognize that these heavier hybrid vehicles
generally are trucks and vans. The fuel economy performance
of trucks and vans varies by the use of such equipment. For
example, used by a plumbing company generally carry more
weight than an otherwise identical van used by a florist.
Hence, the fuel economy performance of the plumbing vans
should be worse than that of the floral vans. In basing the
credit for these heavier hybrid vehicles on fuel economy, the
conferees do not intend that any fuel economy standards for
such heavier vehicles be promogulated. Rather, the conferees
intend that the Secretary provide guidance so that fuel
economy increases may be assessed on a case-by-case basis
accounting for the intended use of the vehicles.
Advanced lean-burn technology motor vehicles
The conference agreement a credit for the purchase of a new
advanced lean burn technology motor vehicle. The amount of
credit for the purchase of an advanced lean burn technology
motor vehicle is the sum of two components: a fuel economy
credit amount that varies with the rated fuel economy of the
vehicle compared to a 2002 model year standard as described
in Table 4, above and a conservation credit based on the
estimated lifetime fuel savings of a qualifying vehicle
compared to a comparable 2002 model year vehicle as described
in Table 5 above.
A qualifying advanced lean burn technology motor vehicle
that incorporates direct injection, achieves at least 125
percent of the 2002 model year city fuel economy, and 2004
and later model vehicles meets or exceeds certain
Environmental Protection Agency emissions standards. For a
vehicle with a gross vehicle weight rating of 6,000 pounds or
less the applicable emissions standards are the Bin 5 Tier II
emissions standards. For a vehicle with a gross vehicle
weight rating greater than 6,000 pounds and less than or
equal to 8,500 pounds, the applicable emissions standards are
the Bin 8 Tier II emissions standards. A qualifying advanced
lean burn technology motor vehicle must be placed in service
before January 1, 2009.
Limitation on number of qualified hybrid and advanced lean-
burn technology motor vehicles eligible for the credit
The conference agreement imposes a limitation on the number
of qualified hybrid motor vehicles and advanced lean-burn
technology motor vehicles sold by each manufacturer of such
vehicles that are eligible for the credit. Taxpayers may
claim the full amount of the allowable credit up to the end
of the first calendar quarter in which the manufacturer
records its sale of the 80,000th hybrid and advanced lean-
burn technology motor vehicle. Taxpayers may claim one half
of the otherwise allowable credit during the two calendar
quarters subsequent to the quarter after the manufacturer has
recorded its 80,000th such sale. In the third and fourth
calendar quarters subsequent to the quarter after the
manufacturer has recorded its 80,000th such sale, the
taxpayer may claim one quarter of the otherwise allowable
credit.
Thus, summing the sales of qualifying hybrid motor vehicles
of all weight classes and all sales of qualifying advanced
lean-burn technology motor vehicles, if a manufacturer
records the sale of its 80,000th in February of 2006,
taxpayers purchasing such vehicles from the manufacturer may
claim the full amount of the credit on their purchases of
qualifying vehicles through June 20, 2006. For the period
July 1, 2006, through December 31, 2006, taxpayers may claim
one half of the otherwise allowable credit on purchases of
qualifying vehicles of the manufacturer. For the period
January 1, 2007, through June 30, 2007, taxpayers may claim
one quarter of the otherwise allowable credit on the
purchases of qualifying vehicles of the manufacturer. After
June 30, 2007, no credit may be claimed for purchases of
hybrid motor vehicles or advanced lean-burn technology motor
vehicles sold by the manufacturer.
Alternative fuel motor vehicles
The credit for the purchase of a new alternative fuel
vehicle is 40 percent of the incremental cost of such
vehicle, plus an additional 30 percent if the vehicle meets
certain emissions standards, but not more than between $5,000
and $40,000 depending upon the weight of the vehicle. Table
6, below, shows the maximum permitted incremental cost for
the purpose of calculating the credit for alternative fuel
vehicles by vehicle weight class.
TABLE 6.--MAXIMUM ALLOWABLE INCREMENTAL COST FOR CALCULATION OF
ALTERNATIVE FUEL VEHICLE CREDIT
------------------------------------------------------------------------
Maximum allowable
Vehicle gross weight rating in pounds incremental cost
------------------------------------------------------------------------
Vehicle = 8,500...................................... $5,000
8,500 < vehicle = 14,000............................. 10,000
14,000 < vehicle = 26,000............................ 25,000
26,000 < vehicle..................................... 40,000
------------------------------------------------------------------------
Alternative fuels comprise compressed natural gas,
liquefied natural gas, liquefied petroleum gas, hydrogen, and
any liquid fuel that is at least 85 percent methanol.
Qualifying alternative fuel motor vehicles are vehicles that
operate only on qualifying alternative fuels and are
incapable of operating on gasoline or diesel (except in the
extent gasoline or diesel fuel is part of a qualified mixed
fuel, described below).
Certain mixed fuel vehicles, that is vehicles that use a
combination of an alternative fuel and a petroleum-based
fuel, are eligible for a reduced credit. If the vehicle
operates on a mixed fuel that is at least 75 percent
alternative fuel, the vehicle is eligible for 70 percent of
the otherwise allowable alternative fuel vehicle credit. If
the vehicle operates on a mixed fuel that is at least 90
percent alternative fuel, the vehicle is eligible for 90
percent of the otherwise allowable alternative fuel vehicle
credit.
A qualifying alternative fuel vehicle (or mixed fuel
vehicle) must be placed in service before January 1, 2007.
Base fuel economy
The base fuel economy is the 2002 model year city fuel
economy for vehicles by inertia weight class by vehicle type.
The ``vehicle inertia weight class'' is that defined in
regulations prescribed by the Environmental Protection Agency
for purposes of Title II of the Clean Air Act.
Alternative minimum tax and credit carry forward or carry
back
Taxpayers may claim credits with respect to purchases of
qualified vehicles against both their regular and alternative
minimum tax liabilities.
The conference agreement provides that credits allowable,
but unused in the current year, from the purchase of a
qualifying vehicle for business use may be carried back one
year and forward 20 years.\32\ Credit allowable with respect
to a vehicle purchased for personal use may only be claimed
in the year of purchase. The Secretary shall issue
regulations under which qualified vehicle sold at retail is
display a notice stating that the vehicle is a qualified
vehicle and that the buyer may not benefit from the credit
allowed if the buyer has insufficient tax liability to be
offset by the allowable credit.
---------------------------------------------------------------------------
\32\The credit, however, is not made part of the general
business credit.
---------------------------------------------------------------------------
Effective date.--The provision is effective for property
placed in service after the date of enactment.
10. Modifications of deduction for refueling property (secs.
2003 and 2010 of Senate amendment and sec. 179A of the
Code)
Present Law
Certain costs of qualified clean-fuel vehicle refueling
property may be expensed and deducted when such property is
placed in service (sec. 179A). Up to $100,000 of such
property at each location owned by the taxpayer may be
expensed with respect to that location. Natural gas,
liquefied natural gas, liquefied petroleum gas, hydrogen,
electricity and any other fuel at least 85 percent of which
is methanol, ethanol, or any other alcohol or ether comprise
clean-burning fuels.
The deduction is unavailable for property placed in service
after December 31, 2006.
House Bill
No provision.
Senate Amendment
The Senate amendment extends the present-law deduction to
property placed in service before January 1, 2008, and to
property placed in service before January 1, 2012, in the
case of hydrogen refueling property.
In addition, the Senate amendment provision permits
taxpayers to claim a 50-percent credit for the cost of
installing clean-fuel vehicle refueling property to be used
in a trade or business of the taxpayer or installed at the
principal residence of the taxpayer. In the case of retail
clean-fuel vehicle refueling property the allowable credit
may not exceed $30,000. In the case of residential clean-fuel
vehicle refueling property the allowable credit may not
exceed $1,000. The taxpayer's basis in the property is
reduced by the amount of the credit and the taxpayer may not
claim deductions under section 179A with respect to property
for which the credit is claimed.
In the case of refueling property installed on property
owned or used by a tax-exempt person, the taxpayer that
installs the property may claim the credit. To be eligible
for the credit, the property must be placed in service before
January 1, 2007 (before January 1, 2012 in the hydrogen
refueling property). The credit allowable in the taxable year
cannot exceed the difference between the taxpayer's regular
tax (reduced by certain other credits) and the taxpayer's
tentative minimum tax. The taxpayer may carry forward unused
credits for 20 years.
[[Page 29256]]
Effective date.--The Senate amendment is effective for
property placed in service after September 30, 2002.
conference agreement
The conference agreement extends and modifies present-law
section 179A with respect to refueling property. The
conference agreement increases the present-law limitation of
$100,000 of qualifying expenses per refueling location of the
taxpayer to $150,000 per location. In addition, the
conference agreement modifies the definition of refueling
property with respect to hydrogen produced from another
clean-burning fuel (i.e., natural gas, liquefied natural gas,
liquefied petroleum gas, any fuel at least 85 percent of
which is one or more of methanol, ethanol, or other alcohol
or ether) such that qualified refueling property included
property for the production of hydrogen fuel, in addition to
property for the storage and dispensing of hydrogen fuel, if
such property is located at the point where hydrogen fuel is
delivered into the fuel tank of a motor vehicle.
The conference agreement extends the placed in service date
for qualifying refueling property to property placed in
service prior to January 1, 2009 (January 1, 2012, in the
case of property related to hydrogen fuel).
Effective date.--The provision is effective for property
placed in service after the date of enactment.
11. Credit for retail sale of alternative motor vehicle fuels
(secs. 2004 and 2010 of Senate amendment)
present law
There is no retail credit for the sale of alternative motor
vehicle fuels. However, a 52-cents-per-gallon income tax
credit is allowed for alcohol fuels for 2003 and 2004 (51
cents for 2005-2007). The alcohol fuels credit may be claimed
as a reduction in excise tax payments. Such tax payments
generally are made before the retail level. In the case of
ethanol, the Code provides a separate 10-cents-per-gallon
credit for small producers.
house bill
No provision.
senate amendment
The Senate amendment permits taxpayers to claim a credit
equal to the gasoline gallon equivalent of 30 cents per
gallon of alternative fuel sold 2002 and in 2003, 40 cents
per gallon in 2004, and 50 cents per gallon thereafter.
Qualifying alternative fuels are compressed natural gas,
liquefied natural gas, liquefied petroleum gas, hydrogen, any
liquid mixture consisting of at least 85 percent methanol,
and any liquid mixture consisting of at least 85 percent
ethanol. The credit may be claimed for sales prior to January
1, 2007. Under the provision, the credit is part of the
general business credit.
Effective date.--The Senate amendment is effective for fuel
sold at retail after September 30, 2002.
conference agreement
The conference agreement does not include the Senate
amendment provision.
II. RELIABILITY
A. Natural Gas Gathering Lines Treated as Seven-Year Property
(sec. 42001 of the House bill, sec. 2302 of the Senate
amendment, and sec. 168 of the Code)
present law
The applicable recovery period for assets placed in service
under the Modified Accelerated Cost Recovery System is based
on the ``class life of the property.'' The class lives of
assets placed in service after 1986 are generally set forth
in Revenue Procedure 87-56.\33\ Revenue Procedure 87-56
includes two asset classes that could describe natural gas
gathering lines owned by nonproducers of natural gas. Asset
class 46.0, describing pipeline transportation, provides a
class life of 22 years and a recovery period of 15 years.
Asset class 13.2, describing assets used in the exploration
for and production of petroleum and natural gas deposits,
provides a class life of 14 years and a depreciation recovery
period of seven years. The uncertainty regarding the
appropriate recovery period of natural gas gathering lines
has resulted in litigation between taxpayers and the IRS. The
10th Circuit Court of Appeals and the 6th Circuit Court of
Appeals have held that natural gas gathering lines owned by
nonproducers falls within the scope of Asset class 13.2
(i.e., seven-year recovery period).\34\ The Tax Court has
held that natural gas gathering lines owned by nonproducers
falls within the scope of Asset class 46.0 (i.e., 15-year
recovery period).\35\
---------------------------------------------------------------------------
\33\1987-2 C.B. 674 (as clarified and modified by Rev. Proc.
88-22, 1988-1 C.B. 785).
\34\Duke Energy v. Commissioner, 172 F.3d 1255 (10th Cir.
1999), rev'g 109 T.C. 416 (1997). Saginaw Bay Pipeline Co. v.
United States, 2003 FED App. 0259P (6th Cir.) rev'g 124 F.
Supp. 2d 465 (E.D. Mich. 2001). See also True v. United
States, 97-2 U.S. Tax Cas. (CCH) par. 50,946 (D. Wyo. 1997).
\35\Clajon Gas Co., L.P. v. Commissioner, 119 T.C. 197
(2002).
---------------------------------------------------------------------------
house bill
The House bill establishes a statutory 7-year recovery
period and a class life of 10 years for natural gas gathering
lines. In addition, the House bill provides that there is no
adjustment to the allowable amount of depreciation for
purposes of computing a taxpayer's alternative minimum
taxable income with respect to such property. A natural gas
gathering line is defined to include any pipe, equipment, and
appurtenance that is (1) determined to be a gathering line by
the Federal Energy Regulatory Commission, or (2) used to
deliver natural gas from the wellhead or a common point to
the point at which such gas first reaches (a) a gas
processing plant, (b) an interconnection with an interstate
transmission line, (c) an interconnection with an intrastate
transmission line, or (d) a direct interconnection with a
local distribution company, a gas storage facility, or an
industrial consumer.
Effective date.--The provision is effective for property
placed in service after the date of enactment. No inference
is intended as to the proper treatment of natural gas
gathering lines placed in service before the date of
enactment.
senate amendment
The Senate amendment is the same as the House bill, except
that it does not include the provision providing that there
is no adjustment to the allowable amount of depreciation for
purposes of computing a taxpayer's alternative minimum
taxable income with respect to natural gas gathering lines.
Effective date.--The provision is effective for property
placed in service after the date of enactment. No inference
is intended as to the proper treatment of natural gas
gathering lines placed in service before the date of
enactment.
conference agreement
The conference agreement follows the House bill with the
following modification. The conference agreement provides a
class life of 14 years for natural gas gathering lines
(instead of 10 years).
B. Natural Gas Distribution Lines Treated as Fifteen-Year Property
(sec. 42002 of the House bill, sec. 2311 of the Senate
amendment, and sec. 168 of the Code)
present law
The applicable recovery period for assets placed in service
under the Modified Accelerated Cost Recovery System is based
on the ``class life of the property.'' The class lives of
assets placed in service after 1986 are generally set forth
in Revenue Procedure 87-56.\36\ Natural gas distribution
pipelines are assigned a 20-year recovery period and a class
life of 35 years.
---------------------------------------------------------------------------
\36\1987-2 C.B. 674 (as clarified and modified by Rev. Proc.
88-22, 1988-1 C.B. 785).
---------------------------------------------------------------------------
house bill
The House bill establishes a statutory 15-year recovery
period and a class life of 20 years for natural gas
distribution lines. In addition, the House bill provides that
there would be no adjustment to the allowable amount of
depreciation for purposes of computing a taxpayer's
alternative minimum taxable income with respect to such
property.
Effective date.--The provision is effective for property
placed in service after the date of enactment.
senate amendment
The Senate amendment establishes a statutory 15-year
recovery period and a class life of 20 years for natural gas
distribution lines.
Effective date.--The provision is effective for property
placed in service after the date of enactment.
conference agreement
The conference agreement follows the House bill with the
following modification. The conference agreement provides a
class life of 35 years for natural gas distribution lines
(instead of 20 years).
C. Transmission Property Treated as Fifteen-Year Property
(sec. 42003 of the House bill and sec. 168 of the Code)
present law
The applicable recovery period for assets placed in service
under the Modified Accelerated Cost Recovery System is based
on the ``class life of the property.'' The class lives of
assets placed in service after 1986 are generally set forth
in Revenue Procedure 87-56. Assets used in the transmission
and distribution of electricity for sale and related land
improvements are assigned a 20-year recovery period and a
class life of 30 years.
house bill
The House bill establishes a statutory 15-year recovery
period and a class life of 20 years for certain assets used
in the transmission of electricity for sale and related land
improvements. For purposes of the provision, section 1245
property used in the transmission of electricity for sale at
69 kilovolts and above will qualify for the new recovery
period. In addition, the House bill provides that there would
be no adjustment to the allowable amount of depreciation for
purposes of computing a taxpayer's alternative minimum
taxable income with respect to such property.
Effective date.--The provision is effective for property
placed in service after the date of enactment.
senate amendment
No provision.
conference agreement
The conference agreement follows the House bill with the
following modifications.
[[Page 29257]]
The conference agreement limits the provision to property the
original use\37\ of which commences after the date of
enactment and alters the class life of such property to 30
years (instead of 20 years).
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\37\The term ``original use'' means the first use to which
the property is put, whether or not such use corresponds to
the use of such property by the taxpayer. It is intended
that, when evaluating whether property qualifies as
``original use,'' the factors used to determine whether
property qualified as ``new section 38 property'' for
purposes of the investment tax credit would apply. See
Treasury Regulation 1.48-2. Thus, it is intended that
additional capital expenditures incurred to recondition or
rebuild acquired property (or owned property) would satisfy
the ``original use'' requirement. However, the cost of
reconditioned or rebuilt property acquired by the taxpayer
would not satisfy the ``original use'' requirement. For
example, if on August 11, 2004, a taxpayer buys from RCM for
$200,000 transmission lines that have been previously used by
RCM. Subsequent to the purchase, the taxpayer makes an
expenditure on the property of $50,000 of the type that must
be capitalized. Regardless of whether the $50,000 is added to
the basis of such property or is capitalized as a separate
asset, such amount would be treated as satisfying the
``original use'' requirement and would be eligible for the
reduced recovery period. No part of the $200,000 purchase
price qualifies for the reduced recovery period.
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D. Expensing of Capital Costs Incurred for Production in Complying With
Environmental Protection Agency Sulfur Regulations for Small Refiners
(sec. 42004 of the House bill, sec. 2303 of the Senate
amendment, and new sec. 179C of the Code)
present law
Taxpayers generally may recover the costs of investments in
refinery property through annual depreciation deductions.
house bill
The bill permits small business refiners to claim an
immediate deduction (i.e., expensing) for up to 75 percent of
the costs paid or incurred for the purpose of complying with
the Highway Diesel Fuel Sulfur Control Requirements of the
Environmental Protection Agency (``EPA'').
For these purposes a small business refiner is a taxpayer
who is within the business of refining petroleum products
employs not more than 1,500 employees directly in refining
and has less than 205,000 barrels per day (average) of total
refinery capacity. The deduction is reduced, pro rata, for
taxpayers with capacity in excess of 155,000 barrels per day.
Effective date.--The provision is effective for expenses
paid or incurred after March 31, 2003.
senate amendment
The Senate amendment generally is the same as the House
bill.
Effective date.--The provision is effective for expenses
paid or incurred after the date of enactment.
conference agreement
The conference agreement generally follows the House bill
and the Senate amendment except with respect to the effective
date. The conference agreement also clarifies that qualifying
expenditures are those expenditures paid or incurred with
respect to a facility beginning January 1, 2003, and ending
the earlier of the date that is one year after the date on
which the taxpayer must comply with applicable EPA regulation
or December 31, 2009. In addition, with respect to the
definition of a small business refiner, the conferees intend
that, in any case in which refinery through-put or retained
production of the refinery differs substantially from its
average daily output of refined product, capacity be measured
by reference to the average daily output of refined product.
Effective date.--The provision is effective for expenses
paid or incurred after December 31, 2002.
E. Credit for Small Refiners for Production of Diesel Fuel in
Compliance With Environmental Protection Agency Sulfur Regulations for
Small Refiners
(sec. 42005 of the House bill, sec. 2304 of Senate amendment,
and new sec. 45I of the Code)
present law
Present law does not provide a credit for the production of
low-sulfur diesel fuel.
house bill
The House bill provides that a small business refiner may
claim credit equal to five cents per gallon for each gallon
of low sulfur diesel fuel produced during the taxable year
that is in compliance with the Highway Diesel Fuel Sulfur
Control Requirements of the Environmental Protection Agency
(``EPA''). The total production credit claimed by the
taxpayer is limited to 25 percent of the capital costs
incurred to come into compliance with the EPA diesel fuel
requirements. The taxpayer's basis in such property is
reduced by the amount of production credit claimed.
For these purposes a small business refiner is a taxpayer
who is within the business of refining petroleum products
employs not more than 1,500 employees directly in refining
and has less than 205,000 barrels per day (average) of total
refinery capacity. The credit is reduced, pro rata, for
taxpayers with capacity in excess of 155,000 barrels per day.
Effective date.--The provision is effective for expenses
paid or incurred after March 31, 2003.
senate amendment
The Senate amendment generally is the same as the House. In
the case of a qualifying small business refiner that is owned
by a cooperative, the cooperative is allowed to elect to pass
any production credits to patrons of the organization.
Effective date.--The Senate amendment is effective on the
date of enactment.
conference agreement
The conference agreement follows the House bill and the
Senate amendment. The conference agreement provides that a
small business refiner may claim credit equal to five cents
per gallon for each gallon of low sulfur diesel fuel produced
during the taxable year that is in compliance with the
Highway Diesel Fuel Sulfur Control Requirements of the
Environmental Protection Agency (``EPA''). The total
production credit claimed by the taxpayer is limited to 25
percent of the capital costs incurred to come into compliance
with the EPA diesel fuel requirements. The taxpayer's basis
in such property is reduced by the amount of production
credit claimed. In the case of a qualifying small business
refiner that is owned by a cooperative, the cooperative is
allowed to elect to pass any production credits to patrons of
the organization.
In addition, with respect to the definition of a small
business refiner, the conferees intend that, in any case
where refinery through-put or retained production of the
refinery differs substantially from its average daily output
of refined product, capacity be measured by reference to the
average daily output of refined product.
The conference agreement also clarifies that qualifying
expenditures are those expenditures paid or incurred with
respect to a facility beginning January 1, 2003 and ending
the earlier of the date that is one year after the date on
which the taxpayer must comply with applicable EPA regulation
or December 31, 2009.
Effective date.--The provision is effective for expenses
paid or incurred after December 31, 2002.
F. Determination of Small Refiner Exception To Oil Depletion Deduction
(sec. 42006 of the House bill, sec. 2305 of the Senate
amendment, and sec. 613A of the Code)
Present Law
Present law classifies oil and gas producers as independent
producers or integrated companies. The Code provides numerous
special tax rules for operations by independent producers.
One such rule allows independent producers to claim
percentage depletion deductions rather than deducting the
costs of their asset, a producing well, based on actual
production from the well (i.e., cost depletion).
A producer is an independent producer only if its refining
and retail operations are relatively small. For example, an
independent producer may not have refining operations the
runs from which exceed 50,000 barrels on any day in the
taxable year during which independent producer status is
claimed.
House Bill
The provision increases the current 50,000-barrel-per-day
limitation to 75,000. In addition, the provision changes the
refinery limitation on claiming independent producer status
from a limit based on actual daily production to a limit
based on average daily production for the taxable year.
Accordingly, the average daily refinery run for the taxable
year may not exceed 75,000 barrels. For this purpose, the
taxpayer calculates average daily production by dividing
total production for the taxable year by the total number of
days in the taxable year.
Effective date.--The provision is effective for taxable
years beginning after December 31, 2003.
Senate Amendment
The Senate amendment is similar to the House Bill except
the average daily refinery run may not exceed 60,000 barrels.
Effective date.--The Senate amendment is effective for
taxable years beginning after December 31, 2002.
Conference Agreement
The conference agreement follows the House bill, except the
average daily refinery run for the taxable year may not
exceed 67,500 barrels.
Effective date.--The provision is effective for taxable
years ending after the date of enactment.
G. Sales or Dispositions to Implement Federal Energy Regulatory
Commission or State Electric Restructuring Policy
(sec. 42007 of the House bill, sec. 2404 of the Senate
amendment, and sec. 451 of the Code)
Present Law
Generally, a taxpayer recognizes gain to the extent the
sales price (and any other consideration received) exceeds
the seller's basis in the property. The recognized gain is
subject to current income tax unless the gain is deferred or
not recognized under a special tax provision.
House Bill
The House bill permits a taxpayer to elect to recognize
gain from a qualifying electric
[[Page 29258]]
transmission transaction ratably over an eight-year period
beginning in the year of sale if the amount realized from
such sale is used to purchase exempt utility property within
the applicable period\38\ (the ``reinvestment property''). If
the amount realized exceeds the amount used to purchase
reinvestment property, any realized gain shall be recognized
to the extent of such excess in the year of the qualifying
electric transmission transaction. Any remaining realized
gain is recognized ratably over the eight-year period.
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\38\The applicable period for a taxpayer to reinvest the
proceeds is four years after the close of the taxable year in
which the qualifying electric transmission transaction
occurs.
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A qualifying electric transmission transaction is the sale
or other disposition of property used by the taxpayer in the
trade or business of providing electric transmission
services, or an ownership interest in such an entity, to an
independent transmission company prior to January 1, 2007. In
general, an independent transmission company is defined as:
(1) an independent transmission provider\39\ approved by the
FERC; (2) a person (i) who the FERC determines under section
203 of the Federal Power Act (or by declaratory order) is not
a ``market participant'' and (ii) whose transmission
facilities are placed under the operational control of a
FERC-approved independent transmission provider before the
close of the period specified in such authorization, but not
later than January 1, 2007; or (3) in the case of facilities
subject to the jurisdiction of the Public Utility Commission
of Texas, (i) a person which is approved by that Commission
as consistent with Texas State law regarding an independent
transmission organization, or (ii) a political subdivision,
or affiliate thereof, whose transmission facilities are under
the operational control of an organization described in (i).
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\39\For example, a regional transmission organization, an
independent system operator, or an independent transmission
company.
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Exempt utility property is defined as: (1) property used in
the trade or business of generating, transmitting,
distributing, or selling electricity or producing,
transmitting, distributing, or selling natural gas, or (2)
stock in a controlled corporation whose principal trade or
business consists of the activities described in (1).
If a taxpayer is a member of an affiliated group of
corporations filing a consolidated return, the provision
permits the reinvestment property to be purchased by any
member of the affiliated group (in lieu of the taxpayer).
If a taxpayer elects the application of the House bill,
then the statutory period for the assessment of any
deficiency, for any taxable year in which any part of the
gain eligible for the provision is realized, attributable to
such gain shall not expire prior to the expiration of three
years from the date the Secretary of the Treasury is notified
by the taxpayer of the reinvestment property or an intention
not to reinvest.
An electing taxpayer is required to attach a statement to
that effect in the tax return for the taxable year in which
the transaction takes place in the manner as the Secretary
shall prescribe. The election shall be binding for that
taxable year and all subsequent taxable years.\40\ In
addition, an electing taxpayer is required to attach a
statement that identifies the reinvestment property in the
manner as the Secretary shall prescribe.
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\40\The provision also provides that the installment sale
rules shall not apply to any qualifying electric transmission
transaction for which a taxpayer elects the application of
this provision.
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Effective date.--The provision is effective for
transactions occurring after the date of enactment.
Senate Amendment
Similar to the House bill, but does not have a reinvestment
obligation.
Effective date.--The provision is effective for
transactions occurring after the date of enactment.
Conference Agreement
The conference agreement follows the House bill.
H. Modification to Special Rules for Nuclear Decommissioning Costs
(sec. 42008 of the House bill, sec. 2402 of the Senate
amendment, and sec. 468A of the Code)
Present Law
Overview
Special rules dealing with nuclear decommissioning reserve
funds were adopted by Congress in the Deficit Reduction Act
of 1984 (``1984 Act''), when tax issues regarding the time
value of money were addressed generally. Under general tax
accounting rules, a deduction for accrual basis taxpayers is
deferred until there is economic performance for the item for
which the deduction is claimed. However, the 1984 Act
contains an exception under which a taxpayer responsible for
nuclear powerplant decommissioning may elect to deduct
contributions made to a qualified nuclear decommissioning
fund for future decommissioning costs. Taxpayers who do not
elect this provision are subject to general tax accounting
rules.
Qualified nuclear decommissioning fund
A qualified nuclear decommissioning fund (a ``qualified
fund'') is a segregated fund established by a taxpayer that
is used exclusively for the payment of decommissioning costs,
taxes on fund income, management costs of the fund, and for
making investments. The income of the fund is taxed at a
reduced rate of 20 percent for taxable years beginning after
December 31, 1995.\41\
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\41\As originally enacted in 1984, a qualified fund paid tax
on its earnings at the top corporate rate and, as a result,
there was no present-value tax benefit of making deductible
contributions to a qualified fund. Also, as originally
enacted, the funds in the trust could be invested only in
certain low risk investments. Subsequent amendments to the
provision have reduced the rate of tax on a qualified fund to
20 percent and removed the restrictions on the types of
permitted investments that a qualified fund can make.
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Contributions to a qualified fund are deductible in the
year made to the extent that these amounts were collected as
part of the cost of service to ratepayers (the ``cost of
service requirement'').\42\ Funds withdrawn by the taxpayer
to pay for decommissioning costs are included in the
taxpayer's income, but the taxpayer also is entitled to a
deduction for decommissioning costs as economic performance
for such costs occurs.
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\42\Taxpayers are required to include in gross income
customer charges for decommissioning costs (sec. 88).
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Accumulations in a qualified fund are limited to the amount
required to fund decommissioning costs of a nuclear
powerplant for the period during which the qualified fund is
in existence (generally post-1984 decommissioning costs of a
nuclear powerplant). For this purpose, decommissioning costs
are considered to accrue ratably over a nuclear powerplant's
estimated useful life. In order to prevent accumulations of
funds over the remaining life of a nuclear powerplant in
excess of those required to pay future decommissioning costs
of such nuclear powerplant and to ensure that contributions
to a qualified fund are not deducted more rapidly than level
funding (taking into account an appropriate discount rate),
taxpayers must obtain a ruling from the IRS to establish the
maximum annual contribution that may be made to a qualified
fund (the ``ruling amount''). In certain instances (e.g.,
change in estimates), a taxpayer is required to obtain a new
ruling amount to reflect updated information.
A qualified fund may be transferred in connection with the
sale, exchange or other transfer of the nuclear powerplant to
which it relates. If the transferee is a regulated public
utility and meets certain other requirements, the transfer
will be treated as a nontaxable transaction. No gain or loss
will be recognized on the transfer of the qualified fund and
the transferee will take the transferor's basis in the
fund.\43\ The transferee is required to obtain a new ruling
amount from the IRS or accept a discretionary determination
by the IRS.\44\
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\43\Treas. reg. sec. 1.468A-6.
\44\Treas. reg. sec. 1.468A-6(f).
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Nonqualified nuclear decommissioning funds
Federal and State regulators may require utilities to set
aside funds for nuclear decommissioning costs in excess of
the amount allowed as a deductible contribution to a
qualified fund. In addition, taxpayers may have set aside
funds prior to the effective date of the qualified fund
rules.\45\ The treatment of amounts set aside for
decommissioning costs prior to 1984 varies. Some taxpayers
may have received no tax benefit while others may have
deducted such amounts or excluded such amounts from income.
Since 1984, taxpayers have been required to include in gross
income customer charges for decommissioning costs (sec. 88),
and a deduction has not been allowed for amounts set aside to
pay for decommissioning costs except through the use of a
qualified fund. Income earned in a nonqualified fund is
taxable to the fund's owner as it is earned.
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\45\These funds are generally referred to as ``nonqualified
funds.''
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House Bill
Repeal of cost of service requirement
The House bill repeals the cost of service requirement for
deductible contributions to a nuclear decommissioning fund.
Thus, all taxpayers, including unregulated taxpayers, are
allowed a deduction for amounts contributed to a qualified
fund.
Permit contributions to a qualified fund for pre-1984
decommissioning costs
The House bill also repeals the limitation that a qualified
fund only accumulate an amount sufficient to pay for a
nuclear powerplant's decommissioning costs incurred during
the period that the qualified fund is in existence (generally
post-1984 decommissioning costs). Thus, any taxpayer is
permitted to accumulate an amount sufficient to cover the
present value of 100 percent of a nuclear powerplant's
estimated decommissioning costs in a qualified fund. The
House bill does not change the requirement that contributions
to a qualified fund not be deducted more rapidly than level
funding.
Exception to ruling amount for certain decommissioning costs
The House bill permits a taxpayer to make contributions to
a qualified fund in excess of the ruling amount in one
circumstance. Specifically, a taxpayer is permitted to
contribute up to the present value of the
[[Page 29259]]
amount required to fund a nuclear powerplant's
decommissioning costs which under present law section
468A(d)(2)(A) is not permitted to be accumulated in a
qualified fund (generally pre-1984 decommissioning
costs).\46\ It is anticipated that an amount that is
permitted to be contributed under this special rule shall be
determined using the estimate of total decommissioning costs
used for purposes of determining the taxpayer's most recent
ruling amount. Any amount transferred to the qualified fund
under this special rule that has not previously been deducted
or excluded from gross income is allowed as a deduction over
the remaining useful life of the nuclear powerplant.\47\ If a
qualified fund that has received amounts under this rule is
transferred to another person, the transferor will be
permitted a deduction for any remaining deductible amounts at
the time of transfer.
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\46\The ability to transfer property into a qualified fund
under this special rule is available only to the extent the
taxpayer has not obtained a new ruling amount incorporating
the repeal of the limitation that a qualified fund only
accumulate an amount sufficient to pay for decommissioning
costs of a nuclear powerplant incurred during the period that
the fund is in existence (generally post 1984 decommissioning
costs).
\47\A taxpayer recognizes no gain or loss on the contribution
of property to a qualified fund under this special rule. The
qualified fund will take a transferred (carryover) basis in
such property. Correspondingly, a taxpayer's deduction (over
the estimated life of the nuclear powerplant) is to be based
on the adjusted tax basis of the property contributed rather
than the fair market value of such property.
---------------------------------------------------------------------------
Contributions to a qualified fund after useful life of
powerplant
The House bill also allows deductible contributions to a
qualified fund subsequent to the end of a nuclear
powerplant's estimated useful life. Such payments are
permitted to the extent they do not cause the assets of the
qualified fund to exceed the present value of the taxpayer's
allocable share (current or former) of the nuclear
decommissioning costs of such nuclear powerplant.
Clarify treatment of transfers of qualified funds
The House bill clarifies the Federal income tax treatment
of the transfer of a qualified fund. No gain or loss would be
recognized to the transferor or the transferee as a result of
the transfer of a qualified fund in connection with the
transfer of the power plant with respect to which such fund
was established.
Effective date.--The provision would be effective for
taxable years beginning after December 31, 2003.
Senate Amendment
Repeal of cost of service requirement
The Senate amendment repeals the cost of service
requirement for deductible contributions to a nuclear
decommissioning fund. Thus, all taxpayers, including
unregulated taxpayers, would be allowed a deduction for
amounts contributed to a qualified fund.
Clarify treatment of transfers of qualified funds and
deductibility of decommissioning costs
The Senate amendment clarifies the Federal income tax
treatment of the transfer of a qualified fund. No gain or
loss would be recognized to the transferor or the transferee
(or the qualified fund) as a result of the transfer of a
qualified fund in connection with the transfer of the power
plant with respect to which such fund was established. In
addition, the Senate amendment provides that all nuclear
decommissioning costs are deductible when paid or incurred.
Effective date.--The provision is effective for taxable
years beginning after December 31, 2002.
Conference Agreement
The conference agreement follows the House bill with the
following modifications. The conference agreement clarifies
that, for purposes of the exception to ruling amount for
certain costs (generally pre-1984 decommissioning costs),
only the present value of total nuclear decommissioning costs
with respect to a nuclear powerplant previously excluded
under section 468A(d)(2)(A) may be contributed to a qualified
fund. For example, if $100 is the present value of the total
decommissioning costs of a nuclear powerplant, and if under
present law the qualified fund is only permitted to
accumulate (and has in fact accumulated) $75 of
decommissioning costs over such plant's estimated useful life
(because the qualified fund was not in existence during 25
percent of the estimated useful life of the nuclear
powerplant), a taxpayer could contribute $25 to the qualified
fund under this component of the provision.
In addition, the Conference agreement provides that a
purchaser of an interest in a nuclear powerplant may elect to
treat certain amounts previously set aside for nuclear
decommissioning by the seller and transferred to the taxpayer
as part of the sale as if such amounts had been contributed
to a qualified fund immediately prior to the transfer.\48\
The adjusted basis of such assets shall be the same as in the
hands of the seller. The election is available only if the
seller of the interest in the nuclear powerplant is a tax-
exempt entity. In addition, the maximum amount eligible for
such treatment is limited to the product of the present value
of the estimated nuclear decommissioning costs and the
applicable percentage. The ``applicable percentage'' is a
fraction equal to the number of years the powerplant has been
in service over the estimated useful life of such powerplant.
A taxpayer shall make the election in the manner prescribed
by the Secretary by the due date (including extensions of
time) for its return of tax for the year in which the
acquisition occurs. In addition, a taxpayer must request a
new ruling amount from the IRS to be eligible for this
provision.
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\48\An election under this special rule shall be disregarded
in determining the Federal income tax treatment of the sale
to the seller.
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I. Treatment of Certain Income of Electric Cooperatives
(sec. 42009 of the House bill, secs. 2403 and 2406 of the
Senate amendment, and sec. 501 of the Code)
Present Law
In general
Under present law, an entity must be operated on a
cooperative basis in order to be treated as a cooperative for
Federal income tax purposes. Although not defined by statute
or regulation, the two principal criteria for determining
whether an entity is operating on a cooperative basis are:
(1) ownership of the cooperative by persons who patronize the
cooperative; and (2) return of earnings to patrons in
proportion to their patronage. The Internal Revenue Service
requires that cooperatives must operate under the following
principles: (1) subordination of capital in control over the
cooperative undertaking and in ownership of the financial
benefits from ownership; (2) democratic control by the
members of the cooperative; (3) vesting in and allocation
among the members of all excess of operating revenues over
the expenses incurred to generate revenues in proportion to
their participation in the cooperative (patronage); and (4)
operation at cost (not operating for profit or below
cost).\49\
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\49\Announcement 96-24, ``Proposed Examination Guidelines
Regarding Rural Electric Cooperatives,'' 1996-16 I.R.B. 35.
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In general, cooperative members are those who participate
in the management of the cooperative and who share in
patronage capital. As described below, income from the sale
of electric energy by an electric cooperative may be member
or non-member income to the cooperative, depending on the
membership status of the purchaser. A municipal corporation
may be a member of a cooperative.
For Federal income tax purposes, a cooperative generally
computes its income as if it were a taxable corporation, with
one exception--the cooperative may exclude from its taxable
income distributions of patronage dividends. In general,
patronage dividends are the profits of the cooperative that
are rebated to its patrons pursuant to a pre-existing
obligation of the cooperative to do so. The rebate must be
made in some equitable fashion on the basis of the quantity
or value of business done with the cooperative.
Except for tax-exempt farmers' cooperatives, cooperatives
that are subject to the cooperative tax rules of subchapter T
of the Code (sec. 1381, et seq.) are permitted a deduction
for patronage dividends from their taxable income only to the
extent of net income that is derived from transactions with
patrons who are members of the cooperative (sec. 1382). The
availability of such deductions from taxable income has the
effect of allowing the cooperative to be treated like a
conduit with respect to profits derived from transactions
with patrons who are members of the cooperative.
Cooperatives that qualify as tax-exempt farmers'
cooperatives are permitted to exclude patronage dividends
from their taxable income to the extent of all net income,
including net income that is derived from transactions with
patrons who are not members of the cooperative, provided the
value of transactions with patrons who are not members of the
cooperative does not exceed the value of transactions with
patrons who are members of the cooperative (sec. 521).
Taxation of electric cooperatives exempt from subchapter T
In general, the cooperative tax rules of subchapter T apply
to any corporation operating on a cooperative basis (except
mutual savings banks, insurance companies, other tax-exempt
organizations, and certain utilities), including tax-exempt
farmers' cooperatives (described in sec. 521(b)). However,
subchapter T does not apply to an organization that is
``engaged in furnishing electric energy, or providing
telephone service, to persons in rural areas'' (sec.
1381(a)(2)(C)). Instead, electric cooperatives are taxed
under rules that were generally applicable to cooperatives
prior to the enactment of subchapter T in 1962. Under these
rules, an electric cooperative can exclude patronage
dividends from taxable income to the extent of all net income
of the cooperative, including net income derived from
transactions with patrons who are not members of the
cooperative.\50\
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\50\See Rev. Rul. 83-135, 1983-2 C.B. 149.
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Tax exemption of rural electric cooperatives
Section 501(c)(12) provides an income tax exemption for
rural electric cooperatives if at least 85 percent of the
cooperative's income consists of amounts collected from
members for the sole purpose of meeting
[[Page 29260]]
losses and expenses of providing service to its members. The
IRS takes the position that rural electric cooperatives also
must comply with the fundamental cooperative principles
described above in order to qualify for tax exemption under
section 501(c)(12).\51\ The 85-percent test is determined
without taking into account any income from qualified pole
rentals and cancellation of indebtedness income from the
prepayment of a loan under sections 306A, 306B, or 311 of the
Rural Electrification Act of 1936 (as in effect on January 1,
1987). The exclusion for cancellation of indebtedness income
applies to such income arising in 1987, 1988, or 1989 on debt
that either originated with, or is guaranteed by, the Federal
Government.
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\51\Rev. Rul. 72-36, 1972-1 C.B. 151.
---------------------------------------------------------------------------
The receipt by a rural electric cooperative of
contributions in aid of construction and connection charges
is taken into account for purposes of applying the 85-percent
test.
Rural electric cooperatives generally are subject to the
tax on unrelated trade or business income under section 511.
Credit for producing fuel from a nonconventional source
Under present law, an income tax credit is allowed for
certain fuels produced from ``non-conventional sources'' and
sold to unrelated parties. The amount of the credit is equal
to $3 (generally adjusted for inflation) per barrel or BTU
oil barrel equivalent (sec. 29), subject to a phaseout.
Qualified fuels must be produced within the United States,
and include: oil produced from shale and tar sands; gas
produced from geopressured brine, Devonian shale, coal seams,
tight formations (``tight sands''), or biomass; and liquid,
gaseous, or solid synthetic fuels produced from coal
(including lignite).
The credit applies to fuels produced from wells drilled or
facilities placed in service after December 31, 1979, and
before January 1, 1993. An exception extends the January 1,
1993 expiration date for facilities producing gas from
biomass and synthetic fuel from coal if the facility
producing the fuel is placed in service before July 1, 1998,
pursuant to a binding contract entered into before January 1,
1997.
The credit applies to qualified fuels produced and sold
before January 1, 2003 (in the case of non-conventional
sources subject to the January 1, 1993 expiration date) or
January 1, 2008 (in the case of biomass gas and synthetic
fuel facilities eligible for the extension period).
House Bill
Treatment of income from open access transactions
The House bill provides that income received or accrued by
a rural electric cooperative (other than income received or
accrued directly or indirectly from a member of the
cooperative) from the provision or sale of electric energy
transmission services or ancillary services on a
nondiscriminatory open access basis under an independent
transmission provider agreement approved by FERC (including
an agreement providing for the transfer of control--but not
ownership--of transmission facilities)\52\ is excluded in
determining whether a rural electric cooperative satisfies
the 85-percent test for tax exemption under section
501(c)(12).
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\52\Under this provision, references to FERC are treated as
including references to the Public Utility Commission of
Texas.
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For purposes of the 85-percent test, the House bill also
provides that income received or accrued by a rural electric
cooperative is treated as an amount collected from members
for the sole purpose of meeting losses and expenses if the
income is received or accrued indirectly from a member of the
cooperative, provided that such income is derived from a
``like organization'' activity of the cooperative under
present law.\53\
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\53\See, e.g., Rev. Rul. 2002-54, 2002-37 I.R.B. 527; Rev.
Rul. 83-170, 1983-2 C.B. 97; Rev. Rul. 65-201, 1965-2 C.B.
170.
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Treatment of income from nuclear decommissioning transactions
The House bill provides that income received or accrued by
a rural electric cooperative from any ``nuclear
decommissioning transaction'' also is excluded in determining
whether a rural electric cooperative satisfies the 85-percent
test for tax exemption under section 501(c)(12). The term
``nuclear decommissioning transaction'' is defined as--
(1) Any transfer into a trust, fund, or instrument
established to pay any nuclear decommissioning costs if the
transfer is in connection with the transfer of the
cooperative's interest in a nuclear powerplant or nuclear
powerplant unit;
(2) Any distribution from a trust, fund, or instrument
established to pay any nuclear decommissioning costs; or
(3) Any earnings from a trust, fund, or instrument
established to pay any nuclear decommissioning costs.
Treatment of income from asset exchange or conversion
transactions
The House bill provides that gain realized by a tax-exempt
rural electric cooperative from a voluntary exchange or
involuntary conversion of certain property is excluded in
determining whether a rural electric cooperative satisfies
the 85-percent test for tax exemption under section
501(c)(12). This provision only applies to the extent that:
(1) the gain would qualify for deferred recognition under
section 1031 (relating to exchanges of property held for
productive use or investment) or section 1033 (relating to
involuntary conversions); and (2) the replacement property
that is acquired by the cooperative pursuant to section 1031
or section 1033 (as the case may be) constitutes property
that is used, or to be used, for the purpose of generating,
transmitting, distributing, or selling electricity or
methane-based natural gas.
Treatment of income from load loss transactions
Tax-exempt rural electric cooperatives.--The House bill
provides that income received or accrued by a tax-exempt
rural electric cooperative from a ``load loss transaction''
is treated under 501(c)(12) as income collected from members
for the sole purpose of meeting losses and expenses of
providing service to its members. Therefore, income from load
loss transactions is treated as member income in determining
whether a rural electric cooperative satisfies the 85-percent
test for tax exemption under section 501(c)(12). The House
bill also provides that income from load loss transactions
does not cause a tax-exempt electric cooperative to fail to
be treated for Federal income tax purposes as a mutual or
cooperative company under the fundamental cooperative
principles described above.
The term ``load loss transaction'' generally is defined as
any wholesale or retail sale of electric energy (other than
to a member of the cooperative) to the extent that the
aggregate amount of such sales during a seven-year period
beginning with the ``start-up year'' does not exceed the
reduction in the amount of sales of electric energy during
such period by the cooperative to members. The ``start-up
year'' is defined as the calendar year which includes the
date of enactment of this provision or, if later, at the
election of the cooperative: (1) the first year that the
cooperative offers nondiscriminatory open access; or (2) the
first year in which at least 10 percent of the cooperative's
sales of electric energy are to patrons who are not members
of the cooperative.
The House bill also excludes income received or accrued by
rural electric cooperatives from load loss transactions from
the tax on unrelated trade or business income.
Taxable electric cooperatives.--The House bill provides
that the receipt or accrual of income from load loss
transactions by taxable electric cooperatives is treated as
income from patrons who are members of the cooperative. Thus,
income from a load loss transaction is excludible from the
taxable income of a taxable electric cooperative if the
cooperative distributes such income pursuant to a pre-
existing contract to distribute the income to a patron who is
not a member of the cooperative. The House bill also provides
that income from load loss transactions does not cause a
taxable electric cooperative to fail to be treated for
Federal income tax purposes as a mutual or cooperative
company under the fundamental cooperative principles
described above.
Effective date
The House bill provision is effective for taxable years
beginning after the date of enactment.
Senate Amendment
Treatment of income from open access transactions
The Senate amendment provides that income received or
accrued by a rural electric cooperative from any ``open
access transaction'' (other than income received or accrued
directly or indirectly from a member of the cooperative) is
excluded in determining whether a rural electric cooperative
satisfies the 85-percent test for tax exemption under section
501(c)(12). The term ``open access transaction'' is defined
as--
(1) The provision or sale of electric energy transmission
services or ancillary services on a nondiscriminatory open
access basis: (i) pursuant to an open access transmission
tariff filed with and approved by the Federal Energy
Regulatory Commission (``FERC'') (including acceptable
reciprocity tariffs), but only if (in the case of a
voluntarily filed tariff) the cooperative files a report with
FERC within 90 days of enactment of this provision relating
to whether or not the cooperative will join a regional
transmission organization (``RTO''); or (ii) under an RTO
agreement approved by FERC (including an agreement providing
for the transfer of control--but not ownership--of
transmission facilities); \54\
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\54\Under this provision, references to FERC are treated as
including references to the Public Utility Commission of
Texas or the Rural Utilities Service.
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(2) The provision or sale of electric energy distribution
services or ancillary services on a nondiscriminatory open
access basis to end-users served by distribution facilities
owned by the cooperative or its members; or
(3) The delivery or sale of electric energy on a
nondiscriminatory open access basis, provided that such
electric energy is generated by a generation facility that is
directly connected to distribution facilities owned by the
cooperative (or its members) which owns the generation
facility.
For purposes of the 85-percent test, the Senate amendment
also provides that income received or accrued by a rural
electric
[[Page 29261]]
cooperative from any ``open access transaction'' is treated
as an amount collected from members for the sole purpose of
meeting losses and expenses if the income is received or
accrued indirectly from a member of the cooperative.
Treatment of income from nuclear decommissioning transactions
The Senate amendment provides that income received or
accrued by a rural electric cooperative from any ``nuclear
decommissioning transaction'' also is excluded in determining
whether a rural electric cooperative satisfies the 85-percent
test for tax exemption under section 501(c)(12). The term
``nuclear decommissioning transaction'' is defined as--
(1) Any transfer into a trust, fund, or instrument
established to pay any nuclear decommissioning costs if the
transfer is in connection with the transfer of the
cooperative's interest in a nuclear powerplant or nuclear
powerplant unit;
(2) Any distribution from a trust, fund, or instrument
established to pay any nuclear decommissioning costs; or
(3) Any earnings from a trust, fund, or instrument
established to pay any nuclear decommissioning costs.
Treatment of income from asset exchange or conversion
transactions
The Senate amendment provides that gain realized by a tax-
exempt rural electric cooperative from a voluntary exchange
or involuntary conversion of certain property is excluded in
determining whether a rural electric cooperative satisfies
the 85-percent test for tax exemption under section
501(c)(12). This provision only applies to the extent that:
(1) the gain would qualify for deferred recognition under
section 1031 (relating to exchanges of property held for
productive use or investment) or section 1033 (relating to
involuntary conversions); and (2) the replacement property
that is acquired by the cooperative pursuant to section 1031
or section 1033 (as the case may be) constitutes property
that is used, or to be used, for the purpose of generating,
transmitting, distributing, or selling electricity or natural
gas.
Treatment of cancellation of indebtedness income from
prepayment of certain loans
The Senate amendment provides that income from the
prepayment of any loan, debt, or obligation of a tax-exempt
rural electric cooperative that is originated, insured, or
guaranteed by the Federal Government under the Rural
Electrification Act of 1936 is excluded in determining
whether the cooperative satisfies the 85-percent test for tax
exemption under section 501(c)(12).
Treatment of income from load loss transactions
Tax-exempt rural electric cooperatives.--The Senate
amendment provides that income received or accrued by a tax-
exempt rural electric cooperative from a ``load loss
transaction'' is treated under 501(c)(12) as income collected
from members for the sole purpose of meeting losses and
expenses of providing service to its members. Therefore,
income from load loss transactions is treated as member
income in determining whether a rural electric cooperative
satisfies the 85-percent test for tax exemption under section
501(c)(12). The bill also provides that income from load loss
transactions does not cause a tax-exempt electric cooperative
to fail to be treated for Federal income tax purposes as a
mutual or cooperative company under the fundamental
cooperative principles described above.
The term ``load loss transaction'' is generally defined as
any wholesale or retail sale of electric energy (other than
to a member of the cooperative) to the extent that the
aggregate amount of such sales during a seven-year period
beginning with the ``start-up year'' does not exceed the
reduction in the amount of sales of electric energy during
such period by the cooperative to members. The ``start-up
year'' is defined as the calendar year which includes the
date of enactment of this provision or, if later, at the
election of the cooperative: (1) the first year that the
cooperative offers nondiscriminatory open access; or (2) the
first year in which at least 10 percent of the cooperative's
sales of electric energy are to patrons who are not members
of the cooperative.
The Senate amendment also excludes income received or
accrued by rural electric cooperatives from load loss
transactions from the tax on unrelated trade or business
income.
Taxable electric cooperatives.--The Senate amendment
provides that the receipt or accrual of income from load loss
transactions by taxable electric cooperatives is treated as
income from patrons who are members of the cooperative. Thus,
income from a load loss transaction is excludible from the
taxable income of a taxable electric cooperative if the
cooperative distributes such income pursuant to a pre-
existing contract to distribute the income to a patron who is
not a member of the cooperative. The Senate amendment also
provides that income from load loss transactions does not
cause a taxable electric cooperative to fail to be treated
for Federal income tax purposes as a mutual or cooperative
company under the fundamental cooperative principles
described above.
Treatment of income from certain contributions in aid of
construction
The Senate amendment excludes from the 85-percent test for
tax exemption under section 501(c)(12) the receipt by an
electric cooperative, before January 1, 2007, of any
contribution in aid of construction or connection charge (in
the form of money, property, capital or otherwise) that is
intended to facilitate the provision of electric service by
the cooperative for the purpose of the development, by the
recipient of such electric service, of qualified fuels from
nonconventional sources (within the meaning of section 29, as
modified elsewhere in the Senate amendment).
Effective date
The Senate amendment provision is effective for taxable
years beginning after the date of enactment.
Conference Agreement
The conference agreement follows the House bill with the
following modifications:
Treatment of income from open access transactions
Income received or accrued by a rural electric cooperative
(other than income received or accrued directly or indirectly
from a member of the cooperative) from the provision or sale
of electric energy transmission services or ancillary
services on a nondiscriminatory open access basis under an
open access transmission tariff approved or accepted by FERC
or under an independent transmission provider agreement
approved or accepted by FERC (including an agreement
providing for the transfer of control--but not ownership--of
transmission facilities)\55\ is excluded in determining
whether a rural electric cooperative satisfies the 85-percent
test for tax exemption under section 501(c)(12).
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\55\Under this provision, references to FERC are treated as
including references to the Public Utility Commission of
Texas.
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In addition, income is excluded for purposes of the 85-
percent test if it is received or accrued by a rural electric
cooperative (other than income received or accrued directly
or indirectly from a member of the cooperative) from the
provision or sale of electric energy distribution services or
ancillary services, provided such services are provided on a
nondiscriminatory open access basis to distribute electric
energy not owned by the cooperative: (1) to end-users who are
served by distribution facilities not owned by the
cooperative or any of its members; or (2) generated by a
generation facility that is not owned or leased by the
cooperative or any of its members and that is directly
connected to distribution facilities owned by the cooperative
or any of its members.
Treatment of income from load loss transactions
For purposes of this provision, the ``start-up year'' is
defined as the first year that the cooperative offers
nondiscriminatory open access or, if later and at the
election of the cooperative, the calendar year that includes
the date of enactment of this provision.
Effective date
The conference agreement provision is effective for taxable
years beginning after the date of enactment.
1. Exempt certain prepayments for natural gas from tax-exempt
bond arbitrage rules (sec. 3213 of the House bill and
secs. 141 and 148 of the Code)
Present Law
Interest on bonds issued by States or local governments to
finance activities carried out or paid for by those entities
generally is exempt from income tax (sec. 103). Restrictions
are imposed on the ability of States or local governments to
invest the proceeds of these bonds for profit (the
``arbitrage restrictions''). One such restriction limits the
use of bond proceeds to acquire ``investment-type property.''
The term investment-type property includes the acquisition of
property in a transaction involving a prepayment. A
prepayment can produce prohibited arbitrage profits when the
discount received for prepaying the costs exceeds the yield
on the tax-exempt bonds. In general, prohibited prepayments
include all prepayments that are not customary in an industry
by both beneficiaries of tax-exempt bonds and other persons
using taxable financing for the same transaction.
On August 4, 2003, the Treasury Department issued final
regulations deeming to be customary, and not in violation of
the arbitrage rules, certain prepayments for natural gas and
electricity. Generally, a qualified prepayment under the
regulations requires that 90 percent of the natural gas or
electricity purchased with the prepayment be used for a
qualifying use. Generally, natural gas is used for a
qualifying use if it is to be (1) furnished to retail gas
customers of the issuing municipal utility who are located in
the natural gas service area of the issuing municipal
utility, however, gas used to produce electricity for sale is
not included under this provision (2) used by the issuing
municipal utility to produce electricity that will be
furnished to retail electric service area customers of the
issuing utility, (3) used by the issuing municipal utility to
produce electricity that will be sold to a utility owned by a
governmental person and furnished to the service area retail
electric customers of the purchaser, (4) sold to a utility
that is owned by a governmental person if the requirements of
(1), (2) or (3) are satisfied
[[Page 29262]]
by the purchasing utility (treating the purchaser as the
issuing utility) or (5) used to fuel the pipeline
transportation of the prepaid gas supply. Electricity is used
for a qualifying use if it is to be (1) furnished to retail
service area electric customers of the issuing municipal
utility or (2) sold to a municipal utility and furnished to
retail electric customers of the purchaser who are located in
the electricity service area of the purchaser. Both
governmental gas and electric utilities may take advantage of
this regulatory provision.
House Bill
In general
The provision creates a safe harbor exception to the
general rule that tax-exempt bond-financed prepayments
violate the arbitrage restrictions. The term ``investment
type property'' does not include a prepayment under a
qualified natural gas supply contract. The provision also
provides that such prepayments are not treated as private
loans for purposes of the private business tests.
Under the provision, a prepayment financed with tax-exempt
bond proceeds for the purpose of obtaining a supply of
natural gas for service area customers of a governmental
utility is not treated as the acquisition of investment-type
property. A contract is a qualified natural gas contract if
the volume of natural gas secured for any year covered by the
prepayment does not exceed the sum of (1) the average annual
natural gas purchased (other than for resale) by customers of
the utility within the service area of the utility (``retail
natural gas consumption'') during the testing period, and (2)
the amount of natural gas that is needed to fuel
transportation of the natural gas to the governmental
utility. The testing period is the 5-calendar-year period
immediately preceding the calendar year in which the bonds
are issued. A retail customer is one who does not purchase
natural gas for resale. Natural gas used to generate
electricity by a governmental utility is counted as retail
natural gas consumption if the electricity was sold to retail
customers within the service area of the governmental
electric utility.
Adjustments
The volume of gas permitted by the general rule is reduced
by natural gas otherwise available on the date of issuance.
Specifically, the amount of natural gas permitted to be
acquired under a qualified natural gas contract for any
period is to be reduced by natural gas held by the utility on
the date of issuance of the bonds and natural gas that the
utility has a right to acquire for the prepayment period
(determined as of the date of issuance).\56\ For purposes of
the preceding sentence, applicable share means, with respect
to any period, the natural gas allocable to such period if
the gas were allocated ratably over the period to which the
prepayment relates.
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\56\For example, natural gas otherwise available on the date
the bonds are issued includes supply covered by other
prepayment contracts for the period, and supply held in
storage or subject to an option to purchase by such utility
that is available for retail natural gas consumption during
the period covered by the prepayment. It does not include
supply that could be purchased on the open market during the
prepayment period.
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For purposes of the safe harbor, if after the close of the
testing period and before the issue date of the bonds (1) the
government utility enters into a contract to supply natural
gas (other than for resale) for a commercial person for use
at a property within the service area of such utility and (2)
the gas consumption for such property was not included in the
testing period or the ratable amount of natural gas to be
supplied under the contract is significantly greater than the
ratable amount of gas supplied to such property during the
testing period, then the amount of gas permitted to be
purchased may be increased to accommodate the contract.
The average annual retail natural gas consumption
calculation for purposes of the safe harbor, however, is not
to exceed the annual amount of natural gas reasonably
expected to be purchased (other than for resale) by persons
who are located within the service area of such utility and
who, as of the date of issuance of the issue, are customers
of such utility.
Intentional acts
The safe harbor does not apply if the utility engages in
intentional acts to render (1) the volume of natural gas
covered by the prepayment to be in excess of that needed for
retail natural gas consumption, and (2) the amount of natural
gas that is needed to fuel transportation of the natural gas
to the governmental utility.
Definition of service area
Service area is defined as (1) any area throughout which
the governmental utility provided (at all times during the
testing period) in the case of a natural gas utility, natural
gas transmission or distribution service, or in the case of
an electric utility, electric distribution service; (2)
limited areas contiguous to such areas, and (3) any area
recognized as the service area of the governmental utility
under State or Federal law. Contiguous areas are limited to
any area within a county contiguous to the area described in
(1) in which retail customers of the utility are located if
such area is not also served by another utility providing the
same service.
Ruling request for higher prepayment amounts
Upon written request, the Secretary may allow an issuer to
prepay for an amount of gas greater than that allowed by the
safe harbor based on objective evidence of growth in gas
consumption or population that demonstrates that the amount
permitted by the exception is insufficient.
Effective date
The provision is effective for obligations issued after the
date of enactment.
Senate Amendment
No provision.
Conference Agreement
The conference agreement follows the House bill with a
conforming amendment. The conferees understand that a
qualified natural gas supply contract as defined in the
conference agreement is not nongovernmental output property
for purposes of subsection (d) of section 141. The conference
agreement provides that subsection (d) of section 141 does
not apply to prepayment contracts for natural gas or
electricity that either under the Treasury regulations or
statutory safe harbor are not investment-type property for
purposes of the arbitrage rules under section 148. No
inference is intended regarding the application of subsection
141(d) to prepayment contracts not covered by the statutory
safe harbor or Treasury regulations.
The conferees also recognize that a number of States have
created under State law joint action agencies that can serve
as purchasing agents for their member municipal gas
utilities. The conferees intend the provision to allow
municipal utilities in a State to participate in such buying
arrangements as established under State law, subject to the
same limitations that would apply if an individual utility
were to purchase gas directly. When acting on behalf of its
municipal gas utility members, the total amount of gas that
can be purchased by a joint action agency under the bill's
exception to the arbitrage rules is the aggregate of what
each such member could purchase for itself on a direct basis.
Thus, with respect to qualified natural gas supply contracts
entered into by joint action agencies for or on behalf of one
or more member municipal utilities, the requirements of the
safe harbor are tested at the individual municipal utility
level based on the amount of gas that would be allocated to
such member during any year covered by the contract.
III. PRODUCTION
A. Oil and Gas Provisions
1. Oil and gas production from marginal wells (sec. 43001 of
the House bill, sec. 2301 of the Senate amendment, and
secs. 38, 39, and new sec. 45J of the Code)
present law
There is no credit for the production of oil and gas from
marginal wells. The costs of such production may be recovered
under the Code's depreciation and depletion rules and in
other cases as a deduction for ordinary and necessary
business expenses.
house bill
The provision would create a new, $3 per barrel credit for
the production of crude oil and a $0.50 credit per 1,000
cubic feet of qualified natural gas production. The maximum
amount of production on which credit could be claimed is
1,095 barrels or barrel equivalents. In both cases, the
credit is available only for production from a ``qualified
marginal well.'' The credit is not available to production
occurring if the reference price of oil exceeds $18 ($2.00
for natural gas). The credit is reduced proportionately as
for reference prices between $15 and $18 ($1.67 and $2.00 for
natural gas). Reference prices are determined on a one-year
look-back basis.
A qualified marginal well is defined as: (1) a well
production from which was marginal production for purposes of
the Code percentage depletion rules; or (2) a well that
during the taxable year had average daily production of not
more than 25 barrel equivalents and produced water at a rate
of not less than 95 percent of total well effluent.
The credit is treated as part of the general business
credit; however, unused credits can be carried back for up to
10 years rather than the generally applicable carryback
period of one year.
Effective date.--The provision is effective for production
in taxable years beginning after December 31, 2003.
senate amendment
The Senate amendment is similar to the House bill, except
it does not permit the credit to be carried back beyond the
date of enactment and a marginal well that is not in
compliance with the applicable State and Federal pollution
prevention, control, and permit requirements for any period
of time is not considered a qualified marginal well during
such period.
Effective date.--The Senate amendment is effective for
production in taxable years beginning after date of
enactment.
conference agreement
The conference agreement generally follows the House bill
except unused credits may be carried back only five years.
[[Page 29263]]
Effective date.--The provision is effective for production
in taxable years beginning after December 31, 2003.
2. Temporary suspension of limitation based on 65 percent of
taxable income and extension of suspension of taxable
income limit with respect to marginal production (sec.
43002 of the House bill, sec. 2306 of the Senate
amendment, and sec. 613A of the Code)
present law
In general
Depletion, like depreciation, is a form of capital cost
recovery. In both cases, the taxpayer is allowed a deduction
in recognition of the fact that an asset--in the case of
depletion for oil or gas interests, the mineral reserve
itself--is being expended in order to produce income. Certain
costs incurred prior to drilling an oil or gas property are
recovered through the depletion deduction. These include
costs of acquiring the lease or other interest in the
property and geological and geophysical costs (in advance of
actual drilling).
Depletion is available to any person having an economic
interest in a producing property. An economic interest is
possessed in every case in which the taxpayer has acquired by
investment any interest in minerals in place, and secures, by
any form of legal relationship, income derived from the
extraction of the mineral, to which it must look for a return
of its capital.\57\ Thus, for example, both working interests
and royalty interests in an oil- or gas-producing property
constitute economic interests, thereby qualifying the
interest holders for depletion deductions with respect to the
property. A taxpayer who has no capital investment in the
mineral deposit does not possess an economic interest merely
because it possesses an economic or pecuniary advantage
derived from production through a contractual relation.
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\57\Treas. Reg. sec. 1.611-1(b)(1).
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Cost depletion
Two methods of depletion are currently allowable under the
Internal Revenue Code (the ``Code''): (1) the cost depletion
method, and (2) the percentage depletion method (secs. 611-
613). Under the cost depletion method, the taxpayer deducts
that portion of the adjusted basis of the depletable property
which is equal to the ratio of units sold from that property
during the taxable year to the number of units remaining as
of the end of taxable year plus the number of units sold
during the taxable year. Thus, the amount recovered under
cost depletion may never exceed the taxpayer's basis in the
property.
Percentage depletion and related income limitations
The Code generally limits the percentage depletion method
for oil and gas properties to independent producers and
royalty owners.\58\ Generally, under the percentage depletion
method 15 percent of the taxpayer's gross income from an oil-
or gas-producing property is allowed as a deduction in each
taxable year (sec. 613A(c)). The amount deducted generally
may not exceed 100 percent of the net income from that
property in any year (the ``net-income limitation'') (sec.
613(a)). The 100-percent net-income limitation for marginal
wells is suspended for taxable years beginning after December
31, 1997, and before January 1, 2004.
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\58\Sec. 613A.
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Additionally, the percentage depletion deduction for all
oil and gas properties may not exceed 65 percent of the
taxpayer's overall taxable income (determined before such
deduction and adjusted for certain loss carrybacks and
certain trust distributions) (sec. 613A(d)(1)).\59\ Because
percentage depletion, unlike cost depletion, is computed
without regard to the taxpayer's basis in the depletable
property, cumulative depletion deductions may be greater than
the amount expended by the taxpayer to acquire or develop the
property.
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\59\Amounts disallowed as a result of this rule may be
carried forward and deducted in subsequent taxable years,
subject to the 65-percent taxable income limitation for those
years.
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A taxpayer is required to determine the depletion deduction
for each oil or gas property under both the percentage
depletion method (if the taxpayer is entitled to use this
method) and the cost depletion method. If the cost depletion
deduction is larger, the taxpayer must utilize that method
for the taxable year in question (sec. 613(a)).
Limitation of oil and gas percentage depletion to independent
producers and royalty owners
Generally, only independent producers and royalty owners
(as contrasted to integrated oil companies) are allowed to
claim percentage depletion. Percentage depletion for eligible
taxpayers is allowed only with respect to up to 1,000 barrels
of average daily production of domestic crude oil or an
equivalent amount of domestic natural gas (sec. 613A(c)). For
producers of both oil and natural gas, this limitation
applies on a combined basis.
In addition to the independent producer and royalty owner
exception, certain sales of natural gas under a fixed
contract in effect on February 1, 1975, and certain natural
gas from geopressured brine,\60\ are eligible for percentage
depletion, at rates of 22 percent and 10 percent,
respectively. These exceptions apply without regard to the
1,000-barrel-per-day limitation and regardless of whether the
producer is an independent producer or an integrated oil
company.
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\60\This exception is limited to wells, the drilling of which
began between September 30, 1978, and January 1, 1984.
---------------------------------------------------------------------------
house bill
The limit on percentage depletion deductions to no more
than 65 percent of the taxpayer's overall taxable income is
suspended for taxable years beginning after December 31,
2003, and before January 1, 2007. The suspension of the 100-
percent net-income limitation for marginal wells is extended
an additional three years, through taxable years beginning
before January 1, 2007.
Effective date.--The provision is effective for taxable
years beginning after December 31, 2003.
senate amendment
The Senate amendment suspends only the 100-percent net-
income limitation for marginal wells through 2007.
Effective date.--The Senate amendment is effective on the
date of enactment.
conference agreement
The conference agreement suspends the 100-percent net-
income limitation for marginal wells through December 31,
2004. The conference agreement suspends the 65-percent-
taxable-income limitation through December 31, 2004.
Effective date.--The provision is effective for taxable
years beginning after December 31, 2003.
3. Delay rental payments (sec. 43003 of the House bill, sec.
2308 of the Senate amendment, and sec. 167 of the Code)
present law
Present law generally requires costs associated with
inventory and property held for resale to be capitalized
rather than currently deducted as they are incurred. (sec.
263). Oil and gas producers typically contract for mineral
production in exchange for royalty payments. If mineral
production is delayed, these contracts provide for ``delay
rental payments'' as a condition of their extension. The
Treasury Department has taken the position that the uniform
capitalization rules of section 263A require delay rental
payments to be capitalized.
house bill
The House bill permits delay rental payments incurred in
connection with the development of oil or gas to be amortized
over two years. In the case of abandoned property, remaining
basis may no longer be recovered in the year of abandonment
of a property as all basis is recovered over the two-year
amortization period.
Effective date.--The House bill provision is effective for
amounts paid or incurred in taxable years after 2003. No
inference is intended from the prospective effective date of
this proposal as to the proper treatment of pre-effective
date delay rental payments.
senate amendment
The Senate amendment provides delay rental payments
incurred in connection with the development of oil or gas
must be amortized over two years.
Effective date.--The Senate amendment is effective for
amounts paid or incurred in taxable years after 2002.
conference agreement
The conferees adopt a provision nearly identical to a
provision in S. 1149 as reported by the Senate Committee on
Finance on May 23, 2003. The provision allows delay rental
payments incurred in connection with the development of oil
or gas within the United States to be amortized over two
years. In the case of abandoned property, remaining basis may
no longer be recovered in the year of abandonment of a
property as all basis is recovered over the two-year
amortization period.
Effective date.--The provision applies to delay rental
payments paid or incurred in taxable years beginning after
the date of enactment. No inference is intended from the
prospective effective date of this proposal as to the proper
treatment of pre-effective date delay rental payments.
4. Geological and geophysical costs (sec. 43004 of the House
bill, sec. 2307 of the Senate amendment, and sec. 167 of
the Code)
present law
Under present law, geological and geophysical expenditures
are costs incurred by a taxpayer for the purpose of obtaining
and accumulating data that will serve as the basis for the
acquisition and retention of mineral properties by taxpayers
exploring for minerals. Capital expenditures are not
currently deductible as ordinary and necessary expenses, but
are allocated to the cost of the property (sec. 263). Courts
have held that geological and geophysical costs are capital,
and therefore, are allocable to the cost of property acquired
or retained. The costs attributable to such exploration are
allocable to the cost of the property acquired or retained.
[[Page 29264]]
house bill
The House Bill permits geological and geophysical costs
incurred in connection with domestic oil and gas exploration
to be amortized over two years. In the case of abandoned
property, remaining basis may no longer be recovered in the
year of abandonment of a property as all basis is recovered
over the two-year amortization period.
Effective date.--The House bill provision is effective for
costs paid or incurred in taxable years after 2003. No
inference is intended from the prospective effective date of
this proposal as to the proper treatment of pre-effective
date geological and geophysical costs.
senate amendment
The Senate Amendment provides that geological and
geophysical costs incurred in connection with domestic oil
and gas exploration to be amortized over two years.
Effective date.--The Senate amendment is effective for
costs paid or incurred in taxable years after 2002.
conference agreement
The conferees adopt a provision nearly identical to a
provision in S. 1149 as reported by the Senate Committee on
Finance on May 23, 2003. The provision allows geological and
geophysical amounts incurred in connection with oil and gas
exploration in the United States to be amortized over two
years. In the case of abandoned property, remaining basis may
no longer be recovered in the year of abandonment of a
property as all basis is recovered over the two-year
amortization period.
Effective date.--The provision is effective for geological
and geophysical amounts paid or incurred in taxable years
beginning after the date of enactment. No inference is
intended from the prospective effective date of this proposal
as to the proper treatment of pre-effective date geological
and geophysical costs.
B. Extension and Modification of Credit for Producing Fuel From a Non-
Conventional Source
(sec. 43005 of the House bill, secs. 2309 and 2310 of the
Senate amendment, and sec. 29 and new section 45K of the
Code)
present law
An income tax credit is allowed for certain fuels produced
from ``non-conventional sources'' and sold to unrelated
parties. The amount of the credit is equal to $3 (generally
adjusted for inflation\61\) per barrel or Btu oil barrel
equivalent (sec. 29). Qualified fuels must be produced within
the United States, and include: oil produced from shale and
tar sands; gas produced from geopressured brine, Devonian
shale, coal seams, tight formations (``tight sands''), or
biomass; and liquid, gaseous, or solid synthetic fuels
produced from coal (including lignite).
---------------------------------------------------------------------------
\61\The value of the section 29 credit for production in 2002
was $6.35 per barrel of oil equivalent.
---------------------------------------------------------------------------
The credit applies to fuels produced from wells drilled or
facilities placed in service after December 31, 1979, and
before January 1, 1993. An exception extends the January 1,
1993 expiration date for facilities producing gas from
biomass and synthetic fuel from coal if the facility
producing the fuel is placed in service before July 1, 1998,
pursuant to a binding contract entered into before January 1,
1997.
The credit applies to qualified fuels produced and sold
before January 1, 2003 (in the case of non-conventional
sources subject to the January 1, 1993, expiration date) or
January 1, 2008 (in the case of biomass gas and synthetic
fuel facilities eligible for the extension period).
house bill
The House bill permits taxpayers to claim the section 29
credit for production of certain non-conventional fuels
produced at wells placed in service after April 1, 2003, and
before January 1, 2007. Qualifying fuels are oil from shale
or tar sands, and gas from geopressured brine, Devonian
shale, coal seams or a tight formation. The value of the
credit is re-based to $3.00 for production in 2003 and is
indexed for inflation commencing with the credit amount for
2004. The credit may be claimed for production from the well
for each of the first four years of production, but not for
any production occurring after December 31, 2009.
The House bill further permits production from certain
existing wells (any well drilled after December 31, 1979, and
before January 1, 1993) to claim a credit equal to the newly
re-indexed value of $3.00 for production in 2003 after date
of enactment through 2006.
The House bill also permits landfill gas sold to a third
party from facilities placed in service after June 30, 1998
and before January 1, 2007, to be eligible for five years of
credit from the later of the date of enactment or the date
the facility is placed in service. The amount of credit is
$3.00 per barrel equivalent in 2003 and is indexed for
inflation commencing with the credit amount for 2004. In the
case of a landfill subject to the Environmental Protection
Agency's 1996 New Source Performance Standards/Emissions
Guidelines, the amount of credit is $2.00 per barrel
equivalent in 2003 and is indexed for inflation commencing
with the credit amount for 2004.
Under the House bill, the taxpayer may not claim any credit
for production in excess of a daily average\62\ of 200,000
cubic feet of gas, or barrel of oil equivalent (200,000 cubic
feet is equivalent to 35.4 barrels of oil) from a qualifying
well or facility with respect to any production for which
credit can be claimed under the modifications described.
---------------------------------------------------------------------------
\62\The daily average is computed as total production divided
by the total number of days the well or facility was in
production during the year.
---------------------------------------------------------------------------
The House bill adds section 29 to the list of general
business credits.
Effective date.--The House bill provision is effective for
fuel sold from qualifying wells and facilities after April 1,
2003.
senate amendment
Extension for certain non-conventional fuels
The Senate amendment provides a credit for production of
certain non-conventional fuels produced at wells placed in
service after the date of enactment and before January 1,
2005. The amount of the credit is $3.00 (unindexed) per
barrel or Btu oil equivalent for three years of production
commencing when the facility is placed in service. Qualified
fuels are oil from, shale or tar sands, and gas from
geopressured brine, Devonian shale, coal seams or a tight
formation.
Extension and modification for ``refined coal''
The Senate amendment provides a credit for production of
``refined coal'' from facilities placed in service after the
date of enactment and before January 1, 2007. The amount of
the credit is $3.00 (unindexed) per barrel or Btu oil
equivalent for five years of production commencing when the
facility is placed in service. Refined coal is a qualifying
liquid, gaseous, or solid synthetic fuel produced from coal
(including lignite) or high-carbon fly ash, including such
fuel used as a feedstock. A qualifying fuel is a fuel that
when burned emits 20 percent less SO2 and nitrogen
oxides than the burning of feedstock coal or comparable coal
predominantly available in the marketplace as of January 1,
2002, and if the fuel sells at prices at least 50 percent
greater than the prices of the feedstock coal or comparable
coal. However, no fuel produced at a qualifying advanced
clean coal facility (as defined elsewhere) is a qualifying
fuel.
Expansion for ``viscous oil''
The Senate amendment provides a credit for production of
certain viscous oil produced at wells placed in service after
the date of enactment and before January 1, 2005. ``Viscous
oil'' is domestic crude oil produced from any property if the
crude oil has a weighted average gravity of 22 degrees API or
less (corrected to 60 degrees Fahrenheit). The amount of the
credit for viscous oil is $3.00 per barrel or Btu equivalent
for three years of production commencing when the well is
placed in service. The Senate amendment provides that
qualifying sales to related parties for consumption not in
the immediate vicinity of the wellhead qualify for the
credit.
Credit for coalmine methane gas
The Senate amendment provides a credit for production of
``coalmine methane gas'' captured or extracted from a coal
mine and sold after the date of enactment and before January
1, 2005. The amount of the credit is $3.00 (unindexed) per
barrel or Btu oil equivalent (51.7 cents per million Btu of
heat value in the gas) for gas utilized captured or sold, for
three years of production commencing when the facility is
placed in service. Qualifying coalmine methane gas is any
methane gas liberated during qualified mining operations or
extracted up to five years in advance of qualified mining
operations as part of a specific plan to mine a coal deposit.
In the case of coalmine methane gas that is captured in
advance of qualified coal mining operations, the credit is
allowed only after the date the coal extraction occurs in the
immediate area where the coalmine methane gas was removed.
Expansion for agricultural and animal wastes
The Senate amendment adds facilities producing liquid,
gaseous, or solid fuels, from agricultural and animal waste
placed in service after the date of enactment and before
January 1, 2005, to the list of qualified facilities for
purposes of the non-conventional fuel credit. The amount of
the credit is equal to $3.00 (unindexed) per barrel or Btu
oil barrel equivalent, for three years of production
commencing on the date the facility is placed in service.
Agricultural and animal waste includes by-products,
packaging, and any materials associated with processing,
feeding, selling, transporting, or disposal of agricultural
or animal products or wastes, including wood shavings, straw,
rice hulls, and other bedding for the disposition of manure.
Extension of credit for certain existing facilities
The Senate amendment extends the present-law credit through
December 31, 2004, for production from existing facilities
producing coke, coke gas, or natural gas and by-products
produced by coal gasification from lignite.
Study of coal bed methane gas
The Senate amendment provides that the Secretary of the
Treasury undertake a study of the effect of section 29 on the
production of coal bed methane. The Secretary's study is to
be made in conjunction with the study
[[Page 29265]]
to be undertaken by the Secretary of the Interior on the
effects of coal bed methane production on surface and water
resources, as provided in section 607 of the Energy Policy
Act of 2002 (should that study be required by law). The study
should estimate the total amount of credit claimed annually
and in aggregate related to the production of coal bed
methane since the enactment of section 29. The study should
report the annual value of the credit allowable for coal bed
methane compared to the average annual wellhead price of
natural gas (per thousand cubic feet of natural gas). The
study should estimate the incremental increase in production
of coal bed methane that has resulted from the enactment of
section 29. The study should also estimate the cost to the
Federal government, in terms of the net tax benefits claimed,
per thousand cubic feet of incremental coal bed methane
produced annually and in aggregate since the enactment of
section 29.
Effective date
The Senate amendment is effective for fuel sold after the
date of enactment.
Conference Agreement
In general
The conferees follow the House bill structure and a related
provision in S. 1149 as reported by the Senate Committee on
Finance on May 23, 2003. In general, the provision permits
taxpayers to claim the section 29 credit for certain new
wells or facilities placed in service after date of enactment
and before January 1, 2007, and the provision also permits
taxpayers to claim the section 29 credit for certain existing
wells and facilities. For all qualifying wells and facilities
the value of the credit is $3.00 for production in 2003 and
is indexed for inflation commencing with the credit amount
for 2004. The credit can be claimed for production for each
of the first four years of production, but not for any
production occurring after December 31, 2009. The amount of
the credit a taxpayer may claim with respect to any well or
facility is subject to the daily limit.
Extension of placed in service date for certain new
facilities
For new facilities producing qualifying fuels that are oil
from shale or tar sands, and gas from geopressured brine,
Devonian shale, coal seams or a tight formation, the credit
can be claimed for production from such new facilities placed
in service after date of enactment and before January 1,
2007. Credit may be claimed for production for each of the
first four years of production, but not for any production
occurring after December 31, 2009.
Extension of credit for existing oil and gas wells or
facilities
The provision permits production from certain existing
wells (any well drilled after December 31, 1979, and before
January 1, 1993) to claim a credit equal to the newly re-
indexed value of $3.00 for production in 2003 after the date
of enactment through 2007.
Extension of credit for certain other existing wells or
facilities
The provision extends the present-law credit through 2007,
for production from existing facilities producing natural gas
and by-products produced by coal gasification from lignite.
Extension for landfill gas facilities
The provision permits landfill gas sold from facilities
placed in service after June 30, 1998, and before January 1,
2007, to be eligible for four years of credit from the later
of January 1, 2004, or the date such facility is placed in
service and ending on the earlier of the date that is four
years after the date such period began or December 31, 2009.
In the case of a landfill subject to the Environmental
Protection Agency's 1996 New Source Performance Standards/
Emissions Guidelines the amount of credit is $2.00 per barrel
equivalent in 2003 and is indexed for inflation commencing
with the credit amount for 2004.
Expansion for coke facilities
The provision permits a facility for producing coke or coke
gas which was placed in service before January 1, 1993, or
after June 30, 1998, or after the date of enactment and
before January 1, 2007, to claim a credit beginning on the
later of January 1, 2004, or the date such facility is placed
in service and ending the earlier of the date four years
after such period began or December 31, 2009. A facility
currently claiming the credit under section 29(g) may not
claim any credit at the $3.00 rate in the future.
Expansion for fuels from agricultural and animal waste
The provision adds facilities producing liquid, gaseous, or
solid fuels, from agricultural and animal waste placed in
service after the date of enactment and before January 1,
2007, to the list of qualified facilities for purposes of the
non-conventional fuel credit. Taxpayers may claim the credit
beginning on the later of January 1, 2004, or the date such
facility is placed in service and ending the earlier of the
date which is four years after such date began or December
31, 2009. Agricultural and animal waste includes by-products,
packaging, and any materials associated with processing,
feeding, selling, transporting, or disposal of agricultural
or animal products or wastes. An example of transforming
agricultural and animal waste into qualifying fuels is
through the use of the thermal depolymerization process.
Expansion for ``refined coal''
The provision also expands section 29 to include certain
``refined coal'' as a qualified non-conventional fuel.
``Refined coal'' is a qualifying liquid, gaseous, or solid
synthetic fuel produced from coal (including lignite) from
facilities placed in service after date of enactment and
before January 1, 2008. Taxpayers may claim the credit for
fuel produced during the five-year period beginning on the
date the facility is placed in service and without being
subject to the general rule disallowing credit for production
and sale after December 31, 2009. A qualifying fuel is a fuel
that when burned emits 20 percent less nitrogen oxide and
either sulfur dioxide or mercury than the burning of
feedstock coal or comparable coal predominantly available in
the marketplace as of January 1, 2003, and if the fuel sells
at prices at least 50 percent greater than the prices of the
feedstock coal or comparable coal. A facility qualifies if
the taxpayer certifies (in such a manner as the Secretary may
prescribe) that the refined coal meets these requirements.
Refined coal also includes a qualifying fuel derived from
high-carbon fly ash. However, no fuel produced at a
qualifying advanced clean coal facility (as defined
elsewhere) would be a qualifying fuel.
The conferees intend that fuels made from coal using the
Fischer-Tropsch process would qualify as refined fuel
provided that such fuels satisfy the environmental and value
tests described above. The Fischer-Tropsch process for
producing diesel fuel can be separated into three main parts:
(1) the production of synthesis gas from the main feedstock;
(2) the catalytic reaction which converts the synthesis gas
into hydrocarbon components; and (3) the refining of these
hydrocarbon components into diesel fuel. Production of
synthesis gas is accomplished by reforming the feedstock
through partial oxidation reforming, autotherman
reforming,\63\ or steam reforming.
---------------------------------------------------------------------------
\63\Autotherman reforming can be accomplished with the use of
ambient air, enriched air, or pure oxygen.
---------------------------------------------------------------------------
Expansion for coalmine gas
In addition, the provision permits taxpayers to claim
credit for coalmine gas captured or extracted by the taxpayer
during the period beginning on the day after the date of
enactment and ending on December 31, 2006, and utilized as a
fuel source or sold by or on behalf of the taxpayer to an
unrelated person. The term ``coalmine gas'' means any methane
gas which is being liberated during qualified coal mining
operations or as a result of past qualified coal mining
operations, or which is captured 10 years in advance of
qualified coal mining operations as part of a specific plan
to mine a coal deposit. In the case of coalmine gas that is
captured in advance of qualified coal mining operations, the
credit is allowed only after the date the coal extraction
occurs in the immediate area where the coalmine gas was
removed. The capture or extraction of coalmine gas from coal
mining operations is required to be in compliance with
applicable Federal pollution prevention, control, and permit
requirements in order to qualify for the credit.
Daily limit
Under the provision, a taxpayer would not be able to claim
any credit for production in excess of a daily average\64\ of
200,000 cubic feet of natural gas or barrel of oil equivalent
(200,000 cubic feet is equivalent to approximately 35.4
barrels of oil) of such gas with respect to any property or
facility for which credit can be claimed under the
modifications above.\65\ All facilities eligible for the
$3.00 credit under the conference agreement are subject to
this limitation.
---------------------------------------------------------------------------
\64\The daily average is computed as total production divided
by the total number of days the well or facility was in
production during the year. Days before the date the project
is placed in service are not taken into account in
determining the daily average.
\65\The conferees observe that the daily limit adopted in the
conference agreement is identical to the provision in H.R. 6
as passed by the House of Representatives and in S. 1149 as
reported by the Senate Committee on Finance.
---------------------------------------------------------------------------
New phaseout adjustment
In the case of fuels sold after 2003, the dollar amount is
$3.00 (without regard to a phaseout adjustment). The new
phaseout is increased to $35.00.
General business credit
The provision adds section 29 to the list of general
business credits and relabels present section 29 of the Code
as new Code section 45K.
Effective date
The provision is effective for fuel produced and sold from
qualifying wells and facilities after December 31, 2003. For
application of the general business credit, the provision is
effective for taxable years ending after December 31, 2003.
[[Page 29266]]
C. Alternative Minimum Tax Provisions
1. Allow personal energy credits against the alternative
minimum tax (sec. 41007 of the House bill, secs. 2103(b)
and 2109(b) of the Senate amendment, and sec. 26 of the
Code)
Present Law
With certain exceptions, for taxable years beginning after
December 31, 2003, nonrefundable personal credits may not
exceed the excess of the regular tax liability over the
tentative minimum tax.
The tentative minimum tax is an amount equal to specified
rates of tax imposed on the excess of the alternative minimum
taxable income over an exemption amount. To the extent the
tentative minimum tax exceeds the regular tax, a taxpayer is
subject to the alternative minimum tax.
House Bill
The House bill allows the personal energy credits added by
the bill to offset both the regular tax and the alternative
minimum tax. (The credits added by the House bill include the
credit for residential solar energy property, the credit for
qualified fuel cell power plants, and the credit for energy
efficient improvements to existing homes)
Effective date.--The provision is effective for taxable
years beginning after December 31, 2003.
Senate Amendment
The Senate amendment is the same as the House bill. (The
credits added by the Senate amendment include the credit for
residential energy efficient property and the credit for
energy efficient improvements to existing homes.)
Effective date.--The provision is effective for taxable
years beginning after December 31, 2003.
Conference Agreement
The conference agreement follows the House bill and the
Senate amendment and allows the personal energy credits added
by the conference agreement (credits for residential energy
efficient property and energy efficiency improvements to
existing homes) to offset both the regular tax and the
alternative minimum tax.
Effective date.--The provision is effective for taxable
years beginning after December 31, 2003.
2. Increase tax limitation on use of business energy credits
(secs. 43006 and 43008 of the House bill, secs.
2005(b)(3) and 2503(c) of the Senate amendment, and sec.
38 of the Code)
Present Law
Generally, business tax credits may not exceed the excess
of the taxpayer's income tax liability over the tentative
minimum tax (or, if greater, 25 percent of the regular tax
liability). Credits in excess of the limitation may be
carried back one year and carried over for up to 20 years.
The tentative minimum tax is an amount equal to specified
rates of tax imposed on the excess of the alternative minimum
taxable income over an exemption amount. To the extent the
tentative minimum tax exceeds the regular tax, a taxpayer is
subject to the alternative minimum tax.
House Bill
The House bill treats the tentative minimum tax as being
zero for purposes of determining the tax liability limitation
with respect to (1) the business energy credits added by the
bill for construction of new energy efficient homes; for
production of low sulfur diesel fuel; and for oil and gas
production from marginal wells, (2) for taxable years
beginning in 2004 and 2005, the enhanced oil recovery credit,
and (3) the section 45 credit for electricity produced from a
wind facility (placed in service after the date of enactment)
during the first four years of production beginning on the
date the facility is placed in service.
Effective date.--The provision is effective for taxable
years ending after the date of enactment of the Act.
Senate Amendment
The Senate amendment allows the small ethanol producer
credit and the Alaska natural gas credit to be claimed
against the entire regular tax and alternative minimum tax;
other business energy credits are subject to the present law
limitation.
Effective date.--The provision is effective with effective
date of the respective credits.
Conference Agreement
The conference agreement treats the tentative minimum tax
as being zero for purposes of determining the tax liability
limitation with respect to (1) the business energy credits
added by the bill for construction of new energy efficient
homes, energy efficient appliances, production of low sulfur
diesel fuel, and oil and gas production from marginal wells;
(2) for taxable years beginning after December 31, 2003, the
section 40 alcohol fuels credit; (3) for taxable years
beginning in 2004 and 2005, the section 43 enhanced oil
recovery credit; and (4) the section 45 credit for
electricity produced from a facility (placed in service after
the date of enactment) during the first four years of
production beginning on the date the facility is placed in
service.
Effective date.--The provision is effective for taxable
years ending after the date of enactment of the Act.
3. Intangible drilling costs (IDCs) (sec. 43007 of the House
bill and sec. 57 of the Code)
Present Law
Taxpayers who pay or incur intangible drilling or
development costs (``IDCs'') in the development of domestic
oil or gas production may elect to either expense or
capitalize these amounts. If an election to expense IDCs is
made, the taxpayer deducts the amount of the IDCs as an
expense in the taxable year the cost is paid or incurred.
The difference between the amount of a taxpayer's IDC
deduction and the amount which would have been currently
deductible had IDCs been capitalized and recovered over a 10-
year period is an item of tax preference for the alternative
minimum tax (``AMT'') to the extent that this amount exceeds
65 percent of the taxpayer's net income from oil and gas
properties for the taxable year. This preference applies to
taxpayers other than integrated oil companies only to the
extent that the failure to apply the preference would result
in a reduction of the taxpayer's alternative minimum taxable
income by more than 40 percent.
House Bill
The bill repeals the AMT preference for intangible drilling
costs for oil and gas wells for taxpayers other than
integrated oil companies.
Effective date.--The provision applies to taxable years
beginning after December 31, 2003, and beginning before
January 1, 2006.
Senate Amendment
No provision.
Conference Agreement
The conference agreement follows the House bill.
D. Clean Coal Incentives
1. Credit for production from a clean coal technology unit
(secs. 2201 and 2221 of Senate amendment)
Present Law
Present law does not provide a production credit for
electricity generated at units that use coal as a fuel.
However, an income tax credit is allowed for the production
of electricity from either qualified wind energy, qualified
``closed-loop'' biomass, or qualified poultry waste units
placed in service prior to January 1, 2002 (sec. 45). The
credit allowed equals 1.5 cents per kilowatt-hour of
electricity sold. The 1.5-cent figure is indexed for
inflation and equals 1.8 cents for 2002. The credit is
allowable for production during the 10-year period after a
unit is originally placed in service. The production tax
credit is a component of the general business credit (sec.
38(b)(1)).
House Bill
No provision.
Senate Amendment
The Senate amendment provides a production credit for
electricity produced from certain units that have been
retrofitted, repowered, or replaced with a clean coal
technology within ten years of the date of enactment. The
value of the credit is 0.34 cents per kilowatt-hour of
electricity produced and is indexed for inflation occurring
after 2002 with the first potential adjustment in 2004.
A qualifying clean coal technology unit must meet certain
capacity standards, thermal efficiency standards, and
emissions standards for SO2, nitrous oxides,
particulate emissions, and source emissions standards as
provided in the Clean Air Act. To be a qualified clean coal
technology unit, the taxpayer must receive a certificate from
the Secretary of the Treasury. The Secretary may grant
certificates to units only to the point that 4,000 megawatts
of electricity production capacity qualifies for the credit.
However, no qualifying unit would be eligible if the unit's
capacity exceeded 300 megawatts.
Certain persons (public utilities, electric cooperatives,
Indian tribes, and the Tennessee Valley Authority) are
eligible to obtain certifications from the Secretary for
these credits and sell, trade, or assign the credit to any
taxpayer. However, any credit sold, traded, or assigned may
only be sold, traded, or assigned once. Subsequent trades are
not permitted.
Effective date.--The Senate amendment is effective for
electricity sold after the date of enactment.
Conference Agreement
The conference agreement does not include the Senate
amendment provision.
2. Investment credit for clean coal technology units (secs.
2211 and 2221 of Senate amendment and new sec. 48A of the
Code)
Present Law
Present law does not provide an investment credit for
electricity generating units that use coal as a fuel.
However, a nonrefundable, 10-percent investment tax credit
(``business energy credit'') is allowed for the cost of new
property that is equipment (1) that uses solar energy to
generate electricity, to heat or cool a structure, or to
provide solar process heat, or (2) that is used to produce,
distribute, or use energy derived from a geothermal deposit,
but only, in the case of electricity generated by geothermal
power, up to the electric transmission stage (sec. 48). The
business energy tax credit is a component of the general
business credit (sec. 38(b)(1)).
[[Page 29267]]
House Bill
No provision.
Senate Amendment
In general
The Senate amendment provides a 10-percent investment tax
credit for qualified investments in advanced clean coal
technology units. Certain persons (public utilities, electric
cooperatives, Indian tribes, and the Tennessee Valley
Authority) will be eligible to obtain certifications from the
Secretary of the Treasury (as described below) for these
credits and sell, trade, or assign the credit to any
taxpayer. However, any credit sold, traded, or assigned may
only be sold, traded, or assigned once. Subsequent trades are
not permitted.
Qualifying advanced clean coal technology units
Qualifying advanced clean coal technology units must
utilize advanced pulverized coal or atmospheric fluidized bed
combustion technology, pressurized fluidized bed combustion
technology, integrated gasification combined cycle
technology, or some other technology certified by the
Secretary of Energy. Any qualifying advanced clean coal
technology unit must meet certain capacity standards, thermal
efficiency standards, and emissions standards for SO2,
nitrous oxides, particulate emissions, and source emissions
standards as provided in the Clean Air Act. In addition, a
qualifying advanced clean coal technology unit must meet
certain carbon emissions requirements.
If the advanced clean coal technology unit is an advanced
pulverized coal or atmospheric fluidized bed combustion
technology unit, a pressurized fluidized bed combustion
technology unit, or an integrated gasification combined cycle
technology unit and if the unit uses a design coal with a
heat content of not more than 9,000 Btu per pound, the unit
must have a carbon emission rate less than 0.60 pound of
carbon per kilowatt hour of electricity produced. If the
advanced clean coal technology unit is an advanced pulverized
coal or atmospheric fluidized bed combustion technology unit,
a pressurized fluidized bed combustion technology unit, or an
integrated gasification combined cycle technology unit and if
the unit uses a design coal with a heat content greater than
9,000 Btu per pound, the unit must have a carbon emission
rate less than 0.54 pound of carbon per kilowatt hour of
electricity produced. In the case of an advanced clean coal
technology unit that uses another eligible technology and if
the unit uses a design coal with a heat content of not more
than 9,000 Btu per pound, the unit must have a carbon
emission rate less than 0.51 pound of carbon per kilowatt
hour of electricity produced. In the case of an advanced
clean coal technology unit that uses another eligible
technology and if the unit uses a design coal with a heat
content greater than 9,000 Btu per pound, the unit must have
a carbon emission rate less than 0.459 pound of carbon per
kilowatt hour of electricity produced.
Allocation of credits
To be a qualified investment in advanced clean coal
technology, the taxpayer must receive a certificate from the
Secretary of the Treasury. The Secretary may grant
certificates to investments only to the point that 4,000
megawatts of electricity production capacity qualifies for
the credit. From the potential pool of 4,000 megawatts of
capacity, not more than 1,000 megawatts in total and not more
than 500 megawatts in years prior to 2009 shall be allocated
to units using advanced pulverized coal or atmospheric
fluidized bed combustion technology. From the potential pool
of 4,000 megawatts of capacity, not more than 500 megawatts
in total and not more than 250 megawatts in years prior to
2009 shall be allocated to units using pressurized fluidized
bed combustion technology. From the potential pool of 4,000
megawatts of capacity, not more than 2,000 megawatts in total
and not more than 1,000 megawatts in years prior to 2009 and
not more than 1,500 megawatts in year prior to 2013 shall be
allocated to units using integrated gasification combined
cycle technology, with or without fuel or chemical co-
production. From the potential pool of 4,000 megawatts of
capacity, not more than 500 in total and not more than 250
megawatts in years prior to 2009 shall be allocated to any
other technology certified by the Secretary of Energy.
Effective date
The Senate amendment is effective for property placed in
service after the date of enactment.
Conference Agreement
In general
The conference establishes an investment tax credit for
qualified clean coal property. The credit amount is 15
percent for property placed in service in connection with any
basic clean coal technology unit and 17.5 percent for
property placed in service in connection with any advanced
clean coal technology unit. Qualifying clean coal property is
section 1245 property installed in connection with an
existing coal-based unit for the production of electricity as
part of a conversion to a basic or advanced clean coal
technology unit, or is installed in connection with a new
advanced clean coal technology unit. Qualifying property must
be placed in service after December 31, 2003, and if part of
a basic clean coal technology unit before January 1, 2014. If
the qualifying property is placed in service as part of an
advanced clean coal technology unit, it must be placed in
service prior to January 1, 2017.
The total amount of clean coal property eligible for the
credit is subject to a national megawatt limitation (detailed
below). To be eligible to claim the credit, the taxpayer must
receive an allocation of megawatt capacity from the
Secretary. The amount of credit the taxpayer may claim with
respect to clean coal property is the otherwise allowable
credit amount multiplied by the ratio of the national
megawatt capacity limitation allocated to the taxpayer over
the total nameplate capacity of the taxpayer's unit.
In addition, the credit allowable to the taxpayer is
reduced by reason of grants, tax-exempt bonds, subsidized
energy financing, and other credits, but such reduction
cannot exceed 50 percent of the otherwise allowable credit.
The credit is treated as part of the general business credit
and, under a special transition rule may not be carried back
to a taxable year ending before or on the effective date of
the provision.
Basic clean coal technology units
A qualifying clean coal technology unit is a unit using
clean coal technology (including advanced pulverized coal or
atmospheric fluidized bed combustion, pressurized fluidized
bed combustion, and integrated gasification combined cycle)
for the production of electricity. The unit must use at least
75 percent coal to produce at least 50 percent of its thermal
output as electricity. In addition, the unit must meet
certain capacity standards, thermal efficiency standards, and
emissions standards for SO2, nitrous oxides,
particulate emissions, and source emissions standards as
provided in the Clean Air Act. In addition, a qualifying
clean coal technology unit cannot be a unit that is receiving
or is scheduled to receive funding under the Clean Coal
Technology Program, the Power Plant Improvement Initiative,
or the Clean Coal Power Initiative administered by the
Secretary of the Department of Energy. Lastly, to be a
qualified clean coal technology unit, the taxpayer must
receive a certificate from the Secretary of the Treasury. The
Secretary may grant certificates to units only to the point
that 4,000 megawatts of electricity production capacity
qualifies for the credit. However, no qualifying unit is
eligible if the unit's rated nameplate capacity prior to
January 1, 2004, exceeded 300 megawatts. The maximum eligible
allocation to any qualifying unit may not exceed 300
megawatts.
Advanced clean coal technology units
A qualifying advanced clean coal technology unit is a unit
using: (1) advanced pulverized coal or atmospheric fluidized
bed combustion technology; (2) qualifying pressurized
fluidized bed combustion technology; (3) integrated
gasification combined cycle technology; or (4) other
qualifying technology.
(1) A qualifying advanced pulverized coal or atmospheric
fluidized bed combustion technology unit is a unit placed in
service after the date of enactment and before 2013 and
having a design net heat rate of not more than 8,500 Btu
(8,900 Btu if the unit is placed in service before 2009).
(2) A qualifying pressurized fluidized bed combustion
technology unit is a unit placed in service after the date of
enactment and before 2017 and having a design net heat rate
of not more than 7,720 Btu (8,900 Btu if the unit is placed
in service before 2009 and 8,500 Btu if the unit is placed in
service after 2008 and before 2013).
(3) A qualifying integrated gasification combined cycle
technology unit, with or without fuel or chemical co-
production, is a unit placed in service after the date of
enactment and before 2017 and having a design net heat rate
of not more than 7,720 Btu (8,900 Btu if the unit is placed
in service before 2009 and 8,500 Btu if the unit is placed in
service after 2008 and before 2013).
(4) An other qualifying technology unit is a unit that uses
any other technology and satisfies the design net heat rates
of a qualifying advanced pulverized coal or atmospheric
fluidized bed combustion technology unit.
Any qualifying advanced clean coal technology unit must
meet certain capacity standards, thermal efficiency
standards, and emissions standards for SO2 nitrous
oxides, particulate emissions, and source emissions standards
as provided in the Clean Air Act. A qualifying advanced clean
coal technology unit must use at least 75 percent coal to
produce at least 50 percent of its thermal output as
electricity. In addition, a qualifying advanced clean coal
technology unit must meet certain carbon emissions
requirements. For units using design coal with a heat content
of not more than 9,000 Btu per pound, the carbon emission
rate must be less than 0.60 pound of carbon per kilowatt hour
(0.51 if the unit qualifies as an other technology unit). For
units using design coal with a heat content in excess of
9,000 Btu per pound, the carbon emission rate must be less
than 0.54 pound of carbon per kilowatt hour (0.459 if the
unit qualifies as an other technology unit).
To be a qualified investment in advanced clean coal
technology, the taxpayer must receive a certificate from the
Secretary of the
[[Page 29268]]
Treasury. The Secretary may grant certificates to investments
only to the point that 6,000 megawatts of electricity
production capacity qualifies for the credit. From the
potential pool of 6,000 megawatts of capacity, not more than
1,500 megawatts in total and not more than 750 megawatts in
years prior to 2009 shall be allocated to units using
advanced pulverized coal or atmospheric fluidized bed
combustion technology. From the potential pool of 6,000
megawatts of capacity, not more than 750 megawatts in total
and not more than 375 megawatts in years prior to 2009 shall
be allocated to units using pressurized fluidized bed
combustion technology. From the potential pool of 6,000
megawatts of capacity, not more than 3,000 megawatts in total
and not more than 1,250 megawatts in years prior to 2009
shall be allocated to units using integrated gasification
combined cycle technology, with or without fuel or chemical
co-production. From the potential pool of 6,000 megawatts of
capacity, not more than 750 in total and not more than 375
megawatts in years prior to 2009 shall be allocated to any
other technology unit.
Effective date.--The provision is effective for property
placed in service after the date of enactment.
3. Credit for production from advanced clean coal technology
(secs. 2212 and 2221 of Senate amendment)
Present Law
Present law does not provide a production credit for
electricity generated at units that use coal as a fuel.
However, an income tax credit is allowed for the production
of electricity from either qualified wind energy, qualified
``closed-loop'' biomass, or qualified poultry waste units
placed in service prior to January 1, 2002 (sec. 45). The
credit allowed equals 1.5 cents per kilowatt-hour of
electricity sold. The 1.5-cent figure is indexed for
inflation and equals 1.8 cents for 2002. The credit is
allowable for production during the 10-year period after a
unit is originally placed in service. The production tax
credit is a component of the general business credit (sec.
38(b)(1)).
House Bill
No provision.
Senate Amendment
In general
The Senate amendment creates a production credit for
electricity produced from any qualified advanced clean coal
technology electricity generation unit that qualifies for the
investment credit for qualifying clean coal technology units,
as described above. Certain persons (public utilities,
electric cooperatives, Indian tribes, and the Tennessee
Valley Authority) will be eligible to obtain certifications
from the Secretary of the Treasury (as described below) for
each of these credits and sell, trade, or assign the credit
to any taxpayer. However, any credit sold, traded, or
assigned may only be sold, traded, or assigned once.
Subsequent trades are not permitted.
Value of production credit for electricity produced from
qualifying advanced clean coal technology
The taxpayer may claim a production credit on the sum of
each kilowatt-hour of electricity produced and the heat value
of other fuels or chemicals produced by the taxpayer at the
unit.\66\ The taxpayer may claim the production credit for
the 10-year period commencing with the date the qualifying
unit is placed in service (or the date on which a
conventional unit was retrofitted or repowered). The value of
the credit varies depending upon the year the unit is placed
in service, whether the unit produces solely electricity or
electricity and fuels or chemicals, and the rated thermal
efficiency of the unit. In addition, the value of the credit
is reduced for the second five years of eligible production.
The maximum value of the production credit from any
qualifying unit during the first five years of production is
$0.014 per kilowatt-hour and the minimum value is $0.001.
During the second five years of production from a qualifying
unit, the maximum value of the production credit is $0.0115
and the minimum value is $0.001. The value of the credit is
indexed for inflation occurring after 2002 with the first
potential adjustment in 2004.
---------------------------------------------------------------------------
\66\Each 3,413 Btu of heat content of the fuel or chemical is
treated as equivalent to one kilowatt-hour of electricity.
---------------------------------------------------------------------------
Effective date
The Senate amendment is effective for electricity sold
after the date of enactment.
Conference Agreement
The conference agreement does not include the Senate
amendment provision.
4. Amortization of pollution control facilities (sec. 169 of
the Code)
Present Law
In general, a taxpayer may elect to recover the cost of any
certified pollution control facility over a period of 60
months.\67\ A certified pollution control facility is defined
as a new, identifiable treatment facility which (1) is used
in an existing plant in operation before January 1, 1976, to
abate or control water or atmospheric pollution or
contamination by removing, altering, disposing, storing, or
preventing the creation or emission of pollutants,
contaminants, wastes or heat; and (2) which does which does
not lead to a significant increase in output or capacity, a
significant extension of useful life, or a significant
reduction in total operating costs for such plant or other
property (or any unit thereof), or a significant alteration
in the nature of a manufacturing production process or
facility. Certification is required by appropriate State and
Federal authorities that the facility comply with appropriate
standards.
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\67\Sec. 169. For purposes of the alternative minimum tax,
such property is recovered using the straight-line method
over its general recovery period (for property placed in
service prior to 1999 and after 1986 such property is
recovered using the alternative system of depreciation
contained in section 168(g)).
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For a pollution control facility with a useful life greater
than 15 years, only the basis attributable to the first 15
years is eligible to be amortized over a 5-year period.\68\
The remaining basis is depreciable under the regular rules
for depreciation. In addition, a corporate taxpayer must
reduce the amount of basis eligible for the 60-month recovery
by 20 percent.\69\ Such reduction is depreciable under the
regular rules for depreciation.
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\68\The amount attributable to the first 15 years is equal to
an amount which bears the same ratio to the portion of the
adjusted basis of such facility, which would be eligible for
amortization but for the application of this rule, as 15
bears to the number of years of useful life of such facility.
\69\Sec. 291(a)(5).
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House Bill
No provision.
Senate Amendment
No provision.
Conference Agreement
The conference agreement expands the ability to recover
certified pollution control facilities over 60 months by
repealing the requirement that only a certified pollution
control facility used in connection with a plant in operation
before January 1, 1976 qualify. Thus, a certified pollution
control facility used in connection with a plant or other
property that began operation after January 1, 1976, will
generally be eligible for recovery over 60 months.\70\ In
addition, the conference agreement shortens the recovery
period for a certified pollution control facility used in
connection with a plant or other property in operation before
January 1, 1976, to 36 months (from 60 months) if no
allocation is made under section 48A(f) (as added by another
provision of the conference agreement). The conference
agreement does not alter the present law limitation on the
benefits of the provision for corporate taxpayers and
pollution control facilities with a useful life greater than
15 years.
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\70\In the case of a facility used in connection with a plant
or other property to which an amount is allocated under
section 48A(f) (as added by another provision in the
conference agreement) the 60-month amortization period only
applies if such plant or other property was in operation
before January 1, 1976.
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Effective date.--The provision applies to facilities placed
in service after the date of enactment.
5. Eligible integrated gasification combined cycle technology
unit treated as five-year property (sec. 168 of the Code)
Present Law
The applicable recovery period for assets placed in service
under the Modified Accelerated Cost Recovery System is based
on the ``class life of the property.'' The class lives of
assets placed in service after 1986 are generally set forth
in Revenue Procedure 87-56.\71\ Electric utility steam
production plant property, which includes combustion turbines
operated in a combined cycle with a conventional steam unit,
is assigned a 20-year recovery period and a class life of 28
years.
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\71\1987-2 C.B. 674 (as clarified and modified by Rev. Proc.
88-22, 1988-1 C.B. 785).
---------------------------------------------------------------------------
House Bill
No provision.
Senate Amendment
No provision.
Conference Agreement
The conference agreement establishes a statutory 5-year
recovery period and a class life of 20 years for an eligible
integrated gasification combined cycle technology unit that
receives an allocation of the clean coal technology
credit.\72\ An eligible integrated gasification combined
cycle technology unit is defined as a clean coal technology
unit using integrated gasification combined cycle technology,
with or without fuel or chemical co-production, which meets a
certain design heat rate and net thermal efficiency.\73\
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\72\Section 48A as added by another provision of the
conference agreement.
\73\The design heat rate and net thermal efficiency standards
are defined in section 48A(e)(4)(A) and (B) as added by
another provision of the conference agreement.
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Effective date.--The provision is effective for property
placed in service after the date of enactment.
E. High Volume Natural Gas Provisions
1. High volume natural gas pipe treated as seven-year
property (sec. 168 of the Code)
Present Law
The applicable recovery period for assets placed in service
under the Modified Accelerated Cost Recovery System is based
on the ``class life of the property.'' The class lives of
[[Page 29269]]
assets placed in service after 1986 are generally set forth
in Revenue Procedure 87-56.\74\ Asset class 46.0, describing
assets used in the private, commercial, andcontract carrying
of petroleum, gas and other products by means of pipes and
conveyors, are assigned a class life of 22 years and a
recovery period of 15 years.
---------------------------------------------------------------------------
\74\1987-2 C.B. 674 (as clarified and modified by Rev. Proc.
88-22, 1988-1 C.B. 785).
---------------------------------------------------------------------------
House Bill
No provision.
Senate Amendment
No provision.
Conference Agreement
The conference agreement establishes a statutory seven-year
recovery period and a class life of 22 years for any high
volume natural gas pipe the original use\75\ of which
commences after the date of enactment. High volume natural
gas pipe is defined as a pipe which has an interior diameter
at least 42 inches and which is part of a natural gas
pipeline system. Such property includes any related equipment
and appurtenances used in connection with such pipe. In
addition, the conference agreement provides that there is no
adjustment to the allowable amount of depreciation for
purposes of computing a taxpayer's alternative minimum
taxable income with respect to such property.
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\75\The term ``original use'' means the first use to which
the property is put, whether or not such use corresponds to
the use of such property by the taxpayer. It is intended
that, when evaluating whether property qualifies as
``original use,'' the factors used to determine whether
property qualified as ``new section 38 property'' for
purposes of the investment tax credit would apply. See
Treasury Regulation 1.48-2. Thus, it is intended that
additional capital expenditures incurred to recondition or
rebuild acquired property (or owned property) would satisfy
the ``original use'' requirement. However, the cost of
reconditioned or rebuilt property acquired by the taxpayer
would not satisfy the ``original use'' requirement. For
example, if on April 13, 2004, a taxpayer buys from ACM for
$20,000,000 a 42-inch natural gas pipeline that has been
previously used by ACM. Subsequent to the purchase, the
taxpayer makes an expenditure on the property of $5,000,000
for new 42-inch pipe that is required to be capitalized.
Regardless of whether the $5,000,000 is added to the basis of
such property or is capitalized as a separate asset, such
amount would be treated as satisfying the ``original use''
requirement and would be eligible for the reduced recovery
period. No part of the $20,000,000 purchase price qualifies
for the reduced recovery period.
---------------------------------------------------------------------------
Effective date.--The provision is effective for property
placed in service on or after the date of enactment.
2. Credit for production of Alaska natural gas (sec. 2503 of
Senate amendment)
Present Law
Present law does not provide a credit for conventional
production of natural gas or delivery of fuels to a pipeline.
However, certain fuels produced from ``non-conventional
sources'' and sold to unrelated parties are eligible for an
income tax credit equal to $3 (generally adjusted for
inflation) per barrel or BTU oil barrel equivalent (sec. 29).
Qualified fuels must be produced within the United States.
Qualified fuels include:
(1) Gas produced from geopressured brine, Devonian shale,
coal seams, tight formations (``tight sands''), or biomass;
and
(2) Liquid, gaseous, or solid synthetic fuels produced from
coal (including lignite).
In general, the credit is available only with respect to
fuels produced from wells drilled or facilities placed in
service after December 31, 1979, and before January 1, 1993.
An exception extends the January 1, 1993 expiration date for
facilities producing gas from biomass and synthetic fuel from
coal if the facility producing the fuel is placed in service
before July 1, 1998, pursuant to a binding contract entered
into before January 1, 1997.
The credit may be claimed for qualified fuels produced and
sold before January 1, 2003 (in the case of non-conventional
sources subject to the January 1, 1993 expiration date) or
January 1, 2008 (in the case of biomass gas and synthetic
fuel facilities eligible for the extension period).
House Bill
No provision.
Senate Amendment
The Senate amendment provides a credit per million British
thermal units (Btu) of natural gas for Alaska natural gas
entering a pipeline during the 15-year period beginning the
later of January 1, 2010 or the initial date for the
interstate transportation of Alaska natural gas. Taxpayers
may claim the credit against both the regular and minimum
tax.
The credit amount for any month is the excess of $3.25
(indexed for inflation) per million Btu of natural gas over
the average monthly price for that month for Alaska natural
gas at the AECO C Hub in Alberta, Canada. Inflation
adjustments in the $3.25 amount will be made by reference to
changes in the GDP implicit price deflator for changes
occurring after the first year in which the credit may be
claimed.
If in any month commencing three years after the first year
in which the credit may be claimed the average monthly price
for that month for Alaska natural gas at the AECO C Hub in
Alberta, Canada, exceeds $4.875 (indexed for inflation) per
million Btu, any prior credits claimed are recaptured by
increasing the taxpayer's tax liability by the lesser of the
excess of the average monthly price for that month for Alaska
natural gas at the AECO C Hub over $4.875 (indexed for
inflation) per million Btu or the aggregate amount of credit
claimed for Alaska natural gas in all prior years.
Alaska natural gas is any gas derived from an area of the
State of Alaska lying north of 64 degrees North latitude
generally from the area known as the ``North Slope of
Alaska,'' but not including the Alaska National Wildlife
Refuge.
Effective date.--The provision is effective on the date of
enactment.
Conference Agreement
The conference agreement does not include the Senate
amendment provision.
3. Enhanced oil recovery credit for certain gas processing
facilities (sec. 43 of the Code)
Present Law
The taxpayer may claim a credit equal to 15 percent of
enhanced oil recovery costs. Qualified enhanced oil recovery
costs include costs of depreciable tangible property that is
part of an enhanced oil recovery project, intangible drilling
and development costs with respect to an enhanced oil
recovery project, and tertiary injectant expenses incurred
with respect to an enhanced oil recovery project. The credit
is phased out when oil prices exceed a threshold amount.
House Bill
No provision.
Senate Amendment
No provision.
Conference Agreement
The conference agreement provides that expenses in
connection with the construction of any qualifying natural
gas processing plant capable of processing one trillion
British thermal units of natural gas into a natural gas
pipeline system on a daily basis are qualified enhanced oil
recovery costs eligible for the enhanced oil recovery credit.
A qualifying natural gas processing plant also must produce
carbon dioxide for re-injection into a producing oil or gas
field.
Effective date.--The provision is effective for costs paid
or incurred in taxable years beginning after 2003.
IV. ADDITIONAL PROVISIONS
A. Extension of Tax Incentives for Energy-Related Businesses on Indian
Reservations
(sec. 2501 of the Senate amendment and sec. 168 of the Code)
Present Law
The following tax incentives are available for businesses
within Indian reservations.
Accelerated depreciation
With respect to certain property used in connection with
the conduct of a trade or business within an Indian
reservation, depreciation deductions under section 168(j) are
determined using shorter recovery periods.
``Qualified Indian reservation property'' eligible for
accelerated depreciation includes property which is (1) used
by the taxpayer predominantly in the active conduct of a
trade or business within an Indian reservation, (2) not used
or located outside the reservation on a regular basis, (3)
not acquired (directly or indirectly) by the taxpayer from a
person who is related to the taxpayer, and (4) described in
the recovery-period table above. In addition, property is not
``qualified Indian reservation property'' if it is placed in
service for purposes of conducting gaming activities. Certain
``qualified infrastructure property'' may be eligible for the
accelerated depreciation even if located outside an Indian
reservation.
The depreciation deduction allowed for regular tax purposes
is also allowed for purposes of the alternative minimum tax.
The accelerated depreciation is available with respect to
property placed in service on or after January 1, 1994, and
before December 31, 2004.
Indian employment credit
In general, a credit against income tax liability is
allowed to employers for the first $20,000 of qualified wages
and qualified employee health insurance costs paid or
incurred by the employer with respect to certain employees
(sec. 45A). The credit is equal to 20 percent of the excess
of eligible employee qualified wages and health insurance
costs during the current year over the amount of such wages
and costs incurred by the employer during 1993. The credit is
an incremental credit, such that an employer's current-year
qualified wages and qualified employee health insurance costs
(up to $20,000 per employee) are eligible for the credit only
to the extent that the sum of such costs exceeds the sum of
comparable costs paid during 1993. No deduction is allowed
for the portion of the wages equal to the amount of the
credit.
The wage credit is available for wages paid or incurred on
or after January 1, 1994, in taxable years that begin before
December 31, 2004.
House Bill
No provision.
Senate Amendment
The Senate amendment extends the accelerated depreciation
incentive to property
[[Page 29270]]
placed in service before January 1, 2006, and the Indian
employment credit incentive to taxable years beginning before
January 1, 2006.
Effective date.--The provision is effective on the date of
enactment.
Conference Agreement
The conference agreement extends the accelerated
depreciation incentive for property placed in service before
January 1, 2006, as part of a facility for: (1) the
generation or transmission of electricity (including any
qualified energy resource as defined in section 45(c) for
purposes of the credit for electricity produced from certain
renewable resources), (2) an oil or gas well, (3) the
transmission or refining of oil or gas, or (4) the production
of any qualified fuel (as defined for purposes of the credit
for producing fuel from a nonconventional source).
Effective date.--The provision is effective on the date of
enactment.
B. GAO Study
(sec. 2502 of the Senate amendment)
Present Law
Present law does not require study of the present law
provisions relating to clean fuel vehicles and electric
vehicles.
House Bill
No provision.
Senate Amendment
The Senate amendment directs the Comptroller General to
undertake an ongoing analysis of the effectiveness of the tax
credits allowed to alternative motor vehicles and the tax
credits allowed to various alternative fuels under Title II
of the bill and the tax credits and enhanced deductions
allowed for energy conservation and efficiency under Title
III of the bill. The studies should estimate the energy
savings and reductions in pollutants achieved from taxpayer
utilization of these provisions. The studies should estimate
the dollar value of the benefits of reduced energy
consumption and reduced air pollution in comparison to
estimates of the revenue cost of these provisions to the U.S.
Treasury. The studies should include an analysis of the
distribution of the taxpayers who utilize these provisions by
income and other relevant characteristics.
The bill directs the Comptroller General to submit annual
reports to Congress beginning not later than December 31,
2002.
Effective date.--The provision is effective on the date of
enactment.
Conference Agreement
The conference agreement does not include the Senate
amendment provision.
C. Treatment of Certain Dispositions of Dairy Property To Implement
Bovine Tuberculosis Eradication Program
(sec. 2505 of the Senate amendment)
Present Law
Generally, a taxpayer may elect not to recognize gain with
respect to property that is involuntarily converted if the
taxpayer acquires within an applicable period (generally the
period ending two years after the end of the taxable year in
which the first gain on the conversion is realized) property
similar or related in service or use.
House Bill
No provision.
Senate Amendment
The Senate amendment extends involuntary conversion
treatment to qualified dispositions of dairy property
pursuant to the bovine tuberculosis eradication program.
Treats any property acquired and held by the taxpayer either
for productive use in a trade or business or for investment
as property similar or related in use to the converted
property. Extend the applicable acquisition period from two
to four years and permits replacement property to be acquired
from related parties. In addition to deferring gain, the
provision also permits an ordinary loss equal to the adjusted
basis of the converted property.
Finally, the provision allows expensing for amounts paid or
incurred by the taxpayer to convert any real property into
unimproved land pursuant to the bovine tuberculosis
eradication program.
Effective date.--Effective for dispositions made and
amounts received in taxable years beginning after May 22,
2001, but shall not apply to dispositions made after December
31, 2006.
Conference Agreement
The conference agreement does not include the Senate
amendment provision.
D. Expand Exemption From Aviation Fuels Excise Taxes for Aerial
Applicators
(sec. 2506 of the Senate amendment)
Present Law
Excise taxes are imposed on aviation gasoline (19.4 cents
per gallon) and jet fuel (21.9 cents per gallon) (secs. 4081
and 4091). Fuel used on a farm for farming purposes is exempt
from tax. Aerial applicators (crop dusters) are allowed to
claim the exemption on behalf of farm owners and operators,
e.g., in the case of aviation gasoline if the owners or
operators give written consent to the aerial applicators.
This exemption applies only to fuel consumed in the airplane
while operating over the farm, i.e., fuel consumed traveling
to and from the farm is not exempt.
House Bill
No provision.
Senate Amendment
The Senate amendment expands the present-law exception to
include fuel used between farms and base airfields, and
provides that the aerial applicator is the exclusive party
entitled to the refund.
Effective date.--The provision is effective for fuel use
and air transportation after December 31, 2001 and before
January 1, 2003.
Conference Agreement
The conference agreement does not include the Senate
amendment provision.
E. Modification of Rural Airport Definition
(sec. 2507 of the Senate amendment)
Present Law
Most domestic air passenger transportation is subject to a
two-part excise tax. First, an ad valorem tax is imposed at
the rate of 7.5 percent of the amount paid for the
transportation. Second, a flight segment tax of $3.00 per
segment is imposed. The flight segment component of the tax
does not apply to segments to or from qualified ``rural
airports.'' A rural airport is defined as an airport that (1)
in the second preceding calendar year had fewer than 100,000
commercial passenger departures, and (2) either (a) is not
located within 75 miles of another airport that had more than
100,000 such departures in that year, or (b) is eligible for
payments under the Federal ``essential air service'' program.
House Bill
No provision.
Senate Amendment
The provision expands the definition of qualified rural
airport to include an airport that (1) is not connected by
paved roads to another airport and (2) had fewer that 100,000
passengers departing by air during the second preceding
calendar year.
Effective date.--The provision is effective for calendar
years beginning after 2002.
Conference Agreement
The conference agreement does not include the Senate
amendment provision.
F. Exempt Transportation by Seaplane From Ticket Taxes
(sec. 2508 of the Senate amendment)
Present Law
Most domestic air passenger transportation is subject to a
two-part excise tax. First, an ad valorem tax is imposed at
the rate of 7.5 percent of the amount paid for the
transportation. Second, a flight segment tax of $3.00 per
segment is imposed. Noncommercial aviation is subject to a
higher fuel excise tax, but not the ticket tax.
Commercial aviation also is subject to a 4.4-cents-per-
gallon fuels excise tax.
House Bill
No provision.
Senate Amendment
The Senate amendment exempts seaplane flights from the
taxes on transportation of persons and property by air.
Effective date.--The provision is effective for calendar
years beginning after 2002.
Conference Agreement
The conference agreement does not include the Senate
amendment provision.
G. Credit for Taxpayers Owning Commercial Power Takeoff Vehicles
(sec. 2009 of the Senate amendment)
Present Law
If gasoline is used in an off-highway business use, the
ultimate purchaser of the gasoline is entitled to a credit or
refund of excise taxes paid in respect of the gasoline.\76\
No credit or payment may be claimed in respect of gasoline
used in a commercial highway vehicle solely by reason of the
fact that the propulsion motor in the vehicle also is used
for a purpose other than to propel the vehicle.\77\ Thus, if
the propulsion motor of a highway vehicle also operates
special equipment, such as a mixing unit on a concrete mixer
or a pump for discharging fuel from a tank truck, by means of
a power takeoff or power transfer, no credit or payment may
be claimed in respect of the gasoline used to operate the
special equipment, even though the special equipment is
mounted on the highway vehicle.\78\
---------------------------------------------------------------------------
\76\Sec. 6421(a).
\77\Treas. Reg. sec. 48.6421-1(d)(2).
\78\Id.
---------------------------------------------------------------------------
If the highway vehicle is equipped with a separate motor to
operate the special equipment, credit or refund payment may
be claimed in respect of gasoline used in the separate motor.
For example, if a separate motor is used to operate a
refrigeration unit, pump, generator or mixing unit, the
ultimate purchaser could seek a refund with respect to the
gasoline used in that separate motor. If the gasoline used in
a separate motor is drawn from the same tank as the one which
supplies gasoline for the propulsion of the highway vehicle,
the determination as to the quantity of gasoline used in the
separate motor operating the special equipment is based on
operating experience and supported by records.\79\
---------------------------------------------------------------------------
\79\Treas. Reg. sec. 48.6421-1(d)(3).
---------------------------------------------------------------------------
House Bill
No provision.
[[Page 29271]]
Senate Amendment
The provision provides a yearly $250-per-vehicle income tax
credit to business owners of certain highway vehicles that
consume fuel for both transportation and in non-
transportation-related equipment, using a single motor.
Specifically, the provision covers vehicles (1) designed to
engage in the daily collection of refuse or recyclables from
homes or businesses and is equipped with a mechanism under
which the vehicles propulsion engine provides the power to
operate a load compactor, (``refuse collection trucks'') or
(2) designed to deliver ready mixed concrete on a daily basis
and is equipped with a mechanism under which the vehicles
propulsion engine provides the power to operate a mixer drum
to agitate and mix the product en route to the delivery site
(``concrete mixers''). Governmental vehicles and those owned
by tax-exempt organizations are not eligible for the credit.
The credit expires after the calendar year 2004.
The provision further requires that by January 1, 2005, the
Treasury provide by regulation a method for exempting refuse
collection trucks and concrete mixers from the fuels excise
tax on fuel used to power equipment attached to these
vehicles.
Effective date.--The provision is effective for taxable
years beginning after the date of enactment through 2004.
Conference Agreement
The conference agreement does not contain the Senate
amendment provision.
H. Payment of Dividends on Stock of Cooperatives Without Reducing
Patronage Dividends
(sec. 1388 of the Code)
Present Law
Under present law, cooperatives generally are entitled to
deduct or exclude amounts distributed as patronage dividends
in accordance with Subchapter T of the Code. In general,
patronage dividends are comprised of amounts that are paid to
patrons (1) on the basis of the quantity or value of business
done with or for patrons, (2) under a valid and enforceable
obligation to pay such amounts that was in existence before
the cooperative received the amounts paid, and (3) which are
determined by reference to the net earnings of the
cooperative from business done with or for patrons.
Treasury Regulations provide that net earnings are reduced
by dividends paid on capital stock or other proprietary
capital interests (referred to as the ``dividend allocation
rule'').\80\ The dividend allocation rule has been
interpreted to require that such dividends be allocated
between a cooperative's patronage and nonpatronage
operations, with the amount allocated to the patronage
operations reducing the net earnings available for the
payment of patronage dividends.
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\80\Treas. Reg. sec. 1.1388-1(a)(1).
---------------------------------------------------------------------------
House Bill
No provision.
Senate Amendment
No provision.
Conference Agreement
The conference agreement provides a special rule for
dividends on capital stock of a cooperative. To the extent
provided in organizational documents of the cooperative,
dividends on capital stock do not reduce patronage income and
do not prevent the cooperative from being treated as
operating on a cooperative basis.
Effective date.--The conference agreement provision is
effective for distributions made in taxable years ending
after the date of enactment.
I. Distributions From Publicly Traded Partnerships Treated as
Qualifying Income of Regulated Investment Company
(secs. 851 and 469(k) of the Code)
Present Law
Treatment of regulated investment companies
A regulated investment company (``RIC'') generally is
treated as a conduit for Federal income tax purposes. In
computing its taxable income, a RIC deducts dividends paid to
its shareholders to achieve conduit treatment (sec. 852(b)).
In order to qualify for conduit treatment, a RIC must be a
domestic corporation that, at all times during the taxable
year, is registered under the Investment Company Act of 1940
as a management company or as a unit investment trust, or has
elected to be treated as a business development company under
that Act (sec. 851(a)). In addition, the corporation must
elect RIC status, and must satisfy certain other requirements
(sec. 851(b)).
One of the RIC qualification requirements is that at least
90 percent of the RIC's gross income is derived from
dividends, interest, payments with respect to securities
loans, and gains from the sale or other disposition of stock
or securities or foreign currencies, or other income
(including but not limited to gains from options, futures, or
forward contracts) derived with respect to its business of
investing in such stock, securities, or currencies (sec.
851(b)(2)). Income derived from a partnership is treated as
meeting this requirement only to the extent such income is
attributable to items of income of the partnership that would
meet the requirement if realized by the RIC in the same
manner as realized by the partnership (the ``look-through''
rule for partnership income) (sec. 851(b)). Under present
law, no distinction is made under this rule between a
publicly traded partnership (that is treated as a partnership
for Federal tax purposes) and any other partnership.
The RIC qualification rules include limitations on the
ownership of assets and on the composition of the RIC's
assets (sec. 851(b)(3)). Under the ownership limitation, at
least 50 percent of the value of the RIC's total assets must
be represented by cash, government securities and securities
of other RICs, and other securities; however, in the case of
such other securities, the RIC may invest no more than 5
percent of the value of the total assets of the RIC in the
securities of any one issuer, and may hold no more than 10
percent of the outstanding voting securities of any one
issuer. Under the limitation on the composition of the RIC's
assets, no more than 25 percent of the value of the RIC's
total assets may be invested in the securities of any one
issuer (other than Government securities), or in securities
of two or more controlled issuers in the same or similar
trades or businesses. These limitations generally are applied
at the end of each quarter (sec. 851(d)).
Treatment of publicly traded partnerships
Under present law, a publicly traded partnership is defined
as a partnership, interests in which are traded on an
established securities market, or are readily tradable on a
secondary market (or the substantial equivalent thereof). In
general, a publicly traded partnership is treated as a
corporation (sec. 7704(a)), but an exception to corporate
treatment is provided if 90 percent or more of its gross
income is interest, dividends, real property rents, or
certain other types of qualifying income (sec. 7704(c) and
(d)).
A special rule for publicly traded partnerships applies
under the passive loss rules. The passive loss rules limit
deductions and credits from passive trade or business
activities (sec. 469). Deductions attributable to passive
activities, to the extent they exceed income from passive
activities, generally may not be deducted against other
income. Deductions and credits that are suspended under these
rules are carried forward and treated as deductions and
credits from passive activities in the next year. The
suspended losses from a passive activity are allowed in full
when a taxpayer disposes of his entire interest in the
passive activity to an unrelated person. The special rule for
publicly traded partnerships provides that the passive loss
rules are applied separately with respect to items
attributable to each publicly traded partnership (sec.
469(k)). Thus, income or loss from the publicly traded
partnership is treated as separate from income or loss from
other passive activities.
House Bill
No provision.
Senate Amendment
No provision.
Conference Agreement
The conference agreement includes a provision that modifies
the 90 percent test with respect to income of a RIC to
include income derived from an interest in certain publicly
traded partnerships. The provision also modifies the
lookthrough rule for partnership income of a RIC so that it
applies only to income from a partnership other than such
publicly traded partnerships.
The provision provides that the limitation on ownership and
the limitation on composition of assets that apply to other
investments of a RIC also apply to RIC investments in such
publicly traded partnership interests.
A publicly traded partnership to which the provision
applies is a publicly traded partnership described in section
7704(b) other than one that would satisfy the 90-percent
gross income requirements for publicly traded partnerships if
qualifying income included only income that is qualifying
income described in section 851(b)(2)(A) for a RIC (i.e.,
income that is derived from dividends, interest, payments
with respect to securities loans, and gains from the sale or
other disposition of stock or securities or foreign
currencies, or other income (including but not limited to
gains from options, futures, or forward contracts) derived
with respect to its business of investing in such stock,
securities, or currencies).
The provision provides that the special rule for publicly
traded partnerships under the passive loss rules (requiring
separate treatment) applies to a RIC holding an interest in
such a publicly traded partnership, with respect to items
attributable to the interest in the publicly traded
partnership.
The conferees intend that the provision not be used to
avoid tax on the partnership's income in the hands of the
mutual fund shareholders that would be subject to tax (e.g.,
unrelated business income tax) or to withholding (e.g.,
withholding on foreign partners) if they held the partnership
interest directly. The conferees expect that guidance issued
by the Treasury Department with respect to the provision will
provide rules that carry out this intent.
Effective date.--The provision is effective for taxable
years beginning after the date of enactment.
[[Page 29272]]
J. Suspension of Duties on Ceiling Fans (Chapter 99, II of the
Harmonized Tariff Schedule of the United States)
Present Law
A 4.7-percent ad valorem customs duty is collected on
imported ceiling fans from all sources.
House Bill
No provision.
Senate Amendment
No provision.
Conference Agreement
The conference agreement suspends the present customs duty
applicable to ceiling fans through December 31, 2005.
Effective date.--The provision is effective on the
fifteenth day after the date of enactment.
K. Suspension of Duties on Nuclear Steam Generators (Chapter 99, II of
the Harmonized Tariff Schedule of the United States)
Present Law
Nuclear steam generators, as classified under heading
9902.84.02 of the Harmonized Tariff Schedule of the United
States, enter the United States duty free until December 31,
2006. After December 31, 2006, the duty on nuclear steam
generators returns to the column 1 rate of 5.2 percent under
subheading 8402.11.00 of the Harmonized Tariff Schedule of
the United States.
House Bill
No provision.
Senate Amendment
No provision.
Conference Agreement
The conference agreement extends the present-law suspension
of customs duty applicable to nuclear steam generators
through December 31, 2008.
Effective date.--The provision is effective on the
fifteenth day after the date of enactment.
L. Suspension of Duties on Nuclear Reactor Vessel Heads (Chapter 99, II
of the Harmonized Tariff Schedule of the United States)
Present Law
According to section 5202 of the Trade Act of 2002, nuclear
vessel heads are classified under subheading 8401.40.00 of
the Harmonized Tariff Schedule of the United States and enter
the United States with a column 1 duty rate of 3.3 percent.
House Bill
No provision.
Senate Amendment
No provision.
Conference Agreement
The conference agreement temporarily suspends the present
customs duty applicable to nuclear reactor vessel heads for
column 1 countries through December 31, 2007.
Effective date.--The provision is effective on the date of
enactment.
M. Brownfields Demonstration Program for Qualified Green Building and
Sustainable Design Projects
(secs. 142 and 146 of the Code)
present law
Tax-exempt bonds
In general
Interest on debt incurred by States or local governments is
excluded from income if the proceeds of the borrowing are
used to carry out governmental functions of those entities or
the debt is repaid with governmental funds (section 103).
Interest on bonds that nominally are issued by States or
local governments, but the proceeds of which are used
(directly or indirectly) by a private person and payment of
which is derived from funds of such a private person is
taxable unless the purpose of the borrowing is approved
specifically in the Code or in a non-Code provision of a
revenue Act. These bonds are called ``private activity
bonds.'' The term ``private person'' includes the Federal
Government and all other individuals and entities other than
States or local governments.
Private activities eligible for financing with tax-exempt
private activity bonds
Present law includes several exceptions permitting States
or local governments to act as conduits providing tax-exempt
financing for private activities. Both capital expenditures
and limited working capital expenditures of charitable
organizations described in section 501(c)(3) of the Code may
be financed with tax-exempt bonds (``qualified 501(c)(3)
bonds'').
States or local governments may issue tax-exempt ``exempt-
facility bonds'' to finance property for certain private
businesses. Business facilities eligible for this financing
include transportation (airports, ports, local mass
commuting, and high speed intercity rail facilities);
privately owned and/or privately operated public works
facilities (sewage, solid waste disposal, local district
heating or cooling, and hazardous waste disposal facilities);
privately owned and/or operated low-income rental
housing;\81\ and certain private facilities for the local
furnishing of electricity or gas. A further provision allows
tax-exempt financing for ``environmental enhancements of
hydro-electric generating facilities.'' Tax-exempt financing
also is authorized for capital expenditures for small
manufacturing facilities and land and equipment for first-
time farmers (``qualified small-issue bonds''), local
redevelopment activities (``qualified redevelopment bonds''),
and eligible empowerment zone and enterprise community
businesses. Tax-exempt private activity bonds also may be
issued to finance limited non-business purposes: certain
student loans and mortgage loans for owner-occupied housing
(``qualified mortgage bonds'' and ``qualified veterans'
mortgage bonds'').
---------------------------------------------------------------------------
\81\Residential rental projects must satisfy low-income
tenant occupancy requirements for a minimum period of 15
years.
---------------------------------------------------------------------------
With the exception of qualified 501(c)(3) bonds, private
activity bonds may not be issued to finance working capital
requirements of private businesses. In most cases, the
aggregate volume of tax-exempt private activity bonds that
may be issued in a State is restricted by annual volume
limits.
Several additional restrictions apply to the issuance of
tax-exempt bonds. First, private activity bonds (other than
qualified 501(c)(3) bonds) may not be advance refunded.
Governmental bonds and qualified 501(c)(3) bonds may be
advance refunded one time. An advance refunding occurs when
the refunded bonds are not retired within 90 days of issuance
of the refunding bonds.
Issuance of private activity bonds is subject to
restrictions on use of proceeds for the acquisition of land
and existing property, use of proceeds to finance certain
specified facilities (e.g., airplanes, skyboxes, other luxury
boxes, health club facilities, gambling facilities, and
liquor stores) and use of proceeds to pay costs of issuance
(e.g., bond counsel and underwriter fees). Additionally, the
term of the bonds generally may not exceed 120 percent of the
economic life of the property being financed and certain
public approval requirements (similar to requirements that
typically apply under State law to issuance of governmental
debt) apply under Federal law to issuance of private activity
bonds. Present and prior law precludes substantial users of
property financed with private activity bonds from owning the
bonds to prevent their deducting tax-exempt interest paid to
themselves. Finally, owners of most private-activity-bond-
financed property are subject to special ``change-in-use''
penalties if the use of the bond-financed property changes to
a use that is not eligible for tax-exempt financing while the
bonds are outstanding.
house bill
No provision.
senate amendment
No provision.
conference agreement
The bill creates a new category of tax-exempt bonds, the
qualified green building and sustainable design project bond.
A qualified green building and sustainable design project
bond is defined as any bond issued as part of an issue that
finances a project designated by the Secretary, after
consultation with the Administrator of the Environmental
Protection Agency (the ``Administrator'') as a green building
and sustainable design project that meets the following
requirements: (1) at least 75 percent of the square footage
of the commercial buildings that are part of the project is
registered for the U.S. Green Building Council's LEED
certification and is reasonably expected (at the time of
designation) to meet such certification;\82\ (2) the project
includes a brownfield site;\83\(3) the project receives at
least $5 million dollars in specific State or local
resources; and (4) the project includes at least one million
square feet of building or 20 acres of land.
---------------------------------------------------------------------------
\82\The LEED (``Leadership in Energy and Environmental
Design) Green Building Rating System is a voluntary,
consensus-based national standard for developing high-
performance sustainable buildings. Registration is the first
step toward LEED certification. Actual certification requires
that the applicant project satisfy all prerequisites and
receive a minimum number of points to attain a LEED rating
level. Commercial buildings, as defined by standard building
codes are eligible for certification. Commercial occupancies
include, but are not limited to, offices, retail and service
establishments, institutional buildings (e.g., libraries,
schools, museums, churches, etc.), hotels, and residential
buildings of four or more habitable stories. <https://
www.usgbc.org/LEED/Project/certprocess.asp>.
\83\For this purpose a brownfield site is defined by section
101(39) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9601),
including a site described in subparagraph (D)(ii)(II)(aa)
(relating to a site that is contaminated by petroleum or a
petroleum product excluded from the definition of ``hazardous
substance'' under section 101.)
---------------------------------------------------------------------------
Each project must be nominated by a State or local
government within 180 days of enactment of this Act and such
State or local government must provide written assurances
that the project will satisfy certain eligibility criteria.
Within 60 days after the end of the application period, the
Secretary, after consultation with the Administrator, will
designate the qualified green building and sustainable design
projects. At least one of the projects must be in or within a
ten-mile radius of an empowerment zone (as defined under
section 1391 of the Code) and at
[[Page 29273]]
least one must be in a rural State.\84\ A project shall not
be designated if such project includes a stadium or arena for
professional sports exhibitions or games.
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\84\The term ``rural State'' means any State that has (1) a
population of less than 4.5 million according to the 2000
census; (2) a population density of less than 150 people per
square mile according to the 2000 census; and (3) increased
in population by less than half the rate of the national
increase between the 1990 and 2000 censuses.
---------------------------------------------------------------------------
The Secretary, after consultation with the Administrator,
shall also ensure that, in the aggregate, the projects
designated shall: (1) reduce electric consumption by more
than 150 megawatts annually as compared to conventional
construction; (2) reduce daily sulfur dioxide emissions by at
least 10 tons compared to coal generation power; (3) expand
by 75 percent the domestic solar photovoltaic market in the
United States (measured in megawatts) as compared to the
expansion of that market from 2001 to 2002; and (4) use at
least 25 megawatts of fuel cell energy generation.
Each application shall contain for each project a
description of: (1) amount of electric consumption reduced as
compared to conventional construction; (2) the amount of
sulfur dioxide daily emissions reduced compared to coal
generation; (3) the amount of gross installed capacity of the
project's solar photovoltaic capacity measured in megawatts;
and (4) the amount, measured in megawatts, of the project's
fuel cell energy generation. Each project application must
also demonstrate that: (1) at least 75 percent of the square
footage of the commercial buildings that are part of the
project is registered for the U.S. Green Building Council's
LEED certification and is reasonably expected (at the time of
designation) to meet such certification; (2) the project
includes a brownfield site (as defined above); (3) the
project receives at least $5 million dollars in specific
State or local resources; (4) the project includes at least
one million square feet of building or at least 20 acres of
land; (5) the project is projected to provide permanent
employment of at least 1500 full time equivalents (150 full
time equivalents in rural States) when completed and
construction employment of at least 1000 full time
equivalents (100 full time equivalents in rural States);\85\
and (6) the net benefit of the qualified green building and
sustainable design project tax-exempt financing provided will
be allocated for (i) the purchase, construction, integration
or other use of energy efficiency, renewable energy and
sustainable design features of the project, (ii) compliance
with LEED certification standards, and/or (iii) the purchase,
remediation, foundation construction, and preparation of the
brownfield site. Not later than 30 days after the completion
of the project, each project must certify to the Secretary
that the net benefit of the tax-exempt financing was used for
the purposes described.
---------------------------------------------------------------------------
\85\The application is to include an independent analysis
that describes the project's economic impact, including the
amount of projected employment.
---------------------------------------------------------------------------
Qualified green building and sustainable design project
bonds are not subject to the State bond volume limitations.
There is a national limitation of $2 billion of bonds. The
Secretary may allocate, in the aggregate, no more than $2
billion of bonds to qualified green building and sustainable
design projects.
Any asset financed with qualified green building and
sustainable design project bonds is ineligible for any credit
or deduction established or extended under the Energy Tax
Policy Act of 2003. In addition, each issuer shall maintain,
on behalf of each project, an interest bearing reserve
account equal to one percent of the net proceeds of any
qualified green building and sustainable design project bond
issued for such project. Not later than five years after the
date of issuance, the Secretary, after consultation with the
Administrator, shall determine whether the project financed
with such bonds has substantially complied requirements and
commitments described in the project application for
designation, including certification. If the Secretary, after
such consultation, certifies that the project has
substantially complied with requirements and commitments,
amounts in the reserve account, including all interest, shall
be released to the project. If the Secretary determines that
the project has not substantially complied with such
requirements and commitments, amounts in the reserve account,
including all interest, shall be paid to the United States
Treasury.
Qualified green building and sustainable design project
bonds may be currently refunded if certain conditions are
met, but cannot be advance refunded.
Effective date.--The provisions are effective for bonds
issued after the date of enactment and before October 1,
2009.
V. TAX COMPLEXITY ANALYSIS
Section 4022(b) of the Internal Revenue Service Reform and
Restructuring Act of 1998 (the ``IRS Reform Act'') requires
the Joint Committee on Taxation (in consultation with the
Internal Revenue Service and the Department of the Treasury)
to provide a tax complexity analysis. The complexity analysis
is required for all legislation reported by the Senate
Committee on Finance, the House Committee on Ways and Means,
or any committee of conference if the legislation includes a
provision that directly or indirectly amends the Internal
Revenue Code (the ``Code'') and has widespread applicability
to individuals or small businesses.
The staff of the Joint Committee on Taxation has determined
that a complexity analysis is not required under section
4022(b) of the IRS Reform Act because the bill contains no
provisions that amend the Internal Revenue Code and that have
``widespread applicability'' to individuals or small
businesses.
TITLE XIV--MISCELLANEOUS PROVISIONS
Title XIV of the conference report provides funding for the
power cost equalization program in Alaska, and authorizes
assistance to rural communities for electric generation,
transmission, and distribution upgrades and improvements. It
establishes a coastal reinvestment program to assist coastal
states in mitigating the impacts of offshore development, and
allows lessees due compensation under the Oil Pollution Act
of 1980 to withhold royalty payments for production from a
covered lease tract in the outer Continental Shelf under
certain circumstances. The report provides for changes in the
composition, operation, and duties of the Tennessee Valley
Authority board of directors, authorizes the continued
operation of certain electric transmission facilities,
reinstates a regulation for downwind ozone nonattainment
areas, authorizes States to provide energy production
incentives, and directs the Administrator of the
Environmental Protection Agency to establish criteria for the
use of granular mine tailings.
TITLE XV--ETHANOL
Title XV of the conference report establishes a renewable
fuels standard requiring that 5.0 billion gallons of
renewable fuels be introduced into the marketplace by 2012.
It bans the use of MTBE in motor fuels after December 31,
2104, and authorizes transition assistance to aid
manufacturers in converting production to other fuel
additives. The title requires a National Academy of Sciences
report on the use of MTBE to be completed by May 31, 2013,
and provides opportunity for a Presidential determination
concerning restrictions on the use of MTBE by June 30, 2013.
It also provides limited liability protection for MTBE, fuels
using MTBE, ethanol, and fuels using ethanol, for defective
product claims. The title also makes changes to provisions
related to leaking underground storage tanks, including
requiring at least 80 percent of all dollars appropriated
from the LUST Trust Fund to be sent to the States for
operating leaking underground tanks programs. It requires
onsite inspections of underground storage tanks every 3 years
after a brief period for the State to update its backlog. The
title also prohibits Federal facilities from exempting
themselves from compliance with all federal, State, and local
underground tank laws.
TITLE XVI--STUDIES
Title XVI of the conference report authorizes a variety of
studies on issues such as petroleum and natural gas supplies,
coal bed methane, telecommuting, oil bypass filtration, and
the Low-Income Home Energy Assistance Program.
From the Committee on Energy and Commerce, for consideration
of the House bill and the Senate amendment, and modifications
committed to conference:
Billy Tauzin,
Michael Bilirakis,
Joe Barton,
Fred Upton,
Cliff Stearns,
Paul Gillmor,
John Shimkus,
From the Committee on Agriculture, for consideration of secs.
30203, 30308, 30212, Title III of Division C, secs. 30604,
30901, and 30903 of the House bill and secs. 265, 301, 604,
941-948, 950, 1103, 1221, 1311-1313, and 2008 of the Senate
amendment, and modifications committed to conference:
Bob Goodlatte,
Frank D. Lucas,
Charles W. Stenholm,
From the Committee on Armed Services, for consideration of
secs. 11005, 11010, 14001-14007, 14009-14015, 21805 and 21806
of the House bill and secs. 301, 501-507, 509, 513, 809, 821,
914, 920, 1401, 1407-1409, 1411, 1801, and 1803 of the Senate
amendment, and modifications committed to conference:
Duncan Hunter,
Curt Weldon,
From the Committee on Education and the Workforce, for
consideration of secs. 11021, 12014, 14033, and 30406 of the
House bill and secs. 715, 774, 901, 903, 1505, and 1507 of
the Senate amendment, and modifications committed to
conference:
Sam Johnson,
From the Committee on Financial Services, for consideration
of Division G of the House bill and secs. 931-940 and 950 of
the Senate amendment and modifications committed to
conference:
Robert W. Ney,
From the Committee on Government Reform, for consideration of
secs. 11002, 11005, 11006, 11010, 11011, 14025, 14033, and
22002 of the House bill and secs. 263, 805, 806, 914-916,
918, 920, 1406, and 1410 of the Senate amendment, and
modifications committed to conference:
[[Page 29274]]
Tom Davis,
Tim Murphy,
From the Committee on the Judiciary, for consideration of
secs. 12008, 12401, 14014, 14026, 14027, 14028, 14033, 16012,
16045, 16084, 30101, 30210, and 30408 of the House bill and
secs. 206, 209, 253, 531-532, 708, 767, 783, and 1109 of the
Senate amendment, and modifications committed to conference:
Lamar Smith,
From the Committee on Resources, for consideration of secs.
12005, 12007, 12011, 12101, 13001, 21501, 21521-21530,
Division C, and sec. 60009 of the House bill and secs. 201,
265, 272, 301, 401-407, 602-606, 609, 612, 705, 707, 712,
721, 1234, 1351-1352, 1704, and 1811 of the Senate amendment,
and modifications committed to conference:
Richard Pombo,
Barbara Cubin,
Provided that Mr. Kind is appointed in lieu of Mr. Rahall for
consideration of Title IV of Division C of the House bill,
and modifications committed to conference:
From the Committee on Science, for consideration of secs.
11009, 11025, 12301-12312, 14001-14007, 14009-14015, 14029,
15021-15024, 15031-15034, 15041, 15045, Division B, sec
30301, Division E, and Division F of the House bill and secs.
501-507, 509, 513-516, 770-772, 807-809, 814-816, 824, 832,
1001-1022, Title XI, Title XII, Title XIII, Title XIV, secs.
1501, 1504-1505, Title XVI, and secs. 1801-1805 of the Senate
amendment, and modifications committed to conference:
Judy Biggert,
Ralph M. Hall,
Provided that Mr. Costello is appointed in lieu of Mr. Hall
of Texas for consideration of Division E of the House bill,
and modifications committed to conference:
Jerry Costello,
Provided that Mr. Lampson is appointed in lieu of Mr. Hall of
Texas for consideration of sec. 21708 and Division F of the
House bill, and secs. 824 and 1223 of the Senate amendment
and modifications committed to conference:
Nick Lampson,
From the Committee on Transportation and Infrastructure, for
consideration of secs. 11001-11004, 11006, 11009-110011,
12001-12012, 12014, 12401, 12403, 13001, 13201, 13202, 15021-
15024, 15031-15034, 15041, 15043, 15051, 16012, 16021, 16022,
16023, 16031, 16081, 16082, 16092, 23001-23004, 30407, 30410,
and 30901 of the House bill and secs. 102, 201, 205, 301,
701-783, 812, 814, 816, 823, 911-916, 918-920, 949, 1214,
1261-1262, and 1351-1352 of the Senate amendment, and
modifications committed to conference:
Don Young,
Thomas Petri,
From the Committee on Ways and Means, for consideration of
Division D of the House bill and Division H and I of the
Senate amendment, and modifications committed to conference:
William Thomas,
Jim McCrery,
Managers on the Part of the House.
Pete V. Domenici,
Don Nickles,
Larry E. Craig,
Ben Nighthorse Campbell,
Craig Thomas,
Chuck Grassley,
Trent Lott,
Byron L. Dorgan,
Managers on the Part of the Senate.
____________________
REPORT ON RESOLUTION WAIVING POINTS OF ORDER AGAINST CONFERENCE REPORT
ON H.R. 6, ENERGY POLICY ACT OF 2003
Mr. REYNOLDS, from the Committee on Rules, submitted a privileged
report (Rept. No. 108-376) on the resolution (H. Res. 443) waiving
points of order against the conference report to accompany the bill
(H.R. 6) to enhance energy conservation and research and development,
to provide for security and diversity in the energy supply for the
American people, and for other purposes, which was referred to the
House Calendar and ordered to be printed.
____________________
REPORT ON RESOLUTION WAIVING POINTS OF ORDER AGAINST CONFERENCE REPORT
ON H.R. 2754, ENERGY AND WATER DEVELOPMENT APPROPRIATIONS ACT, 2004
Mr. REYNOLDS, from the Committee on Rules, submitted a privileged
report (Rept. No. 108-377) on the resolution (H. Res. 444) waiving
points of order against the conference report to accompany the bill
(H.R. 2754) making appropriations for energy and water development for
the fiscal year ending September 30, 2004, and for other purposes,
which was referred to the House Calendar and ordered to be printed.
____________________
LEAVE OF ABSENCE
By unanimous consent, leave of absence was granted to:
Ms. Carson of Indiana (at the request of Ms. Pelosi) for today on
account of personal reasons.
Mr. Becerra (at the request of Ms. Pelosi) for today on account of
personal reasons.
Mr. Davis of Illinois (at the request of Ms. Pelosi) for today on
account of official business in the district.
Mr. Emanuel (at the request of Ms. Pelosi) for today on account of
personal reasons.
Ms. Jackson-Lee of Texas (at the request of Ms. Pelosi) for today on
account of official business.
Mr. Menendez (at the request of Ms. Pelosi) for today on account of
official business.
Mr. Ortiz (at the request of Ms. Pelosi) for today on account of
official business.
Mr. Lucas of Oklahoma (at the request of Mr. DeLay) for today on
account of a travel delay.
Mrs. Bono (at the request of Mr. DeLay) for today on account of
attending the inauguration ceremonies for the Governor of California.
Mr. Janklow (at the request of Mr. DeLay) for today on account of
medical reasons.
____________________
SPECIAL ORDERS GRANTED
By unanimous consent, permission to address the House, following the
legislative program and any special orders heretofore entered, was
granted to:
(The following Members (at the request of Mr. Pallone) to revise and
extend their remarks and include extraneous material:)
Mr. DeFazio, for 5 minutes, today.
Mr. Brown of Ohio, for 5 minutes, today.
Ms. Norton, for 5 minutes, today.
Mr. Ross, for 5 minutes, today.
Mr. Green of Texas, for 5 minutes, today.
Ms. Woolsey, for 5 minutes, today.
Ms. Solis, for 5 minutes, today.
Mr. Pallone, for 5 minutes, today.
Mr. McDermott, for 5 minutes, today.
Mr. Strickland, for 5 minutes, today.
(The following Members (at the request of Mr. Moran of Kansas) to
revise and extend their remarks and include extraneous material:)
Mr. Moran of Kansas, for 5 minutes, today.
Mr. Osborne, for 5 minutes, November 18.
Mr. McCotter, for 5 minutes, November 19.
Mr. Burton of Indiana, for 5 minutes, today and November 18, 19, 20,
21.
Mr. Miller of Florida, for 5 minutes, today.
Mr. Coble, for 5 minutes, today.
Mr. Gingrey, for 5 minutes, today.
(The following Member (at his own request) to revise and extend his
remarks and include extraneous material:)
Mr. Gutknecht, for 5 minutes, today.
____________________
ADJOURNMENT
Mr. REYNOLDS. Mr. Speaker, I move that the House do now adjourn.
The motion was agreed to; accordingly (at 8 o'clock and 51 minutes
a.m.), under its previous order, the House adjourned until today,
Tuesday, November 18, 2003, at 10 a.m., for morning hour debates.
____________________
EXECUTIVE COMMUNICATIONS, ETC.
Under clause 8 of rule XII, executive communications were taken from
the Speaker's table and referred as follows:
5401. A letter from the Secretary, Department of the
Treasury, transmitting as required by Executive Order 13313
of July 31, 2003, a 6-month periodic report on the national
emergency with respect to Iran that was declared in Executive
Order 12170 of November 14, 1979, pursuant to 50 U.S.C.
1641(c) 50 U.S.C. 1703(c); to the Committee on International
Relations.
5402. A communication from the President of the United
States, transmitting a supplemental report, consistent with
the War Powers Resolution, to help ensure that the Congress
is kept fully informed on continued
[[Page 29275]]
U.S. contributions in support of peacekeeping efforts in
Kosovo; (H. Doc. No. 108-142); to the Committee on
International Relations and ordered to be printed.
5403. A letter from the Assistant Secretary for Legislative
Affairs, Department of State, transmitting Report for 2002 on
IAEA Activities in Countries Described in Section 307 (a) of
the Foreign Assistance Act, pursuant to Public Law 105-277,
section 2809(c)(2); to the Committee on International
Relations.
5404. A letter from the Director, Office of Human Resources
Management, Department of Energy, transmitting a report
pursuant to the Federal Vacancies Reform Act of 1998; to the
Committee on Government Reform.
5405. A letter from the Chairman, Postal Rate Commission,
transmitting a report submitted in accordance with the
Inspector General Act of 1978, as amended, pursuant to 5
U.S.C. app. (Insp. Gen. Act) section 5(b); to the Committee
on Government Reform.
5406. A letter from the Assistant Secretary for Legislative
Affairs, Department of State, transmitting As required by
Section 417(b) of the USA Patriot Act of 2001 (as enacted in
Public Law 107-56), the second annual report on the status of
the implementation of machine-readable passports (MRPs) in
countries participating in the Visa Waiver Program (VWP); to
the Committee on the Judiciary.
5407. A letter from the Assistant Secretary of the Army
(Civil Works), Department of the Army, transmitting a
Feasibility Study and Final Supplemental Environmental Impact
Statement on the Port of Los Angeles Channel Deepening
Project; to the Committee on Transportation and
Infrastructure.
5408. A letter from the Chief, Regulations and
Administrative Law, USCG, Department of Homeland Security,
transmitting the Department's final rule--Safety Zone; Lower
Mississippi River, Miles 94.0 to 96.0, Above Head of Passes,
New Orleans, LA [COTP New Orleans-03-003] (RIN: 2115-AA97)
received November 5, 2003, pursuant to 5 U.S.C. 801(a)(1)(A);
to the Committee on Transportation and Infrastructure.
5409. A letter from the Chief, Regulations and
Administrative Law, USCG, Department of Homeland Security,
transmitting the Department's final rule--Security Zone;
Arlington Channel Turning Basin, Mobile, AL [COTP Mobile-03-
010] (RIN: 1625-AA00) received November 5, 2003, pursuant to
5 U.S.C. 801(a)(1)(A); to the Committee on Transportation and
Infrastructure.
5410. A letter from the Chief, Regulations and
Administrative Law, USCG, Department of Homeland Security,
transmitting the Department's final rule--Security Zones;
Lower Mississippi River, Above Head of Passes, LA [COTP New
Orleans--03-007] (RIN: 1625--AA-00) received November 5,
2003, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on
Transportation and Infrastructure.
5411. A letter from the Chief, Regulations and
Administrative Law, USCG, Department of Homeland Security,
transmitting the Department's final rule--Safety Zone; Port
Arthur Ship Canal, Port Arthur, TX [COTP Port Arthur-03-008]
(RIN: 1625-AA00) received November 5, 2003, pursuant to 5
U.S.C. 801(a)(1)(A); to the Committee on Transportation and
Infrastructure.
5412. A letter from the Chief, Regulations and
Administrative Law, USCG, Department of Homeland Security,
transmitting the Department's final rule--Safety Zone; Red
River, Miles 88.0 to 89.0, Pineville, LA [COTP New Orleans-
03-013] (RIN: 1625-AA00) received November 5, 2003, pursuant
to 5 U.S.C. 801(a)(1)(A); to the Committee on Transportation
and Infrastructure.
5413. A letter from the Chief, Regulations and
Administrative Law, USCG, Department of Homeland Security,
transmitting the Department's final rule--Security Zone:
Protection of High Capacity Passenger Vessels in Prince
William Sound, Alaska [COTP-PWS-03-003] (RIN: 1625-AA00)
received November 5, 2003, pursuant to 5 U.S.C. 801(a)(1)(A);
to the Committee on Transportation and Infrastructure.
5414. A letter from the Chief, Regulations and
Administrative Law, USCG, Department of Homeland Security,
transmitting the Department's final rule--Security Zone; San
Juan, Puerto Rico [COTP San Juan 03-062] (RIN: 1625-AA00)
received November 5, 2003, pursuant to 5 U.S.C. 801(a)(1)(A);
to the Committee on Transportation and Infrastructure.
5415. A letter from the Chief, Regulations and
Administrative Law, USCG, Department of Homeland Security,
transmitting the Department's final rule--Safety Zone; Lower
Mississippi River, Miles 85.0 to 91.0, Chalmette, LA [COTP
New Orleans-03-016] (RIN: 1625-AA00) received November 5,
2003, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on
Transportation and Infrastructure.
5416. A letter from the Chief, Regulations and
Administrative Law, USCG, Department of Homeland Security,
transmitting the Department's final rule--Safety Zone;
Tennessee River, Mile Marker 446.0 to 454.6, Chattanooga, TN
[COTP Paducah, KY 03-004] (RIN: 1625-AA00) received November
5, 2003, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee
on Transportation and Infrastructure.
5417. A letter from the Chief, Regulations and
Administrative Law, USCG, Department of Homeland Security,
transmitting the Department's final rule--Safety Zone;
Tennessee River, Mile Marker 446.0 to 454.6, Chattanooga, TN
[COTP Paducah-03-013] (RIN: 1625-AA00) received November 5,
2003, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on
Transportation and Infrastructure.
5418. A letter from the Chief, Regulations and
Administrative Law, USCG, Department of Homeland Security,
transmitting the Department's final rule--Safety Zone;
Allegheny River Mile Marker 0.3 to Mile Marker 0.7,
Pittsburgh, PA [COTP Pittsburgh-03-002] (RIN: 1625-AA00)
received November 5, 2003, pursuant to 5 U.S.C. 801(a)(1)(A);
to the Committee on Transportation and Infrastructure.
5419. A letter from the Chief, Regulations and
Administrative Law, USCG, Department of Homeland Security,
transmitting the Department's final rule--Safety Zone;
Allegheny River Mile Marker 0.3 to Mile Marker 0.7,
Pittsburgh, Pennsylvania. [COTP Pittsburgh-03-006] (RIN:
1625-AA00) received November 5, 2003, pursuant to 5 U.S.C.
801(a)(1)(A); to the Committee on Transportation and
Infrastructure.
5420. A letter from the Chief, Regulations and
Administrative Law, USCG, Department of Homeland Security,
transmitting the Department's final rule--Safety Zones;
Harley Owners Group (H.O.G.) Rally, Ohio River Mile Marker
0.7 to Mile Marker 0.3 on the Allegheny River Pittsburgh, PA
[COTP Pittsburgh 03-008] (RIN: 1625-AA00) received November
5, 2003, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee
on Transportation and Infrastructure.
____________________
REPORTS OF COMMITTEES ON PUBLIC BILLS AND RESOLUTIONS
Under clause 2 of rule XIII, reports of committees were delivered to
the clerk for printing and reference to the proper calendar, as
follows:
Mr. POMBO: Committee on Resources. H.R. 154. A bill to
exclude certain properties from the John H. Chafee Coastal
Barrier Resources System; with an amendment (Rept. 108-359).
Referred to the Committee of the Whole House on the State of
the Union.
Mr. POMBO: Committee on Resources. H.R. 521. A bill to
establish the Steel Industry National Historic Site in the
Commonwealth of Pennsylvania; with an amendment (Rept. 108-
360). Referred to the Committee of the Whole House on the
State of the Union.
Mr. POMBO: Committee on Resources. H.R. 1594. A bill to
direct the Secretary of the Interior to conduct a study of
the suitability and feasibility of establishing the St. Croix
National Heritage Area in St. Croix, United States Virgin
Islands, and for other purposes; with an amendment (Rept.
108-361). Referred to the Committee of the Whole House on the
State of the Union.
Mr. POMBO: Committee on Resources. H.R. 1618. A bill to
establish the Arabia Mountain National Heritage Area in the
State of Georgia, and for other purposes; with an amendment
(Rept. 108-362). Referred to the Committee of the Whole House
on the State of the Union.
Mr. POMBO: Committee on Resources. H.R. 1648. A bill to
authorize the Secretary of the Interior to convey certain
water distribution systems of the Cachuma Project,
California, to the Carpinteria Valley Water District and the
Montecito Water District (Rept. 108-363). Referred to the
Committee of the Whole House on the State of the Union.
Mr. POMBO: Committee on Resources. H.R. 1732. A bill to
amend the Reclamation Wastewater and Groundwater Study and
Facilities Act to authorize the Secretary of the Interior to
participate in the Williamson County, Texas, Water Recycling
and Reuse Project, and for other purposes (Rept. 108-364).
Referred to the Committee of the Whole House on the State of
the Union.
Mr. POMBO: Committee on Resources. H.R. 1798. A bill to
establish the Upper Housatonic Valley National Heritage Area
in the State of Connecticut and the Commonwealth of
Massachusetts, and for other purposes; with an amendment
(Rept. 108-365). Referred to the Committee of the Whole House
on the State of the Union.
Mr. POMBO: Committee on Resources. H.R. 1862. A bill to
establish the Oil Region National Heritage Area; with an
amendment (Rept. 108-366). Referred to the Committee of the
Whole House on the State of the Union.
Mr. POMBO: Committee on Resources. H.R. 2425. A bill to
provide for the use and distribution of the funds awarded to
the Quinault Indian Nation under United States Claims Court
Dockets 772-71, 773-71, 774-71, and 775-71, and for other
purposes; with an amendment (Rept. 108-367). Referred to the
Committee of the Whole House on the State of the Union.
Mr. POMBO: Committee on Resources. H.R. 2489. A bill to
provide for the distribution of judgment funds to the Cowlitz
Indian Tribe; with an amendment (Rept. 108-368). Referred to
the Committee of the Whole House on the State of the Union.
Mr. POMBO: Committee on Resources. S. 625. An act to
authorize the Bureau of Reclamation to conduct certain
feasibility studies in the Tualatin River Basin in Oregon,
and for other purposes (Rept. 108-369). Referred to the
Committee of the Whole House on the State of the Union.
Mr. POMBO: Committee on Resources. H.R. 280. A bill to
establish the National
[[Page 29276]]
Aviation Heritage Area, and for other purposes; with an
amendment (Rept. 108-370). Referred to the Committee of the
Whole House on the State of the Union.
Mr. POMBO: Committee on Resources. H.R. 421. A bill to
reauthorize the United States Institute for Environmental
Conflict Resolution and for other purposes; (Rept. 108-371
Pt. 1). Ordered to be printed.
Mr. POMBO: Committee on Resources. S. 1233. An act to
authorize assistance for the National Great Blacks in Wax
Museum and Justice Learning Center (Rept. 108-372 Pt. 1).
Ordered to be printed.
Mr. POMBO: Committee on Resources. H.R. 1964. A bill to
establish the Highlands Stewardship Area in the States of
Connecticut, New Jersey, New York, and Pennsylvania, and for
other purposes; with an amendment (Rept. 108-373 Pt. 1).
Ordered to be printed.
[Submitted November 18 (legislative day of November 17), 2003]
Mr. TAUZIN: Committee of Conference. Conference report on
H.R. 6. A bill to enhance energy conservation and research
and development, to provide for security and diversity in the
energy supply for the American people, and for other purposes
(Rept. 108-375). Ordered to be printed.
Mr. HASTINGS of Washington: Committee on Rules. House
Resolution 443. Resolution waiving points of order against
the conference report to accompany the bill (H.R. 6) to
enhance energy conservation and research and development, to
provide for security and diversity in the energy supply for
the American people, and for other purposes (Rept. 108-376).
Referred to the House Calendar.
Mr. REYNOLDS: Committee on Rules. House Resolution 444.
Resolution waiving points of order against the conference
report to accompany the bill (H.R. 2754) making
appropriations for energy and water development for the
fiscal year ending September 30, 2004, and for other purposes
(Rept. 108-377). Referred to the House Calendar.
____________________
REPORTED BILL SEQUENTIALLY REFERRED
Under clause 2 of rule XII, bills and reports were delivered to the
Clerk for printing, and bills referred as follows:
Mr. POMBO: Committee on Resources. S. 523. An act to make
technical corrections to law relating to Native Americans,
and for other purposes (Rept. 108-374, Pt. 1); referred to
the Committee on Agriculture for a period ending not later
than November 21, 2003, for consideration of such provisions
of the bill as fall within the jurisdiction of that committee
pursuant to clause 1(a), rule X.
____________________
TIME LIMITATION OF REFERRED BILL
Pursuant to clause 2 of rule XII the following action was taken by
the Speaker:
S. 1233. Referral to the Committee on the Judiciary
extended for a period ending not later than November 21,
2003.
H.R. 1964. Referral to the Committee on Agriculture
extended for a period ending not later than November 21,
2003.
____________________
PUBLIC BILLS AND RESOLUTIONS
Under clause 2 of rule XII, public bills and resolutions were
introduced and severally referred, as follows:
By Mr. NEY (for himself and Mr. Larson of Connecticut):
H.R. 3490. A bill to eliminate the requirement that the
Public Printer make an additional contribution to the Civil
Service Retirement and Disability Fund with respect to each
employee of the Government Printing Office to whom a
voluntary separation incentive payment has been paid; to the
Committee on House Administration, and in addition to the
Committee on Government Reform, for a period to be
subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the
jurisdiction of the committee concerned.
By Mr. LEWIS of Georgia (for himself and Mr. Kingston):
H.R. 3491. A bill to establish within the Smithsonian
Institution the National Museum of African American History
and Culture, and for other purposes; to the Committee on
House Administration, and in addition to the Committees on
Transportation and Infrastructure, and Resources, for a
period to be subsequently determined by the Speaker, in each
case for consideration of such provisions as fall within the
jurisdiction of the committee concerned.
By Mr. FRANKS of Arizona (for himself, Mr. King of
Iowa, Mr. Hoekstra, Mr. Manzullo, Mr. Souder, Mr.
Wilson of South Carolina, Mr. Burton of Indiana, Mrs.
Christensen, Mr. Peterson of Pennsylvania, Mr.
Garrett of New Jersey, and Mrs. Myrick):
H.R. 3492. A bill to amend title 38, United States Code, to
allow claimants for benefits under laws administered by the
Secretary of Veterans Affairs to pay fees for attorney
services during any stage of the Department of Veterans
Affairs claims process; to the Committee on Veterans'
Affairs.
By Mr. GREENWOOD (for himself and Ms. Eshoo):
H.R. 3493. A bill to amend the Federal Food, Drug, and
Cosmetic Act to make technical corrections relating to the
amendments made by the Medical Device User Fee and
Modernization Act of 2002, and for other purposes; to the
Committee on Energy and Commerce.
By Mr. BEAUPREZ:
H.R. 3494. A bill to establish a National Commission to
study the Highway Trust Fund; to the Committee on
Transportation and Infrastructure, and in addition to the
Committee on Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of
such provisions as fall within the jurisdiction of the
committee concerned.
By Mr. BISHOP of Georgia:
H.R. 3495. A bill to amend the Robert T. Stafford Disaster
Relief and Emergency Assistance Act to modify eligibility
requirements under an emergency preparedness demonstration
program to assist disadvantaged communities; to the Committee
on Transportation and Infrastructure.
By Mr. BLUNT:
H.R. 3496. A bill to extend trade benefits to certain tents
imported into the United States; to the Committee on Ways and
Means.
By Mr. ENGLISH (for himself and Mr. Leach):
H.R. 3497. A bill to provide for the recovery, restitution,
and protection of the cultural heritage of Iraq; to the
Committee on Ways and Means.
By Mr. HOLT (for himself, Mrs. Jo Ann Davis of
Virginia, Mr. Hinchey, Mr. McHugh, Mr. Markey, Mr.
Sweeney, Ms. Kaptur, Mr. Boehlert, Mr. McGovern, Mr.
Souder, Mr. Rothman, Mr. McDermott, Mr. Blumenauer,
Mr. Larson of Connecticut, Mr. Lantos, Mr. Sanders,
Mr. Skelton, Mr. Cardin, Mr. Case, Mr. Waxman, Mr.
Cooper, Mr. Shays, Mr. Tom Davis of Virginia, and Mr.
Langevin):
H.R. 3498. A bill to amend the American Battlefield
Protection Act of 1996 to establish a battlefield acquisition
grant program for the acquisition and protection of
nationally significant battlefields and associated sites of
the Revolutionary War and the War of 1812, and for other
purposes; to the Committee on Resources.
By Ms. HOOLEY of Oregon:
H.R. 3499. A bill to provide extended unemployment benefits
to displaced workers, and to make other improvements in the
unemployment insurance system; to the Committee on Ways and
Means.
By Mr. JONES of North Carolina (for himself and Mr.
Goode):
H.R. 3500. A bill to prohibit the anticipated extreme
reduction in the national marketing quotas for the 2004 crop
of Flue-cured and Burley tobacco, which, if permitted to
occur, would mean economic ruin for tobacco farmers and their
families; to the Committee on Agriculture.
By Mrs. LOWEY:
H.R. 3501. A bill to grant an extension of authority for
the establishment of the Thomas Paine Memorial, and for other
purposes; to the Committee on Resources.
By Mr. PALLONE:
H.R. 3502. A bill to amend title II of the Social Security
Act to provide that a monthly insurance benefit thereunder
shall be paid for the month in which the recipient dies, and
for other purposes; to the Committee on Ways and Means.
By Mr. RANGEL:
H.R. 3503. A bill to establish a national Civilian
Volunteer Service Reserve program, a national volunteer
service corps ready for service in response to domestic or
international emergencies; to the Committee on Transportation
and Infrastructure.
By Mr. RENZI:
H.R. 3504. A bill to amend the Indian Self-Determination
and Education Assistance Act to redesignate the American
Indian Education Foundation as the National Fund for
Excellence in American Indian Education; to the Committee on
Education and the Workforce, and in addition to the Committee
on Resources, for a period to be subsequently determined by
the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee
concerned.
By Mr. WALDEN of Oregon:
H.R. 3505. A bill to amend the Bend Pine Nursery Land
Conveyance Act to specify the recipients and consideration
for conveyance of the Bend Pine Nursery, and for other
purposes; to the Committee on Resources.
By Mr. ENGLISH (for himself, Mr. Regula, Ms. Hart, Mr.
Aderholt, Mr. Quinn, Mr. Ney, Mr. Houghton, Mr.
Wilson of South Carolina, Mr. LaTourette, Mr. Hayes,
Mr. Brown of South Carolina, Mr. Boehlert, Mrs.
Myrick, and Mr. Bishop of Utah):
H. Res. 441. A resolution condemning the report issued on
November 10, 2003, by the World Trade Organization (WTO)
dispute settlement Appellate Body in which the Appellate Body
determined that imposition by the
[[Page 29277]]
United States of import restrictions on certain steel
products was in violation of international law, and for other
purposes; to the Committee on Ways and Means.
By Mr. OTTER (for himself and Mr. Simpson):
H. Res. 442. A resolution congratulating the United States
nuclear energy industry on its 50th anniversary; to the
Committee on Energy and Commerce.
____________________
MEMORIALS
Under clause 3 of rule XII,
214. The SPEAKER presented a memorial of the Senate of the
State of Michigan, relative to Senate Resolution No. 162
memorializing the United States Congress to increase funding
available for home heating assistance to cope with the rise
in natural gas costs expected in winter; jointly to the
Committees on Energy and Commerce and Education and the
Workforce.
____________________
ADDITIONAL SPONSORS
Under clause 7 of rule XII, sponsors were added to public bills and
resolutions as follows:
H.R. 211: Mr. Rangel, Ms. Norton, and Mr. Owens.
H.R. 333: Ms. Schakowsky.
H.R. 391: Mr. Burns.
H.R. 486: Mr. Stearns, Mr. Franks of Arizona, Mrs. Cubin,
Mr. Manzullo, and Mrs. Blackburn.
H.R. 528: Mr. Cox.
H.R. 538: Mr. Owens.
H.R. 677: Mr. Andrews.
H.R. 717: Mr. Snyder.
H.R. 742: Ms. Lofgren, Mr. Meek of Florida, Mr. Brown of
Ohio, and Ms. Carson of Indiana.
H.R. 775: Mr. DeFazio.
H.R. 811: Mr. Emanuel and Mr. Jefferson.
H.R. 857: Mr. Sullivan and Ms. Kaptur.
H.R. 876: Mr. Holden, Ms. McCarthy of Missouri, Mr.
Thompson of California, Mr. Aderholt, Mr. Hall, Ms. Norton,
Mr. Larsen of Washington. Ms. Eddie Bernice Johnson of Texas,
Mr. Beauprez, Mr. Sanders, Mr. McCotter, and Mr. Young of
Alaska.
H.R. 885: Mr. Baca.
H.R. 898: Mr. Graves.
H.R. 920: Mrs. Christensen.
H.R. 936: Ms. DeLauro.
H.R. 965: Mr. Frost.
H.R. 979: Ms. Millender-McDonald.
H.R. 1105: Mr. Houghton.
H.R. 1125: Mr. Becerra, Mr. Saxton, and Mr. Towns.
H.R. 1168: Mrs. Capps.
H.R. 1267: Mr. Jackson of Illinois.
H.R. 1345: Mrs. Capps and Mr. Green of Texas.
H.R. 1372: Mr. Cantor, Mr. Larsen of Washington, and Mrs.
Tauscher.
H.R. 1563: Mr. Berman, Mr. Honda, and Mr. Dingell.
H.R. 1700: Mr. Emanuel, Mr. Tierney, and Mr. Frank of
Massachusetts.
H.R. 1722: Mr. Honda and Mr. Rodriguez.
H.R. 1746: Mr. Smith of Washington, Mr. Matsui, and Mr.
Payne.
H.R. 1758: Mr. Sanders and Mr. Quinn.
H.R. 1787: Mr. Beauprez.
H.R. 1812: Mrs. Jones of Ohio.
H.R. 1824: Mr. Smith of Washington, Mr. Grijalva, Mr.
Jackson of Illinois, Mr. Rush, Mrs. Biggert, Mr. Gutierrez,
and Mr. Shimkus.
H.R. 1868: Ms. Schakowsky.
H.R. 1910: Mr. Saxton.
H.R. 1958: Mr. Emanuel and Mr. Owens
H.R. 1993: Mr. Brown of Ohio.
H.R. 2131: Mr. Porter and Mr. Tom Davis of Virginia.
H.R. 2236: Mr. Van Hollen and Mr. Lipinski.
H.R. 2239: Mr. Gutierrez.
H.R. 2318: Mr. Edwards and Mr. Ruppersberger.
H.R. 2404: Mr. Smith of Texas, Mr. Hoeffel, Mr. Stenholm,
and Mr. Castle.
H.R. 2456: Mr. Moran of Virginia.
H.R. 2494: Mr. Garrett of New Jersey.
H.R. 2519: Mrs. Biggert.
H.R. 2527: Mr. Spratt, Mr. Moran of Virginia, Mr.
Etheridge, and Mr. Levin.
H.R. 2540: Mr. LoBiondo, Mr. Ose, and Mr. Lipinski.
H.R. 2553: Mr. Doyle and Ms. Watson.
H.R. 2625: Mr. Lantos.
H.R. 2705: Mrs. Christensen and Mr. Strickland.
H.R. 2720: Ms. Hart.
H.R. 2768: Mr. Lewis of Georgia, Mr. Akin, Ms. Kilpatrick,
Mr. Davis of Tennessee, Mr. Markey, Mr. Meeks of New York,
Mr. Kildee, Mr. Boehlert, Mr. Gordon, Mr. Shaw, Mr. Burr, Mr.
Scott of Georgia, Mr. Tanner, Mr. Kline, Mr. McIntyre, and
Mr. Hoyer.
H.R. 2771: Mrs. Kelly.
H.R. 2851: Mr. Hoekstra.
H.R. 2880: Ms. Norton.
H.R. 2980: Mr. Boehlert, Mr. Camp, Ms. Carson of Indiana,
Mr. Houghton, Mr. Jefferson, Mrs. Kelly, Mr. Leach, Ms. Lee,
Mr. Levin, Mr. Lewis of Kentucky, Mr. McInnis, Ms. Millender-
McDonald, Mr. Moore, Mr. Pickering, Mr. Price of North
Carolina, Mr. Radanovich, Mr. Rogers of Michigan, Mr.
Sanders, Mr. Walden of Oregon, and Mrs. Wilson of New Mexico.
H.R. 2983: Mr. Gutierrez.
H.R. 3042: Mr. Barton of Texas.
H.R. 3058: Mr. LaTourette.
H.R. 3059: Mr. Ross, Mr. Boozman, and Mr. Snyder.
H.R. 3066: Mr. Owens, Mr. Goode, and Mr. Beauprez.
H.R. 3078: Mr. Michaud.
H.R. 3109: Mr. Calvert, Mrs. Jo Ann Davis of Virginia, Mr.
Tom Davis of Virginia, Mr. Gibbons, Ms. Granger, Mr. Green of
Wisconsin, Mr. Jenkins, Mr. King of New York, Mr. Kline, Mr.
Lewis of California, Mr. Linder, Mr. Murphy, Mr. Putnam, and
Mr. Wamp.
H.R. 3122: Mr. Peterson of Pennsylvania.
H.R. 3125: Mr. Culberson and Mr. Hall.
H.R. 3130: Mr. Wilson of South Carolina.
H.R. 3171: Ms. Norton.
H.R. 3178: Ms. Eshoo, Mr. Bartlett of Maryland, Mr.
Tierney, and Mr. Stenholm.
H.R. 3194: Mr. Ackerman, Mr. McNulty, Mr. Owens, Ms.
Millender-McDonald, and Mr. Lantos.
H.R. 3220: Mr. Moran of Virginia, Mr. Garrett of New
Jersey, Mr. Coble, Mr. Isakson, and Mr. Gallegly.
H.R. 3242: Mr. Rahall and Mr. George Miller of California.
H.R. 3247: Mr. Porter.
H.R. 3287: Mr. Shaw.
H.R. 3292: Mr. Meeks of New York, Mr. Scott of Georgia,
Mr. Frost, and Mr. Weller.
H.R. 3311: Mr. Simmons and Mr. Wilson of South Carolina.
H.R. 3313: Mr. Wamp.
H.R. 3341: Mr. Kucinich.
H.R. 3344: Ms. Lee, Mr. Van Hollen, and Mr. Menendez.
H.R. 3352: Ms. Carson of Indiana, Mr. Olver, Mr. Owens,
Mr. Capuano, Ms. Schakowsky, Ms. Norton, and Mr. Filner.
H.R. 3355: Ms. DeLauro.
H.R. 3357: Mr. Hostettler, Ms. Berkley, Mr. Simpson, and
Mr. Udall of New Mexico.
H.R. 3386: Mr. Sanders, Mr. Towns, and Mr. Rangel.
H.R. 3388: Mr. Vitter, Mr. McCotter, and Mr. Wilson of
South Carolina.
H.R. 3411: Mr. Lantos and Mr. Hastings of Florida.
H.R. 3416: Mrs. Jones of Ohio, Mr. McNulty, Mr. Hinchey,
Mr. Jackson of Illinois, and Mr. Cummings.
H.R. 3420: Mr. Sanders, Mr. Menendez, Mr. Acevedo-Vila, Mr.
Gonzalez, Mr. Cardoza, Mr. Markey, Ms. Millender-McDonald,
Mr. Oberstar, Mr. Hinchey, Mr. Ackerman, Mr. Berman, Mr.
Jackson of Illinois, Ms. Slaughter, Mr. Van Hollen, Ms.
Solis, Mr. Filner, Ms. Carson of Indiana, and Mr. Cummings.
H.R. 3422: Mr. Abercrombie, Mrs. Christensen, and Mr.
Capuano.
H.R. 3424: Mr. Van Hollen, Mr. Honda, Mr. Ackerman, Mr.
Jefferson, and Mr. Rodriguez.
H.R. 3425: Ms. Roybal-Allard, Mr. Doggett, Mrs. Jones of
Ohio, Ms. DeLauro, Mr. Honda, Mr. McDermott, Ms. Norton, and
Mr. Jefferson.
H.R. 3429: Mr. Wynn, Mr. Andrews, Mr. Norwood, Mr. Kirk,
and Mr. Burr.
H.R. 3431: Mr. Markey.
H.R. 3440: Mrs. Lowey, Mr. Markey, Mr. Johnson of Illinois,
Mr. Lynch, Ms. Lee, Mr. Frank of Massachusetts, Mr.
Alexander, and Mr. Tierney.
H.R. 3441: Mr. McGovern.
H.R. 3451: Mr. McDermott, Mr. Kildee, Mr. Grijalva, Mr.
Bachus, Mr. Sanders, and Mr. Ackerman.
H.R. 3459: Mr. Bishop of Georgia, Mr. Ballance, Ms. Corrine
Brown of Florida, Ms. Carson of Indiana, Mr. Clay, Mr.
Conyers, Mr. Davis of Alabama, Mr. Davis of Illinois, Mr.
Fattah, Mr. Ford, Mr. Hastings of Florida, Mr. Jackson of
Illinois, Ms. Eddie Bernice Johnson of Texas, Mrs. Jones of
Ohio, Ms. Kilpatrick, Ms. Lee, Mr. Lewis of Georgia, Ms.
Majette, Mr. Meek of Florida, Mr. Meeks of New York, Ms.
Millender-McDonald, Ms. Norton, Mr. Owens, Mr. Payne, Mr.
Rush, Mr. Scott of Georgia, Mr. Scott of Virginia, Mr.
Thompson of Mississippi, Mr. Towns, Ms. Waters, Ms. Watson,
Mr. Watt, Mr. Wynn, Mr. Serrano, Mr. Hinojosa, Ms. McCarthy
of Missouri, Mr. Udall of New Mexico, Mr. Crowley, and Mr.
Doggett.
H.R. 3467: Mr. Calvert.
H.R. 3473: Mr. Shays and Mr. Norwood.
H.R. 3488: Mr. Doggett.
H.J. Res. 62: Mr. Doyle.
H. Con. Res. 87: Mr. Schiff and Mr. Doyle.
H. Con. Res. 194: Mr. English, Ms. Hart, Mr. Platts, Mr.
Ford, Mr. Hastings of Florida, Mr. Wynn, Mr. Meeks of New
York, and Mr. Costello.
H. Con. Res. 247: Mr. Ramstad, Mr. Janklow, Mr. Sullivan,
Mr. Turner of Ohio, and Mr. Ehlers.
H. Con. Res. 250: Mr. Stearns, Mrs. Capps, Mr. Towns, Mrs.
McCarthy of New York, Mr. Hinchey, Mr. McNulty, and Mr.
Ackerman.
H. Con. Res. 288: Mr. Issa, Ms. Lee, Mr. Frank of
Massachusetts, Mr. LaHood, Ms. Ros-Lehtinen, Mr. Filner, Ms.
Solis, Mr. Ford, Mr. Emanuel, Mr. Udall of Colorado, and Mr.
Doyle.
H. Con. Res. 298: Mr. Moran of Kansas, Mr. Turner of Ohio,
and Mr. Whitfield.
H. Con. Res. 299: Ms. Solis.
[[Page 29278]]
H. Con. Res. 307: Mr. Case and Mr. Clay.
H. Con. Res. 311: Mr. Saxton and Mr. Ramstad.
H. Con. Res. 314: Mr. McNulty, Mr. Payne, and Mr. Israel.
H. Con. Res. 320: Mr. Burton of Indiana, Mr. Mica, Mr.
Boucher, Mr. Tancredo, Mr. Simmons, Mr. Beauprez, Mr. Rogers
of Alabama, Mr. Porter, Mr. Wilson of South Carolina, and Mr.
Vitter.
H. Con. Res. 324: Mr. Tanner, Mr. Hayworth, and Mr. Brady
of Texas.
H. Res. 38: Mr. Gutierrez.
H. Res. 129: Mr. Weiner.
H. Res. 141: Mr. Holt.
H. Res. 157: Mr. Chabot, Mr. Faleomavaega, Ms. Ros-
Lehtinen, Mr. George Miller of California, Mr. Tancredo, Mrs.
Christensen, Mr. Olver, Mr. Blumenauer, Mr. Sherman, Ms.
Pelosi, Mr. Burton of Indiana, Mr. Green of Wisconsin, Mr.
Nadler, Mr. Lipinski, and Mrs. Jones of Ohio.
H. Res. 320: Mrs. Maloney and Mr. Doyle.
H. Res. 384: Mr. Kucinich.
H. Res. 393: Ms. Slaughter.
H. Res. 402: Mr. Rogers of Michigan.
H. Res. 410: Mr. Frank of Massachusetts.
H. Res. 411: Mr. Buyer, Mr. Pence, Ms. Carson of Indiana,
Mr. Ose, Mr. Doolittle, Mr. George Miller of California, Ms.
Pelosi, Ms. Lee, Mr. Pombo, Mr. Lantos, Mr. Cardoza, Mr.
Radanovich, Mr. Sherman, Mr. Berman, Mr. Waxman, Ms. Watson,
Ms. Roybal-Allard, Ms. Waters, Ms. Millender-McDonald, Mr.
Baca, Mr. Calvert, Mrs. Bono, Mr. Rohrabacher, Mr. Issa, Mr.
Cunningham, Mr. Hunter, Mrs. Davis of California, Mr.
Matheson, and Mr. Hill.
H. Res. 419: Mr. Inslee.
H. Res. 432: Ms. Slaughter, Mr. Berman, and Ms. Carson of
Indiana.
H. Res. 438: Mr. Ramstad, Mr. Peterson of Minnesota, and
Ms. McCollum.
____________________
PETITIONS, ETC.
Under clause 3 of rule XII,
42. The SPEAKER presented a petition of Gregory D. Watson,
Austin, TX, relative to urging Congress to enact legislation
providing relief for the costs of prescription medications;
which was referred to the Committee on Energy and Commerce.
[[Page 29279]]
EXTENSIONS OF REMARKS
____________________
PRIVATE CALENDAR
______
HON. HOWARD COBLE
of north carolina
in the house of representatives
Monday, November 17, 2003
Mr. COBLE. Mr. Speaker, my colleagues, Mr. Chabot, Mr. Boucher, Mr.
Schiff, Mr. Grijalva, Mrs. Blackburn and I would like to take this
opportunity to set forth some of the history behind, as well as
describe the workings of the Private Calendar. I hope this might be of
some value to the Members of this House, especially our newer
colleagues.
Of the five House Calendars, the Private Calendar is the one to which
all Private Bills are referred. Private Bills deal with specific
individuals, corporations, institutions, and so forth, as distinguished
from public bills which deal with classes only.
Of the 108 laws approved by the First Congress, only 5 were Private
Laws. But their number quickly grew as the wars of the new Republic
produced veterans and veterans' widows seeking pensions and as more
citizens came to have private claims and demands against the Federal
Government. The 49th Congress, 1885 to 1887, the first Congress for
which complete workload and output data is available, passed 1,031
Private Laws, as compared with 434 Public Laws. At the turn of the
century the 56th Congress passed 1,498 Private Laws and 443 Public
Laws--a better than three to one ratio.
Private bills were referred to the Committee on the Whole House as
far back as 1820, and a calendar of private bills was established in
1839. These bills were initially brought before the House by special
orders, but the 62nd Congress changed this procedure by its rule XXIV,
clause six which provided for the consideration of the Private Calendar
in lieu of special orders. This rule was amended in 1932, and then
adopted in its present form on March 22, 1935.
A determined effort to reduce the private bill workload of the
Congress was made in the Legislative Reorganization Act of 1946.
Section 131 of that Act banned the introduction or the consideration of
four types of private bills; first, those authorizing the payment of
money for pensions; second, for personal or property damages for which
suit may be brought under the Federal tort claims procedure; third,
those authorizing the construction of a bridge across a navigable
stream, or fourth, those authorizing the correction of a military or
naval record.
This ban afforded some temporary relief but was soon offset by the
rising postwar and cold war flood for private immigration bills. The
82nd Congress passed 1,023 Private Laws, as compared with 594 Public
Laws. The 88th Congress passed 360 Private Laws compared with 666
Public Laws.
Under rule XXIV, clause six, the Private Calendar is called the first
and third Tuesday of each month. The consideration of the Private
Calendar bills on the first Tuesday is mandatory unless dispensed with
by a two-thirds vote. On the third Tuesday, however, recognition for
consideration of the Private Calendar is within the discretion of the
Speaker and does not take precedence over other privileged business in
the House.
On the first Tuesday of each month, after disposition of business on
the Speaker's table for reference only, the Speaker directs the call of
the Private Calendar. If a bill called is objected to by two or more
Members, it is automatically recommitted to the Committee reporting it.
No reservation of objection is entertained. Bills unobjected to are
considered in the House in the Committee of the Whole.
On the third Tuesday of each month, the same procedure is followed
with the exception that omnibus bills embodying bills previously
rejected have preference and are in order regardless of objection.
Such omnibus bills are read by paragraph, and no amendments are
entertained except to strike out or reduce amounts or provide
limitations. Matters so stricken out shall not be again included in an
omnibus bill during that session. Debate is limited to motions
allowable under the rule and does not admit motions to strike out the
last word or reservation of objections. The rules prohibit the Speaker
from recognizing Members for statements or for requests for unanimous
consent for debate. Omnibus bills so passed are thereupon resolved in
their component bills, which are engrossed separately and disposed of
as if passed separately.
Private Calendar bills unfinished on one Tuesday go over to the next
Tuesday on which such bills are in order and are considered before the
call of bills subsequently on the calendar. Omnibus bills follow the
same procedure and go over to the next Tuesday on which that class of
business is again in order. When the previous question is ordered on a
Private Calendar bill, the bill comes up for disposition on the next
legislative day.
Mr. Speaker, I would also like to describe to the newer Members the
Official Objectors Committee, the system the House has established to
deal with the great volume of Private Bills.
The Majority Leader and the Minority Leader each appoint three
Members to serve as Private Calendar Objectors during a Congress. The
Objectors are on the Floor ready to object to any Private Bill which
they feel is objectionable for any reason. Seated near then to provide
technical assistance are the majority and minority legislative clerks.
Should any Member have a doubt or question about a particular Private
Bill, he or she can get assistance from objectors, their clerks, or
from the Member who introduced the bill.
The great volume of private bills and the desire to have an
opportunity to study them carefully before they are called on the
Private Calendar has caused the six objectors to agree upon certain
ground rules. The rules limit consideration of bills placed on the
Private Calendar only shortly before the calendar is called. With this
agreement, adopted on November 17, 2003, the Members of the Private
Calendar Objectors Committee have agreed that during the 108th
Congress, they will consider only those bills which have been on the
Private Calendar for a period of seven (7) days, excluding the day the
bill is reported and the day the calendar is called. Reports must be
available to the Objectors for three (3) calendar days.
It is agreed that the majority and minority clerks will not submit to
the Objectors any bills which do not meet this requirement.
This policy will be strictly enforced except during the closing days
of a session when the House rules are suspended.
This agreement was entered into by: The gentleman from North Carolina
(Mr. Coble), the gentleman from Ohio (Mr. Chabot), the gentlelady from
Tennessee (Mrs. Blackburn), the gentleman from Virginia (Mr. Boucher),
the gentleman from California (Mr. Schiff), and the gentleman from
Arizona (Mr. Grijalva).
I feel confident that I speak for my colleagues when I request all
Members to enable us to give the necessary advance considerations to
private bills by not asking that we depart from the above agreement
unless absolutely necessary.
Howard Coble.
Steve Chabot.
Marsha Blackburn.
Rick Boucher.
Adam Schiff.
Raul Grijalva.
____________________
HONORING THE COX FAMILY
______
HON. GEORGE RADANOVICH
of california
in the house of representatives
Monday, November 17, 2003
Mr. RADANOVICH. Mr. Speaker, I rise today to honor the Cox Family for
its meritorious dedication to the United States Armed Forces. The Cox
family has exemplified heroism throughout the years through their
service during World War II and the Korean War.
The nine sisters and eight brothers of the Cox Family are the
children of (Joseph) Riley and Mattie Cox. Eleven of the 17 children
served in the United States Armed Forces with nearly 70 years combined
service. The family began enlisting in the Armed Forces in 1943.
Elijah, Warren, and Paula served in the United States Army. Mary,
Sonja, and Paul served in the United States Air Force, as did James who
had previously enlisted in the United States Army. Joseph served in the
United States Navy, along with Clarence who later joined the Army and
Air Force. Herbert first served in the
[[Page 29280]]
United States Maritime Service, then in the United States Army. Jerry
served over 20 years in the United States Coast Guard.
The Cox family's time in the service demonstrates their commitment to
our country. The contributions the Cox family made during our times of
war and peace have gone above and beyond the normal call of duty.
Mr. Speaker, I rise today to honor the Cox Family for its patriotism
and courageous efforts to promote freedom and democracy. I invite my
colleagues to join me in conveying deep gratitude to the Cox Family.
____________________
THE NATIONAL ANTHEM ``SINGAMERICA'' COMMEMORATION PROJECT
______
HON. TOM DAVIS
of virginia
in the house of representatives
Monday, November 17, 2003
Mr. TOM DAVIS of Virginia. Mr. Speaker, I rise today in strong
support of H. Con. Res. 262, the National Anthem ``SingAmerica''
Project, and to bring to the attention of my colleagues this wonderful,
new national initiative to commemorate American patriotic music and the
role it has played in our history. This new initiative will involve
several exciting music-related patriotic programs over the next 3
years.
The National Anthem ``SingAmerica'' project is designed to invigorate
and inspire the American people to a greater appreciation of their
patriotic musical heritage. Through this project, we will be able to
renew our appreciation for the patriotic music that so movingly
expresses our core national sentiments. The members of the National
Association for Music Education, in collaboration with the Smithsonian
Institution, and with support from the American Sportscasters
Association, are already actively pursuing the laudable goals of the
project.
The National Anthem ``SingAmerica'' project includes a series of
activities calculated to bring the music, words, and sentiments of the
Anthem and our nation's patriotic songs to everyone-and to energize the
participation of students and adults alike in this essential expression
of patriotism. America's youth will give voice to our national anthem
and be able to sing it proudly, accurately, and with a full
understanding of its rich text. The American Sportscasters Association
will be working to increase the emphasis on our national anthem at
major sporting events, reaching many of those who otherwise would not
have this musical experience. The National Association for Music
Education will release a CD with patriotic music played by the Marine
Band, complete with a history of this music's role in our nation's
development. Teachers' guides will be distributed across the nation to
help educators bring the practice and meaning of this music to our
nation's students.
All of this activity will culminate on June 14, 2006, when the
Smithsonian's National Museum of American's History unveils the newly
restored Star Spangled Banner. This event plans to include history's
largest performance of the National Anthem with millions of
participants from around the country joining thousands of high school
band and chorus members on the National Mall to celebrate the display
of the restored Star Spangled Banner, the Flag that inspired the
National Anthem.
Even more than producing these rousing patriotic events, the National
Anthem ``SingAmerica'' project is a catalyst for all Americans to
experience a greater understanding and appreciation of our patriotic
music history. It will also remind us of the countless sacrifices made
by so many and of the courage displayed by all Veterans' who have
served our country with great honor and pride.
Mr. Speaker, in closing, I am proud to introduce H. Con. Res. 262 and
to honor the flag and the song that are the symbols of America. I call
upon my colleagues for their unanimous support in passing the
SingAmerica Act.
____________________
PERSONAL EXPLANATION
______
HON. ROB PORTMAN
of ohio
in the house of representatives
Monday, November 17, 2003
Mr. PORTMAN. Mr. Speaker, on November 5, 2003, I was unavoidably
detained and missed the vote on rollcall No. 609 on H.R. 3365, the
Fallen Patriots Tax Relief Act. Had I been present, I would have voted
``yes.''
____________________
PAYING TRIBUTE TO MEIJER INC. AND UNITED PARCEL SERVICE FOR REACHING
OUT TO IRAQI ORPHANS
______
HON. MIKE ROGERS
of michigan
in the house of representatives
Monday, November 17, 2003
Mr. ROGERS of Michigan. Mr. Speaker, I rise today to honor the
compassionate actions of two Michigan businesses for reaching across
the globe to touch the lives of orphaned children living in an Iraqi
orphanage.
Leaders at Meijer Inc. and United Parcel Service learned that
soldiers in the U.S. Army 101st Airborne stationed near Mosul, Iraq,
were helping nearly 70 children in a nearby orphanage.
Meijer, a large supermarket/department store, immediately agreed to
donate several large cartons of toys for the children. United Parcel
Service supported the project, providing additional funds for toys.
In September, the toys were shipped to soldiers at the 101st mobile
military hospital near the orphanage and this past week, they were
distributed to the children.
These two generous organizations are to be commended for their
efforts that not only help the individual children but also impact the
relationships our military men and women are building with the citizens
of Iraq.
The long-range impact of this compassionate act by Americans is
immeasurable. As these children grow up, they will remember the care
and love of Americans who came to free their nation from tyranny and
give them a future with hope.
Mr. Speaker, we wish to extend congratulations to Meijer Inc. and
United Parcel Service for their generosity and for being willing to
reach across geographic and cultural borders to express their care and
concern for children in need.
We are honored to recognize their accomplishments and ask that our
colleagues in the U.S. House of Representatives join in recognizing
these Michigan businesses for their humanitarian efforts.
____________________
IN RECOGNITION OF LIONEL A. KAPLAN, ESQ.
______
HON. FRANK PALLONE, JR.
of new jersey
in the house of representatives
Monday, November 17, 2003
Mr. PALLONE. Mr. Speaker, I rise today to honor the esteemed Lionel
A. Kaplan, Esq., a man devoted to his community. On November 10, 2003
The Orthodox Union's Institute for Public Affairs, which serves the
Orthodox community as the central voice for public policy advocacy and
religious liberties, will present Mr. Kaplan with the National
Distinguished Leadership Award.
Mr. Kaplan's extraordinary devotion to Israel and his love of the
Jewish people have propelled his rise to the top levels of leadership
in the American Jewish community. In 1988, Mr. Kaplan joined the
American-Israel Public Affairs Committee, AIPAC, one of the leading
pro-Israel lobby groups, as chairman of the Princeton/Mercer Area, a
position he held until 2002. During those years, he also served as a
member of the AIPAC Executive Committee; Member of the New York
Regional Board; New Jersey State Chairman; Member of the National Board
of Directors; and National Development Chairman. In addition, Mr.
Kaplan became President of AIPAC from 1998-2000 and Chairman of the
Board from 2000-2002. Throughout his career in AIPAC, he has always
been known for his skills as a consummate fundraiser for pro-Israel
causes.
Mr. Kaplan's contributions to his community do not stop with AIPAC.
In the United Jewish Appeals, UJA, Federation, he served as a Member of
the UJA National Young Leadership Cabinet, as a leadership and
fundraising trainer at the UJA National Training Center, and has served
as Vice President of the Jewish Federations of New Jersey. In his
immediate community, Mr. Kaplan has assumed a variety of roles,
including Campaign Chairman and President of the Jewish Federation of
Princeton, Mercer, and Bucks Counties. Among his other community
services, he has been the chairman of the New Jersey ``Jerusalem 3000''
Committee, which planned and coordinated events for the 3000-year
anniversary of Jerusalem and Co-Chairman of the New Jersey Israel
Communications.
Mr. Kaplan has a graduate degree from Harvard University and has
received his J.D. from Rutgers University. He is a licensed attorney in
the Firm of Joseph D. Kaplan & Son, P.C., in Trenton where he has been
a partner since 1972. Mr. Kaplan is also a member of the American, New
Jersey, and Mercer County Bar Associations. He and his wife reside in
Princeton, New Jersey.
Mr. Speaker, Mr. Kaplan has demonstrated what it means to be a true
contributor to one's
[[Page 29281]]
community. The extensive list of his tireless efforts shows a genuine
compassion and devotion to public service. Accordingly, I ask that my
colleagues rise and join me in honoring Lionel A. Kaplan, Esq.
____________________
HONORING WILL GILL, JR., SENIOR FARMER OF THE YEAR
______
HON. GEORGE RADANOVICH
of california
in the house of representatives
Monday, November 17, 2003
Mr. RADANOVICH. Mr. Speaker, I rise today to honor Will Gill, Jr., as
the Madera County Chamber of Commerce and Madera County Farm Bureau
Senior Farmer of the Year. Mr. Gill will be recognized at the Madera
County Farm Bureau's 82nd Annual Members Meeting and Senior Farmer
Presentation on November 6 in Madera, CA.
Will's dedication to his country and his strong work ethic have
brought much success for him and his family. He has contributed 61
years to Madera County agriculture. Mr. Gill's family, natives of Iowa,
migrated to Porterville, CA, in the 1870s and an agriculture legacy
began. By the 1940s, the family's ranching operations were flourishing
in Porterville and Madera. Upon the death of his father, Will, and his
wife Jane, moved from Southern California to Madera to manage the
family's local agriculture interests. Not long after his arrival, he
was sent to Fort Sill, OK, where the U.S. Army needed his service in
the midst of WWII. Mr. Gill served as an army sergeant of the Military
Police in the China-Burma-India Theatre. In 1946, Will returned to
Madera and resumed his work in the family's crop and livestock
investments, which included oat and alfalfa hay, cows, and stocker and
feeder cattle.
As a proud member of many organizations and the recipient of several
awards, Will is no stranger to his community. He served on Governor
Ronald Reagan's Advisory Committee on Foreign Trade, was past-president
of the Madera Rotary Club, a member of the Madera County Air Pollution
Board, a 60-year member of the California Cattlemen's and National
Cattlemen's Associations, and the list goes on. Will was named Madera
County Cattleman of the Year in 1963 and California Livestock Man of
the Year in 1972. His favorite venture, raising quarter horses, has
made his 53-year membership to the American Quarter Horse Association
particularly enjoyable. The list of Will's achievements and commitments
goes on, reinforcing his benevolent character.
Mr. Speaker, I rise today to congratulate Will Gill, Jr., for being
named Senior Farmer of the Year by the Madera Chamber of Commerce and
Madera County Farm Bureau. His contributions to America's agriculture
communities have been invaluable. I invite my colleagues to join me in
commending Mr. Gill for this achievement.
____________________
HONORING MASTER FOLTA
______
HON. TOM DAVIS
of virginia
in the house of representatives
Monday, November 17, 2003
Mr. TOM DAVIS of Virginia. Mr. Speaker, I would like to congratulate
Master Nestor Folta on his 50th birthday and 20 years of successful
Uechi-Ryu Karate study.
Master Folta is a civil engineer with the U.S. Department of Energy.
He resides in Oakton with his wife and two children. For years, he has
dedicated notable time and energy to the study and teaching of Uechi-
Ryu Karate.
Uechi-Ryu is traditional Okinawan Karate, developed by Master Kanbun
Uechi and his son Kanei Uechi. Uechi-Ryu has its origin in the ancient
Chinese tradition of martial arts. Today, it is the only form of
Okinawan Karate that remains in its original Soke, handed down from
father to son from generation to generation.
Master Folta is a seven-time world champion of Uechi-Ryu and an
inductee in the martial arts hall of fame. He has demonstrated a strong
aptitude for and commitment to the study of karate.
The Academy of World Champion Nestor Folta (AWCNF), located in
Fairfax County, carries on the Uechi-Ryu tradition. Through the study
of Uechi-Ryu Karate, over 100 AWCNF students learn self-defense, self-
discipline, and self-respect. Uechi-Ryu encourages the formation of
high personal standards and respect for fellow men and women. The
AWCNF's mission is to use Uechi-Ryu to help students become positive,
successful, respected, contributing members of society.
Each year, AWCNF tuition raises an estimated $25,000 for Fairfax
County. In addition, the AWCNF has raised over $20,000 for 9/11
victims.
Mr. Speaker, in closing, I would like to recognize Master Folta's
efforts to better himself, his students, and his community through the
practice of Uechi-Ryu. I wish him a happy birthday, commend 20 years of
success, and extend him all of my best for the years to come. I call
upon all my colleagues to join me in applauding Master Folta.
____________________
HONORING WILLIAM J. MULVI-HILL, SR. AS HE RECEIVES THE ARTHRITIS
FOUNDATION'S CHARLES B. HARDING AWARD FOR DISTINGUISHED SERVICE
______
HON. ROB PORTMAN
of ohio
in the house of representatives
Monday, November 17, 2003
Mr. PORTMAN. Mr. Speaker, I rise today to honor William J. Mulvihill,
a friend and constituent, who received the Arthritis Foundation's
prestigious Charles B. Harding Award during the Foundation's national
meeting on November 14, 2003. The Arthritis Foundation is the only
nationwide nonprofit organization leading efforts to prevent, control
and cure arthritis, which is our nation's number one cause of
disability.
The Charles B. Harding Award is the highest honor the Arthritis
Foundation presents for service as a volunteer. The award was
established in 1976 and is given annually to the individual who best
exemplifies the highest standards of concern and commitment to the
arthritis cause. Previous recipients of this high honor include former
First Lady Betty Ford and actress Jane Wyman.
Bill has spent more than 20 years raising awareness and advocating on
behalf of the more than 43 million people affected by arthritis and its
related diseases. Diagnosed with rheumatoid arthritis at the age of 25,
he became active locally in the Southwestern Ohio Chapter of the
Arthritis Foundation, and went on to serve as Senior Chair, Chair and
Vice President.
In 1985, Bill became active with the Foundation on the national
level, becoming a member of the House of Delegates and later National
Vice Chair, Treasurer, a member of the Board of Trustees and National
Chair. As National Chair, he was responsible for leading nearly 600,000
volunteers and staff nationwide. He is currently Trustee Emeritus, and
is a member of the National Medical and Scientific Council. Bill also
serves on the Board of Directors of the Alliance for Lupus Research,
where he is a founding member.
A native Cincinnatian, Bill is Senior Associate Athletic Director at
the University of Cincinnati, and has been with U.C. for 30 years. He
is in his 24th year as head of the athletic department's fundraising
efforts, and previously held positions in Alumni Affairs and Public
Affairs. He is a graduate of St. Xavier High School, and received his
Bachelor's of Business Administration from the University of Cincinnati
and his Master's of Education from Ohio University.
Bill and his wife, Beth, live in Anderson Township. Their son, Billy,
is a graduate of the University of Cincinnati and is a valued member of
the staff of the U.S. House of Representatives' Committee on Ways and
Means.
All of us in Southern Ohio congratulate Bill on receiving this
prestigious honor, and appreciate his dedicated service.
____________________
RECOGNITION OF THE ARMED FORCES RELIEF TRUST FUND
______
HON. MIKE ROGERS
of michigan
in the house of representatives
Monday, November 17, 2003
Mr. ROGERS of Michigan. Mr. Speaker, I rise today to recognize the
outstanding efforts of the National Association of Broadcasters for
their partnership with the Armed Forces Relief Trust Fund. The Armed
Forces Relief Trust Fund serves as an umbrella organization
incorporating the four Military Aid Societies from the Army, Navy-
Marine, Air Force and Coast Guard collecting and distributing donations
that help reduce the burden on families of our military men and women.
The partnership with National Association of Broadcasters will help
create and broadcast public service announcements to encourage
Americans to donate to the Armed Forces Relief Trust Fund.
[[Page 29282]]
While our military men and women are serving our country, it is
paramount that the American people band together so that we can ensure
that no family incurs hardships while their loved one is away. Military
aid programs, funded by private donations, provide services like
college tuition for children and health care for pregnant wives,
services that could have been provided if their family member had not
been called to duty. Last year alone, the four military aid societies
provided over $109 million in grants and interest free loans to 145,000
families.
I am confident that with the help of the National Association of
Broadcasters the Armed Forces Relief Trust Fund can far exceed the
number of families it was able to help last year. As an increasing
number of Americans answer the call to duty, more and more families
will be asking the Armed Forces Relief Trust Fund for help. The public
service announcements developed by The National Association of
Broadcasters will help to increase donations and insure that the trust
fund has the solvency to answer this call.
Mr. Speaker, the continued support of the brave men and women serving
this country is extremely important to me. I ask my colleagues to join
me in thanking the National Association of Broadcasters and the Armed
Forces Relief Trust Fund for their assistance to our troops.
____________________
IN RECOGNITION OF BISHOP DONALD HILLIARD, JR.
______
HON. FRANK PALLONE, JR.
of new jersey
in the house of representatives
Monday, November 17, 2003
Mr. PALLONE. Mr. Speaker, I rise today to laud the accomplishments of
Bishop Donald Hilliard, Jr. Bishop Hilliard is a man of conviction and
dedication, as well as an inspiration to his community. This year, the
Cathedral International Church is celebrating twenty years of
excellence under the leadership of Bishop Donald Hilliard.
Bishop Hilliard is someone who places a high value on education. He
earned his Bachelor of Arts degree from Eastern University in St.
David's, Pennsylvania. He later earned a Master of Divinity degree from
Princeton Theological Seminary, and was awarded a Doctorate of Ministry
degree from the United Theological Seminary in Dayton Ohio. Yet, Dr.
Hilliard's accomplishments extend far beyond academia. His list of
achievements range from economic and community developer to spiritual
leader.
Bishop Hilliard always approaches life with a positive attitude, as
revealed in his trademark ``Say Yes'' services at the Second Baptist
Church in Perth Amboy, New Jersey. At the age of 26, Bishop Hilliard
became the Church's Senior Pastor. Since then, the church has grown
from 125 members in 1983 to over 7,000 members today. What started out
as one church has grown to three located in urban settings throughout
New Jersey. Dr. Hilliard's faith and inspirational words draws people
from out the tri-state area of New York, Pennsylvania, and New Jersey.
The Cathedral is recognized as a growing and influential church and as
been cited by American Baptist churches, USA as a model church for
growth.
In 1995, Bishop Hilliard was consecrated a bishop and is currently
the presiding Bishop and founder of the Ecumenical Fellowship and
Cathedral assemblies, Inc. In this role, Bishop Hilliard serves as the
spiritual advisor and mentor for several pastors and churches across
America and West Africa. The Bishop has also established the Clergy
Leadership Institute where innovative leaders from different
denominational backgrounds gather to confront and minister to various
issues faced by the clergy daily, as well as to expand their
theological and social horizons.
Bishop Hilliard and his church have been cited numerous times by the
city of Perth Amboy and the State of New Jersey for their contributions
to community development. Today, I rise to ask this national body to
recognize the accomplishments of this esteemed gentleman. Mr. Speaker,
a man such as Bishop Hilliard should be an inspiration to us all. He
has given so much of his life to serving others in need. Accordingly, I
ask that my colleagues rise and join me in honoring Bishop Donald
Hilliard, Jr.
____________________
CONGRATULATING THE HOMENETMEN SCOUTS FRESNO SASSOON CHAPTER
______
HON. GEORGE RADANOVICH
of california
in the house of representatives
Monday, November 17, 2003
Mr. RADANOVICH. Mr. Speaker, I rise today to congratulate the
Homenetmen Scouts Fresno Sassoon Chapter on their 30th Anniversary.
There will be a banquet held in their honor on Saturday, November 15 in
Fresno, CA.
In its 30th year, the Homenetmen Scouts Fresno Sassoon Chapter
strives to encourage Fresno's Armenian youth to be involved in
competitive sports and Armenian Boy Scouts activities, while forming an
efficient organization that preserves the grace of Armenian language
and culture. Since its establishment in 1973, the organization's main
purpose has been twofold: to provide the Armenian youth with a moral
and physical education outside of the school environment; and teaching
them the richness of Armenian culture while accepting and participating
in the culture that surrounds them. Comprised of disciplinary and
athletic divisions, the Fresno Chapter boasts ten basketball teams
spanning a variety of ages, and a strong Troop 12 Armenian Boy Scouts
group. The Homenetmen Scouts Fresno Sassoon Chapter is part of the
world-wide organization with over 25,000 members on five continents.
The Armenian General Athletic Union and Scouts known as Homenetmen,
is a nonprofit organization which was founded 85 years ago in
Constantinople by Shavarsh Krisian, Hovhannes Hintlian, and Krikor
Hagopian. The organization promotes a sense of fraternity and
humanitarianism, which extends far beyond mere camaraderie and
benevolence. Homenetmen's motto, ``Elevate yourself and others with
you,'' is a poignant reminder of the fundamental objective to strive
for individual and collective excellence. In the United States, the
first Homenetmen Olympic Games took place in Brooklyn, NY, in 1922,
though the organization was not officially established in America until
1932 with chapters in New York, New Jersey, and Boston. From that point
on, Homenetmen organized chapters in the communities wherever there was
a large concentration of Armenians.
Mr. Speaker, it is my pleasure to congratulate the Homenetmen Scouts
Fresno Sassoon Chapter on its 30th anniversary. I urge my colleagues to
join me in wishing them many years of continued success.
____________________
HONORING HARRIS D. ARLINSKY (RET.), USA GREEN BERETS
______
HON. TOM DAVIS
of virginia
in the house of representatives
Monday, November 17, 2003
Mr. TOM DAVIS of Virginia. Mr. Speaker, I rise today to recognize LTC
Harris David Arlinsky (retired) for 50 years of service to our country.
This past June marks the 50th anniversary of when he volunteered for
the Army National Guard at 17 years old. He did so proudly. After
serving in the regular Army for a few years, Colonel Arlinsky attended
college at the University of Arizona. He set his sights on being an Air
Force pilot; unfortunately, his blurry vision made this impossible.
Upon graduation and accepting a commission in the U.S. Army, then-
Second Lieutenant Arlinsky attended training for the newly created U.S.
Special Forces. The Special Forces, also known as the Green Berets, are
the best of the best and have been instrumental in countless conflicts.
Colonel Arlinsky knew he belonged with the elite forces and passed
their extremely difficult tests to gain the coveted Green Beret.
As a Green Beret, he commanded a ``B'' Team for the Fifth Special
Forces Group in Pleiku, Vietnam. He served two tours and was involved
in pushing back Vietcong forces during the Tet Offensive. After the
Vietnam War, Colonel Arlinsky continued to serve our nation through
various Special Forces projects. Eventually, he left active duty to
serve the civilian intelligence services, maintaining reserve status.
During the Reagan administration, Harris Arlinsky worked directly for
Vice President George Bush as the Special Intelligence Advisor for the
National Narcotics Border Interdiction System for the southwest U.S.
border region. While in the region, he also commanded a U.S. Special
Forces ``B'' team with five ``A'' teams in Texas and New Mexico. Upon
completion of the assignment, he returned to Virginia to assist with
other national intelligence agencies.
Today he is enjoying his retirement as a college professor, spending
time with his wife, Kathleen; his children Beth, Abra, and Michael; and
his grandson, Elias.
Mr. Speaker, in closing, I would like to commend COL Harris Arlinsky
for his service to
[[Page 29283]]
our Nation. He nobly has dedicated his life to the safety and well
being of the United States of America. As COL Harris Arlinsky continues
to celebrate his 50th anniversary of his first month of service to us,
let us thank him and all our soldiers for their sacrifices. I ask that
my colleagues join me in saluting COL Harris Arlinsky.
____________________
TRIBUTE TO M. DEAN HAINES
______
HON. JIM SAXTON
of new jersey
in the house of representatives
Monday, November 17, 2003
Mr. SAXTON. Mr. Speaker, I rise today to pay tribute to M. Dean
Haines on the occasion of his retirement as clerk of Ocean County.
As one of the County's Constitutional Officers, he has been
responsible for the administration of a wide range of services offered
by the Office of the County Clerk for two decades.
Serving the community is the main focus of the Clerk's Office,
including assisting residents in real estate transfers, obtaining
passports, courtesy photo identification and Alcoholic Beverage Control
Cards, and supervision of elections in the county. Dean's office has
been recognized as the most technologically advanced County Clerk's
Office in our State, thanks to his leadership and innovation.
Dean Haines' involvement in many community service organizations such
as his membership on the Southern Ocean County Hospital Board of
Trustees, the Southern Ocean County Rotary, Jersey Shore Council Boy
Scouts of America, Alcoholism and Drug Abuse Council of Ocean County,
Barnegat Historical Society, and both Barnegat Fire Company Number One
and the New Jersey State Fireman's Association is a demonstration of
his commitment to the people of Ocean County.
I have always valued his friendship and support through the years. I
hope Dean and his wife, Christine, will accept my congratulations and
best wishes for a retirement filled with health, happiness, and dreams
come true.
____________________
CONFERENCE REPORT ON H.R. 1588, NATIONAL DEFENSE AUTHORIZATION ACT FOR
FISCAL YEAR 2004
______
speech of
HON. ELLEN O. TAUSCHER
of california
in the house of representatives
Friday, November 7, 2003
Mrs. TAUSCHER. Mr. Speaker, I have mixed emotions as I consider the
fiscal year 2004 defense authorization conference report.
I would like to thank my chairman, Mr. Hunter, and Ranking Member
Skelton for working with me on several items that will benefit the
people in my district, Travis Air Force Base, and our military airlift
capabilities overall.
Indeed, the language in the bill expediting the transfer of land from
the Navy to the Housing Authority of the City of Dixon will improve the
living and work conditions of migrant workers who contribute to the
local economy.
The language preventing the Secretary of the Air Force from retiring
C-5A aircraft until one has been modernized and tested is a crucial
measure that not only sustains a critical investment in upgrading one
of the United States' most reliable transport planes, but it also
ensures that Travis Air Force Base will continue to be an important
provider of strategic lift in the near future.
The bill also contains a number of important provisions for our men
and women in uniform such as an increase in base pay; a reduction in
housing expenses; an increase in family separation allowance; and an
increase in the rate of special pay for our brave troops who serve in
hostile situations and imminent danger.
Despite these important positive elements, the bill contains several
reckless provisions that undermine the security of the United States
and needlessly jeopardize civilian employees and the environment.
This bill puts the United States back in the business of making
nuclear weapons, adds unnecessary regulations that hamstring the DOD's
nonproliferation programs, takes away the protections of civilian
personnel, and gratuitously endangers the environment.
By lifting the ban on research and development of low yield nuclear
weapons, Congress is abetting the administration's efforts to build a
new generation of nuclear weapons; is inviting an arms race with rogue
states, terrorists and allies; and is making a nuclear conflict more
likely in the long run by undoing decades of American leadership in
controlling the spread of the most deadly weapons known to man.
The Defense Bill, rather than increasing the budget for the DOD's
valuable cooperative threat reduction programs that dismantle and
destroy weapons of mass destruction in the former Soviet Union, adds
unnecessary funding restrictions that in the end will only hurt the
security of the American people.
The broad environmental exemptions provided for in the bill will
undermine efforts to protect our environment by, among other things,
making it harder to wall-off parts of military facilities as protected
areas for wildlife.
Proponents use spin to claim this is necessary for military
readiness, but it's hard to see how a blanket environmental exemption
for everything on military installations from golf courses to swimming
pools are pressing matters of national defense.
Moreover, the Pentagon can already get waivers from the Endangered
Species Act and the Marine Mammal Protection Act when national security
is at stake. But in the three decades since these laws have been in
effect, not a single waiver has been sought.
The bill also abolishes DOD's long-standing labor relations system
and replaces it with one in which civilian employees have only minimal
consultation with unions and Congress.
The bill allows DOD to remove basic due process rights that employees
currently enjoy by waiving their right to a written response, their
right to be represented by an attorney, and their right to a written
decision explaining the action.
I am deeply disturbed that the Republican Party has hijacked an
important bill for our troops and attached to it a radical slash-and-
burn ideology that is sure to undermine civilian morale at the
Pentagon, needlessly endanger the environment and most alarmingly,
endanger the American people with an irresponsible nuclear agenda.
I am voting for this bill because I do not believe, especially in a
time of war, we should punish our active troops by withholding funds
and measures that would benefit them because of some of the
administration's imprudent and over-reaching provisions in the bill.
____________________
HONORING SPC. JAMES ``JIMMY'' ANDERSON CHANCE, III
______
HON. CHARLES W. ``CHIP'' PICKERING
of mississippi
in the house of representatives
Monday, November 17, 2003
Mr. PICKERING. Mr. Speaker, I rise this evening before the House to
pay tribute to Specialist James ``Jimmy'' Chance of Kokomo,
Mississippi. Specialist Chance was a member of the Mississippi Army
National Guard serving in C Company of the 890th Battalion attached to
the Army's 3rd Armored Cavalry Regiment in Iraq.
Tragically, Specialist Chance was killed on Thursday, November 6,
2003, when his vehicle struck a landmine near the Syrian border. He was
the first of our own Mississippi National Guardsmen to lose his life
while bravely serving in the Iraq War.
Specialist Chance is a true American hero who has paid the ultimate
price to protect our country from terrorists and defend the liberties
of the citizens of the United States of America. Furthermore, he has
unselfishly given his life to win freedom for the people of Iraq who
suffered under the unbearable rule of an evil dictator. These are
people he did not know, but yet, he has helped give millions of Iraqi
men, women, and children, the chance to live lives of freedom and
independence like we know at home in the United States.
Even though I know his family is enduring great suffering as a result
of their loss, I hope they will find peace in knowing that Specialist
Chance bravely served his country and his countrymen and defended the
values and principles that Americans hold so dear. Specialist Chance
was a defender of peace and a lion of liberty.
Specialist James Anderson Chance, III, represents the best of
Mississippi and our Nation. I ask my colleagues in Congress to join me
in honoring his courageous service, and ask that you pray that his
family will find peace during this trying time.
____________________
A TRIBUTE TO THE WOMEN'S SOCIAL AND CULTURAL SOCIETY OF MOSUL
______
HON. DEBORAH PRYCE
of ohio
in the house of representatives
Monday, November 17, 2003
Ms. PRYCE of Ohio. Mr. Speaker, as the leader of the first all
women's United States
[[Page 29284]]
Congressional Delegation to Iraq, it is my pleasure on behalf of
Representatives Jennifer Dunn, Sue Kelly, Ileana Ros-Lehtinen, Marsha
Blackburn, Katherine Harris, Darlene Hooley and Carolyn McCarthy, to
commend the excellent work being done at the Women's Social and
Cultural Society of Mosul. Today, with great honor and privilege, I
would like to recognize the major milestones the organization has
achieved.
The Women's Social and Cultural Society, comprised of more than 200
members, represents a variety of ethnic, religious and professional
affiliations. These women are truly creating a new ideal within their
country as they promote social, political and educational equality for
all Iraqis. For too long, Iraqi women have suffered without equal or
even adequate access to education, justice within the legal system,
employment opportunities, and representation within the government. The
members of the Women's Social and Cultural Society of Mosul must be
applauded for their commitment to end decades of oppression against
women by fighting to give them a voice and a respected role of
leadership within their communities. The challenge is immense, but
their determination is steadfast and unwavering.
We commend and praise the Women's Social and Cultural Society of
Mosul today and urge our colleagues to wish them continued success as
they pave the way for future generations of Iraqi citizens.
____________________
IN HONOR OF HILARY KITASEI
______
HON. ELIOT L. ENGEL
of new york
in the house of representatives
Monday, November 17, 2003
Mr. ENGEL. Mr. Speaker, Riverdale is a fortunate community in that
not only do the people who live here care for it, but newcomers after
they arrive also do their best to make it even better.
Hilary Kitasei came to our community a few short years ago and in
that relatively brief time has made a lasting impression on her new
neighborhood and on how the community looks. She first took on a rather
desolate piece of wasteland at Fieldston Road at the Henry Hudson
Parkway overpass and using her considerable abilities transformed it
into a woodland glade that is a highlight of the neighborhood.
It was planted by the students from almost all of the local schools
as well as neighbors and is now a part of the New York City Parks
Department Greenstreets Program.
Setting her eyes on a larger project she is spearheading the
development of the Hudson Scenic Byway Program to create New York
State's first urban scenic byway.
Riverdale, and by extension all of New York City, is lucky to have
such people as Hilary Kitasei. I join all of our community in thanking
her for the wonderful things she has done.
____________________
CONGRATULATING DR. GLORIA BROMELL-TINUBU ON HER APPOINTMENT AS THE 5TH
PRESIDENT OF BETHUNE COOKMAN COLLEGE
______
HON. KENDRICK B. MEEK
of florida
in the house of representatives
Monday, November 17, 2003
Mr. MEEK of Florida. Mr. Speaker, I rise today to congratulate Dr.
Gloria Bromell-Tinubu on becoming the 5th president of Bethune-Cookman
College in Daytona Beach, Florida.
An educator and a community leader, Dr. Bromell-Tinubu is an
economics professor at Spelman College in Atlanta, and was a former
member of the Georgia State Board of Education. She is currently the
chief executive officer of the Atlanta Cooperative Development Board, a
nonprofit agency that serves as a catalyst in developing cooperative-
owned business enterprises. Within 9 months as CEO, she obtained a $1
million grant to assist the economically disadvantaged move toward
self-sufficiency, and continues research that explores the use of
cooperatives as a means of establishing economic security in asset-poor
communities.
Dr. Bromell-Tinubu is a former member of the Atlanta City Council who
has considerable community development experience, as shown by
legislation she authored creating the Atlanta Neighborhood Deputies
Program, a citywide citizen driven code enforcement effort. She has
served on numerous community development boards, including the
Metropolitan Neighborhood Development Corporation (MNDC), which she
founded.
In taking the helm of Bethune-Cookman College, Dr. Bromell-Tinubu
becomes the fifth president of this private coeducational liberal arts
college with a diverse student population of more than 2,700.
Established in 1904 by Mary McLeod Bethune, the college is ranked among
the top historically black colleges in the country. Most recently
Bethune-Cookman College was selected as one of 10 colleges in the
country to participate in Project Pericles, a program funded by the
Eugene Lang Foundation to establish educational programs for social
responsibility and participatory citizenship as an essential part of
higher education learning, in the classroom, on the campus, and in the
community.
The Bethune Cookman College could not have found a more perfect fit
to fulfill their goals and mission. I know that all of my colleagues
join me in congratulating Dr. Gloria Bromell-Tinubu today, and we wish
her every success in her future.
____________________
HONORING SPECIAL AGENT LEANNE G. CHARETTE ON THE OCCASION OF HER
RETIREMENT
______
HON. ROSA L. DeLAURO
of connecticut
in the house of representatives
Monday, November 17, 2003
Ms. DeLAURO. Mr. Speaker, it is with great pleasure that I stand to
join the many family, friends, and colleagues who have gathered today
to extend my sincere congratulations to Leanne G. Charette on the
occasion of her retirement marking the end of a thirty-two year career
with the Internal Revenue Service.
When the average American thinks about the Internal Revenue Service,
often they only contemplate the time, energy, and paperwork it takes to
file an annual tax return. While the Internal Revenue Service is
charged with the task of collecting revenue, they are also responsible
for ensuring the protection of American citizens from fraud and
evasion. Every day we hear the stories of corporations and individuals
who seek to undermine the government through waste, mismanagement, and
fraud. It is through the efforts of Special Agents like Ms. Charette
that American taxpayers are saved millions in lost revenue.
Throughout her career, Leanne Charette has demonstrated a unique
commitment to public service. As a Special Agent with the Criminal
Investigation Division of the Internal Revenue Service, she has been an
active member of several complex investigations. As a member of the
Health Care Fraud Task Force, she worked with representatives from
several federal agencies to identify abuses in the health care field
which were used to help develop health care reforms. More recently, Ms.
Charette worked on a task force investigating a massive insurance fraud
responsible for bilking insurance companies in several states of assets
in excess of two hundred million dollars. Her efforts helped to
identify several problems with the industry and the results will go a
long way in helping to establish solutions to these issues. More
importantly, the task force has been able to recover most of the stolen
assets which will be distributed to the victims.
Too often, we overlook the tireless efforts of those in public
service. Throughout her career, Ms. Charette has exemplified all that a
public servant should be. Her commitment and diligence has earned her
the respect and admiration of her colleagues and all of those with whom
she has worked. For her many years of dedicated service, I am proud to
rise today to extend my heart-felt congratulations to Leanne G.
Charette as she joins her husband, Dick, in retirement. My very best
wishes to you both for many more years of health and happiness.
____________________
TRIBUTE TO DR. YJEAN CHAMBERS OF GARY, INDIANA
______
HON. PETER J. VISCLOSKY
of indiana
in the house of representatives
Monday, November 17, 2003
Mr. VISCLOSKY. Mr. Speaker, it is with great remorse that I rise
today to pay tribute to one of Gary, Indiana's most dedicated and
caring citizens, Dr. YJean Chambers. YJean passed away on Wednesday,
November 12th at Methodist Hospital after a longtime illness. Her
efforts as a distinguished educator as well as her numerous
contributions to her community are worthy of the highest commendation
and recognition.
YJean and her family moved to Gary, Indiana from Kentucky when she
was a young
[[Page 29285]]
girl, seeking a better life for themselves. In 1939, she graduated from
Gary Roosevelt High School ranking second in her class, and then went
on to earn her Bachelor of Education degree from Illinois State
University. She also went on to earn her Master of Arts degree from
Purdue University, where she received Purdue University's highest
award, Doctor of Humane Letters in 1993.
YJean knew how important education was to all members of her
community and therefore shared her gift of knowledge and enthusiasm for
learning by becoming a teacher in Madison, Illinois. After two years
she began teaching speech and drama at her alma mater, Gary Roosevelt
High School. In 1971, YJean became a full time professor at Purdue
Calumet in Hammond, Indiana where she taught communications and was
appointed Assistant Professor of Communications in 1973.
YJean gave selflessly to her community in so many ways, including
being a member of several volunteer and service organizations. She
served as President of the Steel City Hall of Fame, sat on the Service
Academies Nomination Board, was a member of the Board of Trustees of
the Gary Community Schools, and was also a member of the Board of
Directors of the Indiana School Board Association. YJean made history
in Northwest Indiana by becoming the first African American woman
elected to the Northwest Indiana Crime Commission and the first woman
to serve on the Advisory Board of the Bank of Indiana.
Although she dedicated her life to serving her community, YJean never
limited the time she gave to her loving family. She is survived by her
husband Mr. Herman Chambers, and their son Lanel.
Mr. Speaker, YJean Chambers was a caring and committed woman who gave
of herself in so many ways to her community. I respectfully ask that
you and my other distinguished colleagues join me in paying tribute to
Dr. YJean Chambers, she will be remembered honorably and truly missed.
____________________
TRIBUTE TO JOSHUA PETERS
______
HON. MIKE PENCE
of indiana
in the house of representatives
Monday, November 17, 2003
Mr. PENCE. Mr. Speaker, it is with great pleasure that I pay tribute
today to Joshua Peters of Muncie, Indiana. Joshua is an Army medic
currently serving in the 3rd Armored Cavalry Regiment in Iraq. This
soldier's recent unselfishness and courageous acts of aiding to his
fellow comrades demonstrated true American heroism. The citizens of
Indiana's Sixth Congressional District, joined by all Americans, are
proud of Joshua's extraordinary actions displayed toward his fellow
Americans.
Earlier this month, one of two Chinook helicopters transporting
soldiers to Baghdad International Airport for their R&R flights home to
the United States was shot down. The second helicopter did an immediate
harsh landing to assist the brave men aboard the downed Chinook. As
Joshua and his fellow regiment members ran to help the injured, they
came under heavy gunfire without any protective gear, weapons, or
medical supplies readily available. Joshua was initially the only medic
at the scene and attended to the wounded for more than 2 hours. During
this time, Joshua's thoughts remained solely with the health and safety
of his fellow servicemen. ``God, don't let anything happen to me that
would render me unable to help these guys--help me, Lord.''
Mr. Speaker, I am honored today to rise and pay tribute to Joshua
Peters, a man who by his actions has demonstrated a promise to help
defend America's freedom. Heroes emerge from the significant events
happening in Iraq, and I am proud to say that Joshua Peters is among
them.
Mr. Speaker, it is my great privilege to stand today and honor Joshua
Peters of Muncie, Indiana before Congress and the Nation.
____________________
HONORING THE ARTISTIC CONTRIBUTIONS OF CLIFF SEGERBLOM
______
HON. JON C. PORTER
of nevada
in the house of representatives
Monday, November 17, 2003
Mr. PORTER. Mr. Speaker, I rise today to pay tribute to the life-long
artistic contributions of Cliff Segerblom to the Southern Nevada
community. The Boulder City Arts Council will present ``Hanging with
Cliff,'' a diverse selection of the artists works.
The works of Mr. Segerblom chronicle the history of the ever-changing
Nevada landscape from his original assignment as the official
photographer for the Bureau of Reclamation at the Hoover Dam in 1938
until his passing in 1980. Throughout this period, Cliff used a variety
of media in portraying our environs in Southern Nevada, from the
natural beauty that surrounds us to the feats of human endeavor that
inspire us. I wish to thank Boulder City's most famous artist, and I
urge all residents of Nevada to acquaint themselves with the powerful
work of Mr. Cliff Segerblom.
____________________
RECOGNIZING VINCENT M. COULDRY FOR ACHIEVING THE RANK OF EAGLE SCOUT
______
HON. SAM GRAVES
of missouri
in the house of representatives
Monday, November 17, 2003
Mr. GRAVES. Mr. Speaker, I proudly pause to recognize Vincent M.
Couldry, a very special young man who has exemplified the finest
qualities of citizenship and leadership by taking an active part in the
Boy Scouts of America, Troop 60, and in earning the most prestigious
award of Eagle Scout.
Vincent has been very active with his troop, participating in many
Scout activities. Over the 9 years Vincent has been involved with
Scouting, he has earned over 60 merit badges and has held numerous
leadership positions, serving as patrol leader, chaplain,
quartermaster, and Cub Scout leader. Vincent had been involved with the
Tribe of Mic-O-Say for 3 years and is in the Warrior Class.
For his Eagle Scout project, Vincent landscaped an area around
Savannah High School and Savannah City Tennis Courts in Savannah,
Missouri. With the assistance of 22 other Scouts and leaders, Vincent
planned, gathered the needed materials, and mulched 78 trees.
Mr. Speaker, I proudly ask you to join me in commending Vincent M.
Couldry for his accomplishments with the Boy Scouts of America and for
his efforts put forth in achieving the highest distinction of Eagle
Scout.
____________________
TRIBUTE TO TIM McCARTHY
______
HON. SCOTT McINNIS
of colorado
in the house of representatives
Monday, November 17, 2003
Mr. McINNIS. Mr. Speaker, it is with a solemn heart that I rise today
to pay tribute to the passing of a great man from my district. Tim
McCarthy, a descendant of one of Pueblo, Colorado's pioneer families,
was an enthusiastic figure who was known for his knowledge about Pueblo
and its residents. His passing is a great loss for the Pueblo
community, and I would like to take this opportunity to remember his
life before this body of Congress.
After graduating from Pueblo Catholic High School, Tim spent a year
studying Theater at the Pasadena Playhouse before completing a music
degree at Northwestern University. Upon graduation, Tim moved back to
Pueblo and became a dynamic music teacher who inspired his students to
respect their fellow man. In 1957, Tim joined his father in the family
funeral home business. He was a well-known art and theater enthusiast,
and organized Tri-Hi Inc., a group dedicated to entertaining troops at
military bases.
Tim loved to share his knowledge of Pueblo's history with others. On
any given day, he could be found explaining historical events to his
many friends and family members throughout town. Tim was a caring man
who loved tradition and sought to keep it alive through educating his
community on its past.
Mr. Speaker, Tim McCarthy was a compassionate human being who touched
the lives of everyone he met. I am honored to pay tribute to a
phenomenal soul who encouraged happiness and kindness in his community.
Pueblo has lost a great man who exemplified the inner beauty that comes
from a life-long pursuit of community service. My thoughts and prayers
go out to Tim's family during this time of bereavement.
____________________
A TRIBUTE TO RALPH DICKERSON, JR. AND GLORIA DENNA DICKERSON
______
HON. EDOLPHUS TOWNS
of new york
in the house of representatives
Monday, November 17, 2003
Mr. TOWNS. Mr. Speaker, I rise in honor of Ralph and Gloria Dickerson
in recognition of their commitment and service to their community.
[[Page 29286]]
Ralph Dickerson, Jr. has served honorably as the President of United
Way of New York City since May 1988. As President of United Way of New
York City, he has led the organization into the position of being the
largest private funder of health and human services in New York City
and as a major force in forging bold new solutions to the city's most
critical human care challenges.
Under his leadership, United Way of New York City's revenue has grown
from $75.1 million to $135 million, making it the largest United Way in
the nation. In addition, United Way of New York City has used its
extensive knowledge of community-based human service agencies to broker
and partner with government, foundations and business in ground
breaking initiatives that are successfully addressing the city's human
care issues and the high dropout rate.
Ralph has held key executive positions for 30 years in local United
Ways including St. Louis, Missouri; Madison, Wisconsin; Cleveland,
Ohio; and Pittsburgh, Pennsylvania. He holds a B.S. in Business
Administration; and he received a M.B.A. from the University of
Wisconsin.
Ralph and Gloria are the proud parents of two children, daughter,
Maria Renee (deceased), and Ralph III. Their son, Ralph III and
daughter-in-law, Michelle, have given them two grandsons, Cameron and
Garrett and a granddaughter, Lauren.
Gloria is the President of Maral Enterprises, Inc., The Learning
Tree, and Copy Bee, which she started in May 1988. Maral is a
children's book distribution company while the Learning Tree, and Copy
Bee are retail stores offering teachers, parents and children a full
line of educational books, materials and learning guides. This
entrepreneurial business came about as a result of Mrs. Dickerson's
written bibliography and review of children's books mostly written by
African-American authors.
Prior to this business venture, she served as Assistant Dean at the
University of Wisconsin and Cleveland State University. She began her
career as a special education teacher. Gloria holds a B.S. in Special
Education, an M.S. degree, and completed her work toward a Ph.D. in
educational psychology at the University of Missouri.
Gloria serves on educational, civic and volunteer organizations,
boards and as a Trustee at her daughter's school, The Winchester
Thurston in Pittsburgh. She is a member of several professional
organizations including the Alpha Kappa Alpha National Sorority.
Ralph has served as a Director with several civic and corporate
organizations and has received numerous city awards and honorary
degrees. He was also inducted into the Alpha Kappa Psi Honorary
Business Fraternity.
Mr. Speaker, Ralph and Gloria Dickerson have both made significant
contributions to their community through both their professional and
voluntary endeavors. As such, they are more than worthy of receiving
our recognition today and I urge my colleagues to join me in honoring
these truly remarkable people.
____________________
COMMENDING THE NATIONAL ASSOCIATION OF BROADCASTERS AND THE ARMED
FORCES RELIEF TRUST
______
HON. ROY BLUNT
of missouri
in the house of representatives
Monday, November 17, 2003
Mr. BLUNT. Mr. Speaker, I rise in support of an important initiative
undertaken by the National Association of Broadcasters and the Armed
Forces Relief Trust.
With over 140,000 troops stationed in Iraq, in Afghanistan, and
around the world, military families' budgets are stretched thin. In
many cases, the personnel deployed are the sole breadwinners for their
family, making it difficult to cope with unexpected expenses.
Last year, the relief agencies for each branch of the military raised
and distributed over $109 million in assistance to military families in
need. This year, with the support of the National Association of
Broadcasters and its local radio and television station members, the
four relief agencies have come together to form the Armed Forces Relief
Trust.
In support of that effort--and to help respond to the escalating
needs of military families, the NAB and its 6,000 radio station and
1,000 television station members have produced, distributed and aired
Public Service Announcements to raise monies for the Trust.
Considering recent events in Iraq, I think Americans everywhere are
looking for ways to support our troops. The AFRT provides valuable
services to the family members of our brave men and women who are
fighting terrorism abroad. The program pays for airfare so personnel
can fly home to the funeral of a loved one.
It provides needed medical attention for the spouses of military
personnel. It can help offset the cost of college tuition for the child
of a soldier. While the military is dedicated to taking care of its
own, the needs will only continue to escalate as the length of
deployments stretch out. The Trust can help make up for some of the
shortfall.
By providing access to the airwaves, local television and radio
stations are supporting what I believe to be an important and timely
cause.
I'm therefore well aware that deployments are not only emotionally
trying for military families, but financially trying as well.
I therefore commend the AFRT for providing needed relief to these
families and the National Association of Broadcasters for helping get
out the word.
____________________
PERSONAL EXPLANATION
______
HON. SOLOMON P. ORTIZ
of texas
in the house of representatives
Monday, November 17, 2003
Mr. ORTIZ. Mr. Speaker, due to business in my district, I was unable
to vote during the following rollcall votes. Had I been present, I
would have voted as indicated below.
Rollcall No. 612, ``yes''; rollcall No. 613, ``yes''; rollcall No.
614, ``yes''; rollcall No. 615, ``yes''; rollcall No. 616. ``yes'';
rollcall No. 617. ``yes''; rollcall No. 618, ``no''' rollcall No. 619,
``yes.''
____________________
RECOGNIZING SHAUN THOMAS DIAMOND FOR ACHIEVING THE RANK OF EAGLE SCOUT
______
HON. SAM GRAVES
of missouri
in the house of representatives
Monday, November 17, 2003
Mr. GRAVES. Mr. Speaker, I proudly pause to recognize Shaun Thomas
Diamond, a very special young man who has exemplified the finest
qualities of citizenship and leadership by taking an active part in the
Boy Scouts of America, Troop 374, and in earning the most prestigious
award of Eagle Scout.
Shaun has been very active with his troop, participating in many
Scout activities. Over the 9 years Shaun has been involved with
Scouting, he has held numerous leadership positions, serving as
assistant senior patrol leader, assistant patrol leader, patrol leader,
and librarian. Shaun has been involved with the Tribe of Mic-O-Say and
is a Keeper of the Sacred Bundle. He also served on staff for 2 years
at H. Roe Bartle Scout Reservation.
For his Eagle Scout project, Shaun led a group of boys and adults in
the removal of the obsolete woodland trail header and in the
construction of a new woodland trail header for Martha Lafite Thompson
Nature Sanctuary. The new header will be enjoyed by many visitors and
has increased the safety of the trail.
Mr. Speaker, I proudly ask you to join me in commending Shaun Thomas
Diamond for his accomplishments with the Boy Scouts of America and for
his efforts put forth in achieving the highest distinction of Eagle
Scout.
____________________
TRIBUTE TO STAR BAR
______
HON. SCOTT McINNIS
of colorado
in the house of representatives
Monday, November 17, 2003
Mr. McINNIS. Mr. Speaker, I rise before you today to pay tribute to a
remarkable small business in my district. The Star Bar in Pueblo,
Colorado has been serving customers and its community for nearly a
century, and it is my privilege to recognize its longevity and
dedication to its customers here today.
Over the years, a variety of owners have operated the renowned Star
Bar. The bar's current proprietors, Louis and Linda DeNiro, bought the
establishment approximately five years ago. Despite changes in
ownership, the Star Bar has remained a constant in the lives of many
Puebloans. In fact, little has changed since the business was featured
in an issue of National Geographic. Due to its undeniable appeal, The
Star Bar has been bringing customers back for decades, and will surely
continue to do so for years to come.
Mr. Speaker, dining establishments such as the Star Bar hold a
special and important place in communities across the nation. Their
customers find comfort in the consistently
[[Page 29287]]
warm and friendly service. I am honored to stand here today before this
body of Congress and this nation to recognize Pueblo's Star Bar and its
many years of tremendous service.
____________________
A TRIBUTE TO CHARLES E. SIMPSON, ESQ.
______
HON. EDOLPHUS TOWNS
of new york
in the house of representatives
Monday, November 17, 2003
Mr. TOWNS. Mr. Speaker, I rise in honor of Charles E. Simpson, in
recognition of his commitment and service to his community and his
outstanding accomplishments in the field of law.
Charles is an attorney and a partner of Windels Marx Lane &
Mittendorf, LLP., and chairs the firm's Bankruptcy, Corporate
Restructuring and Workouts Practice Group. He is also a member of the
Litigation and Real Estate Practice Groups.
Since 1981, Charles has served as one of the counsels to the
Honorable Edolphus Towns of the 10th Congressional District, Brooklyn,
New York. In addition, he is a former member of the Board of Directors
of the Brooklyn Children's Museum, the Brooklyn Red Cross, the Queens
Society for the Prevention of Cruelty to Children, and the Brooklyn
Area Council of the Boy Scouts of America. From 1983 through 1987, Mr.
Simpson served as Brooklyn's Representative on the Board of Directors
of the then New York City Public Development Corporation. He also
served as counsel to the Bed-Stuy/Crown Heights Area Health Plan and
the Brooklyn Navy Yard Development Corporation. He was a member of the
New York State Bar Association's Committee on Minorities in the
Profession from 1987 to 1992.
Charles, who served in the U.S. Army from 1969-1972, graduated magna
cum laude from Pepperdine University in Los Angeles, California in 1974
and received his law degree in 1977 from Harvard. He was named a Martin
Luther King Jr. Fellow in 1974.
Mr. Speaker, Charles E. Simpson has dedicated his time to an array of
local activities and causes, often using his legal expertise for the
betterment of the community. As such, he is more than worthy of
receiving our recognition today and I urge my colleagues to join me in
honoring this truly remarkable person.
____________________
COMMENDING STUDENTS IN FREE ENTERPRISE 2003 WORLD CUP CHAMPION TEAM
FROM DRURY UNIVERSITY
______
HON. ROY BLUNT
of missouri
in the house of representatives
Monday, November 17, 2003
Mr. BLUNT. Mr. Speaker, I rise today to commend the Students In Free
Enterprise (SIFE) 2003 World Cup Champion Team from Drury University in
Springfield, Missouri. These exceptional university students
demonstrated on an international stage what it means to practice free
enterprise with common sense in a socially and ethically responsible
manner. Drury University's SIFE team prepared both a live presentation
and a written report of their activities over the past year and
competed against students from 30 countries to receive this prestigious
award. A panel of 18 international business leaders, including
representatives from KPMG, Wal-Mart, Sara Lee and Pepsi-Co, named Drury
University's SIFE Team World Cup Champions for the second time in three
years.
SIFE students are making a positive impact in their community and
beyond, through service projects that teach entrepreneurship, market
economics, ethics and financial responsibility to struggling business
owners, school children and economically disadvantaged individuals. By
applying the concepts they are learning in the classroom to everyday
life, they are taking the guesswork out of economic theory.
Drury University's SIFE team worked on a number of projects over the
past year, helping high school students develop a t-shirt company that
is self-sustaining and student-run. The Drury team also established an
entrepreneurial camp to teach young people in southwest Missouri's
growing Hispanic communities the entrepreneurial skills needed to
develop their own businesses.
Drury University SIFE team volunteered more than 5,000 hours of
service to their community last year. The students at Drury, however,
are not alone. SIFE teams around the world engaged in hundreds of
thousands of hours of community service, impacting millions of people.
Too often, the energy and idealism of our youth are never fully
utilized. In SIFE, young people are given an opportunity to contribute
meaningfully to their society. It is encouraging to see bright,
passionate college and university students work to ``change the world''
with a common sense approach that stimulates economic empowerment.
Mr. Speaker, I commend the achievements of Alvin Rohrs, the President
and CEO of Students In Free Enterprise, and his team of co-workers at
the SIFE World Headquarters in Springfield, Missouri. His leadership
has enabled SIFE to plant the seeds of free enterprise on campuses
across our nation and around the world. Mr. Rohrs and his team work
tirelessly to ensure the principles of free enterprise are firmly
rooted in the hearts and minds of college and university students on
more than 1,500 campuses worldwide. By encouraging social
entrepreneurship among SIFE students, Mr. Rohrs and his staff have
fostered real change in countries around the globe. In Ghana, SIFE
teams taught impoverished villagers how to make and market soap from
locally available resources. For the first time in that community,
money now changes hands, and the people who live there have a source of
income. Alvin Rohrs and his team are also supporting programs in places
where free enterprise education is rare. In China, a SIFE team is
helping managers of a state-owned enterprise privatize the business and
develop a plan for success in the face of an emerging market economy.
The success of SIFE has been well documented by both the national and
international business community. Business and industry leaders
frequently participate in SIFE competitions, judging SIFE teams and
scouting future business leaders. They see and understand the
importance of SIFE to the economic future of our nation and our world,
as we all learn to compete in a global market that emphasizes education
and communication.
Mr. Speaker, I want to congratulate the students from Drury
University's SIFE team. These students may be completing their studies
on a small campus in southwest Missouri, but they are making a
difference. Along with their peers in 37 countries, these young people
are changing the world, one person, one community and one project at a
time.
____________________
HONORING GLEN AND LYNN TOBIAS
______
HON. NITA M. LOWEY
of new york
in the house of representatives
Monday, November 17, 2003
Mrs. LOWEY. Mr. Speaker, I rise today to congratulate my friends Glen
and Lynn Tobias as they are honored for their distinguished leadership
by the Anti-Defamation League. The Tobias' years of service, integrity,
and commitment should serve as an example to all of us. I ask unanimous
consent to submit a letter of congratulations I recently sent them.
November 10, 2003.
Glen and Lynn Tobias
Anti-Defamation League,
New York, NY.
Dear Glen and Lynn: I write with such respect, admiration,
and gratitude for your invaluable contributions to the Anti-
Defamation League. The ADL's Distinguished Leadership Award
is a fitting tribute to your years of service to this vital
institution, and I am proud to join with those who honor you
as you receive the recognition you both so deeply deserve.
A key aspect of your leadership has been your constant
willingness to battle against all forms of racism and
intolerance. The dramatic rise in global anti-Semitism over
the past few years threatens to undermine the stability and
progress we seek in the Middle East, Europe, and around the
world. Through your efforts, the ADL has led the counter-
attack against this scourge, by seeking to measure the rise
in anti-Semitism and to address it in meetings with key heads
of state and foreign ministers, as well as at an
international conference meant to bring Jewish and non-Jewish
leaders together to create a strategy to combat the problem.
On our own shores, your efforts to educate the public have
been greatly appreciated. You have led crucial initiatives to
expand ADL's education programs on campuses and schools,
especially about hate crime prevention. You also educated the
public and Members of Congress on the threats to religious
liberty and civil rights by federal and state voucher
programs for private and religious schools--an effort greatly
welcomed by myself and my colleagues on the Hill.
For all these reasons and many more, you are richly
deserving of the ADL's Distinguished Leadership Award. I
would like to thank you once again for your friendship and
years of service to ADL, to the United States, and to the
global community, which have all benefited from your wisdom,
your
[[Page 29288]]
diligence, and your desire for equity and peace.
Sincerely,
Nita M. Lowey,
Member of Congress.
____________________
RECOGNIZING SAMUEL THEODORE HUCKE IV FOR ACHIEVING THE RANK OF EAGLE
SCOUT
______
HON. SAM GRAVES
of missouri
in the house of representatives
Monday, November 17, 2003
Mr. GRAVES. Mr. Speaker, I proudly pause to recognize Samuel Theodore
Hucke IV, a very special young man who has exemplified the finest
qualities of citizenship and leadership by taking an active part in the
Boy Scouts of America, Troop 374, and in earning the most prestigious
award of Eagle Scout.
Sammy has been very active with his troop, participating in many
scout activities. Over the years Sammy has been involved with Scouting,
he has earned 38 merit badges and has held numerous leadership
positions, serving as Patrol Leader, Assistant Patrol Leader, Den
Chief, and Assistant Senior Patrol Leader. Sammy has been involved with
the Tribe of Mic-O-Say and is a Keeper of the Sacred Bundle. He also
served on staff for three years at H. Roe Bartle Scout Reservation.
For his Eagle Scout project, Sammy constructed three road signs for
Camp Shawnee, a Campfire USA camp. The new signs will help direct new
campers and visitors to the camp facilities.
Mr. Speaker, I proudly ask you to join me in commending Samuel
Theodore Hucke IV for his accomplishments with the Boy Scouts of
America and for his efforts put forth in achieving the highest
distinction of Eagle Scout.
____________________
TRIBUTE TO HAROLD JAMES BOYD
______
HON. SCOTT McINNIS
of colorado
in the house of representatives
Monday, November 17, 2003
Mr. McINNIS. Mr. Speaker, it is with a solemn heart that I rise to
pay tribute to the passing of a great man from my District. Harold
James Boyd, better known as Father Theo, served the Old Snowmass Saint
Benedict's Monastery with dedication and commitment until his death on
October 8th of this year. Father Theo will be remembered as a valued
member of the Snowmass community, and I am honored to bring his many
contributions to his community to the attention of this body of
Congress.
Father Theo entered the monastic life in 1950 at St. Joseph's Abbey
in Spencer, Massachusetts. After his first charge, he spent the rest of
his years at Saint Benedict's Monastery, where he served as retreat
director, confessor, and cantor. Father Theo was also an accomplished
author who published a book entitled ``Tales of the Magic Monastery''
in 1981.
Mr. Speaker, Harold James Boyd was a warm and generous soul who
selflessly gave his life to inspire others. Throughout his life, Father
Theo touched many lives and I am honored to pay tribute to such an
extraordinary man.
____________________
A TRIBUTE TO WESNER MOISE, M.D.
______
HON. EDOLPHUS TOWNS
of new york
in the house of representatives
Monday, November 17, 2003
Mr. TOWNS. Mr. Speaker, I rise in honor of Wesner Moise, M.D. in
recognition of his commitment and service to his community and his
outstanding accomplishments in the field of medicine.
Wesner is the director of Geriatric Medicine at Interfaith Medical
Center. He has been a solo practitioner at the same Brooklyn location
for 27 years. He earned his medical degree from the State University of
Haiti. He joined St. Johns Episcopal Hospital, now Interfaith Medical
Center, for a rotative internship after completing an additional six-
month rotation in pathology. He spent the next three years in the
Department of Medicine and became chief resident. He remained very
active in the Institution and served on different committees: Quality
Assurance, Infection Control and the Medical Executive Committee.
Wesner has always had a special interest in the elderly. He provides
free seminars to senior centers, screening examinations and flu
vaccine. He is also a founding member of the Haitian Association of
Physicians Abroad (AMHE), New York Chapter and frequently lectures on
health care issues affecting the Haitian community. He is a member of
the American College of Physicians, the New York State Medical Society,
Kings County Medical Society and American Geriatric Society.
Dr. Moise and his wife Mireille, an artist, have been married for
thirty-three years. They are very proud of their three children who all
graduated from Harvard University. Patrick, an entrepreneur, is
developing a software company in Seattle, Washington. Astrid is an
aspiring academic cardiovascular surgeon. She is presently doing
research on stem cells and angiogenesis at the University of
Pennsylvania. Michael, a financial analyst, is presently pursuing his
MBA at Columbia University. The Moises are the quintessential
``Interfaith Family.'' His wife and four sisters all worked as
registered nurses at Interfaith.
Dr. Moise's philosophy can be summarized as follows: Be all you can
be, make a difference for your community, be a role model for your
children, and be supportive of your family.
Mr. Speaker, Wesner Moise, M.D. has dedicated his time and medical
expertise to the community through his own practice and his work at
Interfaith Medical Center. As such, he is more than worthy of receiving
our recognition today and I urge my colleagues to join me in honoring
this truly remarkable person.
____________________
IN HONOR OF GARY A. BELLER
______
HON. CAROLYN B. MALONEY
of new york
in the house of representatives
Monday, November 17, 2003
Mrs. MALONEY. Mr. Speaker, I rise today to pay tribute to Gary A.
Beller of New York, in recognition of his retirement from an
extraordinarily accomplished and distinguished career of over thirty
years in the corporate legal profession.
The practice of law is itself a worthy pursuit. It is an
accomplishment to do outstanding work for outstanding companies, as Mr.
Beller has done for two venerable giants of the financial services
industry--American Express early in his career and more recently
MetLife. But what I have learned is that the preeminent characteristic
of the career of Gary Beller is his devotion to best practices and
legal excellence; setting the standard for highly ethical and skilled
legal work and consistently exceeding that standard out of sheer
energy, talent, and sense of responsibility.
As 2003 draws to a close, Gary Beller retires from his position as
senior executive vice president and general counsel for MetLife. Mr.
Beller joined MetLife in November 1994 and has since overseen the
company's extensive legal affairs group as well as the mergers and
acquisitions department. One of the notable accomplishments of his
tenure at MetLife was his contribution to bringing the company public
in 2003 from its previous status as a mutual company. MetLife became
one of the most widely held public stocks as result of the successful
completion of the transaction.
This is the kind of high quality work that has made Gary Beller well
known and respected professionally. To those who know him and work with
him, Mr. Beller personifies the best of the corporate legal profession.
The perfect example is his chairmanship of the Insurance Marketplace
Standards Association, an organization devoted to establishing the best
in ethical market conduct for the insurance industry.
In addition to his professional success, Mr. Beller has also been a
leader in his community. He served as Chairman of the Board of
Directors of the Citizens Crime Commission of New York for 10 years and
remains a Vice Chairman today. He is also a member of the Board of
Directors of Lenox Hill Neighborhood House, one of New York City's
renowned social service agencies.
In recognition of his outstanding accomplishments, I ask my
colleagues to join me in honoring the dedication and service of Gary
Beller as he retires from MetLife. He is a role model of civic
involvement, corporate loyalty and professionalism, and service to the
legal profession. He deserves our congratulations and well wishes as he
begins his retirement.
[[Page 29289]]
____________________
RECOGNIZING JAMES RILEY TEETER FOR ACHIEVING THE RANK OF EAGLE SCOUT
______
HON. SAM GRAVES
of missouri
in the house of representatives
Monday, November 17, 2003
Mr. GRAVES. Mr. Speaker, I proudly pause to recognize James Riley
Teeter, a very special young man who has exemplified the finest
qualities of citizenship and leadership by taking an active part in the
Boy Scouts of America, Troop 351, and in earning the most prestigious
award of Eagle Scout.
James has been very active with his troop, participating in many
scout activities. Over the 4 years James has been involved with
scouting, he has earned 32 merit badges and has held numerous
leadership positions, serving as Patrol Leader, Quartermaster, Scribe,
Assistant Patrol Leader, and Troop Guide. James is also a Brotherhood
Member in the Order of the Arrow and is a Warrior in the Tribe of Mic-
O-Say.
For his Eagle Scout project, James repaired the restroom facilities
at the Platte County Fairgrounds in Tracy, Missouri. He pressure
washed, painted, and mortared the restrooms, and also cleaned up the
surrounding ground.
Mr. Speaker, I proudly ask you to join me in commending James Riley
Teeter for his accomplishments with the Boy Scouts of America and for
his efforts put forth in achieving the highest distinction of Eagle
Scout.
____________________
TRIBUTE TO AL KELLY
______
HON. SCOTT McINNIS
of colorado
in the house of representatives
Monday, November 17, 2003
Mr. McINNIS. Mr. Speaker, it is my honor to rise and pay tribute to a
remarkable man from my district. Alfred E. Kelly from Alamosa,
Colorado. He has dedicated his life to the betterment of others, and I
am proud to call his contributions to this body of Congress.
Al has been the Director of the San Luis Valley Health Education
Center for the last 25 years. His tenure in this position has been
defined by his brilliance and unwavering dedication. Over the past
quarter century, Al has been instrumental in the creation and
administration of numerous charitable organizations, including the Tu
Casa battered women's program, Hospice De Valle, and the Casa de Oro
Center.
Al is also a founding member of the Valley Community Fund, an
organization that assists 31 non-profit organizations in their fund
raising efforts. He has also spearheaded numerous community programs
for the benefit of low-income students, senior citizens and patients.
Despite his steadfast dedication to those in need, Al is a loving and
devoted father, husband and friend. His engaging personality, integrity
and conviction result in Al having a positive impact on everyone he
meets. Scores of people throughout the San Luis Valley and our State
have had their lives enhanced as the result of their interactions with
Al.
Mr. Speaker, it is my honor to pay tribute to Al Kelly. Al's selfless
dedication to serving those in need is a shining example to all
Americans. The many charitable organizations that Al has supported are
a testament to his altruistic spirit. On behalf of the countless people
he has helped, and a grateful Nation, I would like to thank Al for all
that he has done.
____________________
CONGRATULATIONS TO SENATOR RICHARD J. CODEY, PRESIDENT OF THE NEW
JERSEY SENATE
______
HON. DONALD M. PAYNE
of new jersey
in the house of representatives
Monday, November 17, 2003
Mr. PAYNE. Mr. Speaker, I am pleased to rise today to recognize an
outstanding public servant from my home state, Senator Richard J.
Codey; as he ascends to the position of President of the New Jersey
Senate. Senator Codey is being honored by his many friends and family
members at a special ceremony at the Essex County Hall of Records in
Newark.
Senator Codey has established an outstanding reputation for both his
legislative achievements and his contributions to the community.
Senator Codey was elected to the Assembly in 1973 and re-elected three
times. He has served in the Senate since 1981. He represents the 27th
legislative district, which includes Caldwell, Essex Fells, Fairfield,
Livingston, Maplewood, North Caldwell, Orange, Roseland, South Orange,
West Orange, and part of Newark. Senator Codey was selected Senate Co-
President for the 210th Legislative Session beginning January 8, 2002.
He will be selected President at the 211th Session of the Legislature
in January, 2004. Senator Codey was Senate Minority leader from 1998
until 2002. He chaired the Senate Health, Institutions and Welfare
Committee from 1982 to 1992, and has been a champion of the mentally
ill and disabled in state institutions and group homes statewide. As a
result of an undercover investigation he initiated, strict background
checks and improved training standards for all employees of state
psychiatric institutions were put into effect.
Senator Codey has received numerous honors and awards, including the
state Psychiatric Association's ``Citizen of the Year'' award and the
state Mental Health Association's service award.
A graduate of Fairleigh Dickinson University, Senator Codey is a
licensed insurance broker and president of the Olympic Agency. He is
married to the former Mary Jo Rolli. They are the proud parents of two
sons, Kevin and Christopher.
Mr. Speaker, I ask my colleagues here in the U.S. House of
Representatives to join me in congratulating Senator Codey and wishing
him all the best as he continues his outstanding public service.
____________________
THE IMPORTANCE OF SELECTING MIAMI AS THE PERMANENT SECRETARIAT OF THE
FREE TRADE AREA OF THE AMERICAS AND THE VITAL PROTECTION OF FLORIDA
CITRUS
______
HON. ILEANA ROS-LEHTINEN
of florida
in the house of representatives
Monday, November 17, 2003
Ms. ROS-LEHTINEN. Mr. Speaker, South Florida is honored, as leaders
from over thirty nations from the Western Hemisphere convene in my
beautiful hometown of Miami to discuss what is to be one of the largest
free trade agreements in history.
The FTAA would be the world's largest free market, with combined GDP
of nearly $13 trillion in over 30 countries, and nearly 800 million
consumers. The creation of the FTAA would foster economic growth and
opportunity, promote regional integration and good governance. In
concert with my colleagues in the U.S. Congress, I have corresponded
and met numerous times with Ambassadors Zoellick and Cobb to discuss at
length the selection of Miami as the headquarters for the Secretariat.
Miami is a perfect location for the Secretariat due to its bustling
economy, multilingual population and its role as the hub for Latin
America.
I have supported efforts on behalf of Miami that involve the
Permanent Secretariat of the Free Trade Area of the Americas;
especially the most current appropriations of $8.5 million that will
assist our local South Florida community.
Free trade cannot encompass nations that are dictatorial, ruthless,
and that lack regard for freedom and human rights. Ruthless regimes
cannot be allowed entry into any free trade agreements as they lack the
fundamental premise for market-based trade to succeed freedom. Without
a democratic system of government, free trade cannot flourish. Brutal
dictatorships in our Hemisphere should not have access into any form of
free trade agreements until they hold independent elections, free its
political prisoners, allow freedom of press, and respect and upheld
other basic liberties.
It is the hope of our South Florida community that the Administration
will select Miami as the U.S. candidate city to serve as home to the
FTAA Secretariat, when an agreement is completed. Miami's special and
close relationship with our Latin neighbors make the city a natural
choice to play this important role.
As leaders of the Western Hemisphere meet to discuss the vital issue
of a tentative FTAA, it is important to remember our local citrus
industry.
As we strive to open new markets and expand opportunities for U.S.
workers and businesses through seeking new trade agreements, we must
ensure that our workers and businesses have fair opportunities to
compete in the increasingly global marketplace.
Any reduction of tariffs on imported orange juice would impede these
important objectives. These tariffs help to promote competition,
enabling us to compete on a level playing field in the global
marketplace.
[[Page 29290]]
It is very clear that any reduction in the tariff would have serious
consequences on Florida's citrus industry and could potentially
devastate the State's economy. The citrus industry is the State's
second largest, contributing over $9 billion to our economy. In
addition, the citrus industry accounts for nearly 90,000 direct and
indirect jobs throughout Florida and the country.
As delegates congregate in South Florida to discuss the future of
trade in the Western Hemisphere, I call upon our leaders of the
Hemisphere to not forget the hard workers of Florida and the importance
of Florida Citrus.
____________________
PAYING TRIBUTE TO AL HOMANN
______
speech of
HON. SCOTT McINNIS
of colorado
in the house of representatives
Tuesday, November 11, 2003
Mr. McINNIS. Mr. Speaker, it is my honor to rise and pay tribute to a
remarkable man from my district. Al Homann from Silverton, CO was
recently named Silverton's ``Citizen of the Year,'' and I am proud to
call his contributions to the attention of this body of Congress.
The charitable acts that culminated in Al's recognition as ``Citizen
of the Year'' are too numerous to list. He is an active member of the
American Legion, and an organizer of the ``Hoop Shoot,'' a yearly event
that raises funds for local scholarships. In addition, Al has spread
his joy for life to countless audience members as a performer in the
Miner's Union Theater. Al has also volunteered in countless community
events, including Fourth of July parades and sporting events. Silverton
is truly a better place as the result of Al's selfless dedication
Mr. Speaker, it is my honor to pay tribute to Al Homann. His selfless
dedication to serving others is a shining example to all Americans. The
many charitable events that Al has supported are a testament to his
altruistic spirit. On behalf of the countless people he has helped, and
a grateful nation, I would like to thank Al Homann for all that he has
done, and congratulate him on his receipt of a well-deserved award.
____________________
RECOGNIZING PATRICK TAYLOR SAMPSELL FOR ACHIEVING THE RANK OF EAGLE
SCOUT
______
HON. SAM GRAVES
of missouri
in the house of representatives
Monday, November 17, 2003
Mr. GRAVES. Mr. Speaker, I proudly pause to recognize Patrick Taylor
Sampsell, a very special young man who has exemplified the finest
qualities of citizenship and leadership by taking an active part in the
Boy Scouts of America, Troop 351, and in earning the most prestigious
award of Eagle Scout.
Patrick has been very active with his troop, participating in many
scout activities. Over the three years Patrick has been involved with
scouting, he has earned 44 merit badges and has held numerous
leadership positions, serving as Patrol Leader, Quartermaster, Scribe,
Assistant Patrol Leader, and Senior Patrol Leader. Patrick has also
received the honor of Arrow of Light, is a Brotherhood Member in the
Order of the Arrow, and is a Brave in the Tribe of Mic-O-Say.
For his Eagle Scout project, Patrick refurbished 60 fire hydrants in
Platte City, Missouri by scraping, cleaning, and repainting the
hydrants orange and black. He also cleaned the area surrounding the
hydrants.
Mr. Speaker, I proudly ask you to join me in commending Patrick
Taylor Sampsell for his accomplishments with the Boy Scouts of America
and for his efforts put forth in achieving the highest distinction of
Eagle Scout.
____________________
RED HOT MAMAS
______
HON. C.L. ``BUTCH'' OTTER
of idaho
in the house of representatives
Monday, November 17, 2003
Mr. OTTER. Mr. Speaker, I rise today to recognize and praise the
efforts of a group of women known across America as ``Idaho's
Ambassadors of Fun.'' They are the Red Hot Mamas--a family oriented
musical-comedy troupe from Coeur d'Alene, ID. These are women in the
prime of their lives, all over the age of 30, who revel in sharing
their good humor and infectious high spirits. The ladies wear brightly
colored house dresses and 5-foot-tall hats made from empty grocery
cartons, milk jugs, balloons or other household items. They can be
found most days in one parking lot or another in Coeur d'Alene,
practicing their precision drill-team routines. The Red Hot Mamas
performed at the 54th Presidential Inaugural Parade in Washington,
D.C., on ABC's ``Good Morning America'' and ``Nightline'' programs, at
Philadelphia's Independence Day Parade; Hershey, Pennsylvania's
Centennial Anniversary Parade; the Fiesta Bowl Parade in Tempe,
Arizona; the Holiday Bowl Parade in San Diego; the Seafair Parade in
Seattle and many more. Many of their performances have raised money for
various charities. They soon will be traveling to England to perform in
London's New Year's Day Parade--the world's largest. Once again they
will be spreading the word about their beautiful home state of Idaho,
and spreading joy in the process. I want to thank these unique, fun-
loving ladies and let them know their efforts are appreciated.
____________________
TRIBUTE TO ABIGAIL RICE
______
HON. SCOTT McINNIS
of colorado
in the house of representatives
Tuesday, November 11, 2003
Mr. McINNIS. Mr. Speaker, it is with profound sadness that I rise
today to recognize the life and contributions of Abigail Rice from
Durango, CO. Abi's life was recently cut short in a tragic accident. As
her family mourns their loss, I think it is appropriate to call her
tremendous contributions to the attention of this body of Congress and
our Nation.
Abi was an excellent student. A member of the Dean's List at Colorado
State University, she was majoring in Natural Sciences. Abi was also a
member of the PreMedica Club, and the Air Force ROTC. She had plans to
attend medical school following graduation and her dream was to serve
her country in the United States Air Force as a flight surgeon.
Abi also excelled in athletics. She was a High School Barrel Racing
State Champion, an accomplished participant in 4-H, and a co-captain of
Colorado State's Varsity Trap and Skeet Team.
Despite Abi's many academic and athletic talents, those who knew her
well say that her greatest attribute was her loving and caring
personality. Abi had an infectious love of life and her many friends
and family will miss her deeply.
Mr. Speaker, it is my honor to rise and pay tribute to Abigail Rice.
Abi was an amazing young woman and my heart goes out to her family and
friends during this difficult time.
____________________
RECOGNIZING KYLE D. SNYDER FOR ACHIEVING THE RANK OF EAGLE SCOUT
______
HON. SAM GRAVES
of missouri
in the house of representatives
Monday, November 17, 2003
Mr. GRAVES. Mr. Speaker, I proudly pause to recognize Kyle D. Snyder,
a very special young man who has exemplified the finest qualities of
citizenship and leadership by taking an active part in the Boy Scouts
of America, Troop 351, and in earning the most prestigious award of
Eagle Scout.
Kyle has been very active with his troop, participating in many Scout
activities. Over the three years Kyle has been involved with Scouting,
he has earned 40 merit badges and has held numerous leadership
positions, serving as Assistant Patrol Leader, Patrol Leader,
Quartermaster, and Chaplain Aide. Kyle has also received the honor of
Arrow of Light, is a Brotherhood Member in the Order of the Arrow, and
is a Brave in the Tribe of Mic-O-Say.
For his Eagle Scout project, Kyle planned and built ten blue
birdhouses and one wood duck house. He then placed them along a nature
trail and the pond at Riverview Park in Platte City, Missouri.
Mr. Speaker, I proudly ask you to join me in commending Kyle D.
Snyder for his accomplishments with the Boy Scouts of America and for
his efforts put forth in achieving the highest distinction of Eagle
Scout.
____________________
RECOGNIZING THE RETIREMENT OF JIM L. RIDLING OF MONTGOMERY, ALABAMA
______
HON. MIKE ROGERS
of alabama
in the house of representatives
Monday, November 17, 2003
Mr. ROGERS of Alabama. Mr. Speaker, I rise today to pay tribute to
Jim L. Ridling of
[[Page 29291]]
Montgomery, Alabama, on the occasion of his retirement as President,
CEO and Chairman of the Board of Southern Guaranty, a part of
Winterthur Insurance Company.
Jim was born and raised in Arkansas. He began his professional career
as a Management Trainee with Fireman's Fund Insurance Companies in
1967. By 1984, he was Executive Vice President of United States
Operations. In 1987, he traded his ownership in Fireman's Fund for
ownership in Southern Guaranty Insurance Company, then a subsidiary of
Fireman's Fund, and moved to Montgomery, Alabama, as President and CEO
of Southern Guaranty.
Throughout his business career, Jim Ridling has been involved in
varied professional organizations. He is a member of the International
Insurance Society and the National Association of Independent Insurers.
He is a past member of the University of Alabama School of Business'
Board of Advisors; the Advisory Board of the University of Arkansas
Business School; and a graduate of Stanford University's Inaugural
Leadership Effectiveness Studies Program. Currently, he is a member of
the School of Business Advisory Council for Troy State University.
Jim Ridling continues to be very much involved in his community. He
is a member of the Executive Board of the Montgomery Air Force
Association; a member of the Board of Directors of the Business Council
of Alabama; a member of the Board of Directors of the Montgomery Area
Chamber of Commerce and Chairman of their Military Council; and a
member of the Montgomery Area Committee of 100. Jim is also President
of the Board of Directors of the Montgomery Ballet; a member of the
Board of Directors of the Montgomery Museum of Fine Arts and a Boy
Scouts Board of Director.
I congratulate Jim Ridling for his accomplishments and his
willingness to share of himself in service to his new adopted state. On
the special occasion of his retirement celebration on November 20, I
wish him, his lovely wife Cathy and their two daughters, Erin and
Hannah, the very best in the future.
____________________
FREEDOM FOR NORMANDO HERNANDEZ GONZALEZ
______
HON. LINCOLN DIAZ-BALART
of florida
in the house of representatives
Monday, November 17, 2003
Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, I rise to inform
this Congress about Normando Hernandez Gonzalez, a prisoner of
conscience in totalitarian Cuba.
Mr. Hernandez, age 32, and the director of the College of Independent
Journalists, has been a chronicler of truth amid the lies and deceit of
Castor's villainous regime. As a journalist who exposed the ruthless
repression and failed policies of Cuba's totalitarian dictator, Mr.
Hernandez has been continuously harassed by Castro's political police.
He was detained and released miles from his home on at least two
occasions and his telephone has been cut off since June 15, 2002.
Men and women who seek truth and freedom are the enemies of Castro's
totalitarian dictatorship. On March 24, 2003, Mr. Hernandez was
sentenced to 25 years in the Cuban totalitarian gulag. According to the
sham indictment ``He prepared reports . . . in which he attacked the
health system (and) the education provided in this country, questioned
the justice system, tourism, culture, agriculture. . . .''
Mr. Hernandez, for the ``crime'' of reporting truth instead of
government mandated lies, is languishing in Castro's gulag. According
to a statement by his wife, Yarai Reyes, on September 3, 2003, the food
in the gulag was often rotten, Mr. Hernandez had no electricity in his
cell and was being refused all medical care.
Mr. Speaker, last Thursday, in his address at the 20th anniversary of
the National Endowment for Democracy, President George W. Bush said
``Communism, and militarism and rule by the capricious and corrupt are
the relics of a passing era. And we will stand with these oppressed
peoples until the day of their freedom finally arrives.'' President
Bush went on to state, ``The advance of freedom is the calling of our
time; it is the calling of our country.''
My Colleagues, I applaud President Bush's stirring remarks and I ask
that we answer his call to advance freedom by demanding liberty for
every prisoner of conscience. Today I ask the entire Congress to cry
with one, united, voice for the immediate release of Normando Hernandez
Gonzalez.
____________________
RECOGNIZING BRETT MICHAEL BABCOCK FOR ACHIEVING THE RANK OF EAGLE SCOUT
______
HON. SAM GRAVES
of missouri
in the house of representatives
Monday, November 17, 2003
Mr. GRAVES. Mr. Speaker, I proudly pause to recognize Brett Michael
Babcock, a very special young man who has exemplified the finest
qualities of citizenship and leadership by taking an active part in the
Boy Scouts of America, Troop 351, and in earning the most prestigious
award of Eagle Scout.
Brett has been very active with his troop, participating in many
Scout activities. Over the two years Brett has been involved with
Scouting, he has earned 27 merit badges and has held numerous
leadership positions, serving as Patrol Leader, Librarian, Senior
Patrol Leader, and Assistant Senior Patrol Leader. Brett is also a
Brotherhood Member in the Order of the Arrow and is a Brave in the
Tribe of Mic-O-Say.
For his Eagle Scout project, Brett did landscaping for the courtyard
at Heritage Village Assisted Living Center in Platte City, Missouri.
Brett planted and mulched two trees, built a birdfeeder, and also
constructed two wooden benches that were placed in the courtyard for
use by the residents.
Mr. Speaker, I proudly ask you to join me in commending Brett Michael
Babcock for his accomplishments with the Boy Scouts of America and for
his efforts put forth in achieving the highest distinction of Eagle
Scout.
____________________
PAYING TRIBUTE TO VERNA TOWNE
______
HON. SCOTT McINNIS
of colorado
in the house of representatives
Monday, November 17, 2003
Mr. McINNIS. Mr. Speaker, it is my honor to rise and pay tribute to a
remarkable woman from my district. Verna Towne from Mancos, Colorado
was recently named ``Citizen of the Year'' for the Mancos Valley. I am
proud to call her contributions to the attention of this body of
Congress and this nation today.
The charitable acts that culminated in Verna's recognition as
``Citizen of the Year'' are too numerous to list. She is an active
member of the VFW and Lioness clubs, volunteers her time at the Mancos
Senior Center, and is instrumental in the organization of the USDA
Commodity Give-Away. Although she donates her time in many ways, Verna
is best known for her excellent cooking. She often serves meals at a
church breakfast club for teens, the Good Samaritan Center, and 9
Health Fairs as well.
Verna always extends a hand to those in need. She can often be seen
shoveling snow from a friend's driveway, or delivering food to those in
need of a home-cooked meal. Verna's dedication can best be described as
tireless altruism and her hard work on behalf of others often extends
late into the night. Verna is truly a compassionate and loving woman
and Mancos is lucky to have her.
Mr. Speaker, it is my honor to pay tribute to Verna Towne. Verna's
selfless dedication to serving others is a shining example to all
Americans. The many charitable events Verna has supported over the
years are a testament to her vibrant and altruistic spirit. On behalf
of the countless people she has helped, and a grateful nation, I would
like to thank Verna for all she has done, and congratulate her on the
receipt of a well-deserved award.
____________________
HONORING THE CONFEDERATED TRIBES OF SILETZ INDIANS ON THE 26TH
ANNIVERSARY OF THE RESTORATION TO FEDERAL RECOGNITION
______
HON. DARLENE HOOLEY
of oregon
in the house of representatives
Monday, November 17, 2003
Ms. HOOLEY of Oregon. Mr. Speaker, I rise today to honor the
Confederated Tribes of Siletz Indians as they celebrate their 26th
anniversary of the Restoration to Federal Recognition on November 15,
2003.
The Confederated Tribes of Siletz Indians is a confederation of 27
tribes which originally ranged from Northern California to Southern
Washington. In 1954, the Confederated Tribes of Siletz Indians were one
of many tribes whose federal status was terminated by Congress, and all
their lands were taken away. The Siletz reservation, which once
exceeded 1.1 million acres was completely gone, and the confederation
was no longer recognized.
[[Page 29292]]
While nothing could destroy the tribes' culture and traditions that
were passed from generation to generation, the lack of federal
recognition and support hurt the Siletz.
In the late 1960s, a group of tribal members which recognized the
severe effects that the termination was having on the tribe began to
work to reverse the effects. They restored the tribal cemetery and
created programs for drug and alcohol rehabilitation, job training, and
other social services. As they worked to fight against the ills that
termination had brought on, the group realized that it must regain its
federal recognition.
After many years of intense lobbying, the tribe regained its federal
recognition on November 18th, 1977 when President Carter signed an act
of Congress restoring the Siletz. The Confederated Tribes of Siletz
Indians were the second tribe in the Untied States and the first in
Oregon to have their federal recognition restored.
Since being restored, the tribe has blossomed and re-established
nearly all of its institutions of government. This re-establishment of
tribal government has led to better service programs and economic
growth which in turn has led to greater preservation of tribal history
and tradition.
With its recognition restored and tribal government re-established,
the tribe began to grow, and that growth continues to this day. In
1983, a community center was built, serving as an all-purpose gathering
place for tribal and non-tribal activities. 1991 brought the addition
of a community health clinic which serves all members of the community,
tribal and non-tribal. An administration building was developed in 1995
which provides many services to tribal members on the reservation and
in eleven surrounding counties in Oregon.
In 1995 the tribe developed its biggest economic project to date, the
Chinook Winds Casino and Convention Center. This venture, combined with
the other tribal projects, made the tribe one of the largest employers
in Lincoln County.
This growth didn't end with the creation of the casino and convention
center. Since 1995, the tribe has built a Dance House, the Siletz
Tribal Business Corporation, and most recently the Siletz Valley
School. The school, a public charter school that serves 170 children
from the surrounding community, was opened after the local school
closed due to budget cuts.
As you can see, since their successful fight to regain federal
recognition, the Confederated Tribes of Siletz Indians have been
dedicated to improving the lives of their 4,000 members as well as the
lives of the people of Oregon. One of the best examples of this
dedication to improvement is the Siletz Tribal Charitable Contribution
Fund, which has distributed more than $1.5 million to projects in
Oregon.
Today it is my pleasure to honor and recognize the Confederated
Tribes of Siletz Indians as they celebrate their 26th anniversary of
their Restoration to Federal Recognition.
____________________
RECOGNIZING MR. FRED SALEM
______
HON. DALE E. KILDEE
of michigan
in the house of representatives
Monday, November 17, 2003
Mr. KILDEE. Mr. Speaker, I rise before you today to recognize the
accomplishments of my longtime friend Mr. Fred Salem. Fred Salem is a
child advocate and philanthropist. His hard work and dedication to the
people of Genesee County is without doubt commendable. On November 12,
2003, the community along with his family gathered to say thank you
during a party held at the Ramada Inn located in my hometown of Flint,
Michigan.
Fred Salem has been a resident of Mt. Morris Township for 35 years.
If one could sum up the character of Fred Salem, it would be said that
he is a concerned, compassionate, loyal and dedicated citizen. Fred is
a humanitarian. Fred has dedicated numerous hours and dollars toward
worthy causes. Through his efforts many children and organizations have
been able to fulfill dreams that would have otherwise been dismissed.
Fred is currently affiliated with a number of organizations, those
organizations include but not limited to, the Whaley Children's Center,
St. John Vianney Day Care, New Life Childcare & Preschool, Girl Scouts
and Brownies Troops of Genesee County, Boy Scouts, The Sylvester Broome
Center, Big Brothers and Sisters Organization. Fred is also involved
with the Flushing Community Church of the Nazarene, Dr. John Socey and
staff, Dr. Chambers & Staff, St. Pius Church and Bible groups, St.
George, New Life Christian Fellowship, St. Robert's Pre-K classes
(all), St. Robert's Kindergarten classes, Flushing Kindergarten, St.
Agnes Church, 96.1 and 93.7 radio stations' picnic, Johnny Burke
Birthday Party, and the Northern High School Class Reunion.
On a personal note, each year Fred and his wife Cindy host the annual
Community Fourth of July fireworks display in their backyard. Fred
steps up when the Government can't. At his residence Fred has
transposed his backyard into a miniature Disney Land. Children from
ages 2 and beyond come to partake in the fun festivities that are held
there year around. One attraction that children enjoy is the go-cart
course he had installed and also the historical walkthrough, which
includes an old fashion store, antique cars and trucks.
Aside from being an outstanding leader and role model, he is a
wonderful devoted family man to his wife Cindy.
Mr. Speaker, as a member of Congress, I ask my colleagues in the
108th Congress to please join me in congratulating my friend Fred
Salem. He has served his community with enthusiasm and concern. I wish
him all the best in the future.
____________________
RECOGNIZING MARCUS W. PHILLIPS FOR ACHIEVING THE RANK OF EAGLE SCOUT
______
HON. SAM GRAVES
of missouri
in the house of representatives
Monday, November 17, 2003
Mr. GRAVES. Mr. Speaker, I proudly pause to recognize Marcus W.
Phillips, a very special young man who has exemplified the finest
qualities of citizenship and leadership by taking an active part in the
Boy Scouts of America, Troop 362, and in earning the most prestigious
award of Eagle Scout.
Marcus has been very active with his troop, participating in many
Scout activities. Over the ten years Marcus has been involved with
scouting, he has earned 21 merit badges and has held numerous
leadership positions, serving as Chaplain Aide, Quartermaster, Patrol
Leader, and Scribe. Marcus earned the honor of Brave, Warrior, and
Firebuilder in the Tribe of Mic-O-Say and served on staff at H. Roe
Bartle Scout Reservation teaching younger scouts woodworking.
For his Eagle Scout project, Marcus organized and supervised ten
other Scouts in the landscaping of a section of the Children's Garden
at Duncan Road Baptist Church in Blue Springs, Missouri. They spent 150
hours planting trees and shrubs, placing decorative rock, and adding
both edging and fencing to the Garden.
Mr. Speaker, I proudly ask you to join me in commending Marcus W.
Phillips for his accomplishments with the Boy Scouts of America and for
his efforts put forth in achieving the highest distinction of Eagle
Scout.
____________________
TRIBUTE TO PAULA SCHAEFER
______
HON. SCOTT McINNIS
of colorado
in the house of representatives
Monday, November 17, 2003
Mr. McINNIS. Mr. Speaker, it is with profound sadness that I rise
today to recognize the life and contributions of a remarkable woman
from my district. Paula Schaefer from Durango, Colorado passed away
recently at the age of 54. She will long be remembered for charitable
acts in her community, her friendly disposition, and her unyielding
love for her family.
Paula was born in Wichita Falls, Texas in 1948. It was there that she
met and married Lyndall, her husband of 36 years. Upon moving to
Durango, Paula became an accomplished Businesswoman. She served as the
President of the Durango area Association of Realtors, and was
recognized as ``Realtor of the Year'' in 2003.
Paula's contributions to the Durango community were extensive. As a
member of the Lion's Club, and co-founder of the local chapter of
Habitat for Humanity, Paula was dedicated to helping those in need.
There is no doubt that countless people are better off as the result of
Paula's selfless commitment to others.
Mr. Speaker, the dedication and integrity demonstrated throughout
Paula Schaefer's life
[[Page 29293]]
certainly deserves the recognition of this body of Congress and our
nation. There is no question that Paula will be remembered as a great
businesswoman. However, she will best be remembered as a selfless
person, a great friend, and a dedicated mother and wife. My heart goes
out to Paula's loved ones in this difficult time of bereavement.
____________________
TRIBUTE TO WILLIAM AUSTIN
______
HON. ROBERT T. MATSUI
of california
in the house of representatives
Monday, November 17, 2003
Mr. MATSUI. Mr. Speaker, I would like to congratulate William Austin
on being honored with the National Caring Award for his efforts to help
hearing-impaired children around the world. Through his tireless work
at the Starkey Hearing Foundation, William has helped provide over
80,000 hearing aids to children in 70 countries since 2000.
William has worked constantly on innovative ways to improve hearing
technology and serves many high profile celebrities and athletes. But
his true calling lies in helping children around the world who suffer
from hearing impairment. By donating hearing aids, batteries and other
hearing products to countless needy children, he has given them the
ultimate gift--the gift of hearing. Where there was once silence,
thousands of children can now hear their mother's voice, the falling
rain, and the sweet sound of music.
The Caring Institute, who honored William with the award, seeks to
promote the values of caring, integrity and public service. Those
selected to receive the National Caring Award, including William,
represent the best of these qualities.
Again, I congratulate William. And thank you for all your work for
hearing impaired children around the world.
____________________
TRIBUTE TO MR. ALBERT H. VIERLING, JR.
______
HON. ROBERT E. ANDREWS
of new jersey
in the house of representatives
Monday, November 17, 2003
Mr. ANDREWS. Mr. Speaker, I rise today to pay tribute to Mr. Albert
H. Vierling, Jr., a community leader and veterans advocate from Berlin,
New Jersey who died suddenly on October 24, 2003.
A decorated Army Veteran of the Korean War, Al was a member of ANMAC
VFW Post #6253 where he served as Service Officer and was the Commander
for 12 years. He was a member, Service Officer, and past commander of
American Legion Post #271. Al was the Commander of Camden County VFW
District 1984-1985 receiving the All American District Commander Award.
He was a 1977 founding member of the Camden County Veteran Advisory
Committee. Al was a volunteer with the Camden County Veterans Affairs
Office since 1990, becoming a part time employee with the Office while
serving as Supervisor of Veterans Interment for Camden County.
Al was also a leader in the greater Philadelphia labor community.
Retiring in 1977, Al was the Shop Steward for Teamsters Union Local 628
of Philadelphia where he worked for over 25 years. He was the building
maintenance supervisor for the borough of Berlin for over 10 years.
Additionally, Al was very active in community athletics as a founder
and past president of the Interboro Athletic Association, former coach
of the Overbrook Cowboys, and former member and coach of the Berlin
Athletic Association.
Whether he was helping veterans navigate the Veterans Administration
bureaucracy, selling poppies each May to raise money for South Jersey
veterans or organizing scores of events to pay tribute to our nation's
heroes, Mr. Vierling worked tirelessly to assist and honor veterans. Al
did everything in his power to make sure that our government upheld the
promises it made to veterans and that the American people did not
forget the sacrifices made and the freedom won by those who served our
nation in uniform. Additionally, on the athletic field, Al taught
scores of South Jersey youth the value of hard work and dedication.
Mr. Speaker, Al Vierling left the First Congressional District of New
Jersey a better place. He touched the lives of hundreds of people in
South Jersey. His lifelong service will not be forgotten.
____________________
TRIBUTE TO JOSE MACARIO VALDEZ
______
HON. SCOTT McINNIS
of colorado
in the house of representatives
Monday, November 17, 2003
Mr. McINNIS. Mr. Speaker, it is with a solemn heart that I pay
tribute to Jose Macario Valdez of Trinidad, Colorado. Jose passed away
recently at the age of 79, and as I look back on his life, I see the
story of a great American. As his family mourns their loss, I think it
is appropriate that we remember Jose's life, and celebrate the
outstanding contributions that he made to the community of Trinidad,
and this country.
Jose was born in Trinidad in 1924. During World War II, he answered
his country's call to duty and joined the Army Air Corps. As an Air
Transportation Technician in the Pacific Theater, Jose served with
remarkable valor and courage on nearly 100 missions. For his heroism,
Jose was awarded the Distinguished Flying Cross, the Bronze Star, a
Good Conduct Medal, and the Burma Asiatic Pacific Service Medal. Jose's
awards are illustrative of the courage and valor that defined his
selfless protection of our country.
Upon returning to Trinidad, Jose met and married Prospera Lovato, his
wife of 56 years. He went to work for CF&I Steel for eight years. He
then became a coal miner before going to work for the City of Trinidad
as a power plant fireman, a position he held for 24 years. Jose was
deeply involved in the Trinidad community. He was an active member of
the Sociedad De San Antonia de Padua and the Holy Trinity Church as
well.
Mr. Speaker, it is my honor to pay tribute today to a fine American.
A loving and devoted husband, father, grandfather and great
grandfather, Jose Macario Valdez will be deeply missed by his family
and the Trinidad community. I am proud to call Jose's valiant
protection of our country, and selfless dedication to the Trinidad
community to the attention of this body of Congress and this nation
here today. My thoughts go out to his family in this difficult time.
____________________
TRIBUTE TO PETE HAUTZINGER
______
HON. SCOTT McINNIS
of colorado
in the house of representatives
Monday, November 17, 2003
Mr. McINNIS. Mr. Speaker, it is my honor to rise and pay tribute to a
remarkable man from my district. Pete Hautzinger of Mesa, Colorado was
recently named ``Prosecutor of the Year.'' As a District Attorney, Pete
works tirelessly for the betterment of his community, and I am pleased
to call his contributions to the attention of this body of Congress,
and this Nation here today.
Pete graduated from the University of Colorado School of law in 1988,
and upon graduation, he became a Deputy District Attorney for Adams
County. Later, Pete took a position with the 21St Judicial District
Attorney's Office in 1992, where he currently serves as a Chief Deputy
District Attorney. Pete's experience is vast. He has tried 97 jury
trials, 51 of which have been at the felony level.
Pete approaches his job with the best interests of his district's
citizens in mind. As a leading advocate for the victims of domestic
violence, Pete works tirelessly in conjunction with police and victims
to assure that justice is achieved. Pete also works with various
domestic violence organizations such as Men Against Violence, the
Domestic Violence Taskforce, and the Western Slope Center for Children.
He is truly dedicated to protecting women and children from the terrors
of domestic violence.
Pete's contributions reach far beyond the courtroom. Despite his
untiring dedication to his work, Pete manages to find time to be a
great father and is the volunteer coach for his children's soccer and
basketball teams. Pete is also involved in passing along his knowledge
and ethics to the next generation of prosecutors and police officers.
Each year, he teaches a number of classes and supervises a number of
young Deputy District Attorneys.
Mr. Speaker, Pete Hautzinger is truly a tremendous asset to his
community. I know that the people of Mesa, Colorado feel safer as the
result of his tireless dedication to the pursuit of justice. I am proud
to join the people of Mesa in thanking Pete for his service and
congratulating him for his achievements.
____________________
SENATE COMMITTEE MEETINGS
Title IV of Senate Resolution 4, agreed to by the Senate on February
4, 1977, calls for establishment of a system for a computerized
schedule of all meetings and hearings of Senate committees,
subcommittees, joint committees, and committees of conference.
[[Page 29294]]
This title requires all such committees to notify the Office of the
Senate Daily Digest--designated by the Rules Committee--of the time,
place, and purpose of the meetings, when scheduled, and any
cancellations or changes in the meetings as they occur.
As an additional procedure along with the computerization of this
information, the Office of the Senate Daily Digest will prepare this
information for printing in the Extensions of Remarks section of the
Congressional Record on Monday and Wednesday of each week.
Meetings scheduled for Tuesday, November 18, 2003 may be found in the
Daily Digest of today's Record.
MEETINGS SCHEDULED
NOVEMBER 19
9 a.m.
Armed Services
To hold hearings to examine current Army issues.
SH-216
9:30 a.m.
Governmental Affairs
To hold hearings to examine the threat of agroterrorism.
SD-342
Judiciary
To hold hearings to examine pending judicial nominations.
SD-226
10 a.m.
Health, Education, Labor, and Pensions
To hold hearings to examine S. 741, to amend the Federal
Food, Drug, and Cosmetic Act with regard to new animal
drugs, proposed Mammography Quality Standards
Reauthorization Act, proposed Medical Device Technical
Corrections Act, proposed Organ Donation and Recovery
Improvement Act, and pending nominations.
SD-430
2:30 p.m.
Governmental Affairs
Oversight of Government Management, the Federal Workforce,
and the District of Columbia Subcommittee
To resume hearings to examine the August 2003 Northeast
blackouts and the Federal role in managing the nation's
electricity.
SD-342
NOVEMBER 20
Time to be announced
Governmental Affairs
Business meeting to consider the nominations of James M.
Loy, of Virginia, to be Deputy Secretary of Homeland
Security, and Scott J. Bloch, of Kansas, to be Special
Counsel, Office of Special Counsel.
Room to be announced
9 a.m.
Governmental Affairs
Investigations Subcommittee
To resume hearings to examine the role of professional
organizations like accounting firms, law firms, and
financial institutions in developing, marketing and
implementing tax shelters.
SH-216
9:30 a.m.
Commerce, Science, and Transportation
To hold hearings to examine drug importation.
SR-253
10 a.m.
Banking, Housing, and Urban Affairs
Business meeting to consider S. 1531, to require the
Secretary of the Treasury to mint coins in
commemoration of Chief Justice John Marshall, and the
nominations of Alicia R. Castaneda, of the District of
Columbia, to be a Director of the Federal Housing
Finance Board, and Thomas J. Curry, of Massachusetts,
to be a Member of the Board of Directors of the Federal
Deposit Insurance Corporation; to be immediately
followed by a hearing on improving the corporate
governance of the NYSE.
SD-538
2 p.m.
Banking, Housing, and Urban Affairs
To resume hearings to examine current investigations and
regulatory actions regarding the mutual fund industry.
SD-538