San Francisco Old Mint Commemorative Coin Act

Mr. President, I rise to introduce legislation to authorize the distribution of judgment funds to eligible tribal members of the Gila River Indian Community in Arizona. Identical legislation unanimously passed the Senate last year, but was not able to be considered by the House of Representatives prior to the adjournment of the 107th Congress.

The Gila River Indian Community Judgment Fund Distribution Act resolves two half-century old claims by the Gila River tribe against the United States for failure to meet Federal obligations to protect the community's use of water from the Gila River and Salt River in Arizona. The original complaint was filed before the Indian Claims Commission on August 8, 1951. In 1982, the United States Court of Claims confirmed liability of the United States to the community, and recently the settlement of these two claims was determined to be 7 million.

So much time has passed that the Indian Claims Commission formerly in charge of fund distributions no longer exists. However, a debt does not disappear. The judgment award has since been transferred from the Indian Claims Commission to a trust account on behalf of the community, managed by the Office of Trust Management at the Department of the Interior.

This judgment award was certified by the Treasury Department on October 6, 1999 for the final portion of the litigation to the two remaining dockets of the Gila River Indian Community. Since that time, the community has been working with the BIA in an attempt to finalize a use and distribution plan to submit to Congress for approval. As outlined in its plan, the community has decided to distribute the judgment award equally to eligible tribal members.

The purpose of this legislation is to comply with Federal regulations which requires congressional approval for distribution of judgment funds to tribal members. The terms of the legislation reflect an agreement by all parties for a distribution plan for final approval by the Congress. As part of this legislation, the BIA is also seeking to resolve remaining expert assistance loans by the Gila River Indian Community, the Oglala Sioux Tribe, and the Seminole Tribe of Florida, as originally authorized by the Indian Claims Commission.

Members of the Gila River Indian Community have waited half a century for final resolution of all their legal claims regarding this matter. After considerable delay, it is only fair to resolve this matter and provide compensation as soon as possible. I hope that my colleagues will act quickly to move this legislation through the process.

Mr. President, I am pleased to introduce legislation to continue Federal support for the U.S. Institute for Environmental Conflict Resolution. This legislation is identical to legislation which passed the Senate unanimously in September of last year.

The Congress enacted legislation to establish the U.S. Institute for Environmental Conflict Resolution in 1998, with the purpose of offering an alternative to litigation for parties in dispute over environmental conflicts. As we know, many environmental conflicts often result in lengthy and costly court proceedings and may take years to resolve. In cases involving Federal Government agencies, the costs for court proceeding are usually paid for by taxpayers. While litigation is still a recourse to resolve disputes, the Congress recognized the need for alternatives, such as mediation and facilitated collaboration, to address the rising number of environmental conflicts that have clogged Federal courts, executive agencies, and the Congress.

The Institute was placed at the Morris K. Udall Foundation in recognition of former Representative Morris K. Udall from Arizona and his exceptional environmental record, as well as his unusual ability to build a consensus amoung fractious and even hostile interests. The Institute was established as an experiment with the idea that hidden within fractured environmental debates lay the seeds for many agreements, an approach applied by Mo Udall with unsurpassed ability.

The success of the Institute is far greater than we could have imagined. The Institute began operations in 1999 and has already provided assistance to parties in more than 100 environmental conflicts across 30 states.

Agencies from the Environmental Protection Agency, the Departments of Interior and Agriculture, the U.S. Navy, the Army Corps of Engineers, the Federal Highway Administration, the Federal Energy Regulatory Commission, and others have all called upon the Institute for assistance. Even the Federal courts are referring cases to the Institute for mediation, including such high profile cases as the management of endangered salmon throughout the Columbia River Basin in the Northwest.

The Institution also assisted in facilitating interagency temawork for the Everglades Task Force which oversees the South Everglades Restoration Project. The U.S. Forest Service requested assistance to bring ranchers and environmental advocates in the southwest to work on grazing and environmental compliance issues. Even members of Congress have sought the Institute's assistance to review implementation of the Nation's fundamental environmental law, the National Environmental Policy Act, to assess how it can be improved using collaborative processes.

The Institute accomplishes its work by maintaining a national roster of 180 environmental mediators and facilitators located in 39 states. We believe that mediators should be involved in the geographic area of the dispute whenever possible and that system is working.

The demand on the Institute's assistance had been much greater than anticipated. At the time the Institute was created, we did not anticipate the magnitude of the role it would serve to the Federal Government. The Institute has served as a mediator between agencies and as an advisor to agency dispute resolution efforts involving overlapping or competing jurisdictions and mandates, developing long- term solutions, training personnel in consensus-building efforts, and designing international systems for preventing or resolving disputes.

Unfortunately, experience has also taught us that most Federal agencies are limited from participating because of inadequate funds to pay for mediation services. This legislation will authorize a participation fund to be used to support meaningful participation of parties to Federal environmental disputes. The participation fund will provide matching funds to stakeholders who cannot otherwise afford mediation fees or costs of providing technical assistance.

In addition to creating this new participation fund, this legislation simply extends the authorization for the Institute for an additional five years with a modest increase in its operation budget. The proposed increase is in response to the overwhelming demand on the Institute's services, an investment that will ultimately benefit taxpayers by preventing costly litigation.

I hope that we can consider this legislation expeditiously to ensure continuing support for the valuable services of the U.S. Institute for Environmental Conflict Resolution to our Nation.

Mr. President, I am reintroducing legislation today to authorize the Secretary of the Interior to conduct a special resource study of sites associated with the life of Cesar Estrada Chavez. Chavez is one of the most revered public servants in our history for his leadership in helping organize migrant farm workers, and for providing inspiration to those most oppressed in our society. He is an exemplary American hero. It is important that we honor his struggle and do what we can to preserve certain sites located in Arizona, California and other States that are significant to his life.

Cesar Chavez, a fellow Arizonan born in Yuma, was the son of migrant farm workers. He no doubt loved qualities of life associated with his family's Hispanic heritage, but he will be remembered for the sincerity of his American patriotism. He fought to help Americans transcend distinctions of experience, and share equally in the rights and responsibilities of freedom. He made America a bigger and better nation.

While Chavez and his family migrated across the southwest looking for farm work, he evolved into a defender to worker's rights. He founded the National Farm Workers Association in 1962, which latter became the United Farm Workers of America. Essentially, he gave a voice to those that had no voice. In his words: ``We cannot seek achievement for ourselves and forget about progress and prosperity for our community. . .our ambitions must be broad enough to include the aspirations and needs of others, for their sakes and for our own.''

I introduced this legislation last October and received an overwhelming positive response, not only from my constituents in Arizona, but from Americans all across the nation. Similar legislation was introduced by Congresswoman Hilda Solis, D-CA, in September 2001. The bill specifically authorizes the Secretary of the Interior to determine whether any of the sites meet the criteria for being listed on the National Register of Historic Landmarks. The study would be conducted within three years. The goal of this legislation is to establish a foundation for a future bill that will designate land for these sites to become historic landmarks.

Cesar Chavez was a humble man of deep conviction who understood what it meant to serve and sacrifice for others. He was a true American hero who

embodied the values of justice and freedom this nation holds dear. Honoring the places of his life will enable his legacy to inspire and serve as an example for our future leaders.

I ask unanimous consent that the text of the bill and a letter of support from the Cesar E. Chavez Foundation be printed in the Record.

Mr. President, today I am proposing bipartisan legislation to provide the basis for reform of the administration and management of the assets and funds held by the United States in trust for federally recognized Indian tribes and individual Indians. I am pleased that my two colleagues from South Dakota, Senators Daschle and Johnson, are once again joining me in this effort.

Last year, we introduced a similar bill to serve as a legislative vehicle in the event a consensus agreement could be reached during an extensive dialogue between a designated tribal task force and the U.S. Department of Interior on administrative and legislative reforms to federal management of trust funds and assets. Unfortunately, the dialogue resulted in a stalemate. While we received many favorable comments to move forward with this legislation, and conducted a full committee hearing to consider it, a sufficient consensus did not exist to approve the legislation prior to the adjournment of the 107th session.

We are reintroducing this legislation again because we believe it is important to continue to offer a legislative remedy to the management problems plaguing the Interior Department and instill a meaningful role for Indian tribes in the process. Indian trust funds management continues to be mired in controversy and systemic mismanagement. Native American beneficiaries

continue to be denied a full reconciliation of money rightfully belonging to them.

The history of Indian trust funds management is long, exhaustive and fraught with controversy. It is a problem inherited by successive Administrations yet only limited progress has been made. The major structural changes called for in the 1994 American Indian Trust Fund Management Reform Act have not been accomplished. Two Special Trustees have resigned in frustration and high-level government officials have twice been held in civil contempt by the U.S. District Court in Washington, D.C. for breach of fiduciary duties.

No one is more frustrated about the lack of resolution to these long- standing problems than the Native American beneficiaries. However, recent reorganization plans submitted to the Court by the Interior Department earlier this month have only raised more controversy and concern among Indian tribes and beneficiaries as to the extent the Department will fully account for lost and mismanaged trust accounts. Significant questions have also been raised as to the impact of these proposed plans on long-standing Federal policies of self-determination and the function of the Bureau of Indian Affairs.

I cannot speak as to the merits of the Department's recent plans. The fact is, many in the Congress were not notified of the Department's intended actions nor has there been an opportunity to evaluate these plans through the respective legislative committees of jurisdiction. I have sought a commitment from the incoming Chairman of the Senate Committee on Indian Affairs, Senator Ben Nighthorse Campbell, to hold hearings as soon as possible on recent Department proposals that will restructure trust funds management as well as to consider legislative proposals such as the one we're proposing today.

The purpose of this legislation we are introducing is simple. It focuses on two primary changes to the 1994 American Indian Trust Fund Management Reform Act, the underlying law governing Indian trust funds management. First, it creates a single line-of-authority in the Interior Department by establishing a Deputy Secretary for Trust Management and Reform; and second, the bill strengthens provisions for Indian tribes and beneficiaries to directly manage or co-manage with the Interior secretary trust funds and assets, based on successful self-determination policies.

A fundamental objective of this legislation is to raise the profile of Indian trust funds management within the Interior Department and provide a statutory basis for Indian tribes to assume a greater management role in future management of their trust funds and trust assets. The structure of this legislation is similar to the bill introduced last year, but it is modified to reflect comments received from Indian tribes.

The legislation affirms the fiduciary standards to be applied to the management of Indian trust funds and assets. The Office of Special Trustee is abolished and replaced with the Office of Trust Reform under the direction of a new Deputy Secretary. The existing Advisory Committee to the Special Trustee is replaced with a Task Force composed of representatives of the tribes and the Department who will work with the new Deputy Secretary to develop appropriate standards and further necessary changes.

Senator Daschle, Senator Johnson and I introduce this legislation as a demonstration of our continuing commitment to seek a real and meaningful trust reform solution that provides an active role for tribal participation and consultation. We hope this legislation will prompt the necessary dialogue to ensure reform to Indian trust funds and trust assets management in a way that increases accountability of the Interior Department and respects the fact that the tribes must be involved as active participants without the threat of termination of the trust responsibility.

I ask unanimous consent that the text of the bill be printed in the Record.

Mr. President, today I join Senators Boxer, Chafee, and others to introduce The Toxic Clean Up and Polluter Pays Renewal Act for. For more than 20 years, the polluter pays principle has been a cornerstone of environmental policy. The Superfund toxic waste cleanup program, based on that principle, has made it possible to clean up hundreds of toxic waste dumps across the country, and has led to better management of industrial pollution and waste.

The polluter pays principle is now under attack. Last year, the Bush administration announced that it would not seek reauthorization of the taxes levied on oil and chemical companies that go into the Superfund trust fund, which is used to pay for cleanup of toxic waste sites.

The Superfund program established three ways to pay for the cost of cleanups: 1) the company or individual responsible for creating the site pays for its cleanup; 2) the Environmental Protection Agency performs the cleanups and recoups the costs from the responsible party or parties; and 3) for those ``orphan'' sites where no responsible party can be found, or the party is insolvent or no longer in business, the cleanup is paid for out of the trust fund.

The Superfund trust fund was created primarily with revenue from a corporate environmental income tax and excise taxes on petroleum and certain chemicals. The trust fund received about $1.5 billion per year before the legislative authority to collect the taxes expired at the end of 1995. The trust fund is expected to run out of money in 2004, having dwindled from a high of $3.8 billion in 1996 to $28 million this year.

There are 1,234 sites on the EPA national priority list of toxic waste sites that need to be cleaned up. One in four Americans live within 4 miles of a Superfund site. These sites contain hazardous pollutants like arsenic, cyanide, and agent orange. Last year, EPA Administrator Christine Whitman told Congress that 75 sites on the national priority list would be cleaned up in 2001 and 65 sites would be cleaned up in 2002. The Bush administration then revised its plan, requiring that only 47 site cleanups be completed in 2001 and 42 in 2002. For 2003, the Bush administration has proposed to further decrease cleanups. On October 25, 2002, the EPA Inspector General found that the Bush administration has cut funding at 55 Superfund sites in 25 states for which regional officials had requested cleanup. For Fiscal Year 2002, EPA regional officials requested $510 million to clean up waste sites. In response, EPA headquarters obligated only $280 million, resulting in a shortfall of $229 million, or 45 percent.

The program is insufficiently funded to allow sites that are already scheduled to be cleaned up to move forward. This results in increased risks to human health and the environment and increased cleanup costs in the long term. Reinstating the Superfund fee would restore a source of funding to the program at a time when the backlog of sites requires more resources if the program is to be successful. The Bush administration is the first administration since Superfund was enacted in 1980 to oppose reinstating this tax on polluters--a policy that either halts cleanup efforts or shifts the cost to rank-and-file taxpayers. Either result is unacceptable.

The administration's plan to cut the Superfund program would seriously compromise the health of our communities and amount to an enormous windfall for the oil and chemical industries. Funding is the key to cleaning up these sites and protecting communities from harm. The ``polluter pays'' principle has worked well over the last two decades, and the financial burden should not be shifted from polluters to average taxpayers. The administration should change course and find ways to restore the ``polluter pays'' principle to the program and aggressively fund cleanups at contaminated sites.

Mr. President, today I am joining with Senators John McCain and Tim Johnson in reintroducing legislation that will focus attention on the need to address and correct the longstanding problem of mismanagement of the assets and funds held by the United States in trust for federally-recognized Indian tribes and individual American Indians.

This is a problem that has festered for far too long outside the spotlight of public recognition. And it is a problem that is undermining urgently needed efforts to improve the quality of life in Indian Country.

Indian Country has faced many challenges over the years. Few, however, have been more important, or more vexing, than that of restoring integrity to trust fund management.

For over a hundred years, the Department of Interior has managed a trust fund funded with the proceeds of leasing of oil, gas, land and mineral rights for the benefit of Indian people. Today, the trust fund may owe as much as $10 billion to as many as 500,000 Indians.

To provide some perspective, the 16 tribes of the Great Plains in South Dakota, North Dakota and Nebraska comprise 10 million acres of trust lands representing over one-third of the tribal trust assets. Many enrolled members of the nine South Dakota tribes have individual trust accounts.

How these trust funds have been and will be managed is being litigated in Cobell v. Norton, and the resolution of this lawsuit will have far-reaching implications throughout Indian Country. It is foolhardly not to evaluate potential solutions in the context of this lawsuit.

There is clear consensus in Indian Country that the current administration of the trust fund is a failure. The daunting question has always been how to reform it.

In November 2001, the Secretary of the Interior unveiled her controversial plan to reorganize the Bureau of Indian Affairs, BIA, and segregate the oversight and accounting of trust-related assets in a new Bureau of Indian Trust Asset Management, BITAM. In testimony before the U.S. District Court, the Secretary acknowledged that, ``We undoubtedly do have some missing data, and we are all going to have to find a way to deal with the fact that some information no longer exists.''

The Secretary's controversial reorganization proposal, a hasty effort to avoid being held in contempt of court, was presented with minimal consultation with the tribes or individual Indian account holders, not to mention Congress.

In South Dakota, tribal leaders communicated to Tim Johnson and me their concern that the Secretary's solution appeared to be a fait accompli, conceived without meaningful participation of the stakeholders most directly affected by it. They felt strongly that this proposal should not be implemented without further consultation with the tribes. Meanwhile, the Secretary of the Interior and the Assistant Secretary on Indian Affairs, despite their reorganization plan, were both subsequently found in contempt of court.

In the early months of 2002, in the face of Administration assurances that its reorganization plan was not set in stone, the Interior Department requested that $200 million from the BIA and $100 million from the Office of the Special Trustee, be reprogrammed to ``a single organization that will report to the Secretary through an Assistant Secretary, Indian Trust.'' This contradiction set off red flags in Congress, and a clear and direct message was sent to Secretary Norton by Senators Inouye, Campbell, Byrd, Johnson and others that no action should be taken to implement her proposed reorganization plan administratively. Notwithstanding this clear signal, just this last December, while most members of Congress were out of town and with very little fanfare, the Secretary submitted yet another smaller request to reprogram BIA funds for trust fund reform activities.

Given these developments, Senators McCain, Johnson and I feel that Congress should be more assertive in forcing discussion of what role Congress might play in ensuring that tribes and individual Indian account holders have a voice on shaping trust reform policy. It is our hope that this bill will promote more constructive dialogue among the Congress, the Interior Department and Indian Country on this problem and lead to a true consensus solution.

With that goal in mind, the bill was received by representatives of the Great Plains tribes last Congress at a recent meeting in Rapid City. And earlier today, the Great Plains Tribal Chairman's Association urged me to re-introduce this legislation in the new Congress.

Mike Jandreau, Chairman of the Lower Brule Sioux Tribe and member of the Secretary's Trust Reform Task Force, has been an effective advocate and champion of trust reform, not only for his tribe, but also for all Indian people. He and Flandreau-Santee Sioux Tribal Chairman and Great Plains Tribal Chairman's Association President Tom Ranfranz led a very impressive and productive working sessions with tribal leaders from South Dakota, North Dakota and Nebraska. Mike and Tom have also worked with tribal leaders from Montana and Wyoming to raise awareness of the stakes of this issue and build support for the bill that regrettably died at the end of the 107th Congress due to Administration opposition.

I commend the willingness of these participating Great Plains and Rocky Mountain regional tribal leaders to be part of a public process that will hopefully will not stop until Indian Country feels comfortable with a final product they create. The McCain-Johnson- Daschle bill is intended to contribute to this result.

At this point, I would like to remind my colleagues some initial observations on this proposal that were raised in the last Congress by participating South Dakota treaty tribes and tribes of the Great Plains and Rocky Mountain regions that are still relevant in the 108th Congress. These comments demonstrate how thoughtfully Indian leaders are approaching the trust problem, and I fully expect that their suggestions will be considered and incorporated as the bill moves through the committee process.

The following issues are of great importance to the Great Plains Tribal Chairman's Association:

1. Providing the Deputy Secretary with sufficient authority to ensure that reform of the administration of trust assets is permanent. They do not believe the bill at present gives the Deputy Secretary the full and unified authority needed;

2. Including cultural resources as a trust asset for management purposes;

3. Incorporating the Office of Surface Mining and Bureau of Reclamation and other related agencies within the Department of the Interior and the Federal government under the purview of the Deputy Secretary;

4. Assuring that the legislation not infringe on tribal sovereignty by interfering with tribal involvement in the management of individual trust assets or tribal assets, or both;

5. Maintaining the Bureau of Indian Affairs' role as an advocate for tribe;

6. Maintaining current levels of Bureau of Indian Affairs employment;

7. Applying Indian employment preference to all positions created by the legislation;

8. Providing in law that Bureau of Indian Affairs funds not be used to fund the Deputy Secretary appointed by the legislation;

9. Stressing the importance of appropriating adequate funding to allow reform to succeed;

10. Reflecting in the legislative history that much of the funding needed for real trust reform be allocated at the local agency and regional levels of the Bureau of Indian Affairs; and

11. Placing more tribal representatives, including tribal resource managers, from various Bureau of Indian Affairs regions on the advisory board to the Office of Trust Reform.

The issues of trust reform and reorganization within the Bureau of Indian Affairs are nothing new to us here on Capitol Hill, or in Indian Country. Collectively, we have endured many efforts, some will intentioned and some

clearly not, to fix, reform, adjust, improve, streamline, downsize, and even terminate the Bureau of Indian Affairs and its trust activities.

These efforts have been pursued under both Republican and Democratic administrations. Unfortunately, they have rarely included meaningful involvement from tribal leadership, or recognized the Federal Government's treaty obligation to tribes.

I would be remiss if I did not commend this Administration for taking the time to travel to Indian Country to discuss this problem. Their interest in promoting dialogue with tribal leaders was welcome and appreciated. At the same time, however, talk must be supported by action if the trust management problem is to be successfully resolved.

The recent unveiling last month of the Department of the Interior's attempt to implement a trust reorganization plan without full tribal or congressional consultation in response to the Cobell v. Norton case was appalling and an egregious act by the federal government to Indian stakeholders. One tribal task force member described Interior's latest deceptive actions as ``a sham.'' That sentiment is widespread in Indian Country and exacerbates an underlying frustration and disappointment that is both understandable and disconcerting.

I share this frustration and disappointment. And I am concerned that the progress made jointly last year could be wasted away by a rising tide of disillusionment and mounting sense of betrayal.

The message I have heard from tribal leaders is clear. What is needed to achieve true reform are clear trust standards, one clear line of authority for trust management and the resources necessary to achieve meaningful reform, respect for self-determination, and meaningful consultation.

Meaningful consultation and acceptance of tribal status is the critical starting point if we hope to find a workable solution to the very real problem of trust management. The bill Senators McCain, Johnson and I are introducing today reflects this conviction.

There is no more important challenge facing the tribes and their representatives in Congress than that of restoring accountability and efficiency to trust management. And nowhere do the principles of self- determination and tribal sovereignty come more into play than in the management and distribution of trust funds and assets.

I am disappointed that this problem was not solved to the satisfaction of tribal leaders in the last Congress. Yet, that fight is not over, and my commitment to my South Dakota tribal constituents and Indian Country on this important issue has not diminished.

Last week, the Senate Democratic leadership introduced its priority bills for the 108th Congress. I am proud that trust reform is included as part of our civil rights legislation.

An effective long-term solution to the trust problem must be based on government-to-government dialogue. The McCain/Johnson/Daschle bill will not only provide the catalyst for meaningful tribal involvement in the search for solutions, it can also form the basis for true trust reform. I look forward to participating with tribal leaders, Administration officials and my congressional colleagues in pursuit of this essential objective.

Mr. Speaker, I rise today to discuss S. 168, the San Francisco Old Mint Commemorative Coin Act, introduced by Senator Feinstein and Senator Boxer of California. The proposal would create commemorative coins to help pay for the restoration of the San Francisco Mint known widely as the ``Old Granite Lady.'' I commend Senators Feinstein and Boxer for undertaking this commendable effort.

The San Francisco Mint was in service from 1870 to 1937, survived the San Francisco earthquake of 1906, and was utilized until a few years ago as federal offices. Today, modern building codes require that it be reinforced before it can safely be used in an area that is still prone to earthquakes.

I recently read an article in the February 11, 2003 edition of the Numismatic News, which I ask to be placed in the Congressional Record following my remarks, written by Bergen County Freeholder and my hometown Fair Lawn, New Jersey Mayor David L. Ganz, proposing modifications to S. 168 to further stimulate interest on the issuance of this coin. His proposals are worthy of consideration. Specifically, Mayor Ganz proposes to have commemorative coinage re-issued using historic coin designs that were widely used in the 19th century, are associated with the San Francisco Mint, and which would offer to coin collectors the affordable opportunity to receive proof specimens--a means to boost sales, increase the surcharge that will be used to help restore the Mint, and provide an exciting collector's opportunity as well.

For example, coin collectors know the tale of the 1870 three dollar gold piece with the ``S'' for San Francisco Mint mark on the reverse. The coin is unique and was formerly in the Louis Eliasberg collection. It is valued in the millions. There are other proof or uncirculated three dollar gold pieces that are quoted in Numismedia, a coin pricing guide, that sell for thousands of dollars.

The 20-cent piece also has a long history associated with the San Francisco Mint, including the 1875-S coin produced more than a century ago. An uncirculated example of this coin would cost hundreds of dollars. The same is true for the Liberty head nickel and the Barber dime--where the 1894-S, one of only 24 specimens known, is a six-figure rarity and a regular design is hundreds of dollars in pristine, uncirculated condition.

Mr. Ganz calls for special collector coins not intended for circulation, but bearing original designs of a century ago utilizing a contemporary date. They would be produced in proof, as uncirculated pieces, and offered to collectors with a modest surcharge that could raise $123 million, if the coins sold out, to help restore the Old Granite Lady.

Mr. Ganz's comments merit consideration for many reasons, not the least of which is that he is a respected numismatist. A former member of the Citizens Commemorative Coin Advisory Committee, he is one of the people credited by former Mint director Philip Diehl as being the source and inspiration for America's state quarters--which have given $5 billion back to the American taxpayer. I have known Mayor Ganz for many years and believe that his ideas merit consideration, and I hope that

they may be incorporated into this meritorious effort to restore the San Francisco Mint.

[From the Numismatic News, Feb. 11, 2003]

San Francisco $3 Would Sell Better Than $5

(By David L. Ganz)

True to her word, Sen. Dianne Feinstein, D-Calif., for

herself and Sen. Barbara Boxer, D-Calif., introduced S. 168

on Jan. 15, a bill entitled the ``San Francisco Old Mint

Commemorative Coin Act,'' which is a traditional revenue-

raising measure containing a silver dollar and a half eagle

($5) gold piece.

Like many dozens of other bills proposed over the course of

the last decade that have been designed to raise funds for a

noble purpose, it follows a template that has been approved

by the Treasury, the Mint, Congress itself, and even the

Citizens Commemorative Coin Advisory Committee.

That means that the coins are legal tender; have moderately

low mintages of 100,000 for the gold coins and 500,000 for

the silver--sales for which will never be achieved--and

surcharges designed to raise in the aggregate $3.5 million if

the gold coins sold out, and another $5 million if the silver

dollar version hit it big, for a possible total of $8.5

million.

Unfortunately, it will do neither and will most likely have

disappointing sales in the 25,000-50,000 coin range for gold

and in the 100,000-250,000 range for the silver dollar, from

which the Mint will take expenses, leaving the San Francisco

Museum and Historical Society a giant goose egg to help pay

for the restoration of the Old Granite Lady.

Mint accounting is not for knaves. Neither is it in

accordance with what most would refer to as generally

accepted accounting principles. The result is that an

exorbitant amount of overhead is charged against

commemorative coin production--it's a legitimate way to look

at it, but on a per-coin basis adds absurd amounts to cost

that would otherwise never be tolerated for purposes of

analysis or compensation.

One need only look at several recent commemorative results

and fork-overs to see just how difficult the present system

is. That's problematical where, as here, the goal is to raise

funds to help restore the San Francisco Mint to the grandeur

of yesteryear, when it was the proudest building in the old

financial district of the downtown.

Just by simple example, on the population Buffalo nickel

silver dollar commemorative for the Smithsonian, budget

documents submitted show an initial $3 million loss. Congress

authorized 500,000 of those coins--and they sold out in two

weeks--yet in the budget scoring of Jan. 25, 2001 (before

sales began), the outflow was $3 million down. (There would

eventually be $13.9 million in gross sales registered in the

fourth quarter of 2001.)

The San Francisco ``S'' mintmark has had a special allure

for more than 130 years. To those who were collecting coins

earlier than 1955, when production was suspended, the ``S''

mintmarked coins traditionally had lower and hence scarcer

mintages--and higher values.

The Old Granite Lady, which functioned from 1870 to 1937--

and made it through the San Francisco earthquake of 1906

virtually unscathed--has a long history involving coinage,

which the legislation that Sen. Feinstein introduced

recites at least in part.

``The San Francisco Old Mint is famous for many rare,

legendary issues, such as the 1870-S $3 coin, which is valued

today at well over $1 million,'' the precatory portion of the

bill begins--and then goes nowhere else.

Commemorative coinage should serve a purpose, none of which

is essentially important for funding, all of which is

integral to the integrity of the coinage process, the history

of American money and telling the story of American

numismatics in its larger sense.

There's nothing magical about the template that is being

utilized right now to create commemorative coinage. In an

earlier time in its 1980s, a different model was utilized--

and I participated quite actively in seeing to it that that

model was not only broken, but for purpose. Significantly, I

suggested it should be done again.

In 1982, modern commemorative coin issues began anew with

the introduction of a silver commemorative for the 250th

anniversary of George Washington's birth. There was no

surcharge; there was no beneficiary. The coin was produced,

it was sold and there as great success: 2.2 million

uncirculated pieces were manufactured and 4.8 million proofs.

The Olympic program came and went, but in 1984-1985, the

Statute of Liberty centennial commission had its chance, and

I had the opportunity to consult with them. Lee Iacocca, that

colorful personality who was then the chairman of Chrysler

corporation headed the commission. Dr. Stephen Brigandi was

the executive director.

The mold in those days was a dollar coin or two, plus a

gold piece. The Olympics used a $10 gold peace to disastrous

results, in part because it contained nearly a half ounce of

gold (resulting in too high an issue price) and also because

when enough coins weren't sold, the Mint produced more,

adding mintmarks as the distinguishing factor.

Two suggestions came from me: first, change the

denomination of the gold coin to a $5 gold piece--to lower

the price substantially--and second, introduce a copper-

nickel half dollar that could be produced as a circulating

commemorative coin with an uncirculated and proof counterpart

sold at a very modest mark-up to collectors.

They didn't buy into the circulating commemorative

concept--it took a dozen more years before the state quarter

program that I similarly proposed became reality--but whether

to go with a copper nickel low-value, low-cost coin came down

to a question of how many might be sold, and what the

proceeds would be from the surcharge. After all, the Statue

of Liberty needed to be refurbished for its centennial.

I made a bet with Brigandi--$100 as I recall it, though

that's a lot for a guy who usually bets a cent or a nickel--

and I predicted that such a coin would sell into the millions

and be a true partner and participant in a three-coin

program.

Ultimately, it became the most successful non-circulating

legal tender coin in history, with more than 900,000 struck

in uncirculated and over 6.9 million as proofs. No other

coin, before or since, has come close.

Here's why: it was a different coin, different

denomination, unusual, modest in price and distinctive.

Collectors were encouraged to buy into a concept that played

right into what they do: collect.

Those of us who are even casual about our hobby know that

we collect after a particular fashion. Some will try to

obtain all silver dollars, others all issues. Still others go

for a type set. But when it comes to new and unusual or even

different, it affords a rare opportunity, which is something

that I think S. 168 simply misses.

It's not too late to change it; the bill has merely been

introduced and is months away from action in the Senate, no

less the House of Representatives.

Here's what I would do to change the focus of the bill, and

to simultaneously increase its chance for economic and

commercial success--and at the same time, offer a boost to

several different areas of the hobby.

Capitalize on the history of the Mint and the coins that

have come from it.

One obvious way of doing that is to create a new $3 gold

piece--a play on the 1870-S that is unique (formerly in the

Eliasberg collection)--which was produced in the very year

that the Old Granite Lady opened for business.

To buy any $3 gold piece today, be prepared to plunk down

thousands of dollars for an uncirculated specimen, and

multiples of that for a proof. For the Mint to begin a new

commemorative series--or even a single one-year San Francisco

Mint coin in that denomination--would be a boost to the

secondary market, a promotion for $3 gold pieces of other

dates and denominations, and produce the possibility of a

sellout success at levels far above 100,000 pieces.

Where a half eagle or $5 gold piece contains .2420 troy

ounces of gold, the $3 gold pieces of regulation weight is

.1452 troy ounces. At $360 an ounce (more or less current

prices), the hard cost changes from $87 in gold to $52.27.

Lower the gold content, lower the price. The surcharge

doesn't have to change. What does change is the number of

people making a purchase. That should go way up--just as it

did for the Statute of Liberty half dollar. Net result: more

surcharge for the Old Granite Lady's restoration.

On the same basis, I'd probably think about adding a minor

coin--such as the nickel--or a subsidiary coin such as the

dime to the mix. There's a long history there, too, for each.

The first ``S'' mint on a nickel was 1912. The ``S'' dime

could be the 1894-S Barber design--a powerbroker concept. But

what is key is that it is different, unusual and likely to

have high sales--even with a surcharge--if the price is

simply not made obscene.

A third (or fourth) choice: a 20-cent piece (the 1875-S was

struck there, of course)--and for all of the same reasoning.

Add these and watch orders and dollars come flying in.

Prediction if authorities follow my suggestions: a sellout.

Here's how to do it: substitute language for the existing

bill in the Senate, or introduce a new one in the House, and

go to town for the benefit of the Old Granite Lady--and give

the San Francisco Mint a new historic life on the centennial

of its survival of the San Francisco earthquake of 1906.

108th Congress, 1st Session

Mr. President, I rise today to join Senator Hutchison in introducing the Air Cargo Security Act, a bill that passed the Senate by Unanimous Consent in the 107th Congress.

Today Senator Hutchison and I released a report from the General Accounting Office that demonstrates why the Congress and the Transportation Security Administration must, together, move quickly to shore up our vulnerabilities to protect against another terrorist attack.

I strongly believe that we must increase our defenses across the board to anticipate the next attack, not just correct the vulnerabilities that were already exploited by terrorists on September 11th.

After September 11th, Congress moved quickly to federalize the airport security screening workforce to prevent more hijackings, but we have not done enough to increase our air cargo security.

The General Accounting Office report shows that Congress must require the TSA to develop a strategic plan to screen and inspect air cargo to protect our Nation's air transportation system. According to this report, our air cargo system remains vulnerable to a terrorist attack because: first, there aren't enough safeguards in place to ensure that someone shipping air cargo under the ``known shipper'' program has taken the proper steps to protect against use by terrorists; second, cargo tampering is possible at various points where cargo transfers from company to company; third, air cargo handlers are not required to have criminal background checks, and they do not always have their identification verified; fourth and most importantly, most cargo shipped by air is never screened.

To address these problems, the GAO recommends that the Transportation Security Administration develop a comprehensive plan for improving air cargo security.

The legislation we are reintroducing today, directs the TSA to: 1. Develop a strategic plan to ensure the security of all air cargo; 2. Establish an industry-wide pilot program database of known shippers; 3. set up a training program for handlers to learn how to safe-guard cargo from tampering; and 4. Inspect air cargo shipping facilities on a regular basis.

The Aviation Security Act Congress passed after September 11 required the Transportation Security Administration to screen and inspect air cargo ``as soon as practicable.'' This report shows we cannot wait any longer. The time is now for the Senate to again take up this legislation, again pass this legislation, and for the TSA to prevent terrorists from tampering with the cargo loaded into the underbelly of our airplanes.

The General Accounting Office recommends that the Under Secretary for Transportation develop a comprehensive plan for air cargo security that includes priority actions identified on the basis of risk, costs, deadlines for completing those actions, and performance targets.

The TSA has a great deal of options at its disposal. The TSA could: screen air cargo for explosives; secure cargo with high-tech seals; control access to holding areas containing cargo; use cargo tracking systems; install more cameras in cargo areas at airports; use blast resistant containers; have more bomb-sniffing dogs; put cargo in decompression chambers before loading it onto an aircraft; require the identity of people making air cargo deliveries to be checked; establish an industrywide computer profiling system; require criminal background checks for employees at freight forwarders and consolidators; and require third party inspections.

We do not expect the TSA to X-ray and scan all cargo for explosives because shippers and carriers would be able to process only 4 percent of cargo received daily, which would severely disrupt the air cargo industry. However, the Federal Government can deploy a combination of the techniques I have listed to implement a comprehensive security plan for air cargo.

Since one half of the hull of each passenger aircraft is typically filled with cargo and 22 percent of all cargo transported by plane is loaded on passenger flights, I believe air cargo security is just as important as passenger security. In fact, you cannot keep passengers safe without stronger air cargo security.

Each time there is a major jet crash or bombing, we reexamine our aviation security. I hope it will not take another accident or attack for us to finally pass this legislation into law.

I would like to thank Senator Hutchison for her leadership on the issue of transportation security and I urge my colleagues to support our legislation.

Mr. President, I rise today to join my colleague Senator Boxer, to introduce the ``San Francisco Old Mint Commemorative Coin Act'' to authorize the United States Mint to issue a commemorative coin that will honor the San Francisco Old Mint and help restore this historic building in downtown San Francisco.

The San Francisco Old Mint Building is an important historical landmark for San Francisco, the State of California, and the United States. Beginning its operations in 1854, the San Francisco Mint was established to take advantage of the plentiful gold and silver mined in the West during the California Gold Rush. At one point, more than half of the money minted in the United States came from the San Francisco Mint, and it once held a third of the Nation's gold supply. Today the ``S'' Mint Mark is found on many rare coins as well as on many new proof coin sets.

The Old Mint Building, located in the heart of the city, has been standing for more than 125 years as the oldest stone building in San Francisco. It is the Old Mint opened in 1874, it was the largest Federal building in the West. Architect Alfred B. Mullet designed this building which is listed on the National Register of Historic Places. A.B. Mullet is the same architect who designed both the U.S. Treasury building and the Old Executive Office Building here in Washington D.C.

A product of America's ``Gilded Age,'' the Old Mint is architecturally reflective of a distinguished line of Greek revival- style buildings that were soon to be eclipsed by other designs at the turn of the century.

Aided by its magnificent stone structure, the Old Mint Building was able to survive the San Francisco earthquake and fire of 1906. In fact, the Mint was the only financial instruction that remained operable after the earthquake and the building was used as the treasury for the city's disaster relief funds.

The San Francisco Old Mint Building minted coins until 1937 when the building became too small and its operations moved to a larger space elsewhere in San Francisco. In the years since then, the building has deteriorated. In 1994, the Bureau of the Mint closed the Old Mint because it could not afford the then-estimated $20 million seismic retrofit to bring the building up to code. Since then the building, transferred to the General Services Administration, has remained closed.

Now, the San Francisco Museum and Historical Society has proposed an exciting project to restore and rejuvenate the Old Mint Building in downtown San Francisco. A fine history museum supported by shops, restaurants, community office space, a coin shop, and a visitors center will combine to make the building a striking and viable destination.

I am introducing this legislation to honor the history of the San Francisco Old Mint and the role it played in rebuilding the great ``City by the Bay'' after the 1906 Earthquake and Fire. This legislation will authorize the Secretary of the Treasury to mint and issue 100,000 $5 gold coins and 500,000 $1 silver coins, which will be emblematic of the San Francisco Old Mint Building and its importance to California and the United States.

The commemorative coin will also help provide funds for the building's restoration. The proceeds generated from the sale of these commemorative coins will be paid to the San Francisco Museum and Historical Society for the building's rehabilitation.

The San Francisco Old Mint is venerated by coin collectors as the ``Granite Lady'' and I believe it is worthy of a commemorative coin. I am very pleased to note that the Citizens Commemorative Coin Advisory Committee, CCCAC, has agreed and that its members have unanimously endorsed this legislation for a 2006 coin, a year that will mark the 100-year anniversary of the building's survival of the 1906 earthquake and fire.

2006 is also the year the U.S. Mint will issue the California quarter and I expect both coins will be attractive to coin collectors. The CCCAC's recommendation will be included in its 2002 annual report that will be delivered to Congress before the end of this month.

Collectors, Californians, and millions of Americans hold the San Francisco Old Mint in the highest regard as a national treasure. Because no other such icon of the numismatic community has been honored by the issuance of a commemorative coin, I believe the San Francisco Old Mint merits commemoration at this time.

I believe honoring and restoring the San Francisco Old Mint Building is an important historic preservation project. I hope my colleagues will join me to support the San Francisco Old Mint Commemorative Coin Act to honor the unique and proud history of the ``Granite Lady.''

Mr. President, I rise today with my colleague, Senator DeWine, to introduce legislation which will help maintain our leadership in a field Thomas Edison invented over 100 years ago, lighting.

The title of this bill is the Next Generation Lighting Initiative, or NGLI. The NGLI's purpose is to develop a partnership between our government, industry, and the research community, to enable the U.S. lighting to illuminate our surroundings using energy efficient semiconductors. This bill is structured along the lines of the well known government--industry semiconductor partnership called SEMATECH which the Congress authorized in the 1988 National Defense Authorization Act.

Lighting currently accounts for roughly 19 percent of the energy use in the United States. Lighting is a $40 billion dollar global industry. The United States occupies roughly one-third of that market. Today's lighting market primarily consists of two technologies. The first technology is incandescent

lighting, that's the one Thomas Edison invented over 100 years ago. Incandescent lighting relies on running a current through a wire to heat it up and illuminate your surroundings, but only 5 percent of the electricity in a conventional bulb is converted into visible light. The second type of lighting is fluorescent lights, which use a combination of chemical vapors, mainly mercury, to discharge light when current is passed through it. Fluorescent lights are six times more efficient than a light bulb.

In 1998, electricity from lighting cost about 47 billion dollars, which accounted for about 100 million tons of carbon equivalent from fossil energy plants.

Today, this paradign is changing, because some scientists recently made a leap ahead in lighting research. Technology leaps displace, very quickly, traditional markets. We know the stories all too well, the horse courier, the telegraph, the telephone and finally the Internet.

That's why we are proposing this legislation, because some advances have been made in the areas of solid state lighting that require a national investment that no one lighting industry can match. This emerging technology has the capability to disrupt our existing lighting markets. So quickly in fact, that other countries have formed consortia between their governments, industries, laboratories and universities. Solid state lighting is being taken very seriously around the world.

Let me describe solid state lighting. The best examples are red light emitting diodes, or ``LED's'', found in digital clocks. LED's produce only one color but they do not burn up a wire like a bulb and are seven times more efficient.

Until recently LED's were limited to yellow or red. That all changed in 1995. In 1995, some Japanese researchers developed a blue LED. Soon other bright colors started to emerge, such as green. That is when things started to change. Because, white light is a combination of red, blue, the recent Japanese breakthrough, and green or yellow. The recent Japanese breakthrough of that simple blue LED has now made it possible to produce white light from LED's ten times more efficient than a light bulb.

If it's successful, white light LED's will revolutionize lighting technology and will disrupt the existing industries. It's imperative that we move quickly on these advances. We need a consortia between our government, industry, research labs and academia to develop the necessary pre-competitive research to maintain our leadership role in this field.

I'd like to mention one other technology that will change lighting. That technology is found in your cell phone and on your computer screen. It's called conductive polymers. Three Nobel Prizes were just awarded for this technology. Conductive polymers offer the possibility of covering large surface areas and replacing fluorescent lamps. These materials will not only provide white light, but can display text or programmed color pictures. These technologies can be Internet controlled to adjust building lighting across the country.

Let me describe the Next Generation Lighting Initiative Act. If enacted, it will allow our country to capture these revolutionary mergers between lighting and information. It will supply the necessary pre-competitive R&D which no one industry alone can provide, and, which we as holders of the public trust of basic research owe a duty to further. It will keep the United States in a leadership role for commercial lighting and promote energy efficiency that is ten times that of incandescent lights and twice that of fluorescent lights. We need to enact this legislation now.

The Next Generation Lighting Initiative authorizes the Department of Energy to grant up to $460 million over ten years to a consortium of the United States lighting industry and research institutions. The goals of the Act are to have a 25 percent penetration of solid state lighting into the commercial markets by the 2013. The Next Generation's consortium will perform the basic and manufacturing research. The lighting industry will take this R&D and develop the necessary technologies to make it commercially viable.

This is precompetitive research. It is research that no one industry by itself can perform and which we have a duty to promote together with industry. It has implications for our country's energy policy far broader than economic competitiveness. The potential reduction in energy consumption makes it a national initiative. Once the pre- competitive research is transitioned to industry then it should be terminated, we think that will take about 10 years.

If this initiative is successful, then by 2025, it can reduce our energy consumption by roughly 17 billion watts of power or eliminate the need for 17 large electricity generating plants. That's as much as 17 million homes consume in a single day. That's more homes than in California, Oregon, and Washington combined.

Almost all of the language of this bill was worked out in detail with the House during the 107th Congress as part of the energy bill conference. We feel it is not only bipartisan but bicameral, and we hope that in this Congress it becomes law.

So let me conclude, by saying that the Next Generation Lighting Initiative will carry that U.S. lighting industry into the twenty-first century. It capitalizes on technologies that have the potential to displace our lighting industry. This Initiative will reduce our nation's energy consumption and greenhouse gas emissions. The research necessary to advance this technology requires a national investment that must be in partnership with industry.

I encourage my colleagues to review this bill, offer their comments, and join us in its support. 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: