E-85 Fuel Utilization and Infrastructure Development Incentives Act of 2005

Mr. President, I rise today with Senator Collins to introduce legislation to help reverse the devastating population decline and economic distress that has plagued individuals and businesses in Aroostook County, the northernmost county in Maine. What the bill does is simple, it will bring all of Aroostook County under the Empowerment Zone (EZ) program. The legislation is identical to a bill that we introduced in the 108th Congress and was included in the FY 2004 Agriculture Appropriations bill in 2003 as passed by the Senate.

To fully grasp the importance of this legislation, it is necessary to understand the unique situation facing the residents of Aroostook County. ``The County'', as it is called by Mainers, is a vast and remote region of Maine. As the northernmost county, it shares more of its border with Canada than its neighboring Maine counties. It has the distinction of being the largest county east of the Mississippi River. Its geographic isolation is even more acute when considering that the county's relatively small population of 73,000 people are scattered throughout 6,672 square miles of rural countryside. Aroostook County is home to 71 organized townships, as well as 125 unorganized townships much of which is forest land and wilderness.

As profound as this geographic isolation may seem, it is the economic isolation and the recent out-migration that has had the most devastating impact on the region. The economy of northern Maine has a historical dependence upon its natural resources, particularly forestry and agriculture. While these industries served the region well in previous decades, and continue to form the underpinnings of the local economy, many of these sectors have experienced decline and can no longer provide the number and type of quality jobs that residents need.

While officials in the region have put forward a Herculean effort to redevelop the region, with nearly 1,000 new jobs at the Loring Commerce Centre alone, Aroostook County is still experiencing a significant ``job deficit'', and as a result continues to lose population at an alarming rate. Since its peak in 1960, northern Maine's population has declined by 30 percent. Unfortunately, the Main State Planning Office predicts that Aroostook County will continue losing population as more workers leave the area to seek opportunities and higher wages in southern Maine and the rest of New England.

In January 2002, a portion of Aroostook County was one of two regions that received Empowerment Zone status from the USDA for out-migration. The entire county experienced an out-migration of 15 percent from 86,936 in 1990 to 73,938 in 2000. Moreover, a shocking 40 percent of 15 to 29-year-olds left during the last decade.

The current zone boundaries were chosen based on the criteria that Empowerment Zones be no larger than 1,000 square miles, and have a maximum population of 30,000 for rural areas. The lines drawn for the Aroostook County Empowerment Zone were considered to be the most inclusive and reasonable given the constraints of the program. It should be noted as well that the boundaries were drawn based on the 1990 census, making the data significantly outdated at the start and included the former Loring Air Force Base and its population of nearly 8,000 people, which had closed nearly 8 years before the designation, taking its military and much of its civilian workforces with it. The Maine State Planning Office estimated that the base closure resulted in the loss of 3,494 jobs directly related to the base and

another 1,751 in associated industry sectors for a total loss of $106.9 million annual payroll dollars.

Some of the most distressed communities that have lost substantial population are not in the Empowerment Zone, and other communities like Houlton literally are divided simply by a road, having one business on the south side of the street with no Empowerment Zone designation look out their window to a neighboring business on the north side of the street with full Empowerment Zone benefits. The economic factors for these communities and for these neighbors are the same as those areas within the Empowerment Zone. This designation is not meant to cause divisiveness within communities, it is created to augment a partnership for growth and to level the playing field for all Aroostook County communities who have equally suffered through continuing out migration whether it be in Madawaska or Island Falls.

The legislation I am introducing would provide economic development opportunities to all reaches of Aroostook County by extending Empowerment Zone status to the entire county. This inclusive approach recognizes that the economic decline and population out-migration are issues that the entire region must confront, and, as evidenced by their successful Round III EZ application, they are attempting to confront. I believe the challenges faced by Aroostook County are significant, but not insurmountable. This legislation would make great strides in improving the communities and business in northern Maine, and I urge my colleagues to support this bill.

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

Mr. President, as Chair of the Senate Committee on Small Business and Entrepreneurship, I have long believed that it is my responsibility and the duty of this chamber to help small businesses, as they are the driver of this Nation's economy, responsible for generating approximately 75 percent of net new jobs annually.

Today, I rise with Senator Bennett to introduce legislation that would address the crisis that faces small businesses when it comes to purchasing quality, affordable health insurance. This is not a new crisis. Nearly 46 million Americans are currently uninsured. We've now experienced double digit percentage increases in health insurance premiums in four of the past five years. Small businesses face difficult choices in seeking to provide affordable health insurance to their employees. We must act now.

Study after study tells us that the smallest businesses are the ones least likely to offer insurance and most in need of assistance. According to the Employee Benefit Research Institute, of the working uninsured, who make up 83 percent of our nation's uninsured population, 60.6 percent either work for a small business with fewer than 100 employees or are self-employed.

Furthermore, many of the small businesses who we meet with tell us how they feel like the cost and complexity of the health care system has moved health insurance far beyond their reach.

That is why today we introduce the Small Business Health Education and Awareness Act of 2006. This bill establishes a pilot, competitive matching-grant program for Small Business Development Centers (SBDCs) to provide educational resources and materials to small businesses designed to increase awareness regarding health insurance options available in their areas. Recent research conducted by the Healthcare Leadership Council has found that a short, less than 10 minute education session, can increase small business knowledge and interest in offering health insurance by about 33 percent.

For those of you who are not familiar, SBDCs are one of the greatest business assistance and entrepreneurial development resources provided to small businesses that are seeking to start, grow, and flourish. Currently, there are over 1,100 service locations in every state and territory delivering management and technical counseling to prospective and existing small business owners.

Our legislation would require the Small Business Administration (SBA) to provide up to 20 matching grants to qualified SBDCs across the country. No more than two SBDCs, one per State, would be chosen from each of the SBA's 10 regions. The grants shall be more than $150,000, but less than $300,000 and shall be consistent with the matching requirement under current law. In creating the materials for their grant programs, participating SBDCs should evaluate and incorporate relevant portions existing health insurance options, including materials created by the Healthcare Leadership Council.

In addition, SBDCs participating in the pilot program would be required to submit a quarterly report to the SBA.

Enacting this legislation is an important step in the right direction towards assisting small businesses as they work to strengthen themselves, remain competitive against larger businesses that are able to offer affordable health insurance, and in turn bolster the entire economy.

We encourage our colleagues to join us in supporting this bill, and to continue to work to address the issues facing the small business community.

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

Mr. President, as Chair of Senate Committee on Small Business and Entrepreneurship, I rise today to introduce The Small Business Partners In Reconstruction Act of 2006. This legislation, co- sponsored by Senator David Vitter, is the product of 3 hearings held in my Committee in September and November 2005, and in February 2006, which examined the response of the Small Business Administration, the Army Corps of Engineers, the Department of Homeland Security and its Federal Emergency Management Agency, and other Federal agencies to the devastation wrought by the Hurricanes Katrina and Rita on our Gulf Coast states.

Speaking on September 15, 2005 from New Orleans' historic Jackson Square, President Bush declared that ``It is entrepreneurship that creates jobs and opportunity; it is entrepreneurship that helps break the cycle of poverty; and we will take the side of entrepreneurs as they lead the economic revival of the Gulf region.'' Unfortunately, the Federal Government's performance has not matched the President's declaration. This is particularly true with regards to the role of small firms, especially Gulf Coast small firms, with regards to contracts and subcontracts for recovery and reconstruction. Too often, small contractors have been treated in the disaster contracting process less like the partners in disaster recovery and economic revitalization they are, and more like unwanted stepchildren. Eight months after Hurricane Katrina, it is time for this to change.

To begin with, some Federal bureaucrats have used the Katrina and Rita disasters to exclude small business from contracting in the name of emergency and speed. Contracting with small firms, it was said, does not provide sufficient flexibility to the contracting officers in time of crisis. Quite the opposite is true. The Small Business Act contains flexible contracting authorities as part of the 8(a) program, the HUBZone program, and the service-disabled veteran-owned program, which allow Federal agencies to quickly buy goods and services in emergency situations. Indeed, on May 30, 2003, the Office of Federal Procurement Policy issued guidance on Emergency Procurement Flexibilities, which encouraged Federal agencies to use contracting flexibilities, such as the HUBZone flexibilities, which are part of the Small Business Act. This guidance was largely ignored, as billions of dollars went to large corporations through non-competitive mechanisms such as no-bid contracts or the so called micro-purchase authority, originally intended by Congress to cover small purchase card transactions.

My legislation requires the Office of Federal Procurement Policy and the Small Business Administration (SBA) to ensure that Federal contracting officials have the most comprehensive and up-to-date guidance on the full use of available small business emergency procurement flexibilities, and that such guidance is published in the Federal Register. My legislation also ensures that the SBA provides government-wide training for procurement agencies on using small business contracting flexibilities in emergency situations, and directs the SBA to designate at least one advisor for small business emergency contracting who would help Federal agencies apply small business procurement flexibilities in emergency situations.

Small contractors have also been denied access to reconstruction dollars by paperwork and bureaucracy. Red tape had the most serious effect on small disadvantaged businesses. Many of these contractors have been certified to do business under the Federally-funded, Congressionally-established Disadvantaged Business Enterprise Program (DBE) for transportation contracting such as highway or bridge construction. In the Federal procurement system, a parallel Small Disadvantaged Business (SDB) Program exists. According to law and the Memorandum of Understanding between the SBA and the U.S. Department of Transportation, the DBE certifications are based on the SDB certification requirements under the Small Business Act. Unfortunately, DBEs have been unable to secure recognition as SDBs by the Federal agencies or by Federal prime contractors. As a result, agencies and prime contractors had little assurance that SDB goals may be met by doing business with DBEs. My measure will ensure that capable small contractors enjoy full reciprocity among contracting programs instead of the red tape they currently face.

Lack of comprehensive procurement data on Katrina and Rita contracting is another flaw which my bill is trying to correct. It is hard to believe that almost 8 months since the Hurricane Katrina struck, the Federal Government's disaster contracting ship is literally sailing blind. Both the Small Business Act and the Office of Federal Procurement Policy Act require that accurate and comprehensive data on government contracting and subcontracting, especially including small business participation, be collected and maintained. Although the government-wide procurement spending database, the Federal Procurement Data System (FPDS), collects the data related to Hurricane Katrina and Rita reconstruction, this data is demonstrably incomplete. According to the Government Accountability Office and admissions of Federal procurement officials, the FPDS data is not accurate and omits billions in Defense and Homeland Security contracts. As a result of these deficiencies, the Executive Branch made exaggerated claims concerning the share of reconstruction work that went to small businesses. For instance, last October, the Commerce Department claimed that small businesses received 72 percent of Katrina contracting dollars, and the SBA claimed the small business share to be at 45 percent. During hearings before my Committee, the GAO confirmed that the Administration's claimed numbers are unrealistic and unsubstantiated. My legislation directs the Administrators of the SBA and the OFPP to ensure that the Federal Procurement Data System reflects comprehensive government-wide contracting spending on Katrina and Rita reconstruction.

For years, the Historically Underutilized Business Zone (HUBZone) program, created to direct Federal contacting dollars to small firms in economically distressed areas, has been recognized as a potent economic development stimulus. Since its inception in 1997, the HUBZone program stimulated the hiring of over 124,000 HUBZone residents and investment of over half a billion dollars in HUBZones by HUBZone-certified firms. With the support of the Administration, I propose extending the HUBZone designation to the disaster region. A HUBZone designation would enable small businesses located in the disaster area and employing people in that area to receive contracting preferences and price evaluation preferences to offset greater costs of doing business. Extending the HUBZone designation to the Gulf Coast would bring needed businesses development tools to affected areas of the Gulf Coast. Under my proposal, the SBA Administrator would have the discretion to define the geographic scope or duration of this designation to ensure that the HUBZone preference is targeted to those who need it the most.

Small businesses vying for government contracts or subcontracts often must post bid or performance bonds in order to convince Federal contracting officials or prime contractors that small business are a good project risk. In turn, small firms must seek bonding from private bonding companies. The SBA, through its surety bond program,

has provided guarantees on bonds awarded to small businesses up to $2 million. But small firms need an increase in bonds to handle larger projects for hurricane relief. Local small businesses in the Gulf Coast can use higher bonds to compensate for the damage to their assets from the hurricanes. My legislation would increase the maximum size of SBA surety bonds from $2 million to $5 million, and provide the SBA with authority to increase the maximum size to $10 million upon request of another Federal agency. In its proposal to re-build the Gulf Coast region, the Administration suggested making the $5 million increase.

My legislation also directs the SBA to create a contracting outreach program for small businesses located or willing to locate in the Katrina disaster area for the next five years. Federal contracts and subcontracts can provide critical assistance to small businesses located in the areas devastated by the hurricanes in the form of solid business opportunities and prompt, steady pay. In addition, government procurement would open doors for many local small businesses to participate in the long-term reconstruction work in the Gulf Coast areas. While many small businesses would benefit from other forms of disaster assistance, many of them want to get back to work and into business as soon as possible. Technical assistance and outreach through the SBA, the Procurement Technical Assistance Centers, the Federal Offices of Small and Disadvantaged Business Utilizations, and other organizations could prove invaluable to these firms.

Yet, outreach alone would not ensure fair participation of small businesses in Gulf Coast reconstruction contracts. To promote jobs creation and development in the disaster region, the Federal Government must set and follow definitive goals for small business participation. Prior to the disaster, small construction companies in Alabama, Mississippi, and Louisiana received nearly $500 million in Federal contracts a year. Total small business contracts in the Gulf Coast region exceeded $3 billion a year. With the Federal cost of hurricane relief and rebuilding estimated at over $100 billion, small businesses, particularly those located in the disaster area and that employ individuals in the affected areas, should receive their fair share of Federal contracting and subcontracting dollars. My legislation establishes a 30 percent prime contracting goal and a 40 percent subcontracting goal on each agency's hurricane-related reconstruction contracts. These goals are compatible with the Department of Homeland Security's and the Army Corps of Engineers' history of small business achievements.

My legislation would also address two unfortunate provisions in the Second Katrina Supplemental Appropriations that unwisely changed the emergency procurement authority Congress granted to contracting officers in the aftermath of 9/11 and reclassified many reconstruction contracts into categories that excluded small firms from prime contracting or subcontracting. I spoke out against these provisions, and Congress ultimately repealed them last year. Nonetheless, this bill puts in place safeguards to ensure that small firms do not fall prey to such actions again. My legislation protects the Small Business Reservation (SBR) for disaster-related contracts below the Simplified Acquisition Threshold (SAT). The SAT and the SBR are normally set at $100,000. The Federal Acquisition Streamlining Act allowed Federal agencies to use simplified procedures for all contracts below the SAT, but only if they attempt to place, or ``reserve'', these contracts to qualified small businesses. Many small businesses qualify for contracts under expedited procedures under the Small Business Act, which would help to move the reconstruction process forward. The SBR does not delay relief contracting. If no qualified small business is available to do the job, agencies can place the contract with any qualified supplier. This provision restores the parity between the SBR and the SAT any time the SAT is increased for disaster-related contracts.

My legislation also restores small business subcontracting requirements in emergency procurements. The Second Katrina Supplemental abolished small business subcontracting requirements for all Katrina- related contracts by treating contracts for hundreds of millions of dollars as purchases of commercial items, like contracts for office supplies. This is an improper and unjustified procurement practice. The Army Corps of Engineers currently imposes a 73 percent subcontracting requirement on hurricane-related contracts, demonstrating that the subcontracting requirements are not onerous. Under the Small Business Act, only a ``good faith effort'' to provide subcontracting opportunities is required. The legislation allows a grace period of 30 days to negotiate an acceptable plan (subject to a 50 percent payment limitation until the plan is concluded).

Looking forward, my legislation directs the Administrators of the OFPP and the SBA to work with other Federal agencies to ensure creation of multiple-award contracts for disaster recovery which are set aside for small business concerns. As the GAO testified before the Senate Committee on Small Business and Entrepreneurship last year, Federal agencies lacked adequate acquisition planning for hurricane disaster relief. This measure would reverse this practice both for ongoing and for future disaster recovery efforts.

I am a firm believer that the reconstruction acquisition process must be not only efficient, but also transparent. In this regard, the Federal Government provides central website postings for all Katrina- related opportunities through the SBA's Sub-NET. Unfortunately, the SBA's Sub-NET subcontracting database, though recommended by the Government, has been until recently unused by the Katrina prime contractors. My legislation directs all prime contractors which received substantial Federal contracts related to the Hurricanes Katrina and Rita for which subcontracting plans are required to post subcontracting announcements on the SBA's Sub-NET online database.

Finally, my legislation addresses the government's failure to direct contract dollars to those who need them the most--local small businesses. During the hearings in my Committee last November, I was deeply troubled to discover that Federal agencies failed to grant business opportunities to qualified Gulf Coast small firms. These shocking practices make a mockery of our national commitment to rebuild the Gulf Coast. For instance, while investigating Hurricane Katrina contracts at my request, the GAO found a memorandum from an official in the Army Corps of Engineers informing the SBA that the Corps has successfully concealed the information about millions of dollars in upcoming contracts for mobile classrooms in Mississippi from, among others, local small businesses. The Corps requested that SBA approve giving this work to an out-of-state company without any prior experience. As a result, the Corps excluded a local small business, licensed by the Mississippi Department of Education, from bidding. Incredibly, the SBA obliged and approved the contract three times, eventually increasing its value from $10 million to $47 million.

Practices such as these violate Section 15 of the Small Business Act, which unequivocally directs priority in government contracts ``to small business concerns which shall perform a substantial proportion of the production on those contracts and subcontracts within areas of concentrated unemployment or underemployment or within labor surplus areas.'' It is hard to imagine a clearer example of an ``area of concentrated unemployment or underemployment'' or a area with labor surplus than the devastated Gulf Coast region. Nonetheless, some have ignored the clear command of the statute. My legislation would designate the Gulf Coast disaster area as a labor surplus area for purposes of the Small Business Act's preference for labor surplus area contractors. In addition, this provision authorizes Federal agencies to use contractual set-asides, incentives, and penalties to enhance participation of local small business concerns in disaster recovery contracts and subcontracts.

Finally, my legislation suspends the application of the Small Business Competitiveness Demonstration (Comp Demo) program to Gulf Coast disaster contracts. The Comp Demo Program denies the protections of the Small Business Act like set-asides to small businesses involved in construction and

specialty trade contracting, refuse systems and related services, landscaping, pest control, non-nuclear ship repair, and architectural and engineering services, including surveying and mapping. Historically, small businesses have been the backbone of these industries, and these industries are in heavy demand for disaster recovery efforts. The Comp Demo Program, ostensibly a test program, denies Federal agencies likes the Departments of Defense and nine other agencies the ability to do small business set-asides. Essentially, the Comp Demo Program reserves whole industries for big business. Last year, at the request of the Department of Defense, I supported an amendment to terminate the Comp Demo Program. The Senate agreed that small businesses in all industries should receive the full protections of the Small Business Act, and unanimously voted to repeal this Program. Suspending this Program for Katrina and Rita contracts would go a long way towards restoring fair treatment for small businesses affected by this disaster.

I believe this legislation will find broad support in this body. Indeed, the HUBZone designation, the outreach programs, and the surety bonding increase have already been adopted by the Senate on a vote of 96-0 as part of my amendment to the Science, State, Commerce, and Justice Appropriations Act for Fiscal Year 2006. The provisions dealing with the small business reservation offset and retention of small business subcontracting in emergency procurements were cosponsored by a bi-partisan group of Senators as part of my bi-partisan disaster relief bill, S. 1807. With the Senate leadership and every Senator of both parties on the record in support of greater access of small businesses to Federal contracts, I look forward to speedy consideration of this legislation and its support by the Senate.

Mr. President, I rise today to introduce the TANF Financial Education Promotion Act of 2005 in order to call attention to an important issue for low-income families financial literacy. I am proud to be reintroducing this bill during the month of April, which is Financial Literacy Month.

One of the goals of the Temporary Assistance for Needy Families (TANF) Program is to help low-income families transition from welfare to work. However, there is more to leaving poverty than just finding a job. Welfare recipients must learn the skills that will help them build savings and establish good credit so that they can stay off welfare. Currently, TANF does not offer financial education to low-income individuals, leaving welfare recipients at risk of dependence upon public assistance.

Furthermore, millions of low-income families, including families receiving TANF, are unbanked. These households tend to do their banking at check-cashing outlets that charge exorbitant fees for such services. A lack of basic consumer finance education, including lack of familiarity with how a checking or savings account works, has been cited as a major reason why millions of Americans do not set up such accounts.

Not only are low-income people more likely to be unbanked than other individuals, but they are also the most vulnerable to abusive lending practices and hostile credit arrangements. Those with the fewest financial resources end up paying the most to obtain financing. Financial education that addresses predatory lending will help prevent low-income families from becoming victims of unaffordable loan payments, equity stripping, and foreclosure.

Burdened by significant financial needs, welfare recipients need practical information on the fundamentals of saving, household budgeting, taxes, and credit. With this knowledge, individuals will be better equipped to move toward self-sufficiency and maintain financial independence.

The TANF Financial Education Promotion Act makes strides in financial literacy for welfare recipients by requiring states to use TANF funds to collaborate with community-based organizations, banks, and community colleges to create financial education programs for low-income families receiving welfare and for those transitioning from welfare to work.

I am not alone in advocating financial literacy for TANF recipients. Federal Reserve Chairman Alan Greenspan has said, ``Educational and training programs may be the most critical service offered by community-based organizations to enhance the ability of lower-income households to accumulate assets.''

I urge my colleagues to join me in helping the most vulnerable families in the United States get access to the tools they will need to successfully make the transition from welfare to work.

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

Mr. President, I would like to speak today about an issue that I believe should be a lifelong goal for all Americans-- financial literacy.

More specifically, I want to highlight the necessity of financial literacy for men and women who are close to retirement. Senior citizens are too often the victims of predatory mortgage and lending abuses and other financial scams. AARP surveys show that over half of telemarketing fraud victims are age 50 or older. In fact, financial exploitation is the largest single category of abuse against older persons. It is clear that the vulnerability of this population stems from a lack of financial knowledge, so it is more important than ever that this Congress take steps to increase the availability of financial education for midlife and senior citizens.

Not only does poor financial literacy leave older Americans vulnerable to financial fraud, but it also leads to poor retirement planning. In the next thirty years, the number of Americans over the age of 65 will double. For many of these Americans, Social Security alone will be insufficient to cover all their expenses, particularly as health care costs rise. Only about half of American workers are currently participating in any pension plan, leaving more than 75 million Americans without an employer-sponsored pension. Even worse is the fact that fifty million Americans have no retirement savings whatsoever. These statistics are frightening. As our population lives longer, we must focus on retirement education for mid-life and aging Americans as well as consumer education for seniors.

My legislation, the Education for Retirement Security Act will address the need for financial literacy among seniors by creating a $100 million competitive grant program that would provide resources to State and area agencies on aging, and nonprofit community based organizations, to provide financial education to mid-life and older Americans. The goal of this education is to enhance these individuals' financial and retirement knowledge and reduce their vulnerability to financial abuse and fraud, including telemarketing, mortgage, and pension fraud. The bill also creates a national technical assistance program that will designate at least one national grantee to provide financial education materials and training to local grantees.

I am proud to be reintroducing this legislation during the month of April, which is Financial Literacy Month.

We must offer those individuals who are close to or in retirement the tools they will need to make sound financial decisions and prepare appropriately for their retirement. The Education for Retirement Security Act will help older Americans learn how to avoid scams and invest well. With savvy financial planning and smart consumer skills, senior citizens will be more empowered to protect themselves and ultimately be better able to enjoy a more secure retirement.

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

Mr. President, I rise today to introduce the Youth Financial Education Act. I am pleased to introduce this bill during the month of April--Financial Literacy Month.

It is hard to underestimate the importance of financial literacy for our youth. As credit, banking, and financial systems in this country become more and more complex, it is time to make sure that our education system teaches our children the fundamental principles of earning, spending, saving and investing, so that they can be successful citizens. Federal Reserve Chairman Alan Greenspan said himself that ``Improving basic financial education at the elementary and secondary school levels is essential to providing a foundation for financial literacy that can help prevent younger people from making poor financial decisions.'' It is crucial not only for the well-being of our children, but for the future of our society as a whole that all citizens understand how to manage a checking account, use a credit card, and estimate their taxes.

According to the Jump$tart Coalition for Personal Financial Literacy's Survey of High School Seniors, which measures students' aptitude and ability to manage financial resources such as credit cards, insurance, retirement funds and savings accounts, only 52.3 percent of students answered the survey questions correctly. In less than a year, 54 percent of these students who go onto college will carry a credit card. These statistics make it evident that we must do more to arm our youth with the tools they need to make informed decisions about the fiscal realities they will face upon entering college or the workforce.

In 2004, only 7 states required students to complete a course that includes personal finance before graduating from high school. In my home State of New Jersey, New Egypt High School is the only school that requires a course financial education. Several years ago I had the pleasure of teaching a class of these students, and came away impressed with their knowledge and competency in financial matters.

While awareness of the importance of financial literacy is improving, it is still not being addressed appropriately in schools. Our schools must prepare our children to succeed in every way, including in their financial decisions.

I am pleased that I successfully added a provision to the No Child Left Behind Act giving elementary and secondary schools access to funds that will allow them to include financial education as part of their basic educational curriculum. Although this was an important step in the right direction, Congress can and should do more to address this Issue.

The legislation I am introducing today will provide grants to States to help them develop and implement financial education programs in elementary and secondary schools. These programs will offer professional development for teachers and prepare them to provide financial education. It would also establish a national clearinghouse for instructional materials and information regarding model financial education programs.

Earlier this year, the Senate debated the Bankruptcy Reform Bill that seeks to change the rules governing bankruptcy. While I agree that bankruptcy reform should provide an incentive for capable individuals to honor their financial obligations, this legislation will make it that much more difficult for people who have fallen into debt to declare bankruptcy. With these reforms imminent, it will be all the more critical to take a proactive approach to the problem of personal debt in this country and make sure that the next generation learns how to better manage their money.

I ask for my colleagues to join me in support of the Youth Financial Education Act, which will equip our nation's youth with skills to become responsible consumers and enjoy economic security as well as economic opportunity in their futures.

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

Mr. President, I rise today to introduce a very important piece of legislation, the Medicare Mental Health Modernization Act of 2005.

Our Nation's Medicare beneficiaries--our elderly and disabled population--have limited access to mental health services. Medicare restricts the types of mental health services available to beneficiaries and the types of providers who are allowed to offer such care. It also charges higher copayments for mental health services than it does for all other health care. In order to receive mental health care, seniors and the disabled must pay 50 percent of the cost of a visit to their mental health specialist, as opposed to the 20 percent that they pay for other services. Medicare also limits the number of days a beneficiary can receive mental health care in a hospital setting to 190 days over an individual's lifetime.

We must address this problem. The need is glaring. Almost 20 percent of Americans over age 65 have a serious mental disorder. They suffer from depression, Alzheimer's disease, dementia, anxiety, late-life schizophrenia and, all too often, substance abuse. These are serious illnesses that must be treated. Unfortunately, they are often unidentified by primary care physicians, or the appropriate services are simply out of reach. Americans age 65 and older have the highest rate of suicide of any other population in the United States. An alarming 70 percent of elderly suicide victims have visited their primary care doctor in the month prior to committing suicide.

Medicare is also the primary source of health insurance for millions of nonelderly disabled. More than 20 percent of these individuals suffer from mental illness and/or addiction. This very needy population faces the same discrimination in their mental health coverage.

As our population ages, the burden of mental illness on seniors, their families, and the health care system will only continue increase. Experts estimate that by the year 2030, 15 million people over 65 will have psychiatric disorders, with the number of individuals suffering from Alzheimer's disease doubling. If we do not reform the Medicare program to provide greater access to detection and treatment of mental illness, the cost of not treating these diseases will rapidly escalate. Without the appropriate outpatient mental health services, too many of our seniors are forced into nursing homes and hospitals. If We truly want to modernize Medicare and make it more efficient, we must provide access to these services. Not only will they likely reduce costs in the long term, but they will also increase Medicare beneficiaries' quality of life.

The Medicare Mental Health Modernization Act takes critical steps to address these issues. First, the bill reduces the 50 percent copayment for mental health services to 20 percent. The proposed 20 percent copayment is the same as the copayment for all other outpatient services in Medicare. Second, the bill would provide access to intensive residential services for those who are suffering from severe mental illness. This will give people with Alzheimer's disease and other serious mental illness the opportunity to be cared for in their homes or in community-based settings. Third, the bill expands the number of qualified mental health professionals eligible to provide services through the Medicare program. This includes licensed professional mental health counselors, clinical social workers, and marriage and family therapists. This expansion of qualified providers is critical to ensuring that seniors throughout the nation, particularly those in rural areas, are able to receive the services they need.

In closing, I urge all of my colleagues to step forward to support the Medicare Mental Health Modernization Act of 2005. It is time for the Medicare program to stop discriminating against seniors and the disabled who are suffering from mental illness.

Mr. President, I am pleased to join with my colleague Senator Domenici today to introduce legislation that I believe will go a long way in helping to improve the safety and durability of the Nation's highway bridges. It is with great pleasure we are today introducing the New Mexico State University Bridge Research Center Establishment Act of 2005.

The purpose of our bill is to authorize the Secretary of Transportation to establish a new University Transportation Center focused on the safety of highway bridges. The new center will lead the Nation in the research and development of technologies for bridge testing and monitoring, procedures for ensuring bridge safety and security, and training in methods of bridge inspection. New Mexico State University is one of the Nation's leaders in bridge research and I believe worthy of being designated as one of the Nation's university transportation centers.

Our highway network is a central component of our economy and fundamental to our freedom and quality of life. America's mobility is the engine of our free market system. Transportation via cars, buses, and trucks plays a central role in our basic quality of life. Much of the food we eat, the clothes we wear, the materials for our homes and offices, comes to us over the 4 million miles of our road network.

One critical element of our highway network is the highway bridges that span streams, rivers, and canyons of our cities and rural areas. Bridges also help traffic flow smoothly by carrying one road over another.

Most highway bridges are easy to overlook. Notable exceptions are New England's covered bridges, the new Zakim Charles River Bridge in Boston, San Francisco's Golden Gate Bridge, and the spectacular Rio Grande Gorge Bridge near Taos, NM. The fact is, according to the Federal Highway Administration, we have about 590,000 highway bridges in this country that are more than 20-feet long. The total bridge-deck area of these 590,000 bridges is an amazing 120 square miles, or slightly smaller in area than the entire city limits of Albuquerque, NM, roughly twice the size of the entire District of Columbia, or five times the area of New York's Manhattan Island. The State of Texas leads the Nation with almost 49,000 bridges, about ten percent of the total. Ohio is second with about 28,000 highway bridges.

A little known and disturbing fact about these 590,000 highway bridges is that nearly 78,000, or 13 percent, are considered to be structurally deficient according to the most recent statistics from the FHWA. The percent of structurally deficient bridges varies widely among the 50 states. For example, this chart shows the top ten states with the highest percentage of deficient bridges.

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Percent of structurally deficient bridges

State Number of bridges Number of structurally deficient bridges (percent) ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Oklahoma..................................................... 23,312 7,307 31.3 Rhode Island................................................. 749 193 25.8 Pennsylvania................................................. 22,253 5,464 24.6 Missouri..................................................... 23,791 5,028 21.1 Iowa......................................................... 24,902 5,259 21.1 Mississippi.................................................. 16,838 3,379 20.1 Vermont...................................................... 2,690 484 18.0 South Dakota................................................. 5,961 1,072 18.0 North Dakota................................................. 4,507 803 17.8 Nebraska..................................................... 15,455 2,550 16.5 Michigan..................................................... 10,818 1,764 16.3 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ The source is the FHWA National Bridge Inventory System, December 2004

Florida and Arizona have the lowest percentages of structurally deficient bridges at less than 3 percent each.

Structurally deficient bridges are a particular concern in rural areas of our country. According to FHWA's 2002 edition of its Conditions and Performance Report to Congress, 16 percent or rural bridges are structurally deficient compared to only 10 percent of urban bridges. The report estimates the average costs required to maintain the existing 590,000 highway bridges is $7.3 billion per year.

Another surprising fact about our Nation's highway bridges is their age. Almost one-third of all highway bridges are more than 50 years old, and over 10,000 bridges are at least 100 years old. About 4,200 of these century-old bridges are currently rated as structurally deficient.

I do believe the number of deficient bridges in this country should be a concern to all Senators. Ensuring that States and local communities have the funds they need to help correct these deficient bridges will be one of my priorities when Congress reauthorizes TEA-21. However, because there may not be sufficient Federal and State funding to address all of the deficient bridges, it will be important to identify the bridges that are most in need of replacement or rehabilitation.

To ensure the most efficient use of limited resources, Congress should also address the need for new technologies to help States monitor the condition of the Nation's 590,000 highway bridges and determine priorities for repair or replacement. Such monitoring technologies, or ``smart bridges,'' should be quick, efficient, and not damage the bridge in any way. I am very pleased that New Mexico State University is one of the Nation's pioneers in the development of non- destructive methods of determining the physical condition of highway bridges. Such smart bridges can record and transmit information on their current structural condition as well as on the traffic crossing them. Sensors embedded in the concrete monitor the stresses on the bridge as the weather changes or under the weight of vehicles and show how the materials change with age. The information can then be used by engineers to help design more durable and economical bridges. Eventually NMSU's methods could be used to help design better buildings.

In 1998, NMSU installed 67 fiber-optic sensors on an existing steel bridge on Interstate 10 in Las Cruces and converted it into a ``smart bridge.'' This award-winning project was the first application of fiber-optic sensors to highway bridges. In 2000, sensors were incorporated directly in a concrete bridge during construction to monitor the curing of the concrete; the bridge crosses the Rio Puerco on Interstate 40, west of Albuquerque. A third smart bridge, on I10 over University Avenue in Las Cruces, opened in July 2004.

In February 2003 I had an opportunity to tour the facilities at NMSU and to see firsthand the fine facilities and work being conducted on bridge technology. NMSU has an actual 40-foot ``bridge'' in a laboratory on campus to allow studies of instrumentation and data collection.

I will ask unanimous consent that two recent articles describing NMSU's accomplishments on smart bridge technology be printed in the Record at the end of my statement.

New Mexico State is also a leader in other areas of bridge inspection. The university has provided training for bridge inspectors for over 30 years. It has also developed expertise in using a virtual reality approach to document a bridge's physical condition.

This is just a glimpse at the high quality bridge research at New Mexico Sate University. The university is widely recognized as national leader in

all aspects of bridge research and technology. I believe it is fully appropriate for NMSU to be recognized as the university technology bridge research center.

The bill we are introducing today authorizes the Secretary of Transportation to establish and operate the New Mexico State University Bridge Research Center. I do believe NMSU has earned this honor. The bill mirrors the language for University Transportation Centers in the Senate-passed SAFETEA from the 108th Congress and provides $40 million in funding over 6 years from the Highway Trust Fund to operate the bridge technology center.

The Federal Highway Administration has long recognized the quality of the work at NMSU and has provided grants to support their outstanding work. In November 2004, NMSU's bridge center was awarded a $400,000 grant to install fiber-sensors in a new bridge over Interstate 10 in Dona Ana, NM. The sensors will relay information about the effects of stress on the bridge long before any signs of aging are visible. This is the fourth bridge in New Mexico to be equipped with the smart bridge technology. NMSU's Dr. Rola Idriss is the principal investigator of these projects.

NMSU's work is also being recognized internationally. Highway departments in Switzerland, Belgium, and Japan are experimenting with the smart bridge technology. In October 2004, NMSU's Dr. David Jauregui and Dr. Ken White were invited speakers for the International Conference on Bridge Inspection and Bridge Management in Beijing, China. Dr. White delivered the keynote address for the conference. NMSU is currently developing a memorandum of agreement with the Chinese bridge community to develop a bridge inspection and management training program.

Congress has also already recognized the fine work at NMSU. For example, at my request, Congress provided $600,000 in 2001 for bridge research at New Mexico State University, $250,000 in 2003, $500,000 in 2004 and $125,000 for the current fiscal year.

The specific purpose of NMSU's Bridge Research Center will be to contribute to improving the performance of the Nation's highway bridges. The center will emphasize five goals: 1. Increasing the number of skilled individuals entering the field of transportation; 2. Improving the monitoring of the structural health of highway bridges; 3. Developing innovative technologies for testing and assessment of bridges; 4. Developing technologies and procedures for ensuring bridge safety, reliability, and security; and 5. Providing training in the methods of bridge inspection and evaluation.

Building on NMSU's research work, the University Technology Center will develop a strong educational component, including degree opportunities in bridge engineering at both the undergraduate and graduate levels. In addition, the center will have a cooperative certificate program for training and professional development. Distance education technology and computer-based learning will allow programs to be offered at any of the universities.

The engineers at New Mexico State University have applied their vast talents, tools, and techniques to solving technological problems with highway bridges for over 30 years. The team is well established and maintains cutting-edge expertise. The members of the team are recognized and respected at the national and international levels through accomplishments in bridge testing, monitoring, and evaluation.

I ask all senators to support the designation of the New Mexico State University Bridge Research Center. I look forward to working this year with the Chairman of the Environment and Public Works Committee, Senator Inhofe, and Senator Jeffords, the ranking member, to incorporate this bill into the full 6-year reauthorization of the transportation bill.

I now ask unanimous consent that the letters to which I referred be printed in the Record.

Mr. President, I rise in support of legislation that I reintroduced today with a number of my Senate colleagues--the Volunteer Pilot Organization Protection Act of 2005.

The spirit of volunteerism is indelibly rooted in our Nation's history. From when early settlers landed in Jamestown in 1607 to when our citizen soldiers took up arms against the British Crown in the Revolutionary War, volunteerism has always been a part of American culture.

But that unwavering spirit did not stop there, it has continued and thrived in many individuals and charitable organizations today. One such group of organizations that has selflessly given back so much to Virginians and Americans are charitable medical transportation systems operated by volunteer pilot organizations, VPOs.

The mission and purpose of public benefit and non-profit volunteer pilot organizations involved in patient transport is to ensure that no financially needy patient is denied access to distant specialized medical evaluation, diagnosis or treatment for lack of a means of long- distance medical air transportation. The principal goal is to remove the geographical and financial burdens that would deny access to specialized care.

Last year public benefit flying non-profit volunteer pilot organizations provided long-distance, no-cost transportation for over 40,000 patients and their escorts in times of special need. Mr. President, this year, that figure will likely grow to roughly 54,000 people.

One such organization that has played an intricate part in this mission is Angel Flight. Angel Flight is a not-for-profit grassroots organization with a volunteer corps of more than 6,200 volunteer pilots/plane owners--divided into six regions across the United States--who fly under the banner of Angel Flight America. Angel Flight provides flights of hope and healing by transporting patients and their families in private planes, free of charge, to hospitals for medical treatment.

Following the terrorist attacks of September 11, 2001, the Department of Transportation and the FAA closed airports and grounded commercial air traffic, but the FAA allowed Angel Flight volunteers to fly. Angel Flight pilots flew firefighters, families of victims of the bombings, Red Cross personnel, medical and other supplies including the protective booties for the Search and Rescue dogs to New York and Washington, DC.

In my years of public service, I have always maintained that we must provide access to care to all Virginians and Americans. Medical care should be available to all individuals. Sadly, our Nation is facing a medical crisis. Medical malpractice insurance costs and Medicare physician reimbursement are forcing many of our doctors to stop seeing ``high-risk'' patients or Medicare beneficiaries and in some cases forcing our doctors to give up practice altogether and retire. As a result, patients have to travel great distances to receive the medical care that they need to live happy, healthy and productive lives. Unfortunately, a number of these patients do not have the financial means to travel long distances, thus, ultimately denying patients access to life-saving or quality of life improving specialized treatment.

We can say the same with patients who rely on volunteer pilot organizations such as Angel Flight or one of its subsidiary groups like Mercy Medical Airlift in my home Commonwealth of Virginia. Unfortunately, due to the public's apparent notion that organizations that use airplanes are financially well-off and have deep pockets, many of the volunteer pilot organizations are open to frivolous and junk lawsuits. This leads to an access to care issue.

Also, aviation insurance has skyrocketed up in price and non-owned aircraft liability insurance is no longer reasonably available to volunteer pilot organizations. Many insurance companies had always provided this type of insurance but post September 11, 2001, this insurance is scarcely found and if found, the costs have increased greatly, to the astronomical sums of $5 million a year. Because of the exorbitant costs of insurance, volunteer pilot organizations have a difficult time recruiting and retaining pilots and professional persons.

I would like to submit an editorial written by the Virginian Pilot. This editorial correctly identifies the obstacles that these volunteer pilot organizations have to go through. I would like that editorial inserted here.

That is why I decided to introduce the Volunteer Pilot Organization Protection Act. In 1997, Congress passed the Volunteer Protection Act, which handled much of the liability issue for volunteer endeavors in the country; however, this legislation did not adequately address aviation-related matters.

My bill amends the highly regarded Good Samaritan Act to provide necessary liability protections in the area of charitable medical air transportation and promote volunteer pilot organizations. More specifically, this legislation will protect volunteer pilot organizations, their boards and small paid staff and nonflying volunteers from liability should there be an accident. The VPOs are simply the ``match-makers'' between the volunteer pilot willing to help a neighbor and the needy patient family. The pilot has full and sole responsibility for conducting the flight in a safe manner in accordance with Federal Aviation Regulations. In addition, this legislation will provide liability protection for the individual volunteer pilot over and above the liability insurance that they are required to carry.

Furthermore, the Volunteer Pilot Protection Act will provide liability protection for ``referring agencies'' who tell their patients that the charitable flight service is available. Referring hospitals and clinics are becoming unwilling to inform their patients that charitable medical air transportation help is available for fear of a liability against them should something happen in a subsequent volunteer pilot flight. Hence, organizations like the Shriners Hospital System and the American Cancer Society would be able to make known available volunteer pilot services to transport their patients to Shriners or other hospitals where they receive care.

I know a few people have concerns that this bill would provide blanket immunity to Volunteer Pilot Organizations but I want to stress that my bill requires insurance on the part of the pilot and if there is negligence on behalf of the pilot, the injured party does have legal recourse. This bill does not provide blanket immunity to VPOs, but has been carefully worded to allow

legal action to be brought against the insurance policy of the pilot in event of negligence.

By providing volunteer pilots with liability protection, insurance rates for these pilots will ultimately be reduced. Therefore, more pilots will be able to afford insurance and fly for the public good. With less-costly insurance available, I am confident that more pilots will generously give their time to fly for and help the medically needy.

This bill enjoys the support of a number of charitable organizations, including the Children's Organ Transplant Association, the National Organization for Rare Disorders, the Air Care Alliance, the Independent Charities of America, the Health and Medical Research Charities of America, the National Association of Hospital Hospitality Houses, and many others.

Not only does this legislation enjoy the support of numerous charitable organizations, it also enjoyed the support of the United States House of Representatives. On September 14, 2004, the House of Representatives passed the Volunteer Pilot Organization Protection Act of2004 by a vote of 385-12. Mr. President, this is a clear indication that this bill has broad bipartisan support in the House and I know the House will once again pass this commonsense legislation.

I am confident that this legislation will start a trend to help curb the large amounts of counterproductive lawsuits, lower insurance costs, and promote the spirit of volunteerism that has been rooted in the framework of our country's storied history. I, along with the volunteer pilots and organizations, and with the thousands of families who rely and may rely on the help of volunteer pilot organizations, urge the Senate to quickly and finally pass this legislation in the 109th Congress.

I would like to thank Congresswoman Thelma Drake, our newest member to the Virginia team, for taking over this legislation for former Congressman Ed Schrock and introducing the companion bill on the House side. In addition, I would also like to thank the original cosponsors of this legislation, Senators Chambliss, Inhofe, Coburn, Talent, Cornyn, and Isakson for their support as we work to pass this vitally necessary legislation.

[From the (Norfolk) Virginian-Pilot,

Mar. 11, 2003]

Shield Helpful Pilots From Frivolous Lawsuits

In the realm of volunteers, few outshine the generous folks

at Angel Flight.

This nonprofit organization flies patients for whom air

transport would be otherwise unaffordable to medical

facilities around the country. Private pilots spirit

individuals to dialysis, chemotherapy sessions, organ

transplants and other surgeries by donating their aircraft

and their valuable time. The goal is a noble one: to ensure

that no one in need is denied medical care for lack of long-

distance transportation.

But in our lawsuit-happy society, even these warmhearted

souls can't escape the possibility of landing in court. While

a law known as the Volunteer Protection Act shields most

people who give their time to worthy causes from frivolous

suits, it doesn't cover volunteer pilots or flight

organizers. Liability insurance costs for Angel Flight and

similar nonprofits have skyrocketed from $1,000 to more than

$25,000 annually.

This prohibitive price tag threatens the future of Angel

Flight, which is funded solely through donations. A

spokeswoman for Angel Flight Mid-Atlantic, headquartered in

Virginia Beach, said the burden will ultimately fall on sick

and needy patients. And with 600 volunteer pilots

transporting an average of 100 medical cases a month,

literally thousands of lives may be affected by this

oversight in the law.

Fortunately, lawmakers are paying attention. U.S. Rep. Ed

Schrock recently introduced bipartisan legislation to add

volunteer-pilot organizations to the ranks of those covered

by the Volunteer Protection Act. U.S. Sen. George Allen is

expected to introduce a similar measure in the Senate.

Congress should pass these bills, the sooner the better.

Keeping Angel Flight aloft is literally a life-and-death

matter.

Mr. President, it is my pleasure today to join with my colleagues Senator Burns, Senator Dorgan, Senator Craig, Senator Dayton, Senator Vitter, Senator Johnson, Senator Thune, Senator Coleman, and Senator Baucus to introduce the Railroad Competition Act of 2005. This legislation encourages the competition and consumer protection in the freight railroad market that Congress intended when it partially deregulated the industry in 1980 with the passage of the Staggers Act.

Introduction of legislation in this vein is a bit of a ritual for this Senator. West Virginia industries depend on efficient and dependable rail service at fair prices to move their products to market. This is a perfectly reasonable goal. However, for shippers without competitive rail access--referred to as captive shippers--it is a cruel and impossible dream. I have tried for years, with partners from both sides of the aisle and all parts of the country, to change the status quo, and improve the economic situation for rail shippers and retail shoppers. This is the seventh time since 1985 I have sponsored legislation to address this issue, and the fifth congress in a row in which I have worked closely with my good friends Conrad Burns and Byron Dorgan to help shippers and their customers. And I won't give up until I actually succeed.

Predictably, the railroads will overreact to this bill with scathing accusations of what we are doing. In truth, we intend nothing more radical than helping shippers, consumers, and the railroads themselves, reap the benefits of the basic principles of capitalism--the ability of sophisticated actors to conduct arms-length negotiations for competition, service, and fair prices. Currently, Class I railroads overcharge and underserve captive shippers with impunity, and with an antitrust exemption preventing meaningful oversight by Congress. Customers have no power. This means higher prices for electricity, food, medicine, paper products; the chemicals to protect our water supply and crops, and the basic ingredients of the plastics in many of the goods we purchase. This is crucial to protecting commerce in the United States. So far, we have been thwarted, though we remain undeterred in our efforts and confident of the validity of our objectives.

In the 1970s, Congress observed a bloated freight rail network, unprofitable railroads, and service was anything but efficient and dependable. When the Staggers Act was passed in 1980, Congress gave a green light to deregulation of the railroad industry. But, as with the deregulation of every other industry that Congress has allowed, there were to be constraints on the ability of railroads to abuse shippers left captive to just one railroad. The Staggers Act left it to the Interstate Commerce Commission (ICC) to watch over a partially deregulated industry carrying out Staggers' dual goals: Improving the financial health and viability of the railroads; and improving and maintaining service for shippers. The ICC was responsible for ensuring fair treatment and reasonable rates for those shippers made captive by mergers or business decisions allowed under Staggers.

The success of Staggers has been completely one-sided. Captive rail shippers in my state of West Virginia have told me--since before I came to the United States Senate--that service was horrible and rates being charged were too high. That is still true today. When I was first running for the Senate, the country was served by about 40 ``Class I'' railroads. After Staggers the railroad industry ``rationalized'' its routes--meaning it dropped unprofitable lines and left more and more shippers captive to just one railroad.

A virtually unimpeded string of rail mergers during the last 25 years has only compounded the problem. The number of Class I railroads has dropped to seven. Four of these--CSX and Norfolk Southern in the East and Burlington Northern Santa Fe and the Union Pacific in the West-- completely dominate the industry, accounting for about 90 percent of the freight rail traffic in the nation.

This is simple. Fewer market participants mean less competition, and less competition opens up the possibility of the abuse of local monopoly power. Under the misadministration of the Staggers Act, first by the ICC, and later by its successor agency the Surface Transportation Board (STB), abuse of captive shippers has not only gotten worse, but it has been unjustly bestowed a veneer of propriety by a series of unwise administrative decisions and at least one court case that gave grudging deference to an agency, the STB, that has failed to carry out the clear directions of Congress. The STB, to which shippers have looked for a solution, has become a facilitator of the problem.

The goals of the Railroad Competition Act are really quite mundane. My colleagues and I hope only to give life to a freight rail system originally envisioned by the drafters of the Staggers Act. We hope to send to the President a bill that will allow captive shippers the most basic right in business negotiations: They will be able to get the railroads that ship their products simply to quote a rate for the service.

My colleagues may be amazed to find out that the STB's current reading of the Staggers Act allows shippers no such right. Our legislation will simply require railroads to tell their customers the cost of moving a certain quantity of product from their manufacturing facility to their customer. Point A to Point B. Nothing in business is more basic, but it is a basic of business negotiations captive shippers do not currently enjoy. Additionally, our legislation also would do the following: clarifies that the STB shall promote competition among rail carriers, helping to maintain both reasonable freight rail rates and consistent and efficient rail service; creates a system of ``final offer'' arbitration for matters before the STB; authorizes the STB to remove so-called ``paper barriers'' that prevent short-line and regional railroads from providing improved service to shippers; requires STB to act in the public interest and removes required showing of railroads' anti-competitive conduct; caps filing fees for STB rate cases at the level of federal district courts (reducing filing fee from the current fee $65,000, which is to be doubled in 2005); calls for a Department of Transportation (DOT) study of rail competition; allows elected officials and state railroad regulators to petition the STB for declarations of ``areas of inadequate rail competition,'' with appropriate remedies; creates position of Rail Customer Advocate at U.S. Department of Agriculture (USDA); and expands infrastructure modernization loan guarantee program.

In closing I would suggest that, rather than the highly charged arguments we have engaged in over the years, my colleagues encourage the railroads to take shippers' concerns seriously, and that we all work to create a freight rail marketplace made up of companies hungry, in the best capitalist sense of that word, to do business. That is the goal of the Railroad Competition Act, and I look forward to its consideration by the full Senate.