Protecting the Medicaid Safety Net Act of 2008
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Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 719.
April 28, 2008
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Introduced in House
March 13, 2008
Referred to the House Committee on Energy and Commerce.
March 13, 2008
Forwarded by Subcommittee to Full Committee (Amended) by Voice Vote .
April 9, 2008
Committee Consideration and Mark-up Session Held.
April 16, 2008
Ordered to be Reported Without Recommendation (Amended) by the Yeas and Nays: 46 - 0.
April 16, 2008
Reported (Amended) by the Committee on Energy and Commerce. H. Rept. 110-600.
April 22, 2008
Placed on the Union Calendar, Calendar No. 373.
April 22, 2008
Mr. Dingell moved to suspend the rules and pass the bill, as amended.
April 22, 2008 • 2:46 PM
Considered under suspension of the rules. (consideration: CR H2502-2508)
April 22, 2008 • 2:46 PM
DEBATE - The House proceeded with forty minutes of debate on H.R. 5613.
April 22, 2008 • 2:46 PM
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
April 22, 2008 • 3:05 PM
Considered as unfinished business. (consideration: CR H2596)
April 23, 2008 • 3:34 PM
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 349 - 62 (Roll no. 209).(text: CR 4/22/2008 H2502-2504)
April 23, 2008 • 3:52 PM
On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 349 - 62 (Roll no. 209). (text: CR 4/22/2008 H2502-2504)
April 23, 2008 • 3:52 PM
Motion to reconsider laid on the table Agreed to without objection.
April 23, 2008 • 3:53 PM
The title of the measure was amended. Agreed to without objection.
April 23, 2008 • 3:53 PM
Received in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
April 24, 2008
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 719.
April 28, 2008
Voting History
1 vote recorded • Roll call available
Floor Debate
20 membersWhat members said about H.R. 5613 on the floor
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Floor Debate
20 membersWhat members said about H.R. 5613 on the floor
I have an amendment at the desk, and I ask for its immediate consideration. Mr. President, I know my colleague Senator DeMint is here to offer what will be the first amendment to this bill. I thank…
I have an amendment at the desk, and I ask for its immediate consideration.
Mr. President, I know my colleague Senator DeMint is here to offer what will be the first amendment to this bill. I thank him, because I know he initially had several amendments. It looks as though he has boiled it down to one amendment. I know Senator Inhofe and I are glad about that. I thanked him previously for calling me and saying that he was pleased with the way we treated the transparency of this bill.
I have been given a copy of the amendment by the Senator from South Carolina. I will listen carefully to his presentation, and I will have remarks afterward. Senator Inhofe may also have some remarks prior to Senator DeMint being recognized.
Senator Inhofe and I are hopeful we can get this completed. This is a bill that overall creates not one more penny of new spending. It will unleash into our economy, however, a billion dollars already budgeted for. That is why so many people are supporting this in real life: Construction companies, workers, transit operators. All of them have written to us. I will put those names in the Record. We are hopeful, if everybody cooperates today, we can get this finished. This bill isn't rocket science. It is very simply making technical corrections to SAFETEA-LU and in places where some projects simply couldn't go forward, replacing those projects without adding a penny of new spending. There is full transparency.
I yield the floor.
Mr. President, again, I thank the Senator for his kind comments about the way we have handled this legislation.
This amendment is, first, wrong on its face and, second, it is going to kill the bill. Of all times to try and kill what I consider a mini- economic stimulus plan, this is not one of them. We have a lot of people out of work. Many people have called Senator Inhofe and myself, and others, saying this is an important piece of legislation.
I will read the names of those people, because I believe it is important that we show the breadth of support. It is a very simple piece of legislation, but it will correct some errors. It will say, as an example, in Oklahoma--and we have them in California--and for all these 500 projects, one leg of a project might not have been ready. Let's put the funds where they can be used now, where they are ready to go. Unleashing up to a billion dollars of funds right now means tens of thousands of jobs, and we have to rebuild our infrastructure. We are doing it within the confines of the moneys that were already authorized.
Again I have said this so many times, I am sure it is boring people, but I think it is important to note who has written to Senator Inhofe and myself to move this bill: the American Association of State Highway and Transportation Officials, whose members include the Departments of Transportation for all 50 States; the American Highway Users Alliance, whose members represent millions of highway users; the American Public Transit Association; the American Road and Transportation Builders Association; the Associated General Contractors; the Council of University Transportation Centers; the National Stone, Sand and Gravel Association; the National Asphalt and Pavement Association.
This is not one of these bills that is a matter of some intellectual debate. This means real jobs for real people and real infrastructure improvements for all the people of this Nation who count on us to keep their highway and transit systems moving.
What does Senator DeMint do? He would send this bill back to the committee, in essence killing the bill. We passed this bill out of committee on a bipartisan voice vote on June of 2007. Here we are, moving toward June of 2008. Why on Earth would we want to stop the forward progress of this legislation? We can't afford further delay.
I am sorry my colleague has left the Chamber, but Senator DeMint had several projects that he asked for in SAFETEA-LU. I ask unanimous consent to print a list of those projects in the Record.
All of these will bring jobs and improve transportation in the State of South Carolina. That is why I supported it, as did Senator Inhofe. That is why we all supported it. There is a number of projects contained here, 13 projects, $110 million, Senator DeMint has in SAFETEA-LU. Fortunately for Senator DeMint, none of his projects required any technical corrections.
Let's take one: Construction of I-73 from Myrtle Beach, SC to I-95, ending
at the North Carolina State line. Suppose something had turned up in the engineering and they had to stop it further toward Myrtle Beach, but they couldn't go ahead with the project until they made that technical change. Then Senator DeMint would find that the project was stymied. He is fortunate. He didn't have this problem. But a lot of us weren't so fortunate. We did have issues in our States where we had to make changes.
This legislation fixes nearly 500 descriptions for highway and transit projects. Without the changes included in the legislation, many of these projects will continue to be stuck at red lights. This isn't the time to slow down job creation. This is the time to unleash job creation. This technical corrections bill provides a green light that could unleash up to $1 billion in transportation projects. The funding has been approved before, so we are not increasing spending. Given the current slowdown in our economy, we simply cannot afford to allow these funds to remain unused.
At the appropriate time, I am going to move to table the DeMint motion. I think we are working on an agreement to have a vote on that motion at around 2 o'clock.
I yield the floor.
Mr. President, I ask unanimous consent that at 2:15 p.m. today the Senate proceed to vote in relation to the DeMint motion to recommit the bill, and that no further amendments be in order to the motion prior to the vote; that following the conclusion of the debate this morning with respect to the motion, it be set aside to recur at 2 p.m., with the time until 2:15 p.m. equally divided and controlled between Senators Boxer and DeMint or their designees; and that at 2:15, without further intervening action or debate, the Senate proceed to vote in relation to the DeMint motion to recommit the bill.
I suggest the absence of a quorum.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, since we have a lull in the conversation about the technical corrections bill--and the reason for that is, frankly, it is a very straightforward bill. We know of two other amendments. We are working with Senator Coburn on his amendment dealing with an investigation into what occurred in the Coconut Road project in Florida. We know Senator Bond has an amendment which is really not a technical correction. It goes to overturning a law that was passed which protects consumers when they are defrauded by furniture moving companies. That is his amendment. We hope he can come down here so we can get going; we can start to debate that.
But in the meantime, I have asked Senator Inhofe if he had any objection if I rose to pay tribute to 19 young Americans who were killed in Iraq who were either from California or based in California, and he had no objection to that. I don't know if I need to ask to speak as in morning business. If that is the appropriate thing, I ask unanimous consent to do so.
Mr. President, I yield the floor.
Mr. President, I ask my friend from Iowa if he wants to speak in morning business.
Mr. President, I ask unanimous consent that at the conclusion of my remarks, Senator Grassley be recognized for up to 10 minutes.
Mr. President, first of all, I make a plea to my friends on the other side of the aisle. There are a couple of amendments out there. Senator Inhofe and I are anxious to get done with the bill. The bill is a mini-economic stimulus. It would release a billion dollars worth of projects for important highway and transit programs. It is a technical corrections bill that stays within the limits we set in terms of spending. When Senator Inhofe and I agree on something, it usually covers the spectrum. So we hope we will have a good vote.
I wanted to say something before Senator Barrasso leaves because he mentioned the President's goals. The President says we should halt the growth of greenhouse gases by 2025--``halt the growth,'' which means 18 years of nothing. What a pathetic response to a crisis that has united evangelical groups, scientists, businesses, and much of the world.
So I am just here to say--I am not going to have a debate with my good friend, whom I really enjoy as a member of our Committee, but I want to say this gives new meaning to doing nothing. When we have a crisis such as we have now and we have a small window to act and we wait 18 years, this is not talking about leaving the problems to the new President, like he is doing in Iraq. It means we are following a recipe for gloom and doom instead of looking at this problem and seeing it for what it is--an amazing opportunity.
It is interesting that my friend, Senator Grassley, is here, who is so strong on ethanol. Well, this is the kind of thing we are going to do so we can get off of fossil fuel. We have other opportunities, such as cellulosic. We have new ways of making cars.
I happen to drive a hybrid. It is amazing. I get over 50 miles per gallon. I sort of wave at the gas stations because I don't have to go there that often. These cars are getting better and better.
We have so many ways, but it is not going to happen if we simply say, by 2025 we will halt the growth of greenhouse gas emissions. We have to halt the growth very soon. I view it as a great opportunity for an economic renaissance in this country. If you look at Great Britain, they have cut their carbon emissions by 15 percent over the last 10 years or so. Their GDP has grown by 45 percent, and they have added 500,000 new green jobs.
I think rather than being so frightened and meek as the President is about this, we should be leading the world to this new great economic renaissance. America should be in the front, inventing these products. I know the President says he wants to invest in new technology. Unless you have a cap on greenhouse gas emissions, unless your proposal involves a cap so we get down to what is necessary to prevent catastrophe, then you are part of
the problem. You are not part of the solution. You are just making believe you are part of the solution.
I don't want to do any more than is necessary. I want to do what is necessary to reverse a real, serious, horrific problem for the world. As our intelligence community tells us, as our Pentagon tells us, if we do nothing, the ravages of global warming will be the cause of wars, will be the cause of droughts, will be the cause of famine, will be the cause of unrest, and will be the cause of refugees wandering around starving to death.
That is why so many churches have joined us, many of the great religions have joined us in this effort. We have a great group working here. I was a little bit surprised when the President sort of took on the Lieberman-Warner bill in his way. He didn't mention it by name, but he basically referred to efforts in the Senate and the dangers. Mr. President, I have been trying to get to see you on this issue. I have wanted to talk to you on this issue. I know the former Prime Minister of England, Tony Blair, spoke to you about this issue. He is coming to speak to me again. We need to work together. This should not be partisan.
Unfortunately, it is. When I and my staff were in Great Britain, we were meeting to understand what steps they have taken and how about a cap-and-trade system and the rest. What we found out was most remarkable. Each party, Labor and Conservative, was staking claim to the issue of global warming and saying to the other party: You are not doing enough. I turned to my staff and said: Oh, if I have one prayer, it is that we have a situation where that happens at home instead of this horrible fight. And if I have another prayer, it is that the Presidential candidates, Republican and Democratic, will argue over who has the best plan. That may happen, and that would be exciting. But I do not want to wait until then. I do not want to do nothing. I do not want to be part of the problem. I do not want my grandkids to say: Where was my grandma? At the moment they had a window to do something, they slammed it shut.
I am glad my friend came to speak about global warming. I hope we can continue to work together to get him on board in a more aggressive way to do more, to do our job, to fulfill our responsibility. We would never take our grandchild, put him or her in an infant seat in the car, go to a parking lot at the supermarket and leave him or her inside with the windows closed and the Sun beating down. We would not do that because we adore our children and our grandchildren, and we want the world to be better. At least we want it to be as good as it was for us.
We are so lucky. We have lived through such golden years for ourselves and our families. We have the American dream. We saw Richard Nixon step to the plate and create the Environmental Protection Agency, and Presidents, Republican and Democratic, who have come after stand up--until now.
I say to my colleagues, we are going to have a moment come June. It is going to be a little bit different than today. Today Senator Inhofe and I are joined at the hip on this technical corrections highway bill. We are not going to be that way on global warming, but I hope we can have some bipartisanship, and John Warner has been leading the way. We need to do more instead of wait until 2025 to halt the growth of greenhouse emissions. That is too late. That is dangerously late. That is the equivalent of doing nothing.
Mr. President, I yield the floor.
Mr. President, I don't see the Senator from South Carolina here, and I don't want to presume to describe his amendment. That wouldn't be fair because he views his amendment as something that will help this bill and I view it as something that will kill this bill. Simply put, what he is saying is we need to recommit this bill to the Environment and Public Works Committee, and what he is basically saying is that we need to scrub out of this bill any changes that were made to projects.
Although Senator DeMint wasn't here at the time, I made the point earlier that in this SAFETEA-LU bill is $110 million worth of projects he requested. He was fortunate: all those projects seemed to be moving forward, and they do not need any technical correction. But many of us--many of us--don't have that experience. For example, Senator Inhofe explained a road project in Oklahoma where one portion of the project wasn't ready for funding and another was. So, yes, we make a technical correction. I have a similar project in my State where we have to make sure the project is changed a little bit or there are going to be some bad impacts on some of my people who live in those communities.
So there is really nothing nefarious going on here. We are just trying to get these projects moving. We are trying to give a green light to projects that are facing a red light. What that means is that about $1 billion worth of projects could actually get started--transit projects, road projects--and we think that, at this particular time when we are suffering a recession, the last thing we should do is try to bring this bill back to the committee because, effectively, that would kill it. So I have respect for my colleague's intention here, but, in essence, if he was being completely straightforward, he would admit this is going to kill this bill.
We know how hard it is to get bills up before the Senate. This bill actually passed when Senator Inhofe was chairman of the committee, but it has languished because we haven't had a chance to bring it to the floor. Senator Reid gave us time. It is a simple bill. I was hopeful it could be finished by now. I am grateful we are having a vote on at least one of the amendments--we know of another couple of amendments.
So that is really what I have to say. At the appropriate time, I am going to make a motion to table this motion, so I will return to do that, as I say, at the appropriate time.
Mr. President, I yield the floor, and I suggest the absence of a quorum.
Mr. President, I move to table the DeMint motion to recommit and I ask for the yeas and nays.
Mr. President, I suggest the absence of a quorum.
Madam President, when I learned about this whole issue of what went on in a very devious way related to a highway project, I was very glad Senator Coburn called it to our attention. Where we are right now is the best way to handle this, and this is where there is a bit of a disagreement.
I am concerned, as I look at the Senator's solution here. Essentially, what he has is the House and Senate selecting Members to go on this special committee, and I believe that injects politics into it right away. We can all say we are going to be objective, and so on and so forth, but I think people get the sense, oh, that is a Republican, and he may feel one way; or she is a Democrat, she may feel one way; or I saw that person going to dinner with another Senator or another House Member this way.
I am chair of the Ethics Committee, so I know it is very hard to be totally objective, and you must be in this circumstance. But I think the appearance of a conflict of interest in setting up this committee is something I would rather avoid. So I think that Senator Coburn has done everything in his power to set up a way to investigate this that is fair, but my feeling is there is a better way to go.
As a matter of fact, I am going to offer an amendment to the underlying substitute, and I would ask the Parliamentarian if I need to lay aside the pending amendment in order to do that.
I send an amendment to the underlying substitute to the desk.
Do I need to ask for its immediate consideration?
Madam President, I thank the clerk for reading. That is it in its entirety. We call attention to the exact problem that occurred in the bill, the exact project, without naming it. It is explained here. We know it is the Coconut Road project.
This is not a sense of the Senate. This is a very direct amendment that says the Department of Justice shall review these allegations and they shall ascertain if a violation of Federal criminal law has occurred.
So what we do, by taking it into this realm, we take it out of the realm of politics. Senators selected by the Senate to be on this investigation committee of something that happened over in the House; House Members selected by the House to investigate, to me it injects politics into the process.
Secondly, if you read the Constitution and you see the speech and debate clause, you understand that this raises constitutional issues-- the Coburn amendment--as to whether one part of Congress can investigate another. I don't want to see this whole thing collapse like a deck of cards because we did something unconstitutional. We know that the Justice Department, when there is an allegation of improper behavior, we know when there is a possibility here of laws being broken, they have the clear obligation and responsibility, and now we are, in essence, telling them they must review this.
In our conversations, one of the things Senator Coburn was worried about was that the Department of Justice could not use the subpoena power. I have looked at that and what I have found is that is not true. In the case of the Jefferson investigation, it was because there was no warrant. That was the problem. There was some narrow issue involving that. Clearly, this investigation would be appropriate.
Also, we don't give up anything here, I say to my colleague. Consistent with applicable standards and procedures, that is what we say. The Department of Justice shall review, consistent with applicable standards and procedures. No new rules, no new laws, no new ways, and very clearly done.
Frankly, if I might say, I am so angry about this. I am so upset about this. I am sick about this. I think it is very possible people ought to go to jail here. A Senate and House committee can't send anybody to jail. They simply can't. They could make a referral to Justice, but they can't do it.
I am saying I think what we are doing here, by requiring that the Justice Department--by saying, ``They shall review allegations,'' I think is a much better way to go. It keeps politics out of this, it keeps constitutional questions about the debate clause out of this, and it gets to the heart of this, which is, if there was a crime, the person ought to go to jail or the people ought to go to jail.
Let's get right to the point instead of setting up some political committee. They will call hearings and the press will come and people-- Senators will make speeches and make their careers. I can just see this thing. I can see this coming. I want to avoid a circus. I want to put somebody in jail if they did something wrong. That is why I think this particular amendment I am offering is the way to go.
I do respect my friend. I certainly am looking forward to having votes on both of these, but I do think this simple amendment we have here will get to the bottom of this, which is where my friend wants to go. He wants to punish the people who have done something wrong. That is what I think we do here.
I will be happy to yield the floor because I see my colleague would like to respond.
Is that a question to me?
Madam President, let me just say to my friend, I am the chair of the Environment and Public Works Committee. I am not the chair of the Judiciary Committee. I just want to say for the record, in defense of my committee members all, that we fixed this problem in this bill. We fixed the problem in the bill. Do I support the Justice Department going after the evildoers and putting them in jail? You bet I do. But--I hate to say it--in Environment and Public Works, that is not our role. I support what the Senator is trying to do here. So let's get that clear.
On page 86, here it is fixed, in section 110. I want to make that clear, that our committee did the right thing and fixed this problem.
My friend is right, there was a committee to look at the rules. But if all he is doing is looking at rules--and I know he is not--then what is the point? I want to look at what happened. My friend himself talked about fraud. The fact is, we better get to the bottom of this, and all this committee is going to do is look at rules. Frankly, I don't think it is doing much. I would much rather put people in jail. The proper way to do that is to call on the Justice Department to look at these crimes because, to me, it is the crimes that concern me. I think what they did, on the face of it, going in the dead of night, is certainly not allowed in our rules--at least my interpretation of the rules. That, to me, is not.
I tell you right now, in our committee we are pretty tough on this. We are not allowing people to change things.
Everything that is in this technical corrections bill--and that is why Senator DeMint praised us--is on the Web site for all to see. We believe in transparency.
What this is about is getting to the bottom of allegations of serious crimes--bribery. Bribery. That is why I do believe at the end of the day let's keep politics out of this issue.
I can tell you right now, the Senators who get on this committee are going to have the flashbulbs going off in their faces, they are going to make a big to-do about this, and they are not going to talk about rules, they are going to talk about crimes. The sad thing is, even if they got to the bottom of it, at the end of the day the committee cannot put anybody in jail. The Justice Department can.
The speech and debate clause is really clear. I know my colleague in the chair is a very prominent attorney. If you look at section 6, article I, it clearly says:
. . . for any Speech or Debate in either House, they shall
not be questioned in any other Place.
So our attorneys are saying the way this is set up, A, you have politics in it; B, you have a constitutional problem, probably; and C, it is a lot of hoopla, a lot of cameras, and at the end of the day we want to put people in jail. That is what we are talking about, really, at the end of the day.
Looking at the Senator's own document on page 5, he says the committee shall share its findings, share its documents, share its information, and so on, with various groups.
I just believe to be tough you have to get the Justice Department involved. When there is a knock on the door from the Justice Department, you will get to the bottom of this. That is what the Boxer amendment does.
I hope people who really want to be tough will do the tough thing, not set up some committee that is going to give Senators and House Members a chance to make political points, and the public will look at us and say this is just a great big show, but really get to the bottom of it and get the Justice Department into this now. There are reports that they are looking at some issues, but there is nothing to say that they are looking at this particular problem.
That is what I have to say. My friend is right to bring this up. I am glad. When the press said: What do you think? I said: Good for him for bringing this up. I am sorry we were not able to agree on the right approach, but I feel very good about the approach I have come up with here. I look forward to our colleagues voting on this at the appropriate time.
I yield the floor.
Madam President, if I might respond to my friend, No. 1, we do not cede a thing. We do not give up anything. As a matter of fact, we stay consistent with applicable standards and procedures, and this cannot be a fishing expedition. We say the Department of Justice shall review allegations of impropriety regarding item 462 in section 193(4)(C) of Public Law 109-
59, to ascertain if a violation of Federal criminal law has occurred.
The question is, to me: Will the people or persons who did something wrong be punished? At the end of the day, that is what I am about. I am not about big committee hearings and special committees and the rest. Listen, I am not about that. I am about: We have a lot of work to do for the American people. My friend used words--``fraud,'' he said. He said ``fraud.'' He already used it. And in his own resolution he says: If they find that there was such fraud, which he already thinks there was--which, by the way, I think it was worse than that, but that is what I think from what I know.
There needs to be proof here. I do not mean to leap ahead too far. He says he is going to refer it to the proper law enforcement. Why can't I say: Well, that is a bad precedent. I do not get it. The difference between what the Senator is doing and what I am doing is I am saying: It looks bad, as if there were a crime committed; we are not sure. Let's get right to the heart of it, and let's go after it.
Here, what my friend is doing, he says: Before we tell them to look at it, we are going to have these hearings. By the way, in his own words, he is going to put the findings on the Internet, he is going to publish them. I have been around here long enough to know what a circus is. I have been involved in a lot of investigations on a lot of committees, and what I want is justice done. I do not want political theatre. I want justice done. I will tell you why. When justice is done and someone goes to jail--we have seen a few people from the other side walk off to jail--that sends the best possible message.
I do not think it ought to be delayed by hearings. Sometimes what happens is, it holds up a Justice Department investigation when there are public hearings going on. I have been in that circumstance too. So I say, here we have two options. One sets up this elaborate committee, and the other one says: Let's get to the heart of this, go after these bad actors, put them in jail. I think that is the better way to go.
I guess I have said it a hundred ways to Sunday. I would stand on those remarks.
I yield the floor.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
The PRESIDING OFFICER (Mr. Schumer.) Without objection, it is so ordered.
Mr. President, the majority leader will be coming out shortly to let Members know what is happening. But I can tell everybody that this bill is being slow walked. This is a simple bill. This is a mini-economic stimulus bill. It would release $1 billion of highway trust fund moneys to build roads, to fix bridges, to run transit systems, and it got caught up in Presidential politics, investigations--everything you can think of--while the people wonder what we are doing.
This bill, simple as it is, would create about 50,000 new jobs at a time when we know--it is worse than a middle-class squeeze. It is really a middle-class struggle that is going on, and people are worried. They are worried about their homes, they are worried about everything, and this bill will create jobs.
So what we have is a classical slowdown, with Presidential politics being involved dealing with the gas tax that funds the highway trust fund. That is fine, but just let everybody know from where it is coming. The only amendments to this bill--the only amendments--come from the Republican side. I offered one as a side-by-side to Senator Coburn's, which I think is a good amendment. My amendment will not bring down this bill. Others will.
Here is where we are. We have a simple bill. It passed a year ago in the House. It passed, I believe it was June of 2007, under the leadership of Senator Inhofe. Actually, it was under my leadership but with the work of Senator Inhofe, both of us working together, bipartisan, bicameral.
I want to show you, Mr. President, who is strongly supporting this bill: the American Association of Highway and Transportation Officials, that is departments of transportation officials of all 50 States; the American Highway Users Alliance, millions of highway users throughout the country; the American Public Transit Association, transit systems from across the country; the American Road and Transportation Builders Associations, more than 5,000 members of the transportation construction industry; Associated General Contractors, more than 32,000 contractors, service providers, and suppliers; the Council of University Transportation Centers, more than 30 university transportation centers from across the country; the National Stone, Sand and Gravel Association, companies producing more than 92 percent of crushed stone and 75 percent of sand and gravel used in the U.S. annually; the National Asphalt and Pavement Association, more than 1,100 companies that produce and pave with asphalt.
These are real people who are willing, ready, and able to build and rebuild our infrastructure, to build and rebuild our transit systems. This bill is a no brainer. Instead, it is caught up in all of these negotiations right now. Whether we vote tonight or not, we are going to find out soon enough from Senator Reid. But, Mr. President, let me say to my colleagues on both sides of the aisle, Senator Inhofe and I really wanted to get them a good bill. Senator Inhofe and I really wanted to get this work done quickly. We did all our homework. We put everybody's name on the Web site, so we complied with the new ethical rules. Senator DeMint said he was very pleased with the standard we set for transparency.
These projects are ready to go. They are ready to go in Brooklyn, they are ready to go in Manhattan, they are ready to go in San Francisco, they are ready to go in Atlanta, and they are ready to go in Oklahoma. They are ready to go in every State of the Union. I say to all these good people who told us how much they want this bill to move: Please contact the Republican leadership and tell them to play Presidential politics another day with amendments that are not germane, with amendments that don't belong on this bill. Today pass this legislation.
There is too much talk around here and not enough action. We passed a stimulus bill. We did it in a bipartisan way, but we all know there is more to be done. This little bill will create tens of thousands of good-paying jobs in America, doing something that has to be done. But, no, we cannot finish it. We had one vote so far on an amendment by Senator DeMint. We defeated it, which was important because it was a killer amendment. It says to me people want this bill.
This is the status. We are waiting for some type of agreement. This whole thing is being slow walked. We look forward to hearing from the majority leader as to whether there will be any more votes this evening. But as far as this Senator is concerned--I know I speak for Senator Inhofe--we want to get this bill done. But people are slow walking this bill. We are going to do our best to see if we can get this logjam stopped. But at this point, we have not been able to do it.
Tens of thousands of jobs are in jeopardy, and 500 various transit projects already paid for are in jeopardy. What a shame we cannot go forward. What a shame we are in another slowdown by my friends from the other side of the aisle. It is very discouraging.
Again, as the eternal optimist, I will return to this place tonight, if we can continue working, or tomorrow after we come in after we pay our respects to the Pope.
I ask unanimous consent that the order for the quorum call be rescinded. I come to the floor this evening to talk about the energy crisis, the price of oil, and how consumers are seeing the impacts…
I ask unanimous consent that the order for the quorum call be rescinded.
I come to the floor this evening to talk about the energy crisis, the price of oil, and how consumers are seeing the impacts of high oil prices in their everyday lives. The high price of oil is impacting businesses and many consumers can't afford to take family vacations and trips, dragging down our economy over all, and dragging us further into an economic downturn.
What I have heard today on the Senate floor from many of my colleagues is accusations and claims about what is going on and what might have transpired on various issues that might have caused the high price of gasoline and certainly the price of crude oil, which is now well over $100 a barrel. I think it is important to think about what Congress has already done and to make sure we are telling consumers what needs to be accomplished to solve the problem.
What we are hearing from analysts on Wall Street is that this issue is going to continue to exacerbate, and that oil prices will continue to rise. When we think about oil futures all the way out to 2015, still being over $100 a barrel, and oil futures impacting the physical price, it raises a lot of concerns about how the economy can sustain such a high price of fuel.
Let's start with some basics about supply and demand because many of my colleagues on the other side of the aisle have talked about the fact that they think oil supply hasn't been there, that growth in the numbers of people in India, China, other countries, is exacerbating the problem.
While we have seen growth in demand from other countries, this chart--starting in 1980, going all the way to 2006, and showing some numbers until 2008; the orange line is demand, and the yellow line is supply--except for some anomalies here, shows that supply and demand have kept pace. So anybody who wants to say this is all about supply and demand hasn't looked at a chart such as this showing that these lines pretty much track each other. What it tells us is that we have to look at other fundamental things that are happening in the marketplace and not just make accusations about what is going on.
In fact, if you want to look at the high price of gasoline, you can't say it is just an increase in demand. During the summer season, motor gasoline consumption in the United States is actually projected to decline by four-tenths of a percent, and it is projected to decline by three-tenths for the whole year. We are actually seeing a decline in demand. Obviously, that is not a surprise. Given the high price of fuel, people are not able to afford to continue their normal habits. But the issue isn't that the price is being driven up simply because there is this increase in demand. The high price of gasoline also isn't about the fact that there are low inventories. Some people have wanted to say this issue is about low inventories. When you look at what the industry says, here is an oil analyst who basically says that gasoline inventories are higher than the historical average at this time of the year. So there is really no need to worry about tight supply. Here is an oil analyst saying that.
It points, again, to other questions about what is going on. Some people have said: Let's blame it on renewables. Many Democrats have been big supporters of renewable energy, big supporters of getting alternatives into the marketplace, because we believe if you get alternative fuel into the marketplace, it will lower the demand on normal fossil fuel and create some competitive advantages. I know there are some people--a Governor--basically saying: You ought to repeal the whole RFS. You ought to get rid of this issue as it relates to having a renewable fuels standard. Here is the Wall Street Journal report from Merrill Lynch saying that without biofuels, the price would be even higher, and that basically oil and gasoline prices would be 15 percent higher if biofuels weren't helping to increase the output. So it is wrong to say that somehow our focus on renewable fuels has exacerbated the situation when, in fact, it has done nothing but help the situation. In fact, I love that this Texas A&M study basically found that ethanol has increased in excess of what our renewable fuels standard was, indicating that relaxing the standard would not cause a contraction in the industry, nor would it cause a reduction in the price of corn.
The issue today is where do we go for solutions. Part of the issue is that many of my colleagues are saying it is all about more supply of fossil fuel for the United States. We have had this debate so many times in the Senate. We
have had a debate about whether the United States, with 3 percent of the world's oil reserve, really is going to make a dent in increasing supply and giving consumers a chance to get off fossil fuels. We are going to have a big debate about global warming and its impact and whether we should even keep our focus on fossil fuel or accelerate getting off of it.
Many times today, even down at the Rose Garden, we hear the word ``ANWR'' again, and how ANWR was the secret recipe for lowering gas prices in America. I obviously don't support opening up drilling in the Arctic Wildlife Refuge because it is a wildlife refuge. But I certainly don't support it when even our own Energy Information Administration has said that drilling in the Arctic Wildlife Refuge would only reduce gasoline prices by a penny per gallon and only 20 years after we got to peak production. So at a penny per gallon, if people use 400 to 500 gallons of fuel, we are talking about a few dollars of savings there over many, many months. So the notion that ANWR would be some way of solving our problems just isn't true.
I know a lot of people have talked about refinery capacity, and I think you need to talk to the oil companies about refinery capacity and why they have not expanded. I know my colleague Senator Boxer has been out here many times talking about how she had to stop consolidation in her State because they didn't want to keep a refinery open. But I know this: We know it is not environmental regulation. In fact, according to this CEO of an oil company:
We are not aware of any environmental regulations that
would prevent us from expanding our refinery capacity or
siting a new refinery.
So we know it is not about environmental regulations. That is not what is stopping them either.
Some people have said: Don't take the tax incentives away from the oil industry; don't do that because somehow that is what is keeping the industry afloat. The industry is making record profits. They are making so much profit they don't even know what to do with the profit. They are buying back their own stock.
We know this: We know the President of the United States, George W. Bush, said:
With $55 oil, we don't need incentives for oil and gas
companies to explore.
It is way above $55 a barrel. So I take him at his word that we don't need incentives to continue to explore at that level.
Let's talk about what is the issue. Let's talk about what is the problem we need to solve, for which we need to be responsible to consumers, to businesses, to the economy, and to make sure we continue to deal with this threatening crisis.
I know one oil analyst who looked at these markets. And maybe the man on the street, if you ask him, he thinks something is going on in the oil market. He doesn't think it is about supply and demand. He didn't happen to see that first chart I put up, but he knows something is going on because he sees the irregularity of prices. But this analyst said: Unless the U.S. Government steps in to rein in speculators' power in the market, prices will just keep going up. Basically he is saying that speculators have too much power in the market right now, and unless the Government does its job, the prices are going to keep going up. So it is time for us to act. It is time for us to get smart about this.
It reminds me of the debate we had when the Enron crisis hit the electricity markets. It probably took well into 2001, when many people said: Do you know what, this is all about environmental regulation, or, this is about not enough refineries, and it is about the fact that there is a supply shortage. They came up with all these things.
So as 2002 rolled around and as more and more investigation was done, we found out that, no, it was actually manipulative schemes by various individuals within a very large organization--actually several organizations--that purposely manipulated the electricity markets. They did this so they could short supply and drive up the price.
Now, Congress acted in 2005. We said--after we found out all the facts, we heard all the terms: Death Star, Get Shorty, all the various schemes that had been manipulated--we kept thinking: How could this happen when we had a Federal Power Act that said, on the wholesale rate of electricity and natural gas, you have to have just and reasonable pricing. We thought that is a clear enough message for people. But, in fact, it was not. It was not a clear enough message. It cost my State billions. It cost California's economy billions. So what did we do? Congress made it illegal to use manipulative devices or contrivances in the electricity or natural gas physical markets, and we greatly increased the penalties for market transparency violations.
Now, why did we go to the extent of doing this? We could not believe that such activities were in some way a gray area and that somehow people were still confused post-Enron that this kind of activity was OK. Some people said: Well, you already have the electricity and natural gas markets under the Federal Energy Regulatory Commission. What else do you need?
But I was very proud that Congress passed this legislation. Since that law has been on the books, since 2005, the Federal Energy Regulatory Commission, as it relates to electricity and natural gas markets, has been aggressive about pursuing this power and using it.
What have been the results? Well, the result has been making market manipulation illegal when it comes to oil and natural gas, so that they have had 64 investigations, 14 settlements, $48 million in civil penalties, two ongoing market manipulation cases that could net over $450 million in civil penalties, and a dramatic increase in self- reporting and self-policing. It is like one of my staffers said: If you want people to straighten up, let them know there is going to be a cop on the beat. Let them know there is going to be someone investigating these activities and we are not going to tolerate it, and people will start obeying the law. So we did that.
In 2007, we decided that if this kind of pervasive activity was still continuing in the natural gas and electricity markets--if that was still happening--maybe there was some correlation here with what was happening in the oil markets, because clearly, after looking at all those charts we just went through about supply and demand, and everything else, we could not understand what was happening. We have had oil company executives tell us that the price of oil today should be at somewhere between $50 and $60 a barrel given where supply and demand is. Oil company executives are throwing up their arms saying: We don't know why the price of oil is well over $100 a barrel. So we, in the Energy bill in 2007, passed a law saying it is time to make the same laws we have for natural gas and electricity apply to oil markets. We said that any person who uses, directly or indirectly, ``any manipulative or deceptive device or contrivance'' in connection with the wholesale purchase of crude oil or petroleum distillates--that that was illegal and that Congress made violations subject to penalties of up to $1 million a day. That is $1 million a day because we believe, if you are doing these kinds of activities, every day that you have engaged in those activities you should pay a fine for that.
Now, where are we today with this authority? Because some people say: Well, you passed a law. Is it working? This law does not really go into effect until the Federal Trade Commission adopts rules and puts them into action. That is what we are waiting for now. My colleagues on the Commerce Committee have urged the FTC to hurry about this task, that it is so important to our economy and to consumers to hurry about this task. I know Senator Reid has encouraged them, Speaker Pelosi has encouraged them. So we are in the process now of hoping that the FTC will implement this rule and give proper notice but start the process because once the marketplace knows--just as they did in natural gas and electricity--that these kinds of activities will not be tolerated, we might be able to make a dent in what is happening with this excessive speculation in the energy markets.
Well, let's look at what exactly the market manipulation behavior is that we are concerned about. We basically have said we are interested in whether companies have manipulated the supply, whether they have given false reporting, whether they have cornered
the market, and whether they have engaged in any kind of rogue trading. Those are the things we are concerned about.
Well, let's talk about supply manipulation for a second because that is something for which people might say: Well, it is just about supply and demand, and how do you pass a law about supply and supply manipulation? Believe it or not, there are good Federal statutes on the books starting with a lot of case law and a lot of history. What we are saying is, we do not want any artificial influencing of supply in the energy markets. We do not want someone creating something that is not a normal part of business but is artificially used to create a shortage-- for example, diverting or exporting marginal supply in tight markets. That is, we know the market is tight on oil. You can go back to that chart on supply and demand. They pretty much track very closely. So it is a tight market. When you have an event like Katrina, it is even tighter.
Our question is, Did somebody export supply outside the country just to create a shortage in the United States and drive up the price? Have we had hedge funds holding crude oil ships off the coast just so the price will go up for a few more days?
That is the second point: holding supply deliveries temporarily to boost prices. We have people now who are major players in the oil market who really are not the end users of crude oil supply. They are just big financial movers in the marketplace. They are not taking the delivery of oil because they are out there delivering it to various jobbers or what have you. They are there for a financial investment.
In fact, we want to know if some of these inventory management strategies that have basically reduced physical supply--and basically everybody just trades their reserves on paper, and everybody just trades the paper around, where that, in fact, does not have much transparency to it. So we do not know how much that creates that management system in and of itself. Where we used to have 30 days of crude oil supply, thereby, the market was not so tight. Now we have this paper inventory system. We do not know what that really means. We do not know how much supply is really in reserve. Is that being used to manipulate supply?
Then, obviously, what we saw--I just think back to the Enron days when people said: Oh, no, no one would ever shut down a powerplant just to short supply. They would never do something like that. It must all be about the fact that really something was wrong. Well, we found out that there were purposeful shutdowns of various powerplants to short the market and to drive up the price. So we want to know if there are unnecessary and untimely ``maintenance'' shutdowns just to impact supply in the marketplace of oil.
We also want to know whether there is false reporting because false reporting can lead to misleading or inaccurate statements that also can hinder the marketplace.
Part of this legislation we passed in this bill is to say, in 2007, that if you gave false information, that was also subject to civil penalties of up to $1 million a day because part of this--the same in the Enron case--is it was very hard to understand these schemes. If it was not for videotapes that were put together, we would have never known exactly how these schemes would have worked just by looking at the books. So we want the Government to look at some of this information and if there are manipulative schemes. But if they provide false information, we believe that also should be a penalty.
Now, we know that in one case of natural gas--El Paso Merchant Energy--they reported nonexistent trades to reporting firms while at the same time failing to maintain certain records. They basically created false information about the trades that were going on. The result was six traders were convicted for false reporting and attempting to manipulate the energy market.
Now, the reason why this is so important to the subject we are debating today is that manipulation has happened in natural gas, and why this is so important now is because in the oil markets, and particularly in the oil futures market, we do not even have the same transparency in reporting requirements that we do with other commodities like natural gas. We have given them an exemption in the Enron loophole that was done in 2000 as part of the Commodity Exchange Act, so they do not have those reporting requirements. So we cannot even go and get some of this information to know that something like what was happening with El Paso Energy is transpiring in the oil markets, as it did in the natural gas markets.
So it is one of the reasons why we want to close the Enron loophole and to say that the trading of energy futures, which definitely impacts the price of oil today--and we will get to that on another day out here on the floor, about how the energy futures price impacts oil today, we will get to that, but for today we just know that if you do not have reporting, then there is no way--whether it is the SEC or the CFTC or FERC or the FTC--no one has any ability to get access to the information.
We also know that we want cornering the market to be illegal. Cornering the market would be exploiting the market power through excessive mergers like natural monopolies or blocking new entrants to basically corner the marketplace. We know this is something about which we have a great deal of concern. We know British Petroleum attempted to do this. Basically, they purchased excess propane in Texas, within the pipelines, to hold it from the market and then sell it high. We know they did that in trying to corner the market. The end result was that the Department of Justice and the CFTC ended up with a settlement case against them in the number of $303 million. So we know these things are happening in other energy markets, and we know they are a problem in the--potentially a problem--in the oil markets today.
We also know rogue trading is potentially a problem as well.
Mr. President, I am not going to take much more time on this issue as it relates to the high price of gasoline. I plan to continue to come out to the floor to talk about this issue about the need for the CFTC to promulgate this rule and get on about investigating the oil markets and to make sure consumers are protected.
I talked about what I think the rule needs to do. It needs to prohibit the manipulation of supply and to have a strong statute and penalty for falsifying information. It has to have a prohibition on cornering the market.
I believe that rogue trading is something else we are seeing in the marketplace. We need to have a prohibition on that. People might ask: What is that? It is employing manipulative trading schemes such as buying or selling large volumes of stock or futures contracts with the intention of influencing prices.
You can imagine, if somebody has a large position in one of these energy supplies or stocks, that basically ends up impacting the marketplace. We actually found this with the Amaranth case, in the area of natural gas. Amaranth sold large volumes of what is called next month natural gas delivery in the last 30 minutes of the market. What they did is basically crashed the close of the market. By selling large amounts of futures contracts for delivery of natural gas at the close of the market they manipulated the price and benefitted their large positions in other financial derivatives, and that ended up impacting the physical price of natural gas. The good news is the FERC, because of the 2005 law we passed, was on the beat, doing its job. Unfortunately, consumers paid something akin to $9 billion in increased natural gas costs before the FERC could get this situation under control. Now they are in the enforcement phase of a $291 million civil penalty against Amaranth. We know these situations are happening with rogue trading.
We know of another case that is similar to rogue trading and price manipulation, where Marathon Oil allegedly attempted to sell oil delivery contracts below the market prices in order to basically lower the market price, benefitting them as a net purchaser of foreign crude oil. So there ended up being an investigation by the CFTC, and today they are in a $1 million settlement with the CFTC on that issue.
All these issues, I believe, need to be investigated in the oil markets. They need to have a strong statute passed by the CFTC, similar to in 2005 for electricity and natural gas, where we can
see the results of the investigation, we can see that a Federal agency is doing its job; we need to do the same thing with the oil market.
In fact, there are five things I think we need to do that would help protect consumers from high prices of gasoline. Our economy and consumers cannot afford much more.
We need to close the Enron loophole, in which that 2000 law said that online trading promulgated by Enron, they said, they don't have the same transparency, don't have to open their books or allow people to see what they are doing. We know for other commodities the Securities and Exchange Commission and CFTC look at those things to make sure there is not a manipulation in the marketplace. We cannot even get these because we gave them an exemption. That needs to be repealed. We need to require oversight of all oil futures markets. That is, as I said, the oil futures price affects the physical price of oil. If people are going to buy oil futures well into 2015 at over $100 a barrel, it is going to impact the physical price of oil today. If you can buy oil at over $116 in the oil futures, it is hard to believe that oil is going to drop much below that in the physical market. But these are markets--unlike, again, our commodities in the United States, on NYMEX or the mercantile exchange, such as corn or soybean futures, this is an exchange the United States doesn't have any regulatory impact on. We don't have the ability to look at those books, any enforcement mechanisms. We don't have the ability to protect consumers on that kind of speculation if there is manipulative activity going on.
As I said, we need to get the CFTC to finish their work. This is so important that I think the Department of Justice should coordinate all these agencies because there are futures activities, there is a physical market, and there is the falsification of information. What happened with Enron is the Department of Justice created a task force, called the Enron Task Force. It coordinated these agencies and got to the bottom of what was happening with the electricity markets and the manipulation. I think the Department of Justice should create an Oil Market Fraud Task Force to do the same thing.
Lastly, I know my colleagues will talk about this on the floor--to make price gouging a Federal crime. There are 28 States in our country that have the ability, in an emergency, to make a declaration in the event of a natural disaster, or huge anomalies in the market, and help stabilize the situation with executive power. I am willing to give that same executive power to the President of the United States. I hope he would use it.
In conclusion, there is a lack of transparency in energy trading markets. We need to fix that. This is one of the CFTC Commissioners who said:
I am generally concerned about a lack of transparency and
the need for greater oversight and enforcement of the
derivatives industry.
He is basically talking about this offshore exchange, where we don't have the same kind of oversight that we do. In fact, I said earlier that we have more regulation of hamburger and the future of beef than we have of oil. I will tell you that oil is critically important to our economy, and it needs to have the same kind of transparency and oversight as other futures commodities.
Last, I will reiterate that even on Wall Street, even the analysts who know what is going on in the marketplace, who know these prices are outrageous, not based on supply and demand, are saying:
Unless the U.S. Government steps in to rein in speculators'
power in the market, prices will just keep going up.
An energy analyst said that this month.
It is clear the marketplace even thinks there is too much speculative power, and the answer is for us to do our jobs--for the FTC to do their job, to get the help of DOJ, and for us to make sure we are doing our job on oversight in giving consumers protection. But I think there are very few people in America who do not think these prices are out of control, that it is not normal market forces, it is not normal supply and demand, and if it keeps careening out of control, it is going to wreck our economy. It is certainly wrecking consumers' pocketbooks right now.
I hope we will take action. I hope the Federal agencies will get on their feet and be aggressive about protecting consumers on this important issue. I know we will continue to talk about this on the floor as we continue to pass legislation that does protect America from these out-of-control gasoline prices.
I yield the floor.
Three or four minutes.
Mr. President, I say to the majority leader, I appreciate what he said on behalf of women. Washington State has one of the highest rates of breast cancer in the Nation. We have a very good detection program and good survival rates. We don't know the cause of it, but we know it is very important to continue the research.
I know that in 1992, the so-called year of the woman, when we had one of the largest classes of women elected to the Congress, we saw an increase in women's health research. Why? Because women were in the Congress to say it was important to us to not have the research directed in a way that favored some of the particular programs that were about men's health.
So I thank my colleague. The majority leader is right to say we have to respond to our constituents who are concerned about this issue and want to give attention to it. Clearly, women's health research hasn't gotten all the attention it deserves in the past.
Yes.
That is what we found in the 1990s, in that we didn't have enough representation to ask the hard questions, to say our constituents were not being heard on this issue and to raise this in various committees. Frankly, that was the time period when, for the first time, we had a woman on every committee in the House of Representatives. Once we got women on every committee, we asked the hard questions and increased the percentage of women's health research.
I think it is a very poignant point to the fact that, while NIH does good work, we have to respond to our constituency and, certainly, there can be discrepancies and issues that the larger public should have a say in as to health research.
Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, I ask that the pending amendment be set aside and at the appropriate place amendment No.…
Madam President, I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, I ask that the pending amendment be set aside and at the appropriate place amendment No. 4538 be inserted into the Boxer substitute.
Madam President, I ask unanimous consent that the reading of the amendment be dispensed with.
Madam President, I am on the floor this afternoon because a few years ago something happened in Congress that should never have happened. What happened is a bill passed the House and a bill passed the Senate. A bill that both Houses agreed to was changed before it went to the President. We do not know where it was changed or who changed it. We do not know the details of it. There has been speculation in the press, but we do not have any real knowledge of how this happened. But there is a principle, and the principle is, if we cannot trust what we agree to in both bodies of Congress will be sent to the President, then everything we pass has to be suspect.
This is a hard amendment to offer because there is a lot of angst around looking at ourselves and looking at the problems. But the one thing we do know is the American people expect the process to be one that is open, one that is accurate, and that when the President gets a bill, it truly represents what the Congress intended.
What actually happened? On the highway bill conference report passed by Congress, item 461, there were widening improvements for the I-75 corridor in Collier and Lee Counties in Florida. What actually went to the President was different. This was changed to Lee County only and for an interchange. Somehow that got changed. This money has been rejected three times by the citizens and their elected representatives in that area because they do not want an interchange. What they wanted was to widen I-75 in terms of hurricane evacuations.
As I said, we do not know how this happened. There is press speculation. We don't know if it occurred in the Senate. We don't know if it occurred in the House. What we do know is it did occur, and nobody can dispute the fact. And this bill, thanks to Chairman Boxer, corrects that and puts it back to what the original intent of Congress was, what Congress intended originally.
Some will say: Now that we fixed it, we don't need to do anything about it.
But the problem the American public has in terms of confidence in us is that we will do the right thing, and the right thing is to figure out how something such as this happened and make sure it never happens again and put in the safeguards so we know it will not happen again. I believe it is time for Congress to look at this issue and fix it.
Many of my colleagues say we are treading on dangerous water because if this occurred in the House, we are forcing the House to look at something, one body telling the other body to do something. We don't know where it occurred.
The amendment I am offering creates a committee of Members, four from the House, four from the Senate, that will look at this issue and make appropriate recommendations to the appropriate bodies; that is, the House Committee on Official Conduct and the Senate Ethics Committee or any law enforcement officers.
I understand that there will possibly be a second-degree amendment, and this ought to be offered and made, that the Justice Department look at this. That can certainly happen in due time, but there is this little issue of separation of powers. We have the responsibility in Congress to do what is right.
It is very interesting the debates we have had, especially in this Congress, about separation of powers and not wanting the executive branch to take power away from us. However, we are thinking about offering a second-degree amendment that would do that.
I believe in the people in this body. I believe we all do not like that this happened. I believe we all want to see that it never happens again. The best way to do this is to have an investigation, two Members appointed by the Speaker and two Members appointed by the minority leader in the House, two Members appointed by the majority leader in the Senate and two Members appointed by the minority leader in the Senate. So we have eight Members reporting back to us what happened and making recommendations to the appropriate committees, not necessarily to us.
As we all know, Senate ethics investigations, as well as House investigations in terms of official conduct, are not public. We don't know if something is going on regarding this issue now. But what we do know is something happened, and we ought to be about fixing it.
My worry is if we modify this amendment or we do not agree to this amendment, this is going to be the feeling of the American public: Is this political? Can we not control the rules of our own body in terms of enrollment?
It is interesting what Jefferson said when he talked about this in his manual. He described what should and shouldn't be done when a bill has passed both Houses of Congress.
The House last acting on it, notifies its passage to the other and delivers the bill to the Joint Committee on Enrollment, who sees it is truly enrolled in parchment. When the bill is enrolled, it is not to be written in paragraphs but solidly, all in one piece, that the blanks between the paragraphs may not give room for forgery.
That is, in essence, what happened in this case. Now, that is not a case for the Justice Department to investigate at this time. That is a case for us to investigate and look at our own rules. The fact is, something went terribly wrong on the way of a bill going to the President that was different than both Houses of Congress passed.
I understand the angst of someone coming from the Senate and saying this ought to happen, and I understand we don't want to get in a fingerpointing mode. But if the House agrees with this in conference, it will happen; and if they do not agree with this in conference, it won't happen. But what should happen in the Senate should be that we look at this so we can create the confidence that the American people deserve to have in this body to know that when we pass a bill out, that the bill we passed is actually the bill the President signs.
I am thankful to the Transportation Committee and Chairman Boxer and Ranking Member Inhofe for clarifying this and fixing it. It is right that it should be done. It is right that the original intention of it should be done. But that is not good enough. That is not good enough for the American public. I understand the desire of the chairman of the committee to move this out of our hands and into the Justice Department's hands, but I have some problems with that. One is this idea of separation of powers. What other powers are we going to give up when we can't handle a simple investigation into what went wrong during the process of enrollment?
The second thing is, my legal staff tells me we cannot mandate to the executive branch what they will and will not investigate. So should they choose not to investigate this, we will have been no further down the road. But the 100-percent guarantee that it will get investigated is if we have Members of both bodies investigate this and come to a resolution so it does not happen again.
It doesn't matter whose bill it is, and it doesn't matter which party's bill it is. If a bill, no matter whose bill it is, is changed, it affects the whole country, and it affects the confidence in this body. This is an ethical issue for us, if in fact it involved the Senate.
The easy thing would be not to offer this. That is easy; you don't make other Senators uncomfortable with you; you don't have the chance that the House could be upset at what we are suggesting in a conference, if they agree to us jointly in investigating this. We could sweep it under the rug as if it never happened because we corrected it. But it did happen. And by not investigating it, it means it can happen again.
This is not without precedent. I believe in 1982 or 1992, this same thing happened and it didn't get investigated. It just got changed. So here we have it happening again, and only because of some very good work in the press were we made aware of it. Consequently, we ought to be the ones to fix it. We ought to take responsibility for our actions and we ought to correct the problem that happened with this, wherever it may be. If it happened in the House, the House should correct it. If it happened in the Senate, the Senate should correct it. But at least we ought to know the details of how and why, and then, if appropriate, a referral, if in fact that is justified. If it was a simple clerical error, we will know that. If it was more than that, we will know that.
The fact is, by not doing this, what we are saying to the American people is, oops, we had a mistake that is paramount to the quality and the clarity of how this body functions, and we believe it is not a grave error. Well, I happen to disagree. It is an entirely egregious error because it impacts every other piece of legislation.
If I as a Senator can no longer trust that the bills we pass in Congress, after they are enrolled, are exactly what we pass, then I now have to spend the time looking at every bill after it has been enrolled to make sure it matches. None of us has the time to do that. That is what we entrust the Secretary of the Senate and the Clerk of the House for.
So somewhere along the way, something changed. We need to know that. We don't need to play the same political games. We don't need to play a partisan game with it, because nobody knows for sure who did what. What we do need to do is to do the hard work of looking at what went wrong and making the appropriate changes.
I note there are several cosponsors, and the Presiding Officer is one. She has been a great addition to our body because she seeks clarity and transparency in what we do here; also Senator McCain and Senator Obama, as well as Senator Martinez and Senator Nelson of Florida. They are the two Senators where this had the most impact.
I don't come to the floor lightly saying we want to poke at people, but I do think it is important for the integrity of our body that we, along with the House, get to the bottom of it. It was my hope we could work this out without trying to refer it to the Justice Department. If in fact it needs to get there, it will get there after appropriate investigation.
To bypass us and give up our power to correct things that are wrong with our rules--not laws, our rules--seems to me to be the antithesis of what we have debated so many times in this Senate over the past 9 to 15 months about the executive power encroaching on the Senate. Now we are ready to give that power away for something that is duly ours and set a precedent
that we are going to ask the Justice Department to investigate us? We ought to be investigating ourselves.
We have the integrity, we have the quality, we have the people, and we have the goodwill of all the Senators of this body and all the Members of the House to do that. Because the institution is more important than any one of us. What we do for the American people has to be more important than any one of us. So it is my hope--I will not take much more time--the Senate will concur.
This is done with all sincerity. I am pointing a finger at no one. But I think if we do not do this, by a second amendment that takes it away, what we will have done is to abrogate our responsibility in terms of the clarity of our purpose and the quality of our work. And if we choose to do that, here is what we will find. We will find another notch down the confidence in Congress by the American people, if we refuse to look under our own bedsheets for our own bedbugs and give that responsibility away.
I appreciate the help of the staff of the committee. They have been very forthright in working with us. As I have said before, I appreciate Senator Boxer's cooperative attitude on this. We disagree on how best to handle this, and I understand her right as the chairman and as a Member of this body, but my hope is we don't give away powers that are ours. The separation of powers is a very important concept in this body, and to abrogate our responsibility and appoint it somewhere else, when we don't have the facts--that can always happen afterwards.
In fact, this amendment states that appropriate referrals will be made to both Ethics Committees of the House and Senate and to law enforcement, if necessary. So my hope would be that we could vote this eventually and look at it. I think it is paramount for the quality of our work.
Madam President, I reserve any time I may have, and I look forward to the comments of the chairman.
Madam President, first of all, I thank the chair for her words. I stated that this amendment language is based on a very big precedent established in 1992 in this body with a joint committee of Members of Congress to look at the rules in both Houses, to look at the processes in both Houses. There is a precedent. There is not a
problem with the debate clause. I think that is not a prudent argument to be against this.
The Justice Department will eventually get this if, in fact, we find out there was a crime. I also make the point that nobody knows right now where this occurred. At least I don't. Nobody knows what the facts are, so the assumption we are making that we would be involved in investigating the House is--we do not know that. At least I certainly do not know it, and I have kind of been looking at this for quite some time. So it is an assumption that we are going to have, necessarily, an investigation of the House. We may be having an investigation of the Senate.
The fact is, we have a good precedent for this. This was a Joint Committee on the Organization of Congress, H. Con. Res. 192, in the 102nd, and it looked at everything. It didn't just look at one specific thing. So there is precedent for it.
More important is the separation of powers issue. What we are saying to the American public is we do not have the power to control our own body and that we have to ask the Justice Department to come in and do it. If there is a criminal violation, they certainly ought to be involved in that, but we do not know that yet.
First of all, these are the rules of the Senate. They are not law. We are asking them to investigate the rules of the Senate, not a law; therefore, we are giving power to the executive branch, we are asking the executive branch to come in. My great worry--there is no question, Senator Boxer's amendment will do this. It will get an investigation, if they will come and do it--there is no way we can force them to come and do it--and we will get to the bottom of it.
But I am worried about the integrity of the body, saying to the American public that we cannot police ourselves; we cannot do it; we do not want to take the heavy lifting it is going to take. And I do not believe a four-by-four panel of two Democratic Senators, two Republican Senators, two Democratic Congressmen, and two Republican Congressmen-- and this committee has the right to not do any of this in public if they do not want to. The committee totally gets to do this. Nobody wants a circus. I am even reticent that I am actually here making this point. I think it is a pox on our body that this happened, but I think it needs to be addressed.
My hope is that people will not take a partisan viewpoint on how they vote. My hope is they will think about the institution of Congress, they will think about the separation of powers, they will think about the difference between laws and rules of the Senate and rules of the Congress. Then, if a referral needs to be made to the Justice Department, we would do that, but that would most appropriately come from our Ethics Committees, not from this committee--after a referral from this committee to the Ethics Committee.
The chair of the Ethics Committee cannot say whether they are looking at this right now. They may be. They may not be. We do not know. The Justice Department cannot say whether they are or not. So we do not know what is happening.
The point is, something needs to happen. I worry that when we tell the American public we are not capable of looking into our own dysfunction, that, in fact, what it says is that we give up power to the Justice Department to look at how we enroll bills and whether we violated the rules under how we do it. I have a real concern with that. I have tremendous concern with that, especially since we made such a large issue of separation of powers in this Congress.
I will make one other point, and it is not to demean the Senator from California. If this were important to the committee, why was your amendment not part of the committee mark? If, in fact, the committee was enraged over this, why was this not a part of the original committee mark?
Why have we not addressed this in the original committee mark or the substitute? We corrected it--and I said, while the Senator was out, I was thankful that the problem was corrected. But the issue of how it got changed is not in the committee mark.
This amendment, this second-degree amendment, comes on the fact that we are trying to offer what I think is a cogent way that has precedent in both the House and Senate for solving this. That is probably just an oversight because I know the Senator cares deeply about this. I know she was upset about it. With everything they had to do to bring this bill to the floor as quickly as they did, that is probably what happened. But the fact is, we are at this point. If the body wants the Justice Department--if we want to give up that power to the Justice Department, the body will vote that, and that is fine.
The last point I will make, and I will not continue on a lot further, is this does not force the House to do anything. Let me tell you why. This bill will go to a conference committee, I believe, of which Chairman Boxer will be the head, and all the House has to say is: We disagree with this; we do not want to do this; we do not want to have a committee look into this. The House has that option, and if it does not agree to it, it will not come out of the conference committee and we will not do anything on it.
The same is true of her amendment in terms of the Department of Justice. But it is important for the American people to know whether something happens on it and whether we do it in a way that emboldens and strengthens the institution of Congress or weakens it.
Amendment No. 4540 to Amendment No. 4539
Before I yield the floor, I have a second-degree amendment at the desk. I ask for its immediate consideration.
I reserve the remainder of my time and yield the floor.
Madam President, I will just make one comment.
First of all, the chair of the EPW Committee is very gracious. I appreciate her words, and I intended no disrespect for her in terms of her effort. I know she supports this effort to get to the bottom of it. But I would make a correction. We only say we should share with three people: the appropriate law authorities and the appropriate ethics committees of both the House and the Senate.
We did not envision a show. I would envision that the people who might be on this committee would take this very seriously; that, in fact, it probably would not be open hearings but, rather, closed, and that, in fact, we would get to the bottom of the problem.
But either way we get to the bottom of the problem, I am happy we are going to get there. I think it is important that we get there. As I outlined, I think the integrity of what we pass, no matter how we get there, as long as we can ensure the integrity, I will be satisfied we have done that. I am not sure we will get that.
The final point I would make is we will be setting a precedent. Let us not forget, we will be setting a precedent that the Congress says the Justice Department should investigate us. That is a big precedent. That is a big precedent. I am not a lawyer. I do not know if it has happened before, but I do not like that precedent. I don't like it at all. Because I think the integrity of this body is far greater than that. I think Members of this body are far above that, that we do not need the Justice Department to investigate us. I think we can investigate ourselves and we need to demonstrate to the American public that we do have the will and courage to do the disciplined thing and do the right thing and to solve the problem.
Then if a referral is needed to the Justice Department, we should give it. But I have great qualms, great worries about ceding to the Justice Department the power to investigate us. My own personal experience is, we do not know where they will go. We do not know that they will stick on us. The point is, this is a big precedent I would worry about setting.
I yield the floor.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, today we debate the FAA reauthorization, and it is a debate that probably should have been…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, today we debate the FAA reauthorization, and it is a debate that probably should have been joined a long time ago. This is a piece of legislation that has been kicking around here for a long time. I serve on the Senate Commerce Committee. I know both the House and the Senate reported bills out many months ago. We are finally now getting a bill on to the floor for debate. It is important we do this.
This is legislation that is critical to the infrastructure that supports our aviation industry, which is a critical industry to America's competitiveness, and if we look at what is happening in the airlines these days, obviously, we need to do everything we can to make sure we have a viable and effective aviation industry and commercial airlines are able to operate and provide the services to travelers who need to get, every single day, to places both here at home and around the world to conduct business and to recreate.
In the course of this debate, I cannot help but be struck by the fact that I do not see there is anything we can do in the FAA reauthorization that addresses what fundamentally is probably plaguing the airline industry more than anything else, and that is the high cost of energy.
I am looking at some information, graphs, some data. We can look at this graph for January of 2004 and see where the cost of crude oil and the cost of fuel for the airlines, for the aviation industry, was then and where it is today. Follow the red line, the way it tracks up. That spikes up. That is almost a straight vertical line.
If we take another graph which shows what the consumption of fuels is in the airline industry, the green line--you probably, Mr. President, cannot see this; it is too far away, but the green line shows consumption has been fairly static in terms of the amount of fuel that is used. But if we look at the expense or the cost of the fuel, it has increased at a sharp and dramatic rate.
My point very simply is that we cannot affect, I do not think, in a very substantial way, what is plaguing and ailing the airline industry and a lot of other industries in this country absent addressing the fundamental cost issue of energy independence.
If we look at where we are as a nation today and where we were 30 years ago, not much has changed. I remember as someone growing up during the oil embargoes and what we were experiencing in the late 1970s and a real concern at the time about our dependence, overdependence, dangerous dependence on foreign sources of energy. At that time it was 55, 60 percent. Here we are 30 years later and we are more than ever dependent on foreign sources of energy. Mr. President, 60 to 65 percent of our petroleum comes from outside the United States. We have very little control over the supply. The only way we fix that, the only way we can impact energy costs in this country in a meaningful way is to increase supply.
We can talk a lot about a lot of issues with regard to this problem, this challenge we face as a country. There are some things we can do to impact the demand side, too, and we did that in the Energy bill last year. We increased for the first time in a very long time fuel economy standards so now automobiles are going to be built to standards that will require more miles per gallon than they currently get. That will help control, to some degree, the demand side. Obviously, I think individual consumers in this country, drivers in this country, are going to begin to take steps to reduce the amount of fuel they consume because it is impacting so adversely their pocketbooks on a daily basis.
But there is not anything we can do totally on the demand side to get us out of this mess we are in. We have to do some things to impact supply. I can't help but think that if we had taken some of these steps years ago, back in 1995 or thereabouts when President Clinton vetoed legislation that would have allowed oil exploration on the North Slope of Alaska--at the time it was argued, oh, it will take 5 to 10 years for us to develop this resource and when we do, it will not be that much anyway. It is only 1 million or 1\1/2\ million barrels a day, and that is not that significant in the overall scheme of things. Here we are 10 years
later. If we had done that then, this would be fully developed, we would have the barrels of oil on a daily basis, the daily equivalent of what we get from Saudi Arabia, available to meet our demand in this country.
It has probably been, since that time, half a dozen times we voted on that. In the House of Representatives, I don't know how many votes we had over there that would have allowed authorized exploration for oil on the North Slope of Alaska. We have had that vote in the Senate, since I have been here, on at least one occasion, maybe two times, where we were a couple votes short of reaching that magic 60-vote threshold that would allow us to move forward and explore some of these opportunities that we have to grow our supply, our domestic supply of energy.
Because he had listened to this debate for some time--I have been in the Congress, now, for the better part of 10 years and always was interested when the debate would come to the floor of the House or the Senate and you would hear both sides come to the floor and make their arguments--I actually went up to Alaska and visited the section 1002 area where it is proposed we develop this oil resource. We landed in Barrow, AK, in February, a couple years ago. It was 38 below. We visited a couple of the existing sites at Prudhoe Bay and then we went over to section 1002, which is the vast area we are talking about for development. What struck me is we are talking about a 2,000-acre footprint that would be used to access the oil below the surface, and with modern technology, you can actually get to those reserves below the surface with horizontal or directional drilling, with a minimal footprint on the surface, and it would be done during certain parts of the year where it wouldn't impact wildlife or anything.
Incidentally, there were caribou everywhere. Anybody who is worried about the caribou on the North Slope of Alaska, they have nothing to worry about because, if anything, it has been increased since the activity that has taken place up there.
But this particular area is a very isolated, remote area on the North Slope of Alaska. The estimates run from somewhere between 6 billion and 16 billion barrels of oil beneath the surface or, as I said, the daily equivalent of about 1.5 million barrels a day, which is comparable to what we get from Saudi Arabia.
To put it in perspective, a 2,000-acre footprint, for those who come from my part of the country who have an agricultural background, that is the equivalent of three sections of farm ground. That in an area of some 19.2 million acres in what they call ANWR, this refuge area. But if you look at the State of Alaska in its totality, Alaska, believe it or not, is 7.5 times the size of the State of South Dakota. You could put South Dakota geographically into Alaska 7.5 times. That is how vast this area is up there. It is part of our country, part of an area that has enormous resources below the surface that could be very meaningful in terms of addressing America's energy needs.
When you visit that area, you cannot help but be struck with, No. 1, how supportive the governmental leadership is in that area--the Governor, the State legislature, in many respects most of the local citizens. There are always those who are opposed to this type of development. We heard from them as well. But overwhelmingly, the majority of people in that area want to see this development.
Here we are again facing a crisis as we head into the summer driving season, travel season, vacation season. Families are looking, making plans. In my State of South Dakota, farmers are getting into the field, and they are having to deal with the input costs associated with high fuel costs, diesel costs. This is an economic issue that affects literally every American but particularly those middle-income Americans and those who this summer are looking at making plans to travel. They are going to be facing $3.50 gasoline, perhaps higher than that. Who knows how high that is going to go?
My point very simply is we should have been taking these steps many years ago. We are now paying a price for inaction on the part of this Congress when it comes to the things we can do to add to supply in this country, to make sure we are taking full advantage of the domestic resources we have right here at home so we do not have to continue to allow other countries around the world to hold us over a barrel when it comes to our energy needs.
The other thing we ought to have been doing--again this is something that is long overdue--is developing more refinery capacity. We are pretty much maxed out. We have not built a new refinery since 1976. They will tell you they have added or expanded existing refineries, and all that is true, but at the end of the day we have not done very much in terms of addressing the refinery shortage we have in this country either. So when it comes to raw resources such as the oil, petroleum resources below the surface on the North Slope of Alaska, when it comes to the ability to refine that into gasoline, we have some deficiencies that are of our own making. I regret the fact that we were not able to find the votes in this body to do these types of things many years ago, when today it would make a big difference in the challenge we face.
The other issue, the other point I will make--because I think it gets back at this issue of how doing some of these things, although at the time they may have seemed to be not that substantial, could make a difference at the margin--is what has happened with renewable energy in this country. We are now generating about 7.5, almost 8 billion gallons of renewable fuel or ethanol in America today. One would think perhaps, when you use 140 billion gallons of gasoline on an annual basis, that that is not that big of a dent. But there was a study done by Merrill Lynch, it was reported in the Wall Street Journal a few weeks back, that were it not for ethanol, the price per barrel of oil and the price per gallon of gasoline would actually be 15 percent higher than it is today. So even though it is 7.5 billion gallons out of a 140-billion- gallon annual demand for gasoline, it is affecting the price because it is impacting supply in a positive way.
In the same way, if we had opened the North Slope of Alaska when we had an opportunity to do so, we would have that 1\1/2\ million barrels a day coming into this country, which also would significantly impact the supply in a way that would begin to bring down prices. The only way we are going to bring downward pressure on prices is to increase supply. That is why I have been such a big advocate for renewable energy.
We are at 7.5 billion gallons today. The Energy bill that passed last year calls for 36 billion gallons of renewable fuel by the year 2022. I think we can reach that. We are not going to reach it with corn-based ethanol. We have to diversify the production of ethanol in this country with other forms of biomass, whether that is by woodchips out of our forests, whether it is by switchgrass, which we have an abundance of on the prairies of South Dakota--but there are a lot of opportunities for what we call the next generation, for cellulosics, to meet the demands for energy in this country. I think we should be moving full steam ahead when it comes to support for renewables so we can lessen the demand on foreign energy and we can become more energy efficient here at home and develop the supplies of fuel we have.
That being said, even if we get to 36 billion gallons of renewable fuels, we still will be way short of what we need. We are going to need a mix of fuels. We are going to rely on some of those traditional sources of fuel such as petroleum. Coal-to-liquid holds great promise in terms of being able to be used as a fuel, and coal is something we have in infinite amounts. We ought to be developing these types of resources. I think we also ought to be allowing States that want to, particularly some States in the upper Midwest, where ethanol is produced, to go to higher blends. We are at 10 percent ethanol today. There are States I think would like to go to higher blends. We ought to allow them, particularly when the studies are concluded by the Department of Energy and the EPA, which are determining the impact on drivability, materials compatibility, emissions--all those sorts of things. When they come back, which I believe they will, and conclusively determine that going to higher blends would not in any way adversely impact any of those metrics I mentioned, we ought to be moving to higher blends of ethanol because I think that also will help take pressure off oil prices as we continue to use more and more renewable energy.
These are all parts of a solution. We need supply. But we have not taken the necessary steps to add to supply. If not now, I don't know when. When we get prices such as we are seeing, and the impact that is having on transportation industries such as aviation, such as trucking, such as agriculture, these are impacts on our economy that are only going to bring great economic strain to many industries and a loss of jobs.
We can do something about it. We ought to be doing something about it. We need to now authorize, even though we have had many opportunities to do it in the past--we ought to do it on the North Slope of Alaska and offshore and other places where we have these reserves. We ought to allow refineries to be built. We tried to get legislation through that would allow refineries to be built on BRAC bases; in other words, bases that were closed through the BRAC process, and it was blocked by the Democrats on the Environment and Public Works Committee.
Even when it came to the renewable fuel standard last year, that passed through the Senate and House and ultimately was signed into law, there is a deficiency there as well which has come to light now and a change that was made at the very 11th hour by the Speaker of the House that prevents biomass, residual types of biomass such as slash piles that are generated in our national forests, to be used to make cellulosic ethanol.
That makes absolutely no sense. We have waste products in our forests that add to fuel loads that create fire hazards. All we are simply saying is these types of products could be used to make next-generation biofuels and help grow our supply of renewable energy, and that was stripped out, at the 11th hour, by the House in the conference.
That is very unfortunate because it is steps such as that, it is steps such as blocking legislation that would allow for expedited permitting of refineries on BRAC bases, it is things such as blocking a vote on opening the North Slope of Alaska to oil exploration--those are the types of things that are stopping us. Those are the types of steps and maneuvers in the Senate and the House that are stopping us from adding to the supply of energy so we can do something about it, so we can impact, in a meaningful and positive way, the high prices that are affecting consumers across this country.
I wish to make one observation as well with regard to renewable energy because ethanol has come under a lot of criticism of late, much of it I think inspired by opponents of ethanol, such as oil companies. People are talking about the high cost of food, and food prices have gone up in this country. But if you think about it, the amount of corn that goes into a box of corn flakes, for example, it is about a nickel. If you think about what impacts the cost of the things we buy at the grocery store, transportation has a profound impact on the cost because you have transportation, you have packaging, processing--all those things which are very energy intensive. So when you have high energy prices, high fuel prices such as we are facing today, that has more to do with the costs of food than the cost for a bushel of corn is ever going to have, when it comes to corn flakes or when it comes to popcorn or many of the other things that are being mentioned now by some of these groups opposing ethanol.
I also would point out what I mentioned earlier and that is that were it not for ethanol--this again was reported upon by the Wall Street Journal a few weeks back, a study done by Merrill Lynch--oil prices, per-barrel oil prices and per-gallon gasoline prices would be about 15 percent higher. Couple that with the fact that a high commodity price means the Federal taxpayers under our farm programs are not making payments to producers to the tune of a savings of about $8 billion last year, according to the USDA, and there are lots of impacts that are not being mentioned by those who are specifically singling out ethanol and criticizing ethanol for the increase and runup in food costs.
Add to that or couple that with this piece of data that comes out of the USDA, that $8 billion in savings in taxpayer payments would be made under farm programs that were not made, that didn't go out this last year because of high product prices. That is a substantial savings to the taxpayers of this country. Again, couple that with the fact that ethanol has contributed 15 percent reduction in the overall costs of fuel in this country, ethanol is having the impact we hoped it would by increasing supply and taking pressure off the price at the pump in this country.
High fuel costs, high food costs, all these things are impacting consumers across this country. We cannot solve that problem. We cannot solve the problem of the airlines until we do something to develop our domestic resources right here at home.
We have some supplies, some reserves underground even in places that previously had not been contemplated as a source of energy, in places such as the Dakotas where we are now finding there are some reserves down there, that with prices being what they are may be economically recoverable. We should be doing everything we can to develop domestic resources, whether it is on the North Slope of Alaska, whether it is offshore, whether it is in the Dakotas, in the form of oil below the surface, or corn that grows above the surface that is renewable that we can use every single year. We need to be developing resources right here at home that will lessen our dependence upon foreign sources of energy and do something to take the pressure off these high gas prices we are seeing today that are affecting every single American.
I hope we will pass a comprehensive energy bill, one that includes increasing our supply, one that finally, once and for all, will allow us to get to that 6 to 16 billion barrels of oil beneath the surface on the North Slope of Alaska, which is widely supported by the political leadership in Alaska, the local citizenry there, that increases the amount of renewable energy we use in this country by allowing States that choose to increase and go to higher blends, perhaps to 20 percent or 30 percent ethanol. These are all things we could and should be doing today--allowing refineries to be built on bases that have been closed, and allowing for expedited permitting when it comes to constructing those refineries. These are all things that ought to be part of this energy solution. I think people are going to hold this Congress accountable if we do not take steps in that direction. My hope would be that before we move out of here before the next break--we have got a break coming up in a couple of weeks--we will take some action that will do something meaningful to lower energy prices for people in this country, increase our supply to build new refineries, to support the increased use of renewables. Those are all things that will happen and provide solutions and meaningful relief to the hard-working people in this country who are now faced with much higher gasoline prices.
I yield the floor.
Madam President, yesterday, the Secretary of Defense announced the 2008 Commander in Chief's Awards for Installation Excellence. These awards honor the best installation for each service. For the…
Madam President, yesterday, the Secretary of Defense announced the 2008 Commander in Chief's Awards for Installation Excellence. These awards honor the best installation for each service. For the first time in the 23-year history of the award, the Air Force winner is a mobility base, Dover Air Force Base. Out of 117 Air Force installations, Dover AFB was chosen as the absolute best.
I cannot say that I was surprised. I believe they won because of the tradition of excellence imbued in each man and woman working at Dover.
It started in 1941, when the 112th Observation Squadron of the Ohio National Guard arrived to set up antisubmarine operations at the new Dover airfield. That mission and the others that helped America and her allies win World War II began an enduring tradition of excellence. In 1948, the airfield was officially named Dover Air Force Base and the Nation moved into its Cold War posture. Some may not know this, but for 7 years, 1951-1958, Dover was home to fighter squadrons defending American airspace.
In 1955, one of Dover's best known missions came to the base, the Aerial Port Mortuary. For over 70 years, the Dover team has given fallen Americans an honorable and compassionate homecoming. While it is only one mission on the base, every generation of air men and women stationed at Dover has taken pride in honoring America's heroes and ensuring the grace and dignity of their return to our Nation and their families.
By the late 1950s, Dover was transformed into a mobility base, under the Military Air Transport Service, which became Military Airlift Command, and eventually became Air Mobility Command. Since 1973, Dover has been home to America's largest military transport aircraft, the C- 5. Just last year, the Nation's second largest military transport aircraft, the C-17, was added to the base. As home to the Nation's great airlifters, Dover has always been busy--supporting American forces in every military engagement from Vietnam to Grenada to Panama to the first gulf war to the Balkans to Afghanistan and Iraq; supporting our Israeli allies with critical supplies during the Yom Kippur War; evacuating Americans from Iran in 1978; assisting with clean-up from the devastating Exxon Valdez oil spill; assisting Central American nations, Turkey, and Taiwan that have experienced devastating earthquakes; providing humanitarian aid around the globe after major natural disasters; and supporting Presidential travel around the world. This dual mission, to provide lethal force and vital humanitarian aid, makes Dover critical to America's use of both hard and soft power and has made it all the more important that every generation serving at Dover carry on the tradition of excellence.
This year, Dover's tradition of excellence and the entire Dover team have been recognized with the Commander in Chief's Award. What does it mean to be the best base in the Air Force? It means that the entire Dover team has found innovative ways to make the absolute most of the resources they have. They have not only saved the taxpayers money, they have also given the warfighter more capability.
They have also been unstinting in giving back to the local community and the larger Delaware community. The Dover team is not just the air men and women serving on the base. It is also their families, civilians working on base, the businesses that support base operations and life, the State and local government that support base needs, and the entire Delaware military community working together to give the State and the Nation the very best.
Let me give you some examples from the seven categories that were considered in the competition. Keep in mind that all of these accomplishments occurred in 1 year. They were only possible because the people at Dover, despite full-time, 365/24/7 operations in support of Iraq and Afghanistan, constantly challenged themselves to do more and to do it better.
First, improvements to the infrastructure of the base and the working environment were considered.
Dover opened a state-of-the-art, $77.5 million Air Freight Terminal that increased cargo capacity and efficiency through Dover by 50 percent. The base also invested $53 million in a major runway improvement project and another $3.5 million to repair 183,000 square feet of taxiway, improving both the efficiency and safety of airfield operations. After a close analysis of their budget, the Dover team found $32 million to use for base improvements, including a $5 million renovation of a squadron operations building, C-5 recapitalization, and projects needed for the C-17 squadron setup. Thoughtful planning allowed Dover to keep the bed down of a new C-17 squadron on schedule because base personnel proactively made $780,000 necessary basic infrastructure improvements. In addition, they installed solar lights on the runways and reinforced the taxiway so that C-17 aircrews could do navigation training and combat off-load training.
Dover also improved security operations by installing over 450 removable bollards on the base, including some at the gate in a ``Lazy S'' curve to prevent reverse entry threats. The bollard installation reduced the force protection squadron's time spent on contracting by 50 percent, freeing them for security missions. Security was further enhanced by the installation of a $450,000 crash-rated airfield gate, U.S. Transportation Command's No. 1 priority for force protection, and by the use of radiological detection equipment to screen over 91,000 trucks in 1 year alone. This valuable equipment, valued at $150,000, was obtained by base personnel at no cost. In addition, by renovating the Security Forces firing range at a cost of $4.8 million, the base was able to increase the range's capacity by 15 percent and save 1,000 manhours per year.
Second, improvements to the quality of life on the base were considered.
Dover has pioneered Air Mobility Command's privatization effort for base housing. Dover built 240 homes in 2007 and was named the 2007 Outstanding Housing Installation Team-Privatized Location for the Air Force. The $250 million housing project is the benchmark for the command and will ultimately increase the housing standards for 980 families when complete in 2009. Dover's Services Squadron was recognized as Air Mobility Command's 2007 Youth Program of the Year and the Outdoor Recreation Program earned the Air Force's 5-Star Program Award. Quality of life for airmen was further enhanced by finalizing the design of a $13 million, 144-room dormitory that exceeds command standards and will be a model for other bases.
Keeping the Dover team, including families, healthy is critical to a high quality of life. Dover is the only base in the command with 100 percent of its pharmacy technicians nationally certified. In addition, the base was first in the command and third in the Air Force for flu immunization rates, at over 99 percent.
Third, efforts to enhance the productivity of the workforce were considered.
Dover has taken the lead role in reducing the time needed for Isochronal, ISO, inspections and, as a result, was made the regional center for all east coast C-5 Isochronal inspections in July of 2007. This is the first such regional facility in the Air Force. Historically, an ISO inspection took up to 38 days to complete. The 436th Maintenance Team reviewed the entire process to increase velocity while maintaining quality. This led the team to one record-breaking effort in which an ISO inspection was completed in only 13.2 days. These initiatives were also a key reason the 436th Maintenance Squadron won the 2006 Air Force Maintenance Effectiveness Award.
In order to reduce the time planes are on the ground, the 436th Maintenance Squadron did a complete review of how they maintained ground equipment. As a result, they were able to reduce the steps each mechanic takes from 763 to 73, saving 29.7 minutes per inspection, while reducing wait time by 34 minutes. They also saved 63.7 minutes per inspection or 26.54 manhours per year and vacated 17,660 square feet of floor space to be designated for other use. The cellular work design they came up with is considered the benchmark for such designs in the command and is a model of how the Air Force Smart Operations for the 21st century initiative and use of Lean Six Sigma, a process improvement approach first used in the private sector, can make better use of existing resources.
The Dover Operations Group improved throughput for aircraft by creating the only C-5 one-stop/jet-side service system in the Air Force. The Required Flight Manual, Flight Information Publications, weapons and tools needed by an aircrew for a mission are delivered directly to the aircraft. This reduces travel time by 20 minutes, allowing a 12-percent reduction in the C-5 launch sequence and providing more duty days for the crews to complete their missions.
Dover was able to reduce the amount of time needed to overhaul and rebuild C-5 jet engines, TF39, by 12 days, going from 75 to 63 days. The process improvement also allowed two production crews to be reassigned to other sections, regained five critical manning positions, and saved 36 manpower positions and $3.8 million in operating costs. On the whole, by reducing wasted motion for support equipment and tools, the 436th Maintenance Group has saved 73.3 annual man-days and expedited engine repairs so that they are done 5 days faster than the original standard and freeing 1,944 square feet of floor space for other work.
Another key initiative was the effort to ensure that Basic Post Flight inspections be done within 10 hours of mission completion. This initiative was begun in 2005 by the Dover Maintenance Group Commander and brought completion time down to 6 hours, a 40-percent improvement. The complete process review improved Home Station Logistics Reliability rate by 40 percent and overtime man hours were reduced by 75 percent. Overall, this means the team saved 23,000 labor-hours and $1.168 million. The mission benefits included the following: a reduced number of tail swaps, increased number of aircraft ready for flight, reduced number of late take-offs, and dramatically improved efficiency in the launch sequence of events.
The Dover team also ensured a seamless transition for the new C-17 squadron, ensuring that Dover's first C-17 was able to fly its first combat mission within 36 days of arrival. In the squadron's first month, they had a 100-percent on-time departure rate and a 99-percent mission capable rate.
In addition, once investigators were done with the 2007 C-5 crash scene, Dover personnel took the initiative to save and recover parts. Their efforts ensured that 127 parts were recovered, inspected, and restocked into the Air Force supply system, saving $7 million.
Fourth, increases in customer satisfaction or improvements in customer service were considered.
Today, Dover's key mission, or customer service, is to support operations in Iraq and Afghanistan. Twenty-seven percent of the entire Department of Defense airlift requirement last year went from Dover. The 3rd and 9th Airlift Squadrons flew more than 8,000 hours, with more than 2,000 combat hours and 460 combat missions. The two squadrons combined airlifted 59.4 million pounds of cargo and more than 12,000 passengers.
Dover is the second busiest en route airfield in the Department of Defense. It supported 3,000 en route missions in 2007 with a 95-percent departure reliability rate.
In addition, Dover assisted America's diplomatic efforts and the State Department by supporting foreign military sales to 32 countries, handling 85 missions and 950 tons of cargo.
The Dover team also made sure that it provided the best possible services to military personnel and their families on base. Access to mental health care was increased by 35 percent, despite a 40-percent decrease in manning. This exceeded the command's goal for access by 20 percent. In order to keep basic operations functioning, the Communications Squadron answered 99 percent of their 2,700 assistance requests within 2 days. That is 4 percent better than the Air Force standard.
In an effort to improve safety and provide instantaneous responses to emergencies with existing resources, the Civil Engineer Fire Department teamed with the Medical Group to provide 24/7 ambulance service. The Medical Group Airmen who provide ambulance response are now co-located at the emergency call center at the base Fire Department.
Fifth, efforts to encourage bottom-to-top communication and team problem solving were considered.
Dover has been a true leader in implementing Air Force Smart Operations for the 21st century. The key to the success of this initiative to make operations more streamlined and ``lean'' has been clear communication and a team approach. In recognition of this excellence, Dover has hosted numerous training sessions for units from five major commands, Air Force senior leaders, and for the Royal Air Force. Dover instructors have trained 4,200 students in Basic Lean Awareness including a program at the First Term Airmen Center.
Dover is the first base in the command to have two fully qualified level-2 facilitators. These facilitators certified seven level-1 facilitators and trained another 20 level-1 students. They have successfully made operations more efficient in over 50 areas in just 1 year. In addition, Dover's trainers ensured that 210 future Ramstein Air Force Base and Charleston Air Force Base facilitators understood the basics of lean initiatives. These efforts won the Dover team praise from the Logistics Director at Air Mobility Command Headquarters.
Sixth, the promotion of unit cohesiveness and the recognition of outstanding individual effort was considered.
The Dover team won two Department of Defense, one Secretary of the Air Force, 12 Air Force, and 93 Air Mobility Command Awards in 2006. In addition, they won the 2007 U.S. Small Business Administration Award for the State of Delaware. One critical example of why these awards were won is in antiterrorism, where they won command honors for the ninth consecutive year for best
antiterrorism and force protection programs. Dover was able to obtain $1.2 million in Combating Terrorism Readiness Initiative Funds that it used to resolve installation vulnerabilities, resulting in winning the Department of Defense's Best Antiterrorism Operational Unit in 2006 and the Department of Defense's Best Antiterrorism Program Manager Awards for 2007. The Dover team won these awards by completing over 20 antiterrorism and force protection initiatives that created a hard target security signature. These efforts paid off by deterring Fort Dix terrorists from attacking Dover AFB. This event permeated Air Force culture and is commonly referred to as the ``Dover Effect.''
Seventh, the promotion of energy conservation and environmental safety, including compliance, remediation, and stewardship, was considered.
The maintenance squadron at Dover was able to dramatically improve the process for cleaning ground equipment while also making it more environmentally sound. Formerly all ground equipment had to be moved to a separate wash facility primarily used for aircraft. Through careful research, a completely self-contained wash system with zero environmental impact was selected, designed, and installed in the ground equipment facility. This decreased travel time from 190 hours to 12 hours a year, a 94-percent savings. This increased the capability and availability for ground equipment, alleviated contractual issues that had arisen with the old cleaning system, and reduced the chance for aircraft delays. The new process is environmentally friendly and captures, filters, and recycles all waste water.
Dover also received the 2006 Secretary of Defense Environmental Restoration Award for Best Environmental Restoration Program for its restoration of natural resources used to support the base's warfighting mission. Dover reached the Defense Department's environmental goals 4 to 8 years ahead of schedule. Activities at Dover Air Force Base which earned this award include, but are not limited to: obtaining regulator signatures on six Records of Decision for 39 sites in 6 months; achieving Response Complete status at 27 of Dover's 59 sites; opening up 54 acres of formerly restricted land for use in supporting the base's mission; and completing Remedial Designs and Work Plans for 17 sites in only 3 months.
In addition, Dover won the 2006 Air Force General Thomas D. White Environmental Award which recognizes the efforts of installations and individuals to improve environmental quality, restoration, pollution prevention, recycling, and conservation of natural and cultural resources. Dover is 6 years ahead of schedule in its environmental remediation program.
These are the areas that the selection committee looked at when it decided which base was the best in the Air Force this past year. It is obvious that in every area, the Dover team took seriously the challenge to improve base operations and the quality of life wherever possible. From the smallest process improvements to the largest investments in critical infrastructure, Dover personnel found ways to do more. The result is not just that they upheld the base's long tradition of excellence, they surpassed it. In so doing, they have truly given our Nation their best and have made me and every Delawarean proud. We have always known Dover is the best in the Air Force. It is time the rest of the Nation knew about your excellence.
Congratulations, Dover Air Force Base!
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Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, there has been a fair amount of discussion here on the floor today about what to do with respect…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, there has been a fair amount of discussion here on the floor today about what to do with respect to rising costs of gasoline and a discussion about what we should do in response to this runup of prices. I heard the Presiding Officer speak earlier today--I thought with passion and with wisdom--on an appropriate course of action. I wish to mention a few things that I think we ought to do.
No. 1, we should be investing tax dollars in basic research and development to make a reality the lithium ion battery that is going to provide power for a flex-fuel plug-in hybrid vehicle called the Chevrolet Volt over the next 24 months or so, a vehicle that will run for 40 miles on a charge of its battery and use auxiliary power on board the vehicle to raise fuel efficiency well beyond that, maybe as high as 70, 80 miles per gallon. That is what we ought to be doing, and we are.
Another thing we ought to be doing is using the Government's purchasing power to help commercialize the new technologies. Whether it is flex-fuel plug-in hybrids, whether it is very low emission diesels, whether it is fuel cell-powered vehicles, we should be using the Government's purchasing power to bring them to the marketplace. And we are doing that too. This year, there is a requirement that 70 percent of the cars, trucks, and vans the Federal Government purchases, both on the civilian side and on the military side, have to be advanced- technology vehicles.
That includes vehicles purchased by the Postal Service.
We also ought to be providing tax credits to encourage consumers to buy highly energy efficient hybrid vehicles, highly efficient, low- emission, diesel-powered vehicles when those are produced and when they come to the marketplace. And we are doing that. That is part of our law. We provide a tax credit for folks who buy highly energy efficient hybrids and very low emission diesels, a tax credit that is worth up to close to $3,500 per vehicle. When the Chevrolet Volt or other flex-fuel vehicles, plug-in hybrids come on the marketplace in the next couple of years, we should provide an even greater tax credit to encourage American consumers to purchase those.
Several years ago, we voted here in this Chamber to create a commission. We create a lot of commissions around here. But this was an infrastructure commission, a transportation infrastructure commission. It was part of our major 5-year, 6-year bill that we pass every so often on transportation projects, a lot of it roads, highways, and so forth, but transit is included in there too.
When we passed the last bill, several years ago we said we want to create this commission, and we want the commission to go out and look at our infrastructure needs, transportation infrastructure needs across the country, quantify those for us and tell us what you think it is going to cost to bring our roads, highways, bridges, and transit systems to a state of good repair, and tell us how you think we ought to pay for those improvements. That commission was formed, worked hard for a year or so, and then came back to report back to us earlier this year as to how bad the situation is and what it is going to cost to fix it. They came back and said: We need to spend, to bring us out of the 20th century and into the 21st century, something like $225 billion a year--$225 billion a year; I think that is what they suggested--over 50 years, over the next 50 years. They called for actually increasing the gasoline tax by I think a nickel a year for 5 years, 6 years, something like that.
We have seen suggested to us a number of ideas for providing for a holiday for the gasoline tax, to suspend collecting the gasoline tax in this country, maybe for the summer. Now we are hearing from people: Let's extend it not for 3 months over the summer but for 3 months beyond that--which, ironically, would take us through the election, just past the election.
Let's think about that. In a day and age when we know our roads, highways, bridges, and our transit systems are falling further and further out of a state of good repair, making our transportation system and our economy even less efficient, we know we are not raising enough money to begin to catch up with the backlog, much less to address the new needs. The notion of diminishing the revenues that are available to try to improve our transportation system suggests to me that we are focused more maybe on the election than we are on the needs of our country.
A friend of mine used to say: Leadership is staying out of step when everybody else is marching to the wrong tune. Leadership is staying out of step when everyone else is marching to the wrong tune.
I used to say, when I was Governor of Delaware: Things worth having, whether it is health care, whether it is education, whether it is transportation--roads, highways, bridges--if they are worth having, we ought to pay for them. If we are not willing to pay for them, we should not have as many of them.
I mentioned a few minutes ago how we are providing tax credits to encourage consumers in this country to buy more energy-efficient vehicles. Wonder of wonders, the big three are beginning to produce them. After years of building these behemoths and the gas guzzlers, Ford and Chrysler are actually displaying and engineering and selling vehicles that Americans ought to be buying. The quality is vastly improved over what it was 10 or 20 years ago. I will mention a couple of them.
GM sells hybrid vehicles, not just the big SUVs like the Tahoe and the Yukon but also midsized sedans like the Saturn Aura and the Chevrolet Malibu, both of which were actually ``Cars of the Year'' this year and last year. Ford has a number of hybrid products on the road as well, not just the Escape but another as well. Chrysler joins the parade this summer by launching the hybrid Dodge Durango and the hybrid Chrysler Aspen. I understand from a friend of mine who is driving the Chrysler Aspen that in the city it is getting about 22 miles a gallon and on the highway it is expected to get close to 30 miles a gallon. Is that where we want to be and need to be? No, but that is a huge difference over the vehicles it replaces. Chrysler is launching, this fall, in the 2009 model year, very low emission, highly energy efficient diesel-powered vehicles.
We are, through our Tax Code, encouraging Americans not just to buy Toyota Priuses and Hondas but to buy hybrids, low-emission diesels that are manufactured by Ford, Chrysler, and GM. They are making them and we ought to buy them, and in doing that we begin to reduce the demand for oil that threatens to engulf us.
I ride the train back and forth most days. I live in Delaware, and I go back and forth. As my colleague, the Presiding Officer, knows, I go back and forth almost every night to Delaware. A strange thing is going on with respect to passenger rail ridership in this country.
I used to serve on the Amtrak board when I was Governor of Delaware, and every year we would see ridership go up by a couple of percentage points. We would struggle, try to raise money out of the fare box to pay for the system and the expansion of the system. Well, the first quarter of this fiscal year, ridership at Amtrak is up 15 percent. Revenues are up by 15 percent. People are starting to realize that maybe it makes sense to get out of our cars, trucks, and vans and take the train or take transit. Transit ridership is up again this fiscal year more dramatically than it has been in some time.
Americans are beginning to literally buy homes in places that are closer to opportunities for transit--for rail, for bus, for subways, for the metro systems. As we have seen the drop in home prices across the country--in some cases, very dramatic--among the surprises, at least for me, is to see housing prices stable and in some cases actually going up in places where people can buy a home and live and get to work or wherever they need to go to shop without driving to get there.
I don't know how gullible we think the American voters are to suggest to them that we are going to have this holiday on gas taxes, Federal gas taxes, for 3 months or for 6 months, maybe to get us through the next election, and then when the elections are over we will go ahead and reinstate the gasoline tax to what it has been even though in doing that we might be depleting further the money available for transportation improvements. I don't know how foolish we think the American voters are. They are a lot smarter than that. They are a lot smarter, maybe, than we give them credit for being.
I think in this country people are crying out for leadership. They are calling out for Presidential leadership, whether it is from our side of the aisle or the Republican side. People want leaders who are willing to stay out of step when everybody else is marching to the wrong tune, and I would suggest that the wrong tune is to suspend the Federal gasoline tax and at the same time not replace the dollars that would otherwise go into the transportation trust fund to fix our dilapidated, our decaying transportation system. Voters in this country deserve better leadership from us. I am determined, I am committed to making sure we provide and pay for that.
Before I close, there are a lot of good ideas for things we ought to do. I mentioned, tongue in cheek, that we ought to provide more R&D investment for a new generation of lithium batteries for plug-in hybrid vehicles. I say, tongue in cheek, we ought to use the Government purchasing power to commercialize advanced technology vehicles. We are doing that. I said with tongue in cheek we ought to provide tax credits to encourage people to buy highly efficient hybrid vehicles and very low diesel-powered vehicles that are efficient. We are doing that.
There other things we need to do too. We need to invest in rail service. We can send from Washington, DC, to Boston, MA, a ton of freight by rail on 1
gallon of diesel fuel. I will say that again. We could send from Washington, DC, to Boston, MA, a ton of freight by rail on 1 gallon of diesel fuel. But we as a government choose not to invest in freight rail and, frankly, to invest very modestly in passenger rail. It is a highly energy-efficient way to move people and goods.
One of my colleagues spoke a little bit ago and talked about why, as has Senator Dorgan, at a time when gasoline prices and fuel prices are so high, when the cost of a barrel of oil is 120 bucks a barrel, we are buying oil and putting it in the Strategic Petroleum Reserve when we are almost up to 100 percent capacity. That is a good question. It is foolish for us to continue to buy as much oil as we are right now to further drive up prices. We should stop filling the Strategic Petroleum Reserve as long as prices are at this level. One of my colleagues raised the question of speculators. If you go back a year ago, almost a year ago from today, the cost of a barrel of oil was something akin to $60, $63 a barrel. The price today is about $53 more than that. We have seen an increase of probably 75 percent in the price of a barrel of oil from last year to this. As somebody who studied some economics when I was in school, I believe in the law of supply and demand. But the law of supply and demand is not driving up the price of a barrel of oil from roughly $65 a barrel a year ago to almost twice that today. Speculation is going on that I don't fully understand. Maybe others do, but I don't. But I know something beyond the law of supply and demand is driving these prices of oil through the roof.
The investigative committees in this Congress, along with the Government Accountability Office and the administration, need to be all over that. Find out what is causing it and how we can stop it. It is difficult for the Congress. We write a lot of laws. I don't know how we can repeal the law of supply and demand, but more than the law of supply and demand is in effect in driving up oil prices.
Some have said: Why don't we have a holiday for the gas tax for this summer or for 3 months or 6 months and replace that with some kind of windfall profit tax on the oil and gas industry. I would suggest, if we are going to take away some tax advantages enjoyed by the oil and gas industry, the smarter thing is for us to use the revenues that would be generated in that way to extend the soon-to-be-expiring tax credits for the production of electricity from wind, solar, geothermal. Those tax credits expire at the end of the year. Businesses, individuals who are thinking of putting in place systems, small and large, to provide for alternative energy need some certainty. They need to know what the Tax Code is going to be. The sooner the better. To be fiscally responsible, we can't extend the tax credits without paying for them. The extension of the tax credits reduces revenue to the Treasury and makes the deficit bigger. We need to pay for it. I would suggest, if we look carefully at some of the tax credits enjoyed by the oil and gas industry, we could probably find something there that is not fair or reasonable or productive. I suggest we use those revenues, not to offset the revenues that would be lost from suspending the Federal gasoline tax until after the election but to use those revenues to make sure we extend tax credits for renewable energy, wind, solar, geothermal, and so forth.
I will have a chance to come back later in the week and talk about this some more. Sometimes we underestimate the wisdom of the voters. I think it was Thomas Jefferson who said: If you tell the American people the truth, they won't make a mistake. I will do my dead level best to make sure, during the course of the debate on this notion of waiving the gasoline tax or having a holiday on the gasoline tax until after the election, I am going to make sure, I hope with a number of my colleagues, the American people understand the truth and the full picture and that they will make the right decision. Hopefully, we will too.
I yield the floor.
Mr. President, reserving the right to object. Mr. President, I will not take the time now to go into detail. I will wait until the Senator from Washington finishes her speech. I will say I have a…
Mr. President, reserving the right to object.
Mr. President, I will not take the time now to go into detail. I will wait until the Senator from Washington finishes her speech.
I will say I have a personal involvement with this issue. My sister has breast cancer. My sister-in-law has breast cancer. My most cherished person in the world besides my wife and children and grandchildren died of breast cancer. She was a breast cancer nurse specialist. I understand the disease. We spend more on breast cancer research than any other cancer in this country today. We spend $100 million on environmental causes related to breast cancer research.
I don't object to us spending money on breast cancer research. I object to us making the decisions about what the scientists know we should do versus what the politicians want us to do. So I will spend some time after the Senator from Washington State speaks outlining in detail my opposition to putting one cancer ahead of the other 70, No. 1; and one disease that--specifically, we are going to put one specific disease and one ideology of a specific disease ahead of all of the others, and I will outline that in detail.
On the basis of that, I will object.
I would like to ask the majority leader a question. Are you aware of the thousands of studies that have already been published--
Are you aware of the thousands of studies that have already been written on this subject?
Mr. President, I appreciate the majority leader's response to my question. The reason is because the policy is wrong. We passed the NIH Reform Act just to eliminate this sort of issue because what we know is, out of the 2,037 diseases, we don't know which one to fund properly. We don't know which one to spend the most money on, but peer-reviewed science does. So what we have decided is, because we have a very effective lobbying group on this because it does impact hundreds of thousands of women, we are going to step right back in the middle of the NIH reform and say we didn't need it.
So the policy of us directing spending on research when we don't have the knowledge base to know that is the right thing to do--and the researchers agree with this, that we don't have the knowledge--in the context of all of the other 2,037 diseases, I will object to moving forward on this because the policy is wrong. It is not about debating it. I am happy to debate it all you want. But the policy is wrong.
Who says that the women who died of breast cancer this year are more important than the same number of people who died from lung cancer that is not related to smoking? Are we going to say that? Should we tell the NIH everything they should do, every amount of money, every disease we should decide, based on the effective lobbying of people who are absolutely affected--there is no question about that--but should we make that decision? The answer is no, we shouldn't. We should let the experts, not the Senators, not the Representatives, but the scientific experts make those decisions. We have given that charge to the NIH. That is what we ought to do. They would more sooner come to a cure and solve the problem than with us micromanaging the NIH.
With that, I object.
Mr. President, there is $38 billion worth of fraud in Medicaid. We are on an unsustainable course as a nation. We have $74 trillion worth of unfunded liabilities. When we talk about controlling spending and earmarks, we always hear it is a mandatory program.
Finally, not all of what the administration has done do I absolutely agree with but on key points I do. These rules will make a difference. If we are interested in fraud, let's write the regulations to get out the fraud. That hasn't been the offer. All we are willing to do as a body is say to the administration you have ideas that will get rid of $42 billion worth of fraud over 5 years, but we don't like it because we are feeling pressure from the State Medicaid directors, when we know States game Medicaid. A great example: There is nothing in this to stop any Medicaid Program from taking a child from school to the doctor, but it does stop the 500-some-odd million dollars being spent on transporting schoolchildren back and forth to school who don't have a medical appointment. So what we have is a system that has been gamed. We have allowed it.
Now the administration put something forward which we don't like and which we ought to negotiate with them to change, rather than saying you are not going to do any of it. The fact is the unfunded liabilities associated with the Medicaid Program are about $12 trillion. We are going to do something--just forget it.
I applaud the administration for making an effort to try to fix some of this. But to say you cannot do any of it, when some of it is very badly needed, is wrong. So unfortunately, Mr. Leader, I have to object again.
I am objecting not solely for myself. I am happy to work on trying to put together a proposal with the administration that would make a difference and then bring it to the floor.
Two weeks.
May I inquire how much longer the Senator is going to be?
Mr. President, I ask unanimous consent that I be recognized following the Senator from Washington.
Mr. President, I wish to spend a few minutes answering the question as to why would one Senator, in the light of all the other Senators who have cosponsored this bill, stand and block a bill that 60 some Senators want to see passed? I think it is a great time for us to define what is wrong in our country today.
What is wrong is we think about the next election far off and more often than we think about the next generation. I want us to cure breast cancer as badly as anybody else. The point Senator Reid did not tell you is we are already spending $100 million on this very subject, the environmental connection to breast cancer. We are also spending more on breast cancer research than we are any other cancer, and yet it is not the leading cause of death.
We are going to have 160,000 people die this year from lung cancer, the
same number who are going to die from breast cancer, 40,000 of which have no relationship to smoking, but you do not see anybody on the floor telling the NIH to do a study between the environmental effects and nonsmoking-related lung cancer.
The reason it is important is a little example of penicillin. It is a great example. We stumbled onto that through the science of microbiology, but we would never have gotten there if we had told the NIH: Study scarlet fever and find a cure; study strep tonsillitis and find a cure; study syphilis and find a cure; study gonorrhea, and we had gone four or five different ways. The point I am making is basic research is what we ought to be doing.
In the mid-nineties, I was one of the strong advocates for increasing the size of the NIH budget. It ought to be twice what it is today. The reason it is not $60 billion a year instead of $29 billion is because we will not fix the waste in Medicaid of $42 billion over 5 years, we will not fix the $90 billion in fraud in Medicare, we will not fix the $8 billion that was paid out by the Pentagon for performance bonuses that nobody earned last year, we will not fix the $50 billion that is associated with waste within the Pentagon. Nobody will fix it. We had one wheelchair that was sold multiple times for $5 million to Medicare in Florida alone--one wheelchair. We will not do the hard work that creates the long-term best interest for our country, but we will certainly respond to--granted, very real issues, but in an inappropriate way that does not get us where we want to go.
The NIH budget spends more on breast cancer research than any other research. We are going to spend $100 million on research on the link between breast cancer and the environment. Plus, the Defense Department is going to spend another $138 million, and the Centers for Disease Control and Prevention combined is greater than $1 billion. There is not any other disease we do that on right now. Yet we are going to tell them to do more of the same they are already doing, and we are never going to think about the other people with other diseases, the other 2,037 diseases that are not as well organized and have nowhere close to the same investment at NIH.
The point is, the hardcore, heavy-duty, peer-reviewed science ought to guide us, not emotion, not my poor cousin Sharon Wetz who died 6, 7 years ago of breast cancer, not my sister who has breast cancer, not my sister-in-law who has breast cancer. What we ought to be doing is what is in the best overall good for this country as a whole. And if we need to spend more money on breast cancer, then the way to do that is to get rid of some of the waste and double NIH, but any dollar we spend on breast cancer is a dollar we are not going to spend on colon cancer, it is a dollar we are not going to spend on thyroid cancer, it is a dollar we are not going to spend on lymphoma, because we are going to take it away.
In this bill, it says this should not interfere with peer-reviewed research. If that is the case, then this will never get appropriated. So either this bill is about doing research or it is about a press event for a politician. I will tell you, I think it is the latter.
In 2006, we modernized the NIH to keep exactly this thing from not happening. We took away all the silos. We gave the Director the power and the authority to start making great decisions based on what the raw science was telling him so when we invest in raw science, we magnify the potential benefits that come from it. Now we are going to go back and say we are going to start picking diseases; we are going to start managing it. Why do we need a staff at NIH? Let's let the Senate pick every disease and how much we are going to spend on every one of them; we obviously are qualified.
We are not qualified.
I find it amazing--I do not doubt Senator Reid's story, but as a surgical resident in 1984, I was doing cystoscopies and diagnosing interstitial cystitis. We didn't think it was psychosomatic. We knew it was a real disease 3 years before Senator Reid came to the Senate.
The question politicians ought to be asking is what is NIH doing? Where is the oversight on what they are doing? Find out what they are doing. How does their work rank in comparison to the other disease initiatives at NIH? We have not had a hearing on that issue.
The HELP Committee has had hearings on multiple speciality disease bills. So we are back into answering a real need, but maybe it is not the best priority. What if we spent the same money we are going to spend on this disease and we got a breakthrough that cured all cancers, but because we decided we were going to reconnect with one specific aspect of one potential risk for one cancer, we missed it?
The wisdom of this body has to be to think in the big picture and in the long term. I have diagnosed breast cancer over 500 times in my medical practice. It is a gut-wrenching, life-changing disease. Fortunately, we have had great improvements in it and our diagnostic skills are getting better, especially with digital MRI on breast examination. Early diagnosis has an impact, but what we do and how we do it is going to matter.
I will put forward that Senator Reid can bring this bill to the floor, and if he brings it and we take the time--and I am more than happy to take 4 or 5 days to talk about how we should work at NIH, and I am happy to do that--and the bill will pass, but then are we going to do the same thing with every other disease the HELP Committee brought out? There are about eight other bills just like this bill. We are going to tell NIH: You have to spend this money here, you have to do it here. Regardless of what the raw molecular science says, regardless of what the peer-reviewed literature says, we are going to tell them what to do. Consequently, we are going to delay scientific discovery.
My opposition is not that I don't want to cure breast cancer. My opposition is not that I don't want us to find a cure. I want to find a cure for all of them. I am a two-time cancer survivor. I would love to prevent colon cancer. I don't like walking around with half a colon. There are a lot of consequences to it. I don't like having melanoma and having half my neck taken away. I don't like it, but I don't want colon cancer to displace possible cures for everybody and in the best interest of this country.
Will I object? Every time I come to the floor I will object because I think the ultimate underlying policy is wrong. The way we solve breast cancer in this country is double the NIH funding and let science drive the way we need to go. The way we double NIH funding is get rid of the $300 billion waste, fraud, and abuse that is in the discretionary budget every year which most of us don't have the courage to attack because it might gore somebody's ox.
To those who have breast cancer, as a physician and somebody who has been through cancer, I know your fear. I have been there. I have experienced the questions. I have experienced the chemotherapy. I have experienced the losing of 30 or 40 pounds. I have experienced the nausea and vomiting that is persistent with you for 4 or 6 months. Most of all, what I have experienced is, we have a great health care system and great research in this country that is saving a lot of lives. If we will get our hands out of it as politicians, they will be able to save a whole lot more lives than when we put our hands into it and tell them what they must and shall do.
I thank the good Lord for the time he has given me. I am 5 years out this month from colon cancer. There is no guarantee, but while I am alive, I am going to do things that are in the best long-term interest of our research for health care, that give us the most life for the dollars that we invest. If that is pleasing politically, great. If it is displeasing politically, it is OK too. What is important is we are good stewards--not just with the money but with the direction to allow science to lead us to cures.
I yield the floor.
Mr. President, I suggest the absence of a quorum.
Mr. President, I know a couple of my colleagues will be coming to the floor, specifically Senator Cantwell will be coming to the floor, to speak about some energy issues in a moment. When she does, I…
Mr. President, I know a couple of my colleagues will be coming to the floor, specifically Senator Cantwell will be coming to the floor, to speak about some energy issues in a moment. When she does, I will relinquish the floor.
I wanted to make a couple of comments. I listened with interest to my colleague from South Dakota making comments about the energy situation. We agree on much of what he has said and disagree on perhaps some amount of it. But renewable fuels, ethanol, providing renewable energy, all of that is very important.
The area where we would perhaps not agree is ANWR, which in my judgment ought to be a last resort rather than a first resort. But I might say to my colleague from South Dakota that particularly with respect to the Outer Continental Shelf, if you measure where oil exists, the best resources and reserves of oil and gas on the Outer Continental Shelf first are in the Gulf of Mexico; second, off California; third, off Alaska.
One of the things we have recently done on a bipartisan basis in this Congress was to pass something called Lease 181, which opened up a portion of the Gulf of Mexico for development of oil and gas. I was one of the four Senators who led the effort on that. I was pleased to do that because we are now
producing and are going to be producing more oil and more natural gas from one of the most productive areas in the eastern Gulf of Mexico. So production is certainly one of the areas we ought to be concerned about, as the Senator indicated. Production, conservation, efficiency, and renewables, all of these are important elements of an energy policy.
No one has ever accused this Congress of speeding. I understand that. This system is not established to be necessarily efficient. It has checks and balances, which makes it very hard to get things done. But there is an urgency at this point, an urgency for families, for farmers, for truckers, yes, for businesses and airlines with respect to what is happening with the price of gasoline.
There are a lot of reasons for all of this, and I am not here to try to ascribe blame, I am here to say: Let's fix some of these things. I am going to offer an amendment, by the way, to the FAA reauthorization bill, that deals with something that as of today I note that 67 Members of the Senate have agreed to.
Some while ago, I introduced the notion of prohibiting the further movement of oil underground into the Strategic Petroleum Reserve. I have introduced legislation on that matter. Long ago I introduced it, had discussions with the Energy Committee about it. I had 51 Senators sign a letter to the President to say: Stop putting oil underground when the price of oil is $115, $120 a barrel. Stop taking oil out of supply and putting it underground into the Strategic Petroleum Reserve. It is already 97 percent full. Why would we take oil out of supply to put upward pressure on prices, on both oil and gasoline, at a time when oil is at a record high? That makes no sense. Let us use at least some reservoir of common sense. Fifty-one Members of the Senate signed my legislation, signed the letter to the President in support of my legislation.
Today, 16 members of the minority signed a letter to the President. They have also introduced legislation. So 51 and 16, 67 members agreed, that includes the person who spoke on the floor today. Senator McCain has called for the identical policy. That is 67. That is veto proof. If 67 Members of this Senate say to this President and this administration: Stop sticking oil under the ground, nearly 70,000 barrels of sweet light crude every day--that is the most valuable subset of oil. We have had testimony before the Energy Committee that suggests it has put as much as a 10-percent increase on the price of a barrel of oil or a gallon of gasoline. And while families and farmers and truckers and airlines and all of these businesses are trying to figure out how on Earth do we pay this fuel bill, and while we see the damage and the dislocation of this country's economy because of it, this administration merrily goes along sticking oil underground. It is unbelievable. At the very least you ought to expect some common sense here.
Now, what has gotten us into this mess? Well, let me describe what is happening with Saudi Arabia. And if ever we should wonder about the danger of being overly dependent on oil from off this country's shores, this is the chart that shows why.
The Saudis, who have the largest reserve of oil in the world by far, have reduced their production by 800,000 barrels a day since 2005. They have reduced production by 800,000 barrels a day. That is part of the problem. So we sit here in the United States with a prodigious need for energy to make this economy work. And, by the way, as an aside, I have said before: We stick straws in this planet and suck oil out of the planet. We suck out 86 million barrels of oil a day. One-fourth of it is required here in the United States of America. We use one-fourth of everything that is produced every day in this world, on this planet. One-fourth of that oil is used here in the United States. We have an enormous appetite. So we need to conserve; we need more efficiency in the use of energy. We have done some things in that area. The CAFE standards increased fuel efficiency by 10 miles per gallon over 10 years. We have done some things in a range of these areas, but we are far too dependent on foreign sources of oil. When the Saudis decide they are going to cut back oil production by 800,000 barrels a day, and they say to us: Oh, by the way, with our strategic relationship, we want you to sell us precision munitions, it seems to me we ought to not be arming to the teeth the Middle East.
But aside from that, strategic partnerships run both ways. You cut your oil production by 800,000 barrels over 2 years; and by the way, we would like some strategic weapons for our strategic need in the region--it does not seem to me that is the way a partnership should work.
But let me describe with a couple of charts what is happening with this strategic reserve. Here we see that oil prices have nearly doubled in 1 year. There is no natural reason for that. The supply-demand relationship in the marketplace does not justify this. The marketplace simply is not working.
We have these people who shake the cymbals and worship at the altar of the marketplace. By the marketplace, that is the greatest allocation of goods and services known to mankind. Well, I believe it is a great allocator of goods and services. I used to teach economics in college briefly, and I understand the marketplace. But the marketplace needs a referee from time to time because sometimes the marketplace does not work; the arteries get clogged, it does not work.
So here is what has happened in a year. Oil prices nearly doubled in a year. Now, my colleagues have used quotes, and I have used many quotes. I am going to use one by Mr. Gheit, because Mr. Gheit said it all. He said: There is no shortage of oil.
Who is Mr. Gheit? He has worked for 30 years for Oppenheimer and Company, the top energy analyst for Oppenheimer. He said:
There is no shortage of oil. I am absolutely convinced that
oil prices shouldn't be a dime above $55 a barrel.
Oil speculators, including the largest financial institutions in the world--he said:
I call it the world's largest gambling hall. It is open 24/
7. Unfortunately it is totally unregulated. This is like a
highway with no cops and no speed limit and everybody is
going 120 miles per hour.
What is he talking about? He is talking about hedge funds neck deep in the futures market. He is talking about investment banks neck deep in the futures market. Is this because hedge funds and investment banks want to wallow in oil? Do they want to bathe in oil? Do they want to take it home and store it in their garage? They do not want to see oil. They want to speculate and make money.
They have made a lot of money. People who never had it are buying things from people who never will get it. So they are making money on both sides of the transaction.
Now, what does that do when you have this kind of unbelievable speculation? It causes the runup of prices in a very dramatic way. There is a trader named Andrew Hall. I would not know him from a cord of wood; never met him, never will, I suppose. He earned $250 million on the commodity market over the past 5 years, one-quarter of a billion dollars. He was betting. All of this is betting. He is betting long term, short term. He is not somebody who takes oil as a commodity; he just bets.
There are a couple of things we ought to do. I will be very brief. One, in order to be engaged in the futures market, as I have said before, if you want to speculate in the commodities future market for oil, for example, you only require 5 to 7 percent down; only 5 to 7 percent margin. You can control $100,000 worth of oil with $5,000 to $7,000 of your own money.
If you wanted to wager, that is a good way to do it, I suppose. If you want to do it in the stock market, to do this on margin, it takes 50 percent to buy in the stock market. But if you go to the commodities market, you can speculate to your little heart's content with 5 to 7 percent. That makes no sense. It ought to be 25 percent, in my judgment, or perhaps if you want to buy oil futures, you ought to take possession of the oil.
But one way or another, when you have a market that is not working, and you have speculation running out of control, I think there is an obligation on the part of this Congress to address that. Because that speculation is driving up the price of oil, and driving the price of gasoline well up beyond where the fundamentals would suggest. It injures the American drivers, consumers,
business, and it injures this country's economy.
The second point I indicated I was going to make is on the Strategic Petroleum Reserve. This chart shows what the Strategic Petroleum Reserve looks like. These are holes in the ground, and we shove oil down those holes. We save it for a rainy day; it's 97 percent filled at this point. We are putting just under 70,000 barrels a day every day underground right now.
Sixty-seven Members of the Senate as of today have expressed themselves publicly. They think it is the wrong thing to do. They think this administration is making a mistake and they ought to stop it. Now, why do people say that? Because they know if we stop taking that 70,000 barrels of sweet light crude and sticking it underground, it will be part of the inventory out there, and they know that would put downward pressure on gas prices and downward pressure on oil prices. That is why 67 people have come to this conclusion.
The question is: What do we do to try to stop this? Well, when you put oil underground, you drive up to the gas station, you see the effects of this kind of policy. The question is: What do we do to put some downward pressure on prices? Stop filling the Strategic Petroleum Reserve and stop it now.
There is a bill on the floor of the Senate, the FAA reauthorization bill. I am part of the committee that has produced this bill. We need to modernize the system for aviation in this country. It is desperately in need of modernization. It is going to cost some money to do that, but we do not have much choice. We have had, I think, four airlines declare bankruptcy in the last month and a half.
A substantial part of it, announced by every one of those airlines, had to do with the price of jet fuel.
I am going to offer, as an amendment on this bill, legislation that would call a halt to filling the Strategic Reserve. To stop taking oil and sticking it underground, and put some downward pressure on jet fuel prices, downward pressure on gasoline prices. Some say this doesn't fit on this bill. It does. Fuel prices are why three or four airlines have gone bankrupt in the last month and a half.
I will be over here tomorrow speaking about this topic because I believe strongly that we should do something about this issue.
My colleague Senator Byrd used to talk about Aesop's fly. He described the fable Aesop's fly who was sitting on the axle of a chariot who would observe: My, what dust I do raise. There are some here in the Congress who have that notion, that if you just make a little bit of noise and have a little bit of activity, you can claim a lot of success. The fact is, that is not what the American people want this time. They want this Congress to understand the urgency, understand the problem, understand what it is doing to this country's families, and do something about it. When you have speculation that runs out of control, this Congress has a responsibility to do something. We can't have someone else do it, we can't wait for somebody else. It won't get done. If we don't do it, it won't happen.
These are two steps I believe we ought to take: No. 1, increase the margin requirement and stop the speculation in the futures market to begin to put downward pressure on prices; No. 2, stop putting oil underground when prices are at a record high and put downward pressure on prices. If we did both of those things, I am convinced we would bring oil and gas prices back down and we would provide some relief to the American driver and to the American economy.
I yield the floor and suggest the absence of a quorum.
Madam President, I call up my amendment. Mr. President, as I was indicating, I do not think most of our colleagues--they pick on certain subjects within aviation that are of interest that have hot…
Madam President, I call up my amendment.
Mr. President, as I was indicating, I do not think most of our colleagues--they pick on certain subjects within aviation that are of interest that have hot buttons to them--look at the general situation of where the U.S. commercial aviation industry is, how bad its situation is, and I think it is time to tell the truth about that before we begin the debate on this bill.
After posting nearly $35 billion in cumulative net losses from 2001 through 2005, over the past 2 years, American commercial air carriers were able to recover financially for a brief period from the effects of September 11's grounding and subsequent adjustments. That is understandable.
Domestic airlines earned an estimated net profit of roughly $3.8 billion last year, more than twice the $1.7 billion net profits they achieved in 2006. That would appear to be going in the right direction. This year, however, marks a turning point, which I fear will be a sustained downturn in the industry's long-term outlook. Within the past week alone, we saw the Nation's third largest carrier--Delta--announce a first quarter loss of $6.4 billion. On that same day, the Nation's fifth largest airline--Northwest Airlines--posted a quarterly loss of $4.1 billion.
This month, we witnessed four of our airlines--Frontier Airlines, Aloha Airlines, ATA Airlines, and Skybus Airlines--forced to declare bankruptcy. Four airlines collapse in 1 month, and two airlines announce a combined loss of $10.5 billion in one single quarter. I think this underscores the dangerous direction in which I believe our aviation industry is now truly heading.
It is clear that in 2008 this industry is moving through what could be one of the most tumultuous periods it has ever experienced in our history. The recent window of profitability that commercial aviation experienced now seems to have closed. A worrying question for all of us--and for the future of our economy--is whether these losses will come to characterize its long-term financial outlook. I fear it will.
The challenges confronting our Nation's aviation market have now sharply affected a variety of consumers and stakeholders. Airline companies have been posting multibillion dollar losses this quarter alone. Tired and frustrated passengers are being caught up in the thousands of flights that have been canceled or delayed due to a number of things, including safety issues. A quarter of the airline industry's entire workforce have lost their jobs since the year 2000. I will repeat that: One quarter of the airline industry's entire workforce have lost their jobs since 2000. The air traffic control system remains outdated. As I indicated, we are trying to catch up with Mongolia. And management problems continue to beset the industry's overseer, the Federal Aviation Administration.
Compounding all of these difficulties is the reality that the industry is operating against a backdrop of a weaker American economy and general turmoil in global credit markets. Aside from all this, however, there remains one factor that has done more to change the face of the commercial aviation sector than any other; that is; the escalating cost of its lifeblood. We call it the price of oil.
To illustrate this dramatic spike in costs, it is worth recalling that back in 2000 the price of oil stood at $30 a barrel. Recently, oil prices have been approaching $120 a barrel. But this does not necessarily reflect the true cost to the airlines, as there is a difference between the price of oil and the price of jet fuel, what the industry refers to as the ``crack spread.'' This means that, for example, on April 18, 2008, when oil was trading at nearly $116 a barrel, the price of jet fuel per barrel was trading at nearly $144-- $116 for a barrel of oil becomes $144 for airplanes.
Such a dramatic increase in the industry's largest single cost clearly illustrates the extent of the problem it must absorb. With oil prices alone having risen 75 percent in the past year, it is somewhat unsurprising that the move toward further consolidation is gaining in speed.
It seems increasingly inevitable that the Delta-Northwest merger proposal will unleash a wave--a further wave--of industry consolidation. I note that various airlines have been considering a number of possible pairings for some time now.
In September 2005, US Airways and America West Airlines merged. In 2007, US Airways pursued an unsuccessful bid for Delta, and Midwest Airlines was purchased jointly by Texas Pacific Group and Northwest.
Numerous reports also indicate that further consolidation between United Airlines and Continental Airlines is likely--we will see--to happen as a consequence of the move by Delta and Northwest to consolidate--the domino theory.
With the emphasis on pursuing market share prior to 9/11, the big air carriers are now focused on route and flight profitability and are less willing to fly half-empty planes to keep their nationwide networks competitive. In an effort to improve their financial standings and compete with smaller carriers, many legacy airlines--commercial airlines--have aggressively sought to cut costs by reducing labor expenditures and by decreasing capacity through cuts to flight frequency, use of smaller aircraft, or the elimination of service altogether to some communities.
The major U.S. carriers have shown much more capacity discipline over the past few years and have retired, to their credit, many older, inefficient aircraft. Available seat miles--which is a term of art: a measure of capacity--increased only 0.3 percent in 2006, down from a 3.3-percent increase in 2005, and an 8.7-percent increase in 2004. As a result, load factors have increased by more than 10 percent since 2000, bringing in more revenue per operation. Profitability. Statistics from the Air Transport Association show that the legacy carriers' combined fleet was 2,860 aircraft in 2006, an 18-percent reduction from almost 3,500 planes at the end of 2000. So it has gone from 3,500 planes in 2000 to 2,800 aircraft in 2006. That is clearly a trend.
In West Virginia, aviation represents about $3.4 billion of the State's gross domestic product. To us, that is a rather huge figure. It employs over 50,000 people in our State. So the State has a direct interest in the impact any consolidation within the industry may have on services. I know the Presiding Officer knows that feeling.
I have said before that while I am not unilaterally opposed to consolidation, I do believe every transaction has to be considered on its own merits. With regard to Delta-Northwest as a merger, I believe it is critical that the Federal agencies examine the fine details of the merger thoroughly before approving it.
Now, this is of particular concern to me because Delta and Northwest provide critical air services to my State of West Virginia that allow businesses in our State to be connected with the rest of the world. I have said in the past, and I reiterate here today, that air services to small communities in my State and across the country depend on network carriers that use hub-and-spoke operations. There are no other sustainable options available to us. None. We have very few private aircraft, and obviously they are not available for commercial use. Low- cost carriers are not going to serve West Virginia's communities because we do not have the volume of passengers to work with their business models.
My State needs healthy network carriers if we are to attract new air services. At present, low-cost carriers are not going to fill the service void in our markets. It disturbs me, then, that since March 13 of this year alone, American air carriers have exited from 86 routes throughout the country, my guess would be all of them rural. I fear these airlines plan to exit many other routes in the future.
It was to ensure West Virginians continued access to adequate air services that I helped to create and expand the Small Community Air Service Development Program and the Essential Air Service Program. Both of these arrangements provide a Federal subsidy for air carriers to operate out of very rural areas. From my perspective, an adequate air service in West Virginia is not just a convenience but it is a flatout economic necessity for our survival.
The airline industry is not only about the viability of the companies that it comprises. It is important that we not forget the increasingly large number of American passengers who underwrite the industry by consuming its services each year. Passenger traffic demand has now surpassed pre-9/11 levels, with total passenger enplanements of 745 million in 2006, nearly 12 percent higher than the 666 million passengers who enplaned in 2000. The FAA's most recent forecast estimates passenger enplanements will grow to 794 million in 2008.
We are all aware and have probably often experienced ourselves the delays and the cancellations that seem to be a growing feature of this industry. Air carriers and their passengers continue to be plagued by severe weather problems--which seem more than normal each year--and an air traffic control system that lacks the necessary capacity to handle demand effectively. That is why, when we talk about building an air traffic control system, which is at
least up to Mongolia--and as I said this morning, that is a little bit of an exaggeration because they had no air traffic, and so they started with what we want to move to. They started with what they should have started with, and that is digital GPS.
These conditions produced near gridlock at several key gateway airports throughout the country this past summer which almost matched the record delays reached in the summer of 2000. Congestion and delay problems cost the airlines and passengers billions of dollars each year in lost productivity, canceled flights, and, obviously, fuel expenses.
The severe congestion and delay problems that continue to plague air carriers and their passengers further exacerbate the high cost, therefore, of fuel. Inclement weather, an out-of-date air traffic control system, and management problems keep planes in the sky longer, which only increases fuel-burn. Due to these conditions, only 69 percent of reported commercial airline operations arrived at their destination on time during June and July of 2007.
I am pleased we have been able to work with the FAA on several efforts currently underway to address these problems, including a continuous focus on expanding infrastructure and adopting operational procedures, such as the implementation of reduced separation requirements and programs such as this fascinating acronym, the Area Navigation and Required Navigation Performance program, that permit more precise navigation of aircraft. But, you see, that is very difficult to do with x ray, with ground radio. That is why we need an air traffic control system which is modern, as every other modern country in the world has. Furthermore, since many of these delays originate in the New York City airspace, the FAA has committed itself to taking a number of specific steps to relieve congestion there--and I applaud them for that--including airspace redesign and the opening of military airspace to create additional capacity during particularly congested times.
All of these efforts are a part of a longer term endeavor to solve these problems by modernizing the entire air transportation system through the implementation of the Next Generation Air Transportation System, the system I have been talking about a good deal. I am confident we can continue to pursue a workable strategy to increase the capacity of the National Airspace System to keep pace with projected growth and demand for air travel while ensuring that we continue to operate the world's safest aviation system. But then again, you always have to look underneath the figures.
The pending Delta-Northwest merger could represent an absolute watershed moment in aviation industry history which would have a dramatic and wide-ranging impact on the industry, passengers, employees, and our national economy. This merger is emblematic of the aviation sector's future, in my judgment. We must acknowledge that a greater degree of consolidation is becoming simply unavoidable due to pressing economic factors, and we have no excuse to not manage these changes responsibly.
I will always remain a fierce defender of West Virginia's right to adequate and reliable air services. That is why I went there in the first place. That is why I am there. I fight for fairness, and we don't have it in aviation, and I fear losing more of it. Even in these new challenging times for the sector, I will continue to ensure that my State is not adversely affected by this consolidation or any consolidation.
Finally, I am concerned that even when the aviation industry did return to profitability over the past 2 years, services in my State did not dramatically improve or expand. They weren't investing. Now that the sector looks to be heading toward a more decidedly bleak future over a prolonged period, our efforts need to be redoubled so as to ensure crucial air services to small and rural communities everywhere are rightfully defended.
Mr. President, I yield the floor and note the absence of a quorum.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, earlier this month, we honored the 40th anniversary of the death of Dr. Martin Luther King, Jr.…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, earlier this month, we honored the 40th anniversary of the death of Dr. Martin Luther King, Jr. Each year on this anniversary we get together and speak glowingly of Dr. King's life and work. These words are important; make no mistake. But even more important than honoring Dr. King with words is honoring Dr. King with action. Today, we have the opportunity to do that by passing the Fair Pay Restoration Act.
The right to equal pay for equal work is a fundamental right. Indeed, Dr. King was in Memphis on that fateful day in April 1968 to protest pay discrimination against African-American Memphis sanitation workers. We hope to have this legislation on the floor in the early part of next week. It involves overturning the Ledbetter case, a Supreme Court decision of recent times.
Forty years later, we are still fighting the same fight as Dr. King. We are still trying to empower workers to assert their civil rights.
Over the years, I have been proud to stand with the majority of the Congress for justice and fairness by passing strong bipartisan laws against pay discrimination. In 1963, we passed the Equal Pay Act. We followed that in 1964 with the landmark Civil Rights Act. Then we passed the Age Discrimination Act, then the Americans With Disabilities Act. Most recently, we passed the Civil Rights Act of 1991. All these laws protected workers from pay discrimination and have made our country a stronger, better, and fairer land.
These laws are just words on a page of a lawbook if workers can't get into court when employers break the law. To bring these words to life, we must today continue the work Dr. King started. This effort is necessary because last May the Supreme Court undermined the fundamental protections against pay discrimination. In the Ledbetter decision, the Court imposed serious obstacles in the path of workers seeking to enforce their rights.
Ledbetter was a textbook case of pay discrimination. Lilly Ledbetter, whom I have had the honor to meet, was one of a few women supervisors at a Goodyear Tire and Rubber Company plant in Gadsen, AL. She worked at the plant for almost two decades, consistently demonstrating that a woman can do a job traditionally done by men. She put up with teasing and taunting from her mail coworkers, but she persevered and consistently gave the company a fair day's work for what she thought was a fair day's pay. What she didn't know, however, was that Goodyear wasn't living up to its end of the bargain.
For almost two decades, the company used discriminatory evaluations to pay her less than her male colleagues who performed exactly the same work. The jury saw the injustice in Goodyear's treatment of Ms. Ledbetter and awarded her full damages. But five members of the Supreme Court ignored that injustice and held that Ms. Ledbetter was entitled to nothing at all--nothing at all--saying she was too late in filing her claim.
Under the rule in the Ledbetter case, Ms. Ledbetter would have had to file her claim within a few months of when Goodyear first started discriminating against her. Never mind that Ms. Ledbetter didn't know about the discrimination when it first began. Never mind that she had no means to learn of the discrimination because Goodyear kept salary information confidential. Never mind that Goodyear's discrimination against Ms. Ledbetter continued each and every time it gave her a smaller paycheck than it gave her male colleagues. The rule imposed by the Supreme Court reversed decades of precedent in the courts of appeal, it overturned the policy of the EEOC under Democratic and Republican administrations, and it upset the Nation's accepted definition of what is right.
This chart shows that the paycheck accrual rule was the law of the land prior to Ledbetter. In all these areas, these are the courts of appeal decisions that would have helped Ms. Ledbetter to recover. These areas are the areas where the EEOC demonstrates the paycheck accrual rule under EEOC policy, as well as these others. This small area in here shows what is now known in the Supreme Court decision as the Ledbetter decision. But this is the way the law of the land had been for years prior to this judgment and this decision.
The rule imposed by the Supreme Court reversed the decades of precedent in the courts of appeal, it overturned the policy of the EEOC under both Democratic and Republican administrations, and it upset the Nation's accepted definition as to what is fair and right.
The Court's decision turned back the clock on civil rights. Every year, thousands of workers suffer pay discrimination. The Ledbetter decision will hurt workers alleging discrimination of every kind: Sex, race, national origin, age, and disability. This chart shows 5,700 pay discrimination charges that have been brought. These here are on disability, discrimination on the basis of disability, after we passed the Americans with Disabilities Act. The dark green is on gender discrimination. The lighter green is on race discrimination; discrimination on the basis of race. This is national origin in here: 588. This is discrimination on age. All these cases--5,700--are based upon the pay discrimination that has crossed the country.
This is a real challenge. This doesn't represent the hundreds of thousands--hundreds of thousands--of cases of people who don't know about it. This is what is happening in this country. This is what is going to continue to happen unless we overturn the Ledbetter decision.
The Supreme Court's decision in Ledbetter gives employers free rein to continue to discriminate and leaves workers powerless to stop it. The result defies both justice and common sense. We must act to restore the decency and fairness to our Nation's civil rights laws.
The bipartisan Fair Pay Restoration Act will restore the clear intent of Congress. That is the legislation we will have on the floor to act on this next week. It provides a reasonable rule that reflects how pay discrimination actually occurs in the workplace. It links the time for filing a pay discrimination claim to the date a worker receives a discriminatory paycheck--not when an employer makes a discriminatory decision. Workers shouldn't have to be mindreaders in order to protect themselves from discrimination. Workers who aren't allowed to share information about their wages shouldn't be rendered powerless to combat discrimination. This bill recognizes that workers who receive a discriminatory check today should not be out of time to file a claim simply because the employer managed to hide its illegal behavior initially.
This legislation holds no surprises. It puts the law back to what it was on the day before the Supreme Court's Ledbetter decision. So we know this legislation is fair and it is workable. There would not be any unexpected consequences. Courts would not be overwhelmed. In fact, the Congressional Budget Office has said this bill would not increase litigation costs by much and businesses would not be blindsided. We are restoring what the law was previously. Most importantly, the Fair Pay Restoration Act makes employers accountable for violating the law. Under the Supreme Court's rule, if an employer can keep its discriminatory ways secret for 6 months, it gets a free pass. Do my colleagues hear me? If they are able to keep this secret that they are discriminating on any one of these bases--any of the bases we have mentioned, including age or disability, national origin, sex or race-- in any of these areas, if they are able to do that and keep that a secret for 6 months, the employers get the free pass.
They can continue to discriminate and its victims are powerless to stop the unfair treatment. It only makes sense that, if the violation continues, the right to challenge it should continue. No one should get a free pass to break the law.
The Supreme Court's decision in Ledbetter took us backward in time. It takes us farther away from our ideal of a fair and just workplace for all Americans. We have too much progress still to make, and we cannot afford a step back. With this legislation, we can at least make up the ground we have lost.
That is why this legislation has such widespread support. This chart indicates the various groups. A wide array of civil rights groups, labor unions, and religious and disability rights groups support this legislation. It includes the American Association of People with Disabilities. AARP understands what is happening in terms of age discrimination; Business and Professional Women understand the discrimination taking place against women; NAACP; the United Auto Workers and other labor organizations, too; National Congress of Black Women; Religious Action Center understands the moral implications of this issue; U.S. Women's Chamber of Commerce, and others. They all support this legislation. Many businesses also support the bill, including the U.S. Women's Chamber of Commerce, as I said. All companies that play by the rules and treat workers fairly should support this legislation.
Workers have lived for almost a year with the inequity of the Ledbetter decision. It is time to stand up for the right to fair pay. As Dr. King said so eloquently after the passage of the Civil Rights Act of 1964:
Many people felt that after the passage of the civil rights
bill, we had accomplished everything. We didn't have anything
else to do and we would miraculously move into a new era of
freedom.
But when we opened our eyes, we came to see that the civil
rights bill, as marvelous as it is, is only the beginning of
a new day and not the end of a journey.
If this bill is not implemented in all of its dimensions,
it will mean nothing, and all of its eloquent words will be
as sounding brass on a tinkling cymbal. We must take this
bill and lift it from thin paper to thick action, and go all
out, all over this Nation, to implement it.
It is time to hold employers accountable for their unlawful conduct. It is time to turn the clock forward on civil rights, instead of backward. It is time to pass the Fair Pay Restoration Act.
A final comment. This is a remarkable woman, Lily Ledbetter. Here is her quote:
And according to the Court, if you don't figure things out
right away, the company can treat you like a second class
citizen for the rest of your career. That isn't right.
She played by the rules. She worked hard and provided for her family and was being discriminated against. Here she is again:
I hope that Congress won't let this happen to anyone else.
I would feel that this long fight was worthwhile if, at least
at the end of it, I knew that I played a part in getting the
law fixed so that it can provide real protection to real
people in the real world.
We hear a lot of speeches in this body about the importance of work and paying people fairly. We hear speeches on both sides of the aisle about this. Here we have the classic example of a hard-working, decent, fairminded woman, who is trying to provide for a family, is playing by the rules, and she is getting shortchanged on the basis of doing equal work but not getting equal pay. She finds that out and pursues her rights and receives damages, under the rule of law in most of the States; and the Supreme Court, by a narrow margin of one, makes a decision that because she didn't know about it at the time this was started, when there was no chance in the world she would know about it because pay records are kept confidential, she is going to lose out on the fair pay she is entitled to under the protection of the law we have passed.
This body has gone on record time in and time out about fair wages for their work. We are going to have another opportunity in the next week to see whether we are going to continue this.
Let me finally say we are going back to the previous law. This isn't a new, bold idea carving out terms of the future. This is the way the law was. We are restoring the law, restoring the protections. This should have passed unanimously. How can Members of this body say no to restoring the law to what it was in the overwhelming majority of the jurisdictions of this country, on the fundamental issue of fairness that applies to virtually all workers, applies to men and women of color, men and women of disability, men and women of age, applies to national origin, and applies across the board? What are we afraid of?
We will have the chance to take this up and to take action on it and to call the roll, and the American people will understand who in this body is for fairness and treating American workers right, and who is for going back in terms of the Nation's fundamental commitment to decency and honoring hard-working people, who should be entitled to equal pay for equal work. We will find out when we call the roll the early part of next week.
I yield the floor and suggest the absence of a quorum.
Madam Speaker, I yield myself such time as I may consume. I would like to begin by expressing my great appreciation to my very dear friend, the distinguished and very able Chair of the Committee on…
Madam Speaker, I yield myself such time as I may consume.
I would like to begin by expressing my great appreciation to my very dear friend, the distinguished and very able Chair of the Committee on Rules, my friend from Rochester (Ms. Slaughter).
And with all due respect to my distinguished committee Chair, I am compelled, not surprisingly, to rise in the strongest possible opposition to this rule.
Over the last 1\1/2\ years, my colleagues Messrs. Diaz-Balart, Hastings, and Sessions have stood right here at this lectern and opposed many, many deeply flawed rules. We began this Congress very inauspiciously as the leadership jammed through the opening week agenda before even bothering to set up the Rules Committee, allowing Ms. Slaughter to become Chair of that committee. From the very outset, there has been no pretense of concern for due process, not an inkling of respect for the rules of this House.
While we started at a low point, we have sunk lower and lower with each subsequent rule. One by one the Democratic leadership has trampled the rules and traditions of this body in an effort to shut down debate, cut both Republicans and Democrats out of the process, and jam through poorly constructed bills that rarely, rarely, if ever, become public law. I frequently marvel at each new low and assume that we have reached the rock bottom. As we have considered new forms of restrictive rules crafted under an ever-more restrictive process, I have often thought, ``This one takes the cake. The Democratic leadership couldn't possibly stoop any lower than this.'' Until the next comes, shutting down due process to an even greater degree.
So this time I'm not going to say that this rule is the absolute bottom of the barrel. I don't doubt that with a little more time and effort, based on the track record we've seen, the Democratic leadership will find a way to trample the rules and traditions of this House even more thoroughly. I will say that this is clearly the worst example that we've seen in the last 17 months since they have been in charge.
But before I get into the details of this egregious rule, Madam Speaker, I think it's important to discuss why it even matters what kind of a process is used to craft legislation and hold votes. I know the inner workings of the Rules Committee are thought to be so arcane that even some of our colleagues consider them to be a little too ``inside baseball.'' In fact, the distinguished Chair just spent all of her time talking about the bill itself. She didn't talk about the fact that they're trampling on the rights of Republicans and Democrats. Start talking about rules and procedure and regular order, and most Americans' eyes, and even some of our colleagues', start to glaze over.
So to illustrate why process matters, I will use another set of rules that are
more widely understood as an example. Even before the advent of the television show Law & Order, most of us were familiar with the basics of our criminal justice system. We're all familiar with our basic rights enshrined in the Constitution. We cannot be held without a charge. We're protected from self-incrimination and unlawful searches and seizures. We must be read our Miranda rights when placed under arrest. These basic rights are fundamental, fundamental, Madam Speaker, to American democracy. We know that there can be no justice without a fair process, and we know that the protection of the rights of the individual is more important than the outcome of any one particular case.
The Bill of Rights and the laws that have been enacted to uphold it aren't just a cryptic system of rules and regulations. They guarantee, Madam Speaker, they guarantee our civil rights and they guard against tyranny. Without a fair process, power is abused and rights are abridged. Process matters, Madam Speaker. Process matters because process is democracy.
The rules of the House were established for the very same reason. They ensure that the American people, through their elected representatives, have a say in the crafting of laws that govern them. The rules guard against abuses of power, and they ensure that the legislative process is transparent and fair. Thwarting due process is not just arcane political maneuvering around obscure, complicated rules that no one should care about. It subverts the principles of representative democracy. Let me say again, Madam Speaker, the rule that we are considering at this moment very clearly subverts the principles of representative democracy.
The Democratic leadership's casual disregard for these rules and principles has faced growing criticism in the media. Last week the Politico accused them of ``breaking promises,'' promises for an open legislative process that followed regular order and the rules of the House. Not surprisingly, the paper cited today's underlying bill, the supplemental appropriations, as Exhibit A in the Democrats' assault on an open and inclusive process, which was promised at the beginning of this Congress. That's not my saying that; that's an independent newspaper that made that statement.
Even before the new lows of the supplemental, another publication, Investors Business Daily, reported recently on the leadership's ``widening power grab,'' accusing them of ``anti-democratic'' behavior, running a ``dictatorship,'' and ``showing little or no concern for holding actual votes or building consensus on issues.'' Now, Madam Speaker, those are pretty harsh charges coming from a newspaper that is clearly a very independent publication. And they go on to say that this is all being done in an effort to ``manipulate Congress.'' Madam Speaker, ``dictatorship'' and ``anti-democratic,'' those are pretty harsh words, but they are clearly warranted.
The process used to craft the underlying supplemental appropriations bill has been atrocious. Committee work was completely abandoned. Without a single hearing, without a markup, without so much as consulting Mr. Lewis and the committee members, this bill was concocted behind closed doors. Zero input, zero deliberation, zero consultation. The Senate, of course, won't stand for that kind of treatment and intends to hold a markup later today before proceeding with its floor debate. But the Democratic leaders in this House apparently deem this to be a lesser body, with no right to due process.
The Democratic leadership intended to bring this bill up last week. They had to pull it from the schedule because fiscally conservative Members within their own caucus were outraged at the contents. A week later, Madam Speaker, a backroom deal has now been struck, bringing the remaining Democratic Members on board. How? Bringing Members on board by imposing a tax on small businesses in this country, which is exactly what this is. You see, Democrats love to stir up class warfare by justifying the small business tax as just a tax on the rich. Unless, of course, we are talking about millionaire farmers, and then they like to give them massive government payouts, which is what they did just yesterday in the farm bill.
To add to their inconsistency, they actually waived their own PAYGO rule to fund the farm bill subsidies, and today they refuse to waive the same PAYGO rule and use it as an excuse to levy massive tax increases on small businessmen and women in this country. Only in Washington would such logic be employed.
We became aware of the rough outline of this tax increase, along with every other provision of this bill, only through press reports. Some have reported a $183 billion price tag on this bill. Others have said it would be costing at least $250 billion. Various outlets reported on various provisions. But we didn't get a chance to see for ourselves what was in this massive bill until 3 p.m. yesterday. In fact, the distinguished former Chair of the Committee on Appropriations, the now ranking member, my good friend, Mr. Lewis, came before us. Within the hour before that 3 p.m. meeting, he had just gotten the copy of the measure.
Most egregious of all, we're not actually considering a bill here today. We will be voting on three amendments to a Senate amendment to an old House bill that has already passed but was never enacted. Did you catch that? If it sounds gimmicky and underhanded, that's because that's exactly what it is. In fact, this morning I heard our colleague Mr. McDermott on National Public Radio, where he said the crafting of this is tantamount to John Kerry's very famous line in which he said ``I voted for it before I voted against it.'' The Democratic leadership knows that a vote on their full package would never pass; so they plotted a way around an actual vote on final passage.
For anyone who missed that, let me repeat. The House of Representatives will not be permitted a vote on the full underlying proposal. When Investors Business Daily calls this a dictatorship, they seem to have a point.
So what exactly is in this $183-250 billion bill that comes to us without any due process and will pass without a vote? Who can say for sure? But I know that at least $62 billion in new entitlements are included; $11 billion in unemployment insurance, and our friend Mr. Weller will be talking about this in a few minutes; and at least $51 billion in benefits for veterans. Clearly, these are very, very important issues that need to be addressed.
I don't doubt that the Democratic majority will try to claim that Republicans don't care about our veterans or those facing economic hardship. We hear that time and time again. To the contrary, these are such critically important issues for us that we passionately believe that we must address them in a serious and deliberative way. It is simply not good enough to slap together a proposal without a single moment of testimony or debate, throw some money at our problems, and call it a day.
The very critical issues addressed in this bill, from funding for Iraq and Afghanistan to international food assistance to the tremendously important domestic programs, all of these deserve a substantive, deliberative process. We should have an opportunity to examine which of these are truly emergencies and which should be included in the regular appropriations process. And all of them should have the benefit of an open debate to ensure that we are addressing our priorities effectively.
This rule allows for none of this, Madam Speaker. It thwarts the rules and traditions that were put in place to guard against abuses of power, and it blocks consideration of even a single amendment, including the very thoughtful and responsible alternative proposed by the man sitting to my right here, the distinguished ranking member of the committee, Mr. Lewis. He's offered a clean supplemental appropriations bill which simply provides our troops the funding they need without bogging it down with all kinds of unrelated items or adding new policy that prevents them from carrying out their mission.
Our hope is to get this critical funding to our troops before Memorial Day, which is fast approaching. That's not an arbitrary deadline and it's not a gimmick. Our military commanders have told us that they desperately need this funding now, and we want to be able to go home for Memorial Day and tell our veterans and our military families that we passed a clean bill that funds our troops and their mission. We
want to tell them we crafted a bill without regard to politics, without regard to providing political cover or fodder for political ads. We simply gave the troops the funding they desperately need. Now, Madam Speaker, that's exactly what the distinguished ranking member, Mr. Lewis, should be able to provide, and I'm going to seek an opportunity for him to do just that.
But, unfortunately, the Democratic majority can't advance their flawed policies without shutting down the process. So they prefer closed rules to open debate. They prefer backroom deals to the transparent committee process. They prefer hollow, ill-gotten victories that die after the House vote to substantive, bipartisan legislation that is enacted into law. That's exactly what we need to do, Madam Speaker.
So I urge a ``no'' vote on the rule, and I am going to urge a ``no'' vote on the previous question.
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I notice my colleague doesn't spend any time at all talking about the rule which is being considered at this time and shutting down democracy which we all aspire to in Iraq and other places in the world.
With that, I would like to yield 4 minutes to the author of the very important measure that will be made in order if we are able to defeat the previous question, a clean supplemental, my good friend from Redlands, the ranking member of the Appropriations Committee, Mr. Lewis.
Will the gentlewoman yield for a question?
Mr. President, Senator Coburn has agreed to come to the floor. I have a couple unanimous consent requests. He wanted to be present when I made these. Unanimous Consent Requests--S. 579 Mr. President,…
Mr. President, Senator Coburn has agreed to come to the floor. I have a couple unanimous consent requests. He wanted to be present when I made these.
Unanimous Consent Requests--S. 579
Mr. President, every year, hundreds of thousands of women in America are diagnosed with breast cancer. Breast cancer will strike approximately one in eight American women in their lifetime, with a new case diagnosed every 2 minutes in America. This year alone, it is estimated that 250,000 women will be diagnosed with breast cancer, and 40,000 of them will die.
We have made remarkable progress in breast cancer diagnosis and treatment, but we still do not know the cause of breast cancer. There are theories but no one really knows. Scientists have identified some risk factors. Those factors help explain fewer than 30 percent of the cases.
This legislation that I am going to ask unanimous consent for in just a few minutes, the Breast Cancer and Environmental Research Act, would establish a national strategy to study the possible links between breast cancer and the environment and would authorize funding for such research.
Eminent scientists believe the breast cancer that is being found, discovered in America, very likely is the result of something in the environment. Resulting discoveries could be critical to improving our knowledge of this complex illness which could lead to better prevention and treatment and even perhaps one day a cure.
Although we first introduced this legislation in 2000, and despite strong bipartisan support--right now we have 68 Senators supporting this legislation and are cosponsors of it, Democrats and Republicans-- Congress has yet to act and send this bill to President Bush. Last session, the bill was reported out of the HELP Committee, but one of our colleagues prevented final Senate passage. This session we have worked in good faith to address any concerns that have been raised about this legislation. As a result, this act was once again reported out of the HELP Committee, and as I have indicated, it is sponsored by 68 Senators.
It is long past time for the Senate to take up and pass this broadly supported bipartisan legislation. Too many women and their families have waited too long for Congress to act. I tried recently, last week, to pass this legislation by unanimous consent, but one Senator objected to my request. In response to that objection, I then offered a time agreement that would allow for 2 hours of debate on this bill with two amendments on each side. I think this is a fair offer for legislation that over two-thirds of this body have cosponsored. This offer was rejected.
I urge that we have this matter move forward. I urge my colleague to reconsider this offer and end the opposition to this matter--opposition to even debating this legislation which enjoys such broad bipartisan support. It is time to offer more than words of encouragement to those affected by breast cancer. Our wives, mothers, sisters, daughters, and friends have waited long enough.
I therefore ask unanimous consent that the Senate proceed to the immediate consideration of Calendar No. 628, S. 579, the Breast Cancer and Environmental Research Act; that the committee-reported substitute be agreed to; the bill, as amended, be read three times and passed, and a motion to reconsider be laid upon the table; and that any statements be printed at the appropriate place in the Record as if given with no intervening action or debate.
Mr. President, I understand the objection, but I would hope everyone within the sound of my voice understands the lack of logic to the statement just made by my friend, the Senator from the State of Oklahoma. If he has problems with this legislation, why would he prevent the whole Senate from taking it up? Why wouldn't he come to the floor as legislators are supposed to do rather than some guerilla attack and not allowing this to come up, recognizing if I bring this to the floor, it takes time.
Now, I don't understand why, if he has all of these great ideas as to what should or shouldn't be done. Let's bring this to the floor, offer an amendment, offer two amendments. Why stop this matter from being legislated?
So I understand. I can't wave a medical degree, but I can wave the fact that this legislation is important to many people in America today, and this legislation gives them hope that something can be done to find a cause and hopefully a cure. If my friend is so certain of his position, he should be able to offer an amendment and prevail in that regard.
Mr. President, I ask unanimous consent that the Senate proceed to the consideration of Calendar No. 628, S. 527, the Breast Cancer Research Act that was just spoken about, at a time to be determined by me following consultation with the Republican leader, and that the bill be considered under the following limitations: that other than the committee-reported substitute, the only first-degree amendments be four amendments--two for each leader--that are relevant to the provisions of the underlying bill and substitute; that there be a time limit of 1 hour for general debate on the bill and 1 hour on each amendment; with all time equally divided and controlled between the leaders or their designees; that upon the disposition of all amendments, the use or yielding back of all time, the substitute, as amended, if amended, be agreed to; the bill, as amended, be read a third time with no intervening action or debate; and the Senate proceed to a vote on passage of the bill, as amended.
Of the what?
I say to my friend, I am not aware of the thousands of studies. I am aware of the need to move forward with this legislation. I would say to my friend, if, in fact, there are thousands--and I don't in any way doubt the word of my friend--then why should that be a basis for stopping us to legislate on this issue?
We have 68 Senators who believe this legislation is important. If you, the Senator from Oklahoma, have a cause that this legislation is ill-founded, people are--I have changed my position on legislation before, and I can't understand why you would stand in the way of allowing this legislation to be legislated. That is what we do here. We are legislators.
So, no, I am not familiar with the thousands of studies.
Mr. President, I first got interested in diseases of women a number of years ago when in my Las Vegas office three women came to see me. They didn't want to be there. They were embarrassed for being there. They had a condition. It is called interstitial fasciitis. I had never heard the words before, and it is still hard for me to say these words after all of these years. But I looked into this. The NIH and the scientific community and the country thought this was a psychosomatic disease; that this was something these women had in their head; that even though each of them described the pain the same--like slivers of glass being shoved up and down their bladder--it was all in their head.
I had the good fortune of having a woman, who is an orthopedic surgeon, who had this same condition, and she said: This is not in my head, it is in my bladder, and something should be done to study this. We have begged the NIH to do it. We have had others that we have asked to do it, and they are not doing anything: You, Senator Reid, should have something done about this.
And we did this. We established a registry. We did that by legislation. As a result of that, now almost 50 percent of the people who have that disease have medicine to take that takes away their symptoms, the pain. It is pretty good.
Have we cured the disease? No, we haven't. But progress has been made because, as policymakers, that is what we do. We set policy. The NIH is a body of this legislature, this Congress, and we have an obligation and a right to direct them to do things. Now, they do good work. They do very good work. But there are other things that we think they should be doing.
Who cares about this, my friend asks? Well, who is lobbying for this, he asks? Two hundred and fifty thousand women who are going to get the disease this year are the lobbyists. They don't come here, all of them, and 40,000 to 250,000 are going to die. Now, is every penny of this money that we want to appropriate going to hit the mark and do the right thing? Maybe not, but it is going to lead to some discoveries that
will help this disease and probably other diseases.
So I say, I am disappointed and we are going to continue to work this issue. This issue is not going to go away. It is not only this Senator but 67 other Senators and others who will support this when and if we get this to the floor. So I appreciate the courtesy of my friend from Oklahoma. He is a gentleman. I disagree with him on occasion, but I appreciate his statement.
Unanimous Consent Request--H.R. 5613
We have more than 50 million low-income people--about 1 out of 6 Americans--depend on Medicaid for their health care. These are the poorest of the poor.
This administration has issued a series of regulations that will undermine the Medicaid safety net and create barriers for accessing care for the poorest of the poor.
These regulations, touted by the administration as ``savings,'' would not lower health care costs.
Instead States--already facing tough economic times, strained budgets, and increased demand for services such as Medicaid--will either have to raise revenues elsewhere or be forced to cut services to our Nation's most vulnerable at a time when they need help the most.
Each regulation has different impact on individuals, providers, communities, and States. They include, among other things, detrimental provisions, such as limiting services for people with disabilities; preventing children from receiving health care during the schoolday; cutting payments to public hospitals and other safety net providers for such undertakings as emergency rooms, burn units, and trauma centers.
The administration claims these regulations are necessary to fight fraud and waste in the Medicaid Program. But in a recent hearing on the Medicaid Program, the General Accounting Office testified it did not recommend the administration's proposed changes. They would not help.
We are committed to ferreting out any fraud that may exist in the Medicaid Program. But regulations that harm our most vulnerable and place greater burden on fiscally strapped States are clearly not the way to accomplish this end.
Mr. President, I ask unanimous consent that the Senate proceed to the consideration of Calendar No. 719, H.R. 5613--which, I might add, passed the House by a huge vote--a bill to protect the Medicaid safety net; that the bill be read the third time and passed and the motion to reconsider be laid on the table, with no intervening action or debate.
Mr. President, as I indicated in the last piece of legislation we tried to move forward on, would my friend allow us to bring it to the floor and debate the issue and offer amendments to it?
How long do you think that would take?
I appreciate that.
I yield the floor.
Will the Senator yield?
Does the Senator acknowledge that with diseases such as interstitial fasciitis, more than 90 percent of the people who have that disease are women? Women-related diseases have not gotten the attention they deserve, and one reason is because the legislature has been dominated by men.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I rise to speak today on an issue that is on the forefront of most Americans' minds this week,…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I rise to speak today on an issue that is on the forefront of most Americans' minds this week, and that is the issue of tax day. Yesterday was the filing deadline, April 15, which comes around every year, and for most Americans it is greeted with a great deal of trepidation and anxiety.
April 15 represents the annual call of Uncle Sam, the tax collector, knocking on the doors of hard-working taxpayers, and it highlights the real tax burden that is placed on American families.
This year, Americans will work 74 days to pay their Federal taxes, 74 days to pay their Federal tax burden alone. In order to pay State and local taxes, Americans will work an average of 39 additional days. What that means is that the typical hard-working, taxpaying, law-abiding American in this country will have to work an average of 113 days to pay taxes in 2008.
If we look at a calendar, that pretty much takes care of the months of January, February, March, and April, up to the 23rd of this month. If you think about it, every American is still working this year to pay the tax man. They have not gotten to that point in the tax year when everything they make can then be dedicated to the expenses they have for their families, for their children's education, for retirement, for fuel costs--all the things we deal with in our daily lives. We are still at a point on the calendar where none of what we make can be applied to those necessities of life because we are still at a point on the calendar where everything we earn and make in this country is dedicated to paying the tax man. Literally 113 days of the calendar year of this year up until April 23, which will be next week, is dedicated to pay the tax man.
What does that mean? Another perspective: If you put it into an 8- hour work day, taxpayers are going to work 1 hour and 37 minutes every single day to pay Federal taxes, and an additional 51 minutes to pay State and local taxes.
Put that into perspective. All other categories of consumer spending pale in comparison to the annual tax burden. In fact, Americans only need to work 60 days to pay for annual housing costs, 50 days for health and medical care, 35 days to pay for their annual costs, and 29 days to pay for transportation.
So the expenses most people deal with in their every-day lives, whether, again, that is the cost of housing, health care, food, or transportation--all are basic necessities--pale in comparison to the number of days the American taxpayer works every single year to pay their tax burden.
That is a pretty remarkable chart, I think you would have to say, when you look at the tax burden and the number of days you have to pay relative to the things we spend the rest of our money on.
This year, the statistics are probably better, if you can imagine that, than they were a few years ago. In 2000, before the historic tax cuts took effect, taxpayers had to work an all-time high
of 123 days to pay their tax burden. We have gone from 123 days down to 113 days.
In that same year 2000, a record 33.6 percent of the Nation's income was dedicated to paying taxes. After the 2001 and 2003 tax cuts, Americans were able to work an average of two fewer weeks to meet their Federal tax burden. That is why we find the average American working 113 days to meet their tax liability as opposed to 123 days a few short years ago. That is attributable to the tax relief that was enacted in 2001 and 2003.
Aside from paying taxes, filling out tax returns is a burden in and of itself. We have a Tax Code that is out of control, out of date, and is imploding under its own weight. The U.S. Tax Code spans over 54,000 pages. Some of the current provisions of the code were created 40 years ago. Each year individuals, families, and businesses spend needless hours poring over IRS forms and regulations trying to make sense of the endless exercise of filing taxes. In fact, in total, taxpayers dedicate over 6 billion hours to file their taxes and spend over $140 billion a year in compliance costs.
I read a story a couple of days ago that those who still fill out their own tax returns take an average of 34 hours to do so. That is almost a week. That is a workweek almost for most people to comply or fill out the tax return--for those who still fill out their own tax returns.
Bear in mind that a lot of Americans have gotten to the point where it is so complex, burdensome, and complicated they turn it over to a tax preparer. For those who still fill out their tax returns, 34 hours is the average they spend in complying with the Tax Code in this country.
Ironically, the complexity and uncertainty of filing taxes is only amplified by congressional action. Since 1986, we have made--I say we, the Congress--have made 15,000 changes to our Tax Code, or approximately 2 every single day. Many of these changes focus on 1- or 2-year extensions of expiring provisions.
For example, last year, Congress was unable to extend the alternative minimum tax until the IRS had published its 2007 tax return forms. Because of this delay, 13.5 million taxpayers had to wait until February 11 to file forms relative to the alternative minimum tax.
Only Congress can create a complex tax provision, such as the alternative minimum tax, and actually make it more complicated by extending it after the IRS publication deadline.
Unfortunately, the congressional leadership is simply either oblivious or unsympathetic to the tax burden on American families. Last month, the Senate Democrats called for the largest tax increase in American history. Under the Democratic budget, the reduced individual tax rates are set to expire in 20 months.
As millions of Americans have now finished coping with this year's April 15 deadline, I think it is important to point out that this deadline is going to be even more painful under the Democratic budget that passed the Senate earlier this year.
If the 2001 and 2003 tax cuts are not extended, on January 1, 2011, the 10-percent tax bracket will expire, the tax bracket that was put into effect that impacts low-income earners, lowers their tax liability and took literally millions of American taxpayers completely off the tax rolls. The 25-percent tax bracket that currently applies to earners in that tax rate bracket is going to go up to 28 percent. The 28- percent tax rate will increase to 31 percent. The 33-percent tax rate will increase to 36 percent. And the 35-percent tax rate will increase to 39.9 percent.
On top of the increased tax rates that will happen on January 1, 2010, unless we take steps to extend and prevent those tax cuts from expiring, the increased child tax credit will expire as well. Families with children are going to see their tax burden increase substantially when the $1,000 tax credit is reduced to $500 after the year 2010.
Additionally, the marriage penalty is reinstated. The 3l million filers who report dividend income and the 26 million filers who report capital gains income also will see their taxes on their investments go up.
Finally, the death tax will be reinstated at pre-2001 levels of $1 million. In other words, you can exempt $1 million worth of your income, the wealth you acquired over the years, from the death tax liability. If we think about how that impacts small businesses, farmers, and ranchers--and I can share that as someone who lives in a rural State where we have a lot of farm and ranch families. We have a lot of people with lots of assets, lots of land, lots of equipment, but they are very cash poor. When you take $1 million anymore, with land values being what they are in a place such as even my State of South Dakota, you are going to have an awful lot of people who are going to be hit very hard by the death tax when it becomes reinstated at a $1 million-level exemption.
Attach to that a maximum statutory rate of 55 percent--which, incidentally, is one of the highest death tax rates in the world. So literally you are going to have for people now who worked their whole lives--small businesses, farmers, ranchers--to accumulate some things to pass on to the next generation, all but $1 million of that would be taxed at a rate as high as 55 percent.
Think about the impact that is going to have on family farm and ranch operations in this country and many of our small businesses, which is where most of the jobs in the country are generated.
In total, the average family is going to see their taxes increase by roughly $2,300 per year. That is enough to buy several months of groceries or several months worth of health care.
It does not have to be this difficult. Congress can work in a bipartisan manner to fix our broken Tax Code and to ease the tax burden for families and small businesses.
Commissions have been convened, hearings have been held, studies have been published, and yet another tax day has passed without comprehensive tax reform.
Streamlining our Tax Code will strengthen our economy, it will improve the competitiveness of our businesses, and it will greatly ease the tax burden for all American families.
The problem is not that Washington taxes too little. The problem is that Washington spends too much. The American people, when they start spending virtually a third of their year to pay the tax burden that is imposed on them at the Federal level, the State level, and the local level, we are asking way too much and imposing way too much a burden on the working men and women in this country and those small businesses that are creating the jobs and those who are trying to pass on those operations to the next generation so we can keep family farms, ranches, and small businesses in the family, contributing, creating jobs, and paying taxes. With a confiscatory death tax, which will happen if we do not take steps to extend the tax cuts, we are going to see a lot of those farms, ranchers, and small businesses go by the wayside.
I hope the sentiment in this body, the Senate, and the House of Representatives will change to the point that we recognize the importance of extending the tax relief that was enacted in 2001 and 2003 so we do not see these steep increases in income rates and return of the marriage penalty and a decrease in the per-child tax credit, dividend, and capital gains income being taxed at much higher rates, and the death tax being reinstated. If we are successful in extending those tax cuts, I think we will see an economy that, although experiencing an economic downturn right now, will improve, will start to grow again and create jobs. If we allow these tax cuts to expire, I think it is ``Katy, bar the door'' in terms of the adverse economic consequences and impact it will have on this economy and on the working men and women of this country and the entrepreneurs who make it work.
Mr. President, I yield the floor, and I suggest the absence of a quorum.
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Before I get into the substance of my remarks on Medicaid regulation, I compliment my colleague on his speech. I do not agree with all of it; I agree with some. I note one of the reasons he pointed…
Before I get into the substance of my remarks on Medicaid regulation, I compliment my colleague on his speech. I do not agree with all of it; I agree with some. I note one of the reasons he pointed out on his chart is it was foreign countries that owned most of our oil supply. That is true. I would note and commend to him to look at the Saudis, who have the largest number of oil fields and are the largest producer. Actually at a time of increasing demand, as my colleague from Idaho well knows, Saudi Arabia has cut back on production. It was higher in 2005 than it was in 2006, and it was higher in 2006 than it was in 2007. I will be coming to the floor, either later today or, more likely, tomorrow, to talk about that.
The Saudis are, No. 1, the short-term answer. We can talk about increasing production here, whether it is alternative energy or fossil fuels. We can talk about increasing conservation. They are vital, necessary, and cannot be avoided. They are long-term answers. But the quickest short-term answer to the problem would be for the Saudis to increase production.
They have cut back. They talk a good game. We see pictures of President Bush arm in arm with the Saudi leader, the Saudi King, yet we get nothing in return. Yet we are considering selling them some of the most advanced weapons we have. So stay tuned tomorrow, where some of us are going to be talking about that and augmenting in a certain way what the Senator from Idaho was talking about.
Moratorium on Medicaid Regulations
Mr. President, today I rise to speak about the moratorium on Medicaid regulations. Last week the House passed a bipartisan bill with overwhelming support to block the ill-advised Medicaid cuts the Bush administration has proposed. The House bill introduced by Chairman John Dingell passed by a vote of 349 to 62. By definition, that had to have a majority of both parties--128 Republicans and every Democrat voted for this bill. It was an incredible victory--at least a first step toward a victory for American patients who are served by hospitals, for hardworking physicians and other health providers as well as case managers and social workers who do so much to help those in need. It would extend all the way to those who work in hospitals at 2 a.m., sweeping the floors, mopping, to make sure the hospital is spick and span for the next morning.
Later today Majority Leader Harry Reid will ask for unanimous consent that H.R. 5613, protecting the Medicaid Safety Net Act--the same bill as passed the House--be approved. I hope my colleagues on the other side of the aisle will go along with this vitally needed piece of legislation. The bill is now on the Senate calendar, thanks to the majority leader and Chairman Baucus. Many of us on this side and I believe many on the other side hope we will have a chance to take it up this afternoon. These proposed Medicaid rules the administration proposed could not come at a worse time. State budgets are already worsening due to the weakening of the economy, and few States can absorb these massive and unvetted cuts. The administration did not look here or look there at specific places where they might save. Oh, no, it was a meat-ax, an almost across-the-board cut at a time when our hospitals, our economy, and most of all our people who are sick cannot take it.
If the Congress does not act, the States will face terrible choices-- to cut
their Medicaid Programs or cut other programs to free up more funds for Medicaid. In a sense it will undo much of the stimulus package, putting money in the hands of people so they can spend it and then requiring the States to cut back.
We need a moratorium so the next administration can make things right. We need a moratorium so this administration will not be able to succeed in its meat-ax approach to health care and to Medicaid in particular.
Let me tell you a little more about the eight Medicaid regulations this administration has proposed. I am sure many of my colleagues on both sides of the aisle have heard from their hospitals, their Governors, and constituents, that these rules are a disaster for our health care system.
The expiration of moratoria on two regulations, GME--that stands for graduate medical education--and the IGT, intergovernmental transfers, is fast approaching. It reaches us on May 25, 2008. That is a little less than a month away.
We have two additional moratoria that are expiring on June 30: the ``rehabilitation'' and ``school-based health'' rules. Then, if that is not enough, there are at least four other rules that have no moratoria, and they go into effect shortly, piling on the people and an industry that at this point is in bad enough shape.
What would happen if we didn't pass H.R. 5613 is that our States, our hospitals, our public providers who do so much important work for American patients would be devastated. Right now they are in a terrible state of panic--and that is not an exaggeration--over these proposed changes that will cost billions more dollars.
Like so many of my colleagues, I believe the integrity of the Medicaid Program is extremely important, but I think a large majority of the Senate agrees these rules go way too far and will end up hurting patients and the very system that serves them. With close to 50 million Americans uninsured in my own State of New York, the estimate is there are over 2 million adults and kids who do not have health insurance. We are penny wise and pound foolish to allow reductions in the critical safety net funding that currently exists.
The Medicaid GME, or graduate medical education rule, is one I am particularly worried about. This proposal represents a major shift in administration policy. By proposing not just to cut but to eliminate Medicaid GME, the Government is essentially forcing the Medicaid Program to shirk its responsibility to cover its share of training physicians. The GME regulation would pull the Federal rug out from underneath the Medicaid support for training physicians at a time when across the country, in rural and urban areas alike, we are experiencing a shortage of physicians in every specialty and in primary care.
For example, a community in New York State's southern tier, the area that borders Pennsylvania, experienced a 20-percent decline in general surgeons from 2002 to 2006. In 6 rural counties in the Mohawk Valley, there was a 33-percent loss in general surgeons over that same time period.
The impact of the GME proposal is estimated to be a $3 billion loss over 5 years to New York State teaching hospitals alone. The public hospitals in New York State have told me how devastating the cuts would be if these rules are implemented.
For instance, Coney Island Hospital, a hospital that tends to the poor, tells me they would no longer be able to offer smoking cessation programs for pregnant mothers. What a terrible shame. What a wrongheaded approach. These hospitals are using these funds in a cost- effective way that will improve health, but this administration is saying no to them and no to patients.
We talked about the sacredness of life, and we know a baby in vitro should be given, if not a head start, at least an equal chance. But if that baby's mother is smoking, the health of that child is impaired.
``Smoking cessation programs work. Let's cut them out.''
No rationale, no discussion saying they do not work, just cut them. That is wrong. Prevention is important. Yet these rules make prevention efforts, such as smoking cessation programs, impossible.
They also hurt medical and dental residents. I recently heard from a dentist trainee, a dentist who was training in a New York public hospital, who said the wait for an appointment is already way too long. With these unwise regulations, that wait increases tenfold, and what was originally a minor dental treatment could end up a huge problem and end up costing the Federal Government and the State government more.
This dental trainee said these rules will increase emergency visits for situations that could have been prevented. It will increase unnecessary antibiotic prescriptions and reduce our ability to reach out and educate the community about dental care.
One of the hallmarks, and why the European systems are more cost efficient, is they focus more on education and prevention. We are cutting it out here. Instead of moving it forward and becoming more cost efficient by focusing on prevention, we are saying, Prevent it? Why would we want to do that?
We should be expanding prevention and expanding dental care in the early phase, not rolling it back.
With health care costs rising and health care reform the No. 1 issue on our constituents' minds, how can we allow these rules to go forward and make things so much worse? We need to vote on this legislation. We need to take this important step for health care.
I urge my colleague, the minority leader, to let this bill move forward. I urge all of my colleagues to do what the House did, a broad, bipartisan vote in favor.
We need to take this important step for health care. The list of supporters of the bill H.R. 5613 is a virtual who's who of health care: the American Medical Association, the American Hospital Association, the National Governors Association, the National Association of Mental Illness, the American Federation of Teachers, the National PTA, and the list goes on and on. More than 2,000 national and local groups have called for passage.
I urge all Members of the Senate to join the list of supporters when Senator Reid asks for unanimous consent later this afternoon to allow us to move to H.R. 5613. I hope that will be met by unanimous accord on the other side. Our health care system demands no less.
I yield the floor and suggest the absence of a quorum.
Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I rise to talk about an amendment that has been filed, which may or may not be offered. I…
Madam President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I rise to talk about an amendment that has been filed, which may or may not be offered. I wanted to alert the Senate to the possibility of an amendment that deals with moving companies--companies that move families, move furniture, et cetera, from city to city and across State lines--in fact, move them all over the country.
This amendment touches on a bipartisan provision that the Commerce Committee handled 3 years ago, which was, I guess, led by Senators Inouye, Stevens, Lott, and myself. We basically acknowledged that there has been a problem in the moving industry for quite some time. I don't want to go into great detail, but I will be glad to if Senator Bond comes down and offers his amendment.
I want to give a little bit of background. Basically, if you look at the statistics, since 2001, there have been about 25,000 official complaints with the Department of Transportation related to household good carriers transporting goods in interstate commerce. These complaints do cover a wide range of abusive household good carrier practices--everything from fraudulent cost estimates to lost and even damaged goods. So they really do cover the waterfront. However, the most outrageous of these complaints, in my view, is what they call ``hostage goods.''
What happens here is a moving company will move goods, and they will hold a consumer's possessions hostage until they pay thousands of dollars in excess of the original estimate. It is hard to believe that people would treat each other this way, but we have seen this thousands of times around the country, where a moving company will hold goods hostage because they want to chisel more money out of the customer.
Three years ago now, in the Commerce Committee, we looked at this situation. We understood the Federal Motor Carrier Safety Administration only had five employees assigned for the entire Nation when it comes to household goods and those complaints. Obviously, we had a problem. We worked on a solution. Again, this was a very bipartisan solution.
Part of the solution was to authorize State attorneys general and State consumer protection officials--they are not always AGs; it depends on the State. Usually they are attorneys general offices, but they don't have to be. It would allow the State to enforce certain Federal household goods consumer protection laws and regulations as determined by the Secretary of Transportation. This set up a partnership between the State governments and the Federal Government. We think it has been working well. We are hearing positive feedback.
State attorneys general, back in January of 2004, sent a letter, signed by 48 State attorneys general, saying they would like to have this authority. Let me tell you why. Probably, they have had similar experiences that I had when I was in the attorney general's office in Arkansas. I had a friend of mine who had moved from Florida back to Arkansas; he was moving back with his family, et cetera, et cetera. Literally, his goods--everything he owned--were held hostage by one of these unscrupulous moving companies. Naturally, as the attorney general, I thought surely we could help him. We started looking at it and learned that we were preempted by Federal law. I think he filed a complaint with the U.S. Department of Transportation, but let me ask my colleagues, who is going to be better at enforcing this and doggedly pursuing relief for their citizens, the State attorney general or the U.S. DOT in Washington--again, with five employees for the whole Nation? That is a pretty easy answer, and that is the State AGs. This is something we crafted, and we believe it is balanced. It came out of committee unanimously. There was compromise. Two Democrats and two Republicans worked together to get compromise language that we believed was fair and, we thought, served the purpose, and we believe it is good law.
I think it is important that it did come out of the committee unanimously. Again, Senator Lott took a real leadership role, and Senator Stevens was involved and Senator Inouye was involved and I was involved. We worked hard to get this done for the committee and for the Senate and for the American people.
As part of all this, we listened to industry complaints. We really did try to go the extra mile with the industry. We even had a hearing held by Chairman Lott on May 4, 2006. We brought in witnesses and allowed moving companies to come in and talk about the situation. Basically, at the conclusion of the hearing, the committee found strong support for our safety provision, including the endorsement of the U.S. DOT inspector general and the FMCSA.
So this has been something that has been vetted, has been agreed to, has been passed by the committee and by the Senate, and it has been signed into law. We think it is a good provision.
Obviously, if there is an amendment on this today, this would not be a technical correction, this would be a big shift in policy. I think that is an important factor for colleagues to consider as they look at this.
Also, if it is offered and if, in fact, I have a chance to come back to the floor and talk about it further, I know there will be a little bit of a comparison to the Consumer Product Safety Act and the Consumer Product Safety Commission bill that we filed a few weeks ago, and we passed it on the Senate floor 79 to 13, I believe it was.
I know there will be a little comparison, but this is very different. This is different in a number of ways. It is similar in some ways, but it is different also. And that is, with a consumer recall and with the State being able to enforce a consumer recall once that decision has been made in Washington, there may be thousands, tens of thousands, possibly millions of units of that product out in the American marketplace that has been recalled. Those products may be in warehouses or they may show up on the Internet. There are a lot of different ways they can show up. It can take literally years to get all those products out of the stream of commerce.
The moving industry is very different than that. Almost always what happens with one of these moving companies is something goes on during the move which more often than not is over a few days' period. Oftentimes, it is from one State to another State. The fact situation here is very different.
One of the reasons we are seeing an increase--and even though we passed this law, we are still seeing a fairly steady increase in these types of complaints--is the proliferation of the Internet. You can get on the Internet right now--I did this yesterday as an experiment. I clicked on something such as ``cheap moving companies.'' I don't know exactly what I typed. Several came up. With many of these companies, what you do is click a couple of little buttons to tell how many rooms you have in the house, or something very rudimentary, and you get a quote.
For folks who know about moving, it takes a lot more than that. You cannot make a couple clicks on the computer and think you are going to get an accurate moving estimate.
My experience has been with these large companies, they have written contracts and they have procedures in place. They come out to your home, or wherever you may be, and they look at your goods. They measure, they offer various services for crating, boxing, and all this kind of jazz. They can look, do their measurements and calculations and give you an estimate down to the penny. More often than not, those estimates are very accurate.
The problem is not so much the name-brand companies. I am sure there are occasional problems with them. But the problem we are trying to get to is these companies that are fly by night, many based on the Internet, many of them you do not know with whom you are dealing.
What we are trying to do is clean up this industry and help the American public in any way we can.
Since we passed this legislation, you would think you would see an amazing drop in statistics. We have seen the numbers grow a little bit. Again, it has been fairly steady. We feel as though
we do not have accurate numbers yet. We are actually going to request a GAO study to allow them to do their analysis and see how our provision is working. I think what we will find, once the numbers come in and are analyzed, is some good movement in the right direction.
One point that is important is that under SAFETEA-LU, the FMCSA did not add that many employees. It went from 5 employees to 11 employees. That is still a very small number of employees to do this all over the country. Hopefully, the State attorneys general will be able to help resolve these matters that are very good for the people in their States.
Madam President, I don't know if Senator Bond is going to offer his amendment. He told me earlier he thought he would. I hope he does not. If it does require a vote, certainly I will ask my colleagues to vote against his amendment. If he, in fact, does offer his amendment, I would like to have a chance to respond to Senator Bond. I know Senator Boxer and a few others have indicated their interest in doing that as well.
I yield the floor, and I suggest the absence of a quorum.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I ask unanimous consent that following my remarks, Senator Schumer from New York be allowed to…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I ask unanimous consent that following my remarks, Senator Schumer from New York be allowed to speak for 10 minutes.
Mr. President, before us is H.R. 2081, which is the reauthorization of the Federal Aviation Administration and, of course, that is the authority tied directly to America's airlines and the body of public policy under which they operate. It comes at a time when all of us are frustrated by what was once a great American industry, and that, of course, is the airline industry. We set the records, we established the world standards in all respects to aviation, and now our industry is in great trouble. It is in great trouble for a lot of reasons, but one of the underlying reasons today is the substantial cost in aviation fuel that all of these large carriers must acquire on a daily basis and the inability to simply pass it through to the consumer.
Of course, that is exactly what is going on in nearly every industry in America today. We are experiencing an energy shock to our pocketbook--whether it be my private pocketbook or an Idahoan's private pocketbook or a corporate private pocketbook--in a way that leaves us with no ability to assume it, to consume it in a way that does not damage our choices on staying alive as a major air carrier or our choice as a consumer where we put our money--with what few discretionary dollars we have left.
In that context, it is so easy to blame somebody else for a problem that largely this Congress has observed, talked about, and denied action on for nearly 20 years. Those of us on energy committees in the Congress who said the answer to a looming problem was going to be conservation, new technology, increased development, and production of existing energy sources over the last two decades--and we have largely denied ourselves those options--are now today wringing our hands in frustration about the phenomenal cost of energy to the American consumer.
So what do we do? We reach out to blame someone when we cannot find it easy to blame ourselves. So to whom do we turn? We say it has to be ExxonMobile's fault; look at all of their profits. Or it has to be Chevron's fault or it has to be Marathon's fault or, if you read in the paper today, British Petroleum has record profits, a 12-percent increase in return on investment. Gosh, we have to blame those big oil companies because surely they are in control of the market, surely they demand the price, and it seems it has to be their fault.
I have brought before us today a chart that might change our minds just a little bit. When we talk about ExxonMobile as it relates to their position in the world, well, my goodness, they don't control the oil supply of the world. They have a very small piece of it. Chevron, oh, my goodness, they don't control the oil supply of the world. They have a very small piece of it.
Who owns the oil of the world today from which we buy? Not U.S. companies but world countries--Saudi Arabia, Saudi Armco, the largest producer by a magnitude of three or four times. Then walk right on down to 11, 12 of the leading major producers are not companies, they are countries, and it does not happen to be the United States of America that is in that top 12 group. We should be, but we are not because we have denied ourselves the ability to develop our oil reserves in Alaska, offshore United States, offshore west coast, offshore east coast, oh, all in the name of the environment even though it is our technology today that is the world-class, environmentally proven and sound technology for deep sea oil development. So then we blame corporate America for our own fault. Now our consumers are angry. And listen to the speeches given
on the floor of this body accusing or blaming someone else for the problem we, in large part, created.
What are we experiencing today? I believe we are experiencing something that is simply called petronationalism. The Saudis have it figured out. They got the oil, we got the bucks; they sell us their oil, they get our bucks. That is pretty simple, isn't it? Sixty-four percent of the energy consumed out of the pump at the local gas stations on the corners of America today comes from somewhere else in the world, not the United States. We are spending over $1 billion a day somewhere else in the world to buy their oil. And if Americans want to be mad, they ought to be mad at their politician or politicians who, for the last 20 years, have denied the reality of the marketplace, all in the name of being supergreen or all in the name of just not liking big corporations, and so we couldn't let the Exxons, the Chevrons, or the Marathons do something about it.
Several years ago, I met with the president of American Oil before it merged. He was opining that they were never going to develop in the United States anymore because they could not afford to because of the regulations and the cost to produce a barrel of oil in the United States when they could go to the Caspian area of Central Europe or when they could go to Saudi Arabia or anywhere else in the Middle East. So today we suffer the reality of our own politics, and we ought to be able to do something about it.
Some of you who might have been listening a few moments ago heard the Senator from Wyoming making good common sense that we ought to quit buying oil out of this current market and putting it in our Strategic Petroleum Reserve. We have enough there for the time being in case something happened in the Middle East that created a crisis. It would not last very long because we would suck it out of the ground and put it in our pumps to avoid an oil shock. But the reality is quite simple. When you have a world with a growing demand for the consumption of oil and its products and you are not producing more, the price is going to go up.
Ten years ago the Chinese were not in the market. Ten years ago the Indians were not in the market. They are in the market today and they are increasing their demand out of the world's supply at a rate of 8 or 9 percent per year.
Is the world's supply increasing? No, it is not. Is the world's refining capacity increasing? Very little. So Americans are competing against the Chinese and the Indians and everybody else for their gallon of gas. That is the reality of the market today.
Oil is not a national commodity. It is a world commodity. As the dependency went up 60 percent over the last three decades, the overall consumer demand went up. Do ExxonMobil and Chevron and every other American company control it? No, they do not. Foreign nations control it and they are getting wealthy off of American's great ability to create wealth. If we do not get this under control as quickly as possible, we will simply spend ourselves broke and the rest of the world will have all of our money and then--guess what. They are now coming to the great banks of our country and saying: We see you have a financial problem. We would like to buy an interest in your bank and give you a big chunk of cash that we got by selling you oil.
They no longer own their oil because they sold it to us and we burned it. But they have our money and they are now coming back and buying our financial institutions. Isn't that an interesting cycle? The wealth we once sent overseas to Saudi Aramco and to all of these other national companies is now coming back to the United States in the form of them owning our financial institutions. Does that make good sense?
Right now we are going to look for any amount of cash we can get to bolster our financial institutions that are in trouble--possibly because of the housing industry or some other kind of large investment. So you might say that is a pretty good deal. I suggest the bad deal started 20 years ago when we began to progressively deny our country and its companies the right to produce and supply the marketplace. That is what we have done. Today we are paying the price.
I am going to be spending a good deal of time over the next several months talking about every segment of the energy portfolio of our country, not only gas and oil but electricity in all other forms and conservations and photovoltaics, wind, and cellulosic. All of that is going to be terribly important for the American consumer in the years ahead.
The bad news is what we have to say to the American consumer today is none of it is going to be ready for 4 or 5 or 6 or 8 or 10 years. In the meantime, your energy bill is going to become an ever larger part of your overall cost of living and your family budget. There is not much a politician can do about it because they have already damaged the marketplace in which you have to live.
I yield the floor.
Madam Speaker, by direction of the Committee on Rules, I call up House Resolution 1197 and ask for its immediate consideration. Madam Speaker, for the purpose of debate only, I yield the customary 30…
Madam Speaker, by direction of the Committee on Rules, I call up House Resolution 1197 and ask for its immediate consideration.
Madam Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from California (Mr. Dreier). All time yielded during consideration of this rule is for debate only.
I yield myself such time as I may consume. I also ask unanimous consent that all Members be given 5 legislative days in which to revise and extend their remarks on House Resolution 1197.
Madam Speaker, H. Res. 1197 provides for the consideration of the Senate amendment to H.R. 2642, the Supplemental Appropriations Act of 2008.
The rule makes in order a motion by the chairman of the Committee on Appropriations to concur in the Senate amendment with three House amendments. The rule provides 2 hours of debate on the motion controlled by the Committee on Appropriations. The rule provides for a division of the question on the adoption of the three House amendments listed in the Rules Committee report. The rule also provides that the chairman of the Committee on Appropriations may insert in the Congressional Record dated May 15, 2008, such material as he may deem explanatory of the motion.
Madam Speaker, with a deep appreciation for the importance of the legislation before us today, the Rules Committee has reported out a rule that allows for a full, thorough debate on three amendments critical to the future of our Nation. This process will give each Member ample opportunity to vote their conscience on whether to fund the war or not, place conditions on our Iraq policy or not, or choose to support veterans over millionaires.
The legislation we are about to take up was forged with the idea of consensus. It meets the spending requirements made by President Bush, including the $5.8 billion that he asked for to strengthen the levees in New Orleans. In addition, it does not include a single earmark, except those explicitly requested by Mr. Bush's administration.
On the other hand, the legislation is not a blank check because it is important to remember why we are really here today. This is the sixth year of the war in Iraq. More than 4,000 United States service men and women, 28 from my district alone, are dead. Tens of thousands have been wounded and physically disabled, and far too many suffer from post- traumatic stress disorder and a host of other mental health issues. What's more, the civilian death total is devastating. Millions, not thousands, of Iraqi men, women and children are dead. Millions more have been forced into camps or other countries that will accept them.
At a time of economic emergency, when the American family is under siege, the war continues to be waged at
a staggering cost to the American taxpayer and at the expense of our economic security.
A few weeks ago, the New York Times reported on the Bush administration's practice of paying off supposedly independent military analysts to shade the truth about what was really happening in Iraq. This administration was so concerned that Americans would find out the truth that they paid former U.S. military personnel to read from prescreened, whitewashed Pentagon talking points to hide from the American people what was happening in their name.
This may be the greatest foreign policy disaster in American history, and the American people overwhelmingly are calling for it to end. They have seen that this insurgency is far from nearing the end. They were told, ``Trust us. The Iraqi war revenues will pay for reconstruction.'' Yet the American people are feeling the pinch as their hard-earned tax dollars finance the rebuilding of a foreign nation while their country's own economy and infrastructure are falling apart. They were told, ``Trust us. We will make sure your sons and daughters have the equipment they need.'' Yet we have all seen the reports of desperate searches through junk heaps to refit ill-equipped armored vehicles. And we have all heard the tales of worried mothers scraping together the family savings to purchase adequate body armor for their children.
They were told, ``Trust us. We will ensure that our fighting men and women will be taken care of when they return home.'' Yet we all remember the disgraceful images of Walter Reed Hospital, the recent reports of appalling living conditions for troops stationed in the barracks at Fort Worth, Texas.
Under such circumstances, it would be an abdication of our duty to perpetuate a clearly unacceptable status quo. For that reason, the legislation we take up today represents a break from the past and a renewed chance of changing a stale, stagnant situation.
It does, indeed, provide immediate funding for our soldiers in Iraq and Afghanistan who are currently in the field. However, while the needs of our troops will always be at the forefront of our national priorities, funding for this war must not come in the form of a blank check. This funding only comes with conditions that will begin the process for ending this war.
The supplemental requires that troops begin redeployment from Iraq within 30 days, with a goal of completing a full withdrawal in 18 months. We do this not because we concede 1 inch to those who would do our Nation harm or because we lack the will to fight for our national security, we do this because basic respect for our military demands it. No longer will they be asked to fight an open-ended conflict whose finish line keeps moving.
And in keeping with this respect for our troops, the legislation mandates that soldiers must be properly rested and equipped to meet the administration's own standards for combat readiness before redeployment.
Furthermore, we will honor the parents who continue to serve our Nation by finally providing full funding for the military day care centers.
This legislation also keeps our promises to our veterans. Part of the cost of waging war is ensuring that our men and women in uniform have the resources that they need to resume their lives upon their return home. The bill before us dramatically expands the education benefits that veterans of the United States military will receive under the new GI Bill. Not only do our troops deserve this benefit and much more, but every dollar we spend on education today will come back to bolster our economy tomorrow. It is also an investment.
And I would add that this provision is fully paid for by asking the wealthiest, who saw their tax rates drop 19.6 percent in 2004, they have saved around $126,000 since that time, we are asking them please to give us $500 to help fund the GI Bill of Rights.
At no time ever before in the history of this country have we been burdened with massive tax cuts for the wealthy during a time of war. Obviously this has been a new idea of this administration. These actions of fiscal incompetence by the Bush administration left this country's economy struggling, and American families are paying the price. And no families are paying it more than the families of the men and women who are fighting this war. No sacrifice has been asked from any of the rest of us.
Rising levels of sustained joblessness require us to extend unemployment benefits to those workers who understandably cannot find a job. This bill does just that.
Additionally, up until this point, the American people have been unfairly asked to shoulder the full weight of the reconstruction effort in Iraq. The underlying legislation requires that U.S. reconstruction aid be matched dollar for dollar by the Iraqi Government, removing some of the pressure from families already struggling to make ends meet.
Furthermore, it prohibits the establishment of permanent bases in Iraq, blocking this administration from saddling the American people with a costly occupation long after the Army is gone.
Our fellow citizens have been sent to fight a conflict and a war far away from home, and we owe them not only our support and our deep thanks, and not only with words, but with the deeds that we commit to in this Congress. This bill is about who we are as a society and the values that we hold.
I am proud to support this rule and the underlying legislation, and I ask my colleagues to do the same.
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I am pleased to yield 4 minutes to the gentleman from Massachusetts, a member of the Rules Committee (Mr. McGovern).
Madam Speaker, I am pleased to yield 2 minutes to the gentlewoman from Illinois (Ms. Schakowsky).
Madam President, I ask unanimous consent the order for the quorum call be rescinded. Madam President, I rise to speak briefly about where we are headed as a government and specifically what we are…
Madam President, I ask unanimous consent the order for the quorum call be rescinded.
Madam President, I rise to speak briefly about where we are headed as a government and specifically what we are passing on to our children, which is regrettably a lot more debt than they deserve. This year the Federal deficit is projected to be close to $400 billion. That is up from last year, where it was under $200 billion. That is not a good trend, to be driving up the deficit.
It is also not a good trend to be putting on the books program after program which will end up costing our children a lot of money, and which we borrow from our children to pay for.
This bill, which is brought forward today, has in it, unfortunately, a couple of items--at least one specifically--actually a couple that are questionable, in which we are spending money which could much better be used to reduce the debt on our children. As I said, this year alone we are going to add $400 billion of debt to our children's backs. Probably the most significant in this account is something that has nothing to do with air transportation. You can call it the train to nowhere or the fast track to waste. It is the train they are proposing to build somewhere in New York to go somewhere in New York which is going to cost $1.7 billion.
Clearly this is not the right bill for that proposal. But even if it were the right bill, this would be not an appropriate proposal. This is a situation where folks from New York, who are good and decent people, have decided to raid the Federal Treasury to get some money to pay for something--in a very questionable way, by the way; by basically waiving FICA taxes, which they are not paying to begin with, for town employees--State employees. They have decided to raid the Federal Treasury for the purposes of building this train to nowhere.
We have seen this before, these specific projects, which benefit a specific place, which are not defensible. This certainly falls into that category. But in the broader context it becomes even less defensible because we are facing such a large deficit. We are not only facing this very significant deficit of almost $400 billion, we are constantly adding to that deficit. There are now, within the framework of the walls of this Capitol building--there are not four walls, there are lots of different walls in this Capitol building, but within this Capitol there is a series of ideas which is being promoted, which is also on a fast track, regrettably, a fast track of spending, which is also going to end up ballooning that deficit further than $400 billion.
There is, for example, a proposal being floated which has merit in concept but, when it comes to paying for it, nobody is willing do that, which will cost close to $60 billion. That is a proposal to dramatically expand the GI bill, as it is known. There is a proposal to expand unemployment insurance, even in States where unemployment has not hit numbers where it represents an immediate problem. Traditionally, unemployment under 6 percent or 5.5 percent is deemed to be full employment. In much of this country today, many States have their unemployment rates under 5.5 percent. But there is a proposal to expand the number of weeks a person can claim unemployment, even in States where there is essentially a number that represents full employment and that is going to cost $15 billion.
There are proposals in the farm bill, which has all sorts of gimmicks and all sorts of machinations to cover its costs and claim that it is paid for, which will cost billions and billions of dollars. The farm bill itself is a $285 billion bill. Huge expenditures are coming down the pike here, which are going to have to be paid for by our children.
There are proposals for further relief for Katrina of $5 billion. There are food stamp proposals of billions of dollars. There are Byrne grants, competitiveness grants, county payments, Bureau of Prisons--all of these ideas are floating around this Capitol as ideas on which we should spend more money. Most of them have good and reasonable arguments behind them. But the problem is they also, almost in every case, end up passing more debt on to our children.
In many instances, especially the train to nowhere in New York, you cannot justify it. It is wasteful spending at the expense of our children and it is inappropriate because this debt is building up and up. As a result, paying off this debt is going to mean the taxes on our children are going to have to go up and up as they move into their earning years.
The practical effect of that is that the next generation, our kids and our children's children, are not going to be able to afford as high quality a lifestyle as our generation has because they will have to be paying so much to support the Federal Government and the debts of the Federal Government. They will not be able to afford to send their kids to college, assuming college is even affordable at that time. They will not be able to buy that first home. They will not be able to live the high quality of lifestyle that has become the nature and character of American life, because the cost of the government, which we have incurred today, will have to be paid for by them tomorrow.
It is not fair. It is not right. It used to be around here people talked about the deficit a lot. They used to point to it as a failure of our Government and there used to be genuine efforts to try to reduce the deficit--on the spending side of the ledger from our side of the aisle and on the other side of the aisle by raising taxes. But that discussion has waned. There is no focus right now on the deficit, I suspect in large part because we now have a Democratic Congress and deficit spending is justifiable if it meets an interest group's claims that they have a right to this money or they believe should have a program, such as the train to nowhere in New York, which is promoted by our colleagues from the other side of the aisle who represent New York.
In the end, if we do not return to the basic concept that every family in America has to confront, which is you need to pay your bills as they come in and you cannot put too much money on the credit card because that means down the road you are not going to be able to pay that credit card and you are going to have to suffer significant contraction as a family--if we do not face up to that real fact of day- to-day existence that most Americans must realize, as far as how their spending meets their income, or if we do not as a government face up to that, we are going to fundamentally undermine our Nation. We are certainly going to do significant damage to our children and their future.
We talk a lot now about the weakness of the dollar and how that has caused the price of gasoline to jump dramatically, which it has. The weak dollar has caused energy costs and costs of commodities which are not produced in the United States to be driven up in large part because the dollar has weakened so much. One of the drivers of the weak dollar is a belief in the international community that we are not going to put our fiscal house in order, that we are going to continue to run deficits that are excessive, and that is what we are doing as a Congress.
We have some responsibility here. You can't make great progress unless you begin somewhere. A good place to begin might be to take this $1.7 billion that is proposed in this bill to spend for the train to nowhere, or the fast track to waste, and eliminate that program and take the revenues that are alleged to be used to offset that program and use them to reduce the debt on our children's heads. Reduce that debt by $1.7 billion. That is progress. Granted, in the overall scheme of things it is not a huge amount of money compared to the total debt that is being incurred, even this year, the $400 billion, but you have to start somewhere. This would be a good place to start.
Let's stop the wasteful spending which is adding to the Federal debt, which inevitably will undermine the quality of life of this Nation and especially pass on to our children obligations which there is no reason we should ask them to bear.
I yield the floor and suggest the absence of a quorum.
Mr. President, I ask unanimous consent to speak as in morning business. Mr. President, today I rise to speak about the price of gasoline and the price of diesel fuel, which is affecting every driver…
Mr. President, I ask unanimous consent to speak as in morning business.
Mr. President, today I rise to speak about the price of gasoline and the price of diesel fuel, which is affecting every driver in America. My principal message is that Washington policies should not drive up the prices at the pump. At an absolute minimum, Federal practices should not be making prices any worse.
According to the American Automobile Association, the average retail price for regular unleaded gasoline is $3.60 a gallon. The average price of diesel fuel is $4.24 a gallon. This is before this summer's driving season has even started.
Consumers all across America are hurt by the inflationary pressures at the pump. My constituents in Wyoming know firsthand the huge impact that $110 or $120 per barrel of oil has on their wallets. I visit with them every weekend. The price at the pump in Casper, WY, just 3 weeks ago was $2.91. This past weekend, it was $3.31. Wyoming ranks at the top of all States in terms of vehicle miles traveled on a per capita basis. Because of my State's sparse population and great distances, that means it is not uncommon to commute 20, 50, or even 100 miles round trip to work, to school, or just to buy groceries.
Today's current oil prices are primarily due to supply and demand fundamentals. At close examination, there
are really several different underlying contributors to today's high prices: rising world demand, especially in India and China; geopolitical tensions in the Middle East, in Venezuela, in Nigeria; limited options for acquiring additional supply; the weakness of the U.S. dollar; environmental regulations; and perhaps even excessive market speculation and manipulation. Recognizing this, Federal Government practices should not--should not--drive prices even higher. That is why I am announcing legislation today, S. 2927, that provides for a temporary suspension of Federal oil purchases for the Strategic Petroleum Reserve.
This Strategic Petroleum Reserve was initially created in the mid- 1970s. It was set up to protect the Nation from oil supply disruptions that followed the Arab oil embargo. I support the goal of protecting America's energy security. The Strategic Petroleum Reserve has served our Nation well. This legislation, though, says enough is enough. At today's high prices, this legislation tells the Government to stop putting any more oil into the Strategic Petroleum Reserve--to stop doing it whenever the average price of gasoline is over $2.50 a gallon. This chart clearly shows when we went above the red line, above $2.50, and when it has come below and when it is above. This has been in the last 3 years. This legislation also tells the Government to stop putting oil into the Strategic Petroleum Reserve when the price of diesel fuel exceeds $2.75 a gallon.
Currently, the United States is buying about 70,000 barrels, 70,000 barrels of oil each and every day to save and inject underground. The Government keeps buying it every day, regardless of price. When the prices of fuel go up, people try to use less. They carpool, they use public transportation. Not the U.S. Government--70,000 barrels every day regardless of need, regardless of price. The Strategic Petroleum Reserve already contains 700 million barrels of oil.
The Administrator of the Energy Information Administration recently testified to the Senate Energy and Natural Resources Committee. He said taking this much oil out of the market every day does drive up the price for American drivers. He wasn't sure of the amount. He estimated it could be $2 per barrel of oil, maybe a nickel per gallon. A private analyst has argued that continuing to fill the Strategic Petroleum Reserve could add as much as 10 percent to the price of gasoline--10 percent. While there appears to be a disagreement on the magnitude, it is clear that when the Government is competing with the American driver, it does have an impact. Every day, the Government is pulling 70,000 barrels of crude oil from the market. This is oil which could otherwise be used by airlines, by trucks, or by our neighbors.
My bill would also impose fiscal responsibility on future oil purchases. When the Federal Government buys oil at today's prices, it is an expensive proposition for all taxpayers. At current prices, it will cost over $8 million a day for the Government to purchase these 70,000 barrels of oil. Well, that equates to about $250 million a month, nearly $3 billion a year. The impact to the Treasury and to the American driver is real. Currently, the goal is to fill the Strategic Petroleum Reserve with up to 1.5 billion--billion--barrels of oil. At the current rate of putting in 70,000 barrels a day, it will take another 30 years to achieve this level--70,000 barrels a day for 30 years.
I recognize that a temporary suspension by itself is not going to bring down the price of gasoline to $2.50 or even $3 a gallon overnight. But I made a commitment to the people of Wyoming. I made a commitment to do what I can to help when it comes to Washington policies that just don't seem to make sense. As a physician, I took an oath to do no harm. As a Senator, I am committed to a philosophy of Government accountability and fiscal responsibility.
In addition to temporarily stopping the stockpiling of oil at these high prices, there is a second component to this bill: commonsense steps for fiscal responsibility. This legislation includes simple recommendations put forth by the Government Accountability Office.
This bill would require dollar cost averaging when it comes to purchasing oil in the future. We could save taxpayers money if we just purchased the same dollar amount of oil each month rather than the same volume of oil each month. This means you end up buying more oil when the prices are low and less oil when the prices are high. The practice works for individual investors. It is what millions of Americans do every month with their retirement plans.
There is an article in this week's Fortune magazine. It is entitled ``Where to Put Your Money Now.'' The article says: With the markets giving off so many mixed signals, use dollar cost averaging. The Federal Government should operate with that same prudence. If the Department of Energy had used this approach in recent years, it could have saved American taxpayers over $590 million.
The Federal Government could also save taxpayer dollars by storing heavier grades of crude oil. The Government Accountability Office has pointed out that such a strategy would be more cost-effective and provide more refiners with the kind of oil the refiners can actually use.
These are two fundamental steps to improve Government accountability and fiscal responsibility. Many of us complain about Government waste. In this legislation, we have a chance to do something about it.
I fully recognize that our energy problems are complex. This body recently adopted new corporate average fuel economy requirements to improve long-term efficiency in our cars and in our trucks. Increased energy efficiency and conservation must be an important part of any long-term energy solution. Other policies worthy of debate include expanded domestic production of energy, and we have also held hearings on excessive speculation and market manipulation. More recently, some have called for a holiday on the Federal gasoline tax. All of these efforts are worthy of debate. A temporary halt on adding more oil to the Strategic Petroleum Reserve is really the low-hanging fruit. If we can't agree on these simple steps for fiscal responsibility, how will we come to an agreement on the more complex solutions to energy security?
I urge my colleagues on both sides of the aisle to support this legislation without delay. With gasoline prices at an alltime high, the American driver--the American driver--should not have to compete with Washington policies that are driving up the price at the pump.
Mr. President, I yield the floor.
I ask unanimous consent that the order for the quorum call be rescinded. Madam President, when the Senate considers the Federal Aviation Administration Authorization Act, I will offer a bipartisan…
I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, when the Senate considers the Federal Aviation Administration Authorization Act, I will offer a bipartisan amendment to strike section 808 of the substitute to this bill. The section I wish to strike would impose a significant competitive disadvantage on airlines that have done the most to protect their employees and provide for the secure retirement of those employees and current retirees. It would increase the pension obligations of these airlines above what is required of the airlines they compete with. It is fundamentally unfair. Such a move would undermine the ability of these airlines to maintain their commitments to their workers, particularly in today's struggling economy.
In 2006, with several airlines facing the prospect of bankruptcy, the Pension Protection Act adjusted how struggling airlines that had frozen their defined benefit pension plans could calculate their pension obligations. Those airlines were allowed to devote significantly less funding than their competitors toward payments to their pension plans. Understand, airlines facing bankruptcy that were on the cusp of losing defined benefit retirement plans were given better treatment under the Tax Code than those that didn't file bankruptcy and tried to keep their word to their employees under their defined benefit plans. Airlines that maintained their pension plans weren't given this benefit. As a result, American, Continental, Hawaiian, Alaskan, and US Airways were placed at a significant competitive disadvantage, only because they continued to offer their workers defined benefits for retirement. Those are the benefit plans, incidentally, that workers like the most. They are the ones that guarantee what you will receive when you retire, as opposed to a defined contribution plan, for example, that says a certain amount of money will be set aside, and maybe it will earn a lot before you retire, maybe it will not. The defined benefit plans--which, incidentally, Federal employees and Members of Congress have--are the best. These airlines that had similar plans for their employees and retirees and avoided bankruptcy were put at a disadvantage. The airlines facing bankruptcy, throwing away their pension plans, and changing them, were given a better break under the Tax Code than those that continued in business, avoiding bankruptcy and keeping their word to their employees and retirees.
In 2007, I joined with Senator Harry Reid, adding language to the Iraq supplemental that tried to address this unfairness and inequity. Under the 2006 law, airlines that had prohibited new workers from participating in their defined benefit plan were allowed to assume a rate of return of 8.85 percent on their pension investments. The 2007 law allowed the other airlines, those that had maintained the previous defined benefit commitment, to assume an 8.25-percent return. I know these numbers probably in the course of the speech don't impress you, but they should. It makes a significant difference of how much money an airline has to put in the pension plan, and the Tax Code, the law of our land, requires it. Airlines that had frozen their plans were allowed to amortize their plan shortfalls over 17 years; in other words, those that were facing bankruptcy and walking away from many aspects of their pension plans were able to take a longer period of time to pay out what was necessary to bring their plans up to solvency. The 2007 law gave airlines with defined benefit plans only 10 years, not 17. Therefore, airlines that are offering their workers defined benefits retirement face a competitive disadvantage.
The 2007 law I mentioned earlier partially closed the gap. Section 808 of this FAA reauthorization bill would tilt the playing field away from the airlines that already face this competitive disadvantage because they offer the very best pension benefits to their employees.
What it comes down to is this: Airlines are declaring bankruptcy in every direction. Some are reporting record losses. Last week, American Airlines reported a loss of $328 million in the first quarter, virtually all of it attributable to increases in jet fuel. A few days later, United Airlines, another
major airline based in my home State of Illinois, announced first quarter losses, if I am not mistaken, of nearly $500 million and the need to lay off some 1,000 employees. Now comes this FAA reauthorization bill, and it includes a provision that will create an economic burden and hardship on some of these airlines that are struggling to survive. Could this Senate pick a worse time to hammer away at these airlines, when they are struggling to deal with jet fuel costs that are going through the roof and an uncertain economy facing a recession? If there was ever a bad idea, this is it.
I am happy to yield.
Madam President, I thank the Senator from Texas for joining me in offering this amendment. This is a bipartisan amendment. We urge our colleagues: Take a close look at this. At the end of the day, if we pass this FAA modernization bill and force more airlines into bankruptcy because of this provision, is that our goal?
We have lost so many airlines already, and now a major airline, such as American Airlines, which avoided bankruptcy and managed to keep its promise to its employees and retirees, and has provided significant funding for its pension, is going to be penalized by this bill.
Ask the people whose pensions are affected, those members of unions who are supporting our efforts to stop this change in the law. I cannot understand the motivation behind this change.
When this was originally considered a few years back, there was another group in charge in Congress and a chairman of the House Ways and Means Committee who singled out several airlines that were not facing bankruptcy and created a disadvantage for them. We tried to remedy it last year, and we got a temporary fix in there. And here they come again: this group that wants to keep changing this law, penalizing these airlines--at absolutely the worst possible moment. Wouldn't it be ironic if this were passed and the airlines that worked the hardest to avoid bankruptcy, the airlines that worked the hardest to keep the defined benefit plans--absolutely the gold standard when it comes to retirement--wouldn't it be ironic if the language of this bill ended up capsizing these airlines at this precarious moment in our economic history.
I am going to urge my colleagues: Take a close look at this. Ask yourselves: If the beneficiaries of these retirement plans oppose this change, if the airlines oppose this change, if there is no argument to be made as to why you would treat these airlines differently than those that have faced massive changes in their pension plans, why in the world would we want to pass this amendment?
At the end of the day, I want to make sure we have FAA modernization. But I also want to make sure there are airlines still serving America in every corner of America so our people have a chance to travel for business, for leisure, whatever it might be.
I urge my colleagues: Please take a close look at this. I hope they will consider supporting the Durbin-Hutchison amendment when it is offered tomorrow morning. It will be the first item of business. I hope we can entertain a debate and move to its consideration at an early time.
There is no reason to delay this. The sooner we remove this cloud from these airlines that have worked so hard to stay in business and avoid bankruptcy the better.
I yield the floor.
Mr. President, I ask unanimous consent to speak as in morning business. Mr. President, later today, President Bush will propose halting growth in U.S. greenhouse gases by the year 2025. In his speech…
Mr. President, I ask unanimous consent to speak as in morning business.
Mr. President, later today, President Bush will propose halting growth in U.S. greenhouse gases by the year 2025. In his speech at the White House, the President is expected to place significant emphasis on new technology.
I recently introduced legislation to address the challenge of how to deal with greenhouse gases. The bill is called the Greenhouse Gas Emissions Atmospheric Removal Act, or the GEAR Act.
Members of this body have discussed various proposals to regulate the output of greenhouse gases. Some advocate doing it through a cap-and- trade approach. Others have advocated a carbon tax. Such proposals are aimed at limiting future carbon output into the atmosphere. Many proposals have been introduced and debated using this approach of dealing with carbon output.
Overlooked in the debate are the greenhouse gases that are already in the atmosphere. The best science tells us that the greenhouse gases already in the atmosphere are the gases that are causing the warming of our planet. To what extent, we are not certain.
So let's resolve to find a way to remove the excess greenhouse gases that are already in the atmosphere--remove them and then permanently sequester them.
To accomplish this goal, we are, as a nation, going to need to make a significant investment to develop new technology.
The approach my legislation takes to address this is through a series of financial prizes--prizes where we set the technological goals and also define the outcomes we demand.
The first researchers who meet each criteria will receive not only a financial prize but also international acclaim.
The prizes would be determined by a Federal commission under the Department of Energy. The commission would be composed of climate scientists, physicists, chemists, engineers, business managers, and economists.
The commission would be appointed by the President with the advice and consent of the Senate. The awards would go to those, both public and private, who would achieve milestones in developing and applying technology--technology that could significantly help to slow and even reverse the accumulation of greenhouse gases in our atmosphere.
The greenhouse gases would have to be permanently sequestered, and sequestered in a manner that would be without significant harmful effects.
This is how it would work. There would be four different levels of prizes.
The first level would go to either the private or public entity that could first demonstrate a design for successful technology that could remove and permanently sequester the greenhouse gases.
Second, there would be a prize for a lab scale demonstration project of the technology that accomplishes the same thing.
Third, there would be an award for demonstrating the technology to remove and permanently sequester greenhouse gases that is operational at a larger working model scale.
Finally, there would be an award for whoever can demonstrate the technology to remove and permanently sequester greenhouse gases on a commercially viable scale.
There you have it--four different levels of development: First, to design the technology; second, a lab scale demonstration of the technology; then for a larger working model; and then, finally, the proven use of the technology on a commercially viable scale.
Well, once the technology is developed, the United States would share intellectual property rights to that technology with whomever invented it.
This bill, as drafted, does not include a specific dollar amount for each prize. Instead, it authorizes such sums as may be necessary.
The commission will be directed to report to Congress 1 year after enactment into law. The commission will recommend the levels of funding that would be necessary to achieve the goals of this act.
I believe prizes can be a unique tool in creating the technological development we need. It only seems natural that if we get all the best scientific minds thinking about the same problem, and working on it, we significantly enhance our chances of solving it.
Historically, prizes have been used to spur all types of technological development to solve big problems.
In 1714, the British Government offered the first prize of this type, and they did it for a device capable of accurately measuring longitude. John Harrison, a clock maker, was awarded 20,000 pounds for designing an accurate and durable chronometer 59 years later. This transformed our ability to sail the seas.
In 1810, the first vacuum-sealed food was produced after 15 years of experimentation. It was driven, again, by a prize offered, this time, by Napoleon. Today, vacuum sealing is still used throughout the world.
In 1909, the first flight across the English Channel was spurred by a prize offered by a newspaper.
Charles Lindbergh was competing for a prize offered by a wealthy hotel owner when he flew the Spirit of St. Louis nonstop from New York to Paris in 1927. Well, that achievement spawned what is a $300 billion aviation industry today.
It is my hope and my goal that this legislation will foster the kind of solutions that we need to address the concerns about climate change.
What I am proposing is that we take a brand new look at climate change. With that new look, our solution will be based on removing excess greenhouse gases that are already in the atmosphere. We must think anew and we must act anew.
That line--``we must think anew and we must act anew''--is engraved on a scenic overlook along Interstate 80 between Cheyenne and Laramie, WY. It is engraved on the pedestal that holds a large-size bust of Abraham Lincoln. Lincoln was the one to have the vision for the Transcontinental Railroad.
It is now time for us as Americans to think anew and act anew about the issue of climate change and controlling greenhouse gases. Americans have always looked within ourselves for solutions. We have always had confidence in American ingenuity and American creativity to deal with the challenges of the future.
Yes, we want to protect our environment and, yes, we want a strong economy. The way to have both is by thinking anew and acting anew. It is time to use our untapped human potential and the American spirit to develop the technologies we need.
It is now time for the Senate and for Congress to find a solution to global climate change, not through limits but through imagination, innovation, and invention. I look forward to working with each and every Member of the Senate in achieving this goal.
With that, I yield the floor.
Yes, for 6 or 7 minutes. Mr. President, today the House Energy and Commerce Committee is taking up--or maybe has already taken up--consideration of a bill, H.R. 5613. This bill seeks to place a…
Yes, for 6 or 7 minutes.
Mr. President, today the House Energy and Commerce Committee is taking up--or maybe has already taken up--consideration of a bill, H.R. 5613. This bill seeks to place a moratorium on seven Medicaid regulations until the next administration.
I know some people have concerns, because I have discussed those concerns, with these CMS Medicaid regulations. So let me be very clear that I am not unsympathetic with those concerns. I am not here to argue the regulations put forth by the administration are perfect. I have issues with some of them that I wish to see addressed.
However, the regulations do address areas where there are real problems with Medicaid. CMS is taking care of those problems, and we ought to let them move forward instead of delaying all of these Medicaid regulations at once.
As everyone knows, Medicaid is a Federal-State partnership that provides a crucial health care safety net for some very vulnerable populations, people whom we all agree we have a social responsibility to look out for--low-income seniors, the disabled, pregnant women, and children. These classes of people depend on Medicaid, and it does generally serve them well.
Medicaid is also a program with a checkered history of financial challenges that we, as fiscal conservatives--and we all brag about fiscal conservatism--ought to be concerned about, these financial challenges coming from Medicaid, sometimes not being administered the way it should be.
Quite frankly, using the term ``fiscal challenges'' is a gentle way of putting it sometimes. A more severe way of putting it would be that Medicaid has a history in our respective States--not every State but a lot of States--of abusively pushing the limits of what should be allowed to maximize Federal dollars that we send to them under various formulas.
I am not going to devote time in my remarks today to issues of fraud and abuse in Medicaid, but that is legitimate to talk about. I will be back with that at another time. Instead, I want to focus on a very simple concept, and that simple concept is that Medicaid program integrity depends upon the setter for Medicaid services and the States and providers and ultimately beneficiaries having a clear understanding of the rules of the road. That is what we ought to expect out of any government program, that everybody knows how that program operates.
In this instance, States have not had clear guidance. In that case, they could be inappropriately spending taxpayers' dollars. Improper payments, wasteful spending--what does it do? It only increases the financial pressure on a very worthwhile safety net.
The Medicaid regulations that H.R. 5613 attempts to halt would halt all efforts by CMS to provide clear rules, rules of the road in very critical areas where there have been well-documented problems and most of those problems costing the taxpayers more money.
During the recent debate on the budget resolution, I entered into the Record a Congressional Research Service memo that showed some of the issues that exist under current law. I am not going to go into all of those issues today in detail because they are in the Record, but when CMS does not know how a State is billing for a service and States do not have clear guidance for how they should bill, neither Medicaid beneficiaries nor the taxpayers at the Federal or State levels are well served.
We should be, in fact, talking about fixing the regulations so that they better address real problems in Medicaid. But instead, the House of Representatives is trying to kick this can down the road to next year.
What does that mean for the taxpayers? H.R. 5613 spends $1.7 billion to place a short moratorium on these regulations. This is only to delay the regulations until March of next year--$1.7 billion to delay the regulations for 1 year.
I know supporters hope the next administration, whichever party that might be, whichever of the three candidates still in the race might be, will completely cancel the regulations. If these regulations were canceled, what would it cost if we tried to completely prevent these regulations from ever taking effect? It would not cost just this $1.7 billion that is going to be spent between now and next March. It would actually cost the taxpayers almost $20 billion over the next 5 years and almost $50 billion over the next 10 years.
It is absolutely a farce for anyone to argue that all of those dollars are being appropriately spent and that Congress ought to walk away from these issues. But that is what this bill, H.R. 5613, does; it walks away. Let's say it another way. It kicks the can down the road hoping the next President might walk away.
I know supporters of that bill will say they need more time. They say
they have not had enough time to study the regulations and to respond. That argument is starting to strain credibility. The public provider rule was proposed well over a year ago to study and react. The rehabilitation services rule was proposed 9 months ago for people in the House of Representatives to respond to and react.
Supporters of that bill have had plenty of time; that is, plenty of time if they wanted to make new policy. But it is obvious by these actions that their only real interest is in making these regulations go away.
This is very unfortunate because finding solutions is what we should be doing instead of kicking the can down the road. When we start talking about the integrity of the Medicaid Program, it is clarity of the rules that is most needed between the Center for Medicaid Services and our 50 States. So if you do not like the rules, that is fine, but there are tens of billions of dollars involved in this delay.
I say to my colleagues: Roll up your sleeves, or maybe I should say roll up our sleeves and let us all get to work to solve a problem that the regulations try to solve instead of kicking the can down the road. That is what we should be doing for the taxpayers. That is what we should be doing for the credibility of the Medicaid Program, a Medicaid Program that is needed, a Medicaid Program, for the most part, that serves people well. Contrariwise, putting moratoriums on all the Medicaid regulations issued by the Center for Medicaid Services is not the right answer.
I yield the floor, Mr. President, and I suggest the absence of a quorum.
While we are talking as in morning business, I wish to continue the detour, although I may take a little different direction. As the Chair and my colleague from Montana probably know, each year our…
While we are talking as in morning business, I wish to continue the detour, although I may take a little different direction.
As the Chair and my colleague from Montana probably know, each year our military bases in this country go through a competition in which Air Force bases are evaluated against other Air Force bases, and naval installations against other naval installations, Marine Corps against others, Army installations against other Army installations.
For 23 years or so the Air Force has been comparing their bases in a friendly competition called the Commander in Chief's Installation Excellence Award. During that period of time, it is my understanding that no mobility command, no airlift base, if you will, such as Dover, has ever been honored as the best of the best.
Yesterday I was visited here on Capitol Hill by COL Steve Harrison, who is the active-duty wing commander for the Dover Air Force Base, and he gave me this letter announcing the good news, that Dover Air Force Base has been selected for this high honor.
As an old naval flight officer, I remember often my squadrons on the naval bases where I was located participating in ORI exercises, operational readiness exercises. This is not an ORI. This is a competition which digs in deep and looks at things other than how well you fly your airplanes and meet your readiness requirements and meet your mission, although that is part of it.
This is a competition that also involves how you care for your people; what kind of workspaces do you provide for the folks who are on your bases, the uniformed, nonuniformed personnel? How do you look out for the families of those military personnel? How well do you think outside the box in trying to address the problems and challenges you face? What kind of commitment do you have to innovation in the delivery of the service you provide to support our military forces?
There are over 100 Air Force installations throughout this country. To have been chosen as the one that is believed to be most worthy of receiving this award this year is a matter of great pride, not only for the men and women who wear the uniform at the base, not only for the civilians who work there, and for the families, not only for the Air Force retirees in our State--and there are a lot of them who served at Dover Air Force Base--not only for the folks who live in Dover, the civilian population in central Delaware, this is a matter of pride for all of Delaware.
We have one active-duty installation, actually active duty and a reserve wing at Dover Air Force Base. We have an Air Guard installation up north in our State that we are very proud of. They fly C-130s. But this one, Dover Air Force Base, is very special to the people in our State. They fly C-5 aircraft, which are among the largest aircraft in the world. To be from a little State, and to be the home of one of the biggest aircraft in the world, gives us bragging rights that little States do not often get.
We have C-5B aircraft, about 18 of those at our base. We are getting a new squadron, a squadron of brand new C-17 aircraft that will complement our C-5s. The C-5s will be modernized in the years to come.
Dover Air Force Base has not only wonderful people, a terrific tradition and reputation, but will also have the new C-17s and maybe the first modernized C-5s. We will be ready to go to work and do our job.
Among the things pointed out in the recognition of Dover Air Force Base is
that they have secured, I think in the last year or so, October 1, last fiscal year, October 1, 2006 through September 30, 2007, among other things, they have secured some roughly $50 million in milcon projects. I hope our delegation, Senator Biden, Congressman Castle and I, was helpful in that process. We are grateful to our colleagues for the support of that funding.
During that period of time, we opened a brand new air freight terminal that cost, over several years, about $77.5 million. The efficiencies that will flow from that new cargo-handling facility will actually pay for that facility within 2 years. Now, whenever companies are looking for a way of a return on investment, the idea that you can get a return on investment in 5 years or maybe even 10 years is not deemed very bad. We will realize a return on this investment for our new cargo-handling facility, our air freight terminal, within 2 years of bringing it on line.
What we have done at the base in terms of privatizing the housing and providing enlisted and officer personnel with better housing for themselves and their families is something we greatly appreciate. Also, in the Air Force, they conduct roughly every 400 or so days an inspection called an isochronal inspection. The isochronal inspections that are now being provided for C-5 aircraft take place not only for the air mobility command C-5S but for those that are in the Air Reserve components and the C-5s that are part of the Air National Guards are all done at Dover Air Force Base.
The good news is not only are they done at Dover, because they are done at the Air Force base with people who know how to do this work, trained to do it, they are able to greatly reduce the amount of time it takes to produce the isochronal inspection--not to diminish the quality, the thoroughness of that inspection, but to reduce the time. Since time is money, we are saving some money there for the taxpayers.
Dover Air Force Base provides over one-quarter of all the Department of Defense airlift requirements. They have for some time. With the new cargo-handling facility coming on line, we expect to see that number go up. I understand in the last year or so, the last fiscal year, they completed more than 20 antiterrorism and force protection initiatives.
So to the team at Dover Air Force base that very much is a team, the active-duty wing, the Reserve wing, which works seamlessly together in providing airlift capabilities for our country and around the world, this old naval flight officer salutes you on a job well done. On behalf of every single Delawarean, congratulations and God bless. Keep up the great work.
Mr. President, I wish to take some time today to address a certain portion of H.R. 2881. Before I begin those remarks, I also wish to mention that there are a number of communities in Virginia that…
Mr. President, I wish to take some time today to address a certain portion of H.R. 2881. Before I begin those remarks, I also wish to mention that there are a number of communities in Virginia that experienced some pretty devastating weather effects yesterday as a result of high winds and tornadoes. I want the people in those communities to know we have been in continuous contact from my office with the Governor's office and we have people from our office down in these communities, and we are committed to ensuring that appropriate governmental assistance be made available and remain available until the effects of this unfortunate weather occurrence are remedied.
I wish to thank the chairman for bringing this bill to the floor, and in general, I support the bill. Our Nation's air traffic control systems are in serious need of modernization. We all know that. This bill in most ways is the right step in addressing those challenges. But I would like to take a few minutes today to talk about an issue that is vitally important to a lot of communities in and around Reagan National Airport in northern Virginia.
I am deeply troubled by a provision in this bill that would add 20 additional slots at Reagan National, including several potential amendments that could further harm that airport as well as Dulles International Airport and their neighboring communities.
We should recall that in 1987, Congress created the Metropolitan Washington Airports Authority in order to run Reagan National and Washington Dulles International Airports. The creation of the Airports Authority established a professional organization to operate the airports efficiently and represented a commitment to the surrounding communities regarding aircraft noise and traffic. I think that
bears repeating. Congress made a commitment to the residents of Alexandria, Arlington, and Fairfax County on the operation of Reagan National Airport when it transferred authority on these issues over to the Airports Authority. Those commitments were codified by Congress in the so-called perimeter and slot rules. Changes to these rules threaten to seriously degrade service to the airports, and they break the promises that were made to these surrounding communities.
In an ideal world, it sounds appealing to have more flights to Reagan National Airport, but the fact is that there are basic physical constraints to that airport that simply cannot be ignored. If anyone has ever tried to fly out of Reagan National during peak hours, they know that parking can be extraordinarily difficult, that ticket counters can be incredibly congested, and that the number of gates that park the jets is limited. I am told that an increase of just four airplane slots, for example, could result in an additional 400 to 500 passengers going through this airport an hour.
Nearly 10 years ago, the Airports Authority rebuilt much of Reagan National, transforming it into one of the most efficient airports in the Nation, as the facilities constructed were matched to the number of flights established by law. Any increase in the number of flights will overburden critical airport facilities and infrastructure, causing serious disruptions. New flights, obviously, would create greater demand for parking at a time when parking is difficult, affect gate access, and all these other areas I mentioned before.
When the Airports Authority upgraded their facilities in the 1990s, it did so with these slot and perimeter restrictions in mind. These were carefully crafted rules that work in harmony to manage this airport's capacity. Adding more flights would quickly exceed the physical capacity of the airport.
Importantly, the slot rules created an airport in balance with its surrounding neighborhoods. Because Reagan National is convenient to many air passengers, it is appreciated and well used. But this convenience comes at a heavy price for many of the airport neighbors in the form of aircraft noise and related traffic situations on the roads in these areas. Adding flights beyond what was agreed to in this legislation breaks the bond that was created with the neighbors of the airports. It unfairly burdens them for the sake of the convenience of others.
I note that the city of Alexandria, Arlington County, the McLean Citizens Association, the Mount Vernon Citizens Association, the Washington Council of Governments, and Virginia Governor Tim Kaine all oppose these changes.
I am particularly concerned that there is a tipping point with these matters. We have to be concerned about quality of life in these communities as we measure them against the convenience of using the airport.
It strikes me that the desire to change the slot and perimeter rules at Reagan National is not being driven by market demand but rather by a few airlines seeking a competitive advantage over others. By allowing existing rules to be altered further for a select class of airlines, Congress would be allocating this scarce resource for the convenience of a few and, again, in contradiction to the larger community need.
The bottom line question is, How many more additional aircraft and how much more noise should local citizenry have to endure before we have crossed this important threshold?
Congress added 24 new slots in 2000 and another 22 slots in 2003. If we continue to allow more flights this year, how many more are we going to have to continue to allow the next time this bill comes up?
The communities of Northern Virginia should not have to continually suffer for the convenience of a relative few.
I close by saying that the Congress made a commitment to these Virginia communities when it ceded control to the Airports Authority. It should honor those commitments. Let's allow the Airports Authority to run Washington's airports. I urge my colleagues to reject any changes to the slot and perimeter rules at Reagan National.
Mr. President, I yield the floor, and I suggest the absence of a quorum.
Bill Text
4 versions available
[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 5613 Placed on Calendar Senate (PCS)]
Calendar No. 719
110th CONGRESS
2d Session
H. R. 5613
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 24, 2008
Received and read the first time
April 28, 2008
Read the second time and placed on the calendar
_______________________________________________________________________
AN ACT
To extend certain moratoria and impose additional moratoria on certain
Medicaid regulations through April 1, 2009, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting the Medicaid Safety Net
Act of 2008''.
SEC. 2. MORATORIA ON CERTAIN MEDICAID REGULATIONS.
(a) Extension of Certain Moratoria in Public Law 110-28.--Section
7002(a)(1) of the U.S. Troop Readiness, Veterans' Care, Katrina
Recovery, and Iraq Accountability Appropriations Act, 2007 (Public Law
110-28) is amended--
(1) by striking ``prior to the date that is 1 year after
the date of enactment of this Act'' and inserting ``prior to
April 1, 2009'';
(2) in subparagraph (A), by inserting after ``Federal
Regulations)'' the following: ``or in the final regulation,
relating to such parts, published on May 29, 2007 (72 Federal
Register 29748)''; and
(3) in subparagraph (C), by inserting before the period at
the end the following: ``, including the proposed regulation
published on May 23, 2007 (72 Federal Register 28930)''.
(b) Extension of Certain Moratoria in Public Law 110-173.--Section
206 of the Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public
Law 110-173) is amended--
(1) by striking ``June 30, 2008'' and inserting ``April 1,
2009'';
(2) by inserting ``, including the proposed regulation
published on August 13, 2007 (72 Federal Register 45201),''
after ``rehabilitation services''; and
(3) by inserting ``, including the final regulation
published on December 28, 2007 (72 Federal Register 73635),''
after ``school-based transportation''.
(c) Additional Moratoria.--
(1) In general.--Notwithstanding any other provision of
law, the Secretary of Health and Human Services shall not,
prior to April 1, 2009, take any action (through promulgation
of regulation, issuance of regulatory guidance, use of Federal
payment audit procedures, or other administrative action,
policy, or practice, including a Medical Assistance Manual
transmittal or letter to State Medicaid directors) to impose
any restrictions relating to a provision described in
subparagraph (A), (B), or (C) of paragraph (2) if such
restrictions are more restrictive in any aspect than those
applied to the respective provision as of the date specified in
paragraph (3) for such provision.
(2) Provisions described.--
(A) Portion of interim final regulation relating to
medicaid treatment of optional case management
services.--
(i) In general.--Subject to clause (ii),
the provision described in this subparagraph is
the interim final regulation relating to
optional State plan case management services
under the Medicaid program published on
December 4, 2007 (72 Federal Register 68077) in
its entirety.
(ii) Exception.--The provision described in
this subparagraph does not include the portion
of such regulation as relates directly to
implementing section 1915(g)(2)(A)(ii) of the
Social Security Act, as amended by section 6052
of the Deficit Reduction Act of 2005 (Public
Law 109-171), through the definition of case
management services and targeted case
management services contained in proposed
section 440.169 of title 42, Code of Federal
Regulations, but only to the extent that such
portion is not more restrictive than the
policies set forth in the Dear State Medicaid
Director letter on case management issued on
January 19, 2001 (SMDL #01-013), and with
respect to community transition case
management, the Dear State Medicaid Director
letter issued on July 25, 2000 (Olmstead Update
3).
(B) Proposed regulation relating to redefinition of
medicaid outpatient hospital services.--The provision
described in this subparagraph is the proposed
regulation relating to clarification of outpatient
clinic and hospital facility services definition and
upper payment limit under the Medicaid program
published on September 28, 2007 (72 Federal Register
55158) in its entirety.
(C) Portion of proposed regulation relating to
medicaid allowable provider taxes.--
(i) In general.--Subject to clause (ii),
the provision described in this subparagraph is
the final regulation relating to health-care-
related taxes under the Medicaid program
published on February 22, 2008 (73 Federal
Register 9685) in its entirety.
(ii) Exception.--The provision described in
this subparagraph does not include the portions
of such regulation as relate to the following:
(I) Reduction in threshold.--The
reduction from 6 percent to 5.5 percent
in the threshold applied under section
433.68(f)(3)(i) of title 42, Code of
Federal Regulations, for determining
whether or not there is an indirect
guarantee to hold a taxpayer harmless,
as required to carry out section
1903(w)(4)(C)(ii) of the Social
Security Act, as added by section 403
of the Medicare Improvement and
Extension Act of 2006 (division B of
Public Law 109-432).
(II) Change in definition of
managed care.--The change in the
definition of managed care as proposed
in the revision of section 433.56(a)(8)
of title 42, Code of Federal
Regulations, as required to carry out
section 1903(w)(7)(A)(viii) of the
Social Security Act, as amended by
section 6051 of the Deficit Reduction
Act of 2005 (Public Law 109-171).
(3) Date specified.--The date specified in this paragraph
for the provision described in--
(A) subparagraph (A) of paragraph (2) is December
3, 2007;
(B) subparagraph (B) of such paragraph is September
27, 2007; or
(C) subparagraph (C) of such paragraph is February
21, 2008.
SEC. 3. FUNDS TO REDUCE MEDICAID FRAUD AND ABUSE.
(a) In General.--For purposes of reducing fraud and abuse in the
Medicaid program under title XIX of the Social Security Act, there is
appropriated to the Secretary of Health and Human Services, out of any
money in the Treasury not otherwise appropriated, $25,000,000, for each
fiscal year (beginning with fiscal year 2009). Amounts appropriated
under this section shall remain available for expenditure until
expended and shall be in addition to any other amounts appropriated or
made available to the Secretary for such purposes with respect to the
Medicaid program.
(b) Annual Report.--Not later than September 30 of 2009 and of each
subsequent year, the Secretary of Health and Human Services shall
submit to the Committee on Energy and Commerce of the House of
Representatives and the Committee on Finance of the Senate a report on
the activities (and the results of such activities) funded under
subsection (a) to reduce waste, fraud, and abuse in the Medicaid
program under title XIX of the Social Security Act during the previous
12 month period, including the amount of funds appropriated under such
subsection (a) for each such activity and an estimate of the savings to
the Medicaid program resulting from each such activity.
SEC. 4. STUDY AND REPORTS TO CONGRESS.
(a) Secretarial Report Identifying Problems.--Not later than July
1, 2008, the Secretary of Health and Human Services shall submit to the
Committee on Energy and Commerce of the House of Representatives and
the Committee on Finance of the Senate a report that--
(1) outlines the specific problems the Medicaid regulations
referred to in the amendments made by subsections (a) and (b)
of section 2 and in the provisions described in subsection
(c)(2) of such section were intended to address;
(2) detailing how these regulations were designed to
address these specific problems; and
(3) cites the legal authority for such regulations.
(b) Independent Comprehensive Study and Report.--
(1) In general.--Not later than July 1, 2008, the Secretary
of Health and Human Services shall enter into a contract with
an independent organization for the purpose of--
(A) producing a comprehensive report on the
prevalence of the problems outlined in the report
submitted under subsection (a);
(B) identifying strategies in existence to address
these problems; and
(C) assessing the impact of each regulation
referred to in such subsection on each State and the
District of Columbia.
(2) Additional matter.--The report under paragraph (1)
shall also include--
(A) an identification of which claims for items and
services (including administrative activities) under
title XIX of the Social Security Act are not processed
through systems described in section 1903(r) of such
Act;
(B) an examination of the reasons why these claims
for such items and services are not processed through
such systems; and
(C) recommendations on actions by the Federal
government and the States that can make claims for such
items and services more accurate and complete
consistent with such title.
(3) Deadline.--The report under paragraph (1) shall be
submitted to the Committee on Energy and Commerce of the House
of Representatives and the Committee on Finance of the Senate
not later than March 1, 2009.
(4) Cooperation of states.--If the Secretary of Health and
Human Services determines that a State or the District of
Columbia has not cooperated with the independent organization
for purposes of the report under this subsection, the Secretary
shall reduce the amount paid to the State or District under
section 1903(a) of the Social Security Act (42 U.S.C. 1396b(a))
by $25,000 for each day on which the Secretary determines such
State or District has not so cooperated. Such reduction shall
be made through a process that permits the State or District to
challenge the Secretary's determination.
(c) Funding.--
(1) In general.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated to the Secretary without further appropriation,
$5,000,000 to carry out this section.
(2) Availability; amounts in addition to other amounts
appropriated for such activities.--Amounts appropriated
pursuant to paragraph (1) shall--
(A) remain available until expended; and
(B) be in addition to any other amounts
appropriated or made available to the Secretary of
Health and Human Services with respect to the Medicaid
program.
SEC. 5. ASSET VERIFICATION THROUGH ACCESS TO INFORMATION HELD BY
FINANCIAL INSTITUTIONS.
(a) Addition of Authority.--Title XIX of the Social Security Act is
amended by inserting after section 1939 the following new section:
``asset verification through access to information held by financial
institutions
``Sec. 1940. (a) Implementation.--
``(1) In general.--Subject to the provisions of this
section, each State shall implement an asset verification
program described in subsection (b), for purposes of
determining or redetermining the eligibility of an individual
for medical assistance under the State plan under this title.
``(2) Plan submittal.--In order to meet the requirement of
paragraph (1), each State shall--
``(A) submit not later than a deadline specified by
the Secretary consistent with paragraph (3), a State
plan amendment under this title that describes how the
State intends to implement the asset verification
program; and
``(B) provide for implementation of such program
for eligibility determinations and redeterminations
made on or after 6 months after the deadline
established for submittal of such plan amendment.
``(3) Phase-in.--
``(A) In general.--
``(i) Implementation in current asset
verification demo states.--The Secretary shall
require those States specified in subparagraph
(C) (to which an asset verification program has
been applied before the date of the enactment
of this section) to implement an asset
verification program under this subsection by
the end of fiscal year 2009.
``(ii) Implementation in other states.--The
Secretary shall require other States to submit
and implement an asset verification program
under this subsection in such manner as is
designed to result in the application of such
programs, in the aggregate for all such other
States, to enrollment of approximately, but not
less than, the following percentage of
enrollees, in the aggregate for all such other
States, by the end of the fiscal year involved:
``(I) 12.5 percent by the end of
fiscal year 2009.
``(II) 25 percent by the end of
fiscal year 2010.
``(III) 50 percent by the end of
fiscal year 2011.
``(IV) 75 percent by the end of
fiscal year 2012.
``(V) 100 percent by the end of
fiscal year 2013.
``(B) Consideration.--In selecting States under
subparagraph (A)(ii), the Secretary shall consult with
the States involved and take into account the
feasibility of implementing asset verification programs
in each such State.
``(C) States specified.--The States specified in
this subparagraph are California, New York, and New
Jersey.
``(D) Construction.--Nothing in subparagraph
(A)(ii) shall be construed as preventing a State from
requesting, and the Secretary approving, the
implementation of an asset verification program in
advance of the deadline otherwise established under
such subparagraph.
``(4) Exemption of territories.--This section shall only
apply to the 50 States and the District of Columbia.
``(b) Asset Verification Program.--
``(1) In general.--For purposes of this section, an asset
verification program means a program described in paragraph (2)
under which a State--
``(A) requires each applicant for, or recipient of,
medical assistance under the State plan under this
title on the basis of being aged, blind, or disabled to
provide authorization by such applicant or recipient
(and any other person whose resources are material to
the determination of the eligibility of the applicant
or recipient for such assistance) for the State to
obtain (subject to the cost reimbursement requirements
of section 1115(a) of the Right to Financial Privacy
Act but at no cost to the applicant or recipient) from
any financial institution (within the meaning of
section 1101(1) of such Act) any financial record
(within the meaning of section 1101(2) of such Act)
held by the institution with respect to the applicant
or recipient (and such other person, as applicable),
whenever the State determines the record is needed in
connection with a determination with respect to such
eligibility for (or the amount or extent of) such
medical assistance; and
``(B) uses the authorization provided under
subparagraph (A) to verify the financial resources of
such applicant or recipient (and such other person, as
applicable), in order to determine or redetermine the
eligibility of such applicant or recipient for medical
assistance under the State plan.
``(2) Program described.--A program described in this
paragraph is a program for verifying individual assets in a
manner consistent with the approach used by the Commissioner of
Social Security under section 1631(e)(1)(B)(ii).
``(c) Duration of Authorization.--Notwithstanding section
1104(a)(1) of the Right to Financial Privacy Act, an authorization
provided to a State under subsection (b)(1) shall remain effective
until the earliest of--
``(1) the rendering of a final adverse decision on the
applicant's application for medical assistance under the
State's plan under this title;
``(2) the cessation of the recipient's eligibility for such
medical assistance; or
``(3) the express revocation by the applicant or recipient
(or such other person described in subsection (b)(1), as
applicable) of the authorization, in a written notification to
the State.
``(d) Treatment of Right to Financial Privacy Act Requirements.--
``(1) An authorization obtained by the State under
subsection (b)(1) shall be considered to meet the requirements
of the Right to Financial Privacy Act for purposes of section
1103(a) of such Act, and need not be furnished to the financial
institution, notwithstanding section 1104(a) of such Act.
``(2) The certification requirements of section 1103(b) of
the Right to Financial Privacy Act shall not apply to requests
by the State pursuant to an authorization provided under
subsection (b)(1).
``(3) A request by the State pursuant to an authorization
provided under subsection (b)(1) is deemed to meet the
requirements of section 1104(a)(3) of the Right to Financial
Privacy Act and of section 1102 of such Act, relating to a
reasonable description of financial records.
``(e) Required Disclosure.--The State shall inform any person who
provides authorization pursuant to subsection (b)(1)(A) of the duration
and scope of the authorization.
``(f) Refusal or Revocation of Authorization.--If an applicant for,
or recipient of, medical assistance under the State plan under this
title (or such other person described in subsection (b)(1), as
applicable) refuses to provide, or revokes, any authorization made by
the applicant or recipient (or such other person, as applicable) under
subsection (b)(1)(A) for the State to obtain from any financial
institution any financial record, the State may, on that basis,
determine that the applicant or recipient is ineligible for medical
assistance.
``(g) Use of Contractor.--For purposes of implementing an asset
verification program under this section, a State may select and enter
into a contract with a public or private entity meeting such criteria
and qualifications as the State determines appropriate, consistent with
requirements in regulations relating to general contracting provisions
and with section 1903(i)(2). In carrying out activities under such
contract, such an entity shall be subject to the same requirements and
limitations on use and disclosure of information as would apply if the
State were to carry out such activities directly.
``(h) Technical Assistance.--The Secretary shall provide States
with technical assistance to aid in implementation of an asset
verification program under this section.
``(i) Reports.--A State implementing an asset verification program
under this section shall furnish to the Secretary such reports
concerning the program, at such times, in such format, and containing
such information as the Secretary determines appropriate.
``(j) Treatment of Program Expenses.--Notwithstanding any other
provision of law, reasonable expenses of States in carrying out the
program under this section shall be treated, for purposes of section
1903(a), in the same manner as State expenditures specified in
paragraph (7) of such section.''.
(b) State Plan Requirements.--Section 1902(a) of such Act (42
U.S.C. 1396a(a)) is amended--
(1) in paragraph (69) by striking ``and'' at the end;
(2) in paragraph (70) by striking the period at the end and
inserting ``; and''; and
(3) by inserting after paragraph (70), as so amended, the
following new paragraph:
``(71) provide that the State will implement an asset
verification program as required under section 1940.''.
(c) Withholding of Federal Matching Payments for Noncompliant
States.--Section 1903(i) of such Act (42 U.S.C. 1396b(i)) is amended--
(1) in paragraph (22) by striking ``or'' at the end;
(2) in paragraph (23) by striking the period at the end and
inserting ``; or''; and
(3) by adding after paragraph (23) the following new
paragraph:
``(24) if a State is required to implement an asset
verification program under section 1940 and fails to implement
such program in accordance with such section, with respect to
amounts expended by such State for medical assistance for
individuals subject to asset verification under such section,
unless--
``(A) the State demonstrates to the Secretary's
satisfaction that the State made a good faith effort to
comply;
``(B) not later than 60 days after the date of a
finding that the State is in noncompliance, the State
submits to the Secretary (and the Secretary approves) a
corrective action plan to remedy such noncompliance;
and
``(C) not later than 12 months after the date of
such submission (and approval), the State fulfills the
terms of such corrective action plan.''.
(d) Repeal.--Section 4 of Public Law 110-90 is repealed.
SEC. 6. ADJUSTMENT TO PAQI FUND.
Section 1848(l)(2) of the Social Security Act (42 U.S.C. 1395w-
4(l)(2)), as amended by section 101(a)(2) of the Medicare, Medicaid,
and SCHIP Extension Act of 2007 (Public Law 110-173), is amended--
(1) in subparagraph (A)(i)--
(A) in subclause (III), by striking
``$4,960,000,000'' and inserting ``$3,790,000,000'';
and
(B) by adding at the end the following new
subclause:
``(IV) For expenditures during
2014, an amount equal to
$3,690,000,000.'';
(2) in subparagraph (A)(ii), by adding at the end the
following new subclause:
``(IV) 2014.--The amount available
for expenditures during 2014 shall only
be available for an adjustment to the
update of the conversion factor under
subsection (d) for that year.''; and
(3) in subparagraph (B)--
(A) in clause (ii), by striking ``and'' at the end;
(B) in clause (iii), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following new clause:
``(iv) 2014 for payment with respect to
physicians' services furnished during 2014.''.
Passed the House of Representatives April 23, 2008.
Attest:
LORRAINE C. MILLER,
Clerk.
Calendar No. 719
110th CONGRESS
2d Session
H. R. 5613
_______________________________________________________________________
AN ACT
To extend certain moratoria and impose additional moratoria on certain
Medicaid regulations through April 1, 2009, and for other purposes.
_______________________________________________________________________
April 28, 2008
Read the second time and placed on the calendar