Floor Statements

Mr. President, I am appreciative of Senator Schumer and the work we have been able to do together to move this legislation forward.

I rise today to speak in favor of S. 2244, the Terrorism Risk Insurance Act, or TRIA, program. As a cosponsor of this bill, I recognize Senator Schumer, Senator Kirk, Senator Heller, Senator Reed, and others for helping to put this bipartisan piece of legislation together.

Chairman Johnson and his staff also deserve a great amount of thanks for their strong efforts in moving this bill forward.

Working together, we developed a balanced bipartisan product that was literally unanimously supported in the banking committee 22 to 0. This bill we have put together allows the private insurance industry to absorb and cover the losses of all but the largest acts of terror--ones in which the Federal Government would likely be forced to step in, in any event, if the program were not there. Taxpayer protections have been increased in this reauthorization by moving more of the responsibility for losses on to private insurers.

For those who are not familiar with the program, TRIA was initially passed as a response to the unavailability of terrorism insurance in the wake of 9/11. The private market had already retreated in response to those terrorist attacks. It was then thought that a temporary program would allow the market time to develop products that would allow policyholders to protect themselves from terrorism losses.

More than a decade after the tragic events of 9/11, the temporary inability

to insure against terrorism has abated, and private capital is better positioned to take on more exposure to terrorism.

When the banking committee held its first hearing on TRIA's reauthorization last year, we discussed the ability of the private insurance market to step in to provide terrorism insurance if the TRIA Program expired. In that hearing, and in subsequent meetings with providers, policyholders, and stakeholders, we recognized on a bipartisan basis the continued difficulties associated with providing terrorism insurance required that we look again at extending the act.

Terrorism is difficult to predict. Therefore, the ability to develop products to insure against terrorism is very difficult to do. The size, severity, and frequency of attacks are hard to model. Also, attacks may be highly correlated, making it difficult for private insurers to diversify their risks.

Having TRIA in place was determined to be important. But if the market is too heavily reliant on Federal support, we may deter private companies from coming up with cost-effective solutions. That is why, instead of a straight reauthorization, I and others pushed for reforms to maintain the program and increase protections for taxpayers.

In order to do that, we examined each of the policy levers in the program. The bill marked up by the banking committee would increase the insurance industry's aggregate retention level and the company coinsurance levels. As the program stands today, the Federal Government would recoup any TRIA payments it makes up to $27.5 billion through post-event payments. This industry retention level allows the taxpayer to recover TRIA payments through an industrywide assessment on property-casualty policies. This aspect of the bill was last changed in the 2005 reauthorization. The bill before us today increases that recoupment level by $2 billion a year, to an overall level of $37.5 billion--an additional $10 billion. This is a significant reduction in the potential exposure and cost to taxpayers.

In addition, the bill increases the company coinsurance level from 15 percent to 20 percent over 5 years. This means that before the backstop is reached, each company will take on a greater portion of the losses above their deductible.

In order to get more private capital in the marketplace, Senator Flake has an amendment to create an advisory committee to promote the creation and development of private sector risk-sharing mechanisms. I support the addition of the Flake amendment and believe the advisory committee will find private sector solutions that will allow us to further decrease the program in future reauthorizations.

Before I conclude, I have a handful of letters in my possession here from groups across the country strongly supporting and encouraging that we adopt this legislation.

The U.S. Chamber of Commerce has listed this as a key vote. The Coalition to Insure Against Terrorism, which represents dozens and dozens of the financial sector interests across this country, recommends and encourages that we support this legislation, and the Mortgage Bankers Association, the National Association of Insurance Companies, the Property Casualty Insurers, the National Apartment Association, the National Multifamily Housing Council, and the American Builders Conference.

These are just a sampling of letters we have received from interests across the Nation that support this legislation. I ask unanimous consent that these letters be printed in the Record.

Getting terrorism risk insurance right is important in order to protect taxpayers and to limit economic and physical impacts of any future terrorist attacks on the United States. This bill will help us maintain a properly balanced terrorism risk insurance program that increases the Nation's economic resilience to terrorism. Again, I thank Chairman Johnson and Senators Schumer, Kirk, Reed, and Heller for their partnership in bringing this bill forward and encourage its adoption.

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

Mr. President, I wish to take this opportunity to make comments on a couple of the amendments that have been or will be presented to the bill.

First, with regard to the amendment presented by Senator Flake. As I mentioned in my opening remarks, I support this amendment. One of the issues we deal with in the reauthorization of TRIA each time we face it is the correct balance and the level of government protection and support that needs to be in place to help the market deal with major catastrophic events in the United States and the level of requirement we insist there be from the private sector and how they will step in and deal with these risks on an insurance basis rather than requiring the taxpayers to be the ultimate backstop.

Ultimately our objective should be and must be that the taxpayer be relieved of this kind of burden and that the private sector step in and cover the risks through our private sector insurance markets. I think we have a pretty broad consensus that we are not at the level yet where we can get there, but each time we have reauthorized TRIA, we have moved it closer to that objective, and this legislation itself moves it closer.

As I said in my introductory remarks, we have increased the retention level--in other words, the amount of money the private sector must pay back to the Treasury if the taxpayer is ultimately required to step in and backstop a catastrophic terrorist attack. This legislation will increase that amount by another $10 billion--from $27.5 billion to $37.5 billion. We are also increasing the amount of money which the private sector insurance industry must put up upfront before the government steps in and provides a backstop. We are increasing that from a 15-percent copay to 20-percent copay.

We are taking significant steps in this legislation to get to the ultimate objective of having the private sector fully handle the insurance risk due to a catastrophic terrorist attack.

Senator Flake has provided an amendment, which I support, that would help us create an advisory committee that will focus on this specific issue and help us to find private sector solutions to allow us to further decrease the program in the future reauthorizations. I think this is an incredibly important amendment, and I believe there is strong bipartisan support for it. It allows us to have advice and support from this advisory committee that would be created under his amendment to take further and more important steps toward achieving the ultimate objective of having to be able to eliminate the need for taxpayer involvement in dealing with catastrophic events such as a terrorist attack.

I strongly support the addition of the Flake amendment. I believe the advisory committee he proposes will find private sector solutions which will allow us to further decrease and ultimately eliminate the program in future reauthorizations.

Another amendment that has been discussed on the floor today by Senator Tester of Montana and Senator Johanns of Nebraska is the NARAB amendment, which is an amendment that will be added to this legislation. This is also an important piece of legislation from the banking committee and it is called the National Association of Registered Agents and Brokers, or NARAB. Again, it is a bipartisan piece of legislation that has strong support across the United States in various industries to try to allow our registered agents and brokers to have a more efficient and effective system in which to obtain necessary authorization to conduct their business nationwide.

I am an original cosponsor of this language because it simplifies the process of agent licensing across State lines while preserving the authority of State insurance regulators. This bill has broad support from the insurance community, including the National Association of Insurance Commissioners, the Independent Insurance Agents and Brokers of America, the National Association of Insurance and Financial Advisers, and the Council of Insurance Agents and Brokers.

The creation of NARAB will allow agents and brokers to focus on their responsibilities to their clients and spend

less time dealing with redtape. By reducing costs and increasing competition among insurance producers, we will generate lower costs and better service for consumers. Importantly, NARAB II deals specifically with marketplace entry and would not impact the States' jurisdiction over day-to-day authority in the insurance marketplace. This is a very critical point because I believe one of the biggest issues relating to this legislation is preserving and protecting States rights and State jurisdiction with regard to regulation of the insurance marketplace.

Insurance commissioners of the States will be able to better catch bad actors who, after losing a license in one State, move quickly to enter into another State. State regulators will serve on the board of NARAB with the same objectives they have as insurance commissioners--to protect the public interest by promoting the fair and equitable treatment of insurance consumers.

The idea for NARAB is now 14 years old. We have literally been working on it for that long, and I am hoping we can get this legislation across the finish line today.

These are two important amendments that will come forward today with regard to the TRIA legislation, and there are several more. As we move forward today I am hopeful we will make the kind of progress on these important and critical issues that will enable us to not only pass this legislation but to do so with a strong vote here in the Senate and then get us into a conference with the House so we can put this important legislation, which has been developed on a bipartisan basis, on the President's desk.

Far too often we are seeing gridlock in this Chamber. We have two pieces of legislation today where we have a bipartisan agreement and bipartisan support, and I think it is a good day for the Senate to see this kind of legislation moving forward.

I yield the floor.

Mr. President, I will just take a moment to speak about Senator Vitter's amendment, which I strongly support.

During Dr. Yellen's nomination hearing, I noted the need to fill additional vacancies at the Federal Reserve Board with individuals bringing balanced viewpoints. The President should nominate someone with community bank experience to the Board to fill at least one of the remaining vacancies.

Community banks play an important role in their local economies and face a disproportionate burden from our existing regulations. We should ensure that the perspective of these banks is represented in policymaking. That is what this amendment does, and I encourage my colleagues to support it.

I ask unanimous consent that the order for the quorum call be rescinded.

Mr. President, as we near the votes on this bill, I wish to take one more opportunity to speak in favor of the TRIA reauthorization legislation.

Again, I thank Senators Schumer, Heller, and Kirk and their staffs and Senator Reed for all their hard work in bringing forward this legislation.

I also thank Chairman Johnson and his staff for moving forward so quickly and aggressively on this legislation. Together, we were able to put together a bill that allows the program to continue to function while increasing the movement toward ultimate taxpayer protection.

As I mentioned before, we were able to approve this bill out of committee with a 22-to-0 unanimous vote. The agreement of all the members of the banking committee that we should move this bill forward speaks to the importance of this critical legislation and to the level of the added taxpayer protections we were able to build into it.

Our bill increases the level of losses that the private sector will absorb before reaching the Federal backstop. We do that by increasing the coinsurance level of any company participating in TRIA so that each company will shoulder a greater percentage of the losses. We also increase by $10 billion the level of mandatory post-event recoupments to $37.5 billion, which means that the taxpayer will ultimately recover all TRIA losses except in the most extreme events.

This bill will continue a program that reduces our economic vulnerability to terrorism, and I encourage my colleagues to support it.

One last time, I thank Senator Johnson and Senator Schumer for their strong support and for our ability to work together and break the mold, if you will, by having a bipartisan movement forward on this important and critical legislation.

With that, I yield the floor.

Mr. President, pursuant to section 904 of the Congressional Budget Act of 1974 and the waiver provisions of applicable budget resolutions, I move to waive all applicable sections of that act and applicable budget resolutions for purposes of the pending amendment, and I ask for the yeas and nays.

Mr. President, I wish to honor the life of former Idaho Governor John Victor Evans. Governor Evans will be missed, but his impact on Idaho and his legacy of dedicated service will endure.

Governor Evans and his family were Idaho pioneers. He was born and raised in Malad, ID. He attended Idaho State University, and like so many of his generation, he went to serve as an infantryman in World War II. After returning from the war, he earned a degree in business and economics from Stanford University.

John dedicated much of his life to public service. He served in the Idaho State Senate where he rose to the positions of majority leader and minority leader. He was mayor of Malad, the town he grew up in. In 1974, he was elected Lieutenant Governor before his terms as Idaho's 27th Governor from 1977 to 1987. He led Idaho through a number of challenging times: the historic settlement of water rights, the closure of the Bunker Hill Mine, and the difficult economic times much of the Nation saw in the 1980s. He also contributed to the national dialogue, having served in leadership positions in the Western Governors Association and National Governor's Association.

He was dedicated to community service and supported numerous efforts and organizations. He was a member of the Veterans of Foreign Wars, American Legion, the Fraternal Order of Eagles, and the Rotary Club, and he was a Mason. He also held a number of leadership positions for the Independent Community Bankers Association.

Following his retirement from public office in 1987, he became president of D.L. Evans Bank in Burley, ID. During his tenure, the bank grew from two banks to 21 banks, assisting thousands of Idaho residents and businesses.

Idahoans benefited greatly from his steady leadership in public office and in business. He was known for his open-door policy, strong work ethic and always taking the time to meet with fellow Idahoans. I extend my condolences to his wife Lola, brother Don, children, grandchildren, great-grandchildren and many other family members and friends. He will be greatly missed.

Mr. President, my colleague Senator Jim Risch joins me today in honoring Lemhi County commissioner Dr. Robert Cope, who is retiring from the Lemhi County Commission after 14 years of exemplary service.

Cope is not one to shy away from challenges; he faces them head on. He recognizes a problem and works diligently to fix it. This characteristic has been instrumental in his ability to address critical natural resources and environmental challenges. The common sense, wisdom, and humor he brings often to contentious issues have been invaluable in achieving solutions. He is truly a pleasure to work with and know. Throughout his time as commissioner, we have greatly valued his input and approach. Through his efforts with the Idaho Roadless Rule, addressing noxious weed control and many other land management concerns, he has helped bring about solutions important both locally and nationally. He is well-respected as a problem solver and consensus builder.

His public service is shaped by his deep personal knowledge and influenced by his distinguished career. Cope, a U.S. Presidential Scholar and Kansas State University College of Veterinary Medicine graduate, thankfully fell in love with Idaho and made Salmon, Idaho, home. He has spent nearly 40 years in veterinary practice, a critical part of the community, working with Lemhi cattle ranchers. He has been counted on to work cattle at all hours of the day and night, often in difficult conditions. The respect many have for his work and understanding of natural resources issues has inevitably led to his service in leadership roles on numerous boards and commissions, including the National Association of Counties, the U.S. Forest Service's National Planning Rule Implementation Committee and the Idaho Roadless Commission.

We have greatly valued your insight, Dr. Cope, and thank you for your hard work and outstanding service. We are fortunate that you chose to be an Idahoan. Congratulations on your retirement from the commission. We hope it provides you with more time to spend with your many friends and family, including your wife, Terrie. We wish you all the best.

Mr. President, my colleague Senator Jim Risch joins me today in honoring James R. Cooper, who is retiring from the U.S. Department of Energy, DOE, where he was a great asset to Idaho during his tenure with the Idaho Operations Office.

Jim is retiring as deputy manager for the Idaho Cleanup Project. His responsibilities have included management of spent nuclear fuel and high-level radioactive waste and the exhumation and disposal of cold- war era buried transuranic waste. His work advancing the environmental cleanup mission at the site has helped reduce risk to workers, the public, and the environment. It has also continued protection of the Snake River Plain Aquifer. Through his leadership, environmental cleanup projects have been finished ahead of schedule and under cost, which has enabled resources to be reinvested into furthering the cleanup efforts. Jim's commitment to timely and cost-effective management is commendable.

Prior to his position with the Idaho Cleanup Project, Jim worked as the facility and material disposition program manager and was responsible for ensuring the safe and compliant deactivation and decommissioning of nuclear test reactors and other retired nuclear facilities at the Idaho National Laboratory. During this time, he helped lead the cleanup team in successful deactivation and decommissioning projects at the Idaho Site. This included a visionary change in the approach of cleanup at the site.

Under Jim's management Idaho crews decontaminated and decommissioned more than 200 facilities. Recognizing this hard work, the Idaho contamination and decommissioning project was awarded the 2013 Secretary's Excellence and Achievement Award for completion of the project's work scope ahead of schedule and under budget. Jim is well respected for his strong leadership and ability to develop relationships and communications that are instrumental in advancing cleanup.

Thank you, Jim, for your more than 30 years of service, including 22 years of project management within DOE. You made great progress in the critical effort of cleanup. As you retire, you are truly leaving our State and Nation in better condition. Current and future generations will benefit from your hard work. You have much to be proud of for a job well done. Congratulations on your retirement. We thank you for your outstanding service and wish you all the best.

Mr. President, today I wish to honor the life and legacy of former Idaho State Senator Ralph Merrill ``Moon'' Wheeler, Jr. His nearly 40 years of service to the people of Idaho will not be forgotten.

With close to 40 years in elected office, Moon was dedicated to improving his community and his State. His public service included time as an Idaho State Senator, a member of the Idaho State House of Representatives, Power County commissioner, and American Falls City councilman and mayor. He was part of numerous Idaho State Senate committees, including on the Health and Welfare and Local Government and Taxation Committees, and interim committees. He also served as chairman of the Indian Affairs Council. Additionally, during his time as Power County commissioner, he was the legislative chair for the Idaho Association of Counties.

He had numerous other leadership roles, and he has been widely recognized for his outstanding leadership. This includes his tenure as the president of the Idaho Cities Association. Moon also served on the Idaho State University Alumni Board and on the Dean's Advisory Board for the College of Pharmacy. He earned the College of Pharmacy's 1999 Professional Achievement Award. In 1998, he was recognized with American Falls High School Education Foundation's first Outstanding Alumna Award, and Moon and his wife Ann were honored with the school's Heritage Award in 2009. These are just a few of his many achievements throughout his well-respected career and community involvement.

His considerable personal experience helped shape his public service. His family homesteaded in Idaho. He attended the University of Idaho and earned a pharmacy degree from Idaho State University. He utilized his degree as manager and owner of Rockland Pharmacy for more than 30 years. He was also a farmer, retaining the family farm until 2008. He was also an avid fly fisherman, camper, and gardener.

I extend my deep condolences to Ann, their children, grandchildren, great-grandson, and many friends and other family members. Moon built a legacy of dedicated service. He left a lasting mark in our communities through the many projects he spearheaded and supported and the countless lives he touched. His commitment to family and community and his exceptional work for Idahoans are central to his remarkable legacy of service.

Mr. CRAPO. Mr. President, I wish today to honor the life of Bryce Winterbottom, who left a legacy of kindness, care for others, hard work and warmth in his too few years of life.

Bryce lived life to the fullest, and had a strong grasp on the things that mattered most. He is remembered as usually having at least one of his children--Caleb, Maryanne, Henry, and Timothy--by his side as he worked on a variety of projects that included building rockets and cars, stargazing and landscaping. He is known as someone who worked hard and enjoyed the outdoors, spending time with family and friends, hiking, gold panning, camping and flying. Bryce encouraged those around him, he was uplifting and liked to help others. Bryce was an Eagle Scout who mentored Boy Scouts and helped advise in the Lewiston High School Skills USA program. He was also a member of the Nez Perce County Sheriff's Air Posse.

Bryce is greatly missed in his hometown of Lewiston, where he was part of the heart of the community. He attended elementary, junior, and senior high school in Lewiston, and went on to serve a mission for the Church of Jesus Christ of Latter-day Saints in Colorado Springs, CO, before obtaining bachelor's and master's degrees in mechanical engineering from the University of Idaho and then working for Schweitzer Engineering. He married his high school sweetheart Amanda, and they built a wonderful family together.

May Bryce's love of life, service to others, enthusiasm, warmth and devotion to family live on in his children. I extend my deepest condolences to Amanda, Caleb, Maryanne, Henry, and Timothy; his parents Ed and Chris, his brothers and sisters, and his many other loved ones and friends. Bryce's light will burn bright in this world through the hearts of those who had the good fortune of being part of his beautiful life.

Madam President, I wish to honor Gordon Stewart, who is retiring from serving as the air traffic manager at Boise Airport.

Gordon channeled his early exposure to aviation, through family members who owned airplanes, into a distinguished career. Gordon got his start in aviation through his military service. He served for 3 years in the U.S. Army, through which he received his air traffic control training. He was a distinguished graduate at Fort Rucker, AL, in both basic and advanced individual training. He then went on to work at various helicopter training airports,

serve in Vietnam, and receive valuable experience working with a wide variety of aircraft at the joint use airfield at Fort Huachuca, AZ.

He utilized the experience and training obtained through his military service in his numerous Federal Aviation Administration assignments that built up his deep knowledge of air traffic control. After returning to his family farm in Montana and serving as acting manager at the Flight Service Station in Cut Bank, MT, he spent 3 years at Missoula International Airport, where he learned about nonradar approach. He went on to work for more than a year at Billings Logan International Airport and then at the Salt Lake City Terminal Radar Approach Control, TRACON, before returning to the Missoula International Airport, where he served as acting air traffic manager before obtaining a position at Boise Airport.

Gordon worked as a supervisor for 12 years at Boise Airport before becoming the air traffic manager for the past nearly 12 years. His leadership during his time there has been instrumental in making the airport successful. The numerous recognitions he received for his outstanding work include multiple facility of the year awards and a Fire Fighting Award for support of fire fighting in the Northwest Mountain Region.

Gordon's effort to remain true to his core values and manage the same way he has parented--fair but firm--has been exemplary. Integrity has been a central element of Gordon's work. He can always be counted on to do what is right. His principled approach to working through considerable challenges has been indispensible. This especially includes his work on the development of the new Boise Air Traffic Control Tower and the effort to locate the TRACON.

Thank you, Gordon, for your outstanding and dedicated service. As you retire, you deserve to reflect on your extraordinary career with pride in a job well done. I hope that retirement affords you more time with your friends and family, including your six children. I congratulate you on your retirement and wish you all the best.

Madam President, I wish to honor a true Idaho original, a man who set the bar high for ranching and conservation in my State and established a world-class trout fishery.

Every so often, a generation produces remarkable characters-- individuals who set their sights high and leave the bar higher for us. Bud Purdy of Picabo, ID, was one of those people. While he could not claim Idaho by birth, he more than proved to be an Idahoan through his experiences, work ethic, and inclinations. He began working on a family sheep ranch in Blaine County at Picabo, near Sun Valley, during summers in 1928. Not long after, a young Bud Purdy climbed nearby Hyndman Peak at over 12,000 feet. He graduated from college by the time he was 20, and despite an offer to go into banking, he chose to manage that family ranch. He was a hunting partner for writer Ernest Hemingway. There wasn't much Bud Purdy could not do. He was still flying his own airplane at the age of 94. He was--and is--considered an Idaho legend.

Bud made his mark in Picabo, Sun Valley, and Idaho. Near his ranch there is a creek that is world-renown--Silver Creek. It was along that creek that Bud joined a young Hemingway, actor Gary Cooper, and many others to fish and hunt birds. When Hemingway moved to Idaho in 1959, he had already been hunting with Bud for many years. The Purdy ranch consisted of 6,000 acres along Silver Creek. The waters of that creek are so crystal clear that you can see the trout. I have been one of those lucky enough to fish there. Bud and his family were visionaries. They donated a 3,500 acre easement to the Nature Conservancy that meant the land could never be subdivided, and the world-class fishery remains there today, just like it was when Bud arrived 86 years ago.

Bud felt all ranchers should have a strong conservation ethic, and he was one of the first to employ rest-rotation grazing to protect the land and water. Bud got that message out as a founder of the Idaho Rangeland Resource Commission. He was recently inducted into the Idaho Hall of Fame, joining the likes of Hemingway, poet Ezra Pound, skier Picabo Street, former U.S. Senator William Borah, and agri-businessman J.R. Simplot.

It was important to Bud to pass along the message to care about the land, and he has succeeded admirably. As he told writer Steven Stuebner in an article for the Rangeland Commission about the ranching profession:

Once you get started in it, you're hooked. Every morning,

you get up and do something different. You turn out on the

range and ride a horse every day. Even now, I go out and make

sure the water is OK, check the fences and make sure the

gates are closed. It's just a constant going out there and

doing it. I was never a cowboy, but I've ridden a million

miles.

That description of the ranch life in Central Idaho sounds a long way from Capitol Hill, but the hard work ethic and the dedication to principle is what made Bud Purdy an Idaho, and American, hero. His life of service is something we can all aspire to, or as Idaho Governor Butch Otter said, ``someone whose life was a lesson in cowboy ethics, common sense, stewardship and the value of hard work and perseverance''.

I ask unanimous consent that the order for the quorum call be rescinded.

I rise to discuss the nomination of John Owens to the Ninth Circuit Court of Appeals.

Mr. Owens, who currently works as a lawyer in California, has been nominated to fill the seat that has been held for the last 25 years by Judge Stephen Trott of Idaho.

Judge Trott took senior status on December 31, 2004, making the Trott seat the longest current vacancy of any seat on the Federal circuit courts.

That doesn't mean that there haven't been previous attempts to fill this seat. In a letter to the Idaho Senate delegation in 2003, then White House Counsel Alberto Gonzales stated:

I also want to make clear the President's commitment to

nominate an Idahoan for a second Ninth Circuit seat if Judge

Trott retires or assumes senior status while President Bush

is still in office. Idaho has had two Ninth Circuit seats for

more than a decade, and that allotment is appropriate.

As such, when Judge Trott did take senior status the following year, President Bush nominated Judge Randy Smith of Idaho to the Trott seat. At the same time another nominee was pending in the Senate to fill another Idaho vacancy on the Ninth Circuit.

Regrettably, Senate Democrats used the longstanding Senate rules that were available at that time to block the confirmation of both Idaho nominees. The reason given by the California delegation for blocking the Randy Smith nomination to the Trott seat made clear that the objections had nothing to do with Judge Smith's qualifications and that they were willing to support his confirmation to the other Idaho seat, the Nelson seat, which is ultimately what happened.

As such, the California delegation blocked Randy Smith's nomination to the Trott seat, not because they believed he was not qualified but because they wanted the seat moved to California--and he was not a Californian.

The so-called Trott seat on the Ninth Circuit has been held by five different judges, including Judge Trott, since it was first created in 1935.

The first judge to hold that seat was from Oregon. The next two judges to hold that seat were from Washington State. Judge Sneed of California, the only judge in that seat to maintain his chambers in California, was the next to hold the seat. Finally, as I mentioned earlier, Judge Trott was the next to hold that seat, and he has maintained his chambers in Idaho for his entire 25 years on the bench.

Despite the fact that California already has more than 20--that is right, more than 20--active and senior judges on the Ninth Circuit Court of Appeals, the California delegation apparently believes that Californians have been denied justice for the past 25 years and that the only remedy is to add yet another California judge, leaving the State of Idaho with only one, single active judgeship on the Ninth Circuit. Senator Risch and I had multiple conversations with the White House counsel in President Obama's first term where we expressed our interest in working with the White House and the California delegation to reach a resolution to this long-standing dispute in a way that would satisfy both delegations.

Clearly, the Idaho delegation and the Idaho people are disappointed by the President's decision to decline to nominate an Idahoan to fill the Trott seat.

It is even more disappointing that declining to submit any nominee for the Trott seat in his entire first term, the President has chosen to wait until the Senate Democrats unilaterally broke the longstanding Senate rules regarding the consideration of nominees in order to push through this nomination, rather than working with the Idaho and California delegations to develop a mutually agreeable solution.

If these new Senate rules had been in place when Judge Trott first took senior status, the California delegation would not have had the opportunity it took advantage of to block the appointment of Idaho nominees to this seat.

This dispute is not about the qualifications of Mr. Owens. He has been rated unanimously well qualified by the American Bar Association, and I would be happy to work with the California delegation to support his nomination for the next California vacancy on the Ninth Circuit.

But I cannot support a process that is the result of an unfair breaking of the Senate's rules in order to push through a nominee that takes away a seat that has been an Idaho seat on the Ninth Circuit for 25 years, leaving Idaho with only one seat on the Ninth Circuit Court of Appeals.

Sadly, because of the Senate Democrats' rule change, the Idaho delegation will not have the opportunity to stop this effort.

Therefore, I will vote no on this nomination, and my hope is that, if confirmed, Mr. Owens will make the same decision that Judge Trott did 25 years ago by also choosing to maintain his chambers in Idaho.

I yield the floor and I suggest the absence of a quorum.

Mr. President, I wish to recognize the outstanding work of Shauna Jean Hill Ringel, who is retiring after 22 years of employment with Madison County, ID.

Shauna is a native of St. Anthony, ID. She moved to Rexburg with her husband, Brad, in 1970, and she raised three children, Ryan, Shelli and Tracy, in Rexburg. After the death of her husband in 1987, Shauna worked at Madison School District's Burton Elementary School as the school's secretary. She began working for Madison County in 1992, and she served as a clerk of district court, 7th Judicial District. She moved to the Madison County Clerk's office in 1996, and she worked both as deputy county clerk and as Madison County's elections clerk. In 2004, she joined the planning and zoning office. She has participated in emergency management training and helped develop emergency plans for Madison County.

The community and our State have been fortunate to have benefited from her devoted assistance that includes significant public service and volunteer work. She served as the co-chair of the Madison County Centennial Committee and coordinated a year of festivities recognizing the pioneer spirit of current and former residents of Madison County. She is also active in the local chapter of the American Red Cross through which she has assisted her friends and neighbors in Red Cross evacuation centers for flooding and wildfire emergencies. She assists families in the Upper Snake River Valley whose lives are disrupted by house fires. Shauna was also deployed to New Jersey to assist with the recovery after Hurricane Sandy, and she assisted with recovery efforts in Montana after devastating wildfires.

Shauna is viewed as someone who can be counted on to go the extra mile and put the team ahead of herself. She is respected for her steady, loyal and reliable efforts. Madison County Commissioner Kimber Ricks characterized Shauna as ``a go to' team player. She's always been hard working and reliable; always counted on for good judgment and good nature; and always that sense of humor that helps so much in tough situations . . . Shauna will be missed, but never forgotten.''

Thank you, Shauna, for your outstanding and dedicated service. I hope that retirement affords you more well-deserved time with your friends and family, including your children and three grandsons, and opportunities to do all the activities you love the most. I congratulate you on your retirement and wish you all the best.

Mr. President, I rise today to congratulate athletes with strong Idaho ties who competed in the Sochi 2014 Winter Olympics and contributed to three of the U.S. Olympic team's 28 total medals. Their dedication is inspiring.

Idaho-connected Olympians earned two gold medals and one silver medal in the Olympic Games in Sochi. Kaitlyn Farrington, who was raised on a ranch in Bellevue, Idaho, earned a gold medal competing for the first time as an Olympic snowboarder in the halfpipe competition. Hilary Knight of Sun Valley competed once again in women's hockey in the 2014 Winter Olympics where the team earned a silver medal. Additionally, Sage Kotsenburg, a Coeur d'Alene native, took home the first-ever gold medal in the new men's slope style event and the first U.S. gold medal in the 2014 Winter Olympics.

Six other remarkable athletes also represented our state and nation well on the U.S. Olympic team. Nick Cunningham, a graduate of Boise State University and Sergeant in the New York National Guard, earned 12th place in both the two-man bobsled and four-man bobsled competitions. Erik Fisher, an alpine skier from Middleton, Idaho, went to Sochi as part of the U.S. Olympic team. Simi Hamilton, a Sun Valley skier, competed in cross country skiing, and he placed 6th in the men's team sprint classic and 11th in the men's 4x10k relay. Nate Holland, who grew up in Sandpoint, Idaho, placed 25th in men's snowboardcross in Sochi. Jessika Jenson of Rigby competed in the first Olympic snowboard slopestyle competition in Sochi where she finished 13th. Sara Studebaker from Boise competed in her second Olympics in biathlon competitions at Sochi where she helped earn a 7th place finish in the Women's 4x6k Relay Biathlon.

These athletes, like their fellow Olympic athletes from communities across the country and around the world, inspire us to push beyond the limits of what we may think is possible. They commit themselves to significant training and turn that preparation into achievements. Congratulations to Idaho and American Olympians for their extraordinary efforts leading up to and during these Olympics.

I ask for the yeas and nays.

Madam President, Dr. Yellen's nomination is an opportunity

to review the unprecedented actions of the Federal Reserve over the last several years.

Five years ago, the Fed began using unconventional monetary policy tools, aggressively pursuing quantitative easing and holding interest rates near or at zero percent.

The Fed now has a balance sheet of $4 trillion, a level roughly equal to one-quarter of annual U.S. economic output.

The Fed has accumulated this balance sheet by buying Treasuries and mortgage-backed securities at a pace of up to $85 billion each month.

I have been a long-time critic of the Fed's quantitative easing purchases.

Several noted economists have called into question the benefits of these purchases, suggesting they may be outweighed by risks.

These policies, specifically purchasing billions in long-term bonds, can distort pricing in markets and lead to excessive risk taking, creating ``bubble-like'' conditions according to experts like Larry Fink at BlackRock.

Bill Gross of PIMCO stated that ``all asset prices, whether it be bonds, stocks, or alternative assets are basically mispriced, artificially elevated'' as a result of the Fed's actions.

I am concerned that the markets have become exceedingly reliant on quantitative easing, circumventing pure economic fundamentals in favor of government-stimulated economy.

Although a reduction in the pace of asset purchases will finally begin this month, in her nomination hearing Dr. Yellen would not commit to a firm deadline for cutting off purchases.

Even after the Fed stops adding to its balance sheet, the question of unwinding the balance sheet remains.

Chairman Bernanke and others have suggested that the Fed might maintain the size of the balance sheet for some time, rather than reducing it to a normal level.

This would mean that the money created to purchase those assets would remain in place.

The President of the Richmond Federal Reserve Bank has called this ``tinder on the books of the banking system.''

He describes a process where banks begin to rapidly lend out those reserves, creating an increase in deposit growth that would put inflationary pressure on the economy.

All of this unconventional monetary policy has failed to produce the benefits that were promised.

A noted economist recently observed that over the last 4 years, the share of adults who are working has not increased and ``GDP has fallen further behind potential as we would have defined it in the fall of 2009.''

All that is to say that despite unprecedented amounts of monetary intervention, the economy has barely responded.

I voted against a second term for Chairman Bernanke due to my concerns with the Fed's unconventional monetary policy.

I voted against Dr. Yellen in 2010 for the position of Vice Chair for similar reasons.

Since joining the Board as Vice Chair, Dr. Yellen continues to promote the policies that led me to vote against her initially.

My position remains unchanged, and I will not vote in support of her nomination.

In addition to unprecedented monetary policy, the next Fed Chair will finalize several key financial regulatory reform rules.

These rules must balance the financial stability with the inherent need for markets to take on and accurately price risk.

They must be done without putting the U.S. markets at an undue competitive disadvantage or harming consumers with unintended consequences.

The Chair of the Federal Reserve must understand how different rules interact with each other, what impact they have on the affected entities and the economy at large.

For example, a number of community banks were surprised by certain provisions in the recently adopted Volcker rule pertaining to their ownership of certain securitized products, including trust-preferred securities.

Notwithstanding assurances by regulators that the final Volcker rule would not disrupt their business model, community banks may now potentially have to divest hundreds of millions of dollars in assets to comply with the rule.

I am concerned that the rush to finalize the Volcker rule before year's end--for purely political reasons--was a cause of this carelessness by regulators with respect to community banks.

It remains to be seen what other unintended consequences will result from the Volcker rule's adoption.

Just as some worried that we did not have enough regulations on the books to prevent the economic crisis, some of us worry that the post- crisis response will result in a regulatory regime that stifles growth and job creation.

The Chair of the Federal Reserve must understand the need for that balance and how to carefully manage competing demands without harming the economy.

I appreciate Dr. Yellen's comments about the need to monitor the risks to financial stability that current monetary policy creates.

I also share her stated concerns about the need to avoid ``one-size- fits-all'' regulations on different kinds of financial institutions, especially ensuring that community banks are subject to ``less onerous'' supervision and regulation.

However, given my concerns about the Fed's monetary policy and Dr. Yellen's support of quantitative easing and excessively low interest rates, I will not vote in favor of her nomination.

I yield the floor. I suggest the absence of a quorum.

Mr. President, today I wish to recognize the outstanding work of an invaluable member of my staff. Karen Ponzurick Brown, who is really quite young, has already reached 25 years of service on Capitol Hill, and she has chosen to retire. For 7\1/2\ years, she has worked tirelessly in a job that calls for 24/7/365 attention. I cannot thank her enough for her dedicated assistance. And I also thank her husband Paul who has shared his wife's attention with me for these many years.

Karen came to work for me at a time when technology was rapidly changing for the position that she held. While she had never worked in this type of capacity before, her sharp mind and intuitive sense quickly assessed how to put together a system that ensured Idahoans received priority attention on my schedule. She has been instrumental in creating efficiencies and effective processes in our office and in my time. Karen is conscientious, structured and hardworking. She was accessible to anyone who needed her and was a mentor to many of our staff. Her calm demeanor has soothed many agitated callers seeking appointments. Her sense of decorum has provided me and my staff with a greater sense of professionalism. Her ability to anticipate challenges has saved the day many times over. I have great respect for her thorough, diligent and well-thought-out approach to tackling any problem, and I will truly miss having her input on the many challenges that are encountered in our everyday workplace.

But above all her professional qualities, Karen has been a great friend and trusted advisor, and there are no words strong enough to express my gratitude for that friendship, which I hope will continue. No matter the challenges at hand, she always strives to meet and exceed expectations. Karen has been a great asset to me, my staff, Idahoans and countless others throughout her two and a half decades of committed public service. Thank you, Karen, for your dedication. Your confident and strong guidance will truly be missed, and I wish you all the best. Retirement has been a tough choice for you, but I know that you are at peace with that

decision, and you are certainly young enough to enjoy it!

Madam President, I rise today to discuss the nomination of Representative Watt to lead the Federal Housing Finance Agency, or FHFA. Unfortunately, I cannot support this nomination, and I must urge my colleagues not to support it either.

I did not come to this decision lightly, and I regret we are placed in a situation where we cannot support a well-liked Member of Congress. However, by making a political appointment, the President has ignored the importance that the head of the FHFA be independent and viewed as nonpolitical. This is not a cabinet position, where the nominee is supposed to be an advocate for the President. Instead, this is an independent agency with a highly complex task impacting our entire economy, and it is for this reason many Senators noted the need to avoid politics and to emphasize the technical expertise needed to fill this position.

Regrettably, this did not occur, and we stand here today with the majority party apparently willing to confirm a political figure to this highly technical position. Worse yet, they appear to be ready to do it in a highly political manner that ignores decades of Senate rules and precedents.

Representative Watt has led a long and distinguished career in the House of Representatives and in legal practice. He is well liked by his colleagues, regardless of whether they see eye to eye with him on the issues, and he has a tremendously compelling personal story. My opposition to this nomination has nothing to do with Representative Watt from a personal perspective. To the contrary, there are many positions in government to which Representative Watt could have been easily confirmed.

In demonstration of that point, it is worth noting that most of the President's nominees that have come through the Banking Committee have been confirmed with strong bipartisan votes, often with unanimous consent. In fact, four nominees who appeared at a nomination hearing with Representative Watt were all approved by voice vote.

However, this position is distinctly unique within our government. Thus, our evaluation of any nominee requires additional scrutiny. The Director of the FHFA is conservator of Fannie Mae and Freddie Mac, which have operated under Federal control since they were taken over in 2008 because they didn't have enough capital to support expected losses.

Since that conservatorship began, we have seen the bill to the American taxpayers rise to nearly $200 billion. The Housing and Economic Recovery Act, or HERA, established the FHFA and the rules of the conservatorship. It specifically grants the FHFA the power to operate Fannie and Freddie ``with all the powers of the shareholders, the directors, and the officers,'' so long as they remain in conservatorship.

FHFA's conservatorship of Fannie and Freddie triggered those broad powers and the Director of the FHFA now stands alone as the regulator, the top executive, and the shareholder of Fannie Mae and Freddie Mac and their combined $5 trillion of portfolio. Because of this immense power vested in the Director of the FHFA, it is a position that requires an in-depth knowledge of and experience with numerous aspects of the housing markets and mortgage industries.

The statute explicitly requires that, at a minimum, any nominee:

. . . have a demonstrated understanding of financial

management or oversight, and have a demonstrated

understanding of capital markets, including the mortgage

securities markets and housing finance.

Additionally, to be successful, it is logical that any nominee should also have knowledge of and experience with investment portfolios, the operations of both public and private insurance and guarantees, and the management skills necessary to oversee the nearly 12,000 employees employed by both entities.

Since this position has virtually unchecked power to control two multitrillion dollar companies, and because the companies control so much of our mortgage-backed securities market, the decisions of the FHFA Director will have tremendous impact on our housing market and, collaterally, on the global market.

If we are to give anyone this much power, we must know for certain that he has the experience to know how to make the right choices and, frankly, the political independence to make those choices, even if they are unpopular.

One reason this is so important is the impact on the taxpayer. Even a few basis points of losses could mean billions in the context of multitrillion dollar companies. That would be on top of the nearly $200 billion the taxpayers have already shouldered.

With those unique risks in mind, the FHFA has taken great strides during the conservatorship to shore up the business practices of Fannie Mae and Freddie Mac. Underwriting standards have been tightened, portfolio holdings have been reduced, guarantee fees have been increased, and risk is being gradually transferred from the taxpayer to the private sector.

With these changes, the revenues of Fannie and Freddie have increased, their risks have decreased, and, for now, they have regained a certain amount of profitability. This current profitability creates its own set of challenges and questions. But one thing is certain: Any return to policies of the past, whether with social goals in mind or merely by mistake due to lack of technical experience, could expose the taxpayer to immense risk.

In addition to the risks associated with their current operations, the Director will also have a substantial impact on the prospects of the success of these reforms. While Congress and the White House will determine how to reform and strengthen our housing finance system, we need to be able to rely on the director of the FHFA for advice and guidance as we proceed. For this to work effectively, the FHFA Director will need to be seen as a technical expert who is not viewed as a political advocate for the President.

The Director of the FHFA must have the market experience to understand how any proposed changes would or would not work, how they would impact access to mortgages while protecting taxpayers from losses, and how they would affect our housing market and economy as a whole.

One example: There is a lot of interest in developing markets in a manner to ensure there is adequate private capital taking the first loss to protect the taxpayer, if there is to be some sort of government guarantee in the future. Some proposals call for the development of various private-sector risk-sharing mechanisms, including senior subordinated deal structures, credit-linked structures, and regulated bond guarantors.

Many are looking at what the FHFA has already begun working toward as a test for the viability of capital markets' risk-sharing transactions. These risk transfer deals--known within

Freddie as the STACR deal, and within Fannie as the NMI and C-Deals-- are important examples of how private capital can partake in this market at a higher level. They are also critical examples of why the FHFA Director must have a deep and sound understanding of the demands of capital market investors.

In constructing and monitoring these deals, we need to know that decisions in how to balance the necessity of encouraging private markets with the protection of the taxpayers are being made based upon effective market analysis, absent the political preferences of one individual.

Another important aspect of the transition will be development of the common securitization platform. FHFA has noted that the GSEs' infrastructures are ineffective when it comes to adapting to market changes, issuing securities that attract private capital, aggregating data or lowering barriers to market entry. As such, there must be an updating and continued maintenance of the enterprises' securitization infrastructure.

This is an incredibly complex undertaking that will take years to develop, but it is an essential component of most reform proposals. Because of this, it is incredibly important the Director, on day one, has the technical expertise and the commitment to establish this potential utility similar to ones used in securities markets.

All of us are currently witnessing the consequences of political people leading technical platform development as we watch the continued failures of the rollout for ObamaCare. We cannot afford the same mistakes in the context of our $5 trillion mortgage market.

The management of the current assets of Fannie and Freddie is another essential component of the Director's task, for many reasons, both currently and in the future. When Congress passed HERA authorizing the FHFA Director to appoint the agency conservator of the GSEs, it authorized FHFA to put the GSEs in a ``sound and solvent condition,'' and to ``preserve and conserve the assets of the properties'' of the GSEs.

Congress very specifically intended that the assets of Fannie and Freddie be managed in such a way to maximize payments to the Treasury in exchange for bailing out the GSEs in 2008 and to maximize their value in whatever system is designed for the future. Acting Director DeMarco has done a commendable job fulfilling this task.

However, some believe that other statutory provisions trump this mandate and advocate using the GSEs in manners they believe would achieve other policy goals. Representative Watt noted at his confirmation that, if confirmed, he would decide whether there is sufficient capital to fund various social programs.

In order to ensure the taxpayers are made whole and to best position the secondary market for reform, we cannot afford the FHFA Director to make any decisions that do not first prioritize the preservation and conservation of taxpayer assets. So long as Fannie Mae and Freddie Mac are in conservatorship, profits accumulated by the GSEs should not be used to fund social programs.

Additionally, we cannot return to any of the policies that contributed to the housing crisis, such as further pressing the GSEs' affordable housing goals. Decisions affecting social housing policy should be made through congressional action on housing financing reform.

One final yet incredibly important element of the unique qualifications is regulatory interaction. In a new housing finance system, the already complex web of regulatory interaction between various Federal banking regulators and Federal and State regulators becomes further muddled. State insurance regulators and State banking supervisors must communicate effectively with Federal counterparts.

As this system is being built, the FHFA must coordinate effectively with prudential banking regulators and the CFPB to make sure we are not bogging down our economy with duplicative regulation. To accomplish this the Director needs not only to have an understanding that is built of highly technical expertise, but this person must be seen by other regulators as acting without political intent.

For all of these reasons, and many more, the conservator must be an apolitical financial regulator with the technical expertise who will resist political pressure from all sides of the political spectrum.

Joseph Smith, the last nominee for this position, failed to win confirmation by the Senate because of concerns over whether he was independent enough. At the time of Representative Watt's nomination, the White House was fully aware that these concerns have only been heightened since then.

In the wake of repeated attempts by outside political groups and individuals to influence the decisions of the conservator and in view of the countless complex decisions--of which I have only mentioned a few--numerous Senators repeatedly called for a technocrat rather than a political figure. However, rather than acknowledging the unique aspects of this job, the White House chose to ignore calls to emphasize technical expertise and political independence in their search. As a result, their nominee failed to be confirmed by this body just a few weeks ago. Yet again the White House failed to accept the advice of the Senate.

Today, because of a historical rewrite of Senate rules, we are now facing another vote. Instead, this time the White House and the Democrats in the Senate chose to break the rules of this body so that they could push through Representative Watt and other nominees in partisan votes. I am disappointed with the White House and those in the Senate who supported this rewrite of our rules, and at some time we will all likely be disappointed that these are the rules of this body moving forward. However, I continue to be opposed to this nomination and urge my colleagues to vote no today when the vote comes before us.

I yield the floor.