Congressional Record, Volume 141 Issue 2 (Thursday, January 5, 1995)

[Congressional Record Volume 141, Number 2 (Thursday, January 5, 1995)]
[Senate]
[Pages S481-S511]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mr. McCAIN:
S. 150. A bill to authorize an entrance fee surcharge at the Grand
Canyon National Park, and for other purposes; to the Committee on
Energy and Natural Resources.

the grand canyon public/private partnership act

Mr. McCAIN. Mr. President, today I'm introducing legislation
to help finance desperately needed improvements at our Nation's premier
national park--our great pride and joy--the Grand Canyon.
The measure would authorize the Secretary of the Interior to
establish a special public-private partnership account, under which
entrance fee revenues would be matched with private donations to help
fund vital projects called for in the park's general management plan.
This legislation will provide additional resources for the Grand
Canyon at a time when park needs far outstrip the ability of the
Treasury to fund them. The measure enjoys the support of two important
organizations dedicated to protecting the interests of the Grand
Canyon: The Grand Canyon Trust; and, the Grand Canyon Natural History
Association.
We in Arizona are proud to be home to the crown jewel of our National
Park System. We take immense pride in the park and appreciate the
awesome responsibility with which our country has been vested as
stewards of this world class resource. We also understand that we have
much work to do in order to meet those responsibilities.
Resources are desperately needed to repair the park's aging
infrastructure. Compare that need to the canyon's park budget this year
which is only $13 million--a gap as wide and formidable as the Grand
Canyon itself.
The need is enormous and it is growing. Last year, 5 million people
visited the Grand Canyon--a number that will continue to grow at a
rapid pace. The ever increasing demand will place even more stress on
the park's aging and needy infrastructure.
To address future needs, the National Park Service has been working
diligently on the park's general management plan. The plan will guide
management prerogatives into the next century. The draft plan which was
released last year, identifies projects and programs which will help us
to cope with the increased visitation, enhance visitor experience and
protect the canyon's valuable resources for this and future
generations.
While the plan has not been completed, preliminary reports estimate
that it will cost nearly a quarter of a billion dollars to fully fund.
Providing the necessary resources is a staggering challenge. The
proposal I am presenting here today is one way to help us meet this
enormous need.
As I said, the bill would authorize the Secretary to use fee revenues
to leverage private contributions to help finance park projects.
In order to fund the Federal share of such partnerships, the
Secretary would be authorized to add a surcharge of up to $2 on the
current $10 per vehicle park entrance fee.
Mr. President, no one, least of all this Senator, likes the idea of
higher park entrance fees. But, visitors understand that park services
and infrastructure cost money and they are willing to support the park
with their fees as long as they know the revenue will be used for that
purpose.
Under current procedures, entrance fees are collected at the park,
returned to the General Treasury and appropriated by Congress in many
instances for purposes other than the needs at the Grand Canyon.
The revenues raised under the measure I'm proposing would remain in a
special account at the park to be used only in concert with private
donations for vital park needs. Such public-private partnerships have
ample and successful precedent in other areas of public administration,
and are an excellent means of stretching our resources. I believe they
could be a useful tool at the Grand Canyon and perhaps other national
parks as well.
Again, no one likes the idea of any increase in park fees. But,
ironically, we need only to look to Disney Land for a reality check.
Today, visitors to Disney Land pay $35 a piece to see Mickey Mouse. By
comparison, Grand Canyon visitors pay a relatively modest $10 per
carload to view what John Wesley Powell aptly described as the most
sublime spectacle on Earth. We all understand and accept the fact that
keeping that spectacle sublime and providing for its enjoyment by the
millions who visit costs money. An added surcharge to leverage private
dollars would seem to be a justified and efficient means of making ends
meet, and it deserves our thoughtful consideration.
We estimate that the surcharge would generate an additional $2
million a year. Once leveraged with money from the private sector the
fund would make a significant contribution to park improvements and
maintenance of infrastructure such as upgrading the park's
transportation system to relieve overcrowding; maintaining trails; and
improving the water system and housing, just to name a very few.
Mr. President, the creation of a special partnership account raises
many questions. I, like others, want to make absolutely certain that
private contributions to the park are not used in any way that would
compromise park interests or values. This measure seeks to address that
issue because management of the fund must be dictated solely by the
needs of the park and the ethic of stewardship.
The measure calls on the Secretary of the Interior to establish
regulations, with full public comment and participation, to guide how
the fund will be managed, how private donations will be solicited, for
what purposes they will be used and how the partnerships will be
structured and managed.
In addition, the bill specifically requires that any project funded
under the partnership must be consistent with the statutes,
regulations, and rules governing the park, and that it is specifically
approved and prioritized within the general management plan. These
plans are developed with public participation and are subject to all
the applicable environmental laws. Ensuring that partnership funds are
used only for purposes authorized by the relevant management plan will
ensure that only necessary and appropriate projects are undertaken.
[[Page S482]] Many businesses and individuals want to contribute to
the protection of Grand Canyon National Park because they realize that
it is a national treasure and that it needs and deserves our
assistance. Nevertheless, we must take steps to ensure that these
donations are not offered with strings attached that would place
commercial interests ahead of park needs and values.
Mr. President, Grand Canyon is at a critical point. Demand for park
resources is increasing, as is the cost of maintenance. Given the
current budget constraints the administration and Congress are not
likely to provide the further increases necessary to adequately meet
the need.
We must look for innovative ways to fully fund the preservation and
enhancement of our Nation's park system. I believe the method I'm
proposing is a viable option that should be fully examined and
considered. Secretary Babbitt has indicated that facilitating a public/
private partnership at Grand Canyon is one of the Interior Department's
highest priorities.
Mr. President, last year we celebrated the 75th anniversary of Grand
Canyon National Park. It is most appropriate that we recommit ourselves
to the charge of Theodore Roosevelt ``to keep the canyon for our
children and our children's children, and for all who come after us, as
one of the great sights which every American if he can travel at all
should see.'' Let's work to meet the needs at the Grand Canyon with
that purpose firmly in mind.
I ask unanimous consent that letters of support from the Grand Canyon
Trust and the Grand Canyon Natural History Association along with
editorials and news articles regarding this measure be entered into the
Record. I also ask unanimous consent that the text of the bill appear
in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 150

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 ``Grand Canyon Public/Private
Partnership Act''.

SEC. 2. FINDINGS.

Congress finds that--
(1) as of the date of enactment of this Act, the existing
infrastructure of Grand Canyon National Park is not adequate
to serve the purposes for which the Park was established;
(2) improving the infrastructure of the Park would enhance
the natural and cultural resources of the Park and the
quality of the experiences of visitors to the Park;
(3) through the development of a general management plan,
the Director of the National Park Service has identified
reasonable measures that are necessary to improve the
infrastructure and related services of the Park, including
making improvements to transportation facilities and visitor
services, and reusing historic structures appropriately; and
(4) in order for the Director to implement the general
management plan referred to in paragraph (3) at the Park, it
is necessary for the Director to be authorized to--
(A) enter into agreements with non-Federal entities to
share the costs of the improvements; and
(B) assess and collect a special surcharge in addition to
the entrance fees otherwise collected by the National Park
Service.

SEC. 3. DEFINITIONS.

In this Act:
(1) Eligible project.--The term ``eligible project'' means
any project that is eligible for funding in accordance with
this Act.
(2) Facility.--The term ``facility'' includes any
structure, road, trail, utility, or other facility that is
used or to be used for or in support of--
(A) the protection or restoration of a natural or cultural
resource;
(B) an interpretive service; or
(C) any other service or activity that the Secretary
determines to be related to the operation of the Park.
(3) Federal share.--The term ``Federal share'', with
respect to the cost of an eligible project, means the
percentage of the cost of the project that is paid with
Federal funds, including funds disbursed from the special
account.
(4) National park foundation.--The term ``National Park
Foundation'' means the foundation established under the Act
entitled ``An Act to establish the National Park
Foundation'', approved December 18, 1967 (16 U.S.C. 19e et
seq.).
(5) Non-federal share.--The term ``non-Federal share'',
with respect to the cost of an eligible project, means the
percentage of the cost of the project that is paid with funds
other than funds referred to in paragraph (3).
(6) Park.--The term ``Park'' means the Grand Canyon
National Park.
(7) Special account.--The terms ``special account for Grand
Canyon National Park infrastructure improvement'' and
``special account'' mean the account established pursuant to
section 5.

SEC. 4. GRAND CANYON ENTRANCE FEE SURCHARGE.

Notwithstanding any other provision of law, the Secretary
of the Interior shall--
(1) authorize the Superintendent of the Grand Canyon
National Park to charge and collect, in addition to the
entrance fee collected pursuant to section 4 of the Land and
Water Conservation Fund Act of 1965 (16 U.S.C. 460l-6a), a
surcharge in an amount not to exceed $2 for each individual
charged the entrance fee; and
(2) remit to the special account for Grand Canyon National
Park infrastructure improvement amounts collected as a
surcharge under paragraph (1).

SEC. 5. SPECIAL ACCOUNT FOR GRAND CANYON NATIONAL PARK
INFRASTRUCTURE IMPROVEMENT.

(a) Establishment.--The Secretary of the Treasury, in
consultation with the National Park Foundation, shall
establish in the Treasury of the United States a special
account for Grand Canyon National Park infrastructure
improvement.
(b) Administration of Account.--The Secretary of the
Treasury shall--
(1) credit to the special account amounts remitted pursuant
to section 4(2); and
(2) make funds in the special account available for use
only as provided in subsection (c).
(c) Use of Funds.--
(1) In general.--The National Park Foundation may provide
funds from the special account to the Secretary of the
Interior, acting through the Director of the National Park
Service, to be used to pay the Federal share of the cost of
eligible projects.
(2) Daily operations.--No funds in the special account may
be used for daily operation of the Park.

SEC. 6. ELIGIBLE PROJECTS.

(a) In General.--Subject to subsection (b), any project for
the design, construction, operation, maintenance, repair, or
replacement of a facility within the Park shall be eligible
for funding in accordance with this Act.
(b) Limitation.--A project referred to in subsection (a)
shall be consistent with--
(1) the laws governing the National Park Service;
(2) the Act entitled ``An Act to establish the Grand Canyon
National Park in the State of Arizona'', approved February
26, 1919 (16 U.S.C. 221 et seq.), the Grand Canyon National
Park Enlargement Act (16 U.S.C. 228a et seq.), and any
related law; and
(3) the general management plan for the Park.

SEC. 7. COST-SHARING AGREEMENTS WITH NON-FEDERAL ENTITIES.

(a) In General.--The Director of the National Park Service,
in consultation with the Superintendent of the Grand Canyon
National Park, shall enter into a cost-sharing agreement with
a non-Federal Government entity for each eligible project for
which funds are provided under section 5(c)(1).
(b) Content.--Each cost-sharing agreement shall specify the
Federal share and the non-Federal share of the cost of the
project and shall provide for payment of the non-Federal
share by the non-Federal entity.
(c) Authority To Cover Several Projects.--A cost-sharing
agreement may cover more than 1 eligible project.

SEC. 8. REGULATIONS.

(a) In General.--In consultation with the National Park
Foundation, the Secretary of the Interior shall issue
regulations to carry out this Act.
(b) Content.--The regulations shall include--
(1) procedures for the management of the special account;
(2) the manner in which funds for payment of the non-
Federal share of the cost of an eligible project may be
solicited and acknowledged;
(3) provisions for ensuring the protection of the natural,
cultural, and other resources that the Park was established
to protect;
(4) provisions to encourage funding from the private sector
only for projects that contribute to the restoration and
protection of the resources referred to in paragraph (3);
(5) protections against the commercialization of the Park;
(6) procedures to prevent the creation of a conflict of
interest with respect to an employee of the Federal
Government; and
(7) provisions for continuous participation of the general
public in the oversight of the implementation of this Act.
(c) Notice and Public Comment.--The Secretary shall carry
out subsection (a) in accordance with section 553 of title 5,
United States Code, without regard to any applicable
exception provided in the section.

SEC. 9. REPORT.

(a) In General.--Not later than 5 years after the date of
enactment of this Act, the Secretary of the Interior shall
submit to Congress a report on the Park infrastructure
improvement authority provided in this Act.
(b) Content of Report.--The report shall include--
(1) an assessment of the effectiveness of the exercise of
authority under this Act to improve the infrastructure of the
Park; and
(2) any recommended legislation with respect to--
(A) the surcharge authorized under section 4;
(B) the special account;
(C) the use of the special account for funding eligible
projects; or
[[Page S483]] (D) any other matter that the Secretary
determines to be related to the authority provided under this
Act.
____

Grand Canyon

Natural History Association,

Grand Canyon, AZ, May 6, 1994.
Hon. John McCain,
U.S. Senator, Russell Senate Office Building, Washington, DC.
Dear Senator McCain: I am very happy to be able to write
this letter of complete and enthusiastic support for your
bill designed to authorize an entrance fee surcharge at the
Grand Canyon National Park, for the purpose of assuring a
Federal matching pool of funds for necessary capital projects
at the Park. We have previously discussed the value of such a
tool to be used to foster public/private partnerships to
accomplish the overdue rebuilding of infrastructure to
support the crush of visitors. We further believe that the
choice of Grand Canyon as the test case for such an effort
will enable us to create a model that can be used by other
National Parks and Monuments across the country. Please let
us know how else we can support this important legislation.
Sincerely,
Robert W. Koons,
General Manager, CEO.
____

Grand Canyon Trust,

January 5, 1995.
Hon. John McCain,
U.S. Senate, Washington, DC.
Dear Senator McCain: Thank you for providing the Grand
Canyon Trust with the opportunity to review and comment on
both draft and final versions of your proposed legislation
regarding entrance fees and public/private cost-sharing at
Grand Canyon National Park.
We believe that your proposed legislation will greatly
assist the efforts of the National Park Service and other
entities who are struggling to find appropriate means to
generate the additional funding so urgently needed by Grand
Canyon National Park. In this regard, we strongly support the
core concepts in your bill: new fees to generate incremental
revenue for park projects and cost-sharing arrangements
between the park service and non-governmental entities.
We share your concern that Grand Canyon's pressing
infrastructure and resource management needs will not be met
unless Congress acts to provide the new authorities described
in your legislation. And, if those needs are not met, the
park environment and visitor experience will continue to
deteriorate--an utterly unacceptable and unnecessary fate for
the crown jewel of America's parks.
Senator McCain, we applaud your consistent leadership on
behalf of Grand Canyon. This bill, the National Parks
Overflights Act, Grand Canyon Protection Act, and so many
other measures reflect your unwavering dedication to the
needs of the park. Please be assured that we are prepared to
assist you in your efforts to move the bill through the
legislative process to final enactment.
Again, thank you for all you have done for the Grand
Canyon.
Sincerely,
Thomas C. Jensen,
Executive Director.
______

By Mr. BUMPERS (for himself, Mr. Bradley, Mr. Feingold, Mr.
Harkin, Mr. Kerry, Mr. Kohl, Mr. Pryor, Mr. Simon, and Mr.
Wellstone):
S. 151. A bill to reduce Federal spending by restructuring the Air
Force's F-22 program to achieve initial operating capability in 2010
and a total inventory of no more than 42 aircraft in 2015; to the
Committee on Armed Services.
______

By Mr. BUMPERS (for himself, Mr. Bradley, Mr. Feingold, Mr.
Harkin, Mr. Kohl, Mr. Leahy, Mr. Simon, Mr. Pryor, and Mr.
Wellstone):
S. 152. A bill to reduce Federal spending and rapidly enhance
strategic airlift by terminating the C-17 aircraft program after fiscal
year 1996 and by providing for a program to meet the remaining
strategic airlift requirements of the Department of Defense with
nondevelopmental aircraft; to the Committee on Armed Services.
______

By Mr. BUMPERS (for himself, Mr. Bradley, Mr. Conrad, Mr.
Feingold, Mr. Harkin, Mr. Kohl, Mr. Leahy, Mr. Pryor, Mr.
Simon, and Mr. Wellstone):
S. 153. A bill to reduce Federal spending and enhance military
satellite communications by reducing funds for the MILSTAR II satellite
program and accelerating plans for deployment of the Advanced EHF
Statellite/MILSTAR III; to the Committee on Armed Services.
______

By Mr. BUMPERS (for himself, Mr. Bradley, Mr. Feingold, Mr.
Harkin, Mr. Kohl, Mr. Simon, and Mr. Wellstone):
S. 154. A bill to prohibit the expenditure of appropriated funds on
the Advanced Neutron Source; to the Committee on Appropriations.
______

By Mr. BUMPERS (for himself, Mr. Bradley, Mr. Conrad, Mr.
Feingold, Mr. Harkin, Mr. Kohl, Mr. Leahy, and Mr. Wellstone):
S. 155. A bill to reduce Federal spending by prohibiting the backfit
of Trident I ballistic missile submarines to carry D-5 Trident II
submarine-launched ballistic missile; to the Committee on
Appropriations.
______

By Mr. BUMPERS (for himself, Mr. Bradley, Mr. Feingold, Mr.
Harkin, Mr. Kohl, Mr. Pryor, Mr. Simon, and Mr. Wellstone):
S. 156. A bill to reduce Federal spending by limiting the amount of
appropriations which may be available to the intelligence community for
fiscal year 1996; to the Committee on Appropriations.
______

By Mr. BUMPERS (for himself, Mr. Warner, Mr. Bradley, Mr. Conrad,
Mr. Feingold, Mr. Kerry, Mr. Kohl, Mr. Leahy, Mr. Pryor, Mr.
Simon, and Mr. Wellstone):
S. 157. A bill to reduce Federal spending by prohibiting the
expenditure of appropriated funds on the United States International
Space Station Program; to the Committee on Appropriations.

spending cuts legislation

Mr. BUMPERS.
Mr. President, I send seven separate bills to the desk that I am
offering on behalf of myself, Senators Bradley, Kohl, Feingold, Pryor,
Wellstone, Lautenberg, and other Senators.

Just briefly, Mr. President, those bills contain seven specific
spending cuts which, over the first 5 years would save $33 billion, and
over a 15-year-period would save $114 billion; four of those seven
would terminate or cut spending on four specific weapons programs. One
would cut the intelligence budget. One would kill NASA's space station
program, and the last would kill the Department of Energy's Advanced
Neutron Source. Yesterday CBS News and USA Today-CNN released new
public opinion polls. Both asked over 1,000 people: What should be the
highest priority of this new Congress? Interestingly, according to the
CNN/USA Today/Gallup Poll, out of about 15 items listed, 45 percent of
the people said defense spending should have a very low priority and 11
percent said it should have no priority. Mr. President, 56 percent of
the people in that poll said--bear this in mind--defense spending
should have no priority or a low priority.
Yesterday was admittedly a euphoric day for Republicans in Congress.
I have been in those euphoric positions so I watched with a great deal
of interest, and I know how much they enjoyed the day. But how many
times did you hear yesterday that we are going to give Government back
to the people, we are going to start responding to what the people
believe? Here is a golden opportunity for this Congress to prove that
they can cut spending--they can cut spending the way the American
people want. Bear in mind that the Contract With America provides for
tax cuts which are estimated to cost between $150 and $200 billion.
Under the 1990 Budget Act, that means the people who favor those tax
cuts are going to have to cut mandatory spending; the great bulk of
mandatory spending is entitlements--Medicare, Medicaid, Social
Security. That means that people who favor those tax cuts are going to
have to find offsetting spending cuts in entitlements.
The Kerry Commission was just disbanded, after long, arduous work in
trying to figure out proposed recommendations of entitlement spending
cuts. After spending over $1 million on that Commission, a basket of
about 100 proposals were submitted to the Commission, many of whose
members were Members of Congress. Not one single proposal was adopted
for cutting entitlement spending. And here we have a tax cut proposal
that is going to require $150 to $200 billion in spending cuts over the
next 5 years. Yet those same polls yesterday showed that 77 percent on
one poll, and 82 percent on
[[Page S484]] the other, said deficit reduction should be the highest
priority.
So, Mr. President, I am introducing these spending cuts. Bear this in
mind. In 1996 the deficit is going to start back up unless we do
something. So here is our task, find $150 billion in Social Security
and Medicare and Medicaid in order to provide for a middle-class tax
cut, and you are going to have to find God knows how much else of
spending to cut to keep the deficit from starting back up in 1996, and
I promise you the American people will turn on this place like a saber-
toothed tiger if that happens, and rightly so.
So here is $33 billion in seven spending cuts. I have some charts. I
will show those later and I will speak more extensively on those
specific cuts, why I think they should be there.
This will give people a chance to put up or shut up.
Mr. LEAHY. Mr. President, in the 1980's, we were told that it
was possible to increase defense spending, cut taxes and still balance
the Federal budget. The national debt quadrupled in those years.
President Clinton was elected on a pledge to reduce the budget deficits
that had crippled the economy through the Reagan-Bush years. For the
first time in two decades, we have actually cut the deficits and the
economy is improving. Now, we are again hearing the siren song of tax
cutting and increased defense spending from the same people who were
the source of our national discontent. We have to build upon the solid
accomplishments of the last 2 years--not upon the wreckage of the
previous 12 years.
Senator Bumpers is offering this thoughtful list of future spending
cuts that will save taxpayers tens of billions of dollars. They are in
contrast to the many words being tossed about to justify a return to
the failed policies of the past.
I support most of the spending cuts proposed here today. But we need
support from the new Republican majority to relieve the American
taxpayer of the burden they impose on all of us.
Some of these cuts will actually enhance existing programs. For
example, if we cap production of the C-17 cargo plane at 40 planes and
instead buy existing aircraft like Boeing 747's or Lockheed C5's, we
can save $5 billion over the next 5 years and increase our air cargo
capabilities.
If we cancel the fifth and sixth military communication satellites
known as Milstar, we can save $2 billion over the next 5 years. These
satellites were designed to survive a nuclear war with the Soviet
Union, a nation that doesn't even exist any more. Instead, we should
accelerate development of the smaller, cheaper Milstar III, which will
deliver more communications capability for the regional conflicts that
we are most likely to encounter in the future.
The international space station will consume $52 billion of taxpayer
money over the next 15 years. I am not against space exploration, but
NASA has never justified the immense cost of this program in terms of
scientific returns.
We need to intensify our efforts to develop cheap, reusable launch
vehicles that make space more accessible. then we can consider space
stations, space factories and other futuristic projects.
The Navy wants to spend $3 billion over the next 5 years to refit our
Trident ballistic missile submarines with the super-accurate D-5
nuclear missile. These missiles were designed as bunker-busters for
Soviet ICBM's, which are being disarmed as we speak. And we have D4
missiles that can deliver an acceptable nuclear punch in the unlikely
event of total nuclear war.
I don't agree with everything Senator Bumpers proposes. We differ on
his recommendation to cut $5 billion from the intelligence budget. I
prefer to await the recommendations of the Presidential commission set
up last year by Congress to review the roles and missions of our
intelligence agencies.
I reserve my opinion on the Advanced Neutron Source reactor because I
have not had an opportunity to analyze the details of this program. I
may very well join Senator Bumpers in opposition in the future--but I
just don't know enough to make an educated judgement at the present
time.
In sum, there are tens of billions of dollars to be saved in these
spending cuts, without any threat to national security, and the very
real possibility that our defense will be strengthened as a result.
Along with Senator Bumpers, I urge incoming Senators and
Representatives to make a genuine, bipartisan effort to review these
options to make our government less costly and more efficient. We have
some old white elephants straining the costs of government. We don't
need great new ideas--just a little courage--to end these
programs.
______

By Mr. JOHNSTON:
S. 158. A bill to provide for the energy security of the Nation
through encouraging the production of domestic oil and gas resources in
deep water on the Outer Continental Shelf in the Gulf of Mexico, and
for other purposes; to the Committee on Energy and Natural Resources.

the outer continental shelf deep water royalty relief act

Mr. JOHNSTON. Mr. President, I introduce the Outer Continental
Shelf Deep Water Royalty Relief Act. This legislation is intended to
address the serious decline in oil and gas exploration and development
activity in the Western and Central Gulf of Mexico on the Outer
Continental Shelf [OCS]. This is not the same proposal introduced in
the Senate and reported by the Committee on Energy and Natural
Resources in the last Congress. This specific legislation is the result
of a compromise worked out with the Administration last session in the
context of the mining law reform conference. This legislation has the
support of the Secretaries of the Departments of Energy and the
Interior.
The Outer Continental Shelf is an important domestic source of oil
and clean-burning natural gas. Approximately 10 percent of domestic oil
and 25 percent of domestic natural gas is produced from the OCS. The
OCS is estimated to hold one-fourth of all domestic oil and gas
reserves. The Central and Western Gulf account for 90 percent of the
oil and 99 percent of the gas produced from the OCS.
Domestic exploration and development have fallen off dramatically in
recent years as capital has moved to support drilling in other parts of
the world. In 1992, for the first time, the major oil companies spent
more on exploration and development activity abroad than on U.S.
activities. Between 1987 and 1992, $30 billion flowed from the U.S. oil
patch to foreign operations. This translates to a loss of 450,000 jobs
by the domestic industry over the last 10 years.
Mr. President, the deep waters of the OCS hold promise of substantial
oil and gas resources crucial to our domestic energy security. However,
the costs of producing these resources are substantial and increase
significantly with water depth. One industry estimate places capital
investment costs for a conventional fixed leg platform in 800 feet of
water at $360 million, compared to costs of nearly $1 billion for a
conventional tension leg platform in 3000 feet of water. According to
Department of Interior estimates there are some 11 billion barrels of
oil equivalent in the Gulf of Mexico in waters of a depth of 200 meters
or more. This legislation is expected to bring into production at least
two additional fields with possible reserves of 150 million barrels of
oil equivalent.
By allowing lessees to recover a significant portion of the capital
cost prior to imposition of a royalty payment this legislation will
encourage development of these important oil and gas resources. Royalty
holidays of this type are commonly used in other parts of the world as
a mechanism for risk sharing between the government and the industry of
the huge up-front capital costs associated with developing this type of
resource. The North Sea is a prime example. British and Norwegian tax
and
royalty changes, put in place in the 80's have yielded dramatic
results in the past couple of years. In fact, increases in this non-
Opec production has contributed significantly to holding down
international oil prices.

First, the legislation clarifies the authority of the Secretary of
the Interior to grant royalty relief on existing leases in the OCS to
encourage development. Currently the Secretary may grant relief once a
lease has been developed and is producing, it is not clear whether the
authority exists before
[[Page S485]] production is initiated. The Department of Interior has
sought this clarification. The legislation further provides for a
specified royalty holiday for existing leases in deep waters that are
not currently economic. Upon application, undeveloped leases in water
depths of 200 meters or more in the Central and Western Gulf that are
found to be uneconomic under current conditions, will have the royalty
payment suspended until a minimum number of volumes have been produced.
The specific volumes covered by the royalty holiday are based on water
depth. The provision applies to production from leases coming on-line
after the date of enactment of the legislation and to production
resulting from lease development activities undertaken pursuant to a
Development Operations Coordination Document approved after the date of
enactment. In addition, for new leasing in the Gulf, the lease terms
will provide for an initial royalty holiday on a given number of
barrels of oil or gas equivalent, as determined by the Secretary. This
new leasing arrangement will be in effect for 5 years from the date of
enactment. The royalty relief would not apply to the production of oil
or natural gas, respectively, in any month when the average closing
price for the earliest delivery month for oil exceeds $28 per barrel or
when prices for natural gas exceed $3.50 per million Btu's.
This is a win-win policy for the Federal Government. By stimulating
development of indigenous oil and gas resources we reduce our
dependence on imported supplies, create jobs and generate significant
revenues, initially in Federal and State income taxes then royalties.
Mr. President, this bill represents one step in addressing this
problem. It is a significant step, but we must look at other
initiatives, such as changes in the tax laws that can be taken to
address this serious decline in domestic oil and gas exploration and
development activity. I look forward to considering other initiatives
that could complement the royalty relief proposal that I am introducing
today.
I am also submitting a separate amendment to this legislation to
correct an unacceptably onerous effect of the Oil Pollution Act of 1990
[OPA 90]. The amendment gives the Secretary of the Interior the
flexibility to set the financial responsibility requirement based on
the risk associated with different sorts of facilities. OPA 90 was
passed and signed into law following the Exxon Valdez tanker spill in
Alaska. The intent of OPA 90 was to lessen the risk of oil spills and
to improve the level of preparedness and responsiveness when spills do
occur. OPA 90 created a comprehensive prevention, response, liability
and compensation regime for dealing with vessel and facility caused oil
pollution from spills in navigable waters. However, in the post-
disaster zeal to legislate, the solution went far beyond the problem.
Currently, the Outer Continental Shelf Lands Act [OCSLA] requires
owners of OCS facilities to demonstrate evidence of financial
responsibility equal to $35 million. OPA 90 increased the financial
responsibility of responsible parties to $150 million. This was done
without regard to the actual risk and experience of nontanker
facilities operating in the OCS.
This same amendment was reported by the Committee on Energy and
Natural Resources in the last Congress and was the subject of a
colloquy between myself and Senator Baucus on the Senate floor. The
Solicitor of the Department of the Interior has since completed his
review of the financial responsibility provisions and determined that
``OPA does not authorize MMS to set different responsibility levels for
offshore facilities based on risk.'' The Administration agrees that a
legislative remedy is required.
I urge my colleagues to join me in supporting this important
legislation to provide deepwater royalty relief in the Western and
Central Gulf of Mexico. Mr. President, I ask unanimous consent that the
text of the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 158

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That this
Act may be referred to as the ``Outer Continental Shelf Deep
Water Royalty Relief Act''.

SEC. 2. AMENDMENTS TO THE OUTER CONTINENTAL SHELF LANDS ACT.

Section 8(a) of the Outer Continental Shelf Lands Act, (43
U.S.C. 1337 (a) (3)), is amended by striking paragraph (3) in
its entirety and inserting the following:
``(3) (A) The Secretary may, in order to--
``(i) promote development or increased production on
producing or non-producing leases; or
``(ii) encourage production of marginal resources on
producing or non-producing leases; through primary,
secondary, or tertiary recovery means, reduce or eliminate
any royalty or net profit share set forth in the lease(s).
With the lessee's consent, the Secretary may make other
modifications to the royalty or net profit share terms of the
lease in order to achieve these purposes.
``(B) (i) Notwithstanding the provisions of this Act other
than this subparagraph, with respect to any lease or unit in
existence on the date of enactment of the Outer Continental
Shelf Deep Water Royalty Relief Act meeting the requirements
of this subparagraph, no royalty payments shall be due on new
production, as defined in clause (iv) of this subparagraph,
from any lease or unit located in water depths of 200 meters
or greater in the Western and Central Planning Areas of the
Gulf of Mexico, including that portion of the Eastern
Planning Area of the Gulf of Mexico encompassing whole lease
blocks lying west of 87 degrees, 30 minutes West longitude,
until such volume of production as determined pursuant to
clause (ii) has been produced by the lessee.
(ii) Upon submission of a complete application by the
lessee, the Secretary shall determine within 180 days of such
application whether new production from such lease or unit
would be economic in the absence of the relief from the
requirement to pay royalties provided for by clause (i) of
this subparagraph. In making such determination, the
Secretary shall consider the increased technological and
financial risk of deep water development and all costs
associated with exploring, developing, and producing from the
lease. The lessee shall provide information required
for a complete application to the Secretary prior to such
determination. The Secretary shall clearly define the
information required for a complete application under this
section. Such application may be made on the basis of an
individual lease or unit. If the Secretary determines that
such new production would be economic in the absence of
the relief from the requirement to pay royalties provided
for by clause (i) of this subparagraph, the provisions of
clause (i) shall not apply to such production. If the
Secretary determines that such new production would not be
economic in the absence of the relief from the requirement
to pay royalties provided for by clause (i), the Secretary
must determine the volume of production from the lease or
unit on which no royalties would be due in order to make
such new production economically viable; except that for
new production as defined in clause (iv) (aa), in no case
will that volume be less than 17.5 million barrels of oil
equivalent in water depths of 200 to 400 meters, 52.5
million barrels of oil equivalent in 400-800 meters of
water, and 87.5 million barrels of oil equivalent in water
depths greater than 800 meters. Redetermination of the
applicability of clause (i) shall be undertaken by the
Secretary when requested by the lessee prior to the
commencement of the new production and upon significant
change in the factors upon which the original
determination was made. The Secretary shall make such
redetermination within 120 days of submission of a
complete application. The Secretary may extend the time
period for making any determination or redetermination
under this clause for 30 days, or longer it agreed to by
the applicant, if circumstances so warrant. The lessee
shall be notified in writing of any determination or
redetermination and the reasons for and assumptions used
for such determination. Any determination or
redetermination under this clause shall be a final agency
action. The Secretary's determination or redetermination
shall be judicially reviewable under section 10(a) of the
Administrative Procedures Act, 5 U.S.C. Sec. 702, only for
actions filed within 30 days of the Secretary's
determination or redetermination.
``(iii) In the event that the Secretary fails to make the
determination or redetermination called for in clause (ii)
upon application by the lessee within the time period,
together with any extension thereof, provided for by clause
(ii), no royalty payments shall be due on new production as
follows:
``(aa) For new production, as defined in clause (iv) (aa)
of this subparagraph, no royalty shall be due on such
production according to the schedule of minimum volumes
specified in clause (ii) of this subparagraph.
``(bb) For new production, as defined in clause (iv) (bb)
of this subparagraph, no royalty shall be due on such
production for one year following the start of such
production.
``(iv) For purposes of this subparagraph, the term `new
production' is--
(aa) any production from a lease from which no royalties
are due on production, other than test production, prior to
the date of enactment of the Outer Continental Shelf Deep
Water Royalty Relief Act; or
(bb) any production resulting from lease development
activities pursuant to a Development Operations Coordination
Document, or supplement thereto that would expand
[[Page S486]] production significantly beyond the level
anticipated in the Development Operations Coordination
Document, approved by the Secretary after the date of
enactment of the Outer Continental Shelf Deep Water Royalty
Relief Act.
``(v) During the production of volumes determined pursuant
to clauses (ii) or (iii) of this subparagraph, in any year
during which the arithmetic average of the closing prices on
the New York Mercantile Exchange for Light Sweet crude oil
exceeds $28.00 per barrel, any production of oil will be
subject to royalties at the lease stipulated royalty rate.
Any production subject to this clause shall be counted toward
the production volume determined pursuant to clause (ii) or
(iii). Estimated royalty payments will be made if such
average of the closing prices for the previous year exceeds
$28.00. After the end of the calendar year, when the new
average price can be calculated, lessees will
pay any royalties due, with interest but without penalty, or
can apply for a refund, with interest, of any overpayment.
``(vi) During the production of volumes determined pursuant
to clause (ii) or (iii) of this subparagraph, in any year
during which the arithmetic average of the closing prices on
the New York Mercantile Exchange for natural gas exceeds
$3.50 per million British thermal units, any production of
natural gas will be subject to royalties at the lease
stipulated royalty rate. Any production subject to this
clause shall be counted toward the production volume
determined pursuant to clauses (ii) or (iii). Estimated
royalty payments will be made if such average of the closing
prices for the previous year exceeds $3.50. After the end of
the calendar year, when the new average price can be
calculated, lessees will pay any royalties due, with interest
but without penalty, or can apply for a refund, with
interest, of any overpayment.
``(vii) The prices referred to in clauses (v) and (vi) of
this subparagraph shall be changed during any calendar year
after 1994 by the percentage, if any, by which the implicit
price deflator for the gross domestic product change during
the preceding calendar year.''

SEC. 3. NEW LEASES.

(a) Section 8(a)(1) of the Outer Continental Shelf Lands
Act, as amended, (43 U.S.C. 1337(a)(1)) is amended as
follows:
(1) Redesignate section 8(a)(1)(H) as section 8(a)(1)(I);
(2) Add a new section 8(a)(1)(H) as follows:
``(H) cash bonus bid with royalty at no less than 12 and
\1/2\ per centum fixed by the Secretary in amount or value of
production saved, removed, or sold, and with suspension of
royalties for a period, volume, or value of production
determined by the Secretary. Such suspensions may vary based
on the price of production from the lease.''
(b) For all tracts located in water depths of 200 meters or
greater in the Western and Central Planning Areas of the Gulf
of Mexico, including that portion of the Eastern Planning
Area of the Gulf of Mexico encompassing whole lease blocks
lying west of 87 degrees, 30 minutes West longitude, any
lease sale within five years of the date of enactment of this
Act, shall use the bidding system authorized in Section
8(a)(1)(H) of the Outer Continental Shelf Lands Act, as
amended by this Act, except that the suspension of royalties
shall be set at a volume of not less than the following:
(1) 17.5 million barrels of oil equivalent for leases in
water depths of 200 to 400 meters;
(2) 52.5 million barrels of oil equivalent for leases in
400 to 800 meters of water; and
(3) 87.5 million barrels of oil equivalent for leases in
water depths greater than 800 meters.

SEC. 4. REGULATIONS.

The Secretary shall promulgate such rules and regulations
as are necessary to implement the provisions of this Act
within 180 days after the enactment of this Act.
______

By Mr. SHELBY (for himself, Mr. Craig, Mr. Faircloth, and Mr.
Heflin):
S. 160. A bill to impose a moratorium on immigration by aliens other
than refugees, certain priority and skilled workers, and immediate
relatives of United States citizens and permanent resident aliens; to
the Committee on the Judiciary.

the immigration moratorium act of 1995

Mr. SHELBY. Mr. President, today I am introducing a bill to address
the seemingly perpetual problem of immigration. We are often told the
United States of America was established by immigrants. Indeed,
immigration has been the cornerstone of America. I could not agree more
about the positive impact immigrants have played in America, nor will I
dispute the positive role immigrants will play in the future.
We are taught to believe that immigration to America has been, and
should be, a perpetual and unlimited right.
However, our capacity, as a country, to process and assimilate the
heavy flow of immigrants is not sustainable. Excessive demands on
social, medical and welfare services accentuate the necessity to
address the problem immediately.
A quick survey of the condition of State budgets, particularly those
of California, Florida, Illinois, New York, and Texas will illustrate
the overwhelming demands on education, health care, welfare, prisons,
and other social infrastructure. California, Florida, and Texas are
actually suing the Federal Government for billions of dollars they have
had to spend for such immigrant related costs.
The dilemma before us is not limited to illegal immigrants as the
media often implies. While approximately 300,000 illegal immigrants
come here each year, we actually admit almost 1 million legal
immigrants a year. Legal immigration creates a demand more than three
times greater than illegal immigration. Simply put, States do not have
the resources to provide services to an additional 1.3 million persons
a year.
Some will say that these immigrants do not come over here for a hand
out, but that they come over to work and live the American dream.
However, if we assume this to be true--that they come to America to
work--then this means they increase the supply of the labor force. Of
the 974,000 immigrants that were granted legal permanent residence in
1992, 672,303 were between the ages of 20 and 64.
If these immigrants enter the job market, their entry effectively
reduces wages by increasing the labor supplied. At a time when real
income is stagnant if not declining, immigration policy should not
contribute such a strong downward pressure on real income. Such a
policy does not make fiscal or social sense.
The scenario just mentioned is the optimist view. If one chooses to
assume the opposite, that immigrants choose not to work, the inevitable
result is an increase in the demand of social services. As mentioned
earlier, the demand is already too high for many states.
Neither of the two scenarios paint a pretty picture. Indeed, both of
these scenarios are costly to the American taxpayer.
As a result, I am introducing legislation to provide relief to the
American taxpayer. This bill would lower the amount of legal immigrants
from about 1 million to 325,000. This figure would include around
175,000 spouses and children of U.S. citizens which has traditionally
been the case.
The bill also includes a 50,000 level for refugees/asylees, 50,000
for highly skilled workers and 50,000 for other relatives of U.S.
citizens.
In addition, my legislation would reduce the admissions backlog by
freezing it at the current level. New applications would not be
accepted until the end of the moratorium unless the applicant came from
one of the allowable categories under this legislation.
This legislation would ease the demands on State governments while
also minimizing the negative economic consequences immigrants have on
the labor force. Although this is only a temporary 5-year remedy, it
will allow us the time needed to pass a complete, long-term solution to
the problem.
I support comprehensive reform efforts, but believe immediate relief
is needed.
It is important that we strive for a rational and equitable
immigration policy that takes into account the economic and social
needs. We must do this without compromising the social and economic
stability of this country and the quality of life for every American.
In order for immigrants to live the American dream, there has to be a
healthy, prosperous economy and a diverse, harmonious society.
To offer anything less, would be to cheat them of the American dream.
Mr. President, I urge my colleagues to support this legislation.
______

By Mrs. MURRAY:
S. 161. A bill to amend the Internal Revenue Code of 1986 to reduce
the rate of estate tax imposed on family-owned business interests; to
the Committee on Finance.

the american family business preservation act

Mrs. MURRAY. Mr. President, today I am introducing the American
Family Business Preservation Act of 1995.
My father ran a small business in Bothell, WA. He taught me as long
as I worked hard and played by the rules, I could build a better life
for myself and my family. But, for years, it seemed that as hard as my
husband and I were
[[Page S487]] working, we were still a pink slip away from real
financial disaster.
Small businesses are the heart of the American economic system. They
are the essence of the American dream. And, sadly, for many small
business owners that dream has been fading. Our great American middle
class is nervous. My bill aims to alleviate that anxiety and restore
the dream.
Mr. President, this bill will specifically reduce the particularly
onerous estate and gift tax imposed on our small businesses during the
1980s. This bill allows small manufacturers, service industries,
farmers, and woodlot owners to leave their children the benefits of
their hard work. It will end the ridiculous penalties the Federal
Government has imposed on American families when a loved one dies. It
will keep American families engaged in small business financially
solvent.
This reform is especially important to my home State of Washington.
It will encourage the stability and diversity of our economy. It will
help assure that farms and woodlots stay in family hands and thereby
ensure stability in forest management. It is an environment-friendly
tax cut.
Specifically, the American Family Business Preservation Act will
reduce the 55-percent estate tax rate to 15 percent as long as the
heirs continue to operate the business. If, for any reason, the heirs
are unable to operate--but continue to own--the business, the maximum
rate will be 20 percent.
It indexes the unified estate and gift tax credit for inflation. This
credit--which effectively exempts from tax estates valued at less than
$600,000--was last increased 14 years ago, in 1981.
And, the bill allows hard-working Americans to keep more of their
money in their family. I believe if you work hard and you play by the
rules, you should be able to enjoy the rewards. When this bill passes,
we will be able to give up to 15 percent of our earned income each year
to family members without being subject to gift tax.
Mr. President, this provision is important because many of this
Nation's hard-working people have yet to feel the impact of the current
economic expansion. During the past 2 years, we have created more than
5 million jobs. Interest rates and inflation are subdued. We have
reduced the size of Government. And, we have trimmed the one-third of
our Federal budget deficit.
I am proud of this record.
But, we need to make sure working people really benefit from this
economic progress.
Mr. President, we are at an economic crossroads. We can continue
along the traditional route of corporate buy-outs, declining wages, and
a skittish middle class. Or, we can move boldly into a new century in
which jobs and lives are valued, and all American families have a stake
in our economic well-being.
That is why this bill is so important.
Mr. President, it gives our kids hope in the future. It brings common
sense and the voice of average Americans to our tax policy. Hard-
working Americans need to be respected, and they deserve to reap the
benefits of their hard work. Our only hope of restoring the American
dream is to empower the middle class.
When my colleagues, Congressman Bill Brewster and Congressman Jim
McCrery, introduced the companion bill in the other body in the last
Congress, it deservedly gained quick and solid bipartisan support. I
expect the same record in this body.
Mr. President, I ask unanimous consent that the full text of my bill
be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 161

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 ``American Family Business
Preservation Act''.

SEC. 2. REDUCED ESTATE TAX RATE ON FAMILY-OWNED BUSINESS
INTERESTS.

(a) In General.--Part I of subchapter A of chapter 11 of
the Internal Revenue Code of 1986 (relating to tax imposed)
is amended by adding at the end the following new section:

``SEC. 2003. REDUCED RATE ON FAMILY-OWNED BUSINESS INTERESTS.

``(a) In General.--In the case of an estate of a decedent
to which this section applies, the tax imposed by section
2001 shall not exceed the sum of--
``(1) a tax computed at the rates and in the manner as if
this section had not been enacted on the greater of--
``(A) the sum described in section 2001(c)(1) reduced by
the qualified family-owned business interests, or
``(B) the sum (if any) described in section 2001(c)(1)
taxed at a rate below the applicable rate, plus
``(2) a tax equal to the applicable rate of the portion of
the taxable estate in excess of the amount determined under
paragraph (1).
``(b) Estates To Which Section Applies.--This section shall
apply to an estate if--
``(1) the decedent was (at the date of his or her death) a
citizen of the United States,
``(2) the sum of--
``(A) the value of the qualified family-owned business
interests which are included in determining the gross estate
and which are acquired from or passed from the decedent to a
qualified heir of the decedent, and
``(B) the amount (taken into account under subsection
2001(b)(1)(B)) of the adjusted taxable gifts of such
interests to members of the decedent's family,

exceeds 50 percent of the adjusted gross estate, and
``(3) during the 8-year period ending on the date of the
decedent's death there have been periods aggregating 5 years
or more during which--
``(A) such interests were owned by the decedent or a member
of the decedent's family, and
``(B) there was material participation by the decedent or a
member of the decedent's family in the operation of the
business to which such interests relate.
``(c) Applicable Rate.--For purposes of this section, the
applicable rate is--
``(1) 15 percent if the requirement of subsection (b)(3)(B)
is met by a member of the decedent's family, and
``(2) 20 percent in any other case.
``(d) Qualified Family-Owned Business Interest.--
``(1) In general.--For purposes of this section, the term
`qualified family-owned business interest' means--
``(A) an interest as a proprietor in a trade or business
carried on as a proprietorship;
``(B) an interest as a partner in a partnership carrying on
a trade or business, if such partnership had 15 or fewer
partners; or
``(C) stock in a corporation carrying on a trade or
business if such corporation had not more than the number of
shareholders specified in section 1361(b)(1)(A).

Such term shall not include any interest which is readily
tradable on an established securities market or otherwise.
``(2) Rules for applying paragraph (1).--For purposes of
paragraph (1), rules similar to the rules of paragraphs (2),
(3), (4), and (6) of section 6166(b) shall apply.
``(e) Recapture of Tax Benefit If Interests Not Held for 10
Years.--
``(1) In general.--If--
``(A) during the 10-year period beginning on the date of
death of the decedent--
``(i)(I) any portion of a qualified family-owned business
interest is distributed, sold, exchanged, or otherwise
disposed of, or
``(II) money and other property attributable to such an
interest is withdrawn from such trade or business, and
``(B) the aggregate of such distributions, sales,
exchanges, or other dispositions and withdrawals equals or
exceeds 20 percent of the value of such interest, or

there is hereby imposed an additional estate tax.
``(2) Additional estate tax.--
``(A) In general.--The amount of the additional estate tax
imposed by paragraph (1) shall be the applicable percentage
of the excess of what would have been the estate tax
liability but for subsection (a) over the adjusted estate tax
liability.
``(B) Applicable percentage.--For purposes of subparagraph
(A), the term `applicable percentage' means 100 percent
reduced (but not below zero) by the product of--
``(i) 10 percentage points, and
``(ii) the number of years (if any) after the date of the
decedent's death which the year during which the additional
estate tax is imposed by paragraph (1) is after the 1st year
after the date of the decedent's death.
``(C) Adjusted estate tax liability.--For purposes of
subparagraph (A), the term `adjusted estate tax liability'
means the estate tax liability increased by the amount (if
any) of any prior additional estate tax imposed by subsection
(f).
``(D) Estate tax liability.--For purposes of this
paragraph, the term `estate tax liability' means the tax
imposed by section 2001 reduced by the credits allowable
against such tax.
``(3) Certain rules to apply.--For purposes of this
subsection, rules similar to the rules of subparagraphs (B),
(C), and (D) of section 6166(g)(1) shall apply.
``(f) Recapture of Portion of Tax Benefit If Heirs Cease to
Materially Participate During 10 Years After Death.--
``(1) In general.--If--
``(A) the applicable rate which applied under subsection
(a) to the estate of the decedent was 15 percent,
``(B) at any time during the 10-year period beginning on
the date of death of the decedent, no qualified heir
materially participates in the operation of the business to
which the qualified family-owned business interests relate,
and
[[Page S488]] ``(C) there is no recapture under subsection
(e) on or before the earliest date during such 10-year period
that no qualified heir so materially participated,

there is hereby imposed an additional estate tax.
``(2) Additional estate tax.--The amount of the additional
estate tax imposed by paragraph (1) shall be the applicable
percentage of the excess of what would have been the estate
tax liability but for subsection (c)(1) over the estate tax
liability.
``(3) Definitions.--For purposes of paragraph (2), the
terms `applicable percentage' and `estate tax liability' have
the meanings given to such terms by subsection (e).
``(g) Other Definitions.--For purposes of this section, the
terms `qualified heir' and `member of the family' have the
meanings given to such terms by section 2032A(e).''
(b) Clerical Amendment.--The table of sections for part I
of subchapter A of chapter 11 of such Code is amended by
adding at the end the following new item:

``Sec. 2003. Reduced rate on family-owned business interests.''

(c) Effective Date.--The amendments made by this section
shall apply to estates of decedents dying after the date of
the enactment of this section.

SEC. 3. LIMITATION ON 4 PERCENT RATE OF INTEREST ON ESTATE
TAX EXTENDED UNDER SECTION 6166 NOT TO APPLY TO
ESTATE TAX ATTRIBUTABLE TO QUALIFIED FAMILY-
OWNED BUSINESS INTERESTS.

(a) In General.--Paragraph (2) of section 6601(j) of the
Internal Revenue Code of 1986 (relating to 4-percent portion)
is amended by adding at the end the following new flush
sentence:

``Subparagraph (B) shall not take into account the amount of
the tax imposed by chapter 11 which is attributable to
qualified family-owned business interests (as defined in
section 2003(b)) unless an election is in effect under
section 2032A with respect to the estate.''.
(b) Effective Date.--The amendment made by this section
shall apply to estates of decedents dying after the date of
the enactment of this section.

SEC. 4. EXTENSION OF ALTERNATE VALUATION DATE TO 40 MONTHS
WITH RESPECT TO ESTATE CONSISTING LARGELY OF
QUALIFIED FAMILY-OWNED BUSINESS INTERESTS.

(a) In General.--Section 2032 of the Internal Revenue Code
of 1986 (relating to alternate valuation) is amended by
redesignating subsections (c) and (d) as subsections (d) and
(e), respectively, and by inserting after subsection (b) the
following new subsection:
``(c) Estates Largely Consisting of Qualified Family-Owned
Business Interests.--In the case of an estate to which
section 2003 applies--
``(1) subsection (a) shall be applied by substituting `40
months' for `6 months' each place it appears, and
``(2) section 6075(a) (relating to time for filing estate
tax return) shall be applied by substituting `43 months' for
`9 months'.''
(b) Effective Date.--The amendment made by this section
shall apply to estates of decedents dying after the date of
the enactment of this section.

SEC. 5. INCREASE IN GIFT TAX EXCLUSION.

(a) In General.--Subsection (b) of section 2503 of the
Internal Revenue Code of 1986 (relating to taxable gifts) is
amended by adding at the end the following new sentence: ``In
the case of gifts made during a calendar year by a donor to
ancestors or lineal descendents of the donor, the aggregate
amount of such gifts which are not included in the total
amount of gifts by reason of this subsection shall not be
less than 15 percent of the donor's earned income (as defined
in section 32(c)(2)) for the taxable year ending with or
within such calendar year.''
(b) Effective Date.--The amendment made by subsection (a)
shall apply to gifts made in calendar years beginning after
the date of the enactment of this section.

SEC. 6. INCREASE IN UNIFIED ESTATE AND GIFT TAX CREDITS.

(a) Estate Tax Credit.--
(1) Subsection (a) of section 2010 of the Internal Revenue
Code of 1986 (relating to unified credit against estate tax)
is amended by striking ``$192,800'' and inserting ``the
applicable credit amount''.
(2) Section 2010 of such Code is amended by redesignating
subsection (c) as subsection (d) and by inserting after
subsection (b) the following new subsection:
``(c) Applicable Credit Amount.--For purposes of this
section--
``(1) In general.--The applicable credit amount is the
amount of the tentative tax which would be determined under
the rate schedule set forth in section 2001(c) if the amount
with respect to which such tentative tax is to be computed
were $600,000.
``(2) Cost-of-living adjustments.--In the case of any
decedent dying in a calendar year after December 31, 1995,
the $600,000 amount set forth in paragraph (1) shall be
increased by an amount equal to--
``(A) $600,000, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year by substituting
`calendar year 1996' for `calendar year 1992' in subparagraph
(B) thereof.

Any increase determined under the preceding sentence shall be
rounded to the nearest multiple of $1,000.''
(3) Paragraph (1) of section 6018(a) of such Code is
amended by striking ``$600,000'' and inserting ``$600,000
(adjusted as provided in section 2010(c)(2)''.
(b) Unified Gift Tax Credit.--Paragraph (1) of section
2505(a) of such Code is amended by striking ``$192,800'' and
inserting ``the applicable credit amount in effect under
section 2010(c) for such calendar year''.
(c) Effective Date.--The amendments made by this section
shall apply to the estates of decedents dying, and gifts
made, after December 31, 1995.
______

By Mr. LAUTENBERG (for himself and Mr. Bradley):
S. 162. A bill to amend the Natural Gas Pipeline Safety Act of 1968
and the Hazardous Liquid Pipeline Safety Act of 1979 to improve natural
gas and hazardous liquid pipeline safety, in response to the natural
gas pipeline accident in Edison, New Jersey, and for other purposes; to
the Committee on Commerce, Science, and Transportation.

the safety improvement act of 1995

Mr. LAUTENBERG. Mr. President, today I am introducing the
National Gas Pipeline Safety Improvement Act of 1995. This bill
dramatically decreases the chances of pipeline accidents and reduces
the risk to those who live, work, or go to school near a pipeline.
This bill is designed to prevent disasters like the one that occurred
last March 23, in Edison, NJ. The whole Nation witnessed the ball of
fire over Edison in the wake of the explosion. Every American who saw
that image on television shuddered.
All too often, when a disaster happens, people focus on it for a few
days and then shift their attention to other events. That has not
happened in the wake of the Edison explosion and will not happen. I
won't let that happen. Senator Bradley won't let it happen. And the
people of Edison won't let it happen.
I was the destruction in Edison after the explosion. The explosion
was devastating to the families involved and traumatic to all residents
of my State, which is home to a number of pipelines. I have talked to
families who lost everything but the clothes on their backs. I have
seen the emotional fallout--the children and adults who replay the
events of that evening each night before they drift into a fitful
sleep. And I know that even now, almost a year later, those people
still have very real problems.
Edison was not an isolated event. Since that terrible night on March
23, there have been other pipeline problems. And there were problems
that preceded it. My major concern is what happened in Edison; but, Mr.
President, we must make sure it doesn't happen in any community, to any
American.
I believe that if this bill had been law before that fateful night
last March things could have been very different.
Let me briefly describe the five major elements of my legislation:
First, my legislation would beef up compliance with existing laws by
making sure that the Department of Transportation has the resources
necessary to conduct regular oversight inspections of corporations with
pipeline operations in New Jersey and around the country.
The bill achieves this goal by providing the U.S. DOT with the
authority to recoup the cost of accident investigations from pipeline
companies. In this way, DOT inspections are not interrupted when Office
of Pipeline Safety personnel and resources are diverted to investigate
a major pipeline failure.
Second, the bill would prevent accidents before they happen. Our
legislation will increase funding to States to advertise one-call
notification systems and expand the DOT role in pipeline safety to
include pipeline safety awareness programs.
One-call notification systems require contractors to learn the
location of underground facilities before they dig.
Third, the bill directs the Secretary to establish an electronic data
system on existing pipelines. This will provide an adequate data base
so DOT can cope with the potential problems we face.
This system will provide information on the nature, extent, and
geologic location of pipeline facilities to facilitate risk assessment
and safety planning with respect to such facilities.
Fourth, we need to target attention to areas where the greatest
potential threat exists. The legislation will increase inspection and
siting requirements for pipelines in high density population areas. I
would also encourage
[[Page S489]] people who live near a pipeline to report suspicious
dumping or digging on a pipeline right-of-way.
Finally, we need to have stronger punishment to deter negligent or
willful violations of law. Our bill would make it a Federal crime to
illegally dump on pipeline right-of-way and mandate the installation
and use of remotely controlled shutoff valves.
Mr. President, last June DOT's Office of Pipeline Safety sponsored a
pipeline safety summit. The summit was designed to develop a public/
private agenda that establishes priorities for pipeline safety
initiatives and identifies the next steps needed to make them a
reality. The report developed from the suggestions at the summit will
form a blueprint for action. I expect that report to be completed soon.
When it is, I will develop additional legislative proposals based upon
it.
Meanwhile, I would like to remind my colleagues that no State in the
Union is exempt from the type of disaster that happened in Edison, NJ.
Mr. President, I would encourage all of my colleagues to examine and
cosponsor the National Gas Pipeline Safety Improvement Act of 1995.
I ask unanimous consent that the text of the National Gas Pipeline
Safety Improvement Act of 1994 be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 162

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 ``Pipeline Safety Improvement
Act of 1994''.

SEC. 2. RECOVERY BY SECRETARY OF TRANSPORTATION OF COSTS OF
INVESTIGATION OF CERTAIN PIPELINE ACCIDENTS.

(a) Natural Gas Pipeline Accidents.--Section 14 of the
Natural Gas Pipeline Safety Act of 1968 (49 U.S.C. App. 1681)
is amended by adding at the end the following:
``(g)(1)(A) Subject to paragraphs (2) and (3), the
Secretary may recover from any person who engages in the
transportation of gas, or who owns or operates pipeline
facilities, the costs incurred by the Secretary--
``(i) in investigating an accident with respect to such
transportation or facilities; and
``(ii) in overseeing the response of the person to the
accident.
``(B) For the purposes of this paragraph, the costs
incurred by the Secretary in an investigation of an accident
may include the cost of hiring additional personnel
(including personnel to support monitoring activities by the
Office of Pipeline Safety), the cost of tests or studies, and
travel and administrative costs associated with the
investigation.
``(2) The Secretary may not recover costs under this
subsection with respect to an accident unless the accident--
``(A) results in death or personal injury; or
``(B) results in property damage (including the cost of any
lost natural gas) and environmental damage (including the
cost of any environmental remediation) in an amount in excess
of $250,000.
``(3) The amount that the Secretary may recover under this
subsection with respect to an accident may not exceed
$500,000.
``(4)(A) Amounts recovered by the Secretary under this
subsection shall be available to the Secretary for purposes
of the payment of the costs of investigating and overseeing
responses to accidents under this subsection. Such funds
shall be available to the Secretary for such purposes without
fiscal year limitation.
``(B) Such amounts shall be used to supplement and not to
supplant other funds made available to the Secretary for such
purposes.''.
(b) Hazardous Liquid Pipeline Accidents.--Section 211 of
the Hazardous Liquid Pipeline Safety Act of 1979 (title II of
Public Law 96-129; 49 U.S.C. App. 2010) is amended by adding
at the end the following:
``(g)(1)(A) Subject to paragraphs (2) and (3), the
Secretary may recover from any person who engages in the
transportation of hazardous liquids, or who owns or operates
pipeline facilities, the costs incurred by the Secretary--
``(i) in investigating an accident with respect to such
transportation or facilities; and
``(ii) in overseeing the response of the person to the
accident.
``(B) For the purposes of this paragraph, the costs
incurred by the Secretary in an investigation of an accident
may include the cost of hiring additional personnel
(including personnel to support monitoring activities by the
Office of Pipeline Safety), the cost of tests or studies, and
travel and administrative costs associated with the
investigation.
``(2) The Secretary may not recover costs under this
subsection with respect to an accident unless the accident--
``(A) results in death or personal injury; or
``(B) results in property damage (including the cost of any
lost hazardous liquid) and environmental damage (including
the cost of any environmental remediation) in an amount in
excess of $250,000.
``(3) The amount that the Secretary may recover under this
subsection with respect to an accident may not exceed
$500,000.
``(4)(A) Amounts recovered by the Secretary under this
subsection shall be available to the Secretary for purposes
of the payment of the costs of investigating and overseeing
responses to accidents under this subsection. Such funds
shall be available to the Secretary for such purposes without
fiscal year limitation.
``(B) Such amounts shall be used to supplement and not to
supplant other funds made available to the Secretary for such
purposes.''.

SEC. 3. GRANTS TO STATES AND ONE-CALL NOTIFICATION SYSTEMS TO
PROMOTE USE OF SUCH SYSTEMS.

(a) Grants to States.--Subsection (c) of section 20 of the
Natural Gas Pipeline Safety Act of 1968 (49 U.S.C. App. 1687)
is amended by adding at the end the following: ``The
Secretary may make a grant to a State for development and
establishment of a one-call notification system only if the
State ensures that the cost of establishing and operating the
system are shared equitably by persons owning or operating
underground facilities.''.
(b) Grants to Systems.--Such subsection is further
amended--
(1) by striking ``Grants to States.--'' and inserting
``Grants to States and Systems.--(1)''; and
(2) by adding at the end the following:
``(2)(A) The Secretary may also make grants to one-call
notification systems for activities relating to the promotion
of the utilization of such systems.
``(B) The Secretary shall ensure that the Federal share of
the cost of the activities referred to in subparagraph (A)
under any grant made under this paragraph does not exceed 50
percent of the cost of such activities.''.
(c) Sanctions.--Subsection (b)(9) of such section is
amended by inserting ``, or that would provide for effective
civil or criminal penalty sanctions or equitable relief
appropriate to the nature of the offense'' after ``12 of this
Act''.
(d) Conforming Amendment.--Subsection (f) of such section
is amended by striking out ``subsection (c)'' and inserting
in lieu thereof ``subsection (c)(1)''.

SEC. 4. PREVENTION OF DAMAGE TO PIPELINE FACILITIES.

(a) Natural Gas Pipeline Facilities.--Section 14(a) of the
Natural Gas Pipeline Safety Act of 1968 (49 U.S.C. App.
1681(a)) is amended by inserting after ``and training
activities'' the following: ``and promotional activities
relating to prevention of damage to pipeline facilities''.
(b) Hazardous Liquid Pipeline Facilities.--Section 211(a)
of the Hazardous Liquid Pipeline Safety Act of 1979 (title II
of Public Law 96-129; 49 U.S.C. App. 2010(a)) is amended by
inserting after ``and training activities'' the following:
``and promotional activities relating to prevention of damage
to pipeline facilities''.

SEC. 5. ELECTRONIC DATA ON PIPELINE FACILITIES FOR RISK
ASSESSMENT AND SAFETY PLANNING.

(a) Authority To Develop.--The Secretary of Transportation
may develop an electronic data base containing uniform
information on the nature, extent, and geographic location of
pipeline facilities. The purpose of the data base shall be to
provide information on such facilities to the Secretary,
owners of pipeline facilities, as persons engaged in
transporting gas or hazardous liquids through pipeline
facilities, and for secured use by State agencies concerned
with land use planning, environmental regulation, and
pipeline regulatory oversight, in order to facilitate risk
assessment and safety planning with respect to such
facilities.
(b) Contract and Grant Authority.--(1) Subject to paragraph
(2), the Secretary may develop the data base described under
subsection (a) by entering into contracts or cooperative
agreements with any entity that the Secretary determines
appropriate for that purpose and by making grants to States
or institutions of higher education for that purpose.
(2) The Secretary shall ensure that the Federal share of
the cost of any activities carried out under a grant or
cooperative agreement made under this subsection does not
exceed 50 percent of the cost of such activities.
(c) Use of Geographic Information System Technology.--In
developing the data base described in subsection (a), the
Secretary shall, to the maximum extent practicable, develop a
data base that--
(1) utilizes Geographic Information System technology or
any similar technology providing data of an equivalent
quality and usefulness; and
(2) permits ready incorporation of data and information
from a variety of sources.
(d) Definition.--For purposes of this section, the term
``pipeline facility'' has the meaning given such term in
section 20(e) of the Natural Gas Pipeline Safety Act of 1968
(49 U.S.C. App. 1687(e)).

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

(a) Natural Gas Pipeline Safety Act of 1968.--(1) Section
17(a) of the Natural Gas Pipeline Safety Act of 1968 (49
U.S.C. App. 1684(a)) is amended--
(A) in paragraph (12), by striking ``and'';
(B) by striking paragraph (13); and
(C) by adding after paragraph (12) the following new
paragraphs:
[[Page S490]] ``(13) $20,000,000 for the fiscal year ending
September 30, 1995;
``(14) $30,000,000 for the fiscal year ending September 30,
1996; and
``(15) $35,000,000 for the fiscal year ending September 30,
1997.''.
(2) Section 17(c) of the Natural Gas Pipeline Safety Act of
1968 (49 U.S.C. App. 1684(c)) is amended by striking ``and
$10,000,000 for the fiscal year ending September 30, 1995''
and inserting in lieu thereof ``$16,500,000 for the fiscal
year ending September 30, 1995, $19,000,000 for the fiscal
year ending September 30, 1996, and $21,500,000 for the
fiscal year ending September 30, 1997''.
(b) Hazardous Liquid Pipeline Safety Act of 1979.--Section
214(a) of the Hazardous Liquid Pipeline Safety Act of 1979
(49 U.S.C. App. 2013(a)) is amended--
(1) in paragraph (12), by striking ``and'';
(2) by striking paragraph (13); and
(3) by adding after paragraph (12) the following new
paragraphs:
``(13) $7,000,000 for the fiscal year ending September 30,
1995;
``(14) $10,000,000 for the fiscal year ending September 30,
1996; and
``(15) $11,000,000 for the fiscal year ending September 30,
1997.''.

SEC. 7. SITING OF INTERSTATE TRANSMISSION FACILITIES.

(a) Siting Guidelines.--Within 2 years after the date of
enactment of this Act, the Federal Energy Regulatory
Commission shall review its practices and guidelines for
siting natural gas interstate transmission facilities in
urban areas to determine whether changes are needed in the
areas of--
(1) selecting routes for pipelines; and
(2) determining the appropriate width of rights-of-way.
(b) Educational Information for Local Jurisdictions.--
(1)(A) Within 2 years after the date of enactment of this
Act, the Secretary, in consultation with the Federal Energy
Regulatory Commission, shall make educational information
available, regarding natural gas interstate transmission
facilities permits and rights-of-way and issues with respect
to development in the vicinity of such interstate
transmission facilities, for distribution to appropriate
agencies of local governments with jurisdiction over the
lands through which natural gas interstate transmission
facilities pass.
(B) For purposes of this section, the term ``interstate
transmission facilities'' has the meaning given such term in
section 2(8) of the Natural Gas Pipeline Safety Act of 1968
(49 U.S.C. App. 1671(8)).
(2)(A) Within 2 years after the date of enactment of this
Act, the Secretary shall make educational information
available, regarding hazardous liquid interstate pipeline
facilities rights-of-way and issues with respect to
development in the vicinity of such interstate pipeline
facilities, for distribution to appropriate agencies of local
governments with jurisdiction over the lands through which
hazardous liquid interstate pipeline facilities pass.
(B) For purposes of this paragraph, the term ``interstate
pipeline facilities'' has the meaning given such term in
section 202(5) of the Hazardous Liquid Pipeline Safety Act of
1979 (49 U.S.C. App. 2001(5)).
(3) There are authorized to be appropriated to the
Secretary of Energy for carrying out this subsection,
$2,000,000, to remain available until expended.

SEC. 8. DUMPING WITHIN PIPELINE RIGHTS-OF-WAY.

(a) Natural Gas Pipeline Safety Act of 1968.--
(1) Amendment.--The Natural Gas Pipeline Safety Act of 1968
(49 U.S.C. App. 1671 et seq.) is amended by adding at the end
the following new section:

``SEC. 22. DUMPING WITHIN PIPELINE RIGHTS-OF-WAY.

``(a) Prohibition.--No person shall excavate within the
right-of-way of a natural gas interstate transmission
facility, or any other limited area in the vicinity of such
interstate transmission facility established by the
Secretary, and dispose solid waste therein.
``(b) Definition.--For purposes of this section, the term
`solid waste' has the meaning given such term in section
1004(27) of the Solid Waste Disposal Act (42 U.S.C.
6903(27)).''.
(2) Conforming amendment.--Section 11(a)(1) of the Natural
Gas Pipeline Safety Act of 1968 (49 U.S.C. App. 1679a(a)(1))
is amended by striking ``or section 20(h)'' and inserting in
lieu thereof ``, section 20(h), or section 22(a)''.
(b) Hazardous Liquid Pipeline Safety Act of 1979.--
(1) Amendment.--The Hazardous Liquid Pipeline Safety Act of
1979 (49 U.S.C. App. 2001 et seq.) is amended by adding at
the end the following new section:

``SEC. 221. DUMPING WITHIN PIPELINE RIGHTS-OF-WAY.

``(a) Prohibition.--No person shall excavate within the
right-of-way of a hazardous liquid interstate pipeline
facility, or any other limited area in the vicinity of such
interstate pipeline facility established by the Secretary,
and dispose solid waste therein.
``(b) Definition.--For purposes of this section, the term
`solid waste' has the meaning given such term in section
1004(27) of the Solid Waste Disposal Act (42 U.S.C.
6903(27)).''.
(2) Conforming amendment.--Section 208(a)(1) of the
Hazardous Liquid Pipeline Safety Act of 1979 (49 U.S.C. App.
2007(a)(1)) is amended by inserting ``or section 221(a)''
after ``section 207(a)''.

SEC. 9. PERIODIC INSPECTION BY INSTRUMENTED INTERNAL
INSPECTION DEVICES.

(a) Natural Gas Pipeline Safety Act of 1968.--Section
3(g)(2) of the Natural Gas Pipeline Safety Act of 1968 (49
U.S.C. App. 1672(g)(2)) is amended--
(1) by striking ``Not later than 3 years after the date of
the enactment of this paragraph'' and inserting in lieu
thereof ``Not later than 1 year after the date of the
enactment of the Natural Gas Pipeline Safety Improvement Act
of 1994''; and
(2) in the first sentence, by inserting ``and shall
prescribe a schedule or schedules for such inspections''
after ``operator of the pipeline''.
(b) Hazardous Liquid Pipeline Safety Act of 1979.--Section
203(k)(2) of the Hazardous Liquid Pipeline Safety Act of 1979
(49 U.S.C. App. 2002(k)(2)) is amended--
(1) by striking ``Not later than 3 years after the date of
the enactment of this paragraph'' and inserting in lieu
thereof ``Not later than 1 year after the date of the
enactment of the Natural Gas Pipeline Safety Improvement Act
of 1994''; and
(2) in the first sentence, by inserting ``and shall
prescribe a schedule or schedules for such inspections''
after ``operator of the pipeline''.

SEC. 10. PROMOTING PUBLIC AWARENESS FOR NEIGHBORS OF
PIPELINES.

(a) Natural Gas Pipeline Safety Act of 1968.--Section 18 of
the Natural Gas Pipeline Safety Act of 1968 (49 U.S.C. App.
1685) is amended by adding at the end the following new
subsections:
``(c) Promoting Public Awareness for Neighbors of
Pipelines.--Not later than 1 year after the date of enactment
of this subsection, and annually thereafter, the owner or
operator of each interstate transmission facility shall
notify all residents within 1000 yards, or such other
distance as the Secretary determines appropriate, of such
interstate transmission facility of--
``(1) the general location of the interstate transmission
facility;
``(2) a request for reporting of any instances of
excavation or dumping on or near the interstate transmission
facility;
``(3) a phone number to use to make such reports; and
``(4) appropriate procedures for such residents to follow
in response to accidents concerning interstate transmission
facilities.
``(d) Public Education.--The Secretary shall develop, in
conjunction with appropriate representatives of the natural
gas pipeline industry, public service announcements to be
broadcast or published to educate the public about pipeline
safety.''.
(b) Hazardous Liquid Pipeline Safety Act of 1979.--Section
212 of the Hazardous Liquid Pipeline Safety Act of 1979 (49
U.S.C. App. 2011) is amended by adding at the end the
following new subsections:
``(e) Promoting Public Awareness for Neighbors of
Pipelines.--Not later than 1 year after the date of enactment
of this subsection, and annually thereafter, the owner or
operator of each interstate pipeline facility shall notify
all residents within 1000 yards, or such other distance as
the Secretary determines appropriate, of such interstate
pipeline facility of--
``(1) the general location of the interstate pipeline
facility;
``(2) a request for reporting of any instances of
excavation or dumping on or near the interstate pipeline
facility;
``(3) a phone number to use to make such reports; and
``(4) appropriate procedures for such residents to follow
in response to accidents concerning interstate pipeline
facilities.
``(f) Public Education.--The Secretary shall develop, in
conjunction with appropriate representatives of the hazardous
liquid pipeline industry, public service announcements to be
broadcast or published to educate the public about pipeline
safety.''.

SEC. 11. REMOTELY OR AUTOMATICALLY CONTROLLED VALVES.

Section 3 of the Natural Gas Pipeline Safety Act of 1968
(49 U.S.C. App. 1672) is amended by adding at the end the
following new subsection:
``(l) Remotely or Automatically Controlled Valves.--Not
later than 18 months after the date of enactment of this
subsection, the Secretary shall issue regulations requiring
the installation and use, wherever technically and
economically feasible, of remotely or automatically
controlled valves that are reliable and capable of shutting
off the flow of gas in the event of an accident, including
accidents in which there is a loss of the primary power
source. In developing proposed regulations, the Secretary
shall consult with, and give special consideration to
recommendations of, appropriate groups from the gas pipeline
industry, such as the Gas Research Institute.''.

SEC. 12. BASELINE INFORMATION.

(a) Natural Gas Pipeline Safety Act of 1968.--Section 3(g)
of the Natural Gas Pipeline Safety Act of 1968 (49 U.S.C.
App. 1672(g)) is amended by adding at the end the following
new paragraph:
``(3) Baseline information.--Before transporting natural
gas through a pipeline which, because of its design,
construction, or replacement, is required by regulations
issued under paragraph (1) to accommodate the passage of
instrumented internal inspection devices, the owner or
operator of such pipeline shall, using such a device, obtain
baseline information with respect to the safety of the
pipeline.''.
[[Page S491]] (b) Hazardous Liquid Pipeline Safety Act of
1979.--Section 203(k) of the Hazardous Liquid Pipeline Safety
Act of 1979 (49 U.S.C. App. 2002(k)) is amended by adding at
the end the following new paragraph:
``(3) Baseline information.--Before transporting hazardous
liquids through a pipeline which, because of its design,
construction, or replacement, is required by regulations
issued under paragraph (1) to accommodate the passage of
instrumented internal inspection devices, the owner or
operator of such pipeline shall, using such a device, obtain
baseline information with respect to the safety of the
pipeline.''.
______

By Mr. BRADLEY:
S. 163. A bill to amend the Congressional Budget Act of 1974 to
require that allocations of budget authority and budget outlays made by
the Committee on Appropriations of each House be agreed to by joint
resolution and to permit amendments that reduce appropriations to also
reduce the relevant allocation and the discretionary spending limits;
to the Committee on the Budget and the Committee on Governmental
Affairs, jointly, pursuant to the order of August 4, 1977, with
instructions that if one Committee reports, the other Committee have
thirty days to report or be discharged.

THE SPENDING REDUCTION AND BUDGET CONTROL ACT OF 1995

Mr. BRADLEY. Mr. President, I introduce the Spending Reduction
and Budget Control Act of 1995. This legislation fundamentally and
powerfully reforms an appropriations and budget process that is too
stacked in favor of continued public spending and a status quo of
wasteful or outdated government programs.
I have been trying, along with a number of Senators, to reduce
taxpayer funding wasted on unnecessary programs and to reduce the
deficit. During the 103d Congress, over 20 separate, specific cut
proposals were voted on in the Senate. Only three were adopted. Three.
Clearly, any attempt to cut programs on the Senate floor is a long
shot.
The prospects are discouraging and, unfortunately, the Senate's own
rules work against any attempt to cut spending. My legislation targets
these rules and the substantial procedural obstacles faced by any
legislator who dares to cut appropriations, and to cut Federal
spending.
Every time one of us offers a amendment to cut a program, we face the
charge that these amendments do not lead necessarily to any deficit
reduction. This happened again and again during the last Congress as a
way to discourage Senators from supporting an amendment. Instead of
criticizing a proposed budget cut on substance, opponents simply remind
Senators that these budget cutters are just tilting at windmills.
The problem is that this argument is valid. The rules governing the
budget and appropriations process in fact make it nearly impossible to
cut a program and reduce spending. In reality, any attempt to do so
would almost certainly require a three-fifths supermajority to succeed.
And the cuts, even if agreed to by the Senate, can be easily reversed
in Conference.
My bill creates three key spending reforms, which I will describe in
detail. This legislation--first--creates real opportunities to
establish or redirect spending priorities, second--guarantees members
an ability to cut spending with a majority vote, and--third--constrains
the appropriations conferences to retain spending cuts agreed to in
both Houses of Congress.
Consider how we allocate spending around here: after Congress
approves the budget, the Appropriations Committees are allowed to
determine discretionary spending within the budget resolution targets.
While we debate functional categories during consideration of the
budget, the fact is that these categories (with the possible exception
of the defense category) are almost entirely irrelevant to the
appropriations process.
Constrained only by an overall discretionary spending cap, the
Appropriations Committee distributes spending authority to its 13
subcommittees. Based on virtually no guidelines, tens of billions of
dollars are allocated to the subcommittees. The rest of Congress never
knows how this was done or how their constituents' money can be spent
until they've been handed the results.
We need to return this power to the voters by allowing all of their
representatives to determine how to distribute the money within the
budget targets and subcommittee jurisdictions. That means nothing more
than requiring a vote by each House on how much money each subcommittee
should get. This is the first element of may bill.
Unfortunately, this step alone doesn't solve the problem. When the
appropriations bills come to the floor, there are different complex
rules but the same problem: the ability to cut spending is greatly
limited.
Here's how it works on the House and Senate floors: if you offer an
amendment to cut a specific spending item, such as the purchase of
Lawrence Welk's childhood home, and it passes, the category that money
came from remains intact, and the money you saved can be spent
somewhere else in that category.
If you want to avoid the trap I just described, you also have to get
approval to cut the overall allocation, and lock in that cut. These
allocations and caps are very important in Congress--we have rules that
say you need 60, not 50, votes to reduce these privileged entities. You
can raise taxes with 50 votes but to cut spending you need 60 votes.
The second part of my bill would straighten this out--if you have the
support of a majority, you can cut spending.
But there's one last problem. Even if the House and Senate agree on
similar program and allocation cuts, the Conference Committee that
creates the final bill is virtually free to reinsert whatever funding
might have been cut. This couldn't happen under the terms of the third
part of my proposal.
These problems are real. I know firsthand. This really happens. It
happened last Congress to a spending cut amendment I offered. After the
Senate agreed to cut $22 million from the High Temperature Gas Reactor,
the Conference Committee scaled the reduction down to $10 million. Half
a loaf, but still $10 million in deficit reduction, right? Wrong. The
Energy and Water Appropriations Bill--which cut funding for the HTGR by
$10 million--actually increased in size during the conference, gaining
an extra $20 million out of thin air.

Let me make an analogy between cutting spending under the present
system and basketball. Imagine you make a free throw--cut a specific
program--but it doesn't count unless you go back to the three-point
line and make the shot again--cut the allocation or cap. But it doesn't
count again unless you go back to the half-court line and sink a shot
from there--keep the cuts in a conference report. All of that in order
to get credit for a single free throw--or a single deficit reduction
amendment.
We've created this maze. We can straighten it out. We have to turn
the process around so that it's as easy to cut spending in the future
as it is to protect spending now. We need a new system, which would be
created by the adoption of my reforms.
Again, there are three key elements to my proposal:
First, we need to give to Congress the right to debate and set
priorities for discretionary spending. These are the most fundamental
decisions, and they are out of the reach of most of the Congress.
I propose we put these decisions before Congress, for approval or
modification by majority vote. My bill would require a separate
resolution to allocate spending among the appropriations subcommittees.
Both houses would have to agree beforehand on how much could be spent
by each house's subcommittees.
Second, we need to change the rules that prevent cuts in
appropriations spending from being actual budget cuts. These
obstacles--which were put in place to hinder an increase in spending--
represent bad policy when the goal is deficit reduction.
My legislation would allow cuts in programs and cuts in spending.
There would be several options: one, follow the status quo, and let
money saved from an appropriations cut amendment be spent elsewhere;
two, cut a program and cut the current year's allocation (thereby
reducing the deficit); or three, cut a program, cut the current budget,
and force a reduction in future budgets. All of these approaches would
require only a majority vote--not the current supermajority of 60
votes--to be adopted.
[[Page S492]] Third, real accountability is needed in conference
committees, where expensive deals are often cut. Even when the House
and Senate each cut programs, the compromise may turn out to be that no
program is cut.
My bill would change Senate rules to prohibit an Appropriations
Conference Committee from reporting a bill that cuts spending less than
either the House or Senate language. Even if the House and Senate cuts
are in different programs, the conference will have to reduce spending
by at a minimum the smaller of the two amounts. In other words, if the
House agrees to $100 million in cuts on a particular appropriations
bill, and the Senate agrees to $200 million on same bill, the Conferees
would be constrained to produce a Conference Report with at least $100
million in cuts included.
Are these budget reforms the answer to the deficit crisis? No.
Entitlement and tax expenditure outlays are both growing rapidly, and
neither can be addressed by changing congressional procedures. Even as
we tighten controls on discretionary spending, we must move forward to
confront the huge growth in the other two-thirds of the budget.
Americans are right when they think that we are truly inspired when
it comes to spending; we need to bring the same zeal to cutting
spending. We need basic reforms that assure that spending cuts are
spending cuts, not just reasons for another press release.
Mr. President, I urge my colleagues to consider this legislation
seriously. This bill would go a long way towards creating a rational,
balanced approach to the budget and spending. In my view, these changes
are needed and overdue.
Mr. President, I ask unanimous consent that the text of the bill and
additional material be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 163

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 ``Spending Reduction and
Budget Control Act of 1995''.

SEC. 2. JOINT RESOLUTION ALLOCATING APPROPRIATED SPENDING.

(a) Committee on Appropriations Resolution.--Section 302(b)
of the Congressional Budget Act of 1974 is amended to read as
follows:
``(b) Committee Suballocations.--
``(1) Committees on appropriations.--(A) As soon as
practical after a concurrent resolution on the budget is
agreed to, the Committee on Appropriations of each House
shall, after consulting with Committee on Appropriations of
the other House, report to its House an original joint
resolution on appropriations allocations (referred to in the
paragraph as the `joint resolution') that contains the
following:
``(i) A subdivision among its subcommittees of the
allocation of budget outlays and new budget authority
allocated to it in the joint explanatory statement
accompanying the conference report on such concurrent
resolution.
``(ii) A subdivision of the amount with respect to each
such subcommittee between controllable amounts and all other
amounts.

The joint resolution shall be placed on the calendar pending
disposition of such joint resolution in accordance with this
subsection.
``(B)(i) Except as provided in clause (ii), the provisions
of section 305 for the consideration in the Senate of
concurrent resolutions on the budget and conference reports
thereon shall also apply to the consideration in the Senate
of joint resolutions reported under this paragraph and
conference reports thereon.
``(ii)(I) Debate in the Senate on any joint resolution
reported under this paragraph, and all amendments thereto and
debatable motions and appeals in connection therewith, shall
be limited to not more than 20 hours.
``(II) The Committee on Appropriations shall manage the
joint resolution.
``(C) The allocations of the Committees on Appropriations
shall not take effect until the joint resolution is enacted
into law.
``(2) Other committees.--As soon as practicable after a
concurrent resolution on the budget is agreed to every
committee of the House and Senate (other than the Committees
on Appropriations) to which an allocation was made in such
joint explanatory statement shall, after consulting with the
committee or committees of the other House to which all or
part of its allocation was made--
``(A) subdivide such allocation among its subcommittees or
among programs over which it has jurisdiction; and
``(B) further subdivide the amount with respect to each
subcommittee or program between controllable amounts and all
other amounts.

Each such committee shall promptly report to its House the
subdivisions made by it pursuant to this paragraph.''.
(b) Point of Order.--Section 302(c) of the Congressional
Budget Act of 1974 is amended by striking ``such committee
makes the allocation or subdivisions required by'' and
inserting ``such committee makes the allocation or
subdivisions in accordance with''.
(c) Alteration of Allocations.--Section 302(e) of the
Congressional Budget Act of 1974 is amended to read as
follows:
``(e) Alteration of Allocations.--
``(1) Any alteration of allocations made under paragraph
(1) of subsection (b) proposed by the Committee on
Appropriations of either House shall be subject to approval
as required by such paragraph.
``(2) At any time after a committee reports the allocations
required to be made under subsection (b)(2), such committee
may report to its House an alteration of such allocations.
Any alteration of such allocations must be consistent with
any actions already taken by its House on legislation within
the committee's jurisdiction.''.

SEC. 3. AMENDMENTS TO APPROPRIATIONS BILL.

Section 302 of the Congressional Budget Act of 1974 is
amended by--
(1) redesignating subsection (g) as subsection (h); and
(2) inserting after subsection (f) the following:
``(g) Amendments to Appropriations Act Reducing
Allocations.--
``(1) Floor amendments.--Notwithstanding any other
provision of this Act, an amendment to an appropriations bill
shall be in order if--
``(A) such amendment reduces an amount of budget authority
provided in the bill and reduces the relevant subcommittee
allocation made pursuant to subsection (b)(1) and the
discretionary spending limits under section 601(a)(2) for the
fiscal year covered by the bill; or
``(B) such amendment reduces an amount of budget authority
provided in the bill and reduces the relevant subcommittee
allocation made pursuant to subsection (b)(1) and the
discretionary spending limits under section 601(a)(2) for the
fiscal year covered by the bill and the 4 succeeding fiscal
years.
``(2) Conference reports.--(A) It shall not be in order to
consider a conference report on an appropriations bill that
contains a provision reducing subcommittee allocations and
discretionary spending included in both the bill as passed by
the Senate and the House of Representatives if such provision
provides reductions in such allocations and spending that are
less than those provided in the bill as passed by the Senate
or the House of Representatives.
``(B) It shall not be in order in the Senate or the House
of Representatives to consider a conference report on an
appropriations bill that does not include a reduction in
subcommittee allocations and discretionary spending in
compliance with subparagraph (A) contained in the bill as
passed by the Senate and the House of Representatives.''.

SEC. 4. SECTION 602(b) ALLOCATIONS.

Section 602(b)(1) of the Congressional Budget Act of 1974
is amended to read as follows:
``(1) Suballocations by appropriations committees.--The
Committee on Appropriations of each House shall make
allocations under subsection (a)(1)(A) or (a)(2) in
accordance with section 302(b)(1).''.
____

Spending Reduction and Budget Control act of 1995--Legislative Summary

The legislation introduced today increases the likelihood
of deficit reduction and the accountability of the budget
process. The amendment gives legislators new tools to address
spending priorities and deficit reduction.

step 1: fix the allocation process

Problem

A central decision in the Appropriations process is the
distribution of available spending authority (BA and outlays)
among the thirteen subcommittees. While the Budget Resolution
may fix the total spending ceiling, the ``functional
categories'' provide little guidance for these ``302/602
(B)'' allocations. As a result, the Appropriations Committee
made fundamental decisions about spending priorities that are
not subject to the approval by the entire Senate.
Additionally, the House and Senate figures often differ.

Solution

The Congress would required to consider and approve
spending targets for each appropriation subcommittee. This
would be done by a Joint Resolution which would:
Originate and be managed within the Appropriations
Committees;
Have privileged status and supersede other pending
business;
Limit debate (Reconciliation-type rules--20 hour debate,
tight germaneness rules for amendments)
Specify allocations by Subcommittee
Meet appropriate overall Budget cap
Be passed by both Houses in final form prior to the
approval of any Appropriations Bills by either House.
Subcommittees allocations can be modified in subsequent
Appropriations Bills:--downward by a majority vote--upward by
a three-fifths vote, as is the case today.
[[Page S493]] step 2: amendments to appropriations bills should be able
to produce budget savings with a majority vote

Problem

A valid criticism to any amendment to cut Appropriations is
that such amendments are unlikely to result in deficit
savings. If a legislator succeeds in cutting an account, the
funds saved remain available under the Subcommittee's 302(b)/
602(b) allocation to be spent on other items. If the
appropriations cuts amendment contains reductions in the
302(b)/602(b) allocation, then it is subject to a
``supermajority'' (i.e., three-fifths vote) point of order.
Finally, even if both Houses pass similar cuts or if both
Houses come in below the 302(b)/602(b) allocation figures,
there is no explicit constraint on Conference to maintain
deficit reduction.

Solution

Senators and Representatives would be allowed to offer
appropriations cut amendments in one of three forms:
(i) Cut the program account, but retain current law
subcommittee allocation and discretionary cap figures;
(ii) Cut the program account and drop subcommittee
allocation and discretionary cap figures accordingly for
current year;
(iii) Cut the program account and drop subcommittee
allocation figure for current year and discretionary cap
figure for current year and for an additional four years.
Any amendment offered in one of the above forms would not
be subject to a three-fifths vote point of order.

step 3: focus the conference committees on deficit reduction

Problem

Even if each House adopted reduced spending proposals,
there's no guarantee that the conference committee will
reduce spending. In fact, our experience is that the
conference committee can drop cut proposals and even report a
bill which increases spending higher than that reported by
either House.

Solution

Conference would not be able to adopt a final 302(b)/602(b)
allocation figure higher than the highest of the House or
Senate figures; if two Houses agree on different budget cuts
on the same appropriations bill, Conference would be required
to pass savings equal to the lesser of the two packages of
budget cuts.
______

By Mr. BRADLEY (for himself, Mr. Specter, Mr. Lautenberg and Mr.
Exon):
S. 164. A bill to require States to consider adopting mandatory,
comprehensive, Statewide one-call notification systems to protect
natural gas and hazardous liquid pipelines and all other underground
facilities from being damaged by excavations, and for other purposes;
to the Committee on Commerce, Science, and Transportation.

the comprehensive one-call notification act of 1995

Mr. BRADLEY. Mr. President, I introduce the Comprehensive One-
call Notification Act. I am very pleased to have as cosponsors of this
bill Senator Specter, Senator Lautenburg, and the ranking member of the
Commerce Committee's Transportation Subcommittee, Senator Exon.
The bill we are introducing today will create new assurance that
accidents involving pipelines and underground utilities won't occur.
Every year, multiple fatalities and tens of millions of dollars worth
of damage occur simply because people dig where they shouldn't. These
third-party incidents are the single leading cause of accidents
involving pipelines. According to the Department of Transportation,
these accidents result in over half of the fatalities and half of the
property damage caused by all pipeline failures. The Comprehensive One-
Call Notification Act will create a mechanism to prevent the
inadvertent injury and the potential tragedy.
Last March 23, just before midnight, an explosion ripped through the
community of Durham Woods in Edison, NJ. Within minutes, eight
apartment buildings were ablaze. Soon they were gone, wiped out by a
fireball that lit up the sky over hundreds of square miles. One life
was lost. Hundreds lost their homes. Many more were evacuated.
The injuries were miraculously low. But who knows how many others
still lie awake at night, wondering whether it could happen again and
fearing the future.
Reflecting on the accident today, it seems hard to fault anyone for
their response to the tragedy. The community pulled together to help
out those in need. Food, emergency shelter, general support and
financial assistance were offered amply and unconditionally in the
hours and days following the accident.
However, great as this response was, this is not what is most
striking about this accident. What is most striking about the accident
is how lucky we were. Who would ever think that, given the timing and
the magnitude of the explosion, so many people--many fleeing with just
the clothes they had on--would escape without serious injury? Few who
have walked around that crater, seen the charged cars and the empty
building foundations would disagree with the conclusion that many there
were saved only by a miracle.
Unfortunately, miracles are a poor basis for public policy. You can't
count on them. I am not about to count on them. The
fact is that there is no margin for error in today's pipeline
industry. The natural gas industry does have an excellent safety
record, especially when you consider that 25 percent of the energy we
consume moves by these pipelines. For example, there are seven major
pipelines that cross my home State, and hundreds of smaller ones. But
the Edison accident never should have happened.

We need to acknowledge Edison for what it is: a breakdown in the
regulatory and safety program. When the National Transportation Safety
Board testified before the Energy Committee in April, their analysis
pointed nearly conclusively to multiple gouges on the pipeline as the
probable cause of the disaster. These marks appeared to be due to some
powerful machinery, such as a backhoe, that struck the pipeline
repeatedly.
At this point, we don't know whether the damage was unintentional or
on purpose. We don't know who struck the pipeline or whether they might
have been aware of the possibility. We do know, however, that there was
no requirement of utility notification prior to the excavation. And we
know that there is no penalty for digging in the vicinity of the
pipeline without notifying the utility operator.
This is simply wrong, and represents a failure of public policy. At
the hearing before the Senate Energy Committee, every witness agreed
that we need a new national program of utility notification. If someone
is excavating or grading a site, there has to be proper notification
and it has to be mandatory--not voluntary--with penalties for
negligence or noncompliance. This national program will be created by
the comprehensive legislation we are considering today.
Right now, the gas industry is making plans for a rapid expansion
into new markets, particularly in the areas of natural gas vehicles and
electric power production. The Department of Energy has predicted that
the gas market will expand by a third over the next 15 years. If
accidents occur--regardless of who is at fault or how the industry
follows up--this growth will not. It is that simple.
The telecommunications industry is likewise spending billions to
expand its infrastructure and capabilities. If this investment,
however, is held hostage by every backhoe operator in every State,
without serious controls and oversight, we won't see a lot of traffic
on this information superhighway.
In one sense, this bill is unnecessary. Sooner or later, I predict,
every State will adopt one-call provisions like those identified in
this legislation. The reason is simple: sooner or later, every State
will experience a major accident involving third-party damage to
underground utilities. Then, just as has happened in New Jersey, one-
call provisions will be introduced or strengthened. This is not an
issue of cost. Most States have these programs already. The problem is
that, absent sufficient political motivation, these programs are just
not as effective as they need to be.
We shouldn't have to wait for another disaster to understand the
importance of this modest bill. This comprehensive one-call legislation
represents a necessary step if we are to do everything reasonable and
appropriate to protect the public from the kind of tragedy that struck
Edison.
This bill, obviously, won't guarantee that another Edison will never
occur. But mandatory, truly comprehensive one-call programs, based on a
national model, are a good place to start.
Passage of this legislation will send a message to the public that
our concern is serious and the risks are real. A national program will
create a new level of awareness and this awareness would
[[Page S494]] be a powerful ally in our fight for increased safety.
Mr. President, last Congress, this legislation was passed twice by
the House of Representatives and was passed unanimously by the Senate
Commerce Committee. This bill was on the verge of final approval when
the Senate adjourned last October.
It is clearly time to pass this legislation. I believe that there is
no substantive reason why we cannot and should not act. It is endorsed
very broadly by industry. It is needed by the general public. I urge
all my colleagues to consider this bill carefully and approve it
without delay.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 164

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 ``Comprehensive One-Call
Notification Act of 1995''.

SEC. 2. DEFINITIONS.

In this Act:
(1) Damage.--The term ``damage'' means--
(A) impact or contact with an underground facility, its
appurtenances, or its protective coating; or
(B) weakening of the support for the facility or protective
housing that requires repair.
(2) Excavation.--The term ``excavation''--
(A) means an operation in which earth, rock, or other
material in the ground is moved, removed, or otherwise
displaced by means of a mechanized tool or equipment or by
means of an explosive; but
(B) does not include--
(i) a generally accepted normal agricultural practice or
activity taken in support of such a practice, as determined
by each State, including tilling of the soil for agricultural
purposes to a depth of 18 inches or less;
(ii) a generally accepted normal lawn and garden activity,
as determined by each State;
(iii) the excavation of a gravesite in a cemetery; or
(iv) such routine railroad maintenance as such maintenance
would disturb the ground to a depth of no more than 18
inches, as measured from the surface of the ground, in
accordance with rules adhered to by a railroad requiring
underground facilities other than its own to be buried 3 feet
or lower on its property or along its right-of-way.
(3) Excavator.--The term ``excavator'' means a person that
conducts excavation.
(4) Facility operator.--The term ``facility operator''
means a person that operates an underground facility.
(5) Hazardous liquid.--The term ``hazardous liquid'' has
the meaning stated in section 60101(a)(4) of title 49, United
States Code.
(6) Natural gas.--The term ``natural gas'' has the meaning
given the term ``gas'' in section 60101(a)(2) of title 49,
United States Code.
(7) Person.--The term ``person'' includes an agency of
Federal, State, or local government.
(8) Routine railroad maintenance.--The term ``routine
railroad maintenance'' includes such activities as ballast
cleaning, general ballast work, track lining and surfacing,
signal maintenance, and replacement of crossties.
(9) Secretary.--The term ``Secretary'' means the Secretary
of Transportation.
(10) State.--The term ``State'' has the meaning stated in
section 60101(a)(20) of title 49, United States Code.
(11) State program.--The term ``State program'' means the
program of a State to establish or maintain a one-call
notification system.
(12) Underground facility.--The term ``underground
facility''--
(A) means an underground line, system, or structure used
for gathering, storing, transmitting, or distributing oil,
petroleum products, other hazardous liquids, natural gas,
communication, electricity, water, steam, sewerage, or any
other commodity that the Secretary determines should be
included under the requirements of this Act; but
(B) does not include a portion of a line, system, or
structure if the person that owns or leases, or holds an oil
or gas mineral leasehold interest in, the real property in
which that portion is located also operates, or has
authorized the operation of, the line, system, or structure
only for the purpose of furnishing services or materials to
that person, except to the extent that that portion--
(i) contains predominantly natural gas or hazardous
liquids; and
(ii)(I) is located within an easement for a public road (as
defined under section 101(a) of title 23, United States
Code), or a toll highway, bridge, or tunnel (as described in
section 129(a)(2) of that title); or
(II) is located on a mineral lease and is within the
boundaries of a city, town, or village.

SEC. 3. NATIONWIDE TOLL-FREE NUMBER SYSTEM.

Within 1 year after the date of enactment of this Act, the
Secretary shall, in consultation with the Federal
Communications Commission, facility operators, excavators,
and one-call notification system operators, provide for the
establishment of a nationwide toll-free telephone number
system to be used by State one-call notification systems.
SEC. 4. STATE PROGRAMS.

(a) Consideration.--
(1) In general.--Each State shall consider whether to adopt
a comprehensive statewide one-call notification program with
each element described in section 5, to protect all
underground facilities from damage due to any excavation.
(2) New or existing program.--A State program may be
provided for through the establishment of a new program or
through modification or improvement of an existing program,
and may be implemented by a nongovernmental organization.
(b) Procedures.--
(1) Notice and hearing.--State consideration under
subsection (a) shall be undertaken after public notice and
hearing and shall be completed within 3 years after the date
of enactment of this Act.
(2) Part of general proceeding.--Such consideration may be
undertaken as part of any proceeding of a State with respect
to the safety of pipelines or other underground facilities.
(c) Compliance.--If a State fails to comply with the
requirements of subsection (a), the Secretary or any person
aggrieved by such failure may in a civil action obtain
appropriate relief against any appropriate officer or entity
of the State, including the State itself, to compel such
compliance.
(d) Appropriateness.--Nothing in this Act prohibits a State
from making a determination that it is not appropriate to
adopt a State program described in section 5, pursuant to its
authority under otherwise applicable State law.

SEC. 5. ELEMENTS OF STATE PROGRAM.

(a) In General.--Each State's consideration under section
4(a) shall include consideration of program elements that--
(1) provide for a one-call notification system or systems
that shall--
(A) apply to all excavators and to all facility operators;
(B) operate in all areas of the State and not duplicate the
geographical coverage of other one-call notification systems;
(C) receive and record appropriate information from
excavators about intended excavations;
(D) inform facility operators of any intended excavations
that may be in the vicinity of their underground facilities;
and
(E) inform excavators of the identity of facility operators
who will be notified of the intended excavation;
(2) provide for 24-hour coverage for emergency excavation,
with the manner and scope of coverage determined by the
State;
(3) employ mechanisms to ensure that the general public,
and in particular all excavators, are aware of the one-call
telephone number and the requirements, penalties, and
benefits of the State program relating to excavations;
(4) inform excavators of any procedures that the State has
determined must be followed when excavating;
(5) require that any excavator contact the one-call
notification system in accordance with State specifications,
which may vary depending on whether the excavation is short
term, long term, routine, continuous, or emergency;
(6) require facility operators to provide for locating and
marking or otherwise identifying their facilities at an
excavation site, in accordance with State specifications,
which may vary depending on whether the excavation is short
term, long term, routine, continuous, or emergency;
(7) provide effective mechanisms for penalties and
enforcement as described in section 6;
(8) provide for a fair and appropriate schedule of fees to
cover the costs of providing for, maintaining, and operating
the State program;
(9) provide an opportunity for citizen suits to enforce the
State program;
(10) require railroads to report any accidents that occur
during or as a result of routine railroad maintenance to the
Secretary and the appropriate local officials; and
(11) provide that when a facility operator believes that
its underground facility is not buried 3 feet or lower on
railroad property or right-of-way, the facility operator may
request permission to enter the railroad property or right-
of-way for the purpose of assessing the depth of such
underground facility and report its finding to the railroad.
(b) Exception.--When excavation is undertaken by or for a
person on real property that is owned or leased by, or in
which an oil or gas mineral leasehold interest is held by,
that person, and that person operates all underground
facilities located at the site of the excavation, a State
program may elect not to require that such person contact the
one-call notification system before conducting excavation.

SEC. 6. PENALTIES AND ENFORCEMENT.

(a) General Penalties.--Each State's consideration under
section 4(a) shall include consideration of a requirement
that any excavator or facility operator that violates the
requirements of the State program shall be liable for an
appropriate administrative or civil penalty.
(b) Increased Penalties.--If a violation results in damage
to an underground facility resulting in death, serious bodily
harm, or
[[Page S495]] actual damage to property exceeding $50,000, or
damage to a hazardous liquid underground facility resulting
in the release of more than 50 barrels of product, the
penalties shall be increased, and an additional penalty of
imprisonment may be assessed for a knowing and willful
violation.
(c) Decreased Penalties.--Each State's consideration under
section 4(a) shall include consideration of reduced penalties
for a violation, that results in or could result in damage,
that is promptly reported by the violator.
(d) Equitable Relief and Mandamus Actions.--Each State's
consideration under section 4(a) shall include consideration
of provisions for appropriate equitable relief and mandamus
actions.
(e) Immediate Citation of Violations.--Each State's
consideration under section 4(a) shall include consideration
of procedures for issuing a citation of violation at the site
and time of the violation.

SEC. 7. GRANTS TO STATES.

(a) Authority.--
(1) Funding.--Using $4,000,000 of the amounts previously
collected under section 7005 of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (previously codified as 49
U.S.C. App. 1682a) or section 60301 of title 49, United
States Code, for each of the fiscal years 1996, 1997, and
1998, to the extent provided in advance in appropriations
Acts, the Secretary shall make grants to States, or to
operators of one-call notification systems in such States,
that have elected to adopt a State program described in
section 5 or to establish and maintain a State program
pursuant to subsection (b) of this section.
(2) General purposes.--Grants under subsection (a) may be
used in--
(A) establishing one-call notification systems;
(B) modifying existing systems to conform to standards
established under this Act; and
(C) improving systems to exceed those standards.
(3) Particular uses.--Grants under subsection (a) may be
used to--
(A) improve communications systems linking one-call
notification systems;
(B) improve location capabilities, including training
personnel and developing and using location technology;
(C) improve record retention and recording capabilities;
(D) enhance public information and education campaigns;
(E) increase and improve enforcement mechanisms, including
administrative processing of violations; and
(F) otherwise further the purposes of this Act.
(b) Alternate Form of State Program.--The Secretary may
make a grant under subsection (a) to a State that establishes
or maintains a State program that differs from a State
program described in section 5 if the State program is at
least as protective of the public health and safety and the
environment as a State program described in section 5.

SEC. 8. DEPARTMENT OF TRANSPORTATION.

(a) Coordination With Other Responsibilities.--
(1) Coordination.--The Secretary shall coordinate the
implementation of this Act with the implementation of chapter
601 of title 49, United States Code.
(2) Review of programs.--Within 18 months after the date of
enactment of this Act, the Secretary shall review, and report
to Congress on, the extent to which any policies, programs,
and procedures of the Department of Transportation could be
used to achieve the purposes of this Act.
(b) Model Program.--
(1) Development.--
(A) Initial model program.--Within 1 year after the date of
enactment of this Act, the Secretary, in consultation with
facility operators, excavators, one-call notification system
operators, and State and local governments, shall develop and
make available to States a model State program, including a
model enforcement program.
(B) Amendments.--The model program may be amended by the
Secretary on the Secretary's initiative or in response to
reports submitted by the States pursuant to section 9 or as a
result of workshops conducted under paragraph (3).
(2) Mandatory elements.--The model program developed under
paragraph (1) shall include all elements of a State program
described in section 5.
(3) Other elements.--The Secretary shall consider
incorporating the following elements into the model program:
(A) Recordation of information.--The one-call notification
system or systems shall--
(i) receive and record appropriate information from
excavators about intended excavations, including--

(I) the name of the person contacting the one-call
notification system;
(II) the name, address, and telephone number of the
excavator;
(III) the specific location of the intended excavation,
along with the starting date thereof and a description of the
intended excavation activity; and
(IV) the name, address, and telephone number of the person
for whom the work is being performed; and

(ii) maintain records on each notice of intent to excavate
for the period of time necessary to ensure that such records
remain available for use in the adjudication of any claims
relating to the excavation.
(B) Provision of information.--The provision of information
on excavation requirements at the time of issuance of
excavation or building permits, or other specific mechanisms
for ensuring excavator awareness.
(C) Advance contact.--A requirement that any excavator must
contact the one-call notification system at least 2 business
days, and not more than 10 business days, before excavation
begins.
(D) Alternative notification procedures.--Alternative
notification procedures for excavation activities conducted
as a normal part of continuing operations within specific
geographic locations over an extended period of time.
(E) Marking of facilities; monitoring of excavation.--A
requirement that facility operators--
(i) provide for locating and marking, in accordance with
the American Public Works Association Uniform Color Code for
Utilities, or otherwise identifying, in accordance with
standards established by the State or the American National
Standards Institute, their underground facilities at the site
of an intended excavation within no more than 2 business days
after notification of such intended excavation; and
(ii) monitor such excavation as appropriate.
(F) Notification of no underground facilities.--Provision
for notification of excavators if no underground facilities
are located at the excavation site.
(G) Longer time limitations.--Provision for the approval of
a State program under this Act with time limitations longer
than those required under subparagraphs (C) and (E) of this
paragraph where special circumstances, such as severe weather
conditions or remoteness of location, pertain.
(H) Unknown locations.--Procedures for excavators and
facility operators to follow when the location of underground
facilities is unknown.
(I) Improvement of capabilities.--Procedures to improve
underground facility location capabilities, including
compiling and notifying excavators, facility operators, and
one-call centers of any information about previously unknown
underground facility locations when such information is
discovered.
(J) Alternative rules for timely compliance.--Alternative
rules for timely compliance with State program requirements
in emergency circumstances.
(K) Revocation of licenses and permits.--If a State has
procedures for licensing or permitting entities to do
business, procedures for the revocation of the license or
permit to do business of any excavator determined to be a
habitual violator of the requirements of the State program.
(4) Workshops.--Within 6 months after the date of enactment
of this Act, and annually thereafter, the Secretary shall
conduct workshops with facility operators, excavators, one-
call notification system operators, and State and local
governments in order to develop, amend, and promote the model
program, and to provide an opportunity to share information
among such parties and to recognize State programs that
exemplify the goals of this Act.
(c) Public Education.--The Secretary shall develop, in
conjunction with facility operators, excavators, one-call
notification system operators, and State and local
governments, public service announcements and other
educational materials and programs to be broadcast or
published to educate the public about one-call notification
systems, including the national phone number.

SEC. 9. STATE REPORTS.

(a) Requirement.--
(1) Initial report.--Within 3 years after the date of
enactment of this Act, each State shall submit to the
Secretary a report on progress made in implementing this Act.
(2) Status reports.--Within 4\1/2\ years after the date of
enactment of this Act, and annually thereafter, each State
shall report to the Secretary on the status of its State
program, if any, and its requirements, and any other
information the Secretary requires.
(b) Simplified Reporting Form.--Within 3 years after the
date of enactment of this Act, the Secretary shall develop
and distribute to the States a simplified form for complying
with the reporting requirements of subsection (a)(2).

SEC. 10. FEDERAL REPORT.

The Secretary shall report annually to Congress on the
number and circumstances surrounding accidents caused by
routine railroad maintenance.

SEC. 11. MORE PROTECTIVE SYSTEMS.

Nothing in this Act prohibits a State from implementing a
one-call notification system that provides greater protection
for underground facilities from damage due to excavation than
a system established pursuant to this Act.
SEC. 12. USE OF TECHNOLOGIES FOR REMOTE AND ABOVE-GROUND
PIPELINE LOCATION.

The Secretary shall consult with other agencies as to the
availability and affordability of technologies which will
help relocate pipelines from above-ground and remote
locations.
______

By Mr. DOMENICI (for himself, Mr. Bingaman, and Mr. Dole):
S. 166. A bill to transfer a parcel of land to the Taos Pueblo
Indians of New Mexico; to the Committee on Energy and Natural
Resources.
[[Page S496]] taos pueblo bottleneck legislation

Mr. DOMENICI. Mr. President, the bill I am introducing with my
colleagues, Mr. Bingaman and Mr. Dole, will transfer 764 acres now
located in the Wheeler Peak Wilderness of the Carson National Forest to
the Taos Pueblo, both in northern New Mexico.
The history of this area is fascinating and involves the only living
culture in the United States to be recognized by the United Nations as
a World Heritage Site. Americans can be very proud of the Taos Pueblo
Indians who live in the Rocky Mountains of New Mexico. I know New
Mexicans are proud of the Taos Pueblo for this most unique
international honor in our land of enchantment.
Designation as a World Heritage Site is an honor we share with the
Grand Canyon, Yosemite, the Statue of Liberty, and Independence Hall,
to name several such sites in the United States. The Taos Pueblo,
however, is the only living culture to be so honored in the Western
Hemisphere.
A well known cultural and religious attribute of this World Heritage
Site at Taos Pueblo is the Blue Lake and its special spiritual
significance to the Taos Pueblo and other New Mexico Indians. Blue Lake
is nestled high in the Sangre de Cristo Mountains east of the Pueblo.
The sacred ceremonies of the Taos Pueblo people at this site pre-date
the signing of the Magna Carta.
The Bottleneck area is an integral part of Blue Lake and continues to
be used by Taos Pueblo for religious pilgrimages. The sacred Path of
Life Trail, connecting the Pueblo with Blue Lake, runs through the
bottleneck. The Blue Lake Wilderness includes Blue Lake, Star Lake, and
Bear Lake. Headwaters to Rio Pueblo de Taos and the Rio Lucero are also
in this sacred area. There is no doubt that the Blue Lake Wilderness,
designated a wilderness area in the 1970 law, has been a vital source
of livelihood and spiritual strength for the Taos Pueblo for over 1,000
years.
The bill pending before the Senate today is intended to complete the
full transfer of the Blue Lake territory to the Taos Pueblo. The Path
of Life Trail in the Bottleneck Tract will be returned to its rightful
owners.
Most of the Blue Lake area transfer took place in 1970, when Public
Law 91-550 was signed by President Richard M. Nixon. At that time,
48,000 of the 50,000 acres of Blue Lake Wilderness were returned to the
Taos Pueblo. The entire 50,000 acre area known as the Blue Lake was
acknowledged by the Indian Claims Commission in 1965 to be Taos Pueblo
land. The creation of the Blue Lake Wilderness in 1970 by the Congress
transferred 48,000 acres of the 50,000 acres back to Taos Pueblo to be
held in trust by the United States for the Pueblo.
In 1979, the Federal District Court in Washington, DC added 1,235
acres to the trust lands of Taos Pueblo in the Tract C transfer,
leaving only the so-called Bottleneck Tract from the original 50,000
acre claim. Our legislation completes the Blue Lake transfer.
Drafted as an amendment to the Blue Lake Wilderness Act, our bill
requires that the Bottleneck also be maintained as wilderness. The Taos
Pueblo has an excellent record of maintaining the Blue Lake Wilderness.
We have every confidence that adding the Bottleneck to the Blue Lake
Wilderness will increase the enthusiasm of the Pueblo for continuing
its excellent stewardship of the Blue Lake Wilderness.
The Wilderness Society, Audubon Society, Sierra Club, and the
National Wildlife Federation support the return of the Bottleneck to
Taos Pueblo.
Under the terms of this legislation, Taos Pueblo will hold the
responsibility and right to manage and control the entire Blue Lake
Territory. The Bottleneck Tract is currently a part of the Wheeler Peak
Wilderness Area in the Carson National Forest, New Mexico, and is
managed by the Forest Service. Taos Pueblo lands surround the
Bottleneck on three sides (east, south, and west). Unfortunately,
public access to this Bottleneck tract leads to unwelcome intrusions.
During Indian ceremonials, hikers often find their way into the Blue
Lake Wilderness Area. Our bill will resolve this and related problems
in favor of the Taos Pueblo. There will no longer be questions of
ownership or rights of way, and the Pueblo will be responsible for
management of the entire Blue Lake area including the Bottleneck Tract
added by this legislation.
The Bottleneck Tract, is currently managed by the Forest Service as a
scenic overlook. Taos Pueblo leaders are issued permits and the Forest
Service closes the area for their pilgrimages. There are no public
camping, fishing, or other recreational uses permitted. Hiking is
allowed.
It is the intention of Taos Pueblo, under the terms of this bill, to
continue to use these lands for traditional purposes only. These uses
include religious and ceremonial pilgrimages, hunting and fishing, a
source of water, forage for their domestic livestock, timber, and other
natural resources for their personal use. These uses are all subject to
such regulations for conservation purposes as the Secretary of the
Interior may prescribe as managed by the Taos Pueblo under the terms of
the Blue Lake wilderness legislation.
There is no intention in our legislation to change any water rights
associated with the Blue Lake area or the Taos Pueblo. I have
personally discussed this issue with the Taos tribal leaders who have
assured me that the return of the Bottleneck will not alter their
claims to water in the Taos Valley. There will be no adverse impact on
downstream water users in the Taos Valley as a result of passage of
this legislation. In fact, I remain optimistic about the on-going water
negotiations in the Taos Valley and look forward to working with all
parties to ratify a negotiated settlement in the Congress.
It is our intention that the lands shall remain forever wild and
maintained as a wilderness. Identical legislation is being introduced
in the House by Representative Richardson of New Mexico. We urge our
colleagues to support our legislation to transfer the last parcel of
the Blue Lake Wilderness to the Taos Pueblo Indians of New Mexico.
______

By Mr. JOHNSTON:
S. 167. A bill to amend the Nuclear Waste Policy Act of 1982 and for
other purposes; to the Committee on Energy and Natural Resources.

THE NUCLEAR WASTE POLICY ACT OF 1995

Mr. JOHNSTON. Mr. President, I am today introducing
legislation to amend the Nuclear Waste Policy Act of 1982.
The existing law was meant to provide for the permanent disposal of
spent nuclear fuel from the Nation's civilian nuclear powerplants and
high-level radioactive waste from our nuclear weapons program. It
called for the construction of a deep geologic repository in which
nuclear waste could safely be buried beginning in January 1998.
The existing law has fallen far short of its goals. The repository
will not be ready in 1998. The earliest completion date is now 2010,
but it may not be ready even then without significant program changes
and budget increases. In the meantime, available storage capacity at
civilian powerplants is running out, threatening the ability of some
plants to keep operating.
The existing program was designated to be self-funding. The law
imposed a special fee on utilities, which is ultimately borne by their
ratepayers. The American people have paid over $8 billion into the
Nuclear Waste Fund. Over $4 billion has been spent, but our budget laws
put the balance of the fund off-limits, where it can be used to balance
the deficit but not used for the purpose for which it was collected.
Mr. President, the program cannot succeed as it is presently
constituted. The time has come to restructure the program so it can
succeed. This bill I am introducing today would do so.
The Nuclear Waste Policy Act of 1995 provides a complete substitute
to the 1982 law. It provides for the construction of an interim storage
facility, which would provide adequate spent fuel storage capacity
until the repository can be built and licensed. It places the existing
repository program on sounder foundations by providing rational,
health-based standards for licensing the repository. It provides
authority for the Department of Energy to begin construction of the
rail spur needed to transport nuclear waste to the interim storage
facility and repository. And it provides special budget treatment for
the Nuclear Waste Fund to ensure that the program will be able to use
the funds that are now being collected for that purpose.
[[Page S497]] Mr. President, I urge my colleagues to join me in
supporting this important legislation, and I ask unanimous consent that
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 167

Be it enacted by the Senate and the House of
Representatives of the United States of America in Congress
assembled, That the Nuclear Waste Policy Act of 1982 is
amended to read as follows:

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Nuclear
Waste Policy Act of 1995''.
(b) Table of Contents.--

Sec. 1. Short title and table of contents.
Sec. 2. Definitions.

TITLE I--STORAGE AND DISPOSAL

Sec. 101. Interim storage.
Sec. 102. Permanent disposal.
Sec. 103. Land withdrawal.

TITLE II--TRANSPORTATION AND STATE RELATIONS

Sec. 201. Multi-purpose canisters.
Sec. 202. Railroad.
Sec. 203. Transportation requirements.
Sec. 204. State consultation and assistance.
Sec. 205. Preemption.

TITLE III--FUNDING AND ORGANIZATION

Sec. 301. Budget priorities.
Sec. 302. Nuclear Waste Fund.
Sec. 303. Budget treatment.
Sec. 304. Office of Civilian Radioactive Waste Management.
Sec. 305. Defense contribution.

TITLE IV--GENERAL AND MISCELLANEOUS PROVISIONS

Sec. 401. NRC regulations.
Sec. 402. Judicial review of agency actions.
Sec. 403. Title to material.
Sec. 404. Licensing of facility expansions and transshipments.
Sec. 405. Siting a second repository.
Sec. 406. Financial arrangements for low-level radioactive waste site
closure.
Sec. 407. Nuclear Regulatory Commission training authorization.

TITLE V--NUCLEAR WASTE TECHNICAL REVIEW BOARD

Sec. 501. Definitions.
Sec. 502. Nuclear Waste Technical Review Board.
Sec. 503. Functions.
Sec. 504. Investigatory powers.
Sec. 505. Compensation of members.
Sec. 506. Staff.
Sec. 507. Support services.
Sec. 508. Report.
Sec. 509. Authorization of appropriations.
Sec. 510. Termination of the Board.
SEC. 2. DEFINITIONS.

For purposes of this Act:
(1) The term ``affected unit of local government'' means
the unit of local government with jurisdiction over the site
of the repository or interim storage facility. Such term may,
at the discretion of the Secretary, include other units of
local government that are contiguous with such unit.
(2) The term ``atomic energy defense activity'' means any
activity of the Secretary performed in whole or in part in
carrying out any of the following functions:
(A) naval reactors development;
(B) weapons activities including defense inertial
confinement fusion;
(C) verification and control technology;
(D) defense nuclear materials production;
(E) defense nuclear waste and materials byproducts
management;
(F) defense nuclear materials security and safeguards and
security investigations; and
(G) defense research and development.
(3) The term ``civilian nuclear power reactor'' means a
civilian nuclear powerplant required to be licensed under
section 103 or 104b of the Atomic Energy Act of 1954 (42
U.S.C. 2133, 2134(b)).
(4) The term ``Commission'' means the Nuclear Regulatory
Commission.
(5) The term ``Department'' means the Department of Energy.
(6) The term ``disposal'' means the emplacement in a
repository of high-level radioactive waste, spent nuclear
fuel, or other highly radioactive material with no
foreseeable intent of recovery, whether or not such
emplacement permits recovery of such waste.
(7) The term ``engineered barriers'' means manmade
components of a disposal system designed to prevent the
release of radionuclides into the geologic medium involved.
Such term includes the high-level radioactive waste form,
high-level radioactive waste canisters, and other materials
placed over and around such canisters.
(8) The term ``high-level radioactive waste'' means--
(A) the highly radioactive material resulting from the
reprocessing of spent nuclear fuel, including liquid waste
produced directly in reprocessing and any solid material
derived from such liquid waste that contains fission products
in sufficient concentrations; and
(B) other highly radioactive material that the Commission,
consistent with existing law, determines by rule requires
permanent isolation.
(9) The term ``federal agency'' means any Executive agency,
as defined in section 105 of title 5, United States Code.
(10) The term ``Indian tribe'' means any Indian tribe,
band, nation, or other organized group or community of
Indians recognized as eligible for the services provided to
Indians by the Secretary of the Interior because of their
status as Indians,
including any Alaska Native village, as defined in section
3(c) of the Alaska Native Claims Settlement Act (43 U.S.C.
1602(c)).
(11) The term ``interim storage facility'' means a complex
designed and constructed under section 101 for the receipt,
handling, possession, safeguarding, and storage of spent
nuclear fuel prior to transfer to a repository for the
permanent disposal of such spent nuclear fuel.
(12) The term ``low-level radioactive waste'' means
radioactive material that--
(A) is not high-level radioactive waste, spent nuclear
fuel, transuranic waste, or byproduct material as defined in
section 11 e.(2) of the Atomic Energy Act of 1954 (42 U.S.C.
2014(e)(2)); and
(B) the Commission, consistent with existing law,
classifies a low-level radioactive waste.
(13) The term ``Office'' means the office of Civilian
Radioactive Waste Management established in section 304.
(14) The term ``package'' means the primary container that
holds, and is in contact with, solidified high-level
radioactive waste, spent nuclear fuel, or other radioactive
materials, and any overpacks, that are used for the
transportation, storage, or disposal of such waste, spent
fuel, or other materials.
(15) The term ``Program Approach'' means the Secretary's
plan for site characterization activities described in the
Yucca Mountain Technical Implementation Plan for Fiscal Year
1995.
(16) The term ``repository'' means a complex designed and
constructed under section 102 for the permanent geologic
disposal of high-level radioactive waste and spent nuclear
fuel, including both surface and subsurface areas at which
high-level radioactive waste and spent nuclear fuel handling
activities are conducted.
(17) The term ``Secretary'' means the Secretary of Energy.
(18) The term ``site characterization'' means activities,
whether in a laboratory or in the field, undertaken to
establish the geologic condition and the ranges of the
parameters of a candidate site relevant to the location of a
repository, including borings, surface excavations,
excavations of exploratory shafts, limited subsurface lateral
excavations and borings, and in site testing needed to
evaluate the suitability of a candidate site for the location
of the repository, but not including preliminary borings and
geophysical testing needed to assess whether site
characterization should be undertaken.
(19) The term ``spent nuclear fuel'' means fuel that has
been withdrawn from a nuclear reactor following irradiation,
the constituent elements of which have not been separated by
reprocessing.
(20) The term ``storage'' means retention of high-level
radioactive waste, spent nuclear fuel, or transuranic waste
with the intent to recover such waste or fuel for subsequent
use, processing, or disposal.
(21) The term ``Waste Fund'' means the Nuclear Waste Fund
established in section 302(c).
(22) The term ``Yucca Mountain site'' means the area in the
State of Nevada described in section 103(b).

TITLE I--STORAGE AND DISPOSAL

SEC. 101. INTERIM STORAGE.

(a) Authorization.--The Secretary shall construct and
operate a facility for the interim storage of high-level
radioactive waste and spent nuclear fuel at the Yucca
Mountain site.
(b) NRC Licensing.--The Secretary shall apply to the
Commission for a license to store high-level radioactive
waste and spent nuclear fuel in the interim storage facility.
The Commission shall amend its regulations for licensing
independent spent fuel storage installations as appropriate
to carry out the purposes of this section. The Commission
shall act expeditiously on the Secretary's application and
shall license the facility in accordance with the provisions
of this Act and the Commission's regulations for licensing
independent spent fuel storage installations as amended.
(c) Duration of the License.--The Commission shall license
storage of high-level radioactive waste and spent nuclear
fuel at the facility for an initial term of 100 years from
the date of issuance of the license and may, upon application
by the Secretary, renew the license for additional terms.
(d) Capacity.--The interim storage facility shall provide
sufficient capacity to store spent nuclear fuel from civilian
nuclear power reactors until the Secretary is able to
transfer the spent fuel to the repository, and shall be
expandable if operation of the repository is delayed.
(e) Environmental Impact Statement.--(1) Construction and
operation of the interim storage facility shall be considered
a major federal action significantly affecting the quality of
the human environment for purposes of the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
The Secretary shall submit an environmental impact statement
on the interim storage facility to the Commission with the
license application.
(2) For purposes of complying with the requirements of the
National Environmental
[[Page S498]] Policy Act of 1969 and this section, the
Secretary need not consider the need for the interim storage
facility or alternative sites or designs in the environmental
impact statement.
(3) The Secretary's environmental impact statement and any
supplements thereto shall, to the extent practicable, be
adopted by the Commission in connection with the issuance by
the Commission of a license for storage of spent nuclear fuel
at the interim storage facility. To the extent such statement
is adopted by the Commission, such adoption shall be deemed
to also satisfy the responsibilities of the Commission under
the National Environmental Policy Act of 1969.
(f) Expedited Actions.--The Secretary shall begin storing
spent nuclear fuel at the interim storage facility at the
earliest practicable date. All actions by the Secretary, the
Commission, the Secretary of the Interior, or any federal
agency or officer with respect to consideration of
applications or requests for the issuance or grant of any
authorization related to the interim storage facility
shall be expedited, and any such application or request
shall take precedence over any similar applications or
requests not related to the interim storage facility.
(g) Waste Confidence.--Licensing and operation of the
interim storage facility in accordance with this section
shall constitute reasonable assurance that high-level
radioactive waste and spent nuclear fuel can and will be
disposed of safely for purposes of the Commission's decision
to grant or amend any license to operate any civilian nuclear
power reactor under the Atomic Energy Act of 1954 (42 U.S.C.
2011 et seq.)

SEC. 102. PERMANENT DISPOSAL.

(a) Site Characterization.--The Secretary shall carry out
appropriate site characterization activities at the Yucca
Mountain site in accordance with the Secretary's Program
Approach to site characterization. The Commission shall
review its existing regulations for the disposal of high-
level radioactive waste in geologic repositories and shall
amend them as may be necessary to reflect the Program
Approach and this Act.
(b) Environmental Impact Statement.--(1) Construction and
operation of the repository shall be considered a major
federal action significantly affecting the quality of the
human environment for purposes of the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.). The Secretary
shall submit an environmental impact statement on the
construction and operation of the repository to the
Commission with the license application.
(2) For purposes of complying with the requirements of the
National Environmental Policy Act of 1969 and this section,
the Secretary need not consider the need for the repository
or alternative sites or designs in the environmental impact
statement.
(3) The Secretary's environmental impact statement and any
supplements thereto shall, to the extent practicable, be
adopted by the Commission in connection with the issuance by
the Commission of a construction authorization under
subsection (d), a license under subsection (e), or a license
amendment under subsection (f). To the extent such statement
or supplement is adopted by the Commission, such adoption
shall be deemed to also satisfy the responsibilities of the
Commission under the National Environmental Policy Act of
1969.
(c) Site Suitability Determination.--(1) The Secretary
shall determine, based upon the results of the site
characterization activities, whether the Yucca Mountain site
is suitable for development of a geologic repository and
report her determination to the Congress.
(2) If the Secretary determines that the Yucca Mountain
site is unsuitable for development of a repository, the
Secretary shall terminate site characterization activities at
the site, notify Congress and the State of Nevada of her
decision and the
reasons therefor, and recommend to Congress not later than 6
months after such determination further actions, including
the enactment of legislation, that may be needed to manage
the nation's high-level radioactive waste and spent
nuclear fuel.
(3) If the Secretary determines that the Yucca Mountain
site is suitable for development of a repository, the
Secretary shall apply to the Commission for authorization to
construct the repository.
(d) Construction Authorization.--The Commission shall
initially grant the Secretary a construction authorization
for the repository upon determining that there is reasonable
assurance that high-level radioactive waste and spent nuclear
fuel can be disposed of in the repository--
(1) in conformity with the Secretary's application, the
provisions of this Act, and the regulations of the
Commission;
(2) without unreasonable risk to the health and safety of
the public; and
(3) consistent with the common defense and security.
(e) License.--Following substantial completion of
construction and the filing of any additional information
needed to complete the license application, the Commission
shall issue a license to dispose of high-level radioactive
waste and spent nuclear fuel in the repository if the
Commission determines that the repository has been
constructed and will operate--
(1) in conformity with the Secretary's application, the
provisions of this Act, and the regulations of the
Commission;
(2) without unreasonable risk to the health and safety of
the public; and
(3) consistent with the common defense and security.
(f) Closure.--After placing high-level radioactive waste
and spent nuclear fuel in the repository, and after providing
for the retrievability of such high-level radioactive waste
and spent nuclear fuel during any period the Secretary
determines to be appropriate, the Secretary shall apply to
the Commission to amend the license to permit permanent
closure of the repository. The Commission shall grant such
license amendment upon finding that there is reasonable
assurance that the repository can be permanently closed--
(1) in conformity with the provisions of this Act and the
regulations of the Commission;
(2) without unreasonable risk to the health and safety of
the public; and
(3) consistent with the common defense and security.
(g) Post-Closure Oversight.--Following repository closure,
the Secretary shall continue to oversee the Yucca Mountain
site to prevent any activity at the site that poses an
unreasonable risk of--
(1) breaching the repository's engineered or geologic
barriers; or
(2) increasing the exposure of individual members of the
public to radiation beyond allowable limits.
(h) Licensing standards.--For purposes of making any
licensing determination under this section--
(1) Release standards.--The Commission shall find that the
repository will not constitute an unreasonable risk to the
health and safety of the public if there is reasonable
assurance that the amount of radioactive materials and
radioactivity released from the site (excluding background
radiation and other radiation arising from the natural
geological characteristics of the site) over a 10,000-year
period shall not result in an annual dose to an average
member of the general population in the vicinity of the site
in excess of one-third of the annual dose received from
natural background sources by an average member of the
general population in the United States.
(2) Overall system performance.--The Commission shall not
deny the issuance of a license on the basis of the
Secretary's failure to demonstrate satisfaction of any
individual subsystem performance standard so long as the
Commission finds reasonable assurance of satisfaction of the
overall system performance standard.
(3) Groundwater protection.--Notwithstanding the provisions
of the Safe Drinking Water Act (42 U.S.C. 300f et seq.), a
Commission finding of reasonable assurance of satisfaction of
the system performance standard and the design objective
shall constitute a finding of adequate protection of
groundwater. No maximum contaminant level limits or other
groundwater protection measures shall apply.
(4) Human intrusion.--The Commission shall assume that,
following repository closure, the inclusion of engineered
barriers and the Secretary's post-closure oversight of the
Yucca Mountain site, in accordance with subsection (g), shall
be sufficient to--
(A) prevent any activity at the site that poses an
unreasonable risk of breaching the repository's engineered or
geologic barriers; and
(B) prevent any increase in the exposure of individual
members of the public to radiation beyond allowable limits.

SEC. 103. LAND WITHDRAWAL.

(a) Withdrawal and Reservation.--(1) The Yucca Mountain
site, as described in subsection (b), is withdrawn from all
forms of entry, appropriation, and disposal under the public
land laws, including without limitation the mineral leasing
laws, the geothermal leasing laws, the material sale laws,
and the mining laws.
(2) Jurisdiction of any land within the Yucca Mountain site
managed by the Secretary of the Interior, the Secretary of
Defense, or any other federal officer is transferred to the
Secretary of Energy.
(3) The Yucca Mountain site is reserved for the use of the
Secretary for the construction and operation of the interim
storage facility and the repository and activities associated
with the purposes of this title.
(b) Land Description.--(1) The boundaries depicted on the
map entitled ``Yucca Mountain Site Withdrawal Map,'' dated
________, and on file with the Secretary, are established as
the boundaries of the Yucca Mountain site.
(2) Within 30 days after the date of the enactment of this
Act, the Secretary shall--
(A) publish in the Federal Register a notice containing a
legal description of the Yucca Mountain site; and
(B) file copies of the map described in paragraph (1) and
the legal description of the Yucca Mountain site with the
Congress, the Secretary of the Interior, the Governor of
Nevada, and the Archivist of the United States.
(3) The map and legal description referred to in paragraph
(2) shall have the same force and effect as if they were
included in this Act. The Secretary may correct clerical and
typographical errors in the map and legal description.

TITLE II--TRANSPORTATION AND STATE RELATIONS

SEC. 201. MULTI-PURPOSE CANISTERS.

The Secretary shall design one or more multi-purpose
canister systems capable of holding spent nuclear fuel during
interim
[[Page S499]] storage, transportation, and disposal. The
Secretary shall apply to the Commission to certify such
systems for the storage and transportation of spent nuclear
fuel. The Secretary
is authorized to procure such systems in quantities
necessary for the transportation, storage, and disposal of
spent nuclear fuel as part of the integrated nuclear waste
management system established under this Act. The
Secretary is authorized to deploy such systems to holders
of spent fuel disposal contracts under section 302.

SEC. 202. RAILROAD.

(a) Authorization.--The Secretary shall acquire rights of
way within the corridor designated in subsection (b) and
shall construct and operate, or cause to be constructed and
operated, a railroad and such facilities as are required to
transport spent nuclear fuel and high-level radioactive waste
from existing rail systems to the interim storage facility
and the repository.
(b) Route Designation.--(1) The Secretary shall acquire
such rights of way and develop such facilities within the
corridor depicted on the map .
(2) Within 30 days after the date of the enactment of this
Act, the Secretary shall--
(A) publish in the Federal Register a notice containing a
legal description of the corridor; and
(B) file copies of the map described in paragraph (1) and
the legal description of the corridor with the Congress, the
Secretary of the Interior, the Governor of Nevada, and the
Archivist of the United States.
(3) The map and legal description referred to in paragraph
(2) shall have the same force and effect as if they were
included in this Act. The Secretary may correct clerical and
typographical errors in the map and legal description.
(c) Withdrawal and Reservation.--(1) The public lands
depicted on such map are withdrawn from all forms of entry,
appropriation, and disposal under the public land laws,
including without limitation and mineral leasing laws, the
geothermal laws, the material sale laws, and the mining laws.
(2) Jurisdiction of such land is transferred from the
Secretary of the Interior to the Secretary of Energy.
(3) Such lands are reserved for the use of the Secretary
for the construction and operation of such transportation
facilities and activities associated under this title.
(4) The lands depicted in the map that are within the Quail
Springs Wilderness Study and the Nellis A, B, and C
Wilderness Study Areas are released from further review and
management under section 603 of the Federal Land Policy and
Management Act (43 U.S.C. 1782). Such lands shall be managed
in accordance with this Act, notwithstanding any contrary
provisions of Federal, State, or local statutes, laws,
regulations, ordinances, or orders.
(d) Environmental Impact Statement.--(1) Construction and
operation of transportation facilities within the corridor
shall constitute a major federal action significantly
affecting the quality of the human environment for purposes
of the National Environmental Policy Act of 1969 (42 U.S.C.
431 et seq.) The Secretary shall prepare an environmental
impact statement on the construction and operation of such
facilities prior to commencement of construction. In
preparing such statement, the Secretary shall adopt, to the
extent practicable. relevant environmental reports that have
been developed by other Federal and State agencies.
(2) For purposes of complying with the requirements of the
National Environmental Policy Act of 1969 and this section,
the Secretary need not consider the need for the development
or improvement of transportation facilities, alternative
routes, or alternative means of transportation.
(3) Acquisition of rights of way within the corridor shall
not constitute a major federal action significantly affecting
the quality of the human environment for purposes of the
National Environmental Policy Act of 1969 and shall not be
delayed pending completion of the environmental impact
statement required under paragraph (1).
(e) Exemption.--Neither the Secretary nor any person
constructing railroad facilities under contract with the
Secretary under this section shall be considered a rail
carrier within the meaning of the Interstate Commerce Act (49
U.S.C. 10102 (19)) and shall not be subject to the
jurisdiction of the Interstate Commerce Commission under 49
U.S.C. 10901.

SEC. 203. TRANSPORTATION REQUIREMENTS.

(a) Package Certification.--No spent nuclear fuel or high-
level radioactive waste may be transported by or for the
Secretary under this Act except in packages that have been
certified for such purposes by the Commission.
(b) State Notification.--The Secretary shall abide by
regulations of the Commission regarding advance notification
of State and local governments prior to transportation of
spent nuclear fuel or high-level radioactive waste under this
Act.
(c) Technical Assistance.--The Secretary shall provide
technical assistance and funds to States for training for
public safety officials of appropriate units of local
government and Indian tribes through whose jurisdiction the
Secretary plans to transport substantial amounts of spent
nuclear fuel or high-level radioactive waste under this Act.
Training shall cover procedures required for safe routine
transportation of these materials, as well as procedures for
dealing with emergency response situations. The Secretary's
duty to provide technical and financial assistance under this
subsection shall be limited to amounts specified in annual
appropriations from the Waste Fund for such purpose.
(d) Use of Private Carriers.--The Secretary, in providing
for the transportation of spent nuclear fuel under this Act,
shall utilize by contract private industry to the fullest
extent possible in each aspect of such transportation. The
Secretary shall use direct federal services for such
transportation only upon a determination of the Secretary of
Transportation, in consultation with the Secretary, that
private industry is unable or unwilling to provide such
transportation services at a reasonable cost.

SEC. 204. STATE CONSULTATION AND ASSISTANCE.

(a) Provision of Information.--(1) The Secretary, the
Commission, and other agencies involved in the construction,
operation, or regulation of any aspect of the interim storage
facility or repository shall provide to the Governor and
legislature of Nevada timely and complete information
regarding determinations or plans made with respect to the
site characterization, siting, development, design,
licensing, construction, operation, regulation, or
decommissioning of the interim storage facility and
repository.
(2) Upon written request for information by the Governor or
legislature, the Secretary shall provide a written response
to such request within 30 days of the receipt of such
request. Such response shall provide the information
requested or, in the alternative, the reasons why the
information cannot be so provided.
(b) Consultation and Cooperation.--In performing any study
of the Yucca Mountain site for the purpose of determining the
suitability of the site for a repository, in developing and
operating the interim storage facility, and in developing and
loading the repository, the Secretary shall consult and
cooperate with the Governor and legislature of Nevada in an
effort to resolve the concerns of the State regarding the
public health and safety, environmental, and economic impacts
of the interim storage facility or repository. In carrying
out her duties under this title, the Secretary shall take
such concerns into account to the maximum extent feasible.
(c) Financial Assistance.--(1)(A) The Secretary shall make
grants to the State of Nevada and any affected unit of local
government for purpose of participating in activities
required by this section. Any salary or travel expense that
would ordinarily be incurred by such State or affected unit
of local government, may not be considered eligible for
funding under this paragraph.
(B) The Secretary shall make grants to the State of Nevada
and any affected unit of local government for purposes of
enabling the State or affected unit of local government--
(i) to review activities taken under this title with
respect to the Yucca Mountain site for purposes of
determining any potential economic, social, public health and
safety, and environmental impacts of the interim storage
facility or repository on the State or affected unit of local
government and its residents;
(ii) to develop a request for impact assistance under
paragraph (2);
(iii) to engage in any monitoring, testing, or evaluation
activities with respect to site characterization programs
with regard to such site;
(iv) to provide information to Nevada residents regarding
any activities of such state, the Secretary, or the
Commission with respect to such site; and
(v) to request information from, and make comments and
recommendations to, the Secretary regarding such activities
taken under this subtitle with respect to such site.
(C) Any salary or travel expense that would ordinarily be
incurred by the State of Nevada or any affected unit of local
government may not be considered eligible for funding under
this paragraph.
(2)(A)(i) The Secretary shall provide financial and
technical assistance to the State of Nevada and any affected
unit of local government requesting such assistance.
(ii) Such assistance shall be designed to mitigate the
impact on the State or affected unit of local government of
the development of the interim storage facility or repository
and the characterization of such site.
(iii) Such assistance to the State or affected unit of
local government shall commence upon the initiation of site
characterization activities.
(B) The State of Nevada and any affected unit of local
government may request assistance under this subsection by
preparing and submitting to the Secretary a report on the
economic, social, public health and safety, and environmental
impacts that are likely to result from site characterization
activities at the Yucca Mountain site.
(C) As soon as practicable, the Secretary shall seek to
enter into a binding agreement with the State of Nevada
setting forth--
(i) the amount of assistance to be provided under this
subsection to such state or affected unit of local
government; and
(ii) the procedures to be followed in providing such
assistance.
(3)(A) In addition to financial assistance provided under
paragraph (1) and (2), the Secretary shall grant to the State
of Nevada and any affected unit of local government an amount
each fiscal year equal to the amount
[[Page S500]] the State or affected unit of local government,
respectively, would receive if authorized to tax site
characterization activities at such site, the development and
operation of the interim storage facility, and the
development and operation of the repository, as the State or
affected unit of local government taxes the non-federal real
property and industrial activities occurring within the State
or affected unit of local government.
(B) Such grants shall continue until such time as the
respective activities, development, and operation are
terminated at such site.
(4)(A) The State of Nevada or any affected unit of local
government may not receive--
(i) any grant with respect to the interim storage facility
under paragraph (1) after the expiration of the one-year
period following the date on which the Commission disapproves
an application for a license to store high-level radioactive
waste and spent nuclear fuel at the site; or
(ii) any grant with respect to the site characterization
activities or construction of the repository under paragraph
(1) after the expiration of the one-year period following the
earlier of--
(I) the date on which the Secretary notifies the Governor
and legislature of the State of Nevada of the termination of
site characterization activities at the Yucca Mountain site;
or
(II) the date on which the Commission disapproves an
application for a construction authorization for a repository
at such site.
(B) The State of Nevada or any affected unit of local
government may not receive any further assistance under
paragraph (2)--
(i) with respect to the interim storage facility if
construction or operation of the interim storage facility are
terminated by the Secretary or if such activities are
permanently enjoined by any court; or
(ii) with respect to the repository if repository
construction activities or site characterization activities
are terminated by the Secretary or if such activities are
permanently enjoined by any court.
(C) At the end of the 2-year period beginning on the
effective date of any license under section 102(c), no
federal funds, shall be made available to the State of Nevada
or affected unit of local government under paragraph (1) or
(2), except for
such funds as may be necessary to support State activities
pursuant to agreements or contracts for impact assistance
entered into under paragraph (2) by the State with the
Secretary during such 2-year period.
(5) Financial assistance authorized in this subsection
shall be made out of amounts held in the Waste Fund.

SEC. 205. PREEMPTION.

(a) In General.--The Secretary shall be subject to and
comply with all Federal, State, and local environmental or
land use laws, requirements, or orders of general
applicability, including those requiring permits or
reporting, or those setting standards, criteria, or
limitation.
(b) Exemption.--(1) Notwithstanding subsection (a), the
President shall exempt the Secretary from any Federal, State,
or local requirement (including any law, regulation, or order
requiring any license, permit, certification, authorization,
or approval, or setting any standard, criterion, or
limitation) if the President determines, in his discretion,
that--
(A) issuance of the required licensed, permit,
certification, authorization, or approval is being
unreasonably delayed or denied;
(B) the requirement is not based on credible scientific
data, is not generally applicable, or was adopted by formal
means; or
(C) the cost of complying with the law, requirement, or
order unreasonably exceeds the benefit to the public health
and safety or the environment.
(2) In the event the President makes a determination under
paragraph (1) with respect to any State requirement
(including any requirement of any agency or subdivision of
the State) and further determines, in his discretion, that
such requirement was imposed for the purpose of delaying or
obstructing construction or operation of the interim storage
facility, repository, or associated facilities under this
Act, the President may exempt the Secretary from all State
requirements under this subsection or such portion thereof as
the President determines necessary.

TITLE III--FUNDING AND ORGANIZATION

SEC. 301. BUDGET PRIORITIES.

For purposes of preparing annual requests for
appropriations from the Waste Fund and allocating
appropriated funds among competing requirements, the
Secretary shall accord--
(1) the licensing, construction, and operation of the
interim storage facility under section 101 the highest
priority;
(2) the acquisition of rights of way and the construction
and operation of the railroad under section 202 the next
highest priority; and
(3) the licensing, construction, and operation of the
repository under section 102 the lowest priority.

SEC. 302. NUCLEAR WASTE FUND.

(a) Contracts.--(1) In the performance of his functions
under this Act, the Secretary is authorized to enter into
contracts with any person who generates or holds title to
high-level radioactive waste, or spent nuclear fuel, of
domestic origin for the acceptance of title, subsequent
transportation, and disposal of such waste or spent fuel.
Such contracts shall provide for payment to the Secretary of
fees pursuant to paragraphs (2) and (3) sufficient to offset
expenditures described in subsection (d).
(2) For electricity generated by a civilian nuclear power
reactor and sold on or after the date 90 days after January
7, 1983, the fee under paragraph (1) shall be equal to 1.0
mill per kilowatt-hour.
(3) For spent nuclear fuel, or solidified high-level
radioactive waste derived from spent nuclear fuel, which fuel
was used to generate electricity in a civilian nuclear power
reactor prior to the application of the fee under paragraph
(2) to such reactor, the Secretary shall, not later than 90
days after January 7, 1983, establish a 1 time fee per
kilogram of heavy metal in spent nuclear fuel, or in
solidified high-level radioactive waste. Such fee shall be in
an amount equivalent to an average charge of 1.0 mill per
kilowatt-hour for electricity generated by such spend nuclear
fuel, or such solidified high-level radioactive waste derived
therefrom, to be collected from any person delivering such
spent nuclear fuel or high-level
waste, pursuant to section 402, to the Federal Government.
Such fee shall be paid to the Treasury of the United
States and shall be deposited in the separate fund
established by subsection (c). In paying such a fee, the
person delivering spend fuel, or solidified high-level
radioactive wastes derived therefrom, to the Federal
Government shall have no further financial obligation to
the Federal Government for the long-term storage and
permanent disposal of such spent fuel, or the solidified
high-level radioactive waste derived therefrom.
(4) Not later than 180 days after January 7, 1983, the
Secretary shall establish procedures for the collection and
payment of the fees establish by paragraph (2) and paragraph
(3). The Secretary shall annually review the amount of the
fees established by paragraphs (2) and (3) above to evaluate
whether collection of the fee will provide sufficient
revenues to offset the costs as defined in subsection (d)
herein. In the event the Secretary determines that either
insufficient or excess revenues are being collected, in order
to recover the costs incurred by the Federal Government that
are specified in subsection (d), the Secretary shall propose
an adjustment to the fee to ensure full cost recovery. The
Secretary shall immediately transit this proposal for such an
adjustment to Congress. The adjusted fee proposed by the
Secretary shall be effective after a period of 90 days of
continuous session have elapsed following the receipt of such
transmittal unless during such 90-day period either House of
Congress adopts a resolution disapproving their Secretary's
proposed adjustment in accordance with the procedures set
forth for congressional review of an energy action under
section 551 of the Energy Policy and Conservation Act.
(5) Contracts entered into under this section shall provide
that--
(A) following commencements of operation of a repository,
the Secretary shall take title to the high-level radioactive
waste or spent nuclear fuel involved as expeditiously as
practicable upon the request of the generator or owner of
such waste or spent fuel; and
(B) in return for the payment of fees established by this
section, the Secretary, beginning not later than January 31,
1998, will dispose of the high-level radioactive waste or
spent nuclear fuel involved as provided in title I.
(6) The Secretary shall establish in writing criteria
setting forth the terms and conditions under which such
disposal services shall be made available.
(b) Advance Contracting Requirement.--(1)(A) The Commission
shall not issue or renew a license to any person to use a
utilization or production facility under the authority of
section 103 or 104 of the Atomic Energy Act of 1954 (42
U.S.C. 2133, 2134) unless--
(1) such person has entered into a contract with the
Secretary under this section; or
(ii) the Secretary affirms in writing that such person is
actively and in good faith negotiating with the Secretary for
a contract under this section.
(B) The Commission, as it deems necessary or appropriate,
may require as a precondition to the issuance or renewal of a
license under section 103 or 104 of the Atomic Energy Act of
1954 (42 U.S.C. 2133, 2134) that the applicant for such
license shall have entered into an agreement with the
Secretary for the disposal of high-level radioactive waste
and spent nuclear fuel that may result from the use of such
license.
(2) Except as provided in paragraph (1), no spent nuclear
fuel or high-level radioactive waste generated or owned by
any person (other than a department of the United States
referred to in section 101 or 102 of title 5, United States
Code) may be disposed of by the Secretary in any repository
constructed under this Act unless the generator or owner of
such spent fuel or waste has entered into a contract with the
Secretary under this section by not later than--
(A) June 30, 1983; or
(B) the date on which such generator or owner commences
generation of, or takes title to, such spent fuel or waste;
whichever occurs later.
(3) The rights and duties of a party to a contract entered
into under this section may be assignable with transfer of
title to the spent nuclear fuel or high-level radioactive
waste involved.
(4) No high-level radioactive waste or spent nuclear fuel
generated or owned by any department of the United States
referred to in
[[Page S501]] section 101 or 102 of title 5, United States
Code, may be disposed of by the Secretary in any repository
constructed under this Act unless such department transfers
to the Secretary, for deposit in the Nuclear Waste Fund,
amounts equivalent to the fees that would be paid to the
Secretary under the contracts referred to in this section if
such waste or spent fuel were generated by any other person.
(c) Establishment of Nuclear Waste Fund.--There hereby is
established in the Treasury of the United States a separate
fund, to be known as the Nuclear Waste Fund. The Waste Fund
shall consist of--
(1) all receipts, proceeds, and recoveries realized by the
Secretary under subsections (a),(b), and (e), which shall be
deposited in the Waste Fund immediately upon their
realization;
(2) any appropriations made by the Congress to the Waste
Fund; and
(3) any unexpended balances available on the date of the enactment of
this Act for functions or activities necessary or incident to the
disposal of civilian high-level radioactive waste or civilian spent
nuclear fuel, which shall automatically be transferred to the Waste
Fund on such date.
(d) Use of Waste Fund.--The Secretary may make expenditures
from the Waste Fund, subject to subsection (e), only for
purposes of radioactive waste disposal activities under
titles I and II, including--
(1) the identification, development, licensing,
construction, operation, decommissioning, and post-
decommissioning maintenance and monitoring of the interim
storage facility or repository constructed under this Act;
(2) the conducting of nongeneric research, development, and
demonstration activities under this Act;
(3) the administrative cost of the radioactive waste
disposal program;
(4) any costs that may be incurred by the Secretary in
connection with the transportation, treating, or packaging of
spent nuclear fuel or high-level radioactive waste to be
disposed of in the repository or to be stored in the interim
storage facility, including the cost of designing and
procuring multi-purpose canisters under section 201 and the
cost of constructing and operating rail systems under section
202;
(5) the costs associated with acquisition, design,
modification, replacement, operation, and construction of
facilities at the repository of interim storage facility; and
necessary or incident to such repository or interim storage
facility; and
(6) the provision of assistance to the State of Nevada, and
affected units of local government under section 204.
(e) Administration of Waste Fund.--(1) The Secretary of the
Treasury shall hold the Waste Fund and, after consultation
with the Secretary, annually report to the Congress on the
financial condition and operations of the Waste Fund during
the preceding fiscal year.
(2) The Secretary shall submit the budget of the Waste Fund
to the Office of Management and Budget triennially along with
the budget of the Department of Energy submitted at such time
in accordance with chapter 11 of title 31, United States
Code. The budget of the Waste Fund shall consist of the
estimates made by the Secretary of expenditures from the
Waste Fund and other relevant financial matters for the
succeeding 3 fiscal years, and shall be included in the
Budget of the United States Government. The Secretary may
make expenditures from the Waste Fund, subject to
appropriations which shall remain available until expended.
Appropriations shall be subject to triennial authorization.
(3) If the Secretary determines that the Waste Fund
contains at any time amounts in excess of current needs, the
Secretary may request the Secretary of the Treasury to invest
such amounts, or any portion of such amounts as the Secretary
determines to be appropriate, in obligations of the United
States--
(A) having maturities determined by the Secretary of the
Treasury to be appropriate to the needs of the Waste Fund;
and
(B) bearing interest at rates determined to be appropriate
by the Secretary of the Treasury, taking into consideration
the current average market yield on outstanding marketable
obligations of the United States with remaining periods to
maturity comparable to the maturities of such investments,
except that the interest rate on such investments shall not
exceed the average interest rate applicable to existing
borrowings.
(4) Receipts, proceeds, and recoveries realized by the
Secretary under this section, and expenditures of amounts
from the Waste Fund, shall be exempt from annual
apportionment under the provisions of subchapter II of
chapter 15 of title 31, United States Code.
(5) If at any time the moneys available in the Waste Fund
are insufficient to enable the Secretary to discharge his
responsibilities under this subtitle, the Secretary shall
issue to the Secretary of the Treasury obligations in such
forms and denominations, bearing such maturities, and subject
to such terms and conditions as may be agreed to by the
Secretary and the Secretary of the Treasury. The total of
such obligations shall not exceed amounts provided in
appropriation Acts. Redemption of such obligations shall be
made by the Secretary from moneys available in the Waste
Fund. Such obligations shall bear interest at a rate
determined by the Secretary of the Treasury, which shall be
not less than a rate determined by taking into consideration
the average market yield on outstanding marketable
obligations of the United States of comparable maturities
during the month preceding the issuance of the obligations
under this paragraph. The Secretary of the Treasury shall
purchase any issued obligations, and for such purpose the
Secretary of the Treasury is authorized to use as a public
debt transaction the proceeds from the sale of any securities
issued under chapter 31 of title 31, United States Code, and
the purposes for which securities may be issued under such
Act are extended to include any purchase of such obligations.
The Secretary of the Treasury may at any time sell any of the
obligations acquired by him under this paragraph. All
redemptions, purchases, and sales by the Secretary of the
Treasury of obligations under this paragraph shall be treated
as public debt transactions of the United States.
(6) Any appropriations made available to the Waste Fund for
any purpose described in subsection (d) shall be repaid into
the general fund of the Treasury, together with interest from
the date of availability of the appropriations until the date
of repayment. Such interest shall be paid on the cumulative
amount of appropriations available to the Waste Fund, less
the average undisbursed cash balance in the Waste Fund
account during the fiscal year involved. The rate of such
interest shall be determined by the Secretary of the Treasury
taking into
consideration the average market yield during the month
preceding each fiscal year on outstanding marketable
obligations of the United States of comparable maturity.
Interest payments may be deferred with the approval of the
Secretary of the Treasury, but any interest payments so
deferred shall themselves bear interest.

SEC. 303. BUDGET TREATMENT.

(a) Scorekeeping.--Notwithstanding any other provision of
law, the receipts and disbursements of the Waste Fund for
each fiscal year beginning after the date of the enactment of
this Act shall be deemed to be equal to the amount of
receipts and disbursements in fiscal year 1995 for purposes
of--
(1) the budget of the United States Government as submitted
by the President;
(2) the congressional budget for the United States
Government; and
(3) the Balanced Budget and Emergency Deficit Control Act
of 1985.
(b) Sequestration.--Any disbursement from the Waste Fund
shall be exempt from reduction under any order issued under
part C of the Balanced Budget and Emergency Deficit Control
Act of 1985.
(c) Appropriations.--Any disbursement from the Waste Fund
shall be subject to appropriations but shall be included in
the discretionary spending limits as set forth in section 601
of the Congressional Budget and Impoundment Control Act of
1974 in any fiscal year beginning after the date of the
enactment of this Act only to the extent that funds were
appropriated from the Waste Fund in fiscal year 1995.

SEC. 304. OFFICE OF CIVILIAN RADIOACTIVE WASTE MANAGEMENT.

(a) Establishment.--There hereby is established within the
Department of Energy an Office of Civilian Radioactive Waste
Management. The Office shall be headed by a Director, who
shall be appointed by the President, by and with the advice
and consent of the Senate, and who shall be compensated at
the rate payable for level III of the Executive Schedule
under section 5315 of title 5, United States Code.
(b) Functions of Director.--The Director of the Office
shall be responsible for carrying out the functions of the
Secretary under this Act, subject to the general supervision
of the Secretary. The Director of the Office shall be
directly responsible to the Secretary.
(c) Annual Report to Congress.--The Director of the Office
shall annually prepare and submit to the Congress a
comprehensive report on the activities and expenditures of
the Office.

SEC. 305. DEFENSE CONTRIBUTION.

(a) Allocation.--The Secretary shall determine the
appropriate portion of the cost of managing high-level
radioactive waste and spent nuclear fuel under this Act
allocable to the permanent disposal of high-level radioactive
waste from atomic energy defense activities. In addition to
any request for an appropriation from the Waste Fund under
section 302, the Secretary shall request annual
appropriations from general revenues in amounts sufficient to
pay the full cost of the permanent disposal of high-level
radioactive waste from atomic energy defense activities in
the repository.
(b) Authorization.--There is authorized to be appropriated
to the Secretary, from general revenues, for carrying out the
purposes of this Act, such sums as may be necessary to pay
the full cost of the permanent disposal of high-level
radioactive waste from atomic energy defense activities.

TITLE IV--GENERAL AND MISCELLANEOUS PROVISIONS

SEC. 401. NRC REGULATIONS.

Nothing in this Act shall be read to repeal or require the
amendment or repromulgation of Commission regulations of the
Commission in effect on the date of enactment of this Act
except to the extent such regulations are inconsistent with
the provisions of this Act.
[[Page S502]] SEC. 402. JUDICIAL REVIEW OF AGENCY ACTIONS.

(a) Jurisdiction of United States Courts of Appeals.--(1)
Except for review in the Supreme Court of the United States,
the United States courts of appeals shall have original and
exclusive jurisdiction over any civil action--
(A) for review of any final decision or action of the
Secretary, the President, or the Commission under this Act;
(B) alleging the failure of the Secretary, the President,
or the Commission to make any decision, or take any action,
required under this Act;
(C) challenging the constitutionality of any decision made,
or action taken, under any provision of this Act; or
(D) for review of any environmental impact statement
prepared or environmental assessment pursuant to the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
with respect to any action under this Act or alleging a
failure to prepare such statement with respect to any such
action.
(2) The venue of any proceeding under this section shall be
in the judicial circuit in which the petitioner involved
resides or has its principal office, or in the United States
Court of Appeals for the District of Columbia.
(b) Deadline for Commencing Action.--A civil action for
judicial review described under subsection (a)(1) may be
brought not later than the 180th day after the date of the
decision or action or failure to act involved, as the case
may be, except that if a party shows that he did not know of
the decision or action complained of (or of the failure to
act), and that a reasonable person acting under the
circumstances would not have known, such party may bring a
civil action not later than the 180th day after the ate such
party acquired actual or constructive knowledge or such
decision, action, or failure to act.

SEC. 403. TITLE TO MATERIAL.

Delivery, and acceptance by the Secretary, or any high-
level radioactive waste or spent nuclear fuel for the interim
storage facility or repository shall constitute a transfer to
the Secretary of title to such waste or spent fuel.

SEC. 404. LICENSING OF FACILITY EXPANSIONS AND
TRANSSHIPMENTS.

(a) Oral Argument.--In any Commission hearing under section
189 of the Atomic Energy Act of 1954 (42 U.S.C. 2239) on an
application for a license, or for an amendment to an existing
license, filed after January 7, 1983, to expand the spent
nuclear fuel storage capacity at the site of a civilian
nuclear power reactor, through the use of high-density fuel
storage racks, fuel rod compaction, the transshipment of
spent nuclear fuel to another civilian nuclear power reactor
within the same utility system, the construction of
additional spent nuclear fuel pool capacity or dry storage
capacity, or by other means, the Commission shall, at the
request of any party, provide an opportunity for oral
argument with respect to any matter which the Commission
determines to be in controversy among the parties. The oral
argument shall be preceded by such discovery procedures as
the rules of the Commission shall provide. The Commission
shall require each party, including the Commission staff, to
submit in written form, at the time of the oral argument, a
summary of the facts, data, and arguments upon which such
party proposes to rely that are known at such time to such
party. Only facts and data in the form of sworn testimony or
written submission may be relied upon by the parties during
oral argument. Of the materials that may be submitted by the
parties during oral argument, the Commission shall only
consider those facts and data that are submitted in the form
of sworn testimony or written submission.
(b) Adjudicatory Hearing.--(1) At the conclusion of any
oral argument under subsection (a), the Commission shall
designate any disputed question of fact, together with any
remaining questions of law, for resolution in an adjudicatory
hearing only if it determines that--
(A) there is a genuine and substantial dispute of fact
which can only be resolved with sufficient accuracy by the
introduction of evidence in an adjudicatory hearing; and
(B) the decision of the Commission is likely to depend in
whole or in part on the resolution of such dispute.
(2) In making a determination under this subsection, the
Commission--
(A) shall designate in writing the specific facts that are
in genuine and substantial dispute, the reason why the
decision of the agency is likely to depend on the resolution
of such facts, and the reason why an adjudicatory hearing is
likely to resolve the dispute; and
(B) shall not consider--
(i) any issue relating to the design, construction, or
operation of any civilian nuclear power reactor already
licensed operate a such site, or any civilian nuclear power
reactor to which a construction permit has been granted at
such site, unless the Commission determines that any such
issue
substantially affects the design, construction, or operation
of the facility or activity for which such license
application, authorization, or amendment is being
considered; or
(ii) any siting or design issue fully considered and
decided by the Commission in connection with the issuance of
a construction permit or operating license for a civilian
nuclear power reactor at such site, unless (I) such issue
results from any revision of siting or design criteria by the
Commission following such decision; and (II) the Commission
determines that such issue substantially affects the design,
construction, or operation of the facility or activity for
which such license application, authorization, or amendment
is being considered.
(3) The Provisions of paragraph (2)(B) shall apply only
with respect to licenses, authorizations, or amendments to
licenses or authorizations, applied for under the Atomic
Energy Act of 1954 (42 U.S.C. 2011 et seq.) before December
31, 2005.
(4) The provisions of this section shall not apply to the
first application for a license or license amendment received
by the Commission to expand onsite spend fuel storage
capacity by the use of a new technology not previously
approved for use at any nuclear powerplant by the Commission.
(c) Judicial Review.--No court shall hold unlawful or set
aside a decision of the Commission in any proceeding
described in subsection (a) because of a failure by the
Commission to use a particular procedure pursuant to this
section unless--
(1) an objection to the procedure used was presented to the
Commission in a timely fashion or there are extraordinary
circumstances that excuse the failure to present a timely
objection; and
(2) the court finds that such failure has precluded a fair
consideration and informed resolution of a significant issue
of the proceeding taken as a whole.

SEC. 405. SITING A SECOND REPOSITORY.

(a) Congressional Action Required.--The Secretary may not
conduct site-specific activities with respect to a second
repository unless Congress has specifically authorized and
appropriated funds for such activities.
(b) Report.--The Secretary shall report to the President
and to Congress on or after January 1, 2007, but not later
than January 1, 2010, on the need for a second repository.

SEC. 406. FINANCIAL ARRANGEMENTS FOR LOW-LEVEL RADIOACTIVE
WASTE SITE CLOSURE.

(a) Financial Arrangements.--(1) The Commission shall
establish by rule, regulation, or order, after public notice,
and in accordance with section 181 of the Atomic Energy Act
of 1954 (42 U.S.C. 2231), such standards and instructions as
the Commission may deem necessary or desirable to ensure in
the case of each license for the disposal of low-level
radioactive waste that an adequate bond, surety, or other
financial arrangement (as determined by the Commission) will
be provided by a licensee to permit completion of all
requirements established by the Commission for the
decontamination, decommissioning, site closure, and
reclamation of sites, structures, and equipment used in
conjunction with such low-level radioactive waste. Such
financial arrangements shall be provided and approved by the
Commission, or, in the case of sites within the boundaries of
any agreement State under section 274 of the Atomic Energy
Act of 1954 (42 U.S.C. 2021), by the appropriate State or
State entity, prior to issuance of licenses for low-level
radioactive waste disposal or, in the case of licenses in
effect on January 7, 1983, prior to termination of such
licenses.
(2) If the Commission determines that any long-term
maintenance or monitoring, or both, will be necessary at a
site described in paragraph (1), the Commission shall ensure
before termination of the license involved that the licensee
has made available such bonding, surety, or other financial
arrangements as may be necessary to ensure that any necessary
long-term maintenance or monitoring needed for such site will
be carried out by the person having title and custody for
such site following license termination.
(b) Title and Custody.--(1) The Secretary shall have
authority to assume title and custody of low-level
radioactive waste and the land on which such waste is
disposed of, upon request of the owner of such waste and land
and following
termination of the license issue by the Commission for such
disposal, if the Commission determines that--
(A) the requirements of the Commission for site closure,
decommissioning, and decontamination have been met by the
licensee involved and that such licensee is in compliance
with the provisions of subsection (a);
(B) such title and custody will be transferred to the
Secretary without cost to the Federal Government; and
(C) Federal ownership and management of such site is
necessary or desirable in order to protect the public health
and safety, and the environment.
(2) If the Secretary assumes title and custody of any such
waste and land under this subsection, the Secretary shall
maintain such waste and land in a manner that will protect
the public health and safety, and the environment.
(c) Special Sites.--If the low-level radioactive waste
involved is the result of a licensed activity to recover
zirconium, hafnium, and rare earths from source material, the
Secretary, upon request of the owner of the site involved,
shall assume title and custody of such waste and the land on
which it is disposed when such site has been decontaminated
and stabilized in accordance with the requirements
established by the Commission and when such owner has made
adequate financial arrangements approved by the Commission
for the long-term maintenance and monitoring of such site.
[[Page S503]] SEC. 407. NUCLEAR REGULATORY COMMISSION
TRAINING AUTHORIZATION.

The Commission is authorized and directed to promulgate
regulations, or other appropriate regulatory guidance, for
the training and qualifications of civilian nuclear
powerplant operators, supervisors, technicians, and other
appropriate operating personnel. Such regulations or guidance
shall establish simulator training requirements for
applicants for civilian nuclear powerplant operator licenses
and for operator requalification programs; requirements
governing Commission administration of requalification
examinations; requirements for operating tests at civilian
nuclear powerplant simulators, and instructional requirements
for civilian nuclear powerplant licensee personnel training
programs.

TITLE V--NUCLEAR WASTE TECHNICAL REVIEW BOARD

SEC. 501. DEFINITIONS.

(1)The term ``Chairman'' means the Chairman of the Nuclear
Waste Technical Review Board.
(2) The term ``Board'' means the Nuclear Waste Technical
Review Board established under section 502.

SEC. 502. NUCLEAR WASTE TECHNICAL REVIEW BOARD.

(a) Establishment.--There is established a Nuclear Waste
Technical Review Board that shall be an independent
establishment within the executive branch.
(b) Members.--The Board shall consist of 11 members who
shall be appointed by the President not later than 90 days
after December 22, 1987, from among persons nominated by the
National Academy of Sciences in accordance with paragraph
(3).
(2) The President shall designate a member of the Board to
serve as chairman.
(3)(A) The National Academy of Sciences shall, not later
than 90 days after December 22, 1987, nominate not less than
22 persons for appointment to the Board from among persons
who meet the qualifications described in subparagraph (C).
(B) The National Academy of Sciences shall nominate not
less than 2 persons to fill any vacancy on the Board from
among persons who meet the qualifications described in
subparagraph (C).
(C)(i) Each person nominated for appointment to the Board
shall be--
(I) eminent in a field of science or engineering, including
environmental sciences; and
(II) selected solely on the basis of established records of
distinguished service.
(ii) The membership of the Board shall be representatives
of the broad range of scientific and engineering disciplines
related to activities under this title.
(iii) No person shall be nominated for appointment to the
Board who is an employee of--
(I) the Department of Energy;
(II) a national laboratory under contract with the
Department of Energy; or
(III) an entity performing high-level radioactive waste or
spent nuclear fuel activities under contract with the
Department of Energy.
(4) Any vacancy on the Board shall be filled by the
nomination and appointment process described in paragraph (1)
and (3).
(5) Members of the Board shall be appointed for terms of 4
years, each such term to commence 120 days after December 22,
1987, except that of the 11 members first appointed to the
Board, 5 shall serve for 2 years and 6 shall serve for 4
years, to be designated by the President at the time of
appointment.

SEC. 503. FUNCTIONS.

The Board shall evaluate the technical and scientific
validity of activities undertaken by the Secretary after
December 22, 1987, including--
(1) site characterization activities; and
(2) activities relating to the packaging or transportation
of high-level radioactive waste or spent nuclear fuel.

SEC. 504. INVESTIGATORY POWERS.

(A) Hearings.--Upon request of the Chairman or a majority
of the member of the Board, the Board may hold such hearings,
sit and act at such times and places, take such testimony,
and receive such evidence, as the Board considers
appropriate. Any member of the Board may administer oaths or
affirmations to witnesses appearing before the Board.
(b) Production of Documents.--(1) Upon the request of the
Chairman or a majority of the members of the Board, and
subject to existing law, the Secretary (or any contractor of
the Secretary) shall provide the Board with such records,
files, papers, data, or information as may be necessary to
respond to any inquiry of the Board under this title.
(2) Subject to existing law, information obtainable under
paragraph (1) shall not be limited to final work products of
the Secretary, but shall include drafts of such products and
documentation of work in progress.

SEC. 505. COMPENSATION OF MEMBERS.

(A) In General.--Each member of the Board shall be paid at
the rate of pay payable for level III of the Executive
Schedule for each day (including travel time) such member is
engaged in the work of the Board.
(b) Travel Expenses--Each member of the Board may receive
travel expenses, including per diem in lieu of subsidence, in
the same manner as is permitted under sections 5702 and 5703
of title 5, United States Code.

SEC. 506. STAFF.

(a) Clerical Staff.--Subject to paragraph (2), the Chairman
may appoint and fix the compensation of such clerical staff
as may be necessary to discharge the responsibilities of the
Board.
(2) Clerical staff shall be appointed subject to the
provisions of title 5, United States Code, governing
appointments in the competitive service, and shall be paid in
accordance with the provisions of chapter 51 and subchapter
III of chapter 3 of such title relating to classification and
General Schedule pay rates.
(b) Professional Staff.--(1) Subject to paragraphs (2) and
(3), the Chairman may appoint and fix the compensation of
such professional staff as may be necessary to discharge the
responsibilities of the Board.
(2) Not more than 10 professional staff members may be
appointed under this subsection.
(3) Professional staff members may be appointed without
regard to the provisions of title 5, United States Code,
governing appointments in the competitive service, and may be
paid without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of such title relating to
classification and General Schedule pay rates, except that no
individual so appointed may receive pay in excess of the
annual rate of basic pay payable for GS-18 of the General
Schedule.

SEC. 507. SUPPORT SERVICES.

(a) General Services.--To the extent permitted by law and
requested by the Chairman, the Administrator of General
Services shall provide the Board with necessary
administrative services, facilities, and support on a
reimbursable basis.
(b) Accounting, Research, and Technology Assessment
Services--The Comptroller General, the Librarian of Congress,
and the Director of the Office of Technology Assessment
shall, to the extent permitted by law and subject to the
availability of
funds, provide the Board with such facilities, support,
funds and services, including staff, as may be necessary
for the effective performance of the functions of the
Board.
(c) Additional Support.--Upon the request of the Chairman,
the Board may secure directly from the head of any department
or agency of the United States information necessary to
enable it to carry out this title.
(d) Mails.--The Board may use the United States mails in
the same manner and under the same conditions as other
departments and agencies of the United States.
(e) Experts and Consultants.--Subject to such rules as may
be prescribed by the Board, the Chairman may procure
temporary and intermittent services under section 3109(b) of
title 5 of the United States Code, but at rates for
individuals not to exceed the daily equivalent of the maximum
annual rate of basic pay payable for GS-18 of the General
Schedule.

SEC. 508. REPORT.

The Board shall report not less than 2 times per year to
Congress and the Secretary its findings, conclusions, and
recommendations. The first such report shall be submitted not
later than 12 months after December 22, 1987.

SEC. 509. AUTHORIZATION OF APPROPRIATIONS.

Notwithstanding subsection (d) of section 302, and subject
to subsection (e) of such section, there are authorized to be
appropriated for expenditures from amounts in the Waste Fund
established in subsection (c) of such section such sums as
may be necessary to carry out the provisions of this title.

SEC. 510. TERMINATION OF THE BOARD.

The Board shall cease to exist not later than 1 year after
the date on which the Secretary begins disposal of high-level
radioactive waste or spent nuclear fuel in the
respository.
______

By Mr. KENNEDY:
S. 168. A bill to ensure individual and family security through
health insurance coverage for all Americans; to the Committee on Labor
and Human Resources.

the affordable health care for all Americans act

Mr. KENNEDY. Mr. President, the crisis in health care has not gone
away, but hopefully the partisan gridlock that blocked action last year
has. Our failure to enact comprehensive reform in 1994 guarantees that
this crisis will worsen every year, until Congress finally has the
courage to pass a genuine solution.
Last year, despite the economic recovery, the number of Americans
without health insurance increased by 1 million. This year, the number
of uninsured is certain to increase again. The rise in national health
spending was close to $100 billion last year, and total spending will
top $1 trillion this year. The main reason the Federal deficit is
soaring is that out-of-control health costs continue to drive up
Medicare and Medicaid spending faster than anything else in the budget.
No American family can be confident that the insurance protecting them
today will be there for them tomorrow if serious illness strikes.
Last year, we had the most extensive debate in the Nation's history
on comprehensive reform. Committees in both the House and Senate
reported out measures that met the two key tests of
[[Page S504]] real reform--guaranteed health insurance for all
Americans and control of health costs. For the first time,
comprehensive reform legislation was debated on the floor of the U.S.
Senate. In the end we were not successful in passing health reform, but
the American people expect us to keep trying until we succeed.
Today I am introducing new legislation to achieve the central goals
of reform--the Affordable Health Care for All Americans Act. This
legislation builds on what we accomplished in the last Congress, while
responding to the criticisms of the various bills proposed.
This legislation will guarantee every American comprehensive,
affordable coverage, and it will control health care costs. All
employers will be expected to contribute to the cost of coverage for
their employees, except for mom and pop small businesses. Subsidies
will be provided to help low-income workers and the unemployed. Costs
will be controlled by market forces and by improved competition among
insurers and providers, with tough backup premium limits in cases where
competition fails.
At the same time, the legislation responds to criticisms made in the
last Congress that the bills reported by the committees tried to do too
much and were excessively regulatory and bureaucratic. The legislation
I am introducing today is one-third the length of the bill reported by
the Labor and Human Resources Committee in the last Congress. It does
not include proposals that are desirable but that can be considered
more carefully on a separate legislative track. It eliminates most new
boards and commissions, and it adopts, in large measure, the market
reform and oversight structure included in last year's bipartisan
mainstream proposal.
This legislation will guarantee affordable, comprehensive health care
for every citizen through a system of shared responsibility among
individuals, businesses, and the Government. Employers are required to
contribute to the cost of insurance for their employees and their
families, and individuals are expected to contribute to the cost of
their own coverage and the coverage of their dependents. Subsidies are
provided for low-income workers and the unemployed.
This measure also provides assistance to businesses for the cost of
covering low-wage workers, with greater assistance for smaller, low-
wage businesses that have the most difficulty in affording a full
contribution to the cost. In addition, small businesses with 10 workers
or less and below average wages are exempt from the requirements, and
special help is provided to assure affordability for the employees of
these businesses. One hundred percent tax deductibility is provided for
health insurance premiums paid by the self-employed. People who now
rely on Medicaid for coverage of acute care services will participate
in the same private health insurance system as all other Americans.
Insurance reforms eliminate preexisting condition exclusion and provide
guaranteed issue and renewability at affordable prices.

Elderly Americans and disabled Americans will benefit from
substantial provisions on long-term home care and community care. The
bill closes the greatest current gap in Medicare by providing
prescription drug coverage. It also establishes a new, voluntary
program of insurance against the high cost of nursing home care. Such
insurance will be available at a reasonable price to anyone 35 or
older.
The bill controls health care costs by improving the health care
market. Reforms here will require insurers to complete by providing
care more efficiently and effectively, rather than by trying to insure
only those least likely to get sick. The bill relies primarily on
competition to hold down spending, but it also recognizes that
excessive inflation is deeply embedded in the health care system and
that competition will work more quickly in some health care markets
than others. A backup system of premium limits is included in case
competition forces are ineffective in restraining inflation. A reform
of medical malpractice is also included.
Finally, the bill recognizes that an insurance card alone is not
enough to assure access or protect quality. Increased funding is
provided to assure the viability of the Nation's teaching hospitals, to
expand access to care through community health centers and school
health clinics, and to support biomedical research.
The bill is financed without broad-based new taxes. The basic
financing comes from premiums paid by individuals and businesses, as is
the case today. The subsidies for low-income individuals and small
businesses are financed by lower rates of increase and other savings in
existing government health programs and by an increase in the cigarette
tax.
To respond to criticisms that the bills in the last Congress tried to
do too much, the legislation focuses only on those aspects of last
year's bills that are truly central to reform. Proposals that are
desirable but less essential have been eliminated from the bill, such
as those dealing with administrative simplification, privacy, health
care fraud and abuse, new regulation of private long-term care
insurance, and new remedies for disputes between insurance companies
and individuals.
Most important, this legislation eliminates much of what was
criticized as excessive bureaucracy and regulation. A great deal of
this criticism each disingenuous, but we have made a new effort to
eliminate unnecessary burdens on individuals, businesses, and State
governments. The insurance reform and oversight is based on the
proposal developed by the bipartisan mainstream group. Most of the new
board and commissions created in the earlier bills have been dropped,
and essential functions given to existing agencies. The standard
benefit package has been eliminated and replaced by a test of actuarial
equivalency to the insurance program that protects most Members of
Congress, with assurances of attention to high priority needs.
Mandatory health alliances have been eliminated in favor of voluntary
health insurance purchasing cooperatives, and the size of businesses
required to participate in the community rating pool has been reduced
to 100 employees or fewer.
Obviously, this legislation will be modified as it moves through
Congress. But I believe it builds effectively on the progress we made
in the last 2 years, without sacrificing fundamental goals.
All industrialized countries in the world except South Africa and the
United States guarantee health care as a basic right for all citizens.
The American people deserve the same health security, and it is time
for Congress to provide it.
______

By Mr. DASCHLE (for himself, Mr. Bingaman, Mr. Campbell, Mr.
Kerry, Mr. Reid, and Mr. Inouye):
S. 170. A bill to amend the Public Health Service Act to provide a
comprehensive program for the prevention of Fetal Alcohol Syndrome, and
for other purposes; to the Committee on Labor and Human Resources.
______

By Mr. DASCHLE (for himself, Mr. Simon, Mr. Kennedy, Mr. Kerry,
Mr. Reid, and Mr. Akaka):
S. 171. A bill to amend title XIX of the Social Security Act to
provide for coverage of alcoholism and drug dependency residential
treatment services for pregnant women and certain family members under
the Medicaid Program, and for other purposes; to the Committee on
Finance.

FETAL ALCOHOL SYNDROME AND FETAL ALCOHOL EFFECT LEGISLATION

Mr. DASCHLE. Mr. President, today I am reintroducing the
Comprehensive Fetal Alcohol Syndrome Prevention Act and the Medicaid
Substance Abuse Treatment Act, legislation that will enhance our
national effort to eliminate the tragic problem of Fetal Alcohol
Syndrome [FAS] and the related condition known as Fetal Alcohol Effect
[FAE].
FAS-FAE constitute the leading cause of mental retardation in the
United States today. Although both conditions are completely
preventable simply by abstaining from the consumption of alcohol during
pregnancy, many people unfortunately do not realize the dangers of
drinking while pregnant. The Office for Substance Abuse Prevention
estimates that as many as 66 percent of all women drink while they are
pregnant, endangering their infants' health and putting them at risk of
being born with FAS or FAE.
[[Page S505]] Misconceptions about the impact of alcohol intake
during pregnancy are not limited to the general public, however. Even
some health care providers are unaware of the danger of drinking during
pregnancy, and for many years it was widely held that moderate alcohol
consumption during pregnancy was beneficial.
There are approximately 5,000 children born each year in the United
States with FAS. It is estimated that the incidence of FAS is as high
as 1 per 100 in some Native American communities. The Centers for
Disease Control and Prevention estimates that the lifetime cost of
treating an individual with FAS is almost $1.4 million. The total cost
in terms of health care and social services to treat all Americans with
FAS is close to $1.6 billion each year. This is an extraordinary and
unnecessary expense, given the fact that FAS is 100 percent
preventable.
The first step toward eliminating this devastating disease is raising
the public's consciousness about FAS-FAE. Although great strides have
been made in this regard, much more work remains to be done. The
Comprehensive Fetal Alcohol Syndrome Prevention Act attempts to fill in
the gaps in our current FAS-FAE prevention system. It contains four
major components, representing the provisions of the original
legislation that have not yet been enacted. These provisions include
the initiaion of a coordinated education and public awareness campaign;
increased support for basic and applied epidemiologic research into the
causes, treatment and prevention of FAS-FAE; widespread dissemination
of FAS-FAE diagnostic criteria; and the establishment of an interagency
task force to coordinate the wide range of Federal efforts in combating
FAS--FAE. I ask that a summary of the bill be inserted into the Record
following the completion of my remarks.
A prevention strategy cannot succeed in the absence of increased
access to comprehensive treatment programs for pregnant addicted women
so that women and their children can access care. Many pregnant
substance abusers are denied treatment because facilities refuse to
accept them, or the women cannot accept treatment because they lack
adequate child care for their children while
they receive treatment. In fact, many treatment programs specifically
exclude pregnant women or women with children. To make matters worse,
while Medicaid covers some services associated with substance abuse,
like outpatient treatment and detoxification, it fails to cover
residential treatment, which is considered by most health care
professionals to be the most effective method of overcoming addiction.

The Medicaid Substance Abuse Treatment Act would permit coverage of
residential alcohol and drug treatment for pregnant women and certain
family members under the Medicaid Program, thereby assuring a stable
source of funding for States that wish to establish these programs. The
bill has three primary objectives. First, it would facilitate the
participation of pregnant women who are substance abusers in alcohol
and drug treatment programs. Second, by increasing the availability of
comprehensive and effective treatment programs for pregnant women and,
thus, improving a woman's chances of bearing healthy children, it would
help combat the serious and evergrowing problem of drug-impaired
infants and children, many of whom are born with FAS and FAE. And,
third, it would address the unique situation of pregnant addicted
native American and Alaska Native women in Indian Health Service areas.
Mr. President, the cost of prevention is substantially less than the
downstream costs in money and human capital of caring for children and
adults who have been impaired due to prenatal exposure to alcohol and
drugs. These prevention and treatment services are an investment that
yields substantial long-term dividends--both on a societal level, as
welfare dependence by substance abusers and their children is reduced,
and on an individual level, as mothers plagued by alcohol and drug
addiction are given the means to heal, for themselves and their unborn
children.
FAS and FAE represent a national tragedy that reaches across economic
and social boundaries. The demand for a comprehensive and determined
response to this devastating problem is clear. I urge my colleagues to
support these measures, and am hopeful that, with widespread support,
we can enact this important legislation without delay. I ask unanimous
consent that the full text of both bills and a summary be printed in
the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 170

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 ``Comprehensive Fetal Alcohol
Syndrome Prevention Act''.

SEC. 2. FINDINGS.

Congress finds that--
(1) Fetal Alcohol Syndrome is the leading known cause of
mental retardation, and it is 100 percent preventable;
(2) each year, more than 5,000 infants are born in the
United States with Fetal Alcohol Syndrome, suffering
irreversible physical and mental damage;
(3) thousands more infants are born each year with Fetal
Alcohol Effects, which are lesser, though still serious,
alcohol-related birth defects;
(4) Fetal Alcohol Syndrome and Fetal Alcohol Effects are
national problems which can impact any child, family, or
community, but their threat to American Indians and Alaska
Natives is especially alarming;
(5) in some American Indian communities, where alcohol
dependency rates reach 50 percent and above, the chances of a
newborn suffering Fetal Alcohol Syndrome or Fetal Alcohol
Effects are 30 times greater than national averages;
(6) in addition to the immeasurable toll on children and
their families, Fetal Alcohol Syndrome and Fetal Alcohol
Effects pose extraordinary financial costs to the Nation,
including the costs of health care, education, foster care,
job training, and general support services for affected
individuals;
(7) as a reliable comparison, delivery and care costs are
four times greater for infants who were exposed to illicit
substances than for infants with no indication of substance
exposure, and over a lifetime, health care costs for one
Fetal Alcohol Syndrome child are estimated to be at least
$1,400,000;
(8) researchers have determined that the possibility of
giving birth to a baby with Fetal Alcohol Syndrome or Fetal
Alcohol Effects increases in proportion to the amount and
frequency of alcohol consumed by a pregnant woman, and that
stopping alcohol consumption at any point in the pregnancy
reduces the risks and the emotional, physical, and mental
consequences of alcohol exposure to the baby; and
(9) we know of no safe dose of alcohol during pregnancy, or
of any safe time to drink during pregnancy, thus, it is in
the best interest of the Nation for the Federal Government to
take an active role in encouraging all women to abstain from
alcohol consumption during pregnancy.

SEC. 3. PURPOSE.

It is the purpose of this Act to establish, within the
Department of Health and Human Services, a comprehensive
program to help prevent Fetal Alcohol Syndrome and Fetal
Alcohol Effects nationwide. Such program shall--
(1) coordinate, support, and conduct basic and applied
epidemiologic research concerning Fetal Alcohol Syndrome and
Fetal Alcohol Effects;
(2) coordinate, support, and conduct national, State, and
community-based public awareness, prevention, and education
programs on Fetal Alcohol Syndrome and Fetal Alcohol Effects;
and
(3) foster coordination among all Federal agencies that
conduct or support Fetal Alcohol Syndrome and Fetal Alcohol
Effects research, programs, and surveillance and otherwise
meet the general needs of populations actually or potentially
impacted by Fetal Alcohol Syndrome and Fetal Alcohol Effects.

SEC. 4. ESTABLISHMENT OF PROGRAM.

Title III of the Public Health Service Act (42 U.S.C. 241
et seq.) is amended by adding at the end thereof the
following new part:

``PART O--FETAL ALCOHOL SYNDROME PREVENTION PROGRAM

``SEC. 399G. ESTABLISHMENT OF FETAL ALCOHOL SYNDROME
PREVENTION PROGRAM.

``(a) Fetal Alcohol Syndrome Prevention Program.--The
Secretary shall establish a comprehensive Fetal Alcohol
Syndrome and Fetal Alcohol Effects prevention program that
shall include--
``(1) an education and public awareness program to--
``(A) support, conduct, and evaluate the effectiveness of--
``(i) training programs concerning the prevention,
diagnosis, and treatment of Fetal Alcohol Syndrome and Fetal
Alcohol Effects;
``(ii) prevention and education programs, including school
health education and school-based clinic programs for school-
age children, concerning Fetal Alcohol Syndrome and Fetal
Alcohol Effects; and
``(iii) public and community awareness programs concerning
Fetal Alcohol Syndrome and Fetal Alcohol Effects;
[[Page S506]] ``(B) provide technical and consultative
assistance to States, Indian tribal governments, local
governments, scientific and academic institutions, and
nonprofit organizations concerning the programs referred to
in subparagraph (A); and
``(C) award grants to, and enter into cooperative
agreements and contracts with, States, Indian tribal
governments, local governments, scientific and academic
institutions, and nonprofit organizations for the purpose
of--
``(i) evaluating the effectiveness, with particular
emphasis on the cultural competency and age-appropriateness,
of programs referred to in subparagraph (A);
``(ii) providing training in the prevention, diagnosis, and
treatment of Fetal Alcohol Syndrome and Fetal Alcohol
Effects;
``(iii) educating school-age children, including pregnant
and high-risk youth, concerning Fetal Alcohol Syndrome and
Fetal Alcohol Effects, with priority given to programs that
are part of a sequential, comprehensive school health
education program; and
``(iv) increasing public and community awareness concerning
Fetal Alcohol Syndrome and Fetal Alcohol Effects through
culturally competent projects, programs, and campaigns, and
improving the understanding of the general public and
targeted groups concerning the most effective intervention
methods to prevent fetal exposure to alcohol;
``(2) an applied epidemiologic research and prevention
program to--
``(A) support and conduct research on the causes,
mechanisms, diagnostic methods, treatment, and prevention of
Fetal Alcohol Syndrome and Fetal Alcohol Effects;
``(B) provide technical and consultative assistance and
training to States, Tribal governments, local governments,
scientific and academic institutions, and nonprofit
organizations engaged in the conduct of--
``(i) Fetal Alcohol Syndrome prevention and early
intervention programs; and
``(ii) research relating to the causes, mechanisms,
diagnosis methods, treatment, and prevention of Fetal Alcohol
Syndrome and Fetal Alcohol Effects; and
``(C) award grants to, and enter into cooperative
agreements and contracts with, States, Indian tribal
governments, local governments, scientific and academic
institutions, and nonprofit organizations for the purpose
of--
``(i) conducting innovative demonstration and evaluation
projects designed to determine effective strategies,
including community-based prevention programs and
multicultural education campaigns, for preventing and
intervening in fetal exposure to alcohol;
``(ii) improving and coordinating the surveillance and
ongoing assessment methods implemented by such entities and
the Federal Government with respect to Fetal Alcohol Syndrome
and Fetal Alcohol Effects;
``(iii) developing and evaluating effective age-appropriate
and culturally competent prevention programs for children,
adolescents, and adults identified as being at-risk of
becoming chemically dependent on alcohol and associated with
or developing Fetal Alcohol Syndrome and Fetal Alcohol
Effects; and
``(iv) facilitating coordination and collaboration among
Federal, State, local government, Indian tribal, and
community-based Fetal Alcohol Syndrome prevention programs;
``(3) a basic research program to support and conduct basic
research on services and effective prevention treatments and
interventions for pregnant alcohol-dependent women and
individuals with Fetal Alcohol Syndrome and Fetal Alcohol
Effects;
``(4) a procedure for disseminating the Fetal Alcohol
Syndrome and Fetal Alcohol Effects diagnostic criteria
developed pursuant to section 705 of the ADAMHA
Reorganization Act (42 U.S.C. 485n note) to health care
providers, educators, social workers, child welfare workers,
and other individuals; and
``(5) the establishment, in accordance with subsection (b),
of an interagency task force on Fetal Alcohol Syndrome and
Fetal Alcohol Effects to foster coordination among all
Federal agencies that conduct or support Fetal Alcohol
Syndrome and Fetal Alcohol Effects research, programs, and
surveillance, and otherwise meet the general needs of
populations actually or potentially impacted by Fetal Alcohol
Syndrome and Fetal Alcohol Effects.
``(b) Interagency Task Force.--
``(1) Membership.--The Task Force established pursuant to
paragraph (5) of subsection (a) shall--
``(A) be chaired by the Secretary or a designee of the
Secretary, and staffed by the Administration; and
``(B) include representatives from all relevant agencies
and offices within the Department of Health and Human
Services, the Department of Agriculture, the Department of
Education, the Department of Defense, the Department of the
Interior, the Department of Justice, the Department of
Veterans Affairs, the Bureau of Alcohol, Tobacco and
Firearms, the Federal Trade Commission, and any other
relevant Federal agency.
``(2) Functions.--The Task Force shall--
``(A) coordinate all Federal programs and research
concerning Fetal Alcohol Syndrome and Fetal Alcohol Effects,
including programs that--
``(i) target individuals, families, and populations
identified as being at risk of acquiring Fetal Alcohol
Syndrome and Fetal Alcohol Effects; and
``(ii) provide health, education, treatment, and social
services to infants, children, and adults with Fetal Alcohol
Syndrome and Fetal Alcohol Effects;
``(B) coordinate its efforts with existing Department of
Health and Human Services task forces on substance abuse
prevention and maternal and child health; and
``(C) report on a biennial basis to the Secretary and
relevant committees of Congress on the current and planned
activities of the participating agencies.

``SEC. 399H. ELIGIBILITY.

``To be eligible to receive a grant, or enter into a
cooperative agreement or contract under this part, an entity
shall--
``(1) be a State, Indian tribal government, local
government, scientific or academic institution, or nonprofit
organization; and
``(2) prepare and submit to the Secretary an application at
such time, in such manner, and containing such information as
the Secretary may prescribe, including a description of the
activities that the entity intends to carry out using amounts
received under this part.

``SEC. 399I. AUTHORIZATION OF APPROPRIATIONS.

``There are authorized to be appropriated to carry out this
part, such sums as are necessary for each of the fiscal years
1995 through 1998.''.
____

S. 171

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 ``Medicaid Substance Abuse
Treatment Act''.

SEC. 2. FINDINGS AND PURPOSE.

(a) Findings.--The Congress finds that--
(1) a woman's ability to bear healthy children is
threatened by the consequences of alcoholism and drug
addiction;
(2) an estimated 375,000 infants each year are born drug-
exposed, at least 5,000 infants are born each year with fetal
alcohol syndrome, and another 35,000 are born each year with
fetal alcohol effect, a less severe version of fetal alcohol
syndrome;
(3) drug use during pregnancy can result in low
birthweight, physical deformities, mental retardation,
learning disabilities, and heightened nervousness and
irritability in newborns;
(4) fetal alcohol syndrome is the leading identifiable
cause of mental retardation in the United States and the only
cause that is 100 percent preventable;
(5) drug-impaired individuals pose extraordinary societal
costs in terms of medical, educational, foster care,
residential, and support services over the lifetimes of such
individuals;
(6) women, in general, are underrepresented in drug and
alcohol treatment programs;
(7) due to fears among service providers concerning the
risks pregnancies pose, pregnant women face more obstacles to
substance abuse treatment than do other addicts and many
substance abuse treatment programs, in fact, exclude pregnant
women or women with children;
(8) alcohol and drug treatment is an important prevention
strategy to prevent low birthweight, transmission of AIDS,
and chronic physical, mental, and emotional disabilities
associated with prenatal exposure to alcohol and other drugs;
(9) effective substance abuse treatment must address the
special needs of pregnant women who are alcohol or drug
dependent, including substance-abusing women who may often
face such problems as domestic violence, incest and other
sexual abuse, poor housing, poverty, unemployment, lack of
education and job skills, lack of access to health care,
emotional problems, chemical dependency in their family
backgrounds, single parenthood, and the need to ensure child
care for existing children while undergoing substance abuse
treatment;
(10) nonhospital residential treatment is an important
component of comprehensive and effective substance abuse
treatment for pregnant addicted women, many of whom need
long-term, intensive habilitation outside of their
communities to recover from their addiction and take care of
themselves and their families; and
(11) a gap exists under the medicaid program for the
financing of comprehensive residential care in the existing
continuum of medicaid-covered alcoholism and drug abuse
treatment services for low-income pregnant addicted women.
(b) Purposes.--The purposes of this Act are--
(1) to increase the ability of pregnant women who are
substance abusers to participate in alcohol and drug
treatment;
(2) to ensure the availability of comprehensive and
effective treatment programs for pregnant women, thus
promoting a woman's ability to bear healthy children;
(3) to ensure that nonhospital residential treatment is
available to those low-income pregnant addicted women who
need long-term, intensive habilitation to recover from their
addiction;
(4) to create a new optional medicaid residential treatment
service for alcoholism and drug dependency treatment; and
(5) to define the core services that must be provided by
treatment providers to ensure
[[Page S507]] that needed services will be available and
appropriate.

SEC. 3. MEDICAID COVERAGE OF ALCOHOLISM AND DRUG DEPENDENCY
RESIDENTIAL TREATMENT SERVICES FOR PREGNANT
WOMEN, CARETAKER PARENTS, AND THEIR CHILDREN.

(a) Coverage of Alcoholism and Drug Dependency Residential
Treatment Services.--
(1) Optional coverage.--Section 1905 of the Social Security
Act (42 U.S.C. 1396d) is amended--
(A) in subsection (a)--
(i) by striking ``and'' at the end of paragraph (21);
(ii) in paragraph (24), by striking the period at the end
and inserting a semicolon;
(iii) by redesignating paragraphs (22), (23), and (24) as
paragraphs (25), (22), and (23), respectively, and by
transferring and inserting paragraph (25) after paragraph
(23), as so redesignated; and
(iv) by inserting after paragraph (23) the following new
paragraph:
``(24) alcoholism and drug dependency residential treatment
services (to the extent allowed and as defined in section
1931); and''; and
(B) in the sentence following paragraph (25), as so
redesignated--
(i) in subdivision (A), by striking ``or'' at the end;
(ii) in subdivision (B), by inserting ``, who is not
receiving alcoholism and drug dependency residential
treatment services,'' after ``65 years of age''; and
(iii) by inserting after subdivision (B) the following:
``(C) any such payments with respect to alcoholism and drug
dependency residential treatment services under paragraph
(24) for individuals not described in section 1931(d).''.
(2) Alcoholism and drug dependency residential treatment
services defined.--Title XIX of the Social Security Act (42
U.S.C. 1396 et seq.) is amended by adding at the end the
following new section:

``ALCOHOLISM AND DRUG DEPENDENCY RESIDENTIAL TREATMENT SERVICES

``Sec. 1931. (a) Alcoholism and Drug Dependency Residential
Treatment Services.--The term `alcoholism and drug dependency
residential treatment services' means all the required
services described in subsection (b) which are provided--
``(1) in a coordinated manner by a residential treatment
facility that meets the requirements of subsection (c) either
directly or through arrangements with--
``(A) public and nonprofit private entities;
``(B) licensed practitioners or federally qualified health
centers with respect to medical services; or
``(C) the Indian Health Service or a tribal or Indian
organization that has entered into a contract with the
Secretary under section 102 of the Indian Self-Determination
Act (25 U.S.C. 450f) or section 502 of the Indian Health Care
Improvement Act (25 U.S.C. 1652) with respect to such
services provided to women eligible to receive services in
Indian Health Facilities; and
``(2) pursuant to a written individualized treatment plan
prepared for each individual, which plan--
``(A) states specific objectives necessary to meet the
individual's needs;
``(B) describes the services to be provided to the
individual to achieve those objectives;
``(C) is established in consultation with the individual;
``(D) is periodically reviewed and (as appropriate) revised
by the staff of the facility in consultation with the
individual;
``(E) reflects the preferences of the individual; and
``(F) is established in a manner which promotes the active
involvement of the individual in the development of the plan
and its objectives.
``(b) Required Services Defined.--
``(1) In general.--The required services described in this
subsection are as follows:
``(A) Counseling, addiction education, and treatment
provided on an individual, group, and family basis and
provided pursuant to individualized treatment plans,
including the opportunity for involvement in Alcoholics
Anonymous and Narcotics Anonymous.
``(B) Parenting skills training.
``(C) Education concerning prevention of HIV infection.
``(D) Assessment of each individual's need for domestic
violence counseling and sexual abuse counseling and provision
of such counseling where needed.
``(E) Room and board in a structured environment with on-
site supervision 24 hours-a-day.
``(F) Therapeutic child care or counseling for children of
individuals in treatment.
``(G) Assisting parents in obtaining access to--
``(i) developmental services (to the extent available) for
their preschool children;
``(ii) public education for their school-age children,
including assistance in enrolling them in school; and
``(iii) public education for parents who have not completed
high school.
``(H) Facilitating access to prenatal and postpartum health
care for women, to pediatric health care for infants and
children, and to other health and social services where
appropriate and to the extent available, including services
under title V, services and nutritional supplements provided
under the special supplemental food program for women,
infants, and children (WIC) under section 17 of the Child
Nutrition Act of 1966, services provided by federally
qualified health centers, outpatient pediatric services,
well-baby care, and early and periodic screening, diagnostic,
and treatment services (as defined in section 1905(r)).
``(I) Ensuring supervision of children during times their
mother is in therapy or engaged in other necessary health or
rehabilitative activities, including facilitating access to
child care services under title IV and title XX.
``(J) Planning for and counseling to assist reentry into
society, including appropriate outpatient treatment and
counseling after discharge (which may be provided by the same
program, if available and appropriate) to assist in
preventing relapses, assistance in obtaining suitable
affordable housing and employment upon discharge, and
referrals to appropriate educational, vocational, and other
employment-related programs (to the extent available).
``(K) Continuing specialized training for staff in the
special needs of residents and their children, designed to
enable such staff to stay abreast of the latest and most
effective treatment techniques.
``(2) Requirement for certain services.--Services under
subparagraphs (A), (B), (C), and (D), of paragraph (1) shall
be provided in a cultural context that is appropriate to the
individuals and in a manner that ensures that the individuals
can communicate effectively, either directly or through
interpreters, with persons providing services.
``(3) Limitations on coverage.--
``(A) In general.--Subject to subparagraph (B), services
described in paragraph (1) shall be covered in the amount,
duration, and scope therapeutically required for each
eligible individual in need of such services.
``(B) Restrictions on limiting coverage.--A State plan
shall not limit coverage of alcoholism and drug dependency
residential treatment services for any period of less than 12
months per individual, except in those instances where a
finding is made that such services are no longer
therapeutically necessary for an individual.
``(c) Facility Requirements.--The requirements of this
subsection with respect to a facility are as follows:
``(1) The agency designated by the chief executive officer
of the State to administer the State's alcohol and drug abuse
prevention and treatment activities and programs has
certified to the single State agency under section 1902(a)(5)
that the facility--
``(A) is able to provide all the services described in
subsection (b) either directly or through arrangements with--
``(i) public and nonprofit private entities;
``(ii) licensed practitioners or federally qualified health
centers with respect to medical services; or
``(iii) the Indian Health Service or with a tribal or
Indian organization that has entered into a contract with the
Secretary under section 102 of the Indian Self-Determination
Act (25 U.S.C. 450f) or section 502 of the Indian Health Care
Improvement Act (25 U.S.C. 1652) with respect to such
services provided to women eligible to receive services in
Indian Health Facilities; and
``(B) except for Indian Health Facilities, meets all
applicable State licensure or certification requirements for
a facility of that type.
``(2)(A) The facility or a distinct part of the facility
provides room and board, except that--
``(i) subject to subparagraph (B), the facility shall have
no more than 40 beds; and
``(ii) subject to subparagraph (C), the facility shall not
be licensed as a hospital.
``(B) The single State agency may waive the bed limit under
subparagraph (A)(i) for one or more facilities subject to
review by the Secretary. Waivers, where granted, must be made
pursuant to standards and procedures set out in the State
plan and must require the facility seeking a waiver to
demonstrate that--
``(i) the facility will be able to maintain a therapeutic,
family-like environment;
``(ii) the facility can provide quality care in the
delivery of each of the services identified in subsection
(b);
``(iii) the size of the facility will be appropriate to the
surrounding community; and
``(iv) the development of smaller facilities is not
feasible in that geographic area.
``(C) The Secretary may waive the requirement under
subparagraph (A)(ii) that a facility not be a hospital, if
the Secretary finds that such facility is located in an
Indian Health Service area and that such facility is the only
or one of the only facilities available in such area to
provide services under this section.
``(3) With respect to a facility providing the services
described in subsection (b) to an individual eligible to
receive services in Indian Health Facilities, such a facility
demonstrates (as required by the Secretary) an ability to
meet the special needs of Indian and Native Alaskan women.
``(d) Eligible Individuals.--
``(1) In general.--A State plan shall limit coverage of
alcoholism and drug dependency residential treatment services
under section 1905(a)(24) to the following individuals
otherwise eligible for medical assistance under this title:
``(A) Women during pregnancy, and until the end of the 12th
month following the termination of the pregnancy.
``(B) Children of a woman described in subparagraph (A).
``(C) At the option of a State, a caretaker parent or
parents and children of such a parent.
[[Page S508]] ``(2) Initial assessment of eligible
individuals.--An initial assessment of eligible individuals
specified in paragraph (1) seeking alcoholism and drug
dependency residential treatment services shall be performed
by the agency designated by the chief executive officer of
the State to administer the State's alcohol and drug abuse
treatment activities (or its designee). Such assessment shall
determine whether such individuals are in need of alcoholism
or drug dependency treatment services and, if so, the
treatment setting (such as inpatient hospital, nonhospital
residential, or outpatient) that is most appropriate in
meeting such individual's health and therapeutic needs and
the needs of such individual's dependent children, if any.
``(e) Overall Cap on Medical Assistance and Allocation of
Beds.--
``(1) Total amount of services as medical assistance.--
``(A) In general.--The total amount of services provided
under this section as medical assistance for which payment
may be made available under section 1903 shall be limited to
the total number of beds allowed to be allocated for such
services in any given year as specified under subparagraph
(B).
``(B) Total number of beds.--The total number of beds
allowed to be allocated under this subparagraph (subject to
paragraph (2)(C)) for the furnishing of services under this
section and for which Federal medical assistance may be made
available under section 1903 is for calendar year--
``(i) 1995, 1,080 beds;
``(ii) 1996, 2,000 beds;
``(iii) 1997, 3,500 beds;
``(iv) 1998, 5,000 beds;
``(v) 1999, 6,000 beds; and
``(vi) 2000 and for calendar years thereafter, a number of
beds determined appropriate by the Secretary.
``(2) Allocation of beds.--
``(A) Initial allocation formula.--For each calendar year,
a State exercising the option to provide the services
described in this section shall be allocated from the total
number of beds available under paragraph (1)(B)--
``(i) in calendar years 1995 and 1996, 20 beds;
``(ii) in calendar years 1997, 1998, and 1999, 40 beds; and
``(iii) in calendar year 2000 and for each calendar year
thereafter, a number of beds determined based on a formula
(as provided by the Secretary) distributing beds to States on
the basis of the relative percentage of women of childbearing
age in a State.
``(B) Reallocation of beds.--The Secretary shall provide
that in allocating the number of beds made available to a
State for the furnishing of services under this section that,
to the extent not all States are exercising the option of
providing services under this section and there are beds
available that have not been allocated in a year as provided
in paragraph (1)(B), that such beds shall be reallocated
among States which are furnishing services under this section
based on a formula (as provided by the Secretary)
distributing beds to States on the basis of the relative
percentage of women of childbearing age in a State.
``(C) Indian health service areas.--In addition to the beds
allowed to be allocated under paragraph (1)(B) there shall be
an additional 20 beds allocated in any calendar year to
States for each Indian Health Service area within the State
to be utilized by Indian Health Facilities within such an
area and, to the extent such beds are not utilized by a
State, the beds shall be reapportioned to Indian Health
Service areas in other States.''.
(3) Maintenance of state financial effort and 100 percent
federal matching for services for indian and native alaskan
women in indian health services areas.--Section 1903 of the
Social Security Act (42 U.S.C. 1396b) is amended by adding at
the end the following new subsections:
``(x) No payment shall be made to a State under this
section in a State fiscal year for alcoholism and drug
dependency residential treatment services (described in
section 1931) unless the State provides assurances
satisfactory to the Secretary that the State is maintaining
State expenditures for such services at a level that is not
less than the average annual level maintained by the State
for such services for the 2-year period preceding such fiscal
year.
``(y) Notwithstanding the preceding provisions of this
section, the Federal medical assistance percentage for
purposes of payment under this section for services described
in section 1931 provided to individuals residing on or
receiving services in an Indian Health Service area shall be
100 percent.''.
(b) Payment on a Cost-Related Basis.--Section 1902(a)(13)
of the Social Security Act (42 U.S.C. 1396a(a)(13)) is
amended--
(1) by striking ``and'' at the end of subparagraph (E);
(2) by adding ``and'' at the end of subparagraph (F); and
(3) by adding at the end the following new subparagraph:
``(G) for payment for alcoholism and drug dependency
residential treatment services which the State finds, and
makes assurances satisfactory to the Secretary, are
reasonable and adequate to meet the costs which must be
incurred by efficiently and economically operated facilities
in order to provide all the services listed in section
1931(b) in conformity with applicable Federal and State laws,
regulations, and quality and safety standards and to assure
that individuals eligible for such services have reasonable
access to such services;''.
(c) Conforming Amendments.--
(1) Clarification of optional coverage for specified
individuals.--Section 1902(a)(10) of the Social Security Act
(42 U.S.C. 1396a(a)(10)) is amended, in the matter following
subparagraph (F)--
(A) by striking ``; and (XI)'' and inserting ``, (XI)'';
(B) by striking ``, and (XI)'' and inserting ``, and
(XII)''; and
(C) by inserting before the semicolon at the end the
following: ``, and (XIII) the making available of alcoholism
and drug dependency residential treatment services to
individuals described in section 1931(d) shall not, by reason
of this paragraph, require the making of such services
available to other individuals''.
(2) Continuation of eligibility for alcoholism and drug
dependency treatment for pregnant women for 12 months
following end of pregnancy.--Section 1902 of the Social
Security Act (42 U.S.C. 1396a) is amended in subsection
(e)(5) by striking ``under the plan,'' and all through the
period at the end and inserting ``under the plan--
``(A) as though she were pregnant, for all pregnancy-
related and postpartum medical assistance under the plan,
through the end of the month in which the 60-day period
(beginning on the last day of her pregnancy) ends; and
``(B) for alcoholism and drug dependency residential
treatment services under section 1931 through the end of the
1-year period beginning on the last day of her pregnancy.''.
(3) Redesignations.--Section 1902 of the Social Security
Act (42 U.S.C. 1396a) is further amended--
(A) in subsection (a)(10)(C)(iv), by striking ``(21)'' and
inserting ``(24)''; and
(B) in subsection (j), by striking ``(22)'' and inserting
``(25)''.
(d) Annual Education and Training in Indian Health Service
Areas.--The Secretary of Health and Human Services in
cooperation with the Indian Health Service shall conduct on
at least an annual basis training and education in each of
the 12 Indian Health Service areas for tribes, Indian
organizations, residential treatment providers, and State
health care workers regarding the availability and nature of
residential treatment services available in such areas under
the provisions of this Act.
(e) Effective Date; Transition.--(1) The amendments made by
this section apply to alcoholism and drug dependency
residential treatment services furnished on or after July 1,
1995, without regard to whether or not final regulations to
carry out such amendments have been promulgated by such date.
(2) The Secretary of Health and Human Services shall not
take any compliance, disallowance, penalty, or other
regulatory action against a State under title XIX of the
Social Security Act with regard to alcoholism and drug
dependency residential treatment services (as defined in
section 1931(a) of such Act) made available under such title
on or after July 1, 1995, before the date the Secretary
issues final regulations to carry out the amendments made by
this section, if the services are provided under its plan in
good faith compliance with such amendments.
____

Comprehensive Fetal Alcohol Syndrome Prevention Act

summary

This bill would establish a comprehensive program to FAS/
FAE across the nation by filling in the gaps in our current
FAS/FAE prevention system. The program would:
Coordinate and support national and targeted public
awareness, prevention and education programs on FAS/FAE.
Coordinate and support applied epidemiologic research
concerning FAS/FAE.
Disseminate FAS/FAE diagnostic criteria to health care and
social services providers.
Foster coordination among all Federal agencies that conduct
or support FAS/FAE research.

four-part program

The bill would create a program within the Department of
Health and Human Services (HHS) with four primary components:
1. Education and public awareness
Various agencies under HHS would be required to coordinate,
support and conduct national, State and community-based
public awareness and prevention programs on FAS/FAE. The bill
would authorize grants for State, local and other FAS/FAE
prevention programs.
2. Applied epidemiologic research and prevention
The bill would require various agencies under HHS to
conduct and support research (basic and applied
epidemiologic) on the cause, prevention and treatment of FAS/
FAE. It would provide technical assistance to State, tribal
and local governments, as well as scientific and academic
institutions and other public entities, that are conducting
research on FAS/FAE or are engaged in prevention and early
intervention programs. Grants would be awarded to such
entities to assist in determining the most effective
strategies for prevention and intervention of fetal exposure
to alcohol.
3. Diagnostic Criteria for FAS/FAE
Various agencies under HHS would be required to widely
disseminate to health care and social services providers the
FAS/FAE diagnostic criteria developed pursuant to the ADAMHA
Reorganization Act.
4. Inter-agency task force
A large number of government agencies are concerned
directly or indirectly with FAS/
[[Page S509]] FAE, but there is little coordination of these
programs. This bill would create an Inter-Agency Task Force
to coordinate federal efforts and report on an annual basis
to the Secretary of HHS and to relevant congressional
committees. The panel will include representatives from the
Departments of HHS, Agriculture, Education, Defense,
Interior, Justice, and Veterans Affairs; from the Bureau of
Alcohol, Tobacco and Firearms; from the Federal Trade
Commission; and from any other relevant Federal agency.

Mr. BINGAMAN. Mr. President, I am pleased today to join the
distinguished minority leader, Senator Daschle, in reintroducing the
Comprehensive Fetal Alcohol Syndrome Prevention Act. Through this
legislation, we are proposing a comprehensive, coordinated, national
effort to prevent one of the leading causes of birth defects in this
country: Fetal Alcohol Syndrome.
The need for this legislation is well documented. Fetal Alcohol
Syndrome [FAS] is the Nation's primary known cause of mental
retardation; yet it is completely preventable. According to a 1993
report issued by the Centers for Disease Control and Prevention, the
number of reported FAS cases has tripled over the past decade. The CDC
reports that in 1992, nearly 4 infants out of every 10,000 births were
born with FAS, suffering irreversible physical and mental harm. In
1979, the first year CDC collected information on the incidence of
Fetal Alcohol Syndrome, it estimated the number of reported FAS cases
at only 1 per 10,000 births. Adding to the extent of the problem are
estimates which indicate that each year 10,000 to 12,000 infants are
born with lesser, though still serious, alcohol-related birth defects
known as Fetal Alcohol Effects [FAE].
In my home State of New Mexico, the number of infants born with FAS
has exceeded the national average for a number of years. Each year,
more than 36 babies are born in New Mexico with FAS, and more than 80
are born with FAE. Some experts believe our FAS rate has been
consistently higher than the national average because our doctors, who
have benefitted from a significant amount of State-based FAS research,
are more familiar with its signs and symptoms.
If this is true, then nationally the number of FAS and FAE births
could be higher than today's estimates. In fact, the CDC believes this
to be the case. According to Dr. David Erickson, the chief of the CDC's
Birth Defects and Genetic Diseases branch, the new CDC count--which we
need to remember is a threefold increase over the 1979 estimate--
probably is a substantial undercount. It is an undercount for a number
of reasons, but chief among them is undoubtedly lack of awareness.
Although the exact number of infants and families impacted by FAS and
FAE is not entirely certain, there is no question that Fetal Alcohol
Syndrome is a national problem. It can impact any child, any family,
and any community. But I am especially troubled about the threat FAS
poses to the Navajo, Apache, and Pueblo children and families in New
Mexico and to American Indians throughout the Nation.
New Mexico health officials estimate that the combined FAS rate for
our State's 22 Indian Tribes is two to five times that of the national
average. According to the Indian Health Service, the prevalence of FAS
is significantly higher among American Indians and Alaska Natives than
nationally. I have been told that in some American Indian and Alaska
Native communities, as many as one in four newborns may be affected by
FAS or FAE.
Mr. President, the real tragedy of Fetal Alcohol Syndrome and Fetal
Alcohol Effects is that both are completely preventable. Not one more
infant would be born with FAS or FAE if every pregnancy was an alcohol-
free pregnancy. If we could get the message out that alcohol and
pregnancy do not mix, if we could explain the compelling need for every
mother to stay away from alcoholic beverages while she is pregnant,
then we could eliminate this disease. The key is prevention through
education.
Prevention through education is the cornerstone of the Comprehensive
Fetal Alcohol Syndrome Prevention Act. As I mentioned earlier, this
bill will create a comprehensive, coordinated program within the
Department of Health and Human Services to help prevent FAS and FAE.
Specifically, this bill:
Directs the Secretary of Health and Human Services to: coordinate and
support national and targeted public awareness, prevention, and
education programs on FAS-FAE; coordinate and support basic and applied
epidemiologic research on FAS-FAE; assist states in establishing FAS-
FAE surveillance programs; focus efforts on the needs of at-risk
populations, and American Indians and Alaska Natives in particular.
Establishes an Inter-Agency Task Force on FAS-FAE: to coordinate all
Federal agencies that conduct or support FAS-FAE research, programs,
and surveillance or otherwise meet the general needs of populations
actually or potentially impacted by FAS-FAE.
I believe one of the most important provisions of this bill is the
section that would help states and local communities develop targeted
campaigns to increase public awareness of the symptoms and impact for
preventing FAS and FAE. The central focus of every campaign will be
clear, effective, and culturally-sensitive methods and messages for FAS
and FAE prevention. Initially, Federal efforts will focus on the needs
of at-risk populations, and in particular, American Indians and Alaska
Natives.
I urge my colleagues to study this legislation and lend it their
support. As I mentioned earlier, FAS knows no boundaries. It can, and
does, impact children and families in every State in this country. It
is a problem so pervasive, yet so readily preventable, that it requires
a broad-based, concerted, and coordinated effort for elimination.
Existing FAS-FAE prevention programs need increased funding, and we
need to work to make this happen. But money alone is not the answer. We
need a firm commitment from the Federal Government, the States, local
governments, Indian tribes, schools, community-based organizations, and
families to assume responsibility and work together, in a coordinated
manner, for the benefit of our children. If we have this commitment, we
can improve the quality of life for children already afflicted with
FAS, and we can put an end to this terrible, and 100-percent
preventable, disease.
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By Mr. HEFLIN:
S.J.Res. 13. A joint resolution proposing an amendment to the
Constitution to provide for a balanced budget for the United States
Government; to the Committee on the Judiciary.

BALANCED FEDERAL BUDGET CONSTITUTIONAL AMENDMENT
Mr. HEFLIN. Mr. President, as in morning business, I would like to
introduce legislation to amend the U.S. Constitution to require the
Federal Government to achieve and maintain a balanced budget. I have
introduced in each Congress, at the beginning, a similar joint
resolution during the time that I have served in the U.S. Senate. I
might say that the first bill, or resolution--the first legislative act
that I introduced when I came to the Senate was to introduce a bill for
a constitutional amendment requiring a balanced Federal budget.
I believe the opportunity to adopt this legislatively and to submit
it to the States for ratification is now at hand. In 1982, the Senate
debated it at great length and a vote was taken and there were 69
votes. As Members of the Senate know, a constitutional amendment
requiring a balanced budget requires a two-thirds vote. So there were
two additional votes over the required number back in 1982. Since that
time, we have had three votes in the Senate relative to the
constitutional amendment requiring a balanced budget. One year there
was one vote shy, which was 66 votes. And then on another occasion we
got 63 votes.
In each of the occasions in which the Senate has acted pertaining to
the constitutional amendment requiring a balanced budget, the House has
failed to pass it by the required two-thirds vote. But this time I
believe the House will pass it. Regarding the last time when we got 63
votes, I believe if the House had not acted before the Senate, the
Senate would have voted the required two-thirds vote at that time. This
measure has been around for a long time. It has narrowly missed its
mark in the past, but I believe it will meet the mark of a two-thirds
vote in the Senate and in the House this year.
It is also particularly important that we go ahead and act now.
Interest rates are going up. A major portion of the
[[Page S510]] budget each year deals with debt service. If interest
rates were to double, then you can see that the amount of money that
will be required to pay debt service will be doubled also. And so it is
important that we go ahead and act soon to provide the necessary fiscal
discipline.
It has been 33 years since the Government of the United States has
operated on a balanced budget. Most of the States have provisions that
require a balanced budget, and it provides the discipline which is
needed relative to Government operations and fiscal restraint.
So it is my pleasure again today to offer a bill or resolution which
is quite similar to the resolutions which I am cosponsoring with other
Senators, including Senator Hatch. I want to congratulate Senator Hatch
on his leadership in moving forward. He has a hearing set today
relative to resolutions requiring a balanced budget which has a group
of very distinguished Americans, a lot of former Attorneys General, and
others, who will be testifying at that particular time.
So I think it is important that we move forward and we move forward
as fast as we can. So I send to the desk at this time a resolution
requiring it.
Mr. President, the time has finally come to pass this legislation and
send it to the States for ratification. This amendment is not a
gimmick, nor is it chicanery; it is good common sense.
Since I first came to the Senate in 1979, every Congress I have
introduced legislation proposing a constitutional amendment to balance
the Federal budget, and I have dedicated myself to many years of work
with my colleagues to adopt a resolution which would authorize the
submission to the States for ratification of a constitutional amendment
to require a balanced budget.
For much of our Nation's history, a balanced Federal budget was the
status quo and part of our unwritten constitution. For our first 100
years, this country carried a surplus budget, but in recent years this
Nation's spending has gone out of control. Indeed, the fiscal
irresponsibility demonstrated over the years has convinced me that
constitutional discipline is the only way we can achieve the goal of
reducing deficits.
As you know, in 1982, the Senate did pass, by more than the required
two-thirds vote, a constitutional amendment calling for a balanced
budget. There were 69 votes in favor of it at that time. It was sent to
the House of Representatives, where, in the House Judiciary Committee
it was bottled up. The chairman would not allow it to come up for a
committee vote, in order that it might be reported to the floor of the
House of Representatives.
In order to bring the measure up for a vote in the House of
Representatives, it was necessary to file a discharge petition. This is
a petition that has to be signed by more than a majority of the whole
number of the House of Representatives, and then it is brought up and
voted on without amendment. The Senate-passed amendment failed to
obtain the necessary two-thirds vote that was required in the House of
Representatives at that time.
In the 99th Congress, after extensive debate, passage of a balanced
budget amendment by the Senate failed by one vote--but got 66 votes.
During the 101st Congress, I supported a measure which passed the
Judiciary Committee, but it was never considered by the full Senate. In
the 102d Congress, the Judiciary Committee favorably reported a bill,
but since an amendment failed to pass the House by the necessary two-
thirds vote, this killed the possibility of favorable action by the
Senate.
In the 103d Congress, the Senate again narrowly defeated an
amendment, which I cosponsored, by a vote of 63-37--only four votes
short of the 67 votes needed for passage. If the recent elections tell
us anything, it is that the American people want a leaner, more
efficient Federal Government and a government that lives within its
means.
Mr. President, I hope the time has come to finally adopt this long-
overdue amendment and begin to move toward our goal of a balanced
Federal budget.
Section 1 of the amendment requires a three-fifths vote of each House
of Congress before the Federal Government can engage in deficit
spending. A 60-percent vote in the Senate is a very difficult one to
obtain. This requirement should establish the norm that spending will
not exceed receipts in any fiscal year. If the government is going to
spend money, it should have the money on hand to pay its bills.
Section 2 of the amendment requires a three-fifths vote by both
Houses of Congress to raise the national debt. In addition to the
three-fifths vote, Congress must provide ``by law'' for an increase in
public debt. As I understand it, this means presentment to the
President, where the President has the right to veto or sign. If the
President chose to veto the bill, it would be returned to Congress for
action to possibly override the veto. It is also important to note that
section one, regarding the specific excess of outlays over receipts,
contains this same requirement that Congress act ``by law.''
Section 2 is important because it functions as an ``enforcement
mechanism'' for the balanced budget amendment. While section 1 states
outright that ``total outlays * * * shall not exceed total receipts''
without the three-fifths authorization by Congress, the judicial branch
would lack the ability to order the legislative and executive branches
to meet this obligation. Therefore, section 2 will require a three-
fifths vote to increase the national debt. This provision will increase
the pressure to comply with the directive of this proposed
constitutional amendment.
Other than just being directory, the amendment, by way of section 2,
has some teeth and that is what is so important if we are going to do
away with deficit spending and operate so that we do not spend any more
money than the amount coming into the government. That is what we are
trying to achieve here.
Section 3 provides for the submission by the President of a balanced
budget to Congress. This section reflects the belief that sound fiscal
planning should be a shared governmental responsibility by the
President as well as the Congress.
Section 4 of the amendment requires a majority vote of the whole
number of each House of Congress any time Congress votes to increase
revenues. This holds public officials responsible, and puts elected
officials on record for any tax increase which may be necessary to
support Federal spending.
Section 5 of the amendment permits a waiver of the provisions for any
fiscal year in which a declaration of war is in effect. This section
also contains a provision long-supported by myself--that of allowing a
waiver in cases of less than an outright declaration of war--where the
United States is engaged in military conflict which causes an imminent
and serious threat to national security, and is so declared by a joint
resolution, which becomes law. Under this scenario, a majority of the
whole number of each House of Congress may waive the requirements of a
balanced budget amendment.
I firmly believe that Congress should have the option to waive the
requirement for a balanced budget in cases of less than an outright
declaration of war. Looking back over the history of our Nation, we
find that we have had only five declared wars: The War of 1812, the
Mexican War, the Spanish-American War, the First World War, and the
Second World War.
The most recent encounters of the United States in armed conflict
with enemies have been, of course, undeclared wars. We fought the Gulf
war without a declaration of war. In addition, we fought both the
Vietnam and Korean actions without declarations of war.
This country can be faced with military emergencies which threaten
our national security, without a formal declaration of war being in
effect. Circumstances may arise in which Congress may need to spend
significant amounts on national defense without a declaration of war.
Congress and the President must be given the necessary flexibility to
respond rapidly when a military emergency arises.
The United States has engaged in only five declared wars, yet the
United States has engaged in hostilities abroad which required no less
commitment of human lives or American resources than declared wars. In
fact, our Nation has been involved in approximately 200 instances in
which the United States has used military forces abroad in situations
of conflict. Not all of these would move Congress to seek a
[[Page S511]] waiver of the requirement of a balanced budget, but
Congress should have the constitutional flexibility to provide for our
Nation's security.
Section 6 of the amendment permits Congress to rely on estimates of
outlays and receipts in the implementation and enforcement of the
amendment by appropriate legislation.
Section 7 of the amendment provides that total receipts shall include
all receipts of the United States except those derived from borrowing.
In addition, total outlays shall include all outlays of the United
States except those for repayment of debt principal. This section is
intended to better define the relevant amounts that must be balanced.
Section 8 directs the amendment to take effect beginning with fiscal
year 2002 or with the second fiscal year beginning after ratification,
whichever is later. This section will thus allow Congress an adequate
period of time to consider and adopt the necessary procedures to
implement the amendment and to begin the job of actually balancing the
Federal budget.
Mr. President, the future of our Nation's economy is not a partisan
issue. Furthermore, the problem of deficit spending cannot be blamed on
one branch of government or one political party. Similarly, just as
everyone must share part of the blame for our economic ills, everyone
must be united in acting to attack the growing problem of deficit
spending. I recognize that a balanced budget amendment will not cure
our economic problems overnight, but it will act to change the course
of our future and lead to responsible fiscal management by our national
government.

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