[Congressional Record Volume 150, Number 20 (Tuesday, February 24, 2004)]
[Senate]
[Pages S1520-S1528]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. LAUTENBERG (for himself and Mr. Corzine):
S. 2105. A bill to improve the Federal shore protection program; to
the Committee on Environment and Public Works.
Mr. LAUTENBERG. Mr. President, I rise to introduce the Coastal
Restoration Act of 2004 for myself and Senator Corzine. Since 1995, the
Federal beach nourishment program has been a regular target of the
White House Office of Management and Budget, OMB. Under two separate
administrations there have been at least five efforts to radically
change or terminate the program.
The 1996, Congress passed the Shore Protection Act as Section 227 of
the Water Resources Development Act of 1996. That legislation was the
first statement by Congress since 1946 of its intent that the Nation
needed an ongoing Federal beach nourishment program. Unfortunately,
that has not stopped OMB from trying to change Federal policies by
making budget proposals that would cripple the program.
The Coastal Restoration Act, CRA, restates the congressional intent
regarding the importance of the Federal beach nourishment program. The
CRA makes it clear that changes in administration policy will not
prevent feasibility and other types of studies from being processed
through the Corps of Engineers and sent to Congress. The legislation
emphasizes the role of Congress in determining which beach nourishment
projects should be authorized for construction. It also re-states and
strengthens existing law that periodic renourishment is an integral
part of the ongoing construction of a beach nourishment project.
This bill states the intent of Congress that preference shall be
given to areas 1, where there has been a previous investment of federal
funds; 2, where regional sediment management plans have been adopted to
integrate coastal beach nourishment, navigation, and environmental
projects; 3, where there is a need to prevent or mitigate damage to
shores, beaches, and other coastal infrastructure where that damage is
caused at least in part by Federal activities; or 4, where the project
promotes human health and safety as well as the quality of life for
individuals and families. This recognizes that a primary purpose for
establishing the Federal beach nourishment program in 1946 was the
promotion of public recreation.
My bill will also raise the low priority now accorded by the U.S.
Army Corps to the recreational benefits of beach nourishment, giving
equal consideration to all national projects. It also establishes the
cost share for beach nourishment projects whose primary net benefit is
recreational at the same level of Federal cost share participation as
it applies to storm damage and environmental restoration beach
nourishment projects. Congress retains the prerogative to authorize the
project and appropriate funds based on the Corps' report findings.
These changes are needed to protect and restore our beaches as the
national treasure they are. According to a recent study, travel and
tourism is the world's largest industry, contributing $3.5 trillion to
the world's economy in 2001. In the United States, nearly 17 million
people are employed in the tourism industry.
Beaches are the leading tourist destination in the Nation. Each year
about 180 million Americans make 2 billion visits to the ocean, the
Gulf, and our inland beaches. That is almost twice as many visits as
those made to State and national parks and wilderness areas combined.
In its ``State of the Beach 2003'' report the Surfrider Foundation
states that tourist expenditures in 16 of our coastal States topped
$104 billion.
My home State, New Jersey, has 127 miles of shoreline and we are
proud of every mile. A significant portion of our tourism industry,
which generates $10 billion a year, is due to our beaches. I know many
of my colleagues in the Senate have similar situations in their States.
Our beaches also provide vital habitat for numerous species of
plants, and for animals such as claims, snails, and crabs. Every time a
wave hits the shore it brings nutrients and oxygen to support the tiny
but necessary life forms that live there.
Not to be overlooked are the peace and relaxation that a day, or
week, at the beach can provide. The poet Lord Byron put it so
exquisitely nearly two hundred years ago when he wrote:
There is a rapture on the lonely shore,
There is a society, where none intrudes,
By the deep sea, and music in its roar:
I love not man the less, but Nature more.
The shore's economic, environmental, and aesthetic benefits are truly
limitless. That is why I am introducing the Coastal Restoration Act of
2004. My legislation will revitalize the Federal beach nourishment
program by placing beach nourishment projects on a par with other Army
Corps projects, and assigning recreational benefits the same priority
as storm damage protection and environmental restoration, correcting
the inequities in our current practices.
Since the 1980s, when medical waste, sewage, and garbage began
washing up on the Jersey shore I have been working hard to protect and
nurture our beaches. I wrote the Ocean Dumping Act of 1988, which ended
ocean dumping of sewage sludge and industry waste. And I have led the
fight to ban oil and gas drilling off the Jersey shore. We have made a
lot of progress since the 1980s, but our work is far from over.
I ask unanimous consent the text of my bill be printed in the Record
following my remarks.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 2105
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 ``Coastal Restoration Act of
2004''.
[[Page S1521]]
SEC. 2. FEDERAL AID IN RESTORATION AND PROTECTION OF SHORES
AND BEACHES.
The first section of the Act entitled ``An Act authorizing
Federal participation in the cost of protecting the shores of
publicly owned property'', approved August 13, 1946 (33
U.S.C. 426e), is amended to read as follows:
``SECTION 1. FEDERAL AID IN RESTORATION AND PROTECTION OF
SHORES AND BEACHES.
``(a) Declaration of Policy.--
``(1) Policy.--It is the policy of the United States to
promote shore and beach protection projects and related
research that encourages the protection, restoration, and
enhancement of shores, sandy beaches, and other coastal
infrastructure on a comprehensive and coordinated basis by
Federal, State, and local governments and private persons.
``(2) Purposes.--The purposes of this Act are--
``(A) to restore and maintain the shores, beaches, and
other coastal resources of the United States (including
territories and possessions); and
``(B) to promote the healthful recreation of the people of
the United States.
``(3) Priority.--In carrying out this Act, preference shall
be given to areas--
``(A) in which there has been a previous investment of
Federal funds;
``(B) where regional sediment management plans have been
adopted;
``(C) with respect to which the need for prevention or
mitigation of damage to shores, beaches, and other coastal
infrastructure is attributable to Federal navigation projects
or other Federal activities; or
``(D) that promote--
``(i) human health and safety; and
``(ii) the quality of life for individuals and families.
``(b) Implementation.--The Secretary shall pay the Federal
share of the cost of carrying out shore and beach protection
projects and related research that encourages the protection,
restoration, and enhancement of shores, sandy beaches, and
other coastal infrastructure (including projects for beach
restoration, periodic beach nourishment, and restoration or
protection of State, county, or other shores, public coastal
beaches, parks, conservation areas, or other environmental
resources).
``(c) Federal Share.--
``(1) In general.--Subject to paragraphs (2) through (4),
the Federal share of the cost of a project described in
subsection (b) shall be determined in accordance with section
103 of the Water Resources Development Act of 1986 (33 U.S.C.
2213).
``(2) Exception.--In the case of a project for beach
erosion control the primary purpose of which is recreation,
the Federal share shall be equal to the Federal share for a
beach erosion control project the primary purpose of which is
storm damage protection or environmental restoration.
``(3) Remainder.--
``(A) In general.--Subject to subparagraph (B), the
remainder of the cost of the construction of a project
described in subsection (b) shall be paid by a State,
municipality, other political subdivision, nonprofit entity,
or private enterprise.
``(B) Exception.--The Federal Government shall bear all of
the costs incurred for the restoration and protection of
Federal property.
``(4) Greater federal share.--In the case of a project
described in subsection (b) for the restoration and
protection of a State, county, or other publicly-owned shore,
coastal beach, park, conservation area, or other
environmental resource, the Chief of Engineers may increase
the Federal share to be greater than that provided in
paragraph (1) if the area--
``(A) includes--
``(i) a zone that excludes permanent human habitation; or
``(ii) a recreational beach or other area determined by the
Chief of Engineers;
``(B) satisfies adequate criteria for conservation and
development of the natural resources of the environment; and
``(C) extends landward a sufficient distance to include, as
approved by the Chief of Engineers--
``(i) protective dunes, bluffs, or other natural features;
``(ii) such other appropriate measures adopted by the State
or political subdivision of the State to protect uplands
areas from damage, promote public recreation, or protect
environmental resources; or
``(iii) appropriate facilities for public use.
``(5) Recommendations.--
``(A) In general.--In recommending to Congress projects for
Federal participation, the Secretary shall recommend projects
for the restoration and protection of shores and beaches that
promote equally all national economic development benefits
and purposes, including recreation, hurricane and storm
damage reduction, and environmental restoration.
``(B) Report.--The Secretary shall--
``(i) identify projects that maximize net benefits for
national purposes; and
``(ii) submit to Congress a report that describes the
findings of the Secretary.
``(d) Periodic Beach Nourishment.--In this Act, when the
most suitable and economical remedial measures, as determined
by the Chief of Engineers, would be provided by periodic
beach nourishment, the term `construction' shall include the
deposit of sand fill at suitable intervals of time to furnish
sand supply to protect shores and beaches for a period of
time specified by the Chief of Engineers and authorized by
Congress.
``(e) Private Shores and Beaches.--
``(1) In general.--A shore or beach, other than a public
shore or beach, shall be eligible for Federal assistance
under this Act if--
``(A) there is a benefit to a public shore or beach,
including a benefit from public use or from the protection of
nearby public property; or
``(B) the benefits to the shore or beach are incidental to
the project.
``(2) Federal share.--The Secretary shall adjust the
Federal share of a project for a shore or beach, other than a
public shore or beach, to reflect the benefits described in
paragraph (1).
``(f) Authorization of Projects.--
``(1) In general.--Subject to paragraph (2), no Federal
share shall be provided for a project under this Act unless--
``(A) the plan for that project has been specifically
adopted and authorized by Congress after investigation and
study; or
``(B) in the case of a small project under sections 3 or 5,
the plan for that project has been approved by the Chief of
Engineers.
``(2) Studies.--
``(A) In general.--The Secretary shall--
``(i) recommend to Congress studies concerning shore and
beach protection projects that meet the criteria established
under this Act and other applicable law;
``(ii) conduct such studies as Congress requests; and
``(iii) report the results of all studies requested by
Congress to the Committee on Environment and Public Works of
the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives.
``(B) Recommendations for shore and beach protection
projects.--
``(i) In general.--The Secretary shall--
``(I) recommend to Congress the authorization or
reauthorization of all shore and beach protection projects
the plans for which have been approved by the Chief of
Engineers; and
``(II) report to Congress on the feasibility of other
projects that have been studied under subparagraph (A) but
have not been approved by the Chief of Engineers.
``(ii) Considerations.--In approving a project plan, the
Chief of Engineers shall consider the economic and ecological
benefits of the shore or beach protection project.
``(C) Coordination of projects.--In conducting studies and
making recommendations for a shore or beach protection
project under this paragraph, the Secretary shall--
``(i) determine whether there is any other project being
carried out by the Secretary or other Federal agency that may
be complementary to the shore or beach protection project;
and
``(ii) if there is such a complementary project, undertake
efforts to coordinate the projects.
``(3) Shore and beach protection projects.--
``(A) In general.--The Secretary shall construct any shore
or beach protection project authorized by Congress, or
separable element of such a project, for which Congress has
appropriated funds.
``(B) Agreements.--
``(i) Requirement.--After authorization by Congress, before
the commencement of construction of a shore or beach
protection project or separable element, the Secretary shall
offer to enter into a written agreement for the authorized
period of Federal participation in the project with a non-
Federal interest with respect to the project or separable
element.
``(ii) Terms.--The agreement shall--
``(I) specify the authorized period of Federal
participation in the project; and
``(II) ensure that the Federal Government and the non-
Federal interest cooperate in carrying out the project or
separable element.
``(g) Extension of the Period of Federal Participation.--At
the request of a non-Federal interest, the Secretary, acting
through the Chief of Engineers and with the approval of
Congress, shall extend the period of Federal participation in
a beach nourishment project that is economically feasible,
engineeringly sound, and environmentally acceptable for such
additional period as the Secretary determines appropriate.
``(h) Special Considerations.--In a case in which funds
have been appropriated to the Corps of Engineers for a
specific project but the funds cannot be expended because of
the time limits of environmental permits or similar
environmental considerations, the Secretary may carry over
such funds for use in the next fiscal year if construction of
the project, or a separable element of the project, will
cause minimal environmental damage and will not violate an
environmental permit.''.
______
By Mr. BUNNING (for himself, Mr. Miller, Mr. Alexander, and Mr.
Hatch):
S. 2106. A bill to amend the Internal Revenue Code of 1986 to provide
capital gains treatment for certain self-created musical works; to the
Committee on Finance.
Mr. ALEXANDER. Mr. President, I applaud Senator Bunning for
introducing the bill to amend the Internal Revenue Code of 1986 to
provide capital gains treatment for certain self-created musical works,
and I am proud to be a co-sponsor of this bill.
This bill will make songwriters eligible for the capital gains tax
rate when
[[Page S1522]]
they sell their portion of a song catalogue. It treats the taxation of
songwriters fairly so that they are on equal footing with musical
publishers. Many songwriters are self-employed small business owners,
but they are distinguishable from other similar small business owners,
such as authors, because the rate of pay for songwriters is set by the
Federal Government.
Historically, almost all professional songwriters assigned their
copyright to a music publisher. As a result, the songwriters did not
own the song or receive any royalty payments from the song. The
songwriters did not own the copyright, and therefore, were not required
to participate in any expenses toward exploiting it.
Currently, songwriters and music publishers are equal, joint-venture
business partners. The publisher serves as the songwriter's agent in
getting songs recorded or placed, otherwise known as ``co-publishing.''
Under this scenario, the songwriter and publisher equally share
expenses of, among other things, demos costs and legal fees, and they
equally share in any royalty income. Alternatively, the songwriter is
the music publisher and bears all of the expenses of, among other
things, demo costs and legal fees. Under the first scenario, the
songwriter is subject to ordinary income tax, rather than capital gains
tax, despite the fact that the sale of the song catalogue was actually
a capital gain and should have been taxed at a lower rate. A capital
gain is the result of a sale of a capital asset. Clearly, a song
catalog is a capital gain because it is an asset of the songwriter.
Under current law, music publishers are eligible for the capital
gains tax rate when they sell their portion of a song catalogue, but
songwriters are not. When the publishing rights or the song catalogue
is sold, music-publishing companies are allowed to claim the capital
gains tax rate on their portion of the sale. However, because the
songwriter wrote the song, they must pay ordinary income tax on their
share of the same sale even though they share in expenses toward
exploiting the copyright.
I am proud to be a cosponsor of this bill because it levels the tax
playing field between songwriters and music publishers.
______
By Mr. DeWINE (for himself, Mr. Leahy, and Mr. Domenici):
S. 2107. A bill to authorize an annual appropriations of $10,000,000
for mental health courts through fiscal year 2009; to the Committee on
the Judiciary.
Mr. DeWINE. Mr. President, I rise today to introduce a bill that
would reauthorize America's Law Enforcement and Mental Health Project.
This program addresses the impact that mentally ill offenders have had
on our criminal justice system and the impact the system has had on the
offenders and their special needs.
My interest in, and experience with this issue began over thirty
years ago, when I was working as Assistant County Prosecuting Attorney
in Greene County, OH, and then as County Prosecutor. What I learned
then--and what I have continued to encounter throughout my career in
public service--is that our State and local correctional facilities
have become way stations for far too many mentally ill individuals in
our Nation.
A recent Justice Department study revealed that 16 percent of all
inmates in America's State prisons and local jails today are mentally
ill. The American Jails Association estimates that 600,000 to 700,000
seriously mentally ill persons each year are booked into local jails,
alone. In Ohio, nearly 1 in 5 prisoners need psychiatric services or
special accommodations.
Far too many of our Nation's mentally ill persons have ended up in
our prisons and jails. In fact, on any given day, the Los Angeles
County Jail is home to more mentally ill inmates than the largest
mental health care institution in our country. What happens is that all
too often, the mentally ill act out their symptoms on the streets. They
are arrested for minor offenses and wind up in jail. They serve their
sentences or are paroled, but find themselves right back in the system
only a short time later after committing additional--often more
serious--crimes.
Throughout this destructive cycle, law enforcement and corrections
spend time and money trying to cope with the unique problems posed by
these individuals. Certainly, many mentally ill offenders must be
incarcerated because of the severity of their crimes. However, those
who commit very minor non-violent offenses don't necessarily need to be
incarcerated; instead, if given appropriate care early, their illnesses
could be addressed, helping the offenders, while reducing recidivism
and decreasing the burdens on our police and corrections officials.
That's why, four years ago Senator Domenici and I introduced
America's Law Enforcement and Mental Health Project, to begin to
identify--early in the process--mentally ill offenders within our
justice system and to use the power of the courts to assist them in
obtaining the treatment they need.
This program has been a success. In pilot programs around the
country, mental health courts have begun to help local communities take
steps toward effectively addressing the issues raised by the mentally
ill in our justice system, and these steps must continue. That's why
Senators Leahy and Domenici join me in cosponsoring this bill to
reauthorize this important program.
America's Law Enforcement and Mental Health Project established a
Federal grant program to help States and localities develop mental
health courts in their jurisdictions. These courts are specialized
courts with separate dockets. They hear cases exclusively involving
nonviolent offenses committed by mentally ill individuals.
Fundamentally, mental health courts enable State and local courts to
offer alternative sentences or alternatives to prosecution for those
offenders who could be served best by mental health services. These
courts are designed to address the historic lack of coordination
between local law enforcement and social service systems and the lack
of interaction within the criminal justice system.
To deal with the separate needs of mentally ill offenders, these
mental health courts are staffed by a core group of specialized
professionals, including a dedicated judge, prosecutor, public
defender, and court liaison to the mental health services community.
The courts promote efficiency and consistency by centrally managing all
outstanding cases involving a mentally ill defendant referred to the
mental health court.
Mental health court judges decide whether or not to hear each case
referred to them. The courts only deal with defendants deemed mentally
ill by qualified mental health professionals or the mental health court
judge. Similarly, participation in the court by the mentally ill is
voluntary; however, once the defendant volunteers for the Mental Health
Court, he or she is expected to follow the decision of the court. For
instance, in any given case, the mental health court judge, attorneys,
and health services liaison may all agree on a plan of treatment as an
alternative sentence or in lieu of prosecution. The defendant must
adhere strictly to this court-imposed treatment plan. The court must
then provide supervision with periodic review. This way, the court can
quickly deal with any failure of the defendant to fulfill the treatment
plan obligations. The mental health courts provide supervision of
participants that is more intensive than might otherwise be available,
with an emphasis on accountability and monitoring the participant's
performance. In this sense, the mental health courts function similarly
to drug courts.
Mr. President, mentally ill persons who choose to have their cases
heard in a mental health court often do so because that is the first
real opportunity that many of these people have to seek treatment. A
judicial program offering the possibility of effective treatment--
rather than jail time--gives a measure of hope and a chance for
rehabilitation to these defendants.
The successes of mental health courts are encouraging and show that
we can improve the health and safety of our communities through these
programs. For example, in Ohio, the Fairfield Municipal Mental Health
Court began its program on January 1, 2001. Of those participating in
the Fairfield program, 46 percent are bipolar, 42 percent suffer from
depression, and 13 percent are schizophrenic. It recently conducted its
first ``graduation'' ceremony of program participants. The program's
[[Page S1523]]
first graduate came to them hostile, uncommunicative, and unable to
function in society due to her bipolar mood disorder. Two years later,
she left the program confident, talkative, healthier, and reconnected
to her family and her life.
Many jurisdictions across America have established mental health
courts as a result of the program that we established four years ago.
Our Nation's communities are trying desperately to find the best way to
cope with the problems associated with mental illness. Law enforcement
agencies and correctional facilities remain challenged by difficulties
posed by mental illnesses. Mental health courts offer a solution.
Mental health courts have shown great success, and we must ensure
their continuation. Our Nation has long been enriched by the dual
ideals of compassion and justice, and these programs are a wonderful
embodiment of both ideals. I urge my colleagues to join in support of
this important legislation.
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. 2107
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. AUTHORIZATION OF APPROPRIATIONS.
Section 1001(a)(20) of title I of the Omnibus Crime Control
and Safe Streets Act of 1968 (42 U.S.C. 3793(a)(20)) is
amended by striking ``fiscal years 2001 through 2004'' and
inserting ``fiscal years 2004 through 2009''.
______
By Mr. HARKIN (for himself, Mr. Kennedy, Mr. Lieberman, and Mrs.
Cantwell):
S. 2108. A bill to amend the Federal Food, Drug, and Cosmetic Act to
ensure that consumers receive information about the nutritional content
of restaurant food and vending machine food; to the Committee on
Health, Education, Labor, and Pensions.
Mr. HARKIN. Mr. President, I rise to introduce a bill, the Menu
Education and Labeling Act, on behalf of myself and my colleagues,
Senators Kennedy, Lieberman and Cantwell.
More than 65 percent of American adults are overweight, and more than
30 percent are clinically obese. We lead the world in this dubious
distinction, which is growing worse. In the past 20 years, obesity
rates have doubled among American adults and children, while they have
tripled among teens. If we do not change course, kids attending school
today will be the first generation in American history to live a
shorter lifespan than their parents.
The issue is far from merely cosmetic. It is medical and economic.
The obesity epidemic has huge consequences. Overweight people have an
increased risk of diabetes, cardiovascular disease, cancers and other
illnesses. Sixty percent of overweight youth already have at least one
risk factor for heart disease which is the No. 1 killer of adults in
the U.S. Obesity also causes or contributes to $117 billion a year in
health care and related costs, more than half borne by taxpayers.
There is no single solution to the complex problem of obesity, but we
must start taking meaningful steps to address this growing problem by
giving people the tools necessary to live healthier lifestyles. That is
why my colleagues and I are introducing this bill today to extend
nutrition labeling beyond packaged foods to include foods at chain
restaurants with 20 or more locations, as well as food in vending
machines. This common-sense idea will give consumers a needed tool to
make wiser choices and achieve a healthier lifestyle. It is a positive
step toward addressing the obesity epidemic.
In 1990, Congress passed the Nutrition Labeling and Education Act,
NLEA, requiring food manufacturers to provide nutrition information on
nearly all packaged foods. The impact has been tremendous. Not only do
nearly three-quarters of adults use the food labels on packaged foods,
but studies indicate that consumers who read labels have healthier
diets.
Restaurants, which are more and more important to Americans' diet and
health, were excluded from the NLEA. American adults and children
consume a third of their calories at restaurants at the very time when
nutrition and health experts say that rising caloric consumption and
growing portion sizes are causes of obesity. We also know that when
children eat in restaurants, they consume twice as many calories as
when they eat at home. Consumers say that they would like nutrition
information provided when they order their food at restaurants, yet,
while they have good nutrition information in supermarkets, at
restaurants they can only guess.
Vending machine food sales also plays a large role in contributing to
the diets of Americans. Over the last three decades vending machine
sales have shot up eighty-five percent after inflation. Most vending
machine sales include foods of low nutritional value. The Menu
Education and Labeling Act will require fast-food and other chain
restaurants, as well as vending machines, to list basic nutritional
information clearly--so consumers can make better choices about the
foods that they eat.
Let there be no doubt: obesity is indeed an epidemic, and it is
continuing to grow. This is a public health crisis and we must address
it. Although this bill alone will not halt rising obesity in its
tracks, it provides consumers with an important tool with which to make
better choices about the food that they and their children consume.
In the coming weeks I will be offering additional initiatives to give
Americans the tools they need to stay healthy and address risk factors
like obesity and mental health that are associated with the rising
medical and financial costs of chronic illnesses. The common thread
will be an emphasis on preventing unnecessary disease and illness.
______
By Mrs. FEINSTEIN (for herself, Mr. Warner, Mr. Schumer, Mr.
DeWine, Mr. Levin, Mr. Chafee, Mr. Dodd, Mr. Jeffords, Mrs.
Boxer, Mrs. Clinton, Mr. Reed, and Mr. Lautenberg):
S. 2109. A bill to provide for a 10-year extension of the assault
weapons ban; to the Committee on the Judiciary.
Mrs. FEINSTEIN. Mr. President, I rise on behalf of myself and
Senators Warner, Schumer, DeWine, Levin, Chafee, Dodd, Jeffords, Boxer,
Clinton, Reed and Lautenberg to offer legislation that will reauthorize
the 1994 assault weapons ban--which is now set to expire on September
13, 2004--for another ten years.
I would first like to thank my courageous colleague from Virginia,
Senator Warner, for joining me in this effort. Senator Warner voted
against the assault weapons ban in 1994.
But this year, Senator Warner was willing to revisit his position on
the issue. He saw that--contrary to the fears of many in 1994--the ban
has done nothing to hurt innocent gun owners. Instead, the ban has only
made it harder for criminals to get access to military style firearms.
A willingness to look at issues like this with an open mind,
particularly this issue, shows a courage and a commitment to making the
right decisions that should be emulated by all public servants, and I
want to again thank Senator Warner for this.
Second, I would like to speak about who else supports this
legislation.
Those who join us in supporting a reauthorization of the assault
weapons ban include: Fraternal Order of Police; National League of
Cities; United States Conference of Mayors; National Association of
Counties; International Association of Chiefs of Police; National
Association of Police Organizations; International Brotherhood of
Police Officers; U.S. Conference of Catholic Bishops; National
Education Association; Americans for Gun Safety; The Brady Campaign/
Million Mom March; NAACP; American Bar Association; and the list goes
on, and on.
More than ten years ago--on July 1, 1993--Gian Luigi Ferri walked
into 101 California Street in San Francisco carrying two high-capacity
TEC-9 assault pistols. Within minutes, Ferri had murdered eight people,
and six others were wounded. This tragedy shook San Francisco, and it
shook the entire Nation.
The American people saw in that incident and so many others that came
before and after it the incredible destruction that could be inflicted
with military-style assault weapons--weapons designed and manufactured
with one goal in mind--maximum lethality.
[[Page S1524]]
It all started, really, on August 1, 1966, when Charlie Whitman
climbed the clock tower at the University of Texas and killed more than
a dozen people in an hour and a half shooting spree before he was
finally killed himself.
The day Whitman climbed that tower was the first time Americans
realized that they could become the random victims of gun violence no
matter where they were, and no matter what they were doing.
What made the Texas shooting so terrible was the total inability of
law enforcement to get to Charlie Whitman until he had been firing
shots for almost 96 minutes. The tower allowed him to do this. The
tower made him, at least for that amount of time, invincible.
But gunmen no longer need the protection of clock towers, because
they now have assault weapons.
We saw in the Columbine shooting, in the Long Island Rail Road
shooting, and so many others, that high capacity assault weapons can
make those who wield them temporarily invincible to law enforcement,
because it is so difficult to get close to the shooter.
It is often only when a gunman stops to reload that bystanders or the
police can move in to stop the shooting. And if the gun's magazine
holds hundreds of bullets, that could take a long time, and result in a
lot of deaths.
This is vitally important, because grievance killings by disgruntled
members of society have taken an increasing number of lives in recent
years. And when those grievance killers wield high capacity weapons,
the toll on lives is exponentially increased.
The grievance killings have been across the Nation, in every forum:
In a San Ysidro, CA, McDonald's in 1984, when a gunman with an Uzi
killed 21 and wounded 15 others. In Stockton, CA, in 1989, when drifter
Patrick Purdy walked into a schoolyard with an AK-47 and killed 5,
wounding 30 others. In Long Island, NY, in 1993, when a gunman killed 6
and wounded 19 others on a commuter train--he was only brought down
when he finally stopped to reload. In Pearl, MS, in 1997 when 2
students killed. In Paducah, KY, in 1998 when 3 students were killed.
In Jonesboro, AR, in 1998 when 5 were killed, and 10 more wounded. In
Springfield, OR, in 1998 when 2 were killed, and 22 wounded. In
Littleton, CO, when 12 teens and one teacher were killed in Columbine
High School. In Atlanta, GA in 1999 when a troubled day trader killed
his wife, 2 children and several people trading stocks. At a Granada
Hills, CA, Jewish Community Center when a gunman wounded three and
killed a Filipino-American postal worker--many of us remember that one
touching photo of small children being quickly led across the street to
escape the gunfire. No child should have to go through that. At a Fort
Worth, TX, Baptist church where seven were killed and seven more
wounded at a teens church event, all by a man with two guns and 9 high
capacity clips, with a capacity of 15 rounds each.
Recognizing the earliest of these shootings as a problem that needed
to be dealt with, Congress finally took notice in 1993. In the
aftermath of the 101 California shooting, we in Congress did something
that no one had succeeded in doing before--we banned the manufacture
and importation of military-style assault weapons.
We were told it could not be done--but we did it. I was even told by
colleagues on my own side of the aisle that I was wasting my time--that
the gun lobby was just too strong. I hear many of the same arguments
today. But we succeeded in 1994, and we will succeed this year. We
succeeded, and we will succeed, because the American people will accept
no less of us.
The goal of the 1994 legislation was to drive down the supply of
these weapons and to make them more difficult to obtain, and to
eventually get them off our streets. And in the years following the
enactment of the ban, crimes using assault weapons were indeed reduced
dramatically--in fact, the percentage of crimes using banned assault
weapons fell by more than 65 percent between 1995 and 2002.
The ATF has found that the proportion of banned assault weapons used
in crime has fallen from 3.57 percent in 1995 to just 1.22 percent by
2002. Now these are not big percentages--most crimes are not committed
by assault weapons.
But it is important to note that crimes committed with assault
weapons often result in many more deaths than crimes committed with
other guns. A simple robbery with a handgun is far less likely to
result in multiple deaths than a drive-by shooting with an Uzi, or a
grievance killing in a school using an AK-47 with a large capacity
ammunition magazine.
And contrary to the near-hysterical rhetoric coming from the NRA at
the time, no innocent gun owner lost an assault weapon. No gun was
confiscated as a result of the ban. The sky did not fall. And life went
on--but it went on with fewer grievance killers, juveniles, and drive-
by shooters having access to the most dangerous of firearms.
Despite these results, House Majority Leader Tom Delay said last year
that House Republicans will let the Assault Weapons ban die when it
sunsets after ten years.
To those of us who have been in Congress for some time, this comes as
little surprise--after all, the House actually voted to repeal the
original assault weapons ban soon after it was signed into law.
But the good news is that the President of the United States does
support reauthorizing the ban.
In April of last year, White House spokesman Scott McClellan said of
the assault weapons ban, ``The president supports the current law, and
he supports reauthorization of the current law.''
That is what we are doing with this legislation--reauthorizing the
current law. Period.
I know the President agrees with me when I say that I don't believe
that banned guns like the AK-47, the TEC-9, or the Street Sweeper
should once again be manufactured or imported into the United States.
These are military guns, with no purpose but the killing of other human
beings. They have pistol grips and other features designed solely to
allow the weapons to be more easily concealed, and more easily fired
from the hip in close quarters combat--or, tragically, in places like
the schoolyard in Stockton, where five children died, the McDonalds in
San Ysidro, the law firm at 101 California Street in San Francisco,
Columbine High School, or so many other places where maniacs with their
military guns were able to shoot large numbers of people in short
periods of time.
That is why I believe that Congress should reauthorize the 1994 law,
which expires next September 13. And that is undoubtedly why the
President also supports our efforts.
I know there will be some who will say that the current law doesn't
go far enough--and frankly, I agree. I would prefer to expand the ban
to California law, so that we prohibit the copycat assault weapons that
manufacturers so cravenly designed following the ban.
Senator Lautenberg has introduced legislation to do this, and I co-
sponsored that bill. Ideally, we would pass legislation that fully
prevents craven manufacturers from circumventing the ban.
But in an environment where the NRA has such a stranglehold on gun
legislation, we will need all the help we can get just to keep the
current ban.
The current ban has been effective in limiting the supply of these
most dangerous guns. Even the copycat guns are less dangerous, because
they are harder to conceal, harder to fire from the hip.
And no matter whether the ban has been entirely effective or not,
what is the argument for letting these banned guns back on the streets?
Who is clamoring for newly manufactured AK-47s?
Who is clamoring for new TEC-9s?
These are guns that are never used for hunting. They are not used for
self defense, and if they are it is more likely that they will kill
innocents than intruders.
These guns--and everyone knows it--have but one purpose, and that
purpose is to kill other human beings. Why would we want to open the
floodgates again and let them back on our streets? There is simply no
good reason.
This debate should not be about whether the assault weapons ban is
perfect. This debate should be about whether these guns need to come
back--and the American people know that they do not.
With the President, law enforcement, and the American people behind
us, we
[[Page S1525]]
can succeed. We can beat the NRA's narrow, special interest agenda and
keep these guns off the streets.
I urge my colleagues to read the dozens of editorials in support of
the ban, to listen to their constituents, to ask us questions, and to
make the only decision that makes sense--to support this bill.
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. 2109
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 ``Assault Weapons Ban
Reauthorization Act of 2004''.
SEC. 2. 10-YEAR EXTENSION OF ASSAULT WEAPONS BAN.
Section 110105 of the Public Safety and Recreational
Firearms Use Protection Act (18 U.S.C. 921 note) is amended
to read as follows:
``SEC. 110105. SUNSET PROVISION.
``This subtitle and the amendments made by this subtitle
are repealed September 13, 2014.''.
Mr. WARNER. Mr. President, I rise today in support of reauthorizing
the Assault Weapons Ban.
Signed into law in 1994, the Assault Weapons Ban placed a 10-year
prohibition on the domestic manufacture of semi-automatic assault
weapons and high capacity ammunition clips. The 10-year ban ends on
September 13, 2004. Consequently, unless Congress and the President act
prior to September 13, 2004, weapons like Uzis and AK-47s will once
again be produced in America, and more and more often, these weapons
will fall into the hands of criminals who lurk in our neighborhoods.
For a number of years now, President Bush has indicated that he
supports reauthorizing the assault weapons ban. To date, though, no
legislation has been introduced in the Senate to accomplish the
President's goal. While measures have been introduced to make the ban
permanent or to even expand the ban further, no legislation has been
introduced to simply reauthorize the Assault Weapons Ban for another
ten years.
I am pleased today to introduce, with Senator Feinstein, legislation
that models exactly what the President has indicated he would sign into
law: a straight 10-year reauthorization of the Assault Weapons Ban.
Not only does President Bush support this legislation--law
enforcement does as well. The men and women of law enforcement know
that this legislation makes communities safer. In a letter dated
February 18, 2004, the Grand Lodge of the Fraternal Order of Police
writes, ``It is the position of the Grand Lodge that we will support
the reauthorization of current law, but we will not support any
expansion of the ban.'' This endorsement comes in addition to the
endorsement of just about every other major law enforcement
organization, and in addition to the endorsements of chiefs of police
all across Virginia.
Now, admittedly, I have not always been a supporter of the Assault
Weapons Ban. When the ban legislation came before the United States
Senate for a vote in 1993, I opposed it. At the time, I believed
Senator Feinstein's legislation would do nothing to help reduce crime
in this country, and I believed it would be a back door way to take
firearms out of the hands of law abiding gun-owners and hunters.
Ten years have since passed from the day of that vote. Over the
course of those ten years, I have watched the bill be signed into law,
and I have watched its implementation. I have studied the law and its
affect on crime, and I have watched carefully to see how it affects law
abiding gun-owners.
Based on the ten years of history of the Assault Weapons Ban, my
thoughts on the ban have evolved.
Ten years of experience provides us with key facts. The Assault
Weapons Ban has helped to dramatically reduce the number of crimes
using assault weapons. It has made America's streets safer, and it has
protected the rights of law abiding gun-owners better than many of us
predicted. In fact, the law explicitly protects 670 hunting and
recreational rifles.
Moreover, we all know that the world has dramatically changed since
that Senate vote in 1993. September 11, 2001, has forever changed our
country and has taught us many lessons.
No longer is America protected by the great oceans. The war on terror
is not only being fought abroad, but now here at home. September 11
showed us that terrorism lurks in the shadows of our own backyard.
Given the world today, now is not the time to make it easier for
terrorists to acquire deadly rapid fire assault weapons and use them in
our neighborhoods.
Now, over my 25 years plus in the United States Senate, I have always
tried to stand up for what is right, regardless of politics. I believe
that is why the good people of the Commonwealth of Virginia have given
me their trust and elected me to represent them in the United States
Senate for five terms.
I know that reauthorizing the Assault Weapons Ban is the right thing
to do.
I am pleased to join Senator Feinstein in introducing this
legislation, and it is my hope that the Senate will act expeditiously
and send this legislation to President Bush to sign into law.
______
By Mr. GRASSLEY (for himself and Mr. Baucus):
S. 2110. A bill to amend the Internal Revenue Code of 1986 to extend
the Highway Trust Fund provisions through March 31, 2004, and to add
the volumetric ethanol excise tax credit (VEETC), and for other
purposes; to the Committee on Finance
Mr. GRASSLEY. 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:
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 ``Surface Transportation
Extension Act of 2004''.
SEC. 2. EXTENSION OF AUTHORIZATION FOR USE OF TRUST FUNDS FOR
OBLIGATIONS UNDER TEA-21.
(a) Highway Trust Fund.--
(1) In general.--Paragraph (1) of section 9503(c) of the
Internal Revenue Code of 1986 is amended--
(A) in the matter before subparagraph (A), by striking
``March 1, 2004'' and inserting ``April 1, 2004'',
(B) by striking ``or'' at the end of subparagraph (E),
(C) by striking the period at the end of subparagraph (F)
and inserting ``, or'',
(D) by inserting after subparagraph (F), the following new
subparagraph:
``(G) authorized to be paid out of the Highway Trust Fund
under the Surface Transportation Extension Act of 2004.'',
and
(E) in the matter after subparagraph (G), as added by this
paragraph, by striking ``Surface Transportation Extension Act
of 2003'' and inserting ``Surface Transportation Extension
Act of 2004''.
(2) Mass transit account.--Paragraph (3) of section 9503(e)
of such Code is amended--
(A) in the matter before subparagraph (A), by striking
``March 1, 2004'' and inserting ``April 1, 2004'',
(B) in subparagraph (C), by striking ``or'' at the end of
such subparagraph,
(C) in subparagraph (D), by inserting ``or'' at the end of
such subparagraph,
(D) by inserting after subparagraph (D) the following new
subparagraph:
``(E) the Surface Transportation Extension Act of 2004,'',
and
(E) in the matter after subparagraph (E), as added by this
paragraph, by striking ``Surface Transportation Extension Act
of 2003'' and inserting ``Surface Transportation Extension
Act of 2004''.
(3) Exception to limitation on transfers.--Subparagraph (B)
of section 9503(b)(5) of such Code is amended by striking
``March 1, 2004'' and inserting ``April 1, 2004''.
(b) Aquatic Resources Trust Fund.--
(1) Sport fish restoration account.--Paragraph (2) of
section 9504(b) of the Internal Revenue Code of 1986 is
amended by striking ``Surface Transportation Extension Act of
2003'' each place it appears and inserting ``Surface
Transportation Extension Act of 2004''.
(2) Boat safety account.--Subsection (c) of section 9504 of
such Code is amended--
(A) by striking ``March 1, 2004'' and inserting ``April 1,
2004'', and
(B) by striking ``Surface Transportation Extension Act of
2003'' and inserting ``Surface Transportation Extension Act
of 2004''.
(3) Exception to limitation on transfers.--Paragraph (2) of
section 9504(d) of such Code is amended by striking ``March
1, 2004'' and inserting ``April 1, 2004''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
(d) Temporary Rule Regarding Adjustments.--During the
period beginning on the date of the enactment of the Surface
Transportation Extension Act of 2003 and ending on March 31,
2004, for purposes of making any estimate under section
9503(d) of the Internal
[[Page S1526]]
Revenue Code of 1986 of receipts of the Highway Trust Fund,
the Secretary of the Treasury shall treat--
(1) each expiring provision of paragraphs (1) through (4)
of section 9503(b) of such Code which is related to
appropriations or transfers to such Fund to have been
extended through the end of the 24-month period referred to
in section 9503(d)(1)(B) of such Code, and
(2) with respect to each tax imposed under the sections
referred to in section 9503(b)(1) of such Code, the rate of
such tax during the 24-month period referred to in section
9503(d)(1)(B) of such Code to be the same as the rate of such
tax as in effect on the date of the enactment of the Surface
Transportation Extension Act of 2003.
SEC. 3. ALCOHOL AND BIODIESEL EXCISE TAX CREDIT AND EXTENSION
OF ALCOHOL FUELS INCOME TAX CREDIT.
(a) In General.--Subchapter B of chapter 65 of the Internal
Revenue Code of 1986 (relating to rules of special
application) is amended by inserting after section 6425 the
following new section:
``SEC. 6426. CREDIT FOR ALCOHOL FUEL AND BIODIESEL MIXTURES.
``(a) Allowance of Credits.--There shall be allowed as a
credit against the tax imposed by section 4081 an amount
equal to the sum of--
``(1) the alcohol fuel mixture credit, plus
``(2) the biodiesel mixture credit.
``(b) Alcohol Fuel Mixture Credit.--
``(1) In general.--For purposes of this section, the
alcohol fuel mixture credit is the product of the applicable
amount and the number of gallons of alcohol used by the
taxpayer in producing any alcohol fuel mixture for sale or
use in a trade or business of the taxpayer.
``(2) Applicable amount.--For purposes of this subsection--
``(A) In general.--Except as provided in subparagraph (B),
the applicable amount is 52 cents (51 cents in the case of
any sale or use after 2004).
``(B) Mixtures not containing ethanol.--In the case of an
alcohol fuel mixture in which none of the alcohol consists of
ethanol, the applicable amount is 60 cents.
``(3) Alcohol fuel mixture.--For purposes of this
subsection, the term `alcohol fuel mixture' means a mixture
of alcohol and a taxable fuel which--
``(A) is sold by the taxpayer producing such mixture to any
person for use as a fuel,
``(B) is used as a fuel by the taxpayer producing such
mixture, or
``(C) is removed from the refinery by a person producing
such mixture.
``(4) Other definitions.--For purposes of this subsection--
``(A) Alcohol.--The term `alcohol' includes methanol and
ethanol but does not include--
``(i) alcohol produced from petroleum, natural gas, or coal
(including peat), or
``(ii) alcohol with a proof of less than 190 (determined
without regard to any added denaturants).
Such term also includes an alcohol gallon equivalent of ethyl
tertiary butyl ether or other ethers produced from such
alcohol.
``(B) Taxable fuel.--The term `taxable fuel' has the
meaning given such term by section 4083(a)(1).
``(5) Termination.--This subsection shall not apply to any
sale, use, or removal for any period after December 31, 2010.
``(c) Biodiesel Mixture Credit.--
``(1) In general.--For purposes of this section, the
biodiesel mixture credit is the product of the applicable
amount and the number of gallons of biodiesel used by the
taxpayer in producing any biodiesel mixture for sale or use
in a trade or business of the taxpayer.
``(2) Applicable amount.--For purposes of this subsection--
``(A) In general.--Except as provided in subparagraph (B),
the applicable amount is 50 cents.
``(B) Amount for agri-biodiesel.--In the case of any
biodiesel which is agri-biodiesel, the applicable amount is
$1.00.
``(3) Biodiesel mixture.--For purposes of this section, the
term `biodiesel mixture' means a mixture of biodiesel and
diesel fuel (as defined in section 4083(a)(3)), determined
without regard to any use of kerosene, which--
``(A) is sold by the taxpayer producing such mixture to any
person for use as a fuel,
``(B) is used as a fuel by the taxpayer producing such
mixture, or
``(C) is removed from the refinery by a person producing
such mixture.
``(4) Certification for biodiesel.--No credit shall be
allowed under this section unless the taxpayer obtains a
certification (in such form and manner as prescribed by the
Secretary) from the producer of the biodiesel which
identifies the product produced and the percentage of
biodiesel and agri-biodiesel in the product.
``(5) Other definitions.--Any term used in this subsection
which is also used in section 40A shall have the meaning
given such term by section 40A.
``(6) Termination.--This subsection shall not apply to any
sale, use, or removal for any period after December 31, 2006.
``(d) Mixture Not Used as a Fuel, etc.--
``(1) Imposition of tax.--If--
``(A) any credit was determined under this section with
respect to alcohol or biodiesel used in the production of any
alcohol fuel mixture or biodiesel mixture, respectively, and
``(B) any person--
``(i) separates the alcohol or biodiesel from the mixture,
or
``(ii) without separation, uses the mixture other than as a
fuel,
then there is hereby imposed on such person a tax equal to
the product of the applicable amount and the number of
gallons of such alcohol or biodiesel.
``(2) Applicable laws.--All provisions of law, including
penalties, shall, insofar as applicable and not inconsistent
with this section, apply in respect of any tax imposed under
paragraph (1) as if such tax were imposed by section 4081 and
not by this section.
``(e) Coordination With Exemption From Excise Tax.--Rules
similar to the rules under section 40(c) shall apply for
purposes of this section.''.
(b) Registration Requirement.--Section 4101(a) of the
Internal Revenue Code of 1986 (relating to registration) is
amended by inserting ``and every person producing or
importing biodiesel (as defined in section 40A(d)(1)) or
alcohol (as defined in section 6426(b)(4)(A))'' after
``4081''.
(c) Additional Amendments.--
(1) Section 40(c) of the Internal Revenue Code of 1986 is
amended by striking ``section 4081(c), or section 4091(c)''
and inserting ``section 4091(c), section 6426, section
6427(e), or section 6427(f)''.
(2) Section 40(d)(4)(B) of such Code is amended by striking
``or 4081(c)''.
(3) Section 40(e)(1) of such Code is amended--
(A) by striking ``2007'' in subparagraph (A) and inserting
``2010'', and
(B) by striking ``2008'' in subparagraph (B) and inserting
``2011''.
(4) Section 40(h) of such Code is amended--
(A) by striking ``2007'' in paragraph (1) and inserting
``2010'', and
(B) by striking ``, 2006, or 2007'' in the table contained
in paragraph (2) and inserting ``through 2010''.
(5) Section 4041(b)(2)(B) of such Code is amended by
striking ``a substance other than petroleum or natural gas''
and inserting ``coal (including peat)''.
(6) Paragraph (1) of section 4041(k) of such Code is
amended to read as follows:
``(1) In general.--Under regulations prescribed by the
Secretary, in the case of the sale or use of any liquid at
least 10 percent of which consists of alcohol (as defined in
section 6426(b)(4)(A)), the rate of the tax imposed by
subsection (c)(1) shall be the comparable rate under section
4091(c).''.
(7) Section 4081 of such Code is amended by striking
subsection (c).
(8) Paragraph (2) of section 4083(a) of such Code is
amended to read as follows:
``(2) Gasoline.--The term `gasoline'--
``(A) includes any gasoline blend, other than qualified
methanol or ethanol fuel (as defined in section
4041(b)(2)(B)), partially exempt methanol or ethanol fuel (as
defined in section 4041(m)(2)), or a denatured alcohol, and
``(B) includes, to the extent prescribed in regulations--
``(i) any gasoline blend stock, and
``(ii) any product commonly used as an additive in gasoline
(other than alcohol).
For purposes of subparagraph (B)(i), the term `gasoline blend
stock' means any petroleum product component of gasoline.''.
(9) Section 6427 of such Code is amended by inserting after
subsection (d) the following new subsection:
``(e) Alcohol or Biodiesel Used To Produce Alcohol Fuel and
Biodiesel Mixtures or Used as Fuels.--Except as provided in
subsection (k)--
``(1) Used to produce a mixture.--If any person produces a
mixture described in section 6426 in such person's trade or
business, the Secretary shall pay (without interest) to such
person an amount equal to the alcohol fuel mixture credit or
the biodiesel mixture credit with respect to such mixture.
``(2) Used as fuel.--If alcohol (as defined in section
40(d)(1)) or biodiesel (as defined in section 40A(d)(1)) or
agri-biodiesel (as defined in section 40A(d)(2)) which is not
in a mixture described in section 6426--
``(A) is used by any person as a fuel in a trade or
business, or
``(B) is sold by any person at retail to another person and
placed in the fuel tank of such person's vehicle,
the Secretary shall pay (without interest) to such person an
amount equal to the alcohol credit (as determined under
section 40(b)(2)) or the biodiesel credit (as determined
under section 40A(b)(2)) with respect to such fuel.
``(3) Coordination with other repayment provisions.--No
amount shall be payable under paragraph (1) with respect to
any mixture with respect to which an amount is allowed as a
credit under section 6426.
``(4) Termination.--This subsection shall not apply with
respect to--
``(A) any alcohol fuel mixture (as defined in section
6426(b)(3)) or alcohol (as so defined) sold or used after
December 31, 2010, and
``(B) any biodiesel mixture (as defined in section
6426(c)(3)) or biodiesel (as so defined) or agri-biodiesel
(as so defined) sold or used after December 31, 2006.''.
(10) Subsection (f) of section 6427 of such Code is amended
to read as follows:
``(f) Aviation Fuel Used to Produce Certain Alcohol
Fuels.--
``(1) In general.--Except as provided in subsection (k), if
any aviation fuel on which tax was imposed by section 4091 at
the regular tax rate is used by any person in producing a
mixture described in section 4091(c)(1)(A) which is sold or
used in such person's trade or business, the Secretary
[[Page S1527]]
shall pay (without interest) to such person an amount equal
to the excess of the regular tax rate over the incentive tax
rate with respect to such fuel.
``(2) Definitions.--For purposes of paragraph (1)--
``(A) Regular tax rate.--The term `regular tax rate' means
the aggregate rate of tax imposed by section 4091 determined
without regard to subsection (c) thereof.
``(B) Incentive tax rate.--The term `incentive tax rate'
means the aggregate rate of tax imposed by section 4091 with
respect to fuel described in subsection (c)(2) thereof.
``(3) Coordination with other repayment provisions.--No
amount shall be payable under paragraph (1) with respect to
any aviation fuel with respect to which an amount is payable
under subsection (d) or (l).
``(4) Termination.--This subsection shall not apply with
respect to any mixture sold or used after September 30,
2007.''.
(11) Paragraphs (1) and (2) of section 6427(i) of such Code
are amended by inserting ``(f),'' after ``(d),''.
(12) Section 6427(i)(3) of such Code is amended--
(A) by striking ``subsection (f)'' both places it appears
in subparagraph (A) and inserting ``subsection (e)(1)'',
(B) by striking ``gasoline, diesel fuel, or kerosene used
to produce a qualified alcohol mixture (as defined in section
4081(c)(3))'' in subparagraph (A) and inserting ``a mixture
described in section 6426'',
(C) by adding at the end of subparagraph (A) the following
new flush sentence:
``In the case of an electronic claim, this subparagraph shall
be applied without regard to clause (i).'',
(D) by striking ``subsection (f)(1)'' in subparagraph (B)
and inserting ``subsection (e)(1)'',
(E) by striking ``20 days of the date of the filing of such
claim'' in subparagraph (B) and inserting ``45 days of the
date of the filing of such claim (20 days in the case of an
electronic claim)'', and
(F) by striking ``alcohol mixture'' in the heading and
inserting ``alcohol fuel and biodiesel mixture''.
(13) Section 6427(o) of such Code is amended--
(A) by striking paragraph (1) and inserting the following
new paragraph:
``(1) any tax is imposed by section 4081, and'',
(B) by striking ``such gasohol'' in paragraph (2) and
inserting ``the alcohol fuel mixture (as defined in section
6426(b)(3))'',
(C) by striking ``gasohol'' both places it appears in the
matter following paragraph (2) and inserting ``alcohol fuel
mixture'', and
(D) by striking ``Gasohol'' in the heading and inserting
``Alcohol Fuel Mixture''.
(14) Section 9503(b)(1) of such Code is amended by adding
at the end the following new flush sentence:
``For purposes of this paragraph, taxes received under
sections 4041 and 4081 shall be determined without reduction
for credits under section 6426.''.
(15) Section 9503(b)(4) of such Code is amended--
(A) by adding ``or'' at the end of subparagraph (C),
(B) by striking the comma at the end of subparagraph
(D)(iii) and inserting a period, and
(C) by striking subparagraphs (E) and (F).
(16) Section 9503(c)(2)(A)(i)(III) of such Code is amended
by inserting ``(other than subsection (e) thereof)'' after
``section 6427''.
(17) Section 9503(e)(2) of such Code is amended by striking
subparagraph (B) and by redesignating subparagraphs (C), (D),
and (E) as subparagraphs (B), (C), and (D), respectively.
(18) The table of sections for subchapter B of chapter 65
of such Code is amended by inserting after the item relating
to section 6425 the following new item:
``Sec. 6426. Credit for alcohol fuel and biodiesel mixtures.''.
(19) Tariff schedule.--Headings 9901.00.50 and 9901.00.52
of the Harmonized Tariff Schedule of the United States (19
U.S.C. 3007) are each amended in the effective period column
by striking ``10/1/2007'' each place it appears and inserting
``1/1/2011''.
(d) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to fuel sold or used after September 30, 2004.
(2) Registration requirement.--The amendment made by
subsection (b) shall take effect on April 1, 2005.
(3) Extension of alcohol fuels credit.--The amendments made
by paragraphs (3), (4), and (19) of subsection (c) shall take
effect on the date of the enactment of this Act.
(4) Repeal of general fund retention of certain alcohol
fuels taxes.--The amendments made by subsection (c)(15) shall
apply to fuel sold or used after September 30, 2003.
(e) Format for Filing.--The Secretary of the Treasury shall
describe the electronic format for filing claims described in
section 6427(i)(3)(B) of the Internal Revenue Code of 1986
(as amended by subsection (c)(12)(C)) not later than
September 30, 2004.
SEC. 4. BIODIESEL INCOME TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
business related credits) is amended by inserting after
section 40 the following new section:
``SEC. 40A. BIODIESEL USED AS FUEL.
``(a) General Rule.--For purposes of section 38, the
biodiesel fuels credit determined under this section for the
taxable year is an amount equal to the sum of--
``(1) the biodiesel mixture credit, plus
``(2) the biodiesel credit.
``(b) Definition of Biodiesel Mixture Credit and Biodiesel
Credit.--For purposes of this section--
``(1) Biodiesel mixture credit.--
``(A) In general.--The biodiesel mixture credit of any
taxpayer for any taxable year is 50 cents for each gallon of
biodiesel used by the taxpayer in the production of a
qualified biodiesel mixture.
``(B) Qualified biodiesel mixture.--The term `qualified
biodiesel mixture' means a mixture of biodiesel and diesel
fuel (as defined in section 4083(a)(3)), determined without
regard to any use of kerosene, which--
``(i) is sold by the taxpayer producing such mixture to any
person for use as a fuel, or
``(ii) is used as a fuel by the taxpayer producing such
mixture.
``(C) Sale or use must be in trade or business, etc.--
Biodiesel used in the production of a qualified biodiesel
mixture shall be taken into account--
``(i) only if the sale or use described in subparagraph (B)
is in a trade or business of the taxpayer, and
``(ii) for the taxable year in which such sale or use
occurs.
``(D) Casual off-farm production not eligible.--No credit
shall be allowed under this section with respect to any
casual off-farm production of a qualified biodiesel mixture.
``(2) Biodiesel credit.--
``(A) In general.--The biodiesel credit of any taxpayer for
any taxable year is 50 cents for each gallon of biodiesel
which is not in a mixture with diesel fuel and which during
the taxable year--
``(i) is used by the taxpayer as a fuel in a trade or
business, or
``(ii) is sold by the taxpayer at retail to a person and
placed in the fuel tank of such person's vehicle.
``(B) User credit not to apply to biodiesel sold at
retail.--No credit shall be allowed under subparagraph (A)(i)
with respect to any biodiesel which was sold in a retail sale
described in subparagraph (A)(ii).
``(3) Credit for agri-biodiesel.--In the case of any
biodiesel which is agri-biodiesel, paragraphs (1)(A) and
(2)(A) shall be applied by substituting `$1.00' for `50
cents'.
``(4) Certification for biodiesel.--No credit shall be
allowed under this section unless the taxpayer obtains a
certification (in such form and manner as prescribed by the
Secretary) from the producer or importer of the biodiesel
which identifies the product produced and the percentage of
biodiesel and agri-biodiesel in the product.
``(c) Coordination With Credit Against Excise Tax.--The
amount of the credit determined under this section with
respect to any biodiesel shall be properly reduced to take
into account any benefit provided with respect to such
biodiesel solely by reason of the application of section 6426
or 6427(e).
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Biodiesel.--The term `biodiesel' means the monoalkyl
esters of long chain fatty acids derived from plant or animal
matter which meet--
``(A) the registration requirements for fuels and fuel
additives established by the Environmental Protection Agency
under section 211 of the Clean Air Act (42 U.S.C. 7545), and
``(B) the requirements of the American Society of Testing
and Materials D6751.
``(2) Agri-biodiesel.--The term `agri-biodiesel' means
biodiesel derived solely from virgin oils, including esters
derived from virgin vegetable oils from corn, soybeans,
sunflower seeds, cottonseeds, canola, crambe, rapeseeds,
safflowers, flaxseeds, rice bran, and mustard seeds, and from
animal fats.
``(3) Mixture or biodiesel not used as a fuel, etc.--
``(A) Mixtures.--If--
``(i) any credit was determined under this section with
respect to biodiesel used in the production of any qualified
biodiesel mixture, and
``(ii) any person--
``(I) separates the biodiesel from the mixture, or
``(II) without separation, uses the mixture other than as a
fuel,
then there is hereby imposed on such person a tax equal to
the product of the rate applicable under subsection (b)(1)(A)
and the number of gallons of such biodiesel in such mixture.
``(B) Biodiesel.--If--
``(i) any credit was determined under this section with
respect to the retail sale of any biodiesel, and
``(ii) any person mixes such biodiesel or uses such
biodiesel other than as a fuel,
then there is hereby imposed on such person a tax equal to
the product of the rate applicable under subsection (b)(2)(A)
and the number of gallons of such biodiesel.
``(C) Applicable laws.--All provisions of law, including
penalties, shall, insofar as applicable and not inconsistent
with this section, apply in respect of any tax imposed under
subparagraph (A) or (B) as if such tax were imposed by
section 4081 and not by this chapter.
``(4) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(e) Termination.--This section shall not apply to any
sale or use after December 31, 2006.''.
[[Page S1528]]
(b) Credit Treated as Part of General Business Credit.--
Section 38(b) of the Internal Revenue Code of 1986 (relating
to current year business credit) is amended by striking
``plus'' at the end of paragraph (14), by striking the period
at the end of paragraph (15) and inserting ``, plus'', and by
adding at the end the following new paragraph:
``(16) the biodiesel fuels credit determined under section
40A(a).''.
(c) Conforming Amendments.--
(1) Section 39(d) of the Internal Revenue Code of 1986 is
amended by adding at the end the following new paragraph:
``(11) No carryback of biodiesel fuels credit before
effective date.--No portion of the unused business credit for
any taxable year which is attributable to the biodiesel fuels
credit determined under section 40A may be carried back to a
taxable year ending on or before September 30, 2004.''.
(2)(A) Section 87 of such Code is amended to read as
follows:
``SEC. 87. ALCOHOL AND BIODIESEL FUELS CREDITS.
``Gross income includes--
``(1) the amount of the alcohol fuels credit determined
with respect to the taxpayer for the taxable year under
section 40(a), and
``(2) the biodiesel fuels credit determined with respect to
the taxpayer for the taxable year under section 40A(a).''.
(B) The item relating to section 87 in the table of
sections for part II of subchapter B of chapter 1 of such
Code is amended by striking ``fuel credit'' and inserting
``and biodiesel fuels credits''.
(3) Section 196(c) of such Code is amended by striking
``and'' at the end of paragraph (9), by striking the period
at the end of paragraph (10) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(11) the biodiesel fuels credit determined under section
40A(a).''.
(4) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of such Code is amended by adding
after the item relating to section 40 the following new item:
``Sec. 40A. Biodiesel used as fuel.''.
(d) Effective Date.--The amendments made by this section
shall apply to fuel produced, and sold or used, after
September 30, 2004, in taxable years ending after such date.
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