[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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