[Congressional Record Volume 153, Number 54 (Wednesday, March 28, 2007)]
[Senate]
[Pages S4050-S4061]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. KERRY (for himself, Mr. Hagel, Mr. Cardin, Mr. Pryor, and 
        Mr. Tester):
  S. 1005. A bill to amend the Small Business Act to improve programs 
for veterans, and for other purposes; to the Committee on Small 
business and entrepreneurship.
  Mr. KERRY. Mr. President, I rise today with my colleague Senator 
Hagel, the Senator from Nebraska, to introduce the Military Reservist 
and Veteran Small Business Reauthorization Act of 2007. There are 
currently 25 million veterans in America, including over one million 
who have left military service since September 11, 2001. As the 
conflicts in Iraq and Afghanistan continue, the number of veterans, 
including service disabled veterans, will increase and reservists will 
continue to carry more of the burden than ever before. As veterans and 
reservists reenter civilian life, the economic benefits and 
opportunities provided by the Federal Government will become even more 
critical, particularly in the field of entrepreneurship and business 
ownership. As the Chairman of the Senate Committee on Small Business 
and Entrepreneurship, I am serious about addressing the problems 
affecting veterans and reservists who wish or are already engaged in 
small business and this bill is another step forward in doing so.
  As veterans, Senator Hagel and I believe that the government has an 
obligation to help deployed reservists avoid economic hardship because 
of their service and to help veterans, particularly the service-
disabled, return to civilian life when they retire. There are more 
veterans returning each day because of the war on terror--800,000 
veterans were discharged between 2002 and 2005--and ensuring that these 
individuals have a secure financial future is not just a matter of 
fairness but of national security. The treatment of our troops affects 
the Nation's ability to recruit and retain the best and brightest. 
Veterans have told me that they feel that they are being forgotten and 
that the government is simply not living up to its past promises of 
helping veteran entrepreneurs succeed. This bill is one step in 
ensuring that the government is doing all it can to help those who have 
served and sacrificed on our behalf.
  The Military Reservist and Veteran Small Business Reauthorization Act 
of 2007 reauthorizes the veteran programs in the Small Business 
Administration. Specifically, this legislation increases the funding 
authorization for the Office of Veteran Business Development from $2 
million today to $2.5 million in three years. In light of the large 
numbers of veterans returning from Iraq and Afghanistan and increased 
responsibilities placed on this office by Executive Order 13360, it is 
high time that the Office of Veteran Business Development receive the 
funding levels that it needs.
  In addition, this bill permanently extends the SBA Advisory Committee 
on Veterans Business Affairs. The committee was created to serve as an 
independent source of advice and policy recommendations to the SBA, the 
Congress, and the President. The veteran small business owners who 
serve on this committee provide a unique perspective which is sorely 
needed at this challenging time. Unfortunately, continuing uncertainty 
about the Committee's future has, at times, distracted the committee 
from focusing on its core function. Therefore, I have called for its 
permanent extension. It is clear to me that more needs to be done to 
address the issues facing veterans and reservists, and the role this 
committee plays will continue to be important.
  Additionally, I have taken a number of steps to better serve the 
reservists who are serving their country abroad while their businesses 
are suffering at home. Over the past decade, the Department of Defense 
has increased its reliance on the National Guard and reserves. This has 
intensified since September 11 and increased deployments are expected 
to continue. The effect of this increase on reservists and small 
businesses continues to remain of concern. A 2003 GAO report indicated 
that 41 percent of reservists lost income when mobilized. This had a 
higher effect on self-employed reservists, 55 percent of whom lost 
income.
  In 1999, I created the Military Reservist Economic Injury Disaster 
Loan (MREIDL) program to provide loans to small businesses that incur 
economic injury as a result of an essential employee being called to 
active duty. However, since 2002, fewer than 300 of these loans have 
been approved by the SBA, despite record numbers of reservists being 
called to active duty. It is clear that changes need to be made, so 
that reservists are informed about the availability of the MREIDL 
program and that the program better meets their needs.
  At a hearing of the Committee on Small Business and Entrepreneurship 
on January 31st, the first hearing we held in this Congress, we heard 
suggestions for a number of changes which would improve the Military 
Reservist Economic Injury Disaster Loan program, and I have included 
those changes in this bill. They include increasing the application 
deadline for such a loan from 90 days to one year following the date of 
discharge; creating a pre-deployment loan approval process; and 
improved outreach and technical assistance.
  This bill also creates a non-collaterized loan program. Reservist 
families have already sacrificed enough when a family member goes away 
to serve their country and when their business is harmed as a result. 
This loan program would allow reservist dependent businesses to access 
the capital they need to stay afloat without having to sacrifice beyond 
the service of the key employees. In order to give reservists time to 
repay the loans, the non-collaterized loan created in this bill would 
not accumulate interest or require payments for one year or until after 
the deployment ends, whichever is longer.
  In addition, because loans aren't the answer for every business--
additional debt could permanently cripple some businesses--I have also 
included a grant program for reservists. This program would allow up to 
$25,000 in grants for small businesses that can show economic injury 
because of deployment and prove that they have a viable business plan 
for the next three years. A grant program would help small businesses 
that cannot afford to take on a military reservist economic injury 
disaster loan or that were denied such a loan, but still are viable 
businesses and need assistance.
  While addressing the funding needs of reservists is essential, I also 
want to make sure that reservists receive the technical and management 
assistance they need to succeed. For that reason, this bill also 
includes the establishment of the Reservists Enterprise Transition and 
Sustainability Task Force. This grant program would allow Small 
Business Development Centers, Women's Business Centers and veteran 
centers to compete for grants to create programs that help small 
businesses prepare for and cope with the mobilization of reservist-
employees and owners.
  Veterans possess great technical skills and valuable leadership 
experience, but they require financial resources to turn that potential 
into a viable enterprise. A recent report by the Small Business 
Administration stated that 22 percent of veterans plan to start or are 
starting a business when they leave the military. For service-disabled 
veterans, this number rises to 28 percent. So the legislation I 
introduce today will create a new program, administered by the Small 
Business

[[Page S4051]]

Administration, to provide very-low-interest loans, up to $100,000, to 
help veterans start new small businesses.
  Lastly, this bill calls for two reports from the Government 
Accountability Office. One report will look at the needs of service-
disabled veterans who are interested in becoming entrepreneurs. As a 
result of the war on terror and improved medicine, we are seeing more 
service-disabled veterans than we have seen in decades. For some 
service-disabled veterans, entrepreneurship is the best or only way of 
achieving economic independence. Therefore, it is essential that we 
understand and take steps to address the needs of the service-disabled 
veteran entrepreneur or small business owner.
  I am also calling for a study to investigate allegations that the 
changes the Department of Defense has made in regard to the use of 
reservists is harming the ability of reservists to find jobs and the 
ability of small business owners to continue hiring reservists. At the 
Committee's hearing on veteran small business issues, witnesses 
testified about reservists being turned down or not considered for jobs 
because they are reservists. I have heard reservists talk about being 
pressured to leave the reserves if they would like to continue to 
advance at work. I have also heard the concerns of small business 
owners who want to support servicemembers; however, they cannot do so 
if it means the survival of their business. Understanding more about 
this issue is important and essential to making sure that policymakers 
can continue to support citizen soldiers and the small businesses that 
employ them across the Nation.
  One of the issues I am not addressing in my legislation today is 
Federal procurement. I heard clearly the concerns from veterans that 
they are not being treated fairly when it comes to selling goods and 
services to the Federal Government, and I am committed to making 
changes. However, to make real changes, changes that can pass the 
Senate and the House and become law, these changes must be part of a 
bigger package. Legislation that addresses not just the concerns of 
service-disabled veteran small business owners, but the concerns of all 
small business owners who want their fair share of Federal contracts. I 
am committed to taking the difficult steps necessary to address these 
issues and will do so.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1005

       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 ``Military Reservist and 
     Veteran Small Business Reauthorization Act of 2007''.

     SEC. 2. DEFINITIONS.

       In this Act--
       (1) the term ``activated'' means receiving an order placing 
     a Reservist on active duty;
       (2) the term ``active duty'' has the meaning given that 
     term in section 101 of title 10, United States Code;
       (3) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively;
       (4) the term ``Reservist'' means a member of a reserve 
     component of the Armed Forces, as described in section 10101 
     of title 10, United States Code;
       (5) the term ``Service Corps of Retired Executives'' means 
     the Service Corps of Retired Executives authorized by section 
     8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(1));
       (6) the terms ``service-disabled veteran'' and ``small 
     business concern'' have the meanings given those terms in 
     section 3 of the Small Business Act (15 U.S.C. 632);
       (7) the term ``small business development center'' means a 
     small business development center described in section 21 of 
     the Small Business Act (15 U.S.C. 648); and
       (8) the term ``women's business center'' means a women's 
     business center described in section 29 of the Small Business 
     Act (15 U.S.C. 656).

                   TITLE I--MILITARY RESERVIST LOANS

     SEC. 101. GRANT ASSISTANCE FOR MILITARY RESERVISTS' SMALL 
                   BUSINESSES.

       (a) Authorization of Grants.--Section 7(b)(3)(B) of the 
     Small Business Act (15 U.S.C. 636(b)(3)(B)) is amended by 
     inserting ``or grants'' after ``or a deferred basis)''.
       (b) Grant Specifications.--Section 7(b)(3) of the Small 
     Business Act (15 U.S.C. 636(b)(3)) is amended by inserting 
     after subparagraph (F) the following:
       ``(G) Grants made under subparagraph (B)--
       ``(i) may be awarded in addition to any loan made under 
     subparagraph (B);
       ``(ii) shall not exceed $25,000; and
       ``(iii) shall be made only to a small business concern--

       ``(I) that provides a business plan demonstrating viability 
     for not less than 3 years after the date of the application 
     for that grant;
       ``(II) with 10 or fewer employees; and
       ``(III) that has not received a grant under subparagraph 
     (B) during the 2-year period ending on the date of the 
     application for that grant.''.

       (c) Authorization of Appropriations.--Section 20(e)(2) of 
     the Small Business Act (15 U.S.C. 631 note) is amended by 
     inserting after subparagraph (B) the following:
       ``(C) Grant assistance for military reservists' small 
     businesses.--There are authorized to be appropriated for 
     grants under section 7(b)(3)(B)--
       ``(i) $5,000,000 for the first fiscal year beginning after 
     the date of enactment of the Military Reservist and Veteran 
     Small Business Reauthorization Act of 2007; and
       ``(ii) $5,000,000 for each of the 2 fiscal years following 
     the fiscal year described in clause (i).''.

     SEC. 102. NONCOLLATERALIZED LOANS.

       Section 7(b)(3) of the Small Business Act (15 U.S.C. 
     636(b)(3)) is amended by inserting after subparagraph (G), as 
     added by this Act, the following:
       ``(H)(i) Notwithstanding any other provision of law, the 
     Administrator may make a loan under this paragraph of not 
     more than $100,000 without collateral.
       ``(ii) The Administrator may defer payment of principal and 
     interest on a loan described in clause (i) during the longer 
     of--
       ``(I) the 1-year period beginning on the date of the 
     initial disbursement of the loan; and
       ``(II) the period during which the relevant essential 
     employee is on active duty.''.

     SEC. 103. APPLICATION PERIOD.

       Section 7(b)(3)(C) of the Small Business Act (15 U.S.C. 
     636(b)(3)(C)) is amended by striking ``90 days'' and 
     inserting ``1 year''.

     SEC. 104. PREAPPROVAL PROCESS.

       (a) Definition.--In this section, the term ``eligible 
     Reservist'' means a Reservist who--
       (1) has not been ordered to active duty;
       (2) expects to be ordered to active duty during a period of 
     military conflict (as that term is defined in section 7(n)(1) 
     of the Small Business Act (15 U.S.C. 636(n)(1)); and
       (3) can reasonably demonstrate that the small business 
     concern for which that Reservist is a key employee will 
     suffer economic injury in the absence of that Reservist.
       (b) Establishment.--Not later than 6 months after the date 
     of enactment of this Act, the Administrator shall establish a 
     preapproval process, under which--
       (1) the Administrator may approve a loan or grant to a 
     small business concern under section 7(b)(3) of the Small 
     Business Act (15 U.S.C. 636(b)(3)), as amended by this Act, 
     before an eligible Reservist employed by that small business 
     concern is activated; and
       (2) the Administrator shall distribute funds for any loan 
     or grant approved under paragraph (1) if that eligible 
     Reservist is activated.

     SEC. 105. OUTREACH AND TECHNICAL ASSISTANCE PROGRAM.

       (a) In General.--Not later than 6 months after the date of 
     enactment of this Act, the Administrator, in consultation 
     with the Secretary of Veterans Affairs and the Secretary of 
     Defense, shall develop a comprehensive outreach and technical 
     assistance program (in this section referred to as the 
     ``program'') to--
       (1) market the loans and grants available under section 
     7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)), as 
     amended by this Act, to Reservists, and family members of 
     Reservists, that are on active duty and that are not on 
     active duty; and
       (2) provide technical assistance to a small business 
     concern applying for a loan or grant under that section.
       (b) Components.--The program shall--
       (1) incorporate appropriate websites maintained by the 
     Administration, the Department of Veterans Affairs, and the 
     Department of Defense; and
       (2) require that information on the program is made 
     available to small business concerns directly through--
       (A) the district offices and resource partners of the 
     Administration, including small business development centers, 
     women's business centers, and the Service Corps of Retired 
     Executives; and
       (B) other Federal agencies, including the Department of 
     Veterans Affairs and the Department of Defense.
       (c) Report.--
       (1) In general.--Not later than 6 months after the date of 
     enactment of this Act, and every 6 months thereafter until 
     the date that is 30 months after such date of enactment, the 
     Administrator shall submit to Congress a report on the status 
     of the program.
       (2) Contents.--Each report submitted under paragraph (1) 
     shall include--
       (A) for the 6-month period before the date of that report--
       (i) the number of loans and grants approved under section 
     7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)), as 
     amended by this Act;
       (ii) the number of loans and grants disbursed under that 
     section; and
       (iii) the total amount disbursed under that section; and
       (B) recommendations, if any, to make the program more 
     effective in serving small business concerns that employ 
     Reservists.

[[Page S4052]]

 TITLE II--NATIONAL RESERVIST ENTERPRISE TRANSITION AND SUSTAINABILITY

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``National Reservist 
     Enterprise Transition and Sustainability Act of 2007''.

     SEC. 202. PURPOSE.

       The purpose of this title is to establish a program to--
       (1) provide managerial, financial, planning, development, 
     technical, and regulatory assistance to small business 
     concerns owned and operated by Reservists;
       (2) provide managerial, financial, planning, development, 
     technical, and regulatory assistance to the temporary heads 
     of small business concerns owned and operated by Reservists;
       (3) create a partnership between the Small Business 
     Administration, the Department of Defense, and the Department 
     of Veterans Affairs to assist small business concerns owned 
     and operated by Reservists;
       (4) utilize the service delivery network of small business 
     development centers, women's business centers, Veterans 
     Business Outreach Centers, and centers operated by the 
     National Veterans Business Development Corporation to expand 
     the access of small business concerns owned and operated by 
     Reservists to programs providing business management, 
     development, financial, procurement, technical, regulatory, 
     and marketing assistance;
       (5) utilize the service delivery network of small business 
     development centers, women's business centers, Veterans 
     Business Outreach Centers, and centers operated by the 
     National Veterans Business Development Corporation to quickly 
     respond to an activation of Reservists that own and operate 
     small business concerns; and
       (6) utilize the service delivery network of small business 
     development centers, women's business centers, Veterans 
     Business Outreach Centers, and centers operated by the 
     National Veterans Business Development Corporation to assist 
     Reservists that own and operate small business concerns in 
     preparing for future military activations.

     SEC. 203. NATIONAL GUARD AND RESERVE BUSINESS ASSISTANCE.

       (a) In General.--Section 21(a)(1) of the Small Business Act 
     (15 U.S.C. 648(a)(1)) is amended by inserting ``any small 
     business development center, women's business center, 
     Veterans Business Outreach Center, or center operated by the 
     National Veterans Business Development Corporation providing 
     enterprise transition and sustainability assistance to 
     Reservists under section 37,'' after ``any women's business 
     center operating pursuant to section 29,''.
       (b) Program.--The Small Business Act (15 U.S.C. 631 et 
     seq.) is amended--
       (1) by redesignating section 37 (15 U.S.C. 631 note) as 
     section 38; and
       (2) by inserting after section 36 the following:

     ``SEC. 37. RESERVIST ENTERPRISE TRANSITION AND 
                   SUSTAINABILITY.

       ``(a) In General.--The Administrator shall establish a 
     program to provide business planning assistance to small 
     business concerns owned and operated by Reservists.
       ``(b) Definitions.--In this section--
       ``(1) the terms `activated' and `activation' mean having 
     received an order placing a Reservists on active duty, as 
     defined by section 101(1) of title 10, United States Code;
       ``(2) the term `Administrator' means the Administrator of 
     the Small Business Administration, acting through the 
     Associate Administrator for Small Business Development 
     Centers;
       ``(3) the term `Association' means the association 
     established under section 21(a)(3)(A);
       ``(4) the term `eligible applicant' means--
       ``(A) a small business development center that is 
     accredited under section 21(k);
       ``(B) a women's business center;
       ``(C) a Veterans Business Outreach Center that receives 
     funds from the Office of Veterans Business Development; or
       ``(D) an information and assistance center operated by the 
     National Veterans Business Development Corporation under 
     section 33;
       ``(5) the term `enterprise transition and sustainability 
     assistance' means assistance provided by an eligible 
     applicant to a small business concern owned and operated by a 
     Reservist, who has been activated or is likely to be 
     activated in the next 12 months, to develop and implement a 
     business strategy for the period while the owner is on active 
     duty and 6 months after the date of the return of the owner;
       ``(6) the term `Reservists' means any person who is--
       ``(A) a member of a reserve component of the Armed Forces, 
     as defined by section 10101 of title 10, United States Code; 
     and
       ``(B) on active status, as defined by section 101(d)(4) of 
     title 10, United States Code;
       ``(7) the term `small business development center' means a 
     small business development center as described in section 21 
     of the Small Business Act (15 U.S.C. 648);
       ``(8) the term `State' means each of the several States of 
     the United States, the District of Columbia, the Commonwealth 
     of Puerto Rico, the Virgin Islands, American Samoa, and Guam; 
     and
       ``(9) the term `women's business center' means a women's 
     business center described in section 29 of the Small Business 
     Act (15 U.S.C. 656).
       ``(c) Authority.--The Administrator may award grants, in 
     accordance with the regulations developed under subsection 
     (d), to eligible applicants to assist small business concerns 
     owned and operated by Reservists by--
       ``(1) providing management, development, financing, 
     procurement, technical, regulatory, and marketing assistance;
       ``(2) providing access to information and resources, 
     including Federal and State business assistance programs;
       ``(3) distributing contact information provided by the 
     Department of Defense regarding activated Reservists to 
     corresponding State directors;
       ``(4) offering free, one-on-one, in-depth counseling 
     regarding management, development, financing, procurement, 
     regulations, and marketing;
       ``(5) assisting in developing a long-term plan for possible 
     future activation; and
       ``(6) providing enterprise transition and sustainability 
     assistance.
       ``(d) Rulemaking.--
       ``(1) In general.--The Administrator, in consultation with 
     the Association and after notice and an opportunity for 
     comment, shall promulgate regulations to carry out this 
     section.
       ``(2) Deadline.--The Administrator shall promulgate final 
     regulations not later than 180 days of the date of enactment 
     of the Military Reservist and Veteran Small Business 
     Reauthorization Act of 2007.
       ``(3) Contents.--The regulations developed by the 
     Administrator under this subsection shall establish--
       ``(A) procedures for identifying, in consultation with the 
     Secretary of Defense, States that have had a recent 
     activation of Reservists;
       ``(B) priorities for the types of assistance to be provided 
     under the program authorized by this section;
       ``(C) standards relating to educational, technical, and 
     support services to be provided by a grantee;
       ``(D) standards relating to any national service delivery 
     and support function to be provided by a grantee;
       ``(E) standards relating to any work plan that the 
     Administrator may require a grantee to develop; and
       ``(F) standards relating to the educational, technical, and 
     professional competency of any expert or other assistance 
     provider to whom a small business concern may be referred for 
     assistance by a grantee.
       ``(e) Application.--
       ``(1) In general.--Each eligible applicant desiring a grant 
     under this section shall submit an application to the 
     Administrator at such time, in such manner, and accompanied 
     by such information as the Administrator may reasonably 
     require.
       ``(2) Contents.--Each application submitted under paragraph 
     (1) shall describe--
       ``(A) the activities for which the applicant seeks 
     assistance under this section; and
       ``(B) how the applicant plans to allocate funds within its 
     network.
       ``(3) Matching not required.--Subparagraphs (A) and (B) of 
     section 21(a)(4), requiring matching funds, shall not apply 
     to grants awarded under this section.
       ``(f) Award of Grants.--
       ``(1) Deadline.--The Administrator shall award grants not 
     later than 60 days after the promulgation of final rules and 
     regulations under subsection (d).
       ``(2) Amount.--Each eligible applicant awarded a grant 
     under this section shall receive a grant in an amount--
       ``(A) not less than $150,000 per fiscal year; and
       ``(B) not greater than $500,000 per fiscal year.
       ``(g) Report.--
       ``(1) In general.--The Comptroller General of the United 
     States shall--
       ``(A) initiate an evaluation of the program not later than 
     30 months after the disbursement of the first grant under 
     this section; and
       ``(B) submit a report not later than 6 months after the 
     initiation of the evaluation under paragraph (1) to--
       ``(i) the Administrator;
       ``(ii) the Committee on Small Business and Entrepreneurship 
     of the Senate; and
       ``(iii) the Committee on Small Business of the House of 
     Representatives.
       ``(2) Contents.--The report under paragraph (1) shall--
       ``(A) address the results of the evaluation conducted under 
     paragraph (1); and
       ``(B) recommend changes to law, if any, that it believes 
     would be necessary or advisable to achieve the goals of this 
     section.
       ``(h) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section--
       ``(A) $5,000,000 for the first fiscal year beginning after 
     the date of enactment of the Military Reservist and Veteran 
     Small Business Reauthorization Act of 2007; and
       ``(B) $5,000,000 for each of the 3 fiscal years following 
     the fiscal year described in subparagraph (A).
       ``(2) Limitation on use of other funds.--The Administrator 
     may carry out the program authorized by this section only 
     with amounts appropriated in advance specifically to carry 
     out this section.''.

                 TITLE III--VETERAN ENTREPRENEUR LOANS

     SEC. 301. AUTHORIZATION.

       The first sentence of section 7(a) of the Small Business 
     Act (15 U.S.C. 636) is amended by inserting ``new veteran 
     entrepreneurs under paragraph (32) and'' and after ``loans to 
     any qualified small business concern, including''.

[[Page S4053]]

     SEC. 302. SPECIFICATIONS.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) 
     is amended by adding after paragraph (31) the following:
       ``(32) Veteran entrepreneur loans.--Each loan to a new 
     veteran entrepreneur under this subsection shall--
       ``(A) be made directly to the new veteran entrepreneur;
       ``(B) not exceed $100,000; and
       ``(C) be made at the same interest rate as loans made under 
     the second proviso of the unnumbered paragraph of subsection 
     (b).''.

     SEC. 303. DEFINITIONS.

       Section 3(q) of the Small Business Act (15 U.S.C. 632(q)) 
     is amended by adding after paragraph (4) the following:
       ``(5) New veteran entrepreneur.--The term `new veteran 
     entrepreneur' means a person who--
       ``(A) is a veteran;
       ``(B) is establishing a new small business concern or 
     established a new small business concern during the 6-month 
     period ending on the date of the request for a loan; and
       ``(C) does not own or control any other business.''.

                       TITLE IV--OTHER PROVISIONS

     SEC. 401. INCREASED FUNDING FOR THE OFFICE OF VETERANS 
                   BUSINESS DEVELOPMENT.

       There are authorized to be appropriated to the Office of 
     Veterans Business Development of the Administration, to 
     remain available until expended--
       (1) $2,100,000 for fiscal year 2008;
       (2) $2,300,000 for fiscal year 2009; and
       (3) $2,500,000 for fiscal year 2010.

     SEC. 402. PERMANENT EXTENSION OF SBA ADVISORY COMMITTEE ON 
                   VETERANS BUSINESS AFFAIRS.

       (a) Assumption of Duties.--Section 33 of the Small Business 
     Act (15 U.S.C. 657c) is amended--
       (1) by striking subsection (h); and
       (2) by redesignating subsections (i) through (k) as 
     subsections (h) through (j), respectively.
       (b) Permanent Extension of Authority.--Section 203 of the 
     Veterans Entrepreneurship and Small Business Development Act 
     of 1999 (15 U.S.C. 657b note) is amended by striking 
     subsection (h).

     SEC. 403. RESERVISTS STUDY.

       Not later than 180 days after the date of enactment of this 
     Act, the Comptroller General of the United States shall 
     submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report regarding 
     whether there has been a reduction in the hiring of 
     Reservists by business concerns because of--
       (1) any increase in the use of Reservists after September 
     11, 2001; or
       (2) any change in any policy of the Department of Defense 
     relating to Reservists after September 11, 2001.

     SEC. 404. SERVICE-DISABLED VETERANS.

       Not later than 180 days after the date of enactment of this 
     Act, the Comptroller General of the United States shall 
     submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report 
     describing--
       (1) the types of assistance needed by service-disabled 
     veterans who wish to become entrepreneurs; and
       (2) any resources that would assist such service-disabled 
     veterans.
                                 ______
                                 
      By Mr. KERRY:
  S. 1006. A bill to amend the Internal Revenue Code of 1986 to deny 
qualified dividend income treatment to certain foreign dividends; to 
the Committee on Finance.
  Mr. KERRY. Mr. President, today I am introducing legislation that 
will clarify which dividends are eligible for a lower rate of 15 
percent for upper-income taxpayers or a 5 percent rate for lower-income 
taxpayers. I am concerned that some foreign companies have a tax 
advantage over their American competitors.
  Since dividend rates were lowered in 2003, some banks have promoted 
hybrid debt instruments from foreign corporations that may qualify for 
the lower rate. These hybrid arrangements are treated as debt in the 
host foreign country and the entity takes a deduction. In the United 
States, these instruments are classified as equity and thus treated as 
dividends eligible for the lower rate.
  This was not the intention of Congress, and this abuse needs to stop. 
There should not be preferences in our tax code which make it easier 
for foreign corporations to raise capital at the expense of American 
companies. I believe that changes need to be made to our tax system to 
ensure that U.S companies can compete fairly in a global market place.
  The legislation that I am introducing today is the same legislation 
introduced by Ways and Means Subcommittee on Select Revenue Chairman 
Neal. This legislation amends Section 1 of the Internal Revenue Code to 
disallow the preferential dividends rate for payments from foreign 
entities not subject to tax in the foreign country, for payments that 
are deductible in the foreign country, or payments with respect to an 
instrument not treated as stock in the foreign country. In addition, 
the bill does not allow dividends from an entity not subject to or 
exempt from corporate tax in a foreign country to be eligible for the 
lower rate. If the entity is a passive foreign investment company 
(PFIC), the dividend would not be eligible for the lower rate even if 
the entity is also classified as a controlled foreign corporation.
  This legislation builds upon a bill that Senator Baucus and I 
introduced last Congress, S. 1363, which prevents dividends received 
from corporations in a tax haven from receiving the lower rate. This 
legislation was introduced in the 109th Congress out of concern that 
the definition of qualifying foreign corporations is overly broad and 
includes companies in tax haven countries with little or no tax system.
  The legislation that I am introducing today includes the provisions 
of S. 1363 which require that only dividends from foreign companies 
which are located in countries with a comprehensive income tax and are 
traded on a U.S. stock exchange may qualify for the preferential rate. 
In total, this legislation carries out the intent of the 2003 rate 
deduction on dividends.
  The initial proposal to address dividends taxation was designed to 
eliminate the double taxation of corporate earnings. Eventually, this 
proposal was modified to lower the tax rate on dividends. I believe 
that it was never the original intent of Congress to provide the lower 
rates to dividends which are not subject to double taxation.
  I urge my colleagues to support these common sense changes. I ask for 
unanimous consent that the text of the legislation be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1006

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. CERTAIN FOREIGN DIVIDENDS NOT TREATED AS QUALIFIED 
                   DIVIDEND INCOME.

       (a) In General.--Clause (ii) of section 1(h)(11)(B) of the 
     Internal Revenue Code of 1986 (relating to certain dividends 
     excluded) is amended by striking ``and'' at the end of 
     subclause (II), by striking the period at the end of 
     subclause (III) and inserting ``, and'', and by adding at the 
     end the following new subclause:

       ``(IV) any nonqualified dividend from a foreign 
     corporation.''.

       (b) Nonqualified Dividend From a Foreign Corporation.--
     Paragraph (11) of section 1(h) of such Code (relating to 
     dividends taxed as net capital gain) is amended by 
     redesignating subparagraph (D) as subparagraph (E) and by 
     inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) Nonqualified dividend from a foreign corporation.--
     For purposes of subparagraph (B)(ii)(IV), the term 
     `nonqualified dividend from a foreign corporation' means any 
     dividend from a foreign corporation if--
       ``(i) any amount is allowable as a deduction to any person 
     at any time under the taxation law of any foreign country (or 
     any amount is otherwise creditable against the tax imposed 
     under such law) with respect to such dividend,
       ``(ii) for the taxable year of the corporation in which the 
     distribution is made, or the preceding taxable year--

       ``(I) such corporation is not treated as a corporation for 
     purposes of the taxation laws of any foreign country to which 
     it would be subject to tax if it were treated as a 
     corporation,
       ``(II) such corporation is exempt from tax under the 
     taxation laws of any foreign country to which (but for such 
     exemption) it would otherwise be subject to tax (except for 
     exemption on the basis of nonresidence, nondomicile, or 
     similar criteria), or
       ``(III) such corporation is a passive foreign investment 
     company (as defined in section 1297 (without regard to 
     subsection (e) thereof)), or

       ``(iii) such dividend is paid with respect to an instrument 
     which is treated as other than stock (or a similar equity 
     interest) under the taxation laws of any foreign country with 
     respect to which the payment is taken into account.''.
       (c) Conforming Amendment.--Subparagraph (C) of section 
     1(h)(11) of such Code is amended by striking clause (iii) and 
     by redesignating clause (iv) as clause (iii).
       (d) Effective Date.--The amendments made by this section 
     shall apply to dividends received after the date of the 
     enactment of this Act.

     SEC. 2. MODIFICATION TO THE DEFINITION OF QUALIFIED FOREIGN 
                   CORPORATION.

       (a) In General.--Clause (ii) of section 1(h)(11)(C) of the 
     Internal Revenue Code of

[[Page S4054]]

     1986 (relating to dividends on stock readily tradable on 
     United States securities market) is amended by striking ``by 
     such corporation if the stock'' and all that follows and 
     inserting ``by such corporation if--

       ``(I) the stock with respect to which such dividend is paid 
     is readily tradable on an established securities market in 
     the United States, and
       ``(II) such corporation is created or organized under the 
     laws of a foreign country which has a comprehensive income 
     tax system which the Secretary determines is satisfactory for 
     the purposes of this paragraph.''.

       (b) Effective Date.--The amendment made by this section 
     shall apply to dividends received after the date of the 
     enactment of this Act.
                                 ______
                                 
      By Mr. LUGAR:
  S. 1007. A bill to direct the Secretary of State to work with the 
Government of Brazil and other foreign governments to develop 
partnerships that will strengthen diplomatic relations and energy 
security by accelerating the development of biofuels production, 
research, and infrastructure to alleviate poverty, create jobs, and 
increase income, while improving energy security and protecting the 
environment; to the Committee on Foreign Relations.
  Mr. LUGAR. Mr. President, I rise to introduce the ``United States 
Brazil Energy Cooperation Pact.'' This bill would direct the Secretary 
of State to work with the Government of Brazil and other foreign 
governments to develop partnerships that will strengthen diplomatic 
relations and energy security, including through accelerated 
development of biofuels production, research and infrastructure. This 
will help to alleviate poverty, create jobs, and increase income, while 
improving energy security and protecting the environment..
  Earlier this month President Bush and Brazilian President Luiz Inacio 
Lula da Silva agreed in Sao Paulo to cooperate to promote ethanol in 
the Americas as an alternative to oil. The agreement aims to increase 
cooperation on biofuels technology and to develop international 
biofuels standards. President Bush is following up by hosting President 
da Silva at Camp David this Saturday, March 31.
  President Bush intended his trip to rebuild bridges to Latin America. 
Many Latin Americans are critical, even hostile, over what they see as 
the administration's neglect of the region. Strained relationships 
often are repaired in small steps. The ethanol accord promises mutual 
benefits for the United States and Brazil, Latin America, and 
potentially, the rest of the world. If executed in a spirit of 
partnership and funded generously, it could have a significant regional 
and global impact on the development of ethanol markets, climate change 
and the ability of many poor countries to endure oil price shocks.
  Although the agreement is overall a win-win-win deal for Brazil, the 
United States and the region, it has been criticized. Some opponents 
are simply trying to thwart better U.S.-Brazilian cooperation. But 
others have raised concerns about the dislocations and unintended 
consequences of promoting biofuel crops.
  Only by addressing such worries and quelling the doubts can the 
Brazil-U.S. pact fully meet its promise to be a launching pad for what 
I envision as a transformational Americas-wide energy program that will 
radically improve the hemisphere's strategic and economic posture. 
Today I introduce the United States-Brazil Energy Cooperation Pact to 
capitalize on the opportunity it presents to reestablish strong U.S. 
relations with our neighbors while also building a more secure energy 
future.
  The bill calls on Brazil and the United States to help fund 
feasibility studies to assess each Latin American country's biofuel 
needs and biomass production potential, with special attention to food 
security and the environment. By encouraging cellulosic ethanol that 
does not rely on grains, it should help assuage fears, shared by 
American and Latin American livestock producers alike, that excessive 
reliance on corn for ethanol will further drive up animal feed costs 
and thus prices of beef, pork and chicken. For Mexico, where 
skyrocketing tortilla prices have been blamed on the diversion of corn 
for ethanol, the bill calls for special efforts to find non-corn 
sources of biofuels.
  The legislation envisions a special hemispheric carbon trading system 
to encourage preservation of tropical rain forests in the face of 
growing demand for energy crops, and it calls on the regional 
development banks, as well as U.S. foreign assistance, to support 
biofuel infrastructure projects.
  The bill contains special provisions to help our closest and poorest 
neighbors in the Caribbean and Central America revive their moribund 
sugar cane industries so they can produce their own ethanol. Currently 
nearly all the ethanol they sell is processed product from Brazil.
  And while biofuels are a key element of energy security, better 
utilization of conventional resources also plays a role. The bill seeks 
ways to help optimize Mexican oil output, which is lagging to the 
detriment of both countries, and encourages South America to exploit 
fully its natural gas supplies with new pipelines and liquefied natural 
gas facilities.
  Giving the United States easy access to foreign ethanol supplies, 
even as we increase domestic production, is an essential component to 
meet President Bush's target of 35 billion gallons of renewable fuels 
use by 2017, which cannot be met by U.S. corn ethanol alone. U.S. corn 
ethanol production will peak around 14 billion gallons in 2010, experts 
estimate. Reducing dependence on oil imported from unstable and often 
hostile regions is a paramount foreign policy imperative.
  The U.S. doesn't tax imported oil, but currently levies a 54-cents-
per-gallon tariff on imported ethanol to protect U.S. producers from 
cheaper Brazilian ethanol. It is clear that this barrier to trade in 
Americas-grown fuel is inconsistent with our political goals in the 
region, and with our long-term energy security.
  Altering the import tax would affect a number of industries and 
interests. Therefore, the bill calls for a comprehensive study on the 
current political and economic impacts of the tariff and the potential 
costs and benefits of repealing it or modifying it.
  In this way, I believe that passage of this bill would encourage 
Administration officials to rethink old policies in order to improve 
energy cooperation, and encourage other Governments in the region to do 
likewise. With this legislation, Congress can demonstrate to citizens 
of the Americas that the U.S. is ready to embark on an equal 
partnership for progress.
  In conclusion, I look forward to working with each of my colleagues 
to ensure the energy security of our country and the region.
                                 ______
                                 
      By Mr. SANDERS:
  S. 1008. A bill to amend the Atomic Energy Act of 1954 to improve and 
strengthen the safety inspection process of nuclear facilities; to the 
Committee on Environment and Public Works.
  Mr. SANDERS. Mr. President, today I am introducing legislation that 
would provide greater assurance to the citizens of our Nation that 
their elected officials will do everything within their power to 
provide the highest levels of safety at nuclear facilities. The bill 
does this by allowing certain State officials to request that the 
United States Nuclear Regulatory Commission (NRC) conduct an 
independent safety assessment at key times in the life of a reactor. I 
ask that the full text of the bill be printed in the Record.
  Too often we have found that the NRC has been uninterested in the 
legitimate concerns of national and State legislators who have 
requested greater safety oversight, especially at problem-plagued 
nuclear plants. In some instances, safety violations of the highest 
level have been allowed to continue, undetected, for years before 
discovery. Citizens deserve to have some greater assurance that when a 
plant has reached what was the intended end of its useful life and has 
applied for a license extension--another few decades of operating 
life--or when a plant seeks an ``uprate''--an increase in power output 
from what it was permitted previously--or when there have been 
significant safety problems, that a facility will get a thorough review 
to protect the public safety. Without this bill, the public will 
continue to worry.
  Under the legislation I am introducing, State officials would be able 
to request that a special Independent Safety Assessment Team be 
assembled to thoroughly review the safety of plants that meet the 
criteria listed in

[[Page S4055]]

this bill. The team would be composed of individuals selected by the 
NRC and the requesting Governor or State public utilities commission to 
insure greater balance and independence on the Team. The Team's report 
would make recommendations on safety features that should be improved 
before additional licensing requests and other operational matters are 
favorably acted upon.
  My legislation offers a simple and fair solution to a technical 
problem faced by citizens across the Nation and I encourage my 
colleagues to join me to ensure greater safety at our nuclear 
facilities.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1008

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. INDEPENDENT SAFETY ASSESSMENTS.

       Section 103 of the Atomic Energy Act of 1954 (42 U.S.C. 
     2133) is amended by inserting after subsection d. the 
     following:
       ``e. Independent Safety Assessments.--
       ``(1) Development of procedure.--Not later than 90 days 
     after the date of enactment of this subsection, the Nuclear 
     Regulatory Commission (referred to in this subsection as the 
     `Commission') shall develop an independent safety assessment 
     procedure.
       ``(2) Conduct of assessment.--
       ``(A) Definition of eligible requestor.--In this paragraph, 
     the term `eligible requestor' means--
       ``(i) a Governor of a State in which a facility of a 
     licensee is located;
       ``(ii) a public utility commission of a State in which a 
     facility of a licensee is located; and
       ``(iii) a Governor of a State that--

       ``(I) because of dangers to the public relating to 
     potential ingestion of water or foods that have been 
     contaminated with radiation from a commercial nuclear power 
     plant, is located in an emergency planning zone, as defined 
     in section 350.2 of title 44, Code of Federal Regulations (or 
     a successor regulation); and
       ``(II) is not the same State in which the facility of the 
     licensee is located.

       ``(B) Request of assessment.--
       ``(i) In general.--At the request of an eligible requestor, 
     the Commission shall conduct an independent safety assessment 
     in accordance with the independent safety assessment 
     procedure developed under paragraph (1) if the licensee has--

       ``(I) applied to the Commission for--

       ``(aa) an extension of the operating license of the 
     licensee; or
       ``(bb) approval of an extended power uprate for the 
     licensee; or

       ``(II) during any 5-year period, received, under the 
     reactor oversight process of the Commission, 2 or more 
     greater-than-green inspection findings.

       ``(ii) Conduct of assessment.--The Commission shall conduct 
     an assessment requested by an eligible requestor under clause 
     (i) not later than 18 months after the date on which the 
     eligible requestor requested the assessment.
       ``(3) Inspection of facility.--
       ``(A) In general.--In conducting an independent safety 
     assessment under paragraph (2)(B), the Commission shall 
     inspect the design, construction, maintenance, and 
     operational safety performance of the facility of the 
     licensee.
       ``(B) Scope of inspection.--An inspection of a facility of 
     a licensee conducted under subparagraph (A) shall--
       ``(i) be at least equal in scope, depth, and breadth to the 
     independent safety assessment conducted in 1996 by the 
     Commission of the Maine Yankee Nuclear Power Plant, located 
     in Wiscasset, Maine; and
       ``(ii) include an examination of the systems of the 
     facility of the licensee, including--

       ``(I) the reactor containment systems;
       ``(II) the reactor emergency core cooling systems;
       ``(III) the control room and containment ventilation 
     systems;
       ``(IV) the electrical system (including testing of relevant 
     transients);
       ``(V) the condensate and feedwater systems;
       ``(VI) the spent fuel storage systems;
       ``(VII) any other system requested by the Governor of the 
     State, or a public utility commission of the State, in which 
     the facility of the licensee is located; and
       ``(VIII) any other system identified by a majority of the 
     members of an inspection team described in paragraph (4).

       ``(4) Inspection teams.--
       ``(A) In general.--An independent safety assessment 
     conducted under paragraph (2)(B) shall be conducted by an 
     inspection team.
       ``(B) Composition.--An inspection team shall be composed of 
     not less than 25 members, of whom--
       ``(i) not less than 16 members shall be--

       ``(I) employees of the Commission; and
       ``(II) unaffiliated with the regional office of the 
     Commission in the region in which the facility of the 
     licensee is located;

       ``(ii) not less than 6 members shall be independent 
     contractors who have not worked for, or at--

       ``(I) the facility of the licensee; or
       ``(II) any other nuclear power plant owned or operated by 
     the owner or operator of the facility of the licensee; and

       ``(iii) not less than 3 members shall be appointed by the 
     eligible requestor.
       ``(5) Report.--
       ``(A) Preparation of preliminary report.--Not later than 90 
     days after the date on which an inspection team completes an 
     independent safety assessment of a facility of a licensee 
     under paragraph (2)(B), the inspection team shall prepare a 
     preliminary report describing the findings and 
     recommendations of the inspection team.
       ``(B) Availability of preliminary report.--For a period of 
     90 days beginning on the date on which the inspection team 
     completes a preliminary report prepared under subparagraph 
     (A), the inspection team shall make available for review and 
     comment by the public a copy of the preliminary report.
       ``(C) Consideration of comments.--In preparing a final 
     version of a preliminary report developed under subparagraph 
     (A), the inspection team shall take into consideration any 
     comments received from the public that are appropriate, as 
     determined by the inspection team.
       ``(D) Submission of final version.--Not later than 90 days 
     after the date on which the period of review and public 
     comment ends under subparagraph (B), the inspection team 
     shall submit to the Commission a final version of the 
     preliminary report developed under subparagraph (A).
       ``(6) Affect on licensing actions.--A final decision by the 
     Commission of whether to extend an operating license, approve 
     an extended power uprate, or continue to operate under a 
     license at a facility of a licensee assessed under paragraph 
     (2)(B) shall not be made until the later of the date on 
     which--
       ``(A) the Commission has completed the independent safety 
     assessment of the facility of the licensee; and
       ``(B) the licensee has fully accepted and implemented each 
     finding and recommendation of the report approved by the 
     Commission relating to the independent safety assessment of 
     the facility of the licensee submitted under paragraph 
     (5)(D).
       ``(7) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $10,000,000 
     for each of fiscal years 2008 through 2012, to remain 
     available until expended.''.
                                 ______
                                 
      By Mr. MARTINEZ (for himself and Mr. Cornyn):
  S. 1009. A bill to amend part A of title I of the Elementary and 
Secondary Education Act of 1965 to improve supplemental educational 
services, and for other purposes; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. MARTINEZ. Mr. President, I am here to discuss a topic of great 
meaning to American families: educating our children. We all want what 
is best for our children, and to provide them with the tools they need 
to succeed in tomorrow's workforce.
  Today, I want to concentrate on one particular program that can play 
a key role in ensuring our children are meeting their educational 
goals.
  I rise, along with Senator John Cornyn of Texas, to once again 
introduce the Raising Achievement Through Improving Supplemental 
Education Act, or the RAISE Act for short.
  The RAISE Act seeks to improve the Supplemental Educational Services 
program--a tutoring program under No Child Left Behind--to help it 
become well-known, widely available, and easily accessible to eligible 
students. It seeks to broaden eligibility requirements and 
prioritization of the program to target all low-performing students 
regardless of income status. The Supplemental Educational Services 
program--also known as SES--was implemented as part of No Child Left 
Behind and designed to be an innovative tool to help meet the academic 
needs of low-income students attending continuously failing schools.
  Under the program, low-income parents can elect to have free private 
after-school tutoring for their children. To pay the providers of this 
tutoring service, school districts would need only to use a required 20 
percent allocation of their Federal funds.
  By providing direct tutoring after school, the SES program can help 
those students who are behind catch up with their peers. This, in turn, 
also improves the overall performance of the school. But, due to the 
lack of strong implementation, there have been numerous shortfalls 
nationwide. This is a troubling development that the RAISE Act seeks to 
correct.
  For example, in the 2005-2006 school year, just 20 percent of the 
eligible 2\1/2\ million students participated in SES programs. That 
translates into hundreds of thousands of eligible children not being 
provided with tutoring help. The funding has already been set aside--
there are children across the

[[Page S4056]]

Nation who could benefit from this after-school tutoring program--but 
they have to know about it to benefit from it.
  Parents and State agencies are reporting that poor communication, 
delayed notification, and lack of transportation have become barriers 
to their children participating in the program. Also, there were some 
conflicts with other, better established after-school programs.
  In Florida, we have already implemented SES improvements. As a 
result, Florida is seeing stronger guidelines, better State oversight, 
and consequently, higher SES program participation rate.
  Many of the provisions of the RAISE Act are modeled after the 
successes already occurring in my home State. And it is notable that 
States such as Maryland and Indiana--where similar guidelines have been 
in place longer--they are seeing a remarkable 64 to 68 percent 
participation rate in their SES programs.
  In our school districts where SES programs are thriving, good 
communication with both parents and providers has been emphasized, as 
well as access to on-site tutoring at school facilities.
  Another important component of the RAISE Act is eligibility for SES. 
Currently, SES targets low-income, low-performing students. I think we 
should be targeting all low-performing students, regardless of income 
status. By overlooking many middle-class families who do not have the 
money to put their children into private tutoring or after-school 
programs, many of those children are falling through the cracks.
  How can we ensure that no child is being left behind unless we 
specifically focus programs on those students who need the most help?
  The RAISE Act was developed in consultation with school 
administrators, State education officials, and non-profit and research 
groups. This is a nationwide imperative and I urge my colleagues to 
support this innovative set of reforms.
  The RAISE Act aims to help every child in the schoolyard have an 
equal opportunity for scholastic growth and achievement--this also 
happens to be the fundamental purpose of No Child Left Behind.
  Together, all of us in this Chamber can make the RAISE Act a reality, 
and improve the academic lives of countless American schoolchildren in 
need.
                                 ______
                                 
      By Mr. BIDEN (for himself, Mr. Kennedy, and Mr. Enzi):
  S. 1011. A bill to change the name of the National Institute on Drug 
Abuse to the National Institute on Diseases of Addiction and to change 
the name of the National Institute on Alcohol Abuse and Alcoholism to 
the National Institute on Alcohol Disorders and Health; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. BIDEN. Mr. President, for nearly 35 years I've been working on 
this floor to address the all too real public health and safety issues 
associated with drug and alcohol addiction. Stiff prosecution of 
trafficking and possession of illegal drugs is important; but just as 
critical is an intense focus on prevention and treatment. To this end, 
if we are to be successful in this fight, we--you, me, all of us--must 
understand that addiction is a neurobiological disease, not a lifestyle 
choice. The frank and constructive approach to help those struggling 
with the disease of addiction, and to protect society from the crime 
and violence that sometimes accompany drug trafficking and use, is 
through treatment. We must continually work hard to resist the 
counterproductive social stigma that too often brands addicts and 
thereby encourages them to slip into seclusion rather than seek 
treatment. As such, we must begin to change the nature of public 
discourse about addiction by more appropriately naming our own research 
institutes to reflect this reality: Addition is a preventable and 
treatable disease.
  Today, I rise to introduce legislation recognizing this reality that 
addiction is a disease and not a chronic, stigmatizing life-sentence. 
The Recognizing Addiction as a Disease Act of 2007 changes the names of 
two institutes at the National Institutes of Health: the National 
Institute on Drug Abuse will become the National Institute on Diseases 
of Addiction, and the National Institute on Alcohol Abuse and 
Alcoholism will become the National Institute on Alcohol Disorders and 
Health.
  These name changes accomplish two important objectives. First, they 
remove the pejorative term ``abuse'' from the institutes' names and 
properly help to distance that notion from the disease of addiction. 
Second, the new names more clearly link the concepts of addiction and 
disease, a connection that scientific study clearly supports. 
Identifying addiction as a neurobiological disease will diminish the 
social stigma, discrimination, and the personal shame that is often a 
barrier to seeking treatment, and it will further a common 
understanding of diseases of addiction.
  The 2005 National Survey on Drug Use and Health reported that 
addiction affects 23.2 million Americans in our country, of whom only 
about 10 percent are receiving the treatment they need. Many are 
deterred from seeking such treatment because of the social stigma 
associated with admitting to a drug or alcohol dependency. This bill is 
a small but important step towards remedying this problem, fighting 
drug use, and successfully treating addiction.
  Addiction is now understood to be a disease because scientific 
research has shown that alcohol and other drugs can change the brain's 
structure and function. Advances in brain imaging science now make it 
possible to see inside an addict's brain and pinpoint the parts of the 
brain affected by drugs or alcohol. These insights will enable the 
development of new approaches to prevention and treatment. In fact, we 
now have data indicating that excessive alcohol use and alcohol 
dependence (alcoholism) are not separate diagnostic categories, but 
exist along a single continuum of alcohol-disorders associated with 
increased frequency of a harmful drinking pattern.
  Today's introduction of this legislation is timely. Two weeks ago HBO 
premiered an important new documentary movie, Addiction, which presents 
an encouraging look at addiction as a treatable disease and the film 
chronicles the major scientific advances that have helped us better 
understand and treat addiction. The Institutes collaborated with HBO to 
create this eye-opening documentary that seeks to help Americans 
understand addiction. HBO's Addiction Project will acquaint viewers 
with available evidence-based medical and behavioral treatments. This 
is especially important for disorders like addiction that for many 
years were treated outside the medical mainstream. From emergency rooms 
to living rooms to research laboratories, the documentary follows the 
trail of an illness that affects one in four families in the United 
States.
  The facts surrounding addiction are self-evident. With nearly 1 in 10 
Americans over the age of 12 suffering from some form of substance 
dependency, addiction takes an emotional, psychological, and social 
toll on the country. The economic costs of substance dependency and 
addiction alone are estimated to exceed a half trillion dollars 
annually in the United States due to health care expenditures, lost 
productivity, and crime.
  I am proud to say that my friends and very distinguished colleagues 
Senators Kennedy and Enzi, chairman and ranking member of the Health, 
Education, Labor, and Pensions Committee, respectively, are cosponsors 
of this important bill.
  Today, the Recognizing Addiction as a Disease Act of 2007 takes a 
small but important stride towards helping those struggling with 
diseases of addiction.
                                 ______
                                 
      By Mr. COCHRAN (for himself and Mr. Rockefeller):
  S. 1015. A bill to reauthorize the National Writing Project; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. COCHRAN. Mr. President, today I am joined by my distinguished 
colleague and friend from West Virginia, Mr. Rockefeller, in 
introducing the National Writing Project Act of 2007. The National 
Writing Project remains the only Federal program to improve the 
teaching of writing in America's classrooms.
  Writing is complex, challenging and it is a basic component of 
literacy. And, literacy is essential for success in life. A Belden 
Russonello & Stewart poll announced yesterday that overwhelmingly, 
Americans want writing taught throughout school curriculum.

[[Page S4057]]

Research shows that students taught by Writing Project demonstrate more 
improvement and higher overall writing performance than their peers.
  Writing is not confined to thesis papers, college essays, and book 
reports. Writing skills for employment in the 21st Century require not 
only the grammar, construction and analytical thought of traditional 
writing, but the skills needed to communicate effectively using new 
technology. Effective instruction in writing requires teachers with 
high ability, who continuously develop their teaching skills.
  A United States Department of Education program since 1991 and nearly 
200 nation-wide, university based sites, the National Writing Project 
annually serves over 140,000 educators through more than 7,000 
programs. It is based on a model of teachers teaching teachers: 
experienced teachers who share and develop the latest and most 
successful instruction techniques who in turn lead similar local 
workshops and training sessions for their colleagues.
  National Writing Project teachers will be here this week to tell 
their personal stories and provide other information about what the 
College Board's National Commission on Writing calls ``arguably the 
most successful teacher network in the United States.'' I hope all 
Senators will have the opportunity to visit with teachers from their 
State and I invite all Senators to join Mr. Rockefeller and me in 
sponsoring this bill.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1015

       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 ``National Writing Project Act 
     of 2007''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) The United States is facing a continuing crisis in 
     writing in schools and in the workplace.
       (2) The writing problem has been magnified by the rapidly 
     changing student population, the growing number of English 
     language learners, the increasing numbers of adolescents who 
     are low-achieving writers, the shortage of adequately trained 
     teachers, and the specialized knowledge required of teachers 
     to teach students with special needs who are now part of 
     mainstream classrooms.
       (3) Nationwide reports show that nearly one-third of high 
     school graduates are not ready for college-level English 
     composition courses.
       (4) Writing is a threshold skill for both employment and 
     promotion. Deficiencies in writing skills have resulted in 
     annual private sector costs for providing writing training 
     that are as high as $3,100,000,000.
       (5) Writing is a central feature in State and school 
     district education standards in all disciplines.
       (6) Since 1973, the only national program to address the 
     writing problem in the Nation's schools has been the National 
     Writing Project, a network of collaborative university-school 
     programs.
       (7) Evaluations of the National Writing Project document 
     significant gains in student performance in writing and 
     effective classroom practices.
       (8) The National Writing Project has become a model for 
     programs to improve teaching in such other fields as 
     mathematics, science, history, civics and government, 
     geography, reading and literature, technology, performing 
     arts, and foreign languages.
       (9) Each year, more than 135,000 teachers directly benefit 
     from National Writing Project programs in nearly 200 sites 
     located in all 50 States, the District of Columbia, the 
     Commonwealth of Puerto Rico, and the United States Virgin 
     Islands.

     SEC. 3. AUTHORIZATION OF THE NATIONAL WRITING PROJECT.

       Subpart 2 of part C of title II of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6701 et seq.) is 
     amended to read as follows:

                 ``Subpart 2--National Writing Project

     ``SEC. 2331. PURPOSES.

       ``The purposes of this subpart are--
       ``(1) to support and promote the expansion of the National 
     Writing Project network of sites so that teachers in every 
     region of the United States will have access to a National 
     Writing Project program;
       ``(2) to ensure the consistent high quality of the sites 
     through ongoing review, evaluation, and technical assistance;
       ``(3) to support and promote the establishment of programs 
     to disseminate effective practices and research findings 
     about the teaching of writing; and
       ``(4) to coordinate activities assisted under this subpart 
     with activities assisted under this Act.

     ``SEC. 2332. NATIONAL WRITING PROJECT.

       ``(a) Authorization.--The Secretary is authorized to award 
     a grant to the National Writing Project, a nonprofit 
     educational organization that has as its primary purpose the 
     improvement of the quality of student writing and learning 
     (hereafter in this section referred to as the `grantee`) to 
     improve the teaching of writing and the use of writing as a 
     part of the learning process in our Nation's classrooms.
       ``(b) Requirements of Grant.--The grant shall provide 
     that--
       ``(1) the grantee will enter into contracts with 
     institutions of higher education or other nonprofit 
     educational providers (hereafter in this section referred to 
     as `contractors') under which the contractors will agree to 
     establish, operate, and provide the non-Federal share of the 
     cost of teacher training programs in effective approaches and 
     processes for the teaching of writing;
       ``(2) funds made available by the Secretary to the grantee 
     pursuant to any contract entered into under this section will 
     be used to pay the Federal share of the cost of establishing 
     and operating teacher training programs as provided in 
     paragraph (1); and
       ``(3) the grantee will meet such other conditions and 
     standards as the Secretary determines to be necessary to 
     assure compliance with the provisions of this section and 
     will provide such technical assistance as may be necessary to 
     carry out the provisions of this section.
       ``(c) Teacher Training Programs.--The teacher training 
     programs described in subsection (b) shall--
       ``(1) be conducted during the school year and during the 
     summer months;
       ``(2) train teachers who teach grades kindergarten through 
     college;
       ``(3) select teachers to become members of a National 
     Writing Project teacher network whose members will conduct 
     writing workshops for other teachers in the area served by 
     each National Writing Project site; and
       ``(4) encourage teachers from all disciplines to 
     participate in such teacher training programs.
       ``(d) Federal Share.--
       ``(1) In general.--Except as provided in paragraph (2) or 
     (3) and for purposes of subsection (b), the term Federal 
     share' means, with respect to the costs of teacher training 
     programs described in subsection (b), 50 percent of such 
     costs to the contractor.
       ``(2) Waiver.--The Secretary may waive the provisions of 
     paragraph (1) on a case-by-case basis if the National 
     Advisory Board described in subsection (e) determines, on the 
     basis of financial need, that such waiver is necessary.
       ``(3) Maximum.--The Federal share of the costs of teacher 
     training programs conducted pursuant to subsection (b) may 
     not exceed $150,000 for any one contractor, or $300,000 for a 
     statewide program administered by any one contractor in at 
     least five sites throughout the State.
       ``(e) National Advisory Board.--
       ``(1) Establishment.--The National Writing Project shall 
     establish and operate a National Advisory Board.
       ``(2) Composition.--The National Advisory Board established 
     pursuant to paragraph (1) shall consist of--
       ``(A) national educational leaders;
       ``(B) leaders in the field of writing; and
       ``(C) such other individuals as the National Writing 
     Project determines necessary.
       ``(3) Duties.--The National Advisory Board established 
     pursuant to paragraph (1) shall--
       ``(A) advise the National Writing Project on national 
     issues related to student writing and the teaching of 
     writing;
       ``(B) review the activities and programs of the National 
     Writing Project; and
       ``(C) support the continued development of the National 
     Writing Project.
       ``(f) Evaluation.--
       ``(1) In general.--The Secretary shall conduct an 
     independent evaluation by grant or contract of the teacher 
     training programs administered pursuant to this subpart. Such 
     evaluation shall specify the amount of funds expended by the 
     National Writing Project and each contractor receiving 
     assistance under this section for administrative costs. The 
     results of such evaluation shall be made available to the 
     appropriate committees of Congress.
       ``(2) Funding limitation.--The Secretary shall reserve not 
     more than $150,000 from the total amount appropriated 
     pursuant to the authority of subsection (h) for fiscal year 
     2008 and each of the 5 succeeding fiscal years to conduct the 
     evaluation described in paragraph (1).
       ``(g) Application Review.--
       ``(1) Review board.--The National Writing Project shall 
     establish and operate a National Review Board that shall 
     consist of--
       ``(A) leaders in the field of research in writing; and
       ``(B) such other individuals as the National Writing 
     Project determines necessary.
       ``(2) Duties.--The National Review Board shall--
       ``(A) review all applications for assistance under this 
     subsection; and
       ``(B) recommend applications for assistance under this 
     subsection for funding by the National Writing Project.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this subpart 
     $30,000,000 for fiscal year 2008 and such sums as may be 
     necessary for each of the 5 succeeding fiscal years.''.

  Mr. ROCKEFELLER. Mr. President, I rise today to join my distinguished 
colleague, Senator Thad Cochran, in

[[Page S4058]]

sponsoring the reauthorization of the National Writing Project. We have 
worked together for many years on the wonderful program that supports 
teachers and quality writing. Senator Cochran has long been one of this 
body's strongest advocates for not only the NWP, but for education in 
general. His leadership is quiet and effective, and truly inspiring.
  The National Writing Project, NWP, provides our teachers with 
professional development to enhance their skills and in turn those 
teachers bring new skills and new enthusiasm to their classrooms and 
their students. Over 141,000 educators annually go through the NWP and 
become invaluable resources to millions of children nationwide. The NWP 
is at the forefront in the efforts to improve our schools for teachers 
and students.
  The NWP is not only a great idea in theory but it has a record of 
success by consistently delivering results that can be seen in our 
classrooms. Students in NWP classrooms have shown demonstrably improved 
ability to organize and develop ideas in writing. A study published in 
January 2006 concluded that students whose teachers underwent NWP 
training uniformly demonstrated positive results.
  Every State participates in the program. West Virginia has benefited 
tremendously from this program. The three sites in my State are Central 
West Virginia Writing Project, Marshall University Graduate College in 
South Charleston, the Marshall University Writing Project in 
Huntington, and the National Writing Project at West Virginia 
University in Morgantown. I am particularly proud of the leadership at 
Marshall University on its Technology Project to explore ways to better 
integrate technology into writing and classroom education. During the 
2005-2006 school year the NWP conducted more than 140 programs serving 
over 3,000 teachers.
  The NWP is a perfect example of how the public and the private sector 
should work in partnership to improve our society. The NWP operating 
budget comes not only from the Federal Government but from in kind 
contribution from colleges and universities.
  Programs like the NWP are an essential part strengthening our 
education system, and it deserves our continued support.
                                 ______
                                 
      By Mr. McCONNELL (for Mr. Enzi (for himself, Mr. Dorgan, Mr. 
        Grassley, Mr. Thomas, and Mr. Conrad)):
  S. 1017. A bill to amend the Packers and Stockyards Act, 1921, to 
prohibit the use of certain anti-competitive forward contracts; to the 
Committee on Agriculture, Nutrition, and Forestry.
  Mr. ENZI. Mr. President, Wyoming's late, great country music star 
Chris LeDoux has a song Some Things Never Change. I wish that were the 
case for Wyoming's hardworking livestock producers. As production 
agriculture has evolved and improved in the United States, producers in 
Wyoming continue to be held hostage to a regulatory nightmare and bound 
by the chains of unfair and manipulative marketing contracts. It is 
this regulatory nightmare that must be addressed. That is why I am 
reintroducing legislation today to break the chains and require 
livestock contracts to contain a fixed base price and be traded in 
open, public markets.
  From Kaycee to Kansas City, captive supply is destroying the health 
of our family ranches. Many of these small businesses have operated for 
generations. Unfortunately, a handshake and an honest day's labor 
cannot compete with deceptive business practices. Captive supply is a 
business practice not well known to those outside of the industry, but 
a practice that has had a tremendous impact on the ranchers of the 
West.
  I go back to Wyoming almost every weekend. Because Wyoming is such a 
large State, my travels take me to a different section of the State on 
each trip. Throughout Wyoming I hear the same concerns from my 
constituents. They are all clamoring for attention and relief so they 
can continue the work that so many in their families have done for so 
many years. These concerns are not unique to Wyoming. Captive supply is 
an industry-wide problem.
  So what is captive supply--and how is it harming our Nation's 
ranchers to such an extent? Simply put, captive supply refers to the 
ownership by meat packers of cattle or the contracts they issue to 
purchase livestock. It is done to ensure that packers will always have 
a consistent supply of livestock on the kill floor which keeps 
slaughterhouses in perpetual operation.
  The original goal of captive supply makes good business sense. All 
businesses want to maintain a steady supply of animals to ensure a 
constant stream of production and control costs.
  But captive supply allows packers to go beyond good organization and 
business performance--to market manipulation--and this is where the 
problem lies.
  The packing industry is highly concentrated. Using captive supply and 
the market power of concentration, packers can purposefully drive down 
the prices by refusing to buy in the open market. This deflates all 
livestock prices and limits the market access of producers that have 
not aligned with specific packers.
  We made an attempt to address the problem of captive supply on the 
Senate floor during the 2002 Farm Bill debate, but the amendment to ban 
packer ownership of livestock more than 14 days before slaughter did 
not survive the conference committee deliberation. I look forward to 
working with my colleagues on the reauthorization of the Farm Bill this 
year. I will press this issue during the drafting of the Competition 
Title of the Farm Bill with my congressional colleagues.
  The problems caused by captive supply are alive and well, just as 
Wyoming producers have testified to me in the phone calls, letters, 
faxes and emails I receive from them. Although I supported the packer 
ban and have cosponsored it again this Congress, I do not think that 
banning packer ownership of livestock will solve the entire captive 
supply problem. Packers are using numerous methods beyond direct 
ownership to control cattle and other livestock.
  Currently, packers maintain captive supply through various means 
including direct ownership, forward contracts, and marketing 
agreements. The difference between the three is subtle, so let me take 
a moment to describe how they differ. Direct ownership refers to 
livestock owned by the packer. In forward contracts, producers agree to 
the delivery of cattle one week or more before slaughter with the price 
determined before slaughter. Forward contracts are typically fixed, 
meaning the base price is set.
  As with forward contracts, marketing agreements also call for the 
delivery of livestock more than one week before slaughter, but the 
price is determined at or after slaughter. A formula pricing method is 
commonly used for cattle sold under marketing agreements. In formula 
pricing, instead of a fixed base price, an external reference price, 
such as the average price paid for cattle at a certain packing plant 
during one week, is used to determine the base price of the cattle. I 
find this very disturbing because the packer has the ability to 
manipulate the weekly average at a packing plant by refusing to buy in 
the open market. Unfortunately, marketing agreements and formula 
pricing are much more common than forward contracts.

  Livestock producers have the same questions when they lose to the 
market pressures applied by captive supply. Captive supply gives 
packers the ability to discriminate against some producers. And those 
producers pay for it with their bottom line. At the same time, packers 
use contracts and marketing agreements to give privileged access and 
premiums to other producers regardless of the quality of their product. 
These uses of captive supply should be illegal. In fact, they are.
  Section 202 of the Packers and Stockyards Act states in (3) (a) and 
(b):
  ``It shall be unlawful for any packer with respect to livestock . . . 
to:
  ``(a) Engage in or use any unfair, unjustly discriminatory, or 
deceptive practice or device; or
  ``(b) Make or give any undue or unreasonable preference or advantage 
to any particular person or locality in any respect, or subject any 
particular person or locality to any undue or unreasonable prejudice or 
disadvantage in any respect.''
  Packers that practice price discrimination toward some producers and 
provide undue preferences to other producers are clearly in violation 
of the

[[Page S4059]]

law. But this law is not being enforced. So what we are left with are 
unenforced laws or no laws at all to protect the independent producer. 
The Packers and Stockyards Act is not being enforced and the cost of 
enforcing the law on a case-by-case basis in the courts is expensive 
and time-consuming.
  A law is not worth the paper it is printed on if it is not enforced. 
The posted speed limit is not a suggestion. Our law enforcement 
officers enforce the law when motorists fail to heed the posted sign. 
This section of the Packers and Stockyards Act is like a sign on the 
road of commerce that no one is paying attention to because the police 
are busy doing something else. The bill I am introducing today is not 
just another sign on the road. It is a speed bump. It does not just 
warn cars to go slower; it makes it much more difficult for them to 
speed.
  My bill does two things to create the speed bump. It requires that 
livestock producers have a fixed base price in their contracts. It also 
puts these contracts up for bid in the open market where they belong.
  Under this bill, forward contracts and marketing agreements must 
contain a fixed base price on the day the contract is signed. This 
prevents packers from manipulating the base price after the point of 
sale. You may hear allegations that this bill ends quality-driven 
production, but it does not prevent adjustments to the base price after 
slaughter for quality, grade or other factors outside packer control. 
It prevents packers from changing the base price based on factors that 
they do control. Contracts that are based on the futures market are 
also exempted from the bill's requirements.
  In an open market, buyers and sellers would have the opportunity to 
bid against each other for contracts and could witness bids that are 
made and accepted. Whether they take the opportunity to bid or not is 
their choice, the key here is that they have access to do so.
  My bill also limits the size of contracts to the rough equivalent of 
a load of livestock, meaning 40 cattle or 30 swine. It does not limit 
the number of contracts that can be offered by an individual. This key 
portion prevents small and medium-sized livestock producers, like those 
found in Wyoming, from being shut out of deals that contain thousands 
of livestock per contract.
  Requiring a firm base price and an open and transparent market ends 
the potential for price discrimination, price manipulation and undue 
preferences. These are not the only benefits of my bill. It also 
preserves the very useful risk management tool that contracts provide 
to livestock producers. Contracts help producers plan and prepare for 
the future. My bill makes contracts and marketing agreements an even 
better risk management tool because it solidifies the base price for 
the producer. Once the agreement is made, a producer can have 
confidence on shipping day in his ability to feed his family during the 
next year because he will know in advance how much he can expect to 
receive for his livestock.
  This bill also encourages electronic trading. An open and public 
market would function much like the stock market, where insider trading 
is prohibited. The stock market provides a solid example of how 
electronic livestock trading can work to the benefit of everyone 
involved. For example, price discovery in an open and electronic market 
is automatic.
  Captive supply is still weighing on the minds and hurting the 
pocketbooks of ranchers in Wyoming and across the United States. 
Wyoming ranchers encourage me to keep up the good fight on this issue 
on every trip I make to my home state. The economic soul of Wyoming is 
built on the foundation of small towns and small businesses. All 
livestock producers, even small and medium-sized ones, should have a 
fair chance to compete that allows them to get the best price possible 
for their product. We must do everything we can to keep our small 
producers in business.
  My bill removes one of the largest obstructions preventing livestock 
producers from competing--formula-priced contracts. I ask my colleagues 
to assist me in giving their constituents and mine the chance to 
perform on a level playing field.
  While Some Things Never Change, it is time for a sea change in the 
area of captive supply.
                                 ______
                                 
      By Mr. DURBIN (for himself, Mr. Hagel, and Mrs. Feinstein):
  S. 1018. A bill to address security risks posed by global climate 
change and for other purposes; to the Select Committee on Intelligence.
  Mr. DURBIN. Mr. President, today, Senator Hagel and I introduced the 
bipartisan Global Climate Change Security Oversight Act. We were joined 
by Senator Feinstein. Our bill states that the consequences of global 
climate change represent a clear and present danger to the security of 
the United States.
  For years, many of us have examined global warming as an 
environmental or economic issue. We also need to consider it as a 
security concern. Our bill begins this process by requiring a National 
Intelligence Estimate to assess the strategic challenges presented by 
the world's changing climate.
  The National Security Strategy of 2006 stated that the United States 
now faces new security challenges, including ``environmental 
destruction, whether caused by human behavior or cataclysmic mega-
disasters such as floods, hurricanes, earthquakes, or tsunamis. 
Problems of this scope may overwhelm the capacity of local authorities 
to respond, and may even overtax national militaries, requiring a 
larger international response. These challenges are not traditional 
national security concerns, such as the conflict of arms or ideologies. 
But if left unaddressed they can threaten national security.''
  Global climate change represents one of the new environmental 
challenges outlined in the National Security Strategy that poses a 
threat to our national security. Failing to recognize and plan for the 
geopolitical challenges of global warming would represent a serious 
mistake.
  A National Intelligence Estimate is a comprehensive review of a 
potential security threat that combines, correlates and evaluates 
intelligence from all of the relevant U.S. intelligence agencies. 
Various intelligence agencies--the CIA, NSA, the Pentagon, FBI, etc. 
must pool data, share perspectives and work together to assemble an 
accurate picture of threats to U.S. security.
  Without an NIE, the various agencies may never have an opportunity to 
examine each other's data, and any differences or similarities between 
the reports could provide important information for policymakers.
  In this legislation, we ask for the intelligence community to provide 
a strategic estimate of the risks posed by global climate change for 
countries or regions that are of particular economic or military 
significance to the United States or that are at serious risk of 
humanitarian suffering. This NIE will assess the political, social, 
agricultural, and economic challenges for countries and their likely 
impact.
  Every region will be affected differently by global warming and it is 
critical that our intelligence and military communities are prepared to 
handle the situations most likely to arise.
  For example, rising sea levels will have a profound impact on low 
lying coastal areas, especially in the Asia-Pacific region. This region 
is home to 58 percent of the world's population and 57 percent of the 
world's poorest population. More than 5 million people live in major 
cities that are in low lying coastal areas.
  People in the Asia-Pacific region already endure coastal natural 
disasters, such as tsunamis, and inland flooding. Between 2001 and 
2005, 62,273 people were killed annually by water related disasters in 
this region. This number is only going to increase as the world warms.
  Africa is a place where changes in precipitation patterns will be 
particularly devastating. Many areas are already under enormous stress 
from drought and hunger. In 2005, 30 million people in 34 countries 
confronted food shortages as a result of drought. It is estimated that 
the droughts will become more severe and impact more people if the 
temperature continues to rise.
  Environmental changes caused by global warming represent a potential 
threat multiplier for instability around the world. Scarce water, for 
example, may exacerbate conflict along economic, ethnic, or sectarian 
divisions.

[[Page S4060]]

Water shortages, food insecurity, or flooding all of which may occur as 
a result of rising global temperatures could also displace people, 
forcing them to migrate. Many of the most severe effects of global 
warming are expected in regions where fragile governments are least 
capable of responding to them.
  This NIE will examine these questions and more. It will also do 
something that we don't do often enough here in Congress: it will look 
beyond the near horizon of the next election or the next few years and 
require the intelligence community to think about these issues in the 
context of the next 30 years.
  The bill we introduced today will also fund additional research by 
the Department of Defense in order to examine the impact of climate 
change on military operations.
  Rising temperatures are altering the international environment. We 
need to be prepared for this new world.
  We hope that our colleagues will join us in this bipartisan effort to 
assess the strategic implications of climate change. The scientific 
community has demonstrated that the earth is growing warmer. We are 
asking the intelligence community to analyze the geopolitical 
implications of these changes.
  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. 1018

       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 ``Global Climate Change 
     Security Oversight Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) According to the National Oceanic and Atmospheric 
     Administration, in 2007 the average annual temperature in the 
     United States and around the global is approximately 1.0 
     degree Fahrenheit warmer than at the start of the 20th 
     century, and the rate of warming has accelerated during the 
     past 30 years, increasing globally since the mid-1970s. The 
     fourth assessment report of the Intergovernmental Panel on 
     Climate Change has predicted that the Earth will warm 0.72 
     degrees Fahrenheit during the next 2 decades with current 
     emission trends.
       (2) The annual national security strategy report submitted 
     pursuant to section 108 of the National Security Act of 1947 
     (50 U.S.C. 404a) for 2006 states that the United States faces 
     new security challenges, including ``environmental 
     destruction, whether caused by human behavior or cataclysmic 
     mega-disasters such as floods, hurricanes, earthquakes, or 
     tsunamis. Problems of this scope may overwhelm the capacity 
     of local authorities to respond, and may even overtax 
     national militaries, requiring a larger international 
     response. These challenges are not traditional national 
     security concerns, such as the conflict of arms or 
     ideologies. But if left unaddressed they can threaten 
     national security.''.
       (3) According to the fourth assessment report of the 
     Intergovernmental Panel on Climate Change, average 
     temperature increases of between 2 and 4 degrees Celsius over 
     preindustrial levels are projected to cause the sea level to 
     rise by between 2 and 4 meters by 2100 due to melting of the 
     Greenland and Antarctic ice sheets.
       (4) In 2007, more than 200,000,000 people live in coastal 
     floodplains around the world and 2,000,000 square kilometers 
     of land and an estimated $1,000,000,000,000 worth of assets 
     are less than a 1-meter elevation above sea level.
       (5) An estimated 1,700,000,000 people in the world live in 
     areas where water is scarce and in 25 years that population 
     is projected to increase to 5,400,000,000. Climate change 
     will impact the hydrological cycle and change the location, 
     time of year, and intensity of water availability.
       (6) The report of the World Health Organization entitled 
     ``The World Health Report 2002: Reducing Risks and Promoting 
     Healthy Life'' states that ``Effects of climate change on 
     human health can be expected to be mediated through complex 
     interactions of physical, ecological, and social factors. 
     These effects will undoubtedly have a greater impact on 
     societies or individuals with scarce resources, where 
     technologies are lacking, and where infrastructure and 
     institutions (such as the health sector) are least able to 
     adapt.''.
       (7) Environmental changes relating to global climate change 
     represent a potentially significant threat multiplier for 
     instability around the world as changing precipitation 
     patterns may exacerbate competition and conflict over 
     agricultural, vegetative, and water resources and displace 
     people, thus increasing hunger and poverty and causing 
     increased pressure on fragile countries.
       (8) The strategic, social, political, and economic 
     consequences of global climate change are likely to have a 
     greater adverse effect on less developed countries with fewer 
     resources and infrastructures that are less able to adjust to 
     new economic and social pressures, and where the margin for 
     governance and survival is thin.
       (9) The consequences of global climate change represent a 
     clear and present danger to the security and economy of the 
     United States.
       (10) A failure to recognize, plan for, and mitigate the 
     strategic, social, political, and economic effects of a 
     changing climate will have an adverse impact on the national 
     security interests of the United States.

     SEC. 3. NATIONAL INTELLIGENCE ESTIMATE ON GLOBAL CLIMATE 
                   CHANGE.

       (a) Requirement for National Intelligence Estimate.--
       (1) In general.--Except as provided in paragraph (2), not 
     later than 270 days after the date of enactment of this Act, 
     the Director of National Intelligence shall submit to 
     Congress a National Intelligence Estimate on the anticipated 
     geopolitical effects of global climate change and the 
     implications of such effects on the national security of the 
     United States.
       (2) Notice regarding submittal.--If the Director of 
     National Intelligence determines that the National 
     Intelligence Estimate required by paragraph (1) cannot be 
     submitted by the date set out in that paragraph, the Director 
     shall notify Congress and provide--
       (A) the reasons that the National Intelligence Estimate 
     cannot be submitted by such date; and
       (B) an estimated date for the submittal of the National 
     Intelligence Estimate.
       (b) Content.--The Director of National Intelligence shall 
     prepare the National Intelligence Estimate required by this 
     section using the mid-range projections of the fourth 
     assessment report of the Intergovernmental Panel on Climate 
     Change--
       (1) to assess the political, social, agricultural, and 
     economic risks during the 30-year period beginning on the 
     date of enactment of this Act posed by global climate change 
     for countries or regions that are--
       (A) of strategic economic or military importance to the 
     United States and at risk of significant impact due to global 
     climate change; or
       (B) at significant risk of large-scale humanitarian 
     suffering with cross-border implications as predicted on the 
     basis of the assessments;
       (2) to assess other risks posed by global climate change, 
     including increased conflict over resources or between ethnic 
     groups, within countries or transnationally, increased 
     displacement or forced migrations of vulnerable populations 
     due to inundation or other causes, increased food insecurity, 
     and increased risks to human health from infectious disease;
       (3) to assess the capabilities of the countries or regions 
     described in subparagraph (A) or (B) of paragraph (1) to 
     respond to adverse impacts caused by global climate change;
       (4) to assess the strategic challenges and opportunities 
     posed to the United States by the risks described in 
     paragraph (1);
       (5) to assess the security implications and opportunities 
     for the United States economy of engaging, or failing to 
     engage successfully, with other leading and emerging major 
     contributors of greenhouse gas emissions in efforts to reduce 
     emissions; and
       (6) to make recommendations for further assessments of 
     security consequences of global climate change that would 
     improve national security planning.
       (c) Coordination.--In preparing the National Intelligence 
     Estimate under this section, the Director of National 
     Intelligence shall consult with representatives of the 
     scientific community, including atmospheric and climate 
     studies, security studies, conflict studies, economic 
     assessments, and environmental security studies, the 
     Secretary of Defense, the Secretary of State, the 
     Administrator of the National Oceanographic and Atmospheric 
     Administration, the Administrator of the National Aeronautics 
     and Space Administration, the Administrator of the 
     Environmental Protection Agency, the Secretary of Energy, and 
     the Secretary of Agriculture, and, if appropriate, 
     multilateral institutions and allies of the United States 
     that have conducted significant research on global climate 
     change.
       (d) Form.--The National Intelligence Estimate required by 
     this section shall be submitted in unclassified form, to the 
     extent consistent with the protection of intelligence sources 
     and methods, and include unclassified key judgments of the 
     National Intelligence Estimate. Such National Intelligence 
     Estimate may include a classified annex.

     SEC. 4. RESPONSE TO THE NATIONAL INTELLIGENCE ESTIMATE.

       (a) Report by the Secretary of Defense.--Not later than 270 
     days after the date that the National Intelligence Estimate 
     required by section 3 is submitted to Congress, the Secretary 
     of Defense shall submit to the Committee on Appropriations, 
     the Committee on Armed Services, and the Select Committee on 
     Intelligence of the Senate and the Committee on 
     Appropriations, the Committee on Armed Services, and the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives a report on--
       (1) the projected impact on the military installations and 
     capabilities of the United States of the effects of global 
     climate change as assessed in the National Intelligence 
     Estimate;
       (2) the projected impact on United States military 
     operations of the effects of global climate change described 
     in the National Intelligence Estimate; and

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       (3) recommended research and analysis needed to further 
     assess the impacts on the military of global climate change.
       (b) Sense of Congress on the Next Quadrennial Defense 
     Review.--It is the sense of Congress that the Secretary of 
     Defense should address the findings of the National 
     Intelligence Estimate required by section 3 regarding the 
     impact of global climate change and potential implications of 
     such impact on the Armed Forces and for the size, 
     composition, and capabilities of Armed Forces in the next 
     Quadrennial Defense Review.
       (c) Report by the Secretary of State.--Not later than 270 
     days after the date that the National Intelligence Estimate 
     required by section 3 is submitted to Congress, the Secretary 
     of State shall submit to the Committee on Appropriations, the 
     Committee on Foreign Relations, and the Select Committee on 
     Intelligence of the Senate and the Committee on 
     Appropriations, the Committee on Foreign Affairs, and the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives a report that addresses--
       (1) the potential for large migration flows in countries of 
     strategic interest or humanitarian concern as a response to 
     changes in climate and the implications for United States 
     security interests; and
       (2) the potential for diplomatic opportunities and 
     challenges facing United States policy makers as a result of 
     social, economic, or political responses of groups or nations 
     to global changing climate.

     SEC. 5. AUTHORIZATION OF RESEARCH.

       (a) In General.--The Secretary of Defense is authorized to 
     carry out research on the impacts of global climate change on 
     military operations, doctrine, organization, training, 
     material, logistics, personnel, and facilities and the 
     actions needed to address those impacts. Such research may 
     include--
       (1) the use of war gaming and other analytical exercises;
       (2) analysis of the implications for United States defense 
     capabilities of large-scale Arctic sea-ice melt and broader 
     changes in Arctic climate;
       (3) analysis of the implications for United States defense 
     capabilities of abrupt climate change;
       (4) analysis of the implications of the findings derived 
     from the National Intelligence Estimate required in section 3 
     Act for United States defense capabilities;
       (5) analysis of the strategic implications for United 
     States defense capabilities of direct physical threats to the 
     United States posed by extreme weather events such as 
     hurricanes; and
       (6) analysis of the existing policies of the Department of 
     Defense to assess the adequacy of the Department's 
     protections against climate risks to United States 
     capabilities and military interests in foreign countries.
       (b) Report.--Not later than 2 years after the date that the 
     National Intelligence Estimate required by section 3 is 
     submitted to Congress, the Secretary of Defense shall submit 
     to Congress a report on the results of the research, war 
     games, and other activities carried out pursuant to 
     subsection (a).

     SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated such sums as may be 
     necessary to carry out this Act.

  Mr. HAGEL. Mr. President. I rise today to join Senator Durbin in 
introducing the Global Climate Change Security Oversight Act.
  Global climate change has implications beyond economic, environmental 
and energy policies. It has the potential to affect every aspect of our 
daily lives. It is because of the possible broad impact on U.S. 
interests at home and abroad that I have agreed to be the lead 
Republican co-sponsor on the Global Climate Change Security Oversight 
Act.
  Senator Durbin and I differ on policy initiatives designed to reduce 
the impact of climate change. We do agree, however, on the need to 
assess potential impacts of the changing climate on U.S. national 
security interests so that our Nation can develop responsible, forward-
thinking policies that ensure the continued safety and prosperity of 
the American people.
  There will always be uncertainties and incomplete information in 
climate science. This is the nature of scientific discovery; it is 
constantly evolving, constantly gaining new insights and explanations 
of our natural world. National policy must be crafted based on what is 
known, but also must be able to incorporate the uncertainties of what 
is yet to be learned.
  Our bill provides a foundation for future policy options. It 
instructs the Director of National Intelligence to conduct a National 
Intelligence Estimate to assess the potential geopolitical effects of 
global climate change and the implications for U.S. national security. 
It asks for a risk assessment of a broad array of impacts based on 
current scientific understanding. This bill is intended to gather 
information about the national security implications of projected 
climate change, so that in the future, Congress can develop policies 
that protect U.S. interests around the world.
  I have said that the debate is not about whether we should take 
action, but rather what kind of action we should take. It would be 
irresponsible to attempt to develop a response to the physical effects 
of climate change without knowing what the potential consequences are. 
Our actions should always be based on a comprehensive base of 
scientific information and knowledge. Without this kind of information, 
we cannot effectively determine what the risks to U.S. national 
security will be. We cannot realistically design policies that mitigate 
these risks without this information. General Charles F. ``Chuck'' 
Wald, USAF, ret., former Deputy Commander, Headquarters U.S. European 
Command, has stated, ``This bipartisan legislation takes on an 
important emerging policy issue--the impact of climate change and 
national security. I support its call for a national intelligence 
estimate of the topic and authorizing the Secretary of Defense to 
conduct further research on the military impact of climate change.''
  As I have said for many years, the way forward is to responsibly 
address the issue of climate change with a national strategy that 
incorporates economic, environmental and energy priorities. These 
issues are inextricably linked and changes to one will effect the other 
two. These priorities are also an integral part of U.S. national 
security. Risk assessment is essential to putting our national 
resources in the places where they will be most effective. This is even 
more important when assessing risk to national security. This 
legislation will provide information we need to continue to help make 
our country secure in the years to come.

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