[Congressional Record Volume 154, Number 78 (Tuesday, May 13, 2008)]
[Senate]
[Pages S4048-S4072]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          FLOOD INSURANCE REFORM AND MODERNIZATION ACT OF 2007

  The ACTING PRESIDENT pro tempore. Under the previous order, the 
Senate will resume consideration of S. 2284, which the clerk will 
report.
  The assistant legislative clerk read as follows:

       A bill (S. 2284) to amend the National Flood Insurance Act 
     of 1968, to restore the financial solvency of the flood 
     insurance fund, and for other purposes.

  Pending:

       Dodd/Shelby amendment No. 4707, in the nature of a 
     substitute.
       McConnell amendment No. 4720 (to the text of the bill 
     proposed to be stricken by amendment No. 4707), of a 
     perfecting nature.
       Allard amendment No. 4721 (to amendment No. 4720), of a 
     perfecting nature.

  The ACTING PRESIDENT pro tempore. Under the previous order, there 
will be 1 hour of debate equally divided between the two leaders or 
their designees.
  The Senator from Illinois.
  Mr. DURBIN. Mr. President, I would like to speak to the amendment 
which we will vote on shortly. It relates to the cost of gasoline. I 
can't think of another issue that has been in the forefront across 
America for a longer period than the cost of gasoline. It goes beyond 
that, obviously, to diesel fuel and jet fuel costs. We see it every 
day. You drive down the road, and you watch prices going up at the gas 
station. People ask Senators and Congressmen: You are supposed to be 
the bigwigs here. You are supposed to be so influential. Why haven't 
you done something; the gas prices are killing us.
  And they are. Whether it is a family member commuting back and forth 
to work in downstate Illinois, trying to get to the State capitol, 
whether it is a an over-the-road trucker spending almost $1,000 to fill 
up his rig with diesel fuel, whether it is the CEO of an airline who 
has seen the worst first-quarter losses in the history of that airline 
because of the rise in the cost of jet fuel, it is hitting everybody. I 
talked to a chiropractor over the weekend. She told me her practice was 
dying because people didn't want to drive 20 miles for her services. 
They said: We will see you every other week instead of every week. As 
you see, it is starting to reach into every single area.
  So what response do we have from the Republican side? The response is 
predictable and ineffective. Here is what they say: You know what we 
ought to do. We ought to start drilling for oil in the Arctic National 
Wildlife Refuge and we ought to start drilling for oil off the coasts 
of America.
  OK. How much oil is there?
  Oh, there is a lot.
  In the scheme of things, it is not a lot. All of the oil reserves 
within the control of the United States of America, all of them 
combined come to 3 percent of the world's total oil reserves. Each 
year, our Nation--a powerful, large economy--consumes 25 percent of all 
the oil produced in the world. We cannot drill our way out of this 
issue. We cannot drill our way to lower prices.
  Here is something they fail to mention: If we gave approval today--
which I think would be a bad idea--to the Republican approach, it would 
be years before the oil would start trickling in, meaning years of high 
prices.
  So what can we do here and now? Two things: First, we can start 
dealing with the price gouging of consumers. Prices are going up 
dramatically at historically high rates. They are not justified by the 
barrel-of-oil prices. The spread between the cost of a barrel of oil 
and the cost of refined product keeps growing larger and larger, and 
the oil companies that are refining the crude oil keep making more and 
more money. Price gouging is going on. That is the first issue. Is 
there any mention of consumer price gouging in the Republican approach? 
Not one word. In the Democratic approach, we believe price gouging 
should be part of this.

  Secondly, accountability of the oil companies. These oil companies, 
over the last 7 years when George Bush from oil country has been our 
President, have seen their profits quadruple--four

[[Page S4049]]

times the profits they were making just a few years ago. The cost of 
oil and diesel fuel has gone up 2\1/2\ times; the oil company profits, 
quadrupled. These companies are not only making more money than oil 
companies have ever made, they are making more money than any business 
in the history of America. That is a fact.
  We have a windfall profits tax. We say there is a limit to how much 
these oil companies should be making as profits when it causes so much 
damage to American families and businesses and farmers and truckers and 
the economy. We have a windfall profits tax. The Republican approach: 
nothing--nothing to address the oil company profits. That is the 
reality.
  Now, Senator Reid, the Democratic majority leader, came to the floor 
a few minutes ago and told us what is going on with the Republican 
strategy. So far in this session of Congress--we have 2-year sessions 
of Congress--the Republicans have initiated 70 filibusters. Today, they 
will hit 71. You might say: So what. What does that mean? In the 
history of the Senate--over 200 years--the maximum number of 
filibusters in a 2-year period of time was 57. The Republicans have 
broken that record.
  What is a filibuster? A filibuster is a way to delay, slow down, 
avoid, try to turn the page to another issue. Over and over and over 
again--70 times--the Republicans have now set a record for obstruction 
in stopping progress in the Senate, whether it is on issues of energy, 
whether it is on issues of health care, helping our schools, dealing 
with the war in Iraq--over and over and over again, Republican 
filibusters.
  Today, we will have a vote. We are going to have a vote in a short 
period of time--at 12:15, maybe earlier; I am not sure. But in the 
course of that vote, we will have a choice on whether we at least will 
make one small step forward when it comes to dealing with gasoline 
prices. We cannot justify, in the current situation, continuing to take 
oil off the market where the Federal Government buys it and stores it. 
It is called the Strategic Petroleum Reserve. Currently, it is at about 
97 percent of capacity. We are buying the most expensive crude oil in 
the history of the world, and storing it, taking it off the market, 
further putting an increase on gasoline prices.
  We will offer an alternative to the Republican approach which will 
say that we will suspend filling the Strategic Petroleum Reserve. It 
might pass. Fifty-one Democratic Senators, incidentally, wrote a letter 
to the President on March 11 asking the President to suspend the 
filling of the Petroleum Reserve because gasoline prices were out of 
control. The President refused. Now we have to pass a law to force the 
President to do something about these gasoline prices.
  I think suspending shipments to the Strategic Petroleum Reserve is 
the most sensible way for us to bring these prices down. I hope we can 
get the cooperation of the Republicans, beyond that, to deal with the 
price gouging of consumers and accountability for oil companies and not 
face another Republican filibuster when it comes to that important 
issue.
  Mr. President, I yield the floor.
  The ACTING PRESIDENT pro tempore. The Senator from New Mexico.
  Mr. DURBIN. Mr. President, can I propound one unanimous consent 
request, please. I am sorry. If the Senator from New Mexico will allow 
me, I ask unanimous consent that the following Senators be allocated 5 
minutes each from the majority's time after the Senator from New Mexico 
speaks: Senators Kennedy, Dorgan, and Bingaman.
  The ACTING PRESIDENT pro tempore. Is there objection?
  Mr. DOMENICI. Mr. President, just a minute. Do you have time on each 
one of them?
  Mr. DURBIN. We will alternate back and forth.
  Mr. DOMENICI. I understand.
  Mr. DURBIN. These Senators asked for 5 minutes each.
  Mr. DOMENICI. I did not hear the ``5 minutes each.'' I am sorry. I 
have no objection.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  The Senator from New Mexico.
  Mr. DOMENICI. Mr. President, following mine, we would like Senators 
Hutchison, Enzi, Vitter, and Cornyn to be recognized for 5 minutes 
each, and 5 minutes for wrap-up for the Senator from New Mexico, with 
10 minutes right now for the Senator from New Mexico, and alternating 
back and forth.
  The ACTING PRESIDENT pro tempore. Is there objection?
  The Chair hears none, and it is so ordered.
  Mr. DOMENICI. Mr. President, I just have so much to talk about. I 
wanted to follow my text I had prepared, but having heard the 
Democratic Senator discuss this issue, I have to tell the American 
people, one, their energy policy, if they are talking about today, is a 
policy that has to do with the filling of the Strategic Petroleum 
Reserve. The leader of that policy is the distinguished Senator Dorgan. 
He has led that cause, and he is going to win. But literally that 
cannot be an energy policy. It is 70,000 barrels a day that we are not 
going to buy and put in the reserve--70,000--and that is for the rest 
of this year.
  Now, we use 21 million barrels of oil a day. So let's face up to it. 
If you do not think 1 million barrels a day from the Alaskan arctic 
wilderness--which would be American, and we could get that coming to 
America for maybe 50 years--if that is not better than 70,000 barrels 
for 7 or 8 months to not put in the Reserve but leave in the world 
market--I will leave that to anybody who is listening.
  Price gouging is in their portfolio again. They talk about it. Last 
year, we gave authority to the Federal Trade Commission. They have not 
yet found any gouging. We hope they do.
  Now, I would like to go on and talk about what we are trying to do.
  Mr. President, I ask unanimous consent that I be added as a cosponsor 
to amendment No. 4737. It is now known as the Reid amendment, but it is 
actually Senator Dorgan's amendment.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Mr. DOMENICI. Mr. President, earlier this year, I gave a detailed 
speech on the Senate floor about the perils of our Nation's growing 
dependence on foreign oil. At that time, I noted the Nation was 
ignoring policies that would increase our energy supply while the 
stranglehold of foreign oil was tightening. I spoke bluntly and warned 
of dark days ahead for our Nation's economy and foreign policy if we 
continued to send our money abroad to buy oil from unstable and hostile 
regions around the globe.
  I stated that at the current price of oil, we are at a pace to send 
nearly a half trillion dollars overseas annually to purchase oil--a 
half trillion. When the driving season ends, and the price at the pump 
subsides a bit, naturally the volume of constituent letters and phone 
calls will decrease a bit. When the cameras fade and the focus of the 
day begins to turn elsewhere, we should stop and reflect on the debate 
we are having today.
  Make no mistake, a growing and gathering storm is swirling around 
this Nation. It is threatening our economic strength, our national 
security, and our place in the world. That storm comes in the form of 
dependence upon foreign oil.
  Last year, Congress passed a strong energy bill, built on advancing 
cellulosic ethanol and strengthening our fuel efficiency standards. We 
made great steps in setting up policies that will reduce our gasoline 
consumption. However, I said at the time, and say again today, last 
year's legislation had a glaring weakness, which is highlighted today. 
Last year's bill failed to include measures for domestic energy 
production.
  When we tried to open the Virginia Outer Continental Shelf to natural 
gas leasing, the other side blocked that. When we tried to improve our 
Nation's refining capacity, the other side blocked that. And when we 
tried to advance domestic coal-derived fuels--a very major way for 
America to diminish its dependence on foreign oil--the other side 
blocked that. On conservation and efficiency and the pursuit of clean 
energy, this Chamber is in wide bipartisan agreement. But on producing 
more American oil and gas to reduce the price of gasoline at the pump, 
it will become clear from today's debate and vote that the vast 
majority on the other side opposes action.

[[Page S4050]]

  When today's vote is over, regardless of the outcome, I will continue 
to return to the Senate floor and speak on this important issue of our 
growing dependence on foreign oil. I will continue to speak out against 
policies that increase the cost of energy, when the American people so 
clearly want us to provide relief from high gas prices.
  I have listened intently to the increased debate over the past few 
weeks about our energy challenges. I have heard some on the other side 
plead with OPEC nations to increase production by one-quarter of the 
amount we provide for in America with this amendment--one-quarter the 
amount. I have heard ANWR opponents from a decade ago repeat their 
claim from a decade ago that ANWR oil will take a decade to produce. I 
never heard this argument when we were supporting increasing vehicle 
fuel economy standards that we know will take a decade to come to 
fruition. We passed a bill that everybody takes credit for. It will 
take 10 years for it to have an impact. Yet we praise ourselves for 
producing it.
  Of course, all of this would be assuming the price of oil did not 
increase over $100 per barrel during the time that ANWR was being 
blocked. If President Clinton had not vetoed ANWR over 12 years ago, we 
would have this oil from Alaska on the market today. I have also heard 
my colleagues argue that 70,000 barrels of oil per day would make a 
significant difference in the price of oil--that is the SPR bill--while 
denying access to over 1 million barrels of oil per day from ANWR 
alone.
  It is time to act, and what the other side has offered at this 
critical moment is talk of energy independence supported by more 
Government investigations and empty threats to OPEC combined with pleas 
for more OPEC production. If that were not enough, we are faced with 
the prospects of a windfall profits tax like the one that passed in 
April by the Chavez administration in Venezuela. We tried to implement 
such a tax in the 1980s. It did not work then, and it will not work 
now. We cannot produce more energy by taxing oil companies or taxing 
anyone.
  According to the Congressional Research Service, the imposition of a 
windfall profits tax could have ``several adverse economic effects.'' 
And such a tax could be expected to ``reduce domestic oil production 
and increase the level of oil imports.'' The architect of this tax 
during the Carter administration recently called the windfall profits 
tax ``a terrible idea today.''
  Today, we consider real solutions to our national problem. On May 1, 
I introduced the American Energy Production Act of 2008. Obviously, if 
we had Democratic support and help we could make it even better, but we 
had to do this with Republicans, to lay before the American people a 
fact: that there are ways to produce more American oil and natural gas 
without doing any real harm to the American environment. I am pleased 
to have 21 cosponsors on that bill, and I am pleased Senator McConnell 
has offered this legislation as an amendment to the bill currently 
before us. Unfortunately, the other side has not allowed us to consider 
this proposal to address record-high gas prices.
  Speaking of filibusters, on our bill they have insisted there be 60 
votes. That is the equivalent of a filibuster. So you can chalk one up 
for us. They are filibustering the only Energy bill we have seen in a 
while that would produce energy for America.
  I support the bipartisan amendment on the Strategic Petroleum 
Reserve, and I have already indicated to you that I do, and it needs no 
further explanation. I am confident, if enacted, the American Energy 
Production Act--the one we are talking about--will strengthen our 
Nation's security for decades to come. In this legislation, we open 
2,000 of the 19 million acres of the Arctic National Wildlife Refuge. 
And I defy anyone with common sense to seriously contend that 2,000 
acres out of 2 million will harm that wilderness. It can be done with a 
small footprint, and everyone knows it. We have just chosen sides, 
regardless of the real facts. Therefore, I assume the Democrats will 
defeat it again.
  Taken together, these policies enable the production of 24 billion 
barrels of American oil, which would increase our domestic production 
by nearly 40 percent over the next three decades. Opening ANWR alone 
would create thousands of American jobs, provide $3 billion in revenues 
in the next 10 years to the Federal Treasury, and bring on line over 1 
million barrels of oil per day. This amendment also spurs the 
commercialization of coal-derived fuels and oil shale resources. 
Advancement of these policies will be spoken of in more detail by other 
Senators but, clearly, they are things to look at. The American people 
ought to know about them. They are sources--huge sources--of energy 
that can be made in America by Americans for America. With emerging 
economies around the world increasing their thirst for oil, we face a 
new energy challenge in America.

  The world demand for oil continues to grow. America's production of 
oil has fallen to its lowest levels in 60 years. That is because we 
haven't done anything new or significant to add to what we have 
produced for years. If we do not start producing more of our own energy 
resources, we will continue to rely on unstable foreign oil and 
continue to pay a high price. That is what is at stake with today's 
vote. We probably will not win, but we feel very comfortable giving the 
other side an opportunity to vote no again for the production of oil 
and gas that is American, by Americans, for America.
  With that, I yield the floor.
  The ACTING PRESIDENT pro tempore. The Senator from Massachusetts is 
recognized.


                   Employer-Employee Cooperation Act

  Mr. KENNEDY. Mr. President, I yield myself 5 minutes.
  We are going to be voting on some extremely important energy issues, 
and I have expressed my views on those before. I wished to take an 
opportunity to talk about another matter which we will be voting on 
later this morning, early this afternoon, and then will be the subject 
matter that will be before the Senate for the next few days. It is an 
extremely important matter. It deals with our national security; 
primarily homeland security. It deals with the challenges that our 
first responders are faced with. I am talking about our police 
officers, our firefighters, and our first responders. They are the ones 
who are on the cutting edge of our domestic national security.
  We are seeing massive reorganizations of our various institutions 
that have dealt with homeland security. We have seen additional 
resources focused on homeland security. The legislation Senator Gregg 
and I offer will strengthen our national security by including those 
individuals who are on the frontline into the decisionmaking about what 
is helpful and useful in terms of the security of our communities, 
small cities, and large cities all across this Nation. It will give 
them a voice in making judgments and decisions so those decisions and 
judgments are not only going to be made by policymakers and bureaucrats 
but by men and women who are on the ground. The legislation is called 
our Public Safety Employer-Employee Cooperation Act. It is bipartisan 
in nature, and it can make an extraordinary difference.
  We had the opportunity last evening to go over the essential elements 
of the legislation, sort of the dos and the don'ts. There are those who 
have misconstrued this legislation and have misrepresented the 
legislation. We have seen that sort of technique around here in the 
Senate when Members differ with the legislation. They distort it or 
misrepresent it and then differ with it. It is an old technique that is 
used around here.
  We will have the chance this afternoon and tomorrow--and this is a 
notice we will welcome--Senator Gregg and I--will welcome amendments. 
This legislation has in one form or another been before the Senate 
previously. It had extraordinary bipartisan support in the House of 
Representatives. I believe 98 Republicans supported the legislation, 
which is an indication of the breadth of support it has.
  So we will look forward--and we are going to urge our colleagues to 
help us move this legislation, which is of such great importance and 
consequence to the security of our people--we will ask them to help us 
move it forward. This week is Police Week. Police Week goes back 
actually to 1962, when it was named by President Kennedy. Since that 
time, police officers have gathered to pay tribute to those members of 
the force who have lost their lives over the period of the last year. 
It is a very impressive ceremony for those who have not gone to it. I 
have on a number of

[[Page S4051]]

different occasions. But we take time this week to pay tribute to those 
first responders, and we have welcomed their very strong support for 
this legislation.
  This legislation will affect police officers and firefighters. Some 
300,000 police officers in 24 States will benefit from this bill and 
are in strong support of the legislation. We also see support with 
regards to the firefighters: 134,000 firefighters in 24 different 
States will benefit. We have worked very closely with them. These are 
the various groups that support this legislation: The International 
Association of Firefighters; Fraternal Order of Police; the National 
Association of Police Organizations; the International Union of Police 
Associations; the American Federation of State, County, and Municipal 
Employees; and the International Brotherhood of Teamsters.
  So as I say, we will be ready to deal with this right after the 
caucuses that we will have during the noon hour. This legislation will 
hopefully be before the Senate. We are hopeful now. This is a vote on 
the motion to proceed. We ought to at least have that opportunity to 
debate this issue, and we are hopeful we will receive the support from 
both sides of the aisle so we can move forward and debate the issue.
  My time has expired and I yield the floor.
  The ACTING PRESIDENT pro tempore. The Senator from Texas is 
recognized.
  Mrs. HUTCHISON. Mr. President, I rise today to talk about the bill we 
are going to vote on starting at 11 o'clock. We have an amendment filed 
by the distinguished Republican leader. The Senator from New Mexico is 
the prime sponsor of this amendment. I commend Senator Domenici for his 
continuing leadership in the energy arena.
  In January of 2007, when control of Congress changed hands, the price 
of gasoline was $2.33 a gallon. Today, it is $3.73 a gallon. That is a 
60-percent increase, and it is going in that direction even further.
  The reason for the record-high price is simple economics. The global 
demand for energy has soared, especially in fast-rising countries such 
as China and India. Meanwhile, the supply of energy has remained 
largely stagnant. This is a simple, classic economic principle: The law 
of supply and demand. When the demand goes up and the supply stays the 
same, the price goes up. Knowing that, the best way for Congress to 
reduce the price of energy is to increase the supply of energy. We need 
more American oil, more American natural gas, more American clean coal, 
and we need more American nuclear power. That is why I joined the 
ranking member of the Energy Committee to introduce the bill today that 
would do exactly that.
  First, the Strategic Petroleum Reserve. Two weeks ago, I wrote a 
letter to the President, signed by 13 Republican Senators. I noticed it 
was announced by the majority leader that 51 Senators on his side had 
signed the same type of letter in March. I ask unanimous consent that 
the letter be printed in the Record with the signatures of the 13 
Senators.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                  U.S. Senate,

                                   Washington, DC, April 29, 2008.
     The President,
     The White House,
     Washington, DC.
       Dear Mr. President: We write today to request that the U.S. 
     Department of Energy (DoE) immediately halt deposits of 
     domestic crude oil into the U.S. Strategic Petroleum Reserve 
     (SPR). As we enter the busiest driving season of the year. 
     the price of a barrel of West Texas Intermediate crude oil 
     hovers around a record $120.
       The SPR was established in 1975 to provide a supply of 
     crude oil during times of severe supply disruptions. Today. 
     The SPR contains more than 701 million barrels of oil, 
     exceeding our International Energy Program commitments to 
     maintain at least 90 days of oil stocks in reserve.
       High energy prices are having a ripple effect throughout 
     the U.S. economy and exacerbating recessionary pressures. The 
     Energy Information Agency reports that supplies and 
     inventories of crude oil and refined products are above 2007 
     inventories while our demand for gasoline is down. Yet, the 
     price of crude oil has skyrocketed 100% from last year's 
     levels which were just above $63 a barrel in April 2007. 
     Despite these economic realities, the DoE recently solicited 
     contracts to exchange up to 13 million barrels of royalty oil 
     from Federal leases in the Gulf of Mexico for deposits in the 
     SPR.
       Some analysts blame geopolitical instability and disruption 
     in production for the rapid price increases; however, these 
     factors alone do not explain the extraordinary increase in 
     oil prices compared to previous years, when these same 
     challenges were present. Temporarily halting deposits to the 
     reserve can provide some relief because the increased supply 
     of oil available for refinement will send the right signal to 
     all markets that the U.S. Government will take measures 
     necessary to address exorbitant crude oil prices that 
     negatively affect the global economy. We believe, in light of 
     the dramatic increase in oil prices, a temporary halt to 
     deposits into the SPR should be considered until the economy 
     stabilizes.
       I appreciate your attention to this matter and look forward 
     to hearing back from you.
           Sincerely,
         Kay Bailey Hutchison, John Barrasso, Kit Bond, John E. 
           Sununu, Johnny Isakson, Orrin G. Hatch, Jeff Sessions, 
           Saxby Chambliss, Judd Gregg, John Cornyn, Lisa 
           Murkowski, Elizabeth Dole, Sam Brownback, Susan 
           Collins.

  Mrs. HUTCHISON. Mr. President, what we are asking the President to do 
is temporarily halt deposits of oil into the SPR. Today, the SPR holds 
118 days--almost 4 months--of reserve for an emergency in this country.
  I wish to stop now to ask unanimous consent to be added as a 
cosponsor of the Dorgan amendment No. 4737.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Mrs. HUTCHISON. Because what the Dorgan amendment does--and what is 
also included in our bill--is to ask for a temporary halt on any more 
oil going into the SPR. Halting the daily deposits of 76,000 barrels a 
day into the SPR would allow 3 million additional gallons of gasoline 
to be available on the market. If we halted the 13 million barrels of 
oil the Department of Energy has sought contracts for to go into SPR, 
it would be more than the total February 2008 imports from Libya, 
Syria, Kuwait, United Arab Emirates, Egypt, Azerbaijan, and China 
combined.
  The amendment offered today would halt additional contributions to 
the SPR for 180 days and ensure that these resources could be utilized 
immediately in the marketplace. In addition, we would open the grassy 
plains of ANWR, which is unavailable for drilling today. The U.S. 
Geological Survey estimates there could be as much as 10 billion 
barrels of oil in ANWR. This would be almost enough oil to replace what 
we import from Saudi Arabia every day. What would be drilled in ANWR 
isn't near a forest or a stream. It is a grassy plain. It is 2,000 
acres, about the size of National Airport, in an area of ANWR which is 
the size of the State of South Carolina. So drilling in this grassy 
plain would be environmentally safe, and it would make America much 
more independent, much more reliant on ourselves and our resources for 
our energy needs--a place we need to go.
  Another area, the Outer Continental Shelf, could contain as much as 
115 billion barrels of oil.
  Mr. President, I ask unanimous consent that I have 3 more minutes.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Mrs. HUTCHISON. There could be 115 billion barrels of oil in the 
Outer Continental Shelf. That is more than Venezuela's proven reserves 
of 80 billion barrels.
  We need more refinement capacity. This amendment encourages 
refinement expansion to alleviate supply concerns with refined 
petroleum, which is gasoline.
  This amendment we are voting on today would not do much to bring down 
the demand because, in fact, we can't control what China and India are 
demanding in oil and natural gas resources, but it can affect supply. 
That is what Congress has turned a blind eye to doing.
  All they talk about is a windfall profits tax on oil companies. We 
tried that once before and what happened? Jobs went overseas. We had to 
import more from overseas, so we became more dependent on foreign 
sources and we lost jobs for our country. The price would not go down. 
It would just come from foreign sources instead of ourselves. So let's 
don't talk about things that will not help; let's talk about supply, 
which we can help by working together to increase our utilization of 
our own natural resources.
  This year we will spend about $500 billion to import oil. All those 
dollars

[[Page S4052]]

could stay in America, creating good jobs in America and making us 
self-reliant. If there is anything America stands for, it is the spirit 
of self-reliance, of knowing that if we are running into a crisis, if 
our economy is down, that we would be dependent on ourselves because we 
have the resources to meet this demand. We have the resources. Now we 
need the willpower. We need the good old American spirit to say we can 
prevail. We can reduce prices. We can help the American family get over 
the hump. We can do something by relying on ourselves. That is what the 
amendment we are voting on will do.
  I hope the American people will look at these votes. Do they want 
political rhetoric, windfall profits taxes that send jobs overseas or 
do they want real solutions short term, by not putting any oil in SPR 
right now and putting it on the market to start bringing that price 
down and to let those who are hedging on commodities know America is 
going to act. The best we can do for America to show those hedgers we 
are going to act is to say we are going to take the long-term steps. We 
are going to drill in our own areas that we control. We are going to 
put jobs in America. We are going to help the States get their 
royalties if they want to drill offshore. We are going to stand up and 
say: This is America, and we will take care of ourselves with our own 
natural resources. That is the vote today.
  I yield the floor.
  The ACTING PRESIDENT pro tempore. The Senator from North Dakota is 
recognized.
  Mr. DORGAN. Mr. President, I am not going to speak so much about what 
divides us. Today I wish to talk about what would unify us with respect 
to the two energy plans. We are going to vote on an amendment that is a 
bill I offered back in February of this year that would stop putting 
oil underground. Some say that doesn't mean very much in terms of 
energy prices or that it would not accomplish a lot.
  We had testimony before the Senate Energy Committee by economists and 
an energy expert. Dr. Verleger testified that what's coming from the 
Gulf of Mexico is sweet light crude, the most valuable subset of oil. 
Despite the fact that it is a small percentage of the oil usage, it 
could have as much as a 10-percent impact on the price of sweet light 
crude. I don't think we should underestimate the significance of this 
proposal. At a time when oil prices are bouncing up in record highs, 
with oil prices at $120, $124, and $126 a barrel, we have speculators 
playing their fiddle. The oil prices dance up into the stratosphere; 
the economy is damaged; consumers get injured; and industries are going 
belly up.
  The question at this time is, what unites us here? I will tell you 
one thing we can agree on. There are at least 80 Senators who have 
expressed themselves, including all three Presidential candidates. They 
have said let's stop putting oil underground. Is it a reasonable thing 
to do to set oil aside underground? We have something called the 
Strategic Petroleum Reserve. Let me show you what it is. This is what 
it looks like. Instead of oil going into the pipeline so you can 
convert gasoline to your automobile, it is going underground. This is 
what the SPR looks like. Here is where the SPR is being stored--at 
Bryan Mound, Big Hill, West Hackberry, and Bayou Choctaw.
  The SPR is 97 percent full. The question is this: With oil at $126 a 
barrel and gasoline around $4 a gallon or more, and with the American 
consumer being burned at the stake, why should its Government be 
carrying the wood? Why should we be putting oil underground at a time 
of record-high prices? Who thinks it is smart to go out into the 
marketplace and take oil that is that valuable and stick it underground 
when it is having an impact of upward pressure on oil prices? That 
makes no sense at all.
  As I said, all three Presidential candidates have said we ought to 
stop at this time. Eighty Senators have agreed with this decision. 
Somehow, the President and Vice President are insistent that we 
continue to fill the SPR.
  Look, there are a lot of other things happening. Number 1, we need 
more production. I was one of four Senators who introduced the 
legislation, with Senator Domenici, that led to opening Lease Sale 181 
in the Gulf of Mexico. That is additional production, and I am proud 
that became law. It should have been broader, but it got narrowed 
through the legislative process. I have a bill in to expand production 
in the Gulf of Mexico.
  Yes, we need additional production, conservation, efficiency, and 
renewables. We need all those things. We have made progress in some of 
them. Last year, we finally passed reformed CAFE. We increased CAFE 
standards 10 miles per gallon in 10 years. That is a historic 
achievement after 32 long years in this Congress. We set us on a course 
toward renewables.
  There are short-term, intermediate, and long-term solutions. John 
Maynard Keynes says that in the long run we are all dead. How about the 
short term? How about today? I know where there is 70,000 barrels of 
oil, including sweet light crude, that could go into the gas pumps and 
into cars and put downward pressure on gas prices. I know how we can 
take action and so do my colleagues. At least we can agree on that 
piece of legislation today.
  Here is another point. There is unbelievable speculation in the 
commodities market. It is interesting. Let me give you a couple of 
charts that show this. The senior vice president of ExxonMobil said 
last month:

       The price of oil should be about $50 or $55 per barrel.

  Mr. Cazalot, the CEO of Marathon, said:

       $100 oil isn't justified by the physical demand in the 
     marketplace.

  A man who testified before the Energy Committee, Mr. Gheit, a senior 
energy analyst with Oppenheimer, said:

       There is absolutely no shortage of oil, and I am absolutely 
     convinced that oil prices should not be a dime above $55 a 
     barrel. I call it the world's largest gambling hall. It is 
     open 24/7.

  The fact is, we have speculators, hedge funds, and investment banks 
that have never been in the futures market before and are in neck deep. 
They are driving up prices that have very little to do with the 
fundamentals of supply and demand. Should we ignore that and say that 
is OK?
  Mr. President, I think I have consumed 5 minutes. I ask unanimous 
consent for 2 additional minutes.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Mr. DORGAN. Should we say that is OK, let's talk about other 
subjects? I don't think so. If you want to purchase stock on margin, 
you have to put up 50 percent of the money. If you want to control 
$100,000 worth of oil, the subject of such speculation, all you need 
now is a margin requirement between $5,000 and $7,000. It seems to me 
that the margin requirement ought to be increased to the point of 
wringing speculators out of the system. We need a futures market for 
legitimate hedging and for liquidity.
  There are times when speculative bubbles develop. In this case, the 
bubble driving up the price of oil and gasoline at the pumps is 
damaging our economy. A lot of industries are suffering, including 
truckers and the airlines. It is hurting a lot of American families, 
and we can do something about it.
  We have a couple different plans. Let's take the one common part of 
both plans, which is the amendment I offered as a bill in February, and 
pass that today because that will make a difference. Is it a giant 
step? Not at all. Is it a step that is finally at long last in the 
right direction? It is. So instead of getting the worst, let's try to 
get the best of both sides and say this we agree on, this we can do.
  My hope is that at the end of today, at least this Congress will have 
said to the President and Vice President: Stop doing what you are 
doing. The last thing in the world we ought to do is put upward 
pressure on gas and oil prices. We ought to put downward pressure on 
that, and we can do that today with one single vote.
  I yield the floor.
  The ACTING PRESIDENT pro tempore. The Senator from New Mexico is 
recognized.
  Mr. DOMENICI. Mr. President, I say to my friend, Senator Dorgan, I 
have changed my mind about the SPR bill. I think he knows that. People 
wonder about changing your mind. A lot of people change their mind. I 
changed mine because of the real price of oil and because I do believe 
we are not going to harm our strategic reserve by

[[Page S4053]]

this one event. I wish to make the record clear. America needs the 
Strategic Petroleum Reserve. We must have it, and we should not grow 
accustomed to thinking the Strategic Petroleum Reserve is going to 
solve our energy supply problem. Senator Dorgan has never said that. 
But it would not. I will answer some of the remaining questions when I 
wrap up.
  I yield the floor.
  The ACTING PRESIDENT pro tempore. The Senator from Wyoming is 
recognized.
  Mr. ENZI. Mr. President, last weekend, when I traveled around 
Wyoming, it was clear that high energy prices were on everyone's mind. 
It is a trend I have noticed each and every summer for the past several 
years. Each year, our constituents ask us to do something to address 
energy prices. While we talk and talk about what we are doing, rarely 
do we take any meaningful action.
  It is a little different this year because Americans are seeing 
record prices at the pump. Those voices saying ``get to work on this 
problem'' are more numerous. They are louder. Will the anguished calls 
for help make it through the thick and, thus far, shut doors of 
Congress? Americans are caught in a tight spot. Some are asking: How 
can I put food on the table when I cannot afford the gas it takes me to 
get to work? On top of that, the food is more expensive because of the 
fuel it takes to produce and ship it.
  No one in this Chamber has all the answers. No, but we can do 
something. We can act. We can help. The question for me and my 
colleagues in the Senate is, will we? We have the opportunity to do so 
today. We have the opportunity to vote for an amendment that provides 
short-term relief and, at the same time, helps address the long-term 
issues that got us into this situation. I am a cosponsor of the 
McConnell-Domenici amendment, known as the American Energy Production 
Act of 2008, because it is a responsible way to address the need to 
produce more domestic energy and to reduce energy prices.
  The energy situation we are in has been a long time in the making, 
and we are not going to fix it overnight. We don't have enough domestic 
energy to meet our Nation's energy demands, but the American Energy 
Production Act would help change that. It opens an important sliver of 
the Arctic National Wildlife Refuge, ANWR, to environmentally conscious 
leasing and allows for more production from the Outer Continental 
Shelf, with consent of the State. Doing so will help the United States 
produce more of its own energy. Instead of sitting at the trough of 
foreign oil barons with our hands out begging, Americans will produce 
more American energy.
  Later today, I expect to see support for the Dorgan amendment to 
suspend filling of the Strategic Petroleum Reserve. If you are worried 
about roughly 70,000 barrels a day staying off the market for this 
reserve fill, then you should be outraged that 1 million barrels a day 
from ANWR is kept off the market because it was vetoed by President 
Clinton more than 10 years ago. That is a million barrels we would not 
need to purchase from South American dictators, or a million barrels 
from countries who are friendly to those who wish to destroy the United 
States.
  What will Americans say about this vote 10 years from now? Will they 
say: Better late than never, because we passed the American Energy 
Production Act, or will they say: You just didn't get it and now look 
at us suffer for it. The American Energy Production Act recognizes also 
that coal is our Nation's most abundant energy source. It recognizes 
American ingenuity. It recognizes that coal has been turned into diesel 
fuel for half a century, and it encourages the building of coal-to-
diesel facilities in the United States. The United States is the 
``Saudi Arabia of coal.'' Wyoming is the leading coal producer in the 
United States. It makes sense that we use America's most abundant 
energy source at a time when we all agree we are too dependent upon 
foreign energy sources.
  The amendment also includes a number of important provisions that 
will help Wyoming and the Nation. The amendment repeals the mineral 
royalty theft that was included in the fiscal year 2008 Omnibus 
appropriations bill. It allows development of oil shale to move 
forward.
  I support the idea of developing more alternative energy, the use of 
wind energy, and the development of better solar energy technologies. 
As my constituents can tell you, Wyoming is an especially good State 
for wind, and we have high solar potential as well. While we need to 
develop these technologies for the long term, we need all the energy we 
can get.
  We need more domestically produced oil, more wind energy, more 
domestic natural gas, more solar energy, more nuclear energy, and we 
definitely will need more clean coal energy.
  Our Nation's energy policy is haphazard, broken, and it threatens to 
break our country. We need to make meaningful changes to that policy, 
and voting in favor of the American Energy Production Act is the first 
step in the right direction. I hope my colleagues will recognize the 
need to take this step and support the McConnell-Domenici amendment.
  I yield the floor.
  The ACTING PRESIDENT pro tempore. The Senator from New Mexico is 
recognized.
  Mr. BINGAMAN. Mr. President, let me take up to 5 minutes at this 
point. If the Chair will advise me when that 5 minutes has been used, I 
would appreciate it.
  We have two votes coming up related to energy. The first is on the 
McConnell amendment, which is a compilation of various provisions that 
relate to energy but, I argue, do not hold out much promise for 
affecting the price of oil or gas. Following that, we have the vote on 
the proposal that is put forward by the majority leader, Senator Reid, 
with regard to suspending the filling of the Strategic Petroleum 
Reserve for the balance of this year.
  I will be voting against the first amendment and voting for the 
second amendment. I hope my colleagues will do so as well. Let me give 
the reasons why I think we should vote against the Republican leader's 
amendment.
  First, the Republican leader's amendment doesn't do anything to deal 
with the issue of speculation in oil markets. We have had testimony 
repeatedly before our Senate Energy Committee that speculation in these 
markets is a significant factor contributing to the $126-per-barrel 
price of oil we are seeing today. So if someone is concerned--as all of 
us are--about energy, consumers, and the burden that is being place 
upon them, then dampening speculation in these markets should be high 
on our list of work to be done. It is not in the Republican leader's 
amendment.
  Of course, the amendment he proposes also doesn't do anything with 
regard to the weakening of the U.S. dollar, anything with our fiscal 
policies. Yesterday, I went into a discussion about how that is 
contributing to the increase in the price of oil. I think most 
economists would agree with that.
  The second reason I would oppose the Republican leader's amendment is 
that it misses the boat on how to promote more supply. The argument 
being used is the assumption within the amendment that the way to 
promote more supply is we need to open more areas for drilling. And 
particularly we need to open the east coast of the United States for 
drilling offshore on the Outer Continental Shelf, we need to open the 
west coast offshore on the Outer Continental Shelf, and we need to open 
a portion of ANWR, the Arctic National Wildlife Refuge.

  As I say, I think it misses the key issue in that we are opening 
additional areas for drilling at a pretty rapid rate in the onshore 
areas of the United States where oil and gas production occurs and in 
the offshore areas. But additional leases by themselves are not going 
to make a difference to consumers either in the near term or the medium 
term. What we need to be focused on is how we can promote more diligent 
development. Nearly three-quarters of what we have leased domestically 
onshore is not now being produced. A little over three-quarters of what 
we have leased offshore is not being produced, and that is what we 
should be concentrating on--how do we build in incentives for actual 
production in areas we have, in fact, leased.
  Finally, with respect to future lease sales, the Republican leader's 
amendment leaves out the most promising

[[Page S4054]]

area, and that is the area in the gulf coast, particularly the area we 
have still not opened in the original lease sale 181 area of the gulf 
coast. This is something we clearly should be addressing as well.
  As I say, the second vote is going to be on the proposal to suspend 
the filling of the Strategic Petroleum Reserve. A version of that is in 
the Republican leader's amendment, as well as being proposed by Senator 
Reid. I hope we will get a very strong bipartisan vote for that 
provision.
  I do think it is prudent to turn down this compilation of various 
energy-related provisions that has been put forward by the Republican 
leader with the claim that it is going to bring down the price of gas. 
It simply will not.
  Mr. President, I yield the floor.
  The ACTING PRESIDENT pro tempore. The Senator from Louisiana.
  Mr. VITTER. Mr. President, I rise today in strong support of the 
McConnell-Domenici amendment because it does what we need to do to 
address this real crisis in our country--crippling energy prices, 
rising energy prices that hit the pocketbook of every Louisiana family 
I represent and every American family, that is causing grave concern 
about our economic future.
  I am afraid what we heard from the distinguished Senator from New 
Mexico just now is more of the same excuses we have heard for a couple 
of years now: why we can't do this, can't do that, and can't act in 
general. What has that inaction, that paralysis, those excuses all led 
to? I will tell you what it has led to. It has led to soaring energy 
prices. In January 2007, when this Democratic Congress took office, the 
average price of a gallon of gas was $2.33 at the pump. Today, it is 
$3.72--a 60-percent increase. That is what those excuses, that is what 
that inaction has led to.
  We need to do a number of things across the board on the demand side 
and on the supply side. This Domenici-McConnell amendment includes all 
of those. Does it include every one of them? No. No single proposal is 
ever going to include every good idea out there that we probably need 
to act on, but it includes a lot on which we need to act.
  I want to focus on one part of the amendment in particular of which I 
am very supportive, and that is opening more of our Outer Continental 
Shelf to exploration and production.
  I believe one of the most important things in energy policy that we 
have done since the short time I have been in the Senate is to open new 
parts of the Gulf of Mexico with revenue sharing. This provision in the 
Domenici-McConnell amendment will expand on that precedent. It would 
say we can open areas of the Atlantic and the Pacific, but with two 
very important caveats, both of which are great policy. First of all, 
the host State, the State off which the activity would occur, has to 
want the activity, has to agree to it. The Governor has to say: Yes, we 
want this activity off our waters. And secondly, that host State in 
return would get significant revenue sharing, exactly the same revenue 
sharing we passed a few years ago, 37.5 percent to go to the host State 
to meet its environmental or educational or highway or other needs. 
That is sound policy. We passed that policy for new areas of the gulf 
that were opening. We need to expand on that policy to dramatically 
increase our domestic energy production, and we can do that safely and 
in an environmentally friendly way.
  There is much the McConnell-Domenici amendment does that is needed as 
well, but I wanted to highlight that point because it is so absolutely 
crucial and important. It builds on good policy we set a few years ago. 
It expands on that precedent, and I believe expanding on that precedent 
can significantly increase our domestic energy resources in this 
country.
  Do we need to do other things? Absolutely. Do we need to act on the 
demand side further? Absolutely. This isn't brain surgery. Economics 
101 tells us that price has to do with two lines on a graph: the demand 
line and the supply line. We need to mitigate, bring down demand, and 
we need to increase supply. I am for any reasonable policy that does 
those two things. On the demand side, conservation, greater efficiency, 
new sources and forms of energy--absolutely.
  I am going to agree with Senator Dorgan and vote for his amendment 
regarding the Strategic Petroleum Reserve. Like Senator Domenici, I 
have changed my mind on that issue because the increases in price at 
the pump have gotten so dramatic and so outrageous. So that can 
mitigate demand increases as well.
  But as we make all of those efforts on the demand side--and we need 
to do more--we cannot constantly ignore the supply side, particularly 
the domestic supply side. That is exactly what this Congress has done 
for the last 2 years. Mr. President, $2.33 price at the pump then; 
$3.72 price at the pump today. Let's act, and let's act now.
  I yield the floor.
  Ms. COLLINS. Mr. President, I wish today to support the amendment 
offered by the Senator from Nevada, Mr. Reid. It embodies a policy 
change that I have advocated for many months. In January, I wrote to 
the Secretary of Energy and urged the administration to stop filling 
the SPR while oil prices are so high. The Reid amendment would suspend 
acquisition for the Strategic Petroleum Reserve, SPR, until the end of 
the year or until the price of a barrel of oil goes below $75.
  The SPR is an emergency stockpile and an essential safeguard against 
major disruptions in global oil markets. However, the SPR already 
contains nearly 700 million barrels of oil, 97 percent of its current 
storage capacity. This is more than sufficient to meet a crisis.
  Mr. President, our Nation faces record-high energy prices affecting 
almost every aspect of daily life. The prices of gasoline, home heating 
oil, and diesel are creating tremendous hardships for American 
families, truckers, and small businesses. High energy prices are a 
major cause of the economic downturn. Last week, crude oil was trading 
at over $120 per barrel.
  The administration's decision to fill the SPR when oil prices are so 
high defies common sense. In 2005, the Senator from Michigan, Mr. 
Levin, and I joined forces on a bipartisan amendment directing the 
Department of Energy to better manage the Reserve by requiring the 
Department to avoid purchases when prices are high so as not to drive 
up prices further by taking oil off the market. I don't believe the 
Department of Energy is abiding by this law. If it were, the Department 
would not be making purchases while prices are so high.
  It simply does not make sense for the Department of Energy to be 
purchasing oil for the Reserve at a time when oil prices exceed $120 
per barrel. The Federal Government is taking oil off the market and 
thus driving up prices at a time when consumers are struggling to pay 
their fuel bills.
  If the administration stopped purchasing oil for the SPR, the Energy 
Information Administration has estimated that the impact on gas prices 
would be between 4 and 5 cents a gallon. Other experts believe it is 
considerably higher. At a hearing before the Permanent Subcommittee on 
Investigations in December, one energy expert, Philip Verleger, said, 
``DOE's actions added between 5 and 20 percent to the price of oil.'' 
It is a bad deal for taxpayers for the Department of Energy to be 
purchasing oil when prices are so high.
  There are other short-term steps we must take to address the energy 
crisis--for example, regulating energy futures markets and repealing 
tax breaks for major oil companies--but suspending filling the SPR is a 
key step that I hope we approve tomorrow.
  In the long term, our challenge to address energy prices is, of 
course, to reduce our reliance on imported oil. We need to pursue the 
goal of energy independence just as fervently as the Nation embraced 
President Kennedy's goal in 1961 of putting a man on the Moon. Energy 
independence, stable energy costs, and environmental stewardship are 
goals that are within our reach. I urge my colleagues to get us started 
on the effort by supporting this proposal to suspend filling the 
Strategic Petroleum Reserve.
  Mr. DORGAN. Mr. President, how much time remains on each side?
  The ACTING PRESIDENT pro tempore. The majority has 6 minutes 18 
seconds. The Senator has 7 minutes remaining.
  Mr. DOMENICI. Mr. President, as I understand it, the other side is 
going to have only one speaker to use their

[[Page S4055]]

time. I am trying to find the Senator from Texas. He wanted to speak. 
Let me take a couple of minutes. If he gets here, I will yield the 
floor as soon as he arrives.
  The ACTING PRESIDENT pro tempore. The Senator from New Mexico.
  Mr. DOMENICI. Mr. President, first, I wish to say that my good 
friend, my fellow Senator from New Mexico spoke about speculation in 
this oil market. There may be some. We heard testimony there may be. So 
everybody knows, there is nothing before the Senate that the Democrats 
propose regarding speculation. They just have a one-shot bill, and it 
is pretty good, but it is not an energy policy. Probably most of us are 
going to vote for it. That is what Senator Dorgan proposed.
  As I indicated, I changed my mind. If people are wondering about 
that, I was reading about economic history, and I read where John 
Maynard Keynes, the great economist, was asked: Why did you change your 
mind? He said: When the facts change, I change my mind. That is what 
happened here with reference to SPR. The facts changed, and I changed 
my mind.
  The good Senator from New Mexico, my colleague, also said we have a 
big problem with the weakening of the dollar. I hope he doesn't intend 
to imply by that, when we find we can strengthen the dollar, then we 
will solve the energy problem. I don't know that we know how to do that 
one any quicker than we do the energy crisis. I don't think that would 
accomplish anything.
  We have a lot going on in the gulf, so we said let's let those 
continue. That is what the Domenici bill says. But we say the rest of 
the offshore around America--and incidentally, there is probably more 
than any of us know in offshore America. We probably would send such a 
big signal to the world if we decided to move on that. That alone would 
have a positive impact.
  In addition, the bill before the Senate does a lot in a number of 
areas that have not been talked about very much. It would cause the 
world to take another look and to say: America is serious, they are 
really going to do something about their energy problems.
  Mr. President, I now yield the remainder of the time to the Senator 
from Texas.
  The ACTING PRESIDENT pro tempore. The Senator from Texas.
  Mr. CORNYN. Mr. President, I ask unanimous consent to speak for up to 
5 minutes.
  The ACTING PRESIDENT pro tempore. Is there objection?
  Mr. DORGAN. Mr. President, I am required by our leadership to object 
because they want to get the vote off on the time predetermined. I 
apologize for that, but that is what I am required to do.
  The ACTING PRESIDENT pro tempore. Objection is heard.
  Mr. CORNYN. Mr. President, how much time remains?
  The ACTING PRESIDENT pro tempore. Four minutes.
  Mr. CORNYN. Mr. President, one thing has been accomplished by the 
debate leading up to this morning's vote; that is, Congress finally--
finally--has acknowledged the existence of the law of supply and 
demand. If we look at these two votes we are going to have this 
morning, first is the McConnell-Domenici amendment, of which I am proud 
to be a cosponsor, which would produce, if implemented, potentially up 
to 3 million additional barrels of oil a day from the United States of 
America--3 million--making us less dependent on imported oil from some 
of our Nation's enemies, countries such as Iran and Venezuela that are 
part of OPEC, the Organization of Petroleum Exporting Countries.
  Alternatively, our friends on the other side of the aisle have 
proposed--and I will vote for it--a temporary suspension of putting oil 
into the Strategic Petroleum Reserve. But how much does that represent? 
It represents 70,000 barrels of oil that would not be put in the 
Strategic Petroleum Reserve and would be available on the open market 
as an additional supply of oil, which is then available to be refined 
into gasoline. I suspect it will have some modest impact on the price 
of gasoline at the pump, maybe 3 to 5 cents a gallon. But if we think 
70,000 barrels of additional oil into the open market will be 
beneficial in terms of bringing down the price of gasoline, how much 
more beneficial would it be to have 3 million additional barrels of oil 
produced from our country out on the open market available for refining 
into gasoline to help bring down the price of gas at the pump?
  I am pleased that our colleagues have recognized the importance of 
the law of supply and demand, something Congress has turned a blind eye 
to for lo these many years as we put so much of America's natural 
resources out of bounds when it comes to developing those resources, 
and, of course, we know what the consequences of that have been, with 
$3.71 average price for gasoline in America today and the price of oil 
on the spot market bouncing up around $125 a barrel.
  I don't know whether this amendment, of which I am proud to be a 
cosponsor, could produce ultimately 3 million new barrels of American 
oil each day. I don't know whether it will get the requisite 60 votes. 
But if it does not, when gasoline is $3.71 a gallon and oil is $125 a 
barrel, I wonder if the same vote, if we have it again when gasoline is 
$4 a gallon and oil is $150 a barrel or when gasoline is $4.50 a gallon 
and the price of oil is even higher, at what point the Congress, the 
Senate is going to listen to the American people and say: We need some 
help; we need some relief.
  Now that Congress has acknowledged the importance of additional 
supply in terms of bringing down the price at the pump, ultimately it 
is my hope our colleagues will vote, at least 60 of us, for the 
Domenici-McConnell amendment. I think the American consumers would be 
the beneficiary of that. I urge my colleagues to vote for the 
amendment.
  I yield the floor.
  The ACTING PRESIDENT pro tempore. Time has expired.
  The Senator from North Dakota has 6 minutes remaining.
  Mr. DORGAN. Mr. President, let me conclude with a couple of thoughts. 
First of all, my colleague from New Mexico described the issues of 
speculation a bit. We do, in fact, in our larger proposal that we 
announced last week, have a provision dealing with speculation. And it 
is important that we do that because speculation is part of what is 
driving these prices. I showed comments from executives of some of the 
largest oil companies in this country that said there is no 
justification for the current price given supply and demand.
  They said the price of oil should not be much above $50, $60, $70 a 
barrel. So what is happening? Well, let me come to that in a moment. 
Let me say, first of all, my hope is that today, here on the floor of 
the Senate, we will decide to do some good things.
  Now, how do you do good things? You try to find areas of common 
interest and legislate moving ahead where you can. That is what Senator 
Reid has suggested in the underlying amendment that we will vote on 
dealing with stopping and halting the putting of oil underground in the 
Strategic Petroleum Reserve. This is something I introduced in the 
Senate back in February.
  Now, as I said before, when the American consumer is being burned at 
the stake by high gas prices, its Government ought not be carrying the 
wood. I mean, it is that simple. We can do something about this.
  We are talking about 70,000 barrels a day, 70,000 barrels every 
single day of sweet light crude that we are taking off the market. Dr. 
Philip Verleger, an economist and energy analyst, testified before the 
Energy Committee on the effects of such a move. He said although it is 
only three-tenths of a percent of usage, because it is sweet light 
crude, the most valuable subset of oil, it could have up to as much as 
a 10-percent effect on the price of oil.
  So it seems to me what we do is, do what the Republicans and 
Democrats have now generally come together to say we should do, and say 
to the President: Look, you cannot put 70,000 barrels of oil 
underground every day. You cannot do that. The Strategic Petroleum 
Reserve is 97 percent filled, 97 percent.
  Now, oil is $120, $126 a barrel; gas is going to $4 a gallon. Let me 
describe the situation we all understand that we face on this planet of 
ours. We stick straws in the planet and suck oil out. We suck out 85 
million barrels every day. We are required to use one-fourth of that in 
this little spot of geography on the planet called the United States of 
America.

[[Page S4056]]

  Let me say that again. We take 85 million barrels a day, and we need 
one-fourth of it to be used in the United States. Now, 60 percent of 
that which we use comes from outside of our country. That holds us 
hostage to others. And 70 percent of the oil we use in this country is 
used to fuel vehicles. So vehicles are an important part of this issue. 
I am proud to say this Congress, with this majority and some minority 
help, has passed for the first time in 32 years an increase of 10 miles 
per gallon in the next 10 years of CAFE standards. This will lead to 
better automobile efficiency and better gas mileage.
  We made some progress in other areas. We opened production in Lease 
181 in the Gulf of Mexico where there are substantial reserves. We made 
progress in the biofuels ethanol standards and renewable fuels 
standards. We have made some progress on all of those issues, but we 
have people coming to the floor today to say: Well, gas is $4 a gallon. 
Let's open ANWR. That means we get oil in 10 years.
  As John Maynard Keynes said, in the long run we are all dead. What 
can we do in the short term? At least today, on Tuesday, we can at 
least do what we both believe--that is, what the minority and majority 
believe is appropriate--and that is stop putting oil underground and 
put some downward pressure on gas prices and oil prices. Give the 
consumer an opportunity to see some decent prices.
  This speculation in the futures market is speculation that is driving 
up prices. We want to do something about that as well. But at least 
today we have one common theme; we can increase supply by 70,000 
barrels a day of sweet light crude. Instead of it going into the supply 
that comes through the pump into the cars, which puts downward pressure 
on gasoline, it is now going underground, underground in the Strategic 
Petroleum Reserve. It makes no sense at all.
  So I am saying: Let's stop doing bad things and let's start doing 
good things. We can start by taking the first step in doing that today.
  Mr. President, how much time remains?
  The ACTING PRESIDENT pro tempore. There remains 1 minute 20 seconds.
  Mr. DORGAN. Let me make one additional point, if I can. It does not 
relate specifically to this amendment, but this issue of the free 
market. You have an OPEC cartel behind closed doors. You have oil 
companies that are bigger through mergers. You have a futures market 
that is now rife with speculation. There is no free market. So the 
American people deserve, it seems to me, a Congress that will stand up 
and take some steps to put some downward pressure on gasoline prices.
  That is a step we can take today. It is a step that is not a giant 
step, but it is a step in the right direction that will put downward 
pressure on gas prices. It will help this country. My hope is, 
following this vote, we will see that both parties can contribute to 
something when we agree on it. I think this will be a good day to put 
downward pressure on gas prices.


                           Amendment No. 4737

  Mr. President, I call up amendment No. 4737.
  The ACTING PRESIDENT pro tempore. The clerk will report the 
amendment.
  Mr. DOMENICI. Do we not have 1 minute left on each side? The 
amendment is not in order while time remains.
  The ACTING PRESIDENT pro tempore. The amendment is simply being 
reported. We will have 2 minutes equally divided.
  The clerk will report the amendment.
  The legislative clerk read as follows:

       The Senator from North Dakota [Mr. Dorgan], for Mr. Reid, 
     for himself and Mr. Dorgan, Mr. Bingaman, Mrs. Boxer, Mr. 
     Levin, Ms. Stabenow, Mr. Leahy, Mr. Schumer, Mr. Brown, Mr. 
     Sanders, Mr. Durbin, Mr. Kerry, Mr. Menendez, Mr. Salazar, 
     Ms. Landrieu, Mr. Carper, Mr. Inouye, Mr. Lautenberg, Mr. 
     Reed, Mr. Harkin, Mr. Domenici, and Mrs. Hutchison, proposes 
     an amendment numbered 4737 to amendment No. 4707.

  Mr. DORGAN. Mr. President, I ask unanimous consent that the reading 
of the amendment be dispensed with.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  The amendment is as follows:

  (Purpose: To increase the supply and lower the cost of petroleum by 
 temporarily suspending the acquisition of petroleum for the Strategic 
                           Petroleum Reserve)

       At the appropriate place, insert the following:

     SEC. __. SUSPENSION OF PETROLEUM ACQUISITION FOR STRATEGIC 
                   PETROLEUM RESERVE.

       (a) In General.--Except as provided in subsection (b) and 
     notwithstanding any other provision of law, during the period 
     beginning on the date of enactment of this Act and ending on 
     December 31, 2008--
       (1) the Secretary of the Interior shall suspend acquisition 
     of petroleum for the Strategic Petroleum Reserve through the 
     royalty-in-kind program; and
       (2) the Secretary of Energy shall suspend acquisition of 
     petroleum for the Strategic Petroleum Reserve through any 
     other acquisition method.
       (b) Resumption.--Not earlier than 30 days after the date on 
     which the President notifies Congress that the President has 
     determined that the weighted average price of petroleum in 
     the United States for the most recent 90-day period is $75 or 
     less per barrel--
       (1) the Secretary of the Interior may resume acquisition of 
     petroleum for the Strategic Petroleum Reserve through the 
     royalty-in-kind program; and
       (2) the Secretary of Energy may resume acquisition of 
     petroleum for the Strategic Petroleum Reserve through any 
     other acquisition method.
       (c) Existing Contracts.--In the case of any oil scheduled 
     to be delivered to the Strategic Petroleum Reserve pursuant 
     to a contract entered into by the Secretary of Energy prior 
     to, and in effect on, the date of enactment of this Act, the 
     Secretary shall, to the maximum extent practicable, negotiate 
     a deferral of the delivery of the oil for a period of not 
     less than 1 year, in accordance with procedures of the 
     Department of Energy in effect on the date of enactment of 
     this Act for deferrals of oil.


                           Amendment No. 4720

  The ACTING PRESIDENT pro tempore. There now will be 2 minutes of 
debate equally divided prior to a vote on amendment No. 4720.
  Mr. DOMENICI. That means 1 minute each?
  The ACTING PRESIDENT pro tempore. Correct.
  Mr. DOMENICI. On behalf of the amendment, I wish to say whoever is 
interested in what is going on today should know that Democrats speak 
of doing other things to bring the price down, but the only thing we 
are really doing is the amendment of the Senator from North Dakota on 
SPR. We all agree with that.
  That is a temporary 7-month deferral of purchases. Clearly, if it 
does anything, it will be extremely temporary. All of the other things 
that are spoken about, none of them are in this bill, whether it has to 
do with fraud, speculation, or whatever.
  On our side we have at least said: Let's start coal to liquid, a 
great American resource. Let's start offshore around America. Let's 
start on ANWR. Let's start moving on oil shale. Let's accelerate 
battery research, which will move us toward automobiles that can plug 
in, which will be a big American boon.
  So there are lots of pluses. There is a lot of rhetoric. And there is 
one amendment that the Democrats offer that we agree upon. I believe 
those people interested in production should vote for the Domenici 
amendment and tell the American people the truth: We can produce in 
America and put pressure on the world markets and reduce the price of 
oil.
  I yield the floor.
  The ACTING PRESIDENT pro tempore. The Senator from New Mexico.
  Mr. BINGAMAN. Mr. President, I urge Senators to vote against the 
McConnell amendment. It is a compilation of various proposals. The main 
thrust of it is to try to lease more Federal land. People should 
understand that we have been leasing a great deal of Federal land 
onshore. That pie chart on the left is offshore, and the Outer 
Continental Shelf, that is the pie chart on the right.
  We currently have 31 million acres of land that is leased and is not 
producing. What we need to do is to get diligent in the development of 
these areas that are already leased.
  Offshore, the same thing; the Outer Continental Shelf has 33 million 
acres that are not producing. So this amendment is a compilation of 
energy-related provisions that are put into the McConnell amendment. It 
is not going to bring down the price of gas at the pump.
  I urge Senators to oppose it and then to support the second vote on 
the proposal to suspend the filling of the Strategic Petroleum Reserve.

[[Page S4057]]

  I yield the floor.
  The ACTING PRESIDENT pro tempore. The question is on agreeing to 
amendment No. 4720.
  Mr. BINGAMAN. Mr. President, I ask for the yeas and nays.
  The ACTING PRESIDENT pro tempore. Is there a sufficient second?
  There appears to be a sufficient second.
  The clerk will call the roll.
  The legislative clerk called the roll.
  Mr. KYL. The following Senators are necessarily absent: the Senator 
from Oklahoma (Mr. Inhofe) and the Senator from Arizona (Mr. McCain).
  The ACTING PRESIDENT pro tempore. Are there any other Senators in the 
Chamber desiring to vote?
  The result was announced--yeas 42, nays 56, as follows:

                      [Rollcall Vote No. 123 Leg.]

                                YEAS--42

     Alexander
     Allard
     Barrasso
     Bennett
     Bond
     Brownback
     Bunning
     Burr
     Chambliss
     Coburn
     Cochran
     Corker
     Cornyn
     Craig
     Crapo
     DeMint
     Domenici
     Ensign
     Enzi
     Graham
     Grassley
     Gregg
     Hagel
     Hatch
     Hutchison
     Isakson
     Kyl
     Landrieu
     Lugar
     McConnell
     Murkowski
     Roberts
     Sessions
     Shelby
     Specter
     Stevens
     Sununu
     Thune
     Vitter
     Voinovich
     Warner
     Wicker

                                NAYS--56

     Akaka
     Baucus
     Bayh
     Biden
     Bingaman
     Boxer
     Brown
     Byrd
     Cantwell
     Cardin
     Carper
     Casey
     Clinton
     Coleman
     Collins
     Conrad
     Dodd
     Dole
     Dorgan
     Durbin
     Feingold
     Feinstein
     Harkin
     Inouye
     Johnson
     Kennedy
     Kerry
     Klobuchar
     Kohl
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Martinez
     McCaskill
     Menendez
     Mikulski
     Murray
     Nelson (FL)
     Nelson (NE)
     Obama
     Pryor
     Reed
     Reid
     Rockefeller
     Salazar
     Sanders
     Schumer
     Smith
     Snowe
     Stabenow
     Tester
     Webb
     Whitehouse
     Wyden

                             NOT VOTING--2

     Inhofe
     McCain
  The ACTING PRESIDENT pro tempore. Under the previous order, requiring 
60 votes for adoption of this amendment, the amendment is withdrawn.


                           Amendment No. 4737

  There are now 2 minutes, equally divided, prior to a vote on the Reid 
amendment.
  Who yields time?
  The Senator from North Dakota.
  Mr. DORGAN. Mr. President, let me take the 1 minute.
  This is a piece of legislation I introduced in February of this year. 
The Strategic Petroleum Reserve is 97 percent filled. We have oil and 
gas prices going through the roof in this country. We are putting 
70,000 barrels of oil underground every day. It is a subset of the most 
valuable kind of oil: Sweet light crude, coming from the Gulf of 
Mexico.
  We heard testimony before the Senate Energy Committee that even 
though it is a small part of our oil usage, this subset of oil--the 
70,000 barrels a day put underground--could have an impact of up to 10 
percent of the price of oil. I am not suggesting this does everything, 
but it is a step in the right direction.
  As I said earlier, when the American consumer is being burned at the 
stake by energy prices, the Government ought not be carrying the wood. 
Sticking oil underground is wrong at this point in time, and this 
amendment simply says: Stop it. Halt it.
  Mr. LEVIN. Mr. President, I support the amendment to stop deliveries 
of oil into the Strategic Petroleum Reserve, SPR.
  Crude oil prices reached a record high recently of $126 per barrel, 
leading to record highs in the price of other fuels produced from crude 
oil, including gasoline, heating oil, diesel fuel, and jet fuel. With 
prices going through the roof, it is the wrong time for the Department 
of Energy, DOE, to take millions of barrels of high-priced oil off the 
market and put it into the SPR. Instead of reducing supplies by taking 
oil off the market and increasing the price of oil, the DOE should be 
looking for ways to decrease the price of oil. One step is a moratorium 
on filling the SPR until oil prices are lower.
  Unfortunately, the DOE is contributing to the current price spike by 
filling the SPR regardless of the cost of crude oil or the petroleum 
products that are refined from crude oil.
  There are three major problems with the DOE's insistence on putting 
high-priced oil into the SPR. First, by placing oil into the SPR the 
DOE is reducing the supply of crude oil and putting upward pressure on 
the price of oil. Second, by placing very expensive crude oil into the 
SPR, the DOE is significantly increasing the cost of the SPR program to 
the taxpayers. Third, the DOE's approach runs counter to the direction 
provided by the Congress in the Energy Policy Act of 2005, which 
requires the DOE to fill in the SPR in a manner that minimizes the 
impact upon prices and the costs to the taxpayers.
  The DOE is currently taking about 70,000 barrels per day of crude oil 
off the market and putting it into the SPR. For the first half of 2008, 
this will total to about 10 million barrels of crude oil. This is 
reducing our inventories of crude oil and refined products, such as 
gasoline, just at a time when our refineries need to be running at 
maximum to make gasoline for the spring and summer driving seasons. The 
DOE also has asked for bids for another 6-month program to fill the 
SPR, beginning later this year. If the DOE is permitted to continue 
with this program, it will take millions more barrels of oil off the 
market beginning sometime later this year.
  Under the basic economic principle of supply and demand, reducing the 
supply of crude oil available to U.S. refineries will increase the 
price of oil and gasoline. Even the DOE agrees with this basic economic 
principle. Mr. Guy Caruso, the head of the DOE's Energy Information 
Administration, testified to the Congress earlier this year that an SPR 
fill of 100,000 barrels per day would add about $2 per barrel to the 
price of oil. Last December, Dr. Philip Verleger testified that the SPR 
fill was adding about $10 per barrel to the price of crude oil. 
Economists may disagree on the amount of the increase, but now there 
should be no doubt that the DOE is increasing the price of oil by 
filling the SPR at this time. The DOE acknowledges this. The DOE should 
be working to lower oil prices, not helping to boost them to record 
highs.
  DOE says the amount of oil it is putting into the SPR is 
insignificant compared to total global supply. This is the wrong 
comparison. The amount of oil DOE is putting into the SPR represents a 
significant marginal increase in the demand for oil. When supply and 
demand are closely balanced, a marginal increase in demand can have a 
very large impact on price. This is precisely the situation we are in 
today. Supply and demand are very closely balanced. Adding a demand of 
millions of barrels of oil over a period of several months can have a 
very significant impact on the amount of oil on the market or in 
inventories. In a tight market, taking millions of barrels off the 
market can indeed have a major impact upon oil prices.
  When the DOE fills the SPR it does not have to actually purchase any 
crude oil. Instead, the DOE takes oil that is paid to the Federal 
Government as royalties for oil produced by private oil companies on 
offshore oil leases in the Gulf of Mexico and trades it back to private 
oil companies for oil that is then placed into the SPR. Thus, the DOE's 
program to acquire oil for the SPR does not require any Federal 
appropriations. But that doesn't mean the program doesn't cost the 
taxpayers any money. In fact, the opposite is true--the SPR program 
costs the taxpayers a lot of money. The higher the price of oil, the 
more it costs the taxpayers. This is because instead of selling the 
royalty oil on the open market at whatever the market price of oil is, 
recently as much as $126 a barrel, the DOE is taking that oil off the 
market, trading it for oil that meets the specifications of oil for the 
SPR, and leaving taxpayers without the revenue that would be created by 
selling tens of millions of barrels of oil. In essence, the taxpayers 
are paying the market price of oil for each barrel of oil placed into 
the SPR.
  A moratorium on filling the SPR until prices are lower would save the 
taxpayers money. If the DOE were to acquire SPR oil at $75 per barrel 
instead of $125 per barrel, it would save $50 per barrel. For 10 
million barrels, that would add up to $500 million. Delaying the 
filling of the SPR would not affect or harm our national security or 
our energy security. The SPR is currently about 97 percent full, with

[[Page S4058]]

slightly more than 700 million barrels of oil. This amount of oil is 
large enough to ensure that we are prepared for any contingencies that 
the SPR is designed to cover.
  To date, over the entire life of the SPR the largest withdrawal of 
oil from the SPR has been for about 30 million barrels. The amount of 
oil in the SPR today already is far more than has ever been needed to 
cover market disruptions.
  The DOE's policy to fill the SPR at the same rate regardless of the 
effect on oil prices or taxpayer costs runs counter to the intent of 
Congress in section 301 of the Energy Policy Act of 2005, which directs 
DOE to consider and minimize the effects on oil prices and costs to the 
taxpayers when acquiring oil for the SPR. I sponsored the amendment, 
along with Senator Collins, that became this provision in the law. We 
did not intend this to simply be a formality, whereby in every case DOE 
would simply conclude that the effect on price was insignificant. Yet 
that seems to be how DOE is applying this provision.

  In 2003, the Permanent Subcommittee on Investigations, which I chair, 
completed a detailed investigation of the SPR fill program. The 
subcommittee's 2003 report is titled ``U.S. Strategic Petroleum 
Reserve: Recent Policy Has Increased Costs to Consumers But Not Overall 
U.S. Energy Security.'' It can be found on the Subcommittee's Web site. 
The investigation found that in 2002 the Bush administration changed 
the DOE's policy on how it would fill the SPR, and that this change in 
policy increased the price of oil but not our overall energy security.
  Before the Bush administration changed the DOE's policy on filling 
the SPR, the DOE sought to put more crude oil into the SPR when 
supplies were plentiful and prices low and less crude oil into the SPR 
when supplies were scarce and prices high. The DOE also would allow oil 
companies to defer deliveries for up to a year when supplies were 
tight, provided that the oil companies would deposit more oil into the 
SPR at the end of the deferral period. Through this deferral policy, 
the DOE was able to obtain additional SPR oil for no additional cost to 
the taxpayer. This policy made good sense.
  As my subcommittee's report documented, in 2002 the White House 
directed DOE to change its policy. Instead of allowing the DOE to 
continue with its sensible policy, the White House directed the DOE to 
fill the SPR at the same rate, regardless of market conditions. The new 
policy also prohibited the DOE from accepting any deferrals, regardless 
of market conditions. The career DOE staff vigorously protested the 
changes ordered by the White House. The career staff pointed out that 
filling the SPR in times of tight supplies and high prices would push 
prices up and that not allowing any deferrals would cost the taxpayers 
more money. The career staff also argued that the old policy followed 
good business judgment and the new policy would be difficult to defend 
under sound business principles. These memos are included as exhibits 
to the subcommittee's 2003 report. The DOE career staff's 
recommendations were rejected, however, and the current policy was 
adopted.
  Following the issuance of this report, in early 2003, I asked the 
Department of Energy to suspend its filling of the SPR until prices had 
abated and supplies were more plentiful. The DOE refused to change 
course and continued the SPR fill without regard to market supplies or 
prices. In response, I offered a bipartisan amendment, with Senator 
Collins, to the Interior appropriations bill--which provides funding 
for the Strategic Petroleum Reserve program--to require the DOE to 
minimize the costs to the taxpayers and market impacts when placing oil 
into the SPR. The Senate unanimously adopted our amendment, but it was 
dropped from the conference report due to the Bush administration's 
continued opposition.
  The next spring, I offered another bipartisan amendment, also with 
Senator Collins, to the budget resolution expressing the sense of the 
Senate that the administration should postpone deliveries into the SPR 
and use the savings from the postponement to increase funding for 
national security programs. The amendment passed the Senate by a vote 
of 52 to 43. That fall, we attempted to attach a similar amendment to 
the Homeland Security appropriations bill that would have postponed the 
SPR fill and used the savings for homeland security programs, but the 
amendment was defeated by a procedural vote, even though the majority 
of Senators voted in favor of the amendment, 48 to 47.
  The next year, the Senate passed the Levin-Collins amendment to the 
Energy Policy Act of 2005 to require the DOE to consider price impacts 
and minimize the costs to the taxpayers and market impacts when placing 
oil into the SPR. The Levin-Collins amendment was agreed to by the 
conferees and signed into law as section 301 of the Energy Policy Act 
of 2005.
  But, unfortunately, passage of this provision has had no effect upon 
the DOE's actions. The DOE continues to fill the SPR regardless of the 
market effects of buying oil, thereby taking oil off the market and 
reducing supply by placing it into the SPR. In the past year, no matter 
what the price of oil or market conditions, the DOE has consistently 
said that the market effects are negligible and claimed that there is 
no reason to delay filling the SPR, effectively ignoring the section 
301 requirements of the Energy Policy Act. The result is that we have 
the current contradiction of DOE depositing oil into the SPR at the 
same time the President is urging OPEC to put more oil on to the 
market.
  Now is not the time to be filling the SPR. When oil prices are at 
record highs, we should be looking for ways to increase oil supplies 
and reduce prices. The Department of Energy is doing just the opposite. 
It is taking oil off the market and increasing prices, doing so at 
great costs to taxpayers and despite enacted law requiring that they do 
otherwise. There is now a strong bipartisan consensus to put a halt to 
the administration's misguided SPR policy. I urge my colleagues to vote 
for this amendment to postpone the filling of the SPR until oil prices 
have fallen to lower levels.
  The ACTING PRESIDENT pro tempore. The Senator from New Mexico.
  Mr. DOMENICI. Mr. President, I want the Republicans to know I have 
changed my mind over the past 3 or 4 weeks, and it is simply because 
the price of oil is now up to $125 a barrel--perhaps in real dollars 
$110. I think for 7 months to stop filling SPR could have a chance of 
reducing the price by a small amount.
  Make no bones about it now, this is no big energy policy. This is one 
little thing we can do, and I think we ought to go ahead and do it. I 
know there are some who take the fact that we need a big reserve very 
seriously, and they think we ought to continue to fill it even more 
than we are, and I respect those views. But with reference to this 
amendment, by Senator Dorgan, I think we ought to support it and at 
least do one positive thing. It was in our bill, incidentally, as one 
of a number of positive things we would do, including Alaska, which is 
complained so much about. It would produce a million barrels 
permanently, more or less. This is 70,000 barrels one time--so we 
understand.
  I yield the floor.
  Mr. President, I ask for the yeas and nays.
  The ACTING PRESIDENT pro tempore. All time has expired.
  Is there a sufficient second?
  There is a sufficient second.
  The question is on agreeing to the amendment.
  The clerk will call the roll.
  The legislative clerk called the roll.
  Mr. KYL. The following Senators are necessarily absent: the Senator 
from Oklahoma (Mr. Inhofe) and the Senator from Arizona (Mr. McCain).
  The ACTING PRESIDENT pro tempore. Are there any other Senators in the 
Chamber desiring to vote?
  The result was announced--yeas 97, nays 1, as follows:

                      [Rollcall Vote No. 124 Leg.]

                                YEAS--97

     Akaka
     Alexander
     Barrasso
     Baucus
     Bayh
     Bennett
     Biden
     Bingaman
     Bond
     Boxer
     Brown
     Brownback
     Bunning
     Burr
     Byrd
     Cantwell
     Cardin
     Carper
     Casey
     Chambliss
     Clinton
     Coburn
     Cochran
     Coleman
     Collins
     Conrad
     Corker
     Cornyn
     Craig
     Crapo
     DeMint
     Dodd
     Dole
     Domenici
     Dorgan
     Durbin
     Ensign
     Enzi
     Feingold
     Feinstein
     Graham
     Grassley
     Gregg
     Hagel
     Harkin

[[Page S4059]]


     Hatch
     Hutchison
     Inouye
     Isakson
     Johnson
     Kennedy
     Kerry
     Klobuchar
     Kohl
     Kyl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Lugar
     Martinez
     McCaskill
     McConnell
     Menendez
     Mikulski
     Murkowski
     Murray
     Nelson (FL)
     Nelson (NE)
     Obama
     Pryor
     Reed
     Reid
     Roberts
     Rockefeller
     Salazar
     Sanders
     Schumer
     Sessions
     Shelby
     Smith
     Snowe
     Specter
     Stabenow
     Stevens
     Sununu
     Tester
     Thune
     Vitter
     Voinovich
     Warner
     Webb
     Whitehouse
     Wicker
     Wyden

                                NAYS--1

       
     Allard
       

                             NOT VOTING--2

     Inhofe
     McCain
  The ACTING PRESIDENT pro tempore. Under the previous order requiring 
60 votes for the adoption of this amendment, the amendment is agreed 
to.
  The amendment (No. 4737) was agreed to.
  Mr. REID. Mr. President, first I move to reconsider that vote.
  Mr. DURBIN. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. REID. Mr. President, I am going to ask unanimous consent, if 
everyone would be kind enough to listen to me--we just passed an 
amendment by 97 votes, I think I heard the Chair announce. I would 
therefore ask, as a result of that vote, that the Senate--the one we 
just concluded--I now ask unanimous consent that the Senate proceed to 
a bill, which is at the desk, which encompasses the text of this SPR 
amendment which the Senate just adopted; that the bill be read a third 
time, passed, and the motion to reconsider be laid upon the table, and 
that there be no intervening action or debate.
  Mr. DOMENICI. I object.
  Mr. REID. Mr. President, we could have this out of here today. The 
House could take care of it either tonight or tomorrow and be on the 
President's desk on Wednesday. I have been told by my distinguished 
friend, Senator Domenici, that there is going to be an objection on the 
other side. I think it is really unfortunate. That is one reason people 
are a little concerned about our conduct here. We just passed something 
by almost 100 votes, and someone now is objecting to taking this up as 
a bill. I think that doesn't make a lot of sense. I am terribly 
disappointed that we have more of this stalling and obstructionism that 
has gone on this entire Congress.
  The ACTING PRESIDENT pro tempore. The Senator from New Mexico.
  Mr. DOMENICI. Mr. President, I did object, and I object now.
  The ACTING PRESIDENT pro tempore. Objection is heard.
  Mr. REID. Mr. President, I now ask unanimous consent that the 
previous order with respect to S. 2284 be further modified to provide 
that following third reading of S. 2284, the Banking Committee be 
discharged from further consideration of H.R. 3121, the House 
companion, and the Senate then proceed to its consideration; that all 
after the enacting clause be stricken, and the text of S. 2284, as 
amended, be inserted in lieu thereof; that the bill be read a third 
time, and the Senate then vote on passage of H.R. 3121; that upon 
passage of H.R. 3121, S. 2284 be returned to the calendar, with the 
remaining provisions of the previous order remaining in effect, and 
without further intervening action or debate.
  The ACTING PRESIDENT pro tempore. Is there objection?
  Mr. DORGAN. Mr. President, reserving the right to object, I do not 
object, of course, but might I observe that I understood the objection 
to the previous unanimous consent request. My hope would be that in the 
coming hours today we might have some discussions between the 
leadership of the minority and majority so that we can proceed on the 
SPR amendment. I understand the objection was raised, but there has 
been an overwhelming amount of support by the Senate. I hope we could 
have those discussions this afternoon and perhaps proceed on the basis 
that Senator Reid has suggested.
  The ACTING PRESIDENT pro tempore. Is there objection?
  Without objection, it is so ordered.
  Under the previous order, the substitute amendment, as amended, is 
agreed to.
  The amendment (No. 4707), as amended, was agreed to.
  Mr. DODD. Mr. President, last week, the Senate had a fruitful debate 
on, and today the Senate will vote on passage of the Flood Insurance 
Reform and Modernization Act. This bill extends the flood insurance 
program for 5 years, while making commonsense reforms so that flood 
insurance remains available to millions of Americans who live in flood-
prone areas.
  Though many people think of floods as confined to coastal areas, I 
want to let my colleagues know that in the last year, there have been 
flood claims in all 50 States. Every State has at-risk areas, and in 
the absence of private insurance, the National Flood Insurance Program 
is the only way for home and business owners to ensure they can rebuild 
after the waters recede.
  The bill we are considering makes some tough choices, as I talked 
about last week.
  In order to assure the continuation and availability of flood 
insurance, this bill essentially restarts the flood program. It 
forgives the $17 billion of program debt so that all policyholders will 
not face steep premium increases. All 5.5 million policyholders would 
have to double their premium payments just to pay the interest on this 
debt. To make a dent in the principal, premiums would have to increase 
many times over. Increases of this magnitude would drive untold numbers 
of people to drop flood insurance--at a time when we ought to be 
encouraging more people to purchase this critical coverage.
  In an effort to avoid these steep premium increases, the bill 
forgives the debt. In addition, it reforms the premium structure so 
rates are actuarially based. Yes, this reform will result in some 
policyholders paying more for flood coverage, but the premium increases 
are much less than they would be if this bill were not to pass. If we 
do nothing, FEMA's $17 billion debt hangs over the entire program.
  Last week, we accepted 11 amendments. We were able to accommodate 
Senators on both sides of the aisle--specifically Senators Menendez, 
Coburn, McCaskill, DeMint, Dole, Thune, Durbin, and Landrieu. Their 
amendments help to strengthen this bill and the flood insurance 
program. These amendments include provisions to ensure that FEMA does 
outreach when mapping changes occur, to make policy exclusions clear to 
home and business owners, and to strengthen the flood insurance 
advocate created in the committee-passed bill.
  I want to thank Senator Shelby and his staff for working so closely 
with us on this bipartisan bill. I also want to thank the majority and 
minority leaders for agreeing to move to this bill, and for supporting 
our efforts last week to accommodate debate and amendments.
  I especially thank the staff who have worked on this legislation. In 
particular I want to thank Lula Davis, Tim Mitchell, Tricia Engle, and 
Mark Wetjen on Leader Reid's staff, and I want to thank Rohit Kumar and 
Dave Schiappa on minority leader McConnell's staff.
  Senator Shelby's staff have been invaluable, and I want to recognize 
the work of Bill Duhnke, Mark Oesterle, Mark Calabria and Jim Johnson. 
I also want to acknowledge the hard work of my own staff, including 
Shawn Maher, Jennifer Fogel-Bublick, and Sarah Kline.
  As I have said, this is a strong bill that ensures flood insurance 
will be available for many years to come. I urge my colleagues to 
support this bill so that families can rebuild their homes and their 
lives after a flood.
  Mr. DURBIN. Mr. President, I rise in support of the Flood Insurance 
Reform and Modernization Act of 2007.
  After Hurricane Katrina, I had a chance to meet some of the survivors 
who were displaced by the storm and ended up in Illinois. Many had lost 
their homes, their jobs, their communities, everything. Nearly 3 years 
later, some are still picking up the pieces of a former life.
  We can't stop every disaster from happening. But we can be prepared, 
so what happened after Katrina never happens again.
  Katrina taught us the importance of being prepared. We need to 
understand the risks of disaster, prepare homes

[[Page S4060]]

and communities to withstand disaster, and make sure that once disaster 
strikes, communities can get back on their feet as quickly as possible.
  The national flood insurance program is one of the best ways we do 
this. It allows people who live near rivers or other flood-prone areas 
to insure themselves at an affordable rate against the risk of a flood. 
If the worst happens, it covers some of the costs of recovery.
  This program is critically important to Illinois.
  Illinois has the largest inland system of rivers, lakes, and streams 
in the Nation. Floods are 98 percent of Illinois' declared disasters. 
That is why only three other States have more communities participating 
in the flood insurance program than Illinois.
  The bill before us today renews the flood insurance program, which 
expires this September, and strengthens the program in several 
important ways.
  It puts the program on sound financial footing. It forgives the $17 
billion debt from Katrina and other storm-related losses, a debt the 
program could never repay. But the bill also requires FEMA to establish 
a reserve fund so we are in better shape to cover future losses.
  It encourages more people to buy flood insurance.
  It provides more funding to update old flood maps, so communities 
know where the hazards are and can plan accordingly.
  And I am pleased that this legislation also contains an amendment I 
offered to make sure that the costs of flood insurance are shared 
fairly between Illinois and Missouri down near St. Louis.
  Floods are among the most common and costly natural disasters. 
Passing this bill will strengthen our ability to prepare for what we 
know is coming and to return to our lives as soon as possible once the 
flood waters recede. This bill helps ensure that when the next Katrina-
like disaster hits, we won't see a Katrina-like aftermath.
  I thank Senators Dodd and Shelby for their hard work on this bill and 
urge my colleagues to support it.
  Mr. SPECTER. Mr. President, I seek recognition to express my views 
about the pending energy amendment aimed at increasing domestic oil and 
gas production. In recognizing that this is a symbolic vote aimed at 
stimulating debate on the Nation's energy situation, I am voting for 
this amendment today because I want to affirm the principle of taking 
decisive action on the Nation's energy issues. I do, however, have 
reservations about some of the provisions contained within this 
measure.
  While I fully support measures contained in the package which would 
further the development of alternative fuels for the transportation 
sector and for electric-powered vehicles; set goals for the use of 
coal-derived fuels; suspend filling the Strategic Petroleum Reserve; 
and streamline the permitting process for new oil refineries, I believe 
further debate is necessary on some other provisions.
  Specifically, when these energy issues are revisited, there should be 
further discussion of opening additional areas of the Outer Continental 
Shelf to drilling as well as further discussion on the moratorium on 
commercial leasing of oil shale in the Western United States. I 
understand the need to develop our domestic resources due to growing 
global demand for oil, but we must ensure these steps are taken with 
the utmost environmental sensitivity.
  Mr. LEVIN. Mr. President, I will vote for the Flood Insurance Reform 
and Modernization Act because it would help place the National Flood 
Insurance Program, NFIP, back on solid financial footing. It is not a 
perfect bill, but I hope that some of my concerns can be addressed in 
the House Senate conference process.
  When Congress established the NFIP in 1968, flood insurance was not 
available at an affordable price, resulting in frequent and costly 
Federal disaster aid payments. The new program created a method to 
share the risk of flood losses through a national insurance program and 
required preventive and protective measures to mitigate the risk. 
Currently, Michigan has over 27,000 flood insurance policies, and since 
the program's inception, over $42.6 million in flood claims have been 
paid to Michigan policyholders. This bipartisan reform bill extends 
this important program through 2013, and enhances the long-term 
viability of the program, helping to provide self-sustaining, critical 
insurance coverage for millions of home and business owners throughout 
the country.
  Historically, the flood insurance program has covered most claims 
through the premiums it has collected. However, recent losses from the 
2004 floods and 2005 catastrophic hurricanes have left the program over 
$17 billion in debt to the U.S. Treasury. This reform bill takes the 
painful but necessary step of forgiving that debt. At the same time, 
this legislation makes changes to the program to help ensure its 
continued long-term financial solvency. The aim is to ensure that each 
time a hurricane, deluge or other natural disaster hits, flood claims 
can be paid without relying on taxpayer funds from across the country.
  There are a number of measures in this bill aimed at restoring the 
program's financial stability. These include requiring certain at-risk 
properties to pay phased-in actuarial rates, extending the Severe 
Repetitive Loss Mitigation program to mitigate losses on the most at-
risk properties, and requiring the program to build up reserves. These 
and other new requirements reflect difficult choices because they are 
not without cost to property owners, many of whom are already stretched 
by staggering gas and grocery prices, falling home values and a dismal 
economy. This bill attempts to recognize that reality by maintaining 
some subsidized rates for Federal flood insurance where buildings were 
built before the existence of a federal flood map, and phasing-in new 
actuarial rates.
  The bill also expands and encourages the purchase of flood insurance 
for properties in areas with flood risks. Property owners in a 500-year 
floodplain would be notified about the risks they face, but would not 
be required to purchase flood insurance. To better define areas of 
flood risk, the bill would require FEMA to establish an ongoing map 
modernization program using the most accurate data and consistent 
standards for mapping. These changes will help generate the necessary 
premium income for the program while striving to maintain affordability 
for homeowners.
  The bill also expands and encourages the purchase of flood insurance 
for properties in areas located behind levees, dams, and other man-made 
structures, recognizing that these structures could be breached. While 
recent history has shown us that levees can and do fail and that no 
properties are entirely risk-free, I am concerned that imposing this 
mandatory requirement in a uniform fashion may not accurately reflect 
the risks these communities face. Michigan has 2,500 dams and numerous 
levees scattered across the State; properties behind these structures 
would be required to purchase federal flood insurance regardless of the 
risks they face. We need to better understand the implications of 
requiring mandatory insurance for all of these areas before we impose a 
blanket requirement on all of them. For this reason, I voted in support 
of an amendment offered by Senator Landrieu that would have lifted this 
new mandatory requirement and would have instead required a study to be 
conducted to assess the impact, effectiveness, and feasibility of 
extending mandatory flood coverage to these areas. I believe Senator 
Landrieu's more thoughtful approach is warranted. Unfortunately, the 
amendment failed 30-62.
  While I recognize that making the NFIP more financially sound 
requires making some tough decisions, I believe some of the choices 
reflected in this bill lead to unfair results. For example, I am 
concerned about what will happen to property owners currently not 
mapped into a floodplain should a new map require them to purchase 
flood insurance. Currently, these property owners would receive 
subsidized policies, because the buildings were built before the flood 
risk was known. However, this bill removes the subsidized rate for 
properties that get remapped into a floodplain. While the bill provides 
a 2-year phase-in for these unsubsidized rates, it is not fair to 
demand higher rates from those who, through no fault of their own, had 
no idea they had exposure to flood damage, especially at a time when so 
many families are struggling to meet their monthly expenses. This 
inequity is one that I hope can be addressed when this bill is 
conferenced with the House version passed last year.
  There are also inequities in existing approaches of FEMA's mapping of 
flood risk which need to be corrected in conference. For instance, 
revised flood

[[Page S4061]]

maps are being developed by FEMA for the city of Grand Rapids in such a 
way that does not incorporate the existing flood protection provided by 
the city's recently completed $12.4 million floodwall improvement 
project. The revised flood maps would put over 6,000 additional 
properties into the 100-year floodplain, at a cost of over $6 million 
per year. This is an area that has not flooded at that level since 
1905, and that occurred when the city did not have structural flood 
protection. FEMA's action appears arbitrary, ignores the participation 
of its State partner, and would likely decrease property values and the 
tax base of the community, hampers economic development, and imposes 
unfair costs on thousands of people in the city of Grand Rapids. FEMA 
should more thoroughly and accurately reassess flood risks using a 
risk-based analysis to account for local conditions and incorporate 
protection by the city's improved floodwalls, rather than ignoring 
their presence. I am hopeful that the managers will work with us in 
conference to address this unconscionable and unnecessary burden the 
city of Grand Rapids and its citizens are facing.
  I wish that no American had to worry about suffering damage from a 
natural disaster, but it is a fact of nature that such damage can 
happen. That is why it is important to do what we can to help property 
owners have adequate insurance. The goals of the National Flood 
Insurance Program are important, and reauthorizing and revamping this 
program is necessary. This bill represents a necessary step to ensure 
that more at-risk property owners are protected while the cost of 
disaster relief and adequate insurance is less of a burden to the 
average taxpayer. Flooding is a risk that many communities face, and 
the availability of flood insurance is important for ensuring that our 
citizens can recover from any losses suffered. However, this must be 
done in a way that does not unduly and unfairly burden our communities. 
I will continue to work to strengthen the National Flood Insurance 
Program in a fair and responsible manner as it proceeds to conference.
  The ACTING PRESIDENT pro tempore. The clerk will read the bill for 
the third time.
  The bill was ordered to be engrossed for a third reading and was read 
the third time.
  The ACTING PRESIDENT pro tempore. Under the previous order, the 
Banking Committee is discharged from further consideration of H.R. 
3121, which the clerk will report by title.
  The legislative clerk read as follows:

       A bill (H.R. 3121) to restore the financial solvency of the 
     national flood insurance program and to provide for such 
     program to make available multiperil coverage for damage 
     resulting from windstorms and floods, and for other purposes.

  The ACTING PRESIDENT pro tempore. Under the previous order, all after 
the enacting clause is stricken and the text of S. 2284, as amended, is 
inserted in lieu thereof.
  The clerk will read the bill for the third time.
  The amendment was ordered to be engrossed and the bill to be read a 
third time.
  The bill was read the third time.
  The ACTING PRESIDENT pro tempore. The bill having been read the third 
time, the question is, Shall the bill pass?
  Mr. DODD. Mr. President, I ask for the yeas and nays.
  The ACTING PRESIDENT pro tempore. Is there a sufficient second?
  There is a sufficient second.
  The clerk will call the roll.
  The assistant legislative clerk called the roll.
  Mr. KYL. The following Senators are necessarily absent: the Senator 
from Oklahoma (Mr. Inhofe) and the Senator from Arizona (Mr. McCain).
  The ACTING PRESIDENT pro tempore. Are there any other Senators in the 
Chamber desiring to vote?
  The result was announced--yeas 92, nays 6, as follows:

                      [Rollcall Vote No. 125 Leg.]

                                YEAS--92

     Akaka
     Alexander
     Allard
     Barrasso
     Baucus
     Bayh
     Bennett
     Biden
     Bingaman
     Bond
     Boxer
     Brown
     Brownback
     Bunning
     Burr
     Byrd
     Cantwell
     Cardin
     Carper
     Casey
     Chambliss
     Clinton
     Cochran
     Coleman
     Collins
     Conrad
     Corker
     Cornyn
     Craig
     Crapo
     DeMint
     Dodd
     Dole
     Domenici
     Dorgan
     Durbin
     Ensign
     Enzi
     Feingold
     Feinstein
     Graham
     Grassley
     Gregg
     Hagel
     Harkin
     Hatch
     Hutchison
     Inouye
     Isakson
     Johnson
     Kennedy
     Kerry
     Klobuchar
     Kohl
     Kyl
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lugar
     Martinez
     McCaskill
     McConnell
     Menendez
     Mikulski
     Murkowski
     Murray
     Nelson (NE)
     Obama
     Reed
     Reid
     Roberts
     Rockefeller
     Salazar
     Sanders
     Schumer
     Sessions
     Shelby
     Smith
     Snowe
     Specter
     Stabenow
     Stevens
     Sununu
     Tester
     Thune
     Voinovich
     Warner
     Webb
     Whitehouse
     Wicker
     Wyden

                                NAYS--6

     Coburn
     Landrieu
     Lincoln
     Nelson (FL)
     Pryor
     Vitter

                             NOT VOTING--2

     Inhofe
     McCain
      
  The bill (H.R. 3121), as amended, was passed, as follows:

                               H.R. 3121

       Resolved, That the bill from the House of Representatives 
     (H.R. 3121) entitled ``An Act to restore the financial 
     solvency of the national flood insurance program and to 
     provide for such program to make available multiperil 
     coverage for damage resulting from windstorms and floods, and 
     for other purposes.'', do pass with the following amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Table of contents.

           TITLE I--FLOOD INSURANCE REFORM AND MODERNIZATION

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Definitions.
Sec. 104. Extension of National Flood Insurance Program.
Sec. 105. Availability of insurance for multifamily properties.
Sec. 106. Reform of premium rate structure.
Sec. 107. Mandatory coverage areas.
Sec. 108. Premium adjustment.
Sec. 109. State chartered financial institutions.
Sec. 110. Enforcement.
Sec. 111. Escrow of flood insurance payments.
Sec. 112. Borrowing authority debt forgiveness.
Sec. 113. Minimum deductibles for claims under the National Flood 
              Insurance Program.
Sec. 114. Considerations in determining chargeable premium rates.
Sec. 115. Reserve fund.
Sec. 116. Repayment plan for borrowing authority.
Sec. 117. Payment of condominium claims.
Sec. 118. Technical Mapping Advisory Council.
Sec. 119. National Flood Mapping Program.
Sec. 120. Removal of limitation on State contributions for updating 
              flood maps.
Sec. 121. Coordination.
Sec. 122. Interagency coordination study.
Sec. 123. Nonmandatory participation.
Sec. 124. Notice of flood insurance availability under RESPA.
Sec. 125. Testing of new flood proofing technologies.
Sec. 126. Participation in State disaster claims mediation programs.
Sec. 127. Reiteration of FEMA responsibilities under the 2004 Reform 
              Act.
Sec. 128. Additional authority of FEMA to collect information on claims 
              payments.
Sec. 129. Expense reimbursements of insurance companies.
Sec. 130. Extension of pilot program for mitigation of severe 
              repetitive loss properties.
Sec. 131. Flood insurance advocate.
Sec. 132. Studies and Reports.
Sec. 133. Feasibility study on private reinsurance.
Sec. 134. Policy disclosures.
Sec. 135. Report on inclusion of building codes in floodplain 
              management criteria.

    TITLE II--COMMISSION ON NATURAL CATASTROPHE RISK MANAGEMENT AND 
                               INSURANCE

Sec. 201. Short title.
Sec. 202. Findings.
Sec. 203. Establishment.
Sec. 204. Membership.
Sec. 205. Duties of the Commission.
Sec. 206. Report.
Sec. 207. Powers of the Commission.
Sec. 208. Commission personnel matters.
Sec. 209. Termination.
Sec. 210. Authorization of appropriations.

                        TITLE III--MISCELLANEOUS

Sec. 301. Big Sioux River and Skunk Creek, Sioux Falls, South Dakota.
Sec. 302. Suspension of petroleum acquisition for Strategic Petroleum 
              Reserve.

           TITLE I--FLOOD INSURANCE REFORM AND MODERNIZATION

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Flood Insurance Reform and 
     Modernization Act of 2008''.

     SEC. 102. FINDINGS.

       Congress finds that--
       (1) the flood insurance claims resulting from the hurricane 
     season of 2005 will likely exceed all previous claims paid by 
     the National Flood Insurance Program;

[[Page S4062]]

       (2) in order to pay the legitimate claims of policyholders 
     from the hurricane season of 2005, the Federal Emergency 
     Management Agency has borrowed over $20,000,000,000 from the 
     Treasury;
       (3) the interest alone on this debt, is almost 
     $1,000,000,000 annually, and that the Federal Emergency 
     Management Agency has indicated that it will be unable to pay 
     back this debt;
       (4) the flood insurance program must be strengthened to 
     ensure it can pay future claims;
       (5) while flood insurance is mandatory in the 100-year 
     floodplain, substantial flooding occurs outside of existing 
     special flood hazard areas;
       (6) recent events throughout the country involving areas 
     behind man-made structures, known as ``residual risk'' areas, 
     have produced catastrophic losses;
       (7) although such man-made structures produce an added 
     element of safety and therefore lessen the probability that a 
     disaster will occur, they are nevertheless susceptible to 
     catastrophic loss, even though such areas at one time were 
     not included within the 100-year floodplain; and
       (8) voluntary participation in the National Flood Insurance 
     Program has been minimal and many families residing outside 
     the 100-year floodplain remain unaware of the potential risk 
     to their lives and property.

     SEC. 103. DEFINITIONS.

       (a) In General.--In this title, the following definitions 
     shall apply:
       (1) Director.--The term ``Director'' means the 
     Administrator of the Federal Emergency Management Agency.
       (2) National flood insurance program.--The term ``National 
     Flood Insurance Program'' means the program established under 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et 
     seq.).
       (3) 100-year floodplain.--The term ``100-year floodplain'' 
     means that area which is subject to inundation from a flood 
     having a 1 percent chance of being equaled or exceeded in any 
     given year.
       (4) 500-year floodplain.--The term ``500-year floodplain'' 
     means that area which is subject to inundation from a flood 
     having a 0.2 percent chance of being equaled or exceeded in 
     any given year.
       (5) Write your own.--The term ``Write Your Own'' means the 
     cooperative undertaking between the insurance industry and 
     the Flood Insurance Administration which allows participating 
     property and casualty insurance companies to write and 
     service standard flood insurance policies.
       (b) Common Terminology.--Except as otherwise provided in 
     this title, any terms used in this title shall have the 
     meaning given to such terms under section 1370 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4121).

     SEC. 104. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

       Section 1319 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4026), is amended by striking ``2008'' and 
     inserting ``2013.''.

     SEC. 105. AVAILABILITY OF INSURANCE FOR MULTIFAMILY 
                   PROPERTIES.

       Section 1305 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4012) is amended by adding at the end the 
     following:
       ``(d) Availability of Insurance for Multifamily 
     Properties.--
       ``(1) In general.--The Director shall make flood insurance 
     available to cover residential properties of more than 4 
     units. Notwithstanding any other provision of law, the 
     maximum coverage amount that the Director may make available 
     under this subsection to such residential properties shall be 
     equal to the coverage amount made available to commercial 
     properties.
       ``(2) Rule of construction.--Nothing in this subsection 
     shall be construed to limit the ability of individuals 
     residing in residential properties of more than 4 units to 
     obtain insurance for the contents and personal articles 
     located in such residences.''.

     SEC. 106. REFORM OF PREMIUM RATE STRUCTURE.

       (a) To Exclude Certain Properties From Receiving Subsidized 
     Premium Rates.--
       (1) In general.--Section 1307 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4014) is amended--
       (A) in subsection (a)--
       (i) in paragraph (2), by striking ``; and'' and inserting a 
     semicolon;
       (ii) in paragraph (3), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(4) the exclusion of prospective insureds from purchasing 
     flood insurance at rates less than those estimated under 
     paragraph (1), as required by paragraph (2), for certain 
     properties, including for--
       ``(A) any property which is not the primary residence of an 
     individual;
       ``(B) any severe repetitive loss property, as defined in 
     section 1361A(b);
       ``(C) any property that has incurred flood-related damage 
     in which the cumulative amounts of payments under this title 
     equaled or exceeded the fair market value of such property;
       ``(D) any business property; and
       ``(E) any property which on or after the date of enactment 
     of the Flood Insurance Reform and Modernization Act of 2008 
     has experienced or sustained--
       ``(i) substantial damage exceeding 50 percent of the fair 
     market value of such property; or
       ``(ii) substantial improvement exceeding 30 percent of the 
     fair market value of such property.''; and
       (B) by adding at the end the following:
       ``(g) No Extension of Subsidy to New Policies or Lapsed 
     Policies.--The Director shall not provide flood insurance to 
     prospective insureds at rates less than those estimated under 
     subsection (a)(1), as required by paragraph (2) of that 
     subsection, for--
       ``(1) any property not insured by the flood insurance 
     program as of the date of enactment of the Flood Insurance 
     Reform and Modernization Act of 2008;
       ``(2) any policy under the flood insurance program that has 
     lapsed in coverage, as a result of the deliberate choice of 
     the holder of such policy; and
       ``(3) any prospective insured who refuses to accept any 
     offer for mitigation assistance by the Administrator 
     (including an offer to relocate), including an offer of 
     mitigation assistance--
       ``(A) following a major disaster, as defined in section 102 
     of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5122); or
       ``(B) in connection with--
       ``(i) a repetitive loss property; or
       ``(ii) a severe repetitive loss property, as that term is 
     defined under section 1361A.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall become effective 90 days after the date of the 
     enactment of this title.
       (b) Increase in Annual Limitation on Premium Increases.--
     Section 1308(e) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015(e)) is amended--
       (1) by striking ``under this title for any properties 
     within any single'' and inserting the following: ``under this 
     title for any properties--
       ``(1) within any single''; and
       (2) by striking ``10 percent'' and inserting ``15 
     percent''; and
       (3) by striking the period at the end and inserting the 
     following: ``; and
       ``(2) described in section 1307(a)(4) shall be increased by 
     25 percent each year, until the average risk premium rate for 
     such properties is equal to the average of the risk premium 
     rates for properties described under paragraph (1).''.

     SEC. 107. MANDATORY COVERAGE AREAS.

       (a) Special Flood Hazard Areas.--Not later than 90 days 
     after the date of enactment of this title, the Director shall 
     issue final regulations establishing a revised definition of 
     areas of special flood hazards for purposes of the National 
     Flood Insurance Program.
       (b) Residual Risk Areas.--The regulations required by 
     subsection (a) shall--
       (1) include any area previously identified by the Director 
     as an area having special flood hazards under section 102 of 
     the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a); 
     and
       (2) require the expansion of areas of special flood hazards 
     to include areas of residual risk, including areas that are 
     located behind levees, dams, and other man-made structures.
       (c) Mandatory Participation in National Flood Insurance 
     Program.--
       (1) In general.--Any area described in subsection (b) shall 
     be subject to the mandatory purchase requirements of sections 
     102 and 202 of the Flood Disaster Protection Act of 1973 (42 
     U.S.C. 4012a, 4106).
       (2) Limitation.--The mandatory purchase requirement under 
     paragraph (1) shall have no force or effect until the mapping 
     of all residual risk areas in the United States that the 
     Director determines essential in order to administer the 
     National Flood Insurance Program, as required under section 
     119, are in the maintenance phase.
       (3) Accurate pricing.--In carrying out the mandatory 
     purchase requirement under paragraph (1), the Director shall 
     ensure that the price of flood insurance policies in areas of 
     residual risk accurately reflects the level of flood 
     protection provided by any levee, dam, or other the man-made 
     structure in such area.
       (d) Decertification.--Upon decertification of any levee, 
     dam, or man-made structure under the jurisdiction of the Army 
     Corp of Engineers, the Corp shall immediately provide notice 
     to the Director of the National Flood Insurance Program.

     SEC. 108. PREMIUM ADJUSTMENT.

       Section 1308 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015) is amended by adding at the end the 
     following:
       ``(g) Premium Adjustment To Reflect Current Risk of 
     Flood.--Notwithstanding subsection (f), and upon completion 
     of the updating of any flood insurance rate map under this 
     Act, the Flood Disaster Protection Act of 1973, or the Flood 
     Insurance Reform and Modernization Act of 2008, any property 
     located in an area that is participating in the national 
     flood insurance program shall have the risk premium rate 
     charged for flood insurance on such property adjusted to 
     accurately reflect the current risk of flood to such 
     property, subject to any other provision of this Act. Any 
     increase in the risk premium rate charged for flood insurance 
     on any property that is covered by a flood insurance policy 
     on the date of completion of such updating or remapping that 
     is a result of such updating or remapping shall be phased in 
     over a 2-year period at the rate of 50 percent per year.
       ``(h) Use of Maps to Establish Rates for Certain 
     Counties.--
       ``(1) In general.--Until such time as the updating of flood 
     insurance rate maps under section 19 of the Flood 
     Modernization Act of 2007 is completed (as determined by the 
     district engineer) for all areas located in the St. Louis 
     District of the Mississippi Valley Division of the Corps of 
     Engineers, the Director shall not--
       ``(A) adjust the chargeable premium rate for flood 
     insurance under this title for any type or class of property 
     located in an area in that District; and
       ``(B) require the purchase of flood insurance for any type 
     or class of property located in an area in that District not 
     subject to such purchase requirement prior to the updating of 
     such national flood insurance program rate map.
       ``(2) Rule of construction.--For purposes of this 
     subsection, the term `area' does not include any area (or 
     subdivision thereof) that has chosen not to participate in 
     the flood insurance

[[Page S4063]]

     program under this title as of the date of enactment of this 
     subsection.''.

     SEC. 109. STATE CHARTERED FINANCIAL INSTITUTIONS.

       Section 1305(c) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4012(c)) is amended--
       (1) in paragraph (1), by striking ``; and'' and inserting a 
     semicolon;
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) given satisfactory assurance that by December 31, 
     2008, lending institutions chartered by a State, and not 
     insured by the Federal Deposit Insurance Corporation, shall 
     be subject to regulations by that State that are consistent 
     with the requirements of section 102 of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a).''.

     SEC. 110. ENFORCEMENT.

       Section 102(f)(5) of the Flood Disaster Protection Act of 
     1973 (42 U.S.C. 4012a(f)(5)) is amended--
       (1) in the first sentence, by striking ``$350'' and 
     inserting ``$2,000''; and
       (2) by striking the second sentence.

     SEC. 111. ESCROW OF FLOOD INSURANCE PAYMENTS.

       (a) In General.--Section 102(d) of the Flood Disaster 
     Protection Act of 1973 (42 U.S.C. 4012a(d)) is amended--
       (1) by amending paragraph (1) to read as follows:
       ``(1) Regulated lending institutions.--
       ``(A) Federal entities responsible for lending 
     regulations.--Each Federal entity for lending regulation 
     (after consultation and coordination with the Federal 
     Financial Institutions Examination Council) shall, by 
     regulation, direct that any premiums and fees for flood 
     insurance under the National Flood Insurance Act of 1968, on 
     any property for which a loan has been made for acquisition 
     or construction purposes, shall be paid to the mortgage 
     lender, with the same frequency as payments on the loan are 
     made, for the duration of the loan. Upon receipt of any 
     premiums or fees, the lender shall deposit such premiums and 
     fees in an escrow account on behalf of the borrower. Upon 
     receipt of a notice from the Director or the provider of the 
     flood insurance that insurance premiums are due, the 
     remaining balance of an escrow account shall be paid to the 
     provider of the flood insurance.
       ``(B) State entities responsible for lending regulations.--
     In order to continue to participate in the flood insurance 
     program, each State shall direct that its entity or agency 
     with primary responsibility for the supervision of lending 
     institutions in that State require that premiums and fees for 
     flood insurance under the National Flood Insurance Act of 
     1968, on any property for which a loan has been made for 
     acquisition or construction purposes shall be paid to the 
     mortgage lender, with the same frequency as payments on the 
     loan are made, for the duration of the loan. Upon receipt of 
     any premiums or fees, the lender shall deposit such premiums 
     and fees in an escrow account on behalf of the borrower. Upon 
     receipt of a notice from such State entity or agency, the 
     Director, or the provider of the flood insurance that 
     insurance premiums are due, the remaining balance of an 
     escrow account shall be paid to the provider of the flood 
     insurance.''; and
       (2) by adding at the end the following:
       ``(6) Notice upon loan termination.--Upon final payment of 
     the mortgage, a regulated lending institution shall provide 
     notice to the policyholder that insurance coverage may cease 
     with such final payment. The regulated lending institution 
     shall also provide direction as to how the homeowner may 
     continue flood insurance coverage after the life of the 
     loan.''.
       (b) Applicability.--The amendment made by subsection (a)(1) 
     shall apply to any mortgage outstanding or entered into on or 
     after the expiration of the 2-year period beginning on the 
     date of enactment of this title.

     SEC. 112. BORROWING AUTHORITY DEBT FORGIVENESS.

       (a) In General.--The Secretary of the Treasury relinquishes 
     the right to any repayment of amounts due from the Director 
     in connection with the exercise of the authority vested to 
     the Director to borrow such sums under section 1309 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4016), to the 
     extent such borrowed sums were used to fund the payment of 
     flood insurance claims under the National Flood Insurance 
     Program for any damage to or loss of property resulting from 
     the hurricanes of 2005.
       (b) Certification.--The debt forgiveness described under 
     subsection (a) shall only take effect if the Director 
     certifies to the Secretary of Treasury that all authorized 
     resources or funds available to the Director to operate the 
     National Flood Insurance Program--
       (1) have been otherwise obligated to pay claims under the 
     National Flood Insurance Program; and
       (2) are not otherwise available to make payments to the 
     Secretary on any outstanding notes or obligations issued by 
     the Director and held by the Secretary.
       (c) Decrease in Borrowing Authority.--The first sentence of 
     subsection (a) of section 1309 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by 
     striking ``; except that, through September 30, 2008, clause 
     (2) of this sentence shall be applied by substituting 
     `$20,775,000,000' for `$1,500,000,000' ''.

     SEC. 113. MINIMUM DEDUCTIBLES FOR CLAIMS UNDER THE NATIONAL 
                   FLOOD INSURANCE PROGRAM.

       Section 1312 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4019) is amended--
       (1) by striking ``The Director is'' and inserting the 
     following:
       ``(a) In General.--The Director is''; and
       (2) by adding at the end the following:
       ``(b) Minimum Annual Deductible.--
       ``(1) Pre-firm properties.--For any structure which is 
     covered by flood insurance under this title, and on which 
     construction or substantial improvement occurred on or before 
     December 31, 1974, or before the effective date of an initial 
     flood insurance rate map published by the Director under 
     section 1360 for the area in which such structure is located, 
     the minimum annual deductible for damage to such structure 
     shall be--
       ``(A) $1,500, if the flood insurance coverage for such 
     structure covers loss of, or physical damage to, such 
     structure in an amount equal to or less than $100,000; and
       ``(B) $2,000, if the flood insurance coverage for such 
     structure covers loss of, or physical damage to, such 
     structure in an amount greater than $100,000.
       ``(2) Post-firm properties.--For any structure which is 
     covered by flood insurance under this title, and on which 
     construction or substantial improvement occurred after 
     December 31, 1974, or after the effective date of an initial 
     flood insurance rate map published by the Director under 
     section 1360 for the area in which such structure is located, 
     the minimum annual deductible for damage to such structure 
     shall be--
       ``(A) $750, if the flood insurance coverage for such 
     structure covers loss of, or physical damage to, such 
     structure in an amount equal to or less than $100,000; and
       ``(B) $1,000, if the flood insurance coverage for such 
     structure covers loss of, or physical damage to, such 
     structure in an amount greater than $100,000.''.

     SEC. 114. CONSIDERATIONS IN DETERMINING CHARGEABLE PREMIUM 
                   RATES.

       Section 1308 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4015(b)) is amended--
       (1) in subsection (a), by striking ``, after consultation 
     with'' and all that follows through ``by regulation'' and 
     inserting ``prescribe, after providing notice'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking the period at the end and 
     inserting a semicolon;
       (B) in paragraph (2), by striking the comma at the end and 
     inserting a semicolon;
       (C) in paragraph (3), by striking ``, and'' and inserting a 
     semicolon;
       (D) in paragraph (4), by striking the period and inserting 
     ``; and''; and
       (E) by adding at the end the following:
       ``(5) adequate, on the basis of accepted actuarial 
     principles, to cover the average historical loss year 
     obligations incurred by the National Flood Insurance Fund.''; 
     and
       (3) by adding at the end the following:
       ``(h) Rule of Construction.--For purposes of this section, 
     the calculation of an `average historical loss year'--
       ``(1) includes catastrophic loss years; and
       ``(2) shall be computed in accordance with generally 
     accepted actuarial principles.''.

     SEC. 115. RESERVE FUND.

       Chapter I of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4011 et seq.) is amended by inserting after section 
     1310 the following:

     ``SEC. 1310A. RESERVE FUND.

       ``(a) Establishment of Reserve Fund.--In carrying out the 
     flood insurance program authorized by this chapter, the 
     Director shall establish in the Treasury of the United States 
     a National Flood Insurance Reserve Fund (in this section 
     referred to as the `Reserve Fund') which shall--
       ``(1) be an account separate from any other accounts or 
     funds available to the Director; and
       ``(2) be available for meeting the expected future 
     obligations of the flood insurance program.
       ``(b) Reserve Ratio.--Subject to the phase-in requirements 
     under subsection (d), the Reserve Fund shall maintain a 
     balance equal to--
       ``(1) 1 percent of the sum of the total potential loss 
     exposure of all outstanding flood insurance policies in force 
     in the prior fiscal year; or
       ``(2) such higher percentage as the Director determines to 
     be appropriate, taking into consideration any circumstance 
     that may raise a significant risk of substantial future 
     losses to the Reserve Fund.
       ``(c) Maintenance of Reserve Ratio.--
       ``(1) In general.--The Director shall have the authority to 
     establish, increase, or decrease the amount of aggregate 
     annual insurance premiums to be collected for any fiscal year 
     necessary--
       ``(A) to maintain the reserve ratio required under 
     subsection (b); and
       ``(B) to achieve such reserve ratio, if the actual balance 
     of such reserve is below the amount required under subsection 
     (b).
       ``(2) Considerations.--In exercising the authority granted 
     under paragraph (1), the Director shall consider--
       ``(A) the expected operating expenses of the Reserve Fund;
       ``(B) the insurance loss expenditures under the flood 
     insurance program;
       ``(C) any investment income generated under the flood 
     insurance program; and
       ``(D) any other factor that the Director determines 
     appropriate.
       ``(3) Limitations.--In exercising the authority granted 
     under paragraph (1), the Director shall be subject to all 
     other provisions of this Act, including any provisions 
     relating to chargeable premium rates or annual increases of 
     such rates.
       ``(d) Phase-In Requirements.--The phase-in requirements 
     under this subsection are as follows:
       ``(1) In general.--Beginning in fiscal year 2008 and not 
     ending until the fiscal year in which the ratio required 
     under subsection (b) is achieved, in each such fiscal year 
     the Director shall place in the Reserve Fund an amount equal 
     to not less than 7.5 percent of the reserve ratio required 
     under subsection (b).

[[Page S4064]]

       ``(2) Amount satisfied.--As soon as the ratio required 
     under subsection (b) is achieved, and except as provided in 
     paragraph (3), the Director shall not be required to set 
     aside any amounts for the Reserve Fund.
       ``(3) Exception.--If at any time after the ratio required 
     under subsection (b) is achieved, the Reserve Fund falls 
     below the required ratio under subsection (b), the Director 
     shall place in the Reserve Fund for that fiscal year an 
     amount equal to not less than 7.5 percent of the reserve 
     ratio required under subsection (b).
       ``(e) Limitation on Reserve Ratio.--In any given fiscal 
     year, if the Director determines that the reserve ratio 
     required under subsection (b) cannot be achieved, the 
     Director shall submit a report to Congress that--
       ``(1) describes and details the specific concerns of the 
     Director regarding such consequences;
       ``(2) demonstrates how such consequences would harm the 
     long-term financial soundness of the flood insurance program; 
     and
       ``(3) indicates the maximum attainable reserve ratio for 
     that particular fiscal year.''.

     SEC. 116. REPAYMENT PLAN FOR BORROWING AUTHORITY.

       Section 1309 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4016) is amended by adding at the end the 
     following:
       ``(c) Any funds borrowed by the Director under the 
     authority established in subsection (a) shall include a 
     schedule for repayment of such amounts which shall be 
     transmitted to the--
       ``(1) Secretary of the Treasury;
       ``(2) Committee on Banking, Housing, and Urban Affairs of 
     the Senate; and
       ``(3) Committee on Financial Services of the House of 
     Representatives.
       ``(d) In addition to the requirement under subsection (c), 
     in connection with any funds borrowed by the Director under 
     the authority established in subsection (a), the Director, 
     beginning 6 months after the date on which such borrowed 
     funds are issued, and continuing every 6 months thereafter 
     until such borrowed funds are fully repaid, shall submit a 
     report on the progress of such repayment to the--
       ``(1) Secretary of the Treasury;
       ``(2) Committee on Banking, Housing, and Urban Affairs of 
     the Senate; and
       ``(3) Committee on Financial Services of the House of 
     Representatives.''.

     SEC. 117. PAYMENT OF CONDOMINIUM CLAIMS.

       Section 1312 of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4019), as amended by section 113, is further 
     amended by adding at the end the following:
       ``(c) Payment of Claims to Condominium Owners.--The 
     Director may not deny payment for any damage to or loss of 
     property which is covered by flood insurance to condominium 
     owners who purchased such flood insurance separate and apart 
     from the flood insurance purchased by the condominium 
     association in which such owner is a member, based, solely or 
     in any part, on the flood insurance coverage of the 
     condominium association or others on the overall property 
     owned by the condominium association. Notwithstanding any 
     regulations, rules, or restrictions established by the 
     Director relating to appeals and filing deadlines, the 
     Director shall ensure that the requirements of this 
     subsection are met with respect to any claims for damages 
     resulting from flooding in 2005 and 2006.''.

     SEC. 118. TECHNICAL MAPPING ADVISORY COUNCIL.

       (a) Establishment.--There is established a council to be 
     known as the Technical Mapping Advisory Council (in this 
     section referred to as the ``Council'').
       (b) Membership.--
       (1) In general.--The Council shall consist of the Director, 
     or the designee thereof, and 12 additional members to be 
     appointed by the Director or the designee of the Director, 
     who shall be--
       (A) the Under Secretary of Commerce for Oceans and 
     Atmosphere (or the designee thereof);
       (B) a member of a recognized professional surveying 
     association or organization
       (C) a member of a recognized professional mapping 
     association or organization;
       (D) a member of a recognized professional engineering 
     association or organization;
       (E) a member of a recognized professional association or 
     organization representing flood hazard determination firms;
       (F) a representative of the United States Geological 
     Survey;
       (G) a representative of a recognized professional 
     association or organization representing State geographic 
     information;
       (H) a representative of State national flood insurance 
     coordination offices;
       (I) a representative of the Corps of Engineers;
       (J) the Secretary of the Interior (or the designee 
     thereof);
       (K) the Secretary of Agriculture (or the designee thereof);
       (L) a member of a recognized regional flood and storm water 
     management organization;
       (M) a representative of a State agency that has entered 
     into a cooperating technical partnership with the Director 
     and has demonstrated the capability to produce flood 
     insurance rate maps; and
       (N) a representative of a local government agency that has 
     entered into a cooperating technical partnership with the 
     Director and has demonstrated the capability to produce flood 
     insurance rate maps.
       (2) Qualifications.--Members of the Council shall be 
     appointed based on their demonstrated knowledge and 
     competence regarding surveying, cartography, remote sensing, 
     geographic information systems, or the technical aspects of 
     preparing and using flood insurance rate maps.
       (c) Duties.--The Council shall--
       (1) recommend to the Director how to improve in a cost-
     effective manner the--
       (A) accuracy, general quality, ease of use, and 
     distribution and dissemination of flood insurance rate maps 
     and risk data; and
       (B) performance metrics and milestones required to 
     effectively and efficiently map flood risk areas in the 
     United States;
       (2) recommend to the Director mapping standards and 
     guidelines for--
       (A) flood insurance rate maps; and
       (B) data accuracy, data quality, data currency, and data 
     eligibility;
       (3) recommend to the Director how to maintain on an ongoing 
     basis flood insurance rate maps and flood risk 
     identification;
       (4) recommend procedures for delegating mapping activities 
     to State and local mapping partners;
       (5) recommend to the Director and other Federal agencies 
     participating in the Council--
       (A) methods for improving interagency and intergovernmental 
     coordination on flood mapping and flood risk determination; 
     and
       (B) a funding strategy to leverage and coordinate budgets 
     and expenditures across Federal agencies; and
       (6) submit an annual report to the Director that contains--
       (A) a description of the activities of the Council;
       (B) an evaluation of the status and performance of flood 
     insurance rate maps and mapping activities to revise and 
     update flood insurance rate maps, as required under section 
     119; and
       (C) a summary of recommendations made by the Council to the 
     Director.
       (d) Future Conditions Risk Assessment and Modeling 
     Report.--
       (1) In general.--The Council shall consult with scientists 
     and technical experts, other Federal agencies, States, and 
     local communities to--
       (A) develop recommendations on how to--
       (i) ensure that flood insurance rate maps incorporate the 
     best available climate science to assess flood risks; and
       (ii) ensure that the Federal Emergency Management Agency 
     uses the best available methodology to consider the impact 
     of--

       (I) the rise in the sea level; and
       (II) future development on flood risk; and

       (B) not later than 1 year after the date of enactment of 
     this title, prepare written recommendations in a future 
     conditions risk assessment and modeling report and to submit 
     such recommendations to the Director.
       (2) Responsibility of the director.--The Director, as part 
     of the ongoing program to review and update National Flood 
     Insurance Program rate maps under section 119, shall 
     incorporate any future risk assessment submitted under 
     paragraph (1)(B) in any such revision or update.
       (e) Chairperson.--The members of the Council shall elect 1 
     member to serve as the chairperson of the Council (in this 
     section referred to as the ``Chairperson'').
       (f) Coordination.--To ensure that the Council's 
     recommendations are consistent, to the maximum extent 
     practicable, with national digital spatial data collection 
     and management standards, the Chairperson shall consult with 
     the Chairperson of the Federal Geographic Data Committee 
     (established pursuant to OMB Circular A-16).
       (g) Compensation.--Members of the Council shall receive no 
     additional compensation by reason of their service on the 
     Council.
       (h) Meetings and Actions.--
       (1) In general.--The Council shall meet not less frequently 
     than twice each year at the request of the Chairperson or a 
     majority of its members, and may take action by a vote of the 
     majority of the members.
       (2) Initial meeting.--The Director, or a person designated 
     by the Director, shall request and coordinate the initial 
     meeting of the Council.
       (i) Officers.--The Chairperson may appoint officers to 
     assist in carrying out the duties of the Council under 
     subsection (c).
       (j) Staff.--
       (1) Staff of fema.--Upon the request of the Chairperson, 
     the Director may detail, on a nonreimbursable basis, 
     personnel of the Federal Emergency Management Agency to 
     assist the Council in carrying out its duties.
       (2) Staff of other federal agencies.--Upon request of the 
     Chairperson, any other Federal agency that is a member of the 
     Council may detail, on a non-reimbursable basis, personnel to 
     assist the Council in carrying out its duties.
       (k) Powers.--In carrying out this section, the Council may 
     hold hearings, receive evidence and assistance, provide 
     information, and conduct research, as it considers 
     appropriate.
       (l) Report to Congress.--The Director, on an annual basis, 
     shall report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate, the Committee on Financial Services of 
     the House of Representatives, and the Office of Management 
     and Budget on the--
       (1) recommendations made by the Council; and
       (2) actions taken by the Federal Emergency Management 
     Agency to address such recommendations to improve flood 
     insurance rate maps and flood risk data.

     SEC. 119. NATIONAL FLOOD MAPPING PROGRAM.

       (a) Reviewing, Updating, and Maintaining Maps.--The 
     Director, in coordination with the Technical Mapping Advisory 
     Council established under section 118, shall establish an 
     ongoing program under which the Director shall review, 
     update, and maintain National Flood Insurance Program rate 
     maps in accordance with this section.
       (b) Mapping.--
       (1) In general.--In carrying out the program established 
     under subsection (a), the Director shall--
       (A) identify, review, update, maintain, and publish 
     National Flood Insurance Program rate maps with respect to--

[[Page S4065]]

       (i) all areas located within the 100-year floodplain;
       (ii) all areas located within the 500-year floodplain;
       (iii) areas of residual risk that have not previously been 
     identified, including areas that are protected levees, dams, 
     and other man-made structures; and
       (iv) areas that could be inundated as a result of the 
     failure of a levee, dam, or other man-made structure;
       (v) the level of protection provided by man-made 
     structures.
       (B) establish or update flood-risk zone data in all such 
     areas, and make estimates with respect to the rates of 
     probable flood caused loss for the various flood risk zones 
     for each such area; and
       (C) use, in identifying, reviewing, updating, maintaining, 
     or publishing any National Flood Insurance Program rate map 
     required under this section or under the National Flood 
     Insurance Act of 1968, the most accurate topography and 
     elevation data available.
       (2) Mapping elements.--Each map updated under this section 
     shall:
       (A) Ground elevation data.--Assess the accuracy of current 
     ground elevation data used for hydrologic and hydraulic 
     modeling of flooding sources and mapping of the flood hazard 
     and wherever necessary acquire new ground elevation data 
     utilizing the most up-to-date geospatial technologies in 
     accordance with the existing guidelines and specifications of 
     the Federal Emergency Management Agency.
       (B) Data on a watershed basis.--Develop National Flood 
     Insurance Program flood data on a watershed basis--
       (i) to provide the most technically effective and efficient 
     studies and hydrologic and hydraulic modeling; and
       (ii) to eliminate, to the maximum extent possible, 
     discrepancies in base flood elevations between adjacent 
     political subdivisions.
       (3) Other inclusions.--In updating maps under this section, 
     the Director shall include--
       (A) any relevant information on coastal inundation from--
       (i) an applicable inundation map of the Corps of Engineers; 
     and
       (ii) data of the National Oceanic and Atmospheric 
     Administration relating to storm surge modeling;
       (B) any relevant information of the United States 
     Geological Survey on stream flows, watershed characteristics, 
     and topography that is useful in the identification of flood 
     hazard areas, as determined by the Director;
       (C) any relevant information on land subsidence, coastal 
     erosion areas, and other floor-related hazards;
       (D) any relevant information or data of the National 
     Oceanic and Atmospheric Administration and the United States 
     Geological Survey relating to the best available climate 
     science and the potential for future inundation from sea 
     level rise, increased precipitation, and increased intensity 
     of hurricanes due to global warming; and
       (E) any other relevant information as may be recommended by 
     the Technical Mapping Advisory Committee.
       (c) Standards.--In updating and maintaining maps under this 
     section, the Director shall--
       (1) establish standards to--
       (A) ensure that maps are adequate for--
       (i) flood risk determinations; and
       (ii) use by State and local governments in managing 
     development to reduce the risk of flooding; and
       (B) facilitate identification and use of consistent methods 
     of data collection and analysis by the Director, in 
     conjunction with State and local governments, in developing 
     maps for communities with similar flood risks, as determined 
     by the Director; and
       (2) publish maps in a format that is--
       (A) digital geospatial data compliant;
       (B) compliant with the open publishing and data exchange 
     standards established by the Open Geospatial Consortium; and
       (C) compliant with the North American Vertical Datum of 
     1998 for New Hydrologic and Hydraulic Engineering.
       (d) Communication and Outreach.--
       (1) In general.--The Director shall--
       (A) work to enhance communication and outreach to States, 
     local communities, and property owners about the effects of--
       (i) any potential changes to National Flood Insurance 
     Program rate maps that may result from the mapping program 
     required under this section; and
       (ii) that any such changes may have on flood insurance 
     purchase requirements; and
       (B) engage with local communities to enhance communication 
     and outreach to the residents of such communities on the 
     matters described under subparagraph (A).
       (2) Required activities.--The communication and outreach 
     activities required under paragraph (1) shall include--
       (A) notifying property owners when their properties become 
     included in, or when they are excluded from, an area having 
     special flood hazards and the effect of such inclusion or 
     exclusion on the applicability of the mandatory flood 
     insurance purchase requirement under section 102 of the Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4012a) to such 
     properties;
       (B) educating property owners regarding the flood risk and 
     reduction of this risk in their community, including the 
     continued flood risks to areas that are no longer subject to 
     the flood insurance mandatory purchase requirement;
       (C) educating property owners regarding the benefits and 
     costs of maintaining or acquiring flood insurance, including, 
     where applicable, lower-cost preferred risk policies under 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et 
     seq.) for such properties and the contents of such 
     properties;
       (D) educating property owners about flood map revisions and 
     the process available such owners to appeal proposed changes 
     in flood elevations through their community; and
       (E) encouraging property owners to maintain or acquire 
     flood insurance coverage.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Director to carry out this section 
     $400,000,000 for each of fiscal years 2008 through 2013.

     SEC. 120. REMOVAL OF LIMITATION ON STATE CONTRIBUTIONS FOR 
                   UPDATING FLOOD MAPS.

       Section 1360(f)(2) of the National Flood Insurance Act of 
     1968 (42 U.S.C. 4101(f)(2)) is amended by striking ``, but 
     which may not exceed 50 percent of the cost of carrying out 
     the requested revision or update''.

     SEC. 121. COORDINATION.

       (a) Interagency Budget Crosscut Report.--
       (1) In general.--The Secretary of Homeland Security, the 
     Director, the Director of the Office of Management and 
     Budget, and the heads of each Federal department or agency 
     carrying out activities under sections 118 and 119 shall work 
     together to ensure that flood risk determination data and 
     geospatial data are shared among Federal agencies in order to 
     coordinate the efforts of the Nation to reduce its 
     vulnerability to flooding hazards.
       (2) Report.--Not later than 30 days after the submission of 
     the budget of the United States Government by the President 
     to Congress, the Director of the Office of Management and 
     Budget, in coordination with the Federal Emergency Management 
     Agency, the United States Geological Survey, the National 
     Oceanic and Atmospheric Administration, the Corps of 
     Engineers, and other Federal agencies, as appropriate, shall 
     submit to the appropriate authorizing and appropriating 
     committees of the Senate and the House of Representatives a 
     financial report, certified by the Secretary or head of each 
     such agency, an interagency budget crosscut report that 
     displays the budget proposed for each of the Federal agencies 
     working on flood risk determination data and digital 
     elevation models, including any planned interagency or 
     intraagency transfers.
       (b) Duties of the Director.--In carrying out sections 118 
     and 119, the Director shall--
       (1) participate, pursuant to section 216 of Public Law 107-
     347 (116 Stat. 2945), in the establishment of such standards 
     and common protocols as are necessary to assure the 
     interoperability of geospatial data for all users of such 
     information;
       (2) coordinate with, seek assistance and cooperation of, 
     and provide liaison to the Federal Geographic Data Committee 
     pursuant to Office of Management and Budget Circular A-16 and 
     Executive Order 12906 for the implementation of and 
     compliance with such standards;
       (3) integrate with, leverage, and coordinate funding of, to 
     the maximum extent practicable, the current flood mapping 
     activities of each unit of State and local government;
       (4) integrate with, leverage, and coordinate, to the 
     maximum extent practicable, the current geospatial activities 
     of other Federal agencies and units of State and local 
     government; and
       (5) develop a funding strategy to leverage and coordinate 
     budgets and expenditures, and to establish joint funding 
     mechanisms with other Federal agencies and units of State and 
     local government to share the collection and utilization of 
     geospatial data among all governmental users.

     SEC. 122. INTERAGENCY COORDINATION STUDY.

       (a) In General.--The Director shall enter into a contract 
     with the National Academy of Public Administration to conduct 
     a study on how the Federal Emergency Management Agency--
       (1) should improve interagency and intergovernmental 
     coordination on flood mapping, including a funding strategy 
     to leverage and coordinate budgets and expenditures; and
       (2) can establish joint funding mechanisms with other 
     Federal agencies and units of State and local government to 
     share the collection and utilization of data among all 
     governmental users.
       (b) Timing.--Not later than 180 days after the date of 
     enactment of this title, the National Academy of Public 
     Administration shall report the findings of the study 
     required under subsection (a) to the--
       (1) Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       (2) Committee on Financial Services of the House of 
     Representatives;
       (3) Committee on Appropriations of the Senate; and
       (4) Committee on Appropriations of the House of 
     Representatives.

     SEC. 123. NONMANDATORY PARTICIPATION.

       (a) Nonmandatory Participation in National Flood Insurance 
     Program for 500-Year Floodplain.--Any area located within the 
     500-year floodplain shall not be subject to the mandatory 
     purchase requirements of sections 102 or 202 of the Flood 
     Disaster Protection Act of 1973 (42 U.S.C. 4012a, 4106).
       (b) Notice.--
       (1) By director.--In carrying out the National Flood 
     Insurance Program, the Director shall provide notice to any 
     community located in an area within the 500-year floodplain.
       (2) Timing of notice.--The notice required under paragraph 
     (1) shall be made not later than 6 months after the date of 
     completion of the initial mapping of the 500-year floodplain, 
     as required under section 118.
       (3) Lender required notice.--
       (A) Regulated lending institutions.--Each Federal or State 
     entity for lending regulation (after consultation and 
     coordination with the Federal Financial Institutions 
     Examination Council) shall, by regulation, require regulated 
     lending institutions, as a condition of making, increasing, 
     extending, or renewing any loan secured by property located 
     in an area within the

[[Page S4066]]

     500-year floodplain, to notify the purchaser or lessee (or 
     obtain satisfactory assurances that the seller or lessor has 
     notified the purchaser or lessee) and the servicer of the 
     loan that such property is located in an area within the 500-
     year floodplain, in a manner that is consistent with and 
     substantially identical to the notice required under section 
     1364(a)(1) of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4104a(a)(1)).
       (B) Federal or state agency lenders.--Each Federal or State 
     agency lender shall, by regulation, require notification in 
     the same manner as provided under subparagraph (A) with 
     respect to any loan that is made by a Federal or State agency 
     lender and secured by property located in an area within the 
     500-year floodplain.
       (C) Penalty for noncompliance.--Any regulated lending 
     institution or Federal or State agency lender that fails to 
     comply with the notice requirements established by this 
     paragraph shall be subject to the penalties prescribed under 
     section 102(f)(5) of the Flood Disaster Protection Act of 
     1973 (42 U.S.C. 4012a(f)(5)).

     SEC. 124. NOTICE OF FLOOD INSURANCE AVAILABILITY UNDER RESPA.

       Section 5(b) of the Real Estate Settlement Procedures Act 
     of 1974 (12 U.S.C. 2604(b)) is amended--
       (1) in paragraph (4), by striking ``; and'' and inserting a 
     semicolon;
       (2) in paragraph (5), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(6) an explanation of flood insurance and the 
     availability of flood insurance under the National Flood 
     Insurance Program, whether or not the real estate is located 
     in an area having special flood hazards.''.

     SEC. 125. TESTING OF NEW FLOODPROOFING TECHNOLOGIES.

       (a) Permissible Testing.--A temporary residential structure 
     built for the purpose of testing a new flood proofing 
     technology, as described in subsection (b), in any State or 
     community that receives mitigation assistance under section 
     1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4104c) may not be construed to be in violation of any flood 
     risk mitigation plan developed by that State or community and 
     approved by the Director of the Federal Emergency Management 
     Agency.
       (b) Conditions on Testing.--Testing permitted under 
     subsection (a) shall--
       (1) be performed on an uninhabited residential structure;
       (2) require dismantling of the structure at the conclusion 
     of such testing; and
       (3) require that all costs associated with such testing and 
     dismantling be covered by the individual or entity conducting 
     the testing, or on whose behalf the testing is conducted.
       (c) Rule of Construction.--Nothing in this section shall be 
     construed to alter, limit, or extend the availability of 
     flood insurance to any structure that may employ, utilize, or 
     apply any technology tested under subsection (b).

     SEC. 126. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 
                   PROGRAMS.

       Chapter I of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4011 et seq.) is amended by inserting after section 
     1313 the following:

     ``SEC. 1314. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 
                   PROGRAMS.

       ``(a) Requirement to Participate.--In the case of the 
     occurrence of a major disaster, as defined in section 102 of 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5122) that may have resulted in 
     flood damage under the flood insurance program established 
     under this chapter and other personal lines residential 
     property insurance coverage offered by a State regulated 
     insurer, upon request made by the insurance commissioner of a 
     State (or such other official responsible for regulating the 
     business of insurance in the State) for the participation of 
     representatives of the Director in a program sponsored by 
     such State for nonbinding mediation of insurance claims 
     resulting from a major disaster, the Director shall cause 
     representatives of the flood insurance program to participate 
     in such a State program where claims under the flood 
     insurance program are involved to expedite settlement of 
     flood damage claims resulting from such disaster.
       ``(b) Extent of Participation.--In satisfying the 
     requirements of subsection (a), the Director shall require 
     that each representative of the Director--
       ``(1) be certified for purposes of the flood insurance 
     program to settle claims against such program resulting from 
     such disaster in amounts up to the limits of policies under 
     such program;
       ``(2) attend State-sponsored mediation meetings regarding 
     flood insurance claims resulting from such disaster at such 
     times and places as may be arranged by the State;
       ``(3) participate in good faith negotiations toward the 
     settlement of such claims with policyholders of coverage made 
     available under the flood insurance program; and
       ``(4) finalize the settlement of such claims on behalf of 
     the flood insurance program with such policyholders.
       ``(c) Coordination.--Representatives of the Director shall 
     at all times coordinate their activities with insurance 
     officials of the State and representatives of insurers for 
     the purposes of consolidating and expediting settlement of 
     claims under the national flood insurance program resulting 
     from such disaster.
       ``(d) Qualifications of Mediators.--Each State mediator 
     participating in State-sponsored mediation under this section 
     shall be--
       ``(1)(A) a member in good standing of the State bar in the 
     State in which the mediation is to occur with at least 2 
     years of practical experience; and
       ``(B) an active member of such bar for at least 1 year 
     prior to the year in which such mediator's participation is 
     sought; or
       ``(2) a retired trial judge from any United States 
     jurisdiction who was a member in good standing of the bar in 
     the State in which the judge presided for at least 5 years 
     prior to the year in which such mediator's participation is 
     sought.
       ``(e) Mediation Proceedings and Documents Privileged.--As a 
     condition of participation, all statements made and documents 
     produced pursuant to State-sponsored mediation involving 
     representatives of the Director shall be deemed privileged 
     and confidential settlement negotiations made in anticipation 
     of litigation.
       ``(f) Liability, Rights, or Obligations Not Affected.--
     Participation in State-sponsored mediation, as described in 
     this section does not--
       ``(1) affect or expand the liability of any party in 
     contract or in tort; or
       ``(2) affect the rights or obligations of the parties, as 
     established--
       ``(A) in any regulation issued by the Director, including 
     any regulation relating to a standard flood insurance policy;
       ``(B) under this Act; and
       ``(C) under any other provision of Federal law.
       ``(g) Exclusive Federal Jurisdiction.--Participation in 
     State-sponsored mediation shall not alter, change, or modify 
     the original exclusive jurisdiction of United States courts, 
     as set forth in this Act.
       ``(h) Cost Limitation.--Nothing in this section shall be 
     construed to require the Director or a representative of the 
     Director to pay additional mediation fees relating to flood 
     insurance claims associated with a State-sponsored mediation 
     program in which such representative of the Director 
     participates.
       ``(i) Exception.--In the case of the occurrence of a major 
     disaster that results in flood damage claims under the 
     national flood insurance program and that does not result in 
     any loss covered by a personal lines residential property 
     insurance policy--
       ``(1) this section shall not apply; and
       ``(2) the provisions of the standard flood insurance policy 
     under the national flood insurance program and the appeals 
     process established under section 205 of the Bunning-
     Bereuter-Blumen-auer Flood Insurance Reform Act of 2004 (42 
     U.S.C. 4011 note) and the regulations issued pursuant to such 
     section shall apply exclusively.
       ``(j) Representatives of the Director.--For purposes of 
     this section, the term `representatives of the Director' 
     means representatives of the national flood insurance program 
     who participate in the appeals process established under 
     section 205 of the Bunning-Bereuter-Blumenauer Flood 
     Insurance Reform Act of 2004 (42 U.S.C. 4011 note).''.

     SEC. 127. REITERATION OF FEMA RESPONSIBILITIES UNDER THE 2004 
                   REFORM ACT.

       (a) Minimum Training and Education Requirements.--The 
     Director shall continue to work with the insurance industry, 
     State insurance regulators, and other interested parties to 
     implement the minimum training and education standards for 
     all insurance agents who sell flood insurance policies, as 
     such standards were determined by the Director in the notice 
     published in the Federal Register on September 1, 2005 (70 
     Fed. Reg. 52117) pursuant to section 207 of the Bunning-
     Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 
     U.S.C. 4011 note).
       (b) Report on the Overall Implementation of the Reform Act 
     of 2004.--Not later than 3 months after the date of the 
     enactment of this title, the Director shall submit a report 
     to Congress--
       (1) describing the implementation of each provision of the 
     Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 
     2004 (Public Law 108-264; 118 Stat. 712);
       (2) identifying each regulation, order, notice, and other 
     material issued by the Director in implementing each 
     provision of that Act;
       (3) explaining any statutory or implied deadlines that have 
     not been met; and
       (4) providing an estimate of when the requirements of such 
     missed deadlines will be fulfilled.

     SEC. 128. ADDITIONAL AUTHORITY OF FEMA TO COLLECT INFORMATION 
                   ON CLAIMS PAYMENTS.

       (a) In General.--The Director shall collect, from property 
     and casualty insurance companies that are authorized by the 
     Director to participate in the Write Your Own program any 
     information and data needed to determine the accuracy of the 
     resolution of flood claims filed on any property insured with 
     a standard flood insurance policy obtained under the program 
     that was subject to a flood.
       (b) Type of Information To Be Collected.--The information 
     and data to be collected under subsection (a) may include--
       (1) any adjuster estimates made as a result of flood 
     damage, and if the insurance company also insures the 
     property for wind damage--
       (A) any adjuster estimates for both wind and flood damage;
       (B) the amount paid to the property owner for wind and 
     flood claims;
       (C) the total amount paid to the policyholder for damages 
     as a result of the event that caused the flooding and other 
     losses;
       (2) any amounts paid to the policyholder by the insurance 
     company for damages to the insured property other than flood 
     damages; and
       (3) the total amount paid to the policyholder by the 
     insurance company for all damages incurred to the insured 
     property as a result of the flood.

     SEC. 129. EXPENSE REIMBURSEMENTS OF INSURANCE COMPANIES.

       (a) Submission of Biennial Reports.--
       (1) To the director.--Not later than 20 days after the date 
     of enactment of this title, each

[[Page S4067]]

     property and casualty insurance company that is authorized by 
     the Director to participate in the Write Your Own program 
     shall submit to the Director any biennial report prepared in 
     the prior 5 years by such company.
       (2) To gao.--Not later than 10 days after the submission of 
     the biennial reports under paragraph (1), the Director shall 
     submit all such reports to the Comptroller General of the 
     United States.
       (3) Notice to congress of failure to comply.--The Director 
     shall notify and report to the Committee on Banking, Housing, 
     and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives on any 
     property and casualty insurance company participating in the 
     Write Your Own program that failed to submit its biennial 
     reports as required under paragraph (1).
       (4) Failure to comply.--A property and casualty insurance 
     company that is authorized by the Director to participate in 
     the Write Your Own program which fails to comply with the 
     reporting requirement under this subsection or the 
     requirement under section 62.23(j)(1) of title 44, Code of 
     Federal Regulations (relating to biennial audit of the flood 
     insurance financial statements) shall be subject to a civil 
     penalty in an amount equal to $1,000 per day for each day 
     that the company remains in noncompliance with either such 
     requirement.
       (b) FEMA Rulemaking on Expenses of WYO Program.--Not later 
     than 180 days after the date of enactment of this title, the 
     Director shall conduct a rulemaking proceeding to devise a 
     data collection methodology to allow the Federal Emergency 
     Management Agency to collect consistent information on the 
     expenses (including the operating and administrative expenses 
     for adjustment of claims) of property and casualty insurance 
     companies participating in the Write Your Own program for 
     selling, writing, and servicing, standard flood insurance 
     policies.
       (c) Submission of Expense Reports.--Not later than 60 days 
     after the effective date of the final rule established 
     pursuant to subsection (b), each property and casualty 
     insurance company participating in the Write Your Own program 
     shall submit a report to the Director that details for the 
     prior 5 years the expense levels of each such company for 
     selling, writing, and servicing standard flood insurance 
     policies based on the methodologies established under 
     subsection (b).
       (d) FEMA Rulemaking on Reimbursement of Expenses Under the 
     WYO Program.--Not later than 15 months after the date of 
     enactment of this title, the Director shall conduct a 
     rulemaking proceeding to formulate revised expense 
     reimbursements to property and casualty insurance companies 
     participating in the Write Your Own program for their 
     expenses (including their operating and administrative 
     expenses for adjustment of claims) in selling, writing, and 
     servicing standard flood insurance policies, including how 
     such companies shall be reimbursed in both catastrophic and 
     non-catastrophic years. Such reimbursements shall be 
     structured to ensure reimbursements track the actual 
     expenses, including standard business costs and operating 
     expenses, of such companies as close as practicably possible.
       (e) Report of the Director.--Not later than 60 days after 
     the effective date of any final rule established pursuant to 
     subsection (b) or subsection (d), the Director shall submit 
     to the Committee on Banking, Housing, and Urban Affairs of 
     the Senate and the Committee on Financial Services of the 
     House of Representatives a report containing--
       (1) the specific rationale and purposes of such rule;
       (2) the reasons for the adoption of the policies contained 
     in such rule; and
       (3) the degree to which such rule accurately represents the 
     true operating costs and expenses of property and casualty 
     insurance companies participating in the Write Your Own 
     program.
       (f) GAO Study and Report on Expenses of WYO Program.--
       (1) Study.--Not later than 180 days after the effective 
     date of the final rule established pursuant to subsection 
     (d), the Comptroller General of the United States shall--
       (A) conduct a study on the efficacy, adequacy, and 
     sufficiency of the final rules established pursuant to 
     subsections (b) and (d); and
       (B) report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives on the findings of the study 
     conducted under subparagraph (A).
       (2) GAO authority.--In conducting the study and report 
     required under paragraph (1), the Comptroller General--
       (A) may use any previous findings, studies, or reports that 
     the Comptroller General previously completed on the Write 
     Your Own program;
       (B) shall determine if--
       (i) the final rules established pursuant to subsections (b) 
     and (d) allow the Federal Emergency Management Agency to 
     access adequate information regarding the actual expenses of 
     property and casualty insurance companies participating in 
     the Write Your Own program; and
       (ii) the actual reimbursements paid out under the final 
     rule established in subsection (d) accurately reflect the 
     expenses reported by property and casualty insurance 
     companies participating in the Write Your Own program, 
     including the standard business costs and operating expenses 
     of such companies; and
       (C) shall analyze the effect of such rules on the level of 
     participation of property and casualty insurers in the Write 
     Your Own program.

     SEC. 130. EXTENSION OF PILOT PROGRAM FOR MITIGATION OF SEVERE 
                   REPETITIVE LOSS PROPERTIES.

       (a) In General.--Section 1361A of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4102a) is amended--
       (1) in subsection (k)(1)--
       (A) in the first sentence, by striking ``in each of fiscal 
     years 2005, 2006, 2007, 2008, and 2009'' and inserting ``in 
     each fiscal year through fiscal year 2013''; and
       (B) by adding at the end the following new sentence: ``For 
     fiscal years 2008 through the 2013, the total amount that the 
     Director may use to provide assistance under this section 
     shall not exceed $240,000,000.''; and
       (2) by striking subsection (l).
       (b) Report to Congress on Implementation Status.--Not later 
     than 6 months after the date of enactment of this title, the 
     Director shall report to the Committee on Banking, Housing, 
     and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives on the 
     status of the implementation of the pilot program for severe 
     repetitive loss properties authorized under section 1361A of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4102a).
       (c) Rulemaking.--No later than 90 days after the date of 
     enactment of this title, the Director shall issue final rules 
     to carry out the severe repetitive loss pilot program 
     authorized under section 1361A of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4102a).

     SEC. 131. FLOOD INSURANCE ADVOCATE.

       Chapter II of the National Flood Insurance Act of 1968 is 
     amended by inserting after section 1330 (42 U.S.C. 4041) the 
     following new section:

     ``SEC. 1330A. OFFICE OF THE FLOOD INSURANCE ADVOCATE.

       ``(a) Establishment of Position.--
       ``(1) In general.--There shall be in the Federal Emergency 
     Management Agency an Office of the Flood Insurance Advocate 
     which shall be headed by the National Flood Insurance 
     Advocate. The National Flood Insurance Advocate shall--
       ``(A) to the extent amounts are provided pursuant to 
     subsection (n), be compensated at the same rate as the 
     highest rate of basic pay established for the Senior 
     Executive Service under section 5382 of title 5, United 
     States Code, or, if the Director so determines, at a rate 
     fixed under section 9503 of such title;
       ``(B) be appointed by the Director without regard to 
     political affiliation;
       ``(C) report to and be under the general supervision of the 
     Director, but shall not report to, or be subject to 
     supervision by, any other officer of the Federal Emergency 
     Management Agency; and
       ``(D) consult with the Assistant Administrator for 
     Mitigation or any successor thereto, but shall not report to, 
     or be subject to the general supervision by, the Assistant 
     Administrator for Mitigation or any successor thereto.
       ``(2) Qualifications.--An individual appointed under 
     paragraph (1)(B) shall have a background in customer service, 
     or experience representing insureds, as well as experience in 
     investigations or audits.
       ``(3) Restriction on employment.--An individual may be 
     appointed as the National Flood Insurance Advocate only if 
     such individual was not an officer or employee of the Federal 
     Emergency Management Agency with duties relating to the 
     national flood insurance program during the 2-year period 
     ending with such appointment and such individual agrees not 
     to accept any employment with the Federal Emergency 
     Management Agency for at least 2 years after ceasing to be 
     the National Flood Insurance Advocate. Service as an employee 
     of the National Flood Insurance Advocate shall not be taken 
     into account in applying this paragraph.
       ``(4) Staff.--To the extent amounts are provided pursuant 
     to subsection (n), the National Flood Insurance Advocate may 
     employ such personnel as may be necessary to carry out the 
     duties of the Office.
       ``(5) Independence.--The Director shall not prevent or 
     prohibit the National Flood Insurance Advocate from 
     initiating, carrying out, or completing any audit or 
     investigation, or from issuing any subpoena or summons during 
     the course of any audit or investigation.
       ``(6) Removal.--The President and the Director shall have 
     the power to remove, discharge, or dismiss the National Flood 
     Insurance Advocate. Not later than 15 days after the removal, 
     discharge, or dismissal of the Advocate, the President or the 
     Director shall report to the Committee on Banking of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives on the basis for such removal, discharge, 
     or dismissal.
       ``(b) Functions of Office.--It shall be the function of the 
     Office of the Flood Insurance Advocate to--
       ``(1) assist injure under the national flood insurance 
     program in resolving problems with the Federal Emergency 
     Management Agency relating to such program;
       ``(2) identify areas in which such injure have problems in 
     dealings with the Federal Emergency Management Agency 
     relating to such program;
       ``(3) propose changes in the administrative practices of 
     the Federal Emergency Management Agency to mitigate problems 
     identified under paragraph (2);
       ``(4) identify potential legislative, administrative, or 
     regulatory changes which may be appropriate to mitigate such 
     problems;
       ``(5) conduct, supervise, and coordinate--
       ``(A) systematic and random audits and investigations of 
     insurance companies and associated entities that sell or 
     offer policies under the National Flood Insurance Program to 
     determine whether such insurance companies or associated 
     entities are allocating only flood losses under such 
     insurance policies to the National Flood Insurance Program; 
     and
       ``(B) audits and investigations to determine if an 
     insurance company or associated entity described under 
     subparagraph (A) is negotiating on behalf of the National 
     Flood Insurance Program with third parties in good faith;
       ``(6) conduct, supervise, and coordinate investigations 
     into the operations of the national flood insurance program 
     for the purpose of--

[[Page S4068]]

       ``(A) promoting economy and efficiency in the 
     administration of such program;
       ``(B) preventing and detecting fraud and abuse in the 
     program; and
       ``(C) identifying, and referring to the Attorney General 
     for prosecution, any participant in such fraud or abuse; and
       ``(7) identify and investigate conflicts of interest that 
     undermine the economy and efficiency of the national flood 
     insurance program.
       ``(c) Authority of the National Flood Insurance Advocate.--
     The National Flood Insurance Advocate may--
       ``(1) have access to all records, reports, audits, reviews, 
     documents, papers, recommendations, or other material 
     available to the Director which relate to administration or 
     operation of the national flood insurance program with 
     respect to which the National Flood Insurance Advocate has 
     responsibilities under this section, including information 
     submitted pursuant to Section 128 of this Act;
       ``(2) undertake such investigations and reports relating to 
     the administration or operation of the national flood 
     insurance program as are, in the judgment of the National 
     Flood Insurance Advocate, necessary or desirable;
       ``(3) request such information or assistance as may be 
     necessary for carrying out the duties and responsibilities 
     provided by this section from any Federal, State, or local 
     governmental agency or unit thereof;
       ``(4) request the production of information, documents, 
     reports, answers, records (including phone records), 
     accounts, papers, emails, hard drives, backup tapes, 
     software, audio or visual aides, and any other data and 
     documentary evidence necessary in the performance of the 
     functions assigned to the National Flood Insurance Advocate 
     by this section;
       ``(5) request the testimony of any person in the employ of 
     any insurance company or associated entity participating in 
     the National Flood Insurance Program, described under 
     subsection (b)(5)(A), or any successor to such company or 
     entity, including any member of the board of such company or 
     entity, any trustee of such company or entity, any partner in 
     such company or entity, or any agent or representative of 
     such company or entity;
       ``(6) select, appoint, and employ such officers and 
     employees as may be necessary for carrying out the functions, 
     powers, and duties of the Office subject to the provisions of 
     title 5, United States Code, governing appointments in the 
     competitive service, and the provisions of chapter 51 and 
     subchapter III of chapter 53 of such title relating to 
     classification and General Schedule pay rates;
       ``(7) obtain services as authorized by section 3109 of 
     title 5, United States Code, at daily rates not to exceed the 
     equivalent rate prescribed for the rate of basic pay for a 
     position at level IV of the Executive Schedule; and
       ``(8) to the extent and in such amounts as may be provided 
     in advance by appropriations Acts, enter into contracts and 
     other arrangements for audits, studies, analyses, and other 
     services with public agencies and with private persons, and 
     to make such payments as may be necessary to carry out the 
     provisions of this section.
       ``(d) Additional Duties of the NFIA.--The National Flood 
     Insurance Advocate shall--
       ``(1) monitor the coverage and geographic allocation of 
     regional offices of flood insurance advocates;
       ``(2) develop guidance to be distributed to all Federal 
     Emergency Management Agency officers and employees having 
     duties with respect to the national flood insurance program, 
     outlining the criteria for referral of inquiries by insureds 
     under such program to regional offices of flood insurance 
     advocates;
       ``(3) ensure that the local telephone number for each 
     regional office of the flood insurance advocate is published 
     and available to such insureds served by the office; and
       ``(4) establish temporary State or local offices where 
     necessary to meet the needs of qualified insureds following a 
     flood event.
       ``(e) Other Responsibilities.--
       ``(1) Additional requirements relating to certain audits.--
     Prior to conducting any audit or investigation relating to 
     the allocation of flood losses under subsection (b)(5)(A), 
     the National Flood Insurance Advocate may--
       ``(A) consult with appropriate subject-matter experts to 
     identify the data necessary to determine whether flood claims 
     paid by insurance companies or associated entities on behalf 
     the national flood insurance program reflect damages caused 
     by flooding;
       ``(B) collect or compile the data identified in 
     subparagraph (A), utilizing existing data sources to the 
     maximum extent practicable; and
       ``(C) establish policies, procedures, and guidelines for 
     application of such data in all audits and investigations 
     authorized under this section.
       ``(2) Annual reports.--
       ``(A) Activities.--Not later than December 31 of each 
     calendar year, the National Flood Insurance Advocate shall 
     report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives on the activities of the 
     Office of the Flood Insurance Advocate during the fiscal year 
     ending during such calendar year. Any such report shall 
     contain a full and substantive analysis of such activities, 
     in addition to statistical information, and shall--
       ``(i) identify the initiatives the Office of the Flood 
     Insurance Advocate has taken on improving services for 
     insureds under the national flood insurance program and 
     responsiveness of the Federal Emergency Management Agency 
     with respect to such initiatives;
       ``(ii) describe the nature of recommendations made to the 
     Director under subsection (i);
       ``(iii) contain a summary of the most serious problems 
     encountered by such insureds, including a description of the 
     nature of such problems;
       ``(iv) contain an inventory of any items described in 
     clauses (i), (ii), and (iii) for which action has been taken 
     and the result of such action;
       ``(v) contain an inventory of any items described in 
     clauses (i), (ii), and (iii) for which action remains to be 
     completed and the period during which each item has remained 
     on such inventory;
       ``(vi) contain an inventory of any items described in 
     clauses (i), (ii), and (iii) for which no action has been 
     taken, the period during which each item has remained on such 
     inventory and the reasons for the inaction;
       ``(vii) identify any Flood Insurance Assistance 
     Recommendation which was not responded to by the Director in 
     a timely manner or was not followed, as specified under 
     subsection (i);
       ``(viii) contain recommendations for such administrative 
     and legislative action as may be appropriate to resolve 
     problems encountered by such insureds;
       ``(ix) identify areas of the law or regulations relating to 
     the national flood insurance program that impose significant 
     compliance burdens on such insureds or the Federal Emergency 
     Management Agency, including specific recommendations for 
     remedying these problems;
       ``(x) identify the most litigated issues for each category 
     of such insureds, including recommendations for mitigating 
     such disputes;
       ``(xi) identify ways to promote the economy, efficiency, 
     and effectiveness in the administration of the national flood 
     insurance program;
       ``(xii) identify fraud and abuse in the national flood 
     insurance program; and
       ``(xiii) include such other information as the National 
     Flood Insurance Advocate may deem advisable.
       ``(B) Direct submission of report.--Each report required 
     under this paragraph shall be provided directly to the 
     committees identified in subparagraph (A) without any prior 
     review or comment from the Director, the Secretary of 
     Homeland Security, or any other officer or employee of the 
     Federal Emergency Management Agency or the Department of 
     Homeland Security, or the Office of Management and Budget.
       ``(3) Information and assistance from other agencies.--
       ``(A) In general.--Upon request of the National Flood 
     Insurance Advocate for information or assistance under this 
     section, the head of any Federal agency shall, insofar as is 
     practicable and not in contravention of any statutory 
     restriction or regulation of the Federal agency from which 
     the information is requested, furnish to the National Flood 
     Insurance Advocate, or to an authorized designee of the 
     National Flood Insurance Advocate, such information or 
     assistance.
       ``(B) Refusal to comply.--Whenever information or 
     assistance requested under this subsection is, in the 
     judgment of the National Flood Insurance Advocate, 
     unreasonably refused or not provided, the National Flood 
     Insurance Advocate shall report the circumstances to the 
     Director without delay.
       ``(f) Compliance With GAO Standards.--In carrying out the 
     responsibilities established under this section, the National 
     Flood Insurance Advocate shall--
       ``(1) comply with standards established by the Comptroller 
     General of the United States for audits of Federal 
     establishments, organizations, programs, activities, and 
     functions;
       ``(2) establish guidelines for determining when it shall be 
     appropriate to use non-Federal auditors;
       ``(3) take appropriate steps to assure that any work 
     performed by non-Federal auditors complies with the standards 
     established by the Comptroller General as described in 
     paragraph (1); and
       ``(4) take the necessary steps to minimize the publication 
     of proprietary and trade secrets information.
       ``(g) Personnel Actions.--
       ``(1) In general.--The National Flood Insurance Advocate 
     shall have the responsibility and authority to--
       ``(A) appoint regional flood insurance advocates in a 
     manner that will provide appropriate coverage based upon 
     regional flood insurance program participation; and
       ``(B) hire, evaluate, and take personnel actions (including 
     dismissal) with respect to any employee of any regional 
     office of a flood insurance advocate described in 
     subparagraph (A).
       ``(2) Consultation.--The National Flood Insurance Advocate 
     may consult with the appropriate supervisory personnel of the 
     Federal Emergency Management Agency in carrying out the 
     National Flood Insurance Advocate's responsibilities under 
     this subsection.
       ``(h) Operation of Regional Offices.--
       ``(1) In general.--Each regional flood insurance advocate 
     appointed pursuant to subsection (d)--
       ``(A) shall report to the National Flood Insurance Advocate 
     or delegate thereof;
       ``(B) may consult with the appropriate supervisory 
     personnel of the Federal Emergency Management Agency 
     regarding the daily operation of the regional office of the 
     flood insurance advocate;
       ``(C) shall, at the initial meeting with any insured under 
     the national flood insurance program seeking the assistance 
     of a regional office of the flood insurance advocate, notify 
     such insured that the flood insurance advocate offices 
     operate independently of any other Federal Emergency 
     Management Agency office and report directly to Congress 
     through the National Flood Insurance Advocate; and
       ``(D) may, at the flood insurance advocate's discretion, 
     not disclose to the Director contact with, or information 
     provided by, such insured.
       ``(2) Maintenance of independent communications.--Each 
     regional office of the flood insurance advocate shall 
     maintain a separate

[[Page S4069]]

     phone, facsimile, and other electronic communication access.
       ``(i) Flood Insurance Assistance Recommendations.--
       ``(1) Authority to issue.--Upon application filed by a 
     qualified insured with the Office of the Flood Insurance 
     Advocate (in such form, manner, and at such time as the 
     Director shall by regulation prescribe), the National Flood 
     Insurance Advocate may issue a Flood Insurance Assistance 
     Recommendation, if the Advocate finds that the qualified 
     insured is suffering a significant hardship, such as a 
     significant delay in resolving claims where the insured is 
     incurring significant costs as a result of such delay, or 
     where the insured is at risk of adverse action, including the 
     loss of property, as a result of the manner in which the 
     flood insurance laws are being administered by the Director.
       ``(2) Terms of a flood insurance assistance 
     recommendation.--The terms of a Flood Insurance Assistance 
     Recommendation may recommend to the Director that the 
     Director, within a specified time period, cease any action, 
     take any action as permitted by law, or refrain from taking 
     any action, including the payment of claims, with respect to 
     the qualified insured under any other provision of law which 
     is specifically described by the National Flood Insurance 
     Advocate in such recommendation.
       ``(3) Director response.--Not later than 15 days after the 
     receipt of any Flood Insurance Assistance Recommendation 
     under this subsection, the Director shall respond in writing 
     as to--
       ``(A) whether such recommendation was followed;
       ``(B) why such recommendation was or was not followed; and
       ``(C) what, if any, additional actions were taken by the 
     Director to prevent the hardship indicated in such 
     recommendation.
       ``(4) Responsibilities of director.--The Director shall 
     establish procedures requiring a formal response consistent 
     with the requirements of paragraph (3) to all recommendations 
     submitted to the Director by the National Flood Insurance 
     Advocate under this subsection.
       ``(j) Reporting of Potential Criminal Violations.--In 
     carrying out the duties and responsibilities established 
     under this section, the National Flood Insurance Advocate 
     shall report expeditiously to the Attorney General whenever 
     the National Flood Insurance Advocate has reasonable grounds 
     to believe there has been a violation of Federal criminal 
     law.
       ``(k) Coordination.--
       ``(1) With other federal agencies.--In carrying out the 
     duties and responsibilities established under this section, 
     the National Flood Insurance Advocate--
       ``(A) shall give particular regard to the activities of the 
     Inspector General of the Department of Homeland Security with 
     a view toward avoiding duplication and insuring effective 
     coordination and cooperation; and
       ``(B) may participate, upon request of the Inspector 
     General of the Department of Homeland Security, in any audit 
     or investigation conducted by the Inspector General.
       ``(2) With state regulators.--In carrying out any 
     investigation or audit under this section, the National Flood 
     Insurance Advocate shall coordinate its activities and 
     efforts with any State insurance authority that is 
     concurrently undertaking a similar or related investigation 
     or audit.
       ``(3) Avoidance of redundancies in the resolution of 
     problems.--In providing any assistance to a policyholder 
     pursuant to paragraphs (1) and (2) of subsection (b), the 
     National Flood Insurance Advocate shall consult with the 
     Director to eliminate, avoid, or reduce any redundancies in 
     actions that may arise as a result of the actions of the 
     National Flood Insurance Advocate and the claims appeals 
     process described under section 62.20 of title 44, Code of 
     Federal Regulations.
       ``(l) Authority of the Director To Levy Penalties.--The 
     Director and the Advocate shall establish procedures to take 
     appropriate action against an insurance company, including 
     monetary penalties and removal or suspension from the 
     program, when a company refuses to cooperate with an 
     investigation or audit under this section or where a finding 
     has been made of improper conduct.
       ``(m) Definitions.--For purposes of this subsection:
       ``(1) Associated entity.--The term `associated entity' 
     means any person, corporation, or other legal entity that 
     contracts with the Director or an insurance company to 
     provide adjustment services, benefits calculation services, 
     claims services, processing services, or record keeping 
     services in connection with standard flood insurance policies 
     made available under the national flood insurance program.
       ``(2) Insurance company.--The term `insurance company' 
     refers to any property and casualty insurance company that is 
     authorized by the Director to participate in the Write Your 
     Own program under the national flood insurance program.
       ``(3) National flood insurance advocate.--The term 
     `National Flood Insurance Advocate' includes any designee of 
     the National Flood Insurance Advocate.
       ``(4) Qualified insured.--The term `qualified insured' 
     means an insured under coverage provided under the national 
     flood insurance program under this title.
       ``(n) Funding.--Pursuant to section 1310(a)(8), the 
     Director may use amounts from the National Flood Insurance 
     Fund to fund the activities of the Office of the Flood 
     Advocate in each of fiscal years 2009 through 2014, except 
     that the amount so used in each such fiscal year may not 
     exceed $5,000,000 and shall remain available until expended. 
     Notwithstanding any other provision of this title, amounts 
     made available pursuant to this subsection shall not be 
     subject to offsetting collections through premium rates for 
     flood insurance coverage under this title.''.

     SEC. 132. STUDIES AND REPORTS.

       (a) Report on Expanding the National Flood Insurance 
     Program.--Not later than 1 year after the date of the 
     enactment of this title, the Comptroller General of the 
     United States shall conduct a study and submit a report to 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives, on--
       (1) the number of flood insurance policy holders currently 
     insuring--
       (A) a residential structure up to the maximum available 
     coverage amount, as established in section 61.6 of title 44, 
     Code of Federal Regulations, of--
       (i) $250,000 for the structure; and
       (ii) $100,000 for the contents of such structure; or
       (B) a commercial structure up to the maximum available 
     coverage amount, as established in section 61.6 of title 44, 
     Code of Federal Regulations, of $500,000;
       (2) the increased losses the National Flood Insurance 
     Program would have sustained during the 2004 and 2005 
     hurricane season if the National Flood Insurance Program had 
     insured all policyholders up to the maximum conforming loan 
     limit for fiscal year 2006 of $417,000, as established under 
     section 302(b)(2) of the Federal National Mortgage 
     Association Charter Act (12 U.S.C. 1717(b)(2));
       (3) the availability in the private marketplace of flood 
     insurance coverage in amounts that exceed the current limits 
     of coverage amounts established in section 61.6 of title 44, 
     Code of Federal Regulations; and
       (4) what effect, if any--
       (A) raising the current limits of coverage amounts 
     established in section 61.6 of title 44, Code of Federal 
     Regulations, would have on the ability of private insurers to 
     continue providing flood insurance coverage; and
       (B) reducing the current limits of coverage amounts 
     established in section 61.6 of title 44, Code of Federal 
     Regulations, would have on the ability of private insurers to 
     provide sufficient flood insurance coverage to effectively 
     replace the current level of flood insurance coverage being 
     provided under the National Flood Insurance Program.
       (b) Report of the Director on Activities Under the National 
     Flood Insurance Program.--
       (1) In general.--The Director shall, on an annual basis, 
     submit a full report on the operations, activities, budget, 
     receipts, and expenditures of the National Flood Insurance 
     Program for the preceding 12-month period to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives.
       (2) Timing.--Each report required under paragraph (1) shall 
     be submitted to the committees described in paragraph (1) not 
     later than 3 months following the end of each fiscal year.
       (3) Contents.--Each report required under paragraph (1) 
     shall include--
       (A) the current financial condition and income statement of 
     the National Flood Insurance Fund established under section 
     1310 of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4017), including--
       (i) premiums paid into such Fund;
       (ii) policy claims against such Fund; and
       (iii) expenses in administering such Fund;
       (B) the number and face value of all policies issued under 
     the National Flood Insurance Program that are in force;
       (C) a description and summary of the losses attributable to 
     repetitive loss structures;
       (D) a description and summary of all losses incurred by the 
     National Flood Insurance Program due to--
       (i) hurricane related damage; and
       (ii) nonhurricane related damage;
       (E) the amounts made available by the Director for 
     mitigation assistance under section 1366(e)(5) of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4104c(e)(5)) 
     for the purchase of properties substantially damaged by flood 
     for that fiscal year, and the actual number of flood damaged 
     properties purchased and the total cost expended to purchase 
     such properties;
       (F) the estimate of the Director as to the average 
     historical loss year, and the basis for that estimate;
       (G) the estimate of the Director as to the maximum amount 
     of claims that the National Flood Insurance Program would 
     have to expend in the event of a catastrophic year;
       (H) the average--
       (i) amount of insurance carried per flood insurance policy;
       (ii) premium per flood insurance policy; and
       (iii) loss per flood insurance policy; and
       (I) the number of claims involving damages in excess of the 
     maximum amount of flood insurance available under the 
     National Flood Insurance Program and the sum of the amount of 
     all damages in excess of such amount.
       (c) GAO Study on Pre-FIRM Structures.--Not later than 1 
     year after the date of the enactment of this title, the 
     Comptroller General of the United States shall conduct a 
     study and submit a report to the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives, on the--
       (1) composition of the remaining pre-FIRM structures that 
     are explicitly receiving discounted premium rates under 
     section 1307 of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4104), including the historical basis for the receipt 
     of such subsidy and whether such subsidy has outlasted its 
     purpose;
       (2) number and fair market value of such structures;

[[Page S4070]]

       (3) respective income level of each owner of such 
     structure;
       (4) number of times each such structure has been sold since 
     1968, including specific dates, sales price, and any other 
     information the Secretary determines appropriate;
       (5) total losses incurred by such structures since the 
     establishment of the National Flood Insurance Program 
     compared to the total losses incurred by all structures that 
     are charged a nondiscounted premium rate;
       (6) total cost of foregone premiums since the establishment 
     of the National Flood Insurance Program, as a result of the 
     subsidies provided to such structures;
       (7) annual cost to the taxpayer, as a result of the 
     subsidies provided to such structures;
       (8) the premium income collected and the losses incurred by 
     the National Flood Insurance Program as a result of such 
     explicitly subsidized structures compared to the premium 
     income collected and the losses incurred by such Program as 
     result of structures that are charged a nondiscounted premium 
     rate, on a State-by-State basis; and
       (9) the most efficient way to eliminate the subsidy to such 
     structures.
       (d) GAO Review of FEMA Contractors.--The Comptroller 
     General of the United States, in conjunction with the 
     Department of Homeland Security's Inspectors general Office, 
     shall--
       (1) conduct a review of the 3 largest contractors the 
     Director uses in administering the National Flood Insurance 
     Program; and
       (2) not later than 18 months after the date of enactment of 
     this title, submit a report on the findings of such review to 
     the Director, the Committee on Banking, Housing, and Urban 
     Affairs of the Senate, and the Committee on Financial 
     Services of the House of Representatives.

     SEC. 133. FEASIBILITY STUDY ON PRIVATE REINSURANCE.

       Not later than 1 year after the date of enactment of this 
     Act, the Comptroller General of the United States shall 
     conduct and submit a report to Congress on--
       (1) the feasibility of requiring the Director, as part of 
     carrying out the responsibilities of the Director under the 
     National Flood Insurance Program, to purchase private 
     reinsurance or retrocessional coverage, in addition to any 
     such reinsurance coverage required under section 1335 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4055), to 
     underlying primary private insurers for losses arising due to 
     flood insurance coverage provided by such insurers;
       (2) the feasibility of repealing the reinsurance 
     requirement under such section 1335, and requiring the 
     Director, as part of carrying out the responsibilities of the 
     Director under the National Flood Insurance Program, to 
     purchase private reinsurance or retrocessional coverage to 
     underlying primary private insurers for losses arising due to 
     flood insurance coverage provided by such insurer; and
       (3) the estimated total savings to the taxpayer of taking 
     each such action described in paragraph (1) or (2).

     SEC. 134. POLICY DISCLOSURES.

       (a) In General.--Notwithstanding any other provision of 
     law, in addition to any other disclosures that may be 
     required, each policy under the National Flood Insurance 
     Program shall state all conditions, exclusions, and other 
     limitations pertaining to coverage under the subject policy, 
     regardless of the underlying insurance product, in plain 
     English, in boldface type, and in a font size that is twice 
     the size of the text of the body of the policy.
       (b) Violations.--Any person that violates the requirements 
     of this section shall be subject to a fine of not more than 
     $50,000 at the discretion of the Director.

     SEC. 135. REPORT ON INCLUSION OF BUILDING CODES IN FLOODPLAIN 
                   MANAGEMENT CRITERIA.

       Not later than 6 months after the date of the enactment of 
     this Act, the Director of the Federal Emergency Management 
     Agency shall conduct a study and submit a report to the 
     Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate regarding the impact, 
     effectiveness, and feasibility of amending section 1361 of 
     the National Flood Insurance Act of 1968 (42 U.S.C. 4102) to 
     include widely used and nationally recognized building codes 
     as part of the floodplain management criteria developed under 
     such section, and shall determine--
       (1) the regulatory, financial, and economic impacts of such 
     a building code requirement on homeowners, States and local 
     communities, local land use policies, and the Federal 
     Emergency Management Agency;
       (2) the resources required of State and local communities 
     to administer and enforce such a building code requirement;
       (3) the effectiveness of such a building code requirement 
     in reducing flood-related damage to buildings and contents;
       (4) the impact of such a building code requirement on the 
     actuarial soundness of the National Flood Insurance Program;
       (5) the effectiveness of nationally recognized codes in 
     allowing innovative materials and systems for flood-resistant 
     construction; and
       (6) the feasibility and effectiveness of providing an 
     incentive in lower premium rates for flood insurance coverage 
     under such Act for structures meeting whichever of such 
     widely used and nationally recognized building code or any 
     applicable local building code provides greater protection 
     from flood damage.

    TITLE II--COMMISSION ON NATURAL CATASTROPHE RISK MANAGEMENT AND 
                               INSURANCE

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Commission on Natural 
     Catastrophe Risk Management and Insurance Act of 2008''.

     SEC. 202. FINDINGS.

       Congress finds that--
       (1) Hurricanes Katrina, Rita, and Wilma, which struck the 
     United States in 2005, caused, by some estimates, in excess 
     of $200,000,000,000 in total economic losses;
       (2) many meteorologists predict that the United States is 
     in a period of increased hurricane activity;
       (3) the Federal Government and State governments have 
     provided billions of dollars to pay for losses from natural 
     catastrophes, including hurricanes, earthquakes, volcanic 
     eruptions, tsunamis, tornados, flooding, wildfires, droughts, 
     and other natural catastrophes;
       (4) many Americans are finding it increasingly difficult to 
     obtain and afford property and casualty insurance coverage;
       (5) some insurers are not renewing insurance policies, are 
     excluding certain risks, such as wind damage, and are 
     increasing rates and deductibles in some markets;
       (6) the inability of property and business owners in 
     vulnerable areas to obtain and afford property and casualty 
     insurance coverage endangers the national economy and public 
     health and safety;
       (7) almost every State in the United States is at risk of a 
     natural catastrophe, including hurricanes, earthquakes, 
     volcanic eruptions, tsunamis, tornados, flooding, wildfires, 
     droughts, and other natural catastrophes;
       (8) building codes and land use regulations play an 
     indispensable role in managing catastrophe risks, by 
     preventing building in high risk areas and ensuring that 
     appropriate mitigation efforts are completed where building 
     has taken place;
       (9) several proposals have been introduced in Congress to 
     address the affordability and availability of natural 
     catastrophe insurance across the United States, but there is 
     no consensus on what, if any, role the Federal Government 
     should play; and
       (10) an efficient and effective approach to assessing 
     natural catastrophe risk management and insurance is to 
     establish a nonpartisan commission to study the management of 
     natural catastrophe risk, and to require such commission to 
     timely report to Congress on its findings.

     SEC. 203. ESTABLISHMENT.

       There is established a nonpartisan Commission on Natural 
     Catastrophe Risk Management and Insurance (in this title 
     referred to as the ``Commission'').

     SEC. 204. MEMBERSHIP.

       (a) Appointment.--The Commission shall be composed of 16 
     members, of whom--
       (1) 2 members shall be appointed by the majority leader of 
     the Senate;
       (2) 2 members shall be appointed by the minority leader of 
     the Senate;
       (3) 2 members shall be appointed by the Speaker of the 
     House of Representatives;
       (4) 2 members shall be appointed by the minority leader of 
     the House of Representatives;
       (5) 2 members shall be appointed by the Chairman of the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       (6) 2 members shall be appointed by the Ranking Member of 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       (7) 2 members shall be appointed by the Chairman of the 
     Committee on Financial Services of the House of 
     Representatives; and
       (8) 2 members shall be appointed by the Ranking Member of 
     the Committee on Financial Services of the House of 
     Representatives.
       (b) Qualification of Members.--
       (1) In general.--Members of the Commission shall be 
     appointed under subsection (a) from among persons who--
       (A) have expertise in insurance, reinsurance, insurance 
     regulation, policyholder concerns, emergency management, risk 
     management, public finance, financial markets, actuarial 
     analysis, flood mapping and planning, structural engineering, 
     building standards, land use planning, natural catastrophes, 
     meteorology, seismology, environmental issues, or other 
     pertinent qualifications or experience; and
       (B) are not officers or employees of the United States 
     Government or of any State government.
       (2) Diversity.--In making appointments to the Commission--
       (A) every effort shall be made to ensure that the members 
     are representative of a broad cross section of perspectives 
     within the United States; and
       (B) each member of Congress described in subsection (a) 
     shall appoint not more than 1 person from any single primary 
     area of expertise described in paragraph (1)(A) of this 
     subsection.
       (c) Period of Appointment.--
       (1) In general.--Each member of the Commission shall be 
     appointed for the duration of the Commission.
       (2) Vacancies.--A vacancy on the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (d) Quorum.--
       (1) Majority.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number, as determined 
     by the Commission, may hold hearings.
       (2) Approval actions.--All recommendations and reports of 
     the Commission required by this title shall be approved only 
     by a majority vote of all of the members of the Commission.
       (e) Chairperson.--The Commission shall, by majority vote of 
     all of the members, select 1 member to serve as the 
     Chairperson of the Commission (in this title referred to as 
     the ``Chairperson'').
       (f) Meetings.--The Commission shall meet at the call of its 
     Chairperson or a majority of the members.

     SEC. 205. DUTIES OF THE COMMISSION.

       The Commission shall examine the risks posed to the United 
     States by natural catastrophes, and means for mitigating 
     those risks and for

[[Page S4071]]

     paying for losses caused by natural catastrophes, including 
     assessing--
       (1) the condition of the property and casualty insurance 
     and reinsurance markets prior to and in the aftermath of 
     Hurricanes Katrina, Rita, and Wilma in 2005, and the 4 major 
     hurricanes that struck the United States in 2004;
       (2) the current condition of, as well as the outlook for, 
     the availability and affordability of insurance in all 
     regions of the country;
       (3) the current ability of States, communities, and 
     individuals to mitigate their natural catastrophe risks, 
     including the affordability and feasibility of such 
     activities;
       (4) the ongoing exposure of the United States to natural 
     catastrophes, including hurricanes, earthquakes, volcanic 
     eruptions, tsunamis, tornados, flooding, wildfires, droughts, 
     and other natural catastrophes;
       (5) the catastrophic insurance and reinsurance markets and 
     the relevant practices in providing insurance protection to 
     different sectors of the American population;
       (6) implementation of a catastrophic insurance system that 
     can resolve key obstacles currently impeding broader 
     implementation of catastrophic risk management and financing 
     with insurance;
       (7) the financial feasibility and sustainability of a 
     national, regional, or other pooling mechanism designed to 
     provide adequate insurance coverage and increased 
     underwriting capacity to insurers and reinsurers, including 
     private-public partnerships to increase insurance capacity in 
     constrained markets;
       (8) methods to promote public insurance policies to reduce 
     losses caused by natural catastrophes in the uninsured 
     sectors of the American population;
       (9) approaches for implementing a public or private 
     insurance scheme for low-income communities, in order to 
     promote risk reduction and insurance coverage in such 
     communities;
       (10) the impact of Federal and State laws, regulations, and 
     policies (including rate regulation, market access 
     requirements, reinsurance regulations, accounting and tax 
     policies, State residual markets, and State catastrophe 
     funds) on--
       (A) the affordability and availability of catastrophe 
     insurance;
       (B) the capacity of the private insurance market to cover 
     losses inflicted by natural catastrophes;
       (C) the commercial and residential development of high-risk 
     areas; and
       (D) the costs of natural catastrophes to Federal and State 
     taxpayers;
       (11) the present and long-term financial condition of State 
     residual markets and catastrophe funds in high-risk regions, 
     including the likelihood of insolvency following a natural 
     catastrophe, the concentration of risks within such funds, 
     the reliance on post-event assessments and State funding, and 
     the adequacy of rates;
       (12) the role that innovation in financial services could 
     play in improving the affordability and availability of 
     natural catastrophe insurance, specifically addressing 
     measures that would foster the development of financial 
     products designed to cover natural catastrophe risk, such as 
     risked-linked securities;
       (13) the need for strengthened land use regulations and 
     building codes in States at high risk for natural 
     catastrophes, and methods to strengthen the risk assessment 
     and enforcement of structural mitigation and vulnerability 
     reduction measures, such as zoning and building code 
     compliance;
       (14) the benefits and costs of proposed Federal natural 
     catastrophe insurance programs (including the Federal 
     Government providing reinsurance to State catastrophe funds, 
     private insurers, or other entities), specifically addressing 
     the costs to taxpayers, tax equity considerations, and the 
     record of other government insurance programs (particularly 
     with regard to charging actuarially sound prices);
       (15) the ability of the United States private insurance 
     market--
       (A) to cover insured losses caused by natural catastrophes, 
     including an estimate of the maximum amount of insured losses 
     that could be sustained during a single year and the 
     probability of natural catastrophes occurring in a single 
     year that would inflict more insured losses than the United 
     States insurance and reinsurance markets could sustain; and
       (B) to recover after covering substantial insured losses 
     caused by natural catastrophes;
       (16) the impact that demographic trends could have on the 
     amount of insured losses inflicted by future natural 
     catastrophes;
       (17) the appropriate role, if any, for the Federal 
     Government in stabilizing the property and casualty insurance 
     and reinsurance markets; and
       (18) the role of the Federal, State, and local governments 
     in providing incentives for feasible risk mitigation efforts.

     SEC. 206. REPORT.

       (a) In General.--Not later than 9 months after the date of 
     enactment of this title, the Commission shall submit to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives a final report containing--
       (1) a detailed statement of the findings and assessments 
     conducted by the Commission pursuant to section 205; and
       (2) any recommendations for legislative, regulatory, 
     administrative, or other actions at the Federal, State, or 
     local levels that the Commission considers appropriate, in 
     accordance with the requirements of section 205.
       (b) Extension of Time.--The Commission may request Congress 
     to extend the period of time for the submission of the report 
     required under subsection (a) for an additional 3 months.

     SEC. 207. POWERS OF THE COMMISSION.

       (a) Meetings; Hearings.--The Commission may hold such 
     hearings, sit and act at such times and places, take such 
     testimony, and receive such evidence as the Commission 
     considers necessary to carry out the purposes of this title. 
     Members may attend meetings of the Commission and vote in 
     person, via telephone conference, or via video conference.
       (b) Authority of Members or Agents of the Commission.--Any 
     member or agent of the Commission may, if authorized by the 
     Commission, take any action which the Commission is 
     authorized to take by this title.
       (c) Obtaining Official Data.--
       (1) Authority.--Notwithstanding any provision of section 
     552a of title 5, United States Code, the Commission may 
     secure directly from any department or agency of the United 
     States any information necessary to enable the Commission to 
     carry out this title.
       (2) Procedure.--Upon request of the Chairperson, the head 
     of such department or agency shall furnish to the Commission 
     the information requested.
       (d) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (e) Administrative Support Services.--Upon the request of 
     the Commission, the Administrator of General Services shall 
     provide to the Commission, on a reimbursable basis, any 
     administrative support services necessary for the Commission 
     to carry out its responsibilities under this title.
       (f) Acceptance of Gifts.--The Commission may accept, hold, 
     administer, and utilize gifts, donations, and bequests of 
     property, both real and personal, for the purposes of aiding 
     or facilitating the work of the Commission. The Commission 
     shall issue internal guidelines governing the receipt of 
     donations of services or property.
       (g) Volunteer Services.--Notwithstanding the provisions of 
     section 1342 of title 31, United States Code, the Commission 
     may accept and utilize the services of volunteers serving 
     without compensation. The Commission may reimburse such 
     volunteers for local travel and office supplies, and for 
     other travel expenses, including per diem in lieu of 
     subsistence, as authorized by section 5703 of title 5, United 
     States Code.
       (h) Federal Property and Administrative Services Act of 
     1949.--Subject to the Federal Property and Administrative 
     Services Act of 1949, the Commission may enter into contracts 
     with Federal and State agencies, private firms, institutions, 
     and individuals for the conduct of activities necessary to 
     the discharge of its duties and responsibilities.
       (i) Limitation on Contracts.--A contract or other legal 
     agreement entered into by the Commission may not extend 
     beyond the date of the termination of the Commission.

     SEC. 208. COMMISSION PERSONNEL MATTERS.

       (a) Travel Expenses.--The members of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (b) Subcommittees.--The Commission may establish 
     subcommittees and appoint members of the Commission to such 
     subcommittees as the Commission considers appropriate.
       (c) Staff.--Subject to such policies as the Commission may 
     prescribe, the Chairperson may appoint and fix the pay of 
     such additional personnel as the Chairperson considers 
     appropriate to carry out the duties of the Commission. The 
     Commission shall confirm the appointment of the executive 
     director by majority vote of all of the members of the 
     Commission.
       (d) Applicability of Certain Civil Service Laws.--Staff of 
     the Commission may be--
       (1) appointed without regard to the provisions of title 5, 
     United States Code, governing appointments in the competitive 
     service; and
       (2) paid without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of that title relating to 
     classification and General Schedule pay rates, except that an 
     individual so appointed may not receive pay in excess of the 
     annual rate of basic pay prescribed for GS-15 of the General 
     Schedule under section 5332 of that title.
       (e) Experts and Consultants.--In carrying out its 
     objectives, the Commission may procure temporary and 
     intermittent services of consultants and experts under 
     section 3109(b) of title 5, United States Code, at rates for 
     individuals which do not exceed the daily equivalent of the 
     annual rate of basic pay prescribed for GS-15 of the General 
     Schedule under section 5332 of that title.
       (f) Detail of Government Employees.--Upon request of the 
     Chairperson, any Federal Government employee may be detailed 
     to the Commission to assist in carrying out the duties of the 
     Commission--
       (1) on a reimbursable basis; and
       (2) such detail shall be without interruption or loss of 
     civil service status or privilege.

     SEC. 209. TERMINATION.

       The Commission shall terminate 90 days after the date on 
     which the Commission submits its report under section 206.

     SEC. 210. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Commission, 
     such sums as may be necessary to carry out this title, to 
     remain available until expended.

                        TITLE III--MISCELLANEOUS

     SEC. 301. BIG SIOUX RIVER AND SKUNK CREEK, SIOUX FALLS, SOUTH 
                   DAKOTA.

       The project for flood control, Big Sioux River and Skunk 
     Creek, Sioux Falls, South Dakota, authorized by section 
     101(a)(28) of the Water Resources Development Act of 1996 
     (110 Stat. 3666), is modified to authorize the Secretary to

[[Page S4072]]

     reimburse the non-Federal interest for funds advanced by the 
     non-Federal interest for the Federal share of the project, 
     only if additional Federal funds are appropriated for that 
     purpose.

     SEC. 302. SUSPENSION OF PETROLEUM ACQUISITION FOR STRATEGIC 
                   PETROLEUM RESERVE.

       (a) In General.--Except as provided in subsection (b) and 
     notwithstanding any other provision of law, during the period 
     beginning on the date of enactment of this Act and ending on 
     December 31, 2008--
       (1) the Secretary of the Interior shall suspend acquisition 
     of petroleum for the Strategic Petroleum Reserve through the 
     royalty-in-kind program; and
       (2) the Secretary of Energy shall suspend acquisition of 
     petroleum for the Strategic Petroleum Reserve through any 
     other acquisition method.
       (b) Resumption.--Not earlier than 30 days after the date on 
     which the President notifies Congress that the President has 
     determined that the weighted average price of petroleum in 
     the United States for the most recent 90-day period is $75 or 
     less per barrel--
       (1) the Secretary of the Interior may resume acquisition of 
     petroleum for the Strategic Petroleum Reserve through the 
     royalty-in-kind program; and
       (2) the Secretary of Energy may resume acquisition of 
     petroleum for the Strategic Petroleum Reserve through any 
     other acquisition method.
       (c) Existing Contracts.--In the case of any oil scheduled 
     to be delivered to the Strategic Petroleum Reserve pursuant 
     to a contract entered into by the Secretary of Energy prior 
     to, and in effect on, the date of enactment of this Act, the 
     Secretary shall, to the maximum extent practicable, negotiate 
     a deferral of the delivery of the oil for a period of not 
     less than 1 year, in accordance with procedures of the 
     Department of Energy in effect on the date of enactment of 
     this Act for deferrals of oil.

  Mr. REID. Mr. President, I move to reconsider the vote, and I move to 
lay that motion on the table.
  The motion to lay on the table was agreed to.

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