[Congressional Record Volume 154, Number 97 (Thursday, June 12, 2008)]
[Senate]
[Pages S5594-S5595]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS:
  S. 3119. A bill to stimulate the economy by encouraging energy 
efficiency, infrastructure and workforce investment, and homeownership 
retention, and by amending the Internal Revenue Code of 1986 to provide 
certain business tax relief and incentives, and for other purposes; to 
the Committee on Finance.
  Ms. COLLINS. Mr. President, I rise today to introduce the Economic 
Recovery Act of 2008. I think it is evident our economy is struggling 
to overcome the twin effects of record-high energy prices and a steep 
downturn in the housing market.
  Earlier this year, this Congress acted to provide rebates to 
taxpayers to help them cope with the effects of the downturn in the 
economy. The hope was also that the impact of these rebate checks would 
be to stimulate the economy.
  It is evident much more needs to be done, so the legislation I am 
introducing today is aimed at reinvigorating our economy. It is my 
proposal for a second economic stimulus package.
  Over the course of the past several years, we have seen the price of 
oil climb by more than 400 percent, from about $30 per barrel in 2003, 
to more than $133 per barrel this morning. This escalation in energy 
costs threatens to plunge our economy into a recession, and it is 
imposing a tremendous hardship on middle-income and low-income 
families, on our truckdrivers, our farmers, our fishermen, our schools, 
virtually everyone.
  Big factories and mills, as well as small businesses, have also been 
harmed by high energy prices. In fact, a week ago we learned a mill in 
Millinocket, ME, is going to be forced to shut down because it can no 
longer afford the oil that is essential to the operations of that paper 
mill.
  We are working with Governor Baldacci to try to find alternatives. 
But it is a prime example of the tremendously harmful impact high 
energy prices are having on the economy of our State and indeed States 
throughout the Nation.
  Gasoline is already topping $4 a gallon 2 weeks into the summer 
driving season. Maine families fear the cost of staying warm next 
winter because home heating oil prices have reached record highs.
  At the same time, the cost of diesel fuel is pushing some of 
America's independent truckers to the brink of bankruptcy. Consider 
this astonishing fact. In 1999, a Maine truck driver could go from 
Augusta, ME, all the way to Albuquerque, NM, on $500 worth of diesel. 
Today, $500 worth of diesel will not get that truck driver to Altoona, 
PA. What a difference a few years makes.
  Of course, with diesel prices continuing to increase, the problem is 
only getting worse. Meanwhile, weaknesses in the housing market are 
making it impossible for millions of Americans to get the financing 
they need to stay in their homes when their adjustable rate mortgages 
reset. Many of these families are being forced into foreclosure, 
leaving behind vacant properties and creating a ripple effect that is 
pulling down home values even further. This problem hurts communities 
across the Nation, and it requires an effective Federal response.
  The legislation I am introducing today would provide much-needed help 
to Americans who are struggling with high energy costs and the weak 
housing market. Let me outline the provisions of the economic stimulus 
package I am proposing.
  First, the Economic Recovery Act proposes a series of initiatives to 
promote increased energy efficiency that would help consumers save 
money on their energy bills, and help advance the goal of energy 
independence for our Nation.
  Second, the bill provides relief from truck weight regulations that 
are injuring truckers in the State of Maine.
  Third, it proposes a new program to finance transportation 
infrastructure that is based on the model of the Build American Bonds 
Bill.
  Fourth, it would increase funding under the Workforce Investment Act 
so we can help displaced and unemployed or underemployed workers.
  Fifth, it proposes tax incentives designed to help America's small 
businesses.
  And, sixth, it would help to restore stability in the housing market 
by expanding the FHA Secure Program, which would help homeowners 
refinance mortgages that are in danger of foreclosure.
  We have focused a lot on the housing problems and the turmoil in the 
housing and financial markets. Indeed, that is an important factor in 
the decline of our economy. As I have indicated, I think more needs to 
be done. But I am convinced high energy prices are an even greater 
cause of the economic downturn.
  We must act to protect ourselves from rapid increases in oil prices 
and in the long term achieve energy independence. One way to help 
achieve both those goals is to encourage greater efficiency. My bill 
would double the funding for the Department of Energy's Weatherization 
Program, reaching $1.4 billion by the year 2010.
  The bill would also provide $112 million each year for the valuable 
Energy Star Program, which helps consumers choose energy-efficient 
appliances, and would extend the renewable electricity tax credit 
through 2011 and the residential investment tax credit for solar and 
energy-efficient buildings through 2012.
  My bill also includes a $500 credit to consumers who replace their 
old wood-burning stove with a new, cleaner-burning model using wood or 
wood pellets. This complements a proposal I introduced in February.
  We must take action to address the impact rising diesel prices are 
having on the trucking industry, which is struggling. The rapid 
increase in the price of diesel is making it more difficult for our 
Nation's truckers to stay on the road.

[[Page S5595]]

  It is also increasing the cost of delivering goods that communities 
throughout our country rely on. We can help trucks to operate more 
efficiently if we ease Federal trucking regulations that prohibit 
trucks that carry more than 80,000 pounds from traveling on the Federal 
interstate system.
  My bill includes a provision that would create a 2-year pilot project 
that would permit trucks carrying up to 100,000 pounds, which is the 
weight level that is permitted on Maine's highways, to travel on the 
Interstate Highway system when diesel prices are at or above $3.50 a 
gallon. The savings on fuel consumption will benefit the trucking 
industry, the consumer, and our Nation at a time when we are looking 
for ways to decrease our dependency on foreign oil.
  Let me tell you, the current system simply makes no sense at all. In 
Maine, the trucks that have 100,000 pounds of cargo are forced to leave 
the Interstate in Augusta, ME, a road that is built to accommodate the 
heaviest trucks, and instead are forced to go on secondary roads 
through towns and villages, stopping at railroad crossings. That wastes 
fuel, and is less safe than keeping them on the Interstate. The trip 
takes much longer because they are on secondary and slower roads that 
often are not the most direct routes to the destination. So that simply 
makes no sense at all.
  Any proposal to stimulate the economy should help to fund 
transportation infrastructure projects. They are a proven means of 
fostering economic growth and are a lasting investment; an investment 
we need.
  This past winter has been so difficult and so hard on the roads in 
Maine. I do not think I have ever seen so many frost heaves and so much 
wear and tear that the very difficult cold and snowy winter has had on 
our roads and highways as I have seen this spring in Maine. The 
legislation I have introduced calls for a $50 billion investment 
through new transportation bonds for roads, bridges, transit, rail, and 
waterways.
  Now, I wish to give credit where credit is due. This proposal which I 
put into the economic stimulus package was first introduced by Senator 
Wyden. I was very pleased to be a cosponsor of his bill. I have 
included our proposal as part of this broader package. Not only will 
this funding serve as the catalyst for thousands of good jobs today, we 
all know construction jobs are good jobs, but it also will improve our 
transportation infrastructure, which is critical to economic 
development over the long term.
  This is an investment that makes sense. Many of these transportation 
projects are ready to go. They only need the funding. We must also act 
to provide assistance to those who have lost their jobs in this 
economic downturn. Now, that means extending unemployment compensation 
benefits. I hope we are going to do that soon. But in addition, we need 
to invest in our workers.
  In the last 4 months, we have seen 340,000 jobs lost across the 
country. Today, we have more than 1.6 million additional unemployed 
workers, compared to 2001; 800,000 more than a year ago. The national 
unemployment rate has jumped to 5.5 percent. In my home State, 33,600 
Mainers are looking for work.
  In view of this increase in unemployment, it makes no sense 
whatsoever that the President's budget actually proposes another cut in 
the Workforce Investment Act. In fact, overall, the President's budget 
would cut $1.5 billion from the Department of Labor's workforce 
programs.
  We must invest in America's workforce. Yet since fiscal year 2001, 
funding for the Workforce Investment Act programs has been reduced by 
nearly $1.7 billion in real terms. My bill would provide $1 billion in 
additional Workforce Investment Act funding that would enable us to 
train nearly 300,000 additional workers.
  The bill would also increase funding for the Dislocated Workers 
program and for Youth and Adult training programs. Support for job 
training, investing in our workers is critical, but it is also 
important that we provide relief to the job creators in our economy, 
and that is our small businesses. The fact is, small businesses create 
80 percent of the net new jobs in America. During economic downturns, 
however, they struggle with cash flow and they must forgo investments 
they need to grow and remain competitive. That is why I am proposing 
some tax incentives to help small businesses.
  First, we should make the Section 179 expensing limit for small 
companies permanent so they can count on it. Second, we should renew a 
provision of tax law that allows restaurant owners to depreciate their 
equipment more quickly, over 15 years.
  Finally, we must take action to steady the housing market. More than 
50 million Americans hold mortgages at present and, fortunately, most 
of them are current with their payments. But 7 million of these 
mortgages are so-called subprime loans, and most of them are adjustable 
rate mortgages that reset to higher, often unaffordable rates after 
only 2 or 3 years of very low introductory rates. What we are finding 
is a lot of first-time homeowners simply did not understand the risk 
they were taking with subprime loans. As a result, approximately 1.3 
million of these 7 million subprime mortgages are delinquent and could 
soon be in foreclosure. This number is expected to rise as more 
mortgages reach the reset date.
  I am not interested in bailing out speculators, people who took a 
gamble that housing prices were going to increase. What I am talking 
about are homeowners who were peddled an unsuitable mortgage product. 
We need to help them. Foreclosures inflict losses all around--on the 
families who lose their homes; on the neighborhoods where values fall 
as empty houses proliferate; on borrowers who face tighter requirements 
and higher costs, as perceptions of lending risk increase; and on those 
who work in the construction or real estate industry, dependent on a 
strong housing market.
  One source of help--and this is what I am proposing in my bill--would 
be to bolster the FHASecure program administered by the Federal Housing 
Administration. This program allows eligible homeowners to avoid 
foreclosure by assisting them with refinancing so they can afford to 
make their mortgage payments. My bill would expand this program to make 
it easier for lenders to accept voluntary write-downs of distressed 
mortgages and allow borrowers whose incomes are not sufficient to meet 
the terms of their existing mortgages to refinance their homes on terms 
they could afford. My bill also grants the FHA expanded authority to 
adjust insurance premiums, depending on the individual borrower's risk 
profile, to ensure the solvency of the FHA insurance fund. These 
provisions could help FHA reach hundreds of thousands of additional 
homeowners by the end of the year, and to do so without taxpayer 
subsidies.
  The legislation I am introducing today includes comprehensive 
proposals that, taken together, would go a long way toward addressing 
the two factors truly harming our economy--high energy prices and a 
weakening housing market. I urge my colleagues to work together in a 
bipartisan way, to look at the ideas that I and others have proposed so 
we can work together on a second stimulus package to address these 
concerns and to help restore and strengthen our Nation's economy.
                                 ______