[Congressional Record Volume 154, Number 127 (Tuesday, July 29, 2008)]
[Senate]
[Pages S7631-S7638]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. ENZI:
  S. 3354. A bill to award grants for the establishment of 
demonstration programs to enable States to develop volunteer health 
care programs; to the Committee on Health, Education, Labor, and 
Pensions.
  Mr. ENZI. Mr. President, I rise to discuss the importance of ensuring 
the people of our Nation have access to health care and what the Senate 
can do today to help the neediest people get the kind of care they need 
and are entitled to.
  There are currently 61 million Americans who are either uninsured or 
underinsured. These people, many of whom are working and have families 
to care for, may have limited access to the kind of routine health care 
and nonemergency services so many of us take for granted.
  Fortunately, at the present time, there is a large, vital network of 
health care providers in this country who are doing their best to 
address this need and provide care to this underserved population. We 
don't talk about this network much, as the Federal Government does not 
pay for it.
  It is made up of volunteers, hundreds of thousands of health care 
providers, working across America, in almost every community, 
volunteering their expertise and donating their time to help those in 
need. These people are physicians, dentists, nurses, optometrists and 
chiropractors, to name a few of the professions that are represented in 
this group. Hospitals and outpatient surgical centers are also 
contributing to the effort.
  Caring for our neighbor has always been a basic value for us as 
Americans. My mother always told me that the service we provide to 
others is the rent we pay for the space we take up on God's green 
earth. The people who are participating in this network of care have 
taken that philosophy to heart and we are all the beneficiaries of 
their efforts. They are making a difference in more lives than we will 
ever know.
  We have all heard the saying that charity begins at home, and while 
it is an important part of any effort to address a need in our towns 
and cities, I am not suggesting that it is the final answer to correct 
the social injustices that exist in the world. We all realize that too 
many Americans lack health insurance, and that health care reform is a 
top priority for Congress. America needs health care reform, and I have 
a

[[Page S7632]]

plan to put that into action in my 10 Steps bill.

  As we work on health care reform and all it entails, we can also do 
something to help provide some support and encouragement to the 
volunteer effort I have just described. Government has a role to play 
and it is to facilitate the care that is provided to those who need it 
so badly by those who are willing to freely offer it to them.
  As with so many things, there is a catch, and that is why I am 
introducing my Volunteer Health Care Act of 2008. My bill will remove a 
legal barrier that currently prevents physicians and health care 
professionals from volunteering their services to individuals who 
either can't afford or can't access even the most basic of care. There 
is an overwhelming need for medical volunteers to work with the poor in 
the United States, but medical liability concerns discourage many 
doctors from providing voluntary services. This bill will help provide 
access for the disadvantaged and provide them with the care they so 
desperately need. In return, it will help to alleviate the concerns of 
health care providers who want to share their talents with the people 
of their community and give something back to make their part of the 
world a better place to live.
  This legislation addresses the situation in a way that is fair to the 
patient. It provides an avenue to recover damages if, by chance, some 
harm is done. It makes use of a formula that has been tried before and 
been proven to be effective.
  I have said before that States are the laboratories for the Federal 
Government. We know the positive effects that this program can provide 
because a few States have been using it for more than 10 years. Since 
the State of Florida started such a program 16 years ago, more than 
20,000 health care volunteers have provided more than $1 billion worth 
of charity care at free clinics, community health and migrant worker 
clinics, and with other indigent clinics to provide health care that 
would otherwise not be available. This program calls for minimal 
expense, but it has the potential for a huge return. Eight other States 
have enacted this program and have had excellent results. But that is 
only 8 other States. The legislation that I am proposing today 
encourages the remaining 41 States to consider it.
  Some people would say that the Federal Government has already made 
provisions for volunteer care with the federal Volunteer Protection Act 
of 1997. This act raises the standard of care from simple negligence to 
gross negligence. This law has two drawbacks however. It makes it more 
difficult for an injured party to prove substandard care and it leaves 
volunteer providers responsible for paying the cost of their defense.
  The bill that I am introducing, the Volunteer Health Care Program Act 
of 2008, would provide grants to States that would accept medical 
liability for volunteer medical providers. These programs would protect 
providers from liability claims, while also ensuring that injured 
patients could recover damages. This bill addresses both drawbacks of 
the current Federal volunteer law, it does so at a minimal cost to 
Federal and state governments, and it has a proven record of working. 
The passage of this bill will take us one step closer to ensuring 
access to quality health care for all Americans.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3354

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Volunteer Health Care 
     Program Act of 2008''.

     SEC. 2. PURPOSES.

       It is the purpose of this Act to provide grants to States 
     to--
       (1) promote access to quality health and dental care for 
     the medically underserved and uninsured through the 
     commitment of volunteers; and
       (2) encourage and enable healthcare providers to provide 
     health services to eligible individuals by providing 
     sovereign immunity protection for the provision of 
     uncompensated services.

     SEC. 3. GRANTS TO STATES TO ESTABLISH AND EVALUATE HEALTHCARE 
                   VOLUNTEER INDEMNITY PROGRAMS.

       Part P of title III of the Public Health Service Act (42 
     U.S.C. 280g et seq.) is amended by adding at the end the 
     following:

     ``SEC. 399R. GRANTS TO STATES TO ESTABLISH AND EVALUATE 
                   HEALTHCARE VOLUNTEER INDEMNITY PROGRAMS.

       ``(a) In General.--The Secretary shall award a grant to an 
     eligible State to enable such State to establish a 
     demonstration program to--
       ``(1) promote access to quality health and dental care for 
     the medically underserved and uninsured through the 
     commitment of volunteer healthcare providers; and
       ``(2) encourage and enable healthcare providers to provide 
     health services to eligible individuals, and ensure that 
     eligible individuals have the right to recover damages for 
     medical malpractice (in accordance with State law) by 
     providing sovereign immunity protection for the provision of 
     uncompensated services.
       ``(b) Eligibility.--To be eligible to receive a grant under 
     subsection (a), a State shall--
       ``(1) submit to the Secretary an application at such time, 
     in such manner, and containing such information as the 
     Secretary may require;
       ``(2) provide assurances that the State will not permit 
     hospitals to enroll individuals seeking care in emergency 
     departments into the State program; and
       ``(3) provide assurances that the State will provide 
     matching funds in accordance with subsection (e).
       ``(c) Use of Funds.--
       ``(1) In general.--A State shall use amounts received under 
     a grant under this section to establish a demonstration 
     program under which--
       ``(A) the State will arrange for the provision of health 
     and dental care to eligible individuals (as determined under 
     subsection (d)) participating in the State program;
       ``(B) ensure that the health and dental care under 
     paragraph (1) is provided by qualified healthcare providers 
     that do not receive any form of compensation or reimbursement 
     for the provision of such care;
       ``(C) sovereign immunity is extended to qualified 
     healthcare providers (as defined in paragraph (2)) for the 
     provision of care to eligible individuals under the State 
     program under this section;
       ``(D) the State will agree not to impose any additional 
     limitations or restrictions on the recovery of damages for 
     negligent acts, other than those in effect on date of the 
     establishment of the demonstration program;
       ``(E) the State will use more than 5 percent of amounts 
     received under the grant to conduct an annual evaluation, and 
     submit to the Secretary a report concerning such evaluation, 
     of the State program and the activities carried out under the 
     State program.
       ``(2) Qualified healthcare providers.--
       ``(A) In general.--The term `qualified healthcare provider' 
     means a healthcare provider described in subparagraph (B) 
     that--
       ``(i) is licensed by the State to provide the care involved 
     and is providing such care in good faith while acting within 
     the scope of the provider's training and practice;
       ``(ii) is in good standing with respect to such license and 
     not on probation;
       ``(iii) is not, or has not been, subject to Medicare or 
     Medicaid sanctions under title XVIII or XIX of the Social 
     Security Act; and
       ``(iv) is authorized by the State to provide health or 
     dental care services under the State program under this 
     section.
       ``(B) Provider described.--A healthcare provider described 
     in this subparagraph includes--
       ``(i) an ambulatory surgical center;
       ``(ii) a hospital or nursing home;
       ``(iii) a physician or physician of osteopathic medicine;
       ``(iv) a physician assistant;
       ``(v) a chiropractic practitioner;
       ``(vi) a physical therapist;
       ``(vii) a registered nurse, nurse midwife, licensed 
     practical nurse, or advanced registered nurse practitioner;
       ``(viii) a dentist or dental hygienist;
       ``(ix) a professional association, professional 
     corporation, limited liability company, limited liability 
     partnership, or other entity that provides, or has members 
     that provide, health or dental care services;
       ``(x) a non-profit corporation qualified as exempt from 
     Federal income taxation under section 501(c) of the Internal 
     Revenue Code of 1986; and
       ``(xi) a federally funded community health center, 
     volunteer corporation, or volunteer health care provider that 
     provides health or dental care services.
       ``(d) Priority.--Priority in awarding grants under this 
     section shall be given the States that will provide health or 
     dental care under the State program under this section, to 
     individuals that--
       ``(1) have a family income that does not exceed 200 percent 
     of the Federal poverty line (as defined in section 673(2) of 
     the Community Health Services Block Grant Act) for a family 
     of the size involved;
       ``(2) are not be covered under any health or dental 
     insurance policy or program (as determined under applicable 
     State law); and
       ``(3) are determined to be eligible for care, and referred 
     for such care, by the State department of health or other 
     entity authorized by the State for purposes of administering 
     the State program under this section.
       ``(e) Provision of Information.--A State shall ensure that 
     prior to the enrollment under a State program under this 
     section,

[[Page S7633]]

     the individual involved shall be fully informed of the 
     limitation on liability provided for under subsection 
     (c)(1)(C) with respect to the provider involved and shall 
     sign a waiver consenting to such care.
       ``(f) Matching Requirement.--
       ``(1) In general.--The Secretary may not award a grant to a 
     State under this section unless the State agrees, with 
     respect to the costs to be incurred by the State in carrying 
     out activities under the grant, to make available non-Federal 
     contributions (in cash or in kind under paragraph (2)) toward 
     such costs in an amount equal to not less than $1 for each $3 
     of Federal funds provided in the grant. Such contributions 
     may be made directly or through donations from public or 
     private entities.
       ``(2) Determination of amount of non-federal 
     contribution.--
       ``(A) In general.--Non-Federal contributions required in 
     paragraph (1) may be in cash or in kind, fairly evaluated, 
     including equipment or services (and excluding indirect or 
     overhead costs). Amounts provided by the Federal Government, 
     or services assisted or subsidized to any significant extent 
     by the Federal Government, may not be included in determining 
     the amount of such non-Federal contributions.
       ``(B) Maintenance of effort.--In making a determination of 
     the amount of non-Federal contributions for purposes of 
     paragraph (1), the Secretary may include only non-Federal 
     contributions in excess of the average amount of non-Federal 
     contributions made by the State involved toward the purpose 
     for which the grant was made for the 2-year period preceding 
     the first fiscal year for which the State is applying to 
     receive a grant under this section.
       ``(g) Administrative Provisions.--
       ``(1) Amount of grant.--The amount of a grant under this 
     section shall not exceed $600,000 per year for not more than 
     5 fiscal years.
       ``(2) Number of grants.--The Secretary shall not award more 
     than 15 grants under this section.
       ``(h) Evaluation.--Not later than [__] years after the date 
     of enactment of this section, and annually thereafter, the 
     Secretary shall conduct an evaluation of the activities 
     carried out by States under this section, and submit to the 
     appropriate committees of Congress a report concerning the 
     results of such evaluation.
       ``(i) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     such sums as may be necessary to carry out this section.
       ``(2) Evaluations.--The Secretary shall use 5 percent of 
     the amount appropriated under paragraph (1) for each fiscal 
     year to carry out evaluations under subsection (h).''.
                                 ______
                                 
      By Mr. DURBIN (for himself and Mr. Carper):
  S. 3360. A bill to increase the availability of domestically 
manufactured passenger cars for intercity passenger rail service, and 
for other purposes; to the Committee on Finance.
  Mr. DURBIN. Mr. President, I rise today to introduce a bill that will 
help us replace and rehab our aging passenger rail equipment and revive 
the passenger rail rolling stock manufacturing industry in the United 
States.
  We are currently witnessing fundamental changes to our economy and 
our national transportation system driven by the rising price of oil. 
High gas prices have caused hardship for millions of American families 
and are having a deeply negative impact on the Nation's economy. The 
aviation industry has been nearly crippled by the rising price of jet 
fuel and has announced it will be cutting over 30,000 jobs, mothballing 
almost 1,000 aircraft and leaving 100 communities across the country 
without any commercial air service.
  As these trends continue, the demand for an efficient, cost-effective 
and reliable alternative travel mode increases. Aviation downsizing and 
the high cost of driving have propelled passenger rail ridership and 
revenue to record breaking levels, especially in Illinois. Ridership on 
the Illinois Zephyr and Carl Sandburg routes jumped 41.4 percent in 
fiscal 2007, compared to fiscal 2006. Ridership on all Illinois state-
subsidized routes added an additional 181,000 passengers during the 
first \2/3\ of fiscal year 2008, bringing the State's ridership to 
670,000 for the year. Across the country, Amtrak's ridership has grown 
by 12 percent and continues to rise.
  These numbers suggest we are experiencing a passenger rail 
renaissance. However, this upward trend will only continue to a point. 
Unless we act--and act soon--we may not be able to capitalize on this 
moment in time and finally make passenger train travel a mainstay of 
American life, much like elsewhere in the industrialized world.
  My bill addresses the most immediate obstacle to making this a 
reality--the lack of passenger rail train cars and equipment. Amtrak's 
existing fleet of rail cars is old and in desperate need of repair. 
Amtrak estimates it will only be able to have an additional five 
trains--all of which are 30 years old or older--rehabbed and ready for 
service this holiday season.
  We need to re-fleet the aging, broken-down rolling stock that our 
passenger rail system has been barely getting by with. This bill 
provides a menu of financing options to bring our existing fleet into a 
state of good repair and build the next generation of trainsets here at 
home.
  Domestic railcar giants like the Pullman and Budd Companies provided 
a strong manufacturing base for over 100 years, providing rail cars 
that are still on the tracks today. But those companies have long since 
closed their doors and have left the business of making passenger rail 
cars due to years of underinvestment in the United States and increased 
investment by European countries.
  The Train CARS Act provides funding that will allow us to immediately 
engage manufacturers currently making trainsets overseas and encourage 
them to bring their modern design and manufacturing expertise to the 
U.S. and open rail car manufacturing facilities here to meet our 
growing demand. Second, the bill provides a tax incentive for private, 
domestic businesses to reenter the passenger rail equipment business 
and rebuild facilities and train cars here in the U.S.
  We also need to recognize the critical role that States play in 
boosting rail ridership numbers. Illinois has recognized the need to 
increase intercity rail service and doubled its funding from $12 
million to $24 million annually. This funding has allowed for greater 
frequencies along Illinois' corridor routes, but we have hit a wall--
there are no trainsets to add capacity to handle the growing ridership.
  My bill will reward those States that are able to raise revenue for 
routes by matching, dollar-for-dollar, their contributions for 
additional rolling stock. These are investments well spent. Amtrak is 
18 percent more efficient than commercial airlines on a passenger-mile 
basis, according to the Department of Energy. Passenger rail engines 
use electrical propulsion and diesel fuel combinations which are less 
susceptible to swings in crude prices than jet fuel. With each dollar 
spent on intercity rail, we take cars off our roads and lessen 
congestion on our highways, while at the same time increasing economic 
activity along rail routes.
  Lastly, we need to deal with fundamental changes in our 
transportation system that are on the horizon. We need a twenty-first 
century rail system that makes flying short distances a thing of the 
past. To make this possible we will have to explore building a high-
speed rail network rooted in major metropolitan areas like Chicago. 
Electrifying these trains and giving the tracks a dedicated right-of-
way will allow us to achieve speeds of 200 mph, without ever burning a 
drop of oil. This bill includes a provision to explore what types of 
investment we will need to make that a reality.
  As we get closer to the debate of the next surface transportation 
bill, we stand at a crossroads of a new era for rail service in the 
United States. Communities are increasingly vocal about their demands 
for cheaper, cleaner transportation options, and intercity rail service 
is an integral component of meeting those needs. We need to take this 
opportunity and revive a dormant passenger rail industry that once 
offered high-paying jobs to thousands of workers and could easily do so 
again. Waking this sleeping giant will allow us to lay the ground work 
for a transportation system that will be the backbone of the 21st 
century economy; one that is fast, efficient, and oil independent.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3360

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Creating American Rolling 
     Stock Act of 2008'' or the ``Train CARS Act''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Amtrak.--The term ``Amtrak'' means the National 
     Railroad Passenger Corporation.

[[Page S7634]]

       (2) Eligible applicant.--The term ``eligible applicant'' 
     means Amtrak, a State (including the District of Columbia), a 
     group of States, an interstate compact, or a regional 
     transportation authority established by 1 or more States and 
     having responsibility for providing intercity passenger rail 
     service.
       (3) Intercity passenger rail service.--The term ``intercity 
     passenger rail service'' means transportation services with 
     the primary purpose of passenger transportation between 
     towns, cities, and metropolitan areas by rail.
       (4) Rehabilitate.--The term ``rehabilitate'' means 
     extending the useful life or improving the effectiveness of 
     existing rolling stock, including--
       (A) the correction of a deficiency;
       (B) the modernization or replacement of equipment;
       (C) the modernization of, or replacement of parts for, 
     rolling stock;
       (D) the rehabilitation or remanufacture of rail rolling 
     stock and associated facilities used primarily in intercity 
     passenger rail service; and
       (E) the use of nonstructural elements.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.

     SEC. 3. GRANTS TO PURCHASE DOMESTICALLY MANUFACTURED ROLLING 
                   STOCK FOR INTERCITY PASSENGER RAIL SERVICE.

       (a) Grant Authorized.--
       (1) In general.--The Secretary of Transportation may award 
     grants under this section to eligible applicants to purchase 
     or rehabilitate domestically manufactured rolling stock 
     necessary to provide or improve intercity passenger rail 
     transportation.
       (2) Conditions.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary shall promulgate 
     regulations that establish procedures and schedules for the 
     awarding of grants under this section, including application 
     and qualification procedures and a record of decision on 
     applicant eligibility.
       (b) Project as Part of State Rail Plan.--
       (1) In general.--The Secretary may not award a grant for a 
     purchase of rolling stock under this section unless the 
     Secretary determines that--
       (A) the project is part of a State rail plan developed 
     under chapter 225 of title 49, United States Code; and
       (B) the applicant or recipient has or will have the legal, 
     financial, and technical capacity to purchase, install, and 
     maintain the rolling stock.
       (2) Information.--An eligible applicant shall provide 
     sufficient information upon which the Secretary can make the 
     determination required under paragraph (1).
       (c) Selection Criteria.--In selecting grant recipients 
     under subsection (a), the Secretary shall--
       (1) require that each rail car purchased with grant funds 
     meet all applicable safety and security requirements;
       (2) give preference to rail cars with high levels of 
     estimated ridership, increased on-time performance, reduced 
     trip time, additional service frequency to meet anticipated 
     or existing demand, or other significant service 
     enhancements;
       (3) ensure that each rail car is compatible with, and is 
     operated in conformance with--
       (A) plans developed pursuant to the requirements of section 
     135 of title 23, United States Code; and
       (B) the national rail plan, if available; and
       (4) give preference to purchases of rolling stock that--
       (A) are expected to have a significant favorable impact on 
     air or highway traffic congestion, capacity, or safety;
       (B) will improve freight or commuter rail operations;
       (C) will have significant environmental benefits, including 
     the purchase of environmentally sensitive, fuel-efficient, 
     and cost-effective passenger rail equipment;
       (D) will have positive economic and employment impacts;
       (E) have commitments of funding from non-Federal Government 
     sources in a total amount that exceeds the minimum amount of 
     the non-Federal contribution required for the project;
       (F) involve donated property interests or services;
       (G) are identified by the Surface Transportation Board as 
     necessary to improve the on-time performance and reliability 
     of intercity passenger rail under section 24308(f) of title 
     49, United States Code;
       (H) are designed to support intercity passenger rail 
     service;
       (I) can be easily transferred to commuter service or to 
     another intercity passenger rail route; and
       (J) are produced domestically.
       (d) Amtrak Eligibility.--To receive a grant under this 
     section, Amtrak may enter into a cooperative agreement with 1 
     or more States to purchase or rehabilitate rolling stock for 
     1 or more projects on a State rail plan's ranked list of rail 
     capital projects developed under section 22504(a)(5) of title 
     49, United States Code.
       (e) Federal Share of Net Project Cost.--A grant for the 
     purchase of rolling stock under this section shall not exceed 
     80 percent of the total cost.
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated such sums as are necessary to the 
     Secretary for fiscal year 2009 and for each subsequent fiscal 
     year for the grants to purchase domestically manufactured and 
     rehabbed rolling stock under this section.

     SEC. 4. BUY AMERICAN CONDITIONS.

       (a) Domestic Buying Preference.--
       (1) Requirement.--
       (A) In general.--In using grant funds or bond proceeds made 
     available under this Act or an amendment made by this Act for 
     purchasing rolling stock, a grant or bond proceeds recipient 
     may only purchase--
       (i) unmanufactured articles, material, and supplies mined 
     or produced in the United States; or
       (ii) manufactured articles, material, and supplies 
     manufactured in the United States substantially from 
     articles, material, and supplies mined, produced, or 
     manufactured in the United States.
       (B) De minimis amount.--Subparagraph (A) shall only apply 
     to purchases totaling at least $1,000,000.
       (2) Exemptions.--The Secretary of Transportation may exempt 
     a grant or bond proceeds recipient from the requirements of 
     this subsection if the Secretary, after receiving an 
     application for such exemption, determines that, for 
     particular articles, material, or supplies--
       (A) such requirements are inconsistent with the public 
     interest;
       (B) the cost of imposing the requirements is unreasonable; 
     or
       (C) the articles, material, or supplies, or the articles, 
     material, or supplies from which they are manufactured, are 
     not mined, produced, or manufactured in the United States in 
     sufficient and reasonably available commercial quantities and 
     are not of a satisfactory quality.
       (b) Operators Deemed Rail Carriers and Employers for 
     Certain Purposes.--Any entity that conducts rail operations 
     using rolling stock that has been manufactured or 
     rehabilitated with funding provided in whole or in part by a 
     grant or bond proceeds made available under this Act or an 
     amendment made by this Act shall be considered a rail carrier 
     (as defined in section 10102(5) of title 49, United States 
     Code) for purposes of this Act and any other law that adopts 
     that definition or in which that definition applies, 
     including--
       (1) the Railroad Retirement Act of 1974 (45 U.S.C. 231 et 
     seq.);
       (2) the Railway Labor Act (43 U.S.C. 151 et seq.); and
       (3) the Railroad Unemployment Insurance Act (45 U.S.C. 351 
     et seq.).
       (c) Prevailing Wage Requirement.--Any entity that purchases 
     or rehabilitates rolling stock which has been financed in 
     whole or in part by grants or bond proceeds made available 
     under this Act or an amendment made by this Act shall comply 
     with subchapter IV of chapter 31 of title 40, United States 
     Code, commonly referred to as the ``Davis-Bacon Act''.

     SEC. 5. NEXT GENERATION CORRIDOR TRAIN EQUIPMENT POOL.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, Amtrak shall establish a Next 
     Generation Corridor Equipment Pool Committee (referred to in 
     this section as the ``Committee''), which shall be comprised 
     of representatives of Amtrak, the Federal Railroad 
     Administration, host freight railroad companies, passenger 
     railroad equipment manufacturers, commuter rail agencies, 
     railroad labor unions, other passenger railroad operators, as 
     appropriate, and interested States.
       (b) Purpose.--The purpose of the Committee shall be to 
     design, develop specifications for, and procure standardized 
     next-generation corridor equipment, including rolling stock 
     that is easily transferred from commuter rail service to new 
     intercity passenger rail service.
       (c) Functions.--The Committee may--
       (1) determine the number of different types of equipment 
     required, taking into account variations in operational needs 
     and corridor infrastructure;
       (2) establish a pool of equipment to be used on corridor 
     routes funded by participating States;
       (3) subject to agreements between Amtrak and States, 
     utilize services provided by Amtrak to design, maintain, and 
     rehabilitate equipment; and
       (4) explore the benefits of creating a public or private 
     entity that would--
       (A) purchase and own domestically produced rolling stock; 
     and
       (B) lease such rolling stock to States or Amtrak for 
     passenger rail service.
       (d) Cooperative Agreements.--Amtrak and States 
     participating in the Committee may--
       (1) enter into agreements for the funding, procurement, 
     rehabilitation, ownership, management, or leasing of corridor 
     equipment, including equipment currently owned or leased by 
     Amtrak and next generation corridor equipment acquired as a 
     result of the Committee's actions; and
       (2) establish a corporation, which may be owned or jointly 
     owned by Amtrak, participating States or other entities, to 
     perform these functions.

     SEC. 6. INTERCITY PASSENGER RAIL ROLLING STOCK ACCOUNT.

       (a) Establishment of Account.--Section 9503 of the Internal 
     Revenue Code of 1986 (relating to Highway Trust Fund) is 
     amended by adding at the end the following new subsection:
       ``(g) Intercity Passenger Rail Rolling Stock Account.--
       ``(1) Creation of account.--There is established in the 
     Highway Trust Fund a separate

[[Page S7635]]

     account to be known as the `Intercity Passenger Rail Rolling 
     Stock Account', consisting of such amounts as may be 
     transferred or credited to the Intercity Passenger Rail 
     Rolling Stock Account as provided in this subsection or 
     section 9602(b).
       ``(2) Transfer to account of amounts equivalent to certain 
     taxes.--The Secretary of the Treasury shall transfer to the 
     Intercity Passenger Rail Rolling Stock Trust Fund the 
     intercity passenger rail rolling stock portion of the amounts 
     appropriated to the Highway Trust Fund under subsection (b) 
     which are attributable to taxes under section 4041 or 4081 
     imposed after September 30, 2009, and before October 1, 2012. 
     For purposes of the preceding sentence, the term `intercity 
     passenger rail rolling stock portion' means for any fuel with 
     respect to which tax was imposed under section 4041 or 4081 
     and otherwise deposited into the Highway Trust Fund, the 
     determined at the rate of .25 cent per gallon.
       ``(3) Expenditures from account.--
       ``(A) In general.--Amounts in the Intercity Passenger Rail 
     Rolling Stock Account shall be available without fiscal year 
     limitation to--
       ``(i) eligible applicants (as defined in section 2 of the 
     Train CARS Act) to finance the purchase and rehabilitation of 
     rolling stock, and
       ``(ii) each non-Amtrak State, to the extent determined 
     under subparagraph (B), for transportation-related 
     expenditures.
       ``(B) Maximum amount of funds to non-amtrak states.--Except 
     as provided under subparagraph (C), each non-Amtrak State 
     shall receive under this paragraph an amount equal to the 
     lesser of--
       ``(i) the State's qualified expenses for the fiscal year, 
     or
       ``(ii) the product of the number of months such State is a 
     non-Amtrak State in such fiscal year and \1/12\ of 1 percent 
     of the lesser of--

       ``(I) the aggregate amounts transferred and credited to the 
     Intercity Passenger Rail Account under paragraph (1) for such 
     fiscal year, or
       ``(II) the aggregate amounts appropriated from the 
     Intercity Passenger Rail Account for such fiscal year.

       ``(C) Adjustment.--If the amount determined under 
     subparagraph (B)(ii) exceeds the amount under subparagraph 
     (B)(i) for any fiscal year, the amount under subparagraph 
     (B)(ii) for the following fiscal year shall be increased by 
     the amount of such excess.
       ``(4) Definitions.--For purposes of this subsection--
       ``(A) Qualified expenses.--The term `qualified expenses' 
     means expenses incurred, with respect to obligations made, 
     after September 30, 2009, and before October 1, 2012--
       ``(i) for--

       ``(I) in the case of the National Railroad Passenger 
     Corporation, the acquisition of equipment and rolling stock, 
     the upgrading of rolling stock maintenance facilities, and 
     the maintenance of existing equipment in intercity passenger 
     rail service, and the payment of interest and principal on 
     obligations incurred for such acquisition, upgrading, and 
     maintenance, and
       ``(II) in the case of a non-Amtrak State, transportation-
     related expenses, and

       ``(ii) certified by the Secretary of Transportation on 
     October 1 as meeting the requirements of clause (i) and as 
     qualified for payment under paragraph (5) for the fiscal year 
     beginning on such date.
       ``(B) Non-amtrak state.--The term `non-Amtrak State' means 
     any State which does not receive intercity passenger rail 
     service from the National Railroad Passenger Corporation.
       ``(5) Contract authority.--Notwithstanding any other 
     provision of law, the Secretary of Transportation shall 
     certify expenses as qualified for a fiscal year on October 1 
     of such year, in an amount not to exceed the amount of 
     receipts estimated by the Secretary of the Treasury to be 
     transferred to the Intercity Passenger Rail Rolling Stock 
     Account for such fiscal year. Such certification shall result 
     in a contractual obligation of the United States for the 
     payment of such expenses.
       ``(6) Tax treatment of trust fund expenditures.--With 
     respect to any payment of qualified expenses from the 
     Intercity Passenger Rail Rolling Stock Account during any 
     taxable year to a taxpayer--
       ``(A) such payment shall not be included in the gross 
     income of the taxpayer for such taxable year,
       ``(B) no deduction shall be allowed to the taxpayer with 
     respect to any amount paid or incurred which is attributable 
     to such payment, and
       ``(C) the basis of any property shall be reduced by the 
     portion of the cost of such property which is attributable to 
     such payment.
       ``(7) Termination.--The Secretary shall determine and 
     retain, not later than October 1, 2012, the amount in the 
     Intercity Passenger Rail Rolling Stock Account necessary to 
     pay any outstanding qualified expenses, and shall transfer 
     any amount not so retained to the Highway Trust Fund.''.
       (b) Conforming Amendment.--Section 9503 of the Internal 
     Revenue Code of 1986 is amended by striking paragraph (5) of 
     subsection (e) and by adding at the end the following new 
     subsection:
       ``(h) Portion of Certain Transfers to Be Made From 
     Accounts.--
       ``(1) In general.--Transfers under paragraphs (2), (3), and 
     (4) of subsection (c) shall be borne by the Highway Account, 
     the Mass Transit Account, and the Intercity Passenger Rail 
     Rolling Stock Account in proportion to the respective 
     revenues transferred under this section to the Highway 
     Account (after the application of subsections (e)(2) and 
     (g)(2)) and the Mass Transit Account and the Intercity 
     Passenger Rail Rolling Stock Account.
       ``(2) Highway account.--For purposes of paragraph (1), the 
     term `Highway Account' means the portion of the Highway Trust 
     Fund which is not the Mass Transit Account or the Intercity 
     Passenger Rail Rolling Stock Account.''.
       (c) Capacity Improvement Charge Matching Program.--Any 
     eligible applicant that subsidizes intercity passenger rail 
     service and imposes a capital investment fee on each ticket 
     sold for such service is eligible to receive $1 from the 
     Intercity Passenger Rail Rolling Stock Account (as 
     established in section 9503(g) of the Internal Revenue Code 
     of 1986) for every $1 of such fee that is used to purchase 
     domestically manufactured rolling stock.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to taxes imposed after September 30, 
     2009.

     SEC. 7. RAIL INFRASTRUCTURE INVESTMENT.

       (a) Credit to Holders of Qualified Amtrak Bonds.--Subpart I 
     of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 (relating to credits against tax) is 
     amended by adding at the end the following new section:

     ``SEC. 54C. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.

       ``(a) Qualified Amtrak Bond.--For purposes of this subpart, 
     the term `qualified Amtrak bond' means any bond issued as 
     part of an issue if--
       ``(1) 100 percent or more of the available project proceeds 
     of such issue are to be used for expenditures incurred after 
     the date of the enactment of this section for any qualified 
     project,
       ``(2) the bond is issued by the National Railroad Passenger 
     Corporation, is in registered form, and meets the bond 
     limitation requirements under subsection (b),
       ``(3) the issuer designates such bond for purposes of this 
     section,
       ``(4) the issuer certifies that it meets the State 
     contribution requirement of subsection (h) with respect to 
     such project, as in effect on the date of the enactment of 
     this section,
       ``(5) the issuer certifies that it has obtained the written 
     approval of the Secretary of Transportation for such project 
     in accordance with section 26301 of title 49, United States 
     Code, as in effect on the date of the enactment of this 
     section,
       ``(6) the payment of principal with respect to such bond is 
     the obligation of the National Railroad Passenger 
     Corporation, and
       ``(7) in lieu of the requirements of section 54A(d)(2), the 
     issue meets the requirements of subsection (d).
       ``(b) Limitations on Amount of Bonds Designated.--
       ``(1) In general.--There is a qualified Amtrak bond 
     limitation for each fiscal year. Such limitation is--
       ``(A) $700,000,000 for each of the fiscal years 2009 
     through 2012, and
       ``(B) except as provided in paragraph (4), $0 after fiscal 
     year 2012.
       ``(2) Limits on bonds for individual states.--Not more than 
     $300,000,000 of the limitation under paragraph (1) may be 
     designated for any individual State.
       ``(3) Limit on bonds for other projects.--Not more than 
     $100,000,000 of the limitation under paragraph (1) for any 
     fiscal year may be designated for all qualified projects 
     described in subsection (g)(1)(C).
       ``(4) Carryover of unused limitation.--If for any fiscal 
     year--
       ``(A) the limitation amount under paragraph (1), exceeds
       ``(B) the amount of bonds issued during such year which are 
     designated under subsection (a)(3),
     the limitation amount under paragraph (1) for the following 
     fiscal year (through fiscal year 2016) shall be increased by 
     the amount of such excess.
       ``(c) Maturity Limitations.--In lieu of section 54A(d)(5), 
     a bond shall not be treated as a qualified Amtrak bond if the 
     maturity of such bond exceeds 20 years.
       ``(d) Special Rules Relating to Expenditures.--
       ``(1) In general.--Subject to paragraph (2), an issue shall 
     be treated as meeting the requirements of this subsection if 
     as of the date of issuance, the issuer reasonably expects--
       ``(A) to spend 100 percent or more of the available project 
     proceeds of the issue for 1 or more qualified projects within 
     the 3-year period beginning on such date,
       ``(B) to incur a binding commitment with a third party to 
     spend at least 10 percent of the proceeds from the sale of 
     the issue, or to commence construction, with respect to such 
     projects within the 6-month period beginning on such date, 
     and
       ``(C) to proceed with due diligence to complete such 
     projects and to spend the proceeds from the sale of the 
     issue.
       ``(2) Rules regarding continuing compliance after 3-year 
     determination.--If at least 100 percent of the available 
     project proceeds of the issue is not expended for 1 or more 
     qualified projects within the 3-year period beginning on the 
     date of issuance, but

[[Page S7636]]

     the requirements of paragraph (1) are otherwise met, an issue 
     shall be treated as continuing to meet the requirements of 
     this subsection if either--
       ``(A) the issuer uses all unspent proceeds of the issue to 
     redeem bonds of the issue within 90 days after the end of 
     such 3-year period, or
       ``(B) the following requirements are met:
       ``(i) The issuer spends at least 75 percent of the 
     available project proceeds of the issue for 1 or more 
     qualified projects within the 3-year period beginning on the 
     date of issuance.
       ``(ii) Either--

       ``(I) the issuer spends at least 100 percent of the 
     available project proceeds of the issue for 1 or more 
     qualified projects within the 4-year period beginning on the 
     date of issuance, or
       ``(II) the issuer pays to the Federal Government any 
     earnings on the proceeds of the issue that accrue after the 
     end of the 3-year period beginning on the date of issuance 
     and uses all unspent proceeds of the issue to redeem bonds of 
     the issue within 90 days after the end of the 4-year period 
     beginning on the date of issuance.

     For purposes of this paragraph, the amount of the 
     nonqualified bonds required to be redeemed shall be 
     determined in the same manner as under section 142.
       ``(e) Recapture of Portion of Credit Where Cessation of 
     Compliance.--
       ``(1) In general.--If any bond which when issued purported 
     to be a qualified Amtrak bond ceases to be such a qualified 
     bond, the issuer shall pay to the United States (at the time 
     required by the Secretary) an amount equal to the sum of--
       ``(A) the aggregate of the credits allowable under section 
     54A with respect to such bond (determined without regard to 
     section 54A(c)) for taxable years ending during the calendar 
     year in which such cessation occurs and the 2 preceding 
     calendar years, and
       ``(B) interest at the underpayment rate under section 6621 
     on the amount determined under subparagraph (A) for each 
     calendar year for the period beginning on the first day of 
     such calendar year.
       ``(2) Failure to pay.--If the issuer fails to timely pay 
     the amount required by paragraph (1) with respect to such 
     bond, the tax imposed by this chapter on each holder of any 
     such bond which is part of such issue shall be increased (for 
     the taxable year of the holder in which such cessation 
     occurs) by the aggregate decrease in the credits allowed 
     under section 54A to such holder for taxable years beginning 
     in such 3 calendar years which would have resulted solely 
     from denying any credit under section 54A with respect to 
     such issue for such taxable years.
       ``(3) Special rules.--
       ``(A) Tax benefit rule.--The tax for the taxable year shall 
     be increased under paragraph (2) only with respect to credits 
     allowed by reason of section 54A which were used to reduce 
     tax liability. In the case of credits not so used to reduce 
     tax liability, the carryforwards and carrybacks under section 
     39 shall be appropriately adjusted.
       ``(B) No credits against tax.--Any increase in tax under 
     paragraph (2) shall not be treated as a tax imposed by this 
     chapter for purposes of determining--
       ``(i) the amount of any credit allowable under this part, 
     or
       ``(ii) the amount of the tax imposed by section 55.
       ``(4) Treatment of changes in use.--For purposes of 
     paragraph (1), the proceeds from the sale of an issue shall 
     not be treated as used for a qualified project to the extent 
     that the issuer takes any action within its control which 
     causes such proceeds not to be used for a qualified project. 
     The Secretary shall prescribe regulations specifying remedial 
     actions that may be taken (including conditions to taking 
     such remedial actions) to prevent an action described in the 
     preceding sentence from causing a bond to fail to be a 
     qualified Amtrak bond.
       ``(f) Trust Account.--
       ``(1) In general.--The following amounts shall be held in a 
     trust account by a trustee independent of the National 
     Railroad Passenger Corporation:
       ``(A) The proceeds from the sale of all bonds designated 
     for purposes of this section.
       ``(B) The amount of any matching contributions with respect 
     to such bonds.
       ``(C) The temporary period investment earnings on proceeds 
     from the sale of such bonds.
       ``(D) Any earnings on any amounts described in subparagraph 
     (A), (B), or (C).
       ``(2) Use of funds.--Amounts in the trust account may be 
     used only to pay costs of qualified projects and redeem 
     qualified Amtrak bonds, except that amounts withdrawn from 
     the trust account to pay costs of qualified projects may not 
     exceed the aggregate proceeds from the sale of all qualified 
     Amtrak bonds issued under this section.
       ``(3) Use of remaining funds in trust account.--Upon the 
     redemption of all qualified Amtrak bonds issued under this 
     section, any remaining amounts in the trust account described 
     in paragraph (1) shall be available to the issuer for any 
     qualified project.
       ``(g) Qualified Project.--For purposes of this section, the 
     term `qualified project' has the meaning given the term 
     `qualified expenses' in section 9503(g) of the Internal 
     Revenue Code of 1986.
       ``(h) State Contribution Requirements.--
       ``(1) In general.--For purposes of subsection (a)(4), the 
     State contribution requirement of this subsection is met with 
     respect to any qualified project if the National Railroad 
     Passenger Corporation has received from 1 or more States, not 
     later than the date of issuance of the bond, matching 
     contributions of not less than 20 percent of the cost of the 
     qualified project.
       ``(2) State matching contributions may not include federal 
     funds.--For purposes of this subsection, State matching 
     contributions shall not be derived, directly or indirectly, 
     from Federal funds, including any transfers from the Highway 
     Trust Fund under section 9503.''.
       (b) Exclusion From Gross Income of Contributions by Amtrak 
     to Other Rail Carriers.--
       (1) In general.--Section 118 of the Internal Revenue Code 
     of 1986 (relating to contributions to the capital of a 
     corporation) is amended by redesignating subsections (d) and 
     (e) as subsections (e) and (f), respectively, and by 
     inserting after subsection (c) the following new subsection:
       ``(d) Special Rule for Contributions by Amtrak to Other 
     Rail Carriers.--For purposes of this section, the term 
     `contribution to the capital of the taxpayer' does not 
     include any contribution by the National Railroad Passenger 
     Corporation of personal or real property funded by the 
     proceeds of qualified Amtrak bonds under section 54C.''.
       (2) Conforming amendment.--Subsection (b) of such section 
     118 is amended by striking ``subsection (c)'' and inserting 
     ``subsections (c) and (d)''.
       (c) Conforming Amendments.--
       (1) Paragraph (1) of section 54A(d) of the Internal Revenue 
     Code of 1986 is amended to read as follows:
       ``(1) Qualified tax credit bond.--The term `qualified tax 
     credit bond' means--
       ``(A) a qualified forestry conservation bond, or
       ``(B) a qualified Amtrak bond,
     which is part of an issue that meets requirements of 
     paragraphs (2), (3), (4), (5), and (6).''.
       (2) Subparagraph (C) of section 54A(d)(2) of such Code is 
     amended to read as follows:
       ``(C) Qualified purpose.--For purposes of this paragraph, 
     the term `qualified purpose' means--
       ``(i) in the case of a qualified forestry conservation 
     bond, a purpose specified in section 54B(e), and
       ``(ii) in the case of a qualified Amtrak bond, a purpose 
     specified in section 54C(g).''.
       (3) The table of sections for subpart I of part IV of 
     subchapter A of chapter 1 of such Code is amended by adding 
     at the end the following new item:

``Sec. 54C. Qualified Amtrak bonds.''.

       (d) Annual Report by Treasury on Amtrak Trust Account.--The 
     Secretary of the Treasury shall annually report to Congress 
     as to whether the amount deposited in the trust account 
     established by Amtrak under section 54C(f) of the Internal 
     Revenue Code of 1986, as added by this section, is sufficient 
     to fully repay at maturity the principal of any outstanding 
     qualified Amtrak bonds issued pursuant to section 54C of such 
     Code (as so added), together with amounts expected to be 
     deposited into such account, as certified by Amtrak in 
     accordance with procedures prescribed by the Secretary of the 
     Treasury.
       (e) Issuance of Regulations.--The Secretary of the Treasury 
     shall issue regulations required under section 54C of the 
     Internal Revenue Code of 1986 (as added by this section) not 
     later than 90 days after the date of the enactment of this 
     Act.
       (f) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of enactment 
     of this Act.

     SEC. 8. NATIONAL PASSENGER RAIL ELECTRIFICATION SYSTEM STUDY.

       (a) In General.--Not later than 1 year after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States shall conduct a study to determine the 
     potential costs, benefits, and economic impact of providing 
     intercity passenger rail along a national railway 
     electrification system.
       (b) Components of Study.--The study conducted under 
     subsection (a) shall analyze the infrastructure needed to 
     operate reliable, high-speed rail intercity passenger service 
     along a national railway electrification system, including an 
     analysis of--
       (1) the equipment costs to achieve such service;
       (2) the environmental impacts related to transitioning to 
     an electrified system;
       (3) safety issues;
       (4) national security issues;
       (5) the high-speed benefits of an electrified system;
       (6) the need for any improvements to existing tunnels, 
     bridges, and other railroad facilities, or the need for the 
     construction of new facilities; and
       (7) the impacts to freight rail traffic.

     SEC. 9. REPORT REQUIRED.

       Not later than 90 days after the date of the enactment of 
     this Act, the Secretary of Labor shall submit a report to 
     Congress that describes--
       (1) existing Federal programs, policies, and initiatives 
     that could assist in the training of workers from the 
     automotive, aviation, and manufacturing industries to 
     transition such workers to the railcar manufacturing and 
     maintenance industry; and
       (2) recommendations for specific legislative and 
     administrative changes that would assist and encourage 
     workers who have been displaced by cutbacks in the aviation, 
     automotive, and manufacturing industries into transitioning 
     to the rail industry.
                                 ______
                                 
      By Mr. KERRY (for himself and Ms. Snowe):

[[Page S7637]]

  S. 3362. A bill to reauthorize and improve the SBIR and STTR 
programs, and for other purposes; to the Committee on Small Business 
and Entrepreneurship.
  Mr. KERRY. Mr. President, I rise today to introduce the SBIR/STTR 
Reauthorization Act of 2008. This bill reauthorizes the Small Business 
Innovation Research and Small Business Technology Transfer programs for 
14 years each and makes several improvements to the programs that will 
allow them to work better for small business, while continuing to make 
an important contribution to our country's innovation economy.
  When the SBIR program was originally conceived in the late 1970s and 
early 80s, it was in response to serious concerns that the United 
States was falling behind its competitors in the global economy because 
of a failure to innovate. At that time, as remains the case today, the 
lion's share of our federal research and development budget was going 
to large businesses and to universities that, while doing important 
work, simply were not doing the type of high-risk, high-reward research 
that drives innovation and keeps us on the technological cutting edge. 
It was found that small businesses were fastest and most effective not 
only at generating new technologies but at doing so in cost-effective 
ways; however, they were receiving a disproportionately low share of 
Federal R&D dollars, as also remains the case today. The SBIR program, 
therefore, was designed in 1982 to harness the innovative capacity of 
America's small businesses to meet the needs of our federal agencies 
and to help grow small, high-tech firms that, in turn, grow local 
economies all across the Nation. The STTR program was originally 
created as a pilot program in 1992 to stimulate partnerships between 
small businesses and non-profit research institutions, such as 
universities.
  Today, our country once again stands at a turning point, and 
competition from all across the globe, from Europe to Far East Asia, 
makes it more important than ever that we continue to innovate and to 
push the boundaries in sectors across the whole range of the spectrum, 
from defense technologies to energy efficiency to biotechnology. This 
bill ensures that small businesses can be confident that the SBIR and 
STTR programs will be there for them years down the line and that these 
highly successful programs can continue to help our federal agencies 
meet their needs and help maintain our role as a world leader in 
innovations. In order to provide more small businesses with access to 
the SBIR and STTR programs, the bill increases the allocation for the 
SBIR program and doubles the allocation for the STTR program. This will 
allow for more technologies to be developed through these programs, 
technologies such as a machine that uses lasers and computer cameras to 
sort and inspect bullets at a much finer level than the human eye can 
manage, developed through an SBIR grant by a small business in 
Michigan, a therapeutic drug to treat chronic inflammatory disease, 
developed by a Montana SBIR recipient, and a nerve gas protection 
system, developed by an SBIR company in Massachusetts. This is not to 
mention the tangible benefit that these additional dollars for the SBIR 
and STTR programs will have in the way of business growth, job 
creation, and economic development, since, according to the National 
Academy of Sciences, more than one in ten SBIR award recipients start 
their company simply because of their having received an award.
  Our committee has a long history of working together in a bipartisan 
way to pass legislation, and I am pleased to have worked closely with 
my ranking member, Senator Snowe, on this bill. I am also pleased that 
we have been able to incorporate provisions to address the priorities 
of a number of other Senators on the committee, including language from 
Senator Lieberman to address the National Academies' concerns about the 
lack of data and evaluation at NIH and to encourage innovation at NIH 
to accelerate the development of treatments and cures, language from 
Senator Landrieu regarding the FAST program to increase the 
participation of rural small businesses by making the matching 
requirement from rural states more affordable, a provision from Senator 
Coleman that creates a pilot program to encourage innovative small 
businesses to provide opportunities to college students studying 
science, technology, engineering, and math, and a provision from 
Senator Cardin to clarify that small businesses with Cooperative 
Research and Development Agreement, CRADA, with Federal labs can still 
participate in the SBIR program.
  I want to thank all those involved for their hard work on this 
legislation. I urge my colleagues to support this bill when it comes 
before the full Senate.
  Ms. SNOWE. Mr. President. I rise today with Senator Kerry to 
introduce the SBIR/STTR Reauthorization Act of 2008. This measure is 
truly bipartisan in scope, and is the product of 9 months of 
negotiation. I am pleased that we have come to an agreement on a 
package that will further strengthen these programs--making them even 
more beneficial to small businesses.
  This bill would reauthorize the crucial Small Business Innovation 
Research, SBIR, and Small Business Technology Transfer, STTR, 
programs--which were last reauthorized in 2000. The SBIR and STTR 
programs award Federal research and development funds to small 
businesses to encourage them to innovate and commercialize new 
technologies, products, and services. These programs provide more than 
$2 billion in Federal research and development funding each year to 
small businesses, and the benefit to my State of Maine cannot be 
overstated. According to the most recent data, in fiscal year 2005, 
Maine's technology-based small businesses received more than $4.5 
million in SBIR total awards. We simply cannot and must not allow these 
programs to expire at the end of this coming September.
  The legislation before us today which would provide key improvements 
to the SBIR and STTR programs are based on a comprehensive SBA 
Reauthorization bill that I introduced last Congress when I served as 
chair of the Senate Committee on Small Business and Entrepreneurship. 
This Congress, our committee has held two roundtables, with Federal 
agency heads and key interested stakeholders, in developing this 
measure. Specifically, our bill would increase the size of Phase I 
program awards from $100,000 to $150,000, and Phase II awards from 
$750,000 to $1 million. It would also tie future award increases to 
inflation. These pivotal reforms represent a well-spring of 
indispensable technological-fuel to the small business engines that 
drive our Nation's innovation.

  Since the SBIR program was created, small hi-tech firms have 
submitted more than 250,000 proposals, resulting in more than 60,000 
awards worth approximately $19 billion. By doubling the percentage of 
Federal research and development dollars that the STTR program receives 
each year, and increasing the SBIR percentage by 1 percent over 10 
years, we will infuse another $1 billion into the small business 
economy. At a time when our national economy is flagging due to 
skyrocketing energy prices and a correcting housing market, the SBIR 
program is more essential then ever, if we are to capitalize on the 
groundbreaking capacities of Nation's pioneering small businesses.
  While innovation in areas such as genomics, biotechnology, and 
nanotechnology present new opportunities, converting these ideas into 
marketable products involves substantial funding challenges. Many small 
businesses simply cannot afford the exorbitant cost of developing and 
bringing a product into the marketplace. In order to confront this 
challenge, our legislation offers a compromise solution to the venture 
capital or ``VC'' issue that has recently divided members of this 
committee and the SBIR community.
  This bill would allow limited involvement by majority-owned venture 
capital firms in the SBIR program which could receive only a maximum 18 
percent of SBIR funding at the National Institutes of Health and 8 
percent at all other qualifying agencies. These percentages correspond 
to the most recent Government Accountability Office data regarding VC 
investment in the SBIR program. Additionally, we leave in place well-
established SBA rules designed to limit participation in the SBIR 
program to small businesses.
  Other key provisions in this vital legislation include the 
reauthorization and enhancement of my SBIR Defense

[[Page S7638]]

Commercialization Pilot Program. Senator Kerry and I created this 
program in 108th Congress to encourage the award of contracts to SBIR 
firms. The bill also includes a provision to reauthorize and increase 
funding to the Federal and State Partnership, FAST, program which would 
allow each state--including Maine--to receive funding in the form of a 
grant to make available an array of services in support of the SBIR 
program.
  Now, more than ever, we in Congress must do everything within our 
power to help small businesses drive the recovery of our economy. It is 
imperative that we reauthorize the SBIR and STTR programs, particularly 
before the program terminates at the end of this fiscal year--fewer 
than 2 months away. I look forward to working with my colleagues on 
both sides of the aisle to pass this vital measure in the full Senate, 
and then negotiating with the House Small Business Committee, so that 
the President can sign this package into law.

                          ____________________