[Congressional Record Volume 155, Number 122 (Thursday, August 6, 2009)]
[Senate]
[Pages S8999-S9002]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. CANTWELL (for herself and Mr. Grassley):
  S. 1589. A bill to amend the Internal Revenue Code of 1986 to modify 
the incentives for the production of biodiesel; to the Committee on 
Finance.
  Ms. CANTWELL. Mr. President, I am pleased to join with my colleague, 
Senator Grassley, and introduce an important piece of legislation that 
will modernize the tax incentive for domestic biodiesel production. The 
Biodiesel Tax Incentive Reform and Extension Act of 2009 will provide 
predictability to investors, to producers, and to researchers so we can 
move forward and continue to displace imported fossil fuels with low 
carbon, renewable biodiesel that is produced here in the United States.
  Last year, we all saw the devastating effects that $140 per barrel 
oil had on our economy and our constituents. For economic reasons, 
national security reasons, and environmental reasons, we cannot allow 
ourselves to remain dependent on foreign oil. We have to redouble our 
efforts to deploy alternative fuels that can be produced in the United 
States and that can help us address the growing crisis of climate 
change.
  Biodiesel is a diesel replacement fuel that is produced from 
vegetable oils, animal fats and waste oils. It is refined to meet a 
commercial fuel specification that is readily accepted in the 
marketplace. Typically biodiesel is blended with conventional diesel 
fuel, and it is not necessary to modify a vehicle's engine to use the 
fuel.
  There are compelling public policy benefits associated with the 
production and use of biodiesel. It is an extremely efficient fuel that 
can be produced domestically so we do not have to rely on imported 
fuel. Biodiesel creates 3.2 units of energy for every unit of fuel that 
is required to produce the fuel and the 690 million gallons of 
biodiesel produced in the U.S. in 2008 displaced 38.1 million barrels 
of petroleum.
  Replacing fossil fuel use with biodiesel also can play a constructive 
role in addressing the issue of climate change. When compared to 
conventional diesel fuel, pure biodiesel reduces direct carbon 
lifecycle emissions by 78 percent, which in 2008 was the equivalent of 
removing 980,000 passenger vehicles from the road.
  Congress first enacted a tax incentive for biodiesel in 2004 and 
since that time, this tax credit has helped encourage the production 
and use of this alternative fuel. U.S. production of biodiesel 
increased from 25 million gallons in 2004 to 690 million gallons last 
year, and the industry has built the commercial scale production 
capacity. There currently are 176 plants in operation with the capacity 
to produce more than 2.61 billion gallons of biodiesel.
  The 39 new plants that are either under construction or being 
expanded would add nearly 849.9 million gallons of production capacity. 
We have to be sure these plans for expansion go forward. Unfortunately, 
limited access to capital, uncertainty surrounding the Federal 
commitment to biodiesel, and the current state of the economy threaten 
to undermine the progress the U.S. biodiesel industry has made to build 
the production capacity and infrastructure needed to aggressively 
displace petroleum diesel fuel with renewable, low-carbon biodiesel. 
Right now, less than one-third of the industry's facilities are 
currently producing fuel.
  The 51,893 jobs that are currently supported by the U.S. biodiesel 
industry show there is real job growth potential in this industry. Much 
of that job growth and economic activity will happen in our rural 
communities who continue to be hard hit right now.
  The current law tax credit will expire at the end of this year and 
Congress must act or we will threaten the future of this promising 
domestic industry. The National Biodiesel Board estimates that if 
Congress does not provide some predictability to the industry, U.S. 
production will likely fall from 690 million gallons in 2008 to 300-350 
million gallons in 2009. This could cost the U.S. economy more than 
29,000 jobs. These are not jobs we can afford to lose.
  In addition to the looming expiration, the current structure of the 
tax credit has administrative problems and is subject to abuse that 
makes it difficult to ensure that that only qualified fuel benefits 
from the incentive. We owe it to taxpayers to make sure that we are 
getting the results we want from the tax incentives we enact so in 
addition to extending the tax credit we need to make the structural 
changes that Sen. Grassley and I are proposing today.
  The centerpiece of the bill is changing the incentive from a blender 
credit to a production tax credit so that we focus the benefits of the 
incentive on building the domestic production industry. Under current 
law, the credit was targeted at the blending of biodiesel with 
petroleum diesel. While this was helpful in getting us to the point we 
are now, it is time we move even farther in the direction of promoting 
the production of petroleum fuel alternatives.
  In addition, the legislation we are introducing today will simplify 
administration of the incentive for both taxpayers and the Internal 
Revenue Service, IRS, and will eliminate any remaining opportunity for 
abuse of the tax credit through schemes like ``splash and dash'' in 
which oil companies add a few drops of biodiesel to their petroleum 
diesel just to qualify for the tax credits.
  Under our bill, the $1 per gallon tax credit will be provided for the 
production of biodiesel, renewable diesel and aviation jet fuel that 
complies with established fuel standards and Clean Air Act 
requirements.
  For small producers, those with an annual production capacity of less 
than 60 million gallons, we increase the $1 to $1.10 for the first 15 
million gallons of biodiesel produced.
  We simplify the definition of biodiesel so that we encourage 
production

[[Page S9000]]

from any biomass-based feedstock or recycled oils and fats. Hopefully 
this will unleash even more research and commercialization of 
alternative fuel sources.
  The bill also simplifies the coordination between the income tax 
credit and the excise tax liability to, again, tighten up compliance 
and reduce administrative burdens on taxpayers. Most importantly, our 
bill would extend this tax credit for 5 years, giving needed financial 
predictability to the industry.
  I thank Senator Grassley for joining with me on this bill and look 
forward to working with our colleagues on the Finance Committee to 
adopt this worthwhile, commonsense proposal that is consistent with 
sound energy and sound tax policy.
  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. 1589

       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 ``Biodiesel Tax Incentive 
     Reform and Extension Act of 2009''.

     SEC. 2. REFORM OF BIODIESEL INCOME TAX INCENTIVES.

       (a) In General.--Section 40A of the Internal Revenue Code 
     of 1986 is amended to read as follows:

     ``SEC. 40A. BIODIESEL PRODUCTION.

       ``(a) In General.--For purposes of section 38, the 
     biodiesel fuels credit determined under this section for the 
     taxable year is $1.00 for each gallon of biodiesel produced 
     by the taxpayer which during the taxable year--
       ``(1) is sold by such producer to another person--
       ``(A) for use by such other person's trade or business 
     (other than casual off-farm production),
       ``(B) for use by such other person as a fuel in a trade or 
     business, or
       ``(C) who sells such biodiesel at retail to another person 
     and places such biodiesel in the fuel tank of such other 
     person, or
       ``(2) is used or sold by such producer for any purpose 
     described in paragraph (1).
       ``(b) Increased Credit for Small Producers.--
       ``(1) In general.--In the case of any eligible small 
     biodiesel producer, subsection (a) shall be applied by 
     increasing the dollar amount contained therein by 10 cents.
       ``(2) Limitation.--Paragraph (1) shall only apply with 
     respect to the first 15,000,000 gallons of biodiesel produced 
     by any eligible small biodiesel producer during any taxable 
     year.
       ``(c) Coordination With Credit Against Excise Tax.--The 
     amount of the credit determined under this section with 
     respect to any biodiesel shall be reduced to take into 
     account any benefit provided with respect to such biodiesel 
     solely by reason of the application of section 6426 or 
     6427(e).
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Biodiesel.--The term `biodiesel' means liquid fuel 
     derived from biomass which meets--
       ``(A) the registration requirements for fuels and fuel 
     additives established by the Environmental Protection Agency 
     under section 211 of the Clean Air Act (42 U.S.C. 7545), and
       ``(B) the requirements of the American Society of Testing 
     and Materials D6751.

     Such term shall not include any liquid with respect to which 
     a credit may be determined under section 40.
       ``(2) Biodiesel not used for a qualified purpose.--If--
       ``(A) any credit was determined with respect to any 
     biodiesel under this section, and
       ``(B) any person does not use such biodiesel for the 
     purpose described in subsection (a),

     then there is hereby imposed on such person a tax equal to 
     the product of the rate applicable under subsection (a) and 
     the number of gallons of such biodiesel.
       ``(3) Pass-thru in the case of estates and trusts.--Under 
     regulations prescribed by the Secretary, rules similar to the 
     rules of subsection (d) of section 52 shall apply.
       ``(4) Limitation to biodiesel produced in the united 
     states.--No credit shall be determined under this section 
     with respect to any biodiesel unless such biodiesel is 
     produced in the United States from raw feedstock. For 
     purposes of this paragraph, the term `United States' includes 
     any possession of the United States.
       ``(5) Biodiesel transfers from an irs registered biodiesel 
     production facility to an irs registered terminal or 
     refinery.--The credit allowed under subsection (a) shall be 
     allowed to the terminal or refinery referred to in section 
     4081(a)(1)(B)(i) in instances where section 
     4081(a)(1)(B)(iii) is applicable. The credit allowed under 
     subsection (a) cannot be claimed by a terminal or refinery on 
     fuel upon which the credit was previously claimed by a 
     biodiesel producer.
       ``(e) Definitions and Special Rules for Small Biodiesel 
     Producers.--
       ``(1) Eligible small biodiesel producer.--The term 
     `eligible small biodiesel producer' means a person who at all 
     times during the taxable year has a productive capacity for 
     biodiesel not in excess of 60,000,000 gallons.
       ``(2) Aggregation rule.--For purposes of the 15,000,000 
     gallon limitation under subsection (b)(2) and the 60,000,000 
     gallon limitation under paragraph (1), all members of the 
     same controlled group of corporations (within the meaning of 
     section 267(f)) and all persons under common control (within 
     the meaning of section 52(b) but determined by treating an 
     interest of more than 50 percent as a controlling interest) 
     shall be treated as 1 person.
       ``(3) Partnership, s corporation, and other pass-thru 
     entities.--In the case of a partnership, trust, S 
     corporation, or other pass-thru entity, the limitations 
     contained in subsection (b)(2) and paragraph (1) shall be 
     applied at the entity level and at the partner or similar 
     level.
       ``(4) Allocation.--For purposes of this subsection, in the 
     case of a facility in which more than 1 person has an 
     interest, productive capacity shall be allocated among such 
     persons in such manner as the Secretary may prescribe.
       ``(5) Regulations.--The Secretary may prescribe such 
     regulations as may be necessary--
       ``(A) to prevent the credit provided for in subsection (b) 
     from directly or indirectly benefitting any person with a 
     direct or indirect productive capacity of more than 
     60,000,000 gallons of biodiesel during the taxable year, or
       ``(B) to prevent any person from directly or indirectly 
     benefitting with respect to more than 15,000,000 gallons 
     during the taxable year.
       ``(6) Allocation of small biodiesel credit to patrons of 
     cooperative.--
       ``(A) Election to allocate.--
       ``(i) In general.--In the case of a cooperative 
     organization described in section 1381(a), any portion of the 
     increase determined under subsection (b) for the taxable year 
     may, at the election of the organization, be apportioned pro 
     rata among patrons of the organization on the basis of the 
     quantity or value of business done with or for such patrons 
     for the taxable year.
       ``(ii) Form and effect of election.--An election under 
     clause (i) for any taxable year shall be made on a timely 
     filed return for such year. Such election, once made, shall 
     be irrevocable for such taxable year. Such election shall not 
     take effect unless the organization designates the 
     apportionment as such in a written notice mailed to its 
     patrons during the payment period described in section 
     1382(d).
       ``(B) Treatment of organizations and patrons.--
       ``(i) Organizations.--The amount of the credit not 
     apportioned to patrons pursuant to subparagraph (A) shall be 
     included in the amount determined under subsection (b) for 
     the taxable year of the organization.
       ``(ii) Patrons.--The amount of the credit apportioned to 
     patrons pursuant to subparagraph (A) shall be included in the 
     amount determined under such subsection for the first taxable 
     year of each patron ending on or after the last day of the 
     payment period (as defined in section 1382(d)) for the 
     taxable year of the organization or, if earlier, for the 
     taxable year of each patron ending on or after the date on 
     which the patron receives notice from the cooperative of the 
     apportionment.
       ``(iii) Special rules for decrease in credits for taxable 
     year.--If the amount of the credit of the organization 
     determined under such subsection for a taxable year is less 
     than the amount of such credit shown on the return of the 
     organization for such year, an amount equal to the excess 
     of--

       ``(I) such reduction, over
       ``(II) the amount not apportioned to such patrons under 
     subparagraph (A) for the taxable year, shall be treated as an 
     increase in tax imposed by this chapter on the organization.

     Such increase shall not be treated as tax imposed by this 
     chapter for purposes of determining the amount of any credit 
     under this chapter or for purposes of section 55.
       ``(f) Renewable Diesel.--For purposes of this title--
       ``(1) Treatment in the same manner as biodiesel.--Renewable 
     diesel shall be treated in the same manner as biodiesel.
       ``(2) Renewable diesel defined.--The term `renewable 
     diesel' means liquid fuel derived from biomass which meets--
       ``(A) the registration requirements for fuels and fuel 
     additives established by the Environmental Protection Agency 
     under section 211 of the Clean Air Act (42 U.S.C. 7545), and
       ``(B) the requirements of the American Society of Testing 
     and Materials D975 or D396, or other equivalent standard 
     approved by the Secretary.

     Such term shall not include any liquid with respect to which 
     a credit may be determined under section 40. Such term does 
     not include any fuel derived from coprocessing biomass with a 
     feedstock which is not biomass. For purposes of this 
     paragraph, the term `biomass' has the meaning given such term 
     by section 45K(c)(3).
       ``(3) Certain aviation fuel.--Except as provided in the 
     last 3 sentences of paragraph (2), the term `renewable 
     diesel' shall include fuel derived from biomass which meets 
     the requirements of a Department of Defense specification for 
     military jet fuel or an

[[Page S9001]]

     American Society of Testing and Materials specification for 
     aviation turbine fuel.
       ``(g) Termination.--This section shall not apply to any 
     sale or use after December 31, 2014.''.
       (b) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of such Code is 
     amended by striking the item relating to section 40A and 
     inserting the following new item:

``Sec. 40A. Biodiesel production.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to biodiesel sold or used after December 31, 
     2009.

     SEC. 3. REFORM OF BIODIESEL EXCISE TAX INCENTIVES.

       (a) In General.--Subsection (c) of section 6426 of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(c) Biodiesel Credit.--
       ``(1) In general.--For purposes of this section, the 
     biodiesel credit is $1.00 for each gallon of biodiesel 
     produced by the taxpayer and which--
       ``(A) is sold by such producer to another person--
       ``(i) for use by such other person's trade or business 
     (other than casual off-farm production),
       ``(ii) for use by such other person as a fuel in a trade or 
     business, or
       ``(iii) who sells such biodiesel at retail to another 
     person and places such biodiesel in the fuel tank of such 
     other person, or
       ``(B) is used or sold by such producer for any purpose 
     described in subparagraph (A).
       ``(2) Definitions.--Any term used in this subsection which 
     is also used in section 40A shall have the meaning given such 
     term by section 40A.
       ``(3) Biodiesel transfers from an irs registered biodiesel 
     production facility to an irs registered terminal.--The 
     credit allowed under this subsection can be claimed by a 
     registered terminal or refinery in instances where section 
     4081(a)(1)(B)(iii) is applicable. The credit allowed under 
     this subsection cannot be claimed by a terminal or refinery 
     on fuel upon which the credit was previously claimed by a 
     biodiesel producer.
       ``(4) Termination.--This subsection shall not apply to any 
     sale, use, or removal for any period after December 31, 
     2014.''.
       (b) Payment of Credit.--Subsection (e) of section 6427 of 
     such Code is amended--
       (1) by striking ``or the biodiesel mixture credit'' in 
     paragraph (1),
       (2) by redesignating paragraphs (3) through (6) as 
     paragraphs (4) through (7), respectively, and by inserting 
     after paragraph (2) the following new paragraph:
       ``(3) Biodiesel credit.--If any person produces biodiesel 
     and sells or uses such biodiesel as provided in section 
     6426(c), the Secretary shall pay (without interest) to such 
     person an amount equal to the biodiesel credit with respect 
     to such biodiesel.'',
       (3) by striking ``paragraph (1) or (2)'' each place it 
     appears in paragraphs (4) and (6), as redesignated by 
     paragraph (2), and inserting ``paragraph (1), (2), or (3)'',
       (4) by striking ``alternative fuel'' each place it appears 
     in paragraphs (4) and (6), as redesignated by paragraph (2), 
     and inserting ``fuel'', and
       (5) by striking ``biodiesel mixture (as defined in section 
     6426(c)(3))'' in paragraph (7)(B), as so redesignated, and 
     inserting ``biodiesel (within the meaning of section 40A)''.
       (c) Exemption for Biodiesel Transferred From a Registered 
     Producer to a Registered Terminal.--Subparagraph (B) of 
     section 4081(a)(1) of such Code is amended--
       (1) by striking ``clause (ii)'' in clause (i) and inserting 
     ``clauses (ii) and (iii)'', and
       (2) by adding at the end the following new clause:
       ``(iii) Exemptions for biodiesel transferred from a 
     registered producer to a registered terminal.--The tax 
     imposed by this paragraph shall not apply to any removal or 
     entry of biodiesel (as defined in section 40A(d)(1)) 
     transferred in bulk (without regard to the manner of such 
     transfer) to a terminal or refinery if--

       ``(I) such biodiesel was produced by a person who is 
     registered under section 4101 as a producer of biodiesel and 
     who provides reporting under the ExStars fuel reporting 
     system of the Internal Revenue Service, and
       ``(II) the operator of such terminal or refinery is 
     registered under section 4101.''.

       (d) Producer Registration Requirement.--Subsection (a) of 
     section 6426 of such Code is amended by striking 
     ``subsections (d) and (e)'' in the flush sentence at the end 
     and inserting ``subsections (c), (d), and (e)''.
       (e) Recapture.--Subsection (f) of section 6426 of such Code 
     is amended to read as follows:
       ``(f) Recapture.--
       ``(1) Alcohol fuel mixtures.--If--
       ``(A) any credit was determined under this section with 
     respect to alcohol used in the production of any alcohol fuel 
     mixture, and
       ``(B) any person--
       ``(i) separates the alcohol from the mixture, or
       ``(ii) without separation, uses the mixture other than as a 
     fuel,

     then there is hereby imposed on such person a tax equal to 
     the product of the applicable amount and the number of 
     gallons of such alcohol.
       ``(2) Biodiesel.--If any credit was determined under this 
     section with respect to the production of any biodiesel and 
     any person does not use such biodiesel for a purpose 
     described in subsection (c)(1), then there is hereby imposed 
     on such person a tax equal to $1 for each gallon of such 
     biodiesel.
       ``(3) Applicable laws.--All provisions of law, including 
     penalties, shall, insofar as applicable and not inconsistent 
     with this section, apply in respect of any tax imposed under 
     paragraph (1) or (2) as if such tax were imposed by section 
     4081 and not by this section.''.
       (f) Clerical Amendment.--The heading of section 6426 of 
     such Code (and the item relating to such section in the table 
     of sections for subchapter B of chapter 65 of such Code) is 
     amended by striking ``alcohol fuel, biodiesel, and 
     alternative fuel mixtures'' and inserting ``alcohol fuel 
     mixtures, biodiesel production, and alternative fuel 
     mixtures''.
       (g) Effective Date.--The amendments made by this section 
     shall apply to biodiesel sold or used after December 31, 
     2009.

     SEC. 4. BIODIESEL TREATED AS TAXABLE FUEL.

       (a) Biodiesel Treated as Taxable Fuel.--Clause (i) of 
     section 4083(a)(3)(A) of such Code is amended by inserting 
     ``, including biodiesel (as defined in section 6426(c)(3)),'' 
     after ``(other than gasoline)''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to biodiesel removed, entered, or sold after the 
     date which is 6 months after the date of the enactment of 
     this Act.
                                 F_____
                                 
      By Mrs. MURRAY (for herself and Mr. Durbin):
  S. 1591. A bill to amend the Foreign Assistance Act of 1961, to 
establish the Health Technology Program in the United States Agency for 
International Development to research and develop technologies to 
improve global health, and for other purposes; to the Committee on 
Foreign Relations.
  Mrs. MURRAY. Mr. President, for a child in a developing country, very 
simple tools, like safe injection technologies for vaccination, can 
mean the difference between life and death. But the fact is that many 
countries are simply unable to afford such critical health 
technologies. Research has given us many promising early-stage 
technologies that could make a difference, but tragically, in many 
cases the promise of such technologies goes unrealized.
  I know that it is sometimes tempting to think of global health as a 
distant goal, far removed from the lives of everyday Americans. But, as 
the emergence of new pandemic threats such as H1N1 flu reminds us, 
global health is public health--and it affects Americans right here at 
home. It is impossible to pick up a paper today, watch TV, or use the 
internet without realizing that we are more connected than ever before 
to people around the world.
  As I speak with scientists and leaders in my State, they are excited 
about finding new ways to tackle tough global health problems. I hear 
the same enthusiasm when I speak with young people who are passionate 
about helping others. Of course, this growing support for global health 
can be seen not only in my home state, but throughout our country, in 
our universities and in community organizations. I know that many of my 
colleagues in the Senate are dedicated, tireless advocates for global 
health. Last year, the Congress demonstrated its strong commitment by 
reauthorizing the President's Emergency Plan for AIDS Relief, PEPFAR, a 
huge victory for global health and a strong foundation for future 
efforts.
  In May, President Obama announced a new, comprehensive global health 
strategy, renewing the longstanding U.S. commitment to global health 
and building on the successes of programs begun during the Bush 
administration like PEPFAR and the President's Malaria Initiative, 
programs that have saved countless lives. President Obama has called 
for us to continue these efforts and to focus on improving the health 
of mothers and children and strengthening health systems in developing 
countries.
  Developing countries urgently need technologies that will work for 
their health care systems, technologies that are easy-to-use, 
culturally appropriate, and above all affordable.
  Today I am introducing the 21st Century Global Health Technology Act 
to support these goals by applying our country's traditional strengths 
in research, innovation, and entrepreneurship to global health. My bill 
will encourage the development of appropriate global health 
technologies by authorizing efforts at the US Agency for International 
Development, USAID, to make sure that promising health technologies are 
not left to sit on the shelf, but instead are developed and delivered 
to those in need.
  Developing global health technologies is not easy or glamorous and 
the financial incentives for business

[[Page S9002]]

are few. But for many years, the USAID has supported global health 
technology development through an innovative model that encourages the 
public, non-profit, and private sectors to work together.
  I urge my colleagues to support this bill because the USAID has a 
long and inspiring track record of success in technology development. 
For example, the USAID's HealthTech program meets a wide range of needs 
from developing tools to rapidly diagnose infectious diseases to 
designing safe delivery kits that keep mothers and newborns healthy. 
Working with non-profit and commercial-sector partners, HealthTech has 
investigated over 100 technologies, licensed or transferred 21 life-
saving technologies designed for use in low-resource settings, and 
moved 10 technologies into global use.
  The HealthTech program helps the USAID leverage Federal money to 
encourage the private sector to become involved in the fight to improve 
global health. In an average year, HealthTech matches the USAID's 
funding with cash and in-kind contributions from the private sector. 
The average ratio of private sector investment to USAID funding in 
HealthTech-developed technologies that have reached commercialization 
is about 9 to 1. It's a win-win model that increases the number of 
affordable global health technologies and provides new opportunities 
for U.S. companies.
  Technology development at the USAID is a smart investment. However, 
the agency's technology development efforts currently are not 
authorized, so funding is often uncertain. That uncertainty prevents 
the USAID from pursuing many promising technologies. My bill will 
provide $5 million per year over 5 years to support technology 
development at the USAID--a small, but steady source of funding that 
will bring greater stability to technology development efforts and 
encourage more private sector partners to get involved.
  Investing in global health technology is the right thing for the 
U.S., for our companies, for our bright young people who are pursuing 
careers in global health, and for our security since our well-being is 
linked to our ability to prevent global pandemics and to reach out to 
people around the world. But, most importantly, investing in global 
health and in affordable health technologies will save millions of 
lives. It is simply the right thing to do.
  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. 1591

       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 ``21st Century Global Health 
     Technology Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) The United States has committed to the United Nations 
     Millennium Development Goals of--
       (A) reducing child mortality;
       (B) improving maternal health; and
       (C) combating HIV/AIDS, malaria, and other diseases.
       (2) The goals described in paragraph (1) cannot be reached 
     without health technologies and devices to diagnose 
     infectious diseases and reduce disease transmission.
       (3) The development, advancement, and introduction of 
     affordable and appropriate technologies are essential to 
     efforts by the United States to reduce deaths among the 
     world's most vulnerable populations, particularly children 
     and women in the developing world.
       (4) A recent report by the Institute of Medicine on the 
     commitment of the United States to global health--
       (A) recommends that United States institutions share 
     existing knowledge to address prevalent health problems in 
     low- and middle-income countries;
       (B) recommends continued support for partnerships between 
     the public and private sectors to develop and deliver health 
     products in low- and middle-income countries; and
       (C) urges the United States Government to continue its 
     support for innovative research models to address unmet 
     health needs in poor countries.
       (5) Investments by the United States in affordable, 
     appropriate health technologies, such as medical devices for 
     maternal and child care, vaccine delivery tools, safe 
     injection devices, diagnostic tests for infectious diseases, 
     and innovative disease prevention strategies--
       (A) reduce the risk of disease transmission; and
       (B) accelerate access to life-saving global health 
     interventions for the world's poor.
       (6) Through a cooperative agreement, known as the 
     Technologies for Health program (referred to in this section 
     as ``HealthTech''), USAID supports the development of 
     technologies that--
       (A) maximize the limited resources available for global 
     health; and
       (B) ensure that products and medicines developed for use in 
     low-resource settings reach the people that need such 
     products and medicines.
       (7) The HealthTech cooperative agreement--
       (A) facilitates public-private collaboration in the 
     development of global health technologies;
       (B) leverages public sector support for early stage 
     research and development of health technologies to encourage 
     private sector investment in late-stage technology 
     development and product introduction in developing countries;
       (C) benefits the United States economy by investing in the 
     growing United States global health technology sector, 
     which--
       (i) provides skilled jobs for American workers; and
       (ii) enhances United States competitiveness in the 
     increasingly technological and knowledge-based global 
     economy; and
       (D) enhances United States national security by--
       (i) reducing the risk of pandemic disease; and
       (ii) contributing to economic development and stability in 
     developing countries.

     SEC. 3. PURPOSE.

       The purpose of this Act is to authorize a health technology 
     development program that supports coordinated, long-term 
     research and development of appropriate global health 
     technologies--
       (1) to improve global health;
       (2) to reduce maternal and child mortality rates; and
       (3) to reverse the incidence of HIV/AIDS, malaria, and 
     other diseases.

     SEC. 4. ESTABLISHMENT OF THE HEALTH TECHNOLOGY PROGRAM.

       Section 107 the Foreign Assistance Act of 1961 (22 U.S.C. 
     2151e) is amended by adding at the end the following:
       ``(c) Health Technology Program.--(1) There is established 
     in the United States Agency for International Development 
     (referred to in this section as `USAID') the Health 
     Technology Program, which shall--
       ``(A) coordinate and lead research and development efforts;
       ``(B) be funded by USAID on a competitive basis; and
       ``(C) serve as a national laboratory and technology 
     development program for global health.
       ``(2) The Health Technology Program shall develop, advance, 
     and introduce affordable, available, and appropriate 
     technologies specifically designed--
       ``(A) to improve the health and nutrition of developing 
     country populations;
       ``(B) to reduce maternal and child mortality; and
       ``(C) to improve the diagnosis, prevention and reduction of 
     disease, especially HIV/AIDS, malaria, tuberculosis, and 
     other major diseases.
       ``(3) The Health Technology Program shall be located at an 
     institution with a successful record of--
       ``(A) advancing the technologies described in paragraph 
     (2); and
       ``(B) integrating practical field experience into the 
     research and development process in order to introduce the 
     most appropriate technologies.
       ``(4) The Administrator of USAID, in collaboration with the 
     Health Technology Program, shall submit an annual report to 
     Congress and all relevant Federal agencies that describes--
       ``(A) the relevant activities of the Health Technology 
     Program that are in the incubation phase;
       ``(B) the progress made on such activities and on other 
     projects carried out through the Health Technology Program; 
     and
       ``(C) the outlook for future health technology efforts 
     evaluated by the Health Technology Program to have 
     significant growth potential.
       ``(5) There are authorized to be appropriated $5,000,000 
     for each of the fiscal years 2010 through 2014 to carry out 
     the Health Technology Program under this subsection.''.
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