[Congressional Record Volume 156, Number 151 (Thursday, November 18, 2010)]
[Senate]
[Pages S8014-S8031]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FDA FOOD SAFETY MODERNIZATION ACT--MOTION TO PROCEED--Continued
The PRESIDING OFFICER. The Senator from Oklahoma.
Mr. COBURN. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. The Senate is not in a quorum call right now.
Mr. COBURN. Oh, very good. Then I withdraw my request and ask that I
might be recognized.
The PRESIDING OFFICER. The Senator is recognized.
Mr. COBURN. Thank you, Mr. President. I wish to spend a few minutes
discussing the bill that is before us. Having been a manufacturing
manager for 10 years, producing products that came through the medical
device industry, and having dealt with the FDA as a manufacturer and
then having dealt with the FDA and the consequences of the FDA as a
physician over the last 25 years and then looking at this bill that is
on the floor today, I think it addresses three things I have talked
about, especially in Oklahoma over the last year.
Everybody recognizes this Nation is at a critical point--fiscally,
internationally. From the standpoint of foreign policy, it has been
impacted by our fiscal problems. But there are three structural reasons
why I think we are there, and I think we need to learn from them. This
bill provides us a great example.
The first is, as a physician--and I knew it as a business manager--
you have to fix real problems. If you fix the symptoms that have been
created or the circumstances that have been created by the real
problems, you will make things better for a while, but you actually
will not solve the underlying problem. What happens when you do not
solve the underlying problem and fix the symptoms is, you delay the
time and you also increase the consequences of not fixing the real
problems.
Second, if you only think short term, you do not have the planning
strategy with which to do the best, right thing in the long term. We
consistently do that in Washington. Consequently, the CBO put out the
unfunded liabilities for Medicare, Medicaid, and Social Security
yesterday. It is now $88.9 trillion. It was $77 trillion last year. It
was $63 trillion the year before. So we are up $26 trillion in unfunded
liabilities that we are going to pass on to our kids in 3 years because
we continue to think short term instead of long term.
Then, the fourth thing is to have the courage to stand and say: No,
we should not do things that address the symptoms; we should address
the underlying problems. No, we should not think short term or
parochially; we should think long term and address that issue.
As to the food safety bill, all my colleagues are very well intended
in terms of what they are trying to accomplish with it. But there are
some facts we ought to be realistic about. We could spend $100 billion
additionally every year and not make food absolutely safe. There are
diminishing returns to the dollars we spend. But if you look at what
the case is: In 1996, for every 100,000 people in this country, we had
51.2 cases of foodborne illness--the best in the world, by far. Nobody
comes close to us in terms of the safety of our food. But, in 2009, we
only had 34.8 cases--three times better than anybody else in the world.
So the question has to be asked: Why are we doing this now when, in
fact, we are on a trendline to markedly decrease it? The second
question that should be asked is: No matter how much money we spend, is
there a diminishing return?
There are a lot of things in this bill that I agree with--a lot. I
think foreign food ought to be inspected before it comes into this
country and I think those who want to sell products in this country
ought to have to demonstrate the quality of it and I think the cost of
that ought to be on the person selling the food, not on the American
taxpayer. But ultimately that cost will be added to the cost of the
food.
I think the recognition of peanut allergy is a realistic one, and I
understand the purpose for wanting a grant for that. But as I read the
Constitution, that is a State function. That is not our function. The
other thing that bothers me about the grant proposals--I walked out of
the deficit commission to come over here. I have spent 8 months in that
commission looking at the problems in front of this country. We cannot
afford another grant program. We do not have the money.
So we can say we are going to authorize it in this bill, but, do you
know what, it is not going to get funded next year because we do not
have the money. When the interest rates skyrocket in less than a year
from now because of our misplaced spending over the past 20 years and
our continued short-term decisionmaking instead of long-term
decisionmaking, our situation is going to grow even darker. So this
bill provides a wonderful example of how we ought to fix the real
problems instead of the symptoms of the problems.
The other thing that truly is not addressed is the long-term
criticisms the GAO has continually made on our food safety. Senator
Harkin has the best idea of all, but he could not get everybody to do
it; that is, an independent food safety agency, to where we are not
relying on the CDC, we are not relying on the FDA, we are not relying
on the Department of Agriculture, that we put them all into one and
say: You are responsible for food safety. But he could not sell that.
Ask yourself the question: If you had three different agencies
stepping all over each other with different sets of rules with
agreements between themselves that they will do certain things, and
then they do not do them--that, by the way, is why we had the
salmonella problem; they did not follow their own protocols to notify
the FDA of the problem--most commonsense thinking people would say:
Well, maybe you ought to put all those things into one agency, with one
boss and one line of accountability and responsibility.
So Senator Harkin is absolutely right in where he wants to go. We are
going to spend $1.5 billion over the next 5 years on this bill that
does not accomplish what we need to accomplish, which is what Senator
Harkin wants to do--and he is right--and we are not going to fix the
criticisms that have been leveled against the agencies by the GAO for 8
years, in spite of the fact, as I stand here and am critical of
different agencies, they actually have done a very good job. That is
known by the fact that our incidence of foodborne illness is now less
than 34 per 100,000 people. Think about that. Think about all the
sources of food we get in this country and the diverse places they come
from. Yet only 34 people get a staph poisoning or a nontoxigenic E.
coli poisoning or a salmonella poisoning or a Yersinia poisoning or a
Shigella poisoning in a year. So that is the incidence of illness.
The question is, How do we stop the 10 or 20 deaths a year from
foodborne illness? Can we do that? Well, as a physician trained in
epidemiology, we could do it. But I will posit we do not have the money
to do that because it would take billions upon billions upon billions
of additional dollars to ever get there. So we find ourselves in a
dilemma.
I commend to my colleagues the reports GAO-09-523, GAO-09-873, and
GAO-05-213.
The GAO does a wonderful job telling us where we are failing, and we
ought to address everything they raised in these reports.
Even further than that, Dr. Hamburg, around the time we were having
the salmonella with the eggs problem, released an egg standard. The
bureaucracy took 11 years to develop that standard. That falls on the
shoulders of President Bush's administration as
[[Page S8015]]
well as this one. I am proud of her that she got it out. But the fact
is, 11 years to do what you are responsible for, to get an egg standard
so we do not have significant salmonella poisoning coming from eggs?
Then, lo and behold, after the egg standard is out, the FDA inspectors
on farms in Iowa are violating their own protocols, cross-contaminating
egg farms, as documented in the press.
It is not a matter that we do not have enough rules and regulations.
That is borne out by the fact that we are continually seeing a decline
in foodborne illness. That is not the real problem. The problem is
effectively carrying out the regulations that are there today. So we
have a bill on the floor that has 150 to 170 pages--I cannot recall
exactly how many it is--here it is. It is 266 pages of new regulations,
new rules, new requirements.
Let me tell you something else I learned about dealing with the FDA.
The FDA overall in this country does a fantastic job. They do. They are
very professional. They are very slow sometimes, but they are very
professional, and they are very cautious. In this bill is a mandate to
require recalls. Not once in our history have we had to force anybody
to do a recall. It has always been voluntary, and you can check with
the FDA on that. They do not need that authority. Why don't they need
that authority? Because if you have a problem with your product in the
food system in this country, you are going to get sued. You are going
to get fined if you do not recall that product.
What is wrong with a potential mandatory recall? What is wrong is it
is going to markedly raise the cost of foods. Let me explain why. It is
called Coburn's bureaucratic principle: Do what is safe first in the
bureaucracy rather than what is best.
Here is what I imagine happening with a mandatory recall. Because we
have a problem, we are going to recall something and we are going to
force a mandatory recall. Even though they may recall it voluntarily,
somebody is going to pull the trigger earlier, because they don't want
any criticism. There is a great example for that. How many people
remember the toxigenic E. coli jalapeno pepper episode? Voluntary
recall for tomatoes, because we said it had to be in the tomatoes, so
they did that. That cost $100 million to the tomato farmers in this
country and didn't save one life, because they got it wrong. They
discovered about 10 days after that, it wasn't the tomatoes, but the
damage was already done. I can remember I ordered my hamburger in my
special place in Muskogee, My Place BBQ, and I couldn't get a tomato on
it. The reason we couldn't get a tomato--there wasn't anything wrong
with tomatoes in this country; it was because a recall had been
suggested by the FDA and the tomato growers responded.
So what we are going to see is a heavy hand rather than a working,
coordinated foundation upon which we do recalls, as we do now. We have
not had one instance ever when a food needed to be recalled that wasn't
voluntarily recalled.
What I worry about is the fact that we will have recalls that are
mandated much too soon on the wrong products at the wrong time. We
don't have a track record that says the government needs additional
power. As a matter of fact, the FDA doesn't say they need additional
power.
So let's summarize for a minute. Where is the crisis in food safety,
when the science demonstrates that we have the safest food in the world
and we are on a trendline to have it even safer? Where is the cost-
benefit analysis in terms of what we are going to get from spending
another $1.5 billion in terms of lowering that number? There is nothing
in this bill to show that. What is in this bill are tremendous new sets
of regulations and authorities on top of the authorities that both the
CDC, FDA, and Department of Agriculture already have, that I don't
believe--and I agree I am in the minority on that, but I am trained in
the area of medicine, science, and epidemiology--I don't believe we are
going to get a significant cost-benefit from it.
We are going to feel better because we did something. But, again,
that goes back to the first three principles. If we don't treat the
underlying problem--in other words, have the oversight hearings to make
sure the agencies are actually carrying out their functions every day
on a thorough basis that can be vetted and making sure we are doing the
right things to create the opportunities to have safe food--we are not
accomplishing anything, but we are going to feel better. But do we know
who is going to feel worse? Our kids. Because they are going to pay--if
we appropriate this money, and I highly doubt a good portion of it will
be appropriated--they are going to pay for it. If you followed last
week in international finance, the scare over Ireland's ability to
repay its debt, and the pressure it had--and we got good news on the
economic front today--good news, and it is welcome news by all of us.
But the fact is, what is happening in Ireland and in Greece and Spain
and Portugal is getting ready to happen to us. And this is a small
example of why--very good-intentioned, well-intentioned people trying
to do the right thing, fixing the symptoms instead of the underlying
problem.
Our answer is more regulation has to be the answer. That is what we
did in the financial regulation bill. That is what we did to the SEC
after Bernie Madoff. Everybody knows the SEC was alerted several times,
but they didn't do their job. Consequently, we put all of these new
rules and regulations to not let another Bernie Madoff scandal happen
when we should have been holding people accountable for not doing their
jobs.
I am not against regulation, but I think it ought to be smart,
targeted, and focused to real problems, not the symptoms of the
problems. It is my personal belief--that we are targeting symptoms and
not the real problems with this bill.
Senator Harkin has bent over backward to work with me. He is an
honorable man. He is interested in food safety and the welfare of this
Nation. Nobody should ever say otherwise. But my experience leads me to
believe it isn't going to accomplish the very purpose he wants to
accomplish, and my recommendation is to go back and work in the new
Congress to develop a true food safety center organization within the
Federal Government that combines all the factors.
Do my colleagues realize right now when we buy a pizza at the grocery
store, if you buy a cheese pizza it comes through the FDA, but if you
buy a pepperoni pizza, it gets approved by the U.S. Department of
Agriculture? How many people in America think that makes sense?
The other thing with this bill--and I will finish with this and then
yield the floor--is this bill wants more inspections. That is great.
There is no question that inspections will help; the question is what
is the return on the dollars we spend for it. But if we are going to
use more inspections, there is not nearly enough money in this bill to
do it effectively. That is what we are going to trust.
Let me tell my colleagues why I think we have the safest food in the
world: because we have the best legal system in the world. That is why
we have the safest food, because the market forces applied on somebody
selling food into our commerce are so great and the consequences
legally are so negative that it is only in their best interests to
bring a safe product to the market. When we have food scares, most of
the time it is not an intentional act that created the problem, it is
an unintentional act. It is a failure of someone in carrying out a
protocol that should be established.
Under this bill, anybody who sells more than $500,000 worth of food--
that is almost every Amish farmer in America--a co-op of Amish at every
farm--will have to have a detailed, laid-out plan, written down, double
checked, cross checked and everything else. What do my colleagues think
that is going to do to the cost of food? Do my colleagues think as we
implement new regulations, those costs aren't going to be passed on? So
as we grow the government, if, in fact, we are treating symptoms and
not underlying problems--and I don't have any problems with regulations
that address real problems--all we are doing is raising the costs and
making ourselves less competitive, decreasing the number of jobs that
are available in this country, and not truly ensuring an increased
level of safety with our food supply.
It is hard to dispute the facts about our incidence of foodborne
illness. One case is too many. But we don't have
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the resources to make it where there is not one case, even. It is the
same question on homeland security. Can we ever spend enough money to
100 percent guarantee that we won't have another terrorist attack?
Anybody who looks at it says no, we can't do that. It is the same with
food. For every additional dollar expended, what is the return to the
American consumer for that?
If it were an achievable goal to eliminate all foodborne illness, I
would be right there with you. It is not achievable. It is going to
happen. The question is: Can we continue on a slope to continue to
decrease the frequency where we have the least amount for the dollars
we spend? There is a balance, and we need to be there. I will take the
criticism of my colleagues that they think we need to spend this
additional $1.5 billion to get it further down the road. But I still
raise the question of how we cut it in half over the last 9 years--or 5
years--and didn't spend anything. So we are on a good trend.
We are, unfortunately, going to have complications with our food
supply, but we have a great legal system where we have bad actors such
as the peanut butter factory in Georgia which is now shut down, in
bankruptcy, and people are going to jail, because they intentionally
violated the rules we have today. But how did they intentionally do it?
Because we didn't have effective carrying out of the regulations we
have today.
I appreciate the great manner in which Senator Enzi and Senator
Harkin have worked with me. I have another amendment I wish to offer on
this bill. Everybody knows what it is. It is an earmark amendment. I
understand the disdain for having to vote on that and I understand the
procedural moves that will be made for that, but we are going to vote
on it. We are going to suspend the rules to get the first vote, but I
can assure you in the next Congress we are going to get an up-or-down
vote on it, and it is going to pass in this body because the American
people expect it to pass. It is something we ought to put away until we
get out of the problems we are in nationally.
I yield the floor and note the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant bill clerk proceeded to call the roll.
The PRESIDING OFFICER. The Senator from Minnesota.
Ms. KLOBUCHAR. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Ms. KLOBUCHAR. Mr. President, I ask unanimous consent to speak for up
to 10 minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.
Ms. KLOBUCHAR. Mr. President, I am here today to highlight the
urgency of passing the legislation to overhaul our Nation's food safety
system. The last time the FDA's law related to food was changed in any
substantial way was 1938. Think of how things have changed since that
time: food coming in from all over the world. We think about all of the
new producers and the new processing plants and the new kinds of food
we have that weren't available in 1938. An overhaul of the food safety
system is long overdue, and so is the passage of the Food Safety
Modernization Act. Food safety reform should have passed Congress and
should have been signed into law months ago. I have stood in this
Chamber many times saying the same thing. Each time, each month,
something new comes up where people get hurt or people die. Whether it
is jalapeno peppers or peanut butter or more recently eggs, these
outbreaks of foodborne illness and nationwide recalls of contaminated
food highlight the need to better protect our Nation's food supply. We
need to fix it.
The good news is we know how we can do it and we have legislation
sitting right here on the table that could go a long way toward helping
families at their own kitchen tables. The bad news is this legislation
has been stalled in the Senate since last November.
This legislation is, first of all, comprehensive. It covers
everything from ensuring a safe food supply at the front end to
ensuring a rapid response if tainted food gets into the supply chain.
I wish to respond to a few points my colleague from Oklahoma raised.
First he noted that somehow the FDA didn't need the authority to
recall. In fact, right after the last outbreak, the egg issue, the eggs
in Iowa, the FDA Commissioner came out and said she needed additional
authority to do a recall. So let's set the record straight on that.
That was wrong.
Secondly, I would point out that this legislation is bipartisan. It
has both Democratic and Republican sponsors and it passed through the
committee, the committee on which the Presiding Officer serves, last
November with bipartisan support. Food safety is not a partisan issue
and it shouldn't be. It is a national issue of public health and public
safety. Do my colleagues know what else? It is a business issue. So
when I heard my colleague from Oklahoma talk about how somehow it was
going to hurt the bottom line, I wish to know why the grocery stores of
America support this bill. Does anyone think they are not worried about
their bottom line?
I would like to know why companies such as General Mills support this
bill, and why companies such as Schwan's in Marshall, MN, one of the
biggest frozen producers in the country--the No. 1 issue they raised
with me was passing this bill. Do you think Schwan's is a company that
doesn't care about the bottom line?
You haven't met their business executive, I say to my friend from
Oklahoma. Their focus is on jobs, making money, and producing a good
product.
So why do these businesses that are so clearly concerned about their
bottom line care about passing this bill? Guess what. These bad
actors--whether it is the peanut butter factory in Georgia or whether
it is the egg place that had rats in it--these bad actors hurt all the
good actors out there, the good food producers and good farmers and all
of the companies that put in safety measures. That is why the
companies, the grocery stores, SuperValue, and these kinds of companies
want to get this bill passed. They think having bad food out there is
not only bad for consumers when they get sick or die, but it is bad for
their bottom line. That is why there is industry support for the bill.
Finally, this legislation addresses a very serious issue--and this
was the most difficult thing to hear from my friend from Oklahoma. You
all know in our State about the case of Shirley Ahlmer, a grandmother.
She fought cancer and survived it. She was ready to go home for
Christmas, and she ate a little piece of peanut butter toast. That
grandmother died because of that peanut butter toast.
I don't want to hear about how it is not worth it for the people of
America, that it is going to cost the people of America, until you talk
to Shirley's son Jeff and find out what it cost his family because
there wasn't an adequate food inspection system in this country. That
is what this is about.
One other thing that was not true was when my colleague from Oklahoma
talked about the tomato recall. That was true, and it was misdiagnosed.
They said the wrong thing. It was actually jalapeno peppers. They said
it was tomatoes.
Why should we keep the same food system in place now if people are
out there calling the wrong card and saying tomatoes caused this and
tomato prices go down and people who produce them get hurt and instead
it is jalapeno peppers? Meanwhile people are getting sick across the
country. Why would the answer be that we have a great system and let's
not change it? The answer is we have to change the system.
The other thing is, both the peanut butter contamination and the
jalapeno peppers, do you know who called it right? The State of
Minnesota. It was the University of Minnesota and the Minnesota Health
Department. None of it got identified until people got sick in the
State of Minnesota. That makes us proud of our State. But we would have
rather not lost three people in the peanut butter crisis and said:
Guess what, we got it right.
What we can do is take the system we have in Minnesota, which is
common sense, and instead of just having this problem sit on a county
nurse's desk, we have graduate students who can work together and make
calls and figure out what caused this when people got sick, and ask:
What did you eat yesterday? It is that simple.
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The part of the bill which Senator Chambliss and I sponsored is to
use that model--not make every State do it but say, let's look at the
best practices in four regions of the country and see if we can improve
the system so we can catch these illnesses quicker and respond better
and have less people die or get sick.
When I look at all of the issues raised by my colleague, the bottom
line for businesses is this: Businesses in this industry support this
bill. When I look at the issue of consumer safety, all you have to do
is go and look at what happened to Shirley Ahlmer.
When I look at the issue of what is better for the consumers of this
country, I don't think anybody wants to get sick from eggs that have
Salmonella. It is unacceptable, Mr. President.
I hope anybody who was listening to my colleague from Oklahoma has
also listened to this because it is very easy to make these claims. Let
me tell you, one, the people who do this work say they need more
authority to do recalls and to do it right. The businesses that are
affected by the food safety outbreaks need a better system. They don't
want to get stuck in one from back in 1938. The people hurt by this, or
family members killed by this, say we need improvement. That is why
this bill has bipartisan support and why three-fourths of the Senate
supported moving forward on the debate.
I hope this delay will end and that we will get this done so that
when families sit down for Thanksgiving dinner, they will at least know
there is hope in the future that we are not set back in the inspection
system that we had in 1938.
I yield the floor.
The PRESIDING OFFICER. The Senator from Oklahoma is recognized.
Mr. INHOFE. Mr. President, I ask unanimous consent that I be
recognized as in morning business for such time as I shall consume.
The PRESIDING OFFICER. Without objection, it is so ordered.
Global Warming
Mr. INHOFE. Mr. President, as Mark Twain might have characterized
where we were a short while ago, reports of the death of cap and trade
have been greatly exaggerated.
It is true we defeated all the bills. This was after the Kyoto
Treaty, which failed to even get recognized for discussion, let alone
ratified. We had all the bills--the McCain-Lieberman bill, the
Lieberman-Warner bill, the Waxman-Markey bill, and all of the others,
and they were all killed.
I can remember way back 8 years ago when I was the only bad guy, the
one everybody hated. That is when I made an honest statement at the
time that perhaps what they were trying to do with the global warming
was the ``greatest hoax ever perpetrated on the American people.''
As time went by, more and more people agreed. A lot of things have
happened. Just in the past year, we have had the revelation of
Climategate, the failure in Copenhagen, the admission of the futility
of unilateral climate action, the year of the skeptic, and the
vindication at the ballot box that took place November 2.
With all this, one might be tempted to declare victory, and I have to
admit that for a short while I did. It was a year ago today that I gave
a speech right here on the Senate floor, at this same podium, noting
that the tide turned decisively against global warming alarmism. The
year of the skeptic took place.
Just 2 days later, Climategate exploded into view as thousands of e-
mails were released that showed, at a minimum, the very scientific
spokesmen for alarmism were scheming to block open and honest
assessments of their work. Behind the veil of e-mail, they showed their
true colors: They weren't acting as scientists but as political hacks.
They were scientists defending a political agenda. The agenda would
virtually shut down America.
A lot of people realize and recognize that fossil fuels are necessary
to run this machine called America. Right now, 53 percent of our energy
is generated from coal. Coal is necessary. We have clean coal
technology, and the releases are much less than they used to be. Oil
and gas are both fossil fuels. It is necessary. You cannot run this
machine called America without them.
The damage has been done in terms of what was going on at Copenhagen.
I think the chapter on the climate science wars has closed. Climategate
scientists and the allies want to keep fighting. They are particularly
begging us to bring them before committees to question their work. But
we will not because they are now irrelevant. The time to talk about
this science is over.
I will say this: Five years before Climategate, I gave a speech in
the Senate and talked about what they were trying to do to cook the
science. Instead of talking about science, we are talking about the
economics of what is happening now. We are talking about jobs, about
competitiveness, and manufacturing and small businesses and real people
who have to pay more for electricity, food, and gasoline. What do I
mean? Even with all of the progress we have made--and while cap and
trade is dead, bureaucratic cap and trade is alive and well--what is
happening in this country is that we have an administration with a
majority in Congress who tried to pass this legislatively, tried to
pass cap and trade. The cost of cap and trade, we were finally able to
convince the American people--if you look at it not from what Senator
Jim Inhofe says but what the economists say, what they said at MIT and
what they said at Wharton, if you pass any of these cap-and-trade
schemes, the cost to the American people will be in the range of $300
billion to $400 billion a year. That is what they decided they were
able to do legislatively. They thought we will do this--because we
control EPA, we will do it through the regulations.
What Senator Reid said may be true for the massive 1,000-page bills
filled with mandates, taxes, regulations, bureaucracy, and not much
else. But it is not true for the more subtle strain of cap and trade
now moving through the EPA.
That is right; this backdoor cap and trade hidden behind an
administrative curtain. I can hear already what my friend, the EPA
Administrator, Lisa Jackson, would say: Senator Inhofe, you know we are
regulating in broad daylight, and we are inviting public comment and we
are providing guidance. It is all aboveboard and out in the open.
That may be true, and I trust that Administrator Jackson wants the
EPA to be transparent. Unfortunately, this bureaucracy has gotten to
the point where transparency is virtually impossible.
The reality is that backdoor cap and trade is hidden behind acronyms
such as PSD, BACT, SIPs, FIPs, BAMM, GHGRP, and the like and arcane
legal provisions in the Clean Air Act. It is all a great muddle for
bureaucrats and lawyers, but it is a profound disaster for jobs and
small businesses in America.
Make no mistake, the intent and ultimately the effect is no different
than Waxman-Markey, which is to eliminate fossil fuels and impose
centralized bureaucratic control over America's industrial
manufacturing base. Unless we stop them, that is what they will
achieve.
Of course, President Obama would say we could have avoided all this
if we passed cap and trade. That is true. If we had done that, we also
know it would not have preempted what EPA would be doing.
That is wrong on two counts. First, what kind of a deal involves
accepting a bad bill in place of bad EPA regulations? That is no deal
at all. Secondly, the supposed deal wasn't an either/or proposition.
Waxman-Markey didn't fully eliminate EPA's ability to regulate under
the Clean Air Act. President Obama and cap-and-trade supporters wanted
both options--cap and trade including regulation under the Clean Air
Act.
Keep in mind we are talking about something that is very massive--the
largest single tax increase on the American people. When you talk about
$300 billion or $400 billion a year, you have to bring that down and
say: What does that mean to me?
To the taxpayers in Oklahoma, it would mean over $3,000 a year. What
do they get for it? Nothing. One thing I like about Administrator Lisa
Jackson, the Administrator of the EPA, is she is honest in her answers.
I asked her the question: If we were to pass something like this, pass
Waxman-Markey and do something legislatively, how would it affect
worldwide emissions of CO2. She said it wouldn't have much
of an effect at all. The reason is we can't do that in the United
[[Page S8018]]
States: This isn't where the problem is. It is in China, India, Mexico,
and other places around the world. As we tighten our availability of
power, they have to go someplace--our manufacturing base--to find
power. Well, now they would be going into areas where we have less
controls. So that could very well have--by banning it here, it would
have an increase in the effect of CO2 emissions. Most people
understand and agree with that.
We have a long, difficult fight ahead. It goes back to December of
2009 when EPA promulgated the endangerment finding that CO2
endangers public health and welfare. We know that finding is wrong and
based on flawed science.
Before I went to Copenhagen last December--first of all, what
Copenhagen is, that is the annual big party that the U.N. puts
together--and they have done it for 15 years now--and they always have
it at exotic places. Next month it will be in Cancun. Last year, before
I went there, I asked Administrator Jackson the very question: What
does your endangerment finding--the way it happened, I say to you, was
that we had a hearing, a public hearing, live on TV, and Administrator
Jackson was in our hearing room.
I said: I am getting ready to be the one-man truth squad in
Copenhagen. I have a feeling when I leave, you are going to have an
endangerment finding. What would that be based on? The IPCC.
To make sure everybody understands, that is the U.N. That is what
started this thing way back in the 1980s. And so now that is
established and we know the science on which an endangerment finding is
based, we go to Copenhagen. It was almost the next day that climategate
broke. Oddly enough, the timing couldn't have been better--I had
nothing to do with it; I was as surprised as anyone--because they came
out and talked about the flawed science that was there and the fact
they were cooking the science.
I have to say this. Five years ago this week, in 2005, I gave a
speech on the Senate floor talking about how they were cooking the
science at the United Nations--the IPCC--to make people believe that
greenhouse gases--anthropogenic gases, CO2, methane--were
causing catastrophic global warming. That was their mission. They
started with that conclusion and they tried to get science to support
it. Well, all that was exposed.
The list of IPCC errors is so long I won't repeat it here, because I
did so in my speeches before. We know the claim that the Himalayan
glaciers would melt by 2035 was off by about 300 years. What is
important now is that the endangerment finding triggered regulations
that will eventually reach out into every corner of the American
economy. This will be the greatest bureaucratic intrusion into American
life we have ever seen.
Let us put some specifics on that. We are talking 6.1 million sources
subject to EPA control and regulations. With regard to EPA control and
regulations, I don't think I have to tell you how onerous that would
be, what that would be doing to all these institutions that would be
affected. The U.S. Chamber of Commerce has put together a list as to
who would be affected by these new regulations and that thousands and
thousands and thousands of new bureaucrats would be crawling all over
in America. The list includes 260,000 office buildings, 150,000
warehouses, 92,000 health care facilities--that is hospitals and so
forth--71,000 hotels and motels, 51,000 food service facilities, 37,000
churches and other places of worship, and 17,000 farms.
The EPA understands the political peril of regulating all these
sources so they decided to change the law without congressional
authorization to exempt many of the sources I have mentioned, but that
is a front. It sounds good, and they will stand up and say, no, we are
not talking about 250 tons of CO2. But the Clean Air Act
specifically says that the major sources are those that have the
potential to emit 250 tons or more of given pollutants. All the farms,
all the churches, as I mentioned, are going to be in that category.
Two hundred fifty tons of, say, sulfur dioxide or nitrogen oxide is a
good deal of pollution. But when it comes to CO2, it is not.
Lots of facilities emit that amount and more. We are talking schools,
nursing homes, restaurants, even individual residential sources, mind
you, that were never contemplated to be regulated when Congress passed
the Clean Air Act.
So what did EPA do? Well, they promulgated something called the
tailoring rule. This gets in the weeds here, but it is something they
created to say, well, no, we are not going to use 250 tons of
emissions, we are going to use 75,000 tons. That means we are talking
only the giants--the refineries and some of these groups. Well, the
problem with that is that is not what the Clean Air Act says.
Sources emitting above those amounts have to get permits that require
so-called best available control technology to reduce CO2.
Of course, we don't know what that is. It has never been defined. The
EPA issued draft guidance on what they call the BACT--best available
control technology--last week, but it provided no help, just more
confusion and uncertainty on what the requirements would be.
Of course, they talk about the EPA has a law in front of it that says
clearly the major sources are those that have the potential to emit 250
tons or more. Yet it says the new number is 75,000 tons or more. So now
the EPA can conveniently say that schools, hospitals, and the like
won't be regulated, at least not until 2016, when the agency says it
will consider whether to regulate such sources.
There is the catch. This supposed exemption through the tailoring
rule only lasts for a few years, not to mention the fact that it
blatantly violates the Clean Air Act, which subjects it to litigation.
On that last point, the tailoring rule, along with the endangerment
finding and other greenhouse gas rules, is being litigated, so we will
know eventually whether the tailoring rule survives. I think it will be
thrown out, but the fact it can be thrown out should be enough for us
to be honest with the American people and say we are going to regulate
everything that falls within the 250 tons--all the residences, the
churches, and the farms I mentioned before.
Again, I want everyone to understand: The regulation of global
warming by EPA, backdoor cap and trade, begins on January 2. It is
here, a month away. I am not the only one concerned about it. On
February 19, Senator Rockefeller, joined by seven of his other
Democratic colleagues, wrote Administrator Jackson. Keep in mind, this
is coming from the Democrats here in this Chamber. He wrote:
We write with serious economic and energy security concerns
relating to the potential regulation of greenhouse gases from
stationary sources under the Clean Air Act. We remain
concerned about the possible impacts on American workers and
businesses in a number of industrial sectors, along with the
farmers, miners and small business owners who could be
affected as your agency moves beyond regulations for vehicle
greenhouse gas emissions.
We need to address this, because employers and small businesses are
afraid to hire and expand right now, in large part because of the EPA's
global warming regulations. They do not know what to expect. They are
looking at the Clean Air Act, that has a very small threshold. Yet
statements are being made that this is going to affect everyone and
they don't know what to do.
I want my colleagues and the American people in general to know that
EPA is moving in all directions, beyond just implementing job-killing
global warming regulations. EPA is threatening jobs on a host of
fronts. A few months ago, I released an oversight report examining the
thousands of jobs at risk. And by the way, this is a good report. It
talks about four major areas of concern, and they are all on my Web
site at inhofe.senate.gov. Read them over, if you want to be scared.
But here is what I found:
The new standards for commercial industrial boilers, for example, put
up to 798,000 jobs at risk. The revised National Ambient Air Quality
Standard for ozone puts severe restrictions on job creation and
business expansion in hundreds of counties nationwide. New standards
for Portland cement plants put up to 18 cement plants at risk of
shutting down, threatening nearly 1,800 direct jobs and 9,000 indirect
jobs.
I think we should be concerned enough about the unemployment rate
that we have right now without exacerbating that problem, which is what
we do with these rules. I think everyone knows that. Where are these
rules
[[Page S8019]]
going to hurt the most? In the heartland. By that I mean Pennsylvania,
Ohio, Michigan, Indiana, Illinois, Missouri, Wisconsin, Nebraska,
Minnesota, and Montana. Of course, my own State of Oklahoma is feeling
the brunt, and others will as well.
Here is the bottom line. Backdoor cap and trade is alive and well. It
is moving forward. The fight over the future of America's industrial
base is under way. I want to put the administration on friendly notice
that I will investigate these rules vigorously in my capacity as the
ranking member of the Environment and Public Works Committee. I do this
to expose their impact on jobs, energy prices, competitiveness, small
businesses, energy security, and the true extent of their environmental
benefits.
It is my sincere hope the EPA will pull back, revise, reform, and
balance its regulatory agenda to protect jobs as well as the
environment. If the EPA persists on moving down a more extreme path,
then our 9.6 unemployment rate will be even worse in 2012.
In an attempt to stem the impending economic harm facing thousands of
small businesses, the EPA has developed its so-called tailoring rule. I
don't want to elaborate on this. I will only say that the tailoring
rule is to make people think we are only going to be regulating those
entities that emit 75,000 tons or more, when the law clearly says 250
tons or more.
In some cases, these rules will have no meaningful environmental
benefits. Consider EPA's rules to regulate greenhouse gases. They would
reduce global temperatures by 15 one-hundredths of 1 degree by 2100.
That same figure goes all the way back to the consideration of Kyoto.
This is back in the 1990s. I remember at that time it was Vice
President Al Gore's own scientist--Tom Prigley, I believe his name
was--who came out and the question was if all of the developed nations
were to comply with Kyoto's emission requirements, how much would it
reduce the temperatures in 50 years. The answer was 7 one-hundredths of
1 degree Celsius. So you can talk about all the sacrifice we are making
and nothing good can come from it.
I want to conclude, because there are a lot of people here wanting to
speak, saying that the Administrator of the EPA, Lisa Jackson, talks
about the fact that what we do unilaterally, here in the United States,
is not going to have a major impact on emissions nationwide, yet we
know what it is going to cost. I want to say we are going to quit
talking about the science. We understand how the science is not on
their side; that the things we said on the floor of the Senate 5 years
ago were verified with climategate. They have been cooking the science,
and it is very convenient.
Lastly, I went to Copenhagen, as I mentioned earlier. That is the big
U.N. party each year. That was probably the most productive 2\1/2\
hours of my life, the 2\1/2\ hours I was on the ground in Copenhagen. I
was preceded by Senator Kerry, Hillary Clinton, President Obama, and
several others--Nancy Pelosi--and they were all assuring the other 191
countries present that we were going to do something about cap and
trade. I went there to make sure they knew we were not. I will always
remember that, because we had 400 people and the 120 cameras were
zeroing in on me. I say to my good friend from Virginia, they all had
one thing in common: They all hated me.
That is behind us now and we have to now look at the regulators. This
regulation would put America out of business.
With that, I yield the floor.
The PRESIDING OFFICER (Mrs. Shaheen). The Senator from Virginia.
Mr. WARNER. Before I get to my remarks, Madam President, I want to
commend my friend, the Senator from Oklahoma, for his comments. I don't
always agree with him, but I have had the opportunity to sit in the
Presiding Officer chair and listen to his views over the last 2 years,
and let me make sure I make clear that his characterization of some of
those folks with those cameras, I would not fall into that category.
I also want to wish the Senator a very happy birthday. I understand
it was yesterday, and I wish him all the best. Our offices are next to
each other and we are good neighbors.
Tribute To Federal Employees
Madam President, I rise today to continue a recent tradition of the
Senate--the tradition of honoring exemplary Federal employees--my
friend Senator Ted Kaufman began last year. Senator Kaufman believes,
as I do, that our Federal employees deserve recognition for their
admirable patriotism which drives them in their daily work as civil
servants.
Senator Kaufman highlighted 100 Federal employees in his close to 2
years of service--100 Federal employees with significant
accomplishments in the fields of medicine, science, technology,
diplomacy, and defense. Today I will start to continue that tradition.
I am very proud that the first Federal employee I am going to have a
chance to honor is currently a resident of Virginia who combined his
engineering expertise with his past experiences in the Navy to help
save 33 Chilean miners after they had been trapped 2000 feet
underground for 69 days. This was an incident that captured the
attention of the world, as we all watched the rescue of those miners.
Again, I will only take a couple of moments to describe this employee
and how he contributed to that remarkable worldwide success story.
Clint Cragg served in the Navy for 26 years. He, as I mentioned, is
currently a resident of Virginia. His lifetime of service to our
country led him to many exciting opportunities, including serving as
the Chief of Current Operations, U.S. European Command. While in
Europe, he participated in a number of operations, including the wars
in Kosovo, Afghanistan, and Iraq. Today, Cragg is principal engineer
for NASA's Engineering and Safety Center, a center which NASA
established after the 2003 Columbia Space Shuttle tragedy. Clint has
given a lifetime of service to his country since his graduation from
the Naval Academy in 1978, and his service was never more important
than it was when he took part in the worldwide effort to save the
Chilean miners.
Clint and his colleagues were asked by the Chilean Government to
assist in rescuing their 33 countrymen trapped underground in a
collapsed copper and gold mine. Clint rose to the challenge and flew to
Chile with three fellow NASA employees to examine the scene. Using his
experience as a commanding officer of a submarine in the Navy, Clint
provided valuable insight to the miners on how to cope with the
underground existence they were in for a sustained period of time.
Clint and his team also met with Chilean officials to discuss the
development of a rescue squad capsule that at that time was a
completely untested idea.
Upon his arrival home, Clint received a message from the Chilean
Health Minister in which the Minister asked for NASA's help in thinking
of specific features that would make the rescue capsule idea a reality.
Clint assembled a team of 20 engineers, 10 from NASA Langley and 10
from around the country. They commenced brainstorming innovative ideas
for a capsule design. This was thinking whole cloth. The only
information the team had available was the capsule's maximum length and
the diameter of the rescue shaft through which the capsule was required
to fit. Seventy-two hours later, the team had a written, comprehensive
report that included 75 proposals for the rescue capsule. The paper
concluded that the rescue capsule should include a harness inside the
capsule that can hold a miner in case the miner fell unconscious during
ascent.
I think we all remember those images on CNN as they kind of drew up
the capsule. I didn't know, but that capsule was designed by a Federal
employee and his team we honor today.
As the 33 men rose from beneath the Earth, Clint could take pride in
his work for NASA and in the knowledge that he and his colleagues had
made the reunion between these men and their families possible.
I was privileged to meet Clint Cragg and his family and other members
of the rescue team during a visit to NASA Langley last week and present
them with a framed American flag that had flown at the U.S. Capitol in
honor of their contributions. The successful rescue of the miners was a
testament to the American spirit of cooperation and ingenuity, a spirit
exemplified by the NASA team.
I hope my colleagues will join me in honoring Clint for his service
and his leadership team at NASA as this
[[Page S8020]]
week's example of a great Federal employee.
I yield the floor.
The PRESIDING OFFICER. The Senator from Utah.
Mr. HATCH. Madam President, I ask unanimous consent that immediately
following my and Senator Grassley's colloquy, the distinguished Senator
from North Dakota be recognized for 30 minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.
Major Tax Issues
Mr. HATCH. Madam President, my colleague, Senator Grassley, and I
come to the floor to discuss very urgent business for the American
people that has been put off for far too long. I am talking about the
outstanding tax issues this Congress has so far failed to address. As I
count them, there are five major tax issues that collectively represent
a looming crisis for the economy. These are, first, the set of tax
provisions that expired almost a year ago on December 31, 2009, and
have yet to be extended. Second is another set of important tax
provisions due to expire at the end of this year, which is only 44 days
from now. The third item is the need to once again address the
threshold of the alternative minimum tax so that about 25 million more
American families are not caught in its clutches for the tax year about
to end. Fourth is the estate tax issue which has been haunting us and
the American people all year long. I submit it is way past the crisis
stage and is about to enter into even a worse stage. Finally, and
certainly not least, is the looming expiration of the tax relief
provisions we passed in 2001 and 2003 which are swinging over the
future of our economy like a hangman's noose. It is this situation that
I particularly would like to address the bulk of my remarks to, but
before doing so, let me turn to my colleague for his initial comments,
the ranking member on the Finance Committee and a great friend, Senator
Grassley.
Mr. GRASSLEY. Madam President, Senator Hatch has long been a leader
on a lot of these tax provisions, particularly in research and
development. I thank him for his leadership.
I think Senator Hatch has clearly outlined the gravity of the
economic consequences of a continuing failure to finish time-sensitive
legislative tax business.
There is a chart I will put up that shows where we are on these
categories of expiring tax provisions. Said another way, here are the
categories of tax hikes that congressional inaction will put in place.
I have used this chart before, so I think Members will be familiar. In
fact, several months ago, I used it. The congressional Democratic
leadership paid no attention to the seriousness of these issues then.
Unfortunately, the to-do list is exactly the same today as it was
several months ago.
If we go down through the chart, Members can see that we have had
partisan votes on extender packages negotiated between the bicameral
Democratic leadership but no effort to reach out to the Republican side
to find bipartisan common ground.
On this year's alternative minimum tax patch, as Senator Hatch noted,
inaction on the AMT will force a ``gotcha'' tax hike on millions of
middle-income families when they start to file their tax returns 6
weeks from now.
On death tax reform, the House passed a permanent reform almost 1
year ago, but it has languished in the Senate during that period. On
our side, we would like to improve that bill to protect more small
businesses and farm families from the death tax.
On the 2001-2003 tax relief packages, there is no bill from the other
side that would serve as a starting point on preventing this massive
tax hike. On our side, if the Democratic leadership permitted us, we
would like to start with Senator McConnell's bill. Senator Hatch and I
are cosponsors of that legislation.
Mr. HATCH. Senator Grassley has been the ranking Republican or
chairman of the Finance Committee for a long time now. We have seen
times when the expiring tax provisions have been dealt with in as
timely a manner as they should have been, but have we ever seen a state
of affairs like we have now with the extenders? What has this meant for
job creation and economic growth?
Mr. GRASSLEY. First of all, my colleagues probably know that my
friend from Utah is going to advance as the incoming ranking member of
the Senate Finance Committee, and I congratulate him on that. I know he
is going to do a very good job.
One needs only to look to the nonpartisan Congressional Budget Office
to assess the harm that could be done to the economy if we don't get
this tax legislation passed. According to the Congressional Budget
Office, not addressing these very time-sensitive tax issues will reduce
economic growth by as much as 1.7 percent on average for the years 2011
and 2012. If Members didn't hear that, it is not some political leader
saying that economic growth will be harmed by 1.7 percent; it is the
nonpartisan experts in the Congressional Budget Office saying that if
we don't pass these tax bills, economic growth is going to get hit 1.7
percent. Some private forecasters put that hit even higher--at 2
percent. When we consider that the last report has the economy growing
at an annualized rate of 2 percent, then it is quite obvious.
We can see that this single failure to prevent these great big tax
increases could wipe out what little economic growth is currently
occurring. I don't know how policymakers can sleep at night, let alone
be so casual when we haven't dealt with these time-sensitive tax issues
at a time when coming back here we heard nothing from our constituents
other than concern about the economy, about jobs, and about the legacy
of debt we are leaving.
Mr. HATCH. We ought to listen to Senator Grassley. He is one of the
leaders in this body and somebody we all look up to as totally honest
and sensitive on these issues. He has done a wonderful job on the
Finance Committee.
According to the Commissioner of Internal Revenue, perhaps the most
time-sensitive problem waiting for congressional action is the so-
called patch for the alternative minimum tax. I understand that if we
do not take care of this very soon, we could see major delays in the
tax filing season that will start on January 1. Is that the
understanding of Senator Grassley?
Mr. GRASSLEY. Absolutely. We have a track record on that. Just a few
years ago, it didn't get done on time, and people had to wait for their
tax refunds. That is the biggest thing. But it also created a terrible
bureaucratic problem for IRS to get the forms out.
My friend from Utah is correct. Fortunately, the chairs and ranking
members of the tax writing committees wrote to the Commissioner of IRS
last week indicating our intention to pass an AMT patch. The letter
specified what the AMT patch would look like. But as helpful as the
letter was, we still need to change the law. As a matter of fact, the
filing season could become very complicated if we don't act. During our
years in the majority, we never let the AMT patch legislation slip past
May of any tax year that it applied to. That only happened once.
The death tax is another overdue tax legislative item that has been
referred to. Maybe the Senator from Utah could bring up the issue of
the estate tax.
Mr. HATCH. That is the third item on the to-do list. If we do not
act, 6 weeks from now the reach of the death tax will greatly expand.
According to the nonpartisan Joint Committee on Taxation, 10 times the
number of estates will be taxable versus the number that would be
taxable in the bipartisan Lincoln-Kyl compromise. In the case of farm-
heavy estates, 13 times the number of those farm families would be hit
by the death tax. That would be unfair because the families would have
to either borrow the money or sell the farm in order to pay the death
taxes. That is just crazy.
The issue of extending the expiring tax relief provisions enacted in
2001 and 2003 has been a central question all this year, but we are
just now beginning to discuss this in earnest. This lack of action on
this vital topic has been a major factor in the low performance of our
economy.
The outcome of this debate is exceptionally important to the future
of this Nation. Its implications go well beyond what many on the other
side of this issue might want Americans to believe. This is not merely
a question of how well the rich in our society will live if we raise
their taxes.
[[Page S8021]]
Rather, this debate goes to the heart of the burning questions facing
American families of all income levels today: Will I keep my job? How
and when can I get a new or better job? Will the economy grow enough to
allow my family to pay its bills and make progress toward our dreams?
Can we afford to educate our children? Will America continue to prosper
in the years ahead, or are we in a permanent decline?
The President and most of my colleagues on the other side of the
aisle have decided that the answer to the question of fully extending
the tax relief provisions that are set to expire in just about 44 days
is no. While they are willing to extend them for those Americans
earning less than $200,000 per year if a single individual or $250,000
per year if a family, their position is that anyone above these
thresholds should get a tax increase.
However, the right answer for our country's future is that all the
tax relief provisions should be extended.
The reasons the President and his allies give for their position
largely boil down to the general supposition that the well-off among us
can afford to see their taxes go up, and that the Nation cannot afford
to forego the revenue lost to the Treasury from these taxpayers
continuing to have their taxes as low as they are.
Ironically, this second point implies that we can afford the revenue
loss from extending the tax relief to those making under the $200,000
and $250,000 thresholds, even though this loss is upwards of 80 percent
of the total amount of lost revenue from extending the tax relief for
everyone.
In other words, the President and his congressional supporters would
have us believe that this debate is solely about whether the so-called
wealthy among us deserve continued tax relief. They either fail to see
an economic connection between the finances of those at the top of the
income scale and the rest of us, or they refuse to admit that such a
link exists.
This may sound somewhat counterintuitive, but it is, nonetheless,
true. The essential element to this conundrum is that good permanent
jobs, which are the heart and soul of the American dream, are
inextricably linked to those in our economy who have wealth. When the
income of the wealthy is taxed, particularly in a way that reduces the
incentives for saving, investment, and entrepreneurship, that tax is
not just paid by those who write the check to the government. Indeed,
even those Americans who pay no income tax at all, which is now upwards
of half of all adults, can be badly hurt by tax increases on the so-
called rich. This is through the loss of opportunities, the lack of
jobs or better jobs, and slow or nonexistent economic growth.
One vital fact that many citizens do not realize is that a high
percentage of this Nation's business enterprises pay their taxes
through the tax returns of their individual owners. Taxes on sole
proprietorships, partnerships, S corporations, and limited liability
companies are all passed through these entities and assessed on their
individual owners. Higher taxes on these entities results in less money
for investment and expansion, which translates into fewer jobs created
and fewer opportunities for those who want to move up the economic
ladder.
Tragically, especially in this time of economic stress and high
unemployment, the real cost of taxation is paid by a group of
unintended victims. These are the men and women and their families who
do not get a chance to have a job or a higher paying job because the
tax destroys the economic growth that might have provided for such an
opportunity.
A study recently released by the nonpartisan Heritage Center for Data
Analysis highlights these facts. This study, which utilizes an economic
model owned by the leading economic forecasting firm in the country,
concludes that the President's tax plan to allow the tax relief
provisions to expire for the so-called well-off would have very serious
consequences for millions earning far less than those targeted.
Here are just a few of the highlights of these conclusions. First,
the President's tax plan would reduce economic growth for at least the
next 10 years. Over the 10-year period, our gross domestic product
would fall by a total of $1.1 trillion compared to where it would be
otherwise if all the tax provisions were extended.
This slower economic growth would directly translate into fewer jobs
created. In fact, the study projects that 238,000 fewer jobs would be
created next year and as many as 876,000 lost jobs in 2016. For the 10-
year period, the average would be 693,000 jobs each year that would not
be created had we extended the tax relief for everyone. This projection
alone should be enough to give anyone pause. In this critical time of
job shortage, do we want to purposefully choose a course that would
lead to even fewer jobs for Americans?
Other economic indicators would also turn negative compared to
extending the tax rates as they currently stand. Business investment,
personal savings, disposable income, and consumer spending would all be
lower. This is exactly the wrong direction we need as the U.S.
struggles to recover from this nasty recession.
My home State of Utah will not be spared, despite the fact that the
downturn has been less pronounced there than in many other States. The
Beehive State would lose an average of 6,200 jobs each year, and
household disposable income would drop by $2,200. For a relatively
small population State, this is nothing but bad news.
Another recent study highlights the effect on the economy of
increases to the capital gains tax rate as is called for under the
President's tax plan. This one was prepared by the respected economist
Allen Sinai. In this study, Dr. Sinai concludes that increasing the
capital gains tax rates to 20 percent from the current 15 percent, as
is called for in the President's plan, would cut the number of jobs
available by 231,000 per year. Again, this is exactly the wrong
direction for a Congress that is supposed to be focused on job
creation.
If we were really serious about creating jobs, we should be doing
just the opposite; that is, lowering the capital gains tax rate. The
Sinai study concludes that a reduction from the current 15-percent tax
rate on capital gains to a 5-percent rate would increase the number of
jobs by 711,000 per year. That is the kind of job growth we need right
now. By lowering the rate down to zero percent, Dr. Sinai says we could
turbocharge this rate of job growth to 1.3 million new jobs per year.
Of course, this capital gains tax reduction would not be free since
the Treasury would lose some revenue. The Sinai study indicates that
this loss would be about $23 billion per year after the effects of
stronger economic growth are taken into account. While this is not an
insignificant number, it works out to a cost of about $18,000 per job.
I call this a bargain, particularly when it is compared with the cost
per job from the so-called stimulus bill we passed last year. The
Congressional Budget Office projected last year that the cost of each
job saved or created from the stimulus bill would be between $414,000
and $1.3 million. And most or all of these jobs are temporary, not
permanent. Last year, the CBO also projected that the net increase in
the number of jobs from the stimulus bill by 2015 would be zero. In
other words, we would get no permanent job increase from this
gargantuan stimulus bill. I do not believe the contrast between the two
approaches to job creation and economic growth could be any more
striking.
Let me refer back to Senator Grassley.
Mr. GRASSLEY. Well, I say to Senator Hatch, the only thing I would
add to the good work you put out there is maybe to say a little bit
more about the estate tax; that is, if we do not do anything--as you
see from this chart, you can see the House passed death tax reform but
not the Senate. Obviously, we do not have a final bill. If we do not
get a final bill by the end of this year, instead of having no estate
tax like this year or a $3.5 million exemption like last year, we are
going to have only a million-dollar exemption and a 55-percent tax
rate. That is going to be catastrophic on small business. It is going
to be catastrophic in the rural areas. So I hope that emphasizes the
importance of getting something done on the estate tax ahead of time.
The only other thing I would add, because the Senator did such a good
job of saying what the economic consequences are, if we let the biggest
tax increase in the history of the country happen by sunset December
31, and
[[Page S8022]]
then that means you go back to the tax rates and tax policy of the year
2000, it is going to be very destructive on job creation for small
businesses and very destructive as far as bringing the certainty that
businesses, particularly small businesses, need if they are going to
hire people.
I had a news conference last month in my State, and I brought in some
small businesspeople. One of the small businesspeople testifying for me
said to the media of Iowa that they would like to hire five or six
people, but as long as there is all this uncertainty about what the tax
policy is, they are not going to move forward.
So what we have to do--and I say to Senator Hatch, I think you have
said it several times--and particularly for small business, we have to
bring certainty to the Tax Code. You cannot have this uncertainty of
what is going to happen after December 31, particularly when you are
certain you are going to have the biggest tax increase in the history
of the country without even a vote of Congress.
So I compliment Senator Hatch. I will not have anything more to say
on this subject until we get one of these pieces of legislation before
the Senate. But I thank the Senator very much for his leadership.
Mr. HATCH. Madam President, I thank my leader on the Finance
Committee on the Republican side. I appreciate all the work he has done
to try to keep this economy going, and we ought to listen to him.
Let me just say that the President and congressional Democrats and
Republicans agree that small business is the key to a job-based
recovery. As the President himself says, small business creates about
70 percent of all of our new jobs.
If we fail to prevent the marginal rate hikes, small businesses will
be especially hard hit. The Joint Committee on Taxation concluded that
half of the flowthrough small business income would be hit by the
reimposition of the top two brackets. Ironically, this is what all the
resistance from the other side is about. They insist on raising the top
marginal rates on small businesses by up to 17 to 24 percent--all of
this during a time when we ought to be going the other way and assuring
small businesses that they should take steps to grow without paying a
tax penalty.
There is a bipartisan group that recognizes the merits of preventing
these tax hikes on small businesses. But I think the President and the
Democratic leadership need to see the light. We are talking about
somewhere between 750,000 and 800,000 small businesses, where 70
percent of the jobs are created. If we do not handle this right, we are
going to have a pretty long time of an economic system that really does
not work in this country. So it is important that we get going here in
this lameduck session and resolve this issue.
There are people all over the map on this issue, but I think the
smartest thing to do would be to keep the tax relief the way it is. I
would move it at least 2 years and hopefully 3 years. I would like to
make it permanent for everybody in our society because we are a high-
taxed society under the current circumstances, but apparently we do not
have the votes to make it permanent. But we should have the votes to be
able to put it over at least until we can get out of the rough politics
of a lameduck session, and hopefully we will be able to resolve these
problems in the future in a way that both sides can feel good.
Having said all this, let me just say that I have really appreciated
serving under the distinguished Senator from Iowa. He is a hard-nosed,
practical leader in this body. Everybody knows he is totally honest and
totally effective in so many ways. He is a dear friend of mine. I want
him to know how much I appreciated serving next to him on the Finance
Committee. And we will be serving next to each other on the Judicially
Committee in this upcoming year. I look forward to seeing him, as a
nonlawyer, take over the controls from the Republican standpoint on the
Judiciary Committee because even though the distinguished Senator from
Iowa is a nonlawyer, he brings a practical balance to the Judiciary
Committee--and to the Finance Committee up until now--that is sorely
needed. He is one of the most respected people, by me, in this whole
body of very, very strong minds and people. So I am grateful to him. I
am grateful he is my friend, and I am grateful we can work together
side by side in both of these committees.
I thank the Senator for all the hard work he has done in the Finance
Committee all these years. I have watched him, I have sat beside him,
and I have seen the products he has done, and the Senator has worked in
good faith with both sides, and certainly with total honesty, and that
is a high accolade right there.
Madam President, these are important issues. I know that not just the
distinguished Senator from Iowa and myself feel deeply about them, but
I hope we can get our colleagues together on both sides, and the
President, who has indicated he is willing to compromise on this issue,
and get this put over. If we could do that, I think the President will
be better off, jobs will be better off, and in the end, our country--
which is the ultimate goal--there is no doubt in my mind would be much
better off.
With that, I thank my distinguished friend from North Dakota and
yield the floor.
The PRESIDING OFFICER. The Senator from North Dakota.
Taxes
Mr. DORGAN. Madam President, I decided some long while ago that I was
going to leave the Congress after serving 30 years. So at the end of
this year, I will conclude my work here in the U.S. Congress. But I was
thinking--sitting in the Chamber, listening to my two colleagues, for
whom I have great respect and profound disagreements with--I was
thinking about how interesting it is that people of good faith--and
they are two Senators of good faith--can feel very strongly about an
issue. I feel differently about some of the issues they just described,
and I sat here and resisted the urge to jump up every 5 or 10 minutes
and engage in that discussion.
It is not a difference of opinion about whether we would like the
American people to pay the lowest rate of taxes possible; it is,
rather, in my judgment, about the rearview mirror of history, when
historians gather 50 and 100 years from now and look back at this
moment and say: All right, where was America then?
Well, America had a $13 trillion debt, a $1.3 trillion deficit. We
are sending men and women off to war by the hundreds of thousands,
strapping on body armor in the morning, getting shot at in the
afternoon. About 20 million people are either unemployed or not working
up to their potential because they could not find the job that fits
them. There are record numbers of people on food stamps. So that is
where America was then. And what was the debate on the floor of the
Congress? How can you further cut revenue? How can you borrow money
from the Chinese in order to give those who make $1 million a year a
$100,000 a year tax cut? They are going to say: Are you kidding me?
That is what the discussion was? Wasn't there discussion about whether
it was wise to borrow $4 trillion more to extend tax cuts that came in
2001 because the President--then-President George W. Bush--felt we were
going to have surpluses forever? The first surplus was the year before
he took office, the last year of Bill Clinton, the first budget surplus
in 30 years. Then they said: OK, we predict we are going to have
surpluses for the next 10. President Bush said: Well, let's give them
back, with very big tax cuts, the bulk of which go to upper income
folks. I didn't vote for that. I thought: Why don't we be a little
conservative? What if something happens? Well, it did--a terrorist
attack, a recession, wars in Iraq and Afghanistan, debt as far as the
eye can see, soldiers at war--and the discussion is how to further cut
taxes, especially for upper income Americans. I am telling my
colleagues, it is going to confound and confuse some future economists,
how on Earth that could have been the major debate of the day in the
Congress at this moment.
There is no preordained destiny for this country that this country
will always be the dominant world power. That is not preordained. That
will happen if this country begins again to make good decisions and
tough decisions. People think times are tough now. They have been
tougher in this country. Our parents and grandparents and those who
came before them, those who homesteaded in sod huts, those
[[Page S8023]]
who traveled and populated this country out of wagon trains under the
Homestead Act to go and buy a place and build a farm and raise a
family, they had it tough, but they built communities and built a
country and they did the right things. They made tough decisions. It is
not a tough decision for us to say all 100 of us want tax cuts--well, I
would like it if nobody paid taxes, if nobody had to pay taxes. But who
is going to pay for the cost of things we do together, such as build
schools to educate kids, build roads to travel, pay for defense so we
can protect this country and on and on and on?
So I didn't come to talk about that, but I couldn't resist at least
the urge to say our requirement for this country is to look well ahead
and to ask: How do we retain the capability in this country so we will
still remain a world economic power? This country needs jobs. This
country needs the resurrection of a manufacturing base. We will not
long remain as a country, a world economic power, if we don't have
world-class manufacturing capability--making stuff--making things that
say ``Made in America.'' That ought to be the discussion: how to put
America back to work. There is no social program as important as a good
job that pays well, and too many Americans are out of work at this
point with a sick economy. The solution is not a tax cut for everybody.
That is akin to going to a quack doctor who has only one recipe. He has
a jug of thick brown liquid, and no matter what you have--the hiccups,
gout, liver trouble--he ladles out some thick brown liquid, and he
says: There it is. Take that and it will make you better.
We have people who have that vision here. Any urge, any itch, give
them a tax cut. How about the Federal budget deficit? How about
controlling spending? Yes, we have to control some spending and cut the
deficit. Let's cut some spending and let's ask people who should be
paying taxes and aren't now to pay their fair share of taxes. That is
what we ought to do.
All right. I have that at least a little bit out of my system today.
Energy
I came to talk about something else. I came to talk about unfinished
business toward the end of this year. There is still the ability to
reclaim some success in an area that I think is very important. It is
true, as I have just described, that jobs are very important in this
country. It is also true that the economy, fiscal policy, debt, and
deficits are very important and we need to get a hold on them and deal
with them and respond to them and fix this country's economy. But it is
also important that we need to address the subject of energy, and we
have tried; we have tried so hard. We can decide it doesn't matter
much. We can act as though it is irrelevant. But then tomorrow morning,
just for a moment, what if all the American people couldn't turn on or
off the alarm clock or turn on the light or turn on the hot water
heater to take a hot shower or turn on the toaster or the coffee maker?
What if they couldn't turn on the ignition to get to work? What if they
didn't have lights at work? We use energy 100 ways before we start work
and never, ever think about it. What if the switch didn't work? What if
the tank wasn't full?
Let me describe the danger because this is not irrelevant. It is not
an idle issue that this country could very well find itself belly side
up with an economy that couldn't work because we couldn't find the
energy we need. About 60 percent of the oil we need and use in this
country comes from other countries. I have described hundreds of times
on the floor that we stick little straws in the Earth and we suck out
oil. About 85 million barrels a day is sucked out of this planet. On
this little spot called the United States of America, we need to use
one-fourth of it. One-fourth of everything we suck out of this Earth
has to come to the U.S.A. We are prodigious users of oil. Much of that
oil comes from areas of the world that are very troubled. There are
some that don't like us very much. We send them over $1 billion, in
some cases $1.5 billion a day, every single day to buy their oil. My
colleagues know and I know that in some parts of the world enough money
spills from that oil barrel to help fund terrorism. We know it. If we
are that vulnerable, if our economy is in that much need of oil from
others, particularly troubled parts of the world, if tomorrow that
supply were interrupted or shut off and if that meant that this
country's economy would be belly up just like that, do we then decide
to do nothing about it or do we do something about it to address it in
the context of national security?
We have armies. We commit armies to trouble spots around the world to
protect our interests. Those armies can only operate if they have food
and fuel. They need both. Energy security is the same as national
security, and we have ignored for so long this issue of vulnerability
that exists with respect to our energy future.
I wish to talk about what we need to do, and I wish to talk about my
disappointment that we come now to November, almost December, 3 weeks
left perhaps in December, and last June a year ago we passed an energy
bill out of the Energy Committee that was bipartisan. It did a lot to
address our energy security. Yet we will likely end this year with
unfinished business, leaving behind that progress.
I wish to talk a little about the unbelievable progress in this
country. In 1830, it took 3 weeks to travel from Chicago to New York--3
weeks from Chicago to New York City. Twenty-five years later, you could
do it in 3 days: the transcontinental railroad. The transcontinental
railroad changed everything. Then the automobile, the automobile came
along, first with an electric engine and then the internal combustion
engine and then it needed a substantial amount of oil. Then our
government said: We understand that, so anybody who is going to look
for oil or gas, we want to give you a big, permanent tax benefit. It
was in the public interest to do that. So for a century we have said to
people: Go find oil and gas because we need it. We have incentivized
that drilling here in this country.
If we think of what has happened over this period I have described in
travel and technology, including the automobile, the light bulb--I
mean, think of the impact both those innovations have had in our lives;
pretty unbelievable.
One day on a Saturday I was in Grand Forks, ND, and I met with our
oldest resident, Mary Schumacher, 111 years old. She was spry--I
shouldn't say ``spry'' because she wasn't moving very well, but she had
a very keen mind and we were able to have a very good visit--111 years
old. She talked to me about her memories of when she was 6 and watched
the barn burn. She has a great memory. We talked about how things have
changed in 100 years of her lifetime. By the way, I stopped at that
nursing home to see Mary because I wasn't able to be there some months
before when I was invited to go to her birthday party, and I was
invited by her niece who showed up when I showed up that Saturday to
visit Mary. Her niece put on the birthday party and her niece was 103
years old, in even better shape than Mary, moving around and fussing
and making sure this visit with Mary was going well.
So we talked about the big changes in her life. I thought after I
left there: Here is a person who has now lived over a century and she
has seen everything. So let me think about her life.
In 1909--and she would have been nearly 10 years old then--in 1909,
President Howard Taft, 5 foot 11 inches tall and 300 pounds, decided to
get rid of the horse and buggy at the White House as the mode of
transportation. He was the first President to decide he was going to
buy an automobile. He bought a Baker electric car. President Taft might
not have fit into a Mini Cooper had there been one back then, but he
bought a Baker electric car, which goes to show batteries have a lot of
power. There has been a lot of discussion about that these days. But
isn't it interesting that an electric car for the White House in 1909--
that is 100 years ago--that electric car, now a century later, 100
years later, is the subject of legislation I have on the floor of the
Senate, along with Senator Lamar Alexander of Tennessee and Senator
Merkley of Oregon; the Electric Vehicle Deployment Act, 100 years
later. It is the new new thing. It is what we knew 100 years ago
worked.
I wish to talk a little about these things and all the changes we
have seen and why this issue is critical and why I feel so disappointed
if we don't, in the final 3 weeks, at least take a
[[Page S8024]]
portion of that which we know needs to be done and do it because there
is bipartisan agreement on a couple of these issues.
Let me mention them quickly. One, a renewable electricity standard so
we try to induce more renewable energy production in this country. That
is bipartisan. We have cosponsors in the Senate, including Senator
Brownback, who is a very strong supporter of that, a renewable electric
standard. The Electric Vehicle Deployment Act, which I have described,
Senator Alexander and I and others, bipartisan; and the natural gas
provision that Senator Reid and Senator Menendez have sponsored, that
is also bipartisan. Those are things we can do and should do at the end
of the year that is bipartisan that will advance our interests.
Why is it that energy is important? Well, one, the vulnerability to
our economy if we were to see the supply of energy that is necessary
shut off to this country at any point. So it is national security. No.
1, national security. No. 2, it is the issue of the domestic energy use
and the conversion as a part of this national and energy security to
conservation, No. 1, and the production of different kinds of energy,
No. 2, and then, finally, the issue of environmental benefits of some
of the changes that are necessary. We are coming to an intersection for
the first time when we debate energy in which energy production and
national security resulting from that comes to the same intersection as
the issue of climate change. So everything is going to change. The
question isn't whether, it is how. So I wish to talk just a bit about
some of the things we can do, it seems to me, to address these matters.
Let me talk about electricity. We produce a lot of electricity from
different sources, including coal and natural gas, and so on. Coal is
our most abundant resource. Fifty percent of the electricity in this
country comes from coal, but we have to use it differently because when
we burn coal, we throw carbon into the air and we understand we can't
continue to do that. So we need to find innovative ways to extract the
carbon from coal to continue to use that resource. We can and we will,
in my judgment. I chair the appropriations subcommittee that funds
carbon capture technology. There are all kinds of people around this
country doing innovative, wonderful, breathtaking things to find a way
to decarbonize coal. It is going to happen, if we decide to make the
investment in order to allow it to happen.
So electricity that comes from coal or natural gas and electric
plants, one of the problems we have dealing with the electricity is the
delivery from where it is produced to where it is needed. Back in the
early days of moving electricity around, we would build a plant to
produce the electricity and then a spiderweb network of transmission
wires in a circle largely around the planet and that became the service
area and they were not connected one to another. That is the way it
was. Then, finally, we decided we needed to move electricity from one
area to another, so we connected the grids, barely, but we never did go
back and build a modern transmission system. The result is we have a
system now that is not very reliable and can't effectively move power
from where it is produced to where it is needed, particularly in the
area of renewable power, where the wind blows and the Sun shines. Where
you can produce wind energy and solar energy, we can't at this point
have full effective capability to where you can move it to where you
can produce it and where you need it.
So we need to build an interstate transmission system. We can't do
that now. We need legislation to do that. We can't do it now as
demonstrated by the fact that in the last 9 years, we have built 11,000
miles of natural gas pipeline to move natural gas around this country,
and we have been able to build only 668 miles of interstate high-
voltage transmission lines. Why? Because we have all kinds of
jurisdictions that can say no and will say no, so you can't build
transmission. So the legislation we passed out of the Energy Committee
a year and a half ago now solved that problem, put us on the path to be
able to build an interstate transmission system, a modern, rich system.
We shouldn't lose that. We should proceed to get that opportunity in
that legislation.
Let me talk a bit about oil and gas. We are actually producing more
oil, for the first time--it has been a long while since we have been on
the decline in production. Part of it is from my State. The Bakken
formation is the largest formation of oil ever assessed in the history
of the lower 48 States. There are up to 4.3 billion barrels of
recoverable oil, according to the U.S. Geological Survey. With that,
plus the role shale plays in much of the country, we are beginning to
produce a bit more oil and gas at this point. That will stop quickly if
we can't continue what is called hydraulic fracturing. We have to deal
with that big problem. Most of us in this Senate, who come from areas
where we produce fossil energy, believe this has been done for 50 years
without a problem, and now it is under some siege. If we can't do
hydraulic fracturing, that promise of natural gas supplies and new oil
will evaporate. We need to continue--and we will--with the production
of oil and natural gas in this country.
I also am a supporter of the production of ethanol and the biofuels.
I think it makes sense to extend our energy supply, if we can do it
every single year, using biomass, corn-based ethanol. That makes a lot
of sense to me. The other issue I mentioned is coal. We are going to
have to find a way to use coal by extracting the carbon. I believe we
can do that. We need to make a much greater effort. We have tried to do
that in legislation in the last year or two.
Then we have nuclear energy. We will build some nuclear plants. We
are going to do that. I believe we ought to do everything, and do it
well, including wind, solar, geothermal. All of the renewables have
great promise. I understand that in this country, for a long while, it
was that real men dig and drill, and if you are somebody who supports
wind or solar energy, go smoke your pipe, read a few books, and have a
leather patch on your jacket. Real men dig and drill, and the rest of
you are a bunch of nuisances. That was the thought that existed for a
long time. It is not true anymore. We are going to dig and drill and do
it differently and protect this country's environment. We are also
going to incentivize and see the production of substantial amounts of
additional energy from the wind and the Sun. It makes sense to do that,
in order to expand our energy supply, protect our environment, produce
additional jobs. All of these issues I have talked about are very job
creating.
Yet, in many ways, the legislation we have worked on languishes
because we are told we don't have time. This is urgent. It is about the
vulnerability of our economy, about our national security, and it is
about jobs. We ought to get about the business of deciding this is a
priority.
If I can describe, in summary, here is how we address energy issues:
Produce more, yes, in every area. Produce more wind and solar energy,
incentivize it. Produce more oil--and we are doing that--and natural
gas. Expand ethanol capabilities and geothermal. We can do all of these
things. We are building nuclear plants now. We will see some new ones
come online. As a country, we ought to do what the French are doing
with respect to reprocessing and recycling and reduce that 100-percent
body of waste down to 5 percent. That is what they have been doing for
some while. We ought to do that--the renewables are so important--and
then move toward the electric vehicle deployment, so we can take
advantage of all of this. I mentioned to you that we produce about 85
million barrels a day of oil--about 21 million barrels here in the
United States, about one-fourth of the oil, and 77 percent of the oil
we use in this country is used in vehicles.
If you are going to reduce the use of oil and reduce our
vulnerability from too many exports of oil, then you have to do
something about transportation. That is why this electric vehicle issue
is so very important. It is the same with respect to natural gas
vehicles and long-haul trucking across a network in this country.
Electric vehicles are important. I have always been a fan, as well, of
hydrogen and fuel cells. I think it is probably just beyond electric
vehicles. Also, a fuel cell vehicle runs on electricity. It is
interesting to get in and drive a hydrogen fuel cell vehicle and find
that you can put your nose right down at the exhaust pipe, because it
is just water vapor. It doesn't have a sound. It puts water
[[Page S8025]]
vapor out the back and has twice the power at the wheel. I think that
is what our grandchildren and great-grandchildren are going to drive.
All of these issues are so important to this country's future.
Again, I end as I started, by saying how profoundly disappointing it
is that at the end of the session we understand how important this
issue is and how little has been able to be done. There is still time.
We could pass legislation called the Electric Vehicle Deployment Act.
We could do that. We could pass legislation calling for a renewable
energy standard, renewable electricity standard. This isn't rocket
science. These are not complex issues that people can't understand.
They understand them. Both political parties have strong supporters for
these things. As we turn to December, it seems to me that as we
contemplate probably 3 weeks in December on the floor of the Senate, we
ought to at least consider what portion of an energy system and energy
future can we embrace that came out of the Energy Committee in the
Senate. The Electric Vehicle Deployment Act is the legislation that
came out most recently and passed 19 to 3 by the Energy Committee--
strongly bipartisan. Why wouldn't we take that up? Why would we not
complete work on that and advance this country's future?
The other day I talked about the two dune-buggy-size vehicles on the
surface of Mars. I did it because I was talking to some people in North
Dakota, who said nothing is going right, everything is going to hell in
a hand basket, and nothing the government touches works for sure. They
were down. I told them the story about the two dune-buggy-size vehicles
we are driving on the surface of Mars. Five years ago, 1 week apart, we
ignited rockets, and they lifted off on the west coast of the United
States, and they were on their journey to Mars--1 week apart. The first
rocket transported its payload to the surface of Mars, which landed on
Mars with a thump and a bounce. It was in a shroud. When it stopped
bouncing and stayed still, the shroud opened, and out of the shroud
drove a dune-buggy-size vehicle on the surface of Mars. One week later,
the second payload was deposited on the surface of Mars. The shroud
bounced, opened, and the second vehicle drove off to the surface of
Mars. That was 5 years ago. One's name is Spirit and one is
Opportunity--two little vehicles, Spirit and Opportunity. They were
supposed to last 90 days on the surface of Mars, giving us information
about what we could learn about this strange planet.
Five years later, Spirit and Opportunity are still moving. It takes
us 9 minutes to communicate with Spirit or Opportunity, to send them a
message. At one point, Spirit fell dead asleep, and we communicated
with a satellite orbiting Mars and had the satellite communicate with
Spirit, and Spirit woke up. Spirit, they say, has an arm that was used
to sample the soil of Mars. That arm has become just like old men
become, rheumatoid and arthritic, and now hangs at a strange angle
because of that machine arthritis it has, apparently. Also a wheel
broke, among the five wheels, but it didn't fall off; it is hanging. As
Spirit traverses the surface of Mars, it drags one wheel that digs a
slightly deeper 2-inch hole in the surface of Mars, and the arthritic
arm reaches back and tells us what is happening on Mars.
How is all of this happening? First of all, it is unbelievable
engineering, right? Can you imagine the people who put this together,
to send dune buggies we could drive on the surface of Mars, and then
they last 5 years when they were supposed to last 90 days? How are they
powered? Do they have a Briggs and Stratton engine and somebody pulls
it and gets them started? No. They are powered by the Sun. They have
solar cells that allow us to have the power to drive dune buggies on
the surface of Mars. Is it beyond our reach to believe that if we can
power dune buggies with solar cells on Mars, we can fix a few of these
things here on planet Earth? Of course that is not beyond our reach. Of
course we can do that. In fact, the very names of these dune buggies--
Spirit and Opportunity--ought to be the names on these desks in this
Chamber: Spirit and Opportunity.
I started by saying there is no preordained destiny for this country
to do well. It always has done well. When I grew up, I knew we were the
biggest, the strongest, the best, and had the most. We could beat
anybody with one hand tied behind our back. That will not always be the
case. We will not remain a world economic power, unless we make smart
decisions. Our parents and grandparents did. Every parent in this
country has sacrificed for their kids. I don't know what is in second,
third, or fourth place to most people, but first place is their kids.
The question is whether it is on fiscal policy or energy policy. The
question is, what are we willing to do for our kids? What kind of
future do we want to leave our kids? Do we want to leave them deep in
debt or vulnerable on energy production, which may leave us in the dark
one day? I don't think so. This country can do much better than that.
Neither party has been much of a political bargain recently. Both
parties need to do better. I have strong feelings about which has
better ideas at the moment, and I will not be partisan on the floor,
except to say that this country deserves more. It is not just coming
out here talking about how can we cut taxes for everybody; it is how do
we tighten our belts and ask those who are supposed to pay taxes to pay
them, getting deficits under control, and getting people back on
payrolls, and incentivizing businesses to create jobs.
How do we address energy issues? It is time for this country to be
serious--this Congress--about doing things that are necessary, which
may require sacrifice from all of us. If young men and women are
willing to leave their homes to go to Afghanistan today for a year
because their country asks them to, we can do no less than make
sacrifices that are thoughtful on behalf of our future, so they won't
come home and find a bigger deficit and more unemployment, but instead
that we made the tough decisions to fix these things. We are going to
fix this because it is important for the country's future.
As I said when I started, this issue of energy is so very important
and is unfinished business. In my judgment, we ought not to include at
the end of this year an energy bill, or components of one, that I think
could be very important to this country's future, to jobs, and to our
national security.
I yield the floor and suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. HARKIN. Madam President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. HARKIN. Madam President, in a very short while here--literally,
in about 40 minutes--the time will be expired and we will be voting on
the motion to proceed to the Food Safety Modernization Act. The Food
Safety Modernization Act. One can wonder why did we have to go through
a cloture motion and a vote on that the other day. We got 74 votes on
it. But it looks as though now we are going to have to have another
vote on the motion to proceed after we have had 74 votes.
A lot of effort has gone into this bill by a lot of people--
Republicans and Democrats--and, Lord knows, our staff. This bill has
been germinating and being put together over the course of at least the
last 3 or 4 years anyway, and probably a little before that when we
started. I know Senator Durbin has been working on this for several
years, as have Senator Gregg, Senator Dodd, and others. So this has all
been put together over a period of several years. But I would say over
the last 4 years, diligent work has gone into this bill, and certainly
again in the last year.
It was 1 year ago, November 18--1 year ago today--that this bill was
reported out of our HELP Committee, which I chair. It was reported out
without one dissenting vote. It is a bill that is supported by so many
different groups and so many different people. Here is a list of the
people supporting this bill. We worked hard to get a broad base of
support from both industry and consumers. As I have said, this may be
one of the only bills I have seen around here that has the support not
only of the Food Marketing Institute and the Grocery Manufacturers
Institute and the Center for Science in the Public Interest. So we have
both consumer groups and the business groups
[[Page S8026]]
supporting this--the U.S. Chamber of Commerce and the U.S. Public
Interest Research Group. When have those two ever been together on a
bill? And the Snack Food Association and the Pew Charitable Trusts. I
mean, we have wide support for this.
The industry wants this. They want it because they know our food
safety laws have not been upgraded in seven decades--since 1938, before
I was born. Think about how our food has changed in our society and how
we produce it and how we process it and how we ship it, not to mention
the amount of foreign foods coming into this country. Consumers want it
because we know a lot of people are getting sick.
I will hasten to add that we do have one of the safest food supplies
in the world. But that is not good enough, because we know how many
people get ill every year. Thousands of people are contaminated by food
poisoning every year--E. coli, salmonella. I have met with families
here from Safe Tables Our Priority. I have met with families of kids
who are damaged for life because they happened to eat the wrong thing--
they ate some spinach or a tomato or fish, shellfish, or something such
as that. These kids are maimed for life.
We have worked very hard to put this bill together. As I said, 1 year
ago it came out of our committee without one dissenting vote. But there
were still some problems out there, and so we worked very hard since
last November to try to reach an agreement on this bill. And we have a
broad agreement. As I said, we had 74 votes on the floor of the Senate
the other day.
One of my colleagues has raised a lot of issues on this bill. My good
friend from Oklahoma, Senator Coburn, is on our committee, and he has
raised a lot of concerns about this bill. I have met with him several
times and we have had good discussions. I know he said some nice things
about me on the floor earlier, and I appreciate that, and I would repay
those in kind; that Senator Coburn is a very thoughtful person and he
focuses on these things. He reads these bills and he gets involved.
This is not something off the seat of his pants. He has focused on
this. Some of the suggestions he made I thought were valid. We looked
through them and we incorporated a lot of the suggestions made by my
friend from Oklahoma into this bill.
We were also willing to go to the consumers and say, look, this is
okay. None of us--not any one Senator around here--has infinite wisdom.
Only one person has infinite wisdom. No Senators have infinite wisdom.
I can't say I have ever written a bill in its entirety that got through
here without having anything changed, because we don't know everything.
So we rely upon one another in good faith to suggest changes, to point
out things maybe we didn't see due to our blinders. We help each other
put together bills that have broad support and broad consensus so that
we move ahead as a society. To me, that is the way I think we ought to
operate.
So when other people were making suggestions--and I didn't mean to
single out Senator Coburn, because others too had made suggestions--we
tried to work with them to incorporate certain provisions in the bill.
Senator Tester, for example, on our side had suggestions about
exempting certain small producers. That raised the consternation of
many on the consumer side. It also raised the consternation of many on
the business side. A lot of the bigger businesses said: Well, if we
have to do this, you can get just as sick from eating things from small
producers too. So we had to work through that. But we did work through
it. It took us several months but we worked through and we got an
agreement.
Quite frankly, we had good input from the Republican side--from
Senator Gregg, Senator Enzi, and Senator Burr. I mention those
individuals because they have been very integral to this process on our
committee. We have worked through that and we got an amendment that
satisfies the small producers and the consumers and the business
community and the large producers. Not easy. Not easy. But compromises
a lot of times aren't very easy. It is a compromise that we worked
through. We worked through Senator Tester's amendment too. That took a
long time.
We were not able to reach an agreement on Senator Feinstein's
amendment. We agreed not to incorporate it because we could not reach
an agreement on it--on the BPA amendment, even though it is very
important to her and very important to a lot of people.
We have tried to get something together that would have this broad
consensus and yet move us forward in making our food safer, and I
believe this bill does that. This bill does this in four ways:
It improves the prevention of food safety problems. That is key. For
many years, I served as chair or ranking member on the Agriculture
Committee--35 years, both here and in the House. Many years ago, we
came up with a program of prevention. Rather than solving the problem
later, the question was: How do we prevent pathogens from entering the
meat supply? We came up with this proposal of finding the access
points. Where are the points in the process where contaminants and
pathogens can come in? Let us have the industry come up with plans on
how to prevent that on their own. That has worked. Does it work 100
percent every single time? No. But nothing is ever perfect.
I would hasten to add that even if we pass this bill, will it prevent
every single foodborne illness forever and ever? Probably not. Probably
not. But it is going to be a lot better than what we have right now, a
lot better, because we are going to look at prevention--preventing the
pathogens from entrance in the first place. So that is one way we do
it.
Secondly, it improves the response to detection of foodborne illness
outbreaks when they do occur. In other words, we will be able to detect
it earlier and respond earlier than we have been able to do in the
past.
It enhances our Nation's food defense capabilities. Every year, 76
million Americans get sick from foodborne illnesses--76 million. So the
stakes are too high not to act.
These are the critical ways in which we have moved the ball forward.
Again, I know my friend from Oklahoma has said to me many times that it
will not solve all your problems. I understand that. It is not perfect.
But there is an old saying: Don't let the perfect be the enemy of the
good. This is a good bill. It is going to help keep our people from
getting sick. Everyone? No. I would never stand here and say this is
going to solve every single foodborne illness problem in America. But
it is sure going to do a lot more than we have been doing.
Again, I want to make it clear that if anyone says we are trampling
on the rights of the minority, I ask you to consider all we have done.
We have a bipartisan team in place, we have modified the bill dozens of
times to get the right balance, we have all made tremendous
compromises--Democrats and Republicans, consumers and business. As I
said, we agreed to compromises just lately. The mandatory inspection
schedule, which is so important to the public health community, has
been reduced tenfold--tenfold--since that bill was reported out of our
committee unanimously 1 year ago. We accepted language, as I said,
which exempted the small facilities from these new requirements--the
Tester amendment. We agreed to changes in the section on traceback,
which limits the application of the new rule to farms and restaurants.
There is no registration fee to help pay for the bill. The routine
access to records the FDA wanted, we don't do that either.
That is a short list. I can go on and on. I think one of my friends
on the other side said we have bent over backward, and we have. We
wanted to reach a point where we could move ahead with the bill, even
offering to let some amendments be offered and we would vote on those
amendments. But what has happened now, I understand, is that the
Senator from Oklahoma, my friend, has now said he wanted to offer an
amendment dealing with earmarks.
Look, earmarks is an issue. It is an issue that the next Congress, I
would say--probably the next Congress--is going to have to address. But
it should be done in the spirit of debate. It should be done in the
spirit so committees that have relevant jurisdiction can look at this,
make recommendations. We should not do it in the heat of passion, right
now. We just came off of a very heated election. There have been a lot
of changes made. I understand that.
[[Page S8027]]
We live with that. That is fine. But now is not the time to start
throwing up red-hot issues that were in the campaign. Let's let things
cool down a little bit and approach an issue such as earmarks
thoughtfully, with due diligence and with due debate.
This bill that is going to protect our people from getting sick and
our kids from being injured for lifetimes because they eat contaminated
peanut butter--this is not the bill to deal with something dealing with
earmarks. I hope my friend from Oklahoma will relent. There will be
plenty of time and plenty of opportunities when we come back in January
with a new Congress, I say to my colleague from Oklahoma, to bring up
the matter of earmarks and have it debated fully and have some kind of
resolution by both the Senate and the House on that issue--but not
right now. This is not the time to do it, not in the heat of coming off
the campaign.
Let's keep our eye on the ball. This is a food safety bill. We have
come so close. We have an agreement from the House that what we pass
here, the bill we have put together, that we reached all these
compromises on--we have an agreement from the House, if we pass it and
we do get significant--we get bipartisan support, that the House would
take it and pass it and send it right to the President. What more could
you ask for than that? We get to decide what the President actually
signs into law.
Without going into every little thing we have done here, let me just
mention a few.
Senator Coburn was concerned about the authorization level, so we
offered in good faith to reduce it by 50 percent. That is kind of a
compromise--we just reduced the authorization by 50 percent on the
grants. We offered to modify the sections on performance standards and
surveillance. It is completely done. We completely struck section 510.
We called for increasing the hiring of FDA staff. In our bill, we
called for increasing staff to conduct certain inspections. My friend
objected to that. In the spirit of compromise, we struck it. We said
no, we are not going to call for increasing hiring of field staff. Mr.
Coburn had some concerns--rightfully so, by the way--about improving
coordination between FDA and USDA, so we offered to add his language
that would force them to get together and not duplicate efforts, and on
the customs side, too, so we would eliminate any kind of duplication of
inspections. We put that in the bill.
We offered to do all this and to put it in the bill, and we did, and
that will be in our amendment that we offer. We will in good faith put
those things in our bill. But then I am told that now we are probably
going to have to file cloture, fill the tree, and do all that stuff
which I was hoping we would not have to do. That is not the way to do
business here. I don't like doing it that way. That is why we worked so
hard to try to reach these agreements. But I guess we are going to be
forced to do that. I hope that is not so.
I also heard that maybe someone might want to read the bill. That is
4 hours of reading the bill. That bill has been out here for a year. If
anybody wanted to read it, they could have read it by now. But that is
just another delaying tactic we really do not need.
Again, on this issue of saying we cannot vote on this bill unless we
will vote on earmarks, I say earmarks is an important issue. I am happy
to have the debate and to have a vote on that but not now. This is a
food safety bill. We have it ready to go. We have all our compromises
in place. This is not the time and this is not the bill on which to
debate the whole issue of earmarks.
You might say, why are we so willing to compromise, why am I so
passionate on this bill? Because people are dying. We have Thanksgiving
coming up. People will be gathered around with their families--except
for all those people in homeless shelters. Mr. President, 950,000
children in America who go to elementary, middle, and high school will
not have a home to go to this Thanksgiving because they are living in
homeless shelters. Think about that. They are living in cars and
homeless shelters. They are being shunted around--950,000. Am I going
to stand here and say that if we pass this bill and get it to the
President, that is going to keep any one of them from getting sick on
what they might eat on Thanksgiving Day? I am not here to say that. But
what this bill will do is send a strong signal that we are going to
take the steps necessary in the coming months and years to upgrade our
food safety system so that the chance, the likelihood of them ever
getting sick from eating contaminated food is going to be greatly
decreased. Surely we can at least send that hopeful message out to our
families before Thanksgiving. Surely we could do that and not get
bollixed up around here in politics and political debate.
I know of no politics on this bill. I know of no politics. I mean
Democrat, Republican, left, right, liberal, conservative--I don't know
of anything like that. There is not. I do know that this issue of
earmarks, regardless of the substantive issue, is a political issue
too. They may have substantive reasons, but there is also a lot of
politics hanging around that.
Let's take the bill that has no politics, knows neither left nor
right, conservative, liberal, Democrat, or Republican. It has nothing
to do with earmarks or what we ever do with earmarks or anything else.
It has to do with the safety and welfare of our American families, of
our kids. I am just asking people to be reasonable.
There is a time and place for political debate, even here on the
Senate floor. We may say it does not happen, but we know it does. There
is a time and place for that. That will happen--not now, not on this
bill. We have come too far. We are too close. We have too many
compromises that we made that are so widely supported. I am afraid that
if we lose this, all the good work that has gone in in the last year,
the last 2 years, the last 4 years putting this together, it is going
to be very hard to put it back together again. So people will continue
to roll the dice when they buy food. Maybe it is safe and maybe it is
not.
We will continue to see more things happen like what happened to
Kayla Boner, Monroe, IA, age 14. On October 22, 2007, she turned 14 and
passed her learner's permit. The next day, she stayed home. She had a
foodborne illness due to E. coli contamination. She was admitted to the
Paella, IA, Community Hospital. Her symptoms worsened. She didn't
respond to antibiotics, and within a week her kidneys began to fail.
Kayla was transferred to Blank Children's Hospital for dialysis, but
her condition continued to deteriorate. She suffered a seizure and
began to have heart problems. A few days later, Kayla's brain activity
stopped, and her parents made the painful decision to take their
beautiful daughter off life support.
For Kyle Allgood--spinach. His family is going to have an empty seat
at their Thanksgiving table this year. Kyle, a playful 2-year-old, fell
ill after eating bagged spinach contaminated by a deadly strain of E.
coli. They thought it was flu. He began to cry from excruciating
abdominal pain. He was flown all the way to a Salt Lake City hospital.
His kidneys failed, he had a heart attack, and he died--from eating
bagged spinach.
Stephanie Bartilucci's family is also going to have an empty seat at
their Thanksgiving table this year--killed by listeria, eating lettuce.
She was 30 weeks pregnant, Stephanie was. She felt that something was
wrong. When she went for an ultrasound, it showed that the baby was not
moving. She had contractions, and eventually her heart began to beat
dangerously fast and she had to undergo an emergency C-section. When
she awoke, she found that her baby boy had bleeding in his brain and
couldn't breathe on his own. He was intubated and brain dead. Stephanie
soon discovered she had been suffering from a bacterial infection from
eating contaminated lettuce. The bacteria was so deadly that she became
septic and almost lost her own life. Her newborn baby, Michael, died in
her arms that night.
There are also families who have had loved ones survive foodborne
illnesses, but their lives will never be the same, such as Rylee
Gustafson and her family. On Rylee's ninth birthday, she began to
complain of stomach pain after eating E. coli-contaminated spinach.
Within 72 hours, she had been admitted to UCSF Children's Hospital. Her
kidneys began to fail, and dialysis treatments were started. In
addition to kidney failure, she experienced hallucinations and
temporary loss of vision,
[[Page S8028]]
developed high blood pressure and diabetes, and had fluid buildup in
her lungs and around her heart. On the 10th day of hospitalization,
Rylee's condition had deteriorated to the point where the doctors
believed it necessary to prepare her family that she might not pull
through. Rylee spent 35 days in the hospital and will have to endure
the memories of that traumatic time for the rest of her life. The long-
term effects of her illness are currently unknown.
How many Americans will have to die, how many of these kids will
become sick before we fulfill our responsibility to modernize our
woefully outdated food safety system?
How many families will have to endure a tragic loss before we pass
this legislation? One more tragedy is one too many. I urge my
colleagues, as they think about their holiday plans and their
preparations, to take a moment to think about families who have had
their holidays disrupted by contaminated food. Five thousand people die
every year in this country because of contaminated food. Among them are
many children. As they spend the day with their loved ones preparing
Thanksgiving banquets, the last thing people want is to be jeopardized
by the threat of food contamination. Yet many families are haunted by
this. It is unacceptable. It is past time we do something. We have come
too far. We have reached compromises. We have the support of many
sectors of society.
Again, if we pass this bill, will it ensure that no kid like Rylee
will ever get sick again? I can't make that promise. Or that no one
will ever die? I can't make that promise. But I can promise this: With
the passage of this bill, putting it into law, the chances there will
be another Rylee Gustafson will be diminished greatly.
Let's not get this caught up in politics. Let's get the politics out
of this. Let's vote on the bill. Let's get it through. Let's go home.
Let Senators go home for Thanksgiving grateful that we have done a good
thing, that we have done something good for our country, and that we
didn't let it get all boxed up in politics. Isn't that the least we can
do for the country on this Thanksgiving week?
I yield the floor.
Mr. SPECTER. Madam President, I have sought recognition to speak in
favor of my amendment No. 4693 to the FDA Food Safety Modernization Act
S.510 to permit emergency scheduling of designer anabolic steroids.
Anabolic steroids--masquerading as body building dietary
supplements--are sold to millions of Americans in shopping malls and
over the Internet even though these products put at grave risk the
health and safety of Americans who use them. The harm from these
steroid-tainted supplements is real. In its July 28, 2009, public
health advisory, the FDA described the health risk of these types of
products to include serious liver injury, stroke, kidney failure and
pulmonary embolism. The FDA also warned:
[A]anabolic steroids may cause other serious long-term
adverse health consequences in men, women, and children.
These include shrinkage of the testes and male infertility,
masculinization of women, breast enlargement in males, short
stature in children, adverse effects on blood lipid levels,
and increased risk of heart attack and stroke.
New anabolic steroids--often called designer steroids--are coming on
the market every day, and FDA and DEA are unable to keep pace and
effectively stop these products from reaching consumers.
At the Senate Judiciary Subcommittee on Crime and Drugs hearing I
chaired on September 29, 2009, representatives from FDA and DEA, as
well as the U.S. Anti-Doping Agency, testified that there is a cat and
mouse game going on between unscrupulous supplement makers and law
enforcement--with the bad actors engineering more and more new anabolic
steroids by taking the known chemical formulas of anabolic steroids
listed as controlled substances in schedule III and then changing the
chemical composition just slightly, perhaps by a molecule or two. These
products are rapidly put on the market--in stores and over the
Internet--without testing and proving the safety and efficacy of these
new products. There is no prenotification to, or premarket approval by,
Federal agencies occurring here. These bad actors are able to sell and
make millions in profits from their designer steroids because while it
takes them only weeks to design a new steroid by tweaking a formula for
a banned anabolic steroid, it takes literally years for DEA to have the
new anabolic steroid classified as a controlled substance so DEA can
police it.
The FDA witness at the hearing, Mike Levy, Director of the Division
of New Drugs and Labeling Compliance, acknowledged that this is a
``challenging area'' for FDA. He testified that for FDA it is
``difficult to find the violative products and difficult to act on
these problems.'' The DEA witness, Joseph T. Rannazzisi, Deputy
Assistant Administrator for DEA, was even blunter. When I questioned
him at the hearing, Mr. Rannazzisi admitted that ``at the present time
I don't think we are being effective at controlling these drugs.'' He
described the process as ``extremely frustrating'' because ``by the
time we get something to the point where it will be administratively
scheduled [as a controlled substance], there's two to three [new]
substances out there.''
The failure of enforcement is caused by the complexity of the
regulations, statutes and science. Either the Food Drug and Cosmetic
Act, which provides jurisdiction for FDA, or the Controlled Substances
Act, which provides jurisdiction for DEA, or both, can be applicable
depending on the ingredients of the substance. Under a 1994 amendment
to the Food Drug and Cosmetic Act, called the Dietary Supplement Health
and Education Act, DSHEA, dietary supplements, unlike new drug
applications, are not closely scrutinized and do not require premarket
approval by the FDA before the products can be sold. Premarket
notification for dietary supplements is required only if the product
contains new dietary ingredients, meaning products that were not on the
U.S. market before DSHEA passed in 1994.
If the FDA determines that a dietary supplement is a steroid, it has
several enforcement measures available to use. FDA may treat the
product as an unapproved new drug or as an adulterated dietary
supplement under the Food Drug and Cosmetic Act. Misdemeanor violations
of the Food Drug and Cosmetic Act may apply, unless there is evidence
of intent to defraud or mislead, a requirement for a felony charge.
However, given the large number of dietary supplement products on the
market, it is far beyond the manpower of the FDA to inspect every
product to find, and take action against, those that violate the law--
as the FDA itself has acknowledged.
The better enforcement route is a criminal prosecution under the
Controlled Substances Act. However, the process to classify a new
anabolic steroid as a controlled substance under schedule III is
difficult, costly and time consuming, requiring years to complete.
Current law requires that to classify a substance as an anabolic
steroid, DEA must demonstrate that the substance is both chemically and
pharmacologically related to testosterone. The chemical analysis is the
more straightforward procedure, as it requires the agency to conduct an
analysis to determine the chemical structure of the new substance to
see if it is related to testosterone. The pharmacological analysis,
which must be outsourced, is more costly, difficult, and can take years
to complete. It requires both in vitro and in vivo analyses--the latter
is an animal study. DEA must then perform a comprehensive review of
existing peer-reviewed literature.
Even after DEA has completed the multiyear scientific evaluation
process, the agency must embark on a lengthy regulatory review and
public-comment process, which typically delays by another year or two
the time it takes to bring a newly emerged anabolic steroid under
control. As part of this latter process, DEA must conduct interagency
reviews, which means sending the studies and reports to the Department
of Justice, DOJ, the Office of Management and Budget, OMB, and the
Department of Health and Human Services, HHS--provide public
notification of the proposed rule, allow for a period of public
comment, review and comment on all public comments, write a final rule
explaining why the agency agreed or did not agree with the public
comments, send the final rule and agency comments back to DOJ,
[[Page S8029]]
OMB and HHS, and then publish the final rule, all in accordance with
the Administrative Procedures Act. To date, under these cumbersome
procedures, DEA has only been able to classify three new anabolic
steroids as controlled substances and that process--completed only
after the September 29, 2010, Senate Judiciary subcommittee hearing--
took more than 5 years to finish.
It is clear that the current complex and cumbersome regulatory system
has failed to protect consumers from underground chemists who easily
and rapidly produce designer anabolic steroids by slightly changing the
chemical composition of the anabolic steroids already included on
schedule III as controlled substances. The story of Jareem Gunter, a
young college athlete who testified at the hearing, illustrates the
system's failure. To improve his athletic performance 4 years ago,
Jareem purchased in a nutrition store a dietary supplement called
Superdrol, a product he researched extensively on the Internet and
believed was safe. Unfortunately it was not. Superdrol contained an
anabolic steroid which to this day is still not included in the list of
controlled substances. After using Superdrol for just several weeks,
Jareem came close to dying because this product--which he thought would
make him stronger and healthier--seriously and permanently injured his
liver. He spent 4 weeks in the hospital and has never been able to
return to complete his college education.
To close the loopholes in the present laws that allow the creation
and easy distribution of deadly new anabolic steroids masquerading as
dietary supplements, I filed amendment No. 4693 to the FDA Food Safety
Modernization Act S.510 to permit emergency scheduling of designer
anabolic steroids. The amendment simplifies the definition of anabolic
steroid to more effectively target designer anabolic steroids, and
permits the Attorney General to issue faster temporary and permanent
orders adding recently emerged anabolic steroids to the list of
anabolic steroids in schedule III of the Controlled Substances Act.
Under the amendment, if a substance is not listed in schedule III of
the Controlled Substances Act but has a chemical structure
substantially similar to one of the already listed and banned anabolic
steroids, the new substance will be considered to be an anabolic
steroid if it was intended to affect the structure or function of the
body like the banned anabolic steroids do. In other words, DEA will not
have to perform the complex and time consuming pharmacological analysis
to determine how the substance will affect the structure and function
of the body, as long as the agency can demonstrate that the new steroid
was created or manufactured for the purpose of promoting muscle growth
or causing the same pharmacological effects as testosterone.
Utilizing the same criteria, the amendment permits the Attorney
General to issue a permanent order adding such substances to the list
of anabolic steroids in schedule III of the Controlled Substances Act.
The amendment also includes new criminal and civil penalties for
falsely labeling substances that are actually anabolic steroids. The
penalties arise where a supplement maker fails to truthfully indicate
on the label--using internationally accepted and understandable
terminology--that the product contains an anabolic steroid. These
penalties are intended to be substantial enough to take away the
financial incentive of unscrupulous manufacturers, distributors, and
retailers who might otherwise be willing to package these products in a
way that hides the true contents from law enforcement and consumers.
Finally, the amendment adds to schedule III 33 new anabolic steroids
that have emerged in the marketplace in the 6 years since Congress
passed the Anabolic Steroid Control Act of 2004. It also instructs the
U.S. Sentencing Commission to review and revise the Federal sentencing
guidelines to ensure that where an anabolic steroid product is
illegally manufactured or distributed, and that product is in a tablet,
capsule, liquid or other form that makes it difficult to determine the
actual amount of anabolic steroid in the product, the sentence will be
based on the total weight of the product.
Amendment No. 4693 simplifies and expedites the process for
scheduling anabolic steroids as controlled substances. By making this
simple procedural change, we can protect the health and lives of
countless Americans and provide an effective enforcement mechanism to
hold accountable those individuals and their companies which
purposefully exploit the current regulatory system for their selfish
gain. I urge my colleagues to pass amendment No. 4693 to the FDA Food
Safety Modernization Act S. 510.
Mr. CONRAD. Madam President, section 311(c) of S. Con. Res. 13, the
2010 budget resolution, permits the chairman of the Senate Budget
Committee to adjust the allocations of a committee or committees,
aggregates, and other appropriate levels and limits in the resolution
for legislation that would improve the safety of the food supply in the
United States. This adjustment to S. Con. Res. 13 is contingent on the
legislation not increasing the deficit over either the period of the
total of fiscal years 2009 through 2014 or the period of the total of
fiscal years 2009 through 2019.
I find that S. 510, a bill to amend the Federal Food, Drug, and
Cosmetic Act with respect to the safety of the food supply, fulfills
the conditions of the deficit-neutral reserve fund for food safety.
Therefore, pursuant to section 311(c), I am adjusting the aggregates in
the 2010 budget resolution, as well as the allocation to the Senate
Health, Labor, Education, and Pensions Committee.
I ask unanimous consent that the following revisions to S. Con. Res.
13 be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2010--S. CON. RES.
13; FURTHER REVISIONS TO THE CONFERENCE AGREEMENT PURSUANT TO SECTION
311(c) DEFICIT-NEUTRAL RESERVE FUND FOR FOOD SAFETY
[In billions of dollars]
Section 101
(1)(A) Federal Revenues:
FY 2009.....................................................1,532.579
FY 2010.....................................................1,612.278
FY 2011.....................................................1,939.131
FY 2012.....................................................2,142.415
FY 2013.....................................................2,325.527
FY 2014.....................................................2,575.718
(1)(B) Change in Federal Revenues:
FY 2009.........................................................0.008
FY 2010.......................................................-53.708
FY 2011......................................................-149.500
FY 2012......................................................-217.978
FY 2013......................................................-189.810
FY 2014.......................................................-57.940
(2) New Budget Authority:
FY 2009.....................................................3,675.736
FY 2010.....................................................2,907.837
FY 2011.....................................................2,858.866
FY 2012.....................................................2,831.668
FY 2013.....................................................2,991.128
FY 2014.....................................................3,204.977
(3) Budget Outlays:
FY 2009.....................................................3,358.952
FY 2010.....................................................3,015.541
FY 2011.....................................................2,976.251
FY 2012.....................................................2,878.305
FY 2013.....................................................2,992.352
FY 2014.....................................................3,181.417
CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2010--S. CON. RES.
13; FURTHER REVISIONS TO THE CONFERENCE AGREEMENT PURSUANT TO SECTION
311(c) DEFICIT-NEUTRAL RESERVE FUND FOR FOOD SAFETY
[In millions of dollars]
Current Allocation to Senate Health, Education, Labor, and Pensions
Committee:
FY 2009 Budget Authority......................................-22,612
FY 2009 Outlays...............................................-19,258
FY 2010 Budget Authority........................................4,159
FY 2010 Outlays.................................................1,295
FY 2010-2014 Budget Authority..................................43,782
FY 2010-2014 Outlays...........................................43,026
Adjustments:*
FY 2009 Budget Authority............................................0
FY 2009 Outlays.....................................................0
FY 2010 Budget Authority............................................0
FY 2010 Outlays.....................................................0
FY 2010-2014 Budget Authority.......................................0
FY 2010-2014 Outlays................................................0
Revised Allocation to Senate Health, Education, Labor, and Pensions
Committee:*
FY 2009 Budget Authority......................................-22,612
FY 2009 Outlays...............................................-19,258
FY 2010 Budget Authority........................................4,159
FY 2010 Outlays.................................................1,295
FY 2010-2014 Budget Authority..................................43,782
FY 2010-2014 Outlays...........................................43,026
**According to CBO, the amendment in a nature of a substitute would
increase revenues from civil and criminal penalties and related
spending by less than $500,000. The reserve fund adjustment
accommodates this negligible increase in revenues and spending.
[[Page S8030]]
Ms. MIKULSKI. Madam President, I rise to address one of the most
important issues facing our Nation, the safety of America's food
supply. I support the FDA Food Safety Modernization Act that will help
reduce the rash of contaminated foods that have recently entered our
food supply. Every person should have confidence that their food is fit
to eat.
While the FDA has always been the gold standard in maintaining the
safety and efficacy of our food and drugs, the salmonella outbreak in
eggs over the summer made it painfully clear that we need to do more--
and that the law needs updating. The outbreak resulted in as many as
79,000 illnesses, 30 deaths, and the recall of roughly one half billion
eggs. Beyond that, the Centers for Disease Control informs us that 76
million people get sick, and 5,000 die, each year from foodborne
illnesses. Just last week the FDA warned Marylanders about a potential
outbreak of E. coli in apple cider sold in the State.
I applaud the quick action by the FDA in responding to these food
outbreaks, but we can do better. FDA Commissioner Margaret Hamburg has
told us that she needs more resources and more authority to oversee the
way our food is produced and monitored. That is why, as a committed
advocate of food safety nationwide, I support the FDA Food Safety
Modernization Act.
This bipartisan bill would give the FDA authority to order mandatory
food recalls for unsafe foods if companies don't do it themselves. It
sets FDA safety standards for produce, creates stronger FDA regulations
for sanitary food transportation from our producers to our grocery
stores, and establishes FDA pilot projects to better track where fruits
and vegetables come from.
This bill also emphasizes prevention and taking action to prevent
food outbreaks from occurring in the first place. It ensures that
facilities have food safety plans in place to identify, evaluate, and
address food safety hazards. With the growing amount of food that is
imported globally, this bill ensures imported food meets the same
safety standards as domestic food by requiring importers to verify the
safety of foreign suppliers and imported food. This bill would grant
the FDA the authority it needs to protect the health of our families.
It is time we get serious about the safety of our Nation's food. The
health of Americans is not something to take a chance with. It is
important that we make food safety a top priority. We must pass the FDA
Food Safety Modernization Act and empower the FDA to set safety
standards and hold food producers accountable.
Mr. DURBIN. Madam President, I would like to say a few words on this
legislation because it is something I have worked on for many years. I
can't thank Senator Harkin and Senator Enzi and others enough for their
hard work in bringing this issue to this moment in time. Several things
have been stated during the course of the debate which I would like to
address. Most of them were stated by my friend from Oklahoma, Senator
Coburn. At this point he is the only Senator holding up this bill from
consideration, one Senator.
At this point 89 percent of the American people support food safety
reform to make our food safer and to have more inspections of imported
food so our children and family members don't get sick; 89 percent
support it. The bill has substantial bipartisan support. Twenty
Republican and Democratic Senators are committed to this bill. Seventy-
four Senators, almost three-fourths of the Senate, voted to move
forward on this bill, a strong bipartisan roll call. The House passed a
companion bill with the support of 54 Republicans. We know it is a
bipartisan issue. This should not be a partisan fight.
Senator Coburn objected to giving the Federal Government the
authority to recall a dangerous food product. Most people believe if
there is a dangerous food product in stores across America, the Federal
Government sends out a notice, and it is brought in. That is not the
case. The Federal Government does not have the legal authority to
recall any food products. All it can do is publicize that the products
are dangerous and hope that grocers and retailers and manufacturers
will take them off the shelves. That is it. That is the existing state
of law. We give the government that authority.
Senator Coburn said it is not necessary. He claims not one company
has ever refused to recall contaminated food. He is just wrong. There
are many instances of companies that just flatout refuse to recall
their food or delay a recall, and many people get sick and die. That is
a fact.
Last year Westco Fruit and Nut Company flatout refused FDA's request
to recall contaminated peanut products. A few years ago, GAO released a
report entitled ``Actions Needed by FDA to Ensure Companies Carry Out
Recalls'' which highlighted six other companies that flatout refused to
recall contaminated food when they were told it was dangerous. Even the
Bush administration realized how important this was and formally
requested mandatory recall authority in the 2007 food protection plan.
Senator Coburn has his facts wrong when he claims the FDA does not
need the mandatory recall authority.
Senator Coburn also claims our bill does not address the real problem
in our Nation's food safety system.
Once again, he is mistaken. The National Academy of Sciences
disagrees. In June, the National Academy released a report entitled
``Enhancing Food Safety, the Role of the FDA.'' The report contained
seven critical recommendations for improving food safety. This is not a
partisan group. Every single one of the key recommendations from that
group is addressed in our bill, including increasing inspections and
making them risk related, giving FDA mandatory recall authority,
improving registration of food facilities, and giving the FDA the
authority to ban contaminated imports. Our bill fills all of the
critical gaps in the FDA's food safety authority that have been
identified by the National Academy of Sciences.
For Senator Coburn to say it is unnecessary is to ignore science and
fact and, I guess, the reality that if we are going to make food safer,
we need to do our job better. That is why all the key consumer
protection and public health groups support this bill--all of them.
He thinks this bill is not good for business. He says it hurts their
profits and their productivity. He is just wrong. The number and
diversity of the industry and business groups that support the bill
speaks for itself. Listen to the groups that support the food safety
bill and tell me they are acting against their best business interests:
the Grocery Manufacturers Association, the U.S. Chamber of Commerce,
the American Beverage Association, the American Frozen Food Institute,
the Food Marketing Institute, the International Dairy Foods
Association, National Restaurant Association, Snack Food Association,
National Coffee Association, National Milk Producers Federation,
National Confectioners Association, Organic Trade Association, the
American Feed Industry Association.
If Senator Coburn is right, every one of these associations'
leadership should be removed tomorrow because, under his analysis, they
have decided to support a bill that hurts their business. They know
better. Safe food is good business. Think about what it costs these
companies when they have to recall a product, when it damages their
reputation and all the things they will go through to try to clean up
their act.
Senator Coburn says there are 10 or 20 deaths per year caused by
foodborne illness. The Senator is just wrong. He uses this number to
support his assertion that there are not enough victims to justify a
bill. Here are the facts. According to the Center for Disease Control,
there are not 10 or 20 deaths per year, there are 5,000 deaths in
America every single year caused by foodborne illness--5,000. Senator
Reid can tell some stories about his State which was hit particularly
hard by food illness.
Moreover, every year 76 million Americans contract a foodborne
illness; 325,000 are hospitalized. A few weeks ago I told you about one
of the victims, a young man named Richard Chatfield from Owasso, OK. At
age 15, he was on a camping trip and was diagnosed with E. coli. For 8
years, he suffered pain, migraine headaches, dry heaves, and high blood
pressure, and after going on dialysis, kidney failure. When we were
last debating this bill, Richard was lying in the hospital and his
mother Christine had rushed to be by his side. That hospital turned out
to be the scene of Richard's death.
[[Page S8031]]
On Monday, October 18, while we were still holding up the food safety
bill, Richard Chatfield died from foodborne illness. The complications
from an E. coli infection he got 8 years ago proved to be too much for
him.
When I hear Senator Coburn on the Senate floor saying there are not
enough people dying for us to go to work here, he is just plain wrong.
Richard Chatfield of his State is dramatic evidence of that fact.
As we stand here today, one Senator is blocking a bill to protect
millions of Americans. Moms and dads across America making dinner
tonight, if they happen to have missed the channel they were looking
for and ended up on C-SPAN and are following this debate, we are
talking about an issue that goes right into their refrigerator and
stove and kitchen as to whether the food they are putting on the table
is safe for their kids. One Senator from Oklahoma says it is not a big
enough problem. It is. It is a problem that is a life-and-death issue.
I thank the Senator from Iowa for his leadership on this issue and
Senator Reid for bringing this up. If we save one life, it is worth the
effort.
I yield the floor.
The PRESIDING OFFICER. The Senator from Iowa.
Mr. HARKIN. Madam President, I thank my friend and colleague from
Illinois, Senator Durbin. He has been the leader on this issue for
several years. We have been working on this bill for a number of years.
It is Senator Durbin who has led the charge on this going back
literally several years. We have come so close. We have made all the
compromises. We have consumer groups, the Chamber of Commerce, U.S.
PIRG. We never get those people to agree on anything, and they all
agree on this bill.
I thank Senator Durbin for all his great leadership. Hope springs
eternal, and I still hope we will get the votes to pass this and keep
the politics out of it.
I wish to correct something I said earlier. Earlier today I had met
with Senator Coburn, and we had a number of things he wanted that I
said I would try to put in the amendment on which we will be voting. In
good faith, I said I would do that. But then, of course, we had to send
it out to various offices to get Senators to sign off on it. We
couldn't get Republican Senators to sign off on it. So I wish to
correct the record.
The changes I had mentioned earlier that I was willing to put in the
bill for Senator Coburn were not objected to by anybody on our side. It
was objected to by Republicans and not Democrats. It is not in the
bill. These were changes I was willing to make to accommodate the
Senator from Oklahoma.
The PRESIDING OFFICER. The majority leader.
Mr. REID. Madam President, is the 30 hours postcloture gone?
The PRESIDING OFFICER. It is.
Mrs. BOXER. I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There appears to be a sufficient second.
The question is on agreeing to the motion.
The clerk will call the roll.
The legislative clerk called the roll.
Mr. DURBIN. I announce that the Senator from Indiana (Mr. Bayh), the
Senator from Massachusetts (Mr. Kerry), the Senator from New Jersey
(Mr. Menendez), the Senator from West Virginia (Mr. Rockefeller), the
Senator from Pennsylvania (Mr. Specter), and the Senator from Virginia
(Mr. Webb) are necessarily absent.
Mr. KYL. The following Senators are necessarily absent: the Senator
from Tennessee (Mr. Alexander), the Senator from Kentucky (Mr.
Bunning), the Senator from South Carolina (Mr. DeMint), the Senator
from Nevada (Mr. Ensign), the Senator from New Hampshire (Mr. Gregg),
the Senator from Texas (Mrs. Hutchison), the Senator from Nebraska (Mr.
Johanns), the Senator from Alaska (Ms. Murkowski), the Senator from
Idaho (Mr. Risch), and the Senator from Louisiana (Mr. Vitter).
Further, if present and voting, the Senator from Tennessee (Mr.
Alexander) would have voted ``nay'' and the Senator from Kentucky (Mr.
Bunning) would have voted ``nay.''
The PRESIDING OFFICER (Mr. Franken). Are there any other Senators in
the Chamber desiring to vote?
The result was announced--yeas 57, nays 27, as follows:
[Rollcall Vote No. 251 Leg.]
YEAS--57
Akaka
Baucus
Begich
Bennet
Bingaman
Boxer
Brown (MA)
Brown (OH)
Burris
Cantwell
Cardin
Carper
Casey
Collins
Conrad
Coons
Dodd
Dorgan
Durbin
Feingold
Feinstein
Franken
Gillibrand
Hagan
Harkin
Inouye
Johnson
Klobuchar
Kohl
Landrieu
Lautenberg
Leahy
Levin
Lieberman
Lincoln
Manchin
McCaskill
Merkley
Mikulski
Murray
Nelson (NE)
Nelson (FL)
Pryor
Reed
Reid
Sanders
Schumer
Shaheen
Snowe
Stabenow
Tester
Udall (CO)
Udall (NM)
Voinovich
Warner
Whitehouse
Wyden
NAYS--27
Barrasso
Bennett
Bond
Brownback
Burr
Chambliss
Coburn
Cochran
Corker
Cornyn
Crapo
Enzi
Graham
Grassley
Hatch
Inhofe
Isakson
Kyl
LeMieux
Lugar
McCain
McConnell
Roberts
Sessions
Shelby
Thune
Wicker
NOT VOTING--16
Alexander
Bayh
Bunning
DeMint
Ensign
Gregg
Hutchison
Johanns
Kerry
Menendez
Murkowski
Risch
Rockefeller
Specter
Vitter
Webb
The motion was agreed to.
____________________