[Congressional Record Volume 157, Number 84 (Monday, June 13, 2011)]
[Senate]
[Pages S3728-S3734]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. JOHNSON of South Dakota (for himself, Mr. Shelby, Mr.
Kerry, Mr. McCain, Mr. Levin, Mr. Lieberman, and Mr. Reed):
S. 1180. A bill to authorize the President to confiscate and vest
certain property of the Government of Libya and to authorize the use of
that property to provide humanitarian relief to and for the benefit of
the people of
[[Page S3729]]
Libya, and for other purposes; to the Committee on Banking, Housing,
and Urban Affairs.
Mr. JOHNSON of South Dakota. Mr. President, today I join Senator
Shelby and other senior Senators to introduce the Libyan Assets for
Humanitarian Relief Act of 2011, designed to explicitly authorize the
President to confiscate and distribute some of the assets of Muammar
Qaddafi's government to be used to provide urgent humanitarian relief
for the people of Libya. This issue lies within the jurisdiction of the
Committee on Banking, Housing and Urban Affairs because it involves
frozen assets being held by U.S. banks and other financial
institutions. We are joined by Chairman Kerry of the Senate Foreign
Relations Committee, Armed Services Committee Chairman Levin and
Ranking Minority Member John McCain, and Homeland Security and
Government Affairs Committee Chairman Lieberman as original cosponsors
of this measure.
A few weeks ago the President's senior advisors from the Treasury
Department, the State Department, and the White House came to Congress
and provided draft legislation to explicitly authorize the President to
seize and vest the Qaddafi government's assets to be used to benefit
the Libyan people. This measure is an updated version of that
legislation, imposing certain conditions on that authority, and
providing for certain reporting, tracking and auditing requirements on
the use of the funds.
Currently, there are approximately $36 billion in Libyan Government
assets in banks and other financial institutions subject to the
jurisdiction of the United States, both here and abroad. According to
the Treasury Department, a little over $8.1 billion is physically
present in the U.S.--and of that, a little over $200 million is in cash
and available for immediate seizure and use to support humanitarian
efforts in Libya. This measure would allow for confiscation of up to $8
billion of the Qaddafi government's assets--plus an additional $2
billion if necessary to avert an imminent humanitarian emergency.
The bill provides for the confiscation and distribution of the funds
in two batches--the first $4 billion could be seized, vested and
distributed upon the bill's enactment, and a second $4 billion could be
confiscated and released after a 30-day notification period designed to
give Congress an opportunity to deny the seizure of the funds via
enactment of a joint resolution of disapproval. The additional $2
billion could be released upon certification of a humanitarian
emergency.
Notwithstanding how my colleagues feel about the current military
situation, or U.S. involvement in Libya--and I know there is a wide
range of opinions in Congress on that issue, which we'll likely debate
on the Senate floor soon--one thing is clear: in the wake of continuing
violence perpetrated by the Libyan regime against its own people, there
is a real, urgent and growing need for humanitarian relief and
assistance.
The U.S. has already provided tens of millions of dollars of its own
funds in relief aid for Libya's citizens, and last week pledged
additional aid. This bill would simply authorize the confiscation of
certain assets of the Government of Libya, already frozen by the U.S.
government under existing legal authorities, to be used to provide
additional humanitarian relief to meet urgent needs there. It would
effectively give the true owners of these assets--the Libyan people--
access to some of their own money to provide relief for Libya's
citizens.
The bill authorizes the President to seize and distribute these
assets. I understand the Administration intends the funds to be
overseen by the State Department, and to go mainly through non-
governmental humanitarian relief and development organizations
currently active in Libya; this measure ultimately allows the President
to decide who the recipients are, with some limitations. It also
requires that the funds be used only for purposes related to
humanitarian relief, consistent with UN Security Council resolutions on
this matter, and imposes a set of accounting, recordkeeping and
Congressional reporting requirements on the funds.
It requires that the funds not go to anyone or any organization whose
assets are blocked under U.S. law, or those identified as terrorists or
affiliated with terrorist organizations, or those complicit in human
rights abuses. It also provides the President with powerful
investigative and penalty authorities, to ensure appropriate
distribution of the funding and to combat any potential fraud in the
distribution of aid. The Administration has made clear that such assets
would be disbursed only through partners that meet U.S. legal and
policy standards that the United States generally applies to the
provision of assistance, including those relating to human rights and
transparent oversight of the disbursements. While these are not U.S.
taxpayer funds, I believe we still have a fiduciary responsibility for
its efficient and effective distribution, and that's why we have
imposed these important accountability measures.
Such seizure of another government's assets is not unprecedented. In
the past, the U.S. government has seized and frozen the assets of other
governments with whom we were involved in a conflict, going all the way
back to World War I. The latest example is when we seized and used a
portion of Iraqi government assets in 2003 to provide urgent
reconstruction assistance and other forms of support for the people of
Iraq.
I hope we can move quickly on this legislation to authorize the
release of these funds and show that Congress and the Executive branch
are working together on this issue and that despite our differences on
U.S. military action there we can act promptly and decisively to
provide needed humanitarian assistance to the people of Libya. I urge
my colleagues to join us in this effort.
Mr. President, I ask unanimous consent that the text of the bill and
a letter of support be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 1180
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Libyan Assets for
Humanitarian Relief Act of 2011''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) On February 26, 2011, the United Nations Security
Council adopted Resolution 1970, which imposed an asset
freeze on Colonel Muammar Qaddafi and members of his family.
(2) On March 17, 2011, the United Nations Security Council
adopted Resolution 1973, which expanded the asset freeze to
include the Central Bank of Libya, the Libyan Investment
Authority, the Libyan Foreign Bank, the Libyan Africa
Investment Portfolio, and the Libyan National Oil
Corporation.
(3) The United Nations Security Council stated in
Resolution 1973 that the assets frozen would ``at a later
stage, as soon as possible, be made available to and for the
benefit of the people of the Libyan Arab Jamahiriya''.
(4) On March 3, 2011, the President of the United States
stated that ``Muammar Qaddafi has lost the legitimacy to
lead, and he must leave''.
(5) On March 29, 2011, the Transitional National Council of
the Libyan Republic issued ``A Vision of a Democratic
Libya'', which stated that its goal is ``building a free and
democratic society and ensuring the supremacy of
international humanitarian law and human rights
declarations'', and that ``[t]his can only be achieved
through dialogue, tolerance, co-operation, national
cohesiveness and the active participation of all citizens''.
In that statement, the Transitional National Council pledged
itself, without reservation, to the establishment of ``a
constitutional civil and free state'' that upholds
intellectual and political pluralism and the peaceful
transfer of power and guarantees full citizenship rights to
all Libyans.
(6) On April 7, 2011, Ali Aujali, the Official
Representative to the United States of the Transitional
National Council of the Libyan Republic, wrote to the United
States Secretary of the Treasury and requested ``immediate
access to some of the frozen Qaddafi regime funds to purchase
needed humanitarian supplies and to support critical services
such as hospitals, water distribution and sanitation''.
(7) On May 19, 2011, the President of the United States,
referring to the Transitional National Council of the Libyan
Republic, stated that ``the opposition has organized a
legitimate and credible interim council''.
SEC. 3. AUTHORIZATION OF CONFISCATION OF PROPERTY OF THE
GOVERNMENT OF LIBYA.
(a) In General.--The International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.) is amended by adding at
the end the following:
[[Page S3730]]
``SEC. 209. AUTHORIZATION OF CONFISCATION OF PROPERTY OF THE
GOVERNMENT OF LIBYA.
``(a) Definitions.--In this section:
``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on Banking, Housing, and Urban Affairs
and the Committee on Foreign Relations of the Senate; and
``(B) the Committee on Financial Services and the Committee
on Foreign Affairs of the House of Representatives.
``(2) Executive agency.--The term `executive agency' has
the meaning given that term in section 133 of title 41,
United States Code.
``(3) Government of libya.--The term `Government of
Libya'--
``(A) means the Government of Libya on the date of the
enactment of the Libyan Assets for Humanitarian Relief Act of
2011, including any agency or instrumentality of that
Government, any entity controlled by that Government, and the
Central Bank of Libya; and
``(B) does not include a successor government of Libya.
``(4) Successor government of libya.--The term `successor
government of Libya' means a successor government to the
Government of Libya (as defined in paragraph (3)) that is
recognized as the legitimate governing authority of Libya by
the Government of the United States.
``(b) Statement of Policy.--It is the policy of the United
States to provide humanitarian relief to and for the benefit
of the people of Libya and to support the aspirations of the
people of Libya for democratic self-government.
``(c) Authorization of Confiscation of Property of the
Government of Libya.--
``(1) In general.--The President--
``(A) may confiscate and vest, through instructions or
licenses or in such other manner as the President determines
appropriate, funds and other property of the Government of
Libya that are subject to the jurisdiction of the United
States in the amounts specified in subsection (f);
``(B) may liquidate or sell any of such property; and
``(C) shall deposit any funds confiscated and vested under
subparagraph (A) and any funds resulting from the liquidation
or sale of property under subparagraph (B) in the account
established under subsection (d).
``(2) Vesting.--All right, title, and interest in funds and
other property confiscated under paragraph (1) shall vest in
the Government of the United States.
``(d) Establishment of Account for Confiscated Property.--
``(1) In general.--The President shall establish a non-
interest-bearing account to consist of the funds deposited
into the account under subsection (c)(1)(C).
``(2) Use of funds.--The funds in the account established
under paragraph (1) shall be available to be used only as
specified in subsection (e)(1).
``(e) Use of Confiscated Property to Provide Humanitarian
Relief to the People of Libya.--
``(1) In general.--Subject to paragraph (2), the President
may transfer funds from the account established under
subsection (d)--
``(A) to such executive agencies and, subject to paragraph
(3), such other persons as the President determines
appropriate, to be used only for costs related to providing
humanitarian relief to and for the benefit of the people of
Libya, consistent with the purposes of United Nations
Security Council Resolutions 1970 (2011) and 1973 (2011); and
``(B) on and after the date on which a successor government
of Libya is recognized by the Government of the United
States, to the successor government of Libya.
``(2) Limitations on transfer of funds.--
``(A) Limitations on transfer to certain persons and
organizations.--None of the funds transferred under this
subsection may knowingly be provided to--
``(i) an organization designated as a foreign terrorist
organization under section 219(a) of the Immigration and
Nationality Act (8 U.S.C. 1189(a));
``(ii) a person that provides support for acts of
international terrorism or for an organization described in
clause (i);
``(iii) a person whose property or interests in property
are blocked pursuant to this Act, unless the transfer is
authorized by the Secretary of the Treasury; or
``(iv) a person the President determines is responsible for
violations of internationally recognized human rights.
``(B) Prohibition on use of funds for military purposes.--
None of the funds transferred under this subsection may be
used to purchase weapons or military equipment of either a
lethal or nonlethal nature.
``(3) Certifications by certain persons.--The President may
not transfer funds to any person, other than an executive
agency, under paragraph (1)(A) unless that person certifies
to the President that the person--
``(A) will use such funds only for the costs described in
paragraph (1)(A); and
``(B) will not--
``(i) transfer any of such funds to a person or
organization described in paragraph (2)(A); or
``(ii) use any of such funds to purchase weapons or
military equipment of either a lethal or nonlethal nature.
``(4) Terms and conditions.--If the President exercises the
authority provided under this section, the President shall
impose such additional terms and conditions as the President
determines appropriate with respect to the transfer of funds
under this subsection and with respect to the use of such
funds.
``(5) Use by executive agencies.--Notwithstanding any other
provision of law, any funds transferred to an executive
agency under this subsection--
``(A) shall remain available until expended;
``(B) shall be used only for the costs described in
paragraph (1)(A);
``(C) may be distributed in such manner as the head of the
executive agency determines appropriate to accomplish the
purposes of this section, including through grants and
contributions; and
``(D) may be transferred among executive agencies.
``(f) Initial and Subsequent Authorizations of Confiscation
of Property.--
``(1) Authority.--The authority of the President to
confiscate and vest funds and other property under subsection
(c) shall be limited as follows:
``(A) Initial limitation.--Effective on and after the date
of the enactment of the Libyan Assets for Humanitarian Relief
Act of 2011, the President may confiscate and vest not more
than $4,000,000,000 under subsection (c).
``(B) Confiscation and vesting of additional amounts.--
``(i) In general.--If, at any one time after the date of
the enactment of the Libyan Assets for Humanitarian Relief
Act of 2011, the President submits to Congress the
notification described in clause (ii), effective on and after
the day after the end of the 30-day period beginning on the
date on which that notification is submitted, the President
may confiscate and vest not more than an additional
$4,000,000,000 under subsection (c) over the amount
authorized to be confiscated and vested under subparagraph
(A), unless a joint resolution of disapproval described in
paragraph (2) is enacted within the 30-day period after the
notification is submitted.
``(ii) Notification described.--The notification described
in this clause is a notification--
``(I) that the President intends to confiscate and vest the
additional amount specified in clause (i) to be used for the
costs described in subsection (e)(1)(A); and
``(II) submitted with a report--
``(aa) describing the necessity of confiscating and vesting
that additional amount; and
``(bb) detailing the plan of the President with respect to
the use of that additional amount.
``(C) Emergency certification; confiscation and vesting to
address emergency humanitarian needs.--
``(i) In general.--If, at any one time after the date of
the enactment of the Libyan Assets for Humanitarian Relief
Act of 2011, the President submits to Congress the
certification described in clause (ii), effective on and
after the date on which that certification is submitted, the
President may confiscate and vest not more than an additional
$2,000,000,000 under subsection (c) over the amounts
otherwise authorized to be confiscated and vested under this
paragraph.
``(ii) Certification described.--The certification
described in this clause is a certification by the President
that it is necessary to confiscate and vest the additional
amount specified in clause (i) to address an emergency need
for additional humanitarian assistance.
``(2) Joint resolution of disapproval.--
``(A) Joint resolution of disapproval.--In this paragraph,
the term `joint resolution of disapproval' means only a joint
resolution of the 2 Houses of Congress, the sole matter after
the resolving clause of which is as follows: `That Congress
disapproves of the confiscation and vesting of the amount of
funds or other property specified in section 209(f)(1)(B)(i)
of the International Emergency Economic Powers Act.'.
``(B) Procedures for considering resolutions.--
``(i) Introduction.--A joint resolution of disapproval--
``(I) may be introduced in the House of Representatives or
the Senate during the 10-day period beginning on the date on
which a notification described in paragraph (1)(B)(ii) is
submitted;
``(II) in the House of Representatives, may be introduced
by any Member of the House of Representatives;
``(III) in the Senate, may be introduced by any Member of
the Senate; and
``(IV) may not be amended.
``(ii) Referral to committees.--A joint resolution of
disapproval introduced in the Senate shall be referred to the
Committee on Banking, Housing, and Urban Affairs and a joint
resolution of disapproval introduced in the House of
Representatives shall be referred to the Committee on Foreign
Affairs.
``(iii) Committee discharge and floor consideration.--The
provisions of subsections (c) through (f) of section 152 of
the Trade Act of 1974 (19 U.S.C. 2192) (relating to committee
discharge and floor consideration of certain resolutions in
the House of Representatives and the Senate) apply to a
resolution of disapproval under this paragraph to the same
extent as such subsections apply to joint resolutions under
such section 152, except that--
``(I) subsection (c)(1) of such section 152 shall be
applied and administered by substituting `10 days' for `30
days'; and
``(II) subsection (f)(1)(A)(i) of such section 152 shall be
applied and administered by substituting `Committee on
Banking, Housing,
[[Page S3731]]
and Urban Affairs' for `Committee on Finance'.
``(C) Rules of house of representatives and senate.--This
paragraph is enacted by Congress--
``(i) as an exercise of the rulemaking power of the Senate
and the House of Representatives, respectively, and as such
is deemed a part of the rules of each House, respectively,
but applicable only with respect to the procedure to be
followed in that House in the case of a joint resolution, and
it supersedes other rules only to the extent that it is
inconsistent with such rules; and
``(ii) with full recognition of the constitutional right of
either House to change the rules (so far as relating to the
procedure of that House) at any time, in the same manner and
to the same extent as in the case of any other rule of that
House.
``(g) Recordkeeping.--
``(1) In general.--The President may, in exercising the
authority provided under this section, require any person to
keep a full record of--
``(A) any act or transaction carried out pursuant to any
regulation, instruction, license, order, or direction issued
under this section, either before, during, or after the
completion of the act or transaction;
``(B) any property in which any foreign country or any
national of a foreign country has or has had any interest;
and
``(C) any other information the President determines
necessary to carry out the provisions of this section.
``(2) Production of information.--The President may require
any person--
``(A) to provide any information required to be kept by the
person under paragraph (1) under oath and in the form of
reports or any other form; and
``(B) to produce any books of account, records, contracts,
letters, memoranda, or other papers in the custody or control
of the person that relate to any information required to be
kept under paragraph (1).
``(h) Reports on Use of Funds.--
``(1) In general.--Not later than 90 days after the
President first confiscates and vests funds or other property
under subsection (c), and every 90 days thereafter, the
President shall submit to the appropriate congressional
committees a report detailing, for the 90-day period
preceding the submission of the report--
``(A) the amount of funds and other property confiscated
and transferred under this section;
``(B) the executive agencies and other persons to which
such funds were transferred;
``(C) the manner in which such funds were used; and
``(D) the amount remaining in the account established under
subsection (d) at the end of the 90-day period.
``(2) Special rule with respect to report relating to
authorization of confiscation of additional amounts.--If,
after the date on which a report is required to be submitted
by paragraph (1) and before the next such report is required
to be submitted, the President submits to the appropriate
congressional committees the report described in subsection
(f)(1)(B)(ii)(II), the President--
``(A) shall include in the report described in subsection
(f)(1)(B)(ii)(II) the information required to be included in
the report required by paragraph (1) for the period that--
``(i) begins on the date on which the last report required
by paragraph (1) was required to be submitted; and
``(ii) ends on the date on which the President submits the
report described in subsection (f)(1)(B)(ii)(II); and
``(B) may include in the next report required by paragraph
(1) only the information required by paragraph (1) for the
period--
``(i) beginning on the date on which the report described
in subsection (f)(1)(B)(ii)(II) is submitted; and
``(ii) ending on the date on which the report required by
paragraph (1) is required to be submitted.
``(i) Government Accountability Office Report.--Not later
than 180 days after the date of the enactment of the Libyan
Assets for Humanitarian Relief Act of 2011, and every 180
days thereafter, the Comptroller General of the United States
shall submit to the appropriate congressional committees a
report assessing the confiscation and vesting of funds and
other property under subsection (c) and the use of funds
under subsection (e).
``(j) Penalties.--The penalties provided for in subsections
(b) and (c) of section 206 shall apply to a person that
violates, attempts to violate, conspires to violate, or
causes a violation of this section or any regulation,
instruction, license, order, or direction issued under this
section to the same extent that such penalties apply to a
person that commits an unlawful act described in section
206(a).
``(k) Judicial Review.--
``(1) Safe harbor.--A person that complies fully with a
regulation, instruction, license, order, or direction issued
under this section may not be held liable for a violation of
this section.
``(2) Good faith compliance.--A person may not be held
liable in any court for or with respect to any act or
omission done in good faith in connection with the
administration of, or pursuant to and in reliance on, this
section, or any regulation, instruction, license, order, or
direction issued under this section.
``(3) No legal process with respect to confiscated
property.--Any funds or other property confiscated and vested
under subsection (c), including any proceeds from the
liquidation or sale of such property, shall be immune from
any legal process or attachment.
``(4) Actions taken under this section.--No action taken
under this section, other than the imposition of penalties
with respect to a person under subsection (j), shall be
reviewable in any court in the United States.
``(5) Rule of construction.--This section does not create
any right or benefit, substantive or procedural, that is
enforceable at law or in equity by any party against the
United States, any agency of the United States, any officer
or employee of the United States, or any other person.
``(l) Termination.--
``(1) In general.--Except to the extent necessary to carry
out the plan required by paragraph (2), the provisions of
this section (other than subsections (a), (g), (j), (k), and
(m)) shall terminate on the date described in paragraph (3).
``(2) Plan for distribution of remaining amounts.--On the
date described in paragraph (3), the President shall submit
to the appropriate congressional committees a report
describing the plan of the President for using any funds
remaining of the amounts confiscated and vested under this
section that--
``(A) describes how any of such funds that are obligated as
of that date will be expended; and
``(B) provides for the distribution of any of such funds
that are unobligated as of that date to a successor
government of Libya.
``(3) Date described.--The date described in this paragraph
is the date on which the national emergency declared by the
President with respect to Libya pursuant to section 202
expires and is not continued by the President.
``(m) Regulations.--The President shall prescribe such
regulations as may be necessary to carry out the provisions
of this section.''.
(b) Clerical Amendment.--Section 204 of the International
Emergency Economic Powers Act (50 U.S.C. 1703) is amended--
(1) in subsection (b), by striking ``Whenever'' and
inserting ``Except as provided in subsection (e), whenever'';
and
(2) by adding at the end the following:
``(e) Reports Relating to Confiscation of Assets of the
Government of Libya.--If the President exercises the
authority provided under section 209, the President shall
submit reports in accordance with subsection (h) of that
section.''.
____
Summary of Libyan Assets for Humanitarian Relief Act of 2011
Authorization of Confiscation: The measure authorizes the
President to confiscate and vest certain funds and other
property of the Government of Libya currently frozen by the
U.S. government, allows liquidation of the assets and sale of
any property, and directs the proceeds to be used solely for
humanitarian purposes to benefit the Libyan people. The
Government of Libya is defined to include Libya's Central
Bank.
Account Established for Confiscated Funds: The bill
requires the President to establish a U.S. government account
to hold confiscated funds and the proceeds from any asset or
property sales. The Secretary of the Treasury may hold in
escrow funds that are not needed immediately to meet urgent
humanitarian needs.
Use of Confiscated Funds for Humanitarian Purposes to
Benefit the Libyan People: Libyan Government funds
confiscated may only be used for humanitarian purposes to
benefit the Libyan people, consistent with United Nations
Security Council resolutions. None may be used to purchase
weapons or military equipment. The President must designate
recipients of funds and impose appropriate terms and
conditions, which may include detailed recordkeeping
requirements, on recipients. The measure prohibits the
knowing transfer of funds to: 1) foreign terrorist
organizations; 2) supporters of acts of terrorism or of
terrorist organizations; 3) a person whose assets are blocked
by the International Emergency Economics Powers Act (IEEPA);
or 4) a person the President determines to be responsible for
violations of internationally recognized human rights.
Framework for Confiscation of Funds: The bill authorizes an
initial confiscation and distribution of $4 billion; if
additional funds are needed, the President may notify
Congress of his intent to confiscate an additional $4
billion, to be released within 30 days unless Congress
objects via enactment of a Joint Resolution of Disapproval.
The President's request for the additional funds must include
information about how prior confiscated funds were disbursed,
a description of the need for additional funds, a plan of how
the additional funds will be used, and other information. In
the event of a humanitarian emergency, the measure also
authorizes the President to notify Congress of his intent to
confiscate, on an expedited basis and upon certification of
need, an additional $2 billion to meet emergency needs.
Investigations and Recordkeeping: The President may conduct
appropriate investigations of recipients as necessary, and
require recordkeeping from recipients of these funds, which
could include books of account, records, contracts, letters,
memoranda, or other papers related to distributions under the
Act.
Audit and Reporting Requirements: The President must
provide detailed reports to Congress every 90 days describing
the amount of funds confiscated and transferred
[[Page S3732]]
to designated recipients, the recipients of these funds, and
the manner in which these funds were used. If the President
notifies Congress of an additional confiscation in the middle
of a 90-day period, the President must only include any new
information on fund distribution. GAO is required to conduct
and provide to Congress periodic audits of the program.
Penalties: Substantial penalties apply to persons who
violate provisions of the Act, including huge fines provided
for under section 206 of IEEPA.
Legal Protections/Judicial Review: Decisions made with
respect to confiscated assets are not subject to judicial
review; a ``good faith'' exception is provided for those
acting consistent with the requirements of the Act; and any
funds or property confiscated under the Act are immune from
any legal process or attachment.
Termination: The authorities provided for in the bill
terminate once the existing emergency determination of the
President under IEEPA with respect to Libya expires. Upon
termination, the President must submit to Congress a report
describing a plan for use of any remaining unspent funds,
including return of such funds to a successor government of
Libya.
Regulations: The bill requires the President to prescribe
regulations as necessary under the Act.
______
By Ms. COLLINS (for herself and Mr. Carper):
S. 1183. A bill to establish a national mercury monitoring program,
and for other purposes; to the Committee on Environment and Public
Works.
Ms. COLLINS. Mr. President, today along with Senator Carper, I am
introducing the Comprehensive National Mercury Monitoring Act. This
bill would ensure that the Environmental Protection Agency, EPA, has
accurate information about the extent of mercury pollution.
A comprehensive national mercury monitoring network is needed to
protect human health, safeguard fisheries, and track the impact of
emissions reductions. By accurately quantifying regional and national
changes in atmospheric deposition, ecosystem contamination, and
bioaccumulation of mercury in fish and wildlife in response to changes
in mercury emissions, this monitoring network would help policy makers,
scientists, and the public to better understand the sources,
consequences, and trends in United States mercury pollution.
Mercury is a potent neurotoxin of significant ecological and public
health concern, especially for children and pregnant women. It is
estimated that approximately 410,000 children born in the U.S. were
exposed to levels of mercury in the womb that are high enough to impair
neurological development. Mercury exposure has gone down as U.S.
mercury emissions have declined; however, levels remain unacceptably
high.
Each new scientific study seems to find higher levels of mercury in
more ecosystems and in more species than we had previously thought. For
example, as of 2008, every state in the country has issued mercury
advisories for human fish consumption. These advisories cover 57
percent of the Nation's total lake acreage, and 68 percent of our total
river miles. This is 19 percent more lake acreage and 42 percent more
river area than in 2006.
At present, scientists must rely on limited information to understand
the critical linkages between mercury emissions and environmental
response and human health. Successful design, implementation, and
assessment of solutions to the mercury pollution problem require
comprehensive long-term information--information that is currently not
available. We must have more comprehensive information and we must have
it soon; otherwise, we risk making misguided policy decisions.
Specifically, the Comprehensive National Mercury Monitoring Act would
direct EPA, in conjunction with the Fish and Wildlife Service, U.S.
Geological Survey, National Park Service, the National Oceanic and
Atmospheric Administration, and other appropriate Federal agencies, to
establish a national mercury monitoring program to measure and monitor
mercury levels in the air and watersheds, water and soil chemistry, and
in aquatic and terrestrial organisms at multiple sites across the
Nation.
The act would establish a scientific advisory committee to advise on
the establishment, site selection, measurement, recording protocols,
and operations of the monitoring program; establish a centralized
database for existing and newly collected environmental mercury data
that can be freely accessed on the Internet; and require a report to
Congress every 2 years on the program, including trend data, and an
assessment of the reduction in mercury deposition rates that are
required to be achieved in order to prevent adverse human and
ecological effects every 4 years.
We must establish a comprehensive, robust national mercury monitoring
network to provide EPA the data it needs to make decisions that protect
the people and environment of Maine and the entire Nation.
______
By Mr. THUNE (for himself, Ms. Klobuchar, Mr. Grassley, Mr.
Johanns, Mr. Hoeven, Mr. Franken, Mr. Moran, Mr. Lugar, Mr.
Nelson of Nebraska, Mr. Harkin, Mr. Johnson of South Dakota,
Mr. Kirk, Mr. Coats, Mr. Durbin, and Mrs. McCaskill):
S. 1185. A bill to amend the Internal Revenue Code of 1986 to provide
for a variable VEETC rate based on the price of crude oil, and for
other purposes; to the Committee on Finance.
Ms. KLOBUCHAR. Mr. President, I first wish to thank my colleague from
Minnesota who spoke before me for his strong words. Also, I am here
with the Senator from South Dakota, Mr. Thune, to speak about the
legislation we are introducing today, along with several other
Senators, to find a good way to handle this--not the way it thus far
has been handled.
My colleague from Minnesota talked about Senator Coburn's amendment,
which we will be voting on tomorrow. I urge my colleagues to oppose
this amendment. First of all, I believe we need to invest in homegrown
energy. The Coburn amendment would abruptly eliminate the VEETC--the
Volumetric Ethanol Excise Tax Credit--without any kind of a glidepath
during this year. Consequently, the 450,000 people who are directly or
indirectly employed in this industry--when we think about all of the
jobs we work on every single day, just because jobs are in States that
maybe some people don't live in, including North Dakota, South Dakota,
Minnesota, and Iowa, these are very important jobs throughout the
country.
The other piece of this I think we can't neglect is the effect this
would have on gas prices. That being said, both Senator Thune and I
understand this is a situation that needs to change. We are in a
difficult budget situation in the Senate, and that is why we are
introducing legislation today and working with stakeholders and Members
from both sides of the aisle to find a reasonable solution that offers
a responsible and cost-effective approach to reforming our biofuels
policy.
This bill would transition to a more sustainable model of support for
renewable fuel production in America instead of pulling the rug out
from under an industry, with 4 days' notice, that employs hundreds of
thousands of people in this country, as well as provides an alternative
to oil. Senator Thune is here, and maybe he wishes to address this a
bit. We will go back and forth.
But I think one thing people need to understand is that this biofuels
industry has become a major component of our fuel supply. One statistic
is that the gasoline that is made from the oil we import from Canada--
people know Canada is our biggest trading partner for oil. We literally
produce as much biofuels as we produce gas from the oil we import from
Canada, so it is a major part of our fuel supply. So we shouldn't just
decide with 4 days' notice to change the rules of the game. In fact, as
a recent vote showed us, oil is keeping every single cent of its
subsidy.
Senator Thune and I have a bill which basically gives away the
subsidies for the rest of the year that the biofuels industry has and
puts $1 billion toward deficit reduction--$1 billion toward deficit
reduction--as well as making some investment with the remaining money
in the infrastructure that this industry needs to be able to compete on
any kind of an even playing field with oil.
So I know Senator Thune has some thoughts on this as well, and I
would like to come back and talk a little bit about what has been going
on with oil versus ethanol in this country. But I think it is important
to understand the
[[Page S3733]]
bill we are introducing today could be a major help with $1 billion in
deficit reduction.
Mr. THUNE. Mr. President, if I might just say to my colleague from
Minnesota, I appreciate her good work and advocacy on this subject.
This is something we have been working on for some time, along with
some of our colleagues on both sides of the aisle, for a lot of
reasons; one of which, of course, is because, as the Senator from
Minnesota mentioned, these are difficult fiscal times.
Obviously, every area in our budget needs to be reviewed and
scrutinized and looked at to see where we might be able to achieve some
savings. But, as my colleague noted, there is a right way and a wrong
way to do this. The way that has been proposed in the amendment that
was offered, and on which the cloture vote will occur tomorrow, is the
wrong way. We cannot tell an industry in December we are going to give
them a set of policies that are going to be in effect for the year,
that they are going to be able to make investment decisions, they are
going to be able to go to their lenders, they are going to be able to
go secure financing based upon this set of policies--we do that around
here all the time. We make policy, and we try to do it in a way,
hopefully, that gives those who are investing their dollars some
certainty about what those policies are going to be. Well, how can we
then, in the middle of the year, come back and say we are just going to
pull the rug right out from under them? We are sorry, that is just the
way it is. This is gone.
Well, frankly, there is a much better way to go about doing this, and
what the Senator from Minnesota and I have proposed does just that and,
in my view, does this in a responsible, measured, thoughtful,
reasonable way. We get to the same ultimate result, which is that for
those who are really interested in doing away with the volumetric
ethanol excise tax credit, it does phase it out, but it does it in a
way that does not create disruption and harm and allows people to plan
for the future. It also invests some of those resources in areas that
are important to the future of that industry; namely, blender pumps,
which is the one thing that does not exist out there today, at least
not in any great numbers. If those pumps were more available, I believe
we would see a lot higher usage of the fuel than we already have seen.
But we already know it is 10 percent of our fuel supply.
Whether the opponents of this like it or not--and I know they do
not--there are 13 billion gallons of ethanol produced in this country.
At least that is what it was in 2010. We assume it will be that number,
maybe a little higher, this year. That displaces 445 million barrels of
imported crude oil. That is 55 million barrels more than the total
crude oil imports from Saudi Arabia last year.
Now, think about that: a fuel that is produced from a kernel of corn
now displaces more than the entire imports of Saudi foreign oil into
this country. That is what we ought to be looking at. We ought to be
looking at more ways to produce domestic energy, home-grown energy,
adding that to our fuel supply rather than taking it out.
What the amendment our colleagues are trying to get a vote on
tomorrow would do is basically to say to this industry: Yes, we are
going to take away this particular tax incentive, and we are going to
do it right in the middle of the year. We are going to do it, and we do
not like this industry--which is probably what animates a lot of the
opposition to this because if people look at the facts, if they look at
the contribution that biofuels have made to our fuel supply in this
country, it is significant.
Ten percent of our entire fuel now is biofuels. In fact, if we look
at the other byproduct of biofuels--once we take the starch out of that
kernel of corn and convert it into liquid form, we can get, for every
bushel of corn, almost 3 gallons of ethanol. But we also get dry
distillers grain, which is something that has been used extensively now
for feed for livestock.
So if we take 5 billion bushels of corn, for example, that are used
for ethanol production in any given year, the feed product equivalent
is about 1.7 billion bushels of corn that is returned to the livestock
food chain as this ethanol byproduct called dry distillers grain. So we
are adding additional protein that is fed to livestock in addition to
the almost 3 gallons of ethanol we get from every single bushel of
corn.
So I do believe there is an approach that makes sense. What the
Senator from Minnesota and I and many of our colleagues on both sides
have come together around is a way in which we can move forward, and do
it in a way that not only makes it reasonable for the industry to plan
for the future but also in a way that returns dollars to the Treasury
of this country because there is $1 billion in here for debt
retirement. I think that is something the industry recognizes, we all
recognize, and we need to address. It is addressed as part of this
bill.
So I appreciate the good work of the Senator from Minnesota in
working with me, along with other colleagues of ours, to introduce the
bill we introduce today.
Ms. KLOBUCHAR. Mr. President, if I may continue, I thank Senator
Thune for his work.
One point I think he made that is incredibly important: I think not
all of our colleagues understand that the way it is under the current
rules is VEETC, which has been in place to make sure we have an
alternative to oil in this country, ends at the end of this year. The
one piece of it that continues for another year is the cellulosic
research, the cellulosic credit. But the rest of it ends at the end of
this year.
So instead of looking at a glidepath, as suggested in our bill, where
we could take $1 billion and put it into deficit reduction, and take
another $1 billion or so--which would be going right now as a credit--
and put that into the infrastructure, the alternative that is suggested
by the amendment offered by our colleague from Oklahoma is just to cut
it off today, basically, with a few days' notice.
What I have heard time and time again from businesses--whether it is
in the energy area or in the medical device area--is they want
certainty. They do not want Washington just coming in with one day's
notice and changing things. That is why I ask my colleagues to look at
this bill as an alternative. We are glad to discuss details with them.
One of the things we have tried to do with this bill is to
acknowledge the emerging field of cellulosic with algae and other forms
of research into biofuels. That would continue into next year. But,
basically, the proposal Senator Thune and I have put forward would end
VEETC as we know it.
We look at the comparisons here. Over the last few decades more than
$360 billion worth of subsidies have gone to the oil companies. That is
nearly 10 times greater than the investments we have made in home-grown
biofuels. Now they are set up in a different way, but those are the
numbers. We have to remember the jobs with biofuels are jobs that are
made in America. We are basically investing in the farmers and the
workers of the Midwest instead of the oil cartels in the Mideast.
I have seen the boom in oil drilling in North Dakota. That has been a
good thing. So I am not just a one-size fuel person. But I think to
disrupt an industry like this, with no notice, is the wrong way to go.
I hope our colleagues will look at our bill seriously, talk to us about
this, think about the gas prices which have now topped $3.75 per
gallon. While they are high now, look at the fact that the Chicago
Tribune looked at the fact that if we ceased to produce the 13 billion
gallons of ethanol we make every year, as Senator Thune has pointed
out, it would drive up prices at the pump by as much as $1.40 per
gallon. I do not think that is something we can afford right now.
We have put together a good-faith proposal that basically even those
who have a lot of questions about biofuels right now, about ethanol,
will have to admit is a dramatic change. It ends VEETC as we know it.
It puts a big chunk of change, $1 billion--that otherwise would
be going to subsidies this year, right now--toward deficit reduction
while still allowing for that infrastructure investment, and then
looking into next year for just some of the key pieces but severely
changing any kind of subsidy for this industry.
So with that, I thank Senator Thune. I do not know if the Senator has
something else to add.
[[Page S3734]]
Mr. THUNE. Mr. President, if I might add one point.
I think the Senator from Minnesota did point out that there are a
significant number of jobs that are associated with this industry--in
fact, one-half million jobs. They are American jobs. They are jobs in
the heartland of this country. They are jobs that help grow the
economy, make it more prosperous. It strikes me, at least, that what we
ought to be looking at is more jobs in this country and less investment
in foreign regimes, where we get a lot of our energy today.
Mr. President, $1 billion a day is what we send outside the United
States because of our addiction to foreign oil. We have a dangerous
dependence upon foreign energy, and we have a fuel that, as I said,
displaces 445 million barrels of oil every single year--more than we
import from Saudi Arabia. That is a pretty remarkable number when you
think about it.
We had a debate here a few weeks ago on the floor of the Senate about
whether we ought to change tax policy with regard to oil companies. The
decision was reached that we should not do that; that it would be
punitive, directed at oil companies. We decided, too, that it would
raise taxes on gas for people in this country.
I would make the same argument today. We are talking about a tax
increase--a large tax increase--which we know is going to get passed
on. So we are talking about raising taxes on consumers at a time when
they can least afford it.
We have today 3\1/2\ to $4-a-gallon gasoline. The last thing
consumers in this country need is something that would actually push
that gas price higher. In fact, if we did away with biofuels
altogether--which some people would like to do--there was a study out
last year, in 2010, that said the price per gallon of gasoline would go
up by 89 cents a gallon. So we have a proposal here that would have an
adverse impact on energy prices, fuel prices for people in this
country, which, frankly, again, because of the commitment that was made
last December, strikes at the very heart of economic certainty, which
so many of us come down here and talk about: the importance of having
policies in place that are reliable, that people who are investing in
particular areas of our economy can know they are going to be there, at
least when Congress makes a commitment.
This completely undermines the commitment Congress made back in
December that this particular tax credit would be in place until the
end of the year. So what the Senator from Minnesota and I have done is
propose a path forward that we believe makes sense and that is a
thoughtful, measured, reasonable, responsible way in which to get to
the goal that many of the proponents of the amendment that will be
voted on tomorrow want to get to; that is, to phase down the volumetric
ethanol excise tax credit. But it does it in a way that makes sense for
American consumers and those who have investments in the industry
today.
So I hope my colleagues will take a look at this legislation. We
think we can get it moving this year. It does, as was noted by my
colleague from Minnesota, put a significant amount toward reducing the
debt, which I think is something all of our colleagues are very
interested in doing. So we will present this legislation, obviously, to
our colleagues and hope there will be many who will choose to support
it.
Mr. President, I yield the floor back to the Senator from Minnesota.
Ms. KLOBUCHAR. Mr. President, again, we just hope our colleagues will
look at this bill. It is a serious bill and very different than other
bills that have been proposed in the past, and it actually takes
existing money that was set out for the end of this year and puts a big
number--$1 billion--into debt reduction.
____________________