[Congressional Record Volume 160, Number 107 (Thursday, July 10, 2014)]
[Senate]
[Pages S4406-S4417]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

                                 ______
                                 
      By Mr. NELSON (for himself, Mr. Blumenthal, Mrs. Boxer, Mr. 
        Brown, Mr. Durbin, Mr. Harkin, Mr. Markey, Mr. Merkley, Mr. 
        Pryor, Mr. Schumer, and Mr. Bennet):
  S. 2581. A bill to require the Consumer Product Safety Commission to 
promulgate a rule to require child safety packaging for liquid nicotine 
containers, and for other purposes; to the Committee on Commerce, 
Science, and Transportation.
  Mr. NELSON. Mr. President, we all recognize the danger that many 
hazardous chemicals and over-the-counter drugs pose to children. That's 
why we require child-resistant packaging for these substances to 
prevent accidental poisonings that could result in serious injury or 
death.
  Unfortunately, there is no child-resistant packaging required for 
concentrated liquid nicotine, which can be toxic if ingested or even 
absorbed through skin in large amounts. According to the American 
Academy of Pediatrics, AAP, some small 15 mL bottles of liquid nicotine 
contain as much as 540 mg of nicotine. At the estimated lethal dose 
range of nicotine, AAP notes that this small bottle contains enough 
nicotine to kill 4 small children. And even a very small amount of the 
liquid splashed on a child's skin can make the child very ill.
  The American Association of Poison Control Centers, AAPCC, reports 
that local poison control centers had already received 1,571 calls 
between January 1 and May 31 of this year related to liquid nicotine 
exposure. According to some experts who study nicotine exposure, it's 
only a matter of time before an accidental nicotine ingestion results 
in death.
  Today I am introducing the Child Nicotine Poisoning Prevention Act 
with Senators Pryor, Bennet, Blumenthal, Boxer, Brown, Durbin, Harkin, 
Markey, Merkley, and Schumer to prevent these unnecessary tragedies. 
This common-sense legislation gives the U.S. Consumer Product Safety 
Commission, CPSC, authority and direction to issue rules requiring 
safer, child-resistant packaging for liquid nicotine products within 1 
year of passage.
  The CPSC already requires child-resistant packaging for many 
household products, including over-the-counter medicines and cleaning 
agents. These rules have prevented countless injuries and deaths to 
children. There is no reason that bottles of liquid nicotine should not 
also be required to have child-resistant packaging as well.
  I invite my colleagues to join us to support the Child Nicotine 
Poisoning Prevention Act. Working together, we can take simple steps to 
prevent accidental child nicotine poisonings.
  Mr. President, I ask unanimous consent that text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2581

       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 ``Child Nicotine Poisoning 
     Prevention Act of 2014''.

     SEC. 2. CHILD SAFETY PACKAGING FOR LIQUID NICOTINE 
                   CONTAINERS.

       (a) Definitions.--In this section:
       (1) Commission.--The term ``Commission'' means the Consumer 
     Product Safety Commission.
       (2) Liquid nicotine container.--The term ``liquid nicotine 
     container'' means a consumer product, as defined in section 
     3(a)(5) of the Consumer Product Safety Act (15 U.S.C. 
     2052(a)(5)) notwithstanding subparagraph(B) of such section, 
     that consists of a container that--
       (A) has an opening that is accessible through normal and 
     reasonably foreseeable use by a consumer; and
       (B) is used to hold liquid containing nicotine in any 
     concentration.
       (3) Nicotine.--The term ``nicotine'' means any form of the 
     chemical nicotine, including any salt or complex, regardless 
     of whether the chemical is naturally or synthetically 
     derived.
       (4) Special packaging.--The term ``special packaging'' has 
     the meaning given such term in section 2 of the Poison 
     Prevention Packaging Act of 1970 (15 U.S.C. 1471).
       (b) Required Use of Special Packaging for Liquid Nicotine 
     Containers.--
       (1) Rulemaking.--
       (A) In general.--Notwithstanding section 3(a)(5)(B) of the 
     Consumer Product Safety Act (15 U.S.C. 2052(a)(5)(B)) or 
     section 2(f)(2) of the Federal Hazardous Substances Act (15 
     U.S.C. 1261(f)(2)), not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate a 
     rule requiring special packaging for liquid nicotine 
     containers.
       (B) Amendments.--The Commission may promulgate such 
     amendments to the rule promulgated under subparagraph (A) as 
     the Commission considers appropriate.
       (2) Expedited process.--The Commission shall promulgate the 
     rules under paragraph (1) in accordance with section 553 of 
     title 5, United States Code.
       (3) Inapplicability of certain rulemaking requirements.--
     The following provisions shall not apply to a rulemaking 
     under paragraph (1):
       (A) Sections 7 and 9 of the Consumer Product Safety Act (15 
     U.S.C. 2056 and 2058).
       (B) Section 3 of the Federal Hazardous Substances Act (15 
     U.S.C. 1262).
       (C) Subsections (b) and (c) of section 3 of the Poison 
     Prevention Packaging Act of 1970 (15 U.S.C. 1472).
       (4) Savings clause.--Nothing in this section shall be 
     construed to limit or diminish the authority of the Food and 
     Drug Administration to regulate the manufacture, marketing, 
     sale, or distribution of liquid nicotine, liquid nicotine 
     containers, electronic cigarettes, or similar products that 
     contain or dispense liquid nicotine.
                                 ______
                                 
      By Mr. KAINE (for himself, Mr. Portman, and Mr. Warner):
  S. 2584. A bill to amend the Carl D. Perkins Career and Technical 
Education Act of 2006 to raise the quality of career and technical 
education programs and to allow local eligible recipients to use 
funding to establish high-quality career academics; to the Committee on 
Health, Education, Labor, and Pensions.
  Mr. KAINE. Mr. President, I rise today to introduce the Educating 
Tomorrow's Workforce Act of 2014. This is a bipartisan bill with 
Senator Portman, who will follow me on the floor today. Senator Portman 
and I are working together as cochairs of the Senate Career and 
Technical Education Caucus.
  Let me first explain why career and technical education is important 
to me.
  I grew up in a household in Kansas City where my dad ran a union-
organized ironworking shop. He was the owner. Ironworkers and welders--
in a good year, eight employees; in a bad year, five employees. My 
mother and my brothers and I worked in my dad's shop, and I came to 
appreciate working in that ironworking shop, the tremendous 
craftsmanship and skill that went into being an ironworker. That lesson 
has stuck with me for the rest of my life, and I really credit my dad 
with my work ethic. In a manufacturing welding shop, you get up and you 
go to work early because you want to get the work done before it gets 
too hot in the middle of the day.
  I then had the experience in 1980 to take a year off from Harvard Law 
School and go to Honduras, where I was the principal of the Instituto 
Tecnico Loyola, which was a school that taught kids to be welders and 
carpenters. I was able to use the trades I had learned in my dad's 
shop, and what I saw in Honduras was the same thing: that the 
acquisition of skills--whether it be welding or carpentry or other 
skills--is a great path to life's success.
  But one thing I noticed about the education system in my country--
even

[[Page S4407]]

as I was working in my dad's shop, even as I was a principal of the 
school in Honduras--was in the United States we sort of downgrade 
career and technical education. When I was a kid, it was called 
vocational education. Often, in high schools especially, students who 
were thought to be kind of problems or not college material would kind 
of get trapped into vocational education curricula, and that would 
usually not be a good sign.
  In fact, a friend of mine, who is a middle school teacher in 
southwest Virginia, told me that she would often see her students after 
they had gone to the high school and ask, ``Hey, tell me what you are 
up to.'' And when a student said ``I am in the vocational education 
program,'' the student would almost slump their shoulders, like ``I 
know you are going to be disappointed to hear this: I am in the 
vocational education program.''
  Career and technical education is a very important pathway for life's 
success, and there should be no stigma surrounding career and technical 
education programs. But whether it is in our K-12 schools or in the 
higher ed world or in the mindset of parents or guidance counselors or 
even in the military--in the military today, our military members can 
get tuition assistance benefits, but they can only be used for college 
courses. You can get up to $4,500 a year in the military as a tuition 
assistance benefit, but you cannot use even $500 of it to take the 
certification exam from the American Welding Society to get your 
welding certificate. We still have a stigma against career and 
technical education, and we should not.
  CTE integrates numerous aspects of liberal arts degrees for practical 
and applied purposes. CTE prepares students with industry-recognized 
credentials, professional certificates, occasionally college credits, 
and, most importantly, training for careers as varied as nursing, 
physician assistant, business administration, manufacturing, oil and 
natural gas exploration, automotive maintenance, agriculture, welding, 
software programming, culinary arts, and many other careers.
  CTE happens in interesting places. CTE happens in K-12 school 
systems. It happens on community college campuses. It happens in 4-year 
colleges. It happens in stand-alone institutions such as the Newport 
News Shipbuilding apprenticeship program, where people learn to 
manufacturer the largest items on planet Earth: nuclear aircraft 
carriers and submarines in Newport News, VA. It happens online. It 
happens anywhere where there is somebody who wants to attain a skill 
and there is a qualified teacher or program that can convey and educate 
a student in that skill so they can get a good job.
  CTE programs are proven solutions for creating jobs, for retraining 
workers, older workers who need to find new skills so they can be 
successful and fill open jobs in the market, and ensure that students 
of all ages and walks of life are ready for a successful career.
  When I was Governor, I worked on a number of educational issues, but 
one I was very proud of was starting Governor's Career and Technical 
Academies. We had 17 in Virginia--Governor's schools--that were college 
prep, academic, regional, magnet public high schools. It started in the 
1970s. But when I was running for Governor, I realized, wow, we do not 
have a single school in the State that is a career and technical 
education program that we have deemed fit to hang the Governor's label: 
This is a Governor's career and technical academy. I said this has to 
be just as important as college prep. So when I was Governor, we 
started Governor's Career and Technical Academies. By the end of my one 
term--and that is all you get in Virginia--we had nine. The Republican 
Governor who followed me liked the idea. By the end of his term, we had 
22. The Democratic Governor who has followed him is continuing to 
expand it, and we now have academies around the Commonwealth, developed 
at partnerships among schools, employers, business organizations, and 
postsecondary institutions looking for these skills.
  Last week, during our break week, I traveled in Virginia, and I heard 
the same message from employers and educators: Education has to be job 
relevant. It has to start at earlier grades. Completion rates need to 
be maximized. We need to make sure all of our students have the skills 
they will need to be able to build successful careers throughout their 
lives.
  One entrepreneur even said to me: I am so glad I ended up going to 
the Valley Career and Technical Education Program in the Shenandoah 
Valley and went into CTE because it has enabled me to be my own boss.
  I said: What do you mean by that?
  He said: If I had gone to college, I would have gotten a good job 
offer from a good company and would have taken it, and I probably would 
still be there. I would have been having a good career, but somebody 
else would have been by boss. But by going to a career and technical 
program and learning a skill, it also encouraged me to be 
entrepreneurial. So I did not join somebody else's company; I started 
my own company. CTE promotes entrepreneurial activity.
  It is essential for the United States to invest in creating a world-
class system of education across the spectrum to ensure the technically 
skilled and well-trained workforce we need. That is why we are 
introducing this bill--Senator Portman and I--the Educating Tomorrow's 
Workforce Act.
  Here is what the legislation does.
  It takes the existing Carl D. Perkins career and technical education 
program, which is the major source for Federal funding for programs 
that connect education to real-world careers, and it amends it by doing 
a couple of things.
  First, it ensures that students have access to high-quality CTE 
programs in their schools so they can prepare to be college and career 
ready. Second, it defines what a rigorous program of study for CTE 
students is that links secondary and postsecondary education, to 
culminate in a degree or a credit or a credential or a license or an 
apprenticeship or a postsecondary certificate.
  It emphasizes the opportunities for secondary students to earn 
college or postsecondary credits while they are in high school. I was 
able to graduate from college in 3 years because of credits I earned in 
high school. That was at a time when it was critically important 
financially for my family that I was able to get through college in 3 
years.
  This dual enrollment piece of our bill is a piece that Senator 
Portman worked very hard to make sure was included. The legislation 
allows the Perkins funding to be used by States that want to establish 
CTE academies as we did in Virginia and ensures that the academies are 
of a high quality.
  Finally, the bill promotes the kinds of partnerships we need between 
businesses, industries, postsecondary and other community stakeholders. 
Partnerships are important to connect people to the workforce. The 
Southern Regional Education Board cites that students with highly 
integrated CTE programs, where the CTE programs and the academic 
programs are integrated together, that those schools have significantly 
higher achievement rates in reading, mathematics, and sciences than 
students at schools that do not have integrated programs.
  In closing, and then I defer to my colleague from Ohio, I noticed 
something when I was mayor of Richmond and Governor that was a change 
in the kind of economic development world. As mayor, I was often trying 
to get a business to come to Richmond. I was competing against Savannah 
or against the county next door. What I found was in these 
competitions, the closing factor was always the incentive package: Mr. 
Mayor, how much money can you put on the table? What kind of tax 
incentives can you put on the table?
  Oh, you either beat the other guy or you don't. But by the time I--5, 
6, 7 years later I was Governor, the last issue now was not the 
incentive package anymore. The deciding issue for companies that were 
choosing whether to come to Virginia or South Carolina or Singapore was 
not the tax incentives, it was the workforce.
  Tell me, Governor, that we will have the kind of people we need when 
we open the door tomorrow. Give me confidence that we will have the 
kind of people we need 20 years from now. Long after the ribbon has 
been cut and the photos have been taken, are we still going to have the 
kinds of people we need to do to the kind of work that has to be done?
  In today's world, talent is the most precious asset--more than oil, 
more

[[Page S4408]]

than water, more than rare Earth minerals. It is talent and human 
capital that is precious. Recently we did something good in this body, 
Democrats and Republicans together. We passed the Workforce Innovation 
and Opportunity Act. It was passed in the House yesterday.
  This looks at the Nation's workforce programs and makes them 
stronger. Now we have to make the policy changes that go into our 
education programs and match what we did in the WIOA reauthorization to 
prepare our students for a 21st century workforce. I very much hope the 
Senate moves forward on the Carl D. Perkins Act this year. I look 
forward to promoting this bill as part of that reauthorization. I am 
honored to have Senator Portman, my cochair on the CTE caucus, as the 
cosponsor of this legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2584

       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 ``Educating Tomorrow's 
     Workforce Act of 2014.''.

     SEC. 2. DEFINITIONS.

       Section 3 of the Carl D. Perkins Career and Technical 
     Education Act of 2006 (20 U.S.C. 2302) is amended--
       (1) by redesignating paragraphs (6) through (9), (10) 
     through (23), and (24) through (34), as paragraphs (7) 
     through (10), (12) through (25), and (27) through (37), 
     respectively;
       (2) by inserting after paragraph (5) the following:
       ``(6) Career and technical education program of study.--The 
     term `career and technical education program of study' means 
     a coordinated, non-duplicative sequence of secondary and 
     postsecondary academic and technical courses that--
       ``(A) incorporate rigorous, State-identified college and 
     career readiness standards, including state-identified career 
     and technical education standards that address both academic 
     and technical contents;
       ``(B) support attainment of employability and career 
     readiness skills;
       ``(C) progress in content specificity (by beginning with 
     all aspects of an industry or career cluster and leading to 
     more occupationally specific instruction or by preparing 
     students for ongoing postsecondary career preparation);
       ``(D) incorporate multiple entry and exit points with 
     portable demonstrations of technical or career competency, 
     which may include credit-transfer agreements or industry-
     recognized certifications; and
       ``(E) culminate in the attainment of--
       ``(i) an industry-recognized certification, credential, or 
     license;
       ``(ii) a registered apprenticeship or credit-bearing 
     postsecondary certificate; or
       ``(iii) an associate or baccalaureate degree.'';
       (3) by inserting after paragraph (10), as redesignated by 
     paragraph (1), the following:
       ``(11) Credit-transfer agreement.--The term `credit-
     transfer agreement' means an opportunity for secondary 
     students to be awarded transcripted postsecondary credit, 
     supported with a formal agreement between secondary and 
     postsecondary education systems, for--
       ``(A) technical credit such as dual enrollment, dual 
     credit, or articulated credit, which may include credit by 
     examination or credit by performance on technical 
     assessments; or
       ``(B) academic credit such as dual enrollment, dual credit, 
     or articulated credit, which may include credit by 
     examination or credit by performance on academic 
     assessments.''; and
       (4) by inserting after paragraph (25), as redesignated by 
     paragraph (1), the following:
       ``(26) Registered apprenticeship program.--The term 
     `registered apprenticeship program' means an apprenticeship 
     program--
       ``(A) registered under the Act of August 16, 1937 (commonly 
     known as the ``National Apprenticeship Act''; 50 Stat. 664, 
     chapter 663; 29 U.S.C. 50 et seq.); and
       ``(B) that meets such other criteria as may be established 
     by the Secretary under this section.''.

     SEC. 3. STATE PLAN.

       Section 122(c)(1) of the Carl D. Perkins Career and 
     Technical Education Act of 2006 (20 U.S.C. 2342(c)(1)) is 
     amended--
       (1) by striking subparagraph (A);
       (2) by redesignating subparagraphs (B) through (L) as 
     subparagraphs (A) through (K), respectively; and
       (3) in subparagraph (A), as redesignated by (2), by 
     striking ``the career and technical programs of study 
     described in subparagraph (A)'' and inserting ``career and 
     technical education programs of study, including a 
     description of how the eligible agency will ensure the 
     quality of any program of study culminating in an industry-
     recognized certificate, credential, or license''.

     SEC. 4. STATE LEADERSHIP ACTIVITIES.

       Section 124 of the Carl D. Perkins Career and Technical 
     Education Act of 2006 (20 U.S.C. 2344) is amended--
       (1) in subsection (b)(6), by striking ``programs of study, 
     as described in section 122(c)(1)(A)'' and inserting 
     ``education programs of study''; and
       (2) in subsection (c)--
       (A) in paragraph (9), by striking ``,career academies,'';
       (B) in paragraph (16)(B), by striking ``and'' after the 
     semicolon;
       (C) in paragraph (17), by striking the period at the end 
     and inserting ``; and''; and
       (D) by adding at the end the following:
       ``(18) support for career academies, which--
       ``(A) implement a college and career ready curriculum at 
     the secondary education level that integrates rigorous 
     academic, technical, and employability contents through 
     career and technical education programs of study and high-
     quality elements, including those described in section 
     134(b)(7);
       ``(B) include experiential or work-based learning for 
     secondary school students, in collaboration with local and 
     regional employers;
       ``(C) include opportunities for secondary school students 
     to earn postsecondary credit while in secondary school, such 
     as through credit transfer agreements including dual 
     enrollment; and
       ``(D) establish and maintain ongoing partnerships--
       ``(i) between the local educational agency, business and 
     industry, and institutions of higher education, or 
     postsecondary vocational institutions (as defined in section 
     102(c) of the Higher Education Act of 1965 (20 U.S.C. 
     1002(c))); and
       ``(ii) which may also include local government, such as 
     workforce and economic development entities.''.

     SEC. 5. LOCAL PLAN FOR CAREER AND TECHNICAL EDUCATION 
                   PROGRAMS.

       Section 134(b) of the Carl D. Perkins Career and Technical 
     Education Act of 2006 (20 U.S.C. 2354(b)) is amended--
       (1) in paragraph (3)(A), by striking ``programs of study 
     described in section 122(c)(1)(A)'' and inserting ``education 
     programs of study''; and
       (2) by striking paragraph (7) and inserting the following:
       ``(7) describe how the eligible recipient will conduct an 
     assessment of local needs related to career and technical 
     education as part of the local plan development process and 
     how such needs assessment will be updated annually in 
     subsequent years of the local plan, including how the needs 
     assessment includes an evaluation of progress toward specific 
     elements leading to high-quality implementation of career and 
     technical education programs of study, including--
       ``(A) sustained, intensive, and focused professional 
     development for teachers, principals, administrators, and 
     school counselors on both content and pedagogy that--
       ``(i) supports high-quality academic and career and 
     technical education instruction; and
       ``(ii) ensures local, regional, and State labor market 
     information as applicable is utilized to make informed 
     decisions about program offerings and to advise students of 
     career opportunities and benefits;
       ``(B) a curriculum aligned with the requirements for a 
     career and technical education program of study;
       ``(C) teaching and learning strategies focused on the 
     integration of academic and career and technical education 
     content, including supports necessary to implement such 
     strategies;
       ``(D) ongoing relationships between education, business and 
     industry, and other community stakeholders;
       ``(E) opportunities for secondary students to earn 
     postsecondary credit while in secondary school, such as 
     through credit transfer agreements including dual enrollment;
       ``(F) career and technical student organizations, or other 
     activities that promote the development of leadership and 
     employability skills;
       ``(G) appropriate equipment and technology aligned with 
     business and industry needs;
       ``(H) a continuum of work-based learning opportunities, 
     such as job shadowing, mentorships, internships, 
     apprenticeships, clinical experiences, service learning 
     experiences, and cooperative education;
       ``(I) valid and reliable technical skills assessments to 
     measure student achievement, which may include industry-
     recognized certifications or may lead to other credentials;
       ``(J) support services to ensure equitable participation 
     for all students; and
       ``(K) recruitment and retention efforts to ensure highly 
     effective educators, principals, and administrators.''.

     SEC. 6. LOCAL USES OF FUNDS.

       Section 135 of the Carl D. Perkins Career and Technical 
     Education Act of 2006 (20 U.S.C. 2355) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking ``programs of study 
     described in section 122(c)(1)(A)''; and inserting 
     ``education programs of study''; and
       (B) in paragraph (2), by striking ``career and technical 
     program of study described in section 122(c)(1)(A)'' and 
     inserting ``career and technical education program of 
     study''; and
       (2) in subsection (c)--
       (A) in paragraph (19)--
       (i) in subparagraph (C), by striking ``programs of study 
     described in section

[[Page S4409]]

     122(c)(1)(A)'' and inserting ``education programs of study''; 
     and
       (ii) in subparagraph (D), by striking ``and'' after the 
     semicolon;
       (B) in paragraph (20), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(21) to provide support for career academies, as 
     described in section 124(c)(18).''.

     SEC. 7. CONFORMING AMENDMENTS.

       Section 113 of the Carl D. Perkins Career and Technical 
     Education Act of 2006 (20 U.S.C. 2323) is amended--
       (1) in subsection (b)(4)(C)(ii)(I), by striking ``section 
     3(29)'' and inserting ``section 3(32)''; and
       (2) in subsection (c)(2)(A), by striking ``section 3(29)'' 
     and inserting ``section 3(32)''.
  Mr. PORTMAN. Mr. President, I thank my colleague from Virginia and 
appreciate his comments. He has a passion for this issue. It fits very 
well with what so many of us are trying to do in the Congress, which is 
to put in place policies that actually create more opportunities for 
our young people.
  We are living through the weakest economic recovery we have had in 
this country since the Great Depression. I know we have seen some 
improvement recently in the job numbers, but in fact unemployment 
remains way too high. If we take into account folks who have dropped 
out of the workforce altogether as compared to 4 or 5 years ago, we 
have unemployment rates at over 10 percent.
  Among young people coming out of school it is far higher. It is 
double digits, about 12 or 13 percent for 18 to 25 year olds, we are 
told. Again, the real numbers are worse than that when we take out the 
folks who have dropped out of the workforce altogether.
  Our GDP growth, the growth of our economy, is too low. So there are a 
number of things we ought to do, in my view. One is, we have to deal 
with ensuring that we have a workforce that is trained for these 21st 
century jobs that are out there. We also need to reform our Tax Code. 
We need to put regulatory relief in place that is sensible. We need to 
do much more to take advantage of the energy resources we have in this 
country. We need to get back in the business of exporting and trade.
  There are some things relatively quickly we could do to get the 
country back on track, but none is more important than having that 
workforce. Because we can have a great environment--which unfortunately 
we do not have now for many businesses because we have not created the 
climate for economic growth with good policy in Washington.
  But if we had that--if we do not have the workers in this 
increasingly competitive global economy we are in, jobs will be created 
somewhere else. That is happening right now. It is happening partly 
because we do not have the skilled workers to be able to attract those 
jobs here, those businesses here, and to fill the jobs here in America.
  Four and one-half million jobs are open right now, they say. That 
might surprise some people listening because they are thinking: Wow. I 
cannot get a job or my son or daughter cannot get a job or my neighbor 
cannot get a job. As I said, unemployment is high. Yet there are 4\1/2\ 
million jobs open. When we look at those jobs and what is available out 
there--and Senator Kaine talked some about this, a lot of them require 
skills that young people and workers who are shifting careers, maybe 
they have lost a job, are in their forties or fifties, skills they do 
not have.
  So it is IT, it is high-tech jobs, it is health care jobs, it is 
bioscience jobs. Yes, it is manufacturing jobs. My own State of Ohio is 
a big manufacturing State. We are particularly sensitive to this. There 
are lots of manufacturers in Ohio who are saying: If we had the 
workers, we could add new jobs, new opportunities, grow this economy. 
The spinoff from that, all of the other jobs that are created through a 
successful manufacturing company that makes something is the backbone 
of our higher economy, international economy.
  This is exciting for me to work with Senator Kaine and others who 
say: Let's take a piece of this, which is career and technical 
education, to encourage young people to get these skills, to be able to 
access these great jobs. Some of them, by the way, will do it right out 
of high school.
  I was in Ohio on Monday. We had a roundtable on this. We had a bunch 
of employers there. We had some educators there. We had some students 
there. One was a senior in high school who is currently in career and 
technical school. For those who do not follow this closely, you 
probably are more familiar with the word ``vocational'' school, because 
that is typically what it has been called over the years. That is the 
same thing as the career and technical schools.
  Again, Senator Kaine and I have cofounded this Career and Technical 
Education Caucus in the Senate over the last couple of months. We have 
a number of our colleagues now joining and so on. We are trying to 
raise this, let people know about this great opportunity out there.
  This young man is a senior. He is going back to his high school and 
saying: You Guys are crazy not to do this CTE stuff because I am 
getting great skills, where I can get a great job, and I am getting 
college credit because they have one of those dual credit programs in 
this particular CTE program.
  Then there were two students there who graduated earlier this year. 
They both have been in the CTE program. They both have been taking 
advantage of it to get the skills but also working part time as 
apprentices or interns--19 years old, two young men. Both of them are 
now out in the workforce, working for these manufacturers. One of their 
bosses was there, one of the executives from one of the small 
manufacturing companies.
  These young men at 19 years old are making $50,000 a year. They have 
benefits on top of that. They have the opportunity now to run very 
sophisticated machines. Both of them started off learning as 
apprentices. Now they are both running machines. These machines are 
worth over $1 million apiece. These are in CNC machines. In one case it 
is a plastic injecting molding machine. It is very exciting. By the 
way, they now have been encouraged to go back to their high school and 
say: Hey, 4-year college or university, that is great if you want to do 
that, but here is another opportunity.
  By the way, they may go back to school. They both have some credit 
where they could go back and maybe get an associate's degree or a 4-
year degree or maybe a graduate engineering degree someday, but in the 
meantime they are providing the opportunities for these companies in 
Ohio to have skilled workers so they can compete globally. For them and 
their families, they are providing a tremendous opportunity, rather 
than graduating with a bunch of debt. The average debt is $20,000, 
$30,000 a year now. Instead of having debt, they are making money.
  For the next 4 years, even if they are not promoted 0--0 which I 
think they will be, having met these two young men--that is $200,000 
they are going to be making and spending and investing in our economy.
  I am very excited about this opportunity to hold this up to say there 
is a way for us to help get this economy moving by helping to fill this 
skills gap. In Ohio alone, if you go on ohiomeansjobs.com right now, go 
on their Web site, you will see about 140,000 jobs open. Yet we have 
about 400,000 people out of work. If you look at these jobs, again, you 
will see a lot of them require skills that simply are not out there in 
the workforce now.
  Help provide these skills and we are going to see some of these jobs 
get filled. That helps our economy, keeps businesses here, and expands 
businesses here. We did, as Senator Kaine said, just pass the Workforce 
Innovation and Opportunity Act, so-called WIOA. I was very pleased 
about that. The House just passed it this week. The Senate passed it 2 
weeks ago.
  In that there is something called the CAREER Act that Senator Bennet 
and I have been promoting the last few years. We were able to include a 
number of our provisions in there to add more accountability, to add 
more performance measures to improve that legislation. I am happy that 
was done. That helps on retraining. That is critically important. We 
spend about $15 billion a year on that at the Federal Government level.
  What we are talking about is starting with the career and technical 
education even before we get into the WIOA programs and the retraining 
money that is necessary when somebody loses a job and needs to move to 
another job. We are talking about young people coming up and having 
this opportunity. According to the U.S.

[[Page S4410]]

Bureau of Labor Statistics, Ohio is gaining jobs in manufacturing. That 
is great news. But we also hear, in the latest skills gap report by the 
Manufacturing Institute, 74 percent of manufacturers are experiencing 
workforce shortages or skill deficiencies that keep them from expanding 
their plant and operations and improving productivity--74 percent.
  We could be doing much more to close that skills gap. The legislation 
that Senator Kaine and I talked about that we are introducing today is 
a very important step toward that. It is going to help open 
opportunities for the next generation of workers by ensuring that they 
have these skills to participate in the 21st century economy.
  We were talking a moment ago, some of us, about high school 
graduation rates. Unfortunately, we have unacceptably high numbers of 
people who do not graduate from high schools in this country. So there 
was a lot of discussion about postsecondary and so on. But we have a 
real problem: Our high school graduation rate is way too low. According 
to the U.S. Department of Education, 81 percent of high school dropouts 
say real-world learning opportunities would have kept them in school. 
That is interesting. The average high school graduation rate is now 
about 80 percent--way too low. In fact, it is closer to 50 percent in 
some of our great cities and in some of our poorer rural areas. But 
even 80 percent is the average--way too low for high school graduation.
  But what they say is they would have been more likely to stay in 
school if they had real-world learning opportunities. That is why the 
graduation rates for kids involved in CTE--
  The PRESIDING OFFICER. The Senator's time has expired.
  Mr. PORTMAN. I would ask unanimous consent for 2 additional minutes.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. PORTMAN. For kids in CTE concentrations, it is a 90-percent 
graduation rate. That is because they are getting that real-world 
experience. So I think a good place to start, again, is with this 
legislation we are introducing today. This is legislation that begins 
with reforms to the Carl D. Perkins Career and Technical Education Act. 
It needs to be reauthorized. The reauthorization ought to include these 
reforms that Senator Kaine and I have talked about.

  This is the major source of Federal support for the development of 
CTE skills. It was last reauthorized in 2006. So it has to be 
modernized to meet the demands of this workforce today to ensure that 
students have access to these programs.
  It does a few different things. Senator Kaine has talked about it. It 
requires a more rigorous CTE curriculum, requiring Perkins grant 
participants to incorporate key elements into the programs; that is, 
things such as academic and technical skill assessments to measure 
student achievement, making sure they are actually accomplishing what 
they are supposed to be based on industry standards, making sure the 
CTE curriculum is in alignment with whatever the local and regional 
needs are in the workforce, what the demands are. Employers are looking 
for kids who have specific skills. We have to be sure we are providing 
them.
  It also increases flexibility for States and localities, allowing 
them to use these Perkins grant funds to establish academies such as 
the one Governor Kaine started when he was in Virginia.
  It also improves the link between high school and postsecondary 
education to ease the attainment of industry-recognized credentials, 
licensing, apprenticeship, postsecondary certificates. We do a lot of 
that in Ohio, the dual credit programs I talked about earlier.
  It promotes partnerships between local businesses, regional 
industries, and other community stakeholders to create pathways for 
students through more internships, service opportunities, and so on.
  I believe this legislation is urgently needed, and we have to move 
forward with it. If we do, we are going to be able to provide more 
opportunity for our young people and more jobs in this country because 
we will be filling that skills gap and we will be able to have more 
young people who will able to have this experience, such as these two 
young men I met earlier this week, where they are able to go out on 
their own, get a good job, good benefits, help themselves and their 
family, and help create a stronger economy for all of us.
  I thank my colleague from Virginia for his hard work on this 
legislation, and I look forward to working with him toward its passage.
                                 ______
                                 
      By Mr. DURBIN (for himself, Mr. Harkin, Mr. Whitehouse, Mr. 
        Brown, and Mr. Franken):
  S. 2589. A bill to amend title 11, United States Code, to improve 
protections for employees and retirees in business bankruptcies; to the 
Committee on the Judiciary.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2589

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Protecting 
     Employees and Retirees in Business Bankruptcies Act of 
     2014''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.

        TITLE I--IMPROVING RECOVERIES FOR EMPLOYEES AND RETIREES

Sec. 101. Increased wage priority.
Sec. 102. Claim for stock value losses in defined contribution plans.
Sec. 103. Priority for severance pay.
Sec. 104. Financial returns for employees and retirees.
Sec. 105. Priority for WARN Act damages.

           TITLE II--REDUCING EMPLOYEES' AND RETIREES' LOSSES

Sec. 201. Rejection of collective bargaining agreements.
Sec. 202. Payment of insurance benefits to retired employees.
Sec. 203. Protection of employee benefits in a sale of assets.
Sec. 204. Claim for pension losses.
Sec. 205. Payments by secured lender.
Sec. 206. Preservation of jobs and benefits.
Sec. 207. Termination of exclusivity.
Sec. 208. Claim for withdrawal liability.

         TITLE III--RESTRICTING EXECUTIVE COMPENSATION PROGRAMS

Sec. 301. Executive compensation upon exit from bankruptcy.
Sec. 302. Limitations on executive compensation enhancements.
Sec. 303. Assumption of executive benefit plans.
Sec. 304. Recovery of executive compensation.
Sec. 305. Preferential compensation transfer.

                       TITLE IV--OTHER PROVISIONS

Sec. 401. Union proof of claim.
Sec. 402. Exception from automatic stay.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) Business bankruptcies have increased sharply in recent 
     years and remain at high levels. These bankruptcies include 
     several of the largest business bankruptcy filings in 
     history. As the use of bankruptcy has expanded, job 
     preservation and retirement security are placed at greater 
     risk.
       (2) Laws enacted to improve recoveries for employees and 
     retirees and limit their losses in bankruptcy cases have not 
     kept pace with the increasing and broader use of bankruptcy 
     by businesses in all sectors of the economy. However, while 
     protections for employees and retirees in bankruptcy cases 
     have eroded, management compensation plans devised for those 
     in charge of troubled businesses have become more prevalent 
     and are escaping adequate scrutiny.
       (3) Changes in the law regarding these matters are urgently 
     needed as bankruptcy is used to address increasingly more 
     complex and diverse conditions affecting troubled businesses 
     and industries.

        TITLE I--IMPROVING RECOVERIES FOR EMPLOYEES AND RETIREES

     SEC. 101. INCREASED WAGE PRIORITY.

       Section 507(a) of title 11, United States Code, is 
     amended--
       (1) in paragraph (4)--
       (A) by striking ``$10,000'' and inserting ``$20,000'';
       (B) by striking ``within 180 days''; and
       (C) by striking ``or the date of the cessation of the 
     debtor's business, whichever occurs first,'';
       (2) in paragraph (5)(A), by striking--
       (A) ``within 180 days''; and
       (B) ``or the date of the cessation of the debtor's 
     business, whichever occurs first''; and
       (3) in paragraph (5), by striking subparagraph (B) and 
     inserting the following:
       ``(B) for each such plan, to the extent of the number of 
     employees covered by each such plan, multiplied by 
     $20,000.''.

     SEC. 102. CLAIM FOR STOCK VALUE LOSSES IN DEFINED 
                   CONTRIBUTION PLANS.

       Section 101(5) of title 11, United States Code, is 
     amended--
       (1) in subparagraph (A), by striking ``or'' at the end;

[[Page S4411]]

       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(C) right or interest in equity securities of the debtor, 
     or an affiliate of the debtor, held in a defined contribution 
     plan (within the meaning of section 3(34) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1002(34))) 
     for the benefit of an individual who is not an insider, a 
     senior executive officer, or any of the 20 next most highly 
     compensated employees of the debtor (if 1 or more are not 
     insiders), if such securities were attributable to either 
     employer contributions by the debtor or an affiliate of the 
     debtor, or elective deferrals (within the meaning of section 
     402(g) of the Internal Revenue Code of 1986), and any 
     earnings thereon, if an employer or plan sponsor who has 
     commenced a case under this title has committed fraud with 
     respect to such plan or has otherwise breached a duty to the 
     participant that has proximately caused the loss of value.''.

     SEC. 103. PRIORITY FOR SEVERANCE PAY.

       Section 503(b) of title 11, United States Code, is 
     amended--
       (1) in paragraph (8), by striking ``and'' at the end;
       (2) in paragraph (9), by striking the period and inserting 
     a semicolon; and
       (3) by adding at the end the following:
       ``(10) severance pay owed to employees of the debtor (other 
     than to an insider, other senior management, or a consultant 
     retained to provide services to the debtor), under a plan, 
     program, or policy generally applicable to employees of the 
     debtor (but not under an individual contract of employment), 
     or owed pursuant to a collective bargaining agreement, for 
     layoff or termination on or after the date of the filing of 
     the petition, which pay shall be deemed earned in full upon 
     such layoff or termination of employment; and''.

     SEC. 104. FINANCIAL RETURNS FOR EMPLOYEES AND RETIREES.

       Section 1129(a) of title 11, United States Code is 
     amended--
       (1) by adding at the end the following:
       ``(17) The plan provides for recovery of damages payable 
     for the rejection of a collective bargaining agreement, or 
     for other financial returns as negotiated by the debtor and 
     the authorized representative under section 1113 (to the 
     extent that such returns are paid under, rather than outside 
     of, a plan).''; and
       (2) by striking paragraph (13) and inserting the following:
       ``(13) With respect to retiree benefits, as that term is 
     defined in section 1114(a), the plan--
       ``(A) provides for the continuation after its effective 
     date of payment of all retiree benefits at the level 
     established pursuant to subsection (e)(1)(B) or (g) of 
     section 1114 at any time before the date of confirmation of 
     the plan, for the duration of the period for which the debtor 
     has obligated itself to provide such benefits, or if no 
     modifications are made before confirmation of the plan, the 
     continuation of all such retiree benefits maintained or 
     established in whole or in part by the debtor before the date 
     of the filing of the petition; and
       ``(B) provides for recovery of claims arising from the 
     modification of retiree benefits or for other financial 
     returns, as negotiated by the debtor and the authorized 
     representative (to the extent that such returns are paid 
     under, rather than outside of, a plan).''.

     SEC. 105. PRIORITY FOR WARN ACT DAMAGES.

       Section 503(b)(1)(A)(ii) of title 11, United States Code is 
     amended to read as follows:
       ``(ii) wages and benefits awarded pursuant to a judicial 
     proceeding or a proceeding of the National Labor Relations 
     Board as back pay or damages attributable to any period of 
     time occurring after the date of commencement of the case 
     under this title, as a result of a violation of Federal or 
     State law by the debtor, without regard to the time of the 
     occurrence of unlawful conduct on which the award is based or 
     to whether any services were rendered on or after the 
     commencement of the case, including an award by a court under 
     section 2901 of title 29, United States Code, of up to 60 
     days' pay and benefits following a layoff that occurred or 
     commenced at a time when such award period includes a period 
     on or after the commencement of the case, if the court 
     determines that payment of wages and benefits by reason of 
     the operation of this clause will not substantially increase 
     the probability of layoff or termination of current employees 
     or of nonpayment of domestic support obligations during the 
     case under this title;''.

           TITLE II--REDUCING EMPLOYEES' AND RETIREES' LOSSES

     SEC. 201. REJECTION OF COLLECTIVE BARGAINING AGREEMENTS.

       Section 1113 of title 11, United States Code, is amended by 
     striking subsections (a) through (f) and inserting the 
     following:
       ``(a) The debtor in possession, or the trustee if one has 
     been appointed under this chapter, other than a trustee in a 
     case covered by subchapter IV of this chapter and by title I 
     of the Railway Labor Act, may reject a collective bargaining 
     agreement only in accordance with this section. In this 
     section, a reference to the trustee includes the debtor in 
     possession.
       ``(b) No provision of this title shall be construed to 
     permit the trustee to unilaterally terminate or alter any 
     provision of a collective bargaining agreement before 
     complying with this section. The trustee shall timely pay all 
     monetary obligations arising under the terms of the 
     collective bargaining agreement. Any such payment required to 
     be made before a plan confirmed under section 1129 is 
     effective has the status of an allowed administrative expense 
     under section 503.
       ``(c)(1) If the trustee seeks modification of a collective 
     bargaining agreement, the trustee shall provide notice to the 
     labor organization representing the employees covered by the 
     agreement that modifications are being proposed under this 
     section, and shall promptly provide an initial proposal for 
     modifications to the agreement. Thereafter, the trustee shall 
     confer in good faith with the labor organization, at 
     reasonable times and for a reasonable period in light of the 
     complexity of the case, in attempting to reach mutually 
     acceptable modifications of such agreement.
       ``(2) The initial proposal and subsequent proposals by the 
     trustee for modification of a collective bargaining agreement 
     shall be based upon a business plan for the reorganization of 
     the debtor, and shall reflect the most complete and reliable 
     information available. The trustee shall provide to the labor 
     organization all information that is relevant for 
     negotiations. The court may enter a protective order to 
     prevent the disclosure of information if disclosure could 
     compromise the debtor's position with respect to its 
     competitors in the industry, subject to the needs of the 
     labor organization to evaluate the trustee's proposals and 
     any application for rejection of the agreement or for interim 
     relief pursuant to this section.
       ``(3) In consideration of Federal policy encouraging the 
     practice and process of collective bargaining and in 
     recognition of the bargained-for expectations of the 
     employees covered by the agreement, modifications proposed by 
     the trustee--
       ``(A) shall be proposed only as part of a program of 
     workforce and nonworkforce cost savings devised for the 
     reorganization of the debtor, including savings in management 
     personnel costs;
       ``(B) shall be limited to modifications designed to achieve 
     a specified aggregate financial contribution for the 
     employees covered by the agreement (taking into consideration 
     any labor cost savings negotiated within the 12-month period 
     before the filing of the petition), and shall be not more 
     than the minimum savings essential to permit the debtor to 
     exit bankruptcy, such that confirmation of a plan of 
     reorganization is not likely to be followed by the 
     liquidation, or the need for further financial 
     reorganization, of the debtor (or any successor to the 
     debtor) in the short term; and
       ``(C) shall not be disproportionate or overly burden the 
     employees covered by the agreement, either in the amount of 
     the cost savings sought from such employees or the nature of 
     the modifications.
       ``(d)(1) If, after a period of negotiations, the trustee 
     and the labor organization have not reached an agreement over 
     mutually satisfactory modifications, and further negotiations 
     are not likely to produce mutually satisfactory 
     modifications, the trustee may file a motion seeking 
     rejection of the collective bargaining agreement after notice 
     and a hearing. Absent agreement of the parties, no such 
     hearing shall be held before the expiration of the 21-day 
     period beginning on the date on which notice of the hearing 
     is provided to the labor organization representing the 
     employees covered by the agreement. Only the debtor and the 
     labor organization may appear and be heard at such hearing. 
     An application for rejection shall seek rejection effective 
     upon the entry of an order granting the relief.
       ``(2) In consideration of Federal policy encouraging the 
     practice and process of collective bargaining and in 
     recognition of the bargained-for expectations of the 
     employees covered by the agreement, the court may grant a 
     motion seeking rejection of a collective bargaining agreement 
     only if, based on clear and convincing evidence--
       ``(A) the court finds that the trustee has complied with 
     the requirements of subsection (c);
       ``(B) the court has considered alternative proposals by the 
     labor organization and has concluded that such proposals do 
     not meet the requirements of paragraph (3)(B) of subsection 
     (c);
       ``(C) the court finds that further negotiations regarding 
     the trustee's proposal or an alternative proposal by the 
     labor organization are not likely to produce an agreement;
       ``(D) the court finds that implementation of the trustee's 
     proposal shall not--
       ``(i) cause a material diminution in the purchasing power 
     of the employees covered by the agreement;
       ``(ii) adversely affect the ability of the debtor to retain 
     an experienced and qualified workforce; or
       ``(iii) impair the debtor's labor relations such that the 
     ability to achieve a feasible reorganization would be 
     compromised; and
       ``(E) the court concludes that rejection of the agreement 
     and immediate implementation of the trustee's proposal is 
     essential to permit the debtor to exit bankruptcy, such that 
     confirmation of a plan of reorganization is not likely to be 
     followed by liquidation, or the need for further financial 
     reorganization, of the debtor (or any successor to the 
     debtor) in the short term.
       ``(3) If the trustee has implemented a program of incentive 
     pay, bonuses, or other financial returns for insiders, senior 
     executive officers, or the 20 next most highly compensated 
     employees or consultants providing services to the debtor 
     during the bankruptcy, or such a program was implemented

[[Page S4412]]

     within 180 days before the date of the filing of the 
     petition, the court shall presume that the trustee has failed 
     to satisfy the requirements of subsection (c)(3)(C).
       ``(4) In no case shall the court enter an order rejecting a 
     collective bargaining agreement that would result in 
     modifications to a level lower than the level proposed by the 
     trustee in the proposal found by the court to have complied 
     with the requirements of this section.
       ``(5) At any time after the date on which an order 
     rejecting a collective bargaining agreement is entered, or in 
     the case of an agreement entered into between the trustee and 
     the labor organization providing mutually satisfactory 
     modifications, at any time after such agreement has been 
     entered into, the labor organization may apply to the court 
     for an order seeking an increase in the level of wages or 
     benefits, or relief from working conditions, based upon 
     changed circumstances. The court shall grant the request only 
     if the increase or other relief is not inconsistent with the 
     standard set forth in paragraph (2)(E).
       ``(e) During a period in which a collective bargaining 
     agreement at issue under this section continues in effect, 
     and if essential to the continuation of the debtor's business 
     or in order to avoid irreparable damage to the estate, the 
     court, after notice and a hearing, may authorize the trustee 
     to implement interim changes in the terms, conditions, wages, 
     benefits, or work rules provided by the collective bargaining 
     agreement. Any hearing under this subsection shall be 
     scheduled in accordance with the needs of the trustee. The 
     implementation of such interim changes shall not render the 
     application for rejection moot.
       ``(f)(1) Rejection of a collective bargaining agreement 
     constitutes a breach of the agreement, and shall be effective 
     no earlier than the entry of an order granting such relief.
       ``(2) Notwithstanding paragraph (1), solely for purposes of 
     determining and allowing a claim arising from the rejection 
     of a collective bargaining agreement, rejection shall be 
     treated as rejection of an executory contract under section 
     365(g) and shall be allowed or disallowed in accordance with 
     section 502(g)(1). No claim for rejection damages shall be 
     limited by section 502(b)(7). Economic self-help by a labor 
     organization shall be permitted upon a court order granting a 
     motion to reject a collective bargaining agreement under 
     subsection (d) or pursuant to subsection (e), and no 
     provision of this title or of any other provision of Federal 
     or State law may be construed to the contrary.
       ``(g) The trustee shall provide for the reasonable fees and 
     costs incurred by a labor organization under this section, 
     upon request and after notice and a hearing.
       ``(h) A collective bargaining agreement that is assumed 
     shall be assumed in accordance with section 365.''.

     SEC. 202. PAYMENT OF INSURANCE BENEFITS TO RETIRED EMPLOYEES.

       Section 1114 of title 11, United States Code, is amended--
       (1) in subsection (a), by inserting ``, without regard to 
     whether the debtor asserts a right to unilaterally modify 
     such payments under such plan, fund, or program'' before the 
     period at the end;
       (2) in subsection (b)(2), by inserting after ``section'' 
     the following: ``, and a labor organization serving as the 
     authorized representative under subsection (c)(1),'';
       (3) by striking subsection (f) and inserting the following:
       ``(f)(1) If a trustee seeks modification of retiree 
     benefits, the trustee shall provide a notice to the 
     authorized representative that modifications are being 
     proposed pursuant to this section, and shall promptly provide 
     an initial proposal. Thereafter, the trustee shall confer in 
     good faith with the authorized representative at reasonable 
     times and for a reasonable period in light of the complexity 
     of the case in attempting to reach mutually satisfactory 
     modifications.
       ``(2) The initial proposal and subsequent proposals by the 
     trustee shall be based upon a business plan for the 
     reorganization of the debtor and shall reflect the most 
     complete and reliable information available. The trustee 
     shall provide to the authorized representative all 
     information that is relevant for the negotiations. The court 
     may enter a protective order to prevent the disclosure of 
     information if disclosure could compromise the debtor's 
     position with respect to its competitors in the industry, 
     subject to the needs of the authorized representative to 
     evaluate the trustee's proposals and an application pursuant 
     to subsection (g) or (h).
       ``(3) Modifications proposed by the trustee--
       ``(A) shall be proposed only as part of a program of 
     workforce and nonworkforce cost savings devised for the 
     reorganization of the debtor, including savings in management 
     personnel costs;
       ``(B) shall be limited to modifications that are designed 
     to achieve a specified aggregate financial contribution for 
     the retiree group represented by the authorized 
     representative (taking into consideration any cost savings 
     implemented within the 12-month period before the date of 
     filing of the petition with respect to the retiree group), 
     and shall be no more than the minimum savings essential to 
     permit the debtor to exit bankruptcy, such that confirmation 
     of a plan of reorganization is not likely to be followed by 
     the liquidation, or the need for further financial 
     reorganization, of the debtor (or any successor to the 
     debtor) in the short term; and
       ``(C) shall not be disproportionate or overly burden the 
     retiree group, either in the amount of the cost savings 
     sought from such group or the nature of the modifications.'';
       (4) in subsection (g)--
       (A) by striking ``(g)'' and all that follows through the 
     semicolon at the end of paragraph (3) and inserting the 
     following:
       ``(g)(1) If, after a period of negotiations, the trustee 
     and the authorized representative have not reached agreement 
     over mutually satisfactory modifications and further 
     negotiations are not likely to produce mutually satisfactory 
     modifications, the trustee may file a motion seeking 
     modifications in the payment of retiree benefits after notice 
     and a hearing. Absent agreement of the parties, no such 
     hearing shall be held before the expiration of the 21-day 
     period beginning on the date on which notice of the hearing 
     is provided to the authorized representative. Only the debtor 
     and the authorized representative may appear and be heard at 
     such hearing.
       ``(2) The court may grant a motion to modify the payment of 
     retiree benefits only if, based on clear and convincing 
     evidence--
       ``(A) the court finds that the trustee has complied with 
     the requirements of subsection (f);
       ``(B) the court has considered alternative proposals by the 
     authorized representative and has determined that such 
     proposals do not meet the requirements of subsection 
     (f)(3)(B);
       ``(C) the court finds that further negotiations regarding 
     the trustee's proposal or an alternative proposal by the 
     authorized representative are not likely to produce a 
     mutually satisfactory agreement;
       ``(D) the court finds that implementation of the proposal 
     shall not cause irreparable harm to the affected retirees; 
     and
       ``(E) the court concludes that an order granting the motion 
     and immediate implementation of the trustee's proposal is 
     essential to permit the debtor to exit bankruptcy, such that 
     confirmation of a plan of reorganization is not likely to be 
     followed by liquidation, or the need for further financial 
     reorganization, of the debtor (or a successor to the debtor) 
     in the short term.
       ``(3) If a trustee has implemented a program of incentive 
     pay, bonuses, or other financial returns for insiders, senior 
     executive officers, or the 20 next most highly compensated 
     employees or consultants providing services to the debtor 
     during the bankruptcy, or such a program was implemented 
     within 180 days before the date of the filing of the 
     petition, the court shall presume that the trustee has failed 
     to satisfy the requirements of subparagraph (f)(3)(C).''; and
       (B) by striking ``except that in no case'' and inserting 
     the following:
       ``(4) In no case''; and
       (5) by striking subsection (k) and redesignating 
     subsections (l) and (m) as subsections (k) and (l), 
     respectively.

     SEC. 203. PROTECTION OF EMPLOYEE BENEFITS IN A SALE OF 
                   ASSETS.

       Section 363(b) of title 11, United States Code, is amended 
     by adding at the end the following:
       ``(3) In approving a sale under this subsection, the court 
     shall consider the extent to which a bidder has offered to 
     maintain existing jobs, preserve terms and conditions of 
     employment, and assume or match pension and retiree health 
     benefit obligations in determining whether an offer 
     constitutes the highest or best offer for such property.''.

     SEC. 204. CLAIM FOR PENSION LOSSES.

       Section 502 of title 11, United States Code, is amended by 
     adding at the end the following:
       ``(l) The court shall allow a claim asserted by an active 
     or retired participant, or by a labor organization 
     representing such participants, in a defined benefit plan 
     terminated under section 4041 or 4042 of the Employee 
     Retirement Income Security Act of 1974, for any shortfall in 
     pension benefits accrued as of the effective date of the 
     termination of such pension plan as a result of the 
     termination of the plan and limitations upon the payment of 
     benefits imposed pursuant to section 4022 of such Act, 
     notwithstanding any claim asserted and collected by the 
     Pension Benefit Guaranty Corporation with respect to such 
     termination.
       ``(m) The court shall allow a claim of a kind described in 
     section 101(5)(C) by an active or retired participant in a 
     defined contribution plan (within the meaning of section 
     3(34) of the Employee Retirement Income Security Act of 1974 
     (29 U.S.C. 1002(34))), or by a labor organization 
     representing such participants. The amount of such claim 
     shall be measured by the market value of the stock at the 
     time of contribution to, or purchase by, the plan and the 
     value as of the commencement of the case.''.

     SEC. 205. PAYMENTS BY SECURED LENDER.

       Section 506(c) of title 11, United States Code, is amended 
     by adding at the end the following: ``If employees have not 
     received wages, accrued vacation, severance, or other 
     benefits owed under the policies and practices of the debtor, 
     or pursuant to the terms of a collective bargaining 
     agreement, for services rendered on and after the date of the 
     commencement of the case, such unpaid obligations shall be 
     deemed necessary costs and expenses of preserving, or 
     disposing of, property securing an allowed secured claim and 
     shall be recovered even if the trustee has otherwise waived 
     the provisions of this subsection under an agreement with the 
     holder of the allowed secured claim or a successor or 
     predecessor in interest.''.

[[Page S4413]]

     SEC. 206. PRESERVATION OF JOBS AND BENEFITS.

       Chapter 11 of title 11, United States Code, is amended--
       (1) by inserting before section 1101 the following:

     ``Sec. 1100. Statement of purpose

       ``A debtor commencing a case under this chapter shall have 
     as its principal purpose the reorganization of its business 
     to preserve going concern value to the maximum extent 
     possible through the productive use of its assets and the 
     preservation of jobs that will sustain productive economic 
     activity.'';
       (2) in section 1129(a), as amended by section 104, by 
     adding at the end the following:
       ``(18) The debtor has demonstrated that the reorganization 
     preserves going concern value to the maximum extent possible 
     through the productive use of the debtor's assets and 
     preserves jobs that sustain productive economic activity.'';
       (3) in section 1129(c)--
       (A) by inserting ``(1)'' after ``(c)''; and
       (B) by striking the last sentence and inserting the 
     following:
       ``(2) If the requirements of subsections (a) and (b) are 
     met with respect to more than 1 plan, the court shall, in 
     determining which plan to confirm--
       ``(A) consider the extent to which each plan would preserve 
     going concern value through the productive use of the 
     debtor's assets and the preservation of jobs that sustain 
     productive economic activity; and
       ``(B) confirm the plan that better serves such interests.
       ``(3) A plan that incorporates the terms of a settlement 
     with a labor organization representing employees of the 
     debtor shall presumptively constitute the plan that satisfies 
     this subsection.''; and
       (4) in the table of sections, by inserting before the item 
     relating to section 1101 the following:

``1100. Statement of purpose.''.

     SEC. 207. TERMINATION OF EXCLUSIVITY.

       Section 1121(d) of title 11, United States Code, is amended 
     by adding at the end the following:
       ``(3) For purposes of this subsection, cause for reducing 
     the 120-day period or the 180-day period includes the 
     following:
       ``(A) The filing of a motion pursuant to section 1113 
     seeking rejection of a collective bargaining agreement if a 
     plan based upon an alternative proposal by the labor 
     organization is reasonably likely to be confirmed within a 
     reasonable time.
       ``(B) The proposed filing of a plan by a proponent other 
     than the debtor, which incorporates the terms of a settlement 
     with a labor organization if such plan is reasonably likely 
     to be confirmed within a reasonable time.''.

     SEC. 208. CLAIM FOR WITHDRAWAL LIABILITY.

       Section 503(b) of title 11, United States Code, as amended 
     by section 103 of this Act, is amended by adding at the end 
     the following:
       ``(11) with respect to withdrawal liability owed to a 
     multiemployer pension plan for a complete or partial 
     withdrawal pursuant to section 4201 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1381) where 
     such withdrawal occurs on or after the commencement of the 
     case, an amount equal to the amount of vested benefits 
     payable from such pension plan that accrued as a result of 
     employees' services rendered to the debtor during the period 
     beginning on the date of commencement of the case and ending 
     on the date of the withdrawal from the plan.''.

         TITLE III--RESTRICTING EXECUTIVE COMPENSATION PROGRAMS

     SEC. 301. EXECUTIVE COMPENSATION UPON EXIT FROM BANKRUPTCY.

       Section 1129(a) of title 11, United States Code, is 
     amended--
       (1) in paragraph (4), by adding at the end the following: 
     ``Except for compensation subject to review under paragraph 
     (5), payments or other distributions under the plan to or for 
     the benefit of insiders, senior executive officers, and any 
     of the 20 next most highly compensated employees or 
     consultants providing services to the debtor, shall not be 
     approved except as part of a program of payments or 
     distributions generally applicable to employees of the 
     debtor, and only to the extent that the court determines that 
     such payments are not excessive or disproportionate compared 
     to distributions to the debtor's nonmanagement workforce.''; 
     and
       (2) in paragraph (5)--
       (A) in subparagraph (A)(ii), by striking ``and'' at the 
     end;
       (B) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(C) the compensation disclosed pursuant to subparagraph 
     (B) has been approved by, or is subject to the approval of, 
     the court as reasonable when compared to individuals holding 
     comparable positions at comparable companies in the same 
     industry and not disproportionate in light of economic 
     concessions by the debtor's nonmanagement workforce during 
     the case.''.

     SEC. 302. LIMITATIONS ON EXECUTIVE COMPENSATION ENHANCEMENTS.

       Section 503(c) of title 11, United States Code, is 
     amended--
       (1) in paragraph (1), in the matter preceding subparagraph 
     (A)--
       (A) by inserting ``, a senior executive officer, or any of 
     the 20 next most highly compensated employees or 
     consultants'' after ``an insider'';
       (B) by inserting ``or for the payment of performance or 
     incentive compensation, or a bonus of any kind, or other 
     financial returns designed to replace or enhance incentive, 
     stock, or other compensation in effect before the date of the 
     commencement of the case,'' after ``remain with the debtor's 
     business,''; and
       (C) by inserting ``clear and convincing'' before ``evidence 
     in the record''; and
       (2) by amending paragraph (3) to read as follows:
       ``(3) other transfers or obligations, to or for the benefit 
     of insiders, senior executive officers, managers, or 
     consultants providing services to the debtor, in the absence 
     of a finding by the court, based upon clear and convincing 
     evidence, and without deference to the debtor's request for 
     such payments, that such transfers or obligations are 
     essential to the survival of the debtor's business or (in the 
     case of a liquidation of some or all of the debtor's assets) 
     essential to the orderly liquidation and maximization of 
     value of the assets of the debtor, in either case, because of 
     the essential nature of the services provided, and then only 
     to the extent that the court finds such transfers or 
     obligations are reasonable compared to individuals holding 
     comparable positions at comparable companies in the same 
     industry and not disproportionate in light of economic 
     concessions by the debtor's nonmanagement workforce during 
     the case.''.

     SEC. 303. ASSUMPTION OF EXECUTIVE BENEFIT PLANS.

       Section 365 of title 11, United States Code, is amended--
       (1) in subsection (a), by striking ``and (d)'' and 
     inserting ``(d), (q), and (r)''; and
       (2) by adding at the end the following:
       ``(q) No deferred compensation arrangement for the benefit 
     of insiders, senior executive officers, or any of the 20 next 
     most highly compensated employees of the debtor shall be 
     assumed if a defined benefit plan for employees of the debtor 
     has been terminated pursuant to section 4041 or 4042 of the 
     Employee Retirement Income Security Act of 1974, on or after 
     the date of the commencement of the case or within 180 days 
     before the date of the commencement of the case.
       ``(r) No plan, fund, program, or contract to provide 
     retiree benefits for insiders, senior executive officers, or 
     any of the 20 next most highly compensated employees of the 
     debtor shall be assumed if the debtor has obtained relief 
     under subsection (g) or (h) of section 1114 to impose 
     reductions in retiree benefits or under subsection (d) or (e) 
     of section 1113 to impose reductions in the health benefits 
     of active employees of the debtor, or reduced or eliminated 
     health benefits for active or retired employees within 180 
     days before the date of the commencement of the case.''.

     SEC. 304. RECOVERY OF EXECUTIVE COMPENSATION.

       (a) In General.--Subchapter III of chapter 5 of title 11, 
     United States Code, is amended by inserting after section 562 
     the following:

     ``Sec. 563. Recovery of executive compensation

       ``(a) If a debtor has obtained relief under subsection (d) 
     of section 1113, or subsection (g) of section 1114, by which 
     the debtor reduces the cost of its obligations under a 
     collective bargaining agreement or a plan, fund, or program 
     for retiree benefits as defined in section 1114(a), the 
     court, in granting relief, shall determine the percentage 
     diminution in the value of the obligations when compared to 
     the debtor's obligations under the collective bargaining 
     agreement, or with respect to retiree benefits, as of the 
     date of the commencement of the case under this title before 
     granting such relief. In making its determination, the court 
     shall include reductions in benefits, if any, as a result of 
     the termination pursuant to section 4041 or 4042 of the 
     Employee Retirement Income Security Act of 1974, of a defined 
     benefit plan administered by the debtor, or for which the 
     debtor is a contributing employer, effective at any time on 
     or after 180 days before the date of the commencement of a 
     case under this title. The court shall not take into account 
     pension benefits paid or payable under such Act as a result 
     of any such termination.
       ``(b) If a defined benefit pension plan administered by the 
     debtor, or for which the debtor is a contributing employer, 
     has been terminated pursuant to section 4041 or 4042 of the 
     Employee Retirement Income Security Act of 1974, effective at 
     any time on or after 180 days before the date of the 
     commencement of a case under this title, but a debtor has not 
     obtained relief under subsection (d) of section 1113, or 
     subsection (g) of section 1114, the court, upon motion of a 
     party in interest, shall determine the percentage diminution 
     in the value of benefit obligations when compared to the 
     total benefit liabilities before such termination. The court 
     shall not take into account pension benefits paid or payable 
     under title IV of the Employee Retirement Income Security Act 
     of 1974 as a result of any such termination.
       ``(c) Upon the determination of the percentage diminution 
     in value under subsection (a) or (b), the estate shall have a 
     claim for the return of the same percentage of the 
     compensation paid, directly or indirectly (including any 
     transfer to a self-settled trust or similar device, or to a 
     nonqualified deferred compensation plan under section 
     409A(d)(1) of the Internal Revenue Code of 1986) to any 
     officer of the debtor serving as member of the board of 
     directors of the debtor within the year before the date

[[Page S4414]]

     of the commencement of the case, and any individual serving 
     as chairman or lead director of the board of directors at the 
     time of the granting of relief under section 1113 or 1114 or, 
     if no such relief has been granted, the termination of the 
     defined benefit plan.
       ``(d) The trustee or a committee appointed pursuant to 
     section 1102 may commence an action to recover such claims, 
     except that if neither the trustee nor such committee 
     commences an action to recover such claim by the first date 
     set for the hearing on the confirmation of plan under section 
     1129, any party in interest may apply to the court for 
     authority to recover such claim for the benefit of the 
     estate. The costs of recovery shall be borne by the estate.
       ``(e) The court shall not award postpetition compensation 
     under section 503(c) or otherwise to any person subject to 
     subsection (c) if there is a reasonable likelihood that such 
     compensation is intended to reimburse or replace compensation 
     recovered by the estate under this section.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 5 of title 11, United States Code, is 
     amended by inserting after the item relating to section 562 
     the following:

``563. Recovery of executive compensation.''.

     SEC. 305. PREFERENTIAL COMPENSATION TRANSFER.

       Section 547 of title 11, United States Code, is amended by 
     adding at the end the following:
       ``(j)(1) The trustee may avoid a transfer--
       ``(A) made--
       ``(i) to or for the benefit of an insider (including an 
     obligation incurred for the benefit of an insider under an 
     employment contract) made in anticipation of bankruptcy; or
       ``(ii) in anticipation of bankruptcy to a consultant who is 
     formerly an insider and who is retained to provide services 
     to an entity that becomes a debtor (including an obligation 
     under a contract to provide services to such entity or to a 
     debtor); and
       ``(B) made or incurred on or within 1 year before the 
     filing of the petition.
       ``(2) No provision of subsection (c) shall constitute a 
     defense against the recovery of a transfer described in 
     paragraph (1).
       ``(3) The trustee or a committee appointed pursuant to 
     section 1102 may commence an action to recover such transfer, 
     except that, if neither the trustee nor such committee 
     commences an action to recover such transfer by the time of 
     the commencement of a hearing on the confirmation of a plan 
     under section 1129, any party in interest may apply to the 
     court for authority to recover the claims for the benefit of 
     the estate. The costs of recovery shall be borne by the 
     estate.''.

                       TITLE IV--OTHER PROVISIONS

     SEC. 401. UNION PROOF OF CLAIM.

       Section 501(a) of title 11, United States Code, is amended 
     by inserting ``, including a labor organization,'' after ``A 
     creditor''.

     SEC. 402. EXCEPTION FROM AUTOMATIC STAY.

       Section 362(b) of title 11, United States Code, is 
     amended--
       (1) in paragraph (27), by striking ``and'' at the end;
       (2) in paragraph (28), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(29) of the commencement or continuation of a grievance, 
     arbitration, or similar dispute resolution proceeding 
     established by a collective bargaining agreement that was or 
     could have been commenced against the debtor before the 
     filing of a case under this title, or the payment or 
     enforcement of an award or settlement under such 
     proceeding.''.
                                 ______
                                 
      By Mr. HOEVEN (for himself, Mr. McCain, Ms. Murkowski, and Mr. 
        Barrasso):
  S. 2592. A bill to promote energy production and security, and for 
other purposes; to the Committee on Energy and Natural Resources.
  Mr. HOEVEN. We are here today to talk about energy--energy for our 
country but also energy for our allies. This is a discussion not just 
about energy, it is about jobs, good-paying jobs. It is also about 
economic growth. It is about generating tax revenues to help reduce the 
debt and the deficit without raising taxes. It is about national 
security--not only our national security but also working with our 
closest friend and ally, Canada, as well as our allies in Europe, the 
European Union, and working to help countries such as the Ukraine that 
very much need energy supply from sources other than Russia.
  With the current events going on in the Ukraine, it is very clear 
that we need to play a long-term game, a long-term strategy--deploy a 
long-term strategy when it comes to helping our allies, not only in 
terms of our national security but working with our allies to make them 
stronger, their strength, their national security. The national 
security of allies also contributes to our strength and our security 
here at home. So that is what we are here to talk about. We are here to 
talk about the North Atlantic Energy Security Act, legislation we are 
introducing today--myself, Senator Barrasso, Senator McCain, and 
Senator Murkowski.
  I am going to take a few minutes to talk about energy production, 
transportation, and export in terms of building our energy future in 
this country and working with our allies. Senator Barrasso is here, and 
he will be talking about the specific legislation. Senator McCain will 
join us as well to talk about the national security issues and 
implications.
  I will start with the first chart.
  Very simply, what we want to do is continue to produce more energy in 
our Nation, in the heartland of our Nation and throughout our country. 
We want to transport that increased production to market. That includes 
not only markets domestically but also markets where we can export it 
to our friends and allies in the European Union, to the Ukraine, and to 
Japan. That is the simple equation we are working on. Again, it is 
about energy. It is about jobs. It is about a growing economy. It is 
very much about national security.
  That gas is produced throughout our country, more and more all the 
time. Right now we produce 30 trillion cubic feet of natural gas a 
year. We only use 26 trillion cubic feet of natural gas a year, so we 
are already producing more than we consume, and that number is growing.
  What happens when you produce more than you consume and you do not 
have a market for that gas? In places such as North Dakota, we are 
flaring off that gas. Right now, just in my State alone, we flare $1.5 
million a day of natural gas--$1.5 million a day. That is natural gas 
that we need to capture, that we need to get in gathering systems, that 
we need to transport to markets, and we need markets for that gas. This 
is just common sense.
  How do we move gas from North Dakota to places such as Ukraine, where 
there is much need for a market? Well, we need both interstate and 
intrastate pipeline systems. On this chart, you can see that the purple 
is the interstate. That is how we move gas across State lines. But we 
also need intrastate gathering systems. A lot of oil wells produce 
natural gas as a byproduct; other wells are just gas wells. But you 
need gathering systems, the blue systems that go to all those wells so 
that gas can be gathered, put in the interstate system, and moved to 
markets--markets throughout the United States and markets overseas.
  As I said a minute ago, we produce 30 trillion cubic feet a year, 
States such as North Dakota, Wyoming, and many others. That number is 
growing. We produce 30 trillion cubic feet a year, but we only consume 
26 trillion, so we are flaring off that gas.
  We need markets. As we work to build those gathering systems and 
those interstate pipelines, how do we get markets? Well, we move that 
product to overseas as liquefied natural gas, LNG. It is cooled and 
condensed, put on ships, and moved to other markets--the European 
Union, Ukraine, Japan--by ship. But we need the LNG facilities to do 
it. We do not have them. So that is a problem, right? Well, it is, 
except we have many companies that are not only ready and willing but 
anxious to build the facilities. Here are 16 right here, 16 
applications.

  Of the 26 applications that are pending, many of them have been 
pending for over a year waiting to get approval from the Department of 
Energy and from the FERC. So here we are flaring off natural gas, as I 
showed a minute ago--$1.5 million a day in my State--flaring it off 
because we produce more than we consume. We need markets. These 
applications are just sitting there and have been for more than a year.
  If they get approved, what happens? Let's take an example. Here is 
one by a company everybody has heard of--Exxon. Exxon has an 
application. As you can see here, they have had an application in for 
over a year waiting to get approved at Sabine Pass, TX, which is right 
down in that gulf area. They are ready, willing, and able to spend $10 
billion right now, today, to build that facility.
  Where are they going to move the gas? They are going to move it to 
the United Kingdom so it can go right into the European system. We will 
touch on that European system and how it gets to places such as the 
Ukraine in a minute. But if they can get approval--

[[Page S4415]]

I have already talked to their CEO, Mr. Rex Tillerson. He indicates 
that within 36 to 40 months of approval, they can be moving gas into 
the European markets. Does that sound realistic? It certainly does. 
Obviously that is a very large company with the capabilities to do what 
they say they are willing and want to do.
  Here is another example. Here is Cheniere. Same place--Sabine Pass. 
This is one that did get approved. This is one that did get approval. 
They intend to be delivering gas into the European market by the middle 
of next year--middle of next year. So this is not something that is 
going to take forever to happen.
  We not only have the fact that we can start moving natural gas over 
here in a very reasonable amount of time, but think of the impact on 
the markets in Europe and the impact on Russia and gas prices when they 
know it is coming.
  I am going to ask Senator McCain to step in here. I mentioned a 
minute ago that application I showed you that is pending from Exxon. 
They want to move that natural gas to market right here in the UK.
  What this chart shows is the pipeline network throughout Europe that 
will enable them to move that product throughout Europe and even into 
Eastern Europe, including places such as Ukraine.
  Right now where is all that gas coming from? Russia, Gazprom. All 
these pipelines are coming down from Russia and providing that gas to 
the European countries, to the European Union, and to the Ukraine. Of 
course, that makes them dependent on Russia and that enables Russia to 
engage in the kind of activity we have seen and we can't always be 
reacting short term. We need a long-term strategy to break that hold.
  Here are some of the numbers. This shows not only Ukraine but look at 
the impact on other NATO countries, Lithuania, Estonia, Latvia, 100 
percent of their gas coming from Russia. Think of the leverage that 
gives Russia in this situation.
  The last chart is the North Atlantic Energy Security Act. Quite 
simply, we are going to cut the redtape that is holding up production 
and infrastructure, we are going to reduce flaring, and we are going to 
expedite LNG to our friends and allies, to countries such as the 
European Union, to Ukraine, to Japan. We reduce the redtape that is 
holding up production. We are producing 30 trillion cubic feet of 
natural gas, and we can produce a lot more, but we have to cut through 
the redtape. We also enhance and expand our ability to build the 
gathering systems that move that natural gas to market, and we allow 
export.
  We have an expedited process so we can export that gas to the markets 
we need, to our friends, and to our allies. Again, this is about 
energy, but it is about creating jobs, it is about growing our economy, 
it is about the national security of our country and our allies, and it 
is about having a long-term strategy that works, not going from crisis 
to crisis.
  With that, I turn to my colleague, the senior Senator from Arizona, 
to comment on some of the national security implications.
  Mr. McCAIN. I ask unanimous consent the colloquy between the three of 
us be allowed.
  The PRESIDING OFFICER. Without objection.
  Mr. McCAIN. I thank my two colleagues from North Dakota and Wyoming. 
There are no two Members of the Senate who know more and have worked 
harder on this energy issue. There are no two Senators who have worked 
harder to try to bring to the American people the fact that if we could 
export energy to these countries, it could literally change the world. 
This is not only when it actually arrives, but when Vladimir Putin gets 
the message, within 3 years--as I understand the Senator from North 
Dakota's context--we could be sending energy to the living rooms.
  If you would put the numbers back up with the countries and their 
dependence on Russian energy.
  Within 3 years the people within Latvia, Estonia, members of NATO, 
would no longer be reliant--and it gets very cold up in those Baltic 
countries as well. It can have a significant effect on the entire 
world.
  I would also point out if that energy--and I would ask my colleagues 
from Wyoming or North Dakota--could get to the living room of Kiev--
which the Senator showed the different pipelines that cross Ukraine--
that has a huge effect.
  I would ask my friend from Wyoming to comment.
  We have threatened Russians time after time after they absorbed 
Crimea in violation of an agreement they made in Budapest to respect 
the territorial integrity of Ukraine. They absorbed Crimea. They 
continue to provoke unrest in Eastern Ukraine.
  They have been threatened time after time by the United States and 
Europe, and I would argue that the handful of sanctions on individuals 
has had very little effect whatsoever on Russian behavior.
  I ask the Senator from Wyoming as well, this is not only about the 
fact that the United States of America would be an energy exporter--
which is a huge effect on our economy--but this could have a huge 
effect on the entire European Continent, because if Vladimir Putin 
understands that this energy is coming from a friend of the ally of the 
United States America, as opposed to them being dependent on Russian 
oil and energy, I would argue that it could change the entire shape of 
the world as we know it.
  I thank both of the Senators who have been involved in this issue for 
many years. I don't know how many times both Senators have come to the 
floor--and I might just say I don't claim to be an expert on energy as 
my two colleagues are--but I will say the presentation the Senator from 
North Dakota just made should be understandable and I believe is 
understandable to every American citizen how we can, within 3 years as 
I understand it, achieve a level of energy independence and that for 
Europe that could literally change the entire equation in Europe and in 
the United States.

  Mr. BARRASSO. My friend and colleague from Arizona is absolutely 
right. The three of us have traveled together to Ukraine. We have 
traveled together to Latvia and Lithuania.
  What we hear everywhere we go is: Please sell us natural gas. Please 
sell us energy. Please help us undermine what Putin is doing to us.
  Energy should be used as a geopolitical weapon, and it is the 
advances in technology in just the last decade that have made all of 
this possible. The Senators from Arizona and North Dakota are both 
correct. We are producing more now than ever. They are well aware of 
that throughout Europe and throughout the Baltics--to the point that 
Lithuania is even in the middle of acquiring an at-sea platform to 
change liquefied natural gas into natural gas--to warm it up, if you 
will, for use--and it is called the Independence. That is the name of 
this platform. It is to give them independence from Russia.
  That is what they are investing in, and now they are saying to us: 
Please send it our way.
  The technology has changed so much that in 2005 a book came out 
called ``Beyond Oil,'' and it was sent to every University of Wyoming 
first-year student coming in. They were invited to read it, and there 
was a whole section on liquefied natural gas.
  At the time the technology wasn't developed enough for us to be so 
blessed in the United States to produce it, so that they were talking 
about actually building terminals in Louisiana, Texas, to import 
liquefied natural gas from other places.
  Now we have reversed it. We are now in a position where we have such 
an abundance of liquefied natural gas, as my colleague from North 
Dakota said, we are flaring it off, burning it to the point of $1.5 
million a day. That is the value of that gas, and there is also tax 
revenue that is not being collected because this isn't being sold, so 
our States could use the revenue. The Federal Government would benefit 
from us selling this rather than burning it, but yet we don't have the 
opportunity to do so because of the specifics of the laws with which we 
are faced.
  We need to change the law. We need to be able to export. We need to 
be able to have permits to export, and we are seeing a lot of foot-
dragging by this administration, which is why there are bills on this 
floor, bipartisan pieces of legislation, to help us use our energy 
abundance as a geopolitical weapon to

[[Page S4416]]

undermine Vladimir Putin's ability to use energy as a weapon of his 
own, a club against, as we have said, Ukraine, Moldova, Latvia, 
Lithuania, Estonia--all of these areas that are so dependent upon 
Russia for their gas, when they would rather buy it from us.
  It would be an opportunity for us in America to become a net exporter 
in a way that would help balance our trade and balance our payments. It 
would bring cash back into the United States and we would be so much 
less dependent on the Middle East for sources of energy. We should be 
relying on that at home.
  I look to my colleague from Arizona and say he is absolutely right in 
his leadership, in his direction, and in his global view that he has 
seen in his incredible service to our country. He has seen the shift. 
He has seen the future, and he knows the future success for our country 
comes in exporting liquefied natural gas to Europe, to our NATO allies, 
to Ukraine.
  That is why we bring to the floor today the North Atlantic Energy 
Security Act, which we believe will help our country, help globally, 
and help us not just economically but help us geopolitically as well.
  I turn to my friends from either Arizona or North Dakota to continue 
in this discussion, and then I will get back to some specific things 
that are happening around the world.
  Mr. McCAIN. I say to both of my colleagues, the Senator from North 
Dakota, Americans understand, I believe, that we need to do what we can 
to help our European friends become independent of Vladimir Putin as a 
source of energy.
  They also are beginning to understand the United States of America is 
going to be an exporter of energy, which will obviously change our 
dependence on Middle Eastern energy and on other forms of energy, but 
the way the Senator from North Dakota described this, I think every 
American, if they saw it, would ask: Why don't we move in that 
direction? Why don't we believe the major energy companies that say 
within 3 years--and beginning, I understand, next year with some of 
them--we could be supplying these countries with energy which would 
then give them not only the ability to have energy without dependency, 
but it also sends a huge message to Vladimir Putin and to Europe that 
they are no longer dependent on his largesse. There have been times in 
the past where Vladimir Putin has shut off the energy in the 
wintertime, and it gets very cold in some of these countries in the 
wintertime.
  It might also send a message to Vladimir Putin himself that he is not 
going to get away with the kind of behavior that he has.
  I would ask the Senator from North Dakota, what does it require--
suppose I am just an average citizen--to capture that natural gas that 
is being burned for $1 million-plus a day? What does it require to 
capture that and then get it to that port where it is going to be 
exported?

  I would finally say I intend to go every place I can in America in 
the next few months and give the same presentation the Senator from 
North Dakota did and help the American people understand that we don't 
have to do a lot.
  The energy is there. The question is, Do we have the national will 
and legislative will to take the action necessary to get that energy to 
the people who need it so badly, who are literally under the threat of 
freezing cold this coming winter?
  Mr. HOEVEN. I thank the Senator from Arizona for his comments, his 
leadership, and for his willingness to work on this vitally important 
issue.
  In terms of responding to his question: OK. What needs to happen--I 
wish to take a minute to give an overview of the legislation and then 
ask the Senator from Wyoming to comment in more detail.
  As I said at the outset, and I actually have said several times, this 
is about more energy, it is about job creation, it is about growing the 
economy, and it is about national security.
  It is also very much about environmental benefits. I showed you gas 
being flared off a well. This gas is just being flared.
  Not only is that wasting a natural resource which we can capture and 
get value for, but when we capture that, we also create environmental 
benefits.
  Nationally, we flare or vent, burn off, 212 billion cubic feet of gas 
a year--212 billion cubic feet of gas a year now being burned off.
  Mr. McCAIN. Which is roughly how much money?
  Mr. HOEVEN. Oh, boy. To convert it, it is billions, right, it is in 
the billions of dollars. I don't have the exact number, but it is a 
huge amount. It is $1.5 million a day in my State alone so the Senator 
can see we are talking billions of dollars. There are also tremendous 
environmental benefits as well.
  But let's go to the legislation for a minute because I think this is 
responsive to the question asked by the Senator from Arizona about: OK. 
How do we make it happen?
  The reality is we are producing the energy now, we can produce more, 
and this doesn't cost taxpayer money.
  This creates revenues without raising taxes. This is going to create 
revenues to help address the debt and the deficit. This is enabling and 
empowering the private companies to make investments to create jobs, 
make investments to produce the energy.
  Going back to this chart, Exxon wants to invest $10 billion today, 
creating thousands of jobs and a tremendous amount of revenue for the 
Federal Government to reduce the deficit and debt. It doesn't cost a 
penny. That is not what it is about. It is about streamlining the 
regulation, cutting the redtape. That means making sure we streamline 
and expedite the process to get wells approved. That is the first area 
of legislation that increases our production onshore. We can do it 
offshore as well. But we are talking about more production. As I say, 
we are already producing more than we consume.
  Second, it is about building those gathering systems. It requires 
permits and approvals to build gathering systems, so we are not able to 
build those gathering systems. If you can't build a gathering system, 
what happens? You burn off the gas because you can't get it to market. 
So that process is being held up. Again, it is about cutting through 
the redtape, reducing the regulation and bureaucracy. It doesn't cost 
anything.
  The final piece, the same thing--getting approval to export LNG. 
Right now there is one that has final approval from the DOE and FERC. 
There are 26 applications pending. One has final approval from the 
DOE--Department of Energy--and the FERC. Six have conditional approval 
and 26 are pending. It is as simple as getting the approvals and 
cutting through that redtape. This is not about spending taxpayer 
dollars; it is about generating revenues.
  Mr. McCAIN. If I could ask the Senator from North Dakota one 
additional question, and maybe the Senator from Wyoming would comment 
on it too. What about the environmental aspects of using natural gas as 
opposed to other forms of energy, whether it be coal or oil or other 
forms of energy?
  Mr. HOEVEN. I would respond briefly to the Senator from Arizona and 
then turn to the Senator from Wyoming on that issue as well for more 
detail on the legislation. He has tremendous expertise in this area and 
has been working on it for a long time.
  Clearly, it is a double win because not only are we no longer burning 
off or flaring that natural gas, but we are using natural gas, which is 
a very clean resource, for a whole range of energy uses, whether it is 
powering homes or many other uses. So it is a huge environmental win.
  Mr. McCAIN. So I would think the EPA would be out there in front 
arguing for this legislation.
  Mr. HOEVEN. Absolutely an environmental win.
  Mr. BARRASSO. It is interesting. The Senator from South Dakota, the 
Senator from Arizona, and I were reviewing this article in today's Wall 
Street Journal, Thursday, July 10.
  The headline is ``In the Arctic, Shipping Route Is Set to Supply LNG 
to Asia,'' and there is a map of the globe. It says:

       Shipping companies in China and Japan said they would start 
     a regular service to carry Siberian natural gas across the 
     Arctic Ocean to East Asia, showing how Asian demand for the 
     fuel is reshaping global shipping routes.

  So with the forces at play--Asia's demand for natural gas, Japan's 
move

[[Page S4417]]

away from nuclear power, China's struggle with pollution--this is an 
opportunity for us to use a resource we have in the United States and 
export it in a very profitable way for our country, put people to work, 
increase tax revenues to the States, increase tax revenues to the 
Nation, and improve our balance of trade. The technology is now 
allowing us to do it, but the government is not. That is the biggest 
problem we have--a bureaucratic Federal Government that is not allowing 
what we have and what we have learned to use. The government is 
blocking it, and that is why we have come to the floor today to try to 
encourage additional exports to Europe and support the North Atlantic 
Energy Security Act.
  Mr. HOEVEN. Madam President, I turn to the good Senator from Arizona 
for any final comments. Seeing that he doesn't have any, I thank him.
  I also thank the good Senator from Wyoming and ask if there are any 
final comments he might have on the legislation. He has been an author 
of much of this legislation. I thank him for that tremendous work and 
for being part of this effort.
  Mr. BARRASSO. The legislation is bipartisan. We have Republicans and 
Democrats alike who realize there are incredible values to us as a 
nation to be exporting liquefied natural gas.
  At a time when the technology is there, the will is there, we need to 
get a vote on the Senate floor. I offered the amendment before and 
bring it again today as legislation, the North Atlantic Energy Security 
Act. It is about energy, it is about security--our economic security, 
our energy security--and our opportunities on the geopolitical stage to 
use our resources to the best advantage of our Nation and our Nation's 
citizens.
  I thank the Senator from North Dakota for his continued leadership in 
this area.
  Mr. HOEVEN. I thank the Senator from Wyoming.

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