[Congressional Record Volume 169, Number 123 (Tuesday, July 18, 2023)]
[Senate]
[Pages S2989-S2991]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. DURBIN (for himself, Mr. Merkley, and Mr. Cardin):
  S. 2337. A bill to require the Administrator of the Environmental 
Protection Agency to promulgate certain limitations with respect to 
pre-production plastic pellet pollution, and for other purposes; to the 
Committee on Environment and Public Works.
  Mr. DURBIN. Madam 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. 2337

       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 the ``Plastic Pellet Free Waters 
     Act''.

     SEC. 2. EFFLUENT LIMITATIONS FOR WASTEWATER, SPILLS, AND 
                   RUNOFF FROM PLASTIC POLYMER PRODUCTION 
                   FACILITIES, PLASTIC MOLDING AND FORMING 
                   FACILITIES, AND OTHER POINT SOURCES ASSOCIATED 
                   WITH THE TRANSPORT AND PACKAGING OF PLASTIC 
                   PELLETS OR OTHER PRE-PRODUCTION PLASTIC 
                   MATERIALS.

       Not later than 60 days after the date of enactment of this 
     Act, the Administrator of the Environmental Protection Agency 
     (referred to in this section as the ``Administrator'') shall 
     promulgate a final rule to ensure that--
       (1) the discharge of plastic pellets or other pre-
     production plastic materials (including discharge into 
     wastewater and other runoff) from facilities regulated under 
     part 414 or 463 of title 40, Code of Federal Regulations (as 
     in effect on the date of enactment of this Act), is 
     prohibited;
       (2) the discharge of plastic pellets or other pre-
     production plastic materials (including discharge into 
     wastewater and other runoff) from a point source (as defined 
     in section 502 of the Federal Water Pollution Control Act (33 
     U.S.C. 1362)) that makes, uses, packages, or transports those 
     plastic pellets and other pre-production plastic materials is 
     prohibited; and
       (3) the requirements under paragraphs (1) and (2) are 
     reflected in--
       (A) all wastewater, stormwater, and other permits issued by 
     the Administrator and State-delegated programs under section 
     402 of the Federal Water Pollution Control Act (33 U.S.C. 
     1342) to facilities and other point sources (as defined in 
     section 502 of that Act (33 U.S.C. 1362)) that make, use, 
     package, or transport plastic pellets or other pre-production 
     plastic materials, as determined by the Administrator, in 
     addition to other applicable limits and standards; and
       (B) all standards of performance promulgated under section 
     312(p) of the Federal Water Pollution Control Act (33 U.S.C. 
     1322(p)) that are applicable to point sources (as defined in 
     section 502 of that Act (33 U.S.C. 1362)) that make, use, 
     package, or transport plastic pellets or other pre-production 
     plastic materials, as determined by the Administrator.
                                 ______
                                 
      By Mr. DURBIN (for himself and Mr. Rubio):
  S. 2342. A bill to prohibit any official action to recognize or 
normalize relations with any Government of Syria that is led by Bashar 
al-Assad; to the Committee on Foreign Relations.
  Mr. DURBIN. Madam 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. 2342

       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 ``Assad Regime Anti-
     Normalization Act of 2023''.

     SEC. 2. PROHIBITION OF RECOGNITION OF ASSAD REGIME.

       (a) Statement of Policy.--It is the policy of the United 
     States--
       (1) not to recognize or normalize relations with any 
     Government of Syria that is led by Bashar al-Assad due to the 
     Assad regime's prior and ongoing crimes against the Syrian 
     people, including failure to meet the criteria outlined in 
     section 7431(a) of the Caesar Syria Civilian Protection Act 
     of 2019 (title LXXIV of Public Law 116-92; 22 U.S.C. 8791 
     note);
       (2) to actively oppose recognition or normalization of 
     relations by other governments with any Government of Syria 
     that is led by Bashar Al-Assad, including by fully 
     implementing the mandatory primary and secondary sanctions in 
     the Caesar Syria Civilian Protection Act of 2019 and 
     Executive Order 13894 (84 Fed. Reg. 55851; relating to 
     blocking property and suspending entry of certain persons 
     contributing to the situation in Syria); and
       (3) to use the full range of authorities, including those 
     provided under the Caesar Syria Civilian Protection Act of 
     2019 and Executive Order 13894, to deter reconstruction 
     activities in areas under the control of Bashar al-Assad.

[[Page S2990]]

       (b) Prohibition.--In accordance with subsection (a), no 
     Federal official or employee may take any action, and no 
     Federal funds may be made available, to recognize or 
     otherwise imply, in any manner, United States recognition of 
     Bashar al-Assad or any Government in Syria that is led by 
     Bashar al-Assad.
                                 ______
                                 
      By Mr. PADILLA (for himself and Mrs. Feinstein):
  S. 2351. A bill to amend title 49, United States Code, to clarify the 
use of certain taxes and revenues; to the Committee on Commerce, 
Science, and Transportation.
  Mr. PADILLA. Madam President, I rise to introduce State and Local 
General Sales Tax Protection Act. This legislation would clarify 
congressional intent around a 1987 amendment to the Federal Aviation 
Administration's authorization regarding the use of local excise taxes 
on aviation fuel for airport purposes.
  In 2014, the FAA implemented a policy change to require State and 
local governments to use general sales taxes collected on aviation fuel 
for airport purposes. This contradicted congressional intent clearly 
stated in the 1987 conference report and 29 years of practice, which 
applied this requirement only to local excise taxes on fuel and not to 
other taxes imposed by State and local governments.
  This legislation would overturn the 2014 FAA policy and remove any 
ambiguity in Federal interpretation by distinguishing State and local 
sales tax measures of general application from aviation fuel excise 
taxes.
  In my home State of California, local government sales taxes are 
voter-approved by a two-thirds margin for specific purposes. Diverting 
this money would be a violation of the State's constitution and the 
will of its voters. This 2014 FAA rulemaking, if enforced, is estimated 
to divert tens of millions of dollars away from voter-approved purposes 
like local transportation, first responders, education, and social 
programs every year. It is an assault on State and local control of 
general application sales tax measures.
  The 2014 FAA rulemaking would also impose an unfunded mandate on 
States and local governments that would be required to implement a 
burdensome tracking system to segregate taxes on aviation fuel from 
other taxable sources.
  Furthermore, in recognition of this error, the FAA included in its 
recommendations to Congress that the clarification provided in this 
legislation be included in an FAA reauthorization bill.
  I look forward to working with my colleagues to enact the State and 
Local General Sales Tax Protection Act to protect every State and local 
government that have or will have general sales taxes that include 
aviation fuel.
                                 ______
                                 
      By Mr. REED (for himself, Mr. Rounds, Mr. Warner, and Mr. 
        Romney):
  S. 2355. A bill to clarify the applicability of sanctions and 
antimoney laundering compliance obligations to United States persons in 
the decentralized finance technology sector and virtual currency kiosk 
operators, and for other purposes; to the Committee on Banking, 
Housing, and Urban Affairs.
  Mr. REED. Madam President, today I am introducing the Crypto Asset 
National Security Enhancement and Enforcement, CANSEE, Act along with 
Senators Rounds, Warner, and Romney. This bipartisan bill will close 
concerning gaps in the anti-money laundering, AML, and sanctions 
frameworks for cryptocurrency, most importantly decentralized finance, 
DeFi, and virtual currency kiosks.
  Decentralized finance or ``DeFi'' refers to cryptocurrency protocols 
and applications that purport to allow automated peer-to-peer 
transactions using blockchain technology. DeFi enables users to 
transact and trade cryptocurrency without requiring a traditional 
financial institution to broker trades, clear and settle transactions, 
or custody assets.
  Criminal syndicates, fraudsters, ransomware hackers, and rogue states 
have been quick to recognize how DeFi can be exploited to advance their 
nefarious activities. By design, DeFi provides anonymity allowing 
malicious and criminal actors to evade traditional tools that the 
government uses to enforce the AML and sanctions laws.
  According to the U.S. National Money Laundering Risk Assessment 
published in February 2022, ``DeFi services often involve no AML/CFT or 
other processes to identify customers, allowing layering of proceeds to 
take place instantaneously and pseudonymously.'' A risk assessment 
published by the Treasury Department in April 2023 specifically found 
that ``ransomware cybercriminals, thieves, scammers, and Democratic 
People's Republic of Korea (DPRK) cyber actors are using DeFi services 
[and] exploiting vulnerabilities in the U.S. and foreign AML/CFT 
regulatory, supervisory, and enforcement regimes.''
  In addition, DeFi is used in cross-border drug trafficking. 
Blockchain analytics firm Elliptic has estimated that China-based 
chemical manufacturers have received enough payments in cryptocurrency 
to sell $54 billion worth of fentanyl--enough to manufacture 8.6 
billion deadly doses.
  A series of Federal indictments unsealed in April 2023 revealed how 
these Chinese companies sell precursor chemicals to the Sinaloa drug 
cartel to manufacture fentanyl in Mexico, which is then smuggled for 
distribution in the United States. The manufacturers and cartels 
transact in cryptocurrency and no longer need to rely exclusively on 
bulk cash shipments. According to the indictments, once ``fentanyl 
proceeds are deposited into cryptocurrency wallets, that cryptocurrency 
can also be used directly to purchase additional fentanyl, without the 
need to convert the cryptocurrency back into cash.'' Wallets associated 
with a large sanctioned Chinese chemicals manufacturer have used DeFi 
to launder funds.
  DeFi is so attractive to criminals and other bad actors because the 
industry takes the position that it does not need to comply with the 
AML requirements in the Bank Secrecy Act nor the economic sanctions 
programs administered by the Treasury Department. That places DeFi on a 
different footing than traditional financial intermediaries like banks 
and securities brokers, which must monitor all transactions and report 
suspected money laundering and financial crimes to the government. 
Other participants in the cryptocurrency markets, such as U.S.-
headquartered centralized trading venues, are also expected to maintain 
AML programs and ensure that sanctioned persons do not use their 
services. Even casinos have these obligations. It is past time to end 
special treatment for DeFi and prevent this dark corner of our 
financial system from being used to fund crime and launder criminal 
proceeds.
  The bipartisan bill we are introducing closes these alarming gaps 
facilitating narco-trafficking, WMD proliferation, ransomware attacks, 
and other threats to national and economic security. Our bill simply 
requires anyone who controls a DeFi service to meet critical--yet 
basic--regulatory obligations to maintain AML policies and procedures, 
conduct due diligence on customers, and report suspicious transactions 
to the government. These requirements will curtail a tool that is used 
to disguise ownership and movement of criminal funds.
  Our legislation also makes clear that if a sanctioned person, such as 
a Russian oligarch, uses a DeFi service to evade U.S. sanctions, then 
anyone who controls that platform will be liable for facilitating that 
violation. If nobody controls a DeFi service, then--as a backstop--the 
largest investors in that project will be responsible for meeting these 
obligations.
  Our bipartisan legislation also dramatically enhances the customer 
due diligence requirements for operators of virtual currency kiosks or 
``bitcoin ATMs.'' Bitcoin ATMs are typically found in convenience 
stores, gas stations, and grocery stores, and are used to buy, sell, 
and exchange cryptocurrency. According to a report by the Government 
Accountability Office published in December 2021, ``FBI officials said 
they expect to see an increase in the use of virtual currency kiosks 
for illicit purposes, including for human and drug trafficking.'' To 
crack down on this abuse of our financial system, our legislation 
requires kiosk operators to verify the identities of both 
counterparties to every transaction. That will help prevent criminals 
from using cryptocurrency to profit from illegal activity and avoid 
detection by law enforcement.

[[Page S2991]]

  Finally, this legislation makes important updates to the Treasury 
Department's authority to require participants in the U.S. financial 
system to take special precautions against money laundering threats. 
Currently, these authorities are limited to transactions conducted in 
the traditional banking system. But as new technologies like 
cryptocurrency increasingly enable new ways to conduct financial 
transactions, it is critical to extend Treasury's authority to crack 
down on illicit financial activity that may occur without customary 
intermediaries.
  All of our constituents deserve a financial system that is protected 
from geopolitical adversaries and criminals. The CANSEE Act will 
deliver those protections by preventing DeFi services from using 
purported decentralization as a shield to avoid meeting obligations to 
prevent money laundering and sanctions evasion. That will protect the 
integrity of the U.S. financial system and help curtail the activities 
of the worst criminal organizations and malicious state actors. I urge 
my colleagues to support this important bipartisan legislation.

                          ____________________