[Congressional Record (Bound Edition), Volume 147 (2001), Part 13]
[Senate]
[Pages 18468-18469]
[From the U.S. Government Publishing Office, www.gpo.gov]



                       DEFENSE NATIONAL STOCKPILE

  Mr. CLELAND. Madam President, I am pleased to join the Chairman and 
our colleagues from the Senate Armed Services Committee, Senator 
Collins, and Senator Hutchinson, in a colloquy on the forest products 
industry and the release of materials from the Defense National 
Stockpile that poses a potential threat to this industry.
  The forest products industry is an important industry for our Nation, 
and for my own State of Georgia as well. It is important in the sense 
that it provides materials critical to our way of life, and also 
because it employs a large number of our fellow citizens. It is an 
industry that reaches into a large number of States. Any process 
undertaken by a branch of our Federal Government that would harm the 
forest products industry would, therefore, be likely to draw the 
attention and the immediate response of this Congress. I certainly 
would seek to participate in such a response, and to engender the 
greatest possible support among my colleagues.
  We have been faced in recent weeks with the prospect that the sale or 
other release of sebacic acid, a lubricant and plasticizer made by the 
forest product industry, by the Defense National Stockpile might result 
in the harmful depression of the sebacic acid market and thereby harm 
the forest products industry. I have been following this matter 
closely. My staff coordinated a meeting between the officials 
responsible for the Defense National Stockpile and representatives of 
the industry, in the hopes that such a meeting and negotiation would 
resolve any potential problems associated with the authority for 
Federal sebacic acid release. The officials responsible for the 
stockpile assured me that the current authorization for release of 
sebacic acid was not excessive and that the release would be gauged so 
as not to have a negative impact on the price of sebacic acid. These 
assurances were made while acknowledging the release of an additional 
400,000 pounds of acid, which I understand was needed this year in 
order to make up for the mismanagement of the contracting process for 
last year's stockpile release.
  The forest products industry in Georgia and, indeed, across the 
country is highly concerned with this year's proposed release, and has 
requested that Congress restrict the authorization to release material 
from the stockpile. Having received assurances from the officials 
managing the stockpile release, along with their request that we avoid 
legislation affecting the annual authorization to release sebacic acid, 
I am here today to serve notice that I will closely follow the scope 
and effect of any sebacic acid release over the next year. If the 
release has a negative effect on the market for sebacic acid, I will 
vigorously pursue legislation in the next authorization bill to curtail 
future releases of sebacic acid.
  Ms. COLLINS. I thank the Senator. As does the Senator from Georgia, I 
view this matter as one of national importance, deriving from the 
policies of the Department of Defense, which fall within the oversight 
of our Committee. I also share his concerns because, as does he and 
many of our colleagues, I have constituents who depend on the forest 
products industry for their livelihood.

[[Page 18469]]

  I am also pleased that we have agreed to this colloquy as a 
bipartisan expression of our mutual concern over the current Department 
of Defense release authority for sebacic acid. Having taken this 
measured step this year, I will monitor the impact of Department of 
Defense sebacic acid release on the market, and will be ready to join 
my colleagues in taking legislative action as required.
  The fact that an additional amount of acid is being released now, due 
to the acknowledged contracting miscues on the part of Department of 
Defense officials last year, is a further indication that we must be 
prepared to act in our oversight role to restrict future releases of 
sebacic acid. The horrible acts of terrorism that befell us on 
September 11 have had an effect on our economy. I believe the 
Department must take current economic conditions into account as it 
implements its releases of sebacic acid over the coming year.
  Mr. HUTCHINSON. I thank my good friend from Maine, Senator Collins, 
and our distinguished colleagues from the Senate Armed Services 
Committee. I need not tell them that the forest products industry is an 
important industry in Arkansas. I will stand with you, if it becomes 
necessary, to restrict the Department of Defense authorization for 
release of sebacic acid. I know that we will be joined by many others, 
on both sides of the aisle. It is easy to see that the impact of this 
issue has the potential to affect the quality of life of working 
Americans across any number of states. I find it reassuring that our 
Committee is making such a strong statement of our intention to act if 
necessary. Our restraint this year demonstrates the trust we place in 
the Department of Defense to act reasonably within the scope of current 
legislative language. But that restraint will turn to resolve if the 
release of sebacic acid under the current authority proves harmful to 
the sebacic acid market.
  Mr. LEVIN. I appreciate the Senator from Georgia, Mr. Cleland, 
bringing this issue to my attention. I also appreciate the fact that 
the Senators from Georgia, Maine, and Arkansas have sought a colloquy 
on this issue to avoid offering an amendment to the National Defense 
Authorization Act for Fiscal Year 2002 and thereby slowing its passage 
in this time of crisis. The current law requires the Department of 
Defense to ensure that its sales of excess materials from the National 
Defense Stockpile do not adversely affect the markets for those 
materials. It is especially important in our current economic situation 
that the Department not take actions that would harm the private 
sector. I fully expect that the Department will comply with the law and 
act prudently in this regard.

                          ____________________