[Congressional Record (Bound Edition), Volume 150 (2004), Part 11]
[Senate]
[Pages 15475-15493]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
        By Mr. DURBIN (for himself, Mr. Dayton, and Mr. Levin):

  S. 2652. A bill to amend title XVIII of the Social Security Act to 
deliver a meaningful benefit and lower prescription drug prices under 
the medicare program; read the first time.
  Mr. DURBIN. Mr. President, those who are following the business of 
the Senate understand that just a few moments ago, we had a vote on the 
floor of the Senate on the proposed constitutional amendment dealing 
with same-sex marriage. The final vote, I think, was indicative of the 
feeling of this body. There were 48 who supported going forward with 
the debate on this amendment and 50 Senators who opposed it. Of course, 
48 Senators does not meet the threshold requirement for approving a 
constitutional amendment, which is 67 Senators. So that gap of 19 
Senators suggests this Senate does not believe it is appropriate for us 
to move forward on that type of constitutional amendment.
  Many of the colleagues on both sides of the aisle spoke to this issue 
over the last several days and expressed their heartfelt feelings of 
the underlying issue of same-sex marriage and about the question of 
whether we should amend the Constitution. The vote today is, I think, a 
good indication that this is an issue whose time has not come. There is 
no issue in controversy which requires us to amend the Constitution of 
the United States of America.
  One might ask, if this issue fell so far short, 19 votes short, of 
what it needed, why did we consider it? For obvious reasons. This 
debate was not about changing the Constitution. This debate was about 
changing the subject in the Presidential campaign.
  It is understood that if you ask most American families what is 
important to them the politicians are worried about, they will talk 
about the obvious things: My job, the fact that my paycheck does not 
cover the necessities of my family, the cost of health insurance, the 
availability of quality health care, whether my retirement savings are 
going to be protected; I am concerned as well about the situation in 
Iraq; I would like to know when we will stop losing our soldiers, and 
what do we have ahead of us in terms of Iraq and the $1.5 billion which 
American taxpayers spend each week in Iraq, how long will that go on? 
What could we do with $1.5 billion every week in the United States of 
America for our schools, for providing health care for our children, 
immunizations.
  These are the obvious questions with which most families identify. 
But if the Presidential election campaign is waged on those issues, the 
White House and the Republican Party believe they are at a disadvantage 
because many people, in fact, an amazingly large percentage of 
Americans, say when asked, they feel our country is going in the wrong 
direction in terms of its economics to help working families, in terms 
of creating jobs, keeping good-paying jobs in America, dealing with the 
fact we still continue to be dependent on the Middle East and Saudi 
Arabia for our oil which draws us into a terrible situation of 
dependency, a terrible situation which taxes our resources.
  That is what most Americans will identify as the major issues, and 
those are not issues on which this administration wants to campaign. So 
they attempted today to change the subject. They wanted to change the 
subject by changing the Constitution to deal with same-sex marriages, 
an issue which has not reached a level where it should even be 
addressed by our Constitution.
  I will not go over that whole debate again, but the vote tells the 
story. The Republican Party in the majority in the Senate was unable to 
get a majority of votes to support the President's constitutional 
amendment. The rollcall tells the story. But there are other issues 
which, frankly, we should now move to, issues about which families 
across America do care.
  I know as I travel around my State of Illinois and talk with 
families, businesses, labor union leaders, time and again the issue on 
their minds is the cost of health care in America.
  I met 2 days ago in Chicago with a good friend of mine who heads up 
one of the major labor unions. It is a labor union which represents 
people who work at grocery stores, United Food and Commercial Workers. 
I talked with him about his problems.
  He said: Senator, virtually every strike we have, virtually every 
contract negotiation is over the cost of health insurance. We get our 
workers 50 cents more an hour, and they don't see a penny of it. It all 
goes into health insurance, and there is less coverage this year than 
last year. They are upset with their labor leaders and upset with their 
employers.
  Then you talk with businesspeople, businesses small and large, and I 
hear the same story, businesses which say: We are mom and pop, and we 
can no longer afford health insurance for the people who work for us; 
it is just too expensive.
  There is another element in this whole equation which we cannot 
overlook, and that is the cost of prescription drugs. The cost of 
prescription drugs is not only driving the cost of health insurance to 
record levels, but it is also pushing a lot of people of limited family 
means into terrible choices: whether they can afford to buy the 
prescription drugs that will keep them healthy and, if they do, whether 
they will have to sacrifice the necessities of life. That is a real 
issue. That is an issue this campaign ought to be about. Would it not 
be refreshing if the debate of the week was not over same-sex marriage 
and its impact on families but the cost of health care and the cost of 
prescription drugs and their impact on families? I think that is what 
the voters are waiting for.
  If they have any frustration with those of us in public office, it is 
the

[[Page 15476]]

fact we talk past them, over them, and around them and never direct to 
the issues about which they care.
  Today I am joining Senator Levin of Michigan and Senator Dayton of 
Minnesota in introducing S. 2652.
  We are going to work to put this bill on the Senate calendar under 
rule XIV so that Senator Frist can call it up for debate. In other 
words, what I am trying to do is to accelerate consideration of this 
bill to blow past all the political issues and the political rhetoric 
to get into this legislation. The Democratic leader in the other body 
is working to discharge a companion bill so they can consider it in an 
expedited manner.
  This bill is called the Medicare Prescription Drug Savings Act. We 
need to expedite this bill. We need to put it on the calendar. We need 
to stop wasting time on issues going nowhere because seniors and low-
income individuals are facing escalating prescription drug prices that 
are really hurting them personally and diminishing their Medicare drug 
benefits. Instead of considering bills that do not have the votes to 
pass, like the one we just finished, we should consider something that 
is an urgent priority for Americans. Whether one lives in a blue State, 
a red State, or a purple State, whether one is in a battleground State 
or it is a State that is decided, they are going to find seniors 
concerned about the cost of prescription drugs. This is an issue that 
is bipartisan. It is an issue that affects virtually every family. Over 
the past 5 years, prescription drug prices have risen between 14 and 19 
percent every single year, 5 times the rate of inflation.
  One particularly egregious example of drug price inflation in the 
United States is Novir, an essential ingredient in the HIV cocktail to 
deal with the HIV/AIDS crisis. The price of an average dose of Novir 
went up 400 percent this year from $1,600 a year to more than $7,800. 
That is more than 10 times the cost of the same drug in Canada or in 
Europe. Americans are paying 10 times the cost of Novir for HIV 
patients in the United States as the price that is being paid in Canada 
and Europe.
  Last month, the AARP released a study examining prescription drug 
prices for the 12-month period ending in March 2004. The study revealed 
that the prices charged by pharmaceutical companies to wholesalers for 
the top brand-name drugs used by seniors increased at a rate of 7.2 
percent. That is faster than the 2 previous years, which is troubling 
given that inflation actually fell during that same period of time.
  Drug discount cards have been suggested as the answer for this 
problem, but they are not. A fact sheet sent out by the Department of 
Health and Human Services to 40 million Medicare beneficiaries said 
that a discount card with Medicare's seal of approval can help save 10 
to 25 percent on prescription drugs.
  Now, this is the administration plan, a discount card under Medicare 
for prescription drugs that could save 10 to 25 percent. Well, after 
the same Department published the drug card prices in May, the Chicago 
Tribune newspaper looked at what these cards would mean in a suburb of 
Chicago, the city of Evanston. The Tribune compared the prices at 
pharmacies in Evanston with what seniors will save with drug discount 
cards. Take a look at it.
  In some cases, the people in Evanston, IL, will actually save less 
without the card. The drug Lipitor, with the discount card, is $67.07. 
The lowest retail price, $68.99. Savings, $1.92, or 3-percent savings. 
Celebrex, 2 percent. Norvasc, in fact, costs more under the discounted 
card. So this so-called discount card seems to be of little value with 
drugs that are very popular and well used and prescribed to, such as 
Lipitor, Celebrex, and Norvasc.
  The lack of significant savings from the discount cards that are 
being touted by the administration is not unique to Illinois or the 
city of Evanston. Since President Bush announced the idea of a drug 
discount card in July of 2001, top selling prescription drugs have 
experienced double-digit increases, eroding any savings that might come 
from the card.
  Remember when the Bush administration said their discount cards would 
save seniors 10 to 25 percent? Well, price increases are eroding 
savings. Take a look at what happened to these drugs: Celebrex for 
arthritis pain went up 23 percent; Coumadin, a blood thinner, 22 
percent; Lipitor, 19 percent; Zoloft, 19 percent; Zyprexa, 16 percent; 
Prevacid, 15 percent; and Zocor, 15 percent.
  The prescription drug discount card is not even really keeping up 
with the inflation built into prescription drug prices.
  Some of my colleagues may say it is not important that the drug card 
is not producing much savings because the real benefit will start in 
January of 2006. Unfortunately, rising drug prices will erode that 
benefit, too.
  I will tell my colleagues about one of my constituents. Alois Kessler 
of Skokie, IL, has $3,200 in drug costs, and his income, which is 
fixed, is $28,500. Assuming prescription drug prices continue to rise 
as we have seen them rise and Mr. Kessler stays with the same 
medication he is currently taking, his drug costs will be approximately 
$4,800 by 2006, the first year of the new Part D benefit. His income 
will rise about 3 percent a year. So he will have drug prices at $4,800 
and an income of $31,000 a year.
  The new program reduces his cost by $1,080 in the first year, so he 
will still have to pay out-of-pocket $2,120. By 2015, assuming he is 
still taking the same medication, his drug costs will reach $17,000, 
and his income will only have risen to around $40,400. One just cannot 
keep up with an inflation protection in their Medicare or retirement 
income against drug price increases of this kind.
  What can we do about it? What we can do about it is something this 
bill proposes, and it is something very basic. There is a lot of talk 
in Congress today about bringing drugs in from Canada and other places. 
I am open to that conversation, anything to provide relief to seniors 
and people on limited incomes trying to buy lifesaving drugs.
  Look to the north. Canada selling American drugs made in America, 
inspected in America, approved in America, with research in America, 
for sale in Canada turn out to be a fraction of the cost of what they 
are in the United States. With just 2 percent of the worldwide 
pharmaceutical market, Canada cannot supply the United States no matter 
how many busloads of seniors we send there.
  The United States has 53 percent of the worldwide prescription drug 
market. Half of it is made up of Medicare beneficiaries. Think about 
this for a moment. If Medicare, the program that covers seniors, were 
to sit down with major pharmaceutical companies and bargain for the 
prices of the drugs, think about their bargaining power. They have the 
ability to bring prices down for Americans for drugs sold in America 
rather than reimported in the United States.
  The prescription drug benefit bill we passed expressly prohibits 
Medicare from negotiating for lower prices. That is something the 
pharmaceutical companies wanted, and they won. They won it at the 
expense of American consumers.
  Today, the Veterans' Administration and the Department of Defense 
negotiate for VA drug prices and cut down the cost of drugs by almost 
50 percent. Take a look at some of these popular drugs and the 
difference between what is paid in the drugstores of America and what 
the Federal Government pays for the same drug: Xalatan eyedrops, $41 
under the negotiated price of the VA, and $101 is what is paid in the 
drugstore; Celebrex, the drug we talked about earlier for arthritis, 
$108 on the Federal Supply Schedule and $173 at the drugstore; Lipitor 
for cholesterol, $215 in the Federal system, $446 over the counter; 
Plavix, $257 negotiated, and over-the-counter, $593.
  Once you put the bargaining power of the Federal Government behind 
price negotiations, the prices come down. People can afford the drugs. 
Families can afford them. The cost of health insurance comes down, but 
the profits for the drug companies come down, too. That is why this 
Congress, under the thrall of that special interest group,

[[Page 15477]]

has refused to give Medicare the power to negotiate.
  I will give one specific example we have lived through on Capitol 
Hill. Many people rail about what happened with the anthrax scare a few 
years ago. There was a suggestion that the drug Cipro would be used as 
an antidote to any ill-effects caused by anthrax. We found out Cipro 
was an expensive drug, and Secretary Tommy Thompson said he would 
negotiate with the Bayer Company, the company that makes Cipro, to 
lower prices.
  Look what happened when Secretary Thompson tried to do that. He said:

       Everyone said I wouldn't be able to reduce the price of 
     Cipro. I am a tough negotiator.

  What was the market price when he went into it? It was $4.67 per pill 
for Cipro. When it was all said and done, we were paying 75 cents. When 
someone sits down with the drug companies and says, You are 
overcharging us, we won't pay it, look what happens. Yet when the 
seniors of America look for the same kind of hard-nosed negotiating to 
bring down costs for them, this Congress says no; we don't want to give 
Medicare the ability to negotiate to do the same thing Secretary 
Thompson achieved when it came to these Cipro tablets. Through 
negotiation, Secretary Thompson brought down the price of Cipro by 490 
percent. Good news for the people who needed Cipro; bad news for the 
people who need Medicare. But we can't even ask him to stand up for 
senior citizens in America. Out of the question. Drug companies don't 
want to lose their profitability.
  Incidentally, they are very profitable. Let me show you some charts. 
This indicates the profitability of Fortune 500 drug companies versus 
the profits for all Fortune 500 companies in the year 2002. Look at 
what drug companies on the red bars have done on profitability: 17 
percent as opposed to 3.1 percent; in this chart, 27.6 percent to 10.2 
percent. They are making money hand over fist. They are charging 
seniors and families across America record high prices for drugs. They 
are increasing the cost of those drugs every single year and passing 
them along directly, raising health insurance costs, making it more 
difficult for seniors to keep up with the drugs they need to stay 
healthy.
  I think the bill I have introduced with Senators Levin and Dayton 
answers the need. I believe the bill which we will attempt to put on 
the Senate calendar today, so we can vote it before we leave for 
anybody's convention, is going to go a long way toward helping 
America's seniors. The Medicare Prescription Drug Savings Act instructs 
the Secretary of Health and Human Services to offer a nationwide 
Medicare-delivered prescription drug benefit in addition to the PDP and 
PPO plans available in the 10 regions. We keep in place what is in the 
Medicare bill passed last year, we just add a new player. The new 
player is Medicare providing prescription drugs with negotiated prices. 
We set a uniform national premium of $35 for the first year for this 
prescription drug benefit, and we negotiate group purchasing agreements 
on behalf of beneficiaries who choose to receive their drugs through 
the Medicare-administered benefit. It is voluntary. Those who choose to 
receive their drugs will have negotiated lower prices. Those who enroll 
can stay enrolled as long as they want.
  Not only will this bill provide seniors with lower cost drugs, it 
will give them a choice to enroll in a Medicare-delivered plan, cutting 
down on the confusion the privately delivered system has already 
created. Critics and the pharmaceutical industry would say my bill is 
about price controls and big government. How do you explain the 
Veterans' Administration? Aren't we saying for our veterans we want to 
bring down the cost of pharmaceutical drugs? Have you spoken to a 
veteran lately who has gone to the VA hospital to sign up for the 
monthly drug benefit because it is so attractive for him and his 
family? That tells me government can play an important role and have a 
voice in buying in bulk and bringing down costs.
  Who supports this bill we are trying to bring to the calendar? The 
Alliance for Retired Americans, AFL-CIO, American Nurses Association, 
Campaign for America's Future, USAction, Consumers Union, the Service 
Employees International Union, AFSCME, the American Federation of 
Teachers, Families USA, the Center for Medicare Advocacy, and the 
National Committee to Preserve Social Security and Medicare.
  If you don't think this is a timely issue, pick up this morning's New 
York Times and take a look at the front-page story. The bill we passed, 
signed by President Bush, has America running in the wrong direction. 
Front-page headline:

       Drug Law [signed by President Bush] Is Seen Leading To Cuts 
     in Retiree Plans.

  Let me read one or two paragraphs:

       New government estimates suggest that employers will reduce 
     or eliminate prescription drug benefits for 3.8 million 
     retirees when Medicare offers its coverage in 2006.

  That is the plan we referred to earlier passed by Congress.

       That represents one-third of all retirees with employer-
     sponsored drug coverage, according to documents from the 
     Department of Health and Human Services.
       No aspect of the new law causes more concern among retirees 
     than the possibility they might lose benefits they already 
     have.

  That is what the administration offers us: discount cards which don't 
offer a real discount, the loss of prescription drug coverage already 
available for 3.8 million retirees, and, finally, a plan that is 
offered to seniors that is almost impossible to describe and follow 
because it is so complicated in its minutiae and detail, and it does 
not include a provision that allows Medicare to bargain for the best 
prices, the same bargaining power which we use over and over again to 
help veterans and many other Americans.
  Before the end of the day, we are going to ask that this bill be 
brought to the calendar. I don't know what else we will consider today, 
but if my colleagues in the Senate will go home and ask a random sample 
of anybody on the street corner, or in the shopping center, about the 
cost of prescription drugs and what it means, they will understand that 
whatever the next item of business might be in the Senate, it cannot 
really match in importance what this issue means to families across the 
United States of America.
  I yield the floor.
                                 ______
                                 
      Mr. BIDEN (for himself, Mr. Specter, Mrs. Feinstein, Mr. Kyl, Mr. 
        Hollings, and Mr. Allen):
  S. 2653. A bill to make it a criminal act to willfully use a weapon 
with the intent to cause death or serious bodily injury to any person 
while on board a passenger vessel, and for other purposes; to the 
Committee on the Judiciary.
  Mr. BIDEN. Mr. President, I rise today to introduce the Reducing 
Crime and Terrorism at America's Seaports Act, along with Senators 
Specter, Feinstein, Kyl, Hollings, and Allen. Today's bill is a revised 
version of legislation Senator Specter and I introduced last year, S. 
1587. The bill benefits from the expertise of the Chairman and Ranking 
Member of the Judiciary Subcommittee on Terrorism, Senators Kyl and 
Feinstein. My colleagues have their own bill on this subject, S. 746, 
and I am grateful that they are original cosponsors of today's measure. 
The Ranking Member of the Commerce Committee, my good friend Senator 
Hollings, has also been a leader in this area and today's bill 
incorporates suggestions made by him and his able staff. Senator 
Specter and I have worked long and hard on this issue, and it is my 
sincere hope and expectation that the bill we introduce today is a 
consensus measure that will swiftly pass the Senate this year.
  Today, almost three years after the devastating attacks of September 
11, our Nation's transportation infrastructure remains vulnerable to 
terrorist activity. American ports are critical to the nation's 
commercial well-being, and we must do all that we can to ensure that 
our laws keep pace with the threats that they face.
  Recently, Homeland Security Secretary Ridge traveled to the Port of 
Los Angeles/Long Beach to announce that the Untied States was in full 
compliance with the International Ship

[[Page 15478]]

and Port Facility Security Code, and that his department was working to 
meet the requirements of the Maritime Transportation Security Act. I 
welcome those announcements, but there is more we should be doing to 
protect our ports and close existing gaps in our criminal code. The 
bill Senator Specter and I introduce today starts to close those gaps.
  Our bill will double the maximum term of imprisonment for anyone who 
fraudulently gains access to a seaport or waterfront. The Interagency 
Commission on Crime and Security at U.S. Seaports concluded that 
``control of access to the seaport or sensitive areas within the 
seaports'' poses one of the greatest potential threats to port 
security. Such unauthorized access continues and exposes the nation's 
seaports, and the communities that surround them, to acts of terrorism, 
sabotage or theft. Our bill will help deter those who seek unauthorized 
access to our ports by imposing stiffer penalties.
  Our bill would also increase penalties for noncompliance with certain 
manifest reporting and record-keeping requirements, including 
information regarding the content of cargo containers and the country 
from which the shipments originated. An estimated 95 percent of the 
cargo shipped to the U.S. from foreign countries, other than Canada and 
Mexico, arrives throughout seaports. Accordingly, the Interagency 
Commission found that this enormous flow of goods through U.S. ports 
provides a tempting target for terrorists and others to smuggle illicit 
cargo into the country, while also making ``our ports potential targets 
for terrorist attacks.'' In addition, the smuggling of non-dangerous, 
but illicit, cargo may be used to finance terrorism. Despite the 
gravity of the threat, we continue to operate in an environment in 
which terrorists and criminals can evade detection by underreporting 
and misreporting the content of cargo. Increased penalties can help 
here.
  The legislation we introduce today would also make it a crime for a 
vessel operator to fail to slow or stop a ship once ordered to do so by 
a federal law enforcement officer; for any person on board a vessel to 
impede boarding or other law enforcement action authorized by federal 
law; or for any person on board a vessel to provide false information 
to a federal law enforcement officer. The Coast Guard is the main 
federal agency responsible for law enforcement at sea. Yet, its ability 
to force a vessel to stop or be boarded is limited. While the Coast 
Guard has the authority to use whatever force is reasonably necessary, 
a vessel operator's refusal to stop is not currently a crime. This bill 
would create that offense.
  In addition, the Coast Guard maintains over 50,000 navigational aids 
on more than 25,000 miles of waterways. These aids, which are relied 
upon by all commercial, military and recreational mariners, are 
critical for safe navigation by commercial and military vessels. They 
could be inviting targets for terrorists. Our legislation would make it 
a crime to endanger the safe navigation of a ship by damaging any 
maritime navigational aid maintained by the Coast Guard; place in the 
waters anything which is likely to damage a vessel or its cargo, 
interfere with a vessel's safe navigation, or interfere with maritime 
commerce; or dump a hazardous substance into U.S. waters, with the 
intent to endanger human life or welfare.
  Each year, thousands of ships enter and leave the U.S. through 
seaports. Smugglers and terrorists exploit this massive flow of 
maritime traffic to transport dangerous materials and dangerous people 
into this country. This legislation would make it a crime to use a 
vessel to smuggle into the United States either a terrorist or any 
explosive or other dangerous material for use in committing a terrorist 
act. The bill would also make it a crime to damage or destroy any part 
of a ship, a maritime facility, or anything used to load or unload 
cargo and passengers; commit a violent assault on anyone at a maritime 
facility; or knowingly communicate a hoax in a way which endangers the 
safety of a vessel. In addition, the Interagency Commission concluded 
that existing laws are not stiff enough to stop certain crimes, 
including cargo theft, at seaports. Our legislation would increase the 
maximum term of imprisonment for low-level thefts of interstate or 
foreign shipments from 1 year to 3 years and expand the statute to 
outlaw theft of goods from trailers, cargo containers, warehouses, and 
similar venues.
  I thank my colleagues for their support of this measure, and I look 
forward to its prompt consideration by the full Senate.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2653

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

     SECTION 1. SHORT TITLE.

       This title may be cited as the ``Reducing Crime and 
     Terrorism at America's Seaports Act of 2004''.

     SEC. 2. ENTRY BY FALSE PRETENSES TO ANY SEAPORT.

       (a) In General.--Section 1036 of title 18, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (2), by striking ``or'' at the end;
       (B) by redesignating paragraph (3) as paragraph (4); and
       (C) by inserting after paragraph (2) the following:
       ``(3) any secure or restricted area (as that term is 
     defined under section 2285(c)) of any seaport; or'';
       (2) in subsection (b)(1), by striking ``5'' and inserting 
     ``10'';
       (3) in subsection (c)(1), by inserting ``, captain of the 
     seaport,'' after ``airport authority''; and
       (4) in the section heading, by inserting ``or seaport'' 
     after ``airport''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 47 of title 18 is amended by striking 
     the matter relating to section 1036 and inserting the 
     following:

``1036. Entry by false pretenses to any real property, vessel, or 
              aircraft of the United States or secure area of any 
              airport or seaport.''.

       (c) Definition of Seaport.--Chapter 1 of title 18, United 
     States Code, is amended by adding at the end the following:

     ``Sec. 25. Definition of seaport.

       ``As used in this title, the term `seaport' means all 
     piers, wharves, docks, and similar structures to which a 
     vessel may be secured, areas of land, water, or land and 
     water under and in immediate proximity to such structures, 
     and buildings on or contiguous to such structures, and the 
     equipment and materials on such structures or in such 
     buildings.''.
       (d) Technical and Conforming Amendment.--The table of 
     sections for chapter 1 of title 18 is amended by inserting 
     after the matter relating to section 24 the following:

``25. Definition of seaport.''.

     SEC. 3. CRIMINAL SANCTIONS FOR FAILURE TO HEAVE TO, 
                   OBSTRUCTION OF BOARDING, OR PROVIDING FALSE 
                   INFORMATION.

       (a) Offense.--Chapter 109 of title 18, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 2237. Criminal sanctions for failure to heave to, 
       obstruction of boarding, or providing false information.

       ``(a)(1) It shall be unlawful for the master, operator, or 
     person in charge of a vessel of the United States, or a 
     vessel subject to the jurisdiction of the United States, to 
     knowingly fail to obey an order by an authorized Federal law 
     enforcement officer to heave to that vessel.
       ``(2) It shall be unlawful for any person on board a vessel 
     of the United States, or a vessel subject to the jurisdiction 
     of the United States, to--
       ``(A) forcibly resist, oppose, prevent, impede, intimidate, 
     or interfere with a boarding or other law enforcement action 
     authorized by any Federal law, or to resist a lawful arrest; 
     or
       ``(B) provide information to a Federal law enforcement 
     officer during a boarding of a vessel regarding the vessel's 
     destination, origin, ownership, registration, nationality, 
     cargo, or crew, which that person knows is false.
       ``(b) This section does not limit the authority of a 
     customs officer under section 581 of the Tariff Act of 1930 
     (19 U.S.C. 1581), or any other provision of law enforced or 
     administered by the Secretary of the Treasury or the 
     Undersecretary for Border and Transportation Security of the 
     Department of Homeland Security, or the authority of any 
     Federal law enforcement officer under any law of the United 
     States, to order a vessel to stop or heave to.
       ``(c) A foreign nation may consent or waive objection to 
     the enforcement of United States law by the United States 
     under this section by radio, telephone, or similar oral or 
     electronic means. Consent or waiver may be proven by 
     certification of the Secretary of State or the designee of 
     the Secretary of State.

[[Page 15479]]

       ``(d) In this section--
       ``(1) the term `Federal law enforcement officer' has the 
     meaning given the term in section 115(c);
       ``(2) the term `heave to' means to cause a vessel to slow, 
     come to a stop, or adjust its course or speed to account for 
     the weather conditions and sea state to facilitate a law 
     enforcement boarding;
       ``(3) the term `vessel subject to the jurisdiction of the 
     United States' has the meaning given the term in section 2(c) 
     of the Maritime Drug Law Enforcement Act (46 App. U.S.C. 
     1903(b)); and
       ``(4) the term `vessel of the United States' has the 
     meaning given the term in section 2(c) of the Maritime Drug 
     Law Enforcement Act (46 App. U.S.C. 1903(b)).
       ``(e) Any person who intentionally violates the provisions 
     of this section shall be fined under this title, imprisoned 
     for not more than 5 years, or both.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 109, title 18, United States Code, is 
     amended by inserting after the item for section 2236 the 
     following:

``2237. Criminal sanctions for failure to heave to, obstruction of 
              boarding, or providing false information.''.

     SEC. 4. USE OF A DANGEROUS WEAPON OR EXPLOSIVE ON A PASSENGER 
                   VESSEL.

       Section 1993 of title 18, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by inserting ``, passenger vessel,'' 
     after ``transportation vehicle'';
       (B) in paragraphs (2)--
       (i) by inserting ``, passenger vessel,'' after 
     ``transportation vehicle''; and
       (ii) by inserting ``or owner of the passenger vessel'' 
     after ``transportation provider'' each place that term 
     appears;
       (C) in paragraph (3)--
       (i) by inserting ``, passenger vessel,'' after 
     ``transportation vehicle'' each place that term appears; and
       (ii) by inserting ``or owner of the passenger vessel'' 
     after ``transportation provider'' each place that term 
     appears;
       (D) in paragraph (5)--
       (i) by inserting ``, passenger vessel,'' after 
     ``transportation vehicle''; and
       (ii) by inserting ``or owner of the passenger vessel'' 
     after ``transportation provider''; and
       (E) in paragraph (6), by inserting ``or owner of a 
     passenger vessel'' after ``transportation provider'' each 
     place that term appears;
       (2) in subsection (b)(1), by inserting ``, passenger 
     vessel,'' after ``transportation vehicle''; and
       (3) in subsection (c)--
       (A) by redesignating paragraph (6) through (8) as 
     paragraphs (7) through (9); and
       (B) by inserting after paragraph (5) the following:
       ``(6) the term `passenger vessel' has the meaning given 
     that term in section 2101(22) of title 46, United States 
     Code, and includes a small passenger vessel, as that term is 
     defined under section 2101(35) of that title.''.

     SEC. 5. CRIMINAL SANCTIONS FOR VIOLENCE AGAINST MARITIME 
                   NAVIGATION, PLACEMENT OF DESTRUCTIVE DEVICES, 
                   AND MALICIOUS DUMPING.

       (a) Violence Against Maritime Navigation.--Section 2280(a) 
     of title 18, United States Code, is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (H), by striking ``(G)'' and inserting 
     ``(H)'';
       (B) by redesignating subparagraphs (F), (G), and (H) as 
     subparagraphs (G), (H), and (I), respectively; and
       (C) by inserting after subparagraph (E) the following:
       ``(F) destroys, seriously damages, alters, moves, or 
     tampers with any aid to maritime navigation maintained by the 
     Saint Lawrence Seaway Development Corporation under the 
     authority of section 4 of the Act of May 13, 1954 (33 U.S.C. 
     984), by the Coast Guard pursuant to section 81 of title 14, 
     United States Code, or lawfully maintained under authority 
     granted by the Coast Guard pursuant to section 83 of title 
     14, United States Code, if such act endangers or is likely to 
     endanger the safe navigation of a ship;''; and
       (2) in paragraph (2) by striking ``(C) or (E)'' and 
     inserting ``(C), (E), or (F)''.
       (b) Placement of Destructive Devices.--
       (1) In general.--Chapter 111 of title 18, United States 
     Code, is amended by adding after section 2280 the following:

     ``Sec. 2280A. Devices or substances in waters of the United 
       States likely to destroy or damage ships or to interfere 
       with maritime commerce

       ``(a) A person who knowingly places, or causes to be 
     placed, in navigable waters of the United States, by any 
     means, a device or substance which is likely to destroy or 
     cause damage to a vessel or its cargo, or cause interference 
     with the safe navigation of vessels, or interference with 
     maritime commerce, such as by damaging or destroying marine 
     terminals, facilities, and any other marine structure or 
     entity used in maritime commerce, with the intent of causing 
     such destruction or damage, or interference with the safe 
     navigation of vessels or with maritime commerce, shall be 
     fined under this title, imprisoned for any term of years or 
     for life, or both; and if the death of any person results 
     from conduct prohibited under this subsection, may be 
     punished by death.
       ``(b) Nothing in this section shall be construed to apply 
     to otherwise lawfully authorized and conducted activities of 
     the United States Government.''.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 111 of title 18, United States Code, is 
     amended by adding after the item related to section 2280 the 
     following:

``2280A. Devices or substances in waters of the United States likely to 
              destroy or damage ships or to interfere with maritime 
              commerce.''.

       (c) Malicious Dumping.--
       (1) In general.--Chapter 111 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 2282. Knowing discharge or release

       ``(a) Endangerment of Human Life.--Any person who knowingly 
     discharges or releases oil, a hazardous material, a noxious 
     liquid substance, or any other dangerous substance into the 
     navigable waters of the United States or the adjoining 
     shoreline with the intent to endanger human life, health, or 
     welfare shall be fined under this title and imprisoned for 
     any term of years or for life.
       ``(b) Endangerment of Marine Environment.--Any person who 
     knowingly discharges or releases oil, a hazardous material, a 
     noxious liquid substance, or any other dangerous substance 
     into the navigable waters of the United States or the 
     adjacent shoreline with the intent to endanger the marine 
     environment shall be fined under this title, imprisoned not 
     more than 30 years, or both.
       ``(c) Definitions.--In this section:
       ``(1) Discharge.--The term `discharge' means any spilling, 
     leaking, pumping, pouring, emitting, emptying, or dumping.
       ``(2) Hazardous material.--The term `hazardous material' 
     has the meaning given the term in section 2101(14) of title 
     46, United States Code.
       ``(3) Marine environment.--The term `marine environment' 
     has the meaning given the term in section 2101(15) of title 
     46, United States Code.
       ``(4) Navigable waters.--The term `navigable waters' has 
     the meaning given the term in section 1362(7) of title 33, 
     and also includes the territorial sea of the United States as 
     described in Presidential Proclamation 5928 of December 27, 
     1988.
       ``(5) Noxious liquid substance.--The term `noxious liquid 
     substance' has the meaning given the term in the MARPOL 
     Protocol defined in section 2(1) of the Act to Prevent 
     Pollution from Ships (33 U.S.C. 1901(a)(3)).
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 111 of title 18, United States Code, is 
     amended by adding at the end the following:

``2282. Knowing discharge or release.''.

     SEC. 6. TRANSPORTATION OF DANGEROUS MATERIALS AND TERRORISTS.

       (a) Transportation of Dangerous Materials and Terrorists.--
     Chapter 111 of title 18, as amended by section 5 of this Act, 
     is amended by adding at the end the following:

     ``Sec. 2283. Transportation of explosive, biological, 
       chemical, or radioactive or nuclear materials.

       ``(a) In General.--Any person who knowingly and willfully 
     transports aboard any vessel within the United States, on the 
     high seas, or having United States nationality, an explosive 
     or incendiary device, biological agent, chemical weapon, or 
     radioactive or nuclear material, knowing that any such item 
     is intended to be used to commit an offense listed under 
     section 2332b(g)(5)(B), shall be fined under this title, 
     imprisoned for any term of years or for life, or both; and if 
     the death of any person results from conduct prohibited by 
     this subsection, may be punished by death.
       ``(b) Definitions.--In this section:
       ``(1) Biological agent.--The term `biological agent' means 
     any biological agent, toxin, or vector (as those terms are 
     defined in section 178).
       ``(2) By-product material.--The term `by-product material' 
     has the meaning given that term in section 11(e) of the 
     Atomic Energy Act of 1954 (42 U.S.C. 2014(e)).
       ``(3) Chemical weapon.--The term `chemical weapon' has the 
     meaning given that term in section 229F.
       ``(4) Explosive or incendiary device.--The term `explosive 
     or incendiary device' has the meaning given the term in 
     section 232(5).
       ``(5) Nuclear material.--The term `nuclear material' has 
     the meaning given that term in section 831(f)(1).
       ``(6) Radioactive material.--The term `radioactive 
     material' means--
       ``(A) source material and special nuclear material, but 
     does not include natural or depleted uranium;
       ``(B) nuclear by-product material;
       ``(C) material made radioactive by bombardment in an 
     accelerator; or
       ``(D) all refined isotopes of radium.
       ``(8) Source material.--The term `source material' has the 
     meaning given that term in section 11(z) of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2014(z)).
       ``(9) Special nuclear material.--The term `special nuclear 
     material' has the meaning given that term in section 11(aa) 
     of the Atomic Energy Act of 1954 (42 U.S.C. 2014(aa)).

[[Page 15480]]



     ``Sec. 2284. Transportation of terrorists.

       ``(a) In General.--Any person who knowingly and willfully 
     transports any terrorist aboard any vessel within the United 
     States, on the high seas, or having United States 
     nationality, knowing that the transported person is a 
     terrorist, shall be fined under this title, imprisoned for 
     any term of years or for life, or both.
       ``(b) Defined Term.--In this section, the term `terrorist' 
     means any person who intends to commit, or is avoiding 
     apprehension after having committed, an offense listed under 
     section 2332b(g)(5)(B).''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 111 of title 18, United States Code, as 
     amended by this Act, is amended by adding at the end the 
     following:

``2283. Transportation of explosive, chemical, biological, or 
              radioactive or nuclear materials.
``2284. Transportation of terrorists.''.

     SEC. 7. DESTRUCTION OR INTERFERENCE WITH VESSELS OR MARITIME 
                   FACILITIES.

       (a) In General.--Title 18, United States Code, is amended 
     by inserting after chapter 111 the following:

   ``CHAPTER 111A--DESTRUCTION OF, OR INTERFERENCE WITH, VESSELS OR 
                          MARITIME FACILITIES

``Sec.
``2290. Jurisdiction and scope.
``2291. Destruction of vessel or maritime facility.
``2292. Imparting or conveying false information.
``2293. Bar to prosecution.

     ``Sec. 2290. Jurisdiction and scope

       ``(a) Jurisdiction.--There is jurisdiction over an offense 
     under this chapter if the prohibited activity takes place--
       ``(1) within the United States or within waters subject to 
     the jurisdiction of the United States; or
       ``(2) outside United States and--
       ``(A) an offender or a victim is a national of the United 
     States (as that term is defined under section 101(a)(22) of 
     the Immigration and Nationality Act (8 U.S.C. 1101(a)(22));
       ``(B) the activity involves a vessel in which a national of 
     the United States was on board; or
       ``(C) the activity involves a vessel of the United States 
     (as that term is defined under section 2(c) of the Maritime 
     Drug Law Enforcement Act (42 App. U.S.C. 1903(c)).
       ``(b) Scope.--Nothing in this chapter shall apply to 
     otherwise lawful activities carried out by or at the 
     direction of the United States Government.

     ``Sec. 2291. Destruction of vessel or maritime facility

       ``(a) Offense.--Whoever willfully--
       ``(1) sets fire to, damages, destroys, disables, or wrecks 
     any vessel;
       ``(2) places or causes to be placed a destructive device, 
     as defined in section 921(a)(4), or destructive substance, as 
     defined in section 13, in, upon, or in proximity to, or 
     otherwise makes or causes to be made unworkable or unusable 
     or hazardous to work or use, any vessel, or any part or other 
     materials used or intended to be used in connection with the 
     operation of a vessel;
       ``(3) sets fire to, damages, destroys, or disables or 
     places a destructive device or substance in, upon, or in 
     proximity to, any maritime facility, including but not 
     limited to, any aid to navigation, lock, canal, or vessel 
     traffic service facility or equipment, or interferes by force 
     or violence with the operation of such facility, if such 
     action is likely to endanger the safety of any vessel in 
     navigation;
       ``(4) sets fire to, damages, destroys, or disables or 
     places a destructive device or substance in, upon, or in 
     proximity to, any appliance, structure, property, machine, or 
     apparatus, or any facility or other material used, or 
     intended to be used, in connection with the operation, 
     maintenance, loading, unloading, or storage of any vessel or 
     any passenger or cargo carried or intended to be carried on 
     any vessel;
       ``(5) performs an act of violence against or incapacitates 
     any individual on any vessel, if such act of violence or 
     incapacitation is likely to endanger the safety of the vessel 
     or those on board;
       ``(6) performs an act of violence against a person that 
     causes or is likely to cause serious bodily injury, as 
     defined in section 1365, in, upon, or in proximity to, any 
     appliance, structure, property, machine, or apparatus, or any 
     facility or other material used, or intended to be used, in 
     connection with the operation, maintenance, loading, 
     unloading, or storage of any vessel or any passenger or cargo 
     carried or intended to be carried on any vessel;
       ``(7) communicates information, knowing the information to 
     be false and under circumstances in which such information 
     may reasonably be believed, thereby endangering the safety of 
     any vessel in navigation; or
       ``(8) attempts or conspires to do anything prohibited under 
     paragraphs (1) through (7):

     shall be fined under this title or imprisoned not more than 
     20 years, or both.
       ``(b) Limitation.--Subsection (a) shall not apply to any 
     person that is engaging in otherwise lawful activity, such as 
     normal repair and salvage activities, and the lawful 
     transportation of hazardous materials.
       ``(c) Penalty.--Whoever is fined or imprisoned under 
     subsection (a) as a result of an act involving a vessel that, 
     at the time of the violation, carried high-level radioactive 
     waste (as that term is defined in section 2(12) of the 
     Nuclear Waste Policy Act of 1982 (42 U.S.C. 10101(12)) or 
     spent nuclear fuel (as that term is defined in section 2(23) 
     of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 
     10101(23)), shall be fined under title 18, imprisoned for a 
     term up to life, or both.
       ``(d) Penalty When Death Results.--Whoever is convicted of 
     any crime prohibited by subsection (a), which has resulted in 
     the death of any person, shall be subject also to the death 
     penalty or to imprisonment for life.
       ``(e) Threats.--Whoever willfully imparts or conveys any 
     threat to do an act which would violate this chapter, with an 
     apparent determination and will to carry the threat into 
     execution, shall be fined under this title, imprisoned not 
     more than 5 years, or both, and is liable for all costs 
     incurred as a result of such threat.

     ``Sec. 2292. Imparting or conveying false information

       ``(a) In General.--Whoever imparts or conveys or causes to 
     be imparted or conveyed false information, knowing the 
     information to be false, concerning an attempt or alleged 
     attempt being made or to be made, to do any act which would 
     be a crime prohibited by this chapter or by chapter 111 of 
     this title, shall be subject to a civil penalty of not more 
     than $5,000, which shall be recoverable in a civil action 
     brought in the name of the United States.
       ``(b) Malicious Conduct.--Whoever willfully and 
     maliciously, or with reckless disregard for the safety of 
     human life, imparts or conveys or causes to be imparted or 
     conveyed false information, knowing the information to be 
     false, concerning an attempt or alleged attempt to do any act 
     which would be a crime prohibited by this chapter or by 
     chapter 111 of this title, shall be fined under this title, 
     imprisoned not more than 5 years, or both.
       ``(c) Jurisdiction.--
       ``(1) In general.--Except as provided under paragraph (2), 
     section 2290(a) shall not apply to any offense under this 
     section.
       ``(2) Jurisdiction.--Jurisdiction over an offense under 
     this section shall be determined in accordance with the 
     provisions applicable to the crime prohibited by this 
     chapter, or by chapter 2, 97, or 111 of this title, to which 
     the imparted or conveyed false information relates, as 
     applicable.

     ``Sec. 2293. Bar to prosecution

       ``(a) In general.--It is a bar to prosecution under this 
     chapter if--
       ``(1) the conduct in question occurred within the United 
     States in relation to a labor dispute, and such conduct is 
     prohibited as a felony under the law of the State in which it 
     was committed; or
       ``(2) such conduct is prohibited as a misdemeanor under the 
     law of the State in which it was committed.
       ``(b) Definitions.--In this section:
       ``(1) Labor dispute.--The term ``labor dispute'' has the 
     same meaning given that term in section 113(c) of the Norris-
     LaGuardia Act (29 U.S.C. 113(c)).
       ``(2) State.--The term ``State'' means a State of the 
     United States, the District of Columbia, and any 
     commonwealth, territory, or possession of the United 
     States.''.
       (c) Technical and Conforming Amendment.--The table of 
     chapters at the beginning of title 18, United States Code, is 
     amended by inserting after the item for chapter 111 the 
     following:

``111A. Destruction of, or interference with, vessels or maritime 
    facilities..................................................2290''.

     SEC. 8. THEFT OF INTERSTATE OR FOREIGN SHIPMENTS OR VESSELS.

       (a) Theft of Interstate or Foreign Shipments.--Section 659 
     of title 18, United States Code, is amended--
       (1) in the first undesignated paragraph--
       (A) by inserting ``trailer,'' after ``motortruck,'';
       (B) by inserting ``air cargo container,'' after 
     ``aircraft,''; and
       (C) by inserting ``, or from any intermodal container, 
     trailer, container freight station, warehouse, or freight 
     consolidation facility,'' after ``air navigation facility'';
       (2) in the fifth undesignated paragraph, by striking ``one 
     year'' and inserting ``3 years''; and
       (3) by inserting after the first sentence in the eighth 
     undesignated paragraph the following: ``For purposes of this 
     section, goods and chattel shall be construed to be moving as 
     an interstate or foreign shipment at all points between the 
     point of origin and the final destination (as evidenced by 
     the waybill or other shipping document of the shipment), 
     regardless of any temporary stop while awaiting transhipment 
     or otherwise.''.
       (b) Stolen Vessels.--
       (1) In general.--Section 2311 of title 18, United States 
     Code, is amended by adding at the end the following:
       ```Vessel' means any watercraft or other contrivance used 
     or designed for transportation or navigation on, under, or 
     immediately above, water.''.
       (2) Transportation and sale of stolen vessels.--Sections 
     2312 and 2313 of title 18,

[[Page 15481]]

     United States Code, are each amended by striking ``motor 
     vehicle or aircraft'' and inserting ``motor vehicle, vessel, 
     or aircraft''.
       (c) Review of Sentencing Guidelines.--Pursuant to section 
     994 of title 28, United States Code, the United States 
     Sentencing Commission shall review the Federal Sentencing 
     Guidelines to determine whether sentencing enhancement is 
     appropriate for any offense under section 659 or 2311 of 
     title 18, United States Code, as amended by this Act.
       (d) Annual Report of Law Enforcement Activities.--The 
     Attorney General shall annually submit to Congress a report, 
     which shall include an evaluation of law enforcement 
     activities relating to the investigation and prosecution of 
     offenses under section 659 of title 18, United States Code, 
     as amended by this Act.
       (e) Reporting of Cargo Theft.--The Attorney General shall 
     take the steps necessary to ensure that reports of cargo 
     theft collected by Federal, State, and local officials are 
     reflected as a separate category in the Uniform Crime 
     Reporting System, or any successor system, by no later than 
     December 31, 2005.

     SEC. 9. INCREASED PENALTIES FOR NONCOMPLIANCE WITH MANIFEST 
                   REQUIREMENTS.

       (a) Reporting, Entry, Clearance Requirements.--Section 
     436(b) of the Tariff Act of 1930 (19 U.S.C. 1436(b)) is 
     amended by--
       (1) striking ``or aircraft pilot'' and inserting ``, 
     aircraft pilot, operator, owner of such vessel, vehicle or 
     aircraft or any other responsible party (including non-vessel 
     operating common carriers)'';
       (2) striking ``$5,000'' and inserting ``$10,000''; and
       (3) striking ``$10,000'' and inserting ``$25,000''.
       (b) Criminal Penalty.--Section 436(c) of the Tariff Act of 
     1930 (19 U.S.C. 1436(c)) is amended by striking ``$2,000'' 
     and inserting ``$10,000''.
       (c) Falsity or Lack of Manifest.--Section 584(a)(1) of the 
     Tariff Act of 1930 (19 U.S.C. 1584(a)(1)) is amended by 
     striking ``$1,000'' in each place it occurs and inserting 
     ``$10,000''.

     SEC. 10. STOWAWAYS ON VESSELS OR AIRCRAFT.

       Section 2199 of title 18, United States Code, is amended by 
     striking ``Shall be fined under this title or imprisoned not 
     more than one year, or both.'' and inserting the following:
       ``(1) shall be fined under this title, imprisoned not more 
     than 5 years, or both;
       ``(2) if the person commits an act proscribed by this 
     section, with the intent to commit serious bodily injury, and 
     serious bodily injury occurs (as defined under section 1365, 
     including any conduct that, if the conduct occurred in the 
     special maritime and territorial jurisdiction of the United 
     States, would violate section 2241 or 2242) to any person 
     other than a participant as a result of a violation of this 
     section, shall be fined under this title, imprisoned not more 
     than 20 years, or both; and
       ``(3) if an individual commits an act proscribed by this 
     section, with the intent to cause death, and if the death of 
     any person other than a participant occurs as a result of a 
     violation of this section, shall be fined under this title, 
     imprisoned for any number of years or for life, or both.''.

     SEC. 11. BRIBERY AFFECTING PORT SECURITY.

       (a) In General.--Chapter 11 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 226. Bribery affecting port security

       ``(a) In General.--Whoever knowingly--
       ``(1) directly or indirectly, corruptly gives, offers, or 
     promises anything of value to any public or private person, 
     with intent--
       ``(A) to commit international or domestic terrorism (as 
     that term is defined under section 2331);
       ``(B) to influence any action or any person to commit or 
     aid in committing, or collude in, or allow, any fraud, or 
     make opportunity for the commission of any fraud affecting 
     any secure or restricted area or seaport; or
       ``(C) to induce any official or person to do or omit to do 
     any act in violation of the fiduciary duty of such official 
     or person which affects any secure or restricted area or 
     seaport; or
       ``(2) directly or indirectly, corruptly demands, seeks, 
     receives, accepts, or agrees to receive or accept anything of 
     value personally or for any other person or entity in return 
     for--
       ``(A) being influenced in the performance of any official 
     act affecting any secure or restricted area or seaport; and
       ``(B) knowing that such influence will be used to commit, 
     or plan to commit, international or domestic terrorism

     ``shall be fined under this title, imprisoned not more than 
     15 years, or both.
       ``(b) Definition.--In this section, the term `secure or 
     restricted area' has the meaning given that term in section 
     2285(c).''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 11 of title 18, United States Code, is 
     amended by adding at the end the following:

``226. Bribery affecting port security.''.

  Mrs. FEINSTEIN. Mr. President, I rise today, along with Senators 
Biden, Specter, Kyl, Hollings and Allen, to introduce the Reducing 
Crime and Terrorism at America's Seaports Act of 2004--legislation 
designed to deter, prevent and punish a terrorist attack at or through 
one of our Nation's seaports.
  I would like to thank Senator Kyl for joining me in sponsoring this 
bill, as well as Senators Biden, Specter, Hollings and Allen for their 
leadership and hard work on this critical matter.
  Last year, Senator Kyl and I introduced the Anti-Terrorism and Port 
Security Act of 2003. That bill contained a set of comprehensive 
measures to enhance the security of our ports. At the same time, 
Senators Biden and Specter were working on legislation largely focused 
on the criminal law aspect of Port Security.
  Since that time we have joined together to craft the bill now before 
us. The legislation is narrow in focus, limited primarily to criminal 
law provisions. It is my hope that it will enjoy strong bipartisan 
support.
  I also hope we can continue to work towards a more comprehensive 
approach to seaport security in the coming months.
  Our nation's seaports represent the soft underbelly of our Nation's 
homeland security. Our adversaries, including al-Qaida and other 
terrorist groups, have the plans and capabilities to launch a maritime 
attack. In fact, just last week six al-Qaida associates were charged 
with planning the 2000 attack on the U.S.S. Cole. in Yemen that left 19 
American sailors dead.
  Millions of shipping containers pass through our ports each month. A 
single container has room for as much as 60,000 pounds of explosives--
10 to 15 times the amount in the Ryder truck used to blow up the Murrah 
Federal Building in Oklahoma City. When you consider that a single ship 
can carry as many as 8,000 containers at one time, the vulnerability of 
our seaports is alarming.
  Worse, a suitcase-sized nuclear device or radiological ``dirty bomb'' 
could also be placed in a container and shipped into the country. With 
the current monitoring system, the odds are that the container would 
never be inspected. And, even if the container was inspected, it would 
be too late.
  In addition to the danger such attacks present to human lives, an 
attack on or through a seaport could have devastating economic 
consequences. Excluding trade with Mexico and Canada, America's ports 
handle 95 percent of goods imported and exported from the U.S. That 
means 800 million tons of cargo valued at approximately $600 billion. A 
terrorist attack would bring our port operations to a complete 
standstill. To give you even a small glimpse of what such a disruption 
could mean, last year's West Coast labor dispute cost the U.S. economy 
somewhere between $1 and $2 billion per day--a total of $10 to $20 
billion.
  In its December 2002 report, the Hart-Rudman Terrorism Task Force 
described what a terrorist attack at or through one of our ports might 
mean in economic terms: ``If an explosive device were loaded in a 
container and set off in a port, it would almost automatically raise 
concern about the integrity of the 21,000 containers that arrive in 
U.S. ports each day and the many thousands more that arrive by truck 
and rail across U.S. land borders. A three-to-four-week closure of U.S. 
ports would bring the global container industry to its knees. Megaports 
such as Rotterdam and Singapore would have to close their gates to 
prevent boxes from piling up on their limited pier space. Trucks, 
trains, and barges would be stranded outside the terminals with no way 
to unload their boxes. Boxes bound for the United States would have to 
be unloaded from their outbound ships. Service contracts would need to 
be renegotiated. As the system became gridlocked, so would much of 
global commerce.''
  This is a national issue, but one of particular concern to my home 
state because more than half of all goods imported into the U.S. pass 
through my home State of California.
  Last year, 6.5 million imported containers--52 percent of the 
containers entering the United States--traveled through California. Six 
million of these came through two ports alone: the Port of Los Angeles 
and the Port of Long Beach.

[[Page 15482]]

  That means that, if terrorists succeeded in putting a weapon of mass 
destruction into a container undetected, there is a one in two chance 
that this weapon would arrive and/or be detonated in Southern 
California.
  And the problem is not just with containers. Nearly one-quarter of 
California's imported crude oil is offloaded in one area. A suicide 
attack on a tanker at an offloading facility could leave Southern 
California without refined fuels within a few days.
  Since September 11, we have made significant steps in enhancing port 
security, but clearly, there is more to be done. This bill addresses 
some of those needed enhancements, particularly in the area of criminal 
law.
  The Reducing Crime and Terrorism at America's Seaports Act of 2004 
does the following: Clarifies existing law to make clear that those who 
would try to access our ports under false pretenses are committing a 
crime; makes it a crime to refuse to stop when the Coast Guard orders a 
ship to standby for inspection; sets clear criminal penalties for the 
use of a dangerous weapon or explosive on a passenger vessel such as a 
cruise ship; imposes criminal penalties for those who tamper with 
navigational aids, such as buoys and transponders, intentionally place 
destructive devices in navigable waters, or intentionally dump 
hazardous materials in waterways; establishes a specific crime for 
knowingly and willfully transporting aboard any vessel an explosive, 
biological agent, chemical weapon, or radioactive or nuclear materials 
intended to be used to commit a terrorist act; the bill also makes it a 
crime to knowingly and willfully transport a person aboard any vessel 
who intends to commit, or has committed, a terrorist act; makes it a 
crime to damage or destroy a vessel or a maritime facility, to commit 
an act of violence against any individual on a vessel or near a port 
facility, or to knowingly communicate false information that endangers 
the safety of a vessel; provides sanctions to deter criminal or civil 
violations related to a range of offenses, including theft of 
interstate or foreign shipments; amends existing law to increase 
penalties for noncompliance with certain reporting and recordkeeping 
requirements for incoming ships, including information regarding the 
content of cargo containers and the country from which the shipments 
originated; and finally, the bill toughens anti-stowaway laws and laws 
governing bribery of port security officials.
  Strengthening criminal penalties is one way we can make our Nation's 
ports less vulnerable. The Coast Guard, the FBI, Customs and 
Immigration authorities--all need the appropriate crime-fighting tools 
to prevent a terrorist attack. Today, we are introducing legislation to 
provide the crime-fighting tools that will do just that.
  I ask unanimous consent that an analysis of the bill be printed in 
the Record.
  There being no objection, the analysis was ordered to be printed in 
the Record, as follows:

     SEC. 2. ENTRY BY FALSE PRETENSES TO ANY PORT.

       Section 2 would clarify that section 1036 of title 18 
     (fraudulent access to transport facilities) includes seaports 
     and waterfronts within its scope, as well as increase the 
     maximum term of imprisonment for a violation from 5 years to 
     10 years. This provision was included in the originally 
     introduced Biden-Specter Bill, but not in the Feinstein-Kyl 
     Bill.

     SEC. 3. CRIMINAL SANCTIONS FOR FAILURE TO ``HEAVE TO,'' 
                   OBSTRUCTION OF BOARDING, OR PROVIDING FALSE 
                   INFORMATION.

       Section 3 would amend the U.S. Code to make it a crime (1) 
     for a vessel operator knowingly to fail to slow or stop a 
     ship once ordered to do so by a federal law enforcement 
     officer; (2) for any person on board a vessel to impede 
     boarding or other law enforcement action authorized by 
     federal law; or (3) for any person on board a vessel to 
     provide false information to a federal law enforcement 
     officer (punishable by a fine and/or imprisonment for a 
     maximum term of 5 years). This provision was included in both 
     the Biden-Specter and Feinstein-Kyl Bills, but the Feinstein-
     Kyl Bill included a lower penalty of 1-year maximum 
     imprisonment.

     SEC. 4. USE OF A DANGEROUS WEAPON OR EXPLOSIVE ON A PASSENGER 
                   VESSEL.

       Section 4 would amend section 1993 of title 18 (terrorist 
     attacks and other acts of violence against mass 
     transportation systems) to make it a crime to willfully use a 
     dangerous weapon (including chemical, biological, 
     radiological or nuclear materials) or explosive, with the 
     intent to cause death or serious bodily injury to any person 
     on board a passenger vessel (punishable by a fine and/or 
     imprisonment for a maximum term of 20 years; and, if death 
     results, for a term of imprisonment up to life). Both the 
     Biden-Specter and Feinstein-Kyl Bills, employing different 
     language, included a provision that would achieve this aim. 
     The substitute incorporates the Biden-Specter approach.

     SEC. 5. CRIMINAL SANCTIONS FOR VIOLENCE AGAINST MARITIME 
                   NAVIGATION, PLACEMENT OF DESTRUCTIVE DEVICES, 
                   AND MALICIOUS DUMPING.

       Section 5 would amend the criminal code to make it a crime 
     to intentionally damage or tamper with any maritime 
     navigational aid maintained by the Coast Guard or under its 
     authority, if such act endangers the safe navigation of a 
     ship; or knowingly place in waters any device or substance 
     which is likely to damage a vessel or its cargo, interfere 
     with a vessel's safe navigation, or interfere with maritime 
     commerce (punishable by a fine and/or a term of imprisonment 
     up to life; if death results, by a sentence of death). This 
     section would also make it a crime to willfully and 
     maliciously discharge a hazardous substance into U.S. waters, 
     with the intent to cause death, serious bodily harm, or 
     catastrophic economic injury (punishable by a fine and/or a 
     term of imprisonment up to life; and, where an individual 
     engages in the prohibited conduct with an intent to cause 
     harm to the marine environment, by a fine and/or imprisonment 
     for a maximum term of 30 years). Both the Biden-Specter and 
     Feinstein-Kyl Bills included this provision, but, unlike the 
     originally-introduced bills, the substitute measure excludes 
     the death penalty for violations of the malicious dumping 
     provision.

     SEC. 6. TRANSPORTATION OF DANGEROUS MATERIALS AND TERRORISTS.

       This section would make it a crime to knowingly and 
     willfully transport aboard any vessel an explosive, 
     biological agent, chemical weapon, or radioactive or nuclear 
     materials, knowing that the item is intended to be used to 
     commit a terrorist act (punishable by a fine and/or a term of 
     imprisonment up to life; and, if death results, by a sentence 
     of death). This section would also make it a crime to 
     knowingly and willfully transport aboard any vessel any 
     person who intends to commit, or is avoiding apprehension 
     after having committed, a terrorist act (punishable by a fine 
     and/or a term of imprisonment up to life). This provision was 
     included in the originally introduced Biden-Specter Bill, but 
     not in the Feinstein-Kyl Bill.

     SEC. 7. DESTRUCTION OR INTERFERENCE WITH VESSELS OR MARITIME 
                   FACILITIES.

       This section would make it a crime to (1) damage or destroy 
     a vessel or its parts, a maritime facility, or any apparatus 
     used to store, load or unload cargo and passengers; (2) 
     perform an act of violence against or incapacitate any 
     individual on a vessel or at or near a facility; or (3) 
     knowingly communicate false information that endangers the 
     safety of a vessel (punishable by a fine and/or imprisonment 
     for a maximum term of 20 years; if the act involves a vessel 
     carrying high-level radioactive waste or spent nuclear fuel, 
     by a fine and/or a term of imprisonment up to life; and, if 
     death results, by a sentence of death). This provision was 
     included in both the Biden-Specter and Feinstein-Kyl Bills. 
     The Biden-Specter Bill also included an exception for 
     otherwise lawful activities (e.g., normal repair, salvage 
     activities, authorized transportation of hazardous materials) 
     and a bar to federal prosecution if the conduct is de minimus 
     (e.g., blown-out tire) or occurred during legitimate labor 
     activity. The substitute measure incorporates these elements 
     of the Biden-Specter Bill.

     SEC. 8. THEFT OF INTERSTATE OR FOREIGN SHIPMENTS OR VESSELS.

       Section 8 would expand the scope of section 659 of title 18 
     (theft of interstate or foreign shipments) to include theft 
     of goods from additional transportation facilities or 
     instruments, including trailers, cargo containers, and 
     warehouses; and would increase the maximum term of 
     imprisonment for low-level thefts from 1 year to 3 years. 
     This provision was included in the originally introduced 
     Biden-Specter Bill, but not in the Feinstein-Kyl Bill.

     SEC. 9. INCREASED PENALTIES FOR NONCOMPLIANCE WITH MANIFEST 
                   REQUIREMENTS.

       Section 509 would amend section 1436 of title 19 to 
     increase the penalties for noncompliance with certain 
     manifest reporting and record-keeping requirements, including 
     information regarding the content of cargo containers and the 
     country from which the shipments originated. This provision 
     was included in both the Biden-Specter and Feinstein-Kyl 
     Bills, but the Biden-Specter Bill included lesser penalties. 
     The substitute measure reflects the penalty structure set out 
     in the Biden-Specter Bill.

     SEC. 10. STOWAWAYS ON VESSELS OR AIRCRAFT.

       This section would increase the maximum penalty for a 
     violation of section 2199 (stowaways on vessels or aircraft) 
     of title 18 from 1 year to 5 years. If the act is committed 
     with the intent to commit serious bodily injury and serious 
     bodily injury does in fact

[[Page 15483]]

     occur, it would be punishable by a fine and/or a term of 
     imprisonment up to 20 years. If the act is committed with the 
     intent to cause death, it would be punishable by a fine and/
     or a term of imprisonment up to life. This provision was not 
     included in either the Biden-Specter or Feinstein-Kyl Bills, 
     but is included in the substitute measure on Senator Hatch's 
     request.

     SEC. 11. BRIBERY AFFECTING PORT SECURITY.

       This section would make it a crime to knowingly bribe a 
     public official, with the intent to commit international or 
     domestic terrorism; or for anyone to receive a bribe in 
     return for being influenced in his or her public duties, 
     knowing that such influence will be used to commit, or plan 
     to commit, an act of terrorism (punishable by a term of 
     imprisonment up to 15 years). This provision was not included 
     in either the Biden-Specter or Feinstein-Kyl Bills, but is 
     included in the substitute measure on Senator Hatch's 
     request.
                                 ______
                                 
      By Mr. DODD:
  S. 2654. A bill to provide for Kindergarten Plus programs; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. DODD. Mr. President, I rise today to introduce legislation with 
my colleagues Senator Kennedy and Senator Bingaman to jump-start school 
success for low-income children. Today we are introducing the Sandy 
Feldman Kindergarten Plus Act of 2004.
  Sandy Feldman, the President of the American Federation of Teachers, 
stepped down today after decades of public service. If there is one 
goal to which Sandy has dedicated herself over the years, it is the 
education of our Nation's children.
  Sandy is the product of New York City's public schools. She knows 
what great promise public education holds for our Nation. But, she also 
knows that all too often, we don't give our schools the resources they 
need to be able to live up to that promise.
  While I've worked with Sandy for many years, I've been particularly 
privileged to work with her in the area of early childhood education. 
It was Sandy who developed the concept for this Kindergarten Plus 
legislation and Sandy who spent countless hours developing the details 
to ensure that the initiative would work in a diverse array of 
communities.
  Although Sandy is leaving the AFT, I know she will continue fighting 
for our Nation's children, and for mothers, fathers, and teachers 
across this Nation. I look forward to her continued counsel and advice 
on education issues and other issues of importance to families.
  The Kindergarten Plus legislation we are introducing today will offer 
competitive grants to States to provide children below 185 percent of 
the poverty line with a transitional kindergarten during the summer 
before kindergarten formally begins and a transitional first grade 
during the summer between kindergarten and first grade.
  Why an extra four months of kindergarten for these children? The 
answer is simple. Because too many low income children today enter 
kindergarten unprepared for the year ahead, far behind their wealthier 
peers in both academic and social skills.
  According to a recent survey, 46 percent of kindergarten teachers 
report that at least half of their class or more has specific problems 
with entry into kindergarten. Yet, kindergarten is critical in 
preparing children to succeed in elementary school, especially for 
children at-risk of academic failure.
  There is no panacea, no magic wand to erase the deficiencies that too 
many low income children have in entering kindergarten on par with 
their more economically well-off peers. It is simply not possible in a 
two month period before kindergarten begins or in a nine-month half day 
pre-kindergarten program to wipe away the advantages that wealthier 
children have had in their first five years of life that result in the 
skill set with which they enter kindergarten.
  We can, however, do a better job of preparing less fortunate children 
for school. We can expose them to classroom practices and routines and 
the expectations for kindergarten behavior and protocol. We can 
introduce them to concepts and help them understand that classrooms 
have rules. We can expose them to literature, story time or circle 
time. We can help them understand that books are made up of printed 
words and that words are made up of individual letters. We can ask them 
questions to help develop their critical thinking skills, like what do 
you think will happen next in the story? Why? We can offer them ``show 
and tell'' to develop their oral language skills and ability to speak 
out loud in sequential sentences.
  Many children enter kindergarten with these skills. But, many do not. 
During the school year before a child is eligible to enter 
kindergarten, about 75 percent of children in families with more than 
$75,000 in income participate in some type of center-based program, 
compared to 51 percent of children in families with incomes between 
$10,000 and $20,000.
  The numbers are much more stark when looking at the children of 
mothers who dropped out of high school. Recent data shows that about 74 
percent of 3, 4, and 5 year old children whose mothers graduated from 
college were enrolled in a center-based program compared to only 42 
percent of 3, 4, and 5 year old children whose mothers did not complete 
high school.
  How does this translate to children? Some children know how to follow 
directions and some children do not. Some children transition well 
between activities as part of a daily routine, some children do not. 
About 85 percent of high income children, compared to 39 percent of low 
income children, can recognize letters of the alphabet upon arrival in 
kindergarten. About half the children of college graduates can identify 
the beginning sounds of words, but only 9 percent of the children whose 
parents didn't complete high school can recognize the beginning sounds 
of words.
  Of equal concern, kindergarten teachers report that about 80 percent 
of children whose mothers graduated from college persist at a task and 
are eager to learn whereas only about 60 percent of the children whose 
mothers have not graduated from high school persist at a task and are 
eager to learn.
  What we know from the research is that children can enter 
kindergarten better prepared to learn. We may not be able to close the 
gap between low income children and their wealthier peers, but we can 
certainly narrow it considerably.
  Our bill would provide states with resources to offer a transitional 
kindergarten during the summer before kindergarten begins. This would 
enable local school districts to offer a jumpstart on kindergarten with 
smaller class sizes during the summer. Before all kindergarten eligible 
children arrive, K+ children would have an introduction to 
kindergarten. The same opportunity would be part of the program for the 
summer between kindergarten and first grade.
  The introductory period would enable school districts to target low 
income children who may never before have participated in a center-
based program such as Head Start or state pre-k, or nursery school. 
They could target low income English language learners or low income 
children who participated in Head Start or state pre-k who could 
continue their progress during the summer.
  About 65 percent of mothers with children under age 6 are in the 
workforce today. Every day, about 13 million preschoolers, including 6 
million infants and toddlers, are in some type of child care 
arrangement. What we are trying to do with this bill is to pull out low 
income children who would be eligible to enter kindergarten in the fall 
and offer them a summer enrichment period as an introduction to 
kindergarten. It might be that a local Head Start or community-based 
organization's preschool would continue to operate their programs 
during the summer. However, these are local decisions made by school 
districts that apply for and receive K+ funding.
  It should be clear that the K+ program would operate as a supplement 
to existing programs, most of which follow the school calendar. In 
fact, children who participate in a high quality early learning program 
during the summer before kindergarten are not eligible to participate 
in K+ to avoid duplication of efforts and scarce resources.
  In the National Academy of Sciences report, ``From Neurons to 
Neighborhoods: the Science of Early Childhood

[[Page 15484]]

Development'', numerous recommendations are made to improve the 
foundation with which children enter school. The report points out that 
with so many parents working today, the burden of poor quality and 
limited choice in child care rests most heavily on low income working 
families whose financial resources are too high to qualify for 
subsidies or Head Start yet too low to afford market prices for quality 
child care.
  It is the children of the working poor who are very much at risk of 
beginning kindergarten behind their wealthier and poorer peers. Yet, it 
is these children in addition to poor children who are most likely to 
enter kindergarten behind their wealthier peers, unprepared for the 
year ahead.
  Supporting the K+ program is the American Federation of Teachers, 
AFT, the Parent-Teacher Association, PTA, the Council of Great City 
Schools, the Society for Research in Child Development, SRCD, the 
Children's Defense Fund, and Easter Seals.
  We urge you to join us as cosponsors of this legislation and help 
give low income children a jump-start on school success.
  Mr. President, I ask unanimous consent that a brief summary of the 
bill and the text of the bill be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2654

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Kindergarten Plus Act of 
     2004''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Kindergarten has proven to be a beneficial experience 
     for children, putting children on a path that positively 
     influences their learning and development in later school 
     years.
       (2) Kindergarten and the years leading up to kindergarten 
     are critical in preparing children to succeed in elementary 
     school, especially if the children are from low-income 
     families or have other risks of difficulty in school.
       (3) Disadvantaged children, on average, lag behind other 
     children in literacy, numeracy, and social skills, even 
     before formal schooling begins.
       (4) For many children entering kindergarten, the 
     achievement gap between children from low-income households 
     compared to children from high-income households is already 
     evident.
       (5) 85 percent of beginning kindergartners in the highest 
     socioeconomic group, compared to 39 percent in the lowest 
     socioeconomic group, can recognize letters of the alphabet. 
     Similarly, 98 percent of beginning kindergartners in the 
     highest socioeconomic group, compared to 84 percent of their 
     peers in the lowest socioeconomic group, can recognize 
     numbers and shapes.
       (6) Once disadvantaged children are in school, they learn 
     at the same rate as other children. Therefore, providing 
     disadvantaged children with additional time in kindergarten, 
     in the summer before such children ordinarily enter 
     kindergarten and in the summer before first grade, will help 
     schools close achievement gaps and accelerate the academic 
     progress of their disadvantaged students.
       (7) High quality, extended-year kindergarten that provides 
     children with enriched learning experiences is an important 
     factor in helping to close achievement gaps, rather than 
     having the gaps continue to widen.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Eligible student.--The term ``eligible student'' means 
     a child who--
       (A) is a 5-year old, or will be eligible to attend 
     kindergarten at the beginning of the next school year;
       (B) comes from a family with an income at or below 185 
     percent of the poverty line; and
       (C) is not already served by a high-quality program in the 
     summer before or the summer after the child enters 
     kindergarten.
       (2) Kindergarten plus.--The term ``Kindergarten Plus'' 
     means a voluntary full day of kindergarten, during the summer 
     before and during the summer after, the traditional 
     kindergarten school year (as determined by the State).
       (3) Local educational agency.--The term ``local educational 
     agency'' has the meaning given the term in section 9101 of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7801).
       (4) Parent.--The term ``parent'' includes a legal guardian 
     or other person standing in loco parentis (such as a 
     grandparent or stepparent with whom the child lives, or a 
     person who is legally responsible for the child's welfare).
       (5) Parental involvement.--The term ``parental 
     involvement'' means the participation of parents in regular, 
     2-way, and meaningful communication with school personnel 
     involving student academic learning and other school 
     activities, including ensuring that parents--
       (A) play an integral role in assisting their child's 
     learning;
       (B) are encouraged to be actively involved in their child's 
     education at school; and
       (C) are full partners in their child's education and are 
     included, as appropriate, in decisionmaking and on advisory 
     committees to assist in the education of their child.
       (6) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2))) applicable to a family of the size involved.
       (7) Eligible provider.--The term ``eligible provider'' 
     means a local educational agency or a private not-for-profit 
     agency or organization, with a demonstrated record in the 
     delivery of early childhood education services to preschool-
     age children, that provides high-quality early learning and 
     development experiences that--
       (A) are aligned with the expectations for what children 
     should know and be able to do when the children enter 
     kindergarten and grade 1, as established by the State 
     educational agency; or
       (B) in the case of an entity that is not a local 
     educational agency and that serves children who have not 
     entered kindergarten, meet the performance standards and 
     performance measures described in subparagraphs (A) and (B) 
     of subsection (a)(1), and subsection (b), of section 641A of 
     the Head Start Act (42 U.S.C. 9836a) or the prekindergarten 
     standards of the State where the entity is located.
       (8) School readiness.--The term ``school readiness'' means 
     the cognitive, social, emotional, approaches to learning, and 
     physical development of a child, including early literacy and 
     early mathematics skills, that prepares the child to learn 
     and succeed in elementary school.
       (9) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (10) State educational agency.--The term ``State 
     educational agency'' has the meaning given the term in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7801).

     SEC. 4. GRANTS TO STATE EDUCATIONAL AGENCIES AUTHORIZED.

       (a) In General.--The Secretary is authorized to award 
     grants, on a competitive basis, to State educational agencies 
     to enable the State educational agencies to provide 
     Kindergarten Plus within the State.
       (b) Sufficient Size.--To the extent possible, the Secretary 
     shall ensure that each grant awarded under this section is of 
     sufficient size to enable the State educational agency 
     receiving the grant to provide Kindergarten Plus to all 
     eligible students served by the local educational agencies 
     within the State with the highest concentrations of eligible 
     students.
       (c) Minimum Amount.--The Secretary shall not award a grant 
     to a State educational agency under this section in an amount 
     that is less than $500,000.
       (d) State Use of Funds.--A State educational agency shall 
     use--
       (1) not more than 3 percent of the grant funds received 
     under this Act for administration of the Kindergarten Plus 
     programs supported under this Act;
       (2) not more than 5 percent of the grant funds received 
     under this Act to develop professional development activities 
     and curricula for teachers and staff of Kindergarten Plus 
     programs in order to develop a continuum of developmentally 
     appropriate curricula and practices for preschool, 
     kindergarten, and grade 1 that ensures--
       (A) an effective transition to kindergarten and to grade 1 
     for students; and
       (B) appropriate expectations for the students' learning and 
     development as the students make the transition to 
     kindergarten and to grade 1; and
       (3) the remainder of the grant funds to award subgrants to 
     local educational agencies.
       (e) Priority.--In awarding grants under this Act the 
     Secretary shall give priority to State educational agencies 
     that--
       (1) on their own or in combination with other government 
     agencies, provide full day kindergarten to all kindergarten-
     age children who are from families with incomes below 185 
     percent of the poverty line within the State; or
       (2) demonstrate progress toward providing full day 
     kindergarten to all kindergarten-age children who are from 
     families with incomes below 185 percent of the poverty line 
     within the State by submitting a plan that shows how the 
     State educational agency will, at a minimum, double the 
     number of such children that were served by a full day 
     kindergarten program in the school year preceding the school 
     year for which assistance is first sought.

     SEC. 5. SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES.

       (a) In General.--Each State educational agency that 
     receives a grant under this Act--
       (1) shall reserve an amount sufficient to continue to fund 
     multiyear subgrants awarded under this section; and

[[Page 15485]]

       (2) shall award subgrants to local educational agencies 
     within the State to enable the local educational agencies to 
     pay the Federal share of the costs of carrying out 
     Kindergarten Plus programs for eligible students.
       (b) Priority.--In awarding subgrants under this section the 
     State educational agency shall give priority to local 
     educational agencies--
       (1) serving the greatest number or percentage of 
     kindergarten-age children who are from families with incomes 
     below 185 percent of the poverty line, based on data from the 
     most recent school year; and
       (2) that propose to significantly reduce the class size and 
     student-to-teacher ratio of the classes in their Kindergarten 
     Plus programs below the average class size and student-to-
     teacher ratios of kindergarten classes served by the local 
     educational agencies.
       (c) Federal Share.--The Federal share of the costs of 
     carrying out a Kindergarten Plus program shall be--
       (1) 100 percent for the first, second, and third years of 
     the program;
       (2) 85 percent for the fourth year of the program; and
       (3) 75 percent for the fifth year of the program.
       (d) In-Kind Contributions.--The non-Federal share of the 
     costs of carrying out a Kindergarten Plus program may be in 
     the form of in-kind contributions.

     SEC. 6. STATE APPLICATION.

       (a) In General.--In order to receive a grant under this 
     Act, a State educational agency shall submit an application 
     to the Secretary at such time and containing such information 
     as the Secretary determines appropriate.
       (b) Consultation.--The application shall be developed by 
     the State educational agency in consultation with 
     representatives of early childhood education programs, early 
     childhood education teachers, principals, pupil services 
     personnel, administrators, paraprofessionals, other school 
     staff, early childhood education providers (including Head 
     Start agencies, State prekindergarten program staff, and 
     child care providers), teacher organizations, parents, and 
     parent organizations.
       (c) Contents.--At a minimum, the application shall 
     include--
       (1) a description of developmentally appropriate teaching 
     practices and curricula for children that will be put in 
     place to be used by local educational agencies and eligible 
     providers offering Kindergarten Plus programs to carry out 
     this Act;
       (2) a general description of the nature of the Kindergarten 
     Plus programs to be conducted with funds received under this 
     Act, including--
       (A) the number of hours each day and the number of days 
     each week that children in each Kindergarten Plus program 
     will attend the program; and
       (B) if a Kindergarten Plus program meets for less than 9 
     hours a day, how the needs of full-time working families will 
     be addressed;
       (3) goals and objectives to ensure that high-quality 
     Kindergarten Plus programs are provided;
       (4) an assurance that students enrolled in Kindergarten 
     Plus programs funded under this Act will receive additional 
     comprehensive services (such as nutritional services, health 
     care, and mental health care), as needed; and
       (5) a description of how--
       (A) the State educational agency will coordinate and 
     integrate services provided under this Act with other 
     educational programs, such as Even Start, Head Start, Reading 
     First, Early Reading First, State-funded preschool programs, 
     preschool programs funded under section 619 or other 
     provisions of part B of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1419, 1411 et seq.), and 
     kindergarten programs;
       (B) the State will provide professional development for 
     teachers and staff of local educational agencies and eligible 
     providers that receive subgrants under this Act regarding how 
     to address the school readiness needs of children (including 
     early literacy, early mathematics, and positive behavior) 
     before the children enter kindergarten, throughout the school 
     year, and into the summer after kindergarten;
       (C) the State will assist Kindergarten Plus programs to 
     provide exemplary parent education and parental involvement 
     activities such as training and materials to assist parents 
     in being their children's first teachers at home or home 
     visiting;
       (D) the State will conduct outreach to parents with 
     eligible students, including parents whose native language is 
     not English, parents of children with disabilities, and 
     parents of migratory children; and
       (E) the State educational agency will ensure that each 
     Kindergarten Plus program uses developmentally appropriate 
     practices, including practices and materials that are 
     culturally and linguistically appropriate for the population 
     of children being served in the program.

     SEC. 7. LOCAL APPLICATION.

       (a) In General.--In order to receive a subgrant under this 
     Act, a local educational agency shall submit an application 
     to the State educational agency at such time and containing 
     such information as the State educational agency determines 
     appropriate.
       (b) Consultation.--The application shall be developed by 
     the local educational agency in consultation with early 
     childhood education teachers, principals, pupil services 
     personnel, administrators, paraprofessionals, other school 
     staff, early childhood education providers (including Head 
     Start agencies, State prekindergarten program staff, and 
     child care providers), teacher organizations, parents, and 
     parent organizations.
       (c) Contents.--At a minimum, the application shall include 
     a description of--
       (1) the standards, research-based and developmentally 
     appropriate curricula, teaching practices, and ongoing 
     assessments for the purposes of improving instruction and 
     services, to be used by the local educational agency that--
       (A) are aligned with the State expectations for what 
     children should know and be able to do when the children 
     enter kindergarten and grade 1, as set by the State 
     educational agency; and
       (B) include--
       (i) language skills, including an expanded use of 
     vocabulary;
       (ii) interest in and appreciation of books, reading, 
     writing alone or with others, and phonological and phonemic 
     awareness;
       (iii) premathematics knowledge and skills, including 
     aspects of classification, seriation, number sense, spatial 
     relations, and time;
       (iv) other cognitive abilities related to academic 
     achievement;
       (v) social and emotional development, including self-
     regulation skills;
       (vi) physical development, including gross and fine motor 
     development skills;
       (vii) in the case of limited English proficiency, progress 
     toward the acquisition of the English language; and
       (viii) approaches to learning;
       (2) how the local educational agency will ensure that the 
     Kindergarten Plus program uses curricula and practices that--
       (A) are developmentally, culturally, and linguistically 
     appropriate for the population of children served in the 
     program; and
       (B) are aligned with the State learning standards and 
     expectations for children in kindergarten and grade 1;
       (3) how the Kindergarten Plus program will improve the 
     school readiness of children served by the local educational 
     agency under this Act, especially in mathematics and reading;
       (4) how the Kindergarten Plus program will provide 
     continuity of services and learning for children who were 
     previously served by a different program;
       (5) how the local educational agency will ensure that the 
     Kindergarten Plus program has appropriate services and 
     accommodations in place to serve children with disabilities 
     and children who are limited English proficient;
       (6) how the local educational agency will perform a needs 
     assessment to avoid duplication with other programs within 
     the geographic area served by the local educational agency;
       (7) how the local educational agency will--
       (A) transition Kindergarten Plus participants into local 
     elementary school programs and services;
       (B) ensure the development and use of systematic, 
     coordinated records on the educational development of each 
     child participating in the Kindergarten Plus program through 
     periodic meetings and communications among--
       (i) Kindergarten Plus program teachers;
       (ii) elementary school staff; and
       (iii) local early childhood education program providers, 
     including Head Start agencies, State prekindergarten program 
     staff, and center-based and family child care providers;
       (C) provide parent and child orientation sessions conducted 
     by teachers and staff; and
       (D) provide a qualified staff person to be in charge of 
     coordinating the transition services;
       (8) how the local educational agency will provide 
     instructional and environmental accommodations in the 
     Kindergarten Plus program for children who are limited 
     English proficient, children with disabilities, migratory 
     children, neglected or delinquent youth, Indian children 
     served under part A of title VII of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7401 et seq.), 
     homeless children, and immigrant children;
       (9) how the local educational agency will conduct outreach 
     to parents of eligible students, including parents whose 
     native language is not English, parents of children with 
     disabilities, and parents of migratory children, which may 
     include--
       (A) activities to provide parents early exposure to the 
     school environment, including meetings with teachers and 
     staff;
       (B) activities to better engage and inform parents on the 
     benefits of Kindergarten Plus and other programs; and
       (C) other efforts to ensure that parents have a level of 
     comfort with the Kindergarten Plus program and the school 
     environment;
       (10) how the local educational agency will assist the 
     Kindergarten Plus program to provide exemplary parent 
     education and parental involvement activities such as 
     training and materials to assist parents in being their 
     children's first teachers at home or home visiting; and

[[Page 15486]]

       (11) how the local educational agency will work with local 
     center-based and family child care providers and Head Start 
     agencies to ensure--
       (A) the nonduplication of programs and services; and
       (B) that the needs of working families are met through 
     child care provided before and after the Kindergarten Plus 
     program.

     SEC. 8. LOCAL REQUIREMENTS AND PROVISIONS.

       (a) Local Uses of Funds.--A local educational agency that 
     receives a subgrant under this Act shall use the subgrant 
     funds for the following:
       (1) The operational and program costs associated with the 
     Kindergarten Plus program as described in the application to 
     the State educational agency.
       (2) Personnel services, including teachers, 
     paraprofessionals, and other staff as needed.
       (3) Additional services, as needed, including snacks and 
     meals, mental health care, health care, linguistic 
     assistance, special education and related services, and 
     transportation services associated with the needs of the 
     children in the program.
       (4) Transition services to ensure children make a smooth 
     transition into first grade and proper communication is made 
     with the elementary school on the educational development of 
     each child.
       (5) Outreach and recruitment activities, including 
     community forums and public service announcements in local 
     media in various languages if necessary to ensure that all 
     individuals in the community are aware of the availability of 
     such program.
       (6) Parental involvement programs, including materials and 
     resources to help parents become more involved in their 
     child's learning at home.
       (7) Extended day services for the eligible students of 
     working families, including working with existing programs in 
     the community to coordinate services if possible.
       (8) Child care services, provided through coordination with 
     local center-based child care and family child care 
     providers, and Head Start agencies, before and after the 
     Kindergarten Plus program for the children participating in 
     the program, to accommodate the schedules of working 
     families.
       (9) Enrichment activities, such as--
       (A) art, music, and other creative arts;
       (B) outings and field trips; and
       (C) other experiences that support children's curiosity, 
     motivation to learn, knowledge, and skills.
       (b) Eligible Provider Grants and Applications.--The local 
     educational agency may use subgrant funds received under this 
     Act to award a grant to an eligible provider to enable the 
     eligible provider to carry out a Kindergarten Plus program 
     for the local educational agency. Each eligible provider 
     desiring a grant under this subsection shall submit an 
     application to the local educational agency that contains the 
     descriptions set forth in section 7 as applied to the 
     eligible provider.
       (c) Continuity.--In carrying out a Kindergarten Plus 
     program under this Act, a local educational agency is 
     encouraged to explore ways to develop continuity in the 
     education of children, for instance by keeping, if possible, 
     the same teachers and personnel from the summer before 
     kindergarten, through the kindergarten year, and during the 
     summer after kindergarten.
       (d) Coordination.--In carrying out a Kindergarten Plus 
     program under this Act, a local educational agency shall 
     coordinate with existing programs in the community to provide 
     extended care and comprehensive services for children and 
     their families in need of such care or services.

     SEC. 9. TEACHER AND PERSONNEL QUALITY STANDARDS.

       To be eligible for a subgrant under this Act, each local 
     educational agency shall ensure that--
       (1) each Kindergarten Plus classroom has--
       (A) a highly qualified teacher, as defined in section 9101 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 7801); or
       (B) if an eligible provider who is not a local educational 
     agency is providing the Kindergarten Plus program in 
     accordance with section 8(b), a teacher that, at a minimum, 
     has a bachelor's degree in early childhood education or a 
     related field and experience in teaching children of this 
     age;
       (2) a qualified paraprofessional that meets the 
     requirements for paraprofessionals under section 1119 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6319), is in each Kindergarten Plus classroom;
       (3) Kindergarten Plus teachers and paraprofessionals are 
     compensated on a salary scale comparable to kindergarten 
     through grade 3 teachers and paraprofessionals in public 
     schools served by the local educational agency; and
       (4) Kindergarten Plus class sizes do not exceed the class 
     size and ratio parameters set at the State or local level for 
     the traditional kindergarten program.

     SEC. 10. DIRECT GRANTS TO LOCAL EDUCATIONAL AGENCIES.

       (a) Grants Authorized.--If a State educational agency does 
     not apply for a grant under this Act or does not have an 
     application approved under section 6, then the Secretary is 
     authorized to award a grant to a local educational agency 
     within the State to enable the local educational agency to 
     pay the Federal share of the costs of carrying out a 
     Kindergarten Plus program.
       (b) Eligibility.--A local educational agency shall be 
     eligible to receive a grant under this section if the local 
     educational agency operates a full day kindergarten program 
     that, at a minimum, is targeted to kindergarten-age children 
     who are from families with incomes below 185 percent of the 
     poverty line within the State.
       (c) Application.--In order to receive a grant under 
     subsection (a), a local educational agency shall submit to 
     the Secretary an application that--
       (1) contains the descriptions set forth in section 7; and
       (2) includes an assurance that the Kindergarten Plus 
     program funded under such grant will serve eligible students.
       (d) Applicability.--Sections 8 and 9 shall apply to a local 
     educational agency receiving a grant under this section in 
     the same manner as the sections apply to a local educational 
     agency receiving a subgrant under section 5(a).

     SEC. 11. EVALUATION, COLLECTION, AND DISSEMINATION OF 
                   INFORMATION.

       (a) In General.--Each State educational agency that 
     receives a grant under this Act, in cooperation with the 
     local educational agencies in the State that receive a 
     subgrant under this Act, shall create an evaluation mechanism 
     to determine the effectiveness of the Kindergarten Plus 
     programs in the State, taking into account--
       (1) information from the local needs assessment, conducted 
     in accordance with section 7(c)(6), including--
       (A) the number of eligible students in the geographic area;
       (B) the number of children served by Kindergarten Plus 
     programs, disaggregated by family income, race, ethnicity, 
     native language, and prior enrollment in an early childhood 
     education program; and
       (C) the number of children with disabilities served by 
     Kindergarten Plus programs;
       (2) the recruitment of teachers and staff for Kindergarten 
     Plus programs, and the retention of such personnel in the 
     programs for more than 1 year;
       (3) the provision of services for children and families 
     served by Kindergarten Plus programs, including parent 
     education, home visits, and comprehensive services for 
     families who need such services;
       (4) the opportunities for professional development for 
     teachers and staff; and
       (5) the curricula used in Kindergarten Plus programs.
       (b) Comparison.--The evaluation process may include 
     comparison groups of similar children who do not participate 
     in a Kindergarten Plus program.
       (c) Information Collection and Reporting.--The information 
     necessary for the evaluation shall be collected yearly by the 
     State and reported every 2 years by the State to the 
     Secretary.
       (d) Analysis of Effectiveness.--The Secretary shall conduct 
     an analysis of the overall effectiveness of the programs 
     assisted under this Act and make the analysis available to 
     Congress, and the public, biannually.

     SEC. 12. SUPPLEMENT NOT SUPPLANT.

       Funds made available under this Act shall be used to 
     supplement, not supplant, other Federal, State, or local 
     funds available to carry out activities under this Act.

     SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

       For the purpose of carrying out this Act, there are 
     authorized to be appropriated $1,500,000,000 for fiscal year 
     2005 and such sums as may be necessary for each of the fiscal 
     years 2006 through 2010.

    Summary of the Sandy Feldman Kindergarten Plus (K+) Act of 2004

       Purpose: To provide disadvantaged children with additional 
     time in kindergarten during the summer before and summer 
     after the traditional kindergarten school year, and to help 
     ensure that more children enter school ready to succeed.
       Background: Kindergarten is critical in preparing children 
     to succeed in elementary school. Many low-income children 
     begin kindergarten lagging behind other children in literacy, 
     math, and social skills, even before formal schooling begins.
       85 percent of high-income children, compared to 39 percent 
     of low-income children, can recognize letters of the alphabet 
     upon arrival in kindergarten. Half the children of parents 
     who have graduated from college can identify the beginning 
     sounds of words, but only 9 percent of the children whose 
     parents have not completed high school recognize the 
     beginning sounds of words. Kindergarten teachers report that 
     about 80 percent of the children whose mothers graduated from 
     college persist at a task and are eager to learn whereas only 
     about 60 percent of the children whose mothers have not 
     graduated from high school persist at a task and are eager to 
     learn.
       Brief Bill Summary: K+ creates a competitive grant program 
     for states to provide local education agencies (LEAs) with 
     funds to provide kindergarten to disadvantaged children the 
     summer before and the summer after the traditional 
     kindergarten school year. In awarding grants to LEAs, States 
     shall give priority to educational agencies serving the 
     greatest number or percentage of kindergarten-aged children 
     who are from

[[Page 15487]]

     families with incomes below 185 percent of the poverty line 
     and to LEAs that will significantly reduce kindergarten class 
     sizes for their summer programs.
       To be eligible for a grant, States must have in place: 
     developmentally appropriate practices and curriculum; goals 
     and objectives for a high quality summer program; a 
     description of how the State will provide professional 
     development for K+ teachers and staff; a description of how 
     the State will assist K+ programs to reach out to, and work 
     with, parents; and, a means to collect evaluative data to 
     determine the effectiveness of K+ programs across their 
     state.
       To be eligible for a subgrant, LEAs must have in place: 
     readiness standards and developmentally appropriate 
     curricula; a plan for using classroom practices and 
     strategies proven to be effective; a plan for notifying 
     parents and the community regarding the availability of K+; a 
     plan for parental involvement in any K+ program; and, a plan 
     to demonstrate how they will accommodate the needs of working 
     parents with ``before and after'' child care services.
       Funds to LEAs may be used to: pay for operational and 
     programmatic costs, including personnel and transportation; 
     transition services to first grade; outreach and recruitment; 
     parental involvement programs; and child care services. Each 
     LEA shall ensure a highly qualified teacher and qualified 
     paraprofessional or for non-school based programs a teacher 
     that at a minimum has a Bachelor's degree in early childhood 
     education.
       The bill authorizes $1.5 billion for fiscal year 2005, and 
     such sums as may be necessary for years 2006-2010; the 
     minimum State grant is $500,000.
                                 ______
                                 
      By Mr. SMITH:
  S. 2655. A bill to amend the Internal Revenue Code of 1986 to provide 
a credit for the production of water and energy efficient appliances; 
to the Committee on Finance.
  Mr. SMITH. Mr. President, water is a precious resource that we must 
begin to manage as efficiently as possible. In several parts of the 
country, development is constrained by the lack of good quality water 
and water infrastructure. Having dealt with the water crisis in the 
Klamath Basin in 2001, when 1,200 farmers and ranchers had their 
irrigation water cut off, I can tell you firsthand that the conflicts 
between competing human and environmental needs are real and are 
growing.
  Benjamin Franklin wrote in Poor Richard's Almanack in 1746, ``When 
the well is dry, we know the worth of water.'' Well, in parts of the 
West, the well is quickly running dry. As the Los Angeles Times 
reported on June 18, 2004, the Western United States may be facing the 
biggest drought in 500 years. The current effects in the Colorado River 
Basin are considerably worse than those experienced during the Dust 
Bowl years of the 1930s. The 10-year drought in the Colorado River 
Basin has produced the lowest flows on record, straining an important 
water supply resource for millions of people.
  One immediate way to stretch available water supplies, as well as 
energy resources, is to provide incentives for water and energy 
efficient appliances. That is why I am introducing a bill to provide 
tax credits for the manufacture of highly efficient residential clothes 
washers, dishwashers and refrigerators. The bill builds on the tax 
credits for energy-efficient appliances pending before the Senate, 
which--if enacted--will expire in 2007. Under this bill, for the first 
time, water efficiency is included in the eligibility criteria for the 
tax credits, and the energy efficiency criteria are higher. This bill 
provides graduated credits to manufacturers. The more efficient the 
dishwasher, clothes washer or refrigerator, the higher the credit.
  The daily per capita water use around the world varies significantly. 
The U.N. Population Fund cites that in the United States, we use an 
estimated 152 gallons per day per person, while in the United Kingdom 
they use 388 gallons. Africans use 12 gallons a day.
  According to the Rocky Mountain Institute, 47 percent of all water 
supplied to communities in the United States by public and private 
utilities is for residential water use. Of that, clothes washers 
account for approximately 22 percent of residential use, while 
dishwashers account for about 3 percent.
  I firmly believe that we can use technology to improve our 
environmental stewardship. Water efficiency can extend our finite water 
supplies, and also reduce the amount of wastewater that communities 
must treat.
  High efficiency clothes washers use 20 to 30 gallons per load, 
compared to the 40 to 45 gallons top-loading machines use. The average 
annual household water savings is estimated to be 3,500 to 6,000 
gallons. Energy savings estimates range from 68 to 70 percent compared 
to older, standard clothes washers. High efficiency dishwashers use 39 
percent less energy to heat the water and 39 percent less water than 
standard models. Refrigerators must use at least 30 percent less energy 
than comparably sized models to receive a credit under this bill.
  While plumbing fixtures such as toilets, showerheads and faucets must 
meet U.S. water efficiency standards, water-using appliances are not 
governed by any water-efficiency standards. We can, however, provide an 
incentive to lower the cost of these water and energy saving 
appliances, which are generally more costly to manufacture than 
standard models.
  Mr. President, I would urge my colleagues to join me in cosponsoring 
this important bill to provide incentives for water and energy 
efficient residential appliances. I ask unanimous consent that the text 
of the legislation be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2655

       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 ``Water and Energy Efficient 
     Appliances Act of 2004''.

     SEC. 2. CREDIT FOR WATER AND ENERGY EFFICIENT APPLIANCES.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     business-related credits) is amended by adding at the end the 
     following new section:

     ``SEC. 45G. WATER AND ENERGY EFFICIENT APPLIANCE CREDIT.

       ``(a) Allowance of Credit.--
       ``(1) In general.--For purposes of section 38, the water 
     and energy efficient appliance credit determined under this 
     section for the taxable year is an amount equal to the sum of 
     the amounts determined under paragraph (2) for qualified 
     water and energy efficient appliances produced by the 
     taxpayer during the calendar year ending with or within the 
     taxable year.
       ``(2) Amount.--The amount determined under this paragraph 
     for any category described in subsection (b)(2)(B) shall be 
     the product of the applicable amount for appliances in the 
     category and the eligible production for the category.
       ``(b) Applicable Amount; Eligible Production.--For purposes 
     of subsection (a)--
       ``(1) Applicable amount.--The applicable amount is--
       ``(A) $25, in the case of a dishwasher manufactured with an 
     EF of at least 0.65,
       ``(B) $50, in the case of a dishwasher manufactured with an 
     EF of at least 0.69,
       ``(C) $75, in the case of a clothes washer which is 
     manufactured with an MEF of at least a 1.80 and a WF of no 
     more than 7.5,
       ``(D) $100, in the case of a refrigerator which consumes at 
     least 30 percent less kilowatt hours per year than the energy 
     conservation standards for refrigerators promulgated by the 
     Department of Energy and effective on July 1, 2001, and
       ``(E) $150, in the case of a clothes washer which is 
     manufactured with an MEF of at least a 1.80 and a WF of no 
     more than 5.5.
       ``(2) Eligible production.--
       ``(A) In general.--The eligible production of each category 
     of qualified water and energy efficient appliances is the 
     excess of--
       ``(i) the number of appliances in such category which are 
     produced by the taxpayer during such calendar year, over
       ``(ii) the average number of appliances in such category 
     which were produced by the taxpayer during calendar years 
     2002, 2003, and 2004.
       ``(B) Categories.--For purposes of subparagraph (A), the 
     categories are--
       ``(i) dishwashers described in paragraph (1)(A),
       ``(ii) dishwashers described in paragraph (1)(B),
       ``(iii) clothes washers described in paragraph (1)(C),
       ``(iv) clothes washers described in paragraph (1)(E), and
       ``(v) refrigerators described in paragraph (1)(D).
       ``(c) Limitation on Maximum Credit.--
       ``(1) In general.--The amount of credit allowed under 
     subsection (a) with respect to a taxpayer for all taxable 
     years shall not exceed $65,000,000, of which not more than 
     $15,000,000 may be allowed with respect to the credit 
     determined by using the applicable amount under subsections 
     (b)(1)(A) and (b)(1)(B).

[[Page 15488]]

       ``(2) Limitation based on gross receipts.--The credit 
     allowed under subsection (a) with respect to a taxpayer for 
     the taxable year shall not exceed an amount equal to 2 
     percent of the average annual gross receipts of the taxpayer 
     for the 3 taxable years preceding the taxable year in which 
     the credit is determined.
       ``(3) Gross receipts.--For purposes of this subsection, the 
     rules of paragraphs (2) and (3) of section 448(c) shall 
     apply.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Qualified water and energy efficient appliance.--The 
     term `qualified water and energy efficient appliance' means--
       ``(A) a dishwasher described in subparagraph (A) or (B) or 
     subsection (b)(1),
       ``(B) a clothes washer described in subparagraph (C) or (E) 
     of subsection (b)(1), or
       ``(C) a refrigerator described in subparagraph (D) of 
     subsection (b)(1).
       ``(2) Dishwasher.--The term `dishwasher' means a standard 
     residential dishwasher with a capacity of 8 or more place 
     settings plus 6 serving pieces.
       ``(3) Clothes washer.--The term `clothes washer' means a 
     residential clothes washer, including a residential style 
     coin operated washer.
       ``(4) Refrigerator.--The term `refrigerator' means an 
     automatic defrost refrigerator-freezer which has an internal 
     volume of at least 16.5 cubic feet.
       ``(5) EF.--The term `EF' means Energy Factor (as determined 
     by the Secretary of Energy).
       ``(6) MEF.--The term `MEF' means Modified Energy Factor (as 
     determined by the Secretary of Energy).
       ``(7) WF.--The term `WF' means Water Factor (as determined 
     by the Secretary of Energy).
       ``(e) Special Rules.--
       ``(1) In general.--Rules similar to the rules of 
     subsections (c), (d), and (e) of section 52 shall apply for 
     purposes of this section.
       ``(2) Aggregation rules.--All persons treated as a single 
     employer under subsection (a) or (b) of section 52 or 
     subsection (m) or (o) of section 414 shall be treated as 1 
     person for purposes of subsection (a).
       ``(f) Verification.--The taxpayer shall submit such 
     information or certification as the Secretary, in 
     consultation with the Secretary of Energy, determines 
     necessary to claim the credit amount under subsection (a).
       ``(g) Termination.--This section shall not apply to water 
     and energy efficient appliances produced after December 31, 
     2010.''.
       (b) Credit Made Part of General Business Credit.--Section 
     38(b) of such Code (relating to current year business credit) 
     is amended by striking ``plus'' at the end of paragraph (14), 
     by striking the period at the end of paragraph (15) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(16) the water and energy efficient appliance credit 
     determined under section 45G(a).''.
       (c) Limitation on Carryback.--Section 39(d) of such Code 
     (relating to transition rules) is amended by adding at the 
     end the following new paragraph:
       ``(11) No carryback of water and energy efficient appliance 
     credit before effective date.--No portion of the unused 
     business credit for any taxable year which is attributable to 
     the water and energy efficient appliance credit determined 
     under section 45G may be carried to a taxable year ending 
     before January 1, 2008.''.
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of such Code is 
     amended by adding at the end the following new item:

``Sec. 45G. Water and energy efficient appliance credit.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to appliances produced after December 31, 2007, 
     in taxable years ending after such date.
                                 ______
                                 
      By Mr. GRAHAM of Florida (for himself and Mr. Nelson of Florida):
  S. 2656. A bill to establish a National Commission on the 
Quincentennial of the discovery of Florida by Ponce de Leon; to the 
Committee on Energy and Natural Resources.
  Mr. GRAHAM of Florida. Mr. President, in 2013, our nation will 
celebrate the 500th anniversary of Ponce de Leon's landing on the east 
coast of Florida. I am pleased to introduce a bill today that 
establishes a commission to determine how we can best commemorate his 
discovery of Florida. For a country as young as ours, a Quincentennial 
is a rare milestone worthy of tribute.
  Juan Ponce de Leon landed on the coast of Florida, south of the 
present-day St. Augustine, in April of 1513. During the Easter holiday, 
he explored our coasts, visiting the Florida Keys and the west coast of 
Florida. The first European explorer to step foot on North American 
soil, Ponce de Leon opened Florida and the mainland of the Americas to 
the rest of the world. Florida owes its heritage to Ponce de Leon. Even 
the name Florida dates back to Ponce de Leon's discovery. When he saw 
the lush terrain, Ponce de Leon named the area the ``land of flowers'' 
or ``Florida'' in Spanish.
  While there is no doubt that Ponce de Leon is a key part of Florida's 
history, his landing in Florida is ingrained in our entire nation's 
early history. Children read in their history books about the myths 
surrounding Ponce de Leon's voyages. His quest for the fountain of 
youth has become a myth symbolic of the age of exploration.
  Other Europeans were encouraged to make the dangerous journey across 
the Atlantic toward the Americas, persuaded by the stories of Ponce de 
Leon's explorations of the new lands of Florida. Ultimately, his 
discovery opened the path for exploration and colonization of the 
Americas.
  I have drafted this bill with the assistance of a notable scholar 
accomplished in the field of early Florida history--Dr. Samuel Proctor, 
Distinguished Service Professor Emeritus of History at the University 
of Florida. I would like to thank Dr. Proctor for all of his efforts in 
drafting this bill.
  Funding authorized by this legislation would support the activities 
of this commission and would allow for educational activities, 
ceremonies, and celebrations. Fittingly, the principal office for this 
operation would be located in St. Augustine, FL.
  With the establishment of this commission, my hope is to not only 
commemorate Ponce de Leon's arrival in Florida but to enhance the 
American public's knowledge about the impact of Florida's discovery on 
the history of the United States. I hope that my colleagues will 
recognize the importance of commemorating this historic event.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2656

       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 ``Ponce de Leon Discovery of 
     Florida Quincentennial Commission Act''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the Quincentennial of the founding of Florida by Ponce 
     de Leon occurs in 2013, 500 years after Ponce de Leon landed 
     on its shores and explored the Keys and the west coast of 
     Florida;
       (2) evidence supports the theory that Ponce de Leon was the 
     first European to land on the shores of Florida;
       (3) Florida means ``the land of flowers'' and the State 
     owes its name to Ponce de Leon;
       (4) Ponce de Leon's quest for the ``fountain of youth'' has 
     become an established legend which has drawn fame and 
     recognition to Florida and the United States;
       (5) the discovery of Florida by Ponce de Leon, the myth of 
     the ``fountain of youth'', and the subsequent colonization of 
     Florida encouraged other European countries to explore the 
     New World and to establish settlements in the territory that 
     is currently the United States;
       (6) Florida was colonized under 5 flags; and
       (7) commemoration of the arrival in Florida of Ponce de 
     Leon and the beginning of the colonization of the Americas 
     would--
       (A) enhance public understanding of the impact of the 
     discovery of Florida on the history of the United States; and
       (B) provide lessons about the importance of exploration and 
     discovery.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Commission.--The term ``Commission'' means the National 
     Commission on the Quincentennial of the discovery of Florida 
     by Ponce de Leon established under section 4(a).
       (2) Quincentennial.--The term ``Quincentennial'' means the 
     500th anniversary of the discovery of Florida by Ponce de 
     Leon.

     SEC. 4. ESTABLISHMENT OF COMMISSION.

       (a) Establishment.--There is established a commission to be 
     known as the ``National Commission on the Quincentennial of 
     the discovery of Florida by Ponce de Leon''.
       (b) Duties.--The Commission shall plan, encourage, 
     coordinate, and conduct the commemoration of the 
     Quincentennial.
       (c) Membership.--
       (1) Composition.--The Commission shall be composed of 12 
     members--
       (A) of whom 5 members shall be Republicans and 5 members 
     shall be Democrats, including--

[[Page 15489]]

       (i) 6 members, of whom 3 members shall be Republicans and 3 
     members shall be Democrats, appointed by the President;
       (ii) 2 members, of whom 1 member shall be a Republican and 
     1 member shall be a Democrat, appointed by the President, on 
     the recommendation of the Majority Leader and the Minority 
     Leader of the Senate; and
       (iii) 2 members, of whom 1 member shall be a Republican and 
     1 member shall be a Democrat, appointed by the President, on 
     the recommendation of the Speaker of the House of 
     Representatives, in consultation with the Minority Leader of 
     the House of Representatives; and
       (B) including the Director of the National Park Service and 
     the Secretary of the Smithsonian Institution.
       (2) Criteria.--A member of the Commission shall be chosen 
     from among individuals that have demonstrated a strong sense 
     of public service, expertise in the appropriate professions, 
     scholarship, and abilities likely to contribute to the 
     fulfillment of the duties of the Commission.
       (3) International participation.--Not later than 60 days 
     after the date of enactment of this Act, the President shall 
     invite the Government of Spain to appoint 1 individual to 
     serve as a nonvoting member of the Commission.
       (4) Date of appointments.--Not later than 60 days after the 
     date of enactment of this Act, the members of the Commission 
     described in paragraph (1) shall be appointed.
       (d) Term; Vacancies.--
       (1) Term.--A member shall be appointed for the life of the 
     Commission.
       (2) Vacancy.--A vacancy on the Commission--
       (A) shall not affect the powers of the Commission; and
       (B) shall be filled in the same manner as the original 
     appointment was made.
       (e) Initial Meeting.--Not later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold the initial meeting of the 
     Commission.
       (f) Meetings.--The Commission shall meet at the call of the 
     co-chairpersons described under subsection (h).
       (g) Quorum.--A quorum of the Commission for decision making 
     purposes shall be 7 members, except that a lesser number of 
     members, as determined by the Commission, may conduct 
     meetings.
       (h) Co-Chairpersons and Vice Co-Chairpersons.--
       (1) Co-chairpersons.--The President shall designate 2 of 
     the members of the Commission, 1 of whom shall be a 
     Republican and 1 of whom shall be a Democrat, to be co-
     chairpersons of the Commission.
       (2) Co-vice-chairpersons.--The Commission shall select 2 
     co-vice-chairpersons, 1 of whom shall be a Republican and 1 
     of whom shall be a Democrat, from among the members of the 
     Commission.

     SEC. 5. DUTIES.

       (a) In General.--The Commission shall--
       (1) conduct a study regarding the feasibility of creating a 
     National Heritage Area or National Monument to commemorate 
     the discovery of Florida;
       (2) plan and develop activities appropriate to commemorate 
     the Quincentennial including a limited number of proposed 
     projects to be undertaken by the appropriate Federal 
     departments and agencies that commemorate the Quincentennial 
     by seeking to harmonize and balance the important goals of 
     ceremony and celebration with the equally important goals of 
     scholarship and education;
       (3) consult with and encourage appropriate Federal 
     departments and agencies, State and local governments, 
     elementary and secondary schools, colleges and universities, 
     foreign governments, and private organizations to organize 
     and participate in Quincentennial activities commemorating or 
     examining--
       (A) the history of Florida;
       (B) the discovery of Florida;
       (C) the life of Ponce de Leon;
       (D) the myths surrounding Ponce de Leon's search for gold 
     and for the ``fountain of youth'';
       (E) the exploration of Florida; and
       (F) the beginnings of the colonization of North America; 
     and
       (4) coordinate activities throughout the United States and 
     internationally that relate to the history and influence of 
     the discovery of Florida.
       (b) Reports.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Commission shall submit to the 
     President and the Committee on Energy and Natural Resources 
     of the Senate and the Committee on Resources of the House of 
     Representatives a comprehensive report that includes specific 
     recommendations for--
       (A) the allocation of financial and administrative 
     responsibility among participating entities and persons with 
     respect to commemoration of the Quincentennial; and
       (B) the commemoration of the Quincentennial and related 
     events through programs and activities, including--
       (i) the production, publication, and distribution of books, 
     pamphlets, films, electronic publications, and other 
     educational materials focusing on the history and impact of 
     the discovery of Florida on the United States and the world;
       (ii) bibliographical and documentary projects, 
     publications, and electronic resources;
       (iii) conferences, convocations, lectures, seminars, and 
     other programs;
       (iv) the development of programs by and for libraries, 
     museums, parks and historic sites, including international 
     and national traveling exhibitions;
       (v) ceremonies and celebrations commemorating specific 
     events;
       (vi) the production, distribution, and performance of 
     artistic works, and of programs and activities, focusing on 
     the national and international significance of the discovery 
     of Florida; and
       (vii) the issuance of commemorative coins, medals, 
     certificates of recognition, and stamps.
       (2) Annual report.--The Commission shall submit an annual 
     report that describes the activities, programs, expenditures, 
     and donations of or received by the Commission to--
       (A) the President; and
       (B) the Committee on Energy and Natural Resources of the 
     Senate and the Committee on Resources of the House of 
     Representatives.
       (3) Final report.--Not later than December 31, 2013, the 
     Commission shall submit a final report that describes the 
     activities, programs, expenditures, and donations of or 
     received by the Commission to--
       (A) the President; and
       (B) the Committee on Energy and Natural Resources of the 
     Senate and the Committee on Resources of the House of 
     Representatives.
       (c) Assistance.--In carrying out this Act, the Commission 
     shall consult, cooperate with, and seek advice and assistance 
     from appropriate Federal departments and agencies, including 
     the Department of the Interior.

     SEC. 6. POWERS OF THE COMMISSION.

       (a) In General.--The Commission may provide for--
       (1) the preparation, distribution, dissemination, 
     exhibition, and sale of historical, commemorative, and 
     informational materials and objects that will contribute to 
     public awareness of, and interest in, the Quincentennial, 
     except that any commemorative coin, medal, or postage stamp 
     recommended to be issued by the United States shall be sold 
     only by a Federal department or agency;
       (2) competitions and awards for historical, scholarly, 
     artistic, literary, musical, and other works, programs, and 
     projects relating to the Quincentennial;
       (3) a Quincentennial calendar or register of programs and 
     projects;
       (4) a central clearinghouse for information and 
     coordination regarding dates, events, places, documents, 
     artifacts, and personalities of Quincentennial historical and 
     commemorative significance; and
       (5) the design and designation of logos, symbols, or marks 
     for use in connection with the commemoration of the 
     Quincentennial and shall establish procedures regarding their 
     use.
       (b) Advisory Committee.--The Commission may appoint such 
     advisory committees as the Commission determines necessary to 
     carry out the purposes of this Act.

     SEC. 7. ADMINISTRATION.

       (a) Location of Office.--
       (1) Principal office.--The principal office of the 
     Commission shall be in St. Augustine, Florida.
       (2) Satellite office.--The Commission may establish a 
     satellite office in Washington, D.C.
       (b) Staff.--
       (1) Appointment of director and deputy director.--
       (A) In general.--The co-chairpersons, with the advice of 
     the Commission, may appoint and terminate a director and 
     deputy director without regard to the civil service laws 
     (including regulations).
       (B) Delegation to director.--The Commission may delegate 
     such powers and duties to the director as may be necessary 
     for the efficient operation and management of the Commission.
       (2) Staff paid from federal funds.--The Commission may use 
     any available Federal funds to appoint and fix the 
     compensation of not more than 4 additional personnel staff 
     members, as the Commission determines necessary.
       (3) Staff paid from non-federal funds.--The Commission may 
     use any available non-Federal funds to appoint and fix the 
     compensation of additional personnel.
       (4) Compensation.--
       (A) Members.--
       (i) In general.--A member of the Commission shall serve 
     without compensation.
       (ii) Travel expenses.--A member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the 
     Commission.
       (B) Staff.--
       (i) In general.--The co-chairpersons of the Commission may 
     fix the compensation of the director, deputy director, and 
     other personnel without regard to the provisions of

[[Page 15490]]

     chapter 51 and subchapter III of chapter 53 of title 5, 
     United States Code, relating to classification of positions 
     and General Schedule pay rates.
       (ii) Maximum rate of pay.--

       (I) Director.--The rate of pay for the director shall not 
     exceed the rate payable for level IV of the Executive 
     Schedule under section 5315 of title 5, United States Code.
       (II) Deputy director.--The rate of pay for the deputy 
     director shall not exceed the rate payable for level V of the 
     Executive Schedule under section 5316 of title 5, United 
     States Code.
       (III) Staff members.--The rate of pay for staff members 
     appointed under paragraph (2) shall not exceed the rate 
     payable for grade GS-15 of the General Schedule under section 
     5332 of title 5, United States Code.

       (c) Detail of Federal Government Employees.--
       (1) In general.--On request of the Commission, the head of 
     any Federal agency or department may detail any of the 
     personnel of the agency or department to the Commission to 
     assist the Commission in carrying out this Act.
       (2) Reimbursement.--A detail of personnel under this 
     subsection shall be without reimbursement by the Commission 
     to the agency from which the employee was detailed.
       (3) Civil service status.--The detail of the employee shall 
     be without interruption or loss of civil service status or 
     privilege.
       (d) Other Revenues and Expenditures.--
       (1) In general.--The Commission may procure supplies, 
     services, and property, enter into contracts, and expend 
     funds appropriated, donated, or received to carry out 
     contracts.
       (2) Donations.--
       (A) In general.--The Commission may solicit, accept, use, 
     and dispose of donations of money, property, or personal 
     services.
       (B) Limitations.--Subject to subparagraph (C), the 
     Commission shall not accept donations--
       (i) the value of which exceeds $50,000 annually, in the 
     case of donations from an individual; or
       (ii) the value of which exceeds $250,000 annually, in the 
     case of donations from a person other than an individual.
       (C) Nonprofit organization.--The limitations in 
     subparagraph (B) shall not apply in the case of an 
     organization that is--
       (i) described in section 501(c)(3) of the Internal Revenue 
     Code of 1986; and
       (ii) exempt from taxation under section 501(a) of the 
     Internal Revenue Code of 1986.
       (3) Acquired items.--Any book, manuscript, miscellaneous 
     printed matter, memorabilia, relic, and other material or 
     property relating to the time period of the discovery of 
     Florida acquired by the Commission may be deposited for 
     preservation in national, State, or local libraries, museums, 
     archives, or other agencies with the consent of the 
     depositary institution.
       (e) Postal Services.--The Commission may use the United 
     States mail to carry out this Act in the same manner and 
     under the same conditions as other agencies of the Federal 
     Government.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Subject to subsection (b), there are 
     authorized to be appropriated to carry out the purposes of 
     this Act such sums as may be necessary for each of fiscal 
     years 2005 through 2013.
       (b) Availability of Funds.--Amounts appropriated under this 
     section for any fiscal year shall remain available until 
     December 31, 2013.

     SEC. 9. TERMINATION OF AUTHORITY.

       The authority provided by this Act terminates effective 
     December 31, 2013.
                                 ______
                                 
      By Ms. COLLINS (for herself and Mr. Akaka):
  S. 2657. A bill to amend part III of title 5, United States Code, to 
provide for the establishment of programs under which supplemental 
dental and vision benefits are made available to Federal employees, 
retirees, and their dependents, to expand the contracting authority of 
the Office of Personnel Management, and for other purposes; to the 
Committee on Governmental Affairs.
  Ms. COLLINS. Mr. President. I am pleased today to introduce 
legislation with my friend and colleague, Senator Akaka, that would 
give Federal employees, retirees, and their families greater access to 
comprehensive dental and vision insurance coverage. The Federal 
Employee Dental and Vision Benefits Enhancement Act of 2004 would 
establish a voluntary program under which Federal employees and 
annuitants may purchase dental and vision coverage. The legislation 
grants the Office of Personnel Management (OPM) the authority to select 
the appropriate combination of nationwide and regional companies and a 
variety of benefit packages to meet the diverse needs of our Federal 
employee and annuitant population.
  The National Institute of Dental and Craniofacial Research estimates 
that for every dollar spent on dental disease prevention, $4 is saved 
in subsequent treatment costs. Improved access to dental and vision 
care is an essential component of any comprehensive health care 
strategy. Federal employees need and deserve increased access to dental 
and vision benefits.
  Today, the Federal community has access to excellent medical coverage 
through the Federal Employees Health Benefits Program (FEHB). 
Unfortunately, the program provides reimbursement for only a small 
fraction of dental care. Customer surveys indicate that FEHB enrollees 
want more comprehensive dental and vision benefits than those that are 
currently being provided in the FEHB program. The increasing demand for 
dental and vision benefits has prompted Senator Akaka and me to pursue 
legislation that would offer separate and improved coverage for Federal 
employees, retirees, and their families.
  The stand-alone model contained in my legislation preserves the 
integrity of the FEHB while encouraging the purchase of additional 
dental and vision coverage. It is important to note that nothing in my 
legislation prevents the existing medical carriers from continuing to 
offer dental and vision coverage under the FEHBP. Further, nothing in 
the legislation precludes current FEHBP carriers from participating in 
the competitive process to offer benefits under the new voluntary 
dental and vision programs. The legislation simply provides a mechanism 
for dental and vision companies to participate in the Federal employee 
benefits arena.
  In recognition of the enormous fiscal pressures faced by the Federal 
Government, the legislation is designed to provide an employee-paid 
dental and vision benefit, patterned after the Federal Employees Long-
Term Care Insurance Program. By leveraging the purchasing power of the 
Federal Government, combined with market-driven competition, OPM would 
have the ability to provide access to more comprehensive dental and 
vision coverage to employees and retirees at no cost to the Federal 
Government. Federal employees would have the confidence that OPM has 
given its seal of approval to the benefit packages provided under the 
voluntary programs.
  The legislation recognizes the geographic dispersion of the Federal 
workforce and the need for greater access to care through local dental 
and eye health professionals by requiring companies to provide coverage 
in under-served areas. For example, companies selected to provide 
coverage to a particular region would be required to develop and 
maintain provider networks in all States, including States where access 
to care may be less available.
  While the legislation lists general categories of benefits that may 
be offered under the new programs, the statutory model is flexible to 
ensure that the benefit packages can be modified over time to 
incorporate future advances in dental and vision products, therapies, 
and technologies.
  Employees look to their employer to provide education about their 
benefits. For this reason, the legislation requires OPM to make 
available the educational tools necessary so that Federal employees 
have a clear understanding of the choices available to them. Employees 
will have access to information on how the voluntary plans can 
supplement the existing, though limited, coverage offered by their 
medical plan under the FEHBP, to meet their individual needs for care. 
OPM would also educate employees about the value of their existing 
Flexible Spending Accounts to help cover out-of-pocket dental and 
vision expenses. These options can help Federal employees and 
annuitants get the best value for their premium dollar.
  Administration by OPM would ensure that each contract is awarded on 
the basis of quality and price, and that the companies understand and 
adapt to the needs of Federal employees, retirees, and their families. 
Additionally, OPM would provide participants access to a process to 
appeal adverse benefit determinations. Premiums can be made through 
payroll or annuity deductions, direct payments to the participating 
companies, or both. The plans would be

[[Page 15491]]

open to all Federal civilian employees and annuitants, regardless of 
whether they currently participate in the FEHBP.
  As with the Long-Term Care Insurance Program, our measure for the 
success of the dental and vision programs would be the extent to which 
Federal employees purchase these benefits.
  My colleagues and I have recognized, through our support of 
legislation to assist the Federal Government with its recruitment and 
retention efforts, that the Federal Government's most important asset 
is its human capital. Employees of 48 State governments offer or 
provide access to dental benefit plans to employees. Surveys indicate 
that 95 percent of employers with 500 or more employees provide dental 
insurance. The opportunity to purchase enhanced dental and vision 
coverage will help the government with its ongoing efforts to recruit 
and retain a highly qualified workforce.
  The legislation is supported by the American Federation of Government 
Employees, the National Treasury Employees Union, the National 
Association of Dental Plans, and the American Optometric Association. I 
hope my colleagues will join me in providing our Federal employee 
community with greater access to dental and vision coverage.
                                 ______
                                 

  By Mr. DOMENICI (for himself, Mrs. Feinstein, Mr. Craig, Mr. 
Bingaman, and Mr. Durbin):
  S. 2658. A bill to establish a Department of Energy National 
Laboratories water technology research and development program, and for 
other purposes; to the Committee on Environment and Public Works.
  Mr. DOMENICI. Mr. President. There is no more important or essential 
substance to us than water. It is the source from which life springs. 
It also has the potential to be the source of incredible conflict 
ranging from local to international levels. Fresh water supplies are 
coming under pressure all over the globe. By mid-century, over half of 
the world's population will face severe water shortages. These 
shortages go beyond drinking water; particularly important is the nexus 
of water and energy production--another flash point in global affairs. 
Seriously confronting this problem before it leads to tremendous 
burdens on this nation and the world is an endeavor as worthwhile as 
any I can contemplate.
  Research and development in this area has long been without concerted 
national attention. Water and water rights have traditionally been 
under the purview of the States, and rightly so. But few States have 
the capacity and funding to adequately address this problem. Users of 
water resources are highly risk averse and can ill afford to take 
chances on unproven technology. At the Federal level, at least 
seventeen agencies do water research, however only three currently 
engage in water supply augmentation research--the Department of 
Agriculture, the Bureau of Reclamation, and the Department of Energy. 
According to the National Research Council's June 17, 2004 report 
entitled ``Confronting the Nation's Water Problems: The Role of 
Research,'' the total Federal investment in water resources research in 
2000 dollars has been level at $700m since 1967. The Federal investment 
in 2000 was 5 percent less than the investment in 1973 in indexed 
dollars. The total Federal water research investment of $700m 
represents about 0.5 percent of the Federal research budget--for the 
most fundamental resource need. Investment in Water supply augmentation 
research funding has declined from $160m in 1970 to $14m in 2000.
  These circumstances have led to neglect in long-term, cutting edge, 
commercially viable research and development. This is ultimately 
untenable. We know what is possible, we have acted successfully before. 
Federal investment in the 1960's and 1970's is the basis for existing 
desalination technology that substantially expanded U.S. and world wide 
water supplies. We know that a similar investment can again achieve 
such results. Thus, the lack of Federal investment is unacceptable 
given our prior experiences and our complete and utter dependence on 
this resource.
  Our nation's efforts to address these problems must be fought on 
multiple fronts. We must provide for development and maintenance of 
water infrastructure, particularly in rural areas. This is the 
infrastructure that sustains our lives and livelihoods. We must make 
our management of this precious resource more rational. We must make a 
concerted effort to more fully understand and extend the limits of our 
fresh and lower quality water. We must coordinate and enhance our 
technology to address both water quality and quantity. We cannot fight 
all these fronts with one effort, but we can begin to address aspects 
of the problem.
  To that end, I introduce today the Department of Energy National 
Laboratories Water Research and Development Act of 2004. This 
admittedly ambitious bill authorizes a substantial Federal investment 
of up to $200 million per year for basic and applied research and 
development in water supply technologies. The emphasis of this program 
is developing and deploying new and affordable technology to improve 
water quantity and quality. Its primary goal is to facilitate and guide 
research, development, and deployment of affordable and cutting edge 
technology that increases the quantity and quality of water available 
for multiple uses. This will be done across the Nation, in a wide range 
of hydrogeographies and water situations.
  The effort combines the expertise and resources of our great National 
Laboratories and universities across the country. The Program builds on 
the immense investment in new technology and basic science within the 
labs and universities and directs it toward this critical human need. 
It will also compliment and strengthen the many programs and efforts 
underway at Federal agencies and non-governmental organizations.
  The Act authorizes the Department of Energy, through the National 
Laboratories, to partner with universities in specified regions to work 
on technology for particularized areas of research. Each region will be 
tasked with addressing a given range of issues. These include brine 
removal and inland desalination to re-use and conservation technology. 
Furthermore, the water and energy nexus will be fully explored. 
Pressures created by water needed to supply energy and energy necessary 
to produce usable water have not, to date, been sufficiently addressed.
  A grant program will be created to augment existing efforts by non-
program members. Many Federal agencies and non-governmental entities 
have ongoing projects in this arena including the Bureau of Reclamation 
(``BOR''), the Department of Agriculture (``USDA''), the Department of 
Defense (``DOD'') (through the Office of Naval Research), the 
Environmental Protection Agency (``EPA''), and NASA. Additionally, the 
Program fully incorporates public-private partnerships such as those 
already working with the American Water Resources Research Foundation, 
the WateReuse Foundation and many others.
  Finally, this bill creates a National Water Supply Law and Policy 
Institute. The Policy Center's responsibilities include identifying 
intervention points where technological development may help alleviate 
real and potential water supply problems. The Policy Institute will act 
as a clearinghouse for relevant information on regulations, laws and 
codes--from municipal to national scales focused on helping to overcome 
obstacles of new technology that can expand water supplies.
  The Program will be administered by a Program Coordinator appointed 
by the Secretary of Energy. The Coordinator will administer the program 
from facilities located at Sandia National Laboratory, our Nation's 
best applied engineering lab. Acting as the coordinating institution, 
Sandia is responsible for technology development road-mapping and 
assisting the Regional Centers in transferring their creations from 
bench-scale to commercialization. Sandia is also charged with guiding 
the Policy Center.
  The conditions are present to necessitate the Federal government 
taking a lead role. We must act now. The costs of inaction will be 
borne by all of us.

[[Page 15492]]

The market is skewed against development. It is a matter of personal 
and national security. It is a matter of human necessity. It is a 
matter of time.
  The need is great. The goal is good. Let us begin.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2658

       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 ``Department of Energy 
     National Laboratories Water Technology Research and 
     Development Act''.

     SEC. 2. PURPOSE.

       The purpose of this Act is to establish within the 
     Department of Energy a program for research on and the 
     development of economically viable technologies that would--
       (1) substantially improve access to existing water 
     resources;
       (2) promote improved access to untapped water resources;
       (3) facilitate the widespread commercialization of newly 
     developed water supply technologies for use in real-world 
     applications;
       (4) provide objective analyses of, and propose changes to, 
     current water supply laws and policies relating to the 
     implementation and acceptance of new water supply 
     technologies developed under the program; and
       (5) facilitate collaboration among Federal agencies in the 
     conduct of research under this Act and otherwise provide for 
     the integration of research on, and disclosure of information 
     relating to, water supply technologies.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Advisory panel.--The term ``Advisory Panel'' means the 
     National Water Supply Technology Advisory Panel established 
     under section 5(a).
       (2) Institute.--The term ``Institute'' means the National 
     Water Supply Law and Policy Institute designated by section 
     8(a).
       (3) Program.--The term ``program'' means the National 
     Laboratories water technology research and development 
     program established under section 4(a).
       (4) Program coordinator.--The term ``Program Coordinator'' 
     means the individual appointed to administer the program 
     under section 4(c).
       (5) Regional center.--The term ``Regional Center'' means a 
     Regional Center designated under subsection (b) or (e) of 
     section 6.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (7) Water supply technology.--The term ``water supply 
     technology'' means a technology that is designed to improve 
     water quality, make more efficient use of existing water 
     resources, or develop potential water resources, including 
     technologies for--
       (A) reducing water consumption in the production or 
     generation of energy;
       (B) desalination and related concentrate disposal;
       (C) water reuse;
       (D) contaminant removal, such as toxics identified by the 
     Environmental Portection Agency and new and emerging 
     contaminants (including perchlorate and nitrates);
       (E) agriculture, industrial, and municipal efficiency; and
       (F) water monitoring and systems analysis.

     SEC. 4. NATIONAL LABORATORIES WATER TECHNOLOGY RESEARCH AND 
                   DEVELOPMENT PROGRAM.

       (a) Establishment.--The Secretary shall establish a 
     National Laboratories water technology research and 
     development program for research on, and the development and 
     commercialization of, water supply technologies.
       (b) Program Lead Laboratory.--The program shall be carried 
     out by the National Laboratories, with Sandia National 
     Laboratory designated as the lead laboratory for the program.
       (c) Program Coordinator.--
       (1) In general.--The Secretary shall appoint an individual 
     at Sandia National Laboratory as the Program Coordinator to 
     administer the program.
       (2) Duties.--In carrying out the program, the Program 
     Coordinator shall--
       (A) establish budgetary and contracting procedures for the 
     program;
       (B) perform administrative duties relating to the program;
       (C) provide grants under section 7;
       (D) conduct peer review of water supply technology 
     proposals and research results;
       (E) establish procedures to determine which water supply 
     technologies would most improve water quality, make the most 
     efficient use of existing water resources, and provide 
     optimum development of potential water resources.
       (F) coordinate budgets for water supply technology research 
     at Regional Centers;
       (G) coordinate research carried out under the program, 
     including research carried out by Regional Centers;
       (H) perform annual evaluations of research progress made by 
     grant recipients and Regional Centers;
       (I) establish a water supply technology transfer program to 
     identify, and facilitate commercialization of, promising 
     water supply technologies, including construction and 
     implementation of demonstration facilities, partnerships with 
     industry consortia, and collaboration with other Federal 
     programs;
       (J) establish procedures and criteria for the Advisory 
     Panel to use in reviewing Regional Center performance;
       (K) widely distribute information on the program, including 
     through research conferences; and
       (L) implement cross-cutting research to develop sensor and 
     monitoring systems for water and energy efficiency and 
     management.

     SEC. 5. NATIONAL WATER SUPPLY TECHNOLOGY ADVISORY PANEL.

       (a) Establishment.--The Secretary shall establish an 
     advisory panel, to be known as the ``National Water Supply 
     Technology Advisory Panel'', to advise the Program 
     Coordinator on the direction of the program and facilitating 
     the commercialization of the water supply technologies 
     developed under the program.
       (b) Membership.--Members of the Advisory Panel shall--
       (1) have expertise in water supply technology; and
       (2) be representative of educational institutions, 
     industry, States, local government, international water 
     technology institutions, other Federal agencies, and 
     nongovernmental organizations.
       (c) Assessment Responsibilities.--In addition to other 
     responsibilities, the Advisory Panel shall--
       (1) periodically assess the performance of the National 
     Laboratories and universities designated as Regional Centers 
     under section 6; and
       (2) make recommendations to the Secretary for renewing the 
     designation of Regional Centers.

     SEC. 6. REGIONAL CENTERS.

       (a) In General.--A Regional Center shall--
       (1) consist of 1 National Laboratory designated under 
     subsection (b) or (e), acting in partnership with 1 or more 
     universities selected under subsection (c); and
       (2) be eligible for a grant under section 7(a) for the 
     conduct of research on the specific water supply technologies 
     identified under subsection (b) or (e).
       (b) Initial Regional Centers.--There are designated as 
     Regional Centers--
       (1) the Northeast Regional Center, consisting of the 
     Brookhaven National Laboratory and any university partners 
     selected under subsection (c), which shall conduct research 
     on reducing water quality impacts from power plant outfall 
     and decentralized (soft-path) water treatment;
       (2) the Central Atlantic Regional Center, consisting of the 
     National Energy Technology Laboratory and any university 
     partners selected under subsection (c), which shall conduct 
     research on produced water purification and use for power 
     production and water reuse for large cities;
       (3) the Southeast Regional Center, consisting of the Oak 
     Ridge National Laboratory and any university partners 
     selected under subsection (c), which shall conduct research 
     on--
       (A) shallow aquifer conjunctive water use;
       (B) energy reduction for sea water desalination; and
       (C) membrane technology development.
       (4) the Midwest Regional Center, consisting of the Argonne 
     National Laboratory and any university partners selected 
     under subsection (c), which shall conduct research on--
       (A) water efficiency in manufacturing; and
       (B) energy reduction in wastewater treatment;
       (5) the Central Regional Center, consisting of the Idaho 
     National Engineering and Environmental Laboratory and any 
     university partners selected under subsection (c), which 
     shall conduct research on--
       (A) cogeneration of nuclear power and water;
       (B) energy systems for pumping irrigation; and
       (C) watershed management;
       (6) the West Regional Center, consisting of the Pacific 
     Northwest National Laboratory and any university partners 
     selected under subsection (c), which shall conduct research 
     on conjunctive management of hydropower and mining water 
     reuse, including separations processes;
       (7) the Southwest Regional Center, consisting of the Los 
     Alamos National Laboratory and any university partners 
     selected under subsection (c), which shall conduct research 
     on--
       (A) water for power production in arid environments;
       (B) energy reduction and waste disposal for brackish 
     desalination;
       (C) high water and energy efficiency in arid agriculture; 
     and
       (D) transboundary water management; and
       (8) the Pacific Regional Center, consisting of the Lawrence 
     Livermore National Laboratory and any university partners 
     selected under subsection (c), which shall conduct research 
     on--
       (A) point of use technology, water treatment, and 
     conveyance energy reduction;

[[Page 15493]]

       (B) co-located energy production and water treatment; and
       (C) water reuse for agriculture.
       (c) Selection of University Partners.--Not later than 180 
     days after the date on which a National Laboratory is 
     designated under subsection (b) or (e), each National 
     Laboratory, in consultation with the Program Coordinator and 
     the Advisory Panel, shall select a primary university partner 
     and may nominate additional university partners.
       (d) Operational Procedures.--Not later than 1 year after 
     the date of enactment of this Act, a Regional Center 
     designated by subsection (b) shall submit to the Program 
     Coordinator operational procedures for the Regional Center.
       (e) Additional Regional Centers.--Subject to approval by 
     the Advisory Panel, the Program Coordinator may, not sooner 
     than 5 years after the date of enactment of this Act, 
     designate not more than 4 additional Regional Centers if the 
     Program Coordinator determines that there are additional 
     water supply technologies that need to be researched.
       (f) Period of Designation.--
       (1) In general.--A designation by subsection (b) or under 
     subsection (c) shall be for a period of 5 years.
       (2) Assessment.--A Regional Center shall be subject to 
     periodic assessments by the Program Coordinator in accordance 
     with procedures and criteria established under section 
     4(b)(2)(K)(i).
       (3) Renewal.--After the initial period under paragraph (1), 
     a designation may be renewed for subsequent 5-year periods by 
     the Program Coordinator in accordance with procedures and 
     criteria established under section 4(b)(2)(K)(ii).
       (4) Termination or nonrenewal.--
       (A) In general.--Based on a periodic assessment conducted 
     under paragraph (2), in accordance with the procedures and 
     criteria established under section 4(b)(2)(K)(iii), and after 
     review by the Advisory Panel, the Program Coordinator may 
     recommend that the Secretary terminate or determine not to 
     renew the designation of a Regional Center.
       (B) Termination.--Following a recommendation for 
     termination or nonrenewal by the Program Coordinator, the 
     Secretary may terminate or choose not to renew the 
     designation of a Regional Center.
       (g) Executive Director.--A Regional Center shall be 
     administered by an executive director, subject to approval by 
     the Program Coordinator.
       (h) Publication of Research Results.--A Regional Center 
     shall periodically publish the results of any research 
     carried out under the program in appropriate peer-reviewed 
     journals.

     SEC. 7. PROGRAM GRANTS.

       (a) Block Grants to Regional Centers.--
       (1) In general.--The Program Coordinator shall, subject to 
     the availability of appropriations, provide a block grant to 
     a Regional Center for the conduct of research in the specific 
     area identified for the Research Center under section 6(b).
       (2) Distribution.--Of the amounts made available to a 
     Regional Center under paragraph (1), 50 percent shall be 
     distributed to the university partners selected under section 
     6(c), in accordance with the operational procedures for the 
     Regional Center developed under section 6(d).
       (3) Cost-sharing requirement.--A National Laboratory or 
     university partner that receives a grant provided under this 
     subsection shall not be subject to a cost-sharing 
     requirement.
       (b) Grants to Collaborative Institutions.--
       (1) In general.--The Program Coordinator shall provide 
     competitive grants to eligible collaborative institutions for 
     water supply technology research, development, and 
     demonstration projects.
       (2) Eligible collaborative institutions.--The following are 
     eligible for grants under paragraph (1):
       (A) Nongovernmental organizations.
       (B) National Laboratories.
       (C) Private corporations.
       (D) Industry consortia.
       (E) Universities or university consortia.
       (F) International research consortia.
       (G) Any other entity with expertise in the conduct of 
     research on water supply technologies.
       (3) Distribution.--Of the amounts made available for grants 
     under paragraph (1)--
       (A) not less than 15 percent or more than 25 percent shall 
     be provided as block grants to nongovernmental organizations, 
     which may be redistributed by the nongovernmental 
     organization to individual projects;
       (B) not less than 20 percent or more than 30 percent shall 
     be provided to National Laboratories;
       (C) not less than 15 percent or more than 25 percent shall 
     be provided to support individual projects that are 
     recommended by at least 1 other Federal Agency; and
       (D) any amounts remaining after the distributions under 
     subparagraphs (A) through (C) may be provided to support 
     individual projects, as the Program Coordinator determines to 
     be appropriate.
       (4) Cost-sharing requirements.--
       (A) Grants to nongovernmental organizations and individual 
     projects.--The non-Federal share of the total cost of any 
     project assisted under subparagraphs (A) or (C) of paragraph 
     (3) shall be 50 percent.
       (B) Grants to national laboratories.--A National Laboratory 
     that receives a grant under paragraph (3)(B) shall not be 
     subject to a cost-sharing requirement.
       (C) Grants to other entities.--The non-Federal share of the 
     total cost of any project assisted under paragraph (3)(D) 
     shall be 25 percent.
       (5) Term of grant.--
       (A) In general.--Except as provided in subparagraph (B), a 
     grant provided under paragraph (1) shall be for a term of 2 
     years.
       (B) Renewal.--The Program Coordinator may renew a grant for 
     up to 2 additional years as the Program Coordinator 
     determines to be appropriate.
       (6) Treatment of funds.--Amounts received under a grant 
     provided to a non-Federal entity under this subsection shall 
     be considered to be non-Federal funds when used as matching 
     funds by the non-Federal entity toward a Federal cost-shared 
     project conducted under another program.
       (7) Criteria.--The Program Coordinator shall establish 
     criteria for the submission and review of grant applications 
     and the provision of grants under paragraph (1).

     SEC. 8. NATIONAL WATER SUPPLY LAW AND POLICY INSTITUTE.

       (a) Designation.--The Utton Center at the University of New 
     Mexico Law School is designated as the National Water Supply 
     Law and Policy Institute.
       (b) Duties.--The Institute shall--
       (1) establish a database of existing water laws, 
     regulations, and policy;
       (2) provide legal, regulatory, and policy alternatives to 
     increase national and international water supplies;
       (3) consult with the Regional Centers, other participants 
     in the program (including States), and other interested 
     persons, on water law and policy and the effect of that 
     policy on the development and commercialization of water 
     supply technologies; and
       (4) conduct an annual water law and policy seminar to 
     provide information on research carried out or funded by the 
     Institute.
       (c) Partnerships.--The Institute may enter into 
     partnerships with other institutions to assist in carrying 
     out the duties of the Institute under subsection (b).
       (d) Executive Director.--The Institute shall be 
     administered by an executive director, to be appointed by the 
     dean of the University of New Mexico Law School, in 
     consultation with the Program Coordinator.

     SEC. 9. REPORTS.

       (a) Reports to Program Coordinator.--Any Regional Center, 
     National Laboratory, or collaborative institution that 
     receives a grant under section 7 shall submit to the Program 
     Coordinator an annual report on activities carried out using 
     amounts made available under this Act during the preceding 
     fiscal year.
       (b) Report to Congress.--Not later than 3 years after the 
     date of enactment of this Act and each year thereafter, the 
     Program Coordinator shall submit to the Secretary and 
     Congress a report that describes the activities carried out 
     under this Act.

     SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary for fiscal year 2005 and each subsequent fiscal 
     year--
       (1) for the administration of the program by the Program 
     Coordinator and the construction of any necessary program 
     facilities, $25,000,000; and
       (2) for research and development carried out under the 
     program, $200,000,000.
       (b) Allocation.--Of amounts made available under subsection 
     (a)(2) for a fiscal year--
       (1) at least 15 percent shall be made available for the 
     water supply technology transfer program established under 
     section 4(b)(2)(I);
       (2) the lesser of $10,000,000 or 5 percent shall be made 
     available for grants under section 7(a);
       (3) at least 30 percent shall be made available for grants 
     to collaborative institutions under section 7(b); and
       (4) the lesser of $10,000,000 or 5 percent shall be made 
     available for the Institute.

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