[Congressional Record (Bound Edition), Volume 150 (2004), Part 19]
[Senate]
[Pages 25869-25872]
[From the U.S. Government Publishing Office, www.gpo.gov]




                            MORNING BUSINESS

  Mr. FRIST. Mr. President, I ask unanimous consent that there now be a 
period for morning business with Senators permitted to speak for up to 
10 minutes each.
  The PRESIDING OFFICER. Without objection, it is so ordered.

              Fiscal Year 2005 Omnibus Appropriations Act

  Mr. STEVENS. Mr. President, I am pleased to report that the House 
just passed the joint House-Senate Conference Report on the Foreign 
Operations Appropriations bill for fiscal

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year 2005. That Omnibus appropriations bill included the Agriculture 
Appropriations bill; the Commerce, Justice, State Appropriations bill; 
the Energy and Water Appropriations bill; the Foreign Operations 
Appropriations bill; the Interior Appropriations bill; the Labor, 
Health, and Human Services bill; the Legislative Branch Appropriations 
bill; the Transportation Appropriations bill; and the VA-HUD 
Appropriations bill.
  I would like to take this opportunity to clarify a few points in the 
bill to provide guidance to those who will implement it.
  Denali Commission: The conferees provided $67,000,000 for the Denali 
Commission. In addition to the allocations outlined in the bill itself, 
there are a number of other projects to which the Denali Commission 
should give priority consideration: $2,000,000 for the Tok/Chistochina 
Intertie project; $500,000 for the Fire Island extension; $146,000 for 
Chenega Bay Utilities, $1,000,000 for Bristol Bay power generation; 
$2,000,000 for a Low Rank Fuel Demonstration project, and $1,500,000 
for Cape Fox corporation for economic development. The commission is 
also encouraged to give the following projects priority consideration: 
the Petersburg Diesel Power Generation Facility project, the Valdez 
Electric project and funding for elder housing in Maniliq.
  Corps of Engineers: Given tough budgetary constraints, Congress was 
unable to fund the full amount necessary to address the impending 
disaster that Hubbard Glacier poses to the community of Yakutat, AK. It 
is my expectation that the Army Corps of Engineers, the Forest Service, 
the Natural Resource Conservation Service, and the Federal Emergency 
Management Agency will, through available funds, provide the resources 
necessary to immediately address this situation. The conferees have 
included authorization for the Secretary of Army to undertake this 
task.
  Energy projects: This year, the omnibus bill includes $5,000,000 to 
be used to support a solicitation for solid oxide fuel cell research to 
look at the application of solid oxide electrochemical technology for 
the co-production of hydrogen and electricity. The research will also 
focus on the storage of electricity through closed and open system 
regenerative fuel cells. This funding is intended to create a pilot 
project in Alaska to develop solid oxide fuel cell technology. The 
conferees are disappointed that the funds previously provided for this 
purpose were diverted by the Office of Energy Efficiency and Renewable 
Energy.
  There are a couple of matters I want to clarify to provide guidance 
to the agencies who will administer the bill.
  Food Safety: The conferees have provided funds for a National Animal 
Identification System to monitor cattle to prevent mad cow disease, but 
did not specify the technology or means to accomplish that end. It has 
come to my attention that a chain traceable model could track cattle 
through private sector mechanisms at very little cost to the 
Government. I hope the new Secretary of Agriculture will look at a 
range of means to prevent mad cow disease from infiltrating into our 
food supply including market driven solutions.
  In addition, it is my understanding that a new technology has been 
developed that can detect food borne pathogens like salmonella. A film 
covering food, similar to plastic wrap, turns color if the food has 
become contaminated. This technology offers exciting opportunities for 
the seafood industry in particular, and I urge the new Secretary to 
take whatever steps possible to bring this new technology to market.
  The conferees expect USDA to pursue efforts to expeditiously reopen 
the border between Alaska and Canada. This border closure has 
devastated farmers in Alaska. USDA currently has a proposal to 
accomplish this task and they are urged to carefully evaluate its 
merits.
  Rural Development Administration: Within the funds that are provided 
to the Rural Development Administration, the Alaska Region should give 
priority consideration to a grant for the Ketchikan Arts facility. I 
visited with the developers of that project and believe it would be an 
excellent community facility.
  Likewise, last month after we had already marked up the bill, I was 
able to meet with leaders in Homer, AK concerning the need for a new 
library. That, too, is a meritorious project and the Alaska Region 
should give priority consideration to a grant application for that 
project.
  Lastly, peat is a major commodity in the lower 48 States, especially 
organic peat which can be sold for huge profits. But, in Alaska peat is 
often considered a nuisance, since it has to be dug out before 
construction can go forward in many areas of the State. One way to 
offset that costly excavation while creating new economic opportunity 
is to develop peat as a saleable commodity. The conferees urge the 
Alaska Region to consider a grant to develop peat fields in Alaska as 
an emerging new industry.
  High Cost Energy Program: The bill provides $28,000,000 for the high 
cost energy program to reduce the cost of energy for consumers paying 
about 20 cents a kilowatt hour or more. The underlying authorization 
allows most of those funds to flow to the Denali Commission in Alaska 
which serves the largest segment of high cost energy users in the 
country. Energy costs in rural Alaska are the highest in the Nation. To 
reduce those costs, within the funds provide to the High Cost Energy 
program, the conferees expect that $2,000,000 be provided to the Arctic 
Energy Office for research into energy and electric issues in remote 
and rural communities. These funds are critical to identifying ways of 
reducing costs in rural Alaska communities and Native villages.
  City of Marshall water hook-ups: The measure includes $26,000,000 for 
rural water and sewer program in rural Alaska. The conferees note that 
Marshall, AK has Indian housing built through HUD, but no money to link 
the houses to water and sewer. Within the funds provided in this 
account, the Committee expects the Alaska Village Safe Water Program to 
fund the Marshall water hook-ups.
  Pribilof Island clean-up: The conferees agree to provide $7,000,000 
which may be used by NOAA for both clean-up of the Pribilof Islands and 
economic development activities. In consulting with the people of St. 
Paul and St. George, it is their preference that $6,500,000 of the 
funds be available for economic development and $500,000 be used to 
continue NOAA's clean-up activities. Congress passed the Pribilof 
Islands Transition Act, which among other things authorized funding for 
economic development on the islands. During the drafting of that 
legislation, it was agreed the funds would be split between the various 
entities according to specific ratios, which were then used in the Act 
to allocate the authorizations stated at 16 USC Sec. 1166(c)(1). The 
conferees support that allocation, and I have consulted with 
Congressman Young, the author of those bills, who agrees as well. The 
agency is urged to comply with the islanders' wishes.
  Alaska Ocean Observing System: Due to a clerical error in the bill, 
Alaska Ocean Observing System is titled, ``Alaska Gulf Ecosystem 
Monitoring.'' It is the intent of the conferees that the $2,000,000 
provided for this project shall be for the Alaska Ocean Observing 
System and not the Alaska Gulf Ecosystem Monitoring.
  Economic Development Administration: The bill also provides funds for 
the Economic Development Administration, $15,000,000 of which is to 
assist coastal communities in Alaska pursuant to an agreement the 
Alaska delegation made with Secretary Evans when the Trade Act was 
considered. Within these funds, EDA should make $1,500,000 available to 
Cape Fox Corporation for economic development activities.
  Office of Arctic Energy: Within the amounts provided for the Arctic 
Energy Office, it is the conferees expectation that $2,000,000 will be 
made available for shallow gas exploration and development in Ft. 
Yukon, AL, to assist that community and address its energy

[[Page 25871]]

needs; and $3,000,000 will be made available for work on the gas 
pipeline spur to Cook Inlet.
  Fish and Wildlife Service: As part of the fiscal year 2005 
Consolidated Appropriations Conference Report, Section 126 of Division 
E requires a comprehensive program for mass marking of hatchery 
produced salmon stocks originating from the Pacific Northwest. The 
State of Alaska currently conducts an extensive salmon stock 
identification program based on visual identification of fin clipped 
hatchery salmon that have been implanted with coded wire tags.
  The additional requirements imposed by Section 126, which provides 
for the implementation of ``a system of mass marking of salmonid 
stocks, intended for harvest, that are released from Federally operated 
or Federally financed hatcheries . . .'' could have significant 
financial implications on both the State of Alaska and on the Alaska 
commercial fishing industry. The Alaska Department of Fish and Game has 
serious concerns about the impact of mass marking requirements of this 
section on its ongoing salmon stock sampling program.
  The Alaska Department of Fish and Game determined that if far-north-
migrating chinook salmon are mass marked by clipping the adipose fin, 
the State will have two options: 1, continue with visual identification 
of marked fish, or, 2, convert to electronic sampling. Either option 
will cause the State's salmon stock sampling program to be far more 
costly. The conferees recommend that if mass marking is implemented, it 
should be done for Puget Sound and Columbia River Tule Chinook and not 
implemented for Columbia Upriver Bright or Washington Coastal Chinook 
salmon. These stocks of salmon represent a significant portion of the 
Alaska salmon fisheries and mass marking of these stocks will incur a 
high cost on the Alaskan fishing industry and the state's fisheries 
management program.
  Further, the conferees recommend that mass marking of chinook salmon 
should not be implemented without the concurrence of state and federal 
agencies on an effective means of stock identification that will 
support the implementation of the Pacific Salmon Treaty and other state 
and federal laws and regulations. In addition, the conferees recommend 
that the U.S. Fish and Wildlife Service work with the State of Alaska 
and the United States Section of the Pacific Salmon Commission to 
ensure that the system of mass marking does not interfere significantly 
with data collection, salmon management programs, or the implementation 
of abundance-based management under the treaty. The conferees direct 
the U.S. Fish and Wildlife Service to ensure that changes in fishery 
and stock assessment programs needed to maintain the reliability of 
those programs are identified and that funding is secured for 
implementation of the changes made by this section.
  Kenai Fjords National Park: The conferees have included bill language 
requiring the National Park Service to acquire land to construct a 
multi-agency visitor center that has been under discussion for nearly a 
decade notwithstanding any other provision of law. That means the 
Service will acquire the land at a negotiated price notwithstanding any 
other issues or obstacles. No more delays. It is time to get this 
project done. The conferees urge the service to expedite construction 
of the project as well. It should consider utilizing Section 1307 of 
the Alaska National Interest Lands Conservation Act for the project if 
it will speed up the process. It should also consider a build-lease 
option which it used to acquire a new Alaska Region headquarters in 
Anchorage. The conferees note that this project has already been 
delayed and as a result missed Seward's centennial celebration. The 
authority we have provided will ensure that the project can now be 
completed with dispatch.
  Lake Clark National Park: I am aware that the National Park Service 
and Cook Inlet Region Inc. are currently discussing options for the 
disposition of the Silver Salmon Camp. Until these issues are resolved, 
it is the expectation of the conferees that the National Park Service 
will issue a long term recreational permit to Cook Inlet Region Inc. or 
a related non-profit for the continued operation of the camp.
  Denali Commission: The committee has provided $40,000,000 for the 
Denali Commission for health and social service construction projects. 
Within the funds made available for clinics, the conferees expect the 
Commission to provide the necessary funds for a joint clinic-library-
community center in Girdwood, AK. It may use health funds for the 
clinic portion of the project and its general funds provided through 
the Energy and Water bill for the community center and library.
  Special Education: The conferees have agreed to over $11,000,000,000 
for special education. The Department of Education should consider 
making funds available to conduct a pilot program in Anchorage, AK to 
treat children suffering from attention deficit or hyperactivity 
disorder or FAS/FAE through biofeedback to determine whether this might 
be a useful alternative to drug therapy.
  Section 115: The conferees have agreed to a provision to correct a 
drafting error that caused the earmarks provided to Alaska in the 
Fiscal Year 2004 Transportation bill to come out of the State of 
Alaska's mandatory formula funds under the highway bill instead of 
discretionary funds. This amendment clarifies that Alaska's earmarks 
are to be allocated out of discretionary funds and have no impact on 
highway funds Alaska receives through the formula.
  Rural Air Service Improvement Act of 2004: Title J includes another 
provision called the Rural Air Service Improvement Act of 2004. This is 
an amendment worked on by the House Transportation Committee chairman, 
Don Young, and I. The State of Alaska has a very limited system of 
roads to connect communities. Most communities can only be reached by 
air. In order to connect the communities within the State, the Inter-
Alaska bypass mail system was created to support affordable, safe air 
travel and establish a system where the Postal Service can meet its 
obligation to deliver mail to every house. The provisions within the 
appropriations bill refine the Inter-Alaska bypass mail system by 
eliminating unnecessary flights flown by mainline air carriers, by 
reducing the requirement to two schedule flights per week. The section 
also grants the United States Postal Service the discretion to increase 
the number of scheduled flights to a maximum of three in instances 
where there are not three consecutive scheduled flights in a week. This 
will allow the Postal Service to meet their service requirements to the 
communities within Alaska, while decreasing the unnecessary expenses 
associated with excessive scheduled flights.
  The language included within the appropriations bill will give 
flexibility to the carriers and the Postal Service by allowing existing 
mainline carriers to temporarily subcontract mail shipments to another 
existing mainline carrier when additional or substitute aircraft are 
needed to meet the service needs of the Postal Service or the carrier's 
operating requirements. However, the providing carrier will still 
remain responsible for the mail from the origin to the destination.
  Clarification of the definition of Existing Mainline Carrier is also 
provided in order to close a loophole that may have allowed carriers 
who are not qualified as existing mainline carriers to become one 
because they operated under a codeshare with an existing mainline 
carrier. Air Carriers who were not, on January 1, 2001, a Part 121 
carrier qualified to provide mainline non-priority bypass mail service 
and actually engaged in the carriage of non-priority bypass mail 
tendered to it under its own designator code should not be defined as 
an existing mainline carrier.
  Finally, the provision specifically exempts non-bypass mail from the 
dispatch requirements of the non-priority bypass mail system. It is 
intended to give the Postal Service the ability to dispatch postal 
products, other than non-priority bypass mail, as their service needs 
require.
  Alaska Trails: The bill includes $4 million for the State of Alaska 
to develop statewide trails initiative. The

[[Page 25872]]

funds are available to issue grants, on a competitive basis, for the 
development and reconstruction of trails within Alaska. The State of 
Alaska should take no more than one percent of the funds to cover any 
overhead costs. The eligible trails include: Arctic Valley trails, 
Chugach Forest Russian River, Girdwood trails, Hatcher Pass trails, 
Iditarod trail, Juneau Nordic trails, Juneau Thunder Trail, Ketchikan 
Lewis Reef Road, Kodiak trails, Matanuska Susitna Gorsuch trails, 
Perseverance trail repairs, Russian River access road, Sitka 
Trailworks, Sitka World War II causeway, State of Alaska wildlife 
trails, Wrangell St. Elias Trails.
  Transportation and Community and System Preservation Pilot Program: 
The conferees have agreed to provide $6,000,000 to the Matanuska 
Susitna Borough. Within the amounts made available to the Matanuska 
Susitna Borough, the conferees expect that $2,000,000 will be made 
available to Matanuska Susitna Gorsuch trails.
  Denali Docks: I am pleased the Transportation/Treasury subsection of 
the omnibus bill authorizes and appropriates $10 million to a new 
program for the Denali Commission which focuses on docks and the 
development of waterfront projects. There is no Federal Government 
program which funds docks for communities without roads. Through the 
newly authorized program within the Denali Commission, the rural 
communities of Alaska will be able to create, replace or repair the 
damaged docks within the following locations: Homer, Ugashik, Hoonah, 
Bristol Bay Borough, Old Harbor, Sitka, Coffman Cove, Perryville, 
Illiamna Lake, Auk Bay, Seldovia, Whittier, Cordova, Gustavus, and 
Kenai Peninsula Borough.
  General Service Administration: I am pleased the conferees once again 
included money for the University of Alaska to continue planning for 
the State's 50th anniversary celebration including preserving pioneer 
papers throughout the state.
  On another matter, the conferees urge the Service to work with the 
Alaska Railroad to effect a land transfer that will be mutually 
beneficial to both parties, and hope the national office will make the 
resources available for that purpose.
  National Science Foundation: The conferees agreed to retain report 
language urging the administration to request funds to replace the 
Alpha Helix, one of its premier research vessels that has seen better 
days. But this is not the first year such language has been included. 
Some believe the Service has no intention of ever seeking the necessary 
funds. As I assume the role as chairman of the Senate Commerce 
Committee overseeing NSF, I want to put the agency on notice that 
Congress expects the administration to begin seeking the necessary 
funds to replace the vessel. If funds are provided and the vessel is 
built, it should be homeported in Seward, AK, its current home. But if 
the administration fails to request the necessary funds when the fiscal 
year 2006 budget is submitted, Congress expects the agency to develop 
an interim solution by leasing a research vessel that can operate out 
of Seward to conduct research in Alaska.
  TAPS Quality Bank: As part of the fiscal year 2005 Consolidated 
Appropriations conference report I included legislative language that 
expresses Congress' concerns over a long standing regulatory and 
judicial dispute concerning the Trans Alaska Pipeline, TAPS. This 
report language is intended to provide guidance to the Federal Energy 
Regulatory Commission as it evaluates the August 31, 2004 Initial 
Decision by the Administrative Law Judge, ALJ. This language does not 
have any effect on agreements reached between the parties. It is solely 
intended to address those issues still in dispute. Nor does this 
language have any effect on any other regulatory or judicial proceeding 
currently pending before the ALJ or the Commission, and should not be 
considered in evaluating any future rate cases.
  Congress expects the Commission to carefully consider the specific 
equities of this case to prevent special hardship, inequity, or an 
unfair distribution of burdens to any party, evaluate all of the 
administrative law judge's decisions regarding the retroactive 
application of the modified Resid valuation, and to assess the equity 
of assigning retroactivity. The issue of retroactivity and its 
application in this case is problematic given the lack of clear 
Congressional action on the subject and the negative impacts an eleven 
year retroactive period will have on domestic refiners in the State of 
Alaska.
  In addition, it is the expectation of Congress that this matter will 
be resolved in a fair and equitable manner which is necessary to limit 
business uncertainty associated with the use of the Trans Alaska 
Pipeline System, and to ensure continued domestic refinery activity in 
order to protect national fuel supplies. Ultimately, it is my hope that 
the parties in this case will be able to reach a settlement and finally 
end 15 years of litigation, and we appeal to the parties to work 
towards this end.

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