[Congressional Record (Bound Edition), Volume 151 (2005), Part 3]
[Senate]
[Pages 3186-3207]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. SPECTER (for himself, Mr. Santorum, and Mr. Leahy):
  S. 491. A bill to amend the Omnibus Crime Control and Safe Streets 
Act of 1968 to expand the definition of firefighter to include 
apprentices and trainees, regardless of age or duty limitations; to the 
Committee on the Judiciary.
  Mr. SPECTER. Mr. President, I seek recognition today to introduce the 
Christopher Kangas Fallen Firefighter Apprentice Act, a bill designed 
to correct a flaw in the current definition of ``firefighter'' under 
the Public Safety Officer Benefits Act.
  On May 4, 2002, 14-year-old Christopher Kangas was struck by a car 
and killed while he was riding his bicycle in Brookhaven, PA. The local 
authorities later confirmed that Christopher was out on his bike that 
day for an important reason: Chris Kangas was a junior firefighter, and 
he was responding to a fire emergency.
  Under Pennsylvania law, 14- and 15-year-olds such as Christopher are 
permitted to serve as volunteer junior firefighters. While they are not 
allowed to operate heavy machinery or enter burning buildings, the law 
permits them to fill a number of important support roles, such as 
providing first aid. In addition, the junior firefighter program is an 
important recruitment tool for fire stations throughout the 
Commonwealth. In fact, prior to his death Christopher had received 58 
hours of training that would have served him well when he graduated 
from the junior program.
  It is clear to me that Christopher Kangas was a firefighter killed in 
the line of duty. Were it not for his status as a junior firefighter 
and his prompt response to a fire alarm, Christopher would still be 
alive today. Indeed, the Brookhaven Fire Department, Brookhaven 
Borough, and the Commonwealth of Pennsylvania have all recognized 
Christopher as a fallen public safety officer and provided the 
appropriate death benefits to his family.
  Yet, while those closest to the tragedy have recognized Christopher 
as a fallen firefighter, the Federal Government has not. The U.S. 
Department of Justice (DOJ) determined that Christopher Kangas was not 
eligible for benefits because he was not acting within a narrow range 
of duties at the time of his death that are the measured criteria to be 
considered a ``firefighter,'' and therefore, was not a ``public safety 
officer'' for purposes of the Public Safety Officer Benefits Act. In 
order to be eligible for benefits under the Public Safety Officer 
Benefits Act, an officer's death must be considered the ``direct and 
proximate result of a personal injury sustained in the line of duty.'' 
Although the United States Code includes firefighters in the definition 
of ``public safety officer'' and specifies a firefighter as ``an 
individual serving as an officially-recognized or designated member of 
a legally-organized volunteer fire department;'' it offers no 
definition of ``line of duty''. DOJ had to defer to an arbitrarily 
narrow definition of ``line of duty,'' as described in the Code of 
Federal Regulations that restricts activities to the ``suppression of 
fires.'' DOJ decided that the only people who qualify as firefighters 
are those who play the starring role of operating a hose on a ladder or 
entering a burning building. According to this interpretation, those, 
such as junior firefighters, who play the essential supporting roles of 
directing traffic, performing first aid, or dispatching fire vehicles 
do not contribute to the act of suppressing the fire.
  Any firefighter will tell you that there are many important roles to 
play

[[Page 3187]]

in fighting a fire beyond operating the hoses and ladders. Firefighting 
is a team effort, and everyone in the Brookhaven Fire Department viewed 
young Christopher as a full member of their team.
  As a result of this DOJ determination, Christopher's family will not 
receive a $267,000 Federal line-of-duty benefit. In addition, 
Christopher will be barred from taking his rightful place on the 
National Fallen Firefighters Memorial in Emmitsburg, MD. For a young 
man who dreamed of being a firefighter and gave his life rushing to a 
fire, keeping him off of the memorial is a grave injustice.
  The bill I introduce today will ensure that the Federal Government 
will recognize Christopher Kangas and others like him as firefighters. 
The bill clarifies that all firefighters will he recognized as such 
``regardless of age, status as an apprentice or trainee, or duty 
restrictions imposed because of age or status as an apprentice or 
trainee.'' The bill applies retroactively back to May 4, 2002 so that 
Christopher, as well as three others, can benefit from it.
  I urge my colleagues to support this important legislation.
                                 ______
                                 
      By Mr. FRIST (for himself, Mr. Reid, and Mr. Lugar):
  S. 492. A bill to make access to safe water and sanitation for 
developing countries a specific policy objective of the United States 
foreign assistance programs, and for other purposes; to the Committee 
on Foreign Relations.
  Mr. FRIST. Mr. President, 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. 492

       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 ``Safe Water: Currency for 
     Peace Act of 2005''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Water-related diseases are a human tragedy, killing and 
     debilitating millions of people annually, preventing millions 
     of people from leading healthy lives, and undermining 
     development efforts.
       (2) Providing safe supplies of water, and sanitation and 
     hygiene improvements would save millions of lives by reducing 
     the prevalence of water-borne diseases, water-based diseases, 
     water-privation diseases, and water-related vector diseases.
       (3) An estimated 1,800,000 people die of diarrhoeal 
     diseases every year. Ninety percent of these people are 
     children under the age of five who live in developing 
     countries. Simple household and personal hygiene measures, 
     such as household water treatment and safe storage and 
     effective hand washing with soap, reduce the burden of 
     diarrhoeal disease by more than 40 percent.
       (4) According to the World Health Organization, 88 percent 
     of diarrhoeal disease can be attributed to unsafe water 
     supply, and inadequate sanitation and hygiene.
       (5) Around the world, more than 150,000,000 people are 
     threatened by blindness caused by trachoma, a disease that is 
     spread through poor hygiene and sanitation, and aggravated by 
     inadequate water supply.
       (6) Chronic intestinal helminth infections are a leading 
     source of global morbidity, including cognitive impairment 
     and anemia for hundred of millions of children and adults. 
     Access to safe water and sanitation and better hygiene 
     practices can greatly reduce the number of these infections.
       (7) Schistosomiasis is a disease that affects 200,000,000 
     people, 20,000,000 of whom suffer serious consequences, 
     including liver and intestinal damage. Improved water 
     resource management to reduce infestation of surface water, 
     improved sanitation and hygiene, and deworming treatment can 
     dramatically reduce this burden.
       (8) In 2002, 2,600,000,000 people lacked access to improved 
     sanitation. In sub-Saharan Africa, only 36 percent of the 
     population has access to improved sanitation. In developing 
     countries, only 31 percent of the population in rural areas 
     has access to improved sanitation.
       (9) Improved management of water resources can contribute 
     to comprehensive strategies for controlling mosquito 
     populations associated with life-threatening vector-borne 
     diseases in developing countries, especially malaria, which 
     kills more than 1,000,000 people each year, most of whom are 
     children.
       (10) Natural disasters such as floods and droughts threaten 
     people's health. Floods contaminate drinking-water systems 
     with industrial waste refuse, sewage, and human and animal 
     excreta. Droughts exacerbate malnutrition and limit access to 
     drinking water supplies. Sound water resource management can 
     mitigate the impact of such natural disasters.
       (11) The United Nations Population Fund report entitled 
     ``Water: A Critical Resource'' stated that ``Nearly 500 
     million people [suffer from] water stress or serious water 
     scarcity. Under current trends, two-thirds of the world's 
     population may be subject to moderate to high water stress by 
     2025''. Effective water management and equitable allocation 
     of scarce water supplies for all uses will become 
     increasingly important for meeting both human and ecosystem 
     water needs in the future.
       (12) The participants in the World Summit on Sustainable 
     Development, held in Johannesburg, South Africa, in 2002, 
     agreed to the Plan of Implementation of the World Summit on 
     Sustainable Development which included an agreement to work 
     to reduce by one-half ``the proportion of people who are 
     unable to reach or afford safe drinking water,'' and ``the 
     proportion of people without access to basic sanitation'' by 
     2015.
       (13) At the World Summit on Sustainable Development, 
     building on the U.S.-Japan Partnership for Security and 
     Prosperity announced in June 2001 by President Bush and Prime 
     Minister Koizumi, the United States and Japan announced a 
     Clean Water for People Initiative to cooperate in providing 
     safe water and sanitation to the world's poor, improve 
     watershed management, and increase the productivity of water.
       (14) At the World Summit on Sustainable Development, the 
     United States announced the Water for the Poor Initiative 
     which committed the United States to provide $970,000,000 
     over 3 years to increase access to safe water and sanitation 
     services, improve watershed management, and increase the 
     productivity of water. During fiscal year 2004, the United 
     States provided an estimated $817,000,000 in assistance to 
     the Water for the Poor Initiative, including funds made 
     available for reconstruction activities in Iraq, of which 
     $388,000,000 was made available for safe drinking water and 
     sanitation programs.
       (15) During fiscal year 2004, the United States provided 
     $49,000,000 in assistance for activities to provide safe 
     drinking water and sanitation in sub-Saharan Africa, an 
     amount that is equal to 6.5 percent of total United States 
     foreign assistance provided for all water activities in the 
     Water for the Poor Initiative.
       (16) At the 2003 Summit of the Group of Eight in Evian, 
     France, the members of the Group of Eight produced a plan 
     entitled ``Water: A G8 Action Plan'' that stated that a lack 
     of water can undermine human security. The Action Plan 
     committed the members of the Group of Eight to playing a more 
     active role in international efforts to provide safe water 
     and sanitation to the world's poor by mobilizing domestic 
     resources in developing countries for water infrastructure 
     financing through the development and strengthening of local 
     capital markets and financial institutions, particularly by 
     establishing, where appropriate, at the national and local 
     levels, revolving funds that offer local currency financings, 
     which allow communities to finance capital-intensive water 
     infrastructure projects over an affordable period of time at 
     competitive rates.
       (17) The G8 Action Plan also committed members of the Group 
     of Eight to provide risk mitigation mechanisms for such 
     revolving funds and to provide technical assistance for the 
     development of efficient local financial markets and building 
     municipal government capacity to design and implement 
     financially viable projects and provide, as appropriate, 
     targeted subsidies for the poorest communities that cannot 
     fully service market rate debt.
       (18) The United Nations General Assembly Resolution 58/217 
     of February 9, 2004, proclaimed ``the period from 2005 to 
     2015 the International Decade for Action, `Water for Life', 
     to commence on World Water Day, 22 March 2005'' for the 
     purpose of increasing the focus of the international 
     community on water-related issues at all levels and on the 
     implementation of water-related programs and projects.

     SEC. 3. WATER FOR HEALTH AND DEVELOPMENT.

       (a) In General.--Part I of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2151 et seq.) is amended by inserting after 
     section 104C the following new section:

     ``SEC. 104D. WATER FOR HEALTH AND DEVELOPMENT.

       ``(a) Finding.--Congress makes the following findings:
       ``(1) Access to safe water and sanitation and improved 
     hygiene are significant factors in controlling the spread of 
     disease in the developing world and positively affecting 
     economic development.
       ``(2) The health of children and other vulnerable rural and 
     urban populations in developing countries, especially sub-
     Saharan Africa and South Asia, is threatened by a lack of 
     adequate safe water, sanitation, and hygiene.
       ``(3) Efforts to meet United States foreign assistance 
     objectives, including those related to agriculture, the human 
     immunodeficiency virus (HIV) and acquired immune deficiency 
     syndrome (AIDS), and the environment will be advanced by 
     improving access to safe water and sanitation and promoting 
     sound water management throughout the world.

[[Page 3188]]

       ``(4) Developing sustainable financing mechanisms, 
     including private sector financing, is critical to the long-
     term sustainability of improved water supply, sanitation, and 
     hygiene.
       ``(5) The annual level of investment needed to meet the 
     water and sanitation needs of developing countries far 
     exceeds the amount of Official Development Assistance (ODA) 
     and spending by governments of developing countries, so 
     attracting greater public and private investment is 
     essential.
       ``(6) Long-term sustainability in the provision of access 
     to safe water and sanitation and in the maintenance of water 
     and sanitation facilities requires a legal and regulatory 
     environment conducive to private sector investment and 
     private sector participation in the delivery of water and 
     sanitation services.
       ``(7) The absence of robust domestic financial markets and 
     sources for long-term financing are a major impediment to the 
     development of water and sanitation projects in developing 
     countries.
       ``(8) At the 2003 Summit of the Group of Eight in Evian, 
     France, the members of the Group of Eight produced a plan 
     entitled `Water: A G8 Action Plan' that contemplated the 
     promotion of domestic revolving funds to provide local 
     currency financing for capital-intensive water infrastructure 
     projects. Innovative financing mechanisms such as revolving 
     funds and pooled-financings have been effective vehicles for 
     mobilizing domestic savings for investments in water and 
     sanitation both in the United States and in some developing 
     countries. These mechanisms can serve as a catalyst for 
     greater investment in water and sanitation projects by 
     villages, small towns, and municipalities.
       ``(9) The G8 Action Plan also committed members of the 
     Group of Eight to improving coordination and cooperation 
     between donors, and such improved coordination and 
     cooperation is essential for enlarging the beneficial impact 
     of donor initiatives.
       ``(b) Policy.--It is a major objective of United States 
     foreign assistance--
       ``(1) to promote good health and economic development by 
     providing assistance to expand access to safe water and 
     sanitation, promote sound water management, and improve 
     hygiene for people around the world; and
       ``(2) to promote, to the maximum extent practicable and 
     appropriate, long-term sustainability in the provision of 
     access to safe water and sanitation by encouraging private 
     investment in water and sanitation infrastructure and 
     services.
       ``(c) Authorization.--
       ``(1) In general.--To carry out the policy set out in 
     subsection (b), the President is authorized to furnish 
     assistance, including health information and education, to 
     advance good health and promote economic development by 
     improving the safety of water supplies, expanding access to 
     safe water and sanitation, promoting sound water management, 
     and promoting better hygiene.
       ``(2) Local currency.--The President may use payments made 
     in local currencies under an agreement made under title I of 
     the Agricultural Trade Development and Assistance Act of 1954 
     (7 U.S.C. 1701 et seq.) to provide assistance under this 
     section, including assistance for activities related to 
     drilling or maintaining wells.''.
       (b) Conforming Amendment.--Section 104(c) of the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1704(c)) is amended by adding at the end the following 
     new paragraph:
       ``(9) Safe water.--To provide assistance under section 104D 
     of the Foreign Assistance Act of 1961 to advance good health 
     and promote economic development by improving the safety of 
     water supplies, including programs related to drilling or 
     maintaining wells.''.

     SEC. 4. PILOT PROGRAM FOR WATER SUSTAINABILITY INFRASTRUCTURE 
                   DEVELOPMENT AND CAPACITY BUILDING.

       (a) In General.--Section 104D of the Foreign Assistance Act 
     of 1961, as added by section 3, is amended by adding at the 
     end the following new subsection:
       ``(d) Pilot Clean Water Sustainability Infrastructure 
     Development Program.--
       ``(1) Authority for pilot program.--In order to study the 
     feasibility and desirability of a program to assist countries 
     that have a high proportion of the population that is 
     susceptible to water-borne illnesses as a result of a lack of 
     basic infrastructure for clean water and sanitation, the 
     President, in close coordination with the Administrator of 
     the United States Agency for International Development and 
     the Director of the Overseas Private Investment Corporation, 
     is authorized to establish a 5-year pilot program under which 
     the President may--
       ``(A) provide for the issuance of investment insurance, 
     investment guarantees, or loan guarantees, provide for direct 
     investment or investment encouragement, or carry out special 
     projects and programs for eligible investors to assist such 
     countries in the development of safe drinking water and 
     sanitation infrastructure programs; and
       ``(B) provide assistance to support the activities 
     described in subparagraphs (A) through (D) of paragraph (2) 
     for the purposes of--
       ``(i) carrying out the policy set out in subsection (b); 
     and
       ``(ii) maximizing the effectiveness of assistance provided 
     under subparagraph (A).
       ``(2) Activities supported.--Assistance provided to a 
     country under paragraph (1)(B) shall be used to--
       ``(A) assess the water development needs of such country;
       ``(B) design projects to address such water development 
     needs;
       ``(C) develop the capacity of individuals and institutions 
     in such country to carry out and maintain water development 
     programs through training, joint work projects, and 
     educational programs; and
       ``(D) provide long-term monitoring of water development 
     programs.
       ``(3) Geographic limitation.--The President may only 
     provide assistance under the pilot program under paragraph 
     (1) to a country based on consultation with Congress.
       ``(4) Additional criteria.--In making determinations of 
     eligibility under this subsection, the President should give 
     preferential consideration to projects sponsored by or 
     significantly involving United States small businesses or 
     cooperatives.
       ``(5) Implementation.--To the extent provided for in 
     advance in appropriations Acts, the President is authorized 
     to create such legal mechanisms as may be necessary for the 
     implementation of its authorities under this subsection. Such 
     legal mechanisms may be deemed non-Federal borrowers for 
     purposes of the Federal Credit Reform Act of 1990 (2 U.S.C. 
     661 et seq.).
       ``(6) Loan guarantees.--Notwithstanding any other provision 
     of law, the President is authorized to provide assistance 
     under the pilot program under paragraph (1) in the form of 
     partial loan guarantees, provided that such a loan guarantee 
     may not exceed 75 percent of the total amount of the loan.
       ``(7) Coordination.--The President is authorized to 
     coordinate the activities of each agency or department of the 
     United States to provide to a country assistance for an 
     activity described in subparagraphs (A) through (D) of 
     paragraph (2).
       ``(8) Federal agency responsibilities.--Under the direction 
     of the President, the head of each agency or department of 
     the United States is authorized to assign, detail, or 
     otherwise make available to the Department of State any 
     officer or employee of such agency or department who 
     possesses expertise related to an activity described in 
     subparagraphs (A) through (D) of paragraph (2).
       ``(9) Report to congress.--The President shall annually 
     prepare and submit to the Committee on Appropriations, the 
     Committee on Foreign Relations, and the Committee on Health, 
     Education, Labor, and Pensions of the Senate and the 
     Committee on Appropriations, the Committee on International 
     Relations, and the Committee on Energy and Commerce of the 
     House of Representatives a report concerning the 
     implementation of the pilot program under this subsection.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be effective during the 5-year period beginning on the 
     date of enactment of this Act.

     SEC. 5. SAFE WATER STRATEGY.

       (a) Requirement for Strategy.--The Secretary of State, in 
     close coordination with the Administrator of the United 
     States Agency for International Development and in 
     consultation with other appropriate Federal agencies, 
     appropriate international organizations, foreign governments, 
     United States nongovernmental organizations, and other 
     appropriate entities, shall develop and implement a strategy 
     to further the United States foreign assistance objective to 
     promote economic development by promoting good health through 
     the provision of assistance to expand access to safe water 
     and sanitation, to promote sound water management, and to 
     improve hygiene for people around the world.
       (b) Content.--The strategy required by subsection (a) shall 
     include--
       (1) an assessment of the activities that have been carried 
     out, or that are planned to be carried out, by the United 
     States to improve hygiene or access to safe water and 
     sanitation by underserved rural or urban poor populations, 
     the countries of sub-Saharan Africa, or in countries that 
     receive assistance from the United States Agency for 
     International Development;
       (2) methods to achieve long-term sustainability in the 
     provision of access to safe water and sanitation, the 
     maintenance of water and sanitation facilities, and effective 
     promotion of improved hygiene, in the context of appropriate 
     financial, municipal, health, and water management systems;
       (3) methods to use United States assistance to promote 
     community-based approaches, including the involvement of 
     civil society, to further the objectives described in 
     subsection (a);
       (4) methods to mobilize and leverage the financial, 
     technical, and managerial expertise of businesses, 
     governments, nongovernmental, and civil society in the form 
     of public-private alliances such as the Global Development 
     Alliances of the Agency which encourage innovation and 
     effective solutions for improving sustainable access to safe 
     water and sanitation;
       (5) goals to further the objectives described in subsection 
     (a) and methods to measure whether progress is being made to 
     meet such goals, including indicators to measure

[[Page 3189]]

     progress and procedures to regularly evaluate and monitor 
     progress;
       (6) assessments of the challenges and obstacles that impede 
     the provision of access to safe water and sanitation, as well 
     as the improvement of hygiene practices, critical in 
     developing countries;
       (7) assessments of how access to safe water, sanitation, 
     and hygiene programs, as well as water resource programs, 
     effectively support the goal of combating the human 
     immunodeficiency virus (HIV) and the acquired immune 
     deficiency syndrome (AIDS);
       (8) assessments of the roles that other countries or 
     entities, including international organizations, could play 
     in furthering such objective and mechanisms to establish 
     coordination among the United States, foreign countries, and 
     other entities;
       (9) assessments of the level of resources that are needed 
     each year to further such objective; and
       (10) methods to coordinate and integrate programs of the 
     United States to further such objective with other United 
     States foreign assistance programs.
       (c) Reports to Congress.--
       (1) Initial report.--Not later than 180 days after the date 
     of enactment of this Act, the President shall submit to 
     Congress a report that describes the strategy required by 
     subsection (a).
       (2) Report.--Not less than once every 2 years after the 
     submission of the initial report under paragraph (1), the 
     President shall submit to Congress a report on the status of 
     the implementation of the strategy and progress made in 
     achieving the objective described in subsection (a).

     SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     for each of the fiscal years 2006 through 2011 such sums as 
     may be necessary to carry out this Act and the amendments 
     made by this Act.
       (b) Other Amounts.--Amounts appropriated pursuant to the 
     authorization of appropriations in subsection (a) shall be in 
     addition to the amounts otherwise available to carry out this 
     Act and the amendments made by this Act.
                                 ______
                                 
      By Mr. GRASSLEY (for himself, Mr. Cochran, Mr. Lott, and Mr. 
        Bunning):
  S. 493. A bill to amend title II of the Higher Education Act of 1965 
to increase teacher familiarity with the educational needs of gifted 
and talented students, and for other purposes; to the Committee on 
Health, Education, Labor, and Pensions.
  Mr. GRASSLEY. Mr. President, I am reintroducing a bill I proposed in 
the last Congress to help prepare new teachers to recognize and meet 
the needs of gifted and talented students. According to the federally 
funded National Research Center on the Gifted and Talented, the large 
majority of gifted and talented students spend at least 80 percent of 
their time in a regular education classroom. Of course, gifted students 
are not gifted only 20 percent of the time. They are gifted all the 
time. Unfortunately, the lack of teacher preparation means that gifted 
students are not being challenged during much of the time they spend in 
the classroom. Their educational needs are not being met.
  Unfortunately, there are many misconceptions about the needs of 
gifted children. You might say, ``Why should we worry about these 
children? They are the smart ones that the teacher doesn't have to 
spend so much time on.'' First of all, I'm not talking about your 
average straight A student who maybe learns the material easily, but 
much the same way as other students in the classroom. What makes a 
child gifted and talented is not how well the child does in school, but 
how he or she learns. A straight A student may or may not be gifted and 
a gifted student may not always get good grades in school. Gifted and 
talented children actually have a different way of looking at the 
world. They tend to have distinct approaches to learning and 
interacting socially, and they frequently learn at a different pace, 
and to different depths, than others their age. The bottom line is that 
gifted and talented children have unique learning needs that need to be 
met in order for them to achieve to their potential.
  To illustrate this point, I would like to remind the Senate of an 
example I first cited two years ago while speaking on another piece of 
legislation related to gifted and talented students. It concerns a 
young elementary school student from Iowa City named Jose. Jose was not 
putting much effort into his schoolwork and was getting bad grades. He 
was a good kid but he also had a tendency to act up in class. He got 
along with his classmates, but didn't have many friends. Jose's teacher 
was frustrated and couldn't figure out what to do with him. Still, 
Jose's parents saw in him a real hunger for learning and had his IQ 
tested over the summer. It turns out that what the teacher saw as 
behavior problems or a lack of work ethic were really symptoms of a 
gifted student who was not being properly challenged. Jose started 
leaving his regular classroom a couple of times a week to work with a 
teacher who was trained in meeting the needs of gifted students. As a 
result of the added stimulation he received, Jose started to enjoy 
school more, made friends with his gifted peers, and began to succeed 
with his regular school work.
  Jose was fortunate that his parents were so perceptive and were able 
to have him assessed privately. However, not all parents are in a 
position to recognize the signs of giftedness or to advocate for their 
child's needs. Even in schools where there are active gifted and 
talented programs, many students go unidentified. Moreover, even with 
pull-out programs like the one I described that supplement the 
classroom experience and other strategies like grade skipping, it is 
inevitable that many gifted students will spend much of their time in a 
regular classroom with non-gifted students of the same age but far 
different ability levels. This is not necessarily a bad thing, but it 
means that all classroom teachers should have at least a basic 
knowledge about how to recognize and meet the needs of gifted and 
talented students in their classrooms. However, a national survey of 
third and fourth grade teachers by the National Research Center on the 
Gifted and Talented found that 61 percent of teachers had no training 
whatsoever in teaching highly able students.
  Only one State currently requires regular classroom teachers to have 
coursework in gifted education. Some of the techniques used in 
classrooms to accommodate gifted kids include differentiated 
curriculum, cluster grouping, and accelerated learning. The time to 
make sure teachers have the necessary knowledge is when prospective 
teachers are in their pre-service teacher training programs. If 
teachers aren't exposed to information and strategies to meet the needs 
of gifted students in their pre-service training, they may never 
acquire the necessary knowledge and skills. With the Higher Education 
Act due for reauthorization, this is the perfect opportunity to 
encourage schools of education and States to take a greater look at how 
they can improve teacher preparation programs to integrate instruction 
on the unique needs of gifted learners.
  Title II of the Higher Education Act already contains grants designed 
to enhance the quality of teacher preparation programs. My bill would 
simply add allowable uses to these existing grants to provide an 
incentive for states and teacher training programs to incorporate the 
needs of gifted and talented students into teacher preparation and 
licensure requirements. I should point out that this change would not 
cost the taxpayers any additional money.
  Under current law, Title II State grants are awarded directly to 
States and are to be used to reform State teacher preparation 
requirements. The law lists seven potential reforms under the allowable 
uses for grant funds. The first three allowable uses include: 
strengthening state requirements for teacher preparation programs to 
ensure teachers are highly competent in their respective academic 
content areas, reforming certification and licensure requirements with 
respect to competency in content areas, and providing alternatives to 
traditional teacher preparation programs. My legislation would add 
another allowable use, referencing these three reforms, to encourage 
states to incorporate a focus on the learning needs of gifted and 
talented students into reforms of state requirements for teacher 
preparation programs, reforms of state certification and licensure 
requirements, or new alternative teacher preparation programs. In 
addition, my bill would add a new allowable use so that States

[[Page 3190]]

could use grant funds to create or expand new-teacher mentoring 
programs on the needs of gifted and talented students. This way, new 
teachers could learn from veteran teachers about how to identify 
classroom indicators of giftedness and provide appropriate instruction 
to gifted students.
  My bill would also add language to the Partnership Grants, which 
provide funds to partnerships among teacher preparation institutions, 
school of arts and sciences, and high-need school districts to 
strengthen new teacher education. These grants come with three required 
uses, including reforming teacher preparation programs to ensure 
teachers are highly competent in academic content areas, providing pre-
service clinical experience, and creating opportunities for enhanced 
and ongoing professional development. One allowable use for which a 
partnership may use funds is preparing teachers to work with diverse 
populations, including individuals with disabilities and limited 
English proficient individuals. To this section, my legislation would 
add gifted and talented students. Recognizing that every teacher could 
have gifted students in his or her classroom, my bill would also add a 
new allowable use so that teacher preparation programs could use the 
funds to infuse teacher coursework with units on the characteristics of 
high-ability learners. In other words, the idea is not to require 
additional courses, but rather to discuss how to accommodate for the 
needs of gifted students throughout the teacher preparation curriculum 
when new teachers are learning how to present lessons.
  Again, my bill does not create a new grant program and doesn't cost 
any more money. It simply provides an incentive through existing grant 
programs to encourage States and teacher preparation programs to make 
sure that new teachers have the skills they will need to identify and 
meet the unique needs of the gifted and talented students who will be 
in their classrooms. I think we all recognize how important a quality 
teacher can be in helping a student achieve. This is no less true with 
gifted and talented students. Having a teacher that is equipped to meet 
the unique needs of gifted students can mean the difference between a 
child hating school and a child loving school; a child falling behind, 
and a child succeeding beyond all expectations. When a gifted child is 
left behind, the loss of human potential is doubly tragic. Gifted and 
talented children are a national resource that we must nurture now for 
our nation's future. This modest step could reap rewards for 
generations to come. I urge my colleagues to join me in this investment 
in our future.
                                 ______
                                 
      By Mr. AKAKA (for himself, Ms. Collins, Mr. Grassley, Mr. Levin, 
        Mr. Leahy, Mr. Voinovich, Mr. Lieberman, Mr. Coleman, Mr. 
        Durbin, Mr. Dayton, Mr. Pryor, Mr. Johnson, Mr. Lautenberg, and 
        Mr. Carper):
  S. 494. A bill to amend chapter 23 of title 5, United States Code, to 
clarify the disclosures of information protected from prohibited 
personnel practices, require a statement in nondisclosure policies, 
forms, and agreements that such policies, forms, and agreements conform 
with certain disclosure protections, provide certain authority for the 
Special Counsel, and for other purposes; to the Committee on Homeland 
Security and Governmental Affairs.
  Mr. AKAKA. Mr. President. Today I rise to reintroduce the Federal 
Employee Protection of Disclosures Act, which was unanimously reported 
out of the Senate Homeland Security and Governmental Affairs Committee 
last year with strong bipartisan support. I am joined again in this 
effort by Senator Collins, chairman of the committee, whose focus on 
this issue and willingness to work with me in developing this 
legislation demonstrates how important it is to ensure that Federal 
employees are protected when they disclose government waste, fraud, and 
abuse. I am pleased to be joined by our committee's ranking member, 
Senator Lieberman.
  Once again, I am proud to have the support of Senator Charles 
Grassley and Senator Carl Levin, both of whom are longstanding 
advocates of Federal whistleblowers. My colleagues from Iowa and 
Michigan championed the 1989 Whistleblower Protection Act and have 
supported my legislation since 2001. Their support, along with the 
strong bipartisan support of Senators Leahy, Voinovich, Coleman, 
Durbin, Dayton, Pryor, Johnson, Lautenberg, and Carper demonstrates the 
importance of this good government legislation.
  Our legislation will strengthen the protections given to Federal 
whistleblowers and encourage employees to come forward to disclose 
government waste, fraud, and abuse. Providing meaningful protection to 
whistleblowers fosters an environment that promotes the disclosure of 
government wrongdoing and mismanagement that may adversely affect the 
American public. If Federal employees fear reprisal for blowing the 
whistle, we fail to protect the whistleblower, taxpayers, and, in 
notable instances, national security and our public health.
  The most recent example is the disclosure by Dr. David Graham of the 
Food and Drug Administration, FDA, who exposed problems at the FDA 
regarding the safety of new pharmaceuticals. By revealing the threat 
posed to public health and the safety of pharmaceuticals currently on 
the market, as well as the organizational structure of the Center for 
Drug Evaluation and Research, CDER, and CDER's internal conflict of 
interest in evaluating the safety of drugs both pre- and post-
marketing, Dr. Graham risked his career to report hazards to our public 
health.
  As a direct result of Dr. Graham's decision to speak publicly, 
Americans are now more aware of the potential risks of various 
pharmaceuticals and government leaders are seeking ways to increase 
transparency of the oversight of new medications. Two weeks ago, the 
FDA announced the creation of a new Drug Safety Oversight Board to 
monitor the safety of prescription and over-the-counter drugs on the 
market more effectively. This new board is aimed at eliminating the 
conflict of interest found under the current CDER structure as 
disclosed by Dr. Graham.
  Other examples of whistle blowers who uncovered government 
mismanagement and threats to public safety include: Ms. Colleen Rowley 
who disclosed institutional problems at the Federal Bureau of 
Investigation prior to 2001 which affected national security, Mr. 
Richard Foster, who sought to disclose the actual cost of pending 
Medicare legislation to Congress, and Border Patrol Agents Mark Hall 
and Bob Lindemann, who revealed security lapses at our northern border 
immediately after September 11, 2001.
  In spite of the positive changes resulting from their disclosures, we 
are concerned that the very public struggles these individuals have 
endured after alerting Americans to waste, fraud, abuse, and security 
and health violations in the Federal Government may discourage others 
from coming forward. The root of these struggles lies in part with 
problems with the current legal structure and interpretation of the 
Whistleblower Protection Act. As a result of recent court decisions, 
legitimate whistleblowers have been denied adequate protection from 
retaliatory I practices. In fact, Federal whistleblowers have prevailed 
on the merits of their claims before the Federal Circuit Court of 
Appeals, which has sole jurisdiction over Federal employee 
whistleblower appeals, only once since 1994.
  To address these issues, our legislation would clarify congressional 
intent regarding the scope of protection provided to whistleblowers; 
provide for an independent determination as to whether a whistleblower 
was retaliated against by the revocation of his or her security 
clearance; establish a pilot program to suspend the Federal Circuit 
Court of Appeals' monopoly on Federal employee whistleblower cases for 
a period of five years; and provide the Office of Special Counsel, 
which is charged with representing the interests of Federal 
whistleblowers, the authority to file amicus briefs with federal courts 
in support of whistleblowers.

[[Page 3191]]

  Several of the provisions in the legislation reflect our efforts to 
address concerns raised by the Justice Department. While the Department 
still has objections to the intent of the legislation, partially 
because of its role in representing the interests of the alleged 
retaliatory agencies, I will continue to work with the Department. I am 
optimistic that we can reach an agreement on this good government 
measure in the near future.
  Congress has a duty to provide strong and meaningful protections for 
Federal whistleblowers. Only when Federal employees are confident that 
they will not face retaliation will they feel comfortable coming 
forward to disclose information that can be used to improve government 
operations, our national security, and the health of our citizens. I 
look forward to working with my colleagues to make this goal a reality.
  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. 494

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

     SECTION 1. PROTECTION OF CERTAIN DISCLOSURES OF INFORMATION 
                   BY FEDERAL EMPLOYEES.

       (a) Short Title.--This Act may be cited as the ``Federal 
     Employee Protection of Disclosures Act''.
       (b) Clarification of Disclosures Covered.--Section 
     2302(b)(8) of title 5, United States Code, is amended--
       (1) in subparagraph (A)--
       (A) by striking ``which the employee or applicant 
     reasonably believes evidences'' and inserting ``, without 
     restriction to time, place, form, motive, context, or prior 
     disclosure made to any person by an employee or applicant, 
     including a disclosure made in the ordinary course of an 
     employee's duties, that the employee or applicant reasonably 
     believes is evidence of''; and
       (B) in clause (i), by striking ``a violation'' and 
     inserting ``any violation'';
       (2) in subparagraph (B)--
       (A) by striking ``which the employee or applicant 
     reasonably believes evidences'' and inserting ``, without 
     restriction to time, place, form, motive, context, or prior 
     disclosure made to any person by an employee or applicant, 
     including a disclosure made in the ordinary course of an 
     employee's duties, of information that the employee or 
     applicant reasonably believes is evidence of''; and
       (B) in clause (i), by striking ``a violation'' and 
     inserting ``any violation (other than a violation of this 
     section)''; and
       (3) by adding at the end the following:
       ``(C) any disclosure that--
       ``(i) is made by an employee or applicant of information 
     required by law or Executive order to be kept secret in the 
     interest of national defense or the conduct of foreign 
     affairs that the employee or applicant reasonably believes is 
     direct and specific evidence of--

       ``(I) any violation of any law, rule, or regulation;
       ``(II) gross mismanagement, a gross waste of funds, an 
     abuse of authority, or a substantial and specific danger to 
     public health or safety; or
       ``(III) a false statement to Congress on an issue of 
     material fact; and

       ``(ii) is made to--

       ``(I) a member of a committee of Congress having a primary 
     responsibility for oversight of a department, agency, or 
     element of the Federal Government to which the disclosed 
     information relates and who is authorized to receive 
     information of the type disclosed;
       ``(II) any other Member of Congress who is authorized to 
     receive information of the type disclosed; or
       ``(III) an employee of Congress who has the appropriate 
     security clearance and is authorized to receive information 
     of the type disclosed.''.

       (c) Covered Disclosures.--Section 2302(a)(2) of title 5, 
     United States Code, is amended--
       (1) in subparagraph (B)(ii), by striking ``and'' at the 
     end;
       (2) in subparagraph (C)(iii), by striking the period at the 
     end and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(D) `disclosure' means a formal or informal communication 
     or transmission, but does not include a communication 
     concerning policy decisions that lawfully exercise 
     discretionary authority unless the employee providing the 
     disclosure reasonably believes that the disclosure 
     evidences--
       ``(i) any violation of any law, rule, or regulation; or
       ``(ii) gross management, a gross waste of funds, an abuse 
     of authority, or a substantial and specific danger to public 
     health or safety.''.
       (d) Rebuttable Presumption.--Section 2302(b) of title 5, 
     United States Code, is amended by amending the matter 
     following paragraph (12) to read as follows:

     ``This subsection shall not be construed to authorize the 
     withholding of information from Congress or the taking of any 
     personnel action against an employee who discloses 
     information to Congress, except that an employee or applicant 
     may be disciplined for the disclosure of information 
     described in paragraph (8)(C)(i) to a Member or employee of 
     Congress who is not authorized to receive such information. 
     For purposes of paragraph (8), any presumption relating to 
     the performance of a duty by an employee who has authority to 
     take, direct others to take, recommend, or approve any 
     personnel action may be rebutted by substantial evidence. For 
     purposes of paragraph (8), a determination as to whether an 
     employee or applicant reasonably believes that they have 
     disclosed information that evidences any violation of law, 
     rule, regulation, gross mismanagement, a gross waste of 
     funds, an abuse of authority, or a substantial and specific 
     danger to public health or safety shall be made by 
     determining whether a disinterested observer with knowledge 
     of the essential facts known to and readily ascertainable by 
     the employee would reasonably conclude that the actions of 
     the Government evidence such violations, mismanagement, 
     waste, abuse, or danger.''.
       (e) Nondisclosure Policies, Forms, and Agreements; Security 
     Clearances; and Retaliatory Investigations.--
       (1) Personnel action.--Section 2302(a)(2)(A) of title 5, 
     United States Code, is amended--
       (A) in clause (x), by striking ``and'' after the semicolon; 
     and
       (B) by redesignating clause (xi) as clause (xiv) and 
     inserting after clause (x) the following:
       ``(xi) the implementation or enforcement of any 
     nondisclosure policy, form, or agreement;''.
       ``(xii) a suspension, revocation, or other determination 
     relating to a security clearance or any other access 
     determination by a covered agency;
       ``(xiii) an investigation, other than any ministerial or 
     nondiscretionary fact finding activities necessary for the 
     agency to perform its mission, of an employee or applicant 
     for employment because of any activity protected under this 
     section; and''.
       (2) Prohibited personnel practice.--Section 2302(b) of 
     title 5, United States Code, is amended--
       (A) in paragraph (11), by striking ``or'' at the end;
       (B) in paragraph (12), by striking the period and inserting 
     a semicolon; and
       (C) by inserting after paragraph (12) the following:
       ``(13) implement or enforce any nondisclosure policy, form, 
     or agreement, if such policy, form, or agreement does not 
     contain the following statement: `These provisions are 
     consistent with and do not supersede, conflict with, or 
     otherwise alter the employee obligations, rights, or 
     liabilities created by Executive Order No. 12958; section 
     7211 of title 5, United States Code (governing disclosures to 
     Congress); section 1034 of title 10, United States Code 
     (governing disclosure to Congress by members of the 
     military); section 2302(b)(8) of title 5, United States Code 
     (governing disclosures of illegality, waste, fraud, abuse, or 
     public health or safety threats); the Intelligence Identities 
     Protection Act of 1982 (50 U.S.C. 421 et seq.) (governing 
     disclosures that could expose confidential Government 
     agents); and the statutes which protect against disclosures 
     that could compromise national security, including sections 
     641, 793, 794, 798, and 952 of title 18, United States Code, 
     and section 4(b) of the Subversive Activities Control Act of 
     1950 (50 U.S.C. 783(b)). The definitions, requirements, 
     obligations, rights, sanctions, and liabilities created by 
     such Executive order and such statutory provisions are 
     incorporated into this agreement and are controlling'; or
       ``(14) conduct, or cause to be conducted, an investigation, 
     other than any ministerial or nondiscretionary fact finding 
     activities necessary for the agency to perform its mission, 
     of an employee or applicant for employment because of any 
     activity protected under this section.''.
       (3) Board and court review of actions relating to security 
     clearances.--
       (A) In general.--Chapter 77 of title 5, United States Code, 
     is amended by inserting after section 7702 the following:

     ``Sec. 7702a. Actions relating to security clearances

       ``(a) In any appeal relating to the suspension, revocation, 
     or other determination relating to a security clearance or 
     access determination, the Merit Systems Protection Board or 
     any reviewing court--
       ``(1) shall determine whether paragraph (8) or (9) of 
     section 2302(b) was violated;
       ``(2) may not order the President or the designee of the 
     President to restore a security clearance or otherwise 
     reverse a determination of clearance status or reverse an 
     access determination; and
       ``(3) subject to paragraph (2), may issue declaratory 
     relief and any other appropriate relief.
       ``(b)(1) If, in any final judgment, the Board or court 
     declares that any suspension, revocation, or other 
     determination with regards

[[Page 3192]]

     to a security clearance or access determination was made in 
     violation of paragraph (8) or (9) of section 2302(b), the 
     affected agency shall conduct a review of that suspension, 
     revocation, access determination, or other determination, 
     giving great weight to the Board or court judgment.
       ``(2) Not later than 30 days after any Board or court 
     judgment declaring that a security clearance suspension, 
     revocation, access determination, or other determination was 
     made in violation of paragraph (8) or (9) of section 2302(b), 
     the affected agency shall issue an unclassified report to the 
     congressional committees of jurisdiction (with a classified 
     annex if necessary), detailing the circumstances of the 
     agency's security clearance suspension, revocation, other 
     determination, or access determination. A report under this 
     paragraph shall include any proposed agency action with 
     regards to the security clearance or access determination.
       ``(c) An allegation that a security clearance or access 
     determination was revoked or suspended in retaliation for a 
     protected disclosure shall receive expedited review by the 
     Office of Special Counsel, the Merit Systems Protection 
     Board, and any reviewing court.
       ``(d) For purposes of this section, corrective action may 
     not be ordered if the agency demonstrates by a preponderance 
     of the evidence that it would have taken the same personnel 
     action in the absence of such disclosure.''.
       (B) Technical and conforming amendment.--The table of 
     sections for chapter 77 of title 5, United States Code, is 
     amended by inserting after the item relating to section 7702 
     the following:

``7702a. Actions relating to security clearances.''.

       (f) Exclusion of Agencies by the President.--Section 
     2302(a)(2)(C) of title 5, United States Code, is amended by 
     striking clause (ii) and inserting the following:
       ``(ii)(I) the Federal Bureau of Investigation, the Central 
     Intelligence Agency, the Defense Intelligence Agency, the 
     National Imagery and Mapping Agency, the National Security 
     Agency; and
       ``(II) as determined by the President, any executive agency 
     or unit thereof the principal function of which is the 
     conduct of foreign intelligence or counterintelligence 
     activities, if the determination (as that determination 
     relates to a personnel action) is made before that personnel 
     action; or''.
       (g) Attorney Fees.--Section 1204(m)(1) of title 5, United 
     States Code, is amended by striking ``agency involved'' and 
     inserting ``agency where the prevailing party is employed or 
     has applied for employment''.
       (h) Disciplinary Action.--Section 1215(a)(3) of title 5, 
     United States Code, is amended to read as follows:
       ``(3)(A) A final order of the Board may impose--
       ``(i) disciplinary action consisting of removal, reduction 
     in grade, debarment from Federal employment for a period not 
     to exceed 5 years, suspension, or reprimand;
       ``(ii) an assessment of a civil penalty not to exceed 
     $1,000; or
       ``(iii) any combination of disciplinary actions described 
     under clause (i) and an assessment described under clause 
     (ii).
       ``(B) In any case in which the Board finds that an employee 
     has committed a prohibited personnel practice under paragraph 
     (8) or (9) of section 2302(b), the Board shall impose 
     disciplinary action if the Board finds that the activity 
     protected under paragraph (8) or (9) of section 2302(b) was a 
     significant motivating factor, even if other factors also 
     motivated the decision, for the employee's decision to take, 
     fail to take, or threaten to take or fail to take a personnel 
     action, unless that employee demonstrates, by preponderance 
     of evidence, that the employee would have taken, failed to 
     take, or threatened to take or fail to take the same 
     personnel action, in the absence of such protected 
     activity.''.
       (i) Special Counsel Amicus Curiae Appearance.--Section 1212 
     of title 5, United States Code, is amended by adding at the 
     end the following:
       ``(h)(1) The Special Counsel is authorized to appear as 
     amicus curiae in any action brought in a court of the United 
     States related to any civil action brought in connection with 
     section 2302(b) (8) or (9), or subchapter III of chapter 73, 
     or as otherwise authorized by law. In any such action, the 
     Special Counsel is authorized to present the views of the 
     Special Counsel with respect to compliance with section 
     2302(b) (8) or (9) or subchapter III of chapter 77 and the 
     impact court decisions would have on the enforcement of such 
     provisions of law.
       ``(2) A court of the United States shall grant the 
     application of the Special Counsel to appear in any such 
     action for the purposes described in subsection (a).''.
       (j) Judicial Review.--
       (1) In general.--Section 7703(b)(1) of title 5, United 
     States Code, is amended to read as follows:
       ``(b)(1)(A) Except as provided in subparagraph (B) and 
     paragraph (2), a petition to review a final order or final 
     decision of the Board shall be filed in the United States 
     Court of Appeals for the Federal Circuit. Notwithstanding any 
     other provision of law, any petition for review must be filed 
     within 60 days after the date the petitioner received notice 
     of the final order or decision of the Board.
       ``(B) During the 5-year period beginning on the effective 
     date of the Federal Employee Protection of Disclosures Act, a 
     petition to review a final order or final decision of the 
     Board in a case alleging a violation of paragraph (8) or (9) 
     of section 2302(b) shall be filed in the United States Court 
     of Appeals for the Federal Circuit or any court of appeals of 
     competent jurisdiction as provided under subsection 
     (b)(2).''.
       (2) Review obtained by office of personnel management.--
     Section 7703(d) of title 5, United States Code, is amended to 
     read as follows:
       ``(d)(1) Except as provided under paragraph (2), this 
     paragraph shall apply to any review obtained by the Director 
     of the Office of Personnel Management. The Director of the 
     Office of Personnel Management may obtain review of any final 
     order or decision of the Board by filing, within 60 days 
     after the date the Director received notice of the final 
     order or decision of the Board, a petition for judicial 
     review in the United States Court of Appeals for the Federal 
     Circuit if the Director determines, in his discretion, that 
     the Board erred in interpreting a civil service law, rule, or 
     regulation affecting personnel management and that the 
     Board's decision will have a substantial impact on a civil 
     service law, rule, regulation, or policy directive. If the 
     Director did not intervene in a matter before the Board, the 
     Director may not petition for review of a Board decision 
     under this section unless the Director first petitions the 
     Board for a reconsideration of its decision, and such 
     petition is denied. In addition to the named respondent, the 
     Board and all other parties to the proceedings before the 
     Board shall have the right to appear in the proceeding before 
     the Court of Appeals. The granting of the petition for 
     judicial review shall be at the discretion of the Court of 
     Appeals.
       ``(2) During the 5-year period beginning on the effective 
     date of the Federal Employee Protection of Disclosures Act, 
     this paragraph shall apply to any review relating to 
     paragraph (8) or (9) of section 2302(b) obtained by the 
     Director of the Office of Personnel Management. The Director 
     of the Office of Personnel Management may obtain review of 
     any final order or decision of the Board by filing, within 60 
     days after the date the Director received notice of the final 
     order or decision of the Board, a petition for judicial 
     review in the United States Court of Appeals for the Federal 
     Circuit or any court of appeals of competent jurisdiction as 
     provided under subsection (b)(2) if the Director determines, 
     in his discretion, that the Board erred in interpreting 
     paragraph (8) or (9) of section 2302(b). If the Director did 
     not intervene in a matter before the Board, the Director may 
     not petition for review of a Board decision under this 
     section unless the Director first petitions the Board for a 
     reconsideration of its decision, and such petition is denied. 
     In addition to the named respondent, the Board and all other 
     parties to the proceedings before the Board shall have the 
     right to appear in the proceeding before the court of 
     appeals. The granting of the petition for judicial review 
     shall be at the discretion of the Court of Appeals.''.
       (k) Nondisclosure Policies, Forms, and Agreements.--
       (1) In general.--
       (A) Requirement.--Each agreement in Standard Forms 312 and 
     4414 of the Government and any other nondisclosure policy, 
     form, or agreement of the Government shall contain the 
     following statement: ``These restrictions are consistent with 
     and do not supersede, conflict with, or otherwise alter the 
     employee obligations, rights, or liabilities created by 
     Executive Order No. 12958; section 7211 of title 5, United 
     States Code (governing disclosures to Congress); section 1034 
     of title 10, United States Code (governing disclosure to 
     Congress by members of the military); section 2302(b)(8) of 
     title 5, United States Code (governing disclosures of 
     illegality, waste, fraud, abuse or public health or safety 
     threats); the Intelligence Identities Protection Act of 1982 
     (50 U.S.C. 421 et seq.) (governing disclosures that could 
     expose confidential Government agents); and the statutes 
     which protect against disclosure that may compromise the 
     national security, including sections 641, 793, 794, 798, and 
     952 of title 18, United States Code, and section 4(b) of the 
     Subversive Activities Act of 1950 (50 U.S.C. 783(b)). The 
     definitions, requirements, obligations, rights, sanctions, 
     and liabilities created by such Executive order and such 
     statutory provisions are incorporated into this agreement and 
     are controlling.''.
       (B) Enforceability.--Any nondisclosure policy, form, or 
     agreement described under subparagraph (A) that does not 
     contain the statement required under subparagraph (A) may not 
     be implemented or enforced to the extent such policy, form, 
     or agreement is inconsistent with that statement.
       (2) Persons other than government employees.--
     Notwithstanding paragraph (1), a nondisclosure policy, form, 
     or agreement that is to be executed by a person connected 
     with the conduct of an intelligence or intelligence-related 
     activity, other than an employee or officer of the United 
     States Government, may contain provisions appropriate to the 
     particular activity for which such document is to be used. 
     Such form or agreement

[[Page 3193]]

     shall, at a minimum, require that the person will not 
     disclose any classified information received in the course of 
     such activity unless specifically authorized to do so by the 
     United States Government. Such nondisclosure forms shall also 
     make it clear that such forms do not bar disclosures to 
     Congress or to an authorized official of an executive agency 
     or the Department of Justice that are essential to reporting 
     a substantial violation of law.
       (l) Clarification of Whistleblower Rights for Critical 
     Infrastructure Information.--Section 214(c) of the Homeland 
     Security Act of 2002 (6 U.S.C. 133(c)) is amended by adding 
     at the end the following: ``For purposes of this section a 
     permissible use of independently obtained information 
     includes the disclosure of such information under section 
     2302(b)(8) of title 5, United States Code.''.
       (m) Advising Employees of Rights.--Section 2302(c) of title 
     5, United States Code, is amended by inserting ``, including 
     how to make a lawful disclosure of information that is 
     specifically required by law or Executive order to be kept 
     secret in the interest of national defense or the conduct of 
     foreign affairs to the Special Counsel, the Inspector General 
     of an agency, Congress, or other agency employee designated 
     to receive such disclosures'' after ``chapter 12 of this 
     title''.
       (n) Scope of Due Process.--
       (1) Special counsel.--Section 1214(b)(4)(B)(ii) of title 5, 
     United States Code, is amended by inserting ``, after a 
     finding that a protected disclosure was a contributing 
     factor,'' after ``ordered if''.
       (2) Individual action.--Section 1221(e)(2) of title 5, 
     United States Code, is amended by inserting ``, after a 
     finding that a protected disclosure was a contributing 
     factor,'' after ``ordered if''.
       (o) Effective Date.--This Act shall take effect 30 days 
     after the date of enactment of this Act.
                                 ______
                                 
      By Mr. CORZINE (for himself, Mr. Brownback, Mr. Dodd, Mr. Durbin, 
        Mr. Feingold, Mr. Lieberman, Mr. Talent, Mr. DeWine, and Mr. 
        Coburn):
  S. 495. A bill to impose sanctions against perpetrators of crimes 
against humanity in Darfur, Sudan, and for other purposes; to the 
Committee on Foreign Relations.
  Mr. CORZINE. Mr. President, I rise to talk about the Darfur 
Accountability Act. This is an issue that I and a number of my 
colleagues have as much passion about and as much conviction and 
concern as anything that we could speak about on this floor. As we 
stand here today, 225,000, maybe more, Darfurians in the Sudan have 
died over the last 2 years. A million and three quarters are displaced, 
living in camps. Senator Brownback is a cosponsor of the Darfur 
Accountability Act, along with Senators DeWine, Talent, Dodd, Durbin, 
Feingold, and Lieberman--a bipartisan basis. All believe strongly and 
passionately that we need to act now.
  This bill, which we will be introducing today, provides the tools, 
the authorities to confront the crisis of humanity that is taking place 
in Darfur. It can be a reflection of our Nation's commitment to live up 
to the most solemn promise of our time and our Nation's values--to 
never stand by quietly while genocide goes forth, while genocide rages 
in a part of the world. ``Never again'' is the rallying cry we have all 
heard from the tragedy of World War II, from the response and 
understanding of the tragedy of Rwanda and genocides across history. 
Man's horrific treatment of his fellow man in genocide must be stood up 
against, must be pushed back against. We must say no.
  It has been more than 7 months since the resolution introduced by 
Senator Brownback and myself declaring the atrocities in Darfur to be 
declared genocide passed the Senate. It has been more than 7 months 
since the House of Representatives passed a similar resolution. And it 
has been 6 months since Secretary of State Colin Powell made the same 
declaration.
  Genocide continues. Just 1 month ago a U.N. commission confirmed a 
litany of atrocities that have become all too familiar in this 
situation:

       Government forces and militias conducted indiscriminate 
     attacks, including killing of civilians, torture, enforced 
     disappearances, destruction of villages, rape and other forms 
     of sexual violence, pillaging and forced displacement 
     throughout Darfur.

  It has been going on for 2 years. The report stated that the 
atrocities were ``conducted on a widespread and systematic basis,'' and 
that the ``magnitude and large-scale nature of some crimes against 
humanity, as well as their consistency over a long period of time, 
necessarily imply that these crimes result from a central planning 
operation.''
  This is public policy in the Sudan--public policy. Maybe more 
compelling is a series of articles, two of which I will put into the 
Record, that are reflective of the public and transparent and dogged 
coverage by a New York Times columnist, Nicholas Kristof, which 
document completely the nature of the atrocities going on, including, 
unfortunately, some of the pictorial efforts that bring forth the 
certainty that genocide is taking place.
  I will submit a column written on February 23, ``The Secret Genocide 
Archive,'' which carries pictures in the New York Times of some of the 
outcomes of our failure to act. Then there is a second column which I 
will put into the Record. It is in today's paper, March 2, 2005, ``The 
American Witness,'' where a U.S. marine on the ground, a captain in the 
Marine Corps, is citing and stating and documenting the continuation of 
this tragedy in the lives of these people in Darfur.
  I ask unanimous consent that these articles be printed in the Record.
  There being no objection, the article was ordered to be printed in 
the Record, as follows:

                [From the New York Times, Mar. 2, 2005]

                          The American Witness

                        (By Nicholas D. Kristof)

       American soldiers are trained to shoot at the enemy. 
     They're prepared to be shot at. But what young men like Brian 
     Steidle are not equipped for is witnessing a genocide but 
     being unable to protect the civilians pleading for help.
       If President Bush wants to figure out whether the U.S. 
     should stand more firmly against the genocide in Darfur, I 
     suggest that he invite Mr. Steidle to the White House to give 
     a briefing. Mr. Steidle, a 28-year-old former Marine captain, 
     was one of just three American military advisers for the 
     African Union monitoring team in Darfur--and he is bursting 
     with frustration.
       ``Every single day you go out to see another burned 
     village, and more dead bodies,'' he said. ``And the 
     children--you see 6-month-old babies that have been shot, and 
     3-year-old kids with their faces smashed in with rifle butts. 
     And you just have to stand there and write your reports.''
       While journalists and aid workers are sharply limited in 
     their movements in Darfur, Mr. Steidle and the monitors 
     traveled around by truck and helicopter to investigate 
     massacres by the Sudanese government and the janjaweed 
     militia it sponsors. They have sometimes been shot at, and 
     once his group was held hostage, but they have persisted and 
     become witnesses to systematic crimes against humanity.
       So is it really genocide?
       ``I have no doubt about that,'' Mr. Steidle said. ``It's a 
     systematic cleansing of peoples by the Arab chiefs there. And 
     when you talk to them, that's what they tell you. They're 
     very blunt about it. One day we met a janjaweed leader and he 
     said, `Unless you get back four camels that were stolen in 
     2003, then we're going to go to these four villages and burn 
     the villages, rape the women, kill everyone.' And they did.''
       The African Union doesn't have the troops, firepower or 
     mandate to actually stop the slaughter, just to monitor it. 
     Mr. Steidle said his single most frustrating moment came in 
     December when the Sudanese government and the janjaweed 
     attacked the village of Labado, which had 25,000 inhabitants. 
     Mr. Steidle and his unit flew to the area in helicopters, but 
     a Sudanese general refused to let them enter the village--and 
     also refused to stop the attack.
       ``It was extremely frustrating--seeing the village burn, 
     hearing gunshots, not being able to do anything,'' Mr. 
     Steidle said. ``The entire village is now gone. It's a big 
     black spot on the earth.''
       When Sudan's government is preparing to send bombers or 
     helicopter gunships to attack an African village, it shuts 
     down the cell phone system so no one can send out warnings. 
     Thus the international monitors know when a massacre is about 
     to unfold. But there's usually nothing they can do.
       The West, led by the Bush administration, is providing food 
     and medical care that is keeping hundreds of thousands of 
     people alive. But we're managing the genocide, not halting 
     it.
       ``The world is failing Darfur,'' said Jan Egeland, the U.N. 
     under secretary general for humanitarian affairs. ``We're 
     only playing the humanitarian card, and we're just witnessing 
     the massacres.''
       President Bush is pushing for sanctions, but European 
     countries like France are disgracefully cool to the idea--and 
     China is downright hostile, playing the same supportive role 
     for the Darfur genocide that it did for the Khmer Rouge 
     genocide.

[[Page 3194]]

       Mr. Steidle has just quit his job with the African Union, 
     but he plans to continue working in Darfur to do his part to 
     stand up to the killers. Most of us don't have to go to that 
     extreme of risking our lives in Darfur--we just need to get 
     off the fence and push our government off, too.
       At one level, I blame President Bush--and, even more, the 
     leaders of European, Arab and African nations--for their 
     passivity. But if our leaders are acquiescing in genocide, 
     that's because we citizens are passive, too. If American 
     voters cared about Darfur's genocide as much as about, say, 
     the Michael Jackson trial, then our political system would 
     respond. One useful step would be the passage of the Darfur 
     Accountability Act, to be introduced today by Senators Jon 
     Corzine and Sam Brownback. The legislation calls for such 
     desperately needed actions as expanding the African Union 
     force and establishing a military no-fly zone to stop Sudan 
     from bombing civilians.
       As Martin Luther King Jr. put it: ``Man's inhumanity to man 
     is not only perpetrated by the vitriolic actions of those who 
     are bad. It is also perpetrated by the vitiating inaction of 
     those who are good.''

  Mr. CORZINE. Mr. President, we are truly at a historic moment. The 
U.N. Commission confirmed that these atrocities were continuing even as 
it was doing its investigation. By the way, we just released from the 
U.S. State Department a report on human rights practices in countries 
around the world. The February 28 report reconfirmed our own 
Government's view that what is taking place is genocide.
  We bear the responsibility that came out of the Holocaust to remember 
the horrors that lead to genocide. That is why we passed the genocide 
convention, and it is time to act. That is what this accountability act 
is all about. It has a lot of detail in it. But the fact is, it is to 
get us up and moving. I could use a little more graphic language. We 
have no right to stand by while human life is being taken day after day 
and displacement is taking place day after day. All over this country, 
people of faith of all denominations, student groups, and people from 
all walks of life are speaking out about this in our churches, our 
community centers, everywhere. They expect our Government and the 
international community to act. The time to act is now.
  Let me describe the legislation, if I may. First, it reconfirms that 
genocide continues in Darfur. Last week, Human Rights reported new 
accounts of rapes, tortures, and mutilations from eyewitnesses. This 
needs to be dealt with. There is little doubt whatsoever that this 
continues. Again, I refer to the Kristof articles, which are very 
graphic in their explanation. Reflecting on time, I will not go through 
the details. There are many of these accounts.
  There is no reason to turn our backs on this issue. Remember the 
imperative: Never again. This legislation offers specifics about how 
the genocide should be stopped. It calls for a military no-fly zone in 
Darfur. This discussion about no-fly zones has been going on for the 
better part of a year. It is time to make sure that we as an 
international community, as a nation, stand up and say, let's implement 
that.
  Recent reports state that as recently as January, the Government of 
Sudan used aircraft and helicopters to impose its desire in 
implementing its genocide on the people of Darfur along with the 
jingaweit militia, which are notorious about implementing this.
  The legislation also lays out the report for the African Union 
mission in Darfur. In September of last year, the Senate passed an 
amendment by Senator DeWine and myself that sets aside $75 million in 
aid to the African Union so they could accelerate their monitoring and 
assistance on the ground in Darfur. So far, we have begun to use some 
of those resources. I think at this point it is about $20 million. 
Unfortunately, the authorization was for 3,300 African Union troops on 
the ground, but there are about 1,800 there today. This is 7 months 
after our efforts to get this done. We need to stop the killing now. 
That means we need to get the troops on the ground now; we have to 
spend the money now. It is absolutely time that we stand up and take 
notice and move on this issue.
  The legislation also provides specifics about what should be done in 
a new U.N. Security Council resolution, including sanctions that have 
previously been threatened by the council but never imposed. For 
instance, we have an arms embargo against the government in Darfur. We 
don't have an arms embargo against the Government of Sudan. We have one 
in Darfur. So they can get the guns and military equipment into 
Khartoum, and I guess we think somehow they are not going to use it 
where they are actually taking the lives of the people in Darfur. It is 
crazy that we have such a limited and ineffectual arms embargo on 
Sudan. We need to act. It is clear that we needed it last summer, and 
it is clear that we need it today.
  I was offered the opportunity to visit Darfur last August during that 
30-day period when the U.N. Security Council was examining whether 
Sudan was moving to correct some of the problems, get control of the 
jingaweit, and actually respond to the international community's 
imperative that they change their actions. It was clear then that the 
only thing that was moving the Sudanese Government was the transparency 
that both journalists and the international community were providing 
the people who were on the ground, but they had no real interest in 
stopping the jingaweit or the tragedy on the ground in Darfur. None. It 
was only pressure from the outside that was going to have any impact on 
moving forward.
  Unfortunately, from that moment on, we have stepped back. We said we 
were going to do things, and we did not. Guess what. The tragedy 
continues and has accelerated in many places, particularly south 
Darfur. It is time to act.
  I will save going through the rest of the pieces of legislation, but 
I hope my colleagues will keep in mind that we have had over 200,000 
deaths and one and three-quarter million people displaced, more or 
less. Nobody is certain of the numbers. Estimates are that 10,000 
people die a month in Darfur. Do we have to wake up and understand that 
we have ``Rwanda 2'' on our hands to act? Do we have to have some 
incredible tragedy at a single point in time for us to act? It is time 
to put down serious accountability requirements on the Government of 
Sudan and to act to stop the killing in Darfur. I can only say that 
there is nothing that reflects our moral values in this country more 
than standing up to genocide. Our humanity is being challenged, the 
very essence of who we are as human beings. Genocide is evil. It should 
be stopped, and we should remember the imperative: Never again.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Illinois is recognized.
  Mr. DURBIN. Mr. President, let me salute the Senator from New Jersey, 
Mr. Corzine, as well as Senator Brownback, a Democrat and a Republican, 
one from the east coast and another from the Midwest, for bringing to 
the Senate floor today the issue of Darfur. They have been leaders in 
this issue. I can recall Senator Corzine as the first Member of the 
Senate standing up and making a point many months ago about the 
senseless killing going on in the Sudan and the fact that the United 
States could not turn a blind eye to this issue. He returned to the 
floor today with the same message. I commend him for his humanitarian 
commitment to the poor people who are losing their lives in this 
conflict.
  A little over a week ago in Chicago, IL, we had the visit of a rather 
famous man. He was a man who none of us knew and, frankly, could not 
even pronounce his name. He came to tell a story. His name is Paul 
Rusesabagina. He is the manager of the hotel in Hotel Rwanda, which has 
become a very famous film. He had a luxury hotel in Rwanda in the midst 
of the terrible genocide. Because of his personal courage and the fact 
that he was willing to stand up, he saved over 1,200 lives of people 
who sought refuge in the hotel, who otherwise would have been hacked to 
death by machete during the Rwanda genocide. He came to Chicago, to St. 
Sabinas Church on the South Side, where Father Michael Flager was his 
host. He told the story of Rwanda. It wasn't just a reminiscence of 
history; he told us that we needed to look today to the genocides we 
face in the world. He pointed specifically to Darfur in Sudan.

[[Page 3195]]

  He asked us what was asked of many during the Rwanda genocide: What 
will you do now that you know that innocent people are being killed by 
the hundreds of thousands? What will you do? Will you ignore it because 
it is so far away? Will you ignore it because it is Africa? Will you 
ignore it because it may call for sacrifice on the part of U.S. 
leadership?
  It is a challenge he made to us, an interesting challenge from a man 
who literally risked his life to save others during a genocide. He 
asked us, in our comfort in America, whether we were willing to risk 
anything to save these victims in Darfur. He touched my soul, and I 
told him that when I get back to Washington, I will take to the floor 
of the Senate and raise this issue as often as I can. I will try 
everything I can find to move the United States into a stronger 
position of leadership.
  Yesterday, President Bush invited about 20 leaders in Congress to the 
White House for a briefing on his trip to Europe. It was an excellent 
briefing. We were allowed to ask questions at the end. I asked the 
President, with Steven Hadley close at hand: What are we going to do 
about Darfur? Sadly, the response was what I have heard over and over 
again from so many different sources: We are going to count on the 
African Union, a group of soldiers from Africa who are moving into the 
region. How many soldiers are moving into this region where helpless 
people are being killed? Their best estimates are 3,000 soldiers. How 
big is this region? It is about the size of the State of Texas. How in 
the world can we expect to have an impact on this senseless killing?
  That is why I am supporting this Darfur Accountability Act. This bill 
we are pushing seeks to prod the world to do what it needs to do to 
stop the genocide in Sudan. ``Genocide'' is a word this is rarely used 
in human history. There have been genocides against the Armenian people 
and the Jewish people during the Holocaust, perhaps in Pol Pot's times 
in Cambodia, and other times we can point to. Rarely do we use the 
word. It is a word that is freighted with responsibility. You cannot 
just say there is genocide in some part of the world and isn't that a 
shame. We signed a genocide treaty that said once we detect a genocide, 
we go to international organizations--the United States does--and 
demand action. So using the word ``genocide,'' as the Bush 
administration has done, is a good thing because it prods us to do 
something, but it is a challenge that we must meet on something this 
timely and important.
  This act calls for the United States to call on the United Nations to 
immediately take action in Darfur. Some will say, well, that is 
pointless; Russia and China will veto that action in the Security 
Council. Regardless, we should force the issue to a vote. We should 
confront the Russians and the Chinese and ask them what they would do 
in light of this senseless killing.
  The horrific stories keep piling up. The jingaweit, the armed 
militias, running amok in Darfur are killing innocent people right and 
left. Sudanese aircraft strafed a village in southern Darfur, killing 
more than 100 men, women, and children, in January, according to Human 
Rights Watch. The world has witnessed this in Darfur. We know it has 
happened. We must do something about it. That is why I join my 
colleague in this request that we take action now, move this Darfur 
Accountability Act, join Senator Corzine, join Senator Brownback, and 
make this happen.
  Let me also say this. My closest friend in politics was Paul Simon, 
who preceded me in the Senate. He spoke out on the Rwandan genocide 
when very few did. He called on the Clinton administration to do 
something, and they did not. They look back now with sorrow and some 
shame that they did not. President Clinton has said that. We do not 
want to be in that same situation.
  The United States should not be a guilty bystander in this genocide. 
We will be guilty if we do not act. We will be bystanders if we come up 
with excuses to do nothing. We need to take the risk to save these 
people, as Paul Rusesabagina did in Rwanda. We can step in today and 
save and protect innocent lives, call on the United Nations to act, and 
if they fail to act, take the next step, even if it involves 
commitments from the United States which may not be immediately 
popular.
  I think the American people will understand. We are a compassionate, 
caring people who will not stand idly by in the face of a genocide as 
we did during Rwanda.
  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. 495

       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 ``Darfur Accountability Act of 
     2005''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives.
       (2) Government of sudan.--The term ``Government of Sudan'' 
     means the National Congress Party-led government in Khartoum, 
     Sudan, or any successor government formed on or after the 
     date of the enactment of this Act.
       (3) Member states.--The term ``member states'' means the 
     member states of the United Nations.
       (4) Sudan north-south peace agreement.--The term ``Sudan 
     North-South Peace Agreement'' means the comprehensive peace 
     agreement signed by the Government of Sudan and the Sudan 
     People's Liberation Army/Movement on January 9, 2005.
       (5) Those named by the un commission.--The term ``those 
     named by the UN Commission'' means those individuals whose 
     names appear in the sealed file delivered to the Secretary 
     General of the United Nations by the International Commission 
     of Inquiry on Darfur to the United Nations Secretary General.
       (6) UN commission.--The term ``UN Commission'' means the 
     International Commission of Inquiry on Darfur to the United 
     Nations Secretary General.

     SEC. 3. FINDINGS.

       Congress makes the following findings:
       (1) On July 22, 2004, the House of Representatives and the 
     Senate declared that the atrocities occurring in Darfur, 
     Sudan are genocide.
       (2) On September 9, 2004, Secretary of State Colin L. 
     Powell stated before the Committee on Foreign Relations of 
     the Senate, ``[w]hen we reviewed the evidence compiled by our 
     team, along with other information available to the State 
     Department, we concluded that genocide has been committed in 
     Darfur and that the Government of Sudan and the [Janjaweed] 
     bear responsibility--and genocide may still be occurring''.
       (3) President George W. Bush, in an address before the 
     United Nations General Assembly on September 21, 2004, 
     stated, ``[a]t this hour, the world is witnessing terrible 
     suffering and horrible crimes in the Darfur region of Sudan, 
     crimes my government has concluded are genocide''.
       (4) On July 30, 2004, the United Nations Security Council 
     passed Security Council Resolution 1556, calling upon the 
     Government of Sudan to disarm the Janjaweed militias and to 
     apprehend and bring to justice Janjaweed leaders and their 
     associates who have incited and carried out violations of 
     human rights and international humanitarian law and carried 
     out other atrocities in the Darfur region.
       (5) On September 18, 2004, the United Nations Security 
     Council passed Security Council Resolution 1564, determining 
     that the Government of Sudan had failed to meet its 
     obligations under Security Council Resolution 1556, calling 
     for a military flight ban in and over the Darfur region, 
     demanding the names of Janjaweed militiamen disarmed and 
     arrested for verification, establishing an International 
     Commission of Inquiry into violations of international 
     humanitarian and human rights laws, and threatening sanctions 
     should the Government of Sudan fail to fully comply with 
     Security Council Resolutions 1556 and 1564.
       (6) United Nations Security Council Resolution 1564 
     declares that if the Government of Sudan ``fails to comply 
     fully'' with Security Council Resolutions 1556 and 1564, the 
     Security Council shall consider taking ``additional 
     measures'' against the Government of Sudan ``as contemplated 
     in Article 41 of the Charter of the United Nations, such as 
     actions to affect Sudan's petroleum sector or individual 
     members of the Government of Sudan, in order to take 
     effective action to obtain such full compliance and 
     cooperation''.
       (7) United Nations Security Council Resolution 1564 also 
     ``welcomes and supports the

[[Page 3196]]

     intention of the African Union to enhance and augment its 
     monitoring mission in Darfur'' and ``urges member states to 
     support the African Union in these efforts, including by 
     providing all equipment, logistical, financial, material, and 
     other resources necessary to support the rapid expansion of 
     the African Union Mission''.
       (8) On February 1, 2005, the United Nations released the 
     Report of the International Commission of Inquiry on Darfur 
     to the United Nations Secretary-General, dated January 25, 
     2005, which stated that, ``[g]overnment forces and militias 
     conducted indiscriminate attacks, including killing of 
     civilians, torture, enforced disappearances, destruction of 
     villages, rape and other forms of sexual violence, pillaging 
     and forced displacement throughout Darfur'', that such ``acts 
     were conducted on a widespread and systematic basis, and 
     therefore may amount to crimes against humanity'', and that 
     the ``magnitude and large-scale nature of some crimes against 
     humanity as well as their consistency over a long period of 
     time, necessarily imply that these crimes result from a 
     central planning operation''.
       (9) The Report of the International Commission of Inquiry 
     on Darfur to the United Nations Secretary-General notes that, 
     pursuant to its mandate and in the course of its work, the UN 
     Commission collected information relating to individual 
     perpetrators of acts constituting ``violations of 
     international human rights law and international humanitarian 
     law, including crimes against humanity and war crimes'' and 
     that the UN Commission has delivered to the Secretary-General 
     of the United Nations a sealed file of those named by the UN 
     Commission with the recommendation that the ``file be handed 
     over to a competent Prosecutor''.

     SEC. 4. SENSE OF CONGRESS.

       It is the sense of Congress that--
       (1) the atrocities unfolding in Darfur, Sudan, have been 
     and continue to be genocide;
       (2) the United States should immediately seek passage at 
     the United Nations Security Council of a resolution that--
       (A) requires member states to freeze the property and 
     assets of, deny visas to, and deny entry to--
       (i) those named by the UN Commission;
       (ii) family members of those named by the UN Commission; 
     and
       (iii) any associates of those named by the UN Commission to 
     whom assets or property of those named by the UN Commission 
     were transferred on or after June 11, 2004;
       (B) urges member states to submit to the Security Council 
     the name of any individual that the government of any such 
     member state believes is or has been planning, carrying out, 
     responsible for, or otherwise involved in genocide, war 
     crimes, or crimes against humanity in Darfur, along with 
     evidence supporting such belief so that the Security Council 
     may consider imposing sanctions described in subparagraph (A) 
     against those individuals described in such subparagraph;
       (C) imposes sanctions or additional measures against the 
     Government of Sudan, including sanctions that will affect the 
     petroleum sector in Sudan, individual members of the 
     Government of Sudan, and entities controlled or owned by 
     officials of the government of Sudan or the National Congress 
     Party in Sudan, that will remain in effect until such time 
     as--
       (i) humanitarian organizations are granted full, unimpeded 
     access to Darfur;
       (ii) the Government of Sudan cooperates with humanitarian 
     relief efforts, carries out activities to demobilize and 
     disarm Janjaweed militias and any other militias supported or 
     created by the Government of Sudan, and cooperates fully with 
     efforts to bring to justice the individuals responsible for 
     genocide, war crimes, or crimes against humanity in Darfur;
       (iii) the Government of Sudan cooperates fully with the 
     African Union, the United Nations, and all other observer, 
     monitoring, and protection missions mandated to operate in 
     Sudan;
       (iv) the Government of Sudan permits the safe and voluntary 
     return of displaced persons and refugees to their homes and 
     rebuilds the communities destroyed in the violence in Darfur; 
     and
       (v) the Sudan North-South Peace Agreement is fully 
     implemented and a new coalition government is created under 
     such Agreement;
       (D) establishes a military no-fly zone in Darfur;
       (E) supports the expansion of the African Union force in 
     Darfur so that such force achieves the size and strength 
     needed to prevent ongoing fighting and violence in Darfur;
       (F) urges member states to accelerate assistance to the 
     African Union force in Darfur;
       (G) calls on the Government of Sudan to cooperate with, and 
     allow unrestricted movement in Darfur by, the African Union 
     force in the region, international humanitarian 
     organizations, and United Nations monitors;
       (H) extends the embargo of military equipment established 
     by paragraphs 7 through 9 of Security Council Resolution 1556 
     to include the prohibition of sale or supply to the 
     Government of Sudan; and
       (I) supports African Union efforts to negotiate peace talks 
     between the Government of Sudan and rebels in Darfur, calls 
     on the Government of Sudan and rebels in Darfur to abide by 
     their obligations under the N'Djamena Ceasefire Agreement of 
     April 8, 2004 and subsequent agreements, and urges parties to 
     engage in peace talks without preconditions and seek to 
     resolve the conflict;
       (3) the United States should work with other nations to 
     ensure effective efforts to freeze the property and assets of 
     and deny visas and entry to--
       (A) those named by the UN Commission;
       (B) any individuals the United States believes is or has 
     been planning, carrying out, responsible for, or otherwise 
     involved in genocide, war crimes, and crimes against humanity 
     in Darfur;
       (C) family members of any person described in subparagraphs 
     (A) or (B); and
       (D) any associates of any such person to whom assets or 
     property of such person were transferred on or after June 11, 
     2004;
       (4) the United States should support accountability through 
     action by the United Nations Security Council, pursuant to 
     Chapter VII of the Charter of the United Nations, to ensure 
     the prompt prosecution and adjudication in a competent 
     international court of justice of those named by the UN 
     Commission;
       (5) the United States should not provide assistance to the 
     Government of Sudan, other than assistance necessary for the 
     implementation of the Sudan North-South Peace Agreement, the 
     support of the southern regional government in Sudan, or for 
     humanitarian purposes in Sudan, unless the President 
     certifies and reports to Congress that--
       (A) humanitarian organizations are being granted full, 
     unimpeded access to Darfur and the Government of Sudan is 
     providing full cooperation with humanitarian efforts;
       (B) concrete, sustained steps are being taken toward 
     demobilizing and disarming Janjaweed militias and any other 
     militias supported or created by the Government of Sudan;
       (C) the Government of Sudan is cooperating fully with 
     efforts to bring to justice those responsible for genocide, 
     war crimes, or crimes against humanity in Darfur;
       (D) the Government of Sudan cooperates fully with the 
     African Union, the United Nations, and all other observer, 
     monitoring, and protection missions mandated to operate in 
     Sudan;
       (E) the Government of Sudan permits the safe and voluntary 
     return of displaced persons and refugees to their homes and 
     rebuilds the communities destroyed in the violence in Darfur; 
     and
       (F) the Sudan North-South Peace Agreement is fully 
     implemented and a new coalition government is created under 
     such Agreement;
       (6) the President should work with the African Union and 
     other international organizations and nations to establish 
     mechanisms for the enforcement of a no-fly zone in Darfur;
       (7) the African Union should extend its mandate in Darfur 
     to include the protection of civilians and proactive efforts 
     to prevent violence, and member states should support fully 
     this extension;
       (8) the President should accelerate assistance to the 
     African Union force in Darfur and discussions with the 
     African Union and the European Union and other supporters of 
     the African Union force on the needs of such force, including 
     assistance for housing, transportation, communications, 
     equipment, technical assistance such as training and command 
     and control assistance, and intelligence;
       (9) the President should appoint a Presidential Envoy for 
     Sudan--
       (A) to support the implementation of the Sudan North-South 
     Peace Agreement;
       (B) to seek ways to bring stability and peace to Darfur;
       (C) to address instability elsewhere in Sudan; and
       (D) to seek a comprehensive peace throughout Sudan;
       (10) United States officials, including the President, the 
     Secretary of State, and the Secretary of Defense, should 
     raise the issue of Darfur in bilateral meetings with 
     officials from other members of the United Nations Security 
     Council and relevant countries, with the aim of passing a 
     United Nations Security Council resolution described in 
     paragraph (2) and mobilizing maximum support for political, 
     financial, and military efforts to stop the genocide in 
     Darfur;
       (11) the Secretary of State should immediately engage in a 
     concerted, sustained campaign with other members of the 
     United Nations Security Council and relevant countries with 
     the aim of achieving the goals described in paragraph (10);
       (12) the United States fully supports the Sudan North-South 
     Peace Agreement and urges the rapid implementation of its 
     terms; and
       (13) the United States condemns attacks on humanitarian 
     workers and calls on all forces in Darfur, including forces 
     of the Government of Sudan, all militia, and forces of the 
     Sudan People's Liberation Army/Movement and the Justice and 
     Equality Movement, to refrain from such attacks.

[[Page 3197]]



     SEC. 5. IMPOSITION OF SANCTIONS.

       (a) Freezing Assets.--At such time as the United States has 
     access to the names of those named by the UN Commission, the 
     President shall take such action as may be necessary to 
     immediately freeze the funds and other assets belonging to 
     anyone so named, their family members, and any associates of 
     those so named to whom assets or property of those so named 
     were transferred on or after June 11, 2004, including 
     requiring that any United States financial institution 
     holding such funds and assets promptly report those funds and 
     assets to the Office of Foreign Assets Control.
       (b) Visa Ban.--Beginning at such times as the United States 
     has access to the names of those named by the UN Commission, 
     the President shall deny visas and entry to--
       (1) those named by the UN Commission;
       (2) the family members of those named by the UN Commission; 
     and
       (3) anyone the President determines has been, is, or may be 
     planning, carrying out, responsible for, or otherwise 
     involved in crimes against humanity, war crimes, or genocide 
     in Darfur, Sudan.
       (c) Asset Reporting Requirement.--Not later than 14 days 
     after a decision to freeze the property or assets of, or deny 
     a visa or entry to, any person under this section, the 
     President shall report the name of such person to the 
     appropriate congressional committees.
       (d) Notification of Waivers of Sanctions.--Not later than 
     30 days before waiving the provisions of any sanctions 
     currently in force with regard to Sudan, the President shall 
     submit to the appropriate congressional committees a report 
     describing the waiver and the reasons therefor.

     SEC. 6. REPORTS TO CONGRESS.

       (a) Reports on Stabilization in Sudan.--
       (1) Initial report.--Not later than 30 days after the date 
     of enactment of this Act, the Secretary of State, in 
     conjunction with the Secretary of Defense, shall report to 
     the appropriate congressional committees on efforts to deploy 
     an African Union force in Darfur, the capacity of such force 
     to stabilize Darfur and protect civilians, the needs of such 
     force to succeed at such mission including housing, 
     transportation, communications, equipment, technical 
     assistance, including training and command and control, and 
     intelligence, current status of United States and other 
     assistance to the African Union force, and additional United 
     States assistance needed.
       (2) Subsequent reports.--The Secretary of State, in 
     conjunction with the Secretary of Defense, shall submit not 
     less than every 60 days until such time as the President 
     certifies that the situation in Darfur is stable and that 
     civilians are no longer in danger and that the African Union 
     is no longer needed to prevent a resumption of violence and 
     attacks against civilians.
       (b) Report on Those Named by the UN Commission.--At such 
     time as the United States has access to the names of those 
     named by the UN Commission, the President shall submit to the 
     appropriate congressional committees a report listing such 
     names.
       (c) Reports on Accountability.--
       (1) In general.--No later than 30 days after the date of 
     enactment of this Act and every 30 days thereafter, the 
     President shall submit to the appropriate congressional 
     committees a report on the status of efforts in the United 
     Nations Security Council to ensure prompt prosecution and 
     adjudication of those named by the UN Commission in a 
     competent international court of justice.
       (2) Content.--The reports required under paragraph (1) 
     shall describe--
       (A) the status of any relevant resolution introduced in the 
     United Nations Security Council;
       (B) the policy of the United States with regard to such 
     resolutions;
       (C) the status of all possible venues for prosecution and 
     adjudication of those named by the UN Commission, including 
     whether such venues have the jurisdiction, personnel and 
     assets necessary to promptly prosecute and adjudicate cases 
     involving such persons; and
       (D) any ongoing or planned United States or other 
     assistance related to the prosecution and adjudication of 
     cases involving those named by the UN Commission.

  Mr. BROWNBACK. Mr. President, today with several bipartisan 
colleagues, Senator Corzine and I introduced the Darfur Accountability 
Act of 2005. For nearly a year, this body has been aware of the ongoing 
genocide in Sudan. Last July we declared genocide in Darfur, followed 
shortly thereafter by the same declaration by former Secretary of State 
Colin Powell. Yet no punitive measure has been taken by the 
international community against the Government of Sudan for these 
egregious human rights violations. Some sources estimate that as many 
as 400,000 people have died as a result, and nearly 2 million have been 
displaced from their homes.
  Yesterday I spoke on the Senate floor in an attempt to display the 
face of genocide. Photographs of scorched bodies, castrated men, dead 
children, and burned villages were provided to me by Nicholas Kristof 
of the New York Times. These photos do nothing less than display the 
cruel impunity of those committing genocide. The haunting reality is 
that the international community has failed on their promise of ``never 
again.''
  The United Nations should take immediate steps to end this genocide 
and Kofi Annan should lead the Security Council to pass a strong, 
meaningful resolution that will immediately change the situation on the 
ground. There is no longer an excuse; we must call this what this is, 
and we must immediately act to prevent further pillaging and death. I 
have called on Annan several times to lead or leave. He should pass a 
resolution with mechanisms to see that the impunity ends and if he 
fails to do so, resign in moral protest at the international 
community's inaction and complacency.
  Our bill, the Darfur Accountability Act of 2005, calls for several 
key measures to be taken, including: a multilateral arms embargo to 
include the government of Sudan; a no fly zone; multilateral sanctions; 
targeted sanctions including travel bans and the freezing of assets of 
criminals; accelerated assistance to AU monitoring troops, and several 
other items that will secure a peaceful Darfur.
  I encourage my colleagues to join us in moving this bill through 
Congress. We do not have days or weeks to spare when millions of lives 
are in jeopardy. We cannot grant the government of Sudan and the 
janjaweed more time to execute the African tribes in Darfur. I look 
forward to working with Senator Corzine and other colleagues to see 
passage of this bill immediately.
                                 ______
                                 
      By Mr. SALAZAR:
  S. 496. A bill to provide permanent funding for the payment in lieu 
of taxes program, and for other purposes; to the Committee on Homeland 
Security and Governmental Affairs.
                                 ______
                                 
      By Mr. SALAZAR:
  S. 497. A bill to revitalize our nation's rural communities by 
expanding broadband services; to the Committee on Finance.
  Mr. SALAZAR. Mr. President, I rise to speak about two bills I am 
introducing today and to speak out in support of rural Colorado and 
rural America. The two bills--one to increase investment in broadband 
technology in rural areas, and another to permanently fund the payment 
in lieu of taxes program--are the first bills I am introducing as a 
Senator. I am proud they are both targeted at rural Colorado.
  Over 400 years ago, in 1598, my family helped found the oldest city 
in what is now these United States. They named the city Santa Fe--the 
City of Holy Faith--because they knew the hand of God would guide them 
through the struggles of survival in the ages ahead.
  For the next four centuries, that faith in their future guided them 
to overcome extremely painful and challenging times. As humble and poor 
farmers, the circumstances of their lives forged the priceless and 
tireless values of my father Henry and mother Emma. And they instilled 
those values in their children.
  My family has now farmed the same lands in southern Colorado, 110 
miles north of Santa Fe, for almost 150 years. On that ranch, we did 
not have a telephone, and the power lines did not reach us until 1981. 
Although we were poor in material goods, we were rich in spirit. My 
parents were part of the World's ``greatest generation''--my father a 
proud veteran of World War II and my mother a proud servant in the War 
Department. Although neither had a college degree, they taught us about 
the values and the promise of America. All eight of their children 
became first-generation college graduates, inspired by their dedication 
to God, family, community, and country.
  As Colorado's U.S. Senator, I am proud of my values and roots in 
rural Colorado. Rural America is the heart of our great Nation.
  The values my parents taught me are the fundamental values that make 
this country the place I am privileged to call home.
  Unfortunately, the America where I grew up is vanishing, left behind 
by a

[[Page 3198]]

Washington DC that has lost touch with what is important to the people 
of the heartland. I fear that rural Colorado, like the rest of rural 
America, has become ``the forgotten America.''
  Rural America has given up its sons and daughters to the cause of 
freedom without hesitation and in numbers that far exceed its 
proportion of the country's population. It has worked quietly to put 
food on our tables, and remains humbly grounded, seeking neither praise 
nor thanks.
  Yet when the President reported on the State of the Union, there was 
not a word on the state of the more than 3,000 counties that make up 
rural America--not a word. And in the administration's budget, the 
programs and investments vital to those communities--PILT, block 
grants, conservation programs, investments in animal and food safety, 
and investments in technology, schools and law enforcement--were 
drastically cut.
  Last week, I traveled nearly 2,000 miles to every corner of Colorado 
and convened 17 meetings with elected officials representing Colorado's 
64 counties.
  In those meetings, I heard the state of rural America in the words of 
the people who are fighting for their families everyday.
  The state of rural America is sadly the state of the forgotten 
America.
  In rural Colorado, residents face lower incomes and are far more 
likely to be unemployed than people in urban and suburban areas.
  In Crowley County, east of Pueblo, there is only one nurse 
practitioner to serve a county of nearly 6,000 people. If you get sick 
in Crowley County, you have three choices: wait, go to the emergency 
room, or hope you get better.
  In Routt County, veterans have to travel nearly 200 miles to Grand 
Junction to see a doctor in the VA clinic. A few months ago, there was 
no waiting list to see a doctor. Now, there's a waiting list of 400, 
which means veterans in western Colorado wait 5 months to see a doctor.
  The Dolores County Sheriff, Jerry Martin, has to make hiring 
decisions based not on public security demands but on the ability of 
his department to provide health care to the prospective employee. 
Health care premiums have risen 20 percent every year the last 3 years 
in Dolores County.
  Across the State, people told me that their health care premiums 
dwarf their mortgage payments because in many cases they pay over 
$1,000 per month for health insurance for their families.
  Between 1996 and 2000, one in three of our rural schools saw its 
enrollment drop more than 10 percent.
  Though they continue to excel on State tests, too many of our rural 
schools have been forced to divert valuable resources to fulfill the 
unfunded mandates of No Child Left Behind.
  In Kiowa, Moffat, and Custer Counties, our teachers are paid much 
less than teachers in the big cities. In Kit Carson County, where 
teachers sometimes teach two and three subjects, only half of our 
teachers right now would meet new Federal standards requiring them to 
be certified for each subject.
  And in the town of Rico, half of Main Street is boarded up: there's a 
liquor store, but not much else. According to the Kansas City Federal 
Reserve Bank, that may be part of a larger trend: Main Street in rural 
Colorado is losing its storefronts at an alarming rate.
  Compare those needs to the budget the Administration recently 
proposed.
  While we are facing a shortage of qualified and trained health care 
employees, the administration budget this year cut health professions 
training by almost two thirds, $290 million.
  While our State tries to deal with a devastating budget crisis, the 
Administration dramatically reduced funding for the Community 
Development Block Grants on which towns, from Greeley to Grand Junction 
to Denver, depend.
  For the fifth year in a row, the Administration's budget fails to 
fulfill the funding promises made in the No Child Left Behind law, but 
still heaps mandates on local schools.
  Moreover, the proposed budget eliminates low-interest loans for 
students who have the grades but can't afford to go to college and 
eliminates funding for vocational training that many rural Colorado 
students use.
  The proposed budget cuts $250 million from one of the most successful 
small business investment programs and decimates USDA investments in 
rural economic development.
  While we combat methamphetamine production and invest precious 
resources in meth lab clean up, the budget cuts Safe and Drug Free 
School grants, the COPS program by nearly $500 million, and State and 
local homeland security training programs by 60 percent.
  I want to propose two small steps in my effort to reinvest in rural 
America. In coming months I intend to introduce measures to strengthen 
rural law enforcement, revitalize rural health care, invest in Main 
Street, strengthen rural education, help ensure efficient and equitable 
sharing of water resources and underscore the values that shape every 
rural community in Colorado.
  The first bill is on the PILT program. I know that education in rural 
America is funded through a variety of means, including through 
resources passed to rural counties through the Payment in Lieu of Taxes 
program.
  The idea behind the PILT program is simple. It makes sure that local 
communities in States like Colorado--States that have seen large parts 
of land set aside by the Federal Government for public use--do not lose 
valuable resources from foregone property taxes. Those resources fund 
programs from education to law enforcement.
  Unfortunately, this year the administration's budget is again 
proposing to cut that funding. Thanks to the efforts of my Democratic 
and Republican colleagues, such as Senator Bingaman, some of that 
funding has been won back over the last several years, and I am hopeful 
we will do so again this year.
  But our local communities should not have to wait and wonder every 
year whether their resources for schools, roads and law enforcement 
will make it into the budget, and that is why I am introducing a bill 
to make permanent the funding for the payment in lieu of taxes program.
  I am also introducing a bill to increase investment in broadband 
technology in rural communities. Bringing broadband to our rural 
schools will give our students there access to technology that millions 
of other students take for granted. With broadband will come world 
class research and access to AP courses at Colorado's universities. And 
with broadband we will see the economic development for which rural 
Colorado has been waiting.
  The benefits of this investment do not stop in education and 
business. Telehealth is increasingly vital in rural Colorado, held back 
in some cases by the lack of investment in infrastructure. That same 
infrastructure limits investment opportunities in rural communities.
  With this bill I am building on the hard work of others and saying 
that it is long past time for us to invest in the world class broadband 
that rural communities need and are right to expect. My bill does that 
in three ways.
  First, it will establish our Nation's first Rural Broadband Office to 
coordinate all Federal Government resources as they relate to 
broadband.
  Second, it will help broadband providers keep pace with our rapidly 
changing technology.
  And third, it calls on the Congress to live up to its responsibility 
to fully fund rural utilities.
  It has been a long road that has carried me from that ranch in the 
San Luis Valley, growing up as one of eight siblings and proudly 
attending college and law school before having the privilege to serve 
in U.S. Senate.
  In all of this, I have never forgotten where I come from. In my 
office, I have a sign on my desk that reads ``No Farms, No Food.'' 
Every day I look at it, and I am reminded of just how dependent we are 
on the people of rural Colorado, and in rural communities all across 
America.
  At a meeting with leaders from Colorado's farmer and rancher 
community last month, a wheat farmer from southeastern Colorado told me 
this: ``Senator, you'd never believe how

[[Page 3199]]

many farmers refuse to go to the doctor when they get sick. It's not 
that they aren't really sick. It's that they can't afford the doctor.''
  Unfortunately, Mr. President, I do believe that wheat farmer, and I 
know rural America needs our help.
  In America, the most powerful, prosperous, idealistic country the 
world has ever known, we can do better.
  And protecting that way of life--in our churches and town halls, Main 
Streets and living rooms, ranches and independent drug stores--demands 
it. Together, we can make sure that no one anywhere in this country 
feels that he is part of a ``Forgotten America'' any longer.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from New Jersey.
  Mr. CORZINE. Mr. President, I congratulate my colleague from 
Colorado. His maiden speech was as brilliant as his life has been. It 
is an honor to serve with him, when I think about the story of his 
family and its presence and contribution to this country and the power 
with which he speaks for those he represents in rural America. This 
will be one of many speeches that make a great impact on our country. I 
am honored to serve with him and congratulate him on his initial 
voyage.
  Mr. SALAZAR. Mr. President, I appreciate the comments from the 
Senator from New Jersey.
  I ask unanimous consent that the text of the bills be printed in the 
Record.
  There being no objection, the bills were ordered to be printed in the 
Record, as follows:

                                 S. 496

       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 ``PILT and Refuge Revenue 
     Sharing Permanent Funding Act''.

     SEC. 2. PERMANENT FUNDING.

       (a) Payments in Lieu of Taxes.--
       (1) In general.--Section 6906 of title 31, United States 
     Code, is amended to read as follows:

     ``Sec. 6906. Funding

       ``For fiscal year 2006 and each fiscal year thereafter, 
     amounts authorized under this chapter shall be made available 
     to the Secretary of the Interior, out of any amounts in the 
     Treasury not otherwise appropriated and without further 
     appropriation, for obligation or expenditure in accordance 
     with this chapter.''.
       (2) Conforming amendment.--The table of sections for 
     chapter 69 of title 31, United States Code, is amended by 
     striking the item relating to section 6906 and inserting the 
     following:

``6906. Funding.''.

       (b) Refuge Revenue Sharing.--Section 401(d) of the Act of 
     June 15, 1935 (16 U.S.C. 715s(d)) is amended--
       (1) by striking ``If the net receipts'' and inserting the 
     following:
       ``(1) If the net receipts''; and
       (2) by adding at the end the following:
       ``(2) For fiscal year 2006 and each fiscal year thereafter, 
     the amount made available under paragraph (1) shall be made 
     available to the Secretary, out of any funds in the Treasury 
     not otherwise appropriated and without further appropriation, 
     for obligation or expenditure in accordance with this 
     section.''.

                                 S. 497

       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 ``Broadband Rural 
     Revitalization Act of 2005''.

     SEC. 2. RURAL BROADBAND OFFICE.

       (a) Establishment.--There is established within the 
     Department of Commerce, the Rural Broadband Office.
       (b) Duties.--The Office shall coordinate all Federal 
     Government resources as they relate to the expansion of 
     broadband technology into rural areas.
       (c) Report.--Not later than 1 year after the date of the 
     enactment of this Act, and annually thereafter, the Rural 
     Broadband Office shall submit a report to the Congress that--
       (1) assesses the availability of, and access to, broadband 
     technology in rural areas;
       (2) estimates the number of individuals using broadband 
     technology in rural areas;
       (3) estimates the unmet demand for broadband technology in 
     rural areas; and
       (4) sets forth a strategic plan to meet the demand 
     described in paragraph (3).

     SEC. 3. FULL FUNDING FOR RURAL BROADBAND SERVICES.

       It is the sense of Congress that the loan program 
     established in section 4 of the Rural Electrification Act of 
     1936 (7 U.S.C. 901 et seq.), which is essential to the 
     economic well-being of small telecommunications providers and 
     to the quality of life for all rural residents, be funded 
     fully.

     SEC. 4. EXPENSING OF BROADBAND INTERNET ACCESS EXPENDITURES 
                   FOR RURAL COMMUNITIES.

       (a) In General.--Part VI of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to itemized 
     deductions for individuals and corporations) is amended by 
     inserting after section 190 the following new section:

     ``SEC. 191. BROADBAND EXPENDITURES FOR RURAL COMMUNITIES.

       ``(a) Treatment of Expenditures.--
       ``(1) In general.--A taxpayer may elect to treat any 
     qualified broadband expenditure which is paid or incurred by 
     the taxpayer as an expense which is not chargeable to capital 
     account. Any expenditure which is so treated shall be allowed 
     as a deduction.
       ``(2) Election.--An election under paragraph (1) shall be 
     made at such time and in such manner as the Secretary may 
     prescribe by regulation.
       ``(b) Qualified Broadband Expenditures.--For purposes of 
     this section--
       ``(1) In general.--The term `qualified broadband 
     expenditure' means, with respect to any taxable year, any 
     direct or indirect costs incurred and properly taken into 
     account with respect to--
       ``(A) the purchase or installation of qualified equipment 
     (including any upgrades thereto), and
       ``(B) the connection of such qualified equipment to any 
     qualified subscriber.
       ``(2) Certain satellite expenditures excluded.--Such term 
     shall not include any costs incurred with respect to the 
     launching of any satellite equipment.
       ``(3) Leased equipment.--Such term shall include so much of 
     the purchase price paid by the lessor of qualified equipment 
     subject to a lease described in subsection (c)(2)(B) as is 
     attributable to expenditures incurred by the lessee which 
     would otherwise be described in paragraph (1).
       ``(c) When Expenditures Taken Into Account.--For purposes 
     of this section--
       ``(1) In general.--Qualified broadband expenditures with 
     respect to qualified equipment shall be taken into account 
     with respect to the first taxable year in which--
       ``(A) current generation broadband services are provided 
     through such equipment to qualified subscribers, or
       ``(B) next generation broadband services are provided 
     through such equipment to qualified subscribers.
       ``(2) Limitation.--
       ``(A) In general.--Qualified expenditures shall be taken 
     into account under paragraph (1) only with respect to 
     qualified equipment--
       ``(i) the original use of which commences with the 
     taxpayer, and
       ``(ii) which is placed in service, after the date of the 
     enactment of this Act.
       ``(B) Sale-leasebacks.--For purposes of subparagraph (A), 
     if property--
       ``(i) is originally placed in service after the date of the 
     enactment of this Act by any person, and
       ``(ii) sold and leased back by such person within 3 months 
     after the date such property was originally placed in 
     service, such property shall be treated as originally placed 
     in service not earlier than the date on which such property 
     is used under the leaseback referred to in clause (ii).
       ``(d) Special Allocation Rules.--
       ``(1) Current generation broadband services.--For purposes 
     of determining the amount of qualified broadband expenditures 
     under subsection (a)(1) with respect to qualified equipment 
     through which current generation broadband services are 
     provided, if the qualified equipment is capable of serving 
     both qualified subscribers and other subscribers, the 
     qualified broadband expenditures shall be multiplied by a 
     fraction--
       ``(A) the numerator of which is the sum of the number of 
     potential qualified subscribers within the rural areas which 
     the equipment is capable of serving with current generation 
     broadband services, and
       ``(B) the denominator of which is the total potential 
     subscriber population of the area which the equipment is 
     capable of serving with current generation broadband 
     services.
       ``(2) Next generation broadband services.--For purposes of 
     determining the amount of qualified broadband expenditures 
     under subsection (a)(1) with respect to qualified equipment 
     through which next generation broadband services are 
     provided, if the qualified equipment is capable of serving 
     both qualified subscribers and other subscribers, the 
     qualified expenditures shall be multiplied by a fraction--
       ``(A) the numerator of which is the sum of--
       ``(i) the number of potential qualified subscribers within 
     the rural areas, plus
       ``(ii) the number of potential qualified subscribers within 
     the area consisting only of residential subscribers not 
     described in clause (i), which the equipment is capable of 
     serving with next generation broadband services, and
       ``(B) the denominator of which is the total potential 
     subscriber population of the area which the equipment is 
     capable of serving with next generation broadband services.

[[Page 3200]]

       ``(e) Definitions.--For purposes of this section--
       ``(1) Antenna.--The term `antenna' means any device used to 
     transmit or receive signals through the electromagnetic 
     spectrum, including satellite equipment.
       ``(2) Cable operator.--The term `cable operator' has the 
     meaning given such term by section 602(5) of the 
     Communications Act of 1934 (47 U.S.C. 522(5)).
       ``(3) Commercial mobile service carrier.--The term 
     `commercial mobile service carrier' means any person 
     authorized to provide commercial mobile radio service as 
     defined in section 20.3 of title 47, Code of Federal 
     Regulations.
       ``(4) Current generation broadband service.--The term 
     `current generation broadband service' means the transmission 
     of signals at a rate of at least 1,000,000 bits per second to 
     the subscriber and at least 128,000 bits per second from the 
     subscriber.
       ``(5) Multiplexing or demultiplexing.--The term 
     `multiplexing' means the transmission of 2 or more signals 
     over a single channel, and the term `demultiplexing' means 
     the separation of 2 or more signals previously combined by 
     compatible multiplexing equipment.
       ``(6) Next generation broadband service.--The term `next 
     generation broadband service' means the transmission of 
     signals at a rate of at least 22,000,000 bits per second to 
     the subscriber and at least 5,000,000 bits per second from 
     the subscriber.
       ``(7) Nonresidential subscriber.--The term `nonresidential 
     subscriber' means any person who purchases broadband services 
     which are delivered to the permanent place of business of 
     such person.
       ``(8) Open video system operator.--The term `open video 
     system operator' means any person authorized to provide 
     service under section 653 of the Communications Act of 1934 
     (47 U.S.C. 573).
       ``(9) Other wireless carrier.--The term `other wireless 
     carrier' means any person (other than a telecommunications 
     carrier, commercial mobile service carrier, cable operator, 
     open video system operator, or satellite carrier) providing 
     current generation broadband services or next generation 
     broadband service to subscribers through the radio 
     transmission of energy.
       ``(10) Packet switching.--The term `packet switching' means 
     controlling or routing the path of any digitized transmission 
     signal which is assembled into packets or cells.
       ``(11) Provider.--The term `provider' means, with respect 
     to any qualified equipment--
       ``(A) a cable operator,
       ``(B) a commercial mobile service carrier,
       ``(C) an open video system operator,
       ``(D) a satellite carrier,
       ``(E) a telecommunications carrier,
       ``(F) any other wireless carrier, providing current 
     generation broadband services or next generation broadband 
     services to subscribers through such qualified equipment; or
       ``(G) any carrier or operator using any other technology.
       ``(12) Provision of services.--A provider shall be treated 
     as providing services to 1 or more subscribers if--
       ``(A) such a subscriber has been passed by the provider's 
     equipment and can be connected to such equipment for a 
     standard connection fee,
       ``(B) the provider is physically able to deliver current 
     generation broadband services or next generation broadband 
     services, as applicable, to such a subscriber without making 
     more than an insignificant investment with respect to such 
     subscriber,
       ``(C) the provider has made reasonable efforts to make such 
     subscribers aware of the availability of such services,
       ``(D) such services have been purchased by 1 or more such 
     subscribers, and
       ``(E) such services are made available to such subscribers 
     at average prices comparable to those at which the provider 
     makes available similar services in any areas in which the 
     provider makes available such services.
       ``(13) Qualified equipment.--
       ``(A) In general.--The term `qualified equipment' means 
     equipment which provides current generation broadband 
     services or next generation broadband services--
       ``(i) at least a majority of the time during periods of 
     maximum demand to each subscriber who is utilizing such 
     services, and
       ``(ii) in a manner substantially the same as such services 
     are provided by the provider to subscribers through equipment 
     with respect to which no deduction is allowed under 
     subsection (a)(1).
       ``(B) Only certain investment taken into account.--Except 
     as provided in subparagraph (C) or (D), equipment shall be 
     taken into account under subparagraph (A) only to the extent 
     it--
       ``(i) extends from the last point of switching to the 
     outside of the unit, building, dwelling, or office owned or 
     leased by a subscriber in the case of a telecommunications 
     carrier,
       ``(ii) extends from the customer side of the mobile 
     telephone switching office to a transmission/receive antenna 
     (including such antenna) owned or leased by a subscriber in 
     the case of a commercial mobile service carrier,
       ``(iii) extends from the customer side of the headend to 
     the outside of the unit, building, dwelling, or office owned 
     or leased by a subscriber in the case of a cable operator or 
     open video system operator, or
       ``(iv) extends from a transmission/receive antenna 
     (including such antenna) which transmits and receives signals 
     to or from multiple subscribers, to a transmission/receive 
     antenna (including such antenna) on the outside of the unit, 
     building, dwelling, or office owned or leased by a subscriber 
     in the case of a satellite carrier or other wireless carrier, 
     unless such other wireless carrier is also a 
     telecommunications carrier.
       ``(C) Packet switching equipment.--Packet switching 
     equipment, regardless of location, shall be taken into 
     account under subparagraph (A) only if it is deployed in 
     connection with equipment described in subparagraph (B) and 
     is uniquely designed to perform the function of packet 
     switching for current generation broadband services or next 
     generation broadband services, but only if such packet 
     switching is the last in a series of such functions performed 
     in the transmission of a signal to a subscriber or the first 
     in a series of such functions performed in the transmission 
     of a signal from a subscriber.
       ``(D) Multiplexing and demultiplexing equipment.--
     Multiplexing and demultiplexing equipment shall be taken into 
     account under subparagraph (A) only to the extent it is 
     deployed in connection with equipment described in 
     subparagraph (B) and is uniquely designed to perform the 
     function of multiplexing and demultiplexing packets or cells 
     of data and making associated application adaptions, but only 
     if such multiplexing or demultiplexing equipment is located 
     between packet switching equipment described in subparagraph 
     (C) and the subscriber's premises.
       ``(14) Qualified subscriber.--The term `qualified 
     subscriber' means--
       ``(A) with respect to the provision of current generation 
     broadband services--
       ``(i) any nonresidential subscriber maintaining a permanent 
     place of business in a rural area, or
       ``(ii) any residential subscriber residing in a dwelling 
     located in a rural area which is not a saturated market, and
       ``(B) with respect to the provision of next generation 
     broadband services--
       ``(i) any nonresidential subscriber maintaining a permanent 
     place of business in a rural area, or
       ``(ii) any residential subscriber.
       ``(15) Residential subscriber.--The term `residential 
     subscriber' means any individual who purchases broadband 
     services which are delivered to such individual's dwelling.
       ``(16) Rural area.--The term `rural area' means any census 
     tract which--
       ``(A) is not within 5 miles of any incorporated or census 
     designated place containing more than 25,000 people, and
       ``(B) is not within a county or county equivalent which has 
     an overall population density of more than 500 people per 
     square mile of land.
       ``(17) Rural subscriber.--The term `rural subscriber' means 
     any residential subscriber residing in a dwelling located in 
     a rural area or nonresidential subscriber maintaining a 
     permanent place of business located in a rural area.
       ``(18) Satellite carrier.--The term `satellite carrier' 
     means any person using the facilities of a satellite or 
     satellite service licensed by the Federal Communications 
     Commission and operating in the Fixed-Satellite Service under 
     part 25 of title 47 of the Code of Federal Regulations or the 
     Direct Broadcast Satellite Service under part 100 of title 47 
     of such Code to establish and operate a channel of 
     communications for distribution of signals, and owning or 
     leasing a capacity or service on a satellite in order to 
     provide such point-to-multipoint distribution.
       ``(19) Saturated market.--The term `saturated market' means 
     any census tract in which, as of the date of the enactment of 
     this section--
       ``(A) current generation broadband services have been 
     provided by a single provider to 85 percent or more of the 
     total number of potential residential subscribers residing in 
     dwellings located within such census tract, and
       ``(B) such services can be utilized--
       ``(i) at least a majority of the time during periods of 
     maximum demand by each such subscriber who is utilizing such 
     services, and
       ``(ii) in a manner substantially the same as such services 
     are provided by the provider to subscribers through equipment 
     with respect to which no deduction is allowed under 
     subsection (a)(1).
       ``(20) Subscriber.--The term `subscriber' means any person 
     who purchases current generation broadband services or next 
     generation broadband services.
       ``(21) Telecommunications carrier.--The term 
     `telecommunications carrier' has the meaning given such term 
     by section 3(44) of the Communications Act of 1934 (47 U.S.C. 
     153(44)), but--
       ``(A) includes all members of an affiliated group of which 
     a telecommunications carrier is a member, and
       ``(B) does not include a commercial mobile service carrier.
       ``(22) Total potential subscriber population.--The term 
     `total potential subscriber population' means, with respect 
     to

[[Page 3201]]

     any area and based on the most recent census data, the total 
     number of potential residential subscribers residing in 
     dwellings located in such area and potential nonresidential 
     subscribers maintaining permanent places of business located 
     in such area.
       ``(f) Special Rules.--
       ``(1) Property used outside the united states, etc., not 
     qualified.--No expenditures shall be taken into account under 
     subsection (a)(1) with respect to the portion of the cost of 
     any property referred to in section 50(b) or with respect to 
     the portion of the cost of any property specified in an 
     election under section 179.
       ``(2) Basis reduction.--
       ``(A) In general.--For purposes of this title, the basis of 
     any property shall be reduced by the portion of the cost of 
     such property taken into account under subsection (a)(1).
       ``(B) Ordinary income recapture.--For purposes of section 
     1245, the amount of the deduction allowable under subsection 
     (a)(1) with respect to any property which is of a character 
     subject to the allowance for depreciation shall be treated as 
     a deduction allowed for depreciation under section 167.
       ``(3) Coordination with section 38.--No credit shall be 
     allowed under section 38 with respect to any amount for which 
     a deduction is allowed under subsection (a)(1).''.
       (b) Special Rule for Mutual or Cooperative Telephone 
     Companies.--Section 512(b) (relating to modifications) is 
     amended by adding at the end the following new paragraph:
       ``(18) Special rule for mutual or cooperative telephone 
     companies.--A mutual or cooperative telephone company which 
     for the taxable year satisfies the requirements of section 
     501(c)(12)(A) may elect to reduce its unrelated business 
     taxable income for such year, if any, by an amount that does 
     not exceed the qualified broadband expenditures which would 
     be taken into account under section 191 for such year by such 
     company if such company was not exempt from taxation. Any 
     amount which is allowed as a deduction under this paragraph 
     shall not be allowed as a deduction under section 191 and the 
     basis of any property to which this paragraph applies shall 
     be reduced under section 1016(a)(32).''.
       (c) Conforming Amendments.--
       (1) Section 263(a)(1) of the Internal Revenue Code of 1986 
     (relating to capital expenditures) is amended by striking 
     ``or'' at the end of subparagraph (H), by striking the period 
     at the end of subparagraph (I) and inserting ``, or'', and by 
     adding at the end the following new subparagraph:
       ``(J) expenditures for which a deduction is allowed under 
     section 191.''.
       (2) Section 1016(a) of such Code is amended by striking 
     ``and'' at the end of paragraph (30), by striking the period 
     at the end of paragraph (31) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(32) to the extent provided in section 191(f)(2).''.
       (3) The table of sections for part VI of subchapter A of 
     chapter 1 of such Code is amended by inserting after the item 
     relating to section 190 the following new item:

``Sec. 191. Broadband expenditures for rural communities.''.

       (d) Designation of Census Tracts.--
       (1) In general.--The Secretary of the Treasury shall, not 
     later than 90 days after the date of the enactment of this 
     Act, designate and publish those census tracts meeting the 
     criteria described in paragraphs (16) and (22) of section 
     191(e) of the Internal Revenue Code of 1986 (as added by this 
     section). In making such designations, the Secretary of the 
     Treasury shall consult with such other departments and 
     agencies as the Secretary determines appropriate.
       (2) Saturated market.--
       (A) In general.--For purposes of designating and publishing 
     those census tracts meeting the criteria described in 
     subsection (e)(19) of such section 191--
       (i) the Secretary of the Treasury shall prescribe not later 
     than 30 days after the date of the enactment of this Act the 
     form upon which any provider which takes the position that it 
     meets such criteria with respect to any census tract shall 
     submit a list of such census tracts (and any other 
     information required by the Secretary) not later than 60 days 
     after the date of the publication of such form, and
       (ii) the Secretary of the Treasury shall publish an 
     aggregate list of such census tracts and the applicable 
     providers not later than 30 days after the last date such 
     submissions are allowed under clause (i).
       (B) No subsequent lists required.--The Secretary of the 
     Treasury shall not be required to publish any list of census 
     tracts meeting such criteria subsequent to the list described 
     in subparagraph (A)(ii).
       (e) Other Regulatory Matters.--
       (1) Prohibition.--No Federal or State agency or 
     instrumentality shall adopt regulations or ratemaking 
     procedures that would have the effect of eliminating or 
     reducing any deduction or portion thereof allowed under 
     section 191 of the Internal Revenue Code of 1986 (as added by 
     this section) or otherwise subverting the purpose of this 
     section.
       (2) Treasury regulatory authority.--It is the intent of 
     Congress in providing the election to deduct qualified 
     broadband expenditures under section 191 of the Internal 
     Revenue Code of 1986 (as added by this section) to provide 
     incentives for the purchase, installation, and connection of 
     equipment and facilities offering expanded broadband access 
     to the Internet for users in certain rural areas of the 
     United States, as well as to residential users nationwide, in 
     a manner that maintains competitive neutrality among the 
     various classes of providers of broadband services. 
     Accordingly, the Secretary of the Treasury shall prescribe 
     such regulations as may be necessary or appropriate to carry 
     out the purposes of section 191 of such Code, including--
       (A) regulations to determine how and when a taxpayer that 
     incurs qualified broadband expenditures satisfies the 
     requirements of section 191 of such Code to provide broadband 
     services, and
       (B) regulations describing the information, records, and 
     data taxpayers are required to provide the Secretary to 
     substantiate compliance with the requirements of section 191 
     of such Code.
       (f) No Implication Regarding the Need for Next Generation 
     Incentive in Urban Areas.--Nothing in this section shall be 
     construed to imply that an incentive for next generation 
     broadband is not needed in urban areas.
       (g) Effective Date.--The amendments made by this section 
     shall apply to expenditures incurred after the date of the 
     enactment of this Act and before the date which is 12 months 
     after the date of the enactment of this Act.
                                 ______
                                 
      By Mr. BURR (for himself, Ms. Landrieu, and Mr. Lott):
  S. 498. A bill to provide for expansion of electricity transmission 
networks in order to support competitive electricity markets, to ensure 
reliability of electric service, to modernize regulation and for other 
purposes; to the Committee on Energy and Natural Resources.
  Mr. BURR. Mr. President, 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. 498

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Interstate 
     Transmission Act of 2005''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

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

       TITLE I--RELIABLE AND ECONOMIC TRANSMISSION INFRASTRUCTURE

Sec. 101. Transmission infrastructure investment.
Sec. 102. Open nondiscriminatory access.
Sec. 103. Electric transmission property treated as 15-year property.
Sec. 104. Disposition of property.
Sec. 105. Electric reliability standards.

                 TITLE II--PROTECTING RETAIL CONSUMERS

Sec. 201. Native load service obligation.
Sec. 202. Voluntary transmission pricing plans.

      TITLE III--VOLUNTARY PARTICIPATION IN REGIONAL TRANSMISSION 
                             ORGANIZATIONS

Sec. 301. Promotion of voluntary development of regional transmission 
              organizations, independent transmission providers, and 
              similar organizations.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) transmission networks are the backbone of reliable 
     delivery of electric energy and competitive wholesale power 
     markets;
       (2) the expansion, enhancement, and improvement of 
     transmission facilities, and rules of the road for using the 
     facilities, are necessary to maintain and improve the 
     reliability of electric service and to enhance competitive 
     wholesale markets across the United States and competitive 
     retail markets that have been adopted by nearly the States;
       (3) to ensure reliable and efficient expansion, 
     enhancement, and improvement of transmission facilities, the 
     economics of the business of electric transmission and the 
     Federal regulatory structures applicable to the facilities 
     must be improved;
       (4) Federal electricity regulatory policy should benefit 
     consumers by providing incentives for infrastructure 
     improvement and by removing barriers to efficient 
     competition, and not be dictated by the imposition of market 
     structures or costly mandates;
       (5) slow, burdensome, or duplicative reviews of utility 
     mergers are a disincentive to the efficient disposition of 
     utility assets needed to ensure a reliable and efficient 
     infrastructure;
       (6) since efficient competition requires accurate price 
     signals that reflect cost causation, parties that benefit 
     from transmission upgrades should be required to pay for the 
     upgrades;

[[Page 3202]]

       (7) Federal regulation should not override the interests of 
     local consumers or State laws that ensure reliable service 
     and adequate transmission capacity to serve consumers;
       (8) in regions where the formation of regional transmission 
     organizations or similar entities have been formed 
     voluntarily with oversight or approval by States, the Federal 
     Energy Regulatory Commission should have clear authority to 
     approve applications for the organizations that are 
     consistent with the Federal Power Act (16 U.S.C. 791a et 
     seq.);
       (9) the States and electricity consumers in each region of 
     the United States, and not the Federal Government, are in the 
     best position to determine how the electric power systems 
     serving their regions should be structured, including whether 
     Regional Transmission Organization formation, traditional 
     vertical integration, or other structures are cost effective 
     for their region; and
       (10) mandatory reliability rules, developed and enforced by 
     a self-regulating electric reliability organization, are a 
     vital component of a comprehensive policy to ensure a robust 
     and reliable electricity grid.

       TITLE I--RELIABLE AND ECONOMIC TRANSMISSION INFRASTRUCTURE

     SEC. 101. TRANSMISSION INFRASTRUCTURE INVESTMENT.

       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 215. TRANSMISSION INFRASTRUCTURE INVESTMENT.

       ``(a) Rulemaking Requirement.--Within 1 year after the 
     enactment of this section, the Commission shall establish, by 
     rule, incentive-based (including, but not limited to 
     performance-based) rate treatments for the transmission of 
     electric energy in interstate commerce by any public utility 
     for the purpose of benefitting consumers by ensuring 
     reliability and reducing the cost of delivered power by 
     reducing transmission congestion. Such rule shall--
       ``(1) promote reliable and economically efficient 
     transmission and generation of electricity by promoting 
     capital investment in the enlargement, improvement, 
     maintenance and operation of facilities for the transmission 
     of electric energy in interstate commerce;
       ``(2) provide a return on equity, determined using a 
     variety of reasonable valuation methodologies, that attracts 
     new investment in transmission facilities (including related 
     transmission technologies);
       ``(3) encourage deployment of transmission technologies and 
     other measures to increase the capacity and efficiency of 
     existing transmission facilities and improve the operation of 
     such facilities;
       ``(4) allow recovery of all prudently incurred costs 
     necessary to comply with mandatory reliability standards 
     issued pursuant to section 216 of this Act;
       ``(5) allow a current return in rates for construction work 
     in progress for transmission facilities and full recovery of 
     prudently incurred costs for constructing transmission 
     facilities;
       ``(6) allow the use of formula transmission rates;
       ``(7) allow rates of return that do not vary with capital 
     structure; and
       ``(8) allow a maximum 15-year accelerated depreciation on 
     new transmission facilities for rate treatment purposes.
       ``(b) Additional Incentives for RTO Participation.--In the 
     rule issued under this section, the Commission shall, to the 
     extent within its jurisdiction, provide for incentives to 
     each transmitting utility or electric utility that joins a 
     Regional Transmission Organization or Independent System 
     Operator. Incentives provided by the Commission pursuant to 
     such rule shall include--
       ``(1) recovery of all prudently incurred costs to develop 
     and participate in any proposed or approved RTO, ISO, or 
     independent transmission company;
       ``(2) recovery of all costs previously approved by a State 
     commission which exercised jurisdiction over the transmission 
     facilities prior to the utility's participation in the RTO or 
     ISO, including costs necessary to honor preexisting 
     transmission service contracts, in a manner which does not 
     reduce the revenues the utility receives for transmission 
     services for a reasonable transition period after the utility 
     joins the RTO or ISO; and
       ``(3) recovery as an expense in rates of the costs 
     prudently incurred to conduct transmission planning and 
     reliability activities, including the costs of participating 
     in RTO, ISO and other regional planning activities and 
     design, study and other precertification costs involved in 
     seeking permits and approvals for proposed transmission 
     facilities.

     The Commission shall ensure that any costs recoverable 
     pursuant to this subsection may be recovered by such utility 
     through the transmission rates charged by such utility or 
     through the transmission rates charged by the RTO or ISO that 
     provides transmission service to such utility.
       ``(c) Just and Reasonable Rates.--All rates approved under 
     the rules adopted pursuant to this section, including any 
     revisions to such rules, are subject to the requirement of 
     sections 205 and 206 that all rates, charges, terms, and 
     conditions be just and reasonable and not unduly 
     discriminatory or preferential.''.

     SEC. 102. OPEN NONDISCRIMINATORY ACCESS.

       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is 
     amended by inserting after section 211 the following new 
     section:

     ``SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMITTING 
                   UTILITIES.

       ``(a) Transmission Services.--Subject to section 212(h), 
     the Commission may, by rule or order, require an unregulated 
     transmitting utility to provide transmission services--
       ``(1) at rates that are comparable to those that the 
     unregulated transmitting utility charges itself; and
       ``(2) on terms and conditions (not relating to rates) that 
     are comparable to those under which such unregulated 
     transmitting utility provides transmission services to itself 
     and that are not unduly discriminatory or preferential.
       ``(b) Exemption.--The Commission shall exempt from any rule 
     or order under this section any unregulated transmitting 
     utility that--
       ``(1) sells no more than 4,000,000 megawatt hours of 
     electricity per year; or
       ``(2) does not own or operate any transmission facilities 
     that are necessary for operating an interconnected 
     transmission system (or any portion thereof); or
       ``(3) meets other criteria the Commission determines to be 
     in the public interest.
       ``(c) Local Distribution Facilities.--The requirements of 
     subsection (a) shall not apply to facilities used in local 
     distribution.
       ``(d) Exemption Termination.--Whenever the Commission, 
     after an evidentiary hearing held upon a complaint and after 
     giving consideration to reliability standards established 
     under section 216, finds on the basis of a preponderance of 
     the evidence that any exemption granted pursuant to 
     subsection (b) unreasonably impairs the continued reliability 
     of an interconnected transmission system, it shall revoke the 
     exemption granted to that transmitting utility.
       ``(e) Application to Unregulated Transmitting Utilities.--
     The rate changing procedures applicable to public utilities 
     under subsections (c) and (d) of section 205 are applicable 
     to unregulated transmitting utilities for purposes of this 
     section.
       ``(f) Remand.--In exercising its authority under paragraph 
     (1) of subsection (a), the Commission may remand transmission 
     rates to an unregulated transmitting utility for review and 
     revision where necessary to meet the requirements of 
     subsection (a).
       ``(g) Other Requests.--The provision of transmission 
     services under subsection (a) does not preclude a request for 
     transmission services under section 211.
       ``(h) Limitation.--The Commission may not require a State 
     or municipality to take action under this section that would 
     violate a private activity bond rule for purposes of section 
     141 of the Internal Revenue Code of 1986 (26 U.S.C. 141).
       ``(i) Transfer of Control of Transmitting Facilities.--
     Nothing in this section authorizes the Commission to require 
     an unregulated transmitting utility to transfer control or 
     operational control of its transmitting facilities to an RTO 
     or any other Commission-approved independent transmission 
     organization designated to provide nondiscriminatory 
     transmission access.
       ``(j) Definition.--For purposes of this section, the term 
     `unregulated transmitting utility' means an entity that--
       ``(1) owns or operates facilities used for the transmission 
     of electric energy in interstate commerce; and
       ``(2) is an entity described in section 201(f).''.

     SEC. 103. ELECTRIC TRANSMISSION PROPERTY TREATED AS 15-YEAR 
                   PROPERTY.

       (a) In General.--Subparagraph (E) of section 168(e)(3) of 
     the Internal Revenue Code of 1986 (relating to classification 
     of certain property) is amended by striking ``and'' at the 
     end of clause (v), by striking the period at the end of 
     clause (vi) and by inserting ``, and'', and by adding at the 
     end the following new clause:
       ``(vii) any section 1245 property (as defined in section 
     1245(a)(3)) used in the transmission at 69 or more kilovolts 
     of electricity for sale the original use of which commences 
     with the taxpayer after the date of the enactment of this 
     clause.''.
       (b) Alternative System.--The table contained in section 
     168(g)(3)(B) of the Internal Revenue Code of 1986 (relating 
     to special rule for certain property assigned to classes) is 
     amended by inserting after the item relating to subparagraph 
     (E)(vi) the following:

``(E)(vii)........................................................30''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.

     SEC. 104. DISPOSITION OF PROPERTY.

       Section 203 of the Federal Power Act (16 U.S.C. 824b) is 
     repealed.

     SEC. 105. ELECTRIC RELIABILITY STANDARDS.

       (a) In General.--Part II of the Federal Power Act (16 U.S.C 
     824 et seq.) (as amended by section 101) is amended by adding 
     at the end the following:

     ``SEC. 216. ELECTRIC RELIABILITY.

       ``(a) Definitions.--For purposes of this section:

[[Page 3203]]

       ``(1) The term `bulk-power system' means--
       ``(A) facilities and control systems necessary for 
     operating an interconnected electric energy transmission 
     network (or any portion thereof); and
       ``(B) electric energy from generation facilities needed to 
     maintain transmission system reliability.

     The term does not include facilities used in the local 
     distribution of electric energy.
       ``(2) The terms `Electric Reliability Organization' and 
     `ERO' mean the organization certified by the Commission under 
     subsection (c) the purpose of which is to establish and 
     enforce reliability standards for the bulk-power system, 
     subject to Commission review.
       ``(3) The term `reliability standard' means a requirement, 
     approved by the Commission under this section, to provide for 
     reliable operation of the bulk-power system. The term 
     includes requirements for the operation of existing bulk-
     power system facilities and the design of planned additions 
     or modifications to such facilities to the extent necessary 
     to provide for reliable operation of the bulk-power system, 
     but the term does not include any requirement to enlarge such 
     facilities or to construct new transmission capacity or 
     generation capacity.
       ``(4) The term `reliable operation' means operating the 
     elements of the bulk-power system within equipment and 
     electric system thermal, voltage, and stability limits so 
     that instability, uncontrolled separation, or cascading 
     failures of such system will not occur as a result of a 
     sudden disturbance or unanticipated failure of system 
     elements.
       ``(5) The term `Interconnection' means a geographic area in 
     which the operation of bulk-power system components is 
     synchronized such that the failure of 1 or more of such 
     components may adversely affect the ability of the operators 
     of other components within the system to maintain reliable 
     operation of the facilities within their control.
       ``(6) The term `transmission organization' means a Regional 
     Transmission Organization, Independent System Operator, 
     independent transmission provider, or other transmission 
     organization finally approved by the Commission for the 
     operation of transmission facilities.
       ``(7) The term `regional entity' means an entity having 
     enforcement authority pursuant to subsection (e)(4).
       ``(b) Jurisdiction and Applicability.--(1) The Commission 
     shall have jurisdiction, within the United States, over the 
     ERO certified by the Commission under subsection (c), any 
     regional entities, and all users, owners and operators of the 
     bulk-power system, including but not limited to the entities 
     described in section 201(f), for purposes of approving 
     reliability standards established under this section and 
     enforcing compliance with this section. All users, owners and 
     operators of the bulk-power system shall comply with 
     reliability standards that take effect under this section.
       ``(2) The Commission shall issue a final rule to implement 
     the requirements of this section not later than 180 days 
     after the date of enactment of this section.
       ``(c) Certification.--Following the issuance of a 
     Commission rule under subsection (b)(2), any person may 
     submit an application to the Commission for certification as 
     the Electric Reliability Organization. The Commission may 
     certify 1 such ERO if the Commission determines that such 
     ERO--
       ``(1) has the ability to develop and enforce, subject to 
     subsection (e)(2), reliability standards that provide for an 
     adequate level of reliability of the bulk-power system; and
       ``(2) has established rules that--
       ``(A) assure its independence of the users and owners and 
     operators of the bulk-power system, while assuring fair 
     stakeholder representation in the selection of its directors 
     and balanced decisionmaking in any ERO committee or 
     subordinate organizational structure;
       ``(B) allocate equitably reasonable dues, fees, and other 
     charges among end users for all activities under this 
     section;
       ``(C) provide fair and impartial procedures for enforcement 
     of reliability standards through the imposition of penalties 
     in accordance with subsection (e) (including limitations on 
     activities, functions, or operations, or other appropriate 
     sanctions);
       ``(D) provide for reasonable notice and opportunity for 
     public comment, due process, openness, and balance of 
     interests in developing reliability standards and otherwise 
     exercising its duties; and
       ``(E) provide for taking, after certification, appropriate 
     steps to gain recognition in Canada and Mexico.
       ``(d) Reliability Standards.--(1) The Electric Reliability 
     Organization shall file each reliability standard or 
     modification to a reliability standard that it proposes to be 
     made effective under this section with the Commission.
       ``(2) The Commission may approve, by rule or order, a 
     proposed reliability standard or modification to a 
     reliability standard if it determines that the standard is 
     just, reasonable, not unduly discriminatory or preferential, 
     and in the public interest. The Commission shall give due 
     weight to the technical expertise of the Electric Reliability 
     Organization with respect to the content of a proposed 
     standard or modification to a reliability standard and to the 
     technical expertise of a regional entity organized on an 
     Interconnection-wide basis with respect to a reliability 
     standard to be applicable within that Interconnection, but 
     shall not defer with respect to the effect of a standard on 
     competition. A proposed standard or modification shall take 
     effect upon approval by the Commission.
       ``(3) The Electric Reliability Organization shall 
     rebuttably presume that a proposal from a regional entity 
     organized on an Interconnection-wide basis for a reliability 
     standard or modification to a reliability standard to be 
     applicable on an Interconnection-wide basis is just, 
     reasonable, and not unduly discriminatory or preferential, 
     and in the public interest.
       ``(4) The Commission shall remand to the Electric 
     Reliability Organization for further consideration a proposed 
     reliability standard or a modification to a reliability 
     standard that the Commission disapproves in whole or in part.
       ``(5) The Commission, upon its own motion or upon 
     complaint, may order the Electric Reliability Organization to 
     submit to the Commission a proposed reliability standard or a 
     modification to a reliability standard that addresses a 
     specific matter if the Commission considers such a new or 
     modified reliability standard appropriate to carry out this 
     section.
       ``(6) The final rule adopted under subsection (b)(2) shall 
     include fair processes for the identification and timely 
     resolution of any conflict between a reliability standard and 
     any function, rule, order, tariff, rate schedule, or 
     agreement accepted, approved, or ordered by the Commission 
     applicable to a transmission organization. Such transmission 
     organization shall continue to comply with such function, 
     rule, order, tariff, rate schedule or agreement accepted 
     approved, or ordered by the Commission until--
       ``(A) the Commission finds a conflict exists between a 
     reliability standard and any such provision;
       ``(B) the Commission orders a change to such provision 
     pursuant to section 206 of this part; and
       ``(C) the ordered change becomes effective under this part.

     If the Commission determines that a reliability standard 
     needs to be changed as a result of such a conflict, it shall 
     order the ERO to develop and file with the Commission a 
     modified reliability standard under paragraph (4) or (5) of 
     this subsection.
       ``(e) Enforcement.--(1) The ERO may impose, subject to 
     paragraph (2), a penalty on a user or owner or operator of 
     the bulk-power system for a violation of a reliability 
     standard approved by the Commission under subsection (d) if 
     the ERO, after notice and an opportunity for a hearing--
       ``(A) finds that the user or owner or operator has violated 
     a reliability standard approved by the Commission under 
     subsection (d); and
       ``(B) files notice and the record of the proceeding with 
     the Commission.
       ``(2) A penalty imposed under paragraph (1) may take effect 
     not earlier than the 31st day after the ERO files with the 
     Commission notice of the penalty and the record of 
     proceedings. Such penalty shall be subject to review by the 
     Commission, on its own motion or upon application by the 
     user, owner or operator that is the subject of the penalty 
     filed within 30 days after the date such notice is filed with 
     the Commission. Application to the Commission for review, or 
     the initiation of review by the Commission on its own motion, 
     shall not operate as a stay of such penalty unless the 
     Commission otherwise orders upon its own motion or upon 
     application by the user, owner or operator that is the 
     subject of such penalty. In any proceeding to review a 
     penalty imposed under paragraph (1), the Commission, after 
     notice and opportunity for hearing (which hearing may consist 
     solely of the record before the ERO and opportunity for the 
     presentation of supporting reasons to affirm, modify, or set 
     aside the penalty), shall by order affirm, set aside, 
     reinstate, or modify the penalty, and, if appropriate, remand 
     to the ERO for further proceedings. The Commission shall 
     implement expedited procedures for such hearings.
       ``(3) On its own motion or upon complaint, the Commission 
     may order compliance with a reliability standard and may 
     impose a penalty against a user or owner or operator of the 
     bulk-power system if the Commission finds, after notice and 
     opportunity for a hearing, that the user or owner or operator 
     of the bulk-power system has engaged or is about to engage in 
     any acts or practices that constitute or will constitute a 
     violation of a reliability standard.
       ``(4) The Commission shall issue regulations authorizing 
     the ERO to enter into an agreement to delegate authority to a 
     regional entity for the purpose of proposing reliability 
     standards to the ERO and enforcing reliability standards 
     under paragraph (1) if--
       ``(A) the regional entity is governed by--
       ``(i) an independent board;
       ``(ii) a balanced stakeholder board; or
       ``(iii) a combination independent and balanced stakeholder 
     board.
       ``(B) the regional entity otherwise satisfies the 
     provisions of subsection (c)(1) and (2); and

[[Page 3204]]

       ``(C) the agreement promotes effective and efficient 
     administration of bulk-power system reliability.

     The Commission may modify such delegation. The ERO and the 
     Commission shall rebuttably presume that a proposal for 
     delegation to a regional entity organized on an 
     Interconnection-wide basis promotes effective and efficient 
     administration of bulk-power system reliability and should be 
     approved. Such regulation may provide that the Commission may 
     assign the ERO's authority to enforce reliability standards 
     under paragraph (1) directly to a regional entity consistent 
     with the requirements of this paragraph.
       ``(5) The Commission may take such action as is necessary 
     or appropriate against the ERO or a regional entity to ensure 
     compliance with a reliability standard or any Commission 
     order affecting the ERO or a regional entity.
       ``(6) Any penalty imposed under this section shall bear a 
     reasonable relation to the seriousness of the violation and 
     shall take into consideration the efforts of such user, 
     owner, or operator to remedy the violation in a timely 
     manner.
       ``(f) Changes in Electric Reliability Organization Rules.--
     The Electric Reliability Organization shall file with the 
     Commission for approval any proposed rule or proposed rule 
     change, accompanied by an explanation of its basis and 
     purpose. The Commission, upon its own motion or complaint, 
     may propose a change to the rules of the ERO. A proposed rule 
     or proposed rule change shall take effect upon a finding by 
     the Commission, after notice and opportunity for comment, 
     that the change is just, reasonable, not unduly 
     discriminatory or preferential, is in the public interest, 
     and satisfies the requirements of subsection (c).
       ``(g) Reliability Reports.--The ERO shall conduct periodic 
     assessments of the reliability and adequacy of the bulk-power 
     system in North America.
       ``(h) Coordination With Canada and Mexico.--The President 
     is urged to negotiate international agreements with the 
     governments of Canada and Mexico to provide for effective 
     compliance with reliability standards and the effectiveness 
     of the ERO in the United States and Canada or Mexico.
       ``(i) Savings Provisions.--(1) The ERO shall have authority 
     to develop and enforce compliance with reliability standards 
     for only the bulk-power system.
       ``(2) This section does not authorize the ERO or the 
     Commission to order the construction of additional generation 
     or transmission capacity or to set and enforce compliance 
     with standards for adequacy or safety of electric facilities 
     or services.
       ``(3) Nothing in this section shall be construed to preempt 
     any authority of any State to take action to ensure the 
     safety, adequacy, and reliability of electric service within 
     that State, as long as such action is not inconsistent with 
     any reliability standard.
       ``(4) Within 90 days of the application of the Electric 
     Reliability Organization or other affected party, and after 
     notice and opportunity for comment, the Commission shall 
     issue a final order determining whether a State action is 
     inconsistent with a reliability standard, taking into 
     consideration any recommendation of the ERO.
       ``(5) The Commission, after consultation with the ERO and 
     the State taking action, may stay the effectiveness of any 
     State action, pending the Commission's issuance of a final 
     order.
       ``(j) Regional Advisory Bodies.--The Commission shall 
     establish a regional advisory body on the petition of at 
     least \2/3\ of the States within a region that have more than 
     \1/2\ of their electric load served within the region. A 
     regional advisory body shall be composed of 1 member from 
     each participating State in the region, appointed by the 
     Governor of each State, and may include representatives of 
     agencies, States, and provinces outside the United States. A 
     regional advisory body may provide advice to the Electric 
     Reliability Organization, a regional entity, or the 
     Commission regarding the governance of an existing or 
     proposed regional entity within the same region, whether a 
     standard proposed to apply within the region is just, 
     reasonable, not unduly discriminatory or preferential, and in 
     the public interest, whether fees proposed to be assessed 
     within the region are just, reasonable, not unduly 
     discriminatory or preferential, and in the public interest 
     and any other responsibilities requested by the Commission. 
     The Commission may give deference to the advice of any such 
     regional advisory body if that body is organized on an 
     Interconnection-wide basis.
       ``(k) Alaska and Hawaii.--The provisions of this section do 
     not apply to Alaska or Hawaii.''.
       (b) Status of ERO.--The Electric Reliability Organization 
     certified by the Federal Energy Regulatory Commission under 
     section 216(c) of the Federal Power Act and any regional 
     entity delegated enforcement authority pursuant to section 
     216(e)(4) of that Act are not departments, agencies, or 
     instrumentalities of the United States Government.

                 TITLE II--PROTECTING RETAIL CONSUMERS

     SEC. 201. NATIVE LOAD SERVICE OBLIGATION.

       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) 
     (as amended by section 105(a)) is amended by adding at the 
     end the following:

     ``SEC. 217. NATIVE LOAD SERVICE OBLIGATION.

       ``(a) Meeting Service Obligations.--(1) Any load-serving 
     entity that, as of the date of enactment of this section--
       ``(A) owns generation facilities, markets the output of 
     Federal generation facilities, or holds rights under 1 or 
     more wholesale contracts to purchase electric energy, for the 
     purpose of meeting a service obligation, and
       ``(B) by reason of ownership of transmission facilities, or 
     1 or more contracts or service agreements for firm 
     transmission service, holds firm transmission rights for 
     delivery of the output of such generation facilities or such 
     purchased energy to meet such service obligation, is entitled 
     to use such firm transmission rights, or, equivalent tradable 
     or financial transmission rights, in order to deliver such 
     output or purchased energy, or the output of other generating 
     facilities or purchased energy to the extent deliverable 
     using such rights, to the extent required to meet its service 
     obligation.
       ``(2) To the extent that all or a portion of the service 
     obligation covered by such firm transmission rights or 
     equivalent tradable or financial transmission rights is 
     transferred to another load-serving entity, the successor 
     load-serving entity shall be entitled to use the firm 
     transmission rights or equivalent tradable or financial 
     transmission rights associated with the transferred service 
     obligation. Subsequent transfers to another load-serving 
     entity, or back to the original load-serving entity, shall be 
     entitled to the same rights.
       ``(3) The Commission shall exercise its authority under 
     this Act in a manner that facilitates the planning and 
     expansion of transmission facilities to meet the reasonable 
     needs of load-serving entities to satisfy their service 
     obligations.
       ``(b) Allocation of Transmission Rights.--Nothing in this 
     section shall affect any methodology approved by the 
     Commission prior to September 15, 2003, for the allocation of 
     transmission rights by an RTO or ISO that has been authorized 
     by the Commission to allocate transmission rights.
       ``(c) Certain Transmission Rights.--The Commission may 
     exercise authority under this Act to make transmission rights 
     not used to meet an obligation covered by subsection (a) 
     available to other entities in a manner determined by the 
     Commission to be just, reasonable, and not unduly 
     discriminatory or preferential.
       ``(d) Obligation To Build.--Nothing in this Act shall 
     relieve a load-serving entity from any obligation under State 
     or local law to build transmission or distribution facilities 
     adequate to meet its service obligations.
       ``(e) Contracts.--Nothing in this section shall provide a 
     basis for abrogating any contract or service agreement for 
     firm transmission service or rights in effect as of the date 
     of the enactment of this subsection.
       ``(f) Water Pumping Facilities.--The Commission shall 
     ensure that any entity described in section 201(f) that owns 
     transmission facilities used predominately to support its own 
     water pumping facilities shall have, with respect to such 
     facilities, protections for transmission service comparable 
     to those provided to load-serving entities pursuant to this 
     section.
       ``(g) ERCOT.--This section shall not apply within the area 
     referred to in section 212(k)(2)(A).
       ``(h) Jurisdiction.--This section does not authorize the 
     Commission to take any action not otherwise within its 
     jurisdiction.
       ``(i) Effect of Exercising Rights.--An entity that lawfully 
     exercises rights granted under subsection (a) shall not be 
     considered by such action as engaging in undue discrimination 
     or preference under this Act.
       ``(j) Definitions.--For purposes of this section:
       ``(1) The term `distribution utility' means an electric 
     utility that has a service obligation to end-users or to a 
     State utility or electric cooperative that, directly or 
     indirectly, through 1 or more additional State utilities or 
     electric cooperatives, provides electric service to end-
     users.
       ``(2) The term `load-serving entity' means a distribution 
     utility or an electric utility that has a service obligation.
       ``(3) The term `service obligation' means a requirement 
     applicable to, or the exercise of authority granted to, an 
     electric utility under Federal, State or local law or under 
     long-term contracts to provide electric service to end-users 
     or to a distribution utility.
       ``(4) The term `State utility' means a State or any 
     political subdivision of a State, or any agency, authority, 
     or instrumentality of any 1 or more of the foregoing, or a 
     corporation which is wholly owned, directly or indirectly, by 
     any 1 or more of the foregoing, competent to carry on the 
     business of developing, transmitting, utilizing or 
     distributing power.''.

     SEC. 202. VOLUNTARY TRANSMISSION PRICING PLANS.

       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) 
     (as amended by section 201) is amended by adding at the end 
     the following:

     ``SEC. 218. VOLUNTARY TRANSMISSION PRICING PLANS.

       ``(a) In General.--Any transmission provider, including an 
     RTO or ISO, may submit

[[Page 3205]]

     to the Commission a plan or plans under section 205 
     containing the criteria for determining the person or persons 
     that will be required to pay for any construction of new 
     transmission facilities or expansion, modification or upgrade 
     of transmission facilities (in this section referred to as 
     `transmission service related expansion') or new generator 
     interconnection.
       ``(b) Voluntary Transmission Pricing Plans.--(1) Any plan 
     or plans submitted under subsection (a) shall specify the 
     method or methods by which costs may be allocated or 
     assigned. Such methods may include, but are not limited to:
       ``(A) directly assigned;
       ``(B) participant funded; or
       ``(C) rolled into regional or sub-regional rates.
       ``(2) FERC shall approve a plan or plans submitted under 
     subparagraph (B) of paragraph (1) if such plan or plans--
       ``(A) result in rates that are just and reasonable and not 
     unduly discriminatory or preferential consistent with section 
     205; and
       ``(B) ensure that the costs of any transmission service 
     related expansion or new generator interconnection not 
     required to meet applicable reliability standards established 
     under section 216 are assigned in a fair manner, meaning that 
     those who benefit from the transmission service related 
     expansion or new generator interconnection pay an appropriate 
     share of the associated costs, provided that--
       ``(i) costs may not be assigned or allocated to an electric 
     utility if the native load customers of that utility would 
     not have required such transmission service related expansion 
     or new generator interconnection absent the request for 
     transmission service related expansion or new generator 
     interconnection that necessitated the investment;
       ``(ii) the party requesting such transmission service 
     related expansion or new generator interconnection shall not 
     be required to pay for both--
       ``(I) the assigned cost of the upgrade; and
       ``(II) the difference between--

       ``(aa) the embedded cost paid for transmission services 
     (including the cost of the requested upgrade); and
       ``(bb) the embedded cost that would have been paid absent 
     the upgrade; and

       ``(iii) the party or parties who pay for facilities 
     necessary for the transmission service related expansion or 
     new generator interconnection receives full compensation for 
     its costs for the participant funded facilities in the form 
     of--
       ``(I) monetary credit equal to the cost of the participant 
     funded facilities (accounting for the time value of money at 
     the Gross Domestic Product deflator), which credit shall be 
     pro-rated in equal installments over a period of not more 
     than 30 years and shall not exceed in total the amount of the 
     initial investment, against the transmission charges that the 
     funding entity or its assignee is otherwise assessed by the 
     transmission provider;
       ``(II) appropriate financial or physical rights; or
       ``(III) any other method of cost recovery or compensation 
     approved by the Commission.
       ``(3) A plan submitted under this section shall apply only 
     to--
       ``(A) a contract or interconnection agreement executed or 
     filed with the Commission after the date of enactment of this 
     section; or
       ``(B) an interconnection agreement pending rehearing as of 
     November 1, 2003.
       ``(4) Nothing in this section diminishes or alters the 
     rights of individual members of an RTO or ISO under this Act.
       ``(5) Nothing in this section shall affect the allocation 
     of costs or the cost methodology employed by an RTO or ISO 
     authorized by the Commission to allocate costs (including 
     costs for transmission service related expansion or new 
     generator interconnection) prior to the date of enactment of 
     this section.
       ``(6) This section shall not apply within the area referred 
     to in section 212(k)(2)(A).
       ``(7) The term `transmission provider' means a public 
     utility that owns or operates facilities that provide 
     interconnection or transmission service in interstate 
     commerce.''.

      TITLE III--VOLUNTARY PARTICIPATION IN REGIONAL TRANSMISSION 
                             ORGANIZATIONS

     SEC. 301. PROMOTION OF VOLUNTARY DEVELOPMENT OF REGIONAL 
                   TRANSMISSION ORGANIZATIONS, INDEPENDENT 
                   TRANSMISSION PROVIDERS, AND SIMILAR 
                   ORGANIZATIONS.

       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) 
     (as amended by section 202) is amended by adding at the end 
     thereof the following new section:

     ``SEC. 219. PROMOTION OF VOLUNTARY DEVELOPMENT OF REGIONAL 
                   TRANSMISSION ORGANIZATIONS, INDEPENDENT 
                   TRANSMISSION PROVIDERS, AND SIMILAR 
                   ORGANIZATIONS.

       ``(a) In General.--The Commission may approve and may 
     encourage the formation of regional transmission 
     organizations, independent transmission providers, and 
     similar organizations (referred to in this section as 
     `transmission organizations') for the purpose of enhancing 
     the transmission of electric energy in interstate commerce. 
     Among options for the formation of a transmission 
     organization, the Commission shall prefer those in which--
       ``(1) participation in the organization by transmitting 
     utilities is voluntary;
       ``(2) the form, structure, and operating entity of the 
     organization are approved of by participating transmitting 
     utilities; and
       ``(3) market incentives exist to promote investment for 
     expansion of transmission facilities and for the introduction 
     of new transmission technologies within the territory of the 
     organization.
       ``(b) Conditions.--No order issued under this Act shall be 
     conditioned upon or require a transmitting utility to 
     transfer operational control of jurisdictional facilities to 
     an independent system operator or other transmission 
     organization.
       ``(c) Complaint.--In addition to any other rights or 
     remedies it may have under this Act, any entity serving 
     electric load that is denied services by a transmission 
     organization that the transmission organization makes 
     available to other load serving entities shall be entitled to 
     file a complaint with the Commission concerning the denial of 
     such services. If the Commission shall find, after an 
     evidentiary hearing on the record, that the denial of 
     services complained of was unjust, unreasonable, unduly 
     discriminatory or preferential, or contrary to the public 
     interest, the Commission may order the provision of such 
     services at rates and on terms and conditions that shall be 
     in accordance with this Act.''.
                                 ______
                                 
      By Mr. DODD:
  S. 499. A bill to amend the Consumer Credit Protection Act to ban 
abusive credit practices, enhance consumer disclosures, protect 
underage consumers, and for other purposes; to the Committee on 
Banking, Housing, and Urban Affairs.
  Mr. DODD. Mr. President, I rise today to introduce legislation, the 
Credit CARD Act of 2005 (the Credit Card Accountability Responsibility 
and Disclosure Act of 2005), designed to protect our Nation's consumers 
from the predatory practices of the credit card industry.
  The Credit CARD Act is substantially the same as legislation I 
previously introduced in the 108th Congress. As the Senate considers 
bankruptcy reform legislation, which I believe will adversely impact 
consumers and inappropriately reward the credit card industry, the 
Credit CARD Act is needed now more than ever before.
  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. 499

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       This Act may be cited as the ``Credit Card Accountability 
     Responsibility and Disclosure Act of 2005'' or the ``Credit 
     CARD Act of 2005''.

     SEC. 2. REGULATORY AUTHORITY.

       The Board of Governors of the Federal Reserve System may 
     issue such rules or publish such model forms as it considers 
     necessary to carry out this Act and the amendments made by 
     this Act.

                       TITLE I--ABUSIVE PRACTICES

                   Subtitle A--Use of Default Clauses

     SEC. 111. PRIOR NOTICE OF RATE INCREASES REQUIRED.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is 
     amended by adding at the end the following:
       ``(h) Advance Notice of Increase in Interest Rate 
     Required.--
       ``(1) In general.--In the case of any credit card account 
     under an open end consumer credit plan, no increase in any 
     annual percentage rate of interest (other than an increase 
     due to the expiration of any introductory percentage rate of 
     interest, or due solely to a change in another rate of 
     interest to which such rate is indexed)--
       ``(A) may take effect before the beginning of the billing 
     cycle which begins not less than 15 days after the obligor 
     receives notice of such increase; or
       ``(B) may apply to any outstanding balance of credit under 
     such plan as of the date of the notice of the increase 
     required under paragraph (1).
       ``(2) Notice of right to cancel.--The notice referred to in 
     paragraph (1) with respect to an increase in any annual 
     percentage rate of interest shall be made in a clear and 
     conspicuous manner and shall contain a brief statement of the 
     right of the obligor to cancel the account before the 
     effective date of the increase.''.

     SEC. 112. FREEZE ON INTEREST RATE TERMS AND FEES ON CANCELED 
                   CARDS.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637), 
     as amended by this Act, is amended by adding at the end the 
     following:
       ``(i) Freeze on Interest Rate Terms and Fees on Canceled 
     Cards.--If an obligor referred to in subsection (h) closes or 
     cancels a credit card account before the beginning of

[[Page 3206]]

     the billing cycle referred to in subsection (h)(1)--
       ``(1) an annual percentage rate of interest applicable 
     after the cancellation with respect to the outstanding 
     balance on the account as of the date of cancellation may not 
     exceed any annual percentage rate of interest applicable with 
     respect to such balance under the terms and conditions in 
     effect before the date of the notice of any increase referred 
     to in subsection (h)(1); and
       ``(2) the repayment of the outstanding balance after the 
     cancellation shall be subject to all other terms and 
     conditions applicable with respect to such account before the 
     date of the notice of the increase referred to in subsection 
     (h).''.

     SEC. 113. LIMITS ON FINANCE AND INTEREST CHARGES FOR ON-TIME 
                   PAYMENTS.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637), 
     as amended by this Act, is amended by adding at the end the 
     following:
       ``(j) Prohibition on Penalties for On-Time Payments.--
       ``(1) Prohibition on finance charges for on-time 
     payments.--In the case of any credit card account under an 
     open end credit plan, where no other balance is owing on the 
     account, no finance or interest charge may be imposed with 
     regard to any amount of a new extension of credit that was 
     paid on or before the date on which it was due.
       ``(2) Prohibition on cancellation or additional fees for 
     on-time payments or payment in full.--In the case of any 
     credit card account under an open end consumer credit plan, 
     no fee or other penalty may be imposed on the consumer in 
     connection with the payment in full of an existing account 
     balance, or payment of more than the minimum required payment 
     of an existing account balance.''.

     SEC. 114. PROHIBITION ON OVER-THE-LIMIT FEES FOR CREDITOR-
                   APPROVED TRANSACTIONS.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637), 
     as amended by this Act, is amended by adding at the end the 
     following:
       ``(k) Limitation on Imposition of Over-the-Limit Fees.--In 
     the case of any credit card account under an open end 
     consumer credit plan, a creditor may not impose any fees on 
     the obligor for any extension of credit in excess of the 
     amount of credit authorized to be extended with respect to 
     such account, if the extension of credit is made in 
     connection with a credit transaction which the creditor 
     approves in advance or at the time of the transaction.''.

                TITLE II--ENHANCED CONSUMER DISCLOSURES

     SEC. 211. DISCLOSURES RELATED TO ``TEASER RATES''.

       Section 127(c) of the Truth in Lending Act (15 U.S.C. 
     1637(c)) is amended--
       (1) by redesignating paragraph (5) as paragraph (7); and
       (2) by inserting after paragraph (4) the following:
       ``(5) Additional notice concerning `teaser rates'.--
       ``(A) In general.--An application or solicitation for a 
     credit card for which a disclosure is required under this 
     subsection shall contain the disclosures referred to in 
     subparagraph (B) or (C), as applicable, if the application or 
     solicitation offers, for an introductory period of less than 
     1 year, an annual percentage rate of interest that--
       ``(i) is less than the annual percentage rate of interest 
     which will apply after the end of the introductory period; or
       ``(ii) in the case of an annual percentage rate which 
     varies in accordance with an index, is less than the current 
     annual percentage rate under the index which will apply after 
     the end of the introductory period.
       ``(B) Fixed annual percentage rate.--If the annual 
     percentage rate which will apply after the end of the 
     introductory period will be a fixed rate, the application or 
     solicitation shall include the following disclosure: `The 
     annual percentage rate of interest applicable during the 
     introductory period is not the annual percentage rate which 
     will apply after the end of the introductory period. The non-
     introductory annual percentage rate will apply after [insert 
     applicable date] and will be [insert applicable percentage 
     rate].'.
       ``(C) Variable annual percentage rate.--If the annual 
     percentage rate which will apply after the end of the 
     introductory period will vary in accordance with an index, 
     the application or solicitation shall include the following 
     disclosure: `The annual percentage rate of interest 
     applicable during the introductory period is not the annual 
     percentage rate which will apply after the end of the 
     introductory period. The permanent annual percentage rate 
     will be determined by an index and will apply after [insert 
     applicable date]. If the index which will apply after such 
     date were applied to your account today, the annual 
     percentage rate would be [insert applicable percentage 
     rate].'.
       ``(D) Conditions for introductory rates.--If the annual 
     percentage rate of interest which will apply during the 
     introductory period described in subparagraph (A) is 
     revocable or otherwise conditioned upon any action by the 
     obligor, including any failure by the obligor to pay the 
     minimum payment amount or finance charge or to make any 
     payment by the stated monthly payment due date, the 
     application or solicitation shall include a disclosure of--
       ``(i) the conditions that the obligor must meet in order to 
     retain the annual percentage rate of interest during the 
     introductory period; and
       ``(ii) the annual percentage rate of interest that will 
     apply as a result of the failure of the obligor to meet such 
     conditions.
       ``(E) Form of disclosures.--The disclosures required under 
     this paragraph shall be made in a clear and conspicuous 
     manner, in a format that is at least as prominent as the 
     disclosure of the annual percentage rate of interest which 
     will apply during the introductory period.''.

     SEC. 212. PAYOFF TIMING DISCLOSURES.

       (a) In General.--Section 127(b) of the Truth in Lending Act 
     (15 U.S.C. 1637(b)) is amended by adding at the end the 
     following:
       ``(11)(A) Repayment information that would apply to the 
     outstanding balance of the consumer under the credit plan, 
     including--
       ``(i) the outstanding balance in the account at the 
     beginning of the statement period, as required by paragraph 
     (1) of this subsection;
       ``(ii) the required minimum monthly payment on that 
     balance, represented as both a dollar figure and as a 
     percentage of that balance;
       ``(iii) the due date, within which, payment must be made to 
     avoid addition charges, as required by paragraph (9) of this 
     subsection;
       ``(iv) the number of months (rounded to the nearest month) 
     that it would take to pay the entire amount of that balance, 
     if the consumer pays only the required minimum monthly 
     payments and if no further advances are made;
       ``(v) the total cost to the consumer, including interest 
     and principal payments, of paying that balance in full, if 
     the consumer pays only the required minimum monthly payments 
     and if no further advances are made; and
       ``(vi) the monthly payments amount that would be required 
     for the consumer to eliminate the outstanding balance in 36 
     months if no further advances are made.
       ``(B)(i) Subject to clause (ii), in making the disclosures 
     under subparagraph (A) the creditor shall apply the interest 
     rate in effect on the date on which the disclosure is made 
     until the date on which the balance would be paid in full.
       ``(ii) If the interest rate in effect on the date on which 
     the disclosure is made is a temporary rate that will change 
     under a contractual provision applying an index or formula 
     for subsequent interest rate adjustment, the creditor shall 
     apply the interest rate in effect on the date on which the 
     disclosure is made for as long as that interest rate will 
     apply under that contractual provision, and then apply an 
     interest rate based on the index or formula in effect on the 
     applicable billing date.
       ``(C) Form of disclosure.--
       ``(i) In general.--All of the information described in 
     subparagraph (A) shall--
       ``(I) be disclosed in the form and manner which the Board 
     shall prescribe by regulations; and
       ``(II) be placed in a conspicuous and prominent location on 
     the billing statement in typeface that is at least as large 
     as the largest type on the statement, but in no instance less 
     than 12-point in size.
       ``(D) Tabular format.--
       ``(i) Form of table to be prescribed.--In the regulations 
     prescribed under subparagraph (C), the Board shall require 
     that the disclosure of such information shall be in the form 
     of a table that--
       ``(I) contains clear and concise headings for each item of 
     such information; and
       ``(II) provides a clear and concise form stating each item 
     of information required to be disclosed under each such 
     heading.
       ``(E) Requirements regarding location and order of table.--
     In prescribing the form of the table under subparagraph (D), 
     the Board shall require that--
       ``(i) all of the information in the table, and not just a 
     reference to the table, be placed on the billing statement, 
     as required by this subparagraph; and
       ``(ii) the items required to be included in the table shall 
     be listed in the order in which such items are set forth in 
     subparagraph (A).
       ``(F) Board discretion in prescribing order and wording of 
     table.--In prescribing the form of the table under 
     subparagraph (C), the Board shall--
       ``(i) employ terminology which is different than the 
     terminology which is employed in subparagraph (A), if such 
     terminology is easily understood and conveys substantially 
     the same meaning.''.
       (b) Civil Liability.--Section 130(a) of the Truth in 
     Lending Act (15 U.S.C. 1640(a)) is amended, in the 
     undesignated paragraph following paragraph (4), by striking 
     the second sentence and inserting the following: ``In 
     connection with the disclosures referred to in subsections 
     (a) and (b) of section 127, a creditor shall have a liability 
     determined under paragraph (2) only for failing to comply 
     with the requirements of section 125, 127(a), or paragraph 
     (4), (5), (6), (7), (8), (9), (10), or (11) of section 
     127(b), or for failing to comply with disclosure requirements 
     under State law for any term or item that the Board has 
     determined to be substantially the same in meaning under 
     section 111(a)(2) as

[[Page 3207]]

     any of the terms or items referred to in section 127(a), or 
     paragraph (4), (5), (6), (7), (8), (9), (10), or (11) of 
     section 127(b).

     SEC. 213. REQUIREMENTS RELATING TO LATE PAYMENT DEADLINES AND 
                   PENALTIES.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637), 
     as amended by this Act, is amended by adding at the end the 
     following:
       ``(l) Requirements Relating to Late Payment Deadlines and 
     Penalties.--
       ``(1) Late payment deadline and postmark date required to 
     be disclosed.--In the case of a credit card account under an 
     open end consumer credit plan under which a late fee or 
     charge may be imposed due to the failure of the obligor to 
     make payment on or before the due date for such payment, the 
     periodic statement required under subsection (b) with respect 
     to the account shall include, in a conspicuous location on 
     the billing statement--
       ``(A) the date on which the payment is due or, if 
     different, the date on which a late payment fee will be 
     charged, together with the amount of the fee or charge to be 
     imposed if payment is made after that date;
       ``(B) the date by which the payment must be postmarked, if 
     paid by mail, in order to avoid the imposition of a late 
     payment fee with respect to the payment; and
       ``(C) a statement that no late fee may be imposed in 
     connection with a payment made by mail which was postmarked 
     on or before the postmark date.
       ``(2) Disclosure of increase in interest rates for late 
     payments.--If 1 or more late payments under an open end 
     consumer credit plan may result in an increase in the annual 
     percentage rate the account, the statement required under 
     subsection (b) with respect to the account shall include 
     conspicuous notice of such fact, together with the applicable 
     penalty annual percentage rate, in close proximity to the 
     disclosure required in paragraph (1) of the date on which 
     payment is due under the terms of the account.
       ``(3) Requirements relating to postmark date.--
       ``(A) In general.--The date included in a periodic 
     statement pursuant to paragraph (1)(B) with regard to the 
     postmark on a payment shall allow, in accordance with 
     regulations prescribed by the Board under subparagraph (B), a 
     reasonable time for the consumer to make the payment and a 
     reasonable time for the delivery of the payment by the due 
     date.
       ``(B) Board regulations.--The Board shall prescribe 
     guidelines for determining a reasonable period of time for 
     making a payment and delivery of a payment for purposes of 
     subparagraph (A), after consultation with the Postmaster 
     General and representatives of consumer and trade 
     organizations.
       ``(4) Payment at local branches.--If the creditor, in the 
     case of a credit card account referred to in paragraph (1), 
     is a financial institution which maintains branches or 
     offices at which payments on any such account are accepted 
     from the obliger in person, the date on which the obliger 
     makes a payment on the account at such branch or office shall 
     be considered as the date on which the payment is made for 
     purposes of determining whether a late fee or charge may be 
     imposed due to the failure of the obligor to make payment on 
     or before the due date for such payment, to the extent that 
     such payment is made before the close of business of the 
     branch or office on the business day immediately preceding 
     the due date for such payment.''.

               TITLE III--RESPONSIBILITIES IN BANKRUPTCY

     SEC. 311. AMENDMENTS TO THE BANKRUPTCY CODE.

       Section 523(a)(2)(C) of title 11, United States Code, is 
     amended by adding at the end the following: ``However, this 
     subparagraph shall not apply for any portion of debt incurred 
     under an open end credit plan, as defined in section 103 of 
     the Truth in Lending Act, if the annual rate of interest 
     charged with respect to the account was more than 20 
     percentage points above the Federal prime lending rate on the 
     last day of month during which the interest was charged.''.

                TITLE IV--PROTECTION OF YOUNG CONSUMERS

     SEC. 411. EXTENSIONS OF CREDIT TO UNDERAGE CONSUMERS.

       Section 127(c) of the Truth in Lending Act (15 U.S.C. 
     1637(c)) is amended by inserting after paragraph (5), as 
     added by this Act, the following:
       ``(6) Applications from underage consumers.--
       ``(A) Prohibition on issuance.--No credit card may be 
     issued to, or open end credit plan established on behalf of, 
     a consumer who has not attained the age of 21, unless the 
     consumer has submitted a written application to the card 
     issuer that meets the requirements of subparagraph (B).
       ``(B) Application requirements.--An application to open a 
     credit card account by an individual who has not attained the 
     age of 21 as of the date of submission of the application 
     shall require--
       ``(i) the signature of the parent, legal guardian, or 
     spouse of the consumer, or any other individual having a 
     means to repay debts incurred by the consumer in connection 
     with the account, indicating joint liability for debts 
     incurred by the consumer in connection with the account 
     before the consumer has attained the age of 21;
       ``(ii) submission by the consumer of financial information 
     indicating an independent means of repaying any obligation 
     arising from the proposed extension of credit in connection 
     with the account; or
       ``(iii) proof by the consumer that the consumer has 
     completed a credit counseling course of instruction by a 
     nonprofit budget and credit counseling agency approved by the 
     Board for such purpose.
       ``(C) Minimum requirements for counseling agencies.--To be 
     approved by the Board under subparagraph (B)(iii), a credit 
     counseling agency shall, at a minimum--
       ``(i) be a nonprofit budget and credit counseling agency, 
     the majority of the board of directors of which--

       ``(I) is not employed by the agency; and

       ``(II) will not directly or indirectly benefit financially 
     from the outcome of a credit counseling session;

       ``(ii) if a fee is charged for counseling services, charge 
     a reasonable fee, and provide services without regard to 
     ability to pay the fee; and
       ``(iii) provide trained counselors who receive no 
     commissions or bonuses based on referrals, and demonstrate 
     adequate experience and background in providing credit 
     counseling.''.

     SEC. 412. ENHANCED PENALTIES.

       Section 130(a)(2)(A) of the Truth in Lending Act (15 U.S.C. 
     1640 (a)(2)(A)(iii)) is amended by striking ``or (iii) in 
     the'' and inserting the following:
       ``(iii) in the case of an individual action relating to an 
     open end credit plan that is not secured by real property or 
     a dwelling, twice the amount of any finance charge in 
     connection with the transaction, with a minimum of $500 and a 
     maximum of $5,000 or such higher amount as may be appropriate 
     in the case of an established pattern or practice of such 
     failures; or
       ``(iv) in the''.

     SEC. 413. RESTRICTIONS ON CERTAIN AFFINITY CARDS.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637), 
     as amended by this Act, is amended by adding at the end the 
     following:
       ``(m) Restrictions on Issuance of Affinity Cards to 
     Students.--No credit card account under an open end credit 
     plan may be established by an individual who has not attained 
     the age of 21 as of the date of submission of the application 
     pursuant to any agreement relating to affinity cards, as 
     defined by the Board, between the creditor and an institution 
     of higher education, as defined in section 101(a) of the 
     Higher Education Act of 1965 (20 U.S.C. 1001(a)), unless the 
     requirements of section 127(c)(6) are met with respect to the 
     obliger.''.

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