[Congressional Record (Bound Edition), Volume 151 (2005), Part 9]
[Senate]
[Pages 12125-12164]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. ALEXANDER (for himself and Mr. Warner):
  S. 1208. A bill to provide for local control for the siting of 
windmills; to the Committee on Energy and Natural Resources.
  Mr. ALEXANDER. Mr. President, in order to protect our Nation's most 
scenic areas, Senator Warner, the senior Senator from Virginia, and I 
are today introducing a revised version of the Environmentally 
Responsible Windpower Act of 2005. It will be introduced in the House 
of Representatives by Congressman John Duncan, a Republican, who is 
chairman of the Water Resources Subcommittee, and by Representative 
Bart Gordon, a Democrat, who is the ranking Democrat on the Science and 
Technology Committee.
  Senator Warner and I have listened to our colleagues, and we have 
made several changes in our initial bill to simplify it and to make it 
the kind of bill we hope all Senators will think makes good sense. What 
we have done is to simplify the local notification procedures and to 
more precisely protect scenic areas of the country without impacting 
the entire coastline. We have also removed a provision regarding 
military bases that was in our bill since that can be addressed in 
other legislation.
  Our revised bill would do three things:
  No. 1, to protect America's most scenic treasures, such as the Grand 
Canyon, the Statue of Liberty, and the Great Smoky Mountains National 
Park, and deny Federal subsidies for giant wind turbines within 20 
miles of any national park, national military park, national seashore, 
national lakeshore, or 20 World Heritage sites in the United States.
  No. 2, to protect our most pristine coastlines, it would deny Federal 
subsidies for wind turbines less than 20 miles offshore, which is the 
horizon of a national seashore, a national lakeshore, or a National 
Wildlife Refuge.
  No. 3, to enhance local control, which most of us believe in, it 
would give communities a 180-day timeout period from when a wind 
project is filed with the Federal Energy Regulatory Commission in which 
to review local zoning laws related to the placement of these giant 
wind turbines.
  This legislation is necessary because my research suggests that if 
the present policies are continued we will spend over the next 5 years 
nearly $4.5 billion to subsidize windmills. Because of those large 
subsidies, the number of the giant wind turbines in the United States 
is expected to grow from 6,700 today to 40,000, or even double that 
number in 20 years according to estimates by the Department of Energy 
and the Union of Concerned Scientists.
  These wind turbines are not your grandmother's windmills, gently 
pumping water from the farm well. Here is just one example, which my 
colleagues from Alabama and South Carolina will especially appreciate. 
The University of Tennessee has the second largest football stadium in 
America, seating 107,000 people. The Senator from Alabama and I sat 
there while Auburn University beat the tar out of the University of 
Tennessee last year. I ask him to imagine that just one of these giant 
wind turbines would fit into that stadium. It would rise to more than 
twice the height of the highest skybox.
  Its rotor blades would stretch almost from 10-yard line to 10-yard 
line. And on a clear night, its flashing red lights could be seen for 
20 miles. Usually, these wind turbines are located in wind farms 
containing 20 or more, but the number can be more than 100. They work 
best, of course, where the wind blows best which, in our part of the 
country, is along scenic coastlines or scenic ridgetops.
  Now, reasonable Members of this body may disagree about the cost, 
effectiveness, and appropriateness of such wind turbines. We can have 
that debate at another time. But at least we ought to be able to agree 
not to subsidize building them in places that damage our most scenic 
areas and coastlines.
  Since wind turbines of this giant size are such a relatively new 
phenomenon, it fits our American traditions to give local communities 
time to stop and think about their most appropriate location.
  In conclusion, Mr. President, let me emphasize that our legislation 
does not prohibit the building of a single wind turbine. It only denies 
a Federal taxpayer subsidy in highly scenic areas. And it ensures local 
governments have the time to review wind turbine proposals.
  This revised version does not give local authorities any power they 
do not already have. It simply gives them a little time to act.
  We intend to offer our legislation as an amendment when the full 
Senate debates the Energy bill next week, and we hope our colleagues 
will join us in this effort to ensure the Federal Government does not 
provide tax incentives that ruin the beauty of our most pristine and 
scenic areas around our country.
  Egypt has its pyramids, Italy has its art, England has its history, 
and the United States has the great American outdoors. We should prize 
that and protect it where we can. One way to do that is to make sure 
when we look at the Statue of Liberty, when we look at the Great Smoky 
Mountains, when we look at the Grand Canyon, we do not have giant 
windmills, twice as tall as Neyland Stadium, with flashing red lights, 
in between us and that landscape.
  Mr. President, I ask unanimous consent to have printed in the Record 
the text of the legislation which Senator Warner and I are introducing, 
a copy of the attachment which includes the approximately 200 highly 
scenic sites that could be protected by the Environmentally Responsible 
Windpower Act of 2005, and two editorials from Tennessee newspapers--
one from the Chattanooga Times Free Press and one from the Knoxville 
News Sentinel--which comment on the previous legislation we introduced.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1208

       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 ``Environmentally Responsible 
     Windpower Act of 2005''.

     SEC. 2. LOCAL CONTROL FOR SITING OF WINDMILLS.

       (a) Local Notification.--Prior to the Federal Energy 
     Regulatory Commission issuing to any wind turbine project its 
     Exempt-Wholesale Generator Status, Market-Based Rate 
     Authority, or Qualified Facility rate schedule, the wind 
     project shall complete its Local Notification Process.
       (b) Local Notification Process.--
       (1) In this section, the term ``Local Authorities'' means 
     the governing body, and the senior executive of the body, at 
     the lowest level of government that possesses authority under 
     State law to carry out this Act.

[[Page 12126]]

       (2) Applicant shall notify in writing the Local Authorities 
     on the day of the filing of such Market-Based Rate 
     application or Federal Energy Regulatory Commission Form 
     number 556 (or a successor form) at the Federal Energy 
     Regulatory Commission. Evidence of such notification shall be 
     submitted to the Federal Energy Regulatory Commission.
       (3) The Federal Energy Regulatory Commission shall notify 
     in writing the Local Authorities within 10 days of the filing 
     of such Market-Based Rate application or Federal Energy 
     Regulatory Commission Form number 556 (or a successor form) 
     at the Federal Energy Regulatory Commission.
       (4) The Federal Energy Regulatory Commission shall not 
     issue to the project Market-Based Rate Authority, Exempt 
     Wholesaler Generator Status, or Qualified Facility rate 
     schedule, until 180 days after the date on which the Federal 
     Energy Regulatory Commission notifies the Local Authorities 
     under paragraph (3).
       (c) Highly Scenic Area and Federal Land.--
       (1) A Highly Scenic Area is--
       (A) any area listed as an official United Nations 
     Educational, Scientific, and Cultural Organization World 
     Heritage Site, as supported by the Department of the 
     Interior, the National Park Service, and the International 
     Council on Monuments and Sites;
       (B) land designated as a National Park;
       (C) a National Lakeshore;
       (D) a National Seashore;
       (E) a National Wildlife Refuge that is adjacent to an 
     ocean; or
       (F) a National Military Park.
       (2) A Qualified Wind Project is any wind-turbine project 
     located--
       (A)(i) in a Highly Scenic Area; or
       (ii) within 20 miles of the boundaries of an area described 
     in subparagraph (A), (B), (C), (D), or (F) of paragraph (1); 
     or
       (B) within 20 miles off the coast of a National Wildlife 
     Refuge that is adjacent to an ocean.
       (3) Prior to the Federal Energy Regulatory Commission 
     issuing to a Qualified Wind Project its Exempt-Wholesale 
     Generator Status, Market-Based Rate Authority, or Qualified 
     Facility rate schedule, an environmental impact statement 
     shall be conducted and completed by the lead agency in 
     accordance with the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.). If no lead agency is designated, 
     the lead agency shall be the Department of the Interior.
       (4) The environmental impact statement determination shall 
     be issued within 12 months of the date of application.
       (5) Such environmental impact statement review shall 
     include a cumulative impacts analysis addressing visual 
     impacts and avian mortality analysis of a Qualified Wind 
     Project.
       (6) A Qualified Wind Project shall not be eligible for any 
     Federal tax subsidy.
       (d) Effective Date.--
       (1) This section shall expire 10 years after the date of 
     enactment of this Act.
       (2) Nothing in this section shall prevent or discourage 
     environmental review of any wind projects or any Qualified 
     Wind Project on a State or local level.

Scenic Sites Protected by the Environmentally Responsible Windpower Act 
                                of 2005


                                ALABAMA

       National Parks: Little River Canyon National Preserve.
       National Military Parks: Horseshoe Bend.


                                 ALASKA

       National Parks: Denali National Park & Preserve, Gates of 
     the Arctic National Park & Preserve, Glacier Bay National 
     Park & Preserve, Katmai National Park & Preserve, Kenai 
     Fjords National Park, Kobuk Valley National Park, Lake Clark 
     National Park & Preserve, Wrangell-St, Elias National Park & 
     Preserve.
       World Heritage Sites: Glacier Bay National Park & Preserve, 
     Wrangell-St. Elias National Park & Preserve.
       Coastal National Wildlife Refuges: Izembek National 
     Wildlife Refuge, Alaska Peninsula National Wildlife Refuge, 
     Becharof National Wildlife Refuge, Kodiak National Wildlife 
     Refuge, Selawik National Wildlife Refuge.


                                ARIZONA

       National Parks: Grand Canyon National Park, Petrified 
     Forest National Park.
       World Heritage Sites: Grand Canyon National Park.


                                ARKANSAS

       National Parks: Hot Springs National Park.
       National Military Parks: Pea Ridge.


                               CALIFORNIA

       National Parks: Channel Islands National Park, Death Valley 
     National Park, Joshua Tree National Park, Lassen Volcanic 
     National Park, Redwood National and State Parks, Sequoia & 
     Kings Canyon National Parks, Yosemite National Park.
       World Heritage Sites: Redwood National Park, Yosemite 
     National Park.
       National Seashores: Point Reyes National Seashore.
       National Wildlife Refuqes: Castle Rock National Wildlife 
     Refuge, Ellicott Slough National Wildlife Refuge, Farallon 
     National Wildlife Refuge, Guadalupe-Nipomo Dunes National 
     Wildlife Refuge, Humboldt Bay National Wildlife Refuge, Marin 
     Islands National Wildlife Refuge, Salinas River National 
     Wildlife Refuge, San Diego Bay National Wildlife Refuge, San 
     Pablo Bay National Wildlife Refuge, Seal Beach National 
     Wildlife Refuge, Tijuana Slough National Wildlife Refuge.


                                COLORADO

       National Parks: Black Canyon of the Gunnison National Park, 
     Great Sand Dunes National Park & Preserve, Mesa Verde 
     National Park, Rocky Mountain National Park.
       World Heritage Sites: Mesa Verde.


                              CONNECTICUT

       Coastal National Wildlife Refuges: Stewart B. McKinney 
     National Wildlife Refuge.


                                DELAWARE

       Coastal National Wildlife Refuges: Bombay Hook National 
     Wildlife Refuge, Prime Hook National Wildlife Refuge.


                                FLORIDA

       National Parks: Biscayne National Park, Dry Tortugas 
     National Park, Everglades National Park.
       World Heritage Sites: Everglades National Park.
       National Seashores: Canaveral National Seashore, Gulf 
     Islands National Seashore.
       Coastal National Wildlife Refuge Sites: Archie Carr 
     National Wildlife Refuge, Arthur R. Marshall Loxahatchee 
     National Wildlife Refuge, Cedar Keys National Wildlife 
     Refuge, Chassahowitzka National Wildlife Refuge, Crocodile 
     Lake National Wildlife Refuge, Crystal River National 
     Wildlife Refuge, Egmont Key National Wildlife Refuge, Great 
     White Heron National Wildlife Refuge, Hobe Sound National 
     Wildlife Refuge, Island Bay National Wildlife Refuge, J. N. 
     Ding Darling National Wildlife Refuge, Key West National 
     Wildlife Refuge, Lower Suwannee National Wildlife Refuge, 
     Matlacha Pass National Wildlife Refuge, Merritt Island 
     National Wildlife Refuge, National Key Deer Refuge National 
     Wildlife Refuge, Passage Key National Wildlife Refuge, 
     Pelican Island National Wildlife Refuge, Pine Island National 
     Wildlife Refuge, Pinellas National Wildlife Refuge, St. Johns 
     National Wildlife Refuge, St. Marks National Wildlife Refuge, 
     St. Vincent National Wildlife Refuge, Ten Thousand Islands 
     National Wildlife Refuge.


                                GEORGIA

       National Seashores: Cumberland Island National Seashore.
       Coastal National Wildlife Refuges: Blackbeard Island 
     National Wildlife Refuge, Harris Neck National Wildlife 
     Refuge, Wassaw National Wildlife Refuge, Wolf Island National 
     Wildlife Refuge.


                                 HAWAII

       National Parks: Haleakala National Park, Hawaii Volcanoes 
     National Park.
       World Heritage Sites: Hawaii Volcanoes National Park.
       Coastal National Wildlife Refuges: Oahu Forest National 
     Wildlife Refuge, Hanalei National Wildlife Refuge, Kilauea 
     National Wildlife Refuge, Hakalau National Wildlife Refuge, 
     Kealia Pond National Wildlife Refuge, Pearl Harbor National 
     Wildlife Refuge, Kakahaia National Wildlife Refuge.


                                 IDAHO

       National Parks: Yellowstone National Park.


                                ILLINOIS

       World Heritage Sites: Cahokia Mounds State Historic Site.


                                INDIANA

       National Seashores: Indiana Dunes National Lakeshore.


                                KENTUCKY

       National Parks: Mammoth Cave National Park.
       World Heritage Sites: Mammoth Cave National Park.


                               LOUISIANA

       Coastal National Heritage Sites: Bayou Teche National 
     Wildlife Refuge, Big Branch National Wildlife Refuge, Breton 
     National Wildlife Refuge, Delta National Wildlife Refuge, 
     Sabine National Wildlife Refuge, Shell Keys National Wildlife 
     Refuge.


                                 MAINE

       National Parks: Acadia National Park.
       Coastal National Wildlife Refuges: Aroostook National 
     Wildlife Refuge, Cross Island National Wildlife Refuge, 
     Franklin Island National Wildlife Refuge, Moosehorn National 
     Wildlife Refuge, Petit Manan National Wildlife Refuge, Pond 
     Island National Wildlife Refuge, Rachel Carson National 
     Wildlife Refuge, Seal Island National Wildlife Refuge.


                                MARYLAND

       National Seashores: Assateague Island National Seashore.


                             MASSACHUSETTS

       National Seashores: Cape Cod National Seashore.
       Coastal National Wildlife Refuges: Mashpee National 
     Wildlife Refuge, Massaspit National Wildlife Refuge, Monormoy 
     National Wildlife Refuge, Nantucket National Wildlife Refuge, 
     Normans Land Island National Wildlife Refuge, Parker River 
     National Wildlife Refuge, Thacher Island National Wildlife 
     Refuge.


                                MICHIGAN

       National Parks: Isle Royale National Park.

[[Page 12127]]

       National Lakeshores: Pictured Rocks National Lakeshore, 
     Sleeping Bear Dunes National Lakeshore.


                               MINNESOTA

       National Parks: Voyageurs National Park.


                              MISSISSIPPI

       National Seashores: Gulf Islands National Seashore.
       National Military Parks: Vicksburg.
       Coastal National Wildlife Refuges: Grand Bay National 
     Wildlife Refuge, Mississippi Sandhill Crane National Wildlife 
     Refuge.


                                MONTANA

       National Parks: Yellowstone National Park, Glacier National 
     Park.
       World Heritage Sites: Yellowstone National Park.


                                 NEVADA

       National Parks: Death Valley National Park, Great Basin 
     National Park.


                             NEW HAMPSHIRE

       Coastal National Wildlife Refuges: Great Bay National 
     Wildlife Refuge.


                               NEW JERSEY

       Coastal National Wildlife Refuges: Cape May National 
     Wildlife Refuge, Edwin B. Forsythe National Wildlife Refuge.


                               NEW MEXICO

       National Parks: Carlsbad Caverns National Park.
       World Heritage Sites: Chaco Culture National Historical 
     Park, Pueblo de Taos, Carlsbad Caverns National Park.


                                NEW YORK

       World Heritage Sites: Statue of Liberty.
       National Seashores: Fire Island National Seashore.


                             NORTH CAROLINA

       National Parks: Great Smoky Mountains National Park.
       World Heritage Sites: Great Smoky Mountains National Park.
       National Seashores: Cape Hatteras National Seashore, Cape 
     Lookout National Seashore.
       National Military Parks: Guilford Courthouse.
       Coastal National Wildlife Refuges: Alligator River National 
     Wildlife Refuge, Cedar Island National Wildlife Refuge, 
     Currituck National Wildlife Refuge, Mackay Island National 
     Wildlife Refuge, Mattamuskeet National Wildlife Refuge, Pea 
     Island National Wildlife Refuge, Pocosin Lakes National 
     Wildlife Refuge, Swanquarter National Wildlife Refuge.


                              NORTH DAKOTA

       National Parks: Theodore Roosevelt National Park.


                                  OHIO

       National Parks: Cuyahoga Valley National Parks.


                                 OREGON

       National Parks: Crater Lake National Park.
       Coastal National Wildlife Refuges: Bandon Marsh National 
     Wildlife Refuge, Cape Meares National Wildlife Refuge, 
     Nestucca Bay National Wildlife Refuge, Oregon Islands 
     National Wildlife Refuge, Siletz Bay National Wildlife 
     Refuge, Three Arch Rocks National Wildlife Refuge.


                              PENNSYLVANIA

       World Heritage Sites: Independence Hall.
       National Military Parks: Gettysburg.


                              RHODE ISLAND

       Coastal National Wildlife Refuges: Block Island National 
     Wildlife Refuge, John H. Chafee National Wildlife Refuge, 
     Ninigret National Wildlife Refuge, Sachuest Point National 
     Wildlife Refuge, Trustom Pond National Wildlife Refuge.


                             SOUTH CAROLINA

       National Parks: Congaree National Park.
       National Military Parks: Kings Mountain.
       Coastal National Wildlife Refuges: ACE Basin National 
     Wildlife Refuge, Cape Romain National Wildlife Refuge, 
     Pickney Island National Wildlife Refuge, Savannah National 
     Wildlife Refuge, Tybee National Wildlife Refuge, Waccamaw 
     National Wildlife Refuge.


                              SOUTH DAKOTA

       National Parks: Badlands National Park, Wind Cave National 
     Park.


                               TENNESSEE

       National Parks: Great Smoky Mountains National Park.
       World Heritage Sites: Great Smoky Mountains National Park.
       National Military Parks: Chickamauga and Chattanooga, 
     Shiloh.


                                 TEXAS

       National Parks: Big Bend National Park, Guadalupe Mountains 
     National Park.
       National Seashores: Padre Island National Seashore.
       Coastal National Wildlife Refuges: Anahuac National 
     Wildlife Refuge, Aransas National Wildlife Refuge, Big Boggy 
     National Wildlife Refuge, Brazoria National Wildlife Refuge, 
     Laguna Atascossa National Wildlife Refuge, McFaddin National 
     Wildlife Refuge, San Bernard National Wildlife Refuge, Texas 
     Point National Wildlife Refuge, Trinity River National 
     Wildlife Refuge.


                                  UTAH

       National Parks: Arches National Park, Bryce Canyon National 
     Park, Canyonlands National Park, Capitol Reef National Park, 
     Zion National Park.


                                VIRGINIA

       National Parks: Shenandoah National Park.
       World Heritage Sites: Monticello, University of Virginia 
     Historic District.
       National Seashores: Assateague Island National Seashore.
       National Military Parks: Fredericksburg and Spotsylvania 
     Courthouse Battlefields.
       Coastal National Wildlife Refuges: Back Bay National 
     Wildlife Refuge, Chincoteague National Wildlife Refuge, 
     Eastern Shore of Virginia National Wildlife Refuge, 
     Featherstone National Wildlife Refuge, Fisherman Island 
     National Wildlife Refuge, James River National Wildlife 
     Refuge, Mason Neck National Wildlife Refuge, Nansemond 
     National Wildlife Refuge, Occoquah Bay National Wildlife 
     Refuge, Plum Tree Island National Wildlife Refuge, Wallops 
     Island National Wildlife Refuge.


                               WASHINGTON

       National Parks: Mount Rainier National Park, North Cascades 
     National Park, Olympic National Park.
       World Heritage Sites: Olympic National Park.
       Coastal National Wildlife Refuges: Copalis National 
     Wildlife Refuge, Flattery National Wildlife Refuge, Grays 
     Harbor National Wildlife Refuge, Quillayute Needles National 
     Wildlife Refuge, Willapa National Wildlife Refuge.


                               WISCONSIN

       National Lakeshores: Apostle Islands National Lakeshore.


                                WYOMING

       National Parks: Grand Teton National Park, Yellowstone 
     National Park.
       World Heritage Sites: Yellowstone National Park.
                                  ____


         [From the Chattanooga Times Free Press, May 22, 2005]

                          Beware of Windmills

       It was reported in the classical fictional literature of 
     Miguel de Cervantes, and in the delightful derivative musical 
     play ``Man of La Mancha,'' that Don Quixote tilted at 
     windmills, thinking them to be adversaries.
       But in the real-life United States today, some people are 
     promoting the erection of many thousands of windmills as a 
     means of generating electric power, with too few people being 
     aware that these modern windmills would be very real, not 
     imaginary, adversaries.
       Sen. Lamar Alexander, R-Tenn., has introduced a bill in 
     Congress designed to avoid having an army of huge windmills 
     slip up on us without sufficient warning.
       The senator says an effort is being made to require 
     electric companies to produce 10 percent of their power from 
     ``renewable'' sources. That means wind, hydro, solar, 
     geothermal and biomass power. Sounds good on the surface, 
     doesn't it? The trouble is that there are few opportunities 
     for substantial power generation by these means except by 
     wind. What would that mean?
       ``The idea of windmills,'' said Sen. Alexander, conjures up 
     pleasant images--of Holland and tulips, of rural America . . 
     . My grandparents had such a windmill at their well pump . . 
     . But the windmills we are talking about today are not your 
     grandmother's windmills.
       ``Each one is typically 100 yards tall, two stories taller 
     than the Statue of Liberty, taller than a football field is 
     long.
       ``These windmills are wider than a 747 jumbo jet.
       ``Their rotor blades turn at 100 miles per hour.
       ``These towers and their flashing red lights can be seen 
     from more than 25 miles away.
       ``Their noise can be heard from up to a half-mile away. It 
     is a thumping and swishing sound. It has been described by 
     residents that are unhappy with the noise as sounding like a 
     brick wrapped in a towel tumbling in a clothes drier on a 
     perpetual basis.
       ``These windmills produce very little power since they only 
     operate when the wind blows enough or doesn't blow too much, 
     so they are usually placed in large wind farms covering huge 
     amounts of land.
       ``As an example, if the Congress ordered electric companies 
     to build 10 percent of their power from renewable energy--
     which as we have said, has to be mostly wind--and if we renew 
     the current subsidy each year, by the year 2025, my state of 
     Tennessee would have at least 1,700 windmills, which would 
     cover land almost equal to two times the size of the city of 
     Knoxville.''
       Do these revelations by Sen. Alexander, accompanied by the 
     prospect that $3.7 billion of your taxes might be required 
     for subsidies over five years, cause you to want to have 
     100,000 of these huge, red lighted, noisy, thumping windmills 
     erected throughout the United States, with 1,700 of them in 
     Tennessee--perhaps in your neighborhood?
       Talk about ``pollution'' of area, sound and sight!
       Surely, non-polluting nuclear power and other energy 
     sources would be better. The windmill subsidies could be used 
     better to promote cleaner, more efficient and cheaper coal, 
     gas and oil technology.
       Sen. Alexander said the purpose of his legislation, in 
     which Sen. John Warner, R-Va.,

[[Page 12128]]

     has joined, is to be sure that ``local authorities have a 
     chance to consider the impact of such massive new structures 
     before dozens or hundreds of them begin to be built in their 
     communities.''
       For that fair warning, we should give thanks. If you have 
     seen windmill farms in California, Texas or Hawaii, you will 
     surely understand why the warning is appropriate.
       Don Quixote thought he had problems with windmills, He 
     hadn't seen the kind Sen. Alexander is talking about.
                                  ____


                        [KnoxNews, June 9, 2005]

                  Windmills Need Commonsense Approach

       U.S. Sen. Lamar Alexander has unleashed a storm of 
     controversy among environmentalists over windmills, but we 
     think he is using a commonsense approach.
       Alexander has introduced legislation that would restrict 
     tax credits for new windmills, and he has asked TVA to place 
     a moratorium on new windmills.
       Alexander's bill would give local governments veto power 
     over wind farm projects and require environmental impact 
     statements for windmill construction in offshore areas and 
     within 20 miles of certain scenic areas, such as the Great 
     Smoky Mountains National Park, and military bases.
       The provision on eliminating tax credits for projects in 
     those restricted areas, however, is what has drawn criticism 
     from environmentalists and windmill manufacturers.
       Stephen Smith of the Southern Alliance for Clean Energy 
     said the legislation is ``the most direct assault on wind 
     power we've ever seen by a United States senator.''
       Jaime Steve, a lobbyist for the American Wind Energy 
     Association, said wind energy could bring up to 4,500 new 
     jobs and $4.2 billion in investment to the state in the next 
     five or six years.
       Alexander released a statement that said his bill would 
     protect scenic areas and give local citizens more control. 
     ``It keeps those 100-yard-tall, monstrous structures away 
     from Signal Mountain, Lookout Mountain, Roan Mountain, the 
     Tennessee River Gorge, the foothills of the Smokies and other 
     highly scenic areas,'' Alexander said.
       ``As for jobs,'' he continued, ``every Tennessee job is 
     important, but I fear that hundreds of these giant windmills 
     across Tennessee's ridges could destroy our tourism industry, 
     which could cost us tens of thousands of jobs.''
       In remarks on the Senate floor, Alexander said serious 
     questions have been raised about how much relying on wind 
     power will raise the cost of electricity. ``My studies 
     suggest that, at a time when America needs large amounts of 
     low-cost, reliable power, wind produces puny amounts of high-
     cost unreliable power,'' he said. ``We need lower prices; 
     wind power raises prices.''
       About his request to TVA, Alexander said the moratorium 
     should be in effect ``until the new TVA board, Congress and 
     local officials can evaluate the impact on these massive 
     structures on our electric rates, our view of the mountains 
     and our tourism industry.''
       TVA Directors Bill Baxter and Skila Harris responded that 
     TVA has no plans to build more wind turbines in the next two 
     years and beyond.
       We believe Alexander has raised some serious questions 
     about the effectiveness and efficiency of wind power. While 
     we understand the importance of focusing on new forms of 
     energy to reduce reliance on oil, we agree with Alexander's 
     premise that we must go about it wisely.
       ``I hope we decide that we need a real national energy 
     policy instead of a national windmill policy,'' Alexander 
     said.
       We think that's well said.
                                 ______
                                 
      By Mr. GREGG:
  S. 1209. A bill to establish and strengthen postsecondary programs 
and courses in the subjects of traditional American history, free 
institutions, and Western civilization, available to students preparing 
to teach these subjects, and to other students; to the Committee on 
Health, Education, Labor, and Pensions.
  Mr. GREGG. Mr. President, today I am proud to introduce the Higher 
Education for Freedom Act. This bill will establish a competitive grant 
program making funds available to institutions of higher education, 
centers within such institutions, and associated nonprofit foundations 
to promote both graduate and undergraduate programs focused on the 
teaching and study of traditional American history and government, and 
the history and achievements of Western Civilization. The program will 
help ensure that more postsecondary students have the opportunity to 
participate in programs focused on these critical subjects and that 
prospective teachers of history and government have access to a solid 
foundation of content knowledge.
  Today, more than ever, it is important to preserve and defend our 
common heritage of freedom and civilization, and to ensure that future 
generations of Americans understand the importance of traditional 
American history and the principles of free government upon which this 
Nation was founded. This knowledge is not only essential to the full 
participation of our citizenry in America's civic life, but also to the 
continued success of the American experiment in self-government, which 
binds together a diverse people into a single Nation with common 
purposes.
  However, college students' lack of historical literacy is quite 
startling, and too few of our colleges and universities are focused on 
the task of imparting this fundamental knowledge to the next 
generation. A survey of students at America's top colleges found that 
seniors could not identify Valley Forge, words from the Gettysburg 
Address, or even the basic tenets of the U.S. Constitution. Given high 
school-level American history questions, 81 percent of the college 
seniors would have received a D or F, the report found. One college 
professor informed me that her students did not know which side Lee was 
on during the Civil War, or whether the Russians were allies or enemies 
in World War II. A student of hers asked why anyone should care what 
the Founding Fathers wrote.
  As unfortunate as these findings are, they are perhaps not 
surprising. A survey conducted several years ago found that not 1 of 
America's top 50 colleges and universities required its students to 
take a course in American history. More recently, another report 
documented the extent to which our top postsecondary institutions have 
abandoned the traditional core requirements that once gave students a 
systemic grasp of our nation's ideals, institutions, and origins. 
Indeed, only about a dozen undergraduate programs at major American 
colleges and universities have a central focus on American 
constitutional history and principles.
  We are doing our students a disservice if we allow them to graduate 
from an institution of higher education without a solid understanding 
of and appreciation for our democratic heritage. We cannot hope to 
preserve our democracy without taking action to remedy our students' 
historical illiteracy. As Thomas Jefferson once wrote, ``If a nation 
expects to be ignorant--and free--in a state of civilization, it 
expects what never was and never will be.'' I believe the time has come 
for Congress to do something to promote the teaching and study of 
traditional American history at the postsecondary level, and I urge my 
colleagues to support this legislation.
  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. 1209

       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 ``Higher Education for Freedom 
     Act''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) Given the increased threat to American ideals in the 
     trying times in which we live, it is important to preserve 
     and defend our common heritage of freedom and civilization 
     and to ensure that future generations of Americans understand 
     the importance of traditional American history and the 
     principles of free government on which this Nation was 
     founded in order to provide the basic knowledge that is 
     essential to full and informed participation in civic life 
     and to the larger vibrancy of the American experiment in 
     self-government, binding together a diverse people into a 
     single Nation with a common purpose.
       (2) However, despite its importance, most of the Nation's 
     colleges and universities no longer require United States 
     history or systematic study of Western civilization and free 
     institutions as a prerequisite to graduation.
       (3) In addition, too many of our Nation's elementary school 
     and secondary school history teachers lack the training 
     necessary to effectively teach these subjects, due largely to 
     the inadequacy of their teacher preparation.
       (4) Distinguished historians and intellectuals fear that 
     without a common civic memory and a common understanding of 
     the remarkable individuals, events, and ideals that have 
     shaped our Nation and its free institutions, the people in 
     the United States

[[Page 12129]]

     risk losing much of what it means to be an American, as well 
     as the ability to fulfill the fundamental responsibilities of 
     citizens in a democracy.
       (b) Purposes.--The purposes of this Act are to promote and 
     sustain postsecondary academic centers, institutes, and 
     programs that offer undergraduate and graduate courses, 
     support research, sponsor lectures, seminars, and 
     conferences, and develop teaching materials, for the purpose 
     of developing and imparting a knowledge of traditional 
     American history, the American Founding, and the history and 
     nature of, and threats to, free institutions, or of the 
     nature, history, and achievements of Western civilization, 
     particularly for--
       (1) undergraduate students who are enrolled in teacher 
     education programs, who may consider becoming school 
     teachers, or who wish to enhance their civic competence;
       (2) elementary school, middle school, and secondary school 
     teachers in need of additional training in order to 
     effectively teach in these subject areas; and
       (3) graduate students and postsecondary faculty who wish to 
     teach about these subject areas with greater knowledge and 
     effectiveness.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Eligible institution.--The term ``eligible 
     institution'' means--
       (A) an institution of higher education;
       (B) a specific program within an institution of higher 
     education; and
       (C) a non-profit history or academic organization 
     associated with higher education whose mission is consistent 
     with the purposes of this Act.
       (2) Free institution.--The term ``free institution'' means 
     an institution that emerged out of Western civilization, such 
     as democracy, constitutional government, individual rights, 
     market economics, religious freedom and tolerance, and 
     freedom of thought and inquiry.
       (3) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term under section 101 of the Higher Education Act of 1965 
     (20 U.S.C. 1001).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (5) Traditional american history.--The term ``traditional 
     American history'' means--
       (A) the significant constitutional, political, 
     intellectual, economic, and foreign policy trends and issues 
     that have shaped the course of American history; and
       (B) the key episodes, turning points, and leading figures 
     involved in the constitutional, political, intellectual, 
     diplomatic, and economic history of the United States.

     SEC. 4. GRANTS TO ELIGIBLE INSTITUTIONS.

       (a) In General.--From amounts appropriated to carry out 
     this Act, the Secretary shall award grants, on a competitive 
     basis, to eligible institutions, which grants shall be used 
     for--
       (1) history teacher preparation initiatives, that--
       (A) stress content mastery in traditional American history 
     and the principles on which the American political system is 
     based, including the history and philosophy of free 
     institutions, and the study of Western civilization; and
       (B) provide for grantees to carry out research, planning, 
     and coordination activities devoted to the purposes of this 
     Act; and
       (2) strengthening postsecondary programs in fields related 
     to the American founding, free institutions, and Western 
     civilization, particularly through--
       (A) the design and implementation of courses, lecture 
     series, and symposia, the development and publication of 
     instructional materials, and the development of new, and 
     supporting of existing, academic centers;
       (B) research supporting the development of relevant course 
     materials;
       (C) the support of faculty teaching in undergraduate and 
     graduate programs; and
       (D) the support of graduate and postgraduate fellowships 
     and courses for scholars related to such fields.
       (b) Selection Criteria.--In selecting eligible institutions 
     for grants under this section for any fiscal year, the 
     Secretary shall establish criteria by regulation, which 
     shall, at a minimum, consider the education value and 
     relevance of the institution's programming to carrying out 
     the purposes of this Act and the expertise of key personnel 
     in the area of traditional American history and the 
     principles on which the American political system is based, 
     including the political and intellectual history and 
     philosophy of free institutions, the American Founding, and 
     other key events that have contributed to American freedom, 
     and the study of Western civilization.
       (c) Grant Application.--An eligible institution that 
     desires to receive a grant under this Act shall submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may prescribe by 
     regulation.
       (d) Grant Review.--The Secretary shall establish procedures 
     for reviewing and evaluating grants made under this Act.
       (e) Grant Awards.--
       (1) Maximum and minimum grants.--The Secretary shall award 
     each grant under this Act in an amount that is not less than 
     $400,000 and not more than $6,000,000.
       (2) Exception.--A subgrant made by an eligible institution 
     under this Act to another eligible institution shall not be 
     subject to the minimum amount specified in paragraph (1).
       (f) Multiple Awards.--For the purposes of this Act, the 
     Secretary may award more than 1 grant to an eligible 
     institution.
       (g) Subgrants.--An eligible institution may use grant funds 
     provided under this Act to award subgrants to other eligible 
     institutions at the discretion of, and subject to the 
     oversight of, the Secretary.

     SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

       For the purpose of carrying out this Act, there are 
     authorized to be appropriated--
       (1) $140,000,000 for fiscal year 2006; and
       (2) such sums as may be necessary for each of the 
     succeeding 5 fiscal years.
                                 ______
                                 
      By Mr. HARKIN (for himself, Mr. Lugar, Mr. Obama, and Mr. 
        Coleman):
  S. 1210. A bill to enhance the national security of the United States 
by providing for the research, development, demonstration, 
administrative support, and market mechanisms for widespread deployment 
and commercialization of biobased fuels and biobased products, and for 
other purposes; to the Committee on Agriculture, Nutrition, and 
Forestry.
  Mr. HARKIN. Mr. President, over the past 100 years, the economy of 
the United States has become inextricably tied to the supply of 
petroleum. In the early part of the 20th century, America's abundant 
sources of petroleum helped drive tremendous improvements in quality of 
life, offering greater mobility through gasoline-powered 
transportation, and a whole host of new and innovative products made 
from plastics and other petroleum-based chemicals.
  But as the 20th century wore on, the costs of a petroleum-based 
economy grew increasingly apparent: pollution of air and water became a 
growing risk to our health and environment, and a growing dependence on 
foreign imports became an increasing risk to our economic and national 
security. Today, nearly two-thirds of the oil we use comes from 
overseas, much of it from hostile and unstable regimes.
  Instability in the oil-producing regions of the world, the growing 
threat of global warming, and record-high prices for gasoline at the 
pump all call for a new kind of economy for the 21st century: one based 
on a resource that is not only abundant, but clean, renewable and home-
grown.
  Today, biofuels like ethanol and biodiesel are making great inroads 
in reducing our foreign oil dependence. The biofuels industry will 
provide nearly 4 billion gallons of clean, domestically-produced fuel 
alternatives to gasoline and diesel this year. We need to ensure 
continued growth of renewable fuels, first by supporting a robust 
Renewable Fuels Standard of at least 8 billion gallons a year by 2012, 
and then by supporting additional measures to grow the ``bioeconomy.''
  That is why I am very proud today to be joined by my colleagues, 
Senator Lugar, Senator Obama, and Senator Coleman, in introducing the 
National Security and Bioenergy Investment Act of 2005. This important 
bipartisan legislation provides the research, development, 
demonstration, and market mechanisms necessary to move this country 
from an economy based largely on foreign oil, to one increasingly 
fueled with clean, renewable, domestically-grown biomass. It is an 
important compliment to a robust RFS, and a vital element of our energy 
future.
  According to the National Academies of Science, this country 
generates nearly 300 million tons of biomass each year--everything from 
corn stalks and wheat straw to forest trimmings and even segregated 
municipal waste. This biomass is currently sent to landfills or left in 
the fields after harvest in quantities greater than that needed to 
provide natural cover and nutrient replacement.
  The Natural Resources Defense Council estimates that by 2025, an 
additional 200 million tons of biomass could be generated each year 
from dedicated biomass crops such as native switchgrass, hybrid poplar 
and other woody crops, grown throughout the country. These crops 
require little or no fertilizer or chemical treatment, while helping to 
enhance soil quality and reduce runoff.

[[Page 12130]]

  Cellulose from biomass can be converted to ethanol, to provide a 
clean transportation fuel with potentially near-zero net carbon dioxide 
and sulfur emissions, and substantially reduced carbon monoxide, 
particulate and toxic emissions compared to petroleum-based fuel. The 
Natural Resources Defense Council estimates that by 2050 biomass could 
supply 50 percent of the Nation's transportation fuel, dramatically 
reducing our dependence on foreign oil.
  Other products of the biomass refining process, such as biochemicals 
and bioplastics, can also complement or replace less environmentally-
friendly petroleum-based equivalents. For example, if all of the 
plastic used in the United States were made from biomass instead of 
petroleum, the Nation's oil consumption would decrease by 90 to 145 
million barrels a year. Biobased plastics can also be composted and 
converted back to soil instead of being thrown in a landfill.
  Biobased chemicals, lubricants and metal-working fluids are all 
available in the marketplace today, and offer safe, non-toxic 
alternatives to their petroleum-based counterparts. The National 
Academies of Science found that biomass could meet all of the Nation's 
needs for organic chemicals, replacing 700 million barrels of petroleum 
a year.
  But perhaps one of the greatest benefits of biobased fuels and 
products is to our rural economy. A mature biomass industry would 
create more than 1 million jobs and generate $5 billion annually in 
revenue for farmers. This represents a tremendous opportunity to grow 
and diversify sources of rural income, while reducing our dependence on 
foreign oil, bolstering national security and protecting the 
environment.
  However, several obstacles still remain. Current Federal programs to 
develop biomass crops, establish supply chains, and reduce the cost of 
biofuels production are under-funded and lack appropriate targeting. 
Potential biomass refinery developers remain reluctant to invest in 
construction of ``next generation'' plants due to the high level of 
financial risk. And, according to a recent report from the Government 
Accountability Office, biobased purchase requirements and other 
bioeconomy measures at the U.S. Department of Agriculture have not been 
given the necessary priority for full implementation.
  A wide range of groups, including the Energy Future Coalition, the 
National Commission on Energy Policy, the Governors' Ethanol Coalition, 
and the Natural Resources Defense Council, is calling on Congress to 
invest in the bioeconomy as the best direction for the country's energy 
future.
  The time to act is now.
  This legislation implements several critical measures to help ensure 
the widespread deployment and commercialization of biobased fuels and 
products over the next 10 years.
  The bill substantially updates and improves the Biomass Research and 
Development Act by refining its objectives, providing greater focus on 
overcoming remaining technical barriers, and increasing funding. It 
authorizes $1 billion in research and development over five years to 
help today's successful biorefineries become the biorefineries of 
tomorrow, while developing advanced biomass crops, crop production 
methods, harvesting and transport technology to deliver abundant 
biomass to the refinery door.
  It creates a reverse auction of production incentives to deliver the 
first billion gallons of cellulosic biofuels at the lowest cost to 
taxpayers. Each year, cellulosic biofuels refiners will bid for 
assistance on a per gallon basis. Refiners who request the lowest level 
of assistance will earn production contracts. As the volume of biofuels 
production grows, competition will increase, and per gallon incentive 
rates will decrease. After the first billion gallons of annual 
production, cellulosic ethanol is expected to be competitive with 
gasoline without government assistance.
  It establishes a new Assistant Secretary position for Energy and 
Bioproduct Development at USDA to provide the necessary priority and 
resources for bioenergy and bioproduct programs. It expands the Federal 
Government biobased product procurement program of the 2002 farm bill 
to include government contractors. It also extends the program to the 
U.S. Capitol Complex, and establishes the Capitol as a showcase for 
biobased products.
  It creates grant programs to help small biobased businesses with 
marketing and certification of biobased products, and funds bioeconomy 
development associations and Land Grant institutions to support the 
growth of regional bioeconomies.
  The legislation calls on Congress to create tax incentives to 
encourage investment in production of biobased fuels and products, and 
it provides for education and outreach to promote producer investment 
in processing facilities and to heighten consumer awareness of biobased 
fuels and products.
  Together, these measures will send a strong signal to innovators, 
investors and biobased businesses that Congress is committed to 
advancing the bioeconomy. With full funding, this bill will deliver the 
technological advances needed to help make biobased fuels and products 
cost competitive with petroleum-based equivalents, and it will take a 
big step toward a future in which our cars run on clean-burning 
renewable fuels, our plastics turn to compost, and our Nation's farmers 
fortify our energy security.
  The bill has strong support from a broad coalition of agricultural 
producers, industry, clean energy, environment and national security 
groups. I have here several letters of endorsement.
  I ask unanimous consent that the text of the bill, and the 
accompanying letters of endorsement, be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1210

       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 ``National 
     Security and Bioenergy Investment 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.
Sec. 3. Definitions.

               TITLE I--BIOMASS RESEARCH AND DEVELOPMENT

Sec. 101. Definitions.
Sec. 102. Cooperation and coordination in biomass research and 
              development.
Sec. 103. Biomass Research and Development Board.
Sec. 104. Biomass Research and Development Technical Advisory 
              Committee.
Sec. 105. Biomass Research and Development Initiative.
Sec. 106. Reports.
Sec. 107. Funding.
Sec. 108. Termination of authority.
Sec. 109. Biomass-derived hydrogen.

                    TITLE II--PRODUCTION INCENTIVES

Sec. 201. Production incentives.

 TITLE III--ASSISTANT SECRETARY OF AGRICULTURE FOR ENERGY AND BIOBASED 
                                PRODUCTS

Sec. 301. Assistant Secretary of Agriculture for Energy and Biobased 
              Products.

               TITLE IV--PROCUREMENT OF BIOBASED PRODUCTS

Sec. 401. Federal procurement.
Sec. 402. Capitol Complex procurement.
Sec. 403. Education .
Sec. 404. Regulations.

             TITLE V--BIOECONOMY GRANTS AND TAX INCENTIVES

Sec. 501. Small business bioproduct marketing and certification grants.
Sec. 502. Regional bioeconomy development grants.
Sec. 503. Preprocessing and harvesting demonstration grants.
Sec. 504. Sense of the Senate.

                       TITLE VI--OTHER PROVISIONS

Sec. 601. Education and outreach.
Sec. 602. Reports.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the Governors' Ethanol Coalition, in the report 
     entitled ``Ethanol From Biomass America's 21st Century 
     Transportation Fuel'', found that--
       (A) the dependence of the United States on oil is a major 
     risk to national security and economic and environmental 
     health;
       (B) the safest and least costly approach to mitigating 
     these risks is to set and achieve aggressive biofuels 
     research, development, production and use goals; and

[[Page 12131]]

       (C) significant investment in cellulosic biofuels, 
     including a dramatic expansion of existing research programs, 
     production and consumer incentives, and commercialization 
     assistance, is needed;
       (2) the National Academy of Sciences has found that there 
     are abundant sources of waste biomass, and approximately 
     280,000,000 tons of waste biomass generated, in all regions 
     of the United States each year;
       (3) the Natural Resources Defense Council has estimated 
     that by 2025, 200,000,000 additional tons of biomass could be 
     harvested each year from dedicated energy crops grown 
     throughout the country, yielding $5,000,000,000 annually in 
     profit for farmers;
       (4) the Department of Agriculture has estimated that energy 
     derived from existing biomass supplies could displace 25 
     percent of current petroleum imports while still meeting 
     agricultural demands;
       (5) if all diesel fuel in the United States were blended 
     with a 4-percent blend of biodiesel, crude oil consumption in 
     the United States would be reduced by 300,000,000 barrels 
     each year by 2016;
       (6) there is sufficient domestic feedstock for the 
     production of at least 8,000,000,000 annual gallons of 
     renewable fuels, including ethanol and biodiesel, by 2012;
       (7) the Natural Resources Defense Council has estimated 
     that biomass could supply 50 percent of current 
     transportation petroleum demand by 2050;
       (8) the National Academy of Sciences has estimated that 
     enough agricultural crop residue is produced each year to 
     entirely replace the 700,000,000 barrels of petroleum used in 
     organic chemical production in 2004;
       (9) the Biotechnology Industry Organization, in its report 
     entitled ``New Biotechnology Tools for a Cleaner 
     Environment'', found that if all plastics in the United 
     States were made from biomass, oil consumption would decrease 
     by up to 145,000,000 barrels per year;
       (10) the National Academy of Sciences has reported that 
     biobased products have the potential to improve the 
     sustainability of natural resources, environmental quality, 
     and national security while competing economically;
       (11) the Department of Agriculture has made significant 
     advances in the understanding and use by the United States of 
     biomass as a feedstock for fuels and products;
       (12) through participation with the Department of Energy in 
     the Biomass Research and Development Initiative, the 
     Department of Agriculture has also made valuable 
     contributions, through grant-making and other initiatives, to 
     the support of biomass research and development at 
     institutions throughout the United States;
       (13) the Government Accountability Office has found that--
       (A) actions to implement the requirements of the Farm 
     Security and Rural Investment Act of 2002 (Public Law 107-
     171; 116 Stat. 134) for purchasing biobased products have 
     been limited; and
       (B) greater priority by the Department of Agriculture would 
     promote compliance by other agencies with biobased purchasing 
     requirements;
       (14) an Assistant Secretary of the Department of 
     Agriculture for Energy and Biobased Products would provide 
     the priority, staff, and financial resources to fully 
     implement biobased purchasing requirements and other 
     provisions of the energy title of the Farm Security and Rural 
     Investment Act of 2002;
       (15) Federal government contractors and the Architect of 
     the Capitol are currently exempt from biobased purchasing 
     requirements of the Farm Security and Rural Investment Act of 
     2002;
       (16) expansion of those biobased purchasing requirements--
       (A) to Federal contractors would significantly expand the 
     market for, and advance commercialization of, biobased 
     products; and
       (B) to the Architect of the Capitol would, in combination 
     with a program of public education, allow the Capitol Complex 
     to serve as a showcase for the existence, use, and benefits 
     of biobased products;
       (17) fuel derived from cellulosic biomass could have near-
     zero net carbon dioxide and sulfur emissions, and 
     substantially reduced carbon monoxide, particulate and toxic 
     emissions relative to petroleum-based fuels;
       (18) the bipartisan National Commission on Energy Policy 
     has predicted that with a dedicated Federal research, 
     development, and demonstration effort, cellulosic ethanol 
     could be less expensive to produce than gasoline by 2015;
       (19) the 2004 report of the Rocky Mountain Institute, 
     entitled ``Winning the Oil Endgame'', estimated that a mature 
     biomass industry would create up to 1,045,000 jobs;
       (20) the National Academy of Sciences has found that there 
     are significant opportunities to produce biomass ethanol more 
     efficiently;
       (21) the National Commission on Energy Policy has found 
     that current Federal programs directed toward reducing the 
     cost of biofuels are under-funded, intermittent, scattered, 
     and poorly targeted;
       (22) a report commissioned by the Department of Defense 
     urged the United States to invest in a new large-scale 
     initiative to produce biofuels as an alternative supply 
     source, and as a feedstock for future fuel vehicles;
       (23) the Consumer Federation of America has found that the 
     blending of ethanol into conventional gasoline can 
     significantly benefit consumers by lowering prices at the 
     pump;
       (24) 45 leading national security, labor, and energy policy 
     experts joined the Energy Future Coalition in supporting a 
     national commitment to cut the oil use of the United States 
     by 25 percent by 2025 through the rapid development and 
     deployment of advanced biomass, alcohol, and other available 
     petroleum fuel alternatives; and
       (25) an aggressive effort to advance technology for 
     conversion of biomass to fuel and products is warranted.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Department.--The term ``Department'' means the 
     Department of Agriculture.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.

               TITLE I--BIOMASS RESEARCH AND DEVELOPMENT

     SEC. 101. DEFINITIONS.

       Section 303 of the Biomass Research and Development Act of 
     2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
       (1) by striking paragraphs (2), (3), and (9);
       (2) by redesignating paragraphs (4), (5), (6), (7), and (8) 
     as paragraphs (5), (7), (8), (9), and (10) respectively;
       (3) by inserting after paragraph (1) the following:
       ``(2) Biobased fuel.--The term `biobased fuel' means any 
     transportation fuel produced from biomass.
       ``(3) Biobased product.--The term `biobased product' means 
     a commercial or industrial product (including chemicals, 
     materials, polymers, and animal feed) produced from biomass, 
     or electric power derived in connection with the conversion 
     of biomass to fuel.
       ``(4) Biomass.--
       ``(A) In general.--The term `biomass' means--
       ``(i) organic material from a plant, including grasses and 
     trees, that is planted for the purpose of being used to 
     produce energy, including vegetation produced for harvest on 
     land enrolled in the conservation reserve program established 
     under subchapter B of chapter 1 of subtitle D of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) if the 
     harvest is consistent with the integrity of soil and water 
     resources and with other environmental purposes of the 
     conservation reserve program;
       ``(ii) nonhazardous, lignocellulosic, or hemicellulosic 
     matter derived from--

       ``(I) the following forest-related resources:

       ``(aa) pre-commercial thinnings;
       ``(bb) slash; and
       ``(cc) brush;

       ``(II) an agricultural crop, crop byproduct, or 
     agricultural crop residue, including vegetation produced for 
     harvest on land enrolled in the conservation reserve program 
     established under subchapter B of chapter 1 of subtitle D of 
     title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et 
     seq.) if the harvest is consistent with the integrity of soil 
     and water resources and with other environmental purposes of 
     the conservation reserve program; or
       ``(III) miscellaneous waste, including landscape or right-
     of-way tree trimmings; and

       ``(iii) agricultural animal waste.
       ``(B) Exclusion.--The term `biomass' does not include--
       ``(i) unsegregated municipal solid waste;
       ``(ii) incineration of municipal solid waste;
       ``(iii) recyclable post-consumer waste paper and paper 
     products;
       ``(iv) painted, treated, or pressurized wood;
       ``(v) wood contaminated with plastic or metals; or
       ``(vi) tires.''; and
       (4) by inserting after paragraph (5) (as redesignated by 
     paragraph (2)):
       ``(6) Demonstration.--The term `demonstration' means 
     demonstration of technology in a pilot plant or semi-works 
     scale facility.''.

     SEC. 102. COOPERATION AND COORDINATION IN BIOMASS RESEARCH 
                   AND DEVELOPMENT.

       Section 304 of the Biomass Research and Development Act of 
     2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
       (1) in subsections (a) and (d), by striking ``industrial 
     products'' each place it appears and inserting ``fuels and 
     biobased products'';
       (2) by striking subsections (b) and (c);
       (3) by redesignating subsection (d) as subsection (b); and
       (4) in subsection (b)(1)(A) (as redesignated by paragraph 
     (3)), by striking ``an officer of the Department of 
     Agriculture appointed by the President to a position in the 
     Department before the date of the designated, by and with the 
     advice and consent of the Senate'' and inserting: ``the 
     Assistant Secretary of Agriculture for Energy and Biobased 
     Products''.

     SEC. 103. BIOMASS RESEARCH AND DEVELOPMENT BOARD.

       Section 305 of the Biomass Research and Development Act of 
     2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
       (1) in subsections (a) and (c), by striking ``industrial 
     products'' each place it appears and inserting ``fuels and 
     biobased products'';
       (2) in subsection (b)--

[[Page 12132]]

       (A) in paragraph (1), by striking ``304(d)(1)(B)'' and 
     inserting ``304(b)(1)(B)''; and
       (B) in paragraph (2), by striking ``304(d)(1)(A)'' and 
     inserting ``304(b)(1)(A)''; and
       (3) in subsection (c)--
       (A) in paragraph (1)(B), by striking ``and'' at the end;
       (B) in paragraph (2), by striking the period at the end and 
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(3) ensure that--
       ``(A) solicitations are open and competitive with awards 
     made annually; and
       ``(B) objectives and evaluation criteria of the 
     solicitations are clearly stated and minimally prescriptive, 
     with no areas of special interest; and
       ``(4) ensure that the panel of scientific and technical 
     peers assembled under section 307(c)(2)(C) to review 
     proposals is composed predominantly of independent experts 
     selected from outside the Departments of Agriculture and 
     Energy.''.

     SEC. 104. BIOMASS RESEARCH AND DEVELOPMENT TECHNICAL ADVISORY 
                   COMMITTEE.

       Section 306 of the Biomass Research and Development Act of 
     2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
       (1) in subsection (b)(1)--
       (A) in subparagraph (A), by striking ``biobased industrial 
     products'' and inserting ``biofuels'';
       (B) by redesignating subparagraphs (B) through (J) as 
     subparagraphs (C) through (K), respectively;
       (C) by inserting after subparagraph (A) the following:
       ``(B) an individual affiliated with the biobased industrial 
     and commercial products industry;'';
       (D) in subparagraph (F) (as redesignated by subparagraph 
     (B)) by striking ``an individual'' and inserting ``2 
     individuals'';
       (E) in subparagraphs (C), (D), (G), and (I) (as 
     redesignated by subparagraph (B)) by striking ``industrial 
     products'' each place it appears and inserting ``fuels and 
     biobased products''; and
       (F) in subparagraph (H) (as redesignated by subparagraph 
     (B)), by inserting ``and environmental'' before ``analysis'';
       (2) in subsection (c)(2)--
       (A) in subparagraph (A), by striking ``goals'' and 
     inserting ``objectives, purposes, and considerations'';
       (B) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (D), respectively;
       (C) by inserting after subparagraph (A) the following:
       ``(B) solicitations are open and competitive with awards 
     made annually and that objectives and evaluation criteria of 
     the solicitations are clearly stated and minimally 
     prescriptive, with no areas of special interest;''; and
       (D) in subparagraph (C) (as redesignated by subparagraph 
     (B)) by inserting ``predominantly from outside the 
     Departments of Agriculture and Energy'' after ``technical 
     peers''.

     SEC. 105. BIOMASS RESEARCH AND DEVELOPMENT INITIATIVE.

       Section 307 of the Biomass Research and Development Act of 
     2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
       (1) in subsection (a), by striking ``research on biobased 
     industrial products'' and inserting ``research on, and 
     development and demonstration of, biobased fuels and biobased 
     products, and the methods, practices and technologies, 
     including industrial biotechnology, for their production''; 
     and
       (2) by striking subsections (b) through (e) and inserting 
     the following:
       ``(b) Agencies.--
       ``(1) Agriculture.--The Secretary of Agriculture, through 
     the point of contact of the Department of Agriculture and in 
     consultation with the Board, shall provide, or enter into, 
     grants, contracts, and financial assistance under this 
     section through the Cooperative State Research, Education, 
     and Extension Service of the Department of Agriculture.
       ``(2) Energy.--The Secretary of Energy, though the point of 
     contact of the Department of Energy and in consultation with 
     the Board, shall provide, or enter into, grants, contracts, 
     and financial assistance under this section through the 
     appropriate agency, as determined by the Secretary of Energy.
       ``(c) Objectives.--The objectives of the Initiative are to 
     develop--
       ``(1) technologies and processes necessary for abundant 
     commercial production of biobased fuels at prices competitive 
     with fossil fuels;
       ``(2) high-value biobased products--
       ``(A) to enhance the economic viability of biobased fuels 
     and power; and
       ``(B) as substitutes for petroleum-based feedstocks and 
     products; and
       ``(3) a diversity of sustainable domestic sources of 
     biomass for conversion to biobased fuels and biobased 
     products.
       ``(d) Purposes.--The purposes of the Initiative are--
       ``(1) to increase the energy security of the United States;
       ``(2) to create jobs and enhance the economic development 
     of the rural economy;
       ``(3) to enhance the environment and public health; and
       ``(4) to diversify markets for raw agricultural and 
     forestry products.
       ``(e) Technical Areas.--To advance the objectives and 
     purposes of the Initiative, the Secretary of Agriculture and 
     the Secretary of Energy, in consultation with the 
     Administrator of the Environmental Protection Agency and 
     heads of other appropriate departments and agencies (referred 
     to in this section as the `Secretaries'), shall direct 
     research and development toward--
       ``(1) feedstock production through the development of crops 
     and cropping systems relevant to production of raw materials 
     for conversion to biobased fuels and biobased products, 
     including--
       ``(A) development of advanced and dedicated crops with 
     desired features, including enhanced productivity, broader 
     site range, low requirements for chemical inputs, and 
     enhanced processing;
       ``(B) advanced crop production methods to achieve the 
     features described in subparagraph (A);
       ``(C) feedstock harvest, handling, transport, and storage; 
     and
       ``(D) strategies for integrating feedstock production into 
     existing managed land;
       ``(2) overcoming recalcitrance of cellulosic biomass 
     through developing technologies for converting cellulosic 
     biomass into intermediates that can subsequently be converted 
     into biobased fuels and biobased products, including--
       ``(A) pretreatment in combination with enzymatic or 
     microbial hydrolysis; and
       ``(B) thermochemical approaches, including gasification and 
     pyrolysis;
       ``(3) product diversification through technologies relevant 
     to production of a range of biobased products (including 
     chemicals, animal feeds, and cogenerated power) that 
     eventually can increase the feasibility of fuel production in 
     a biorefinery, including--
       ``(A) catalytic processing, including thermochemical fuel 
     production;
       ``(B) metabolic engineering, enzyme engineering, and 
     fermentation systems for biological production of desired 
     products or cogeneration of power;
       ``(C) product recovery;
       ``(D) power production technologies; and
       ``(E) integration into existing biomass processing 
     facilities, including starch ethanol plants, paper mills, and 
     power plants; and
       ``(4) analysis that provides strategic guidance for the 
     application of biomass technologies in accordance with 
     realization of societal benefits in improved sustainability 
     and environmental quality, cost effectiveness, security, and 
     rural economic development, usually featuring system-wide 
     approaches.
       ``(f) Additional Considerations.--Within the technical 
     areas described in subsection (e), and in addition to 
     advancing the purposes described in subsection (d) and the 
     objectives described in subsection (c), the Secretaries shall 
     support research and development--
       ``(1) to create continuously expanding opportunities for 
     participants in existing biofuels production by seeking 
     synergies and continuity with current technologies and 
     practices, including the use of dried distillers grains as a 
     bridge feedstock;
       ``(2) to maximize the environmental, economic, and social 
     benefits of production of biobased fuels and biobased 
     products on a large scale through life-cycle economic and 
     environmental analysis and other means; and
       ``(3) to assess the potential of Federal land and land 
     management programs as feedstock resources for biobased fuels 
     and biobased products, consistent with the integrity of soil 
     and water resources and with other environmental 
     considerations.
       ``(g) Eligible Entities.--To be eligible for a grant, 
     contract, or assistance under this section, an applicant 
     shall be--
       ``(1) an institution of higher education;
       ``(2) a national laboratory;
       ``(3) a Federal research agency;
       ``(4) a State research agency;
       ``(5) a private sector entity;
       ``(6) a nonprofit organization; or
       ``(7) a consortium of 2 of more entities described in 
     paragraphs (1) through (6).
       ``(h) Administration.--
       ``(1) In general.--After consultation with the Board, the 
     points of contact shall--
       ``(A) publish annually 1 or more joint requests for 
     proposals for grants, contracts, and assistance under this 
     section;
       ``(B) establish a priority in grants, contracts, and 
     assistance under this section for research that advances the 
     objectives, purposes, and additional considerations of this 
     title;
       ``(C) require that grants, contracts, and assistance under 
     this section be awarded competitively, on the basis of merit, 
     after the establishment of procedures that provide for 
     scientific peer review by an independent panel of scientific 
     and technical peers; and
       ``(D) give some preference to applications that--
       ``(i) involve a consortia of experts from multiple 
     institutions;
       ``(ii) encourage the integration of disciplines and 
     application of the best technical resources; and
       ``(iii) increase the geographic diversity of demonstration 
     projects.

[[Page 12133]]

       ``(2) Distribution of funding by technical area.--Of the 
     funds authorized to be appropriated for activities described 
     in this section--
       ``(A) 20 percent shall be used to carry out activities for 
     feedstock production under subsection (e)(1);
       ``(B) 45 percent shall be used to carry out activities for 
     overcoming recalcitrance of cellulosic biomass under 
     subsection (e)(2);
       ``(C) 30 percent shall be used to carry out activities for 
     product diversification under subsection (e)(3); and
       ``(D) 5 percent shall be used to carry out activities for 
     strategic guidance under subsection (e)(4).
       ``(3) Distribution of funding within each technical area.--
     Within each technical area described in paragraphs (1) 
     through (3) of subsection (e)--
       ``(A) 15 percent of funds shall be used for applied 
     fundamentals;
       ``(B) 35 percent of funds shall be used for innovation; and
       ``(C) 50 percent of funds shall be used for demonstration.
       ``(4) Matching funds.--
       ``(A) In general.--A minimum 20 percent funding match shall 
     be required for demonstration projects under this title.
       ``(B) No other requirement.--No matching funds shall be 
     required for other activities under this title.
       ``(5) Technology and information transfer to agricultural 
     users.--
       ``(A) In general.--The Administrator of the Cooperative 
     State Research, Education, and Extension Service and the 
     Chief of the Natural Resources Conservation Service shall 
     ensure that applicable research results and technologies from 
     the Initiative are adapted, made available, and disseminated 
     through those services, as appropriate.
       ``(B) Report.--Not later than 2 years after the date of 
     enactment of this paragraph, and every 2 years thereafter, 
     the Administrator of the Cooperative State Research, 
     Education, and Extension Service and the Chief of the Natural 
     Resources Conservation Service shall submit to the committees 
     of Congress with jurisdiction over the Initiative a report 
     describing the activities conducted by the services under 
     this subsection.''.

     SEC. 106. REPORTS.

       Section 309 of the Biomass Research and Development Act of 
     2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2), by striking ``industrial product'' 
     and inserting ``fuels and biobased products''; and
       (B) in paragraph (3), by striking ``industrial products'' 
     each place it appears and inserting ``fuels and biobased 
     products'';
       (2) by redesignating subsection (b) as subsection (c);
       (3) by inserting after subsection (a) the following:
       ``(b) Assessment Report and Strategic Plan.--Not later than 
     1 year after the date of enactment of the National Security 
     and Bioenergy Investment Act of 2005, the Secretary and the 
     Secretary of Energy shall jointly submit to Congress a report 
     that--
       ``(1) describes the status and progress of current research 
     and development efforts in both the Federal Government and 
     private sector in achieving the objectives, purposes, and 
     considerations of this title, specifically addressing each of 
     the technical areas identified in section 307(e);
       ``(2) describes the actions taken to implement the 
     improvements directed by this title; and
       ``(3) outlines a strategic plan for achieving the 
     objectives, purposes, and considerations of this title.''; 
     and
       (4) in subsection (c) (as redesignated by paragraph (2))--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``purposes described 
     in section 307(b)'' and inserting ``objectives, purposes, and 
     additional considerations described in subsections (c) 
     through (f) of section 307'';
       (ii) in subparagraph (B), by striking ``and'' at the end;
       (iii) by redesignating subparagraph (C) as subparagraph 
     (D); and
       (iv) by inserting after subparagraph (B) the following:
       ``(C) achieves the distribution of funds described in 
     paragraphs (2) and (3) of section 307(h); and''; and
       (B) in paragraph (2), by striking ``industrial products'' 
     and inserting ``fuels and biobased products''.

     SEC. 107. FUNDING.

       (a) Funding.--Section 310(a)(2) of the Biomass Research and 
     Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 
     note) is amended by striking ``$14,000,000 for each of fiscal 
     years 2003 through 2007'' and inserting ``$200,000,000 for 
     each of fiscal years 2006 through 2010''.
       (b) Authorization of Appropriations.--Section 310(b) of the 
     Biomass Research and Development Act of 2000 (Public Law 106-
     224; 7 U.S.C. 8101 note) is amended by striking ``title 
     $54,000,000 for each of fiscal years 2002 through 2007'' and 
     inserting``title $200,000,000 for fiscal year 2011 and each 
     fiscal year thereafter''.

     SEC. 108. TERMINATION OF AUTHORITY.

       The Biomass Research and Development Act of 2000 (Public 
     Law 106-224; 7 U.S.C. 8101 note) is amended by striking 
     section 311.

     SEC. 109. BIOMASS-DERIVED HYDROGEN.

       (a) In General.--The Secretary shall conduct a research, 
     development, and demonstration program focused on the 
     economic production and use of hydrogen from biofuels, with 
     emphasis on the rural transportation and rural electrical 
     generation sectors.
       (b) Transportation Sector Objectives.--The objectives of 
     the program in the transportation sector shall be to--
       (1) conduct research, and to develop and test processes and 
     equipment, to produce low-cost liquid biobased fuels that can 
     be transported to distant fueling stations for the production 
     of hydrogen or for direct use in conventional internal 
     combustion engine vehicles;
       (2) demonstrate the cost-effective production of hydrogen 
     from liquid biobased fuels at the local fueling station, to 
     eliminate the costs of transporting hydrogen long distances 
     or building hydrogen pipeline networks;
       (3) demonstrate the use of hydrogen derived from liquid 
     biobased fuels in fuel cell vehicles, or, as an interim cost-
     reduction option, in internal combustion engine hybrid 
     electric vehicles, to demonstrate sustainable transportation 
     with significantly reduced local air pollution, greenhouse 
     gas emissions, and dependence on imported fossil fuels;
       (4) evaluate the economic return to agricultural producers 
     producing feedstocks for liquid biobased fuels compared to 
     agricultural producer returns as of the date of enactment of 
     this Act;
       (5) evaluate the crop yield and long-term soil 
     sustainability of growing and harvesting feedstocks for 
     liquid biobased fuels; and
       (6) evaluate the fuel costs to fuel cell car owners (or 
     hybrid electric car owners running on hydrogen) per mile 
     driven compared to burning gasoline in conventional vehicles.
       (c) Electrical Generation Sector Objectives.--The 
     objectives of the program in the rural electrical generation 
     sector shall be to--
       (1) design, develop, and test low-cost gasification 
     equipment to convert biomass to hydrogen at regional rural 
     cooperatives, or at businesses owned by farmers, close to 
     agricultural operations to minimize the cost of biomass 
     transportation to large central gasification plants;
       (2) demonstrate low-cost electrical generation at such 
     rural cooperatives or farmer-owned businesses, using 
     renewable hydrogen derived from biomass in either fuel cell 
     generators, or, as an interim cost reduction option, in 
     conventional internal combustion engine gensets;
       (3) determine the economic return to cooperatives or other 
     businesses owned by farmers of producing hydrogen from 
     biomass and selling electricity compared to agricultural 
     economic returns from producing and selling conventional 
     crops alone;
       (4) evaluate the crop yield and long-term soil 
     sustainability of growing and harvesting of feedstocks for 
     biomass gasification, and
       (5) demonstrate the use of a portion of the biomass-derived 
     hydrogen in various agricultural vehicles to reduce--
       (A) dependence on imported fossil fuel; and
       (B) environmental impacts.
       (d) Authorization for Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2006 through 2010.

                    TITLE II--PRODUCTION INCENTIVES

     SEC. 201. PRODUCTION INCENTIVES.

       (a) Purpose.--The purpose of this section is to--
       (1) accelerate deployment and commercialization of 
     biofuels;
       (2) deliver the first 1,000,000,000 gallons of cellulosic 
     biofuels by 2015;
       (3) ensure biofuels produced after 2015 are cost 
     competitive with gasoline and diesel; and
       (4) ensure that small feedstock producers and rural small 
     businesses are full participants in the development of the 
     cellulosic biofuels industry.
       (b) Definitions.--In this section:
       (1) Cellulosic biofuels.--The term ``cellulosic biofuels'' 
     means any fuel that is produced from cellulosic feedstocks.
       (2) Eligible entity.--The term ``eligible entity'' means a 
     producer of fuel from cellulosic biofuels the production 
     facility of which--
       (A) is located in the United States;
       (B) meets all applicable Federal and State permitting 
     requirements;
       (C) is to begin production of cellulosic biofuels not later 
     than 3 years after the date of the reverse auction in which 
     the producer participates; and
       (D) meets any financial criteria established by the 
     Secretary.
       (c) Program.--
       (1) Establishment.--The Secretary, in consultation with the 
     Secretary of Energy, the Secretary of Defense, and the 
     Administrator of the Environmental Protection Agency, shall 
     establish an incentive program for the production of 
     cellulosic biofuels.
       (2) Basis of incentives.--Under the program, the Secretary 
     shall award production incentives on a per gallon basis of 
     cellulosic biofuels from eligible entities, through--
       (A) set payments per gallon of cellulosic biofuels produced 
     in an amount determined

[[Page 12134]]

     by the Secretary, until initiation of the first reverse 
     auction; and
       (B) reverse auction thereafter.
       (3) First reverse auction.--The first reverse auction shall 
     be held on the earlier of--
       (A) not later than 1 year after the first year of annual 
     production in the United States of 100,000,000 gallons of 
     cellulosic biofuels, as determined by the Secretary; or
       (B) not later than 3 years after the date of enactment of 
     this Act.
       (4) Reverse auction procedure.--
       (A) In general.--On initiation of the first reverse 
     auction, and each year thereafter until the earlier of the 
     first year of annual production in the United States of 
     1,000,000,000 gallons of cellulosic biofuels, as determined 
     by the Secretary, or 10 years after the date of enactment of 
     this Act, the Secretary shall conduct a reverse auction at 
     which--
       (i) the Secretary shall solicit bids from eligible 
     entities;
       (ii) eligible entities shall submit--

       (I) a desired level of production incentive on a per gallon 
     basis; and
       (II) an estimated annual production amount in gallons; and

       (iii) the Secretary shall issue awards for the production 
     amount submitted, beginning with the eligible entity 
     submitting the bid for the lowest level of production 
     incentive on a per gallon basis, until the amount of funds 
     available for the reverse auction is committed.
       (B) Amount of incentive received.--An eligible entity 
     selected by the Secretary through a reverse auction shall 
     receive the amount of performance incentive requested in the 
     auction for each gallon produced and sold by the entity 
     during the first 6 years of operation.
       (d) Limitations.--Awards under this section shall be 
     limited to--
       (1) a per gallon amount determined by the Secretary during 
     the first 4 years of the program;
       (2) a declining per gallon cap over the remaining lifetime 
     of the program, to be established by the Secretary so that 
     cellulosic biofuels produced after the first year of annual 
     cellulosic biofuels production in the United States in excess 
     of 1,000,000,000 gallons are cost competitive with gasoline 
     and diesel;
       (3) not more than 25 percent of the funds committed within 
     each reverse auction to any 1 project;
       (4) not more than $100,000,000 in any 1 year; and
       (5) not more than $1,000,000,000 over the lifetime of the 
     program.
       (e) Priority.--In selecting a project under the program, 
     the Secretary shall give priority to projects that--
       (1) demonstrate outstanding potential for local and 
     regional economic development;
       (2) include agricultural producers or cooperatives of 
     agricultural producers as equity partners in the ventures; 
     and
       (3) have a strategic agreement in place to fairly reward 
     feedstock suppliers.
       (f) Funding.--
       (1) In general.--The Secretary shall use to carry out this 
     title $250,000,000 of funds of the Commodity Credit 
     Corporation, to remain available until expended.
       (2) Authorizations of appropriations.--In addition to 
     amounts made available under paragraph (1), there are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.

 TITLE III--ASSISTANT SECRETARY OF AGRICULTURE FOR ENERGY AND BIOBASED 
                                PRODUCTS

     SEC. 301. ASSISTANT SECRETARY OF AGRICULTURE FOR ENERGY AND 
                   BIOBASED PRODUCTS.

       (a) Establishment.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall establish in the 
     Department a position of Assistant Secretary of Agriculture 
     for Energy and Biobased Products (referred to in this section 
     as the ``Assistant Secretary'').
       (b) Responsibilities.--The Assistant Secretary shall be 
     responsible for--
       (1) the energy programs established under title IX of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8101 
     et seq.); and
       (2) all other programs and initiatives that the Secretary 
     considers appropriate.
       (c) Confirmation Requirement.--The Assistant Secretary 
     shall be appointed by the President, by and with the advice 
     and consent of the Senate.
       (d) Personnel.--The Secretary, acting through the Assistant 
     Secretary, may transfer or assign work to personnel, or 
     assign staff hours, on a permanent or a part-time basis, as 
     needed, to the Office of the Assistant Secretary to carry out 
     the functions and duties of the office.
       (e) Budget.--The Secretary shall establish a budget for the 
     office of the Assistant Secretary.

               TITLE IV--PROCUREMENT OF BIOBASED PRODUCTS

     SEC. 401. FEDERAL PROCUREMENT.

       (a) Definition of Procuring Agency.--Section 9001 of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     8101) is amended--
       (1) by redesignating paragraphs (4), (5), and (6) as 
     paragraphs (5), (6), and (7), respectively; and
       (2) by inserting after paragraph (3) the following:
       ``(4) Procuring agency.--The term `procuring agency' 
     means--
       ``(A) any Federal agency that is using Federal funds for 
     procurement; or
       ``(B) any person contracting with any Federal agency with 
     respect to work performed under the contract.''.
       (b) Procurement.--Section 9002 of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 8102) is amended--
       (1) by striking ``Federal agency'' each place it appears 
     (other than in subsections (f) and (g)) and inserting 
     ``procuring agency'';
       (2) in subsection (c)(2)--
       (A) by striking ``(2)'' and all that follows through 
     ``Notwithstanding'' and inserting the following:
       ``(2) Flexibility.--Notwithstanding'';
       (B) by striking ``an agency'' and inserting ``a procuring 
     agency''; and
       (C) by striking ``the agency'' and inserting ``the 
     procuring agency'';
       (3) in subsection (d), by striking ``procured by Federal 
     agencies'' and inserting ``procured by procuring agencies''; 
     and
       (4) in subsection (f), by striking ``Federal agencies'' and 
     inserting ``procuring agencies'' .

     SEC. 402. CAPITOL COMPLEX PROCUREMENT.

       Section 9002 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 8102) (as amended by section 401(b)) is 
     amended--
       (1) by redesignating subsection (j) as subsection (k); and
       (2) by inserting after subsection (i) the following:
       ``(j) Inclusion.--Not later than 90 days after the date of 
     enactment of the National Security and Bioenergy Investment 
     Act of 2005, the Architect of the Capitol, the Sergeant of 
     Arms of the Senate, and the Chief Administrative Officer of 
     the House of Representatives shall issue regulations that 
     apply the requirements of this section to procurement for the 
     Capitol Complex.''.

     SEC. 403. EDUCATION .

       (a) In General.--The Architect of the Capitol shall 
     establish in the Capitol Complex a program of public 
     education regarding use by the Architect of the Capitol of 
     biobased products.
       (b) Purposes.--The purposes of the program shall be--
       (1) to establish the Capitol Complex as a showcase for the 
     existence and benefits of biobased products; and
       (2) to provide access to further information on biobased 
     products to occupants and visitors.

     SEC. 404. REGULATIONS.

       Requirements issued under the amendment made by section 402 
     shall be made in accordance with regulations issued by the 
     Committee on Rules and Administration of the Senate and the 
     Committee on House Administration of the House of 
     Representatives.

             TITLE V--BIOECONOMY GRANTS AND TAX INCENTIVES

     SEC. 501. SMALL BUSINESS BIOPRODUCT MARKETING AND 
                   CERTIFICATION GRANTS.

       (a) In General.--Using amounts made available under 
     subsection (g), the Secretary shall make available on a 
     competitive basis grants to eligible entities described in 
     subsection (b) for the biobased product marketing and 
     certification purposes described in subsection (c).
       (b) Eligible Entities.--An entity eligible for a grant 
     under this section is any manufacturer of biobased products 
     that--
       (1) has fewer than 50 employees;
       (2) proposes to use the grant for the biobased product 
     marketing and certification purposes described in subsection 
     (c); and
       (3) has not previously received a grant under this section.
       (c) Biobased Product Marketing and Certification Grant 
     Purposes.--A grant made under this section shall be used--
       (1) to plan activities and working capital for marketing of 
     biobased products; and
       (2) to provide private sector cost sharing for the 
     certification of biobased products.
       (d) Matching Funds.--
       (1) In general.--Grant recipients shall provide matching 
     non-Federal funds equal to the amount of the grant received.
       (2) Expenditure.--Matching funds shall be expended in 
     advance of grant funding, so that for every dollar of grant 
     that is advanced, an equal amount of matching funds shall 
     have been funded prior to submitting the request for 
     reimbursement.
       (e) Amount.--A grant made under this section shall not 
     exceed $100,000.
       (f) Administration.--The Secretary shall establish such 
     administrative requirements for grants under this section, 
     including requirements for applications for the grants, as 
     the Secretary considers appropriate.
       (g) Authorizations of Appropriations.--There are authorized 
     to be appropriated to make grants under this section--
       (1) $1,000,000 for fiscal year 2006; and
       (2) such sums as are necessary for fiscal year 2007 and 
     each subsequent fiscal year.

[[Page 12135]]



     SEC. 502. REGIONAL BIOECONOMY DEVELOPMENT GRANTS.

       (a) In General.--Using amounts made available under 
     subsection (g), the Secretary shall make available on a 
     competitive basis grants to eligible entities described in 
     subsection (b) for the purposes described in subsection (c).
       (b) Eligible Entities.--An entity eligible for a grant 
     under this section is any regional bioeconomy development 
     association, agricultural or energy trade association, or 
     Land Grant institution that--
       (1) proposes to use the grant for the purposes described in 
     subsection (c); and
       (2) has not previously received a grant under this section.
       (c) Regional Bioeconomy Development Association Grant 
     Purposes.--A grant made under this section shall be used to 
     support and promote the growth and development of the 
     bioeconomy within the region served by the eligible entity, 
     through coordination, education, outreach, and other 
     endeavors by the eligible entity.
       (d) Matching Funds.--
       (1) In general.--Grant recipients shall provide matching 
     non-Federal funds equal to the amount of the grant received.
       (2) Expenditure.--Matching funds shall be expended in 
     advance of grant funding, so that for every dollar of grant 
     that is advanced, an equal amount of matching funds shall 
     have been funded prior to submitting the request for 
     reimbursement.
       (e) Administration.--The Secretary shall establish such 
     administrative requirements for grants under this section, 
     including requirements for applications for the grants, as 
     the Secretary considers appropriate.
       (f) Amount.--A grant made under this section shall not 
     exceed $500,000.
       (g) Authorizations of Appropriations.--There are authorized 
     to be appropriated to make grants under this section--
       (1) $1,000,000 for fiscal year 2006; and
       (2) such sums as are necessary for fiscal year 2007 and 
     each subsequent fiscal year.

     SEC. 503. PREPROCESSING AND HARVESTING DEMONSTRATION GRANTS.

       (a) In General.--The Secretary shall make grants available 
     on a competitive basis to enterprises owned by agricultural 
     producers, for the purposes of demonstrating cost-effective, 
     cellulosic biomass innovations in--
       (1) preprocessing of feedstocks, including cleaning, 
     separating and sorting, mixing or blending, and chemical or 
     biochemical treatments, to add value and lower the cost of 
     feedstock processing at a biorefinery; or
       (2) 1-pass or other efficient, multiple crop harvesting 
     techniques.
       (b) Limitations on Grants.--
       (1) Number of grants.--Not more than 5 demonstration 
     projects per fiscal year shall be funded under this section.
       (2) Non-federal cost share.--The non-Federal cost share of 
     a project under this section shall be not less than 20 
     percent, as determined by the Secretary.
       (c) Condition of Grant.--To be eligible for a grant for a 
     project under this section, a recipient of a grant or a 
     participating entity shall agree to use the material 
     harvested under the project--
       (1) to produce ethanol; or
       (2) for another energy purpose, such as the generation of 
     heat or electricity.
       (d) Authorization for Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2006 through 2010.

     SEC. 504. SENSE OF THE SENATE.

       It is the sense of the Senate that Congress should amend 
     the Federal tax code to encourage investment in, and 
     production and use of, biobased fuels and biobased products 
     through--
       (1) an investment tax credit for the construction or 
     modification of facilities for the production of fuels from 
     cellulose biomass, to drive private capital towards new 
     biorefinery projects in a manner that allows participation by 
     smaller farms and cooperatives; and
       (2) an investment tax credit to small manufacturers of 
     biobased products to lower the capital costs of starting and 
     maintaining a biobased business.

                       TITLE VI--OTHER PROVISIONS

     SEC. 601. EDUCATION AND OUTREACH.

       (a) In General.--The Secretary shall establish, within the 
     Department or through an independent contracting entity, a 
     program of education and outreach on biobased fuels and 
     biobased products consisting of--
       (1) training and technical assistance programs for 
     feedstock producers to promote producer ownership, 
     investment, and participation in the operation of processing 
     facilities; and
       (2) public education and outreach to familiarize consumers 
     with the biobased fuels and biobased products.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this title $1,000,000 for 
     each of fiscal years 2006 through 2010.

     SEC. 602. REPORTS.

       (a) Progress Report.--Not later than 1 year after the date 
     of enactment of this Act, the Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report on progress in establishing the Office of the 
     Assistant Secretary of Agriculture for Energy and Biobased 
     Products under title I.
       (b) Biobased Product Potential.--Not later than 1 year 
     after the date of enactment of this Act, the Secretary shall 
     submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that--
       (1) describes the economic potential for the United States 
     of the widespread production and use of commercial and 
     industrial biobased products through calendar year 2025; and
       (2) as the maximum extent practicable, identifies the 
     economic potential by product area.
       (c) Analysis of Economic Indicators.--Not later than 2 
     years after the date of enactment of this Act, and every 2 
     years thereafter, the Secretary shall submit to Congress an 
     analysis of economic indicators of the biobased economy 
     during the 2-year period preceding the analysis.
                                  ____

                                                     June 9, 2005.
     Hon. Tom Harkin,
     U.S. Senate,
     Washington, DC.
     Hon. Richard Lugar,
     U.S. Senate,
     Washington, DC.
     Re: the National Security and Bioenergy Investment Act of 
         2005.

       Dear Senators Harkin and Lugar: The National Corn Growers 
     Association (NCGA), the American Soybean Association (ASA), 
     and the Renewable Fuels Association are writing to express 
     our support for the National Security and Bioenergy 
     Investment Act of 2005. In particular, we strongly support 
     the increased procurement of biobased products by Federal 
     agencies and all Federal government contractors. Biobased 
     products represent a large potential growth market for corn 
     and soybean growers in areas such as plastics, solvents, 
     packaging and other consumer goods to provide markets for 
     U.S.-grown crops. The biobased product industry has already 
     started to grow, bringing new products to consumers, new 
     markets to growers and new investments to our communities.
       The procurement of biobased products promotes energy and 
     environmental security. Products made from corn and soybeans 
     could replace a variety of items currently produced from 
     petroleum, and aid in reducing dependence on imported oil. 
     Already the production of ethanol and biodiesel reduces 
     imports by more than 140 million barrels of oil. The 
     production of biobased products generates less greenhouse gas 
     than traditional petroleum-based items. There are also 
     tremendous opportunities for grower-owned processing 
     facilities and rural American and agriculture as a whole. New 
     jobs and investments will be brought into rural communities, 
     as new processing and manufacturing facilities move into 
     those communities to be near renewable feed stocks.
       NCGA, ASA and RFA applaud your continued efforts to promote 
     the use of biobased products that will encourage the 
     development of new markets for corn and soybeans and 
     ultimately help to revitalize rural economies and the 
     agriculture industry as a whole. We have been avid supporters 
     of the biobased products industry, and we look forward to 
     working with you as you continue to provide vision and 
     direction for this emerging industry.
           Sincerely,
     Leon Corzine,
       President, National Corn Growers Association.
     Neal Bredehoeft,
       President, American Soybean Association.
     Bob Dinneen,
       President, Renewable Fuels Association.
                                  ____



                                 Governors' Ethanol Coalition,

                                        Lincoln, NE, June 9, 2005.
     Hon. Tom Harkin,
     Hart Senate Office Building,
     Washington, DC.
     Hon. Barack Obama,
     Hart Senate Office Building,
     Washington, DC.
     Hon. Richard Lugar,
     Hart Senate Office Building,
     Washington, DC.
     Hon. Norm Coleman,
     Hart Senate Office Building,
     Washington, DC.
       Dear Senators: On behalf of the thirty members of the 
     Governors' Ethanol Coalition, we strongly support and endorse 
     the National Security and Bioenergy Investment Act of 2005, 
     as well as your efforts to expand development of other 
     biofue1s and co-products. The Governors' Ethanol Coalition is 
     pleased that this bill embodies the recommendations developed 
     by the Coalition in Ethanol From Biomass, America's 21st 
     Century Transportation Fuel. When signed into law, this act 
     will catalyze needed research, production, and use of 
     biofue1s and bio-based products, thereby enhancing our 
     economic, environmental, and national security.
       The Coalition believes that the nation's dependency on 
     imported oil presents a huge

[[Page 12136]]

     risk to this country's future. The combination of political 
     tensions in major oi1-producing nations with growing oil 
     demand from China and India is seriously threatening our 
     national security. Moreover, as we import greater amounts of 
     oil each year, we are draining more and more of the wealth 
     from our states.
       The key provisions contained in your bill bring focus and 
     resources to biomass-derived ethanol research and 
     commercialization efforts. The result, over time, will be the 
     replacement of significant amounts of imported oil with 
     domestically produced fuels--improving our rural economies, 
     cleaning our air, and contributing to our national security. 
     Of particular importance is the bill's aim to broaden ethanol 
     production to include all regions of the nation so that many 
     more states will reap the benefits of biofuels.
       Again, thank you for inclusion of the Coalition's 
     recommendations in this landmark legislation. Please let us 
     know how the Coalition can help with the passage of this very 
     important legislation. The continued expansion of ethanol 
     production and use, particularly biomass-derived fuels, and 
     the accompanying economic growth and environmental benefits 
     for our states is essential to the nation's long-term 
     economic vitality and national security.
           Sincere1y,
     Tim Pawlenty,
       Chair, Governor of Minnesota.
     Kathleen Sebelius,
       Vice Chair, Governor of Kansas.
                                  ____



                         Energy FutureSM Coalition,

                                     Washington, DC, June 8, 2005.
     Hon. Tom Harkin,
     Hon. Richard G. Lugar,
     U.S. Senate,
     Washington, DC.
       Dear Senators Harkin and Lugar: On behalf of the Energy 
     Future Coalition, I am writing to commend your leadership and 
     vision in drafting the National Security and Bioenergy 
     Investment Act of 2005.
       In our judgment, America's growing dependence on foreign 
     oil endangers our national and economic security. We believe 
     the Federal government should undertake a major new 
     initiative to curtail U.S. oil consumption through improved 
     efficiency and the rapid development and deployment of 
     advanced biomass, alcohol and other available petroleum fuel 
     alternatives.
       With such a push, we believe domestic biofuels can cut the 
     nation's oil use by 25 percent by 2025, and substantial 
     further reductions are possible through efficiency gains from 
     advanced technologies. That is an ambitious goal, but it is 
     also an extraordinary opportunity for American leadership, 
     innovation, job creation, and economic growth.
       You took an important step forward by introducing S. 650, 
     the Fuels Security Act, incorporated into the Senate energy 
     bill during Committee markup. This legislation is another 
     important step, authorizing the additional research and 
     development and federal incentives needed to accelerate the 
     adoption of biobased fuels and coproducts. We are pleased to 
     support it.
            Sincerely,
     Reid Detchon.
                                  ____

                                            Biotechnology Industry


                                                 Organization,

                                     Washington, DC, June 8, 2005.
     Hon. Tom Harkin,
      Ranking Democratic Member.
     Hon. Richard Lugar,
     Member, U.S. Senate Committee on Agriculture, Nutrition and 
         Forestry, Russell Senate Office Building, Washington, DC.
       Dear Senators Harkin and Lugar: The Biotechnology Industry 
     Organization (BIO) Industrial and Environmental Section fully 
     supports the National Security and Bioenergy Investment Act 
     of 2005. We greatly appreciate your vision and initiative to 
     expand the Biomass Research and Development Act and to create 
     new incentives to produce biofuels and biobased products.
       America's growing dependence on foreign energy is eroding 
     our national security. We must take steps to drastically 
     increase production of domestic energy. As an active 
     participant in the Energy Future Coalition, BIO believes this 
     country needs a major new initiative to more aggressively 
     research, develop and deploy advanced biofuels technologies. 
     With sufficient government support, we can meet up to 25% of 
     our transportation fuel needs by converting farm crops and 
     crop residues to transportation fuel.
       The National Security and Bioenergy Investment Act of 2005 
     will boost the use of industrial biotechnology to produce 
     fuels and biobased products from renewable agricultural 
     feedstocks. With the use of new biotech tools, we can now 
     utilize millions of tons of crop residues, such as corn 
     stover and wheat straw, to produce sugars that can then be 
     converted to ethanol, chemicals and bio-based plastics. These 
     biotech tools can only be rapidly deployed if federal policy 
     makers take steps to help our innovative companies get over 
     the initial hurdles they face during the commercialization 
     phase of bioenergy production and your bill will help get 
     that job done.
       We are pleased to endorse this visionary legislation.
           Sincerely,
     Brent Erickson,
       Executive Vice President, Biotechnology Industry 
     Organization.
                                  ____



                            Natural Resources Defense Council,

                                     Washington, DC, June 7, 2005.
       Dear Senators Harkin and Lugar: The Natural Resources 
     Defense Council strongly supports the National Security and 
     Bioenergy Investment Act of 2005, which you introduced today. 
     This important bill would expand and refine research, 
     development, demonstration and deployment efforts for the 
     production of energy from crops grown by farmers here in 
     America. The bill would also expand and improve the 
     Department of Agriculture's efforts to promote a biobased 
     economy, federal bio-energy and bio-product purchasing 
     requirements, and federal educational efforts.
       The Research and Development (R&D) title of this bill 
     continues your tradition of leadership in this area by 
     updating the Biomass Research and Development Act of 2000, 
     which you also crafted. This title will not only extend the 
     provisions of the original bill and greatly increase the 
     funding for these provisions, it will also refine the 
     direction of this funding. Taken together, these changes 
     maximize the impacts of R&D on the greatest challenges facing 
     cellulosic biofuels today.
       Your bill also creates extremely important production 
     incentives for the first one billion gallons of cellulosic 
     biofuels. The production incentives approach taken by the 
     bill--a combination of fixed incentives per gallon at first, 
     switching over to a reverse auction--will maximize the 
     development of cellulosic biofuels production while 
     minimizing the cost to taxpayers.
       In addition, the bill creates an Assistant Secretary of 
     Agriculture for Energy and Biobased Products. Coupled with 
     the bill's development grants, tax incentives, biobased 
     product procurement provisions, and educational program, the 
     bill would make a huge contribution to developing a 
     sustainable biobased economy, reducing our oil dependence and 
     improving our national security.
       The technologies advanced by this bill will undoubtedly 
     make important contributions to reducing our global warming 
     pollution and the air and water pollution that comes from our 
     dependence on fossil fuels. We are concerned, however, that 
     the eligibility provisions for forest biomass do not exclude 
     sensitive areas that need protecting, including roadless 
     areas, old growth forests, and other endangered forests, and 
     do not restrict eligibility to renewable sources or prohibit 
     possible conversion of native forests to plantations. We know 
     that you do not want to see this admirable legislation 
     applied in ways that exploit these features, and will be 
     happy to work with you in the future to take any steps needed 
     if abuses arise.
           Sincerely,
                                                    Karen Wayland,
     Legislative Director.
                                  ____

                                             Environmental Law and


                                                Policy Center,

                                        Chicago, IL, June 8, 2005.
     Hon. Tom Harkin,
     Hon. Richard G. Lugar,
     U.S. Senate,
     Washington, DC.
       Dear Senators Harkin and Lugar: The Environmental Law and 
     Policy Center (``ELPC'') is pleased to support the National 
     Security and Bioenergy Investment Act of 2005, and we commend 
     you for your leadership and vision in introducing this 
     legislation. This bill would accelerate research, 
     development, demonstration and production efforts for energy 
     from farm crops in the United States, especially cellulosic 
     ethanol. It also will expand and prioritize the United States 
     Department of Agriculture's leadership responsibilities to 
     promote clean and sustainable energy development, and it will 
     increase procurement of biobased products.
       By significantly expanding the development and production 
     of clean energy ``cash crops,'' this legislation will improve 
     our environmental quality, stimulate significant rural 
     economic development, and strengthen our national energy 
     security. ELPC also appreciates that this legislation 
     reflects your longstanding support for farm-based sustainable 
     energy programs. ELPC strongly supported your successful 
     efforts to create the new Energy Title in the 2002 Farm Bill, 
     which established groundbreaking new federal incentives for 
     renewable energy and energy efficiency, while renewing 
     existing programs such as the Biomass Research and 
     Development Act of 2000.
       The National Security and Bioenergy Investment Act of 2005 
     is a natural complement to the 2002 Farm Bill Energy Title 
     programs, and it will help to strengthen support for the 
     right bioenergy production programs in the 2007 Farm Bill. 
     Accordingly, ELPC is pleased to support this legislation.
           Very truly yours,
                                                Howard A. Learner,
                                               Executive Director.

[[Page 12137]]

     
                                  ____
                            Institute for Local Self-Reliance,

                                     Washington, DC, June 6, 2005.
     Hon. Tom Harkin,
     U.S. Senate,
     Washington, DC.
       Dear Senator Tom Harkin: Congratulations on your bill, 
     National Security and Bioenergy Investment Act of 2005. It is 
     a breakthrough piece of legislation. Your well-conceived 
     bill, combining needed executive branch changes, welcome 
     increases in research and development funding and innovative 
     commercialization techniques, can move the use of plants as a 
     fuel and industrial material from the margins of the economy 
     to the mainstream. I urge everyone with an interest in our 
     environmental, agricultural and economic future to support 
     this bill.
           Sincerely,
                                                     David Morris,
                                                   Vice President.
                                 ______
                                 
      By Mr. BINGAMAN:
  S. 1211. A bill to establish an Office of Foreign Science and 
Technology Assessment to enable the United States to effectively 
analyze trends in foreign science and technology, and for other 
purposes; to the Committee on Foreign Relations.
  Mr. BINGAMAN. Mr. President--I rise today to introduce a bill that 
would establish a capability within the State Department Science 
Advisor's Office to assess science and technology outside the United 
States.
  Over the past two years I have traveled to Taiwan, China and India to 
better understand why these developing countries' economies were 
growing so rapidly. I learned that in all cases the primary reason for 
their robust growth was the emergence of a well-trained science and 
engineering workforce that tied directly into their highly competitive 
innovation economies.
  For instance, Taiwan now leads the world in general purpose foundry 
computer chip facilities, controlling about 70 percent of the world 
market. A recent Defense Science Board Report entitled ``High 
Performance Microchip Supply'' notes that by the end of 2005 there will 
be 59 300mm chip fabrication plants with only 16 of these located in 
the United States. The number of U.S. plants has remained constant for 
the past two years, so as the number of Asian foundries has risen, the 
share of these advanced chip making facilities has declined from 30 to 
20 percent. This report also notes that capital expenditures in the 
U.S. chip industry has fallen from a high of 42 percent in 2001 to 33 
percent in 2004. Conversely, Taiwan's investment has increased from 15 
percent in 2002 to 20 percent of the world's capital expenditure in 
chip facilities and now leads Korea, Japan, and Europe.
  There is a good explanation as to why countries such as Taiwan are 
rapidly rising in the high-technology world. Since 1984 Taiwan has made 
steady increases in their investments in the building of science based 
research parks. Hsinchu, their flagship science park, now has over 324 
high technology companies, generating over $22 billion annually in 
gross revenues, and employing a high technology work force exceeding 
100,000. This science park is bounded by two universities and contains 
six national laboratories. Taiwan is now building science parks in the 
middle and south of the island to concentrate on other fields such as 
nanoscience, optoelectronics, and biotechnology. These parks are the 
result of a number of carefully crafted government policies and 
incentives dealing with taxes, real estate, and fundamental research. 
In the area of technology transfer, the Taiwan government helped set up 
the world famous Industrial Technology Research Institute (ITRI) which 
has over 5,000 scientists working to spin out laboratory ideas across 
the ``valley of death'' into new industries. Remarkably, the two chip 
foundry companies which now control 70 percent of the world's foundry 
market were launched from ITRI. As a result of this rapid economic 
growth, Taiwan's technical universities are now world class with their 
own excellent graduate programs. The reason they are side-by-side with 
these large science parks is to supply a steady stream of talented 
researchers.
  Recently, our National Academy of Sciences noted in its report, 
``International Graduate Students and Postdoctoral Scholars,'' that 
Taiwan's domestic economic growth has led to fewer Taiwanese students 
applying to U.S. graduate schools. For the past two decades, Taiwan's 
students were the core supply of talent in our innovative science and 
engineering graduate school programs. Of equal concern, the successful 
Taiwanese scholars who attended graduate school in the United States 20 
or 30 years ago are now returning home and giving back their 
professional wisdom to advance on their birth country's high-technology 
leadership.
  This same story holds true for India. My visit there this January 
yielded similar observations on their rapidly developing high 
technology sector. Since 1990, India has invested in the development of 
software and technology parks and currently has over 40 spread 
throughout the country. These parks were responsible for much of the 
high technology development in software and biotechnology. Indeed, 
multinational companies such as Intel, Microsoft and GE have built 
large research centers there to tap into the intellectual power 
educated at the Indian Institutes of Technology and the Indian 
Institute of Science. GE's Jack Welch R&D Center in Bangalore has 2,300 
Ph.D.'s conducting research in all aspects of their product lines. 
India's GE center now directs their plastics plant in Indiana on how to 
operate more efficiently in real time over the internet. Intel's 
research center has 2,000 product engineers designing the chips 
Americans will use in our computers and home entertainment centers next 
holiday season. The chips designed at Intel's Bangalore center are 
fabricated at their plant in Albuquerque. The tables have turned rather 
dramatically. We used to design the chips here and then they were 
manufactured overseas.
  When I visited Infosys, one of India's largest software companies, I 
was advised that in 2004 they received 1.2 million on-line employment 
applications, gave a standardized test to 300,000 job seekers 
interviewed 30,000, and then hired 10,000. They expect to repeat this 
same process again this year, which illustrates the deep pool of well 
trained talent that India has available. A number of the India's 
leading biotech entrepreneurs I visited with told me they weren't so 
much afraid of losing talent to the U.S. as they were to Singapore, 
with its burgeoning government investments in biotechnology.
  Similar to Taiwan, the National Academy report also documents a rapid 
drop in Indian student applications to U.S. graduate schools. India's 
rapidly developing economy encourages the best and brightest students 
to stay home and study in India rather than consider U.S. graduate 
schools. For the past 20 years, we have relied on this influx of the 
cream of the academic crop I from India and Taiwan to form the high-
tech startup companies of Silicon Valley.
  The stark question before us--whether it involves India, Taiwan, 
China, or Singapore is: are we missing the bigger picture? By the time 
we realize we have a problem in innovation and our investments in 
science and engineering investments, will it be too late? Will these 
Pacific Rim countries have climbed past us up the value chain, and will 
they be able to produce equally innovative high technology product at 
far cheaper costs?
  The bill I am introducing today, may be small, but the consequences 
are enormous. This measure proposes to authorize a capability in the 
office of the Science Advisor to the Secretary of State to conduct 
assessments of the science and technology capabilities in other 
countries such as India, China and Taiwan.
  The director of this office will report to the Secretary of State's 
Science Advisor. The office will to the maximum extent possible utilize 
firms that can conduct science and technology assessments in the 
country of interest to minimize and augment the federal staff. That is 
why I have proposed giving the office generous contracting authorities 
with respect to soliciting contracts and disbursing funds so that it 
may move quickly to gather information on certain topics so that we as 
a nation are not caught by surprise by an advance in a high technology 
area.
  Additionally, this legislation authorizes a Foreign Science and 
Technology

[[Page 12138]]

Assessment Panel whose purpose is to look over the horizon and choose 
topics and technologies to assess, as well as to evaluate the 
timeliness and quality of the reports generated. These reports are to 
be publicly available, benefiting not only our government by ensuring 
the nation's leadership in science and engineering, but also our 
private sector, especially those high technology firms that must 
successfully compete in a fierce global market. The panel members, to 
be selected by the Secretary of State in consultation with the Director 
of the Office of Science and Technology Policy, will be distinguished 
leaders who have expert knowledge about our competitors' capabilities 
in science and technology.
  High technology moves at a rapid rate, and every sign I picked up 
from my science and technology trips to China, India, Taiwan, and Japan 
indicates to me that our government seems to be asleep at the switch 
here at home with regard to understanding how quickly these countries 
are moving up the value chain from simple manufacturing to sustained 
efforts in science and engineering that matches if not exceeds us in 
the innovation cycle. This bill, while a small step forward, will serve 
to ensure that we constantly assess where other countries are in that 
value chain and to make sure we are doing everything possible to 
maintain our leadership in fields of high technology.
  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. 1211

       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 ``Foreign Science and 
     Technology Assessment Act of 2005''.

     SEC. 2. OFFICE OF FOREIGN SCIENCE AND TECHNOLOGY ASSESSMENT.

       (a) Establishment.--There is established within the 
     Department of State an Office of Foreign Science and 
     Technology Assessment.
       (b) Director.--The head of the Office shall be a Director, 
     who shall be the Science Advisor to the Secretary of State.
       (c) Purpose.--The purpose of the Office shall be to assess 
     foreign science and technologies that have the capability to 
     cause a loss of high technology industrial leadership in the 
     United States.
       (d) Operation.--In preparing an assessment of science and 
     technology for a foreign country, the Director shall utilize, 
     to the extent feasible, United States entities capable of 
     operating effectively within such foreign country.
       (e) Availability of Assessments.--The Director shall make 
     each assessment of foreign science and technology prepared by 
     the Office available to the public in a timely manner.
       (f) Authorities.--In order to gain access to technical 
     knowledge, skills, and expertise necessary to prepare an 
     assessment of foreign science and technology, the Secretary 
     of State may utilize individuals and enter into contracts or 
     other arrangements to acquire needed expertise with any 
     agency or instrumentality of the United States, with any 
     State, territory, possession, or any political subdivision 
     thereof, or with any person, firm, association, corporation, 
     or educational institution, with or without reimbursement, 
     and without regard to section 3709 of the Revised Statutes 
     (41 U.S.C. 5) or section 3324 of title 31, United States 
     Code.

     SEC. 3. FOREIGN SCIENCE AND TECHNOLOGY ASSESSMENT PANEL.

       (a) Establishment.--The Secretary of State shall establish 
     a Foreign Science and Technology Assessment Panel.
       (b) Purpose.--The purpose of the Panel shall be to provide 
     advice on assessments performed by the Office of Foreign 
     Science and Technology Assessment, including review of 
     foreign science and technology assessment reports, 
     methodologies, subjects of study, and the means of improving 
     the quality and timeliness of the Office.
       (c) Membership.--The Panel shall consist of 5 members who, 
     by reason of professional background and experience, are 
     specially qualified to provide advice on the activities of 
     science and technology in foreign countries as such 
     activities apply to the United States.
       (d) Appointment.--The Secretary of State, in consultation 
     with the Director of the Office of Science and Technology 
     Policy in the Executive Office of the President, shall 
     appoint the panel members.
       (e) Term.--A member shall be appointed to the Panel for a 
     term of 3 years.
       (f) Authority to Accept Services.--Notwithstanding section 
     1342 of title 31, United States Code, the Secretary of State 
     may accept and employ voluntary and uncompensated services 
     (except for reimbursement of travel expenses) for the 
     purposes of the Panel. An individual providing such a 
     voluntary and uncompensated service may not be considered a 
     Federal employee, except for purposes of chapter 81 of title 
     5, United States Code, with respect to job-incurred 
     disability and title 28, United States Code, with respect to 
     tort claims.

     SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary to carry out this Act.
                                 ______
                                 
      By Ms. STABENOW (for herself and Mr. Levin):
  S. 1212. A bill to require the Commandant of the Coast Guard to 
convey the Coast Guard Cutter Mackinaw, upon its scheduled 
decommissioning, to the City and County of Cheboygan, Michigan, to use 
for purposes of a museum; to the Committee on Commerce, Science, and 
Transportation.
  Ms. STABENOW. Mr. President, I rise today to introduce legislation 
that will convey the United States Coast Guard Cutter Mackinaw to the 
City and County of Cheboygan for use as a museum.
  The United States Coast Guard Cutter Mackinaw, or the ``Big Mac'' as 
she is affectionately called, was commissioned on December 20, 1944. 
Congress commissioned her construction during World War II to keep the 
shipping lanes open during winter months to maintain the production of 
steel. The Mackinaw has provided 60 years of outstanding service to the 
communities and commercial enterprises of the Great Lakes.
  The Mackinaw was a state of the art ice breaker ideally suited for 
the Great Lakes because of her shallower draft, wider beam, and longer 
length than the polar ice breakers that her design was based on. These 
attributes enable the Mackinaw to break a 70 foot wide channel through 
4 feet of solid blue ice to accommodate the largest of the Great Lakes 
ore carriers. She has also plowed through a remarkable 37 feet of 
broken ice.
  The Mackinaw breaks ice for 12 of the 42 weeks of the Great Lakes 
shipping season. Typically, the Mackinaw begins her ice breaking season 
in the first week of March in the Straights of Mackinac and works her 
way up through the Soo Locks, to Whitefish Bay and areas of the St. 
Mary's River before heading to Lake Superior. During her lifetime, the 
Mackinaw has enabled the shipping season to start sooner and last 
longer to enable the annual delivery of 15 tons of iron ore and other 
materials. Later in the year the Mackinaw works in the lower Lakes' 
areas where she serves as a buoy tender, carries fuel and supplies to 
light stations, serves as a training ship, and assists vessels in 
distress when necessary.
  The Mackinaw has been stationed in Cheboygan since she began 
operations in the end of December 1944. She will serve through the 
winter of 2005 and 2006 and then be decommissioned by the Coast Guard. 
The Mackinaw will be a great local attraction, encourage tourism, build 
jobs and aid the local economy.
  The City of Cheboygan and the surrounding community are committed to 
transforming this historic landmark into a museum after she has been 
decommissioned. I am hopeful that she will be maintained for the public 
for years to come. While her age has made her expensive to maintain, 
the Mackinaw can still teach our children and visitors of Michigan's 
Great Lakes heritage.
  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. 1212

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

     SECTION 1. CONVEYANCE OF DECOMMISSIONED COAST GUARD CUTTER 
                   MACKINAW.

       (a) In General.--Upon the scheduled decommissioning of the 
     Coast Guard Cutter MACKINAW, the Commandant of the Coast 
     Guard shall convey all right, title, and interest of the 
     United States in and to that vessel to the City and County of 
     Cheboygan, Michigan, without consideration, if--
       (1) the recipient agrees--
       (A) to use the vessel for purposes of a museum;

[[Page 12139]]

       (B) not to use the vessel for commercial transportation 
     purposes;
       (C) to make the vessel available to the United States 
     Government if needed for use by the Commandant in time of war 
     or a national emergency; and
       (D) to hold the Government harmless for any claims arising 
     from exposure to hazardous materials, including asbestos and 
     polychlorinated biphenyls (PCBs), after conveyance of the 
     vessel, except for claims arising from the use by the 
     Government under subparagraph (C);
       (2) the recipient has funds available that will be 
     committed to operate and maintain the vessel conveyed in good 
     working condition, in the form of cash, liquid assets, or a 
     written loan commitment, and in an amount of at least 
     $700,000; and
       (3) the recipient agrees to any other conditions the 
     Commandant considers appropriate.
       (b) Maintenance and Delivery of Vessel.--Prior to 
     conveyance of the vessel under this section, the Commandant 
     shall, to the extent practical, and subject to other Coast 
     Guard mission requirements, make every effort to maintain the 
     integrity of the vessel and its equipment until the time of 
     delivery. If a conveyance is made under this section, the 
     Commandant shall deliver the vessel at the place where the 
     vessel is located, in its present condition, and without cost 
     to the Government. The conveyance of the vessel under this 
     section shall not be considered a distribution in commerce 
     for purposes of section 6(e) of Public Law 94-469 (15 U.S.C. 
     2605(e)).
       (c) Other Excess Equipment.--The Commandant may convey to 
     the recipient any excess equipment or parts from other 
     decommissioned Coast Guard vessels for use to enhance the 
     vessel's operability and function for purposes of a museum.
                                 ______
                                 
      By Ms. STABENOW (for herself and Mr. Smith):
  S. 1213. A bill to amend the Internal Revenue Code of 1986 to allow a 
refundable credit against income tax for the purchase of a principal 
residence by a first-time homebuyer; to the Committee on Finance.
  Ms. STABENOW. Mr. President, I believe ``home'' is one of the warmest 
words in the English language. At the end of a long day, I think the 
favorite phrase of every hardworking man and woman in this country is: 
``Well, I'll see you tomorrow. I'm going home now.''
  And, that is why I rise today to introduce the First Time Homebuyers' 
Tax Credit Act of 2005.
  The bill I am introducing will spread that warmth by opening the door 
to homeownership to millions of hardworking families, helping them 
cover the initial down payment and closing costs.
  This initiative is in keeping with our longstanding national policy 
of encouraging homeownership.
  Owning a home has always been a fundamental part of the American 
dream.
  We, in Congress, have long recognized the social and economic value 
in high rates of homeownership through laws that we have enacted, such 
as the mortgage interest tax deduction and the capital gains exclusion 
on the sale of a home.
  Over the life of a loan, the mortgage interest tax deduction can save 
homeowners thousands of dollars that they could use for other necessary 
family expenses such as education or health care.
  These benefits, however, are only available to individuals who own 
their own home.
  It is important also to note that owning a home is a principle and 
reliable source of savings as homeowners build equity over the years 
and their homes appreciate.
  For many people, it is home equity--not stocks--that help them 
through the retirement years.
  In addition, owning a home insulates people from spikes in housing 
costs.
  Indeed, while rents may go up, the costs of a fixed monthly mortgage 
payment, in relative terms, will go down over the course of the 
mortgage.
  Clearly, one of the biggest barriers to homeownership for working 
families is the cost of a down payment and the costs associated with 
closing a mortgage.
  According to the Mortgage Bankers Association, typical closing costs 
on an average sized loan of $200,000 can approach approximately $6,000.
  Even with mortgage products that allow a down payment of 3 percent of 
the value of a home, total costs can quickly approach $9,000.
  This is an impossible amount to save for those who are working hard 
to make ends meet. The problem is only getting worse as home values 
climb faster than families can save for a down payment.
  To address this problem, I am introducing the First Time Homebuyers' 
Tax Credit Act of 2005.
  My bill authorizes a one-time tax credit of up to $3,000 for 
individuals and $6,000 for married couples.
  This credit is similar to the existing mortgage interest tax 
deduction in that it creates incentives for people to buy a home.
  To be eligible for the credit, taxpayers must be first-time 
homebuyers who were within the 25 percent bracket or lower in the year 
before they purchase their home. That is $71,950 for single filers, 
$102,800 for heads of household, and $119,950 for joint returns. There 
is a dollar-for-dollar phase-out beyond the cap.
  Normally, tax credits like this are an after-the-fact benefit. They 
do little to get people actually into a home.
  What is particularly innovative and beneficial about the tax credit 
in this bill, however, is that, for the first time, the taxpayer can 
either claim the credit in the year after he or she buys a first home 
or the taxpayer can transfer the credit directly to a lender at 
closing.
  The transferred credit would go toward helping with the down payment 
or closing costs. This is cash at the table.
  As mandated in the bill, the eligible homebuyer would have the money 
for the lender from the Treasury within 30 days of application.
  I am happy to say that this legislation has had strong support. When 
this bill was first introduced in 2003 it garnered the support of: The 
American Bankers Association, America's Community Bankers, the Housing 
Partnership Network, the National Housing Conference, the National 
Congress for Community Economic Development, the National Council of La 
Raza, the National Association of Affordable Housing Lenders, the 
Manufactured Housing Institute, Fannie Mae, Freddie Mac, National 
Community Reinvestment Coalition, Standard Federal Bank, Habitat for 
Humanity, and, the National American Indian Housing Council.
  Clearly, the breadth and diversity of support is strong for this 
legislation.
  This is a bold and aggressive effort to reach out to a large number 
of working families to help them get into this first home.
  The Joint Committee on Taxation has estimated that more than fifteen 
million working people would get into their first home over the next 
seven years because of this new tax credit.
  We are working to send a message to people all over the country that 
if you are working hard to save up enough to get into that first home, 
the Federal government will make a strategic investment in your 
family--it will offer a hand up.
  This is not unlike what we already do through the mortgage interest 
tax deduction for millions of people who are fortunate enough to 
already own their own home.
  We certainly won't do all the hard work for you. You must be frugal 
and save and do most of the work yourself, but we, in Congress, 
understand that it is good for America to enhance homeownership.
  We also understand that this sort of investment in working families 
stimulates the economy.
  No one can deny that when the First Time Homebuyers' Tax Credit is 
enacted and used by millions of people, every single time the credit is 
used, it will be stimulative. Why?
  Because it means someone bought a house. And that generates economic 
activity for multiple small business people. House appraisers and 
Inspectors. Realtors. Lenders. Title insurers. And so on. And there is 
a ripple of economic activity by the new homeowners as they fix up 
their new homes and get settled in.
  Housing has been such a bright light in the sluggish economy we've 
faced for

[[Page 12140]]

the last several years. My bill is designed to ensure that the housing 
sector remains a strong component of our economy.
  Finally, let me close by emphasizing how happy and proud I am that 
this tax legislation is bipartisan. In a closely divided Senate, and a 
closely divided Congress, it is so important to work across the aisle 
and Senator Smith, who is a real champion for good housing policy, is 
someone I want to work closely with on this bill and other important 
housing legislation. He understands how housing tax benefits help build 
strong communities and provide economic security for millions of 
families.
  I am committed to seeing this legislation passed. And, I welcome the 
chance to work with all of my colleagues to see the dream of 
homeownership expanded to all people.
  Home. Sentimentally, it is one of the warmest words in the English 
language. Economically, it's the key word in bringing millions of 
families in from the cold and letting them begin building wealth for 
themselves and their family.
  I ask unanimous consent that the text of this legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1213

       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 ``First-Time Homebuyers' Tax 
     Credit Act of 2005''.

     SEC. 2. REFUNDABLE CREDIT FOR FIRST-TIME HOMEBUYERS.

       (a) In General.--Subpart C of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     refundable credits) is amended by redesignating section 36 as 
     section 37 and by inserting after section 35 the following 
     new section:

     ``SEC. 36. PURCHASE OF PRINCIPAL RESIDENCE BY FIRST-TIME 
                   HOMEBUYER.

       ``(a) Allowance of Credit.--In the case of an individual 
     who is a first-time homebuyer of a principal residence in the 
     United States during any taxable year, there shall be allowed 
     as a credit against the tax imposed by this subtitle for the 
     taxable year an amount equal to 10 percent of the purchase 
     price of the residence.
       ``(b) Limitations.--
       ``(1) Maximum dollar amount.--
       ``(A) In general.--The credit allowed under subsection (a) 
     shall not exceed the excess (if any) of--
       ``(i) $3,000 (2 times such amount in the case of a joint 
     return), over
       ``(ii) the credit transfer amount determined under 
     subsection (c) with respect to the purchase to which 
     subsection (a) applies.
       ``(B) Inflation adjustment.--In the case of any taxable 
     year beginning after December 31, 2005, the $3,000 amount 
     under subparagraph (A) shall be increased by an amount equal 
     to $3,000, multiplied by the cost-of-living adjustment 
     determined under section 1(f)(3) for the calendar year in 
     which the taxable year begins by substituting `2004' for 
     `1992' in subparagraph (B) thereof. If the $3,000 amount as 
     adjusted under the preceding sentence is not a multiple of 
     $10, such amount shall be rounded to the nearest multiple of 
     $10.
       ``(2) Taxable income limitation.--
       ``(A) In general.--If the taxable income of the taxpayer 
     for any taxable year exceeds the maximum taxable income in 
     the table under subsection (a), (b), (c), or (d) of section 
     1, whichever is applicable, to which the 25 percent rate 
     applies, the dollar amounts in effect under paragraph 
     (1)(A)(i) for such taxpayer for the following taxable year 
     shall be reduced (but not below zero) by the amount of the 
     excess.
       ``(B) Change in return status.--In the case of married 
     individuals filing a joint return for any taxable year who 
     did not file such a joint return for the preceding taxable 
     year, subparagraph (A) shall be applied by reference to the 
     highest taxable income of either such individual for the 
     preceding taxable year.
       ``(c) Transfer of Credit.--
       ``(1) In general.--A taxpayer may transfer all or a portion 
     of the credit allowable under subsection (a) to 1 or more 
     persons as payment of any liability of the taxpayer arising 
     out of--
       ``(A) the downpayment of any portion of the purchase price 
     of the principal residence, and
       ``(B) closing costs in connection with the purchase 
     (including any points or other fees incurred in financing the 
     purchase).
       ``(2) Credit transfer mechanism.--
       ``(A) In general.--Not less than 180 days after the date of 
     the enactment of this section, the Secretary shall establish 
     and implement a credit transfer mechanism for purposes of 
     paragraph (1). Such mechanism shall require the Secretary 
     to--
       ``(i) certify that the taxpayer is eligible to receive the 
     credit provided by this section with respect to the purchase 
     of a principal residence and that the transferee is eligible 
     to receive the credit transfer,
       ``(ii) certify that the taxpayer has not received the 
     credit provided by this section with respect to the purchase 
     of any other principal residence,
       ``(iii) certify the credit transfer amount which will be 
     paid to the transferee, and
       ``(iv) require any transferee that directly receives the 
     credit transfer amount from the Secretary to notify the 
     taxpayer within 14 days of the receipt of such amount.
     Any check, certificate, or voucher issued by the Secretary 
     pursuant to this paragraph shall include the taxpayer 
     identification number of the taxpayer and the address of the 
     principal residence being purchased.
       ``(B) Timely receipt.--The Secretary shall issue the credit 
     transfer amount not less than 30 days after the date of the 
     receipt of an application for a credit transfer.
       ``(3) Payment of interest.--
       ``(A) In general.--Notwithstanding any other provision of 
     this title, the Secretary shall pay interest on any amount 
     which is not paid to a person during the 30-day period 
     described in paragraph (2)(B).
       ``(B) Amount of interest.--Interest under subparagraph (A) 
     shall be allowed and paid--
       ``(i) from the day after the 30-day period described in 
     paragraph (2)(B) to the date payment is made, and
       ``(ii) at the overpayment rate established under section 
     6621.
       ``(C) Exception.--This paragraph shall not apply to 
     failures to make payments as a result of any natural disaster 
     or other circumstance beyond the control of the Secretary.
       ``(4) Effect on legal rights and obligations.--Nothing in 
     this subsection shall be construed to--
       ``(A) require a lender to complete a loan transaction 
     before the credit transfer amount has been transferred to the 
     lender, or
       ``(B) prevent a lender from altering the terms of a loan 
     (including the rate, points, fees, and other costs) due to 
     changes in market conditions or other factors during the 
     period of time between the application by the taxpayer for a 
     credit transfer and the receipt by the lender of the credit 
     transfer amount.
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) First-time homebuyer.--
       ``(A) In general.--The term `first-time homebuyer' has the 
     same meaning as when used in section 72(t)(8)(D)(i).
       ``(B) One-time only.--If an individual is treated as a 
     first-time homebuyer with respect to any principal residence, 
     such individual may not be treated as a first-time homebuyer 
     with respect to any other principal residence.
       ``(C) Married individuals filing jointly.--In the case of 
     married individuals who file a joint return, the credit under 
     this section is allowable only if both individuals are first-
     time homebuyers.
       ``(D) Other taxpayers.--If 2 or more individuals who are 
     not married purchase a principal residence--
       ``(i) the credit under this section is allowable only if 
     each of the individuals is a first-time homebuyer, and
       ``(ii) the amount of the credit allowed under subsection 
     (a) shall be allocated among such individuals in such manner 
     as the Secretary may prescribe, except that the total amount 
     of the credits allowed to all such individuals shall not 
     exceed the amount in effect under subsection (b)(1)(A) for 
     individuals filing joint returns.
       ``(2) Principal residence.--The term `principal residence' 
     has the same meaning as when used in section 121. Except as 
     provided in regulations, an interest in a partnership, S 
     corporation, or trust which owns an interest in a residence 
     shall not be treated as an interest in a residence for 
     purposes of this paragraph.
       ``(3) Purchase.--
       ``(A) In general.--The term `purchase' means any 
     acquisition, but only if--
       ``(i) the property is not acquired from a person whose 
     relationship to the person acquiring it would result in the 
     disallowance of losses under section 267 or 707(b) (but, in 
     applying section 267 (b) and (c) for purposes of this 
     section, paragraph (4) of section 267(c) shall be treated as 
     providing that the family of an individual shall include only 
     the individual's spouse, ancestors, and lineal descendants), 
     and
       ``(ii) the basis of the property in the hands of the person 
     acquiring it is not determined--

       ``(I) in whole or in part by reference to the adjusted 
     basis of such property in the hands of the person from whom 
     acquired, or
       ``(II) under section 1014(a) (relating to property acquired 
     from a decedent).

       ``(B) Construction.--A residence which is constructed by 
     the taxpayer shall be treated as purchased by the taxpayer.
       ``(4) Purchase price.--The term `purchase price' means the 
     adjusted basis of the principal residence on the date of 
     acquisition (within the meaning of section 72(t)(8)(D)(iii)).
       ``(e) Denial of Double Benefit.--No credit shall be allowed 
     under subsection (a) for any

[[Page 12141]]

     expense for which a deduction or credit is allowed under any 
     other provision of this chapter.
       ``(f) Basis Adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to the 
     purchase of any residence, the basis of such residence shall 
     be reduced by the amount of the credit so allowed.
       ``(g) Property to Which Section Applies.--
       ``(1) In general.--The provisions of this section apply to 
     a principal residence if--
       ``(A) the taxpayer purchases the residence on or after 
     January 1, 2005, and before January 1, 2010, or
       ``(B) the taxpayer enters into, on or after January 1, 
     2005, and before January 1, 2010, a binding contract to 
     purchase the residence, and purchases and occupies the 
     residence before July 1, 2011.''.
       (b) Conforming Amendments.--
       (1) Subsection (a) of section 1016 of the Internal Revenue 
     Code of 1986 (relating to general rule for adjustments to 
     basis) 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) in the case of a residence with respect to which a 
     credit was allowed under section 36, to the extent provided 
     in section 36(f).''.
       (2) Section 1324(b)(2) of title 31, United States Code, is 
     amended by striking ``or'' before ``enacted'' and by 
     inserting before the period at the end ``, or from section 36 
     of such Code''.
       (c) Clerical Amendment.--The table of sections for subpart 
     C of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by striking the item relating 
     to section 36 and inserting the following new items:

``Sec. 36. Purchase of principal residence by first-time homebuyer.
``Sec. 37. Overpayments of tax.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2004.

  Mr. SMITH. Mr. President, today I introduce important legislation to 
enable more Americans to realize the dream of homeownership. The First-
Time Homebuyers' Tax Credit Act that Senator Stabenow and I are 
introducing would give a one-time tax credit that will help more 
Americans to become homeowners.
  Homeownership brings safety and stability to families and their 
communities. People who own their homes have the security of knowing 
that they have a reliable investment, and they are protected from 
spikes in housing costs. Yet despite these advantages, barriers exist 
for many who are looking to make the leap to homeownership.
  Even for families and individuals who can make monthly mortgage 
payments, down payment and closing costs can prove too great a burden. 
Based on information from the Mortgage Bankers Association, the average 
loan of $175,000 would incur closing costs of approximately $4,000. 
Combined with even a modest down-payment of as little as 3 percent of a 
home's value, total costs can quickly approach $9,000 or more.
  To help Americans achieve the dream of private homeownership, the 
First-Time Homebuyer Bill would provide a tax credit of up to $3,000 to 
individuals and up to $6,000 for families falling within or below the 
27 percent tax bracket.
  The bill would allow first-time homebuyers to claim the credit on 
their tax return or transfer the credit directly to the lender at 
closing, providing an immediate benefit to potential homeowners. This 
credit is similar to the Washington DC Homebuyers' Tax Credit.
  While Congress has enacted legislation to increase incentives for 
homeownership in the past, including the mortgage interest tax 
deduction, these benefits are available only to those who already own a 
home. In contrast, the First Time Homebuyer Bill will help increase 
homeownership among those who are working towards their first home 
purchase.
  I thank you for the opportunity to speak today, and I urge my 
colleagues to support this important legislation.
                                 ______
                                 
      By Ms. SNOWE (for herself, Mr. Reid, Mr. Warner, Mr. Leahy, Mr. 
        Chafee, Mrs. Murray, Mr. Kennedy, Mr. Akaka, Mr. Durbin, Ms. 
        Cantwell, and Mr. Lautenberg):
  S. 1214. A bill to require equitable coverage of prescription 
contraceptive drugs and devices, and contraceptive services under 
health plans; to the Committee on Health, Education, Labor, and 
Pensions.
  Ms. SNOWE. Mr. President, this year well over 6 million pregnancies 
will occur in America. The challenge of raising healthy children and 
preparing them for a changing world is a staggering one indeed. This is 
even more so when so frequently both parents are working. So it is 
tragic that half of all pregnancies today are unplanned. In too many 
cases, this means that the necessary financial, emotional and other 
resources for parenting are simply not present. I think we certainly 
share a broad consensus that every child should be wanted, and that 
parents should have the resources to ensure their child's health and 
success.
  This week we have commemorated the 40th anniversary of a landmark 
Supreme Court decision, that of Griswold v. Connecticut, in which the 
right of married couples to contraceptives and family planning 
counseling was recognized. Yet less than a decade ago, when we examined 
the state of contraceptive coverage by insurance plans, it certainly 
was discouraging. While many health plans included coverage for 
prescription drugs, nearly half did not cover even oral contraceptives. 
Needless to say, many other contraceptive options for women, such as 
the diaphragm, implants, and injectable methods were covered even less 
frequently. This is disturbing, as contraception is so vital to a 
woman's health. Most women will spend just a few years attempting to 
conceive, with the average woman desiring two children. That leaves 
about 30 years in which women need access to safe, affordable 
contraceptives.
  The benefits of contraception should be obvious. The maternal death 
rate in the U.S. is only one third what it was back in 1965 before 
Griswold. The same is true for infant survival. Family planning 
preserves a woman's health, and allows couples to ensure that they have 
the means to give every child the attention, support, and resources 
they need.
  So today I am joining again with Senator Reid to introduce 
legislation to ensure broader access to contraception--to ensure that 
the promise of Griswold v. Connecticut is fully realized. I thank him 
for his ongoing leadership on this issue. We both agree that 
contraception coverage is essential to reducing unwanted pregnancies 
and to ensuring that every couple can employ family planning. The 
Equity in Prescription Insurance and Contraceptive Coverage Act, which 
we again introduce today, will assure that for those plans which 
provide prescription drug coverage, contraceptive coverage is not 
excluded. It further ensures that contraceptive services are provided 
equitably with other outpatient services.
  Such coverage is just what the Institute of Medicine called for back 
in 1995, when the Institute reported that a lack of coverage was a 
major contributor to unwanted pregnancy. Expanding the proportion of 
health plans which cover contraception is one of the Surgeon General's 
objectives for the Healthy People 2010 plan. We can certainly achieve 
that objective and ensure that in 2010, unwanted pregnancies are 
exceedingly rare.
  Some may argue that such a mandate creates yet more costs for 
providers, but the evidence fails to support that notion. We have seen 
that for every dollar in public funds which is invested in family 
planning, three dollars is saved in Medicaid costs for pregnancy-
related health care and medical care for newborns. Indeed after we 
acted in 1998 to assure coverage to women in the Federal Employees 
Health Benefits Program, the Office of Personnel Management concluded 
in 2001 that there was no cost increase due to coverage.
  Many health providers have come to the same conclusion. I note that 
approximately 90 percent of plans now cover the leading methods of 
reversible contraception. So we have come a long way.
  There should be no mistake--this issue boils down the principles of 
basic fairness--fairness for half this Nation's population, fairness in 
how we view and treat a woman's reproductive

[[Page 12142]]

health versus every other kind of health care need that can be 
addressed with prescription drugs. The facts are not in dispute--the 
lack of equitable coverage of prescription contraceptives has a very 
real impact on the lives of America's women and, therefore, our society 
as a whole. This is not overstatement, this is reality.
  All we are saying is that if an employer provides insurance coverage 
for all other prescription drugs, they must also provide coverage for 
FDA-approved prescription contraceptives--it is that simple, it is that 
fair, and it builds on existing law and jurisprudence.
  The approach we are taking today has already been endorsed by a total 
of 29 States--including my home State of Maine--that have passed 
similar laws since 1998. This is real progress but this piecemeal 
approach to fairness leaves many American women at the mercy of 
geography when it comes to the coverage they deserve.
  But fairness is not the only issue. We believe that EPICC not only 
makes sense in terms of the cost of contraceptives for women, but also 
as a means bridging the pro-choice pro-life chasm by helping prevent 
unintended pregnancies and thereby also preventing abortions. The fact 
of the matter is, we know that there are over three million unintended 
pregnancies every year in the United States. We also know that almost 
half of those pregnancies result from women who do not use 
contraceptives. Most of the other half involved inconsistent or 
incorrect use of contraceptives--and in many of these cases, the women 
would benefit from counseling or provision of a contraceptive which is 
more appropriate to their circumstances.
  Surveys consistently demonstrate that almost 9 out of 10 Americans 
support contraception access and over 75 percent support laws requiring 
health insurance plans to cover methods of contraception such as birth 
control pills.
  The question before us is, if EPICC-style coverage is good enough for 
9 million Federal employees and their dependents, if it is good enough 
for every Member of Congress and every Senator, why is not it good 
enough for the American people?
  Women should have control over their reproductive health. It is the 
best interests of their overall health, their children and their future 
children's health--and when we have fewer unintended pregnancies, we 
will reduce the number of abortions. We need to finally fix this 
inequity in prescription drug coverage and make certain that all 
American women have access to this most basic health need. I thank all 
of those who have supported us in this effort, and call upon each of my 
colleagues to join us to ensure that more couples have access to family 
planning to reduce unwanted pregnancies, and to assure the health and 
security of American families.
  Mr. REID. Mr. President, this week marks the fortieth anniversary of 
the U.S. Supreme Court decision in Griswold v. Connecticut that struck 
down a Connecticut law that had made the use of birth control by 
married couples illegal. This decision laid the groundwork for 
widespread access to birth control for all American women.
  In the 40 years since this landmark decision, increased access to 
birth control has contributed to a dramatic improvement in maternal and 
infant health and has drastically reduced the infant death rate in our 
country.
  In spite of these advances, we still have a long way to go. The 
United States has among the highest rates of unintended pregnancies of 
all industrialized nations. Half of all pregnancies in the United 
States are unintended, and nearly half of those end in abortion.
  Making contraception more accessible and affordable is one crucial 
step toward reducing unintended pregnancies, reducing abortions and 
improving women's health.
  We cannot allow the pendulum to swing backwards. That is why Senator 
Snowe and I are reintroducing the Equity in Prescription and 
Contraception Coverage Act of 2005, EPICC. Over the last 8 years, 
Senator Snowe and I have joined together to advance this important 
legislation.
  The EPICC legislation is also a critical component of the Prevention 
First Act, S. 20. This legislation includes a number of provisions that 
will improve women's health, reduce the rate of unintended pregnancy 
and reduce abortions.
  The legislation we are introducing today proves we can find not only 
common ground, but also a commonsense solution to these important 
challenges.
  By making sure women can afford their prescription contraceptives, 
our bill will help to reduce the staggering rates of unintended 
pregnancy in the United States, and reduce abortions.
  It is a national tragedy that half of all pregnancies nationwide are 
unintended, and that half of those will end in abortions. It is a 
tragedy, but it doesn't have to be. If we work together, we can prevent 
these unintended pregnancies and abortions.
  One of the most important steps we can take to prevent unintended 
pregnancies, and to reduce abortions, is to make sure American women 
have access to affordable, effective contraception.
  There are a number of safe and effective contraceptives available by 
prescription. Used properly, they greatly reduce the rate of unintended 
pregnancies.
  However, many women simply can't afford these prescriptions, and 
their insurance doesn't pay for them, even though it covers other 
prescriptions.
  This is not fair. We know women on average earn less than men, yet 
they must pay far more than men for health-related expenses.
  According to the Women's Research and Education Institute, women of 
reproductive age pay 68 percent more in out-of-pocket medical expenses 
than men, largely due to their reproductive health-care needs.
  Because many women can't afford the prescription contraceptives they 
would like to use, many do without them, and the result, all too often, 
is unintended pregnancy and abortion.
  This isn't an isolated problem. The fact is, a majority of women in 
this country are covered by health insurance plans that do not provide 
coverage for prescription contraceptives
  This is unfair to women. It is bad policy that causes additional 
unintended pregnancies, and adversely affects women's health.
  Senator Snowe and I first introduced our legislation in 1997. Since 
then, the Viagra pill went on the market, and one month later it was 
covered by most insurance policies.
  Birth control pills have been on the market since 1960, and today, 45 
years later, they are covered by only one-third of health insurance 
policies.
  So, today we find ourselves in the inexplicable situation where most 
insurance policies pay for Viagra, but not for prescription 
contraceptives that prevent unintentional pregnancies and abortions.
  This isn't fair, and it isn't even cost-effective, because most 
insurance policies do cover sterilization and abortion procedures. In 
other words, they won't pay for the pills that could prevent an 
abortion, but they will pay for the procedure itself, which is much 
more costly.
  The Federal Employee Health Benefits Program, which has provided 
contraceptive coverage for several years, shows that adding such 
coverage does not make the plan more expensive.
  In December 2000, the U.S. Equal Employment Opportunity Commission, 
EEOC ruled that an employer's failure to include insurance coverage for 
prescription contraceptives, when other prescription drugs and devices 
are covered, constitutes unlawful sex discrimination under Title VII of 
the Civil Rights Act of 1964.
  On June 12, 2001, a Federal district court in Seattle made the same 
finding in the case of Erickson v. Bartell Drug Company.
  These decisions confirm what we have known all along: contraceptive 
coverage is a matter of equity and fairness for women.
  We are not asking for special treatment of contraceptives, only 
equitable treatment within the context of an existing prescription drug 
benefit.

[[Page 12143]]

  This legislation is right because it is fair to women.
  It is right because it is more cost-effective than other services, 
including abortions, sterilizations and tubal ligations, costly 
procedures that most insurance companies routinely cover.
  And it is right because it will prevent unintended pregnancies and 
reduce abortions, goals we all share.
  This is common sense, common-ground legislation, and it is long 
overdue.
                                 ______
                                 
      By Mr. GREGG (for himself, Ms, Mikulski, Mr. Sarbanes, Mr. Biden, 
        Mr. Corzine, Ms. Snowe, Mr. Reed, Ms. Cantwell, Mrs. Murray, 
        Mr. Cochran, Mr. Kerry, Mr. Inouye, and Mrs. Feinstein):
  S. 1215. A bill to authorize the acquisition of interests in 
underdeveloped coastal areas in order better to ensure their protection 
from development; to the Committee on Commerce, Science, and 
Transportation.
  Mr. GREGG. Mr. President, I rise today along with Senator Mikulski to 
introduce the Coastal and Estuarine Land Protection Act. We are 
introducing this much needed coastal protection act along with Senators 
Sarbanes, Biden, Corzine, Snowe, Reed, Cantwell, Murray, Cochran, 
Kerry, Wyden, and Inouye. In addition, this legislation is supported by 
the Trust for Public Land, Coastal States Organization, International 
Association of Fish and Wildlife Agencies, Association of National 
Estuary Programs, the Land Trust Alliance, Society for the Protection 
of New Hampshire Forests, The Conservation Fund, NH Audubon, Restore 
America's Estuaries, and National Estuarine Research Reserve 
Association.
  The Coastal and Estuarine Land Protection Act promotes coordinated 
land acquisition and protection efforts in coastal and estuarine areas 
by fostering partnerships between nongovernmental organizations and 
Federal, State, and local governments. As clearly outlined by the U.S. 
Commission of Ocean Policy, these efforts are urgently needed. With 
Americans rapidly moving to the coast, pressures to develop critical 
coastal ecosystems are increasing. There are fewer and fewer 
undeveloped and pristine areas left in the Nation's coastal and 
estuarine watersheds. These areas provide important nursery habitat for 
two-thirds of the Nation's commercial fish and shellfish, provide 
nesting and foraging habitat for coastal birds, harbor significant 
natural plant communities, and serve to facilitate coastal flood 
control and pollutant filtration.
  The Coastal and Estuarine Land Protection Act pairs willing sellers 
through community-based initiatives with sources of Federal funds to 
enhance environmental protection. Lands can be acquired in full or 
through easements, and none of the lands purchased through this program 
would be held by the Federal Government. This bill puts land 
conservation initiatives in the hands of State and local communities. 
This new program, authorized through the National Oceanic and 
Atmospheric Administration at $60,000,000 per year, would provide 
Federal matching funds to States with approved coastal management 
programs or to National Estuarine Research Reserves through a 
competitive grant process. Federal matching funds may not exceed 75 
percent of the cost of a project under this program, and non-Federal 
sources may count in-kind support toward their portion of the cost 
share.
  This coastal land protection program provides much need support for 
local coastal conservation initiatives throughout the country. For 
instance, I have worked hard to secure significant funds for the Great 
Bay estuary in New Hampshire. This estuary is the jewel of the seacoast 
region, and is home to a wide variety of plants and animal species that 
are particularly threatened by encroaching development and 
environmental pollutants. By working with local communities to purchase 
lands or easements on these valuable parcels of land, New Hampshire has 
been able to successfully conserve the natural and scenic heritage of 
this vital estuary.
  Programs such as the Coastal and Estuarine Land Protection program 
will further enable other States to participate in these community-
based conservation efforts in coastal areas. This program was modeled 
after the U.S. Department of Agriculture's successful Forest Legacy 
Program, which has conserved millions of acres of productive and 
ecologically significant forest land around the county.
  I welcome the opportunity to offer this important legislation, with 
my good friend from Maryland, Senator Mikulski. I am thankful for her 
leadership on this issue, and look forward to working with her to make 
the vision for this legislation a reality, and to successfully conserve 
our coastal lands for their ecological, historical, recreational, and 
aesthetic values.
                                 ______
                                 
      By Mr. CORZINE:
  S. 1216. A bill to require financial institutions and financial 
service providers to notify customers of the unauthorized use of 
personal financial information, and for other purposes; to the 
Committee on Banking, Housing, and Urban Affairs.
  Mr. CORZINE. Mr. President, identity theft is a serious and growing 
concern facing our Nation's consumers. According to the Federal Trade 
Commission, nearly 10 million Americans were the victims of identity 
theft in 2003, three times the number of victims just 3 years earlier. 
Research shows that there are more than 13 identity thefts every 
minute.
  According to the Identity Theft Resource Center, identity theft 
victims spend on average nearly 600 hours recovering from the crime. 
Additional research indicates the costs of lost wages and income as a 
result of the crime can soar as high as $16,000 per incident. No one 
wants to suffer this kind of hardship.
  Events this week have further served to highlight how serious the 
problem has become. The announcement by Citigroup that a box of 
computer tapes containing information on 3.9 million customers was lost 
by United Parcel Service in my own State of New Jersey while in transit 
to a credit reporting agency is the latest in a line of recent, high 
profile incidents. In fact, I myself was a victim of a similar recent 
loss of computer tapes by Bank of America.
  In both of these cases, Citigroup and Bank of America acted 
responsibly and notified possible victims in a prompt and timely 
manner. But this is not always the case.
  At the very least, consumers deserve to be made aware when their 
personal information has been compromised. Right now, they must hope 
that the laws of a few individual States, such as California, apply to 
their case, or that victimized institutions will act responsibly on 
their own.
  The legislation I am introducing today, the Financial Privacy Breach 
Notification Act of 2005, would protect consumers by requiring prompt 
notification by any financial institution or affiliated data broker in 
all cases, subject, of course, to the concerns of law enforcement 
agencies. It would also require automatic inclusion of fraud alerts in 
victim's credit files to minimize the damage done.
  Notification by itself won't solve everything, but it is an important 
first step that requires immediate attention. I intend to introduce 
more comprehensive legislation in the very near future to further 
protect consumers against the growing threat of identity theft, but 
requiring notification in a uniform fashion is an important and 
urgently needed first step.
  It is imperative that we take action to combat the growing threat of 
identity theft. This crime harms individuals and families, and drags 
down our economy in the form of lost productivity and capital. We can 
do more and we must do more.
  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. 1216

       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 ``Financial Privacy Breach 
     Notification Act of 2005''.

[[Page 12144]]



     SEC. 2. TIMELY NOTIFICATION OF UNAUTHORIZED ACCESS TO 
                   PERSONAL FINANCIAL INFORMATION.

       Subtitle B of title V of the Gramm-Leach-Bliley Act (15 
     U.S.C. 6821 et seq.) is amended--
       (1) by redesignating sections 526 and 527 as sections 528 
     and 529, respectively; and
       (2) by inserting after section 525 the following:

     ``SEC. 526. NOTIFICATION TO CUSTOMERS OF UNAUTHORIZED ACCESS 
                   TO PERSONAL FINANCIAL INFORMATION.

       ``(a) Definitions.--In this section:
       ``(1) Breach.--The term `breach'--
       ``(A) means the unauthorized acquisition, or loss, of 
     computerized data or paper records which compromises the 
     security, confidentiality, or integrity of personal financial 
     information maintained by or on behalf of a financial 
     institution; and
       ``(B) does not include a good faith acquisition of personal 
     financial information by an employee or agent of a financial 
     institution for a business purpose of the institution, if the 
     personal financial information is not subject to further 
     unauthorized disclosure.
       ``(2) Personal financial information.--The term `personal 
     financial information' means the last name of an individual 
     in combination with any 1 or more of the following data 
     elements, when either the name or the data elements are not 
     encrypted:
       ``(A) Social security number.
       ``(B) Driver's license number or State identification 
     number.
       ``(C) Account number, credit or debit card number, in 
     combination with any required security code, access code, or 
     password that would permit access to the financial account of 
     an individual.
       ``(b) Notification to Customers Relating to Unauthorized 
     Access of Personal Financial Information.--
       ``(1) Financial institution requirement.--In any case in 
     which there has been a breach of personal financial 
     information at a financial institution, or such a breach is 
     reasonably believed to have occurred, the financial 
     institution shall promptly notify--
       ``(A) each customer affected by the violation or suspected 
     violation;
       ``(B) each consumer reporting agency described in section 
     603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a); 
     and
       ``(C) appropriate law enforcement agencies, in any case in 
     which the financial institution has reason to believe that 
     the breach or suspected breach affects a large number of 
     customers, including as described in subsection (e)(1)(C), 
     subject to regulations of the Federal Trade Commission.
       ``(2) Other entities.--For purposes of paragraph (1), any 
     person that maintains personal financial information for or 
     on behalf of a financial institution shall promptly notify 
     the financial institution of any case in which such customer 
     information has been, or is reasonably believed to have been, 
     breached.
       ``(c) Timeliness of Notification.--Notification required by 
     this section shall be made--
       ``(1) promptly and without unreasonable delay, upon 
     discovery of the breach or suspected breach; and
       ``(2) consistent with--
       ``(A) the legitimate needs of law enforcement, as provided 
     in subsection (d); and
       ``(B) any measures necessary to determine the scope of the 
     breach or restore the reasonable integrity of the information 
     security system of the financial institution.
       ``(d) Delays for Law Enforcement Purposes.--Notification 
     required by this section may be delayed if a law enforcement 
     agency determines that the notification would impede a 
     criminal investigation, and in any such case, notification 
     shall be made promptly after the law enforcement agency 
     determines that it would not compromise the investigation.
       ``(e) Form of Notice.--Notification required by this 
     section may be provided--
       ``(1) to a customer--
       ``(A) in written notification;
       ``(B) in electronic form, if the notice provided is 
     consistent with the provisions regarding electronic records 
     and signatures set forth in section 101 of the Electronic 
     Signatures in Global and National Commerce Act (15 U.S.C. 
     7001);
       ``(C) if the Federal Trade Commission determines that the 
     number of all customers affected by, or the cost of providing 
     notifications relating to, a single breach or suspected 
     breach would make other forms of notification prohibitive, or 
     in any case in which the financial institution certifies in 
     writing to the Federal Trade Commission that it does not have 
     sufficient customer contact information to comply with other 
     forms of notification, in the form of--
       ``(i) an e-mail notice, if the financial institution has 
     access to an e-mail address for the affected customer that it 
     has reason to believe is accurate;
       ``(ii) a conspicuous posting on the Internet website of the 
     financial institution, if the financial institution maintains 
     such a website; or
       ``(iii) notification through the media that a breach of 
     personal financial information has occurred or is suspected 
     that compromises the security, confidentiality, or integrity 
     of customer information of the financial institution; or
       ``(D) in such other form as the Federal Trade Commission 
     may by rule prescribe; and
       ``(2) to consumer reporting agencies and law enforcement 
     agencies (where appropriate), in such form as the Federal 
     Trade Commission may prescribe, by rule.
       ``(f) Content of Notification.--Each notification to a 
     customer under subsection (b) shall include--
       ``(1) a statement that--
       ``(A) credit reporting agencies have been notified of the 
     relevant breach or suspected breach; and
       ``(B) the credit report and file of the customer will 
     contain a fraud alert to make creditors aware of the breach 
     or suspected breach, and to inform creditors that the express 
     authorization of the customer is required for any new 
     issuance or extension of credit (in accordance with section 
     605(g) of the Fair Credit Reporting Act); and
       ``(2) such other information as the Federal Trade 
     Commission determines is appropriate.
       ``(g) Compliance.--Notwithstanding subsection (e), a 
     financial institution shall be deemed to be in compliance 
     with this section, if--
       ``(1) the financial institution has established a 
     comprehensive information security program that is consistent 
     with the standards prescribed by the appropriate regulatory 
     body under section 501(b);
       ``(2) the financial institution notifies affected customers 
     and consumer reporting agencies in accordance with its own 
     internal information security policies in the event of a 
     breach or suspected breach of personal financial information; 
     and
       ``(3) such internal security policies incorporate 
     notification procedures that are consistent with the 
     requirements of this section and the rules of the Federal 
     Trade Commission under this section.
       ``(h) Civil Penalties.--
       ``(1) Damages.--Any customer injured by a violation of this 
     section may institute a civil action to recover damages 
     arising from that violation.
       ``(2) Injunctions.--Actions of a financial institution in 
     violation or potential violation of this section may be 
     enjoined.
       ``(3) Cumulative effect.--The rights and remedies available 
     under this section are in addition to any other rights and 
     remedies available under applicable law.
       ``(i) Rules of Construction.--
       ``(1) In general.--Compliance with this section by a 
     financial institution shall not be construed to be a 
     violation of any provision of subtitle (A), or any other 
     provision of Federal or State law prohibiting the disclosure 
     of financial information to third parties.
       ``(2) Limitation.--Except as specifically provided in this 
     section, nothing in this section requires or authorizes a 
     financial institution to disclose information that it is 
     otherwise prohibited from disclosing under subtitle A or any 
     other provision of Federal or State law.
       ``(j) Enforcement.--The Federal Trade Commission is 
     authorized to enforce compliance with this section, including 
     the assessment of fines for violations of subsection 
     (b)(1).''.

     SEC. 3. EFFECTIVE DATE.

       This Act shall take effect on the expiration of the date 
     which is 6 months after the date of enactment of this Act.
                                 ______
                                 
      By Mr. BINGAMAN (for himself, Mr. DeWine, Mr. Corzine, Mr. 
        Durbin, Mr. Schumer, Mr. Johnson, Ms. Cantwell, Mr. Lautenberg, 
        Ms. Stabenow, Mr. Kennedy, Mrs. Clinton, Mr. Kerry, Ms. 
        Mikulski, Mr. Akaka, Mr. Salazar, and Mr. Sarbanes):
  S. 1217. A bill to amend title II of the Social Security Act to phase 
out the 24-month waiting period for disabled individuals to become 
eligible for medicare benefits, to eliminate the waiting period for 
individuals with life-threatening conditions, and for other purposes; 
to the Committee on Finance.
  Mr. BINGAMAN. Mr. President, I rise today to introduce bipartisan 
legislation entitled ``Ending the Medicare Disability Waiting Period 
Act of 2005'' with Senators DeWine, Corzine, Durbin, Schumer, Johnson, 
Cantwell, Lautenberg, Stabenow, Kennedy, Clinton, Kerry, Mikulski, 
Akaka, Salazar, and Sarbanes. This legislation would phase-out the 
current 2-year waiting period that people with disabilities must endure 
after qualifying for Social Security Disability Insurance (SSDI). In 
the interim or as the waiting period is being phased out, the bill 
would also create a process by which the Secretary can immediately 
waive the waiting period for people with life-threatening illnesses.
  When Medicare was expanded in 1972 to include people with significant 
disabilities, lawmakers created the 24-

[[Page 12145]]

month waiting period. According to a July 2003 report from the 
Commonwealth Fund, it is estimated that over 1.2 million SSDI 
beneficiaries are in the Medicare waiting period at any given time, 
``all of whom are unable to work because of their disability and most 
of whom have serious health problems, low incomes, and limited access 
to health insurance.''
  The stated reason at the time was to limit the fiscal cost of the 
provision. However, I would assert that there is no reason, be it 
fiscal or moral, to tell people that they must wait longer than 2 years 
after becoming severely disabled before we provide them access to much 
needed health care.
  In fact, it is important to note that there really are actually three 
waiting periods that are imposed upon people seeking to qualify for 
SSDI. First, there is the disability determination process through the 
Social Security Administration, which often takes many months or even 
longer than a year in some cases. Second, once a worker has been 
certified as having a severe or permanent disability, they must wait an 
additional 5 months before receiving their first SSDI check. And third, 
after receiving that first SSDI check, there is the 2-year period that 
people must wait before their Medicare coverage begins.
  What happens to the health and well-being of people waiting more than 
2\1/2\ years before they finally receive critically needed Medicare 
coverage? According to Karen Davis, president of the Commonwealth Fund, 
which has conducted 2 important studies on the issue, ``Individuals in 
the waiting period for Medicare suffer from a broad range of 
debilitating diseases and are in urgent need of appropriate medical 
care to manage their conditions. Eliminating the 2-year wait would 
ensure access to care for those already on the way to Medicare.''
  Again, we are talking about individuals that have been determined to 
be unable to engage in any ``substantial, gainful activity'' because of 
either a physical or mental impairment that is expected to result in 
death or to continue for at least 12 months. These are people that, by 
definition, are in more need of health coverage than anybody else in 
our society. Of the 1.2 million people stuck in the 2-year waiting 
period at any given time, it is estimated that one-third, or 400,000, 
are left completely uninsured. The consequences are unacceptable and 
are, in fact, dire.
  In fact, various studies show that death rates among SSDI recipients 
are highest during the first 2 years of enrollment while waiting to be 
covered by Medicare. For example, the Commonwealth Fund report, 
entitled ``Elimination of Medicare's Waiting Period for Seriously 
Disabled Adults: Impact on Coverage and Costs,'' 4 percent of these 
people die during the waiting period. In other words, it is estimated 
that of the estimated 400,000 uninsured disabled Americans in the 
waiting period at any given time, 16,000 of them will die awaiting 
Medicare coverage. Let me repeat . . . 16,000 of the 400,000 uninsured 
disabled in the waiting period at any given moment will die while 
waiting for Medicare coverage to begin.
  Moreover, this does not factor in the serious health problems that 
others experience while waiting for Medicare coverage during the 2-year 
period. Although there is no direct data on the profile of SSDI 
beneficiaries in the 2-year waiting period, the Commonwealth Fund has 
undertaken a separate analysis of the Medicare Current Beneficiary 
Survey for 1998 to get a good sense of the demographic characteristics, 
income, and health conditions of this group.
  According to the analysis, ``. . . 45 percent of nonelderly Medicare 
beneficiaries with disabilities had incomes below the Federal poverty 
line, and 77 percent had incomes below 200 percent of poverty. Fifth-
nine percent reported that they were in fair or poor health; of this 
group, more than 90 percent reported that they suffered from one or 
more chronic illnesses, including arthritis (52 percent), hypertension 
(46 percent), mental disorder (36 percent), heart condition (35 
percent), chronic lung disease (26 percent), cancer (20 percent), 
diabetes (19 percent), and stroke (12 percent).''
  To ascertain the impact the waiting period has on the lives of these 
citizens, the Commonwealth Fund and the Christopher Reeve Paralysis 
Foundation conducted a follow-up to ``gain insight into the experiences 
of people with disabilities under age 65 in the Medicare 2-year waiting 
period.'' According to that second report entitled ``Waiting for 
Medicare: Experiences of Uninsured People with Disabilities in the Two-
Year Waiting Period for Medicare'' in October 2004, ``Most of these 
individuals must invariably get by with some combination of living one 
day at a time, assertiveness, faith, and sheer luck.''
  One person in the waiting period with a spinal cord injury from 
Atlanta, Georgia, seeking medical treatment for their condition was 
told to simply ``try not to get sick for 2 years.'' As the individual 
said in response, ``None of us TRIED to become disabled.''
  The people that we have spoken to in the waiting period, since the 
introduction of this legislation last year, talk about foregoing 
critically needed medical treatment, stopping medications and therapy, 
feeling dismayed and depressed about their lives and future, and 
feeling a loss of control over their lives and independence while in 
the waiting period.
  These testimonials and appeals in support of this legislation are 
often emotional and intense. Some describe the waiting period as a 
``living nightmare'' and appropriately ask how it is possible that 
their government is doing this to them.
  In fact, some have had the unfortunate fate of having received SSI 
and Medicaid coverage, applied for SSDI, and then lost their Medicaid 
coverage because they were not aware that the change in income, when 
they received SSDI, would push them over the financial limits for 
Medicaid. In such a case, and let me emphasize this point, the 
government is effectively taking their health care coverage away 
because they are so severely disabled.
  Therefore, for some in the waiting period, their battle is often as 
much with the government as it is with their medical condition, 
disease, or disability.
  Nobody could possible think this makes any sense.
  House Ways and Means Chairman Bill Thomas questioned the rationale of 
the waiting period in a press conference on April 29, 2005.
  As the Medicare Rights Center has said, ``By forcing Americans with 
disabilities to wait 24 months for Medicare coverage, the current law 
effectively sentences these people to inadequate health care, poverty, 
or death . . . Since disability can strike anyone, at any point in 
life, the 24-month waiting period should be of concern to everyone, not 
just the millions of Americans with disabilities today.''
  Although elimination of the Medicare waiting period will certainly 
increase Medicare costs, it is important to note that there will be 
some corresponding decrease in Medicaid costs. Medicaid, which is 
financed by both Federal and State governments, often provides coverage 
for a subset of disabled Americans in the waiting period, as long as 
they meet certain income and asset limits. Income limits are typically 
at or below the poverty level, including at just 74 percent of the 
poverty line in New Mexico, with assets generally limited to just 
$2,000 for individuals and $3,000 for couples.
  The Commonwealth Fund estimates that, of the 1.26 million people in 
the waiting period, 40 percent are enrolled in Medicaid. As a result, 
the Commonwealth Fund estimates in the study that Federal Medicaid 
savings would offset nearly 30 percent of the increased costs. 
Furthermore, States, which have been struggling financially with their 
Medicaid programs, would reap a windfall that would help them better 
manage their Medicaid programs.
  Furthermore, from a continuity of care point of view, it makes little 
sense that somebody with disabilities must leave their job and their 
health providers associated with that plan, move on the Medicaid to 
often have a different set of providers, to then switch

[[Page 12146]]

to Medicare and yet another set of providers. The cost, both financial 
and personal, of not providing access to care or poorly coordinated 
care services for these seriously ill people during the waiting period 
may be greater in many cases than providing health coverage.
  And finally, private-sector employers and employees in those risk-
pools would also benefit from the passage of the bill. As the 2003 
report notes, ``. . . to the extent that disabled adults rely on 
coverage through their prior employer or their spouse's employer, 
eliminating the waiting period would also produce savings to employers 
who provide this coverage.''
  To address concerns about costs and immediate impact on the Medicare 
program, the legislation phases out the waiting period over a 10-year 
period. In the interim, the legislation would create a process by which 
others with life-threatening illnesses could also get an exception to 
the waiting period. Congress has previously extended such an exception 
to the waiting period for individuals with amyothrophic lateral 
sclerosis (ALS), also known as Lou Gehrig's disease, and for hospice 
services. The ALS exception passed the Congress in December 2000 and 
went into effect July 1, 2001. Thus, the legislation would extend the 
exception to all people with life-threatening illnesses in the waiting 
period.
  I would like to thank Senator DeWine and the other original 
cosponsors, including Senators Corzine, Durbin, Schumer, Johnson, 
Cantwell, Lautenberg, Stabenow, Kennedy, Clinton, Kerry, Mikulski, 
Akaka, Salazar, and Sarbanes, for supporting this critically important 
legislation. Furthermore, I would like to commend Representative Gene 
Green of Texas for his introduction of the companion bill in the House 
of Representatives and for his work, diligence, and commitment to this 
issue.
  I urge passage of this legislation and ask unanimous consent that a 
fact sheet, which includes a list of original supporting organizations 
for the legislation, and the text of the bill be printed in the Record.
  There being no objection, the materials were ordered to be printed in 
the Record as follows:

                               Fact Sheet


       ending the medicare disability waiting period act of 2005

       Senators Jeff Bingaman (D-NM) and Mike DeWine (R-OH) are 
     preparing to introduce the ``Medicare Disability Waiting 
     Period Act of 2005.'' The bill would, over 10 years, 
     completely phase-out the two-year waiting period which 
     Americans with disabilities must endure before receiving 
     Medicare coverage. The legislation also creates a process by 
     which the Secretary can immediately waive the waiting period 
     for people with life-threatening illnesses.
       When Medicare was expanded in 1972 to include people who 
     have significant disabilities, lawmakers created a ``Medicare 
     waiting period.'' Before they can get Medicare coverage, 
     people with disabilities must first receive Social Security 
     Disability Insurance (SSDI) for 24 months. Generally, SSDI 
     begins five months after an individual's disability has been 
     certified. As a result, people with disabilities face three 
     consecutive waiting periods prior to getting health coverage: 
     (1) a determination of SSDI approval from the Social Security 
     Administration; (2) a five-month waiting period to receive 
     SSDI; and, (3) another 24-month waiting period to get 
     Medicare coverage.
       Because of the 24-month Medicare waiting period, an 
     estimated 400,000 Americans with disabilities are uninsured 
     and many more are underinsured at a time in their lives when 
     the need for health coverage is most dire, Dale and Verdier, 
     The Commonwealth Fund, July 2003. In fact, various studies 
     show that death rates among SSDI recipients are highest 
     during the first two years of enrollment, Mauney, AMA, June 
     2002. For example, according to the Commonwealth Fund, 4 
     percent of these people die during the waiting period.
       There is an important exception to the 24-month waiting 
     period and that is for individuals with amyothrophic lateral 
     sclerosis (ALS), also known as Lou Gehrig's disease, and for 
     hospice services. The ALS exception passed the Congress in 
     December 2000 and went into effect July 1, 2001.
       ``Ending the Medicare Waiting Period Act of 2005'' would, 
     over 10 years, phase-out the waiting period and would also, 
     in the interim, create a process by which others with life-
     threatening illnesses, like ALS, could also get an exception 
     to the waiting period.
       As the Medicare Rights Center has said, ``By forcing 
     Americans with disabilities to wait 24 months for Medicare 
     coverage, the current law effectively sentences these people 
     to inadequate health care, poverty or death. . . . Since 
     disability can strike anyone, at any point in life, the 24-
     month waiting period should be of concern to everyone, not 
     just the millions of Americans with disabilities today.''
       If you have any questions or need additional information, 
     please contact Bruce Lesley in Senator Bingaman's office at 
     202-224-5521 or Abby Kral in Senator DeWine's office at 202-
     224-7900.


                        Supporting Organizations

       Acid Maltase Deficiency Association
       AIDS Foundation of Chicago
       The AIDS Institute
       AIDS Project Los Angeles
       Air Compassion America
       Alzheimer's Association
       American Academy of Audiology
       American Academy of HIV Medicine
       American Congress of Rehabilitation Medicine (ACRM)
       American Congress of Community Supports and Employment 
     Services (ACCSES)
       American Dance Therapy Association
       American Gastroenterological Association
       American Network of Community Options and Resources
       American Occupational Therapy Association
       American Psychological Association
       Angel Flight Mid-Atlantic
       The Arc of the United States
       Association for Community Affiliated Plans
       Association of University Centers on Disabilities (AUCD)
       Benign Essential Blepharospasm Research Foundation
       Brian Tumor Action Network
       California Health Advocates
       Center for Medicare Advocacy, Inc.
       Coalition for Pulmonary Fibrosis
       Community Action New Mexico
       Disability Service Providers of America (DSPA)
       Empowering Our Communities in New Mexico
       Families USA
       Family Voices
       Gay Men's Health Crisis
       Harm Reduction Coalition
       Hereditary Hemorrhagic Telangiectasia (HHT) Foundation 
     International
       HIV Medicine Association
       HIVictorious, Inc., Madison, WI
       Medicare Rights Center
       Mercy Medical Airlift
       Miami, ACT UP
       National Alliance for the Mentally Ill (NAMI)
       National Alliance of State and Territorial AIDS Directors 
     (NASTAD)
       National Association of Children's Behavioral Health
       National Association of Councils on Developmental 
     Disabilities (NACDD)
       National Association of Protection and Advocacy Systems 
     (NAPAS)
       National Ataxia Foundation
       National Health Law Program (NHeLP)
       National Kidney Foundation
       National Mental Health Association
       National Minority AIDS Council
       National Organization for Rare Disorders (NORD)
       National Patient Advocacy Foundation
       National Women's Law Center
       New Mexico AIDS Services
       New Mexico Medical Society
       New Mexico POZ Coalition
       New Mexico Public Health Association
       North American Brain Tumor Coalition
       Paralyzed Veterans of America
       Power Mobility Coalition
       Reflex Sympathetic Dystrophy Syndrome Association of 
     America
       Senior Citizens Law Office, New Mexico
       Southern New Hampshire HIV/AIDS Task Force
       Special Olympics
       The Title II Community AIDS National Network
       United Cerebral Palsy
       United Spinal Association
       Utah AIDS Foundation
       Visiting Nurse Associations of America
       Von Hippel-Lindau Family Alliance

                                S. 1217

       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 ``Ending the 
     Medicare Disability Waiting Period 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. Phase-out of waiting period for medicare disability benefits.
Sec. 3. Elimination of waiting period for individuals with life-
              threatening conditions.
Sec. 4. Institute of Medicine study and report on delay and prevention 
              of disability conditions.

     SEC. 2. PHASE-OUT OF WAITING PERIOD FOR MEDICARE DISABILITY 
                   BENEFITS.

       (a) In General.--Section 226(b) of the Social Security Act 
     (42 U.S.C. 426(b)) is amended--
       (1) in paragraph (2)(A), by striking ``, and has for 24 
     calendar months been entitled to,''

[[Page 12147]]

     and inserting ``, and for the waiting period (as defined in 
     subsection (k)) has been entitled to,'';
       (2) in paragraph (2)(B), by striking ``, and has been for 
     not less than 24 months,'' and inserting ``, and has been for 
     the waiting period (as defined in subsection (k)),'';
       (3) in paragraph (2)(C)(ii), by striking ``, including the 
     requirement that he has been entitled to the specified 
     benefits for 24 months,'' and inserting ``, including the 
     requirement that the individual has been entitled to the 
     specified benefits for the waiting period (as defined in 
     subsection (k)),''; and
       (4) in the flush matter following paragraph 
     (2)(C)(ii)(II)--
       (A) in the first sentence, by striking ``for each month 
     beginning with the later of (I) July 1973 or (II) the twenty-
     fifth month of his entitlement or status as a qualified 
     railroad retirement beneficiary described in paragraph (2), 
     and'' and inserting ``for each month beginning after the 
     waiting period (as so defined) for which the individual 
     satisfies paragraph (2) and'';
       (B) in the second sentence, by striking ``the `twenty-fifth 
     month of his entitlement' refers to the first month after the 
     twenty-fourth month of entitlement to specified benefits 
     referred to in paragraph (2)(C) and''; and
       (C) in the third sentence, by striking ``, but not in 
     excess of 78 such months''.
       (b) Schedule for Phase-out of Waiting Period.--Section 226 
     of the Social Security Act (42 U.S.C. 426) is amended by 
     adding at the end the following new subsection:
       ``(k) For purposes of subsection (b) (and for purposes of 
     section 1837(g)(1) of this Act and section 7(d)(2)(ii) of the 
     Railroad Retirement Act of 1974), the term `waiting period' 
     means--
       ``(1) for 2006, 18 months;
       ``(2) for 2007, 16 months;
       ``(3) for 2008, 14 months;
       ``(4) for 2009, 12 months;
       ``(5) for 2010, 10 months;
       ``(6) for 2011, 8 months;
       ``(7) for 2012, 6 months;
       ``(8) for 2013, 4 months;
       ``(9) for 2014, 2 months; and
       ``(10) for 2015 and each subsequent year, 0 months.''.
       (c) Conforming Amendments.--
       (1) Sunset.--Effective January 1, 2015, subsection (f) of 
     section 226 of the Social Security Act (42 U.S.C. 426) is 
     repealed.
       (2) Medicare description.--Section 1811(2) of such Act (42 
     U.S.C. 1395c(2)) is amended by striking ``entitled for not 
     less than 24 months'' and inserting ``entitled for the 
     waiting period (as defined in section 226(k))''.
       (3) Medicare coverage.--Section 1837(g)(1) of such Act (42 
     U.S.C. 1395p(g)(1)) is amended by striking ``of the later of 
     (A) April 1973 or (B) the third month before the 25th month 
     of such entitlement'' and inserting ``of the third month 
     before the first month following the waiting period (as 
     defined in section 226(k)) applicable under section 226(b)''.
       (4) Railroad retirement system.--Section 7(d)(2)(ii) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231f(d)(2)(ii)) is 
     amended--
       (A) by striking ``, for not less than 24 months'' and 
     inserting ``, for the waiting period (as defined in section 
     226(k) of the Social Security Act); and
       (B) by striking ``could have been entitled for 24 calendar 
     months, and'' and inserting ``could have been entitled for 
     the waiting period (as defined is section 226(k) of the 
     Social Security Act), and''.
       (d) Effective Date.--Except as provided in subsection 
     (c)(1), the amendments made by this section shall apply to 
     insurance benefits under title XVIII of the Social Security 
     Act with respect to items and services furnished in months 
     beginning at least 90 days after the date of the enactment of 
     this Act (but in no case earlier than January 1, 2006).

     SEC. 3. ELIMINATION OF WAITING PERIOD FOR INDIVIDUALS WITH 
                   LIFE-THREATENING CONDITIONS.

       (a) In General.--Section 226(h) of the Social Security Act 
     (42 U.S.C. 426(h)) is amended--
       (1) by redesignating paragraphs (1), (2), and (3) as 
     subparagraphs (A), (B), and (C), respectively;
       (2) in the matter preceding subparagraph (A) (as 
     redesignated by paragraph (1)), by inserting ``(1)'' after 
     ``(h)'';
       (3) in paragraph (1) (as designated by paragraph (2))--
       (A) in the matter preceding subparagraph (A) (as 
     redesignated by paragraph (1)), by inserting ``or any other 
     life-threatening condition identified by the Secretary'' 
     after ``amyotrophic lateral sclerosis (ALS)''; and
       (4) in subparagraph (B) (as redesignated by paragraph (1)), 
     by striking ``(rather than twenty-fifth month)''; and
       (5) by adding at the end the following new paragraph:
       ``(2) For purposes of identifying life-threatening 
     conditions under paragraph (1), the Secretary shall compile a 
     list of conditions that are fatal without medical treatment. 
     In compiling such list, the Secretary shall consult with the 
     Director of the National Institutes of Health (including the 
     Office of Rare Diseases), the Director of the Centers for 
     Disease Control and Prevention, the Director of the National 
     Science Foundation, and the Institute of Medicine of the 
     National Academy of Sciences.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to insurance benefits under title XVIII of the 
     Social Security Act with respect to items and services 
     furnished in months beginning at least 90 days after the date 
     of the enactment of this Act (but in no case earlier than 
     January 1, 2006).

     SEC. 4. INSTITUTE OF MEDICINE STUDY AND REPORT ON DELAY AND 
                   PREVENTION OF DISABILITY CONDITIONS.

       (a) Study.--The Secretary of Health and Human Services (in 
     this section referred to as the ``Secretary'') shall request 
     that the Institute of Medicine of the National Academy of 
     Sciences conduct a study on the range of disability 
     conditions that can be delayed or prevented if individuals 
     receive access to health care services and coverage before 
     the condition reaches disability levels.
       (b) Report.--Not later than the date that is 2 years after 
     the date of enactment of this Act, the Secretary shall submit 
     to Congress a report containing the results of the Institute 
     of Medicine study authorized under this section.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $750,000 for the 
     period of fiscal years 2006 and 2007.
                                 ______
                                 
      By Mr. KENNEDY (for himself and Mr. Durbin):
  S. 1218. A bill to amend the Elementary and Secondary Education Act 
of 1965, the Higher Education Act of 1965, and the Internal Revenue 
Code of 1986 to improve recruitment, preparation, distribution, and 
retention of public elementary and secondary school teachers and 
principals, and for other purposes; to the Committee on Finance.
  Mr. KENNEDY. Mr. President, it is a privilege to join my 
distinguished colleague, Senator Durbin, in introducing the Teacher 
Excellence for All Children Act of 2005. Its goal is to bring us closer 
to giving every child a highly qualified teacher, and enable more 
teachers to obtain the support they need to improve their instruction. 
We join our distinguished colleague Congressman George Miller in this 
effort, who is introducing this legislation in the House, and commend 
him for his leadership on the issue.
  One of the major challenges we face today is to improve the 
recruitment, preparation, and retention of good teachers. Few issues 
are of greater importance to our future than education. The Nation is 
strongest when our schools are strongest--when all students can attend 
good schools with good teachers to help them learn. In this new era of 
globalization, a well-educated citizenry and well-skilled workforce are 
essential to our role in the world.
  We owe a great debt to America's teachers. They work day in and day 
out to give children a decent education. Teachers are on the front 
lines in the Nation's schools, and at the forefront of the constant 
effort to improve public education. It is their vision, energy, hard 
work, and dedication that will make all the difference in successfully 
meeting this challenge.
  We took a major step forward in the No Child Left Behind Act and its 
recognition that all students deserve first-rate teachers to help them 
reach their potential and succeed in life. This act made a bold 
national commitment to guarantee a highly qualified teacher in every 
classroom. But to reach that goal, we need to recruit, train, retain 
and support our teachers. The TEACH Act addresses four specific 
challenges head on: to increase the supply of outstanding teachers; to 
ensure all children have teachers with expertise in the subjects they 
teach; to improve teaching by identifying and rewarding the best 
practices and expanding professional development opportunities; and to 
help schools retain teachers and principals by providing the support 
they need to succeed.
  Since enrollment in public schools has reached an all-time high of 53 
million students, and is expected to keep increasing over the next 
decade, additional highly qualified teachers are needed to meet the 
growing demand.
  Many schools face a teacher crisis, particularly in our poorest 
communities. Currently, there are approximately 3 million public school 
teachers across the country. Two million new, qualified teachers will 
be needed in the next 10 years to serve the growing student population. 
Yet we are not even retaining the teachers we have today. A third of 
all teachers leave during their first 3 years, and almost half leave 
during the first 5 years.

[[Page 12148]]

  Too often, teachers also lack the training and support needed to do 
well in the classroom. They are paid on average almost $8,000 less than 
graduates in other fields, and the gap widens to more than $23,000 
after 15 years of teaching. Thirty-seven percent of teachers cite low 
salaries as a main factor for leaving the classroom before retirement.
  The TEACH Act will do more to recruit and retain highly qualified 
teachers--particularly in schools and subjects where they are needed 
the most. The bill provides financial incentives to encourage talented 
persons to enter and remain in the profession and it offers higher 
salaries, tax breaks, and greater loan forgiveness.
  To attract motivated and talented individuals to teaching, the bill 
provides up-front tuition assistance--$4,000 per year--to high-
performing undergraduate students who agree to commit to teach for 4 
years in high-need areas and in subjects such as math, science, and 
special education.
  One of our greatest challenges in school reform today is to equalize 
the playing field, so that the neediest students have access to the 
best teachers to help them succeed. Research shows that good teachers 
are the single most important factor in the success of children in 
school, both academically and developmentally. Children with good 
instruction can reach new heights through the hard work, vision, and 
energy of their teachers. Good teaching helps overcome the harmful 
effects of poverty and other disadvantages on student learning.
  Unfortunately, we still have a long way to go. In high-poverty 
schools, teacher turnover is 33 percent higher than in other schools. 
In the poorest middle schools and high schools, students are 77 percent 
more likely to be assigned an out-of-field teacher. Almost a third of 
classes are taught by teachers with no background in the subject--no 
major degree, no minor degree, no certification.
  Despite our past efforts, this problem is worsening. In most academic 
subjects, the percentage of secondary school teachers ``out-of-
field''--those teaching a class in which they do not have a major, a 
minor, or a certification--increased from 1993 to 2000. Clearly, we 
must do a better job of attracting better teachers to the neediest 
classrooms and do more to reward their efforts so that they stay in the 
classroom.
  Because schools compete for the best teachers, the bill provides 
funding to school districts to reward teachers who transfer to schools 
with the greatest challenges, and provides incentives for teachers 
working in math, science, and special education.
  The TEACH Act also establishes a framework to develop and use the 
systems needed at the State and local levels to identify and improve 
teacher effectiveness and recognize exceptional teaching in the 
classroom. States will develop data systems to track student progress 
and relate it to the level of instruction provided in the classroom. 
The bill also encourages the development of model teacher advancement 
programs with competitive compensation structures that recognize and 
reward different roles, responsibilities, knowledge, skills and 
positive results.
  Too often, teachers lack the training they need before reaching the 
classroom. On the job, they have few sources of support to meet the 
challenges they face in the classroom, and few opportunities for 
ongoing professional development to expand their skills. The bill 
responds to the needs of teachers in their first years in the classroom 
by creating new and innovative teacher induction models that use proven 
strategies to support beginning teachers. New teachers will have access 
to mentoring, opportunities for cooperative planning with their peers, 
and a special transition year to ease into the pressures of entering 
the classroom. Veteran teachers will have an opportunity to improve 
their skills through peer mentoring and review. Other support includes 
professional development delivered through teaching centers to improve 
training and working conditions for teachers.
  Since good leadership is also essential for schools, the bill 
provides important incentives and support for principals by raising 
standards and improving recruitment and training for them as well.
  This legislation was developed with the help of a broad and diverse 
group of educational professionals and experts, including the Alliance 
for Excellent Education, the American Federation of Teachers, the 
Business Roundtable, the Center for American Progress Action Fund, the 
Children's Defense Fund, the Education Trust, the National Council on 
Teacher Quality, the National Council of La Raza, the National 
Education Association, New Leaders for New Schools, the New Teacher 
Center, Operation Public Education, the Teacher Advancement Program 
Foundation, Teach for America and the Teaching Commission. I thank them 
for their help and their work on behalf of our Nation's children.
  As Shirley Mount Hufstedler, the first United States Secretary of 
Education, has said:

       The role of the teacher remains the highest calling of a 
     free people. To the teacher, America entrusts her most 
     precious resource, her children; and asks that they be 
     prepared, in all their glorious diversity, to face the rigors 
     of individual participation in a democratic society.

  We must do all in our power to help them in this endeavor.
  I urge my colleagues to join in supporting this bill and 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. 1218

       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 ``Teacher Excellence for All 
     Children Act of 2005''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Findings.

               TITLE I--RECRUITING TALENTED NEW TEACHERS

Sec. 101. Amendments to Higher Education Act of 1965.
Sec. 102. Extending and expanding teacher loan forgiveness.

             TITLE II--CLOSING THE TEACHER DISTRIBUTION GAP

Sec. 201. Grants to local educational agencies to provide premium pay 
              to teachers in high-need schools.

                TITLE III--IMPROVING TEACHER PREPARATION

Sec. 301. Amendment to Elementary and Secondary Education Act of 1965.
Sec. 302. Amendment to the Higher Education Act of 1965: Teacher 
              Quality Enhancement Grants.
Sec. 303. Enforcing NCLB's teacher equity provision.

TITLE IV--EQUIPPING TEACHERS, SCHOOLS, LOCAL EDUCATIONAL AGENCIES, AND 
  STATES WITH THE 21ST CENTURY DATA, TOOLS, AND ASSESSMENTS THEY NEED

Sec. 401. 21st Century Data, Tools, and Assessments.
Sec. 402. Collecting national data on distribution of teachers.

     TITLE V--RETENTION: KEEPING OUR BEST TEACHERS IN THE CLASSROOM

Sec. 501. Amendment to Elementary and Secondary Education Act of 1965.
Sec. 502. Exclusion from gross income of compensation of teachers and 
              principals in certain high-need schools or teaching high-
              need subjects.
Sec. 503. Above-the-line deduction for certain expenses of elementary 
              and secondary school teachers increased and made 
              permanent.

                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Conforming amendments.

     SEC. 3. FINDINGS.

       The Congress finds as follows:
       (1) There are not enough qualified teachers in the Nation's 
     classrooms, and an unprecedented number of teachers will 
     retire over the next 5 years. Over the next decade, the 
     Nation will need to bring 2,000,000 new teachers into public 
     schools.
       (2) Too many teachers and principals do not receive 
     adequate preparation for their jobs.
       (3) More than one-third of children in grades 7-12 are 
     taught by a teacher who lacks both a college major and 
     certification in the subject being taught. Rates of ``out-of-
     field teaching'' are especially high in high-poverty schools.

[[Page 12149]]

       (4) Seventy percent of mathematics classes in high-poverty 
     middle schools are assigned to teachers without even a minor 
     in mathematics or a related field.
       (5) Teacher turnover is a serious problem, particularly in 
     urban and rural areas. Over one-third of new teachers leave 
     the profession within their first 3 years of teaching, and 14 
     percent of new teachers leave the field within the first 
     year. After 5 years--the average time it takes for teachers 
     to maximize students' learning--half of all new teachers will 
     have exited the profession. Rates of teacher attrition are 
     highest in high-poverty schools. Between 2000 and 2001, 1 out 
     of 5 teachers in the Nation's high-poverty schools either 
     left to teach in another school or dropped out of teaching 
     altogether.
       (6) Fourth graders who are poor score dramatically lower on 
     the National Assessment of Educational Progress (NAEP) than 
     their counterparts who are not poor. Over 85 percent of 
     fourth graders who are poor failed to attain NAEP proficiency 
     standards in 2003.
       (7) African-American, Latino, and low-income students are 
     much less likely than other students to have highly-qualified 
     teachers.
       (8) Research shows that individual teachers have a great 
     impact on how well their students learn. The most effective 
     teachers have been shown to be able to boost their pupils' 
     learning by a full grade level relative to students taught by 
     less effective teachers.
       (9) Although nearly half (42 percent) of all teachers hold 
     a master's degree, fewer than 1 in 4 secondary teachers have 
     a master's degree in the subject they teach.
       (10) Young people with high SAT and ACT scores are much 
     less likely to choose teaching as a career. Those who have 
     higher SAT or ACT scores are twice as likely to leave the 
     profession after only a few years.
       (11) Only 16 States finance new teacher induction programs, 
     and fewer still require inductees to be matched with mentors 
     who teach the same subject.

               TITLE I--RECRUITING TALENTED NEW TEACHERS

     SEC. 101. AMENDMENTS TO HIGHER EDUCATION ACT OF 1965.

       (a) TEACH Grants.--Title II of the Higher Education Act of 
     1965 (20 U.S.C. 1021 et seq.) is amended by adding at the end 
     the following new part:

                         ``PART C--TEACH GRANTS

     ``SEC. 231. PURPOSES.

       ``The purposes of this part are--
       ``(1) to improve student academic achievement;
       ``(2) to help recruit and prepare teachers to meet the 
     national demand for a highly qualified teacher in every 
     classroom; and
       ``(3) to increase opportunities for Americans of all 
     educational, ethnic, class, and geographic backgrounds to 
     become highly qualified teachers.

     ``SEC. 232. PROGRAM ESTABLISHED.

       ``(a) Program Authority.--
       ``(1) Payments required.--For each of the fiscal years 2006 
     through 2013, the Secretary shall pay to each eligible 
     institution such sums as may be necessary to pay to each 
     eligible student (defined in accordance with section 484) who 
     files an application and agreement in accordance with section 
     233, and qualifies under subsection (a)(2) of such section, a 
     TEACH Grant in the amount of $4,000 for each academic year 
     during which that student is in attendance at an institution 
     of higher education.
       ``(2) Reference.--Grants made under this part shall be 
     known as `Teacher Education Assistance for College and Higher 
     Education Grants' or `TEACH Grants'.
       ``(b) Payment Methodology.--
       ``(1) Prepayment.--Not less than 85 percent of such sums 
     shall be advanced to eligible institutions prior to the start 
     of each payment period and shall be based upon an amount 
     requested by the institution as needed to pay eligible 
     students until such time as the Secretary determines and 
     publishes in the Federal Register with an opportunity for 
     comment, an alternative payment system that provides payments 
     to institutions in an accurate and timely manner, except that 
     this sentence shall not be construed to limit the authority 
     of the Secretary to place an institution on a reimbursement 
     system of payment.
       ``(2) Direct payment.--Nothing in this section shall be 
     interpreted to prohibit the Secretary from paying directly to 
     students, in advance of the beginning of the academic term, 
     an amount for which they are eligible, in cases where the 
     eligible institution elects not to participate in the 
     disbursement system required by paragraph (1) .
       ``(3) Distribution of grants to students.--Payments under 
     this part shall be made, in accordance with regulations 
     promulgated by the Secretary for such purpose, in such manner 
     as will best accomplish the purposes of this part. Any 
     disbursement allowed to be made by crediting the student's 
     account shall be limited to tuition and fees and, in the case 
     of institutionally owned housing, room and board. The student 
     may elect to have the institution provide other such goods 
     and services by crediting the student's account.
       ``(c) Reductions in Amount.--
       ``(1) Part time students.--In any case where a student 
     attends an institution of higher education on less than a 
     full-time basis (including a student who attends an 
     institution of higher education on less than a half-time 
     basis) during any academic year, the amount of the TEACH 
     Grant to which that student is eligible shall be reduced in 
     proportion to the degree to which that student is not so 
     attending on a full-time basis, in accordance with a schedule 
     of reductions established by the Secretary for the purpose of 
     this part, computed in accordance with this part. Such 
     schedule of reductions shall be established by regulation and 
     published in the Federal Register in accordance with section 
     482 of this Act.
       ``(2) No exceeding cost.--No TEACH Grant for a student 
     under this part shall exceed the cost of attendance (as 
     defined in section 472) at the institution at which such 
     student is in attendance. If, with respect to any student, it 
     is determined that the amount of a TEACH Grant exceeds the 
     cost of attendance for that year, the amount of the TEACH 
     Grant shall be reduced until the TEACH Grant does not exceed 
     the cost of attendance at such institution.
       ``(d) Period of Eligibility for Grants.--
       ``(1) Undergraduate students.--The period during which an 
     undergraduate student may receive TEACH Grants shall be the 
     period required for the completion of the first undergraduate 
     baccalaureate course of study being pursued by that student 
     at the institution at which the student is in attendance, 
     except that--
       ``(A) any period during which the student is enrolled in a 
     noncredit or remedial course of study, subject to paragraph 
     (3), shall not be counted for the purpose of this paragraph; 
     and
       ``(B) the total amount that a student may receive under 
     this part for undergraduate study shall not exceed $16,000.
       ``(2) Graduate students.--The period during which a 
     graduate student may receive TEACH Grants shall be the period 
     required for the completion of a master's degree course of 
     study being pursued by that student at the institution at 
     which the student is in attendance, except that the total 
     amount that a student may receive under this part for 
     graduate study shall not exceed $8,000.
       ``(3) Remedial course; study abroad.--Nothing in this 
     section shall exclude from eligibility courses of study that 
     are noncredit or remedial in nature (including courses in 
     English language acquisition) that are determined by the 
     institution to be necessary to help the student be prepared 
     for the pursuit of a first undergraduate baccalaureate degree 
     or certificate or, in the case of courses in English language 
     instruction, to be necessary to enable the student to utilize 
     already existing knowledge, training, or skills. Nothing in 
     this section shall exclude from eligibility programs of study 
     abroad that are approved for credit by the home institution 
     at which the student is enrolled.

     ``SEC. 233. ELIGIBILITY AND APPLICATIONS FOR GRANTS.

       ``(a) Applications; Demonstration of Eligibility.--
       ``(1) Filing required.--The Secretary shall from time to 
     time set dates by which students shall file applications for 
     TEACH Grants under this part. Each student desiring a TEACH 
     Grant for any year shall file an application therefore 
     containing such information and assurances as the Secretary 
     may deem necessary to enable the Secretary to carry out the 
     functions and responsibilities of this part.
       ``(2) Demonstration of eligibility.--Each such application 
     shall contain such information as is necessary to demonstrate 
     that--
       ``(A) if the applicant is an enrolled student--
       ``(i) the student is an eligible student for purposes of 
     section 484 (other than subsection (r) of such section);
       ``(ii) the student--

       ``(I) has a grade point average that is determined, under 
     standards prescribed by the Secretary, to be comparable to a 
     3.25 average on a zero to 4.0 scale, except that, if the 
     student is in the first year of a program of undergraduate 
     education, such grade point average shall be determined on 
     the basis of the student's cumulative high school grade point 
     average; or
       ``(II) displayed high academic aptitude by receiving a 
     score above the 75th percentile on at least one of the 
     batteries in an undergraduate or graduate school admissions 
     test; and

       ``(iii) the student is completing coursework and other 
     requirements necessary to begin a career in teaching, or 
     plans to complete such coursework and requirements prior to 
     graduating; or
       ``(B) if the applicant is a current or prospective teacher 
     applying for a grant to obtain a graduate degree--
       ``(i) the applicant is a teacher or a retiree from another 
     occupation with expertise in a field in which there is a 
     shortage of teachers, such as mathematics, science, special 
     education, English language acquisition, or another high-need 
     subject; or
       ``(ii) the applicant is or was a teacher who is using high-
     quality alternative certification routes, such as Teach for 
     America, to get certified.
       ``(b) Agreements to Serve.--Each application under 
     subsection (a) shall contain or be accompanied by an 
     agreement by the applicant that--

[[Page 12150]]

       ``(1) the applicant will--
       ``(A) serve as a full-time teacher for a total of not less 
     than 4 academic years within 8 years after completing the 
     course of study for which the applicant received a TEACH 
     Grant under this part;
       ``(B) teach--
       ``(i) in a school described in section 465(a)(2)(A); and
       ``(ii) in any of the following fields: mathematics, 
     science, a foreign language, bilingual education, or special 
     education, or as a reading specialist, or another field 
     documented as high-need by the Federal Government, State 
     government, or local education agency and submitted to the 
     Secretary;
       ``(C) submit evidence of such employment in the form of a 
     certification by the chief administrative officer of the 
     school upon completion of each year of such service; and
       ``(D) comply with the requirements for being a highly 
     qualified teacher as defined in section 9101 of the 
     Elementary and Secondary Education Act of 1965; and
       ``(2) in the event that the applicant is determined to have 
     failed or refused to carry out such service obligation, the 
     sum of the amounts of such Teach Grants will be treated as a 
     loan and collected from the applicant in accordance with 
     subsection (c) and the regulations thereunder.
       ``(c) Repayment for Failure to Complete Service.--In the 
     event that any recipient of a TEACH Grant fails or refuses to 
     comply with the service obligation in the agreement under 
     subsection (b), the sum of the amounts of such Grants 
     provided to such recipient shall be treated as a Direct Loan 
     under part D of title IV, and shall be subject to repayment 
     in accordance with terms and conditions specified by the 
     Secretary in regulations promulgated to carry out this 
     part.''.
       (b) Recruiting Teachers With Mathematics, Science, or 
     Language Major.--Title II of the Higher Education Act of 1965 
     (20 U.S.C. 1021 et seq.), as amended by subsection (a), is 
     further amended by adding at the end the following:

 ``PART D--RECRUITING TEACHERS WITH MATHEMATICS, SCIENCE, OR LANGUAGE 
                                 MAJORS

     ``SEC. 241. PROGRAM AUTHORIZED.

       ``(a) Grants Authorized.--From the amounts appropriated 
     under section 242, the Secretary shall make competitive 
     grants to institutions of higher education to improve the 
     availability and recruitment of teachers from among students 
     majoring in mathematics, science, foreign languages, special 
     education, or teaching the English language to students with 
     limited English proficiency. In making such grants, the 
     Secretary shall give priority to programs that focus on 
     preparing teachers in subjects in which there is a shortage 
     of highly qualified teachers and that prepare students to 
     teach in high-need schools.
       ``(b) Application.--Any institution of higher education 
     desiring to obtain a grant under this part shall submit to 
     the Secretary an application at such time, in such form, and 
     containing such information and assurances as the Secretary 
     may require, which shall--
       ``(1) include reporting on baseline production of teachers 
     with expertise in mathematics, science, a foreign language, 
     or teaching English language learners; and
       ``(2) establish a goal and timeline for increasing the 
     number of such teachers who are prepared by the institution.
       ``(c) Use of Funds.--Funds made available by a grant under 
     this part--
       ``(1) shall be used to create new recruitment incentives to 
     teaching from other majors, with an emphasis on high-need 
     subjects such as mathematics, science, foreign languages, and 
     teaching the English language to students with limited 
     English proficiency;
       ``(2) may be used to upgrade curriculum in order to provide 
     all students studying to become teachers with high-quality 
     instructional strategies for teaching reading and teaching 
     the English language to students with limited English 
     proficiency, and for modifying instruction to teach students 
     with special needs;
       ``(3) may be used to integrate school of education faculty 
     with other arts and science faculty in mathematics, science, 
     foreign languages, and teaching the English language to 
     students with limited English proficiency through steps such 
     as--
       ``(A) dual appointments for faculty between schools of 
     education and schools of arts and science; and
       ``(B) integrating coursework with clinical experience; and
       ``(4) may be used to develop strategic plans between 
     schools of education and local school districts to better 
     prepare teachers for high-need schools, including the 
     creation of professional development partnerships for 
     training new teachers in state-of-the-art practice.

     ``SEC. 242. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to make grants 
     under this part $200,000,000 for fiscal year 2006 and such 
     sums as may be necessary for each of the 5 succeeding fiscal 
     years.''.
       (c) Part A Authorization.--Section 210 of the Higher 
     Education Act of 1965 (20 U.S.C. 1030) is amended--
       (1) by striking ``$300,000,000 for fiscal year 1999'' and 
     inserting ``$400,000,000 for fiscal year 2006''; and
       (2) by striking ``4 succeeding'' and inserting ``5 
     succeeding''.

     SEC. 102. EXTENDING AND EXPANDING TEACHER LOAN FORGIVENESS.

       (a) Permanent Extension.--Section 3(b)(3) of the Taxpayer-
     Teacher Protection Act of 2004 (P.L. 108-409; 118 Stat. 2300) 
     is amended by striking ``1998, and before October 1, 2005'' 
     and inserting ``1998''.
       (b) Increased Amount; Applicability of Expanded Program to 
     Reading Specialist.--Sections 428J(c)(3) and 460(c)(3) of the 
     Higher Education Act of 1965 (20 U.S.C. 1078-10(c)(3), 
     1087j(c)(3)) are each amended--
       (1) by striking ``$17,500'' and inserting ``$20,000'';
       (2) by striking ``and'' at the end of subparagraph (A)(ii);
       (3) by striking the period at the end of subparagraph 
     (B)(iii) and inserting ``; and''; and
       (4) by adding at the end the following new subparagraph:
       ``(C) an elementary or secondary school teacher who 
     primarily teaches reading and who--
       ``(i) has obtained a separate reading instruction 
     credential from the State in which the teacher is employed; 
     and
       ``(ii) is certified by the chief administrative officer of 
     the public or nonprofit private elementary school or 
     secondary school in which the borrower is employed to teach 
     reading--

       ``(I) as being proficient in teaching the essential 
     components of reading instruction, as defined in section 1208 
     of the Elementary and Secondary Education Act of 1965; and
       ``(II) as having such credential.''.

       (c) Annual Increments Instead of End of Service Lump 
     Sums.--
       (1) FFEL loans.--Section 428J(c) of the Higher Education 
     Act of 1965 (20 U.S.C. 1078-10(c)) is amended by adding at 
     the end the following:
       ``(4) Annual increments.--Notwithstanding paragraph (1), in 
     the case of an individual qualifying for loan forgiveness 
     under paragraph (3), the Secretary shall, in lieu of waiting 
     to assume an obligation only upon completion of 5 complete 
     years of service, assume the obligation to repay--
       ``(A) after each of the first and second years of service 
     by an individual in a position qualifying under paragraph 
     (3), 15 percent of the total amount of principal and interest 
     of the loans described in paragraph (1) to such individual 
     that are outstanding immediately preceding such first year of 
     such service;
       ``(B) after each of the third and fourth years of such 
     service, 20 percent of such total amount; and
       ``(C) after the fifth year of such service, 30 percent of 
     such total amount.''.
       (2) Direct loans.--Section 460(c) of the Higher Education 
     Act of 1965 (20 U.S.C. 1087j(c)) is amended by adding at the 
     end the following:
       ``(4) Annual increments.--Notwithstanding paragraph (1), in 
     the case of an individual qualifying for loan cancellation 
     under paragraph (3), the Secretary shall, in lieu of waiting 
     to assume an obligation only upon completion of 5 complete 
     years of service, assume the obligation to repay--
       ``(A) after each of the first and second years of service 
     by an individual in a position qualifying under paragraph 
     (3), 15 percent of the total amount of principal and interest 
     of the loans described in paragraph (1) to such individual 
     that are outstanding immediately preceding such first year of 
     such service;
       ``(B) after each of the third and fourth years of such 
     service, 20 percent of such total amount; and
       ``(C) after the fifth year of such service, 30 percent of 
     such total amount.''.

             TITLE II--CLOSING THE TEACHER DISTRIBUTION GAP

     SEC. 201. GRANTS TO LOCAL EDUCATIONAL AGENCIES TO PROVIDE 
                   PREMIUM PAY TO TEACHERS IN HIGH-NEED SCHOOLS.

       Title II of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 6601 et seq.) is amended by adding at the end 
     the following:

             ``PART E--TEACHER EXCELLENCE FOR ALL CHILDREN

     ``SEC. 2500. DEFINITIONS.

       ``In this part:
       ``(1) The term `high-need local educational agency' means a 
     local educational agency--
       ``(A) that serves not fewer than 10,000 children from 
     families with incomes below the poverty line, or for which 
     not less than 20 percent of the children served by the agency 
     are from families with incomes below the poverty line; and
       ``(B) that is having or expected to have difficulty filling 
     teacher vacancies or hiring new teachers who are highly 
     qualified.
       ``(2) The term `value-added longitudinal data system' means 
     a longitudinal data system for determining value-added 
     student achievement gains.
       ``(3) The term `value-added student achievement gains' 
     means student achievement gains determined by means of a 
     system that--
       ``(A) is sufficiently sophisticated and valid--
       ``(i) to deal with the problem of students with incomplete 
     records;

[[Page 12151]]

       ``(ii) to enable estimates to be precise and to use all the 
     data for all students in multiple years, regardless of 
     sparseness, in order to avoid measurement error in test 
     scores (such as by using multivariate, longitudinal 
     analyses); and
       ``(iii) to protect against inappropriate testing practices 
     or improprieties in test administration;
       ``(B) includes a way to acknowledge the existence of 
     influences on student growth, such as pull-out programs for 
     support beyond standard delivery of instruction, so that 
     affected teachers do not receive an unfair advantage; and
       ``(C) has the capacity to assign various proportions of 
     student growth to multiple teachers when the classroom 
     reality, such as team teaching and departmentalized 
     instruction, makes such type of instruction an issue.

                       ``Subpart 1--Distribution

     ``SEC. 2501. PREMIUM PAY; LOAN REPAYMENT.

       ``(a) Grants.--The Secretary shall make grants to local 
     educational agencies to provide higher salaries to exemplary, 
     highly qualified principals and exemplary, highly qualified 
     teachers with at least 3 years of experience, including 
     teachers certified by the National Board for Professional 
     Teaching Standards, if the principal or teacher agrees to 
     serve full-time for a period of 4 consecutive school years at 
     a public high-need elementary school or a public high-need 
     secondary school.
       ``(b) Use of Funds.--A local educational agency that 
     receives a grant under this section may use funds made 
     available through the grant--
       ``(1) to provide to exemplary, highly qualified principals 
     up to $15,000 as an annual bonus for each of 4 consecutive 
     school years if the principal commits to work full-time for 
     such period in a public high-need elementary school or a 
     public high-need secondary school; and
       ``(2) to provide to exemplary, highly qualified teachers--
       ``(A) up to $10,000 as an annual bonus for each of 4 
     consecutive school years if the teacher commits to work full-
     time for such period in a public high-need elementary school 
     or a public high-need secondary school; or
       ``(B) up to $12,500 as an annual bonus for each of 4 
     consecutive school years if the teacher commits to work full-
     time for such period teaching a subject for which there is a 
     documented shortage of teachers in a public high-need 
     elementary school or a public high-need secondary school.
       ``(c) Timing of Payment.--A local educational agency 
     providing an annual bonus to a principal or teacher under 
     subsection (b) shall pay the bonus on completion of the 
     service requirement by the principal or teacher for the 
     applicable year.
       ``(d) Grant Period.--The Secretary shall make grants under 
     this section in yearly installments for a total period of 4 
     years.
       ``(e) Observation, Feedback, and Evaluation.--The Secretary 
     may make a grant to a local educational agency under this 
     section only if the State in which the agency is located or 
     the agency has in place or proposes a plan, developed on a 
     collaborative basis with the local teacher organization, to 
     develop a system in which principals and, if available, 
     master teachers rate teachers as exemplary. Such a system 
     shall be--
       ``(1) based on strong learning gains for students;
       ``(2) based on classroom observation and feedback at least 
     four times annually;
       ``(3) conducted by multiple sources, including master 
     teachers and principals; and
       ``(4) evaluated against research-validated rubrics that use 
     planning, instructional, and learning environment standards 
     to measure teaching performance.
       ``(f) Application Requirements.--To seek a grant under this 
     section, a local educational agency shall submit an 
     application at such time, in such manner, and containing such 
     information as the Secretary reasonably requires. At a 
     minimum, the application shall include the following:
       ``(1) A description of the agency's proposed new teacher 
     hiring timeline, including interim goals for any phase-in 
     period.
       ``(2) An assurance that the agency will--
       ``(A) pay matching funds for the program carried out with 
     the grant, which matching funds may be derived from funds 
     received under other provisions of this title;
       ``(B) commit to making the program sustainable over time;
       ``(C) create incentives to bring a critical mass of 
     exemplary, highly qualified teachers to each school whose 
     teachers will receive assistance under this section;
       ``(D) improve the school's working conditions through 
     activities that may include but are not limited to--
       ``(i) reducing class size;
       ``(ii) ensuring availability of classroom materials, 
     textbooks, and other supplies;
       ``(iii) improving or modernizing facilities; and
       ``(iv) upgrading safety; and
       ``(E) accelerate the timeline for hiring new teachers in 
     order to minimize the withdrawal of high-quality teacher 
     applicants and secure the best new teacher talent for their 
     hardest-to-staff schools.
       ``(3) An assurance that, in identifying exemplary teachers, 
     the system described in paragraph (1) will take into 
     consideration--
       ``(A) growth of the teacher's students on any tests 
     required by the State educational agency;
       ``(B) value-added student achievement gains if such teacher 
     is in a State that uses a value-added longitudinal data 
     system;
       ``(C) National Board for Professional Teaching Standards 
     certification; and
       ``(D) evidence of teaching skill documented in performance-
     based assessments.
       ``(g) Hiring Highly Qualified Teachers Early and in a 
     Timely Manner.--
       ``(1) In general.--In addition to the requirements of 
     subsection (f), an application under such subsection shall 
     include a description of the steps the local educational 
     agency will take to enable all or a subset of the agency's 
     schools to hire new highly qualified teachers early and in a 
     timely manner, including--
       ``(A) requiring a clear and early notification date for 
     retiring teachers that is no later than March 15 each year;
       ``(B) providing schools with their staffing allocations no 
     later than April of the preceding school year;
       ``(C) enabling schools to consider external candidates at 
     the same time as internal candidates for available positions;
       ``(D) moving up the teacher transfer period to April and 
     not requiring schools to hire transferring or `excessed' 
     teachers from other schools without selection and consent; 
     and
       ``(E) establishing and implementing a new principal 
     accountability framework to ensure that principals with 
     increased hiring authority are improving teacher quality.
       ``(2) Rule of construction.--Nothing in this subsection 
     shall be construed to alter or otherwise affect the rights, 
     remedies, and procedures afforded school or district 
     employees under Federal, State, or local laws (including 
     applicable regulations or court orders) or under the terms of 
     collective bargaining agreements, memoranda of understanding, 
     or other agreements between such employees and their 
     employers.
       ``(h) Priority.--In providing higher salaries to principals 
     and teachers under this section, a local educational agency 
     shall give priority to principals and teachers at schools 
     identified under section 1116 for school improvement, 
     corrective action, or restructuring.
       ``(i) Definitions.--In this section:
       ``(1) The term `high-need' means, with respect to an 
     elementary school or a secondary school, a school that serves 
     an eligible school attendance area in which not less than 65 
     percent of the children are from low-income families, based 
     on the number of children eligible for free and reduced 
     priced lunches under the Richard B. Russell National School 
     Lunch Act, or in which not less than 65 percent of the 
     children enrolled are from such families.
       ``(2) The term `documented shortage of teachers'--
       ``(A) means a shortage of teachers documented in the needs 
     assessment submitted under section 2122 by the local 
     educational agency involved or some other official 
     demonstration of shortage by the local education agency; and
       ``(B) may include such a shortage in mathematics, science, 
     a foreign language, special education, bilingual education, 
     or reading.
       ``(3) The term `exemplary, highly qualified principal' 
     means a principal who--
       ``(A) demonstrates a belief that every student can achieve 
     at high levels;
       ``(B) demonstrates an ability to drive substantial gains in 
     academic achievement for all students while closing the 
     achievement gap for those farthest from meeting standards;
       ``(C) uses data to drive instructional improvement;
       ``(D) provides ongoing support and development for 
     teachers; and
       ``(E) builds a positive school community, treating every 
     student with respect and reinforcing high expectations for 
     all.
       ``(4) The term `exemplary, highly qualified teacher' means 
     a highly qualified teacher who is rated as exemplary pursuant 
     to a system described in subsection (e).
       ``(j) Authorization of Appropriations.--To carry out this 
     section, there are authorized to be appropriated 
     $2,200,000,000 for fiscal year 2006 and such sums as may be 
     necessary for each of the 5 succeeding fiscal years.

     ``SEC. 2502. CAREER LADDERS FOR TEACHERS PROGRAM.

       ``(a) Grants.--The Secretary may make grants to local 
     educational agencies to establish and implement a Career 
     Ladders for Teachers Program in which the agency--
       ``(1) augments the salary of teachers in high-need 
     elementary schools and high-need secondary schools to 
     correspond to the increasing responsibilities and leadership 
     roles assumed by the teachers as they take on new 
     professional roles (such as serving on school leadership 
     teams, serving as instructional coaches, and serving in 
     hybrid roles), including by--
       ``(A) providing up to $10,000 as an annual augmentation to 
     master teachers (including teachers serving as master 
     teachers as part of a state-of the-art teacher induction 
     program under section 2511); and
       ``(B) providing up to $5,000 as an annual augmentation to 
     mentor teachers (including

[[Page 12152]]

     teachers serving as mentor teachers as part of a state-of-
     the-art teacher induction program under section 2511);
       ``(2) provides up to $4,000 as an annual bonus to all 
     career teachers, master teachers, and mentor teachers in 
     high-need elementary schools and high-need secondary schools 
     based on a combination of--
       ``(A) at least 3 classroom evaluations over the course of 
     the year that shall--
       ``(i) be conducted by multiple evaluators, including master 
     teachers and the principal;
       ``(ii) be based on classroom observation at least 3 times 
     annually; and
       ``(iii) be evaluated against research-validated benchmarks 
     that use planning, instructional, and learning environment 
     standards to measure teacher performance; and
       ``(B) the performance of the teacher's students as 
     determined by--
       ``(i) student growth on any test that is required by the 
     State educational agency or local educational agency and is 
     administered to the teacher's students; or
       ``(ii) in States or local educational agencies with value-
     added longitudinal data systems, whole-school value-added 
     student achievement gains and classroom-level value-added 
     student achievement gains; or
       ``(3) provides up to $4,000 as an annual bonus to 
     principals in elementary schools and secondary schools based 
     on the performance of the school's students, taking into 
     consideration whole-school value-added student achievement 
     gains in States that have value-added longitudinal data 
     systems and in which information on whole-school value-added 
     student achievement gains is available.
       ``(b) Eligibility Requirement.--A local educational agency 
     may not use any funds under this section to establish or 
     implement a Career Ladders for Teachers Program unless--
       ``(1) the percentage of teachers required by prevailing 
     union rules votes affirmatively to adopt the program; or
       ``(2) in States that do not recognize collective bargaining 
     between local educational agencies and teacher organizations, 
     at least 75 percent of the teachers in the local educational 
     agency vote affirmatively to adopt the program.
       ``(c) Definitions.--In this section:
       ``(1) The term `career teacher' means a teacher who has a 
     bachelor's degree and full credentials or alternative 
     certification including a passing level on elementary or 
     secondary subject matter assessments and professional 
     knowledge assessments.
       ``(2) The term `mentor teacher' means a teacher who--
       ``(A) has a bachelor's degree and full credentials or 
     alternative certification including a passing level on any 
     applicable elementary or secondary subject matter assessments 
     and professional knowledge assessments;
       ``(B) has a portfolio and a classroom demonstration showing 
     instructional excellence;
       ``(C) has an ability, as demonstrated by student data, to 
     increase student achievement through utilizing specific 
     instructional strategies;
       ``(D) has a minimum of 3 years of teaching experience;
       ``(E) is recommended by the principal and other current 
     master and mentor teachers;
       ``(F) is an excellent instructor and communicator with an 
     understanding of how to facilitate growth in the teachers the 
     teacher is mentoring; and
       ``(G) performs well as a mentor in established induction 
     and peer review and mentoring programs.
       ``(3) The term `master teacher' means a teacher who--
       ``(A) holds a master's degree in the relevant academic 
     discipline;
       ``(B) has at least 5 years of successful teaching 
     experience, as measured by performance evaluations, a 
     portfolio of work, or National Board for Professional 
     Teaching Standards certification;
       ``(C) demonstrates expertise in content, curriculum 
     development, student learning, test analysis, mentoring, and 
     professional development, as demonstrated by an advanced 
     degree, advanced training, career experience, or National 
     Board for Professional Teaching Standards certification;
       ``(D) presents student data that illustrates the teacher's 
     ability to increase student achievement through utilizing 
     specific instructional interventions;
       ``(E) has instructional expertise demonstrated through 
     model teaching, team teaching, video presentations, student 
     achievement gains, or National Board for Professional 
     Teaching Standards certification;
       ``(F) may hold a valid National Board for Professional 
     Teaching Standards certificate, may have passed another 
     rigorous standard, or may have been selected as a school, 
     district, or State teacher of the year; and
       ``(G) is currently participating, or has previously 
     participated, in a professional development program that 
     supports classroom teachers as mentors.
       ``(4) The term `high-need', with respect to an elementary 
     school or a secondary school, has the meaning given to that 
     term in section 2501.
       ``(d) Authorization of Appropriations.--To carry out this 
     section, there is authorized to be appropriated $200,000,000 
     for fiscal year 2006 and such sums as may be necessary for 
     each of the 5 succeeding fiscal years.''.

                TITLE III--IMPROVING TEACHER PREPARATION

     SEC. 301. AMENDMENT TO ELEMENTARY AND SECONDARY EDUCATION ACT 
                   OF 1965.

       Part E of title II of the Elementary and Secondary 
     Education Act of 1965, as added by title II of this Act, is 
     amended by adding at the end the following:

                        ``Subpart 2--Preparation

     ``SEC. 2511. ESTABLISHING STATE-OF-THE-ART TEACHER INDUCTION 
                   PROGRAMS.

       ``(a) Grants.--The Secretary may make grants to States and 
     eligible local educational agencies for the purpose of 
     developing state-of-the-art teacher induction programs.
       ``(b) Eligible Local Educational Agency.--In this section, 
     the term `eligible local educational agency' means--
       ``(1) a high-need local educational agency; or
       ``(2) a partnership of a high-need local educational agency 
     and an institution of higher education, a teacher 
     organization, or any other nonprofit education organization.
       ``(c) Use of Funds.--A State or an eligible local 
     educational agency that receives a grant under subsection (a) 
     shall use the funds made available through the grant to 
     develop a state-of the-art teacher induction program that--
       ``(1) provides new teachers a minimum of 3 years of 
     extensive, high-quality, comprehensive induction into the 
     field of teaching; and
       ``(2) includes--
       ``(A) structured mentoring from highly qualified master or 
     mentor teachers who are certified, have teaching experience 
     similar to the grade level or subject assignment of the new 
     teacher, and are trained to mentor new teachers;
       ``(B) at least 90 minutes each week of common meeting time 
     for a new teacher to discuss student work and teaching under 
     the director of a master or mentor teacher;
       ``(C) regular classroom observation in the new teacher's 
     classroom;
       ``(D) observation by the new teacher of the mentor 
     teacher's classroom;
       ``(E) intensive professional development activities for new 
     teachers that result in improved teaching leading to student 
     achievement, including lesson demonstration by master and 
     mentor teachers in the classroom, observation, and feedback;
       ``(F) training in effective instructional services and 
     classroom management strategies for mainstream teachers 
     serving students with disabilities and students with limited 
     English proficiency;
       ``(G) observation of teachers and feedback at least 4 times 
     each school year by multiple evaluators, including master 
     teachers and the principals, using research-validated 
     benchmarks of teaching skills and standards that are 
     developed with input from teachers;
       ``(H) paid release time for the mentor teacher for 
     mentoring, or salary supplements under section 2502, for 
     mentoring new teachers at a ratio of one full-time mentor to 
     every 12 new teachers;
       ``(I) a transition year to the classroom that includes a 
     reduced workload for beginning teachers; and
       ``(J) a standards-based assessment of every beginning 
     teacher to determine whether the teacher should move forward 
     in the teaching profession, which assessment may include 
     examination of practice and a measure of gains in student 
     learning.
       ``(d) Additional Requirement.--The Secretary shall 
     commission an independent evaluation of state-of the-art 
     teacher induction programs supported under this section in 
     order to compare the design and outcome of various models of 
     induction programs.
       ``(e) Authorization of Appropriations.--To carry out this 
     section, there is authorized to be appropriated $300,000,000 
     for fiscal year 2006 and such sums as may be necessary for 
     each of the 5 succeeding fiscal years.

     ``SEC. 2512. PEER MENTORING AND REVIEW PROGRAMS.

       ``(a) Grants.--The Secretary shall make grants to local 
     educational agencies for peer mentoring and review programs.
       ``(b) Use of Funds.--A local educational agency that 
     receives a grant under this section shall use the funds made 
     available through the grant to establish and implement a peer 
     mentoring and review program. Such a program shall be 
     established through collective bargaining agreements or, in 
     States that do not recognize collective bargaining between 
     local educational agencies and teacher organizations, through 
     joint agreements between the local educational agency and 
     affected teacher organizations.
       ``(c) Application.--To seek a grant under this section, a 
     local educational agency shall submit an application at such 
     time, in such manner, and containing such information as the 
     Secretary may reasonably require. The Secretary shall require 
     each such application to include the following:
       ``(1) Data from the applicant on recruitment and retention 
     prior to implementing the induction program.
       ``(2) Measurable goals for increasing retention after the 
     induction program is implemented.

[[Page 12153]]

       ``(3) Measures that will be used to determine whether 
     teacher effectiveness is improved through participation in 
     the induction program.
       ``(4) A plan for evaluating and reporting progress toward 
     meeting the applicant's goals.
       ``(d) Progress Reports.--The Secretary shall require each 
     grantee under this section to submit progress reports on an 
     annual basis.
       ``(e) Authorization of Appropriations.--To carry out this 
     section, there are authorized to be appropriated $50,000,000 
     for fiscal year 2006 and such sums as may be necessary for 
     each of the 5 succeeding fiscal years.

     ``SEC. 2513. ESTABLISHING STATE-OF-THE-ART PRINCIPAL TRAINING 
                   AND INDUCTION PROGRAMS AND PERFORMANCE-BASED 
                   PRINCIPAL CERTIFICATION.

       ``(a) Grants.--The Secretary may make grants to not more 
     than 10 States to develop, implement, and evaluate pilot 
     programs for performance-based certification and training of 
     exemplary, highly qualified principals who can drive gains in 
     academic achievement for all children.
       ``(b) Program Requirements.--A pilot program developed 
     under this section--
       ``(1) shall pilot the development, implementation, and 
     evaluation of a statewide performance-based system for 
     certifying principals;
       ``(2) shall pilot and demonstrate the effectiveness of 
     statewide performance-based certification through support for 
     innovative performance-based programs on a smaller scale;
       ``(3) shall provide for certification of principals by 
     institutions with strong track records, such as a local 
     educational agency, nonprofit organization, or business 
     school, that is approved by the State for purposes of such 
     certification and has formalized partnerships with in-State 
     local educational agencies;
       ``(4) may be used to develop, sustain, and expand model 
     programs for recruiting and training aspiring and new 
     principals in both instructional leadership and general 
     management skills;
       ``(5) shall include evaluation of the results of the pilot 
     program and other in-State programs of principal preparation 
     (which evaluation may include value-added assessment scores 
     of all children in a school and should emphasize the 
     correlation of academic achievement gains in schools led by 
     participating principals and the characteristics and skills 
     demonstrated by those individuals when applying to and 
     participating in the program) to inform the design of 
     certification of individuals to become school leaders in the 
     State; and
       ``(6) shall make possible interim certification for up to 2 
     years for aspiring principals participating in the pilot 
     program who--
       ``(A) have not yet attained full certification;
       ``(B) are serving as assistant principals or principal 
     residents, or in positions of similar responsibility; and
       ``(C) have met clearly defined criteria for entry into the 
     program that are approved by the applicable local educational 
     agency.
       ``(c) Priority.--In selecting grant recipients under this 
     section, the Secretary shall give priority to States that 
     will use the grants for one or more high-need local 
     educational agencies and schools.
       ``(d) Terms of Grant.--A grant under this section--
       ``(1) shall be for not more than 5 years; and
       ``(2) shall be performance-based, permitting the Secretary 
     to discontinue funding based on failure of the State to meet 
     benchmarks identified by the State.
       ``(e) Use of Evaluation Results.--A State receiving a grant 
     under this section shall use the evaluation results of the 
     pilot program conducted pursuant to the grant and similar 
     evaluations of other in-State programs of principal 
     preparation (especially the correlation of academic 
     achievement gains in schools led by participating principals 
     and the characteristics and skills demonstrated by those 
     individuals when applying to and participating in the pilot 
     program) to inform the design of certification of individuals 
     to become school leaders in the State.
       ``(f) Definitions.--For the purposes of this section:
       ``(1) The term `exemplary, highly qualified principal' has 
     the meaning given to that term in section 2501.
       ``(2) The term `performance-based certification system' 
     means a certification system that--
       ``(A) is based on a clearly defined set of standards for 
     skills and knowledge needed by new principals;
       ``(B) is not based on numbers of hours enrolled in 
     particular courses;
       ``(C) certifies participating individuals to become school 
     leaders primarily based on--
       ``(i) their demonstration of those skills through a formal 
     assessment aligned to these standards; and
       ``(ii) academic achievement results in a school leadership 
     role such as a residency or an assistant principalship; and
       ``(D) awards certification to individuals who successfully 
     complete programs at institutions that include local 
     educational agencies, nonprofit organizations, and business 
     schools approved by the State for purposes of such 
     certification and have formalized partnerships with in-State 
     local educational agencies.
       ``(g) Authorization of Appropriations.--To carry out this 
     section, there are authorized to be appropriated $100,000,000 
     for fiscal year 2006 and such sums as may be necessary for 
     each of the 5 succeeding fiscal years.

     ``SEC. 2514. STUDY ON DEVELOPING A PORTABLE PERFORMANCE-BASED 
                   TEACHER ASSESSMENT.

       ``(a) Study.--
       ``(1) In general.--The Secretary shall enter into an 
     arrangement with an objective evaluation firm to conduct a 
     study to assess the validity of any test used for teacher 
     certification or licensure by multiple States, taking into 
     account the passing scores adopted by multiple States. The 
     study shall determine the following:
       ``(A) The extent to which tests of content knowledge 
     represent subject mastery at the baccalaureate level.
       ``(B) Whether tests of pedagogy reflect the latest research 
     on teaching and learning.
       ``(C) The relationship, if any, between teachers' scores on 
     licensure and certification exams and other measures of 
     teacher effectiveness, including learning gains achieved by 
     the teachers' students.
       ``(2) Report.--The Secretary shall submit a report to the 
     Congress on the results of the study conducted under this 
     subsection.
       ``(b) Grant to Create a Model Performance-based 
     Assessment.--
       ``(1) Grant.--The Secretary may make 1 grant to an eligible 
     partnership to create a model performance-based assessment of 
     teaching skills that reliably evaluates teaching skills in 
     practice and can be used to facilitate the portability of 
     teacher credentials and licensing from one State to another.
       ``(2) Consideration of study.--In creating a model 
     performance-based assessment of teaching skills, the 
     recipient of a grant under this section shall take into 
     consideration the results of the study conducted under 
     subsection (a).
       ``(3) Eligible partnership.--In this section, the term 
     `eligible partnership' means a partnership of--
       ``(A) an independent professional organization; and
       ``(B) an organization that represents administrators of 
     State educational agencies.''.

     SEC. 302. AMENDMENT TO THE HIGHER EDUCATION ACT OF 1965: 
                   TEACHER QUALITY ENHANCEMENT GRANTS.

       Part A of title II of the Higher Education Act of 1965 is 
     amended by striking sections 206 through 209 (20 U.S.C. 1026-
     1029) and inserting the following:

     ``SEC. 206. ACCOUNTABILITY AND EVALUATION.

       ``(a) State Grant Accountability Report.--An eligible State 
     that receives a grant under section 202 shall submit an 
     annual accountability report to the Secretary, the Committee 
     on Health, Education, Labor, and Pensions of the Senate, and 
     the Committee on Education and the Workforce of the House of 
     Representatives. Such report shall include a description of 
     the degree to which the eligible State, in using funds 
     provided under such section, has made substantial progress in 
     meeting the following goals:
       ``(1) Percentage of highly qualified teachers.--Increasing 
     the percentage of highly qualified teachers in the State as 
     required by section 1119 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6319).
       ``(2) Student academic achievement.--Increasing student 
     academic achievement for all students, which may be measured 
     through the use of value-added assessments, as defined by the 
     eligible State.
       ``(3) Raising standards.--Raising the State academic 
     standards required to enter the teaching profession as a 
     highly qualified teacher.
       ``(4) Initial certification or licensure.--Increasing 
     success in the pass rate for initial State teacher 
     certification or licensure, or increasing the numbers of 
     qualified individuals being certified or licensed as teachers 
     through alternative routes to certification and licensure.
       ``(5) Decreasing teacher shortages.--Decreasing shortages 
     of highly qualified teachers in poor urban and rural areas.
       ``(6) Increasing opportunities for research-based 
     professional development.--Increasing opportunities for 
     enhanced and ongoing professional development that--
       ``(A) improves the academic content knowledge of teachers 
     in the subject areas in which the teachers are certified or 
     licensed to teach or in which the teachers are working toward 
     certification or licensure to teach; and
       ``(B) promotes strong teaching skills.
       ``(7) Technology integration.--Increasing the number of 
     teachers prepared effectively to integrate technology into 
     curricula and instruction and who use technology to collect, 
     manage, and analyze data to improve teaching, learning, and 
     parental involvement decisionmaking for the purpose of 
     increasing student academic achievement.
       ``(b) Eligible Partnership Evaluation.--Each eligible 
     partnership applying for a grant under section 203 shall 
     establish, and include in the application submitted under 
     section 203(c), an evaluation plan that includes strong 
     performance objectives. The plan shall include objectives and 
     measures for--

[[Page 12154]]

       ``(1) increased student achievement for all students, as 
     measured by the partnership;
       ``(2) increased teacher retention in the first 3 years of a 
     teacher's career;
       ``(3) increased success in the pass rate for initial State 
     certification or licensure of teachers;
       ``(4) increased percentage of highly qualified teachers; 
     and
       ``(5) increasing the number of teachers trained effectively 
     to integrate technology into curricula and instruction and 
     who use technology to collect, manage, and analyze data to 
     improve teaching, learning, and decisionmaking for the 
     purpose of improving student academic achievement.
       ``(c) Revocation of Grant.--
       ``(1) Report.--Each eligible State or eligible partnership 
     receiving a grant under section 202 or 203 shall report 
     annually on the progress of the eligible State or eligible 
     partnership toward meeting the purposes of this part and the 
     goals, objectives, and measures described in subsections (a) 
     and (b).
       ``(2) Revocation.--
       ``(A) Eligible states and eligible applicants.--If the 
     Secretary determines that an eligible State or eligible 
     applicant is not making substantial progress in meeting the 
     purposes, goals, objectives, and measures, as appropriate, by 
     the end of the second year of a grant under this part, then 
     the grant payment shall not be made for the third year of the 
     grant.
       ``(B) Eligible partnerships.--If the Secretary determines 
     that an eligible partnership is not making substantial 
     progress in meeting the purposes, goals, objectives, and 
     measures, as appropriate, by the end of the third year of a 
     grant under this part, then the grant payments shall not be 
     made for any succeeding year of the grant.
       ``(d) Evaluation and Dissemination.--The Secretary shall 
     evaluate the activities funded under this part and report 
     annually the Secretary's findings regarding the activities to 
     the Committee on Health, Education, Labor, and Pensions of 
     the Senate and the Committee on Education and the Workforce 
     of the House of Representatives. The Secretary shall broadly 
     disseminate successful practices developed by eligible States 
     and eligible partnerships under this part, and shall broadly 
     disseminate information regarding such practices that were 
     found to be ineffective.

     ``SEC. 207. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE 
                   TEACHERS.

       ``(a) State Report Card on the Quality of Teacher and 
     Principal Preparation.--Each State that receives funds under 
     this Act shall provide to the Secretary annually, in a 
     uniform and comprehensible manner that conforms with the 
     definitions and methods established by the Secretary, a State 
     report card on the quality of teacher preparation in the 
     State, both for traditional certification or licensure 
     programs and for alternative certification or licensure 
     programs, which shall include at least the following:
       ``(1) A description of the teacher and principal 
     certification and licensure assessments, and any other 
     certification and licensure requirements, used by the State.
       ``(2) The standards and criteria that prospective teachers 
     and principals must meet in order to attain initial teacher 
     and principal certification or licensure and to be certified 
     or licensed to teach particular subjects or in particular 
     grades within the State.
       ``(3) A demonstration of the extent to which the 
     assessments and requirements described in paragraph (1) are 
     aligned with the State's standards and assessments for 
     students.
       ``(4) The percentage of students who have completed the 
     clinical coursework for a teacher preparation program at an 
     institution of higher education or alternative certification 
     program and who have taken and passed each of the assessments 
     used by the State for teacher certification and licensure, 
     and the passing score on each assessment that determines 
     whether a candidate has passed that assessment.
       ``(5) For students who have completed the clinical 
     coursework for a teacher preparation program at an 
     institution of higher education or alternative certification 
     program, and who have taken and passed each of the 
     assessments used by the State for teacher certification and 
     licensure, each such institution's and each such program's 
     average raw score, ranked by teacher preparation program, 
     which shall be made available widely and publicly.
       ``(6) A description of each State's alternative routes to 
     teacher certification, if any, and the number and percentage 
     of teachers certified through each alternative certification 
     route who pass State teacher certification or licensure 
     assessments.
       ``(7) For each State, a description of proposed criteria 
     for assessing the performance of teacher and principal 
     preparation programs in the State, including indicators of 
     teacher and principal candidate skills, placement, and 
     retention rates (to the extent feasible), and academic 
     content knowledge and evidence of gains in student academic 
     achievement.
       ``(8) For each teacher preparation program in the State, 
     the number of students in the program, the number of minority 
     students in the program, the average number of hours of 
     supervised practice teaching required for those in the 
     program, and the number of full-time equivalent faculty, 
     adjunct faculty, and students in supervised practice 
     teaching.
       ``(9) For the State as a whole, and for each teacher 
     preparation program in the State, the number of teachers 
     prepared, in the aggregate and reported separately by--
       ``(A) level (elementary or secondary);
       ``(B) academic major;
       ``(C) subject or subjects for which the student has been 
     prepared to teach; and
       ``(D) teacher candidates who speak a language other than 
     English and have been trained specifically to teach English-
     language learners.
       ``(10) The State shall refer to the data generated for 
     paragraphs (8) and (9) to report on the extent to which 
     teacher preparation programs are helping to address shortages 
     of qualified teachers, by level, subject, and specialty, in 
     the State's public schools, especially in poor urban and 
     rural areas as required by section 206(a)(5).
       ``(b) Report of the Secretary on the Quality of Teacher 
     Preparation.--
       ``(1) Report card.--The Secretary shall provide to 
     Congress, and publish and make widely available, a report 
     card on teacher qualifications and preparation in the United 
     States, including all the information reported in paragraphs 
     (1) through (10) of subsection (a). Such report shall 
     identify States for which eligible States and eligible 
     partnerships received a grant under this part. Such report 
     shall be so provided, published and made available annually.
       ``(2) Report to congress.--The Secretary shall report to 
     Congress--
       ``(A) a comparison of States' efforts to improve teaching 
     quality; and
       ``(B) regarding the national mean and median scores on any 
     standardized test that is used in more than 1 State for 
     teacher certification or licensure.
       ``(3) Special rule.--In the case of programs with fewer 
     than 10 students who have completed the clinical coursework 
     for a teacher preparation program taking any single initial 
     teacher certification or licensure assessment during an 
     academic year, the Secretary shall collect and publish 
     information with respect to an average pass rate on State 
     certification or licensure assessments taken over a 3-year 
     period.
       ``(c) Coordination.--The Secretary, to the extent 
     practicable, shall coordinate the information collected and 
     published under this part among States for individuals who 
     took State teacher certification or licensure assessments in 
     a State other than the State in which the individual received 
     the individual's most recent degree.
       ``(d) Institution and Program Report Cards on Quality of 
     Teacher Preparation.--
       ``(1) Report card.--Each institution of higher education or 
     alternative certification program that conducts a teacher 
     preparation program that enrolls students receiving Federal 
     assistance under this Act shall report annually to the State 
     and the general public, in a uniform and comprehensible 
     manner that conforms with the definitions and methods 
     established by the Secretary, both for traditional 
     certification or licensure programs and for alternative 
     certification or licensure programs, the following 
     information, disaggregated by major racial and ethnic groups:
       ``(A) Pass rate.--(i) For the most recent year for which 
     the information is available, the pass rate of each student 
     who has completed the clinical coursework for the teacher 
     preparation program on the teacher certification or licensure 
     assessments of the State in which the institution is located, 
     but only for those students who took those assessments within 
     3 years of receiving a degree from the institution or 
     completing the program.
       ``(ii) A comparison of the institution or program's pass 
     rate for students who have completed the clinical coursework 
     for the teacher preparation program with the average pass 
     rate for institutions and programs in the State.
       ``(iii) In the case of programs with fewer than 10 students 
     who have completed the clinical coursework for a teacher 
     preparation program taking any single initial teacher 
     certification or licensure assessment during an academic 
     year, the institution shall collect and publish information 
     with respect to an average pass rate on State certification 
     or licensure assessments taken over a 3-year period.
       ``(B) Program information.--The number of students in the 
     program, the average number of hours of supervised practice 
     teaching required for those in the program, and the number of 
     full-time equivalent faculty and students in supervised 
     practice teaching.
       ``(C) Statement.--In States that require approval or 
     accreditation of teacher education programs, a statement of 
     whether the institution's program is so approved or 
     accredited, and by whom.
       ``(D) Designation as low-performing.--Whether the program 
     has been designated as low-performing by the State under 
     section 208(a).
       ``(2) Requirement.--The information described in paragraph 
     (1) shall be reported through publications such as school 
     catalogs and promotional materials sent to potential 
     applicants, secondary school guidance counselors, and 
     prospective employers of the institution's program graduates, 
     including materials sent by electronic means.

[[Page 12155]]

       ``(3) Fines.--In addition to the actions authorized in 
     section 487(c), the Secretary may impose a fine not to exceed 
     $25,000 on an institution of higher education for failure to 
     provide the information described in this subsection in a 
     timely or accurate manner.
       ``(e) Data Quality.--Either--
       ``(1) the Governor of the State; or
       ``(2) in the case of a State for which the constitution or 
     law of such State designates another individual, entity, or 
     agency in the State to be responsible for teacher 
     certification and preparation activity, such individual, 
     entity, or agency;

     shall attest annually, in writing, as to the reliability, 
     validity, integrity, and accuracy of the data submitted 
     pursuant to this section.

     ``SEC. 208. STATE FUNCTIONS.

       ``(a) State Assessment.--In order to receive funds under 
     this Act, a State shall have in place a procedure to identify 
     and assist, through the provision of technical assistance, 
     low-performing programs of teacher preparation within 
     institutions of higher education. Such State shall provide 
     the Secretary an annual list of such low-performing 
     institutions that includes an identification of those 
     institutions at risk of being placed on such list. Such 
     levels of performance shall be determined solely by the State 
     and may include criteria based upon information collected 
     pursuant to this part. Such assessment shall be described in 
     the report under section 207(a). A State receiving Federal 
     funds under this title shall develop plans to close or 
     reconstitute underperforming programs of teacher preparation 
     within institutions of higher education.
       ``(b) Termination of Eligibility.--Any institution of 
     higher education that offers a program of teacher preparation 
     in which the State has withdrawn the State's approval or 
     terminated the State's financial support due to the low 
     performance of the institution's teacher preparation program 
     based upon the State assessment described in subsection (a)--
       ``(1) shall be ineligible for any funding for professional 
     development activities awarded by the Department of 
     Education; and
       ``(2) shall not be permitted to accept or enroll any 
     student who receives aid under title IV of this Act in the 
     institution's teacher preparation program.

     ``SEC. 209. GENERAL PROVISIONS.

       ``In complying with sections 207 and 208, the Secretary 
     shall ensure that States and institutions of higher education 
     use fair and equitable methods in reporting and that the 
     reporting methods do not allow identification of 
     individuals.''.

     SEC. 303. ENFORCING NCLB'S TEACHER EQUITY PROVISION.

       Subpart 2 of part E of title IX of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7901 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 9537. ASSURANCE OF REASONABLE PROGRESS TOWARD 
                   EQUITABLE ACCESS TO TEACHER QUALITY.

       ``(a) In General.--The Secretary may not provide any 
     assistance to a State under this Act unless, in the State's 
     application for such assistance, the State--
       ``(1) provides the plan required by section 1111(b)(8)(C) 
     and at least one public report pursuant to that section;
       ``(2) clearly articulates the measures the State is using 
     to determine whether poor and minority students are being 
     taught disproportionately by inexperienced, unqualified, or 
     out-of-field teachers;
       ``(3) includes an evaluation of the success of the State's 
     plan required by section 1111(b)(8)(C) in addressing any such 
     disparities;
       ``(4) with respect to any such disparities, proposes 
     modifications to such plan; and
       ``(5) includes a description of the State's activities to 
     monitor the compliance of local educational agencies in the 
     State with section 1112(c)(1)(L).
       ``(b) Effective Date.--This section applies with respect to 
     any assistance under this Act for which an application is 
     submitted after the date of the enactment of this section.''.

TITLE IV--EQUIPPING TEACHERS, SCHOOLS, LOCAL EDUCATIONAL AGENCIES, AND 
  STATES WITH THE 21ST CENTURY DATA, TOOLS, AND ASSESSMENTS THEY NEED

     SEC. 401. 21ST CENTURY DATA, TOOLS, AND ASSESSMENTS.

       Part E of title II of the Elementary and Secondary 
     Education Act of 1965, as added by titles II and III of this 
     Act, is amended by adding at the end the following:

         ``Subpart 3--21st Century Data, Tools, and Assessments

     ``SEC. 2521. DEVELOPING VALUE-ADDED DATA SYSTEMS.

       ``(a) Teacher and Principal Evaluation.--
       ``(1) Grants.--The Secretary shall make grants to States to 
     develop and implement statewide data systems to collect and 
     analyze data on the effectiveness of elementary school and 
     secondary school teachers and principals, based on value-
     added student achievement gains, for the purposes of--
       ``(A) determining the distribution of effective teachers 
     and principals in schools across the State;
       ``(B) developing measures for helping teachers and 
     principals to improve their instruction; and
       ``(C) evaluating effectiveness of teacher and principal 
     preparation programs.
       ``(2) Data requirements.--At a minimum, a statewide data 
     system under this section shall--
       ``(A) track student course-taking patterns and teacher 
     characteristics, such as certification status and performance 
     on licensure exams; and
       ``(B) allow for the analysis of gains in achievement made 
     by individual students over time, including gains 
     demonstrated through student academic assessments under 
     section 1111 and tests required by the State for course 
     completion.
       ``(3) Standards.--The Secretary shall develop standards for 
     the collection of data with grant funds under this section to 
     ensure that such data are statistically valid and reliable.
       ``(4) Application.--To seek a grant under this section, a 
     State shall submit an application at such time, in such 
     manner, and containing such information as the Secretary may 
     require. At a minimum, each such application shall 
     demonstrate to the Secretary's satisfaction that the 
     assessments used by the State to collect and analyze data for 
     purposes of this subsection--
       ``(A) are aligned to State standards;
       ``(B) have the capacity to assess the highest- and lowest-
     performing students; and
       ``(C) are statistically valid and reliable.
       ``(b) Teacher Training.--The Secretary may make grants to 
     institutions of higher education, local educational agencies, 
     nonprofit organizations, and teacher organizations to develop 
     and implement innovative programs to provide preservice and 
     in-service training to elementary and secondary schools on--
       ``(1) understanding increasingly sophisticated student 
     achievement data, especially data derived from value-added 
     longitudinal data systems; and
       ``(2) using such data to improve classroom instruction.
       ``(c) Study.--The Secretary shall enter into an agreement 
     with the National Academy of Sciences--
       ``(1) to evaluate the quality of data on the effectiveness 
     of elementary and secondary school teachers, based on value-
     added student achievement gains; and
       ``(2) to compare a range of models for collecting and 
     analyzing such data.
       ``(d) Authorization of Appropriations.--To carry out this 
     section, there are authorized to be appropriated $200,000,000 
     for the period of fiscal years 2006 and 2007 and such sums as 
     may be necessary for each of the 4 succeeding fiscal 
     years.''.

     SEC. 402. COLLECTING NATIONAL DATA ON DISTRIBUTION OF 
                   TEACHERS.

       Section 155 of the Education Sciences Reform Act of 2002 
     (20 U.S.C. 9545) is amended by adding at the end the 
     following:
       ``(d) Schools and Staffing Survey.--Not later than the end 
     of fiscal year 2006, and every 3 years thereafter, the 
     Statistics Commissioner shall publish the results of the 
     Schools and Staffing Survey (or any successor survey).''.

     TITLE V--RETENTION: KEEPING OUR BEST TEACHERS IN THE CLASSROOM

     SEC. 501. AMENDMENT TO ELEMENTARY AND SECONDARY EDUCATION ACT 
                   OF 1965.

       Part E of title II of the Elementary and Secondary 
     Education Act of 1965, as added by titles II, III, and IV of 
     this Act, is amended by adding at the end the following:

             ``Subpart 4--Retention and Working Conditions

     ``SEC. 2531. IMPROVING PROFESSIONAL DEVELOPMENT 
                   OPPORTUNITIES.

       ``(a) Grants.--The Secretary may make grants to eligible 
     entities for the establishment and operation of new teacher 
     centers or the support of existing teacher centers.
       ``(b) Special Consideration.--In making grants under this 
     section, the Secretary shall give special consideration to 
     any application submitted by an eligible entity that is--
       ``(1) a high-need local educational agency; or
       ``(2) a consortium that includes at least one high-need 
     local educational agency.
       ``(c) Duration.--Each grant under this section shall be for 
     a period of 3 years.
       ``(d) Required Activities.--A teacher center receiving 
     assistance under this section shall carry out each of the 
     following activities:
       ``(1) Providing high-quality professional development to 
     teachers to assist them in improving their knowledge, skills, 
     and teaching practices in order to help students to improve 
     their achievement and meet State academic standards.
       ``(2) Providing teachers with information on developments 
     in curricula, assessments, and educational research, 
     including the manner in which the research and data can be 
     used to improve teaching skills and practice.
       ``(3) Providing training and support for new teachers.
       ``(e) Permissible Activities.--A teacher center may use 
     assistance under this section for any of the following:
       ``(1) Assessing the professional development needs of the 
     teachers and other instructional school employees, such as 
     librarians, counselors, and paraprofessionals, to be served 
     by the center.

[[Page 12156]]

       ``(2) Providing intensive support to staff to improve 
     instruction in literacy, mathematics, science, and other 
     curricular areas necessary to provide a well-rounded 
     education to students.
       ``(3) Providing support to mentors working with new 
     teachers.
       ``(4) Providing training in effective instructional 
     services and classroom management strategies for mainstream 
     teachers serving students with disabilities and students with 
     limited English proficiency.
       ``(5) Enabling teachers to engage in study groups and other 
     collaborative activities and collegial interactions regarding 
     instruction.
       ``(6) Paying for release time and substitute teachers in 
     order to enable teachers to participate in the activities of 
     the teacher center.
       ``(7) Creating libraries of professional materials and 
     educational technology.
       ``(8) Providing high-quality professional development for 
     other instructional staff, such as paraprofessionals, 
     librarians, and counselors.
       ``(9) Assisting teachers to become highly qualified and 
     paraprofessionals to become teachers.
       ``(10) Assisting paraprofessionals to meet the requirements 
     of section 1119.
       ``(11) Developing curricula.
       ``(12) Incorporating additional on-line professional 
     development resources for participants.
       ``(13) Providing funding for individual- or group-initiated 
     classroom projects.
       ``(14) Developing partnerships with businesses and 
     community-based organizations.
       ``(15) Establishing a teacher center site.
       ``(f) Teacher Center Policy Board.--
       ``(1) In general.--A teacher center receiving assistance 
     under this section shall be operated under the supervision of 
     a teacher center policy board.
       ``(2) Membership.--
       ``(A) Teacher representatives.--The majority of the members 
     of a teacher center policy board shall be representatives of, 
     and selected by, the elementary and secondary school teachers 
     to be served by the teacher center. Such representatives 
     shall be selected through the teacher organization, or if 
     there is no teacher organization, by the teachers directly.
       ``(B) Other representatives.--The members of a teacher 
     center policy board--
       ``(i) shall include at least two members who are 
     representative of, or designated by, the school board of the 
     local educational agency to be served by the teacher center;
       ``(ii) shall include at least one member who is a 
     representative of, and is designated by, the institutions of 
     higher education (with departments or schools of education) 
     located in the area; and
       ``(iii) may include paraprofessionals.
       ``(g) Application.--
       ``(1) In general.--To seek a grant under this section, an 
     eligible entity shall submit an application at such time, in 
     such manner, and accompanied by such information as the 
     Secretary may reasonably require.
       ``(2) Assurance of compliance.--An application under 
     paragraph (1) shall include an assurance that the applicant 
     will require any teacher center receiving assistance through 
     the grant to comply with the requirements of this section.
       ``(3) Teacher center policy board.--An application under 
     paragraph (1) shall include the following:
       ``(A) An assurance that--
       ``(i) the applicant has established a teacher center policy 
     board;
       ``(ii) the board participated fully in the preparation of 
     the application; and
       ``(iii) the board approved the application as submitted.
       ``(B) A description of the membership of the board and the 
     method of its selection.
       ``(h) Definitions.--In this section:
       ``(1) The term `eligible entity' means a local educational 
     agency or a consortium of 2 or more local educational 
     agencies.
       ``(2) The term `teacher center policy board' means a 
     teacher center policy board described in subsection (f).
       ``(i) Authorization of Appropriations.--To carry out this 
     section, there are authorized to be appropriated $100,000,000 
     for fiscal year 2006 and such sums as may be necessary for 
     each of the 5 succeeding fiscal years.''.

     SEC. 502. EXCLUSION FROM GROSS INCOME OF COMPENSATION OF 
                   TEACHERS AND PRINCIPALS IN CERTAIN HIGH-NEED 
                   SCHOOLS OR TEACHING HIGH-NEED SUBJECTS.

       (a) In General.--Part III of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by inserting 
     after section 139A the following new section:

     ``SEC. 139B. COMPENSATION OF CERTAIN TEACHERS AND PRINCIPALS.

       ``(a) Teachers and Principals in High-need Schools.--
       ``(1) In general.--In the case of an individual employed as 
     a teacher or principal in a high-need school during the 
     taxable year, gross income does not include so much 
     remuneration for such employment (which would but for this 
     paragraph be includible in gross income) as does not exceed 
     $15,000.
       ``(2) High-need school.--For purposes of this subsection, 
     the term `high-need school' means any public elementary 
     school or public secondary school eligible for assistance 
     under section 1114 of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6314).
       ``(b) Teachers of High-need Subjects.--
       ``(1) In general.--In the case of an individual employed as 
     a teacher of high-need subjects during the taxable year, 
     gross income does not include so much remuneration for such 
     employment (which would but for this paragraph be includible 
     in gross income) as does not exceed $15,000.
       ``(2) Teacher of high-need subjects.--For purposes of this 
     subsection, the term `teacher of high-need subjects' means 
     any teacher in a public elementary or secondary school who--
       ``(A) (i) teaches primarily 1 or more high-need subjects in 
     1 or more grades 9 through 12, or
       ``(ii) teaches 1 or more high-need subjects in 1 or more 
     grades kindergarten through 8,
       ``(B) received a baccalaureate or similar degree from an 
     eligible educational institution (as defined in section 
     25A(f)(2)) with a major in a high-need subject, and
       ``(C) is highly qualified (as defined in section 9101(23) 
     of the Elementary and Secondary Education Act of 1965).
       ``(3) High-need subjects.--For purposes of this subsection, 
     the term `high-need subject' means mathematics, science, 
     engineering, technology, special education, teaching English 
     language learners, or any other subject identified as a high-
     need subject by the Secretary of Education for purposes of 
     this section.
       ``(c) Limitation on Total Remuneration Taken Into 
     Account.--In the case of any individual whose employment is 
     described in subsections (a)(1) and (b)(1), the total amount 
     of remuneration which may be taken into account with respect 
     to such employment under this section for the taxable year 
     shall not exceed $25,000.''.
       (b) Clerical Amendment.--The table of section of such part 
     is amended by inserting after the item relating to section 
     139A the following new item:

``Sec. 139B. Compensation of certain teachers and principals''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to remuneration received in taxable years 
     beginning after the date of the enactment of this Act.

     SEC. 503. ABOVE-THE-LINE DEDUCTION FOR CERTAIN EXPENSES OF 
                   ELEMENTARY AND SECONDARY SCHOOL TEACHERS 
                   INCREASED AND MADE PERMANENT.

       (a) In General.--Subparagraph (D) of section 62(a)(2) of 
     the Internal Revenue Code of 1986 is amended by striking ``In 
     the case of'' and all that follows through ``$250'' and 
     inserting ``The deductions allowed by section 162 which 
     consist of expenses, not in excess of $500''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

                   TITLE VI--MISCELLANEOUS PROVISIONS

     SEC. 601. CONFORMING AMENDMENTS.

       The table of contents at section 2 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) is 
     amended--
       (1) by inserting after the items relating to part D of 
     title II of such Act the following new items:

             ``Part E--Teacher Excellence for All Children

``Sec. 2500. Definitions.


                       ``Subpart 1--Distribution

``Sec. 2501. Premium pay; loan repayment.
``Sec. 2502. Career ladders for teachers program.


                        ``Subpart 2--Preparation

``Sec. 2511. Establishing state-of-the-art teacher induction programs.
``Sec. 2512. Peer mentoring and review programs.
``Sec. 2513. Establishing state-of-the-art principal training and 
              induction programs and performance-based principal 
              certification.
``Sec. 2514. Study on developing a portable performance-based teacher 
              assessment.


         ``Subpart 3--21st Century Data, Tools, and Assessments

``Sec. 2521. Developing value-added data systems.


             ``Subpart 4--Retention and Working Conditions

``Sec. 2531. Improving professional development opportunities.''; and

       (2) by inserting after the items relating to subpart 2 of 
     part E of title IX of the Elementary and Secondary Education 
     Act of 1965 the following new item:

``Sec. 9537. Assurance of reasonable progress toward equitable access 
              to teacher quality.''.
                                 ______
                                 
      By Mr. BURNS:
  S. 1219. A bill to authorize certain tribes in the State of Montana 
to enter into a lease or other temporary conveyance of water rights to 
meet the water needs of the Dry Prairie Rural Water Association, Inc; 
to the Committee on Energy and Natural Resources.
  Mr. BURNS. Mr. President, today I am introducing legislation that 
provides an important clarification to the

[[Page 12157]]

Fort Peck Reservation Rural Water System Act of 2000. The water project 
authorized by that legislation will provide desperately needed drinking 
water to the residents of the Fort Peck Indian Reservation and the 
communities surrounding the Reservation Dry Prairie Rural Water System.
  In order to accomplish this, the Assiniboine and Sioux Tribes of the 
Fort Peck Reservation and Dry Prairie are set to enter into an 
agreement, allowing Dry Prairie to use the water. The Dry Prairie 
allocation will be approximately 2,800 acre feet of water. The 
agreement is consistent with the provisions of the Tribes' Water 
Compact. However, to address any possible questions regarding the 
Tribes' grant of use of this water to Dry Prairie, both the Tribes and 
Dry Prairie would like the Secretary's authority to approve this water 
use agreement to be clearly approved by Congress. The legislation I am 
introducing today provides this clarification.
  The Project, as authorized, calls for the water to be diverted from 
the Missouri River at a single location south of Poplar, MT, to an 
intake system or an infiltration gallery. The estimated amount of 
annual project diversion is 6,000 acre feet for the entire Project 
area. The Missouri River at the point of diversion has an average 
annual streamflow of approximately 7.5 million acre feet.
  The Tribes, pursuant to their tribal-state water rights compact, one 
of the first in the Nation, hold a water right to nearly one million 
acre feet in the Missouri River. This compact has been approved by the 
Montana Water Court and is binding on all the parties. This Project 
will finally enable the Fort Peck Tribes to receive critical benefits 
from its water settlement with the United States and the State of 
Montana. As a result of this settlement, the Tribes are able to make a 
significant contribution to the Project: the water that will be used 
for the entire system. My legislation will provide the legal clarity 
necessary to ensure this project moves forward as intended.
                                 ______
                                 
      By Mr. DODD (for himself, Ms. Collins, and Mr. Leahy):
  S. 1220. A bill to assist law enforcement in their efforts to recover 
missing children and to strengthen the standards for State sex offender 
registration programs; to the Committee on the Judiciary.
  Mr. DODD. Mr. President, I am pleased to join with my colleague from 
Maine, Senator Collins, and my colleague from Vermont, Senator Leahy, 
to introduce legislation today to protect America's children from the 
vicious criminals who prey on them.
  While we've made some progress in the last few years, anyone who 
picks up a newspaper today can see that far too many of our kids are 
still too vulnerable.
  The most recent annual data shows that about 58,000 children were 
abducted by nonfamily members, usually people who are strangers to the 
children. The most frequent victims were teenage girls. Almost one-half 
of these victims were sexually molested.
  Our bill, ``The Prevention and Recovery of Missing Children Act of 
2005'', will take 3 common-sense steps to better protect the children 
of America.
  First, it will require that information on a missing child be 
disseminated throughout the country within 2 hours through the National 
Crime Information Center database. The reason for this requirement is 
that time is of the essence. In cases where a child is killed, the 
evidence shows that the child died within the first three hours of 
being kidnapped. The more quickly that police throughout the country 
can be alerted, the more likely it is that we can save a child before a 
child is harmed.
  Second, the bill will make it tougher for convicted sex offenders to 
escape the law and the watchful eye of the community in which they 
live. We know that far too many jurisdictions rely essentially on the 
voluntary actions of the convicted sex offender to register his 
residence, his car and license plate, and other pertinent information. 
Moreover, requirements vary from State to State and jurisdiction to 
jurisdiction.
  Therefore the legislation we are introducing today will provide tough 
national standards that will require these criminals to register before 
they are released from prison. It will require, within 48 hours of 
moving to a new residence, that these individuals report to local law 
enforcement and provide information about their residence, a current 
photograph, DNA sample, as well as report the make, model, and license 
plate number of his or her vehicle and get a drivers license or ID. 
Every 90 days, they would have to verify their registry information and 
annually provide a new photograph. Failure to comply with these 
requirements would subject the criminal to a felony.
  These new requirements are tough, but our children's safety is far 
too important to be left to patchwork laws and the voluntary action of 
convicted criminals whose likelihood of repeating the crime is 
extremely high.
  Third, the legislation removes a current requirement that the names 
of missing children be deleted from the national database when those 
children turn 18. Just because a child turns 18 doesn't mean that our 
country should not try to find that child and certainly doesn't mean 
that the child should be forgotten.
  Nothing we do as a Nation is more important than building a better 
future for our children. And, nothing is more important to building 
that future than keeping our children safe today.
  Therefore, in my view, no legislation is more important to be enacted 
in this Congress than this legislation to protect our children from 
every parent's nightmare. I ask unanimous consent to have a brief 
summary of the bill printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record as follows:

 Prevention and Recovery of Missing Children Act of 2005--Brief Summary

       The most recent annual data shows that 58,000 children were 
     abducted by nonfamily members, mostly strangers to the 
     children. Most of the victims were teenage girls and nearly 
     half were sexually molested. The National Crime Information 
     Center (NCIC) database is a critical means of cooperation, 
     linking 16,000 Federal, State, and local law enforcement 
     agencies. Currently, registration for convicted sex offender 
     rules vary by state. A number of States rely on sex offenders 
     to self-report.
       Improves missing child reporting requirements. Stops the 
     practice of removing a missing child entry from the NCIC 
     database when the child reaches age 18, to increase the 
     chances for child recovery and investigative information 
     available for other cases.
       Improves the chances for recovery of missing children. 
     Requires entry of child information into the NCIC database 
     within 2 hours of receipt. Immediate entry is critical as 
     evidenced by the fact that in 74 percent of abduction 
     homicide cases the child is dead within 3 hours and 91 
     percent are killed within 24 hours.
       Strengthens sex offender registration requirements. Each of 
     the following suggested amendments are currently part of the 
     statutory sex offender registration policies and procedures 
     in at least one or more states.
       Requires States to register sex offenders before they are 
     released from prison. Permitting sex offenders to self-
     register can lead to under-registration and loss of 
     potentially vital investigative information for law 
     enforcement.
       Requires the registering agency to obtain current 
     fingerprints and a photograph (annually), as well as a DNA 
     sample, from an offender at the time of registration. Up-to-
     date identifying information is a vital investigative tool 
     and may help law enforcement connect seemingly unrelated 
     cases in different jurisdictions.
       Requires registrants to obtain either a driver's license or 
     an identification card from the department of motor vehicles. 
     This provides another mechanism through which law enforcement 
     can track the location of potential re-offenders.
       Requires that registration changes occur within 48 hours of 
     the changes taking effect. The delay of registering changes 
     creates a ``loophole'' through which sex offenders can re-
     offend and remain undetected.
       Requires all registered sex offenders to verify their 
     registry information every 90 days. Currently, this 
     requirement is imposed for sexually violent predators only. 
     Obtaining up-to-date registry information from all sex 
     offenders is a vital investigative tool for law enforcement 
     and obtaining it every 90 days provides earlier warning to 
     law enforcement of non-compliant offenders who may have 
     traveled into other jurisdictions, placing new communities at 
     risk.
       Requires States to inform another state when a known 
     registered person is moving into its jurisdiction. Placing 
     this burden

[[Page 12158]]

     solely on the sex offender leads to under-registration and 
     places communities at risk.
       In order to give sex offenders a strong incentive to comply 
     with registry requirements, the bill mandates a felony 
     designation for the crime of non-compliance. Non-compliance 
     must be viewed as an ongoing offense.
                                 ______
                                 
      By Mr. STEVENS (for himself, Mr. Inouye, and Ms. Cantwell):
  S. 1222. A bill to amend the Internal Revenue Code of 1986 to 
reinstate the Oil Spill Liability Trust Fund tax and to maintain a 
balance of $3 billion in the Oil Spill Liability Trust Fund; to the 
Committee on Finance.
  Mr. STEVENS. Mr. President, I introduce legislation today to maintain 
the solvency of the Oil Spill Liability Trust Fund established pursuant 
to the Oil Pollution Act of 1990. Shortly after midnight on March 24, 
1989 the Exxon Valdez went aground on Bligh reef and caused an oil 
spill in Prince William Sound that is to this day still being 
monitored, studied, and restored. I wrote the Oil Pollution Act of 1990 
in the aftermath of this disaster to provide the needed regulatory 
safeguards to reduce the potential for a similar spill to happen again 
and mitigate the environmental impacts in such an instance. The Oil 
Spill Liability Trust Fund is the cornerstone of the Oil Pollution Act 
ensuring funds for expeditious oil removal and providing for 
uncompensated damages to the environment. It is the ``polluter pays'' 
policy under the Act that requires the responsible party to pay back 
into the Fund all costs and damages related to a spill.
  Unfortunately, the Oil Spill Liability Trust Fund is rapidly running 
out of money. At a recent Commerce Committee hearing the Commandant of 
the Coast Guard testified that the Oil Spill Liability Trust Fund would 
likely be depleted by 2009. And in its report on the ``Implementation 
of the Oil Pollution Act of 1990'', released May 12, 2005, the Coast 
Guard announced at the end of fiscal year 2004 there was $842 million 
remaining in the Fund. This is compared to previous years when the un-
obligated balance was well over $1 billion, as was required under the 
Act through a 5 cents per barrel of oil tax collected from the oil 
industry on petroleum produced in or imported to the United States. The 
tax was suspended on July 1, 1993 when the un-obligated balance in the 
Fund exceeded $1 billion. Thereafter, the tax was reinstated on July 1, 
1994 when the balance declined below $1 billion. However, the tax 
expired on December 31, 1994 pursuant to the sunset provision under the 
Act.
  Since this time, the Oil Spill Liability Trust Fund has been unable 
to maintain a funding level above $1 billion from its various revenue 
sources prescribed under the Act, which consist of transfers from other 
existing pollution funds, interest on the Fund principal from U.S. 
Treasury investments, cost recoveries from responsible parties, and 
penalties. The only viable option to maintain the Fund's solvency is 
the reinstatement of the 5 cents per barrel of oil tax. The bill I 
introduce today will require the 5 cents tax go into effect after the 
last day of the first calendar quarter ending more than 30 days after 
the date of enactment. In addition, the bill provides that the Oil 
Spill Liabillty Trust Fund be funded at $3 billion, and if the fund 
drops below $2 billion the 5 cents per barrel tax will automatically be 
reinstated until the fund exceeds $3 billion.
                                 ______
                                 
      By Mr. DODD:
  S. 1223. A bill to amend the Public Health Service Act to improve the 
quality and efficiency of health care delivery through improvements in 
health care information technology, and for other purposes; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. DODD. Mr. President, today I am pleased to announce the 
reintroduction of the Information Technology for Health Care Quality 
Act. By encouraging health care providers to invest in information 
technology (IT), this legislation has the potential to bring 
skyrocketing health care costs under control and improve the overall 
quality of care in our nation.
  We are facing a health care crisis in our country. According to the 
Census Bureau, 45 million Americans were without health insurance in 
2003--an increase of 1.4 million over 2002. In many respects, we have 
the greatest health system in the world, but far too many Americans are 
unable to take advantage of this system.
  The number of uninsured continues to rise because the cost of health 
care continues to soar. Year after year, health care costs increase by 
double-digit percentages. The cost of employer-sponsored coverage 
increased by 11 percent last year, after a 14-percent increase in 2003. 
Employers are dropping health care coverage because they can no longer 
afford to foot the bill.
  One of the ways to provide health care coverage to every American is 
to reign in health care costs. And expanding the use of IT in health 
care is the best tool we have to control costs. Studies have shown that 
as much as one-third of health care spending is for redundant or 
inappropriate care. Estimates suggest that up to 14 percent of 
laboratory tests and 11 percent of medication usage are unnecessary. 
Finally, and perhaps most disturbingly, we know that it takes, on 
average, 17 years for evidence to be incorporated into clinical 
practice. Along these same lines, a recent study showed that patients 
receive the best evidence-based treatment only about half the time.
  Significant cost-savings will undoubtedly be realized simply by 
moving away from a paper-based system, where patient charts and test 
results are easily lost or misplaced, to an electronic system where 
data is easily stored, transferred from location to location, and 
retrieved at any time. With health IT, physicians will have their 
patients' medical information, at their fingertips. A physician will no 
longer have to take another set of X-Rays because the first set was 
misplaced, or order a test that the patient had six months ago in 
another hospital because she is unaware that the test ever took place. 
The potential for cost-savings from simply eliminating redundancies and 
unnecessary tests, and reducing administrative and transaction costs, 
is substantial.
  Of course, when we consider the improved quality of care and patient 
safety that will result from wider adoption of health IT, the impact on 
cost is even greater. For example, IT can provide decision support to 
ensure that physicians are aware of the most up-to-date, evidence-based 
best practices regarding a specific disease or condition, which will 
reduce expensive hospitalizations. Given all of these benefits, 
estimates suggest that Electrontc Health Records (EHRs) alone could 
save more than $100 billion each year. The full benefits of IT could be 
multiple hundreds of billions annually. Such a significant reduction in 
health care costs would allow us to provide coverage to millions of 
uninsured Americans.
  The benefits of IT go beyond economics. I am sure that all of my 
colleagues are familiar with the Institute of Medicine (IOM) estimate 
that up to 98,000 Americans die each year as a result of medical 
errors. A RAND Corporation study from last year showed that, on 
average, patients receive the recommended care for certain widespread 
chronic conditions only half of the time. That is an astonishing 
figure. To put it in a slightly different way, for many of the health 
conditions with which physicians should be most familiar, half of all 
patients are essentially being treated incorrectly.
  Most experts in the field of patient safety and health care quality, 
incuding the IOM, agree that improving IT is one of the crucial steps 
towards safer and better health care. By providing physicians with 
access to patients' complete medical history, as well as electronic 
cues to help them make the correct treatment decisions, IT has the 
potential to significantly impact the care that Americans receive. It 
is impossible to put a value on the potential savings in human lives 
that would undoubtedly result from a nationwide investment in health 
care information technology.
  It might seem counterintuitive that we can realize tremendous cost 
savings while, at the same time, improving

[[Page 12159]]

care for patients. But in fact, improving patient care is essential to 
reducing costs. IT is the key to unlocking the door--it has the 
potential to lead to improvements in care and efficiency that will save 
patients' lives, reduce costs, and reduce the number of uninsured.
  Unfortunately, despite the impact that IT can have on cost, 
efficiency, patient safety, and health care quality, most health care 
providers have not yet begun to invest in new technologies. The use of 
IT in most hospitals and doctors' offices lags far behind almost every 
other sphere of society. The vast majority of written work, such as 
patient charts and prescriptions, is still done using pen and paper. 
This leads to mistakes, higher costs, reduced quality of care, and in 
the most tragic cases, death.
  There is no question in my mind that the federal government has a 
significant role to play in expanding investment in health IT. The 
legislation that I am introducing today defines that role. First, this 
bill would establish federal leadership in defining a Nationai Health 
Information Infrastructure (NHII) and adopting health IT standards. 
While I am pleased that the administration has already appointed a 
National Coordinator for Health Information Technology, I believe that 
the authority given to the Coordinator and the resources at his 
disposal are not equal to the enormity of his task. That is why my 
legislation creates an office in the White House, the Office of Health 
Information Technology, to oversee all of the Federal Government's 
activities in the area of health IT, and to create and implement a 
national strategy to expand the adoption of IT in health care.
  This office would also be responsible for leading a collaborative 
effort between the public and private sectors to develop technical 
standards for health IT. These standards will ensure that health care 
information can be shared between providers, so that a family moving 
from Connecticut to California will not have to leave their medical 
history behind. At the same time, this bill would ensure that the 
adopted standards protect the privacy of patient records. While the 
creation of portable electronic health records is an important goal, 
privacy and confidentiality must not be sacrificed.
  This legislation would also provide financial assistance to 
individual health care providers to stimulate investment in IT, and to 
communities to help them set up interoperable IT infrastructures at the 
local level, often referred to as Local Health Information 
Infrastructures--LHIIs. IT requires a huge capital investment. Many 
providers, especially small doctors offices, and safety-net and rural 
hospitals and health centers, simply cannot afford to make the type of 
investment that is needed.
  Finally, this legislation would provide for the development of a 
standard set of health care quality measures. The creation of these 
measures is critical to better understanding how our health care system 
is performing, and where we need to focus our efforts to improve the 
quality of care. IT has the potential to drastically improve our 
ability to capture these quality measures. All recipients of Federal 
funding under this bill would be required to regularly report on these 
measures, as well as the impact that IT is having on health care 
quality, efficency, and cost savings.
  The establishment of standard quality measures is also the first step 
in moving our nation towards a system where payment for health care is 
more appropriately aligned--a system in which health care providers are 
paid not simply for the volume of patients that they treat, but for the 
quality of care that they deliver. To this end, my legislation would 
require the Secretary of Health and Human Services to report to 
Congress on possible changes to Federal reimbursement and payment 
structures that would encourage the adoption of IT to improve health 
care quality and patient safety.
  I know that many of my colleagues, including Senator Enzi, Senator 
Kennedy, Senator Clinton, Senator Frist, and Senator Gregg, have an 
interest in this issue. I look forward to working with all of them to 
move legislation this year. It is time for our country to make a 
concerted effort to bring the health care sector into the 21st century. 
We must invest in health IT systems, and we must begin to do so 
immediately. The number uninsured, the skyrocketing cost of care, and 
the number of medical errors should all serve as a wake-up call. We 
have a tool at our disposal to address all of these problems, and there 
is no more time to waste. I urge my colleagues to support this 
legislation.
  I ask unanimous consent that the text of this bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1223

       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 ``Information Technology for 
     Health Care Quality Act''.

     SEC. 2. AMENDMENT TO THE PUBLIC HEALTH SERVICE ACT.

       The Public Health Service Act (42 U.S.C. 201 et seq.) is 
     amended by adding at the end thereof the following:

            ``TITLE XXIX--HEALTH CARE INFORMATION TECHNOLOGY

     ``SEC. 2901. DEFINITIONS.

       ``In this title:
       ``(1) Coverage area.--The term `coverage area' means the 
     boundaries of a local health information infrastructure.
       ``(2) Director.--The term `Director' means the Director of 
     the Office of Health Information Technology.
       ``(3) Health care provider.--The term `health care 
     provider' means a hospital, skilled nursing facility, home 
     health entity, health care clinic, community health center, 
     group practice (as defined in section 1877(h)(4) of the 
     Social Security Act, including practices with only 1 
     physician), and any other facility or clinician determined 
     appropriate by the Director.
       ``(4) Health information technology.--The term `health 
     information technology' means a computerized system that--
       ``(A) is consistent with the standards developed pursuant 
     to section 2903;
       ``(B) permits the secure electronic transmission of 
     information to other health care providers and public health 
     entities; and
       ``(C) includes--
       ``(i) an electronic health record (EHR) that provides 
     access in real-time to the patient's complete medical record;
       ``(ii) a personal health record (PHR) through which an 
     individual (and anyone authorized by such individual) can 
     maintain and manage their health information;
       ``(iii) computerized provider order entry (CPOE) technology 
     that permits the electronic ordering of diagnostic and 
     treatment services, including prescription drugs;
       ``(iv) decision support to assist physicians in making 
     clinical decisions by providing electronic alerts and 
     reminders to improve compliance with best practices, promote 
     regular screenings and other preventive practices, and 
     facilitate diagnoses and treatments;
       ``(v) error notification procedures so that a warning is 
     generated if an order is entered that is likely to lead to a 
     significant adverse outcome for the patient; and
       ``(vi) tools to allow for the collection, analysis, and 
     reporting of data on adverse events, near misses, and the 
     quality of care provided to the patient.
       ``(5) Local health information infrastructures.--The term 
     `local health information infrastructure' means an 
     independent organization of health care entities established 
     for the purpose of linking health information systems to 
     electronically share information. A local health information 
     infrastructure may not be a single business entity.
       ``(6) Office.--The term `Office' means the Office of Health 
     Information Technology established under section 2902.

     ``SEC. 2902. OFFICE OF HEALTH INFORMATION TECHNOLOGY.

       ``(a) Establishment.--There is established within the 
     executive office of the President an Office of Health 
     Information Technology. The Office shall be headed by a 
     Director to be appointed by the President. The Director shall 
     report directly to the President.
       ``(b) Purpose.--It shall be the purpose of the Office to--
       ``(1) improve the quality and increase the efficiency of 
     health care delivery through the use of health information 
     technology;
       ``(2) provide national leadership relating to, and 
     encourage the adoption of, health information technology;
       ``(3) direct all health information technology activities 
     within the Federal Government; and
       ``(4) facilitate the interaction between the Federal 
     Government and the private sector relating to health 
     information technology development and use.
       ``(c) Duties and Responsibilities.--The Office shall be 
     responsible for the following:

[[Page 12160]]

       ``(1) National strategy.--The Office shall develop a 
     national strategy for improving the quality and enhancing the 
     efficiency of health care through the improved use of health 
     information technology and the creation of a National Health 
     Information Infrastructure.
       ``(2) Federal leadership.--The Office shall--
       ``(A) serve as the principle advisor to the President 
     concerning health information technology;
       ``(B) direct all health information technology activity 
     within the Federal Government, including approving or 
     disapproving agency policies submitted under paragraph (3);
       ``(C) work with public and private health information 
     technology stakeholders to implement the national strategy 
     described in paragraph (1); and
       ``(D) ensure that health information technology is utilized 
     as fully as practicable in carrying out health surveillance 
     efforts.
       ``(3) Agency policies.--
       ``(A) In general.--The Office shall, in accordance with 
     this paragraph, approve or disapprove the policies of Federal 
     departments or agencies with respect to any policy proposed 
     to be implemented by such agency or department that would 
     significantly affect that agency or department's use of 
     health information technology.
       ``(B) Submission of proposal.--The head of any Federal 
     Government agency or department that desires to implement any 
     policy with respect to such agency or department that would 
     significantly affect that agency or department's use of 
     health information technology shall submit an implementation 
     proposal to the Office at least 60 days prior to the proposed 
     date of the implementation of such policy.
       ``(C) Approval or disapproval.--Not later than 60 days 
     after the date on which a proposal is received under 
     subparagraph (B), the Office shall determine whether to 
     approve the implementation of such proposal. In making such 
     determination, the Office shall consider whether the proposal 
     is consistent with the national strategy described in 
     paragraph (1). If the Office fails to make a determination 
     within such 60-day period, such proposal shall be deemed to 
     be approved.
       ``(D) Failure to approve.--Except as otherwise provided for 
     by law, a proposal submitted under subparagraph (B) may not 
     be implemented unless such proposal is approved or deemed to 
     be approved under subparagraph (C).
       ``(4) Coordination.--The Office shall--
       ``(A) encourage the development and adoption of clinical, 
     messaging, and decision support health information data 
     standards, pursuant to the requirements of section 2903;
       ``(B) ensure the maintenance and implementation of the data 
     standards described in subparagraph (A);
       ``(C) oversee and coordinate the health information 
     technology efforts of the Federal Government;
       ``(D) ensure the compliance of the Federal Government with 
     Federally adopted health information technology data 
     standards;
       ``(E) ensure that the Federal Government consults and 
     collaborates on decision making with respect to health 
     information technology with the private sector and other 
     interested parties; and
       ``(F) in consultation with private sector, adopt 
     certification and testing criteria to determine if electronic 
     health information systems interoperate.
       ``(5) Communication.--The Office shall--
       ``(A) act as the point of contact for the private sector 
     with respect to the use of health information technology; and
       ``(B) work with the private sector to collect and 
     disseminate best health information technology practices.
       ``(6) Evaluation and dissemination.--The Office shall 
     coordinate with the Agency for Health Research and Quality 
     and other Federal agencies to--
       ``(A) evaluate and disseminate information relating to 
     evidence of the costs and benefits of health information 
     technology and to whom those costs and benefits accrue;
       ``(B) evaluate and disseminate information on the impact of 
     health information technology on the quality and efficiency 
     of patient care; and
       ``(C) review Federal payment structures and differentials 
     for health care providers that utilize health information 
     technology systems.
       ``(7) Technical assistance.--The Office shall utilize 
     existing private sector quality improvement organizations 
     to--
       ``(A) promote the adoption of health information technology 
     among healthcare providers; and
       ``(B) provide technical assistance concerning the 
     implementation of health information technology to healthcare 
     providers.
       ``(8) Federal reimbursement.--
       ``(A) In general.--Not later than 6 months after the date 
     of enactment of this title, the Office shall make 
     recommendations to the President and the Secretary of Health 
     and Human Service on changes to Federal reimbursement and 
     payment structures that would encourage the adoption of 
     information technology (IT) to improve health care quality 
     and safety.
       ``(B) Plan.--Not later than 90 days after receiving 
     recommendations under subparagraph (A), the Secretary shall 
     provide to the relevant Committees of Congress a report that 
     provides, with respect to each recommendation, a plan for the 
     implementation, or an explanation as to why implementation is 
     inadvisable, of such recommendations. The Office shall 
     continue to monitor federally funded and supported 
     information technology and quality initiatives (including the 
     initiatives authorized in this title), and periodically 
     update recommendations to the President and the Secretary.
       ``(d) Resources.--The President shall make available to the 
     Office, the resources, both financial and otherwise, 
     necessary to enable the Director to carry out the purposes 
     of, and perform the duties and responsibilities of the Office 
     under, this section.
       ``(e) Detail of Federal Employees.--Upon the request of the 
     Director, the head of any Federal agency is authorized to 
     detail, without reimbursement from the Office, any of the 
     personnel of such agency to the Office to assist it in 
     carrying out its duties under this section. Any such detail 
     shall not interrupt or otherwise affect the civil service 
     status or privileges of the Federal employee.

     ``SEC. 2903. PROMOTING THE INTEROPERABILITY OF HEALTH CARE 
                   INFORMATION TECHNOLOGY SYSTEMS.

       ``(a) Development, and Federal Government Adoption, of 
     Standards.--
       ``(1) Adoption.--
       ``(A) In general.--Not later than 2 years after the date of 
     the enactment of this title, the Director, in collaboration 
     with the Consolidated Health Informatics Initiative (or a 
     successor organization to such Initiative), shall provide for 
     the adoption by the Federal Government of national data and 
     communication health information technology standards that 
     promote the efficient exchange of data between varieties of 
     provider health information technology systems. In carrying 
     out the preceding sentence, the Director may adopt existing 
     standards. Except as otherwise provided for in this title, 
     standards adopted under this section shall be voluntary for 
     private sector entities.
       ``(B) Grants or contracts.--The Director may utilize grants 
     or contracts to provide for the private sector development of 
     standards for adoption by the Federal Government under 
     subparagraph (A).
       ``(C) Definition.--In this paragraph, the term `provide 
     for' means that the Director shall promulgate, and each 
     Federal agency or department shall adopt, regulations to 
     ensure that each such agency or department complies with the 
     requirements of subsection (b).
       ``(2) Requirements.--The standards developed and adopted 
     under paragraph (1) shall be designed to--
       ``(A) enable health information technology to be used for 
     the collection and use of clinically specific data;
       ``(B) promote the interoperability of health care 
     information across health care settings;
       ``(C) facilitate clinical decision support through the use 
     of health information technology; and
       ``(D) ensure the privacy and confidentiality of medical 
     records.
       ``(3) Public private partnership.--Consistent with 
     activities being carried out on the date of enactment of this 
     title, including the Consolidated Health Informatics 
     Initiative (or a successor organization to such Initiative), 
     health information technology standards shall be adopted by 
     the Director under paragraph (1) at the conclusion of a 
     collaborative process that includes consultation between the 
     Federal Government and private sector health care and 
     information technology stakeholders.
       ``(4) Privacy and security.--The regulations promulgated by 
     the Secretary under part C of title XI of the Social Security 
     Act (42 U.S.C. 1320d et seq.) and sections 261, 262, 263, and 
     264 of the Health Insurance Portability and Accountability 
     Act of 1996 (42 U.S.C. 1320d-2 note) with respect to the 
     privacy, confidentiality, and security of health information 
     shall apply to the implementation of programs and activities 
     under this title.
       ``(5) Pilot tests.--To the extent practical, the Director 
     shall pilot test the health information technology data 
     standards developed under paragraph (1) prior to their 
     implementation under this section.
       ``(6) Dissemination.--
       ``(A) In general.--The Director shall ensure that the 
     standards adopted under paragraph (1) are widely disseminated 
     to interested stakeholders.
       ``(B) Licensing.--To facilitate the dissemination and 
     implementation of the standards developed and adopted under 
     paragraph (1), the Director may license such standards, or 
     utilize other means, to ensure the widespread use of such 
     standards.
       ``(b) Implementation of Standards.--
       ``(1) Purchase of systems by the secretary.--Effective 
     beginning on the date that is 1 year after the adoption of 
     the technology standards pursuant to subsection (a), the 
     Secretary shall not purchase any health care information 
     technology system unless such system is in compliance with 
     the standards adopted under subsection (a), nor shall the 
     Director approve any proposal pursuant to section 2902(c)(3) 
     unless such proposal utilizes systems that are in compliance 
     with the standards adopted under subsection (a).

[[Page 12161]]

       ``(2) Recipients of federal funds.--Effective on the date 
     described in paragraph (1), no appropriated funds may be used 
     to purchase a health care information technology system 
     unless such system is in compliance with applicable standards 
     adopted under subsection (a).
       ``(c) Modification of Standards.--The Director shall 
     provide for ongoing oversight of the health information 
     technology standards developed under subsection (a) to--
       ``(1) identify gaps or other shortcomings in such 
     standards; and
       ``(2) modify such standards when determined appropriate or 
     develop additional standards, in collaboration with standard 
     setting organizations.

     ``SEC. 2904. LOAN GUARANTEES FOR THE ADOPTION OF HEALTH 
                   INFORMATION TECHNOLOGY.

       ``(a) In General.--The Director shall guarantee payment of 
     the principal of and the interest on loans made to eligible 
     entities to enable such entities--
       ``(1) to implement local health information infrastructures 
     to facilitate the development of interoperability across 
     health care settings to improve quality and efficiency; or
       ``(2) to facilitate the purchase and adoption of health 
     information technology to improve quality and efficiency.
       ``(b) Eligibility.--To be eligible to receive a loan 
     guarantee under subsection (a) an entity shall--
       ``(1) with respect to an entity desiring a loan guarantee--
       ``(A) under subsection (a)(1), be a coalition of entities 
     that represent an independent consortium of health care 
     stakeholders within a community that--
       ``(i) includes--

       ``(I) physicians (as defined in section 1881(r)(1) of the 
     Social Security Act);
       ``(II) hospitals; and
       ``(III) group health plans or other health insurance 
     issuers (as such terms are defined in section 2791); and

       ``(ii) may include any other health care providers; or
       ``(B) under subsection (a)(2) be a health care provider;
       ``(2) to the extent practicable, adopt the national health 
     information technology standards adopted under section 2903;
       ``(3) provide assurances that the entity shall submit to 
     the Director regular reports on the activities carried out 
     under the loan guarantee, including--
       ``(A) a description of the financial costs and benefits of 
     the project involved and of the entities to which such costs 
     and benefits accrue;
       ``(B) a description of the impact of the project on health 
     care quality and safety; and
       ``(C) a description of any reduction in duplicative or 
     unnecessary care as a result of the project involved;
       ``(4) provide assurances that not later than 30 days after 
     the development of the standard quality measures pursuant to 
     section 2906, the entity shall submit to the Director regular 
     reports on such measures, including provider level data and 
     analysis of the impact of information technology on such 
     measures;
       ``(5) prepare and submit to the Director an application at 
     such time, in such manner, and containing such information as 
     the Director may require.
       ``(c) Use of Funds.--Amounts received under a loan 
     guarantee under subsection (a) shall be used--
       ``(1) with respect to a loan guarantee described in 
     subsection (a)(1)--
       ``(A) to develop a plan for the implementation of a local 
     health information infrastructure under this section;
       ``(B) to establish systems for the sharing of data in 
     accordance with the national health information technology 
     standards developed under section 2903;
       ``(C) to purchase directly related integrated hardware and 
     software to establish an interoperable health information 
     technology system that is capable of linking to a local 
     health care information infrastructure; and
       ``(D) to train staff, maintain health information 
     technology systems, and maintain adequate security and 
     privacy protocols;
       ``(2) with respect to a loan guarantee described in 
     subsection (a)(2)--
       ``(A) to develop a plan for the purchase and installation 
     of health information technology;
       ``(B) to purchase directly related integrated hardware and 
     software to establish an interoperable health information 
     technology system that is capable of linking to a national or 
     local health care information infrastructure; and
       ``(C) to train staff, maintain health information 
     technology systems, and maintain adequate security and 
     privacy protocols; and
       ``(3) to carry out any other activities determined 
     appropriate by the Director.
       ``(d) Special Considerations for Certain Entities.--In 
     awarding loan guarantees under this section, the Director 
     shall give special consideration to eligible entities that--
       ``(1) provide service to low-income and underserved 
     populations; and
       ``(2) agree to electronically submit the information 
     described in paragraphs (3) and (4) of subsection (b) on a 
     daily basis.
       ``(e) Special Considerations for Local Health Information 
     Infrastructures.--In awarding loan guarantees under this 
     section to local health information infrastructures, the 
     Director shall give special consideration to eligible 
     entities that--
       ``(1) include at least 50 percent of the patients living in 
     the designated coverage area;
       ``(2) incorporate public health surveillance and reporting 
     into the overall architecture of the proposed infrastructure; 
     and
       ``(3) link local health information infrastructures.
       ``(f) Areas of Specific Interest.--In awarding loan 
     guarantees under this section, the Director shall include--
       ``(1) entities with a coverage area that includes an entire 
     State; and
       ``(2) entities with a multi-state coverage area.
       ``(g) Administrative Provisions.--
       ``(1) Aggregate amount.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the aggregate amount of principal of loans guaranteed under 
     subsection (a) with respect to an eligible entity may not 
     exceed $5,000,000. In any 12-month period the amount 
     disbursed to an eligible entity under this section (by a 
     lender under a guaranteed loan) may not exceed $5,000,000.
       ``(B) Exception.--The cumulative total of the principal of 
     the loans outstanding at any time to which guarantees have 
     been issued under subsection (a) may not exceed such 
     limitations as may be specified in appropriation Acts.
       ``(2) Protection of federal government.--
       ``(A) In general.--The Director may not approve an 
     application for a loan guarantee under this section unless 
     the Director determines that--
       ``(i) the terms, conditions, security (if any), and 
     schedule and amount of repayments with respect to the loan 
     are sufficient to protect the financial interests of the 
     United States and are otherwise reasonable, including a 
     determination that the rate of interest does not exceed such 
     percent per annum on the principal obligation outstanding as 
     the Director determines to be reasonable, taking into account 
     the range of interest rates prevailing in the private market 
     for loans with similar maturities, terms, conditions, and 
     security and the risks assumed by the United States; and
       ``(ii) the loan would not be available on reasonable terms 
     and conditions without the enactment of this section.
       ``(B) Recovery.--
       ``(i) In general.--The United States shall be entitled to 
     recover from the applicant for a loan guarantee under this 
     section the amount of any payment made pursuant to such loan 
     guarantee, unless the Director for good cause waives such 
     right of recovery, and, upon making any such payment, the 
     United States shall be subrogated to all of the rights of the 
     recipient of the payments with respect to which the loan was 
     made.
       ``(ii) Modification of terms.--Any terms and conditions 
     applicable to a loan guarantee under this section may be 
     modified by the Director to the extent the Director 
     determines it to be consistent with the financial interest of 
     the United States.
       ``(3) Defaults.--The Director may take such action as the 
     Director deems appropriate to protect the interest of the 
     United States in the event of a default on a loan guaranteed 
     under this section, including taking possession of, holding, 
     and using real property pledged as security for such a loan 
     guarantee.
       ``(h) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out this section, $250,000,000 for each of fiscal 
     years 2006 through 2011.
       ``(2) Availability.--Amounts appropriated under 
     subparagraph (A) shall remain available for obligation until 
     expended.

     ``SEC. 2905. GRANTS FOR THE PURCHASE OF HEALTH INFORMATION 
                   TECHNOLOGY.

       ``(a) In General.--The Director may award competitive 
     grants to eligible entities--
       ``(1) to implement local health information infrastructures 
     to facilitate the development of interoperability across 
     health care settings; or
       ``(2) to facilitate the purchase and adoption of health 
     information technology.
       ``(b) Eligibility.--To be eligible to receive a grant under 
     section (a) an entity shall--
       ``(1) demonstrate financial need to the Director;
       ``(2) with respect to an entity desiring a grant--
       ``(A) under subsection (a)(1), represent an independent 
     consortium of health care stakeholders within a community 
     that--
       ``(i) includes--

       ``(I) physicians (as defined in section 1881(r)(1) of the 
     Social Security Act);
       ``(II) hospitals; and
       ``(III) group health plans or other health insurance 
     issuers (as such terms are defined in section 2791); and

       ``(ii) may include any other health care providers; or
       ``(B) under subsection (a)(2) be a health care provider 
     that provides health care services to low-income and 
     underserved populations;
       ``(3) adopt the national health information technology 
     standards developed under section 2903;

[[Page 12162]]

       ``(4) provide assurances that the entity shall submit to 
     the Director regular reports on the activities carried out 
     under the loan guarantee, including--
       ``(A) a description of the financial costs and benefits of 
     the project involved and of the entities to which such costs 
     and benefits accrue;
       ``(B) a description of the impact of the project on health 
     care quality and safety; and
       ``(C) a description of any reduction in duplicative or 
     unnecessary care as a result of the project involved;
       ``(5) provide assurances that not later than 30 days after 
     the development of the standard quality measures pursuant to 
     section 2906, the entity shall submit to the Director regular 
     reports on such measures, including provider level data and 
     analysis of the impact of information technology on such 
     measures;
       ``(6) prepare and submit to the Director an application at 
     such time, in such manner, and containing such information as 
     the Director may require; and
       ``(7) agree to provide matching funds in accordance with 
     subsection (g).
       ``(c) Use of Funds.--Amounts received under a grant under 
     subsection (a) shall be used to--
       ``(1) with respect to a grant described in subsection 
     (a)(1)--
       ``(A) to develop a plan for the implementation of a local 
     health information infrastructure under this section;
       ``(B) to establish systems for the sharing of data in 
     accordance with the national health information technology 
     standards developed under section 2903;
       ``(C) to implement, enhance, or upgrade a comprehensive, 
     electronic health information technology system; and
       ``(D) to maintain adequate security and privacy protocols;
       ``(2) with respect to a grant described in subsection 
     (a)(2)--
       ``(A) to develop a plan for the purchase and installation 
     of health information technology;
       ``(B) to purchase directly related integrated hardware and 
     software to establish an interoperable health information 
     technology system that is capable of linking to a national or 
     local health care information infrastructure; and
       ``(C) to train staff, maintain health information 
     technology systems, and maintain adequate security and 
     privacy protocols;
       ``(3) maintain adequate security and privacy protocols; and
       ``(4) to carry out any other activities determined 
     appropriate by the Director.
       ``(d) Special Considerations for Certain Entities.--In 
     awarding grants under this section, the Director shall give 
     special consideration to eligible entities that--
       ``(1) provide service to low-income and underserved 
     populations; and
       ``(2) agree to electronically submit the information 
     described in paragraphs (4) and (5) of subsection (b).
       ``(e) Special Considerations for Local Health Information 
     Infrastructures.--In awarding grants under this section to 
     local health information infrastructures, the Director shall 
     give special consideration to eligible entities that--
       ``(1) include at least 50 percent of the patients living in 
     the designated coverage area;
       ``(2) incorporate public health surveillance and reporting 
     into the overall architecture of the proposed infrastructure; 
     and
       ``(3) link local health information infrastructures;
       ``(f) Areas of Specific Interest.--In awarding grants under 
     this section, the Director shall include--
       ``(1) entities with a coverage area that includes an entire 
     State; and
       ``(2) entities with a multi-state coverage area.
       ``(g) Matching Requirement.--
       ``(1) In general.--The Director may not make a grant under 
     this section to an entity unless the entity agrees that, with 
     respect to the costs to be incurred by the entity in carrying 
     out the infrastructure program for which the grant was 
     awarded, the entity will make available (directly or through 
     donations from public or private entities) non-Federal 
     contributions toward such costs in an amount equal to not 
     less than 20 percent of such costs ($1 for each $5 of Federal 
     funds provided under the grant).
       ``(2) Determination of amount contributed.--Non-Federal 
     contributions required under paragraph (1) may be in cash or 
     in kind, fairly evaluated, including equipment, technology, 
     or services. Amounts provided by the Federal Government, or 
     services assisted or subsidized to any significant extent by 
     the Federal Government, may not be included in determining 
     the amount of such non-Federal contributions.
       ``(h) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out this section, $250,000,000 for each of fiscal 
     years 2006 through 2011.
       ``(2) Availability.--Amounts appropriated under paragraph 
     (1) shall remain available for obligation until expended.''.

     SEC. 3. STANDARDIZED MEASURES OF QUALITY HEALTH CARE AND DATA 
                   COLLECTION.

       Title XXIX of the Public Health Service Act, as added by 
     section 2, is amended by adding at the end the following:

     ``SEC. 2906. STANDARDIZED MEASURES OF QUALITY HEALTH CARE.

       ``(a) In General.--
       ``(1) Collaboration.--The Secretary of Health and Human 
     Services, the Secretary of Defense, and the Secretary of 
     Veterans Affairs (referred to in this section as the 
     `Secretaries'), in consultation with the Quality Interagency 
     Coordination Taskforce (as established by Executive Order on 
     March 13, 1998), the Institute of Medicine, the Joint 
     Commission on Accreditation of Healthcare Organizations, the 
     National Committee for Quality Assurance, the American Health 
     Quality Association, the National Quality Forum, the Medicare 
     Payment Advisory Committee, and other individuals and 
     organizations determined appropriate by the Secretaries, 
     shall establish uniform health care quality measures to 
     assess the effectiveness, timeliness, patient-centeredness, 
     efficiency, equity, and safety of care delivered across all 
     federally supported health delivery programs.
       ``(2) Development of measures.--Not later than 18 months 
     after the date of enactment of this title, the Secretaries 
     shall develop standardized sets of quality measures for each 
     of the 20 priority areas for improvement in health care 
     quality as identified by the Institute of Medicine in their 
     report entitled `Priority Areas for National Action' in 2003, 
     or other such areas as identified by the Secretaries in order 
     to assist beneficiaries in making informed choices about 
     health plans or care delivery systems. The selection of 
     appropriate quality indicators under this subsection shall 
     include the evaluation criteria formulated by clinical 
     professionals, consumers, and data collection experts.
       ``(3) Pilot testing.--Each federally supported health 
     delivery program may conduct a pilot test of the quality 
     measures developed under paragraph (2) that shall include a 
     collection of patient-level data and a public release of 
     comparative performance reports.
       ``(b) Public Reporting Requirements.--The Secretaries, 
     working collaboratively, shall establish public reporting 
     requirements for clinicians, institutional providers, and 
     health plans in each of the federally supported health 
     delivery program described in subsection (a). Such 
     requirements shall provide that the entities described in the 
     preceding sentence shall report to the appropriate Secretary 
     on the measures developed under subsection (a).
       ``(c) Full Implementation.--The Secretaries, working 
     collaboratively, shall implement all sets of quality measures 
     and reporting systems developed under subsections (a) and (b) 
     by not later than the date that is 1 year after the date on 
     which the measures are developed under subsection (a)(2).
       ``(d) Reports.--Not later than 1 year after the date of 
     enactment of this title, and annually thereafter, the 
     Secretary shall--
       ``(1) submit to Congress a report that details the 
     collaborative efforts carried out under subsection (a), the 
     progress made on standardizing quality indicators throughout 
     the Federal Government, and the state of quality measurement 
     for priority areas that links data to the report submitted 
     under paragraph (2) for the year involved; and
       ``(2) submit to Congress a report that details areas of 
     clinical care requiring further research necessary to 
     establish effective clinical treatments that will serve as a 
     basis for additional quality indicators.
       ``(e) Comparative Quality Reports.--Beginning not later 
     than 3 years after the date of enactment of this title, in 
     order to make comparative quality information available to 
     health care consumers, including members of health disparity 
     populations, health professionals, public health officials, 
     researchers, and other appropriate individuals and entities, 
     the Secretaries shall provide for the pooling, analysis, and 
     dissemination of quality measures collected under this 
     section. Nothing in this section shall be construed as 
     modifying the privacy standards under the Health Insurance 
     Portability and Accountability Act of 1996 (Public Law 104-
     191).
       ``(f) Ongoing Evaluation of Use.--The Secretary of Health 
     and Human Services shall ensure the ongoing evaluation of the 
     use of the health care quality measures established under 
     this section.
       ``(g) Evaluation and Regulations.--
       ``(1) Evaluation.--
       ``(A) In general.--The Secretary shall, directly or 
     indirectly through a contract with another entity, conduct an 
     evaluation of the collaborative efforts of the Secretaries to 
     establish uniform health care quality measures and reporting 
     requirements for federally supported health care delivery 
     programs as required under this section.
       ``(B) Report.--Not later than 1 year after the date of 
     enactment of this title, the Secretary of Health and Human 
     Services shall submit a report to the appropriate committees 
     of Congress concerning the results of the evaluation under 
     subparagraph (A).
       ``(2) Regulations.--
       ``(A) Proposed.--Not later than 6 months after the date on 
     which the report is submitted under paragraph (1)(B), the 
     Secretary shall publish proposed regulations regarding the 
     application of the uniform health care quality measures and 
     reporting requirements

[[Page 12163]]

     described in this section to federally supported health 
     delivery programs.
       ``(B) Final regulations.--Not later than 1 year after the 
     date on which the report is submitted under paragraph (1)(B), 
     the Secretary shall publish final regulations regarding the 
     uniform health care quality measures and reporting 
     requirements described in this section.
       ``(h) Definitions.--In this section, the term `federally 
     supported health delivery program' means a program that is 
     funded by the Federal Government under which health care 
     items or services are delivered directly to patients.''.
                                 ______
                                 
      By Mrs. BOXER (for herself and Mr. Lautenberg):
  S. 1224. A bill to protect the oceans, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.
  Mrs. BOXER. Mr. President, as we commemorate World Oceans Week, we 
celebrate the wonder and beauty of the world's oceans. We celebrate the 
role our oceans play in commerce, fishing and shipping. We celebrate 
the beauty of our coral reefs and the potential lifesaving cures they 
might contain. And we celebrate our commitment to improving the health 
of our oceans, so that our children and grandchildren will have a 
chance to enjoy and cherish them.
  That is why I am pleased to introduce the National Oceans Protection 
Act of 2005--comprehensive legislation to improve the health and 
governance of our oceans. The bill is co-sponsored by Senator 
Lautenberg.
  This legislation ``was written after two major oceans commission 
reports in the past 2 years determined that our oceans are in a state 
of crisis. The congressionally-established U.S. Commission on Ocean 
Policy and the independent Pew Oceans Commission provided detailed 
descriptions of the challenges our oceans are facing as well as 
specific solutions to improve ocean health.
  From pollution to over-fishing to invasive species, there are many 
factors that have contributed to the current crisis in which we find 
ourselves. Pollution threatens all aspects of ocean health. Every 8 
months, nearly 11 million gallons of oil flow from American roads into 
our waters--the equivalent of the Exxon Valdez oil spill.
  Our oceans are also showing signs of being over-fished, which affects 
the communities that depend on fish stocks for their livelihood. Many 
fish populations, including salmon, face the threat of being depleted 
to seriously low levels. Invasive species--such as the killer algae 
found near San Diego in 2000--are another threat to ocean health. In 
the San Francisco Bay alone, more than 175 invasive species threaten to 
overwhelm native species.
  By targeting some of the most serious challenges facing our oceans, 
as outlined in the Commissions' reports, my legislation provides a 
comprehensive national approach to oceans protection and preservation.
  Let me just mention a couple of the important provisions in four key 
areas:
  First, the bill improves the governance of the oceans by giving the 
National Oceanic and Atmospheric Administration the independence it 
needs to better facilitate the management and oversight of our oceans.
  Second, the bill protects and conserves marine wildlife and habitat 
by, among other things, creating protection areas and authorizing $50 
million per year in grants to local communities to restore fisheries 
and coastal areas.
  Third, the bill strengthens fisheries and encourages sustainable 
fishing in a number of ways, including requiring that entire ecosystems 
be taken into account when considering the health of a fishery.
  And, fourth, the bill improves the quality of ocean water by 
establishing maximum amounts of pollution that a body of water can hold 
and still be healthy. In addition, financial assistance will be 
provided to local governments to reduce pollution and increase 
monitoring.
  For their contributions to this legislation and their great 
leadership on oceans issues, I would like to thank Senators Inouye, 
Gregg, Lautenberg, and Levin, as well as former Senator Hollings.
  It is my hope that this bill will provide the framework needed to 
protect and improve our oceans. The great environmentalist and ocean-
explorer Jacques Cousteau once said, ``If we were logical, the future 
would be bleak, indeed. But we are more than logical. We are human 
beings, and we have faith, and we have hope, and we can work.''
  As we celebrate World Oceans Week, it is my hope that we can work 
together to provide a bright future for the world's oceans and continue 
to protect our coastal economy.
  I encourage my colleagues to join me in this effort to implement the 
recommendations of the U.S. Commission on Ocean Policy and the Pew 
Ocean Commission.
  I ask unanimous consent that a summary of the bill and list of 
endorsements be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                   The National Oceans Protection Act


               1. IMPROVING THE GOVERNANCE OF THE OCEANS

     The Ernest ``Fritz'' Hollings National Ocean Policy and 
         Leadership Act
       Establishes an independent National Oceanic and Atmospheric 
     Administration (NOAA).
       Independence will occur after a two-year transition period.
       Creates a Council on Ocean Stewardship that will annually 
     review funding, policy recommendations, and programs for 
     ocean protection.
       The Council will function as a federal coordinating body of 
     the various agencies that deal with oceans issues, and will 
     be placed in the Executive Office of the President.
     Other Governance Provisions
       Requires that all activities on the Outer Continental 
     Shelf--such as wave energy projects, bioextraction by biotech 
     companies, and wind energy projects--receive a federal permit 
     to ensure that projects do not pose an adverse threat to the 
     health of the oceans current law only requires permits for 
     oil and gas activities.
       NOAA, working with other relevant agencies such as the EPA 
     or the Army Corps of Engineers, will develop the permitting 
     process, specifically to protect and preserve the marine 
     environment, conserve fisheries and natural resources, and 
     protect public health and safety.
       NOAA makes the final determination of whether the activity 
     poses a threat to any of these interests--and if so, a permit 
     will not be given.
       Establishes a Trust Fund in the U.S. Treasury and 
     administered by NOAA composed of Federal money generated from 
     these newly permitted activities; funds will be used for 
     ocean conservation, science and research, and assistance to 
     displaced fishermen.
       Prohibits NOAA from issuing any lease for marine 
     aquaculture until strong national standards and regulations 
     are issued to protect fish stocks from disease, parasites, 
     and invasive species and to prevent water quality impairment.


        2. PROTECTING AND CONSERVING MARINE WILDLIFE AND HABITAT

       Provides protection for ecologically-important coral areas 
     by creating ``Coral Management Areas.''
       NOAA must carry out a comprehensive ocean exploration and 
     mapping program to determine areas where coral and other 
     creatures live and the marine environments on which they 
     depend for food and habitat.
       Based on this data, NOAA may establish Coral Management 
     Areas, which would trigger protection from certain fishing 
     gear and practices, such as `rockhopper' trawling gear on 
     fishing nets that tear up essential habitat.
       Authorizes $3 million per year for research on the effects 
     of noise pollution (i.e. sonar) on marine mammals.
       Establishes a voluntary buyback program for environmentally 
     and ecologically unsafe ``gear''--such as boat engines.
       Prohibits almost all discharges of ballast water in U.S. 
     waters and requires ships to install technology to capture 
     invasive species in ballast water before discharge--and 
     creates an early detection and rapid response system to 
     provide assistance to states to protect against invasive 
     species.
       Authorizes $50 million per year in grants to local 
     communities to restore fishery and coastal habitats.
       Authorizes $500 million per year in grants to local 
     communities to purchase lands that are vulnerable to 
     development and are important to the protection and 
     preservation of habitats.


              3. STRENGTHENING FISHERIES AND FISH HABITAT

       Requires that, when determining the health of a fishery, 
     the entire ecosystem be taken into account, not just the 
     health of a particular fish species.
       Each regional fishery council must establish a science and 
     statistical committee

[[Page 12164]]

     (SSC) to help develop, collect, and evaluate statistical, 
     biological, economic, social, and other scientific 
     information--the regional councils must then set fish take 
     allowances that are consistent with the SSC determinations, 
     but even greater conservation measures can be taken.
       Authorizes $115 million over five years for NOAA and the 
     regional fishery councils to develop ecosystem-wide plans to 
     protect and sustain fisheries.
       Requires NOAA to establish standards for reducing bycatch 
     and authorizes $55 million over five years to monitor 
     compliance with those standards.
       Creates Individual Fishing Quotas (IFQ) that are equitably 
     allocated and that protect against bycatch, overfishing, and 
     economic harm to local communities.


                4. IMPROVING THE QUALITY OF OCEAN WATER

       Requires EPA to establish maximum amounts of nutrient 
     runoff pollution that a body of water can hold and still be 
     healthy, taking into account regional conditions and 
     reasonable economic considerations.
       Requires water utilities to establish water treatment 
     standards to remove nutrient pollution.
       Mandates best management practices for agriculture--
     requiring farmers, to the greatest extent practicable, to 
     take steps to curtail runoff.
       Expedites beach pollution testing and posting by 
     determining which beaches are most at risk of dangerous water 
     conditions and requiring beach closures as soon as 
     practicable but not longer than 48 hours after discovery.
       Requires public notification and testing of sewer 
     overflows.
       Authorizes $11.2 billion per year in funding for state and 
     local governments to reduce stormwater pollution and to 
     increase monitoring and testing.
       Requires a survey and continuous monitoring of contaminated 
     sediments that are threats to bodies of water, and 
     establishes standards to protect sensitive aquatic species 
     from contaminated sediments.
                                  ____


         Support for the National Oceans Protection Act of 2005


                         NATIONAL ORGANIZATIONS

       Natural Resources Defense Council; The Ocean Conservancy; 
     Oceana; Sierra Club; National Environmental Trust; Worldwide 
     Fund for Conservation; U.S. PIRG; Defenders of Wildlife; E2 
     (Environmental Entrepreneurs); Ocean Champions; Blue Frontier 
     Campaign; Pacific Coast Federation of Fishermen's 
     Associations; Marine Fish Conservation Network; The Humane 
     Society; ASPCA; Seaflow; Surfrider; Association of National 
     Estuary Programs; Ocean Defense International; Earth Island 
     Institute; Waterkeepers; America's Whale Alliance; Center for 
     International Environmental Law; Acoustic Ecology Institute; 
     Greenpeace Foundation; Earthtrust; Western Wildlife 
     Conservancy; Mangrove Action Project; The Whaleman 
     Foundation; Campaign to Safeguard America's Waters; Reef 
     Relief; WildLaw; Conservation Law Foundation; Cook Inlet 
     Keeper; Cry of the Water; Global Coral Reef Alliance; Save 
     Our Shoreline, Inc; Marine Conservation Biology Institute; 
     Public Employees for Environmental Responsibility (PEER); 
     Reef Protection International; International Forum on 
     Globalization; The Ocean Mammal Institute; Endangered Species 
     Coalition.


                        california organizations

       California League of Conservation Voters; Aquatic 
     Adventures Science Education Foundation, San Diego; The Bay 
     Institute, Novato; Baykeeper, San Francisco; Bolinas Lagoon 
     Foundation, Stinson Beach; California Greenworks, Buena Park; 
     Catalina Island Conservancy, Avalon; Community Environmental 
     Council, Santa Barbara; Crystal Cove Alliance, Corona Del 
     Mar; Endangered Habitats League, Los Angeles; The 
     Environmental Action Committee of West Marin, Point Reyes 
     Station; Environmental Center of San Luis Obispo County, San 
     Luis Obispo; Environmental Defense Center, Santa Barbara; 
     Friends of Santa Ana Zoo, Santa Ana; Friends of the Sea 
     Otter, Pacific Grove; Golden Gate Audubon Society, Berkeley; 
     Grassroots Coalition, Los Angeles; Guadalupe-Nipomo Dunes 
     Center and Guadalupe-Nipomo Dunes Collaborative; Heal the 
     Bay, Santa Monica; Huntington Beach Tree Society, Huntington 
     Beach; The Marine Mammal Center, Sausalito; Monterey Bay 
     Aquarium, Monterey Monterey Bay Sanctuary Foundation, 
     Monterey Moss Landing Marine Laboratories, Moss Landing; 
     Newport Bay Naturalists and Friends, Newport Beach; The Ocean 
     Conservancy, Santa Cruz Field Office Ocean Institute, Dana 
     Point; O'Neill Sea Odyssey, Santa Cruz; The Orange County 
     Interfaith Coalition for the Environment, Tustin; PRBO 
     Conservation Science, Stinson Beach; San Diego Audubon 
     Society, San Diego; San Diego Baykeeper San Francisco Zoo, 
     San Francisco; San Luis Bay Surfrider Foundation, San Luis 
     Obispo San Luis Obispo Coastkeeper, San Luis Obispo; Santa 
     Barbara Channelkeper, Santa Barbara; Santa Monica Bay Audubon 
     Society, Santa Monica Save Our Shores, Santa Cruz; Sea 
     Studios Foundation, Monterey; Southwest Wetlands Interpretive 
     Association, Imperial Beach; Steinhart Aquarium at the 
     California Academy of Sciences, San Francisco; Surfrider 
     Foundation, Marin County; Surfrider Foundation--Monterey 
     Chapter; Trillium Press, Brisbane; Wildcoast, Imperial Beach; 
     Wishtoyo Foundation, Oxnard; Baykeeper, San Francisco; 
     Catalina Island Conservancy, Avalon; Environmental Defense 
     Center, Santa Barbara; The Marine Mammal Center, Sausalito.


                           ELECTED OFFICIALS

       Marty Blum, Mayor, City of Santa Barbara; Harold Brown, 
     President, Marin County Board of Supervisors; Denise Moreno 
     Ducheny, California State Senator, 40th District; Donna Frye, 
     Councilniember, City of San Diego; Fred Keeley, Treasurer-Tax 
     Collector, County of Santa Cruz; Christine Kehoe, California 
     State Senator, 39th District; John Laird, California State 
     Assembly member, 27th Assembly District; Patricia McCoy, 
     Councilmember, City of Imperial Beach; Kevin McKeown, 
     Councilmember, City of Santa Monica; Aaron Peskin, President, 
     San Francisco Board of Supervisors; Wayne Rayfield, Mayor, 
     City of Dana Point; Murray Rosenbluth, Mayor, City of Port 
     Hueneme; Diana Rose, Mayor, City of Imperial Beach; Susan 
     Rose, Supervisor, Santa Barbara County; Bill Rosendahl, 
     Councilmember-Elect, City of Los Angeles; Lori Saldafina, 
     Californa State Assembly member and Assistant Majority Whip, 
     76th District; Esther Sanchez, Deputy Mayor, City of 
     Oceanside; Das Williams, Councilmember, City of Santa 
     Barbara; Mayda Winter, Councilmember, City of Imperial Beach.


                              INDIVIDUALS

       Jean-Michel Cousteau, President, Ocean Futures Society; Dr. 
     Sylvia Earle, Explorer-in Residence, the National Geographic 
     Society; Gary Griggs, Director, Institute of Marine Sciences, 
     University of California Santa Cruz; David Helvarg, Author, 
     Blue Frontier--Saving America's Living Seas; Kurt Lieber, 
     President and Founder, Ocean Defenders Alliance; Mark 
     Silberstein, Executive Director, Elkhorn Slough Foundation; 
     Dr. Susan Williams, Director, Bodega Marine Laboratory.


                          OTHER ORGANIZATIONS

       Gulf of Mexico Foundation; Turtle Island Restoration 
     Network; Potomac Riverkeeper; Coastwalk; Gulf Restoration 
     Network; Florida Oceanographic Society; Patapsco Riverkeeper, 
     Inc.; The Coastal Marine Resource Center of New York; New 
     York Whale and Dolphin Action League; San Francisco Ocean 
     Film Festival.

                          ____________________