[Congressional Record (Bound Edition), Volume 152 (2006), Part 11]
[Senate]
[Pages 15363-15383]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. INHOFE:
  S. 3697. A bill to amend title XVIII of the Social Security Act to 
establish Medicare Health Savings Accounts; to the Committee on 
Finance.
  Mr. INHOFE. Mr. President, I rise today to introduce a bill to 
establish medicare health savings accounts, HSAs. This bill will make 
HSAs available under Medicare in lieu of Medicare medical savings 
accounts, MSAs. I have long been dedicated to quality health care and 
believe that seniors should have the ability to make their own 
decisions regarding their health care, so they can receive the health 
care they need and deserve. As a senior myself, I appreciate how 
imperative it is that we seniors be provided with a wide array of 
choices.
  My desire to see my fellow Oklahomans and all Americans receive the 
best possible health care is evidenced by my involvement in various 
health-related issues. I have always been a champion of rural health 
care providers. In 1997, I was one of the few Republicans to vote 
against the Balanced Budget Act because of its lack of support for 
rural hospitals. At that time, I made a commitment to not allow our 
rural hospitals to be closed and am pleased we finally addressed that 
important issue in the Medicare Modernization Act of 2003 by providing 
great benefits for rural health care providers as well as a voluntary 
prescription drug benefit to seniors. In 2003, I also co-sponsored the 
Health Care Access and Rural Equity Act, to protect and preserve access 
of Medicare beneficiaries to health care in rural regions.
  In order to assist my State and other States suffering from large 
reduction in their Federal medical assistance percentage, FMAP, for 
Medicaid, I introduced S.1754, a bill to apply a State's FMAP from 
fiscal year 2005 to fiscal years 2006 through 2014 on September 22, 
2005. The purpose of this legislation is to prevent drastic reductions 
in FMAP while revision of the formula itself is considered.
  I am a strong advocate of medical liability reform and am an original 
cosponsor of S. 22, the Medical Care Access Protection Act, and S. 23, 
the Healthy Mothers and Healthy Babies Access to Care Act. These bills 
protect patients' access to quality and affordable health care by 
reducing the effects of excessive liability costs. I am committed to 
this vital reform that would alleviate the burden placed on physicians 
and patients by excessive medical malpractice lawsuits.
  I have also worked with officials from the Centers for Medicare and 
Medicaid Services, CMS, to expand access to life-saving implantable 
cardiac defibrillators and many other numerous regulations that would 
affect my rural State such as the 250-yard rule for critical access 
hospitals.
  As a supporter of safety and medical research, I have cosponsored 
legislation to increase the supply of pancreatic islet cells for 
research and a bill to take the abortion pill RU-486 off the market in 
the United States.
  I also introduced S. 96, the Flu Vaccine Incentive Act, to help 
prevent any future shortages in flu vaccines in both the 108th and 
109th Congresses. My bill removes suffocating price controls from 
government purchasing of the flu vaccine while encouraging more 
companies to enter the market. Also, my bill frees American companies 
to enter the flu vaccine industry by giving them an investment tax 
credit towards the construction of flu vaccine production facilities.
  As a result of my sister's death from cancer and treatment we learned 
about not accessible in the United States that might have saved her 
life, Senator Sam Brownback and I introduced S. 1956, the Access, 
Compassion, Care and Ethics for Seriously-ill Patients Act--ACCESS--on 
November 3, 2005. This bill would offer a three-tiered approval system 
for treatments showing efficacy during clinical trials, for use by the 
seriously ill patient population. Seriously ill patients, who have 
exhausted all alternatives and are seeking new treatment options, would 
be offered access to these treatments with the consent of their 
physician.
  On April 4, 2006, my resolution to designate April 8, 2006, as 
``National Cushing's Syndrome Awareness Day'' passed by unanimous 
consent. The intent of this resolution is to raise awareness of 
Cushing's syndrome, a debilitating disorder that affects an estimated 
10 to 15 million people per million. It is an endocrine or hormonal 
disorder caused by prolonged exposure of the body's tissue to high 
levels of the hormone cortisol.
  Additionally, I have consistently cosponsored yearly resolutions 
designating a day in October as ``National Mammography Day'' and a 
week: in August as ``National Health Center Week'' to raise awareness 
regarding both these issues and have supported passage and enactment of 
numerous health-care-related bills, such as the Rural Health Care 
Capital Access Act of 2006, which extends the exemption respecting 
required patient days for critical access hospitals under the Federal 
hospital mortgage insurance program.
  As the Federal Government invests in improving hospitals and health 
care initiatives I have fought hard to ensure that Oklahoma gets its 
fair share. Specifically, over the past 3 years, I have helped to 
secure $5.2 million in funding for the Oklahoma Medical Research 
Foundation, the Oklahoma State Department of Health planning initiative 
for a rural telemedicine system, the INTEGRIS Healthcare System, the 
University of Oklahoma Health Sciences Center, the Oklahoma Center for 
the Advancement of Science and

[[Page 15364]]

Technology, St. Anthony's Heart Hospital, the Hillcrest Healthcare 
System, and the Morton Health Center.
  As a long supporter of HSAs, I believe all people should have access 
to them since they provide great flexibility in the health market and 
allow individuals to have control over their own health care. Medicare 
MSAs have existed since January 1, 1997, revised in December of 2003, 
but they have not worked. No insurer whatsoever has yet offered any 
Medicare MSA under the current law.
  To fix this problem, my legislation creates a new HSA program under 
Medicare that incorporates a high-deductible health plan and an HSA 
account while dissolving the existing Medicare MSA.
  In tandem with my efforts, the Centers for Medicare and Medicaid 
Services, CMS, are launching an HSA demonstration project that would 
test allowing health insurance companies to offer Medicare 
beneficiaries products similar to HSA. This activity points to the 
administration's support of HSAs and desire to see all seniors receive 
the best possible coverage.
  As the July 13, 2006 edition of The Hill, explains, ``no legislation 
is pending that would integrate HSAs into the Medicare program . . .'' 
Thus, my legislation is necessary because real Medicare HSA reform is 
needed in order for seniors to have true flexibility and freedom of 
choice in their health care.
  Under my bill, beneficiaries who choose the HSA option will receive 
an annual amount that is equal to 95 percent of the annual Medicare 
Advantage, MA, capitation rate with respect to the individual's MA 
payment area. These funds provided through the Medicare HSA program can 
only be used by the beneficiary for the following purposes: as a 
contribution into an HSA or for payment of high deductible health plan 
premiums. However, the individual also has the opportunity to deposit 
personal funds in to the Medicare HSA.
  My bill also guarantees that seniors be notified of the amount they 
will receive 90 days before receipt to ensure they have time to 
determine the best and most appropriate HSA to accommodate needs. The 
bill also allows the Secretary of Health and Human Services to deal 
with fraud appropriately and requires providers to accept payment by 
individuals enrolled in a Medicare HSA just as they would with an 
individual enrolled in traditional Medicare.
  Please join me in supporting this important legislation to give our 
seniors more choices regarding their health care.
                                 ______
                                 
      By Mr. JEFFORDS (for himself, Mrs. Boxer, Mr. Lautenberg, Mr. 
        Kennedy, Mr. Leahy, Mr. Reed, Mr. Akaka, Mr. Dodd, Mr. 
        Sarbanes, and Mr. Menendez):
  S. 3698. A bill to mend the Clean Air Act to reduce emissions of 
carbon dioxide, and for other purposes; to the Committee on Environment 
and Public Works.
  Mr. JEFFORDS. Mr. President, I rise to introduce the Global Warming 
Pollution Reduction Act of 2006.
  One of the most important issues facing mankind is the problem of 
global warming. Global warming is real and it is already happening. Its 
effects are being felt across the globe and the longer we delay, the 
more severe these effects will be. The broad consensus within the 
scientific community is that global warming has begun, is largely the 
result of human activity, and is accelerating. Atmospheric greenhouse 
gas concentrations have risen to 378 parts per million, nearly one-
third above preindustrial levels and higher than at any time during the 
past 400,000 years. Projections indicate that stabilizing 
concentrations at 450 parts per million would still mean a temperature 
increase of 2 to 4 degrees Fahrenheit. Such warming will result in more 
extreme weather, increased flooding and drought, disruption of 
agricultural and water systems, threats to human health and loss of 
sensitive species and ecosystems.
  In order to prevent and minimize these effects, we must take global 
actions to address this issue as soon as possible. We owe that to 
ourselves and to future generations.
  The overwhelming majority of Americans support taking some form of 
action on climate change. I am today introducing the Global Warming 
Pollution Reduction Act, which I believe responds to that call. I 
believe this is the most far-reaching and forward-thinking climate 
change bill ever introduced. It sets a goal of an 80 percent reduction 
in global warming pollutants by 2050. It provides a roadmap for actions 
that we will need to take over the next few decades to combat global 
warming. I believe that if this bill were passed, it would put us on 
the path to potentially solving the global warming problem. If it were 
passed, we would reshape our economy to become more energy independent, 
cleaner, and more economically competitive. If it were passed, we would 
have a chance of avoiding some of the worst and most dangerous effects 
of global warming. If it were passed, we would be in a position to 
negotiate with other countries as part of the global solution.
  Some will say that this bill imposes requirements that ask too much 
of industry. Some will say that this bill contains requirements that we 
cannot easily meet. I say first of all that the costs of inaction 
vastly outweigh the costs of action and that we have a responsibility 
to future generations not to leave the Earth far worse off than when we 
found it--with a fundamentally altered climate system. Temperature 
changes, sea level rise, hurricanes, floods, and droughts can affect 
food production, national security, the spread of disease, and the 
survival of endangered species. These are not things to trifle with on 
the basis of industry cost estimates, which have frequently been 
overstated.
  But perhaps more importantly, we can act to reduce global warming. We 
can reduce emissions to 1990 levels between now and 2020 through a 
reduction of just 2 percent per year. Energy efficiency alone could 
play a major part in reaching reductions, and new technologies can help 
as well. Moreover, additional deployment of existing renewable energy 
sources, including biofuels, can also help substantially. If we were to 
take the actions suggested in this bill, we would find that we would 
enhance our energy independence, and we would become a world leader in 
clean energy technologies. American innovation can position us as the 
world leader in clean technologies.
  In my final year in the Senate, I have often asked myself, What 
lasting actions can I take to make the world a better place? I hope 
that by proposing real action on climate change, and passing the torch 
to a new generation of those committed to protecting the environment, 
that I can help make a difference for us all. Global warming is upon us 
now. The question is, Can we take action now, before it is too late?
  We know what we need to do, we know how much we must reduce, and we 
have the technology to do so. The question for this body is, Do we have 
the political will? Can we overcome our fears and insecurity and act 
decisively to combat global warming? That is the opportunity and 
challenge of the coming years, which my bill on global warming seeks to 
address. I urge my colleagues to join me in the quest for a better, 
safer world that is free of the enormous threat posed by dangerous 
global warming. I urge my colleagues to support this important piece of 
legislation.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3698

       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 ``Global Warming Pollution 
     Reduction Act''.

     SEC. 2. GLOBAL WARMING POLLUTION EMISSION REDUCTIONS.

       The Clean Air Act (42 U.S.C. 7401 et seq.) is amended by 
     adding at the end the following:

     ``TITLE VII--COMPREHENSIVE GLOBAL WARMING POLLUTION REDUCTIONS

``Sec. 701. Findings.
``Sec. 702. Purposes.
``Sec. 703. Definitions.
``Sec. 704. Global warming pollution emission reductions.

[[Page 15365]]

``Sec. 705. Conditions for accelerated global warming pollution 
              emission reduction.
``Sec. 706. Use of allowances for transition assistance and other 
              purposes.
``Sec. 707. Vehicle emission standards.
``Sec. 708. Emission standards for electric generation units.
``Sec. 709. Low-carbon generation requirement.
``Sec. 710. Geological disposal of global warming pollutants.
``Sec. 711. Research and development.
``Sec. 712. Energy efficiency performance standard.
``Sec. 713. Renewable portfolio standard.
``Sec. 714. Standards to account for biological sequestration of 
              carbon.
``Sec. 715. Global warming pollution reporting.
``Sec. 716. Clean energy technology deployment in developing countries.
``Sec. 717. Paramount interest waiver.
``Sec. 718. Effect on other law.

     ``SEC. 701. FINDINGS.

       ``Congress finds that--
       ``(1) global warming poses a significant threat to the 
     national security and economy of the United States, public 
     health and welfare, and the global environment;
       ``(2) due largely to an increased use of energy from fossil 
     fuels, human activities are primarily responsible for the 
     release of carbon dioxide and other heat-trapping global 
     warming pollutants that are accumulating in the atmosphere 
     and causing surface air and subsurface ocean temperatures to 
     rise;
       ``(3) as of the date of enactment of this title, 
     atmospheric concentrations of carbon dioxide are 35 percent 
     higher than those concentrations were 150 years ago, at 378 
     parts per million compared to 280 parts per million;
       ``(4) the United States emits more global warming 
     pollutants than any other country, and United States carbon 
     dioxide emissions have increased by an average of 1.3 percent 
     annually since 1990;
       ``(5)(A) during the past 100 years, global temperatures 
     have risen by 1.44 degrees Fahrenheit; and
       ``(B) from 1970 to the present, those temperatures have 
     risen by almost 1 degree Fahrenheit;
       ``(6) 8 of the past 10 years (1996 to 2005) are among the 
     10 warmest years on record;
       ``(7) average temperatures in the Arctic have increased by 
     4 to 7 degrees Fahrenheit during the past 50 years;
       ``(8) global warming has caused--
       ``(A) ocean temperatures to increase, resulting in rising 
     sea levels, extensive bleaching of coral reefs worldwide, and 
     an increase in the intensity of tropical storms;
       ``(B) the retreat of Arctic sea ice by an average of 9 
     percent per decade since 1978;
       ``(C) the widespread thawing of permafrost in polar, 
     subpolar, and mountainous regions;
       ``(D) the redistribution and loss of species; and
       ``(E) the rapid shrinking of glaciers;
       ``(9) the United States must adopt a comprehensive and 
     effective national program of mandatory limits and incentives 
     to reduce global warming pollution emissions into the 
     atmosphere;
       ``(10) at the current rate of emission, global warming 
     pollution concentrations in the atmosphere could reach more 
     than 600 parts per million in carbon dioxide equivalent, and 
     global average mean temperature could rise an additional 2.7 
     to 11 degrees Fahrenheit, by the end of the century;
       ``(11) although an understanding of all details of the 
     Earth system is not yet complete, present knowledge indicates 
     that potential future temperature increases could result in--
       ``(A) the further or complete melting of the Antarctic and 
     Greenland ice sheets;
       ``(B) the disruption of the North-Atlantic Thermohaline 
     Circulation (commonly known as the `Gulf Stream');
       ``(C) the extinction of species; and
       ``(D) large-scale disruptions of the natural systems that 
     support life;
       ``(12) there exists an array of technological options for 
     use in reducing global warming pollution emissions, and 
     significant reductions can be attained using a portfolio of 
     options that will not adversely impact the economy;
       ``(13) the ingenuity of the people of the United States 
     will allow the Nation to become a leader in solving global 
     warming; and
       ``(14) it should be a goal of the United States to achieve 
     a reduction in global warming pollution emissions in the 
     United States--
       ``(A) to ensure that the average global temperature does 
     not increase by more than 3.6 degrees Fahrenheit (2 degrees 
     Celsius); and
       ``(B) to facilitate the achievement of an average global 
     atmospheric concentration of global warming pollutants that 
     does not exceed 450 parts per million in carbon dioxide 
     equivalent.

     ``SEC. 702. PURPOSES.

       ``The purposes of this title are--
       ``(1) to achieve a reduction in global warming pollution 
     emissions compatible with ensuring that--
       ``(A) the average global temperature does not increase by 
     more than 3.6 degrees Fahrenheit (2 degrees Celsius) above 
     the preindustrial average; and
       ``(B) total average global atmospheric concentrations of 
     global warming pollutants do not exceed 450 parts per million 
     in carbon dioxide equivalent;
       ``(2) to reduce by calendar year 2050 the aggregate net 
     level of global warming pollution emissions of the United 
     States to a level that is 80 percent below the aggregate net 
     level of global warming pollution emissions for calendar year 
     1990;
       ``(3) to allow for an acceleration of reductions in global 
     warming pollution emissions to prevent--
       ``(A) average global temperature from increasing by more 
     than 3.6 degrees Fahrenheit (2 degrees Celsius) above the 
     preindustrial average; or
       ``(B) global atmospheric concentrations of global warming 
     pollutants from exceeding 450 parts per million;
       ``(4) to establish a motor vehicle global warming pollution 
     emission requirement;
       ``(5) to require electric generation units to meet a global 
     warming pollution emission standard;
       ``(6) to establish rules for the safe geological 
     sequestration of carbon dioxide;
       ``(7) to encourage energy efficiency and the use of 
     renewable energy by establishing a renewable portfolio 
     standard and an energy efficiency portfolio standard;
       ``(8) to provide for research relating to, and development 
     of, the technologies to control global warming pollution 
     emissions;
       ``(9) to position the United States as the world leader in 
     reducing the risk of the potentially devastating, wide-
     ranging impacts associated with global warming; and
       ``(10) to promote, through leadership by the United States, 
     accelerated reductions in global warming pollution from other 
     countries with significant global warming pollution 
     emissions.

     ``SEC. 703. DEFINITIONS.

       ``In this title:
       ``(1) Academy.--The term `Academy' means the National 
     Academy of Sciences.
       ``(2) Carbon dioxide equivalent.--The term `carbon dioxide 
     equivalent' means, for each global warming pollutant, the 
     quantity of the global warming pollutant that makes the same 
     contribution to global warming as 1 metric ton of carbon 
     dioxide, as determined by the Administrator, taking into 
     account the study and report described in section 705(a).
       ``(3) Facility.--The term `facility' means all buildings, 
     structures, or installations that are--
       ``(A) located on 1 or more contiguous or adjacent 
     properties under common control of the same persons; and
       ``(B) located in the United States.
       ``(4) Global warming pollutant.--The term `global warming 
     pollutant' means--
       ``(A) carbon dioxide;
       ``(B) methane;
       ``(C) nitrous oxide;
       ``(D) hydrofluorocarbons;
       ``(E) perfluorocarbons;
       ``(F) sulfur hexafluoride; and
       ``(G) any other anthropogenically-emitted gas that the 
     Administrator, after notice and comment, determines to 
     contribute to global warming.
       ``(5) Global warming pollution.--The term `global warming 
     pollution' means any combination of 1 or more global warming 
     pollutants emitted into the ambient air or atmosphere.
       ``(6) Market-based program.--The term `market-based 
     program' means a program that places an absolute limit on the 
     aggregate net global warming pollution emissions of 1 or more 
     sectors of the economy of the United States, while allowing 
     the transfer or sale of global warming pollution emission 
     allowances.
       ``(7) NAS report.--The term `NAS report' means a report 
     completed by the Academy under subsection (a) or (b) of 
     section 705.

     ``SEC. 704. GLOBAL WARMING POLLUTION EMISSION REDUCTIONS.

       ``(a) Emission Reduction Goal.--Congress declares that--
       ``(1) it shall be the goal of the United States, acting in 
     concert with other countries that emit global warming 
     pollutants, to achieve a reduction in global warming 
     pollution emissions--
       ``(A) to ensure that the average global temperature does 
     not increase by more than 3.6 degrees Fahrenheit (2 degrees 
     Celsius); and
       ``(B) to facilitate the achievement of an average global 
     atmospheric concentration of global warming pollutants that 
     does not exceed 450 parts per million in carbon dioxide 
     equivalent; and
       ``(2) in order to achieve the goal described in paragraph 
     (1), the United States shall reduce the global warming 
     pollution emissions of the United States by a quantity that 
     is proportional to the share of the United States of the 
     reductions that are necessary--
       ``(A) to ensure that the average global temperature does 
     not increase more than 3.6 degrees Fahrenheit (2 degrees 
     Celsius); and
       ``(B) to stabilize average global warming pollution 
     concentrations globally at or below 450 parts per million in 
     carbon dioxide equivalent.
       ``(b) Emission Reduction Milestones for 2020.--
       ``(1) In general.--To achieve the goal described in 
     subsection (a)(1), not later than 2 years after the date of 
     enactment of this title, after an opportunity for public 
     notice

[[Page 15366]]

     and comment, the Administrator shall promulgate any rules 
     that are necessary to reduce, by not later than January 1, 
     2020, the aggregate net levels of global warming pollution 
     emissions of the United States to the aggregate net level of 
     those global warming pollution emissions during calendar year 
     1990.
       ``(2) Achievement of milestones.--To the maximum extent 
     practicable, the reductions described in paragraph (1) shall 
     be achieved through an annual reduction in the aggregate net 
     level of global warming pollution emissions of the United 
     States of approximately 2 percent for each of calendar years 
     2010 through 2020.
       ``(c) Emission Reduction Milestones for 2030, 2040, and 
     2050.--Except as described in subsection (d), not later than 
     January 1, 2018, after an opportunity for public notice and 
     comment, the Administrator shall promulgate any rules that 
     are necessary to reduce the aggregate net levels of global 
     warming pollution emissions of the United States--
       ``(1) by calendar year 2030, by \1/3\ of 80 percent of the 
     aggregate net level of global warming pollution emissions of 
     the United States during calendar year 1990;
       ``(2) by calendar year 2040, by \2/3\ of 80 percent of the 
     aggregate net level of the global warming pollution emissions 
     of the United States during calendar year 1990; and
       ``(3) by calendar year 2050, by 80 percent of the aggregate 
     net level of global warming pollution emissions of the United 
     States during calendar year 1990.
       ``(d) Accelerated Emission Reduction Milestones.--If an NAS 
     report determines that any of the events described in section 
     705(a)(2) have occurred, or are more likely than not to occur 
     in the foreseeable future, not later than 2 years after the 
     date of completion of the NAS report, the Administrator, 
     after an opportunity for public notice and comment and taking 
     into account the new information reported in the NAS report, 
     may adjust the milestones under this section and promulgate 
     any rules that are necessary--
       ``(1) to reduce the aggregate net levels of global warming 
     pollution emissions from the United States on an accelerated 
     schedule; and
       ``(2) to minimize the effects of rapid climate change and 
     achieve the goals of this title.
       ``(e) Report on Achievement of Milestones.--If an NAS 
     report determines that a milestone under paragraph (1) or (2) 
     of subsection (c) cannot be achieved because of technological 
     infeasibility, the Administrator shall submit to Congress a 
     notification of that determination.
       ``(f) Emission Reduction Policies.--
       ``(1) In general.--In implementing subsections (a) through 
     (e), the Administrator may establish 1 or more market-based 
     programs.
       ``(2) Market-based program policies.--
       ``(A) In general.--In implementing any market-based 
     program, the Administrator shall allocate to households, 
     communities, and other entities described in section 706(a) 
     any global warming pollution emission allowances that are not 
     allocated to entities covered under the emission limitation.
       ``(B) Recognition of emission reductions made in compliance 
     with state and local laws.--A market-based program may 
     recognize reductions of global warming pollution emissions 
     made before the effective date of the market-based program if 
     the Administrator determines that--
       ``(i)(I) the reductions were made in accordance with a 
     State or local law;
       ``(II) the State or local law is at least as stringent as 
     the rules established for the market-based program under 
     paragraph (1); and
       ``(III) the reductions are at least as verifiable as 
     reductions made in accordance with those rules; or
       ``(ii) for any given entity subject to the market-based 
     program, the entity demonstrates that the entity has made 
     entity-wide reductions of global warming pollution emissions 
     before the effective date of the market-based program, but 
     not earlier than calendar year 1992, that are at least as 
     verifiable as reductions made in accordance with the rules 
     established for the market-based program under paragraph (1).
       ``(C) Publication.--If the Administrator determines that it 
     is necessary to establish a market-based program, the 
     Administrator shall publish notice of the determination in 
     the Federal Register.
       ``(D) Limitations on market-based programs.--
       ``(i) Definitions.--In this subparagraph:

       ``(I) Annual allowance price.--The term `annual allowance 
     price' means the average market price of global warming 
     pollution emission allowances for a calendar year.
       ``(II) Declining emissions cap with a technology-indexed 
     stop price.--The term `declining emissions cap with a 
     technology-indexed stop price' means a feature of a market-
     based program for an industrial sector, or on an economy-wide 
     basis, under which the emissions cap declines by a fixed 
     percentage each calendar year or, during any year in which 
     the annual allowance price exceeds the technology-indexed 
     stop price, the emissions cap remains the same until the 
     occurrence of the earlier of--

       ``(aa) the date on which the annual allowance price no 
     longer exceeds the technology-indexed stop price; or
       ``(bb) the date on which a period of 3 years has elapsed 
     during which the emissions cap has remained unchanged.

       ``(III) Emissions cap.--The term `emissions cap' means the 
     total number of global warming pollution emission allowances 
     issued for a calendar year.
       ``(IV) Technology-indexed stop price.--The term 
     `technology-indexed stop price' means a price per ton of 
     global warming pollution emissions determined annually by the 
     Administrator that is not less than the technology-specific 
     average cost of preventing the emission of 1 ton of global 
     warming pollutants through commercial deployment of any 
     available zero-carbon or low-carbon technologies. With 
     respect to the electricity sector, those technologies shall 
     consist of--

       ``(aa) wind-generated electricity;
       ``(bb) photovoltaic-generated electricity;
       ``(cc) geothermal energy;
       ``(dd) solar thermally-generated energy;
       ``(ee) wave-based forms of energy;
       ``(ff) any fossil fuel-based electric generating technology 
     emitting less than 250 pounds per megawatt hour; and
       ``(gg) any zero-carbon-emitting electric generating 
     technology that does not generate radioactive waste.
       ``(ii) Implementation.--In implementing any market-based 
     program under this Act, for the period prior to January 1, 
     2020, the Administrator shall consider the impact on the 
     economy of the United States of implementing the program with 
     a declining emissions cap through the use of a technology-
     indexed stop price.
       ``(iii) Other emitting sectors.--The Administrator may 
     consider the use of a declining emissions cap with a 
     technology-indexed stop price, or similar approaches, for 
     other emitting sectors based on low-carbon or zero-carbon 
     technologies, including--

       ``(I) biofuels;
       ``(II) hydrogen power; and
       ``(III) other sources of energy and transportation fuel.

       ``(g) Cost-Effectiveness.--In promulgating regulations 
     under this section, the Administrator shall select the most 
     cost-effective options for global warming pollution control 
     and emission reduction strategies.

     ``SEC. 705. CONDITIONS FOR ACCELERATED GLOBAL WARMING 
                   POLLUTION EMISSION REDUCTION.

       ``(a) Report on Global Change Events by the Academy.--
       ``(1) In general.--The Administrator shall offer to enter 
     into a contract with the Academy under which the Academy, not 
     later than 2 years after the date of enactment of this title, 
     and every 3 years thereafter, shall submit to Congress and 
     the Administrator a report that describes whether any of the 
     events described in paragraph (2)--
       ``(A) have occurred or are more likely than not to occur in 
     the foreseeable future; and
       ``(B) in the judgment of the Academy, are the result of 
     anthropogenic climate change.
       ``(2) Events.--The events referred to in paragraph (1) 
     are--
       ``(A) the exceedance of an atmospheric concentration of 
     global warming pollutants of 450 parts per million in carbon 
     dioxide equivalent; and
       ``(B) an increase of global average temperatures in excess 
     of 3.6 degrees Fahrenheit (2 degrees Celsius) above the 
     preindustrial average.
       ``(b) Technology Reports.--
       ``(1) Definition of technologically infeasible.--In this 
     subsection, the term `technologically infeasible', with 
     respect to a technology, means that the technology--
         ``(A) will not be demonstrated beyond laboratory-scale 
     conditions;
         ``(B) would be unsafe;
         ``(C) would not reliably reduce global warming pollution 
     emissions; or
         ``(D) would prevent the activity to which the technology 
     applies from meeting or performing its primary purpose (such 
     as generating electricity or transporting goods or 
     individuals).
       ``(2) Reports.--The Administrator shall offer to enter into 
     a contract with the Academy under which the Academy, not 
     later than 2 years after the date of enactment of this title 
     and every 3 years thereafter, shall submit to Congress and 
     the Administrator a report that describes or analyzes--
       ``(A) the status of current global warming pollution 
     emission reduction technologies, including--
       ``(i) technologies for capture and disposal of global 
     warming pollutants;
       ``(ii) efficiency improvement technologies;
       ``(iii) zero-global-warming-pollution-emitting energy 
     technologies; and
       ``(iv) above- and below-ground biological sequestration 
     technologies;
       ``(B) whether any of the requirements under this title 
     (including regulations promulgated under this title) mandate 
     a level of emission control or reduction that, based on 
     available or expected technology, will be technologically 
     infeasible at the time at which the requirements become 
     effective;
       ``(C) the projected date on which any technology determined 
     to be technologically infeasible will become technologically 
     feasible;

[[Page 15367]]

       ``(D) whether any technology determined to be 
     technologically infeasible cannot reasonably be expected to 
     become technologically feasible prior to calendar year 2050; 
     and
       ``(E) the costs of available alternative global warming 
     pollution emission reduction strategies that could be used or 
     pursued in lieu of any technologies that are determined to be 
     technologically infeasible.
       ``(3) Report evaluating 2050 milestone.--Not later than 
     December 31, 2037, the Administrator shall offer to enter 
     into a contract with the Academy under which, not later than 
     December 31, 2039, the Academy shall prepare and submit to 
     Congress and the Administrator a report on the 
     appropriateness of the milestone described in section 
     704(c)(3), taking into consideration--
       ``(A) information that was not available as of the date of 
     enactment of this title; and
       ``(B) events that have occurred since that date relating 
     to--
       ``(i) climate change;
       ``(ii) climate change technologies; and
       ``(iii) national and international climate change 
     commitments.
       ``(c) Additional Items in NAS Report.--In addition to the 
     information described in subsection (a)(1) that is required 
     to be included in the NAS report, the Academy shall include 
     in the NAS report--
       ``(1) an analysis of the trends in annual global warming 
     pollution emissions by the United States and the other 
     countries that collectively account for more than 90 percent 
     of global warming pollution emissions (including country-
     specific inventories of global warming pollution emissions 
     and facility-specific inventories of global warming pollution 
     emissions in the United States);
       ``(2) an analysis of the trends in global warming pollution 
     concentrations (including observed atmospheric concentrations 
     of global warming pollutants);
       ``(3) a description of actual and projected global change 
     impacts that may be caused by anthropogenic global warming 
     pollution emissions, in addition to the events described in 
     subsection (a)(2); and
       ``(4) such other information as the Academy determines to 
     be appropriate.

     ``SEC. 706. USE OF ALLOWANCES FOR TRANSITION ASSISTANCE AND 
                   OTHER PURPOSES.

       ``(a) Regulations Governing Allocation of Allowances for 
     Transition Assistance to Individuals and Entities.--
       ``(1) In general.--In implementing any market-based 
     program, the Administrator may promulgate regulations 
     providing for the allocation of global warming pollution 
     emission allowances to the individuals and entities, or for 
     the purposes, specified in subsection (b).
       ``(2) Requirements.--Regulations promulgated under 
     paragraph (1) may, as the Administrator determines to be 
     necessary, provide for the appointment of 1 or more 
     trustees--
       ``(A) to receive emission allowances for the benefit of 
     households, communities, and other entities described in 
     paragraph (1);
       ``(B) to sell the emission allowances at fair market value; 
     and
       ``(C) to distribute the proceeds of any sale of emission 
     allowances to the appropriate beneficiaries.
       ``(b) Allocation for Transition Assistance.--The 
     Administrator may allocate emission allowances, in accordance 
     with regulations promulgated under subsection (a), to--
       ``(1) communities, individuals, and companies that have 
     experienced disproportionate adverse impacts as a result of--
       ``(A) the transition to a lower carbon-emitting economy; or
       ``(B) global warming;
       ``(2) owners and operators of highly energy-efficient 
     buildings, including--
       ``(A) residential users;
       ``(B) producers of highly energy-efficient products; and
       ``(C) entities that carry out energy-efficiency improvement 
     projects pursuant to section 712 that result in consumer-side 
     reductions in electricity use;
       ``(3) entities that will use the allowances for the purpose 
     of carrying out geological sequestration of carbon dioxide 
     produced by an anthropogenic global warming pollution 
     emission source in accordance with requirements established 
     by the Administrator;
       ``(4) such individuals and entities as the Administrator 
     determines to be appropriate, for use in carrying out 
     projects to reduce net carbon dioxide emissions through 
     above-ground and below-ground biological carbon dioxide 
     sequestration (including sequestration in forests, forest 
     soils, agricultural soils, rangeland, or grassland in the 
     United States);
       ``(5) such individuals and entities (including fish and 
     wildlife agencies) as the Administrator determines to be 
     appropriate, for use in carrying out projects to protect and 
     restore ecosystems (including fish and wildlife) affected by 
     climate change; and
       ``(6) manufacturers producing consumer products that result 
     in substantially reduced global warming pollution emissions, 
     for use in funding rebates for purchasers of those products.

     ``SEC. 707. VEHICLE EMISSION STANDARDS.

       ``(a) Vehicles Under 10,000 Pounds.--
       ``(1) In general.--Not later than January 1, 2010, the 
     Administrator shall promulgate regulations requiring each 
     fleet of automobiles sold by a manufacturer in the United 
     States beginning in model year 2016 to meet the standards for 
     global warming pollution emissions described in paragraph 
     (2).
       ``(2) Emission standards.--The average global warming 
     pollution emissions of a vehicle fleet described in paragraph 
     (1) shall not exceed--
       ``(A) 205 carbon dioxide equivalent grams per mile for 
     automobiles with--
       ``(i) a gross vehicle weight of not more than 8,500 pounds; 
     and
       ``(ii) a loaded vehicle weight of not more than 3,750 
     pounds;
       ``(B) 332 carbon dioxide equivalent grams per mile for--
       ``(i) automobiles with--

       ``(I) a gross vehicle weight of not more than 8,500 pounds; 
     and
       ``(II) a loaded vehicle weight of more than 3,750 pounds; 
     and

       ``(ii) medium-duty passenger vehicles; and
       ``(C) 405 carbon dioxide equivalent grams per mile for 
     vehicles--
       ``(i) with a gross vehicle weight of between 8,501 pounds 
     and 10,000 pounds; and
       ``(ii) that are not medium-duty passenger vehicles.
       ``(3) Heightened standards.--After model year 2016, the 
     Administrator may promulgate regulations that increase the 
     stringency of emission standards described in paragraph (2) 
     as necessary to meet the emission reduction goal described in 
     section 704(e)(3).
       ``(b) Highway Vehicles Over 10,000 Pounds.--
       ``(1) In general.--Not later than January 1, 2010, the 
     Administrator shall promulgate regulations requiring each 
     fleet of highway vehicles over 10,000 pounds sold by a 
     manufacturer in the United States beginning in model year 
     2020 to meet the standards for global warming pollution 
     emissions described in paragraph (2).
       ``(2) Emission standards.--The average global warming 
     pollution emissions of a vehicle fleet described in paragraph 
     (1) shall not exceed--
       ``(A) 850 carbon dioxide equivalent grams per mile for 
     highway vehicles with a gross vehicle weight rating between 
     10,001 pounds and 26,000 pounds; and
       ``(B) 1,050 carbon dioxide equivalent grams per mile for 
     highway vehicles with a gross vehicle weight rating of more 
     than 26,000 pounds.
       ``(3) Heightened standards.--After model year 2020, the 
     Administrator may promulgate regulations that increase the 
     stringency of emission standards described in paragraph (2) 
     as necessary to meet the emission reduction goal described in 
     section 704(a)(1).
       ``(c) Adjustment of Requirements.--Taking into account 
     appropriate lead times for vehicle manufacturers, if the 
     Academy determines, pursuant to an NAS report, that a vehicle 
     emission standard under this section is or will be 
     technologically infeasible as of the effective date of the 
     standard, the Administrator may, by regulation, modify the 
     requirement to take into account the determination of the 
     Academy.
       ``(d) Study.--
       ``(1) In general.--Not later than January 1, 2008, the 
     Administrator shall enter into a contract with the Academy 
     under which the Academy shall conduct a study of, and submit 
     to the Administrator a report on, the potential contribution 
     of the non-highway portion of the transportation sector 
     toward meeting the emission reduction goal described in 
     section 704(a)(1).
       ``(2) Requirements.--The study shall analyze--
       ``(A) the technological feasibility and cost-effectiveness 
     of global warming pollution reductions from the non-highway 
     sector; and
       ``(B) the overall potential contribution of that sector in 
     terms of emissions, in meeting the emission reduction goal 
     described in section 704(a)(1).

     ``SEC. 708. EMISSION STANDARDS FOR ELECTRIC GENERATION UNITS.

       ``(a) Initial Standard.--
       ``(1) In general.--Not later than 2 years after the date of 
     enactment of this title, the Administrator shall, by 
     regulation, require each unit that is designed and intended 
     to provide electricity at a unit capacity factor of at least 
     60 percent and that begins operation after December 31, 2011, 
     to meet the standard described in paragraph (2).
       ``(2) Standard.--Beginning on December 31, 2015, a unit 
     described in paragraph (1) shall meet a global warming 
     pollution emission standard that is not higher than the 
     emission rate of a new combined cycle natural gas generating 
     unit.
       ``(3) More stringent requirements.--For the period 
     beginning on January 1 of the calendar year following the 
     effective date of the regulation described in paragraph (1) 
     and ending on December 31, 2029, the Administrator may 
     increase the stringency of the global warming pollution 
     emission standard described in paragraph (1) with respect to 
     electric generation units described in that paragraph.
       ``(b) Final Standard.--Not later than December 31, 2030, 
     the Administrator shall require each electric generation 
     unit, regardless of when the unit began to operate, to

[[Page 15368]]

     meet the applicable emission standard under subsection (a).
       ``(c) Adjustment of Requirements.--If the Academy 
     determines, pursuant to section 705, that a requirement of 
     this section is or will be technologically infeasible at the 
     time at which the requirement becomes effective, the 
     Administrator, may, by regulation, adjust or delay the 
     effective date of the requirement as is necessary to take 
     into consideration the determination of the Academy.

     ``SEC. 709. LOW-CARBON GENERATION REQUIREMENT.

       ``(a) Definitions.--In this section:
       ``(1) Base quantity of electricity.--The term `base 
     quantity of electricity' means the total quantity of 
     electricity produced for sale by a covered generator during 
     the calendar year immediately preceding a compliance year 
     from coal, petroleum coke, lignite, or any combination of 
     those fuels.
       ``(2) Covered generator.--The term `covered generator' 
     means an electric generating unit that--
       ``(A) has a rated capacity of 25 megawatts or more; and
       ``(B) has an annual fuel input at least 50 percent of which 
     is provided by coal, petroleum coke, lignite, or any 
     combination of those fuels.
     ``(3) Low-carbon generation.--The term `low-carbon 
     generation' means electric energy generated from an electric 
     generating unit at least 50 percent of the annual fuel input 
     of which, in any year--
       ``(A) is provided by coal, petroleum coke, lignite, 
     biomass, or any combination of those fuels; and
       ``(B) results in an emission rate into the atmosphere of 
     not more than 250 pounds of carbon dioxide per megawatt-hour 
     (after adjustment for carbon dioxide from the electric 
     generating unit that is geologically sequestered in a 
     geological repository approved by the Administrator pursuant 
     to subsection (e)).
       ``(4) Program.--The term `program' means the low-carbon 
     generation credit trading program established under 
     subsection (d)(1).
       ``(b) Requirement.--
       ``(1) Calendar years 2015 through 2020.--Of the base 
     quantity of electricity produced for sale by a covered 
     generator for a calendar year, the covered generator shall 
     provide a minimum percentage of that base quantity of 
     electricity for the calendar year from low-carbon generation, 
     as specified in the following table:


 
                                                      Minimum annual
                ``Calendar year:                       percentage:
 
  2015.........................................                      0.5
  2016.........................................                      1.0
  2017.........................................                      2.0
  2018.........................................                      3.0
  2019.........................................                      4.0
  2020.........................................                      5.0
 

       ``(2) Calendar years 2021 through 2025.--For each of 
     calendar years 2021 through 2025, the Administrator may 
     increase the minimum percentage of the base quantity of 
     electricity from low-carbon generation described in paragraph 
     (1) by up to 2 percentage points from the previous year, as 
     the Administrator determines to be necessary to achieve the 
     emission reduction goal described in section 704(a)(1).
       ``(3) Calendar years 2026 through 2030.--For each of 
     calendar years 2026 through 2030, the Administrator may 
     increase the minimum percentage of the base quantity of 
     electricity from low-carbon generation described in paragraph 
     (1) by up to 3 percentage points from the previous year, as 
     the Administrator determines to be necessary to achieve the 
     emission reduction goal described in section 704(a)(1).
       ``(c) Means of Compliance.--An owner or operator of a 
     covered generator shall comply with subsection (b) by--
       ``(1) generating electric energy using low-carbon 
     generation;
       ``(2) purchasing electric energy generated by low-carbon 
     generation;
       ``(3) purchasing low-carbon generation credits issued under 
     the program; or
       ``(4) undertaking a combination of the actions described in 
     paragraphs (1) through (3).
       ``(d) Low-Carbon Generation Credit Trading Program.--
       ``(1) In general.--Not later than January 1, 2008, the 
     Administrator shall establish, by regulation after notice and 
     opportunity for comment, a low-carbon generation trading 
     program to permit an owner or operator of a covered generator 
     that does not generate or purchase enough electric energy 
     from low-carbon generation to comply with subsection (b) to 
     achieve that compliance by purchasing sufficient low-carbon 
     generation credits.
       ``(2) Requirements.--As part of the program, the 
     Administrator shall--
       ``(A) issue to producers of low-carbon generation, on a 
     quarterly basis, a single low-carbon generation credit for 
     each kilowatt hour of low-carbon generation sold during the 
     preceding quarter; and
       ``(B) ensure that a kilowatt hour, including the associated 
     low-carbon generation credit, shall be used only once for 
     purposes of compliance with subsection (b).
       ``(e) Enforcement.--An owner or operator of a covered 
     generator that fails to comply with subsection (b) shall be 
     subject to a civil penalty in an amount equal to the product 
     obtained by multiplying--
       ``(1) the number of kilowatt-hours of electric energy sold 
     to electric consumers in violation of subsection (b); and
       ``(2) the greater of--
       ``(A) 2.5 cents (as adjusted under subsection (g)); or
       ``(B) 200 percent of the average market value of those low-
     carbon generation credits during the year in which the 
     violation occurred.
       ``(f) Exemption.--This section shall not apply for any 
     calendar year to an owner or operator of a covered generator 
     that sold less than 40,000 megawatt-hours of electric energy 
     produced from covered generators during the preceding 
     calendar year.
       ``(g) Inflation Adjustment.--Not later than December 31, 
     2008, and annually thereafter, the Administrator shall adjust 
     the amount of the civil penalty for each kilowatt-hour 
     calculated under subsection (e)(2) to reflect changes for the 
     12-month period ending on the preceding November 30 in the 
     Consumer Price Index for All Urban Consumers published by the 
     Bureau of Labor Statistics of the Department of Labor.
       ``(h) Technological Infeasibility.--If the Academy 
     determines, pursuant to section 705, that the schedule for 
     compliance described in subsection (b) is or will be 
     technologically infeasible for covered generators to meet, 
     the Administrator may, by regulation, adjust the schedule as 
     the Administrator determines to be necessary to take into 
     account the consideration of the determination of the 
     Academy.
       ``(i) Termination of Authority.--This section and the 
     authority provided by this section terminate on December 31, 
     2030.

     ``SEC. 710. GEOLOGICAL DISPOSAL OF GLOBAL WARMING POLLUTANTS.

       ``(a) Geological Carbon Dioxide Disposal Deployment 
     Projects.--
       ``(1) In general.--The Administrator shall establish a 
     competitive grant program to provide grants to 5 entities for 
     the deployment of projects to geologically dispose of carbon 
     dioxide (referred to in this subsection as `geological 
     disposal deployment projects').
       ``(2) Location.--Each geological disposal deployment 
     project shall be conducted in a geologically distinct 
     location in order to demonstrate the suitability of a variety 
     of geological structures for carbon dioxide disposal.
       ``(3) Components.--Each geological disposal deployment 
     project shall include an analysis of--
       ``(A) mechanisms for trapping the carbon dioxide to be 
     geologically disposed;
       ``(B) techniques for monitoring the geologically disposed 
     carbon dioxide;
       ``(C) public response to the geological disposal deployment 
     project; and
       ``(D) the permanency of carbon dioxide storage in 
     geological reservoirs.
       ``(4) Requirements.--
       ``(A) In general.--The Administrator shall establish--
       ``(i) appropriate conditions for environmental protection 
     with respect to geological disposal deployment projects to 
     protect public health and the environment; and
       ``(ii) requirements relating to applications for grants 
     under this subsection.
       ``(B) Rulemaking.--The establishment of requirements under 
     subparagraph (A) shall not require a rulemaking.
       ``(C) Minimum requirements.--At a minimum, each application 
     for a grant under this subsection shall include--
       ``(i) a description of the geological disposal deployment 
     project proposed in the application;
       ``(ii) an estimate of the quantity of carbon dioxide to be 
     geologically disposed over the life of the geological 
     disposal deployment project; and
       ``(iii) a plan to collect and disseminate data relating to 
     each geological disposal deployment project to be funded by 
     the grant.
       ``(5) Partners.--An applicant for a grant under this 
     subsection may carry out a geological disposal deployment 
     project under a pilot program in partnership with 1 or more 
     public or private entities.
       ``(6) Selection criteria.--In evaluating applications under 
     this subsection, the Administrator shall--
       ``(A) consider the previous experience of each applicant 
     with similar projects; and
       ``(B) give priority consideration to applications for 
     geological disposal deployment projects that--
       ``(i) offer the greatest geological diversity from other 
     projects that have previously been approved;
       ``(ii) are located in closest proximity to a source of 
     carbon dioxide;
       ``(iii) make use of the most affordable source of carbon 
     dioxide;
       ``(iv) are expected to geologically dispose of the largest 
     quantity of carbon dioxide;
       ``(v) are combined with demonstrations of advanced coal 
     electricity generation technologies;
       ``(vi) demonstrate the greatest commitment on the part of 
     the applicant to ensure funding for the proposed 
     demonstration project and the greatest likelihood that the 
     demonstration project will be maintained or expanded after 
     Federal assistance under this subsection is completed; and

[[Page 15369]]

       ``(vii) minimize any adverse environmental effects from the 
     project.
       ``(7) Period of grants.--
       ``(A) In general.--A geological disposal deployment project 
     funded by a grant under this subsection shall begin 
     construction not later than 3 years after the date on which 
     the grant is provided.
       ``(B) Term.--The Administrator shall not provide grant 
     funds to any applicant under this subsection for a period of 
     more than 5 years.
       ``(8) Transfer of information and knowledge.--The 
     Administrator shall establish mechanisms to ensure that the 
     information and knowledge gained by participants in the 
     program under this subsection are published and disseminated, 
     including to other applicants that submitted applications for 
     a grant under this subsection.
       ``(9) Schedule.--
       ``(A) Publication.--Not later than 180 days after the date 
     of enactment of this title, the Administrator shall publish 
     in the Federal Register, and elsewhere as appropriate, a 
     request for applications to carry out geological disposal 
     deployment projects.
       ``(B) Date for applications.--An application for a grant 
     under this subsection shall be submitted not later than 180 
     days after the date of publication of the request under 
     subparagraph (A).
       ``(C) Selection.--After the date by which applications for 
     grants are required to be submitted under subparagraph (B), 
     the Administrator, in a timely manner, shall select, after 
     peer review and based on the criteria under paragraph (6), 
     those geological disposal deployment projects to be provided 
     a grant under this subsection.
       ``(b) Interim Standards.--Not later than 3 years after the 
     date of enactment of this title, the Administrator, in 
     consultation with the Secretary of Energy, shall, by 
     regulation, establish interim geological carbon dioxide 
     disposal standards that address--
       ``(1) site selection;
       ``(2) permitting processes;
       ``(3) monitoring requirements;
       ``(4) public participation; and
       ``(5) such other issues as the Administrator and the 
     Secretary of Energy determine to be appropriate.
       ``(c) Final Standards.--Not later than 6 years after the 
     date of enactment of this title, taking into account the 
     results of geological disposal deployment projects carried 
     out under subsection (a), the Administrator shall, by 
     regulation, establish final geological carbon dioxide 
     disposal standards.
       ``(d) Considerations.--In developing standards under 
     subsections (b) and (c), the Administrator shall consider the 
     experience in the United States in regulating--
       ``(1) underground injection of waste;
       ``(2) enhanced oil recovery;
       ``(3) short-term storage of natural gas; and
       ``(4) long-term waste storage.
       ``(e) Termination of Authority.--This section and the 
     authority provided by this section terminate on December 31, 
     2030.

     ``SEC. 711. RESEARCH AND DEVELOPMENT.

       ``(a) In General.--The Administrator shall carry out a 
     program to perform and support research on global climate 
     change standards and processes, with the goals of--
       ``(1) providing scientific and technical knowledge 
     applicable to the reduction of global warming pollutants; and
       ``(2) facilitating implementation of section 704.
       ``(b) Research Program.--
       ``(1) In general.--The Administrator shall carry out, 
     directly or through the use of contracts or grants, a global 
     climate change standards and processes research program.
       ``(2) Research.--
       ``(A) Contents and priorities.--The specific contents and 
     priorities of the research program shall be determined in 
     consultation with appropriate Federal agencies, including--
       ``(i) the National Oceanic and Atmospheric Administration;
       ``(ii) the National Aeronautics and Space Administration; 
     and
       ``(iii) the Department of Energy.
       ``(B) Types of research.--The research program shall 
     include the conduct of basic and applied research--
       ``(i) to develop and provide the enhanced measurements, 
     calibrations, data, models, and reference material standards 
     necessary to enable the monitoring of global warming 
     pollution;
       ``(ii) to assist in establishing a baseline reference point 
     for future trading in global warming pollutants (including 
     the measurement of progress in emission reductions);
       ``(iii) for international exchange as scientific or 
     technical information for the stated purpose of developing 
     mutually-recognized measurements, standards, and procedures 
     for reducing global warming pollution; and
       ``(iv) to assist in developing improved industrial 
     processes designed to reduce or eliminate global warming 
     pollution.
       ``(3) Abrupt climate change research.--
       ``(A) Definition of abrupt climate change.--In this 
     paragraph, the term `abrupt climate change' means a change in 
     climate that occurs so rapidly or unexpectedly that humans or 
     natural systems may have difficulty adapting to the change.
       ``(B) Research.--The Administrator shall carry out a 
     program of scientific research on potential abrupt climate 
     change that is designed--
       ``(i) to develop a global array of terrestrial and 
     oceanographic indicators of paleoclimate in order to identify 
     and describe past instances of abrupt climate change;
       ``(ii) to improve understanding of thresholds and 
     nonlinearities in geophysical systems relating to the 
     mechanisms of abrupt climate change;
       ``(iii) to incorporate those mechanisms into advanced 
     geophysical models of climate change; and
       ``(iv) to test the output of those models against an 
     improved global array of records of past abrupt climate 
     changes.
       ``(c) Sense of the Senate.--It is the sense of the Senate 
     that Federal funds for clean, low-carbon energy research, 
     development, and deployment should be increased by at least 
     100 percent for each year during the 10-year period beginning 
     on the date of enactment of this title.

     ``SEC. 712. ENERGY EFFICIENCY PERFORMANCE STANDARD.

       ``(a) Definitions.--In this section:
       ``(1) Electricity savings.--
       ``(A) In general.--The term `electricity savings' means 
     reductions in end-use electricity consumption relative to 
     consumption by the same customer or at the same new or 
     existing facility in a given year, as defined in regulations 
     promulgated by the Administrator under subsection (e).
       ``(B) Inclusions.--The term `savings' includes savings 
     achieved as a result of--
       ``(i) installation of energy-saving technologies and 
     devices; and
       ``(ii) the use of combined heat and power systems, fuel 
     cells, or any other technology identified by the 
     Administrator that recaptures or generates energy solely for 
     onsite customer use.
       ``(C) Exclusion.--The term `savings' does not include 
     savings from measures that would likely be adopted in the 
     absence of energy-efficiency programs, as determined by the 
     Administrator.
       ``(2) Retail electricity sales.--The term `retail 
     electricity sales' means the total quantity of electric 
     energy sold by a retail electricity supplier to retail 
     customers during the most recent calendar year for which that 
     information is available.
       ``(3) Retail electricity supplier.--The term `retail 
     electricity supplier' means a distribution or integrated 
     utility, or an independent company or entity, that sells 
     electric energy to consumers.
       ``(b) Energy Efficiency Performance Standard.--Each retail 
     electricity supplier shall implement programs and measures to 
     achieve improvements in energy efficiency and peak load 
     reduction, as verified by the Administrator.
       ``(c) Targets.--For calendar year 2008 and each calendar 
     year thereafter, the Administrator shall ensure that retail 
     electric suppliers annually achieve electricity savings and 
     reduce peak power demand and electricity use by retail 
     customers by a percentage that is not less than the 
     applicable target percentage specified in the following 
     table:


------------------------------------------------------------------------
                                Reduction in peak       Reduction in
       ``Calendar Year               demand            electricity use
------------------------------------------------------------------------
2008........................  .25 percent.........  .25 percent
2009........................  .75 percent.........  .75 percent
2010........................  1.75 percent........  1.5 percent
2011........................  2.75 percent........  2.25 percent
2012........................  3.75 percent........  3.0 percent
2013........................  4.75 percent........  3.75 percent
2014........................  5.75 percent........  4.5 percent
2015........................  6.75 percent........  5.25 percent
2016........................  7.75 percent........  6.0 percent
2017........................  8.75 percent........  6.75 percent
2018........................  9.75 percent........  7.5 percent
2019........................  10.75 percent.......  8.25 percent
2020 and each calendar year   11.75 percent.......  9.0 percent
 thereafter.
------------------------------------------------------------------------


[[Page 15370]]

       ``(d) Beginning Date.--For the purpose of meeting the 
     targets established under subsection (c), electricity savings 
     shall be calculated based on the sum of--
       ``(1) savings realized as a result of actions taken by the 
     retail electric supplier during the specified calendar year; 
     and
       ``(2) cumulative savings realized as a result of 
     electricity savings achieved in all previous calendar years 
     (beginning with calendar year 2006).
       ``(e) Implementing Regulations.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this title, the Administrator shall promulgate 
     regulations to implement the targets established under 
     subsection (c).
       ``(2) Requirements.--The regulations shall establish--
       ``(A) a national credit system permitting credits to be 
     awarded, bought, sold, or traded by and among retail 
     electricity suppliers;
       ``(B) a fee equivalent to not less than 4 cents per 
     kilowatt hour for retail energy suppliers that do not meet 
     the targets established under subsection (c); and
       ``(C) standards for monitoring and verification of 
     electricity use and demand savings reported by the retail 
     electricity suppliers.
       ``(3) Consideration of transmission and distribution 
     efficiency.--In developing regulations under this subsection, 
     the Administrator shall consider whether savings, in whole or 
     part, achieved by retail electricity suppliers by improving 
     the efficiency of electric distribution and use should be 
     eligible for credits established under this section.
       ``(f) Compliance With State Law.--Nothing in this section 
     shall supersede or otherwise affect any State or local law 
     requiring or otherwise relating to reductions in total annual 
     electricity consumption, or peak power consumption, by 
     electric consumers to the extent that the State or local law 
     requires more stringent reductions than those required under 
     this section.
       ``(g) Voluntary Participation.--The Administrator may--
       ``(1) pursuant to the regulations promulgated under 
     subsection (e)(1), issue a credit to any entity that is not a 
     retail electric supplier if the entity implements electricity 
     savings; and
       ``(2) in a case in which an entity described in paragraph 
     (1) is a nonprofit or educational organization, provide to 
     the entity 1 or more grants in lieu of a credit.

     ``SEC. 713. RENEWABLE PORTFOLIO STANDARD.

       ``(a) Renewable Energy.--
       ``(1) In general.--The Administrator, in consultation with 
     the Secretary of Energy, shall promulgate regulations 
     defining the types and sources of renewable energy generation 
     that may be carried out in accordance with this section.
       ``(2) Inclusions.--In promulgating regulations under 
     paragraph (1), the Administrator shall include of all types 
     of renewable energy (as defined in section 203(b) of the 
     Energy Policy Act of 2005 (42 U.S.C. 15852(b))) other than 
     energy generated from--
       ``(A) municipal solid waste;
       ``(B) wood contaminated with plastics or metals; or
       ``(C) tires.
       ``(b) Renewable Energy Requirement.--Of the base quantity 
     of electricity sold by each retail electric supplier to 
     electric consumers during a calendar year, the quantity 
     generated by renewable energy sources shall be not less than 
     the following percentages:


 
                                                      Minimum annual
                ``Calendar year:                       percentage:
 
  2008 through 2009............................                        5
  2010 through 2014............................                       10
  2015 through 2019............................                       15
  2020 and subsequent years....................                       20
 

       ``(c) Renewable Energy Credit Program.--Not later than 1 
     year after the date of enactment of this title, the 
     Administrator shall establish--
       ``(1) a program to issue, establish the value of, monitor 
     the sale or exchange of, and track renewable energy credits; 
     and
       ``(2) penalties for any retail electric supplier that does 
     not comply with this section.
       ``(d) Prohibition on Double Counting.--A renewable energy 
     credit issued under subsection (c)--
       ``(1) may be counted toward meeting the requirements of 
     subsection (b) only once; and
       ``(2) shall vest with the owner of the system or facility 
     that generates the renewable energy that is covered by the 
     renewable energy credit, unless the owner explicitly 
     transfers the renewable energy credit.
       ``(e) Sale Under Purpa Contract.--If the Administrator, 
     after consultation with the Secretary of Energy, determines 
     that a renewable energy generator is selling electricity to 
     comply with this section to a retail electric supplier under 
     a contract subject to section 210 of the Public Utilities 
     Regulatory Policies Act of 1978 (16 U.S.C. 824a-3), the 
     retail electric supplier shall be treated as the generator of 
     the electric energy for the purposes of this title for the 
     duration of the contract.
       ``(f) State Programs.--Nothing in this section precludes 
     any State from requiring additional renewable energy 
     generation under any State renewable energy program.
       ``(g) Voluntary Participation.--The Administrator may issue 
     a renewable energy credit pursuant to subsection (c) to any 
     entity that is not subject to this section only if the entity 
     applying for the renewable energy credit meets the terms and 
     conditions of this section to the same extent as retail 
     electric suppliers subject to this section.

     ``SEC. 714. STANDARDS TO ACCOUNT FOR BIOLOGICAL SEQUESTRATION 
                   OF CARBON.

       ``(a) In General.--Not later than 2 years after the date of 
     enactment of title, the Secretary of Agriculture, with the 
     concurrence of the Administrator, shall establish standards 
     for accrediting certified reductions in the emission of 
     carbon dioxide through above-ground and below-ground 
     biological sequestration activities.
       ``(b) Requirements.--The standards shall include--
       ``(1) a national biological carbon storage baseline or 
     inventory; and
       ``(2) measurement, monitoring, and verification guidelines 
     based on--
       ``(A) measurement of increases in carbon storage in excess 
     of the carbon storage that would have occurred in the absence 
     of a new management practice designed to achieve biological 
     sequestration of carbon;
       ``(B) comprehensive carbon accounting that--
       ``(i) reflects sustained net increases in carbon 
     reservoirs; and
       ``(ii) takes into account any carbon emissions resulting 
     from disturbance of carbon reservoirs in existence as of the 
     date of commencement of any new management practice designed 
     to achieve biological sequestration of carbon;
       ``(C) adjustments to account for--
       ``(i) emissions of carbon that may result at other 
     locations as a result of the impact of the new biological 
     sequestration management practice on timber supplies; or
       ``(ii) potential displacement of carbon emissions to other 
     land owned by the entity that carries out the new biological 
     sequestration management practice; and
       ``(D) adjustments to reflect the expected carbon storage 
     over various time periods, taking into account the likely 
     duration of the storage of carbon in a biological reservoir.
       ``(c) Updating of Standards.--Not later than 3 years after 
     the date of establishment of the standards under subsection 
     (a), and every 3 years thereafter, the Secretary of 
     Agriculture shall update the standards to take into account 
     the most recent scientific information.

     ``SEC. 715. GLOBAL WARMING POLLUTION REPORTING.

       ``(a) In General.--Not later than 2 years after the date of 
     enactment of this title, and annually thereafter, any entity 
     considered to be a major stationary source (as defined in 
     section 169A(g)) shall submit to the Administrator a report 
     describing the emissions of global warming pollutants from 
     the entity for the preceding calendar year.
       ``(b) Voluntary Reporting.--An entity that is not described 
     in subsection (a) may voluntarily report the emissions of 
     global warming pollutants from the entity to the 
     Administrator.
       ``(c) Requirements for Reports.--
       ``(1) Expression of measurements.--Each global warming 
     pollution report submitted under this section shall express 
     global warming pollution emissions in--
       ``(A) metric tons of each global warming pollutant; and
       ``(B) metric tons of the carbon dioxide equivalent of each 
     global warming pollutant.
       ``(2) Electronic format.--The information contained in a 
     report submitted under this section shall be reported 
     electronically to the Administrator in such form and to such 
     extent as may be required by the Administrator.
       ``(3) De minimis exemption.--The Administrator may specify 
     the level of global warming pollution emissions from a source 
     within a facility that shall be considered to be a de minimis 
     exemption from the requirement to comply with this section.
       ``(d) Public Availability of Information.--Not later than 
     March 1 of the year after which the Administrator receives a 
     report under this subsection from an entity, and annually 
     thereafter, the Administrator shall make the information 
     reported under this section available to the public through 
     the Internet.
       ``(e) Protocols and Methods.--The Administrator shall, by 
     regulation, establish protocols and methods to ensure 
     completeness, consistency, transparency, and accuracy of data 
     on global warming pollution emissions submitted under this 
     section.
       ``(f) Enforcement.--Regulations promulgated under this 
     section may be enforced pursuant to section 113 with respect 
     to any person that--
       ``(1) fails to submit a report under this section; or
       ``(2) otherwise fails to comply with those regulations.

     ``SEC. 716. CLEAN ENERGY TECHNOLOGY DEPLOYMENT IN DEVELOPING 
                   COUNTRIES.

       ``(a) Definitions.--In this section:
       ``(1) Clean energy technology.--The term `clean energy 
     technology' means an energy

[[Page 15371]]

     supply or end-use technology that, over the lifecycle of the 
     technology and compared to a similar technology already in 
     commercial use in any developing country--
       ``(A) is reliable; and
       ``(B) results in reduced emissions of global warming 
     pollutants.
       ``(2) Developing country.--
       ``(A) In general.--The term `developing country' means any 
     country not listed in Annex I of the United Nations Framework 
     Convention on Climate Change, done at New York on May 9, 
     1992.
       ``(B) Inclusion.--The term `developing country' may include 
     a country with an economy in transition, as determined by the 
     Secretary.
       ``(3) Task force.--The term `Task Force' means the Task 
     Force on International Clean, Low-Carbon Energy Cooperation 
     established under subsection (b)(1).
       ``(b) Task Force.--
       ``(1) Establishment.--Not later than 90 days after the date 
     of enactment of this title, the President shall establish a 
     task force to be known as the `Task Force on International 
     Clean, Low Carbon Energy Cooperation'.
       ``(2) Composition.--The Task Force shall be composed of--
       ``(A) the Administrator and the Secretary of State, who 
     shall serve jointly as Co-Chairpersons; and
       ``(B) representatives, appointed by the head of the 
     respective Federal agency, of--
       ``(i) the Department of Commerce;
       ``(ii) the Department of the Treasury;
       ``(iii) the United States Agency for International 
     Development;
       ``(iv) the Export-Import Bank;
       ``(v) the Overseas Private Investment Corporation;
       ``(vi) the Office of United States Trade Representative; 
     and
       ``(vii) such other Federal agencies as are determined to be 
     appropriate by the President.
       ``(c) Duties.--
       ``(1) Initial strategy.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this title, the Task Force shall develop and 
     submit to the President an initial strategy--
       ``(i) to support the development and implementation of 
     programs and policies in developing countries to promote the 
     adoption of clean, low-carbon energy technologies and energy-
     efficiency technologies and strategies, with an emphasis on 
     those developing countries that are expected to experience 
     the most significant growth in global warming pollution 
     emissions over the 20-year period beginning on the date of 
     enactment of this title; and
       ``(ii)(I) open and expand clean, low-carbon energy 
     technology markets; and
       ``(II) facilitate the export of that technology to 
     developing countries.
       ``(B) Submission to congress.--On receipt of the initial 
     strategy from the Task Force under subparagraph (A), the 
     President shall submit the initial strategy to Congress.
       ``(2) Final strategy.--Not later than 2 years after the 
     date of submission of the initial strategy under paragraph 
     (1), and every 2 years thereafter--
       ``(A) the Task Force shall--
       ``(i) review and update the initial strategy; and
       ``(ii) report the results of the review and update to the 
     President; and
       ``(B) the President shall submit to Congress a final 
     strategy.
       ``(3) Performance criteria.--The Task Force shall develop 
     and submit to the Administrator performance criteria for use 
     in the provision of assistance under this section.
       ``(d) Provision of Assistance.--The Administrator may--
       ``(1) provide assistance to developing countries for use in 
     carrying out activities that are consistent with the 
     priorities established in the final strategy; and
       ``(2) establish a pilot program that provides financial 
     assistance for qualifying projects (as determined by the 
     Administrator) in accordance with--
       ``(A) the final strategy submitted under subsection 
     (c)(2)(B); and
       ``(B) any performance criteria developed by the Task Force 
     under subsection (c)(3).

     ``SEC. 717. PARAMOUNT INTEREST WAIVER.

       ``(a) In General.--If the President determines that a 
     national security emergency exists and, in light of 
     information that was not available as of the date of 
     enactment of this title, that it is in the paramount interest 
     of the United States to modify any requirement under this 
     title to minimize the effects of the emergency, the President 
     may, after opportunity for public notice and comment, 
     temporarily adjust, suspend, or waive any regulations 
     promulgated pursuant to this title to achieve that 
     minimization.
       ``(b) Consultation.--In making an emergency determination 
     under subsection (a), the President shall, to the maximum 
     extent practicable, consult with and take into account any 
     advice received from--
       ``(1) the Academy;
       ``(2) the Secretary of Energy; and
       ``(3) the Administrator.
       ``(c) Judicial Review.--An emergency determination under 
     subsection (a) shall be subject to judicial review under 
     section 307.

     ``SEC. 718. EFFECT ON OTHER LAW.

       ``Nothing in this title--
       ``(1) affects the ability of a State to take State actions 
     to further limit climate change (except that section 209 
     shall apply to standards for vehicles); and
       ``(2) except as expressly provided in this title--
       ``(A) modifies or otherwise affects any requirement of this 
     Act in effect on the day before the date of enactment of this 
     title; or
       ``(B) relieves any person of the responsibility to comply 
     with this Act.''.

     SEC. 3. RENEWABLE CONTENT OF GASOLINE.

       Section 211(o) of the Clean Air Act (as amended by section 
     1501 of the Energy Policy Act of 2005 (Public Law 109-58; 119 
     Stat. 1067)) is amended--
       (1) in paragraph (1)--
       (A) by redesignating subparagraph (B) as subparagraph (E); 
     and
       (B) by inserting after subparagraph (A) the following:
       ``(B) Low-carbon renewable fuel.--The term `low-carbon 
     renewable fuel' means renewable fuel the use of which, on a 
     full fuel cycle, per-mile basis, and as compared with the use 
     of gasoline, achieves a reduction in global warming pollution 
     emissions of 75 percent or more.''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A)(i), by inserting ``and low-carbon 
     renewable fuel'' after ``renewable fuel''; and
       (B) in subparagraph (B)--
       (i) in clause (iv), by striking ``(iv) Minimum applicable 
     volume.--For the purpose of subparagraph (A), the applicable 
     volume'' and inserting the following:
       ``(iv) Minimum applicable volume of renewable fuel.--For 
     the purpose of subparagraph (A), the minimum applicable 
     volume of renewable fuel''; and
       (ii) by adding at the end the following:
       ``(v) Minimum applicable volume of low-carbon renewable 
     fuel.--For the purpose of subparagraph (A), the minimum 
     applicable volume of low-carbon renewable fuel for calendar 
     year 2015 and each calendar year thereafter shall be 
     5,000,000,000 gallons.''.

     SEC. 4. ENFORCEMENT AND JUDICIAL REVIEW.

       (a) Federal Enforcement.--Section 113 of the Clean Air Act 
     (42 U.S.C. 7413) is amended--
       (1) in subsection (a)(3), by striking ``or title VI,'' and 
     inserting ``title VI, or title VII,'';
       (2) in subsection (b)(2), by striking ``or title VI,'' and 
     inserting ``title VI, or title VII,'';
       (3) in subsection (c)--
       (A) in the first sentence of paragraph (1), by striking 
     ``or title VI (relating to stratospheric ozone control),'' 
     and inserting ``title VI (relating to stratospheric ozone 
     control), or title VII (relating to global warming pollution 
     emission reductions),''; and
       (B) in the first sentence of paragraph (3), by striking 
     ``or VI'' and inserting ``VI, or VII'';
       (4) in subsection (d)(1)(B), by striking ``or VI'' and 
     inserting ``VI, or VII''; and
       (5) in the first sentence of subsection (f), by striking 
     ``or VI'' and inserting ``VI, or VII''.
       (b) Establishment of Standards.--Section 202 of the Clean 
     Air Act (42 U.S.C. 7521) is amended--
       (1) by redesignating the second subsection (f) (as added by 
     section 207(b) of Public Law 101-549 (104 Stat. 2482)) as 
     subsection (n); and
       (2) by inserting after subsection (n) (as redesignated by 
     paragraph (1)) the following:
       ``(o) Global Warming Pollution Emission Reductions.--
       ``(1) In general.--Not later than January 1, 2010, the 
     Administrator shall promulgate regulations in accordance with 
     subsection (a) and section 707 to require manufacturers of 
     motor vehicles to meet the vehicle emission standards 
     established under subsections (a) and (b) of section 707.
       ``(2) Effective date.--The regulations promulgated under 
     paragraph (1) shall take effect with respect to motor 
     vehicles sold by a manufacturer beginning in model year 
     2016.''.
       (c) Administrative Proceedings and Judicial Review.--
     Section 307 of the Clean Air Act (42 U.S.C. 7607) is 
     amended--
       (1) in subsection (b)(1)--
       (A) in the first sentence--
       (i) by striking ``section 111,,'' and inserting ``section 
     111,''; and
       (ii) by inserting ``any emission standard or requirement 
     issued pursuant to title VII,'' after ``under section 120,''; 
     and
       (B) in the second sentence, by striking ``section 112,,'' 
     and inserting ``section 112,''; and
       (2) in subsection (d)(1)--
       (A) in subparagraph (T), by striking ``, and'' at the end;
       (B) in subparagraph (U), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(V) the promulgation or revision of any regulation under 
     title VII (relating to global warming pollution).''.

     SEC. 5. FEDERAL FLEET FUEL ECONOMY.

       Section 32917 of title 49, United States Code, is amended 
     by adding at the end the following:
       ``(3) New vehicles.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     each passenger vehicle purchased, or leased for a period of 
     at least 60 consecutive days, by an Executive agency after 
     the date of enactment of this paragraph shall be as fuel-
     efficient as practicable.

[[Page 15372]]

       ``(B) Waiver.--In an emergency situation, an Executive 
     agency may submit to Congress a written request for a waiver 
     of the requirement under paragraph (1).''.

     SEC. 6. INTERNATIONAL NEGOTIATIONS AND TRADE RESTRICTIONS.

       It is the sense of the Senate that the United States should 
     act to reduce the health, environmental, economic, and 
     national security risks posed by global climate change, and 
     foster sustained economic growth through a new generation of 
     technologies, by--
       (1) participating in negotiations under the United Nations 
     Framework Convention on Climate Change, done at New York May 
     9, 1992, and leading efforts in other international forums, 
     with the objective of securing participation of the United 
     States in agreements that--
       (A) advance and protect the economic and national security 
     interests of the United States;
       (B) establish mitigation commitments by all countries that 
     are major emitters of global warming pollution, in accordance 
     with the principle of ``common but differentiated 
     responsibilities'';
       (C) establish flexible international mechanisms to minimize 
     the cost of efforts by participating countries; and
       (D) achieve a significant long-term reduction in global 
     warming pollution emissions; and
       (2) establishing a bipartisan Senate observation group, the 
     members of which should be designated by the Chairman and 
     Ranking Member of the Committee on Foreign Relations of the 
     Senate, and which should include the Chairman and Ranking 
     Member of the Committee on Environment and Public Works of 
     the Senate--
       (A) to monitor any international negotiations on climate 
     change; and
       (B) to ensure that the advice and consent function of the 
     Senate is exercised in a manner to facilitate timely 
     consideration of any applicable treaty submitted to the 
     Senate.

     SEC. 7. REPORT ON TRADE AND INNOVATION EFFECTS.

       Not later than 2 years after the date of enactment of this 
     Act, and annually thereafter, the Secretary of Commerce, in 
     consultation with the United States Trade Representative, the 
     Secretary of the Treasury, the Secretary of Agriculture, the 
     Secretary of Energy, and the Administrator of the 
     Environmental Protection Agency (referred to in this section 
     as the ``Secretary''), shall prepare and submit to Congress a 
     report on the trade, economic, and technology innovation 
     effects of the failure of the United States to adopt measures 
     that require or result in a reduction in total global warming 
     pollution emissions in the United States, in accordance with 
     the goals for the United States under the United Nations 
     Framework Convention on Climate Change, done at New York on 
     May 9, 1992.

     SEC. 8. CLIMATE CHANGE IN ENVIRONMENTAL IMPACT STATEMENTS.

       In any case in which a Federal agency prepares an 
     environmental impact statement or similar analysis required 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), the Federal agency shall consider and 
     evaluate--
       (1) the impact that the Federal action or project 
     necessitating the statement or analysis would have in terms 
     of net changes in global warming pollution emissions; and
       (2) the ways in which climate changes may affect the action 
     or project in the short term and the long term.

     SEC. 9. CORPORATE ENVIRONMENTAL DISCLOSURE OF CLIMATE CHANGE 
                   RISKS.

       (a) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Securities and Exchange Commission 
     (referred to in this section as the ``Commission'') shall 
     promulgate regulations in accordance with section 13 of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78m) directing 
     each issuer of securities under that Act to inform securities 
     investors of the risks relating to--
       (1) the financial exposure of the issuer because of the net 
     global warming pollution emissions of the issuer; and
       (2) the potential economic impacts of global warming on the 
     interests of the issuer.
       (b) Uniform Format for Disclosure.--In carrying out 
     subsection (a), the Commission shall enter into an agreement 
     with the Financial Accounting Standards Board, or another 
     appropriate organization that establishes voluntary 
     standards, to develop a uniform format for disclosing to 
     securities investors information on the risks described in 
     subsection (a).
       (c) Interim Interpretive Release.--
       (1) In general.--As soon as practicable after the date of 
     enactment of this Act, the Commission shall issue an 
     interpretive release clarifying that under items 101 and 303 
     of Regulation S-K of the Commission under part 229 of title 
     17, Code of Federal Regulations (as in effect on the date of 
     enactment of this Act)--
       (A) the commitments of the United States to reduce 
     emissions of global warming pollution under the United 
     Nations Framework Convention on Climate Change, done at New 
     York on May 9, 1992, are considered to be a material effect; 
     and
       (B) global warming constitutes a known trend.
       (2) Period of effectiveness.--The interpretive release 
     issued under paragraph (1) shall remain in effect until the 
     effective date of the final regulations promulgated under 
     subsection (a).
                                 ______
                                 
      By Mr. SPECTER:
  S. 3699. A bill to provide private relief; to the Committee on the 
Judiciary.
  Mr. SPECTER. Mr. President, I seek recognition today to introduce a 
bill to provide private relief to the survivors of Christopher Kangas 
of Brookhaven, PA. This is a final attempt to recognize the public 
service of Christopher Kangas, a junior firefighter of the Brookhaven, 
PA, fire department, who, on May 4, 2002, was struck by a car and 
killed while riding his bicycle to the site of a fire emergency.
  I characterize the bill I introduce today as a ``final attempt'' to 
recognize the public service of Christopher Kangas as a fallen 
firefighter because previous legislative corrections have been blocked 
while the Kangas family languishes in the lengthy appeals process to 
overturn the U.S. Department of Justice's, DOJ, denial of public safety 
officer benefits. During both the 108th and 109th Congresses, I 
introduced the Christopher Kangas Fallen Firefighter Apprentice Act, S. 
2695 and S. 491, respectively, designed to correct a flaw in the 
current definition of ``firefighter'' under the Public Safety Officer 
Benefits Act. That legislation would clarify that all firefighters will 
be recognized as such ``regardless of age, status as an apprentice or 
trainee, or duty restrictions imposed because of age or status as an 
apprentice or trainee'' and applies retroactively to the date of 
Christopher Kangas' death in 2002. However, this legislation has been 
prevented from moving forward due to objections that expansion of 
benefits under the program would result in a serious drain on the 
Treasury when, in fact, the Congressional Budget Office has estimated 
that this bill would cost approximately $2 million in the first year of 
enactment and an average of less than $500,000 in each year thereafter.
  In addition to a legislative remedy, Christopher Kangas' family has 
been pursuing the Federal benefit through the U.S. Federal Claims 
Court. On March 27, 2006, the court ruled in favor of the Kangas family 
ordering DOJ to pay $250,000. However, on May 26, 2006, DOJ filed a 
notice of appeal to this decision, further delaying recognition of 
Christopher Kangas' public service and status as a fallen firefighter.
  Under Pennsylvania law, 14- and 15-year-olds such as Christopher are 
permitted to serve as volunteer junior firefighters. While they are not 
allowed to operate heavy machinery or enter burning buildings, the law 
permits them to fill a number of important support roles, such as 
providing first aid. In addition, the junior firefighter program is an 
important recruitment tool for fire stations throughout the 
Commonwealth. In fact, prior to his death Christopher had received 58 
hours of training that would have served him well when he graduated 
from the junior program.
  It is clear to me that Christopher Kangas was a firefighter killed in 
the line of duty. Were it not for his status as a junior firefighter 
and his prompt response to a fire alarm, Christopher would still be 
alive today. Indeed, the Brookhaven Fire Department, Brookhaven 
Borough, and the Commonwealth of Pennsylvania have all recognized 
Christopher's public service as a fallen public safety officer and 
provided the appropriate death benefits to his family.
  Yet while those closest to the tragedy have recognized Christopher as 
a fallen firefighter, the Federal Government has not. The Department of 
Justice determined that Christopher Kangas was not eligible for 
benefits based on a twofold interpretation of the law. First, because 
he was deemed as not acting within a narrow range of duties at the time 
of his death that are the measured criteria to be considered a 
``firefighter,'' and therefore, was not a ``public safety officer'' for 
purposes of the Public Safety Officer Benefits Act. Second, that his 
death was deemed as

[[Page 15373]]

not sustained in the ``line of duty'' because as a junior firefighter 
he was prohibited from operating a hose on a ladder or entering a 
burning building. As a result of this determination, Christopher's 
family cannot receive a Federal line-of-duty benefit. In addition, 
Christopher is barred from taking his rightful place on the National 
Fallen Firefighters Memorial in Emmitsburg, MD. For a young man who 
dreamed of being a firefighter and gave his life rushing to a fire, 
keeping him off of the memorial is a grave injustice.
  Any firefighter will tell you that there are many important roles to 
play in fighting a fire beyond operating the hoses and ladders. 
Firefighting is a team effort, and everyone in the Brookhaven Fire 
Department viewed young Christopher as a full member of their team. As 
such, I support amending the Public Safety Officer Benefits Act to 
ensure that the Federal Government will recognize Christopher Kangas 
and others like him as firefighters. However, considering the 
significant opposition to that solution, I am offering this private 
bill in honor of Christopher Kangas to provide his family with the 
$250,000 as ordered by the Federal Claims Court and to allow his name 
to be included on the National Fallen Firefighter's Memorial.
  I urge my colleagues to support this important legislation.
                                 ______
                                 
      By Mr. SMITH (for himself and Mr. Wyden):
  S. 3701. A bill to determine successful methods to provide protection 
from catastrophic health expenses for individuals who have exceeded 
health insurance coverage for uninsured individuals, and for other 
purposes; to the Committee on Finance.
  Mr. SMITH. Mr. President, every Congress and a number I have served 
in since 1997, nearly 10 years ago, Senator Wyden and I, my colleague 
from Oregon, have put forward a bipartisan agenda of things we could do 
as a Republican and Democrat to advance the interests of our Nation and 
specifically the interests of our State. It has been a genuine pleasure 
to work with him in achieving much good for Oregon and trying to set a 
better example of how Republicans and Democrats can function first as 
Americans and not as partisans.
  Today as part of our agenda for the 109th Congress, we introduce what 
was item No. 1 on our bipartisan agenda. We have entitled it the 
Catastrophic Health Coverage Promotion Act. It addresses one of the 
most difficult challenges facing Congress, that of rising health care 
costs. Getting to a solution on this is daunting. It is not easy to 
solve. Health care is the ultimate turf battle. But for decades health 
care costs have increased consistently and little has been done to slow 
them.
  While there are a number of factors driving this growth, the 
uninsured play a major role in driving those costs up. Last year 46 
million Americans reported lacking health insurance coverage. In our 
State of Oregon, 600,000 individuals, 17 percent of the population, are 
uninsured. What some fail to realize is that the individuals without 
health insurance coverage nevertheless get health coverage. They do so 
through emergency rooms, even when they haven't the money to pay. The 
result is billions of dollars of uncompensated care incurred by State 
governments, community providers, physicians, and hospitals.
  In 2006 alone, Oregon's hospitals provided a total of $500 million in 
uncompensated care, a 262-percent increase since 1995. Americans absorb 
the impact of uncompensated care by having to pay higher prices for 
health services overall. They are simply passed on in the cost of our 
insurance policies. Small businesses have been hit hard by rising 
health care costs as well. Most report they would love to be able to 
offer health care, but most small businesses are trying to save their 
economic lives, not cover the health care of their employees. But they 
would like to.
  If we do our work right, Senator Wyden and I may have come up with a 
product that may help them to provide some coverage. If a small 
business had extra protection in the form of a catastrophic policy for 
their employees, it might be able to extend the most basic kind of 
care, the kind that says: If you lose your health, you don't lose your 
home; you don't penalize everyone else in the business.
  I know something of this, Mr. President, because having provided 
health care for hundreds of employees, it was the inexpensive 
comprehensive package that overlaid those that ultimately was tapped by 
one or two employees every year that helped us, in a way, to keep 
health care costs more manageable.
  The legislation Senator Wyden and I have developed will address the 
issue of catastrophic health costs on all fronts. The Catastrophic 
Health Coverage Promotion Act creates at least four State-based pilot 
projects that will provide basic coverage to uninsured, as well as 
additional protection for individuals with significant out-of-pocket 
health costs. One of these projects, we hope, will be located in 
Oregon. Certainly, it can be if it chooses.
  Two of the pilots will target the uninsured. States will be given the 
tools they need to offer hybrid health insurance plans that combine a 
primary and preventive health care benefit with high-deductible 
catastrophic coverage. Private insurance providers will market these 
plans to uninsured individuals and small businesses.
  Creating affordable basic coverage options for the uninsured is a 
much needed step to reduce the impact of uncompensated care on our 
health system. By doing this, we should be able to stabilize, if not 
reduce, overall health care costs. To help make this coverage more 
affordable for low-income workers and families, the bill provides a 
graduated subsidy to reduce the costs of premiums. Individuals with 
incomes at or below 200 percent of the Federal poverty level would be 
eligible for extra help with coverage costs.
  Many have asked why Senator Wyden and I would decide to focus on 
catastrophic health coverage, considering that similar policy options 
already exist and are made widely available. While that may be true, 
the Federal Government is often in a unique position to help to grow 
existing markets. I believe the targeted funding included in our bill 
will help make catastrophic coverage more affordable and more 
attractive to both individuals and small businesses. The solution in 
this case does not necessarily have to be as big as the problem.
  While our proposal may not seem to be the ``silver bullet,'' the kind 
of reform our system so desperately needs, it is nevertheless a step in 
the right direction. As is the case with many difficult problems, 
change is made incrementally. We are hopeful that the four pilot 
projects created in this bill will provide policymakers with much 
needed insight on how to better manage catastrophic health costs.
  At the end of the day, individuals should not lose their homes just 
because they lose their health. Anyone--whether they are uninsured or 
have generous comprehensive coverage--can fall victim to a serious 
health care problem.
  I am pleased that my colleague and I were able to work together in a 
bipartisan fashion to develop a modest yet workable solution to this 
longstanding and nagging problem. I urge my colleagues to support the 
legislation, and I encourage the Senate's leadership to move it quickly 
through the process.
  With that, I yield the floor to my colleague from Oregon, Senator Ron 
Wyden.
  Mr. WYDEN. Mr. President, how much time remains under the Smith 
unanimous consent request for a half hour?
  The PRESIDING OFFICER. Twenty-two and a half minutes.
  Mr. WYDEN. Thank you, Mr. President.
  Mr. President, I have come to the floor today to join my colleague at 
this time to discuss the Catastrophic Health Coverage Promotion Act 
that Senator Smith and I are introducing today.
  Mr. President, first, I want to say how much I appreciate Senator 
Gordon Smith. At a time when our citizens all across the land and in 
our home State of Oregon believe there needs to be more bipartisanship, 
Senator Smith

[[Page 15374]]

doesn't just talk about it, he is consistently willing to meet me more 
than halfway on critical issues, and he does that with other colleagues 
in the Senate.
  As we begin our time discussing this legislation, I want to let him 
know how much I appreciate the chance to cooperate with him once again. 
As he stated, we did put the issue of catastrophic health coverage at 
the top of our bipartisan agenda for the Senate session.
  What it comes down to, Mr. President, is that Senator Smith and I 
believe it is a moral blot on our Nation for a country as good and rich 
as ours to send millions of its citizens to bed at night fearing they 
will be wiped out if a serious medical illness hits them. That is the 
reality. It is the reality for families who have no coverage at all, 
and it is the reality for families who have some measure of coverage, 
say, through an employer, but it doesn't stretch far enough.
  Senator Smith and I want, in a bipartisan way, to tackle both of 
those kinds of concerns. That is why we have put forward the 
legislation we introduced today. I think now is an ideal time for 
bipartisanship on the catastrophic health coverage issue.
  If you look back over the last few years, Senator Kerry, in the 2004 
Presidential campaign, had an excellent proposal with respect to 
catastrophic coverage, and I said so in the course of that campaign. 
But I also said at the time that I thought our distinguished majority 
leader, Senator Frist, also had a good catastrophic coverage proposal. 
You could debate the various merits of the Kerry proposal and the Frist 
proposal--which approach involved a little more government, which 
approach involved the private sector--but at the end of the day, for 
the purposes of government work, they were pretty darn similar.
  So when Senator Smith and I sat down after the 2004 election, we said 
let's finally get this done. Democrats and Republicans have been 
talking for years about how to make sure that all our citizens have a 
safety net under them so that they will not get wiped out from medical 
illness. We settled on this approach, which we thought would give us 
the opportunity to try some fresh, creative ideas for protecting our 
citizens.
  Let me give an example of what happens in, for example, South 
Carolina, Oregon, or anywhere else in this country. If you have a small 
business with six people working there, and one of them gets sick, that 
essentially blows up the whole health premium structure for all six of 
the employees.
  What we ought to look at is something called reinsurance. Under 
reinsurance, that employee who gets sick could get a bit of help for 
their high bills through a modest role for government, and if 
government steps in, in that kind of instance, you have an opportunity 
to hold down all of the costs for the entire six-person firm. So we 
should have been looking at reinsurance years ago, but because Senator 
Smith, who chairs the Senate Aging Committee, has been examining these 
questions and has worked with me, now we are going to have a chance to 
tackle it in a way that I think is going to give us the opportunity to 
get the job done.
  We are also very concerned about people who have no coverage at all. 
So what happens if you have no coverage at all is folks walk into a 
hospital in Oregon or in South Carolina, usually they show up in the 
emergency room, and the hospital has to absorb those costs. What we 
would do is give that person who now has no coverage at all the 
possibility of actually buying some private coverage in the marketplace 
with a bit of a subsidy in order to be able to have coverage that would 
pick up at least a portion of those bills that the hospital is now 
absorbing.
  At the end of the day, those are the two principal kinds of instances 
we are facing--folks who have some coverage through a private employer, 
but it doesn't stretch far enough, and folks who don't have any 
coverage at all. Under that approach, we would like to make it possible 
for them to get into the private insurance market, protect them from 
catastrophic illness. We think we can do it with a modest subsidy 
coming from government.
  My sense is that we are now looking at health care on two tracks in 
our country. The first track is a track that suggests we can take steps 
right now in areas like catastrophic coverage to protect our citizens. 
There are other ideas I have advanced during this Congress. For 
example, Senator Snowe and I have now gotten a majority of Senators to 
agree with our proposal to lift the restriction so Medicare can bargain 
and hold down the costs. That, like the question of catastrophic 
coverage, is a step you can take right now. Let's protect our citizens 
from the catastrophic illness and let's hold down the costs of 
medicine. Those are practical, bipartisan approaches that can be taken 
today. We ought to pursue them and get them done.
  I also think there is another track to health care. I noticed that 
Senator Hatch was on the Senate floor. He and I were the authors of the 
legislation creating the Citizens' Health Care Working Group that is 
going to look at opportunities to make sure that all Americans have 
decent, affordable coverage. We have only been on that issue for more 
than 60 years--going back to the 81st Congress, in 1945, and Harry 
Truman. I have said let's also work on that second track that involves 
getting all Americans under the tent for essential and affordable 
health care coverage.
  That obviously isn't going to get done in the next 15 minutes. But if 
the Senate, on a bipartisan basis, as Senator Smith and I have sought 
to do on the catastrophic issue, and as Senator Hatch and I have sought 
to do on a broader approach to look at health care that works for all 
Americans--if we team up and look at health care on those two tracks, I 
think we can make a great contribution for our country.
  There are no costs going up in the United States like medical bills. 
We spent $1.7 trillion last year on health care. There are 290 million 
Americans--I guess we are approaching 300 million. When you divide $1.7 
trillion by 290 million Americans, it comes to something like $25,000 
that could be sent to every family of four in America with the amount 
of money now being spent on health care.
  So while we are spending enough money, my sense is that we are not 
spending it in the right places. Once again, Senator Smith has given us 
an opportunity to think creatively about better ways to approach the 
use of the health care dollars. I was pleased when Senator Smith 
suggested in our legislation that we also make it possible to include a 
focus on health care prevention. We are not doing enough with health 
care prevention in this country. The Medicare Program shows that pretty 
well. Medicare Part A, for example, will pay huge checks for senior 
citizens' hospital bills, but Medicare Part B pays virtually nothing 
for prevention to keep people well. That makes no sense. We need a 
sharper focus on health care prevention, and one of the things that I 
think is attractive about Senator Smith's leadership on this issue is 
that he has said even in the context of looking at catastrophic health 
care, let's put a sharper focus on prevention. We are going to make it 
possible in this legislation to do that.
  I note we have other colleagues on the floor. I have secured time to 
focus on the Voting Rights Act legislation later in the afternoon, but 
I am very pleased to have the opportunity to talk for a few minutes 
about the Catastrophic Health Coverage Promotion Act Senator Smith and 
I are introducing today. We have focused on a number of issues in a 
bipartisan fashion over our years in the Senate, but this has the 
potential to be the biggest as it relates to the needs of our citizens 
at home.
  We want to make sure when folks go to bed at night, they don't have 
to fear they are going to be wiped out financially by a serious medical 
illness. This legislation moves us one step closer toward the goal. We 
hope many colleagues on both sides of the aisle will want to support 
the legislation.
  Mr. President, Senator Snowe and I today are introducing the Medicare 
Prescription Drug Lifeline Act. This legislation provides a solution 
for

[[Page 15375]]

those seniors falling into the coverage gap, also known as the doughnut 
hole of the Medicare prescription drug benefit. The doughnut hole 
occurs when the spending for a senior's drug expenses reaches $2,250: 
at the point, the senior is on their own until their spending for 
prescription drugs reaches a total of $5,100, where the benefit picks 
up again. The Kaiser Family Foundation estimated that nearly 7 million 
seniors will fall into the coverage gap this year.
  Seniors who enter this ``no man's land'' of spending face the same 
problems seniors faced before the drug benefit even began: they skip 
doses, they don't take all their medicine to make it stretch, and they 
are forced to choose between their food and fuel costs and their 
prescription drug costs.
  This legislation would take three steps to deal with this problem: 
First, the Secretary of HHS would be required to let seniors know they 
are approaching the coverage gap. Second, it would allow seniors, when 
they are notified that they are reaching the coverage gap, to switch 
plans to avoid the gap. Finally, the legislation requires the 
Government Accountability Office to examine ways in which the benefit 
could be redesigned to eliminate the gap without increasing Federal 
spending. Together, these provisions will give seniors a lifeline to 
coverage.
  Senator Snowe and I both voted for the legislation that created the 
Medicare prescription drug benefit. When we did so, we pledged that we 
would continue to work to improve the benefit. Senator Snowe and I have 
teamed up together on many occasions to try to reduce the cost of the 
prescription drug program by giving the Secretary the same power other 
Government officials have to bargain for better prices. Our legislation 
has won a majority of votes in the Senate, and we intend to continue to 
press for that power.
  The latest effort is aimed at another shortcoming in the law: finding 
a way to help seniors avoid falling into the coverage gap. Senator 
Snowe and I believe that our legislation will help seniors a 
straightforward way to avoid the gap.
  Congress needs to address both these issues and we will continue our 
strong commitment to seniors by working to improve the drug benefit.
                                 ______
                                 
      By Mrs. FEINSTEIN (for herself and Ms. Snowe):
  S. 3702. A bill to provide for the safety of migrant seasonal 
agricultural workers; to the Committee on Health, Education, Labor, and 
Pensions.
  Mrs. FEINSTEIN. Mr. President, I rise today to introduce legislation 
with Senator Snowe that will provide our Nation's migrant agricultural 
and forest workers with a safe ride to work. The Farm and Forestry 
Worker Transportation Safety Act would require a designated seat and 
seatbelt for each person riding in a vehicle used to transport these 
workers.
  Today, many migrant workers travel to their jobs in dangerous and 
unsafe conditions. It is not uncommon for these workers to ride in 
overcrowded vans and trucks while sitting on benches and buckets with 
no access to seatbelts.
  According to the Bureau of Labor Statistics, 78 agricultural workers 
lost their lives and 440 were injured in transportation accidents in 
2004.
  I would like to take a moment to share with you just a few of the 
accidents that have resulted from the lack of adequate safety 
regulations for these workers:
  In December of 2005, two Guatemalan forest workers were killed when 
their vehicle crashed driving off icy roads in Washington. Five 
Guatemalan forest workers were killed in the same manner the previous 
year.
  In June of 2004, 2 migrant workers were killed in Port St. Lucie, FL, 
when their overcrowded van carrying 11 people rolled over on Interstate 
95. Two months later, 9 citrus workers were killed in Fort Pierce when 
their 15-passenger van rolled over and ejected all 19 passengers.
  In September 2002, 14 forestry workers were killed when their van 
transporting them to work toppled off a bridge in Maine.
  In August 1999, 13 tomato field workers were killed when their van 
slammed into a tractor-trailer in Fresno County, CA. Most of the 
victims were riding on three benches in the back of the van.
  As you can see, this issue does not just affect my home State of 
California. It is a problem that requires national attention. Congress 
needs to take action to ensure these workers safe travel to and from 
their jobs. My bill would seek to provide these workers with a 
designated seat and operating seatbelt.
  This legislation would also address the issue of converted vehicles. 
The bill would direct the Department of Transportation to develop 
interim seat and seatbelt safety standards for vehicles that have been 
converted for the purpose of transporting migrant workers. Owners and 
operators of these vehicles would have 7 years to make the necessary 
improvements so that their vehicles would meet the same safety 
standards as new vehicles.
  I hope my colleagues will join me in standing up for the safety of 
our Nation's migrant workforce.
  Mr. President, I request that the text of this legislation appear 
immediately following this statement in the Congressional Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3702

       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 ``Farm and Forestry Worker 
     Transportation Safety Act''.

     SEC. 2. SEATS AND SEAT BELTS FOR MIGRANT AND SEASONAL 
                   AGRICULTURAL WORKERS.

       (a) Seats.--Except as provided in subsection (d), in 
     promulgating vehicle safety standards under the Migrant and 
     Seasonal Agricultural Worker Protection Act (29 U.S.C. 1801 
     et seq.) for the transportation of migrant and seasonal 
     agricultural workers by farm labor contractors, agricultural 
     employers or agricultural associations, the Secretary of 
     Labor shall ensure that each occupant or rider in, or on, any 
     vehicle subject to such standards is provided with a seat 
     that is a designated seating position (as such term is 
     defined for purposes of the Federal motor vehicle safety 
     standards issued under chapter 301 of title 49, United States 
     Code).
       (b) Seat Belts.--Each seating position required under 
     subsection (a) shall be equipped with an operational seat 
     belt, except that this subsection shall not apply with 
     respect to seating positions in buses that would otherwise 
     not be required to have seat belts under the Federal motor 
     vehicle safety standards.
       (c) Performance Requirements.--
       (1) In general.--Not later than 6 months after the date of 
     enactment of this Act, the Secretary of Transportation, in 
     consultation with the Secretary of Labor, shall issue minimum 
     performance requirements for the strength of seats and the 
     attachment of seats and seat belts in vehicles that are 
     converted, after being sold for purposes other than resale, 
     for the purpose of transporting migrant or seasonal 
     agricultural workers. The requirements shall provide a level 
     of safety that is as close as practicable to the level of 
     safety provided for in a vehicle that is manufactured or 
     altered for the purpose of transporting such workers before 
     being sold for purposes other than resale.
       (2) Expiration.--Effective on the date that is 7 years 
     after the date of enactment of this Act, any vehicle that is 
     or has been converted for the purpose of transporting migrant 
     or seasonal agricultural workers shall provide the same level 
     of safety as a vehicle that is manufactured or altered for 
     such purpose prior to being sold for purposes other than 
     resale.
       (d) Rule of Construction.--Nothing in this section shall be 
     construed to alter or modify the regulations contained in 
     section 500.103, or the provision pertaining to 
     transportation that is primarily on private roads in section 
     500.104(l), of title 29, Code of Federal Regulations, as in 
     effect on the date of enactment of this Act.
       (e) Definitions.--The definitions contained in section 3 of 
     the Migrant and Seasonal Agricultural Worker Protection Act 
     (29 U.S.C. 1802) shall apply to this section.
       (f) Compliance Date.--Not later than 1 year after such date 
     of enactment, and except as provided in subsection (c)(2), 
     all vehicles subject to this Act shall be in compliance with 
     the requirements of this Act.
                                 ______
                                 
      By Ms. SNOWE (for herself and Mr. Wyden):
  S. 3703. A bill to provide for a temporary process for individuals 
entering the Medicare coverage gap to switch to

[[Page 15376]]

a plan that provides coverage in the gap; to the Committee on Finance.
  Ms. SNOWE. Mr. President, I am pleased to be here today with my 
colleague and friend, Senator Wyden, with whom I have worked for many 
years to achieve affordable prescription drug coverage for our seniors. 
We have certainly come a long way from back where we were nearly 10 
years ago.
  Yet much remains to be done. As we have seen, the implementation of 
the Medicare Part D benefit has been difficult, and there is no doubt 
we are still on the road to a sustainable benefit which our seniors can 
easily navigate. The complexity of the benefit is certainly posing a 
hazard to many of our seniors.
  Today we face a crisis as millions of seniors are entering a gap in 
their prescription drug coverage--the so-called doughnut hole. In fact, 
when a senior's drug costs exceed $2,250 this year, they will no longer 
receive benefits until their spending reaches $5,100. That leaves 
seniors with a full $2,850 of drug costs to absorb before they receive 
a single cent of coverage. And they must continue to pay premiums. The 
Kaiser Foundation has reported that an estimated 7 million seniors will 
be affected by this coverage gap. How will they continue to receive 
essential medications?
  Earlier this year, I offered legislation which would have addressed 
this issue by allowing every beneficiary to change their plan once this 
year so that those beneficiaries who realized that they require a more 
comprehensive plan could choose to change to an appropriate plan. We 
know that selecting drug coverage was a challenging process for 
seniors, all the more so as the deadline loomed and they struggled to 
get assistance.
  Many may have made a good decision, but their circumstances may have 
since changed significantly. How many of us know of a senior who has 
had a major illness or hospitalization just since January? Most seniors 
in that situation will have changes in their medications as a result 
and often will use more prescription drugs and likely more expensive 
ones as well.
  Finally, with coverage available, there is little doubt that 
physicians were encouraged to prescribe medications that at last their 
patients could afford--drugs which could prevent serious illness, such 
as heart disease. Yet now, just as seniors see the possibility of a 
future with better health, the cost of that critical treatment may be 
unsustainable. So millions are facing the dilemma we have seen before--
cutting doses or even discontinuing medications. This must not occur 
again.
  As many medical experts will tell you, to stop taking essential 
medications or to begin rationing their use will pose serious safety 
risks to many of our beneficiaries. That undermines the benefits we 
should see from Part D--improved health and decreased health 
expenditures.
  So Senator Wyden and I are here to offer a solution--one which, I 
might add, both HHS Secretary Michael Leavitt and Dr. Mark McClellan, 
the Administrator of the Centers for Medicare and Medicaid Services, 
have previously suggested they would pursue. That solution is a simple 
one--to allow those facing a coverage gap to change to a plan which 
would offer continuous coverage. That solution has simply not been 
employed and that compels us to act today, to protect our seniors.
  The bill I rise to introduce today--the Medicare Prescription Drug 
Lifeline Act--truly gives a second chance to those who most need this 
coverage. Under this legislation we require that CMS notify those who 
are approaching the coverage gap and give them an option of making a 
one-time plan change in order to obtain essential drug coverage. Under 
our legislation, beneficiaries could change to any plan which would 
provide continuous coverage. That includes drug plans which provide 
generic or brand-name drugs as well as Medicare Advantage plans 
offering comprehensive drug coverage.
  In a few States, there is simply not an option which allows a 
beneficiary to obtain continuous brand-name drug coverage. I note that 
in my State of Maine, as well as in New Hampshire and Alaska, such 
coverage simply cannot be obtained. So this legislation directs the 
Secretary to provide an option for beneficiary enrollment in a plan 
with brand-name drug coverage outside their region. That is simply 
fair, and it is essential to ensure that we don't see the doughnut hole 
threaten the health of our seniors.
  We know that this coverage gap is an issue we simply must address. 
Seniors need to be able to plan and budget and count on a predictable 
monthly cost for their essentials of life. When the Congress adopted 
Part D 3 years ago, we said we never wanted to make seniors again 
choose between buying food and buying essential medicines. Yet without 
addressing the doughnut hole now, we will put seniors in that exact 
position again.
  So this legislation also asks the GAO to undertake a study of options 
for eliminating the doughnut hole--looking at ways to level the benefit 
structure--including how we might do so without increasing federal 
expenditures. I note that one might be able to accomplish this, without 
changing the beneficiary's copayment rates appreciably. Obviously, if 
we saw some improvement in the pricing of drugs, that certainly would 
help get us there.
  Today our most critical need is to avoid the harm this coverage gap 
poses, and I call on my colleagues to join us in this effort--to 
preserve drug access for our seniors so both they, ad our Medicare 
system, realize the benefits of modern medicine.
                                 ______
                                 
      By Mr. MENENDEZ (for himself and Mr. Lautenberg):
  S. 3704. A bill to amend title XIX of the Social Security Act to 
require staff working with developmentally disabled individuals to call 
emergency services in the event of a life-threatening situation; to the 
Committee on Finance.
  Mr. MENENDEZ. Mr. President, I rise today with my good friend Senator 
Lautenberg to introduce Danielle's Act, an important piece of 
legislation that I know will save countless lives. I also recognize 
Representative Rush Holt, who has championed the bill in the House and 
has been a tireless advocate for individuals with disabilities. This 
bill is named in memory of a young woman from New Jersey, Danielle 
Gruskowski, whose life was cut tragically short by a failure to call 9-
1-1. The great State of New Jersey has already passed Danielle's Law, 
and it is time for Congress to act as well.
  In order to understand the importance of this legislation, I would 
like to share Danielle's story. She was born December 6, 1969, to Diane 
and Doug Gruskowski and raised in Carteret, NJ. Danielle was 
developmentally disabled and diagnosed with Rett Syndrome, a 
neurological disorder that causes a delay or regression in development, 
including speech, hand skills, and coordination. While Danielle needed 
help with daily activities, she managed to lead a full and active life. 
As a young adult, Danielle moved to a group home to experience the 
positive benefits of independent living. Tragically, on November 5, 
2002, Danielle passed away at the age of 32 because no one in the group 
home called 9-1-1 when she was clearly in need of emergency medical 
attention.
  So that no other mother would lose her child in such a tragic 
circumstance, Danielle's mother and her aunt, Robin Turner, developed a 
strong coalition of supporters and worked with their State 
representatives to develop and pass what we know as Danielle's Law. 
Like the New Jersey law, my bill will require staff working with 
individuals who have a developmental disability or traumatic brain 
injury to call emergency services in the event of a life-threatening 
situation. The legislation would raise the standard of care by 
improving staff training and ensuring that individuals with 
developmental disabilities get emergency care when they need it.
  All Americans deserve an advocate, and today I am speaking for those 
who often cannot speak for themselves. I am proud to be an advocate for 
individuals with disabilities, and I am proud to be an advocate for the 
families in New Jersey who are counting on safe, secure, and healthy 
independent living environments for their loved ones with

[[Page 15377]]

disabilities. I also would like to recognize the hard-working 
caregivers and staff who help provide for the needs of those with 
disabilities. They show their compassion every day when they show up 
for work, performing one of the most difficult but rewarding jobs in 
our society--caring for someone's mother, father, son, or daughter. 
These caregivers play such a critical role in our society and their 
contributions are to be commended. By raising awareness and education 
about Danielle's Law, my hope is that more caregivers will realize how 
important it is to call 9-1-1 for all life-threatening situations and 
that better training and support will be provided to staff across the 
country.
  I am introducing this legislation to remember Danielle and to make 
sure no other family or community experiences the pain and suffering of 
losing a loved one to an avoidable death. I hope my colleagues will 
join me in supporting this important bill.
  Mr. President, I ask unanimous consent that the bill be printed in 
the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3704

       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 ``Danielle's Act''.

     SEC. 2. REQUIREMENT OF STAFF WORKING WITH DEVELOPMENTALLY 
                   DISABLED INDIVIDUALS TO CALL EMERGENCY SERVICES 
                   IN THE EVENT OF A LIFE-THREATENING SITUATION.

       (a) Requirement.--Section 1902(a) of the Social Security 
     Act (42 U.S.C. 1396a(a)) is amended--
       (1) in paragraph (69), by striking ``and'' at the end;
       (2) in paragraph (70), by striking the period at the end 
     and inserting ``; and''; and
       (3) by inserting after paragraph (70) the following new 
     paragraph:
       ``(71) provide, in accordance with regulations of the 
     Secretary, that direct care staff providing health-related 
     services to a individual with a developmental disability or 
     traumatic brain injury are required to call the 911 emergency 
     telephone service or equivalent emergency management service 
     for assistance in the event of a life-threatening emergency 
     to such individual and to report such call to the appropriate 
     State agency or department.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     take effect on January 1, 2007.
                                 ______
                                 
      By Mr. KENNEDY (for himself, Mr. Harkin Mr. Jeffords, Mr. 
        Bingaman, Mrs. Clinton, Mrs. Murray, Mr. Reed, Mr. Dodd, Ms. 
        Mikulski, Mr. Dayton, Ms. Stabenow, and Mr. Schumer):
  S. 3705. A bill to amend title XIX of the Social Security Act to 
improve requirements under the Medicaid program for items and services 
furnished in or through an educational program or setting to children, 
including children with developmental, physical, or mental health 
needs, and for other purposes; to the Committee on Finance.
  Mr. KENNEDY. Mr. President, it is a privilege to join my Senate and 
House colleagues in introducing the Protecting Children's Health in 
Schools Act of 2006. This bill will ensure that the Nation's 7 million 
school children with disabilities will have continued access to health 
care in school.
  In 1975, the Nation made a commitment to guarantee children with 
disabilities equal access to education. For these children to learn and 
thrive in schools, the integration of education with health care is of 
paramount importance. Coordination with Medicaid makes an immense 
difference to schools in meeting the needs of these children.
  This year, however, the Bush administration has declared its intent 
to end Medicaid reimbursements to schools for the support services they 
need in order to provide medical and health-related services to 
disabled children. The administration is saying ``NO'' to any further 
financial help to Medicaid-covered disabled children who need 
specialized transportation to obtain their health services at school. 
It is saying ``NO'' to any legitimate reimbursement to the school for 
costs incurred for administrative duties related to Medicaid services.
  It's bad enough that Congress and the administration have not kept 
the commitment to ``glide-path'' funding of IDEA needs in 2004. Now the 
administration proposes to deny funding to schools under the federal 
program that supports the health needs of disabled children. It makes 
no sense to make it so difficult for disabled children to achieve in 
school--both under IDEA and the No Child Left Behind.
  At stake is an estimated $3.6 billion in Medicaid funds over the next 
5 years. Such funding is essential to help identify disabled children 
and connect them to services that can meet their special health and 
learning needs during the school day.
  This decision by the administration follows years of resisting 
Medicaid reimbursements to schools that provide these services, without 
clear guidance on how schools should appropriately seek reimbursement.
  The ``Protecting Children's Health in Schools Act'' recognizes the 
importance of schools as a site of delivery of health care. It ensures 
that children with disabilities can continue to obtain health services 
during the school day. The bill also provides for clear and consistent 
guidelines to be established, so that schools can be held accountable 
and seek appropriate reimbursement.
  The legislation has the support of over 60 groups, including parents, 
teachers, principals, school boards, and health care providers--people 
who work with children with disabilities every day and know what is 
needed to facilitate their growth, development, and long-term success.
  I urge all of our colleagues to join us in supporting these children 
across the Nation, by providing the realistic support their schools 
need in order to meet these basic health care requirements of their 
students.
  I ask unanimous consent that the attached bill be printed into the 
Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 3705

       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 ``Protecting Children's Health 
     in Schools Act of 2006''.

     SEC. 2. REQUIREMENTS UNDER THE MEDICAID PROGRAM FOR ITEMS AND 
                   SERVICES FURNISHED IN OR THROUGH AN EDUCATIONAL 
                   PROGRAM OR SETTING TO CHILDREN, INCLUDING 
                   CHILDREN WITH DEVELOPMENTAL, PHYSICAL, OR 
                   MENTAL HEALTH NEEDS.

       (a) Requirements for Payments.--Section 1903 of the Social 
     Security Act (42 U.S.C. 1396b) is amended--
       (1) in subsection (i)--
       (A) in paragraph (22), by striking the period at the end 
     and inserting ``; or''; and
       (B) by inserting after paragraph (22), the following new 
     paragraphs:
       ``(23) with respect to any amount expended by, or on behalf 
     of, the State (including by a local educational agency in the 
     State or the lead agency in the State with responsibility for 
     administering part C of the Individuals with Disabilities 
     Education Act) for an item or service provided under the 
     State plan in or through an educational program or setting, 
     or for any administrative cost incurred to carry out the 
     State plan in or through such a program or setting, or for a 
     transportation service for an individual who has not attained 
     age 21, unless the requirements of subsection (y) are met; or
       ``(24) with respect to any amount expended for an item or 
     service provided under the State plan in or through an 
     educational program or setting, or for any administrative 
     cost incurred to carry out the plan in or through such a 
     program or setting by, or on behalf of, the State through an 
     agency that is not the State agency with responsibility for 
     administering the State plan (including a local educational 
     agency in the State or the lead agency in the State with 
     responsibility for administering part C of the Individuals 
     with Disabilities Education Act) and that enters into a 
     contract or other arrangement with a person or entity for or 
     in connection with the collection or submission of claims for 
     such an expenditure or cost, unless the agency--
       ``(A) if not a public agency operating a consortium with 
     other public agencies, uses a competitive bidding process or 
     otherwise to contract with such person or entity at a 
     reasonable rate commensurate with the services performed by 
     the person or entity; and
       ``(B) requires that any fees (including any administrative 
     fees) to be paid to the person or entity for the collection 
     or submission of such claims are identified as a non-
     contingent, specified dollar amount in the contract.''; and
       (2) by adding at the end the following new subsection:

[[Page 15378]]

       ``(y) Requirements for Federal Financial Participation for 
     Furnishing Medical Assistance (including Medically Needed 
     Transportation) in or Through an Educational Program or 
     Setting.--For purposes of subsection (i)(23), the 
     requirements of this subsection are the following:
       ``(1) Approved methodology for expenditures for bundled 
     items, services, and administrative costs.--
       ``(A) In general.--In the case of any amount expended by, 
     or on behalf of, the State for a bundle of individual items, 
     services, and administrative costs under the State plan that 
     are furnished in or through an educational program or 
     setting, the expenditure must be made in accordance with a 
     methodology approved by the Secretary which--
       ``(i) provides for an itemization to the Secretary in a 
     manner that ensures accountability of the cost of the bundled 
     items, services, and administrative costs and includes 
     payment rates and the methodologies underlying the 
     establishment of such rates;
       ``(ii) has a sound basis for determining such payment rates 
     and methodologies; and
       ``(iii) matches payments for the bundled items, services, 
     and administrative costs with corresponding items and 
     services provided and administrative costs incurred under the 
     State plan.
       ``(B) Rule of construction.--Nothing in subparagraph (A) 
     shall be construed as--
       ``(i) requiring a State to establish and apply such a 
     methodology through a State plan amendment;
       ``(ii) requiring a State with such an approved methodology 
     to obtain the approval of the Secretary for any increase in 
     rates of reimbursement that are established consistent with 
     such methodology; or
       ``(iii) prohibiting the Secretary from reviewing a State's 
     costs for the individual items, services, and administrative 
     costs that make up a proposed bundle of items, services, and 
     costs as a condition of approval of the methodology that the 
     State will establish to determine the rate of reimbursement 
     for such bundle of items, services, and costs.
       ``(2) Application of market rate for individual items, 
     services, administrative costs.--In the case of an amount 
     expended by, or on behalf of, the State for an individual 
     item, service, or administrative cost under the State plan 
     that is furnished in or through an educational program or 
     setting, the State must establish that the amount expended--
       ``(A) does not exceed the amount that would have been paid 
     for the item, service, or administrative cost if the item or 
     service was provided or the cost was incurred by an entity in 
     or through a program or setting other than an educational 
     program or setting; or
       ``(B) if the amount expended for the item, service, or 
     administrative cost is higher than the amount described in 
     subparagraph (A), was necessary.
       ``(3) Transportation services.--
       ``(A) In general.--In the case of an amount expended by, or 
     on behalf of, the State for furnishing in or through an 
     educational program or setting a transportation service for 
     an individual who has not attained age 21 and who is eligible 
     for medical assistance under the State plan, the State mush 
     establish that--
       ``(i) a medical need for transportation is specifically 
     listed in the individualized education program for the 
     individual established pursuant to part B of the Individuals 
     with Disabilities Education Act or, in the case of an infant 
     or a toddler with a disability, in the individualized family 
     service plan established for such infant or toddler pursuant 
     to part C of such Act, or is furnished to the individual 
     pursuant to section 504 of the Rehabilitation Act of 1973;
       ``(ii) the vehicle used to furnish such transportation 
     service is specially equipped or staffed to accommodate 
     individuals who have not attained age 21 with developmental, 
     physical, or mental health needs; and
       ``(iii) payment for such service is made only for costs 
     directly attributable to costs associated with transporting 
     individuals who have not attained age 21 and whose 
     developmental, physical, or mental health needs require 
     transport in such a vehicle in order to receive the services 
     for which medical assistance is provided under the State 
     plan.
       ``(B) Rule of construction.--Nothing in subparagraph (A) 
     shall be construed as modifying the obligation of a State to 
     ensure that an individual who has not attained age 21 and who 
     is eligible for medical assistance under the State plan 
     receives necessary transportation services to and from a 
     provider of medical assistance in or through a program or 
     setting other than an educational program or setting.''.
       (b) Requirements for the Provision of Items and Services 
     Through Medicaid Managed Care Organizations.--
       (1) Contractual requirements.--Section 1903(m)(2) of the 
     Social Security Act (42 U.S.C. 1396b(m)(2)) is amended--
       (A) in subparagraph (A), by inserting after clause (i) the 
     following new clause:
       ``(ii) the contract with the entity satisfies the 
     requirements of subparagraph (C) (relating to payment for, 
     and coverage of, such services under an individual's 
     education program, an individualized family service plan, or 
     when furnished in or through an educational program or 
     setting);''; and
       (B) by inserting after subparagraph (B), the following new 
     subparagraph:
       ``(C) For purposes of clause (ii) of subparagraph (A), the 
     requirements of this subparagraph are the following:
       ``(i) The contract with the entity specifies the coverage 
     and payment responsibilities of the entity in relation to 
     medical assistance for items and services that are covered 
     under the State plan and included in the contract, when such 
     items and services are furnished in or through an educational 
     program or setting.
       ``(ii) In any case in which the entity is obligated under 
     the contract to pay for items and services covered under the 
     State plan, the contract with the entity requires the entity 
     to--
       ``(I) enter into a provider network service agreement with 
     the qualified provider or providers furnishing such items or 
     services in or through an educational program or setting;
       ``(II) promptly pay such providers at a rate that is at 
     least equal to the rate that would be paid to a provider 
     furnishing the same service in a non-educational program or 
     setting; and
       ``(III) treat as final and binding determinations by State 
     licensed providers or providers eligible for reimbursement 
     under the State plan working in an educational program or 
     setting regarding the medical necessity of an item or 
     service.
       ``(iii) The contract with the entity specifies the 
     obligation of the entity to ensure that providers of items or 
     services that are furnished in or through an educational 
     program or setting refer children furnished such items or 
     services to the entity and its provider network for 
     additional services that are not available in or through such 
     program or setting but that are covered under the State plan 
     and included in the entity's contract with the State.
       ``(iv) The contract with the entity requires, with respect 
     to payment for, and coverage of, services for which the 
     entity is responsible for, that the entity must demonstrate 
     that the entity has established procedures to--
       ``(I) ensure coordination between the State, a local 
     educational agency and the lead agency in the State with 
     responsibility for administering part C of the Individuals 
     with Disabilities Education Act with respect to those 
     services for an individual who has not attained age 21 and 
     who is eligible for medical assistance under the State plan 
     (including an individual who has an individualized education 
     program established pursuant to part B of the Individuals 
     with Disabilities Education Act or otherwise or an infant or 
     toddler with a disability who has an individualized family 
     service plan established pursuant to part C of such Act) 
     which are required for the individual under the individual's 
     education program or the individualized family service plan, 
     or are furnished to the individual pursuant to section 504 of 
     the Rehabilitation Act of 1973 and which are not specifically 
     included in the services required under the contract, but are 
     the responsibility of the State, a local educational agency, 
     or the lead agency in the State with responsibility for 
     administering part C of the Individuals with Disabilities 
     Education Act; and
       ``(II) prevent duplication of services and payments under 
     this title with respect to items and services covered under 
     the State plan that are furnished in or through an 
     educational program or setting to such individuals enrolled 
     under the contract.''.
       (2) Prohibition on duplicative payments.--
       (A) In general.--Section 1903(i) of the Social Security Act 
     (42 U.S.C. 1396b(i)), as amended by subsection (a), is 
     amended--
       (i) in paragraph (24)(B), by striking the period and 
     inserting ``; or''; and
       (ii) by inserting after paragraph (24) the following new 
     paragraph:
       ``(25) with respect to any amount expended under the State 
     plan for an item, service, or administrative cost for which 
     payment is or may be made directly to a person or entity 
     (including a State, local educational agency, or the lead 
     agency in the State with responsibility for administering 
     part C of the Individuals with Disabilities Education Act) 
     under the State plan if payment for such item, service, or 
     administrative cost was included in the determination of a 
     prepaid capitation or other risk-based rate of payment to an 
     entity under a contract pursuant to section 1903(m).''.
       (B) Conforming amendment.--The third sentence of section 
     1903(i) of such Act (42 U.S.C. 1396b(i)), as amended by 
     subsection (a)(1)(C), is amended by striking ``and (24)'' and 
     inserting ``(24), and (25)''.
       (c) Allowable Share of FFP With Respect to Payment for 
     Services Furnished in or Through an Educational Program or 
     Setting.--Section 1903(w)(6) of the Social Security Act (42 
     U.S.C. 1396b(w)(6)) is amended--
       (1) in subparagraph (A), by inserting ``subject to 
     subparagraph (C),'' after ``subsection,''; and
       (2) by adding at the end the following new subparagraph:
       ``(C) In the case of any Federal financial participation 
     paid under subsection (a) with

[[Page 15379]]

     respect to an expenditure for an item or service provided 
     under the plan, or for any administrative cost incurred to 
     carry out the plan, that is furnished in or through an 
     educational program or setting, the State shall provide 
     that--
       ``(i) if 0 percent of the expenditure was made or the cost 
     was incurred directly by the State, the State shall pay the 
     local educational agency in the State or the lead agency in 
     the State with responsibility for administering part C of the 
     Individuals with Disabilities Education Act that made the 
     expenditure or incurred the cost (and, if applicable, any 
     consortium of public agencies that incurred costs in 
     connection with the collection or submission of claims for 
     such expenditures or costs), 100 percent (divided, as 
     appropriate, between such agencies and such a consortium, if 
     applicable) of the amount of the Federal financial 
     participation; and
       ``(ii) if 100 or any lesser percent of the expenditure was 
     made or the cost was directly incurred by the State, the 
     State shall retain only such percentage of the Federal 
     financial participation paid for the expenditure or cost as 
     does not exceed the percentage of such expenditure or cost 
     that was funded by State revenues that are dedicated solely 
     for the provision of such medical assistance (and shall pay 
     out of any remaining percentage of such Federal financial 
     participation, the percentage due to the local educational 
     agency in the State or the lead agency in the State with 
     responsibility for administering part C of the Individuals 
     with Disabilities Education Act that made or incurred the 
     remaining percentage of such expenditure or cost (and, if 
     applicable, any consortium of public agencies that incurred 
     costs in connection with the collection or submission of 
     claims for such expenditures or costs)).''.
       (d) Assurance of Reimbursement for Administrative, 
     Enrollment, and Outreach Activities Conducted by Local 
     Educational Agencies.--
       (1) Medicaid.--Section 1902 of the Social Security Act (42 
     U.S.C. 1396a) is amended by inserting after subsection (j) 
     the following new subsection:
       ``(k) Nothing in this title shall be construed as 
     authorizing the Secretary to prohibit the State agency with 
     responsibility for the administration or supervision of the 
     administration of the State plan from entering into 
     interagency agreements with local educational agencies under 
     which such local educational agencies shall be reimbursed for 
     the Federal share of amounts expended for administrative, 
     enrollment, and outreach activities for which payment is made 
     to the State under section 1903(a)(7), including with respect 
     to such activities as are conducted for purposes of 
     satisfying the requirements of subsection (a)(43).''.
       (2) SCHIP.--Section 2107(e)(1) of the Social Security Act 
     (42 U.S.C. 1397gg(e)(1)) is amended--
       (A) by redesignating subparagraphs (B) through (D) as 
     subparagraphs (C) through (E), respectively; and
       (B) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Section 1902(k) (relating to interagency agreements 
     with local educational agencies for reimbursement for 
     expenditures for administrative, enrollment, and outreach 
     activities).''.
       (e) Clarification of Coverage of Epsdt and Items and 
     Services Furnished to a Disabled Child Pursuant to Section 
     504 of the Rehabilitation Act of 1973; Definition of 
     ``Educational Program or Setting''.--Section 1903(c) of the 
     Social Security Act (42 U.S.C. 1396b(c)) is amended--
       (1) by inserting ``(1)'' after ``(c)'';
       (2) by striking ``Education Act or'' and inserting 
     ``Education Act,'';
       (3) by inserting ``, or furnished to a child with a 
     disability pursuant to section 504 of the Rehabilitation Act 
     of 1973'' before the period; and
       (4) by adding at the end the following new paragraphs:
       ``(2) Nothing in this title shall be construed as 
     prohibiting or restricting, or authorizing the Secretary to 
     prohibit or restrict, payment under subsection (a) for the 
     following items or services furnished in or through an 
     educational program or setting, or costs incurred with 
     respect to the furnishing of such items or services:
       ``(A) Medical assistance for items or services described in 
     section 1905(a)(4)(B) (relating to early and periodic 
     screening, diagnostic, and treatment services defined in 
     section 1905(r)) and costs incurred for providing such items 
     or services in accordance with the requirements of section 
     1902(a)(43).
       ``(B) Costs incurred for providing services related to the 
     administration of the State plan, including providing 
     information regarding the availability of, and eligibility 
     for, medical assistance under the plan, and assistance with 
     determinations of eligibility and enrollment and 
     redeterminations of eligibility under the plan.
       ``(3) Nothing in this title shall be construed as 
     prohibiting or restricting, or authorizing the Secretary to 
     prohibit or restrict, payment under subsection (a) for 
     medical assistance furnished in or through an educational 
     program or setting or costs described in paragraph (2)(B) 
     solely because--
       ``(A) the State utilizes an all-inclusive payment 
     arrangement in making payments for medical assistance 
     described in subsections (a) or (r) of section 1905; or
       ``(B) the State utilizes a cost allocation system that 
     meets Federal requirements when paying for the cost of 
     services described in section 1902(a)(43) or other 
     administrative services directly related to the 
     administration of the State plan.
       ``(4)(A) For purposes of this title, the term `educational 
     program or setting' means any location in which the items or 
     services included in a child's individualized education plan 
     established pursuant to part B of the Individuals with 
     Disabilities Education Act or otherwise, or in an infant's or 
     toddler's individualized family service plan established 
     pursuant to part C of such Act, are delivered, including the 
     home, child care setting, or school of the child, infant, or 
     toddler.
       ``(B) Such term includes--
       ``(i) any location in which an evaluation or assessment is 
     conducted, in accordance with the requirements of section 
     1902(a)(43) and subsections (a)(4)(B) and (r) of section 
     1905, to determine if a child is a child with a disability 
     under section 614 of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1414) who requires an individualized 
     education program (IEP) under section 614(d) of such Act (20 
     U.S.C. 1414(d)) or if an infant or toddler is an infant or 
     toddler with a disability under section 635(a)(3) of such Act 
     (20 U.S.C. 1435(a)(3)) who requires an individualized family 
     service plan under section 636 of such Act (20 U.S.C. 1436) 
     and any location in which a reevaluation or reassessment of 
     such a determination is conducted; and
       ``(ii) for purposes of subsection (m)(2)(C), any location 
     in which items or services described in section 1905(a)(4)(B) 
     (relating to early and periodic screening, diagnostic, and 
     treatment services defined in section 1905(r)) are delivered 
     and costs are incurred for providing such items or services 
     in accordance with the requirements of section 
     1902(a)(43).''.
       (f) Assurance of Compliance With Federal and State 
     Requirements.--Section 1902(a) of the Social Security Act (42 
     U.S.C. 1396a(a)) is amended--
       (1) in paragraph (69), by striking ``and'' at the end;
       (2) in paragraph (70)(B)(iv), by striking the period at the 
     end and inserting ``; and''; and
       (3) by inserting after paragraph (70), the following new 
     paragraph:
       ``(71) provide that--
       ``(A) the State will establish procedures to ensure that--
       ``(i) any provider of an item or service covered under the 
     plan that is furnished in or through an educational program 
     or setting complies with all Federal and State requirements 
     applicable to providers of such items or services under the 
     plan; and
       ``(ii) any educational entity that is engaged in the 
     provision of an activity described in paragraph (43) or any 
     other activity that is directly related to the administration 
     of the plan complies with all Federal and State requirements 
     applicable for payment for such activity; and
       ``(B) the State will not furnish medical assistance for an 
     item or service covered under the plan in or through an 
     educational program or setting, or undertake any activity 
     described in paragraph (43) or any other activity that is 
     directly related to the administration of the plan in or 
     through such a program or setting, unless the entity 
     responsible for providing the item or service, or undertaking 
     such an activity, in or through the educational program or 
     setting will be paid under the State plan for the costs 
     related to the furnishing of such item or service or the 
     undertaking of such activity.''.
       (g) Uniform Methodology for Educational Program or Setting-
     Based Claims.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary of Health and Human 
     Services and the Secretary of Education, acting jointly and 
     in consultation with State medicaid directors, State 
     educational agencies, local educational agencies, and State 
     agencies with responsibility for administering part C of the 
     Individuals with Disabilities Education Act, shall develop 
     and implement a uniform methodology for claims for payment of 
     medical assistance and related administrative costs furnished 
     under title XIX of the Social Security Act in an educational 
     program or setting.
       (2) Requirements.--The methodology developed under 
     paragraph (1)--
       (A) shall not prohibit or restrict payment for medical 
     assistance and administrative activities that are provided or 
     conducted in accordance with section 1903(c) of the Social 
     Security Act (42 U.S.C. 1396b(c)); and
       (B) with respect to administrative costs, shall be based 
     on--
       (i) standards related to time studies and population 
     estimates; and
       (ii) a national standard for determining payment for such 
     costs.
       (h) Effective Date.--The amendments made by this section 
     shall take effect on the date of enactment of this Act and 
     shall apply to items and services provided and expenditures 
     made on or after such date, without regard to whether 
     implementing regulations are in effect.

[[Page 15380]]


                                 ______
                                 
      By Mr. MARTINEZ (for himself, Mrs. Feinstein, Mr. Nelson of 
        Florida, Mrs. Hutchison, Mr. Sessions, Mr. Bingaman, and Mr. 
        Cornyn):
  S. 3706. A bill to amend the Internal Revenue Code of 1986 to treat 
spaceports like airports under the exempt facility bond rules; to the 
Committee on Finance.
  Mr. MARTINEZ. Mr. President, today I rise with my colleagues, 
Senators Feinstein, Nelson of Florida, Hutchison, and Bingaman, on the 
37th anniversary of the lunar landing when American astronauts Neil 
Armstrong and Edwin Aldrin set foot on the Moon, to introduce the 
Spaceport Equity Act of 2006--a bill to help bring additional 
investment to the space transportation industry.
  On June 18th, the Washington Post reported on the launching of 
Kazakhstan's first satellite and their catapult into the space 
transportation industry. Home to the world's largest space center, the 
Baikonur Consmodrome, this ex-Soviet state is joining the list of 
rivals to the U.S. space industry. America's competitive edge is 
declining and will continue to do so unless we act now. My colleagues 
and I recognize this, and that is why we are introducing this most 
important legislation.
  U.S. satellite manufacturers face increasing pressure to consider the 
use of foreign launch vehicles and launch sites, due to the lack of a 
sufficient domestic launch capability. The United States once dominated 
the commercial satellite-manufacturing field with an average market 
share of 83 percent; however, that market share has since declined to 
50 percent. An even smaller share of U.S.-manufactured satellites is 
actually launched from U.S. spaceports. This comes at an estimated loss 
of $1.5 to $3.0 billion to the U.S. economy.
  The space economy is made up infrastructure of manufacturers, service 
providers, and technologists in both the Government and private sector 
that deploy and operate launch vehicles, satellites, and space 
platforms. Many everyday goods and services rely on space 
infrastructure, including broadcast, cable, and satellite television, 
global internet services, satellite radio, cellular and international 
phone calls, etc.
  Satellites are also used for global positioning systems, known as 
GPS, which enable us to have hands-on directions in our cars and 
vehicles. GPS is also influential in the trucking, aviation, and 
maritime industries for day-to-day operations and for our Nation's 
military operations. Thousands of gas stations use inexpensive small 
satellite dishes to connect to credit card networks so customers can 
pay instantly at the pump. Satellites also generate 90 percent of the 
weather forecasting data in the United States and are used to track 
hurricanes, tsunamis, and other weather phenomenon.
  These satellites are launched vertically atop of rockets, propelling 
them into orbit in space. Because most U.S. space-launch facilities are 
operated by NASA, priority for launches at these facilities is given to 
Government projects. This means our commercial satellite needs take a 
back seat to Government operations. This often leaves U.S. commercial 
satellite ventures without reliable launch availability. This in turn 
has forced many companies seeking manufacturing and launch services 
toward our international competitors.
  Spaceports are subdivisions of State governments that provide 
additional launch infrastructure than that available at Federal 
facilities. They attract and promote the U.S. commercial space 
transportation industry. Spaceport authorities function much like 
airport and port authorities by providing economic and transportation 
incentives to the industry, which in turn benefits the surrounding 
communities. Many States are forming space authorities to pursue ways 
of developing space transportation infrastructure.
  The Florida Space Authority was the first such entity, which was 
created as a subdivision of the Florida State government by Florida's 
Governor and State legislature in 1989. Florida Space Authority is 
focused on leading the State's space industry in new directions through 
partnering with the commercial space industry to improve space 
transportation and provide innovative, forward-thinking solutions to 
the challenges facing this evolving industry.
  The last few years have begun a new phase in space exploration. 
Spaceports presently operate in Florida, California, Virginia, and 
Alaska, but efforts are underway to establish 13 additional commercial 
spaceports in Alabama, California, Montana, Nevada, Oklahoma, South 
Dakota, Texas, Utah, Washington, and Wisconsin.
  The commercial space transportation industry includes not only 
spaceports themselves but also companies that develop the needed 
infrastructure for testing and servicing launch vehicles. When 
including these industry partners with spaceports, at least 23 States 
are directly impacted by the commercial space transportation industry. 
Both spaceports and industry partners face increasing pressure from 
government-sponsored or subsidized competitors in Europe, China, Japan, 
India, Australia, Russia, and now Kazakhstan.
  Commercial space transportation is a growing part of the U.S. 
economy. In 2004, this industry alone generated a total of nearly $98.1 
billion dollars in economic activity, over $25 billion in earnings, and 
over 550,000 jobs; and $56.5 billion, more than half of this economic 
activity, was from satellite services. A 2004 Gallup poll shows 
overwhelming public support for space exploration. Roughly 80 percent 
of Americans agree that ``America's space program helps give America 
the scientific and technological edge it needs to compete in the 
international marketplace.'' And 76 percent agree that our space 
program ``benefits the nation's economy'' and inspires ``students to 
pursue careers in technical fields.''
  The space industry has also led to a number of ``spin-off'' 
technologies--those influenced by space technology research and 
development. Home roof insulation and air filtration, antilock brakes, 
athletic shoes, vehicle protective airbags, cellular phones, and lasik 
surgery all owe thanks to NASA and space-based research. The list of 
space ``spin-off' technologies is estimated to exceed 40,000. These 
related technologies have helped employ tens of millions of Americans. 
Encouraging commercial investment in the space industry and increasing 
U.S. marketshare in this industry will certainly lead to additional 
innovation and technology that will impact other fields.
  As you can see, this once government-dominated industry is now 
becoming a diverse mix of government and commercial entities--also 
leading way into future avenues of commercial space transportation, 
such as space tourism.
  The increase in recent commercial launches includes the debut of the 
first commercial crewed suborbital launches of SpaceShipOne--leading 
the way to public space travel. ``Space tourism,'' as public space 
travel is now referred, has the potential to become a major growth 
industry. Recent market studies have shown space tourism has the 
potential to become a billion-dollar industry within 20 years.
  Even though the average American may not be able to participate in 
public space travel, its potential impact on our economy and 
international competitiveness is something to be appreciated. Space 
tourism industry players expect there to be a market demand of at least 
15,000 Americans per year to travel into suborbit and orbital flights. 
This would require an estimated 665 launches per year by 2010. If the 
United States continues as is, we will only be able to capture 10 
percent market share, at best, of this emerging industry. If needed 
infrastructure is added, however, the United States is expected to pick 
up 60 to 70 percent of space flight demand by 2010. Every launch that 
we do not provide for in the United States means a loss to our economy 
and a gain for our international competitors. The Federal Aviation 
Administration's Commercial Space Transportation Division expects a $3 
billion dollar loss to our economy if we do not meet the rising demand 
for space tourism.

[[Page 15381]]

  Currently, U.S. launch facilities are few and most are owned and 
operated by the Federal Government, putting commercial users in direct 
competition with the U.S. military, NASA, and other Government 
entities, which get priority over commercial projects. If the United 
States is to remain competitive in the commercial space industry, added 
and improved infrastructure will be needed to support this growing 
industry.
  On a more local note, my own State of Florida could stand to gain 
much by way of economic development from increased investment in 
spaceport infrastructure. According to recent studies by the Florida 
Space Authority, increase spaceport infrastructure and activity in 
Florida could mean as much as $29.7 million in additional economic 
activity by the year 2015--this does not include the economic activity 
generated from impacted tourism, secondary contracts, and spinoff 
technologies.
  Other modes of transportation--highways, airports, and seaports--
currently enjoy a tax incentive for meeting their infrastructure needs, 
so why not spaceports?
  This Spaceport Equity Act of 2006 would provide spaceports with the 
same treatment provided for airports, seaports, rail, and other transit 
projects under the exempt facility bond rules. With international 
competition on the rise, our Nation's spaceports are a vital component 
of the infrastructure needed to expand and enhance the U.S. role in the 
international space arena. The Spaceport Equity Act is an important 
step to increasing our competitiveness in this field because it will 
stimulate investment in expanding and modernizing our space launch 
facilities and lower the costs of financing spaceport projects.
  Since 1968, tax-exempt bonds have played a crucial role in meeting 
airport investment needs, with 50 percent or more of major airport 
projects being financed through municipal tax-exempt bonds. By 
extending this favorable tax treatment to spaceports, this bill will 
help meet spaceport needs and increase our Nation's ability to compete 
with expanded international interests in space exploration and 
technology. Similar legislation has been considered since the 1980s, 
and we cannot afford to wait any longer to address the needs of this 
important sector.
  This proposal does not provide direct Federal spending for our 
commercial space transportation industry but, rather, creates the 
conditions necessary to stimulate private capital investment in 
industry infrastructure. By issuing tax-free bonds to finance spaceport 
infrastructure, space authorities could provide site-specific and 
vehicle-specific tailoring to promote the competition and innovation 
necessary to maintain the U.S. competitive edge in the space 
transportation industry.
  This is an efficient means for achieving our space transportation 
needs, and I urge my colleagues in the Senate to join us in this most 
important effort by cosponsoring this bill.
  Mr. President, I ask unanimous consent that the text of this bill be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 3706

       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 ``Spaceport Equality Act of 
     2006''.

     SEC. 2. SPACEPORTS TREATED LIKE AIRPORTS UNDER EXEMPT 
                   FACILITY BOND RULES.

       (a) In General.--Paragraph (1) of section 142(a) of the 
     Internal Revenue Code of 1986 (relating to exempt facility 
     bonds) is amended to read as follows:
       ``(1) airports and spaceports,''.
       (b) Treatment of Ground Leases.--Paragraph (1) of section 
     142(b) of the Internal Revenue Code of 1986 (relating to 
     certain facilities must be governmentally owned) is amended 
     by adding at the end the following new subparagraph:
       ``(C) Special rule for spaceport ground leases.--For 
     purposes of subparagraph (A), spaceport property which is 
     located on land owned by the United States and which is used 
     by a governmental unit pursuant to a lease (as defined in 
     section 168(h)(7)) from the United States shall be treated as 
     owned by such unit if--
       ``(i) the lease term (within the meaning of section 
     168(i)(3)) is at least 15 years, and
       ``(ii) such unit would be treated as owning such property 
     if such lease term were equal to the useful life of such 
     property.''.
       (c) Definition of Spaceport.--Section 142 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new subsection:
       ``(n) Spaceport.--
       ``(1) In general.--For purposes of subsection (a)(1), the 
     term `spaceport' means--
       ``(A) any facility directly related and essential to 
     servicing spacecraft, enabling spacecraft to launch or 
     reenter, or transferring passengers or space cargo to or from 
     spacecraft, but only if such facility is located at, or in 
     close proximity to, the launch site or reentry site, and
       ``(B) any other functionally related and subordinate 
     facility at or adjacent to the launch site or reentry site at 
     which launch services or reentry services are provided, 
     including a launch control center, repair shop, maintenance 
     or overhaul facility, and rocket assembly facility.
       ``(2) Additional terms.--For purposes of paragraph (1)--
       ``(A) Space cargo.--The term `space cargo' includes 
     satellites, scientific experiments, other property 
     transported into space, and any other type of payload, 
     whether or not such property returns from space.
       ``(B) Spacecraft.--The term `spacecraft' means a launch 
     vehicle or a reentry vehicle.
       ``(C) Other terms.--The terms `launch', `launch site', 
     `launch services', `launch vehicle', `payload', `reenter', 
     `reentry services', `reentry site', and `reentry vehicle' 
     shall have the respective meanings given to such terms by 
     section 70102 of title 49, United States Code (as in effect 
     on the date of enactment of this subsection).''.
       (d) Exception From Federally Guaranteed Bond Prohibition.--
     Paragraph (3) of section 149(b) of the Internal Revenue Code 
     of 1986 (relating to exceptions) is amended by adding at the 
     end the following new subparagraph:
       ``(E) Exception for spaceports.--Paragraph (1) shall not 
     apply to any exempt facility bond issued as part of an issue 
     described in paragraph (1) of section 142(a) to provide a 
     spaceport in situations where--
       ``(i) the guarantee of the United States (or an agency or 
     instrumentality thereof) is the result of payment of rent, 
     user fees, or other charges by the United States (or any 
     agency or instrumentality thereof), and
       ``(ii) the payment of the rent, user fees, or other charges 
     is for, and conditioned upon, the use of the spaceport by the 
     United States (or any agency or instrumentality thereof).''.
       (e) Conforming Amendment.--The heading for section 142(c) 
     of the Internal Revenue Code of 1986 is amended by inserting 
     ``Spaceports,'' after ``Airports,''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.
                                 ______
                                 
      By Mr. KENNEDY:
  S. 3710. A bill to amend the Elementary and Secondary Education Act 
of 1965 to improve retention of public elementary and secondary school 
teachers, and for other purposes; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. KENNEDY. Mr. President, today I am introducing the Teacher Center 
Act of 2006, to help establish and fund teacher centers across the 
Nation. Its goal is to provide more effective and relevant professional 
development for teachers, and create a network of support for them to 
share best practices, improve classroom training, and improve working 
conditions in their schools. It's a privilege to join my distinguished 
colleague, Congressman George Miller, who is introducing companion 
legislation for teacher centers in the House of Representatives.
  As research makes clear, good teachers are the single most important 
factor in achieving the success of students, both academically and 
developmentally. Students who receive good instruction can reach new 
heights through the hard work, vision, and energy of their teachers. 
Good teaching can also overcome the harmful effects of poverty and 
other disadvantages on student learning.
  In 2002, with the No Child Left Behind Act, we made a commitment to 
put a first-rate teacher in every classroom to help all students 
succeed in school and in life. But to reach that goal, we need to 
recruit, train, retain, and support our teachers. Today, about half of 
all teachers who enter the profession leave the classroom within five 
years. That's an unacceptable loss--the 5-year mark is just the time 
when teachers have mastered their work and are consistently able to 
improve the education of their students.

[[Page 15382]]

  Too often, teachers lack the training and support needed to do well 
in the classroom. Eliminating this deficit can make all the difference 
in their decision to remain in the profession. Teacher centers can help 
see that teachers have the professional development, mentoring, and 
support they need in order to succeed. Developing and expanding these 
centers is an important step toward enriching teachers' lives, 
enhancing their knowledge and skills, and encouraging them to stay in 
the profession and succeed in the classroom.
  The teacher centers model grew out of an innovative approach to 
supporting the professional development of teachers in England. That 
model enables teachers to become leaders and decision-makers in their 
own professional growth and in the environments in which they work. It 
enables them to collaboratively plan and implement staff development 
and reform that can be shared with their colleagues, as a means for 
reflection and improvement in their teaching practice.
  Since the initial creation of teacher centers in the United States in 
the late 1970s, we have seen how effective they can be in supporting 
teachers, so that they can respond more effectively to student needs 
and help them reach the high standards now required by the No Child 
Left Behind Act.
  Teacher centers offer valuable programs for educators when aligned 
with State standards and school district curriculums. The centers 
support new teachers during their first years in the profession, and 
their peer-to-peer networks facilitate communication and collaboration 
among teachers to improve instruction. The centers also help teachers 
incorporate new research into their daily routines, and support the use 
of technology and proven strategies to keep students engaged and help 
them do well in school.
  Most important, teacher centers are essential to the development of 
teacher capability and leadership. The training provided is aimed at 
building the capability of teachers to reach all of their students 
through differentiated instruction--a goal central to the promise of 
leaving no child behind. And by taking advantage of the support 
provided by teacher centers, educators can have a more active role in 
their own professional growth and eventually hold leadership positions 
in their schools and communities.
  As we know, teachers are on the front lines in the Nation's schools 
and in our efforts to improve public education. We cannot expect the 
quality of our classrooms to improve without investing more in the 
quality of our teachers. Teacher centers ensure that the nation's 
educators have the time, resources, and support they need to work and 
learn with one another.
  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 text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3710

       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 Center Act of 
     2006''.

     SEC. 2. FINDINGS.

       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 do not receive adequate preparation 
     for their jobs.
       (3) More than one-third of children in grades 7 through 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.
       (4) 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.
       (5) African-American, Latino, and low-income students are 
     much less likely than other students to have highly-qualified 
     teachers.
       (6) 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.
       (7) Only 16 States finance new teacher induction programs, 
     and fewer still require inductees to be matched with mentors 
     who teach the same subject.
       (8) Large-scale studies of effective professional 
     development have documented that student achievement and 
     teacher learning increases when professional development is 
     teacher-led, ongoing, and collaborative.
       (9) Research shows that the characteristics of successful 
     professional development include a focus on concrete 
     classroom applications and practice, and opportunities for 
     teacher observation, critique, reflection, group support, and 
     collaboration.
       (10) Data on school reform shows that teachers are 
     attracted to and continue to teach in academically challenged 
     schools when appropriate supports are in place to help them 
     succeed. Appropriate supports include high-quality induction 
     programs, job-embedded professional development, and small 
     classes which allow teachers to tailor instruction to meet 
     the needs of individual students.

     SEC. 3. IMPROVING RETENTION OF AND PROFESSIONAL DEVELOPMENT 
                   FOR PUBLIC ELEMENTARY AND SECONDARY SCHOOL 
                   TEACHERS.

       (a) In General.--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 RETENTION

     ``SEC. 2501. IMPROVING PROFESSIONAL DEVELOPMENT OPPORTUNITIES 
                   THROUGH TEACHER CENTERS.

       ``(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 the teachers in improving their knowledge, 
     skills, and teaching practices in order to help students to 
     improve the students' 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.
       ``(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.

[[Page 15383]]

       ``(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 2 members who are 
     representatives of, or designated by, the school board of the 
     local educational agency to be served by the teacher center;
       ``(ii) shall include at least 1 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 eligible 
     entity 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 eligible entity 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 selection of the membership.
       ``(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 `high-need' means, with respect to an 
     elementary school or a secondary school, a school--
       ``(A) that serves an eligible school attendance area (as 
     defined in section 1113) 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
       ``(B) in which not less than 65 percent of the children 
     enrolled are from such families.
       ``(3) 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.
       ``(4) 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 2007 and such sums as may be necessary for 
     each of the 5 succeeding fiscal years.''.
       (b) Conforming Amendment.--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 by inserting after the item 
     relating to section 2441 of such Act the following new items:

                      ``Part E--Teacher Retention

``Sec. 2501. Improving professional development opportunities.''.

                          ____________________