[Congressional Record (Bound Edition), Volume 153 (2007), Part 1]
[Senate]
[Pages 1407-1439]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. AKAKA (for himself, Mr. Inouye, Mr. Dorgan, Ms. Cantwell, 
        Mr. Coleman, Mr. Stevens, Ms. Murkowski, Mr. Smith, and Mr. 
        Dodd):
  S. 310. A bill to express the policy of the United States regarding 
the United States relationship with Native Hawaiians and to provide a 
process for the recognition by the United States of the Native Hawaiian 
governing entity; to the Committee on Indian Affairs.
  Mr. AKAKA. Mr. President, I rise today with the senior Senator from 
Hawaii to introduce the Native Hawaiian Government Reorganization Act 
of 2007. This bill, which is of great importance to the people of 
Hawaii, establishes a process to extend the Federal policy of self-
governance and self-determination to Hawaii's indigenous people. The 
bill provides parity in Federal policies that empower our country's 
other indigenous people--merican Indians and Alaska Natives--to 
participate in a government-to-government relationship with the United 
States.
  January 17, 2007, commemorates the 114th anniversary of Hawaii's 
beloved Queen Liliuokalani being deposed. Although this event may seem 
like a distant memory, it is a poignant event that expedited the 
decline of a proud and self-governing people. The overthrow facilitated 
Native Hawaiians being disenfranchised from not only their culture and 
land, but from their way of life. Native Hawaiians had to endure the 
forced imprisonment of their Queen and witness the deterioration and 
near eradication of their culture and tradition in their own homeland, 
at the hands of foreigners committed exclusively to propagating Western 
values and conventions.
  While Congress has traditionally treated Native Hawaiians in a manner 
parallel to American Indians and Alaska Natives, the Federal policy of 
self-governance and self-determination has not been formally extended 
to Native Hawaiians. The bill itself does not extend Federal 
recognition--it authorizes the process for Federal recognition.
  The Native Hawaiian Government Reorganization Act of 2007 does three 
things: (1) It authorizes an office in the Department of the Interior 
to serve as a liaison between Native Hawaiians and the United States; 
(2) It forms an interagency coordinating group composed of officials 
from Federal agencies who currently administer programs and services 
impacting Native Hawaiians; and (3) It authorizes a process for the 
reorganization of the Native Hawaiian governing entity for the purposes 
of a federally recognized government-to-government relationship.
  Once the Native Hawaiian governing entity is recognized, the bill 
establishes an inclusive, democratic negotiations process representing 
both Native Hawaiians and non-Native Hawaiians. Negotiations between 
the Native Hawaiian entity and the Federal and State governments may 
address issues such as the transfer of lands, assets, and natural 
resources and jurisdiction over such lands, assets, and natural 
resources, as well as other longstanding issues resulting from the 
overthrow of the Kingdom of Hawaii. Any transfers of governmental 
authority or power will require implementing legislation at the State 
and Federal levels.
  The Hawaii congressional delegation has devoted much time and careful 
consideration into crafting this legislation. When I first started this 
process in 1999, our congressional delegation created five working 
groups to assist with the drafting of this legislation. The working 
groups were composed of individuals from the Native Hawaiian community, 
the State of Hawaii, Federal Government, Indian country, Members of 
Congress, and experts in constitutional law. Collectively, more than 
100 people worked together on the

[[Page 1408]]

initial draft of this legislation. The meetings held with the Native 
Hawaiian community were open to the public and a number of individuals 
who had differing views attended the meetings and provided their 
alternative views on the legislation.
  In August 2000, the Senate Committee on Indian Affairs and the House 
Committee on Resources held joint field hearings on the legislation in 
Hawaii for 5 days. While the bill passed the U.S. House of 
Representatives in the 106th Congress, the Senate failed to take 
action. The bill was subsequently considered by the 107th, l08th, and 
109th Congresses. In each Congress, the bill has been favorably 
reported by the Senate Committee on Indian Affairs and its companion 
measure has been favorably reported by the House Committee on Resources 
in the 106th through the 108th Congress.
  Most recently in the 109th Congress clarifications were made to the 
bill. I want to inform my colleagues to the fact that this bill is 
identical to legislative language negotiated between Senator Inouye and 
myself, and officials from the Department of Justice, Office of 
Management and Budget, and the White House. The language satisfactorily 
addresses concerns expressed in July 2005 by the Bush administration 
regarding the liability of the United States in land claims, the impact 
of the bill on military readiness, gaming, and civil and criminal 
jurisdiction in Hawaii.
  With respect to liability of the United States as it relates to land 
claims, as the author of the Apology Resolution, P.L. 103-150, as well 
as the Native Hawaiian Government Reorganization Act, I have always 
maintained that this legislation is not intended to serve as a 
settlement of any claims nor as a cause of action for any claims. The 
negotiated language makes clear that any grievances regarding 
historical wrongs committed against Native Hawaiians by the United 
States or by the State of Hawaii are to be addressed in the 
negotiations process between the Native Hawaiian governing entity and 
Federal and State governments.
  As a senior member of the Senate Committee on Homeland Security and 
Governmental Affairs, as well as the incoming Chairman on the 
Subcommittee on Readiness and Management of the Senate Committee on 
Armed Services, military readiness for our Armed Forces is of great 
importance to me. Due to concerns raised by the Department of Defense 
to the consultation requirements expected to be facilitated by the 
Office of Native Hawaiian Relations in the Department of the Interior 
and the Native Hawaiian Interagency Coordinating Group; negotiated 
language exempts the Department from these consultation requirements. 
However, these exemptions do not alter nor terminate requirements of 
the DoD to consult with Native Hawaiians under the Native Graves 
Protection and Repatriation Act, NAGPRA, National Historic Preservation 
Act, NHPA, and other existing statutes.
  The bill does not authorize gaming by the Native Hawaiian governing 
entity. Negotiated language clarifies that gaming may not be conducted 
by Native Hawaiians or the Native Hawaiian governing entity as a matter 
of claimed inherent authority or under the authority of any Federal 
laws or regulations promulgated by the Secretary of the Interior or the 
National Indian Gaming Commission. The bill also makes clear that the 
prohibition applies to any efforts to establish gaming by Native 
Hawaiians and the Native Hawaiian governing entity in Hawaii and in any 
other State or Territory. This language only applies to efforts to 
establish gaming operations as a matter of inherent authority as 
indigenous peoples or under federal laws pertaining to gaming by native 
peoples.
  The bill makes clear that civil and criminal jurisdiction currently 
held by the Federal and State governments will remain with the Federal 
and State governments unless otherwise negotiated and implementing 
legislation is enacted.
  I have described the clarifications that have been made so my 
colleagues know that our negotiations with the administration have been 
successful. This language has been publicly available since September 
2005 and has been widely distributed. Although such clarifications have 
been made, I am proud to report that the bill remains true to its 
intent and purpose--to clarify the existing legal and political 
relationship between Hawaii's indigenous people, Native Hawaiians and 
the United States.
  Along with our efforts to work with the Bush administration, during 
the past 4 years, we have worked closely with Hawaii's first Republican 
governor in 40 years, Governor Linda Lingle to enact this legislation. 
We have also worked closely with the Hawaii State legislature which has 
passed three resolutions unanimously in support of federal recognition 
for Native Hawaiians. I am pleased to announce today that I am again 
joined by members from both sides of the aisle to introduce this 
important measure. I mention this, to underscore the fact that this is 
bipartisan legislation.
  In addition to its widespread support by both Native Hawaiians and 
non-Native Hawaiians in Hawaii, in resolutions adopted by the oldest 
and largest national Indian organization, the National Congress of 
American Indians, and the largest organization representing the Native 
people of Alaska, the Alaska Federation of Natives, the members of both 
groups have consistently expressed their strong support for enactment 
of a bill to provide for recognition by the United States of a Native 
Hawaiian governing entity. Organizations such as the American Bar 
Association, Japanese American Citizen League, and the National Indian 
Education Association have also passed resolutions in support of 
federal recognition for Hawaii's indigenous peoples.
  Today I provide my colleagues with a framework to understand the need 
for this legislation by briefly reviewing (1) Hawaii's past, ancient 
Hawaiian society prior to Western contact, (2) Hawaii's present, the 
far reaching consequences of the overthrow, and (3) Hawaii's future.
  Hawaii was originally settled by Polynesian voyagers arriving as 
early as 300 A.D, 1200 years before Europe's great explorers Magellan 
and Columbus. The Hawaiians braved immense distances guided by their 
extensive knowledge of navigation and understanding of the marine 
environment. Isolation followed the era of long voyages, enabling 
Native Hawaiians to develop distinct political, economic, and social 
structures which were mutually supportive. As stewards of the land and 
sea, Native Hawaiians were intimately linked to the environment and 
they developed innovative methods of agriculture, aquaculture, 
navigation and irrigation.
  With an influx of foreigners into Hawaii, Native Hawaiian populations 
plummeted due to death from common Western diseases. Those that 
survived witnessed foreign interest and involvement in their government 
grow until Queen Liliuokalani was forced by American citizens to 
abdicate her right to the throne. This devastated the Native Hawaiian 
people, forever tainting the waters of their identity and tattering the 
very fabric of their society. For some this injustice, this wound has 
never healed, manifesting itself in a sense of inferiority and 
hopelessness leaving many Native Hawaiians at the lowest levels of 
achievement by all social and economic measures.
  Mr. President, 14 years ago the United States enacted the Apology 
Resolution, 103-150, which acknowledged the 100th anniversary of the 
overthrow of the Kingdom of Hawaii in which the United States offered 
an apology to Native Hawaiians and declared its policy to support 
reconciliation efforts. This is a landmark declaration for it 
recognizes not only are Native Hawaiians the indigenous people of 
Hawaii, but of the urgent need for the U.S. to actively engage in 
reconciliation efforts. This acknowledgment played a crucial role in 
initiating a healing process and although progress has been made, the 
path ahead is uncertain.
  Frustration has led to anger and festered in the hearts of Hawaii's 
younger

[[Page 1409]]

generations, with each child that is taught about this period of 
Hawaiian history, a loss is relived. It is a burden that Native 
Hawaiians since the overthrow continue to carry, to know that they were 
violated in their own homeland and their governance was ripped away 
unjustly. Despite the perceived harmony, it is the generation of my 
grandchildren that is growing impatient and frustrated with the lack of 
progress being made. Influenced by a deep sadness and growing 
intolerance, an active minority within this generation seeks 
independence from the United States.
  It is for this generation that I work to enact this bill so that 
there is the structured process to deal with these emotional issues. It 
is important that discussions are held and that there is a framework to 
guide appropriate action. For Hawaii is the homeland of the Native 
Hawaiian people.
  A lack of action by the U.S. will only incite and fuel us down a path 
to a divided Hawaii. A Hawaii where lines and boundaries are drawn and 
unity severed. However, the legislation I introduce today seeks to 
build upon the foundation of reconciliation. It provides a structured 
process to bring together the people of Hawaii, along a path of healing 
to a Hawaii where its indigenous people are respected and culture is 
embraced.
  Respecting the rights of America's first people--American Indians, 
Alaska Natives, and Native Hawaiians is not un-American. Through 
enactment of this legislation, we have the opportunity to demonstrate 
that our country does not just preach its ideas, but lives according to 
its founding principles. That the United States will admit when it has 
trespassed against a people and remain resolute to make amends. We 
demonstrate our character to ourselves and to the world by respecting 
the rights of our country's indigenous people. As it has for America's 
other indigenous peoples, I believe the United States must fulfill its 
responsibility to Native Hawaiians.
  I am proud of the fact that this bill respects the rights of Hawaii's 
indigenous peoples through a process that is consistent with Federal 
law, and it provides the structured process for the people of Hawaii to 
address the longstanding issues which have plagued both Native 
Hawaiians and non-Native Hawaiians since the overthrow of the Kingdom 
of Hawaii. We have an established record of the United States' 
commitment to the reconciliation with Native Hawaiians. This 
legislation is another step building upon that foundation and honoring 
that commitment.
  I ask my colleagues to join me in enacting this legislation which is 
of great importance to all the people of Hawaii.
  Mr. President, I ask unanimous consent that the text of this measure 
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. 310

       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 ``Native Hawaiian Government 
     Reorganization Act of 2007''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the Constitution vests Congress with the authority to 
     address the conditions of the indigenous, native people of 
     the United States;
       (2) Native Hawaiians, the native people of the Hawaiian 
     archipelago that is now part of the United States, are 
     indigenous, native people of the United States;
       (3) the United States has a special political and legal 
     relationship to promote the welfare of the native people of 
     the United States, including Native Hawaiians;
       (4) under the treaty making power of the United States, 
     Congress exercised its constitutional authority to confirm 
     treaties between the United States and the Kingdom of Hawaii, 
     and from 1826 until 1893, the United States--
       (A) recognized the sovereignty of the Kingdom of Hawaii;
       (B) accorded full diplomatic recognition to the Kingdom of 
     Hawaii; and
       (C) entered into treaties and conventions with the Kingdom 
     of Hawaii to govern commerce and navigation in 1826, 1842, 
     1849, 1875, and 1887;
       (5) pursuant to the Hawaiian Homes Commission Act, 1920 (42 
     Stat. 108, chapter 42), the United States set aside 
     approximately 203,500 acres of land to address the conditions 
     of Native Hawaiians in the Federal territory that later 
     became the State of Hawaii;
       (6) by setting aside 203,500 acres of land for Native 
     Hawaiian homesteads and farms, the Hawaiian Homes Commission 
     Act assists the members of the Native Hawaiian community in 
     maintaining distinct native settlements throughout the State 
     of Hawaii;
       (7) approximately 6,800 Native Hawaiian families reside on 
     the Hawaiian Home Lands and approximately 18,000 Native 
     Hawaiians who are eligible to reside on the Hawaiian Home 
     Lands are on a waiting list to receive assignments of 
     Hawaiian Home Lands;
       (8)(A) in 1959, as part of the compact with the United 
     States admitting Hawaii into the Union, Congress established 
     a public trust (commonly known as the ``ceded lands trust''), 
     for 5 purposes, 1 of which is the betterment of the 
     conditions of Native Hawaiians;
       (B) the public trust consists of lands, including submerged 
     lands, natural resources, and the revenues derived from the 
     lands; and
       (C) the assets of this public trust have never been 
     completely inventoried or segregated;
       (9) Native Hawaiians have continuously sought access to the 
     ceded lands in order to establish and maintain native 
     settlements and distinct native communities throughout the 
     State;
       (10) the Hawaiian Home Lands and other ceded lands provide 
     an important foundation for the ability of the Native 
     Hawaiian community to maintain the practice of Native 
     Hawaiian culture, language, and traditions, and for the 
     survival and economic self-sufficiency of the Native Hawaiian 
     people;
       (11) Native Hawaiians continue to maintain other distinctly 
     native areas in Hawaii;
       (12) on November 23, 1993, Public Law 103-150 (107 Stat. 
     1510) (commonly known as the ``Apology Resolution'') was 
     enacted into law, extending an apology on behalf of the 
     United States to the native people of Hawaii for the United 
     States' role in the overthrow of the Kingdom of Hawaii;
       (13) the Apology Resolution acknowledges that the overthrow 
     of the Kingdom of Hawaii occurred with the active 
     participation of agents and citizens of the United States and 
     further acknowledges that the Native Hawaiian people never 
     directly relinquished to the United States their claims to 
     their inherent sovereignty as a people over their national 
     lands, either through the Kingdom of Hawaii or through a 
     plebiscite or referendum;
       (14) the Apology Resolution expresses the commitment of 
     Congress and the President--
       (A) to acknowledge the ramifications of the overthrow of 
     the Kingdom of Hawaii;
       (B) to support reconciliation efforts between the United 
     States and Native Hawaiians; and
       (C) to consult with Native Hawaiians on the reconciliation 
     process as called for in the Apology Resolution;
       (15) despite the overthrow of the government of the Kingdom 
     of Hawaii, Native Hawaiians have continued to maintain their 
     separate identity as a single distinct native community 
     through cultural, social, and political institutions, and to 
     give expression to their rights as native people to self-
     determination, self-governance, and economic self-
     sufficiency;
       (16) Native Hawaiians have also given expression to their 
     rights as native people to self-determination, self-
     governance, and economic self-sufficiency--
       (A) through the provision of governmental services to 
     Native Hawaiians, including the provision of--
       (i) health care services;
       (ii) educational programs;
       (iii) employment and training programs;
       (iv) economic development assistance programs;
       (v) children's services;
       (vi) conservation programs;
       (vii) fish and wildlife protection;
       (viii) agricultural programs;
       (ix) native language immersion programs;
       (x) native language immersion schools from kindergarten 
     through high school;
       (xi) college and master's degree programs in native 
     language immersion instruction; and
       (xii) traditional justice programs, and
       (B) by continuing their efforts to enhance Native Hawaiian 
     self-determination and local control;
       (17) Native Hawaiians are actively engaged in Native 
     Hawaiian cultural practices, traditional agricultural 
     methods, fishing and subsistence practices, maintenance of 
     cultural use areas and sacred sites, protection of burial 
     sites, and the exercise of their traditional rights to gather 
     medicinal plants and herbs, and food sources;
       (18) the Native Hawaiian people wish to preserve, develop, 
     and transmit to future generations of Native Hawaiians their 
     lands and Native Hawaiian political and cultural identity in 
     accordance with their traditions, beliefs, customs and 
     practices, language, and social and political institutions, 
     to control and manage their own lands, including ceded lands, 
     and to achieve greater self-determination over their own 
     affairs;
       (19) this Act provides a process within the framework of 
     Federal law for the Native Hawaiian people to exercise their 
     inherent

[[Page 1410]]

     rights as a distinct, indigenous, native community to 
     reorganize a single Native Hawaiian governing entity for the 
     purpose of giving expression to their rights as native people 
     to self-determination and self-governance;
       (20) Congress--
       (A) has declared that the United States has a special 
     political and legal relationship for the welfare of the 
     native peoples of the United States, including Native 
     Hawaiians;
       (B) has identified Native Hawaiians as a distinct group of 
     indigenous, native people of the United States within the 
     scope of its authority under the Constitution, and has 
     enacted scores of statutes on their behalf; and
       (C) has delegated broad authority to the State of Hawaii to 
     administer some of the United States' responsibilities as 
     they relate to the Native Hawaiian people and their lands;
       (21) the United States has recognized and reaffirmed the 
     special political and legal relationship with the Native 
     Hawaiian people through the enactment of the Act entitled, 
     ``An Act to provide for the admission of the State of Hawaii 
     into the Union'', approved March 18, 1959 (Public Law 86-3; 
     73 Stat. 4), by--
       (A) ceding to the State of Hawaii title to the public lands 
     formerly held by the United States, and mandating that those 
     lands be held as a public trust for 5 purposes, 1 of which is 
     for the betterment of the conditions of Native Hawaiians; and
       (B) transferring the United States' responsibility for the 
     administration of the Hawaiian Home Lands to the State of 
     Hawaii, but retaining the exclusive right of the United 
     States to consent to any actions affecting the lands included 
     in the trust and any amendments to the Hawaiian Homes 
     Commission Act, 1920 (42 Stat. 108, chapter 42) that are 
     enacted by the legislature of the State of Hawaii affecting 
     the beneficiaries under the Act;
       (22) the United States has continually recognized and 
     reaffirmed that--
       (A) Native Hawaiians have a cultural, historic, and land-
     based link to the aboriginal, indigenous, native people who 
     exercised sovereignty over the Hawaiian Islands;
       (B) Native Hawaiians have never relinquished their claims 
     to sovereignty or their sovereign lands;
       (C) the United States extends services to Native Hawaiians 
     because of their unique status as the indigenous, native 
     people of a once-sovereign nation with whom the United States 
     has a special political and legal relationship; and
       (D) the special relationship of American Indians, Alaska 
     Natives, and Native Hawaiians to the United States arises out 
     of their status as aboriginal, indigenous, native people of 
     the United States; and
       (23) the State of Hawaii supports the reaffirmation of the 
     special political and legal relationship between the Native 
     Hawaiian governing entity and the United States as evidenced 
     by 2 unanimous resolutions enacted by the Hawaii State 
     Legislature in the 2000 and 2001 sessions of the Legislature 
     and by the testimony of the Governor of the State of Hawaii 
     before the Committee on Indian Affairs of the Senate on 
     February 25, 2003, and March 1, 2005.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Aboriginal, indigenous, native people.--The term 
     ``aboriginal, indigenous, native people'' means people whom 
     Congress has recognized as the original inhabitants of the 
     lands that later became part of the United States and who 
     exercised sovereignty in the areas that later became part of 
     the United States.
       (2) Adult member.--The term ``adult member'' means a Native 
     Hawaiian who has attained the age of 18 and who elects to 
     participate in the reorganization of the Native Hawaiian 
     governing entity.
       (3) Apology resolution.--The term ``Apology Resolution'' 
     means Public Law 103-150 (107 Stat. 1510), a Joint Resolution 
     extending an apology to Native Hawaiians on behalf of the 
     United States for the participation of agents of the United 
     States in the January 17, 1893, overthrow of the Kingdom of 
     Hawaii.
       (4) Commission.--The term ``commission'' means the 
     Commission established under section 7(b) to provide for the 
     certification that those adult members of the Native Hawaiian 
     community listed on the roll meet the definition of Native 
     Hawaiian set forth in paragraph (10).
       (5) Council.--The term ``council'' means the Native 
     Hawaiian Interim Governing Council established under section 
     7(c)(2).
       (6) Indian program or service.--
       (A) In general.--The term ``Indian program or service'' 
     means any federally funded or authorized program or service 
     provided to an Indian tribe (or member of an Indian tribe) 
     because of the status of the members of the Indian tribe as 
     Indians.
       (B) Inclusions.--The term ``Indian program or service'' 
     includes a program or service provided by the Bureau of 
     Indian Affairs, the Indian Health Service, or any other 
     Federal agency.
       (7) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (8) Indigenous, native people.--The term ``indigenous, 
     native people'' means the lineal descendants of the 
     aboriginal, indigenous, native people of the United States.
       (9) Interagency coordinating group.--The term ``Interagency 
     Coordinating Group'' means the Native Hawaiian Interagency 
     Coordinating Group established under section 6.
       (10) Native hawaiian.--
       (A) In general.--Subject to subparagraph (B), for the 
     purpose of establishing the roll authorized under section 
     7(c)(1) and before the reaffirmation of the special political 
     and legal relationship between the United States and the 
     Native Hawaiian governing entity, the term ``Native 
     Hawaiian'' means--
       (i) an individual who is 1 of the indigenous, native people 
     of Hawaii and who is a direct lineal descendant of the 
     aboriginal, indigenous, native people who--

       (I) resided in the islands that now comprise the State of 
     Hawaii on or before January 1, 1893; and
       (II) occupied and exercised sovereignty in the Hawaiian 
     archipelago, including the area that now constitutes the 
     State of Hawaii; or

       (ii) an individual who is 1 of the indigenous, native 
     people of Hawaii and who was eligible in 1921 for the 
     programs authorized by the Hawaiian Homes Commission Act (42 
     Stat. 108, chapter 42) or a direct lineal descendant of that 
     individual.
       (B) No effect on other definitions.--Nothing in this 
     paragraph affects the definition of the term ``Native 
     Hawaiian'' under any other Federal or State law (including a 
     regulation).
       (11) Native hawaiian governing entity.--The term ``Native 
     Hawaiian Governing Entity'' means the governing entity 
     organized by the Native Hawaiian people pursuant to this Act.
       (12) Native hawaiian program or service.--The term ``Native 
     Hawaiian program or service'' means any program or service 
     provided to Native Hawaiians because of their status as 
     Native Hawaiians.
       (13) Office.--The term ``Office'' means the United States 
     Office for Native Hawaiian Relations established by section 
     5(a).
       (14) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (15) Special political and legal relationship.--The term 
     ``special political and legal relationship'' shall refer, 
     except where differences are specifically indicated elsewhere 
     in the Act, to the type of and nature of relationship the 
     United States has with the several federally recognized 
     Indian tribes.

     SEC. 4. UNITED STATES POLICY AND PURPOSE.

       (a) Policy.--The United States reaffirms that--
       (1) Native Hawaiians are a unique and distinct, indigenous, 
     native people with whom the United States has a special 
     political and legal relationship;
       (2) the United States has a special political and legal 
     relationship with the Native Hawaiian people which includes 
     promoting the welfare of Native Hawaiians;
       (3) Congress possesses the authority under the 
     Constitution, including but not limited to Article I, section 
     8, clause 3, to enact legislation to address the conditions 
     of Native Hawaiians and has exercised this authority through 
     the enactment of--
       (A) the Hawaiian Homes Commission Act, 1920 (42 Stat. 108, 
     chapter 42);
       (B) the Act entitled ``An Act to provide for the admission 
     of the State of Hawaii into the Union'', approved March 18, 
     1959 (Public Law 86-3, 73 Stat. 4); and
       (C) more than 150 other Federal laws addressing the 
     conditions of Native Hawaiians;
       (4) Native Hawaiians have--
       (A) an inherent right to autonomy in their internal 
     affairs;
       (B) an inherent right of self-determination and self-
     governance;
       (C) the right to reorganize a Native Hawaiian governing 
     entity; and
       (D) the right to become economically self-sufficient; and
       (5) the United States shall continue to engage in a process 
     of reconciliation and political relations with the Native 
     Hawaiian people.
       (b) Purpose.--The purpose of this Act is to provide a 
     process for the reorganization of the single Native Hawaiian 
     governing entity and the reaffirmation of the special 
     political and legal relationship between the United States 
     and that Native Hawaiian governing entity for purposes of 
     continuing a government-to-government relationship.

     SEC. 5. UNITED STATES OFFICE FOR NATIVE HAWAIIAN RELATIONS.

       (a) Establishment.--There is established within the Office 
     of the Secretary, the United States Office for Native 
     Hawaiian Relations.
       (b) Duties.--The Office shall--
       (1) continue the process of reconciliation with the Native 
     Hawaiian people in furtherance of the Apology Resolution;
       (2) upon the reaffirmation of the special political and 
     legal relationship between the single Native Hawaiian 
     governing entity and the United States, effectuate and 
     coordinate the special political and legal relationship 
     between the Native Hawaiian governing entity and the United 
     States through the Secretary, and with all other Federal 
     agencies;
       (3) fully integrate the principle and practice of 
     meaningful, regular, and appropriate

[[Page 1411]]

     consultation with the Native Hawaiian governing entity by 
     providing timely notice to, and consulting with, the Native 
     Hawaiian people and the Native Hawaiian governing entity 
     before taking any actions that may have the potential to 
     significantly affect Native Hawaiian resources, rights, or 
     lands;
       (4) consult with the Interagency Coordinating Group, other 
     Federal agencies, and the State of Hawaii on policies, 
     practices, and proposed actions affecting Native Hawaiian 
     resources, rights, or lands; and
       (5) prepare and submit to the Committee on Indian Affairs 
     and the Committee on Energy and Natural Resources of the 
     Senate and the Committee on Resources of the House of 
     Representatives an annual report detailing the activities of 
     the Interagency Coordinating Group that are undertaken with 
     respect to the continuing process of reconciliation and to 
     effect meaningful consultation with the Native Hawaiian 
     governing entity and providing recommendations for any 
     necessary changes to Federal law or regulations promulgated 
     under the authority of Federal law.
       (c) Applicability to Department of Defense.--This section 
     shall have no applicability to the Department of Defense or 
     to any agency or component of the Department of Defense, but 
     the Secretary of Defense may designate 1 or more officials as 
     liaison to the Office.

     SEC. 6. NATIVE HAWAIIAN INTERAGENCY COORDINATING GROUP.

       (a) Establishment.--In recognition that Federal programs 
     authorized to address the conditions of Native Hawaiians are 
     largely administered by Federal agencies other than the 
     Department of the Interior, there is established an 
     interagency coordinating group to be known as the ``Native 
     Hawaiian Interagency Coordinating Group''.
       (b) Composition.--The Interagency Coordinating Group shall 
     be composed of officials, to be designated by the President, 
     from--
       (1) each Federal agency that administers Native Hawaiian 
     programs, establishes or implements policies that affect 
     Native Hawaiians, or whose actions may significantly or 
     uniquely impact Native Hawaiian resources, rights, or lands; 
     and
       (2) the Office.
       (c) Lead Agency.--
       (1) In general.--The Department of the Interior shall serve 
     as the lead agency of the Interagency Coordinating Group.
       (2) Meetings.--The Secretary shall convene meetings of the 
     Interagency Coordinating Group.
       (d) Duties.--The Interagency Coordinating Group shall--
       (1) coordinate Federal programs and policies that affect 
     Native Hawaiians or actions by any agency or agencies of the 
     Federal Government that may significantly or uniquely affect 
     Native Hawaiian resources, rights, or lands;
       (2) consult with the Native Hawaiian governing entity, 
     through the coordination referred to in section 6(d)(1), but 
     the consultation obligation established in this provision 
     shall apply only after the satisfaction of all of the 
     conditions referred to in section 7(c)(6); and
       (3) ensure the participation of each Federal agency in the 
     development of the report to Congress authorized in section 
     5(b)(5).
       (e) Applicability to Department of Defense.--This section 
     shall have no applicability to the Department of Defense or 
     to any agency or component of the Department of Defense, but 
     the Secretary of Defense may designate 1 or more officials as 
     liaison to the Interagency Coordinating Group.

     SEC. 7. PROCESS FOR THE REORGANIZATION OF THE NATIVE HAWAIIAN 
                   GOVERNING ENTITY AND THE REAFFIRMATION OF THE 
                   SPECIAL POLITICAL AND LEGAL RELATIONSHIP 
                   BETWEEN THE UNITED STATES AND THE NATIVE 
                   HAWAIIAN GOVERNING ENTITY.

       (a) Recognition of the Native Hawaiian Governing Entity.--
     The right of the Native Hawaiian people to reorganize the 
     single Native Hawaiian governing entity to provide for their 
     common welfare and to adopt appropriate organic governing 
     documents is recognized by the United States.
       (b) Commission.--
       (1) In general.--There is authorized to be established a 
     Commission to be composed of 9 members for the purposes of--
       (A) preparing and maintaining a roll of the adult members 
     of the Native Hawaiian community who elect to participate in 
     the reorganization of the single Native Hawaiian governing 
     entity; and
       (B) certifying that the adult members of the Native 
     Hawaiian community proposed for inclusion on the roll meet 
     the definition of Native Hawaiian in section 3(10).
       (2) Membership.--
       (A) Appointment.--
       (i) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall appoint the 
     members of the Commission in accordance with subparagraph 
     (B).
       (ii) Consideration.--In making an appointment under clause 
     (i), the Secretary may take into consideration a 
     recommendation made by any Native Hawaiian organization.
       (B) Requirements.--Each member of the Commission shall 
     demonstrate, as determined by the Secretary--
       (i) not less than 10 years of experience in the study and 
     determination of Native Hawaiian genealogy; and
       (ii) an ability to read and translate into English 
     documents written in the Hawaiian language.
       (C) Vacancies.--A vacancy on the Commission--
       (i) shall not affect the powers of the Commission; and
       (ii) shall be filled in the same manner as the original 
     appointment.
       (3) Expenses.--Each member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (4) Duties.--The Commission shall--
       (A) prepare and maintain a roll of the adult members of the 
     Native Hawaiian community who elect to participate in the 
     reorganization of the Native Hawaiian governing entity; and
       (B) certify that each of the adult members of the Native 
     Hawaiian community proposed for inclusion on the roll meets 
     the definition of Native Hawaiian in section 3(10).
       (5) Staff.--
       (A) In general.--The Commission may, without regard to the 
     civil service laws (including regulations), appoint and 
     terminate an executive director and such other additional 
     personnel as are necessary to enable the Commission to 
     perform the duties of the Commission.
       (B) Compensation.--
       (i) In general.--Except as provided in clause (ii), the 
     Commission may fix the compensation of the executive director 
     and other personnel without regard to the provisions of 
     chapter 51 and subchapter III of chapter 53 of title 5, 
     United States Code, relating to classification of positions 
     and General Schedule pay rates.
       (ii) Maximum rate of pay.--The rate of pay for the 
     executive director and other personnel shall not exceed the 
     rate payable for level V of the Executive Schedule under 
     section 5316 of title 5, United States Code.
       (6) Detail of federal government employees.--
       (A) In general.--An employee of the Federal Government may 
     be detailed to the Commission without reimbursement.
       (B) Civil service status.--The detail of the employee shall 
     be without interruption or loss of civil service status or 
     privilege.
       (7) Procurement of temporary and intermittent services.--
     The Commission may procure temporary and intermittent 
     services in accordance with section 3109(b) of title 5, 
     United States Code, at rates for individuals that do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of that title.
       (8) Expiration.--The Secretary shall dissolve the 
     Commission upon the reaffirmation of the special political 
     and legal relationship between the Native Hawaiian governing 
     entity and the United States.
       (c) Process for the Reorganization of the Native Hawaiian 
     Governing Entity.--
       (1) Roll.--
       (A) Contents.--The roll shall include the names of the 
     adult members of the Native Hawaiian community who elect to 
     participate in the reorganization of the Native Hawaiian 
     governing entity and are certified to be Native Hawaiian as 
     defined in section 3(10) by the Commission.
       (B) Formation of roll.--Each adult member of the Native 
     Hawaiian community who elects to participate in the 
     reorganization of the Native Hawaiian governing entity shall 
     submit to the Commission documentation in the form 
     established by the Commission that is sufficient to enable 
     the Commission to determine whether the individual meets the 
     definition of Native Hawaiian in section 3(10).
       (C) Documentation.--The Commission shall--
       (i) identify the types of documentation that may be 
     submitted to the Commission that would enable the Commission 
     to determine whether an individual meets the definition of 
     Native Hawaiian in section 3(10);
       (ii) establish a standard format for the submission of 
     documentation; and
       (iii) publish information related to clauses (i) and (ii) 
     in the Federal Register.
       (D) Consultation.--In making determinations that each of 
     the adult members of the Native Hawaiian community proposed 
     for inclusion on the roll meets the definition of Native 
     Hawaiian in section 3(10), the Commission may consult with 
     Native Hawaiian organizations, agencies of the State of 
     Hawaii including but not limited to the Department of 
     Hawaiian Home Lands, the Office of Hawaiian Affairs, and the 
     State Department of Health, and other entities with expertise 
     and experience in the determination of Native Hawaiian 
     ancestry and lineal descendancy.
       (E) Certification and submittal of roll to secretary.--The 
     Commission shall--
       (i) submit the roll containing the names of the adult 
     members of the Native Hawaiian community who meet the 
     definition of Native Hawaiian in section 3(10) to the 
     Secretary within two years from the date on which the 
     Commission is fully composed; and
       (ii) certify to the Secretary that each of the adult 
     members of the Native Hawaiian

[[Page 1412]]

     community proposed for inclusion on the roll meets the 
     definition of Native Hawaiian in section 3(10).
       (F) Publication.--Upon certification by the Commission to 
     the Secretary that those listed on the roll meet the 
     definition of Native Hawaiian in section 3(10), the Secretary 
     shall publish the roll in the Federal Register.
       (G) Appeal.--The Secretary may establish a mechanism for an 
     appeal for any person whose name is excluded from the roll 
     who claims to meet the definition of Native Hawaiian in 
     section 3(10) and to be 18 years of age or older.
       (H) Publication; update.--The Secretary shall--
       (i) publish the roll regardless of whether appeals are 
     pending;
       (ii) update the roll and the publication of the roll on the 
     final disposition of any appeal; and
       (iii) update the roll to include any Native Hawaiian who 
     has attained the age of 18 and who has been certified by the 
     Commission as meeting the definition of Native Hawaiian in 
     section 3(10) after the initial publication of the roll or 
     after any subsequent publications of the roll.
       (I) Failure to act.--If the Secretary fails to publish the 
     roll, not later than 90 days after the date on which the roll 
     is submitted to the Secretary, the Commission shall publish 
     the roll notwithstanding any order or directive issued by the 
     Secretary or any other official of the Department of the 
     Interior to the contrary.
       (J) Effect of publication.--The publication of the initial 
     and updated roll shall serve as the basis for the eligibility 
     of adult members of the Native Hawaiian community whose names 
     are listed on those rolls to participate in the 
     reorganization of the Native Hawaiian governing entity.
       (2) Organization of the native hawaiian interim governing 
     council.--
       (A) Organization.--The adult members of the Native Hawaiian 
     community listed on the roll published under this section 
     may--
       (i) develop criteria for candidates to be elected to serve 
     on the Native Hawaiian Interim Governing Council;
       (ii) determine the structure of the Council; and
       (iii) elect members from individuals listed on the roll 
     published under this subsection to the Council.
       (B) Powers.--
       (i) In general.--The Council--

       (I) may represent those listed on the roll published under 
     this section in the implementation of this Act; and
       (II) shall have no powers other than powers given to the 
     Council under this Act.

       (ii) Funding.--The Council may enter into a contract with, 
     or obtain a grant from, any Federal or State agency to carry 
     out clause (iii).
       (iii) Activities.--

       (I) In general.--The Council may conduct a referendum among 
     the adult members of the Native Hawaiian community listed on 
     the roll published under this subsection for the purpose of 
     determining the proposed elements of the organic governing 
     documents of the Native Hawaiian governing entity, including 
     but not limited to--

       (aa) the proposed criteria for citizenship of the Native 
     Hawaiian governing entity;
       (bb) the proposed powers and authorities to be exercised by 
     the Native Hawaiian governing entity, as well as the proposed 
     privileges and immunities of the Native Hawaiian governing 
     entity;
       (cc) the proposed civil rights and protection of the rights 
     of the citizens of the Native Hawaiian governing entity and 
     all persons affected by the exercise of governmental powers 
     and authorities of the Native Hawaiian governing entity; and
       (dd) other issues determined appropriate by the Council.

       (II) Development of organic governing documents.--Based on 
     the referendum, the Council may develop proposed organic 
     governing documents for the Native Hawaiian governing entity.
       (III) Distribution.--The Council may distribute to all 
     adult members of the Native Hawaiian community listed on the 
     roll published under this subsection--

       (aa) a copy of the proposed organic governing documents, as 
     drafted by the Council; and
       (bb) a brief impartial description of the proposed organic 
     governing documents;

       (IV) Elections.--The Council may hold elections for the 
     purpose of ratifying the proposed organic governing 
     documents, and on certification of the organic governing 
     documents by the Secretary in accordance with paragraph (4), 
     hold elections of the officers of the Native Hawaiian 
     governing entity pursuant to paragraph (5).

       (3) Submittal of organic governing documents.--Following 
     the reorganization of the Native Hawaiian governing entity 
     and the adoption of organic governing documents, the Council 
     shall submit the organic governing documents of the Native 
     Hawaiian governing entity to the Secretary.
       (4) Certifications.--
       (A) In general.--Within the context of the future 
     negotiations to be conducted under the authority of section 
     8(b)(1), and the subsequent actions by the Congress and the 
     State of Hawaii to enact legislation to implement the 
     agreements of the 3 governments, not later than 90 days after 
     the date on which the Council submits the organic governing 
     documents to the Secretary, the Secretary shall certify that 
     the organic governing documents--
       (i) establish the criteria for citizenship in the Native 
     Hawaiian governing entity;
       (ii) were adopted by a majority vote of the adult members 
     of the Native Hawaiian community whose names are listed on 
     the roll published by the Secretary;
       (iii) provide authority for the Native Hawaiian governing 
     entity to negotiate with Federal, State, and local 
     governments, and other entities;
       (iv) provide for the exercise of governmental authorities 
     by the Native Hawaiian governing entity, including any 
     authorities that may be delegated to the Native Hawaiian 
     governing entity by the United States and the State of Hawaii 
     following negotiations authorized in section 8(b)(1) and the 
     enactment of legislation to implement the agreements of the 3 
     governments;
       (v) prevent the sale, disposition, lease, or encumbrance of 
     lands, interests in lands, or other assets of the Native 
     Hawaiian governing entity without the consent of the Native 
     Hawaiian governing entity;
       (vi) provide for the protection of the civil rights of the 
     citizens of the Native Hawaiian governing entity and all 
     persons affected by the exercise of governmental powers and 
     authorities by the Native Hawaiian governing entity; and
       (vii) are consistent with applicable Federal law and the 
     special political and legal relationship between the United 
     States and the indigenous, native people of the United 
     States; provided that the provisions of Public Law 103-454, 
     25 U.S.C. 479a, shall not apply.
       (B) Resubmission in case of noncompliance with the 
     requirements of subparagraph (a).--
       (i) Resubmission by the secretary.--If the Secretary 
     determines that the organic governing documents, or any part 
     of the documents, do not meet all of the requirements set 
     forth in subparagraph (A), the Secretary shall resubmit the 
     organic governing documents to the Council, along with a 
     justification for each of the Secretary's findings as to why 
     the provisions are not in full compliance.
       (ii) Amendment and resubmission of organic governing 
     documents.--If the organic governing documents are 
     resubmitted to the Council by the Secretary under clause (i), 
     the Council shall--

       (I) amend the organic governing documents to ensure that 
     the documents meet all the requirements set forth in 
     subparagraph (A); and
       (II) resubmit the amended organic governing documents to 
     the Secretary for certification in accordance with this 
     paragraph.

       (C) Certifications deemed made.--The certifications under 
     paragraph (4) shall be deemed to have been made if the 
     Secretary has not acted within 90 days after the date on 
     which the Council has submitted the organic governing 
     documents of the Native Hawaiian governing entity to the 
     Secretary.
       (5) Elections.--On completion of the certifications by the 
     Secretary under paragraph (4), the Council may hold elections 
     of the officers of the Native Hawaiian governing entity.
       (6) Reaffirmation.--Notwithstanding any other provision of 
     law, upon the certifications required under paragraph (4) and 
     the election of the officers of the Native Hawaiian governing 
     entity, the special political and legal relationship between 
     the United States and the Native Hawaiian governing entity is 
     hereby reaffirmed and the United States extends Federal 
     recognition to the Native Hawaiian governing entity as the 
     representative governing body of the Native Hawaiian people.

     SEC. 8. REAFFIRMATION OF DELEGATION OF FEDERAL AUTHORITY; 
                   NEGOTIATIONS; CLAIMS.

       (a) Reaffirmation.--The delegation by the United States of 
     authority to the State of Hawaii to address the conditions of 
     the indigenous, native people of Hawaii contained in the Act 
     entitled ``An Act to provide for the admission of the State 
     of Hawaii into the Union'' approved March 18, 1959 (Public 
     Law 86-3, 73 Stat. 4), is reaffirmed.
       (b) Negotiations.--
       (1) In general.--Upon the reaffirmation of the special 
     political and legal relationship between the United States 
     and the Native Hawaiian governing entity, the United States 
     and the State of Hawaii may enter into negotiations with the 
     Native Hawaiian governing entity designed to lead to an 
     agreement addressing such matters as--
       (A) the transfer of lands, natural resources, and other 
     assets, and the protection of existing rights related to such 
     lands or resources;
       (B) the exercise of governmental authority over any 
     transferred lands, natural resources, and other assets, 
     including land use;
       (C) the exercise of civil and criminal jurisdiction;
       (D) the delegation of governmental powers and authorities 
     to the Native Hawaiian governing entity by the United States 
     and the State of Hawaii;
       (E) any residual responsibilities of the United States and 
     the State of Hawaii; and

[[Page 1413]]

       (F) grievances regarding assertions of historical wrongs 
     committed against Native Hawaiians by the United States or by 
     the State of Hawaii.
       (2) Amendments to existing laws.--Upon agreement on any 
     matter or matters negotiated with the United States, the 
     State of Hawaii, and the Native Hawaiian governing entity, 
     the parties are authorized to submit--
       (A) to the Committee on Indian Affairs of the Senate, the 
     Committee on Energy and Natural Resources of the Senate, and 
     the Committee on Resources of the House of Representatives, 
     recommendations for proposed amendments to Federal law that 
     will enable the implementation of agreements reached between 
     the 3 governments; and
       (B) to the Governor and the legislature of the State of 
     Hawaii, recommendations for proposed amendments to State law 
     that will enable the implementation of agreements reached 
     between the 3 governments.
       (3) Governmental authority and power.--Any governmental 
     authority or power to be exercised by the Native Hawaiian 
     governing entity which is currently exercised by the State or 
     Federal Governments shall be exercised by the Native Hawaiian 
     governing entity only as agreed to in negotiations pursuant 
     to section 8(b)(1) of this Act and beginning on the date on 
     which legislation to implement such agreement has been 
     enacted by the United States Congress, when applicable, and 
     by the State of Hawaii, when applicable. This includes any 
     required modifications to the Hawaii State Constitution in 
     accordance with the Hawaii Revised Statutes.
       (c) Claims.--
       (1) Disclaimers.--Nothing in this Act--
       (A) creates a cause of action against the United States or 
     any other entity or person;
       (B) alters existing law, including existing case law, 
     regarding obligations on the part of the United States or the 
     State of Hawaii with regard to Native Hawaiians or any Native 
     Hawaiian entity;
       (C) creates obligations that did not exist in any source of 
     Federal law prior to the date of enactment of this Act; or
       (D) establishes authority for the recognition of Native 
     Hawaiian groups other than the single Native Hawaiian 
     Governing Entity.
       (2) Federal sovereign immunity.--
       (A) Specific purpose.--Nothing in this Act is intended to 
     create or allow to be maintained in any court any potential 
     breach-of-trust actions, land claims, resource-protection or 
     resource-management claims, or similar types of claims 
     brought by or on behalf of Native Hawaiians or the Native 
     Hawaiian governing entity for equitable, monetary, or 
     Administrative Procedure Act-based relief against the United 
     States or the State of Hawaii, whether or not such claims 
     specifically assert an alleged breach of trust, call for an 
     accounting, seek declaratory relief, or seek the recovery of 
     or compensation for lands once held by Native Hawaiians.
       (B) Establishment and retention of sovereign immunity.--To 
     effectuate the ends expressed in section 8(c)(1) and 
     8(c)(2)(A), and notwithstanding any other provision of 
     Federal law, the United States retains its sovereign immunity 
     to any claim that existed prior to the enactment of this Act 
     (including, but not limited to, any claim based in whole or 
     in part on past events), and which could be brought by Native 
     Hawaiians or any Native Hawaiian governing entity. Nor shall 
     any preexisting waiver of sovereign immunity (including, but 
     not limited to, waivers set forth in chapter 7 of part I of 
     title 5, United States Code, and sections 1505 and 2409a of 
     title 28, United States Code) be applicable to any such 
     claims. This complete retention or reclaiming of sovereign 
     immunity also applies to every claim that might attempt to 
     rely on this Act for support, without regard to the source of 
     law under which any such claim might be asserted.
       (C) Effect.--It is the general effect of section 8(c)(2)(B) 
     that any claims that may already have accrued and might be 
     brought against the United States, including any claims of 
     the types specifically referred to in section 8(c)(2)(A), 
     along with both claims of a similar nature and claims arising 
     out of the same nucleus of operative facts as could give rise 
     to claims of the specific types referred to in section 
     8(c)(2)(A), be rendered nonjusticiable in suits brought by 
     plaintiffs other than the Federal Government.
       (3) State sovereignty immunity.--
       (A) Notwithstanding any other provision of Federal law, the 
     State retains its sovereign immunity, unless waived in accord 
     with State law, to any claim, established under any source of 
     law, regarding Native Hawaiians, that existed prior to the 
     enactment of this Act.
       (B) Nothing in this Act shall be construed to constitute an 
     override pursuant to section 5 of the Fourteenth Amendment of 
     State sovereign immunity held under the Eleventh Amendment.

     SEC. 9. APPLICABILITY OF CERTAIN FEDERAL LAWS.

       (a) Indian Gaming Regulatory Act.--
       (1) The Native Hawaiian governing entity and Native 
     Hawaiians may not conduct gaming activities as a matter of 
     claimed inherent authority or under the authority of any 
     Federal law, including the Indian Gaming Regulatory Act (25 
     U.S.C. 2701 et seq.) or under any regulations thereunder 
     promulgated by the Secretary or the National Indian Gaming 
     Commission.
       (2) The foregoing prohibition in section 9(a)(1) on the use 
     of Indian Gaming Regulatory Act and inherent authority to 
     game apply regardless of whether gaming by Native Hawaiians 
     or the Native Hawaiian governing entity would be located on 
     land within the State of Hawaii or within any other State or 
     Territory of the United States.
       (b) Taking Land Into Trust.--Notwithstanding any other 
     provision of law, including but not limited to part 151 of 
     title 25, Code of Federal Regulations, the Secretary shall 
     not take land into trust on behalf of individuals or groups 
     claiming to be Native Hawaiian or on behalf of the native 
     Hawaiian governing entity.
       (c) Real Property Transfers.--The Indian Trade and 
     Intercourse Act (25 U.S.C. 177), does not, has never, and 
     will not apply after enactment to lands or lands transfers 
     present, past, or future, in the State of Hawaii. If despite 
     the expression of this intent herein, a court were to 
     construe the Trade and Intercourse Act to apply to lands or 
     land transfers in Hawaii before the date of enactment of this 
     Act, then any transfer of land or natural resources located 
     within the State of Hawaii prior to the date of enactment of 
     this Act, by or on behalf of the Native Hawaiian people, or 
     individual Native Hawaiians, shall be deemed to have been 
     made in accordance with the Indian Trade and Intercourse Act 
     and any other provision of Federal law that specifically 
     applies to transfers of land or natural resources from, by, 
     or on behalf of an Indian tribe, Native Hawaiians, or Native 
     Hawaiian entities.
       (d) Single Governing Entity.--This Act will result in the 
     recognition of the single Native Hawaiian governing entity. 
     Additional Native Hawaiian groups shall not be eligible for 
     acknowledgment pursuant to the Federal Acknowledgment Process 
     set forth in part 83 of title 25 of the Code of Federal 
     Regulations or any other administrative acknowledgment or 
     recognition process.
       (e) Jurisdiction.--Nothing in this Act alters the civil or 
     criminal jurisdiction of the United States or the State of 
     Hawaii over lands and persons within the State of Hawaii. The 
     status quo of Federal and State jurisdiction can change only 
     as a result of further legislation, if any, enacted after the 
     conclusion, in relevant part, of the negotiation process 
     established in section 8(b).
       (f) Indian Programs and Services.--Notwithstanding section 
     7(c)(6), because of the eligibility of the Native Hawaiian 
     governing entity and its citizens for Native Hawaiian 
     programs and services in accordance with subsection (g), 
     nothing in this Act provides an authorization for eligibility 
     to participate in any Indian program or service to any 
     individual or entity not otherwise eligible for the program 
     or service under applicable Federal law.
       (g) Native Hawaiian Programs and Services.--The Native 
     Hawaiian governing entity and its citizens shall be eligible 
     for Native Hawaiian programs and services to the extent and 
     in the manner provided by other applicable laws.

     SEC. 10. SEVERABILITY.

       If any section or provision of this Act is held invalid, it 
     is the intent of Congress that the remaining sections or 
     provisions shall continue in full force and effect.

     SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this Act.

  Mr. INOUYE. Mr. President, I am pleased to join my colleague, Senator 
Akaka, as a cosponsor of the Native Hawaiian Government Reorganization 
Act of 2007.
  During the 109th Congress, the Administration expressed concerns with 
this legislation that stem from its experience with Indian tribes. The 
history of the Native Hawaiians and their treatment by the United 
States is similar to that of Indian tribes and Alaska Natives. I want 
to commend the Administration for devoting staff to work with us to 
achieve consensus on mutually agreeable language. I am confident that 
this measure not only addresses the Administration's concerns but also 
the concerns of some of our colleagues.
  Having served on the Indian Affairs Committee for the past 28 years, 
I know that most of our colleagues are more familiar with conditions 
and circumstances in Indian country, and naturally, they bring their 
experience with Indian country to bear in considering this measure, 
which has been pending in the Senate for the past eight years.
  Accordingly, I believe it is important that our colleagues understand 
what this bill seeks to accomplish as well as how it differs from 
legislation affecting Indian country.
  It is a little known fact that beginning in 1910 and since that time, 
the Congress has passed and the President

[[Page 1414]]

has signed into law over 160 Federal laws designed to address the 
conditions of Native Hawaiians.
  Thus, Federal laws which authorize the provision of health care, 
education, housing, and job training and employment services, as well 
as programs to provide for the preservation of the Native Hawaiian 
language, Native language immersion, Native cultural and grave 
protections and repatriation of Native sacred objects have been in 
place for decades.
  The Native Hawaiian programs do not draw upon funding that is 
appropriated for American Indians or Alaska Natives--there are separate 
authorizations for programs that are administered by different Federal 
agencies--not the Bureau of Indian Affairs or the Indian Health 
Service, for instance--and the Native Hawaiian program funds are not 
drawn from the Interior Appropriations Subcommittee account. Thus, they 
have no impact on the funding that is provided for the other 
indigenous, native people of the United States.
  However, unlike the native people residing on the mainland, Native 
Hawaiians have not been able to exercise their rights as Native people 
to self-determination or self-governance because their government was 
overthrown on January 17, 1893.
  This bill would provide a process for the reorganization of the 
Native Hawaiian government and the resumption of a political and legal 
relationship between that government and the government of the United 
States.
  Because the Native Hawaiian government is not an Indian tribe, the 
body of Federal Indian law that would otherwise customarily apply when 
the United States extends Federal recognition to an Indian tribal group 
does not apply.
  Thus, the bill provides authority for a process of negotiations 
amongst the United States, the State of Hawaii, and the reorganized 
Native Hawaiian government to address such matters as the exercise of 
civil and criminal jurisdiction by the respective governments, the 
transfer of land and natural resources and other assets, and the 
exercise of governmental authority over those lands, natural resources 
and other assets.
  Upon reaching agreement, the U.S. Congress and the legislature of the 
State of Hawaii would have to enact legislation implementing the 
agreements of the three governments, including amendments that will 
necessarily have to be made to existing Federal law, such as the Hawaii 
Admissions Act and the Hawaiian Homes Commission Act, and to State law, 
including amendments to the Hawaii State Constitution, before any of 
the new governmental relationships and authorities can take effect.
  That is why concerns which are premised on the manner in which 
Federal Indian law provides for the respective governmental authorities 
of the State governments and Indian tribal governments simply do not 
apply in Hawaii.
  We have every confidence that consistent with the Federal policy for 
over 35 years, the restoration of the rights to self-determination and 
self-governance will enable the Native Hawaiian people, as the direct, 
lineal descendants of the aboriginal, indigenous native people of what 
has become our nation's fiftieth state, to take their rightful place in 
the family of governments that makes up our constitutional system of 
governance.
                                 ______
                                 
      By Mr. WARNER (for himself, Mr. Webb, Mr. Grassley, Mr. Cornyn, 
        Mr. Thune, and Mr. Graham):
  S. 315. A bill to establish a digital and wireless network technology 
program, and for other purposes; to the Committee on Commerce, Science, 
and Transportation.
  Mr. WARNER. Mr. President, I rise today to reintroduce the Minority 
Serving Institution Digital and Wireless Technology Opportunity Act. 
This legislation, which was crafted by Senator Allen and I in years 
past, will provide vital resources to address the technology gap that 
exists at many Minority Serving Institutions, MSIs.
  In the past, Senator Allen took the role of lead sponsor on this 
important bill. With his leadership, this exact legislation has passed 
twice unanimously. Unfortunately, the 109th Congress adjourned before 
the House of Representatives considered the bill. Accordingly, today I 
am privileged to serve as the lead sponsor of this legislation in the 
110th Congress. I am pleased to have my Virginia colleague Senator Jim 
Webb as an original cosponsor of this bill. I hope this important bill 
will soon become law.
  Over 60 percent of all jobs require information technology skills. 
Jobs in the information technology field pay significantly higher 
salaries than jobs in non-information technology fields. At the same 
time, many of our Minority Serving Institutions lack the capital to 
offer assistance to their students to bridge the ``Digital Divide'' 
between students who are able to develop the skills necessary to 
succeed in a technology based economy and those who are not.
  This legislation will establish a grant program for these 
institutions of higher education to bring increased access to 
computers, technology, and the Internet to their student populations. 
Specifically, this legislation authorizes $250 million in Federal 
grants for Minority Serving Institutions to acquire equipment, 
instrumentation, networking capability, hardware and software, digital 
network technology and wireless technology and infrastructure to 
develop and provide educational services. In addition, the grants could 
be used for such activities as campus wiring, equipment upgrades, and 
technology training. Finally, Minority Serving Institutions could use 
these funds to offer their students universal access to campus 
networks, increase connectivity rates, or make infrastructure 
improvements.
  I am proud to say that Virginia is home to five Historically Black 
Colleges and Universities, HBCUs--Norfolk State University, St. Paul's 
College, Virginia Union University, Hampton University, and Virginia 
State University--that are eligible for these technology grants. There 
are over 200 Hispanic Serving Institutions, over 100 Historically Black 
Colleges and Universities and over 30 Tribal Colleges throughout the 
United States.
  Again, in 2005, this bill passed in the Senate by unanimous consent. 
In 2003, this bill passed in the Senate with a roll call vote of 97-0. 
I am pleased to support this legislation, as I have done in the past, 
and I look forward to strengthening the technology provided to students 
at Minority Serving Institutions.
                                 ______
                                 
      By Mr. KOHL (for himself, Mr. Grassley, Mr. Leahy, Mr. Schumer, 
        and Mr. Feingold):
  S. 316. A bill to prohibit brand name drug companies from 
compensating generic drug companies to delay the entry of a generic 
drug into the market; to the Committee on the Judiciary.
  Mr. KOHL. Mr. President, I rise today to introduce the Preserve 
Access to Affordable Generics Act. This legislation will stop one of 
the most egregious tactics used by the brand-name pharmaceutical 
industry to keep generic competitors off the market, leaving consumers 
with unnecessary high drug prices.
  The way it is done is simple--a drug company that holds a patent on a 
blockbuster brand-name drug, pays a generic drug maker off to delay the 
sale of a competing generic product that might dip into their profits. 
The brand name company profits so much by delaying competition that it 
can easily afford to pay off the generic company, leaving consumers the 
big losers who continue to pay unnecessarily high drug prices.
  Last year, the Supreme Court refused to consider an appeal by the 
Federal Trade Commission to reinstate anti-trust charges against a 
brand-name drugs maker. Since the recent court decisions allowing these 
backroom deals, there has been a sharp rise in the number of 
settlements in which brand-name companies pay off generic competitors 
to keep their cheaper drugs off the market. In a report issued last 
year, the FTC found that more than two-thirds of the 10 settlement 
agreements made in 2006 included a pay-off

[[Page 1415]]

from the brand in exchange for a promise by the generic company to 
delay entry into the market.
  The decision by the Supreme Court is a blow to consumers who save 
billions of dollars on generics every year. When brand, name drugs lose 
patent rights, this opens the door for consumers, employers, third-
party payers, and other purchasers to save billions--63 percent on 
average--by using generic versions of these drugs. A recent study 
released earlier this year by Pharmaceutical Care Management 
Association, showed that health plans and consumers could save $26.4 
billion over the next 5 years by using the generic versions of 14 
popular drugs that are scheduled to lose their patent protections 
before 2010.
  Last year, I was successful in including an additional $10 million in 
the fiscal year 07 Agriculture Appropriations bill for the Food and 
Drug Administration's Office of Generic Drugs, an effort to help reduce 
the growing backlog of generic drug applications. The FDA Office of 
Generic Drugs has reported a backlog of more than 800 generic drug 
applications with more applications for new generics being received 
than ever before.
  But even approval by the FDA doesn't always guarantee that consumers 
will have access to these affordable drugs. Brand-name pharmaceutical 
manufacturers have learned to circumvent the Drug Price Competition and 
Patent Term Restoration Act, commonly referred to as Hatch-Waxman, 
using litigation and other means to extend the life of patents and keep 
generics from entering the market Of the six approved first generics 
for LA popular brand-name drugs taken by seniors over the last year, 
only two have actually reached the market, while the others are being 
kept of the shelves by patent disputes.
  We cannot profess to care about the high cost of prescription drugs 
while turning a blind eye to anticompetitive backroom deals between 
brand and generic drug companies. It's time to stop these drug company 
pay-offs that only serve the companies involved and deny consumers to 
affordable generic drugs. I urge my colleagues to join me in this 
effort.
  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. 316

       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 ``Preserve Access to 
     Affordable Generics Act''.

     SEC. 2. CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSES.

       (a) Findings.--The Congress finds that--
       (1) prescription drugs make up 11 percent of the national 
     health care spending but are 1 of the largest and fastest 
     growing health care expenditures;
       (2) 56 percent of all prescriptions dispensed in the United 
     States are generic drugs, yet they account for only 13percent 
     of all expenditures;
       (3) generic drugs, on average, cost 63 percent less than 
     their brand-name counterparts;
       (4) consumers and the health care system would benefit from 
     free and open competition in the pharmaceutical market and 
     the removal of obstacles to the introduction of generic 
     drugs;
       (5) full and free competition in the pharmaceutical 
     industry, and the full enforcement of antitrust law to 
     prevent anticompetitive practices in this industry, will lead 
     to lower prices, greater innovation, and inure to the general 
     benefit of consumers.
       (6) the Federal Trade Commission has determined that some 
     brand name pharmaceutical manufacturers collude with generic 
     drug manufacturers to delay the marketing of competing, low-
     cost, generic drugs;
       (7) collusion by the brand name pharmaceutical 
     manufacturers is contrary to free competition, to the 
     interests of consumers, and to the principles underlying 
     antitrust law;
       (8) in 2005, 2 appellate court decisions reversed the 
     Federal Trade Commission's long-standing position, and upheld 
     settlements that include pay-offs by brand name 
     pharmaceutical manufacturers to generic manufacturers 
     designed to keep generic competition off the market;
       (9) in the 6 months following the March 2005 court 
     decisions, the Federal Trade Commission found there were 
     three settlement agreements in which the generic received 
     compensation and agreed to a restriction on its ability to 
     market the product;
       (10) the FTC found that more than \2/3\ of the 
     approximately ten settlement agreements made in 2006 include 
     a pay-off from the brand in exchange for a promise by the 
     generic company to delay entry into the market; and
       (11) settlements which include a payment from a brand name 
     manufacturer to a generic manufacturer to delay entry by 
     generic drugs are anti-competitive and contrary to the 
     interests of consumers.
       (b) Purposes.--The purposes of this Act are--
       (1) to enhance competition in the pharmaceutical market by 
     prohibiting anticompetitive agreements and collusion between 
     brand name and generic drug manufacturers intended to keep 
     generic drugs off the market;
       (2) to support the purpose and intent of antitrust law by 
     prohibiting anticompetitive agreements and collusion in the 
     pharmaceutical industry; and
       (3) to clarify the law to prohibit payments from brand name 
     to generic drug manufacturers with the purpose to prevent or 
     delay the entry of competition from generic drugs.

     SEC. 3. UNLAWFUL COMPENSATION FOR DELAY.

       The Clayton Act (15 U.S.C. 12 et seq.) is amended--
       (1) by redesignating section 25 as section 29; and
       (2) by inserting after section 27 the following:

     ``SEC. 28. UNLAWFUL INTERFERENCE WITH GENERIC MARKETING.

       ``(a) It shall be unlawful under this Act for any person, 
     in connection with the sale of a drug product, to directly or 
     indirectly be a party to any agreement resolving or settling 
     a patent infringement claim which--
       ``(1) an ANDA filer receives anything of value; and
       ``(2) the ANDA filer agrees not to research, develop, 
     manufacture, market, or sell the ANDA product for any period 
     of time.
       ``(b) Nothing in this section shall prohibit a resolution 
     or settlement of patent infringement claim in which the value 
     paid by the NDA holder to the ANDA filer as a part of the 
     resolution or settlement of the patent infringement claim 
     includes no more than the right to market the ANDA product 
     prior to the expiration of the patent that is the basis for 
     the patent infringement claim.
       ``(c) In this section:
       ``(1) The term `agreement' means anything that would 
     constitute an agreement under section 1 of the Sherman Act 
     (15 U.S.C. 1) or section 5 of the Federal Trade Commission 
     Act (15 U.S.C. 45).
       ``(2) The term `agreement resolving or settling a patent 
     infringement claim' includes, any agreement that is 
     contingent upon, provides a contingent condition for, or is 
     otherwise related to the resolution or settlement of the 
     claim.
       ``(3) The term `ANDA' means an abbreviated new drug 
     application, as defined under section 505(j) of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 355(j)).
       ``(4) The term `ANDA filer' means a party who has filed an 
     ANDA with the Federal Drug Administration.
       ``(5) The term `ANDA product' means the product to be 
     manufactured under the ANDA that is the subject of the patent 
     infringement claim.
       ``(6) The term `drug product' means a finished dosage form 
     (e.g., tablet, capsule, or solution) that contains a drug 
     substance, generally, but not necessarily, in association 
     with 1 or more other ingredients, as defined in section 
     314.3(b) of title 21, Code of Federal Regulations.
       ``(7) The term `NDA' means a new drug application, as 
     defined under section 505(b) of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 355(b)).
       ``(8) The term `NDA holder' means--
       ``(A) the party that received FDA approval to market a drug 
     product pursuant to an NDA;
       ``(B) a party owning or controlling enforcement of the 
     patent listed in the Approved Drug Products With Therapeutic 
     Equivalence Evaluations (commonly known as the `FDA Orange 
     Book') in connection with the NDA; or
       ``(C) the predecessors, subsidiaries, divisions, groups, 
     and affiliates controlled by, controlling, or under common 
     control with any of the entities described in subclauses (i) 
     and (ii) (such control to be presumed by direct or indirect 
     share ownership of 50 percent or greater), as well as the 
     licensees, licensors, successors, and assigns of each of the 
     entities.
       ``(9) The term `patent infringement' means infringement of 
     any patent or of any filed patent application, extension, 
     reissue, renewal, division, continuation, continuation in 
     part, reexamination, patent term restoration, patents of 
     addition and extensions thereof.
       ``(10) The term `patent infringement claim' means any 
     allegation made to an ANDA filer, whether or not included in 
     a complaint filed with a court of law, that its ANDA or ANDA 
     product may infringe any patent held by, or exclusively 
     licensed to, the NDA holder of the drug product.''.

     SEC. 4. NOTICE AND CERTIFICATION OF AGREEMENTS.

       (a) Notice of All Agreements.--Section 1112(c)(2) of the 
     Medicare Prescription Drug, Improvement, and Modernization 
     Act of 2003 (21 U.S.C. 3155 note) is amended by--

[[Page 1416]]

       (1) striking ``the Commission the'' and inserting ``the 
     Commission (1) the''; and
       (2) inserting before the period at the end the following: 
     ``; and (2) a description of the subject matter of any other 
     agreement the parties enter into within 30 days of an 
     entering into an agreement covered by subsection (a) or 
     (b)''.
       (b) Certification of Agreements.--Section 1112 of such Act 
     is amended by adding at the end the following:
       ``(d) Certification.--The Chief Executive Officer or the 
     company official responsible for negotiating any agreement 
     required to be filed under subsection (a), (b), or (c) shall 
     execute and file with the Assistant Attorney General and the 
     Commission a certification as follows: `I declare under 
     penalty of perjury that the following is true and correct: 
     The materials filed with the Federal Trade Commission and the 
     Department of Justice under section 1112 of subtitle B of 
     title XI of the Medicare Prescription Drug, Improvement, and 
     Modernization Act of 2003, with respect to the agreement 
     referenced in this certification: (1) represent the complete, 
     final, and exclusive agreement between the parties; (2) 
     include any ancillary agreements that are contingent upon, 
     provide a contingent condition for, or are otherwise related 
     to, the referenced agreement; and (3) include written 
     descriptions of any oral agreements, representations, 
     commitments, or promises between the parties that are 
     responsive to subsection (a) or (b) of such section 1112 and 
     have not been reduced to writing.'.''.

     SEC. 5. FORFEITURE OF 180-DAY EXCLUSIVITY PERIOD.

       Section 505 of the Federal Food, Drug and Cosmetic Act (21 
     U.S.C. 355(j)(5)(D)(i)(V)) is amended by inserting ``section 
     28 of the Clayton Act or'' after ``that the agreement has 
     violated''.

     SEC. 6. STUDY BY THE FEDERAL TRADE COMMISSION.

       (a) Requirement for a Study.--Not later than 180 days after 
     the date of enactment of this Act and pursuant to its 
     authority under section 6(a) of the Federal Trade Commission 
     Act (15 U.S.C. 46(a)) and its jurisdiction to prevent unfair 
     methods of competition, the Federal Trade Commission shall 
     conduct a study regarding--
       (1) the prevalence of agreements in patent infringement 
     suits of the type described in section 28 of the Clayton Act, 
     as added by this Act, during the last 5 years;
       (2) the impact of such agreements on competition in the 
     pharmaceutical market; and
       (3) the prevalence in the pharmaceutical industry of other 
     anticompetitive agreements among competitors or other 
     practices that are contrary to the antitrust laws, and the 
     impact of such agreements or practices on competition in the 
     pharmaceutical market during the last 5 years.
       (b) Consultation.--In conducting the study required under 
     this section, the Federal Trade Commission shall consult with 
     the Antitrust Division of the Department of Justice regarding 
     the Justice Department's findings and investigations 
     regarding anticompetitive practices in the pharmaceutical 
     market, including criminal antitrust investigations completed 
     by the Justice Department with respect to practices or 
     conduct in the pharmaceutical market.
       (c) Requirement for a Report.--Not later than 1 year after 
     the date of enactment of this Act, the Federal Trade 
     Commission shall submit a report to the Judiciary Committees 
     of Senate and House of Representatives, and to the Department 
     of Justice regarding the findings of the study conducted 
     under subsection (a). This report shall contain the Federal 
     Trade Commission's recommendation as to whether any amendment 
     to the antitrust laws should be enacted to correct any 
     substantial lessening of competition found during the study.
       (d) Federal Agency Consideration.--Upon receipt of the 
     report required by subsection (c), the Attorney General or 
     the Chairman of the Federal Trade Commission, as appropriate, 
     shall consider whether any additional enforcement action is 
     required to restore competition or prevent a substantial 
     lessening of competition occurring as a result of the conduct 
     or practices that were the subject of the study conducted 
     under subsection (b).

     SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Federal 
     Trade Commission such sums as may be necessary to carry out 
     the provisions of this Act.

  Mr. LEAHY. Mr. President, I am pleased to join Senators Kohl, 
Feingold, Grassley and Schumer in introducing the Preserve Access to 
Affordable Generics Act of 2007. This legislation is a continuation of 
a longstanding, bipartisan effort to provide consumers with more 
choices for medications at lower costs. Better access to affordable 
prescription medication is of vital importance to seniors, families, 
and consumers across the Nation who are struggling to keep up with the 
ever increasing costs of health care.
  This legislation builds on the Drug Competition Act, which I authored 
in 2001 and which became law in 2003 in the Medicare Modernization Act. 
Recently, two Federal courts undermined the intent of this law; the 
legislation we introduce today will address that problem. The Preserve 
Access to Affordable Generics Act will result in lower prescription 
drug costs for all Americans by preventing a pernicious practice in 
which brand-name pharmaceutical companies pay other drug companies not 
to produce and market generic drugs--which can be 80 percent less 
expensive than their brand-name counterparts--as part of private patent 
settlement agreements.
  The Hatch-Waxman Act was intended to facilitate the entry of lower-
cost generic drugs into the market, making medication more affordable, 
while protecting patent rights to foster innovation. It created a 
process, known as the Abbreviated New Drug Application, ANDA, to speed 
approval of generics. Under ANDA, an applicant can receive expedited 
approval from the FDA to market a generic product. An applicant using 
ANDA may certify that the manufacturing of its new drug will either not 
infringe on a previously patented drug on which it is based, or that 
the existing patent is invalid. After certifying an ANDA, the generic 
applicant must give notice to the patent-holder, at which point the 
patent-holder has 45 days to file a patent infringement against the 
applicant.
  More times than not, disputes over an ANDA are resolved through 
private settlements. Unfortunately, the underpinnings of these private 
settlements are becoming more and more questionable; drug companies are 
abusing Hatch-Waxman provisions, and using settlement opportunities to 
limit consumer choices and keep consumer prices artificially high. The 
FTC had been policing these deals to ensure they were not 
anticompetitive until two recent appellate court decisions limited it's 
role.
  Hatch-Waxman created a good framework for promoting innovation while 
speeding the market entry of affordable drugs. The trend of 
anticompetitive agreements between brand-name pharmaceutical companies 
and generic companies to delay entry into the market is a troubling 
abuse of that good law. Some drug firms have colluded to pad their 
profits by forcing consumers to pay higher prices than they would pay 
for lower-cost generics. Congress never intended for brand-name drug 
companies to be able to grease the palms of generic companies by paying 
them not to produce generic medicines.
  Rarely do we have such a clear-cut opportunity as this to remove 
obvious impediments that prevent the marketplace from working as it 
should--to the benefit of consumers. Congress should seize this 
opportunity and enact legislation that plainly makes anticompetitive 
deals, such as those I have outlined, illegal.
  The Preserve Access to Affordable Generics Act will accomplish this 
goal. I look forward to working with my colleagues on both sides of the 
aisle to pass this timely and needed legislation.
                                 ______
                                 
      By Mrs. FEINSTEIN (for herself and Mr. Carper):
  S. 317. A bill to amend the Clean Air Act to establish a program to 
regulate the emission of greenhouse gases from electric utilities; to 
the Committee on Environment and Public Works.
  Mrs. FEINSTEIN. Mr. President, I am pleased to join with Senator 
Carper to introduce the Electric Utility Cap and Trade Act.
  Today, we are introducing the first of five bills to address the 
number one environmental issue facing this planet--global warming.
  This bill establishes a national cap and trade system over the 
electricity sector. It will reduce emissions from this sector by 25 
percent by 2020.
  What distinguishes this bill is that it has the support of 6 major 
energy companies.
  Together, these companies operate in 42 States and produce 
approximately 150,000 megawatts of energy. This is greater than 15 
percent of the U.S. electricity market.
  These companies include, first, Pacific Gas & Electric (PG&E) 
Corporation, which is the parent of Pacific Gas and Electric Company. 
PG&E is California's largest utility and serves approximately 1 in 
every 20 Americans.

[[Page 1417]]

PG&E Corporation currently owns approximately 6,500 megawatts of 
generation.
  Second, Calpine, which operates in 20 States and Canada, generating 
26,000 megawatts of energy.
  Third, Florida Power & Light, which operates in 26 States, generating 
more than 30,000 megawatts.
  Fourth, Entergy, which operates in Arkansas, Louisiana, Mississippi, 
and Texas, generating approximately 30,000 megawatts.
  Fifth, Exelon, which operates in Illinois and Pennsylvania, 
generating 38,000 megawatts of energy.
  Sixth, Public Service Enterprise Group, which is the largest provider 
of energy in New Jersey, generating approximately 15,000 megawatts.
  These companies' support is greatly appreciated, and I think it 
signals a new willingness in the energy industry to seriously tackle 
global warming.
  This bill is just the beginning of a major program. Over the next 
weeks and months, we will also be introducing a cap and trade bill for 
the industrial sector; a bill that increases fuel economy standards by 
ten miles per gallon over the next ten years; a bill to promote bio-
diesel and E-85; and other low carbon fuels and an energy efficiency 
bill modeled after California's program.
  This is an ambitious agenda, but I believe it is the right way to go 
if we are to slow global warming.
  A great debate has raged in the halls of Congress, in academia, and 
in the field over the past two decades.
  At issue were three fundamental questions: First, is the earth 
warming? Second, if so, is the warming caused by human activity? And 
third, can it be stopped?
  Over the past few years, a consensus has been forged. An overwhelming 
body of evidence has been gathered. And, an inescapable conclusion has 
been reached: The earth is warming. The warming is caused by human 
activity, namely the combustion of fossil fuels.
  It cannot be stopped, because carbon dioxide does not dissipate. It 
stays in the atmosphere for 30, 40, or 50 years or more.
  When we pick up the newspaper each day we see the results. We read 
about ice sheets the size of small nations breaking off the ice shelves 
in the Arctic and Antarctic. We read about polar bears committing acts 
of cannibalism, something unknown in recent memory. We read about 
species disappearing, seas rising, coral reefs dying, and glaciers 
melting.
  But, all this dire news does not mean we should throw up our hands 
and do nothing. If we act now, and if we act with purpose, the most 
serious consequences can be averted. Global warming can be contained to 
1-2 degrees Fahrenheit.
  But if we do not act, and temperatures spike by 5 degrees or more, 
the world around us will change forever. There's no going back.
  The question becomes what can we do? I've spent the last year trying 
to answer this question. And the conclusion I've reached is that there 
is no single answer, no silver bullet, no one thing to turn the tide. 
But rather, we need many answers in many different areas.
  And more importantly, we need people of common purpose, working 
together, to find innovative solutions. And that's why we're here 
today.
  As I was searching for answers, I picked up the phone and called PG&E 
Corporation's CEO, Peter Darbee. I said, ``Peter, would you help me out 
on Global Warming legislation?''
  To his immense credit, Peter went back, studied the issue, and said 
``You're right. Something must be done.'' And he's been terrific. He's 
helped at every step of the way.
  It means so much to me that PG&E, Calpine, Florida Power and Light, 
and all the companies that comprise the Clean Energy Group's Clean Air 
Policy Initiative have endorsed the legislation we are introducing 
today.
  This is the most aggressive global warming bill that industry has 
supported to date. And I want to thank the CEOs of these companies 
today for their courage and leadership in taking this step.
  Here's what the bill would do. The bill would establish a cap and 
trade program for the electricity sector, which is the single largest 
piece of the global warming puzzle, accounting for 33 percent of all 
U.S. emissions.
  First, the bill would a cap at 2006 levels in 2011--a 6 percent 
reduction from anticipated levels of greenhouse gases from the electric 
sector.
  In 2015, it would ratchet the cap down to 2001 levels--a 16 percent 
reduction from anticipated levels.
  In 2016, the bill would reduce the cap further to 1 percent below 
2001 levels. And, from 2017 to 2019 it would require additional annual 
1 percent reductions.
  By 2020, emissions would be reduced 25 percent below anticipated 
levels.
  And after that, emissions will be reduced even further--by an 
additional 1.5 percent a year and potentially more, if the EPA, based 
on scientific evidence, believes that more needs to be done to avert 
the most dire consequences of global warming.
  That's the cap.
  The trade part of the bill gives companies flexibility to embrace new 
technologies, encourage innovation, and promote green practices--not 
just in this area, but across the economy.
  As I said, this bill is only one part of the answer. One piece of the 
puzzle.
  Congress has a window of opportunity to act. If we act boldly and 
quickly, then perhaps we can make a difference.
  But if we resort to the feuding which has characterized past 
Congresses, our world will be the poorer for it. I think there is but 
one choice.
  I urge my colleagues to join me in supporting this legislation and I 
ask unanimous consent that the text of the legislation 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. 317

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Electric 
     Utility Cap and Trade Act of 2007''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                     TITLE I--GLOBAL CLIMATE CHANGE

Sec. 101. Global climate change.

                   ``TITLE VII--GLOBAL CLIMATE CHANGE

``Sec. 701. Definitions.

     ``Subtitle A--Stopping and Reversing Greenhouse Gas Emissions

``Sec. 711. Regulations; greenhouse gas tonnage limitation.
``Sec. 712. Scientific review of the safe climate level.
``Sec. 713. Required review of emission reductions needed to maintain 
              the safe climate level.
``Sec. 714. Distribution of allowances between auctions and 
              allocations; nature of allowances.
``Sec. 715. Auction of allowances.
``Sec. 716. Allocation of allowances.
``Sec. 717. Climate Action Trust Fund.
``Sec. 718. Early reduction credits.
``Sec. 719. Recognition and use of international credits.
``Sec. 720. Avoiding significant economic harm.
``Sec. 721. Use and transfer of credits.
``Sec. 722. Compliance and enforcement.

                      ``Subtitle B--Offset Credits

``Sec. 731. Outreach initiative on revenue enhancement for agricultural 
              producers.
``Sec. 732. Offset measurement for agricultural, forestry, wetlands, 
              and other land use-related sequestration projects.
``Sec. 733. Categories of agricultural offset practices.
``Sec. 734. Offset credits from forest management, grazing management, 
              and wetlands management.
``Sec. 735. Offset credits from the avoided conversion of forested land 
              or wetland.
``Sec. 736. Offset credits from greenhouse gas emissions reduction 
              projects.
``Sec. 737. Borrowing at program start-up based on contracts to 
              purchase offset credits.
``Sec. 738. Review and correction of accounting for offset credits.

              ``Subtitle C--National Registry for Credits

``Sec. 741. Establishment and operation of national registry.
``Sec. 742. Monitoring and reporting.

             TITLE II--CLIMATE CHANGE RESEARCH INITIATIVES

Sec. 201. Research grants through National Science Foundation.

[[Page 1418]]

Sec. 202. Abrupt climate change research.
Sec. 203. Development of new measurement technologies.
Sec. 204. Technology development and diffusion.
Sec. 205. Public land.
Sec. 206. Sea level rise from polar ice sheet melting.

                     TITLE I--GLOBAL CLIMATE CHANGE

     SEC. 101. GLOBAL CLIMATE CHANGE.

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

                   ``TITLE VII--GLOBAL CLIMATE CHANGE

     ``SEC. 701. DEFINITIONS.

       ``In this title:
       ``(1) Affected unit.--
       ``(A) In general.--The term `affected unit' means an 
     electric generating facility that--
       ``(i) has a nameplate capacity greater than 25 megawatts;
       ``(ii) combusts greenhouse gas-emitting fuels; and
       ``(iii) generates electricity for sale.
       ``(B) Inclusions.--The term `affected unit' includes--
       ``(i) a cogeneration facility; and
       ``(ii) a facility owned or operated by any instrumentality 
     of--

       ``(I) the Federal Government; or
       ``(II) any State, local, or tribal government.

       ``(2) Afforestation.--The term `afforestation' means the 
     conversion to a forested condition of land that has been in a 
     nonforested condition for at least 15 years.
       ``(3) Allocation.--The term `allocation', with respect to 
     an allowance, means the issuance of an allowance directly to 
     covered units, at no cost, under this title.
       ``(4) Allowance.--The term `allowance' means an 
     authorization under this title to emit 1 metric ton of carbon 
     dioxide (or a carbon dioxide equivalent), as allocated to a 
     covered unit pursuant to section 716.
       ``(5) Carbon dioxide equivalent.--The term `carbon dioxide 
     equivalent' means, with respect to a greenhouse gas, the 
     quantity of the greenhouse gas that makes the same 
     contribution to global warming as 1 metric ton of carbon 
     dioxide, as determined by the Administrator.
       ``(6) Cogeneration facility.--The term `cogeneration 
     facility' means a facility that--
       ``(A) cogenerates steam and electricity; and
       ``(B) supplies, on a net annual basis, to the electric 
     power grid--
       ``(i) more than \1/3\ of the potential electric output 
     capacity of the facility; and
       ``(ii) more than 25 megawatts of electrical output from the 
     facility.
       ``(7) Covered unit.--The term `covered unit' means--
       ``(A) an affected unit;
       ``(B) a nuclear generating unit (including a facility owned 
     or operated by any instrumentality of the Federal Government 
     or of any State, local, or tribal government), but only to 
     the extent of incremental nuclear generation of the unit; and
       ``(C) a renewable energy unit (including a facility owned 
     or operated by any instrumentality of the Federal Government 
     or of any State, local, or tribal government).
       ``(8) Credit.--
       ``(A) In general.--The term `credit' means an authorization 
     under this title to emit greenhouse gases equivalent to 1 
     metric ton of carbon dioxide.
       ``(B) Inclusions.--The term `credit' includes--
       ``(i) an allowance;
       ``(ii) an offset credit;
       ``(iii) an early reduction credit; or
       ``(iv) an international credit.
       ``(9) Early reduction credit.--The term `early reduction 
     credit' means a credit issued under section 718 for a 
     reduction in the quantity of emissions or an increase in 
     sequestration equivalent to 1 metric ton of carbon dioxide.
       ``(10) Fund.--The term `Fund' means the Climate Action 
     Trust Fund established by section 717(a)(1).
       ``(11) Greenhouse gas.--The term `greenhouse gas' means--
       ``(A) carbon dioxide;
       ``(B) methane;
       ``(C) nitrous oxide;
       ``(D) hydrofluorocarbons;
       ``(E) perfluorocarbons; and
       ``(F) sulfur hexafluoride.
       ``(12) Greenhouse gas authorized account representative.--
     The term `greenhouse gas authorized account representative' 
     means, for a covered unit, an individual who is authorized by 
     the owner and operator of the covered unit to represent and 
     legally bind the owner and operator in matters pertaining to 
     this title.
       ``(13) Greenhouse gas-emitting fuel.--
       ``(A) In general.--The term `greenhouse gas-emitting fuel' 
     means any fuel that produces a greenhouse gas as a combustion 
     product.
       ``(B) Inclusions.--The term `greenhouse gas-emitting fuel' 
     includes--
       ``(i) fossil fuels;
       ``(ii) municipal waste;
       ``(iii) industrial waste;
       ``(iv) agricultural waste; and
       ``(v) biomass that is not grown using sustainable 
     techniques.
       ``(C) Exclusion.--The term `greenhouse gas-emitting fuel' 
     does not include biomass that is grown using sustainable 
     techniques.
       ``(14) Incremental nuclear generation.--The term 
     `incremental nuclear generation' means, as determined by the 
     Administrator and measured in megawatt hours, the difference 
     between--
       ``(A) the quantity of electricity generated by a nuclear 
     generating unit in a calendar year; and
       ``(B) the quantity of electricity generated by the nuclear 
     generating unit in calendar year 1990.
       ``(15) Industry sector.--The term `industry sector' means 
     any sector of the economy of a country (including, where 
     applicable, the forestry sector) that is responsible for 
     significant quantities of greenhouse gas emissions.
       ``(16) International credit.--The term `international 
     credit' means a credit recognized for a reduction in the 
     quantity of emissions or an increase in sequestration 
     equivalent to 1 metric ton of carbon dioxide that--
       ``(A) arises from activities outside the United States; and
       ``(B) is authorized for use under section 719.
       ``(17) Invasive species.--The term `invasive species' means 
     a species (including pathogens, seeds, spores, or any other 
     biological material relating to a species) the introduction 
     of which causes or is likely to cause economic or 
     environmental harm or harm to human health.
       ``(18) Land-grant colleges and universities.--The term 
     `land-grant colleges and universities' has the meaning given 
     the term in section 1404 of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3103).
       ``(19) Leakage.--The term `leakage' means an increase in 
     greenhouse gas emissions or a decrease in sequestration of 
     greenhouse gases that is--
       ``(A) outside the area of a project; and
       ``(B) attributable to the project.
       ``(20) Native plant.--The term `native plant' means an 
     indigenous, terrestrial, or aquatic plant species that 
     evolved naturally in an ecosystem.
       ``(21) New affected unit.--The term `new affected unit' 
     means an affected unit that has operated for not more than 3 
     years.
       ``(22) New covered unit.--The term `new covered unit' means 
     a covered unit that has operated for not more than 3 years.
       ``(23) Noxious weed.--The term `noxious weed' means a plant 
     species that is--
       ``(A) characterized by being--
       ``(i) aggressive and difficult to manage;
       ``(ii) poisonous, toxic, parasitic, or a carrier or host of 
     insects or disease representing a serious threat to native 
     species or crops; or
       ``(iii) nonnative to, new to, or not common to, the United 
     States (or a region of the United States); or
       ``(B) otherwise designated as a noxious weed by the 
     Secretary of Agriculture or an appropriate State official.
       ``(24) Nuclear generating unit.--The term `nuclear 
     generating unit' means an electric generating facility that 
     uses nuclear energy to generate electricity for sale.
       ``(25) Offset credit.--The term `offset credit' means a 
     credit issued for an offset project pursuant to subtitle B 
     certifying a reduction in the quantity of emissions or an 
     increase in sequestration equivalent to 1 metric ton of 
     carbon dioxide.
       ``(26) Offset practice.--The term `offset practice' means a 
     practice that--
       ``(A) reduces greenhouse gas emissions or increases 
     sequestration other than by reducing the combustion of 
     greenhouse gas-emitting fuel at an affected unit; and
       ``(B) may be eligible to create an offset credit under this 
     title.
       ``(27) Offset project.--The term `offset project' means a 
     project that reduces greenhouse gas emissions or increases 
     sequestration of carbon dioxide or a carbon dioxide 
     equivalent by a method other than reduction of combustion of 
     greenhouse gas-emitting fuel at an affected unit.
       ``(28) Panel.--The term `Panel' means the Climate Science 
     Advisory Panel established by section 712(b)(1).
       ``(29) Plant material.--The term `plant material' means--
       ``(A) a seed;
       ``(B) a part of a plant; or
       ``(C) a whole plant.
       ``(30) Renewable energy.--The term `renewable energy' means 
     electricity generated from--
       ``(A) wind;
       ``(B) organic waste (excluding incinerated municipal solid 
     waste);
       ``(C) biomass (including anaerobic digestion from farm 
     systems and landfill gas recovery); or
       ``(D) a hydroelectric, geothermal, solar thermal, 
     photovoltaic, tidal, wave, or other nonfossil fuel, 
     nonnuclear source.
       ``(31) Renewable energy unit.--The term `renewable energy 
     unit' means an electric generating unit that exclusively uses 
     renewable energy to generate electricity for sale.
       ``(32) Restoration.--
       ``(A) In general.--The term `restoration' means assisting 
     the recovery of an ecosystem that has been degraded, damaged, 
     or destroyed.
       ``(B) Inclusion.--The term `restoration' includes the 
     reestablishment in an ecosystem of preexisting biotic 
     integrity with respect

[[Page 1419]]

     to species composition and community structure.
       ``(33) Sequestration.--The term `sequestration' means the 
     separation, isolation, or removal of greenhouse gases from 
     the atmosphere.
       ``(34) Sequestration flow.--The term `sequestration flow' 
     means the uptake of greenhouse gases each year from 
     sequestration practices, as calculated under section 732.
       ``(35) Sustainable technique.--The term `sustainable 
     technique' means an agricultural, forestry, or animal 
     husbandry technique that does not result in--
       ``(A) a long-term net depletion of natural resources; or
       ``(B) a net emission of greenhouse gas during the lifecycle 
     of biomass production, harvest, processing, and consumption.
       ``(36) UNFCCC.--The term `UNFCCC' means the United Nations 
     Framework Convention on Climate Change, done at New York on 
     May 9, 1992.

     ``Subtitle A--Stopping and Reversing Greenhouse Gas Emissions

     ``SEC. 711. REGULATIONS; GREENHOUSE GAS TONNAGE LIMITATION.

       ``(a) Regulations.--Not later than 18 months after the date 
     of enactment of this title, the Administrator shall 
     promulgate regulations to establish an allowance trading 
     program to address emissions of greenhouse gases from 
     affected units in the United States.
       ``(b) Greenhouse Gas Tonnage Limitation.--Beginning in 
     calendar year 2011, the annual tonnage limitation for the 
     aggregate quantity of emissions of greenhouse gases from 
     affected units in the United States shall be equal to--
       ``(1) for each of calendar years 2011 through 2014, the 
     aggregate quantity of emissions emitted from affected units 
     in calendar year 2006, as determined by the Administrator 
     based on certified and quality-assured continuous emissions 
     monitoring data for greenhouse gases, or data that the 
     Administrator determines to be of similar reliability for 
     affected units without continuous monitoring systems, 
     reported to the Administrator by affected units in accordance 
     with this subtitle;
       ``(2) for calendar year 2015, the aggregate quantity of 
     emissions emitted from affected units in calendar year 2001, 
     as determined by the Administrator based on certified and 
     quality-assured continuous emissions monitoring data for 
     greenhouse gases, or data that the Administrator determines 
     to be of similar reliability for affected units without 
     continuous monitoring systems, reported to the Administrator 
     by affected units in accordance with this subtitle;
       ``(3) for each of calendar years 2016 through 2019, the 
     aggregate quantity of emissions emitted from affected units 
     during the calendar year that is 1 percent less than the 
     aggregate quantity of emissions from affected units allowed 
     pursuant to this section during the preceding calendar year; 
     and
       ``(4) for calendar year 2020 and each calendar year 
     thereafter, the aggregate quantity of emissions emitted 
     during the calendar year that is 1.5 percent less than the 
     aggregate quantity of emissions from affected units allowed 
     pursuant to this section during the preceding calendar year, 
     except as modified by the Administrator pursuant to section 
     713.

     ``SEC. 712. SCIENTIFIC REVIEW OF THE SAFE CLIMATE LEVEL.

       ``(a) Definition and Objective of Maintaining the Safe 
     Climate Level.--
       ``(1) Finding.--Congress finds that ratification by the 
     Senate in 1992 of the UNFCCC, commitments which were affirmed 
     by the President in 2002, established for the United States 
     an objective of `stabilization of greenhouse gas 
     concentrations in the atmosphere at a level that would 
     prevent dangerous anthropogenic interference with the climate 
     system'.
       ``(2) Definition of safe climate level.--In this section, 
     the term `safe climate level' means the climate level 
     referred to in paragraph (1).
       ``(b) Climate Science Advisory Panel.--
       ``(1) Establishment.--Not later than 270 days after the 
     date of enactment of this title, the Administrator shall 
     establish an advisory panel, to be known as the `Climate 
     Science Advisory Panel'.
       ``(2) Duties.--The Panel shall--
       ``(A) inform Congress and the Administrator of the state of 
     climate science;
       ``(B) not later than December 31, 2011, and not less 
     frequently than every 4 years thereafter, issue a report that 
     is endorsed by at least 7 members of the Panel that describes 
     recommendations for the Administrator, based on the best 
     available information in the fields of climate science, 
     including reports from the Intergovernmental Panel on Climate 
     Change, relating to--
       ``(i) the specific concentration, in parts per million, of 
     all greenhouse gases in carbon dioxide equivalents at or 
     below which constitutes the safe climate level; and
       ``(ii) the projected timeframe for achieving the safe 
     climate level.
       ``(3) Composition.--
       ``(A) In general.--The Panel shall be composed of 8 climate 
     scientists and 3 former Federal officials, as described in 
     subparagraphs (B) through (D).
       ``(B) Climate scientists.--Not later than 270 days after 
     the date of enactment of this title, the President of the 
     National Academy of Sciences shall appoint to serve on the 
     Panel 8 climate scientists from among individuals who--
       ``(i) have earned doctorate degrees;
       ``(ii) have performed research in physical, biological, or 
     social sciences, mathematics, economics, or related fields, 
     with a particular focus on or link to 1 or more aspects of 
     climate science;
       ``(iii) have records of peer-reviewed publications that 
     include--

       ``(I) publications in main-stream, high-quality scientific 
     journals (such as journals associated with respected 
     scientific societies or those with a high impact factor, as 
     determined by the Institute for Scientific Information);
       ``(II) recent publications relating to earth systems, and 
     particularly relating to the climate system; and
       ``(III) a high publication rate, typically at least 2 or 3 
     papers per year; and

       ``(iv) have participated in high-level committees, such as 
     those formed by the National Academy of Sciences or by 
     leading scientific societies.
       ``(C) Restriction.--A majority of climate scientists 
     appointed to the Panel under subparagraph (B) shall be 
     participating, as of the date of appointment to the Panel, in 
     active research in the physical or biological sciences, with 
     a particular focus on or link to 1 or more aspects of climate 
     science.
       ``(D) Federal officials.--
       ``(i) In general.--Subject to clause (ii), the 
     Administrator shall appoint as members of the Panel, the 
     longest-serving former Administrators of the Environmental 
     Protection Agency for each of the 3 most recent former 
     Presidents.
       ``(ii) Timing.--The 3 most recent former Presidents 
     described in clause (i) shall be identified as of the 
     deadline for appointments to the Panel under subparagraph (B) 
     or (E)(ii), whichever is applicable.
       ``(iii) Substitutes.--If a former Administrator described 
     in clause (i) declines appointment, or is unable to serve, as 
     a member of the Panel, the Administrator shall appoint in 
     place of the former Administrator--

       ``(I) the longest-serving former Administrator for the 
     applicable President who agrees to serve; or
       ``(II) if no individual described in subclause (I) accepts 
     appointment as a member of the Panel, the longest-serving 
     Assistant Administrator for Air and Radiation for the 
     applicable President who agrees to serve.

       ``(E) Terms of service and vacancies.--
       ``(i) Terms.--The initial term of a member of the Panel 
     shall be--

       ``(I) to the maximum extent practicable, the period covered 
     by, and extending through the date of issuance of, each 
     report under paragraph (2)(B); but
       ``(II) not longer than 4 years.

       ``(ii) Subsequent panels and reports.--On the issuance of 
     each report under paragraph (2)(B)--

       ``(I) the Panel that submitted the report shall terminate; 
     and
       ``(II)(aa) pursuant to subparagraphs (B) and (C), the 
     President of the National Academy of Sciences shall appoint 
     climate scientists (including at least 3 climate scientists 
     who served as members of the preceding Panel) to serve as 
     members of a new Panel by not later than 15 months after the 
     deadline for issuance of the report under paragraph (2)(B); 
     and
       ``(bb) pursuant to subparagraph (D), the Administrator 
     shall appoint 3 Federal officials as members of the new Panel 
     by the deadline described in item (aa).

       ``(iii) Vacancies.--Vacancies in the membership of the 
     Panel--

       ``(I) shall not affect the power of the remaining members 
     to execute the functions of the Panel; and
       ``(II) shall be filled in the same manner in which the 
     original appointment was made.

       ``(F) Chairperson and vice chairperson.--The Panel shall 
     elect a Chairperson and Vice Chairperson as soon as 
     practicable.
       ``(G) Compensation of members.--A member of the Panel shall 
     be compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the performance of the duties 
     of the Panel.
       ``(H) Travel expenses.--A member of the Panel shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the Panel.
       ``(4) Staff.--
       ``(A) In general.--The Chairperson of the Panel may, 
     without regard to the civil service laws (including 
     regulations), appoint and terminate an executive director and 
     such other additional personnel as are necessary to enable 
     the Panel to perform the duties of the Panel.
       ``(B) Confirmation of executive director.--The employment 
     of an executive director shall be subject to confirmation by 
     the Panel.
       ``(C) Compensation.--
       ``(i) In general.--Except as provided in clause (ii), the 
     Chairperson of the Panel may

[[Page 1420]]

     fix the compensation of the executive director and other 
     personnel without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of title 5, United States Code, 
     relating to classification of positions and General Schedule 
     pay rates.
       ``(ii) Exception.--The rate of pay for the executive 
     director and other personnel shall not exceed the rate 
     payable for level V of the Executive Schedule under section 
     5316 of title 5, United States Code.
       ``(D) Detail of federal government employees.--
       ``(i) In general.--An employee of the Federal Government 
     may be detailed to the staff of the Panel without 
     reimbursement.
       ``(ii) Treatment of detailees.--The detail of the employee 
     shall be without interruption or loss of civil service status 
     or privilege.
       ``(E) Procurement of temporary and intermittent services.--
     The Chairperson or executive director of the Panel may 
     procure temporary and intermittent services in accordance 
     with section 3109(b) of title 5, United States Code, at rates 
     for individuals that do not exceed the daily equivalent of 
     the annual rate of basic pay prescribed for level V of the 
     Executive Schedule under section 5316 of that title.
       ``(5) Hearings.--The Panel may hold such hearings, meet and 
     act at such times and places, take such testimony, and 
     receive such evidence as the Panel considers advisable to 
     carry out this section.
       ``(6) Information from federal agencies.--
       ``(A) In general.--The Panel may secure directly from a 
     Federal agency such information as the Panel considers 
     necessary to carry out this section.
       ``(B) Provision of information.--On request of the 
     Chairperson of the Panel, the head of the agency shall 
     provide the information to the Panel.
       ``(7) Postal services.--The Panel may use the United States 
     mail in the same manner and under the same conditions as 
     other agencies of the Federal Government.

     ``SEC. 713. REQUIRED REVIEW OF EMISSION REDUCTIONS NEEDED TO 
                   MAINTAIN THE SAFE CLIMATE LEVEL.

       ``(a) Review and Determination Regarding Reduction Rate.--
     Not later than December 31, 2015, the Administrator, after 
     providing public notice and opportunity to comment, shall 
     promulgate a final rule pursuant to which the Administrator 
     shall review the reduction rate for greenhouse gas emissions 
     required under section 711(b)(4) and determine--
       ``(1) whether to--
       ``(A) accept the recommendations of the Panel under section 
     712(b)(2)(B) regarding the safe climate level and the 
     timeframe for achieving the safe climate level; or
       ``(B) establish a different safe climate level or 
     timeframe, together with a detailed explanation of the 
     justification of the Administrator for rejection of the 
     recommendations of the Panel; and
       ``(2) whether, in order to achieve the safe climate level 
     within the timeframe described in paragraph (1), the 
     reduction rate under section 711(b)(4) is most accurately 
     characterized as requiring--
       ``(A) the appropriate level of emission reductions;
       ``(B) lesser emission reductions than are necessary; or
       ``(C) greater emission reductions than are necessary.
       ``(b) Modification of Reduction Rate.--
       ``(1) In general.--If the Administrator makes a 
     determination described in subparagraph (B) or (C) of 
     subsection (a)(2), the final rule promulgated pursuant to 
     subsection (a) shall establish a required level of emissions 
     reductions for each calendar year, beginning with calendar 
     year 2020, based on the considerations described in paragraph 
     (2).
       ``(2) Considerations.--
       ``(A) Primary consideration.--In establishing the required 
     level of emission reductions pursuant to paragraph (1), the 
     Administrator shall take into consideration primarily the 
     emission reductions necessary to stabilize atmospheric 
     greenhouse gas concentrations at the safe climate level 
     within the timeframe specified under section 712(b)(2)(B).
       ``(B) Secondary considerations.--In establishing the 
     required level of emission reductions pursuant to paragraph 
     (1), in addition to the primary consideration described in 
     paragraph (1), the Administrator shall take into 
     consideration--
       ``(i) technological capability to reduce greenhouse gas 
     emissions;
       ``(ii) the progress that foreign countries have made toward 
     reducing their greenhouse gas emissions;
       ``(iii) the economic impacts within the United States of 
     implementing this subtitle, including impacts on the major 
     emitting sectors; and
       ``(iv) the economic impacts within the United States of 
     inadequate action.
       ``(c) Enforcement Provision.--
       ``(1) In general.--If the Administrator fails to meet a 
     deadline for promulgation of any regulation under subsection 
     (a), the Administrator shall withhold from allocation to 
     covered units that would otherwise be entitled to an 
     allocation of allowances under this subtitle a total of 10 
     percent of the allowances for each covered unit for each year 
     after the deadline until the Administrator promulgates the 
     applicable regulation.
       ``(2) Return of allowances.--On promulgation of a delayed 
     regulation described in paragraph (1), the Administrator 
     shall distribute any allowances withheld under that 
     paragraph--
       ``(A) among the covered units from which the allowances 
     were withheld; and
       ``(B) in accordance with the applicable formula under 
     section 716.
       ``(d) Subsequent Rulemakings.--
       ``(1) In general.--Not later than December 31, 2019, and 
     every 4 years thereafter, the Administrator shall promulgate 
     a new final rule described in subsection (a) in accordance 
     with this section.
       ``(2) Effective date.--If a new final rule promulgated 
     pursuant to paragraph (1) changes a level of emission 
     reductions required under the preceding final rule, the 
     effective date of the new final rule shall be January 1 of 
     the calendar year that is 5 years after the deadline for 
     promulgation of the new final rule under paragraph (1).

     ``SEC. 714. DISTRIBUTION OF ALLOWANCES BETWEEN AUCTIONS AND 
                   ALLOCATIONS; NATURE OF ALLOWANCES.

       ``(a) Distribution of Allowances Between Auctions and 
     Allocations.--
       ``(1) In general.--For each calendar year, the total 
     quantity of allowances to be auctioned and allocated under 
     this subtitle shall be equal to the annual tonnage limitation 
     for emissions of greenhouse gases from affected units 
     specified in section 711 for the calendar year.
       ``(2) Distribution.--The proportion of allowances to be 
     auctioned pursuant to section 715 and allocated pursuant to 
     section 716 for each calendar year beginning in calendar year 
     2011 shall be as follows:


        ``PERCENTAGES OF ALLOWANCES TO BE AUCTIONED AND ALLOCATED
------------------------------------------------------------------------
                                     Percentage to be   Percentage to be
           Calendar Year                Auctioned          Allocated
------------------------------------------------------------------------
2011..............................                 15                 85
2012..............................                 18                 82
2013..............................                 21                 79
2014..............................                 24                 76
2015..............................                 27                 73
2016..............................                 30                 70
2017..............................                 33                 67
2018..............................                 36                 64
2019..............................                 39                 61
2020..............................                 42                 58
2021..............................                 45                 55
2022..............................                 48                 52
2023..............................                 51                 49
2024..............................                 54                 46
2025..............................                 57                 43
2026..............................                 60                 40
2027..............................                 63                 37
2028..............................                 66                 34
2029..............................                 69                 41
2030..............................                 72                 28
2031..............................                 75                 25
2032..............................                 80                 20
2033..............................                 85                 15
2034..............................                 90                 10
2035..............................                 95                  5
2036 and thereafter...............                100                  0
------------------------------------------------------------------------


[[Page 1421]]

       ``(b) Nature of Allowances.--An allowance--
       ``(1) shall not be considered to be a property right; and
       ``(2) may be terminated or limited by the Administrator.
       ``(c) No Judicial Review.--An auction or allocation of an 
     allowance by the Administrator shall not be subject to 
     judicial review.

     ``SEC. 715. AUCTION OF ALLOWANCES.

       ``(a) In General.--Not later than 2 years after the date of 
     enactment of this title, the Administrator shall promulgate 
     regulations establishing a procedure for the auction of the 
     quantity of allowances specified in section 714(a) for each 
     calendar year.
       ``(b) Deposit of Proceeds.--The Administrator shall deposit 
     all proceeds from auctions conducted under this section in 
     the Fund for use in accordance with section 717.

     ``SEC. 716. ALLOCATION OF ALLOWANCES.

       ``(a) Allocation to New Covered Units.--
       ``(1) Establishment.--For each calendar year, the 
     Administrator, in consultation with the Secretary of Energy, 
     shall, based on projections of electricity output for new 
     covered units, promulgate regulations establishing--
       ``(A) a reserve of allowances to be allocated among new 
     covered units for the calendar year; and
       ``(B) the methodology for allocating those allowances among 
     new covered units.
       ``(2) Limitation.--The number of allowances allocated under 
     paragraph (1) during a calendar year shall be not more than 3 
     percent of the total number of allowances allocated among 
     covered units for the calendar year.
       ``(3) Unused allowances.--For each calendar year, the 
     Administrator shall reallocate to each covered unit any 
     unused allowances from the new unit reserve established under 
     paragraph (1) in the proportion that--
       ``(A) the number of allowances allocated to each covered 
     unit for the calendar year; bears to
       ``(B) the number of allowances allocated to all covered 
     units for the calendar year.
       ``(b) Allocation to Covered Units That Are Not New Covered 
     Units.--
       ``(1) Timing of allocations.--Subject to subsection (c), 
     the Administrator shall allocate allowances among covered 
     units that are not new covered units--
       ``(A) not later than December 31, 2007, for calendar year 
     2011; and
       ``(B) not later than December 31 of calendar year 2008 and 
     of each calendar year thereafter, for each fourth calendar 
     year that begins after that December 31.
       ``(2) Allocations.--
       ``(A) In general.--Subject to subsection (c), the 
     Administrator shall allocate to each covered unit that is not 
     a new covered unit a quantity of allowances that is equal to 
     the product obtained by multiplying--
       ``(i) the quantity of allowances available for allocation 
     under this subsection; and
       ``(ii) the quotient obtained by dividing--

       ``(I) the annual average quantity of electricity generated 
     by the unit (including only incremental nuclear generation 
     for nuclear generating units) during the most recent 3-
     calendar year period for which data is available, updated 
     each calendar year and measured in megawatt hours; by
       ``(II) the difference between--

       ``(aa) the total of the average quantities calculated under 
     subclause (I) for all covered units; and
       ``(bb) the quantity of electricity generated by all 
     affected units and new affected units that, pursuant to 
     subsection (c), do not receive any allowances.
       ``(B) Quantity to be allocated.--For each calendar year, 
     the quantity of allowances allocated under subparagraph (A) 
     to covered units that are not new covered units shall be 
     equal to the difference between--
       ``(i) the annual tonnage limitation for emissions of 
     greenhouse gases from affected units specified in section 711 
     for the calendar year, as modified, if applicable, under 
     section 713; and
       ``(ii) the quantity of allowances reserved under subsection 
     (a) for the calendar year.
       ``(c) Coal-Fired Affected Units and New Affected Units.--
       ``(1) In general.--Notwithstanding any other provision of 
     this subtitle, no allowance shall be allocated under this 
     subtitle to a coal-fired affected unit or a coal-fired new 
     affected unit unless the affected unit or new affected unit--
       ``(A) is powered by qualifying advanced clean coal 
     technology, as defined pursuant to paragraph (2); or
       ``(B) entered operation before January 1, 2007.
       ``(2) Definition of qualifying advanced clean coal 
     technology.--
       ``(A) In general.--Not later than 18 months after the date 
     of enactment of this title, the Administrator, by regulation, 
     shall define the term `qualifying advanced clean coal 
     technology' with respect to electric power generation.
       ``(B) Requirement.--In promulgating a definition pursuant 
     to subparagraph (A), the Administrator shall ensure that the 
     term `qualifying advanced clean coal technology' reflects 
     advances in available technology, taking into consideration--
       ``(i) net thermal efficiency;
       ``(ii) measures to capture and sequester carbon dioxide; 
     and
       ``(iii) output-based emission rates for--

       ``(I) carbon dioxide;
       ``(II) sulfur dioxide;
       ``(III) oxides of nitrogen;
       ``(IV) filterable and condensable particulate matter; and
       ``(V) mercury.

       ``(C) Review and revision.--
       ``(i) In general.--Not later than July 1, 2009, and each 
     July 1 of every second year thereafter, the Administrator 
     shall review and, if appropriate, revise the definition under 
     subparagraph (A) based on technological advances during the 
     preceding 2 calendar years.
       ``(ii) Notice and comment required.--Subject to clause 
     (iii), after the initial definition is established under 
     subparagraph (A), no subsequent review or revision under this 
     subparagraph shall be subject to the notice and comment 
     provisions of section 307 of this Act or of section 553 of 
     title 5, United States Code.
       ``(iii) Effect.--Nothing in clause (ii) precludes the 
     application of the notice and comment provisions of section 
     307 of this Act or of section 553 of title 5, United States 
     Code, as the Administrator determines to be practicable.

     ``SEC. 717. CLIMATE ACTION TRUST FUND.

       ``(a) Establishment and Administration.--
       ``(1) In general.--There is established in the general fund 
     of the Treasury a fund, to be known as the `Climate Action 
     Trust Fund', consisting of--
       ``(A) such amounts as are deposited in the Fund under 
     paragraph (2); and
       ``(B) any interest earned on investment of amounts in the 
     Fund under paragraph (4).
       ``(2) Transfers to fund.--The Secretary of the Treasury 
     shall deposit in the Fund amounts equivalent to the proceeds 
     received by the Administrator as a result of the conduct of 
     auctions of allowances under section 715.
       ``(3) Expenditures from fund.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), 
     the Administrator shall use amounts in the Fund to carry out 
     the programs described in this section.
       ``(B) Administrative expenses.--Of amounts in the Fund, 
     there shall be made available to pay the administrative 
     expenses necessary to carry out this title, as adjusted for 
     changes beginning on January 1, 2007, in accordance with the 
     Consumer Price Index for All-Urban Consumers published by the 
     Department of Labor--
       ``(i) $90,000,000 for each fiscal year, to the 
     Administrator; and
       ``(ii) $30,000,000 for each fiscal year, to the Secretary 
     of Agriculture.
       ``(C) Panel.--Of amounts in the Fund, there shall be made 
     available to pay the expenses of the Panel under section 712 
     $7,000,000 for each fiscal year, as adjusted for changes 
     beginning on January 1, 2007, in accordance with the Consumer 
     Price Index for All-Urban Consumers published by the 
     Department of Labor.
       ``(4) Investment of amounts.--
       ``(A) In general.--The Secretary of Treasury shall invest 
     such portion of the Fund as is not, in the judgment of the 
     Administrator, required to meet current withdrawals.
       ``(B) Interest-bearing obligations.--Investments may be 
     made only in interest-bearing obligations of the United 
     States.
       ``(C) Acquisition of obligations.--For the purpose of 
     investments under paragraph (1), obligations may be 
     acquired--
       ``(i) on original issue at the issue price; or
       ``(ii) by purchase of outstanding obligations at the market 
     price.
       ``(D) Sale of obligations.--Any obligation acquired by the 
     Fund may be sold by the Administrator at the market price.
       ``(E) Return of proceeds to fund.--The interest on, and the 
     proceeds from the sale or redemption of, any obligations held 
     in the Fund shall be credited to, and form a part of, the 
     Fund.
       ``(5) Regulations.--Not later than 2 years after the date 
     of enactment of this title, the Administrator, in 
     consultation with the Secretary of Energy, shall promulgate 
     such regulations as are necessary to administer the Fund in 
     accordance with this section.
       ``(b) Uses of Fund.--
       ``(1) No further appropriation.--The Administrator shall 
     distribute amounts in the Fund for use in accordance with 
     this section, without further appropriation.
       ``(2) Regulations.--
       ``(A) In general.--Not later than 3 years after the date of 
     enactment of this title, the Administrator, in consultation 
     with the Secretary of Energy, shall promulgate regulations 
     establishing an innovative low- and zero-emitting carbon 
     technologies program, a clean coal technologies program, and 
     an energy efficiency technology program that include--
       ``(i) the funding mechanisms that will be available to 
     support the development and deployment of the technologies 
     addressed by each program, including low-interest loans, loan 
     guarantees, grants, and financial awards; and
       ``(ii) the criteria for the methods by which proposals will 
     be funded to develop and deploy the technologies.
       ``(B) Revision of criteria.--Not later than January 1, 
     2014, and every 3 years thereafter,

[[Page 1422]]

     the Administrator shall review and, if appropriate, revise, 
     based on technological advances, the criteria referred to in 
     subparagraph (A)(ii).
       ``(C) Adaptation assistance for workers and communities.--
     Not later than 3 years after the date of enactment of this 
     title, the Administrator, in consultation with the Secretary 
     of Energy, shall promulgate regulations governing the 
     distribution of funds pursuant to subsection (g).
       ``(c) Innovative Low- and Zero-Emitting Carbon Electricity 
     Generation Technologies Program.--
       ``(1) In general.--For each calendar year, of amounts 
     remaining in the Fund after making the expenditures described 
     in subparagraphs (B) and (C) of subsection (a)(3), the 
     Administrator shall use not more than 35 percent to support 
     the development and deployment of low- and zero-emitting 
     carbon electricity generation technologies.
       ``(2) Regulations.--The regulations establishing the 
     innovative low- and zero-emitting carbon electricity 
     generation technologies program referred to in subsection 
     (b)(2)(A) shall establish the areas of technology development 
     that will qualify for funding under that program, including 
     technologies for the generation of electricity from renewable 
     energy sources.
       ``(d) Clean Coal Technologies Program.--
       ``(1) In general.--For each calendar year, of amounts 
     remaining in the Fund after making the expenditures described 
     in subparagraphs (B) and (C) of subsection (a)(3), the 
     Administrator shall use not more than 20 percent to support 
     the development and deployment of clean coal technologies.
       ``(2) Regulations.--The regulations establishing the clean 
     coal technologies program referred to in subsection (b)(2)(A) 
     shall establish the criteria for use in defining qualifying 
     clean coal technologies for electric power generation, while 
     ensuring that those technologies represent an advance in 
     available technology, taking into consideration net thermal 
     efficiency and measures to capture and sequester carbon 
     dioxide.
       ``(e) Energy Efficiency Technology Program.--
       ``(1) In general.--For each calendar year, of amounts 
     remaining in the Fund after making the expenditures described 
     in subparagraphs (B) and (C) of subsection (a)(3), the 
     Administrator shall use not more than 15 percent to support 
     the development and deployment of technologies for increasing 
     the efficiency of energy end use in buildings and industry.
       ``(2) Regulations.--The regulations establishing the energy 
     efficiency program referred to in subsection (b)(2)(A) shall 
     establish the areas of technology development that will 
     qualify for funding under the energy efficiency program.
       ``(f) Federal Funding of Research Into and Development of 
     Energy and Efficiency Technologies.--For each calendar year, 
     the Administrator shall use not more than 10 percent of the 
     amounts in the Fund to support research into and development 
     of energy and efficiency technologies.
       ``(g) Adaptation Assistance for Workers and Communities 
     Negatively Affected by Climate Change and Greenhouse Gas 
     Regulation.--For each calendar year, of amounts remaining in 
     the Fund after making the expenditures described in 
     subparagraphs (B) and (C) of subsection (a)(3), the 
     Administrator shall use at least 10 percent to provide 
     adaptation assistance for workers and communities--
       ``(1) to address local or regional impacts of climate 
     change and the impacts, if any, from greenhouse gas 
     regulation, including by providing assistance to displaced 
     workers and disproportionately affected communities; and
       ``(2) to mitigate impacts of climate change and the 
     impacts, in any, from greenhouse gas regulation on low-income 
     energy consumers.
       ``(h) Fish and Wildlife Habitat.--
       ``(1) In general.--For each calendar year, of amounts 
     remaining in the Fund after making the expenditures described 
     in subparagraphs (B) and (C) of subsection (a)(3), the 
     Administrator shall use at least 10 percent to mitigate the 
     impacts of climate change on fish and wildlife habitat in 
     accordance with this subsection.
       ``(2) Wildlife restoration fund.--
       ``(A) In general.--For each calendar year, the 
     Administrator shall transfer not less than 70 percent of the 
     amounts made available under paragraph (1) to the Federal aid 
     to wildlife restoration fund established under section 
     3(a)(1) of the Pittman-Robertson Wildlife Restoration Act (16 
     U.S.C. 669b(a)(1))--
       ``(i) to carry out climate change impact mitigation actions 
     pursuant to comprehensive wildlife conservation strategies; 
     and
       ``(ii) to provide relevant information, training, 
     monitoring, and other assistance to develop climate change 
     impact mitigation and adaptation plans and integrate the 
     plans into State comprehensive wildlife conservation 
     strategies.
       ``(B) Availability.--Amounts transferred to the Federal aid 
     to wildlife restoration fund under this paragraph shall--
       ``(i) be available, without further appropriation, for 
     obligation and expenditure; and
       ``(ii) remain available until expended.
       ``(3) Protection of natural resources.--
       ``(A) In general.--For each calendar year, the 
     Administrator, in consultation with the Secretary of 
     Agriculture, the Secretary of Commerce, the Chief of 
     Engineers, and State and national wildlife conservation 
     organizations, shall transfer not more than 30 percent of the 
     funds made available under paragraph (1) to the Secretary of 
     the Interior for use in carrying out Federal and State 
     programs and projects--
       ``(i) to protect natural communities that are most 
     vulnerable to climate change;
       ``(ii) to restore and protect natural resources that 
     directly guard against damages from climate change events; 
     and
       ``(iii) to restore and protect ecosystem services that are 
     most vulnerable to climate change.
       ``(B) Administration.--Amounts transferred to the Secretary 
     of the Interior under this paragraph shall--
       ``(i) be available, without further appropriation, for 
     obligation and expenditure;
       ``(ii) remain available until expended;
       ``(iii)(I) be obligated not later than 2 years after the 
     date of transfer; or
       ``(II) if the amounts are not obligated in accordance with 
     subclause (I), be transferred to the Federal aid to wildlife 
     restoration fund for use in accordance with paragraph (2); 
     and
       ``(iv) supplement, and not supplant, the amount of Federal, 
     State, and local funds otherwise expended to carry out 
     programs and projects described in subparagraph (A).
       ``(C) Programs and projects.--Programs and projects for 
     which funds may be used under this paragraph include--
       ``(i) Federal programs and projects--

       ``(I) to identify Federal land and water at greatest risk 
     of being damaged or depleted by climate change;
       ``(II) to monitor Federal land and water to allow for early 
     detection of impacts;
       ``(III) to develop adaptation strategies to minimize the 
     damage; and
       ``(IV) to restore and protect Federal land and water at the 
     greatest risk of being damaged or depleted by climate change;

       ``(ii) Federal programs and projects to identify climate 
     change risks and develop adaptation strategies for natural 
     grassland, wetlands, migratory corridors, and other habitats 
     vulnerable to climate change on private land enrolled in--

       ``(I) the wetlands reserve program established under 
     subchapter C of chapter 1 of subtitle D of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3837 et seq.);
       ``(II) the grassland reserve program established under 
     subchapter C of chapter 2 of subtitle D of title XII of that 
     Act (16 U.S.C. 3838n et seq.); and
       ``(III) the wildlife habitat incentive program established 
     under section 1240N of that Act (16 U.S.C. 3839bb-1);

       ``(iii) programs and projects under the North American 
     Wetlands Conservation Act (16 U.S.C. 4401 et seq.), the North 
     American Bird Conservation Initiative, and the Neotropical 
     Migratory Bird Conservation Act (16 U.S.C. 6101 et seq.) to 
     protect habitat for migratory birds that are vulnerable to 
     climate change impacts;
       ``(iv) programs and projects--

       ``(I) to identify coastal and marine resources (such as 
     coastal wetlands, coral reefs, submerged aquatic vegetation, 
     shellfish beds, and other coastal or marine ecosystems) at 
     the greatest risk of being damaged by climate change;
       ``(II) to monitor those resources to allow for early 
     detection of impacts;
       ``(III) to develop adaptation strategies;
       ``(IV) to protect and restore those resources; and
       ``(V) to integrate climate change adaptation requirements 
     into State plans developed under the coastal zone management 
     program established under the Coastal Zone Management Act of 
     1972 (16 U.S.C. 1451 et seq.), the national estuary program 
     established under section 320 of the Federal Water Pollution 
     Control Act (33 U.S.C. 1330), the Coastal and Estuarine Land 
     Conservation Program established under the fourth proviso of 
     the matter under the heading `procurement, acquisition, and 
     construction (including transfers of funds)' of title II of 
     the Departments of Commerce, Justice, and State, the 
     Judiciary, and Related Agencies Appropriations Act, 2002 (16 
     U.S.C. 1456d), or other comparable State programs;

       ``(v) programs and projects to conserve habitat for 
     endangered species and species of conservation concern that 
     are vulnerable to the impact of climate change;
       ``(vi) programs and projects under the Forest Legacy 
     Program established under section 7 of the Cooperative 
     Forestry Assistance Act (16 U.S.C. 2103c), to support State 
     efforts to protect environmentally sensitive forest land 
     through conservation easements to provide refuges for 
     wildlife;
       ``(vii) other Federal or State programs and projects 
     identified by the heads of agencies described in subparagraph 
     (A) as high priorities--

       ``(I) to protect natural communities that are most 
     vulnerable to climate change;
       ``(II) to restore and protect natural resources that 
     directly guard against damages from climate change events; 
     and
       ``(III) to restore and protect ecosystem services that are 
     most vulnerable to climate change;

[[Page 1423]]

       ``(viii) to address climate change in Federal land use 
     planning and plan implementation and to integrate climate 
     change adaptation strategies into--

       ``(I) comprehensive conservation plans prepared under 
     section 4(e) of the National Wildlife Refuge System 
     Administration Act of 1966 (16 U.S.C. 668dd(e));
       ``(II) general management plans for units of the National 
     Park System;
       ``(III) resource management plans of the Bureau of Land 
     Management; and
       ``(IV) land and resource management plans under the Forest 
     and Rangeland Renewable Resources Planning Act of 1974 (16 
     U.S.C. 1600 et seq.) and the National Forest Management Act 
     of 1976 (16 U.S.C. 1600 et seq.); and

       ``(ix) projects to promote sharing of information on 
     climate change wildlife impacts and mitigation strategies 
     across agencies, including funding efforts to strengthen and 
     restore habitat that improves the ability of fish and 
     wildlife to adapt successfully to climate change through the 
     Wildlife Conservation and Restoration Account established by 
     section 3(a)(2) of the Pittman-Robertson Wildlife Restoration 
     Act (16 U.S.C. 669b(a)(2)).

     ``SEC. 718. EARLY REDUCTION CREDITS.

       ``(a) Regulations.--Not later than 2 years after the date 
     of enactment of this title, the Administrator shall 
     promulgate regulations that provide for the issuance on a 1-
     time basis, certification, and use of early reduction credits 
     for greenhouse gas reduction or sequestration projects 
     carried out during any of calendar years 2000 through 2010.
       ``(b) Eligible Projects.--A greenhouse gas reduction or 
     sequestration project shall be eligible for early reduction 
     credits if the project--
       ``(1) is carried out in the United States;
       ``(2) meets the standards contained in regulations 
     promulgated by the Administrator under subsection (a) that 
     the Administrator determines to be applicable to the project, 
     including consistency with the requirements of--
       ``(A) paragraphs (2) through (5) of section 736(a), with 
     respect to greenhouse gas reduction projects; and
       ``(B) section 732(a), with respect to sequestration 
     projects; and
       ``(3) was reported--
       ``(A) under section 1605(b) of the Energy Policy Act of 
     1992 (42 U.S.C. 13385(b)); or
       ``(B) to a State or regional greenhouse gas registry.
       ``(c) Limitation.--
       ``(1) In general.--The aggregate quantity of early 
     reduction credits available for greenhouse gas reduction or 
     sequestration projects for the period of calendar years 2000 
     through 2010 shall not exceed 10 percent of the tonnage 
     limitation for calendar year 2011 for emissions of greenhouse 
     gases from affected units under section 711.
       ``(2) No other exceedance of tonnage limitation.--No 
     provision of this subtitle (other than paragraph (1)) or any 
     regulation promulgated under this subtitle authorizes the 
     issuance or use of a quantity of credits greater than the 
     annual tonnage limitation for emissions of greenhouse gases 
     from affected units for a calendar year.

     ``SEC. 719. RECOGNITION AND USE OF INTERNATIONAL CREDITS.

       ``(a) Use of International Credits.--
       ``(1) In general.--Except as provided in this section and 
     section 720, the owner of each affected unit may satisfy the 
     obligation of the affected unit under section 722 to 
     surrender a quantity of credits associated with the 
     greenhouse gas emissions of the affected unit by submitting 
     international credits representing up to 25 percent of the 
     total annual submission requirements of the affected unit.
       ``(2) New affected units.--The owner of a new affected unit 
     may satisfy up to 50 percent of the obligation of the new 
     affected unit under section 722 to surrender a quantity of 
     credits associated with the greenhouse gas emissions of the 
     new affected unit by submitting international credits.
       ``(b) Facility Certification.--The owner of an affected 
     unit who submits an international credit under this section 
     shall certify that the international credit--
       ``(1) has not been retired from use in the registry of the 
     applicable foreign country; and
       ``(2) satisfies the requirements of subsection (c) or (d).
       ``(c) International Credits From Countries With Mandatory 
     Greenhouse Gas Limits.--The owner of an affected unit may 
     submit an international credit under this subsection if--
       ``(1) the international credit is issued by a foreign 
     country pursuant to a governmental program that imposes 
     mandatory absolute tonnage limits on greenhouse gas emissions 
     from the country or 1 or more industry sectors pursuant to 
     protocols adopted through the UNFCCC process; and
       ``(2) the Administrator has promulgated regulations, taking 
     into consideration applicable UNFCCC protocols, approving for 
     use under this subsection international credits from such 
     categories of countries as the regulations establish, and the 
     regulations permit the use of international credits from the 
     foreign country that issued the credit.
       ``(d) International Credits From Countries Without 
     Mandatory Greenhouse Gas Limits.--
       ``(1) In general.--Subject to paragraph (2), the owner of 
     an affected unit may submit an international credit under 
     this subsection if--
       ``(A) the international credit is issued by a foreign 
     country that has not imposed mandatory absolute tonnage 
     limits on greenhouse gas emissions from the country or 1 or 
     more industry sectors pursuant to protocols adopted through 
     the UNFCCC process;
       ``(B) the international credit is issued pursuant to 
     protocols adopted through the UNFCCC process; and
       ``(C) the Administrator has promulgated regulations, taking 
     into consideration applicable UNFCCC protocols, approving for 
     use under this subsection international credits from such 
     categories of countries as the regulations establish, and the 
     regulations permit the use of international credits from the 
     foreign country that issued the credit.
       ``(2) Decision on continued approval.--Not later than 
     December 31, 2015, the Administrator shall determine, 
     pursuant to the regulations promulgated under paragraph 
     (1)(C), whether to continue to approve for use under this 
     subsection international credits from any country that--
       ``(A) has not imposed mandatory absolute tonnage limits on 
     greenhouse gas emissions from the country or 1 or more 
     industry sectors pursuant to protocols adopted through the 
     UNFCCC process; and
       ``(B) generates more than 0.5 percent of global greenhouse 
     gas emissions as of 2010 or as of the most recent year for 
     which data are available.

     ``SEC. 720. AVOIDING SIGNIFICANT ECONOMIC HARM.

       ``(a) In General.--Pursuant to the regulations promulgated 
     under this section, the Administrator may permit affected 
     units--
       ``(1) to use allowances in a calendar year before the 
     calendar year for which the allowances were allocated; and
       ``(2) to increase the use by the affected units of 
     international credits up to 50 percent of the total annual 
     submission requirements of the affected units under section 
     722.
       ``(b) Regulations.--
       ``(1) In general.--Not later than 3 years after the date of 
     enactment of this title, the Administrator, in coordination 
     with the Secretary of the Treasury, shall promulgate 
     regulations requiring the continuous monitoring of the 
     operation of the carbon market and the effect of that market 
     on the economy of the United States.
       ``(2) Requirements.--The regulations shall--
       ``(A) establish the criteria for determining whether 
     allowance prices have reached and sustained a level that is 
     causing or will cause significant harm to the economy of the 
     United States; and
       ``(B) take into consideration--
       ``(i) the obligation of the United States under this 
     subtitle to stabilize greenhouse gas concentrations in the 
     atmosphere at the safe climate level; and
       ``(ii) the costs of the anticipated impacts of climate 
     change in the United States.
       ``(3) Prevention of economic harm.--If the Administrator 
     determines that allowance prices have reached and sustained a 
     level that is causing or will cause significant harm to the 
     economy of the United States, the regulations shall 
     establish--
       ``(A) a program under which an affected unit may use 
     allowances in a calendar year before the calendar year for 
     which the allowances were allocated, including--
       ``(i) a requirement that allowances borrowed from the 
     allocation of a future year reduce the allocation of 
     allowances to the affected unit for the future year on a 1-
     to-1 basis;
       ``(ii) a requirement for payment of interest on borrowed 
     allowances requiring the submission of additional credits 
     upon repayment of the allowances equal to the product 
     obtained by multiplying--

       ``(I) the number of years between the advance use of 
     allowances by an affected unit under clause (i) and the 
     submission of additional credits under this clause; and
       ``(II) the sum obtained by adding--

       ``(aa) the Federal short-term rate, as defined pursuant to 
     section 1274(d)(1)(C)(i) of the Internal Revenue Code of 
     1986; and
       ``(bb) 2 percent; and
       ``(iii) a limitation that in no event may an affected 
     unit--

       ``(I) satisfy more than 10 percent of the obligation of the 
     affected unit under section 722 to surrender allowances by 
     submitting allowances in a calendar year before the calendar 
     year for which the allowances were allocated; and
       ``(II) use allowances in a calendar year that is more than 
     5 years before the calendar year for which the allowances 
     were allocated; and

       ``(B) a program under which the owner of an affected unit 
     may satisfy the obligation of the affected unit under section 
     722 to surrender allowances for the calendar year in which 
     the determination is made by submitting international credits 
     representing up to 50 percent of the total annual submission 
     requirements of the affected unit.

     ``SEC. 721. USE AND TRANSFER OF CREDITS.

       ``(a) Use in Other Greenhouse Gas Allowance Trading 
     Programs.--

[[Page 1424]]

       ``(1) In general.--A credit obtained under this subtitle 
     may be used in any other greenhouse gas allowance trading 
     program, including a program of 1 or more States or 
     subdivisions of States, that is approved by the Administrator 
     and an authorized official for the other program for use of 
     the allowance.
       ``(2) Reciprocity.--A credit obtained from another 
     greenhouse gas trading program, including a program of 1 or 
     more States or subdivisions of States, that is approved by 
     the Administrator and an authorized official for the other 
     program may be used in the trading program under this title.
       ``(b) Allowance Use Before Applicable Calendar Year.--
     Except as provided in section 720, an allowance auctioned or 
     allocated under this subtitle may not be used before the 
     calendar year for which the allowance was auctioned or 
     allocated.
       ``(c) Transfer.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     transfer of a credit shall not take effect until receipt and 
     recording by the Administrator of a written certification of 
     the transfer that is executed by an authorized official of 
     the person making the transfer.
       ``(2) Special rule for allowances.--Notwithstanding 
     paragraph (1), the transfer of an allowance auctioned or 
     allocated under this subtitle may take effect before the 
     calendar year for which the allowance was auctioned or 
     allocated.
       ``(d) Banking of Credits.--Any affected unit may use a 
     credit obtained under this subtitle in the calendar year for 
     which the credit was auctioned or allocated, or in a 
     subsequent calendar year, to demonstrate compliance with 
     section 722.

     ``SEC. 722. COMPLIANCE AND ENFORCEMENT.

       ``(a) In General.--For calendar year 2011 and each calendar 
     year thereafter, the owner of each affected unit shall 
     surrender to the Administrator a quantity of credits that is 
     equal to the total tons of carbon dioxide or, with respect to 
     other greenhouse gases, tons in carbon dioxide equivalent, 
     associated with the combustion by the affected unit of 
     greenhouse gas-emitting fuels during the calendar year.
       ``(b) Regulations.--Not later than 2 years after the date 
     of enactment of this title, the Administrator shall 
     promulgate regulations establishing the procedures for the 
     surrender of credits.
       ``(c) Penalty.--The owner of an affected unit that emits 
     greenhouse gases associated with the combustion by the 
     affected unit of a greenhouse gas-emitting fuel in excess of 
     the number of credits that the owner of the affected unit 
     holds for use of the affected unit for the calendar year 
     shall--
       ``(1) submit to the Administrator 1.3 credits for each 
     metric ton of excess greenhouse gas emissions of the affected 
     unit; and
       ``(2) pay an excess emissions penalty equal to the product 
     obtained by multiplying--
       ``(A) the number of tons of carbon dioxide, or the carbon 
     dioxide equivalent of other greenhouse gases, emitted in 
     excess of the total quantity of credits held by the affected 
     unit; and
       ``(B)(i) except as provided in clause (ii), $100, as 
     adjusted for changes beginning on January 1, 2007, in 
     accordance with the Consumer Price Index for All-Urban 
     Consumers published by the Department of Labor; or
       ``(ii) if the average market price for a metric ton of 
     carbon dioxide equivalent during a calendar year exceeds $60, 
     $200, as adjusted for changes beginning on January 1, 2007, 
     in accordance with the Consumer Price Index for All-Urban 
     Consumers published by the Department of Labor.

                      ``Subtitle B--Offset Credits

     ``SEC. 731. OUTREACH INITIATIVE ON REVENUE ENHANCEMENT FOR 
                   AGRICULTURAL PRODUCERS.

       ``(a) Purposes.--The purposes of this subtitle are to 
     achieve climate benefits, reduce overall costs to the United 
     States economy, and enhance revenue for domestic agricultural 
     producers, foresters, and other landowners by--
       ``(1) establishing procedures by which domestic 
     agricultural producers, foresters, and other landowners can 
     measure and report reductions in greenhouse gas emissions and 
     increases in sequestration; and
       ``(2) publishing a handbook of guidance for domestic 
     agricultural producers, foresters, and other landowners to 
     market emission reductions to companies.
       ``(b) Establishment.--The Secretary of Agriculture, acting 
     through the Chief of the Natural Resources Conservation 
     Service, the Chief of the Forest Service, the Administrator 
     of the Cooperative State Research, Education, and Extension 
     Service, and land-grant colleges and universities, in 
     consultation with the Administrator and the heads of other 
     appropriate departments and agencies, shall establish an 
     outreach initiative to provide information to agricultural 
     producers, agricultural organizations, foresters, and other 
     landowners about opportunities under this subtitle to earn 
     new revenue.
       ``(c) Components.--The initiative under this section--
       ``(1) shall be designed to ensure that, to the maximum 
     extent practicable, agricultural organizations and individual 
     agricultural producers, foresters, and other landowners 
     receive detailed practical information about--
       ``(A) opportunities to earn new revenue under this 
     subtitle;
       ``(B) measurement protocols, monitoring, verifying, 
     inventorying, registering, insuring, and marketing offsets 
     under this title;
       ``(C) emerging domestic and international markets for 
     energy crops, allowances, and offsets; and
       ``(D) local, regional, and national databases and 
     aggregation networks to facilitate achievement, measurement, 
     registration, and sales of offsets;
       ``(2) shall provide--
       ``(A) outreach materials, including the handbook published 
     under subsection (d)(1), to interested parties;
       ``(B) workshops; and
       ``(C) technical assistance; and
       ``(3) may include the creation and development of regional 
     marketing centers or coordination with existing centers 
     (including centers within the Natural Resources Conservation 
     Service or the Cooperative State Research, Education, and 
     Extension Service or at land-grant colleges and 
     universities).
       ``(d) Handbook.--
       ``(1) In general.--Not later than 2 years after the date of 
     enactment of this title, the Secretary of Agriculture, in 
     consultation with the Administrator and after public input, 
     shall publish a handbook for use by agricultural producers, 
     agricultural cooperatives, foresters, other landowners, 
     offset buyers, and other stakeholders that provides easy-to-
     use guidance on achieving, reporting, registering, and 
     marketing offsets.
       ``(2) Distribution.--The Secretary of Agriculture shall 
     ensure, to the maximum extent practicable, that the handbook 
     is distributed widely through land-grant colleges and 
     universities and other appropriate institutions.

     ``SEC. 732. OFFSET MEASUREMENT FOR AGRICULTURAL, FORESTRY, 
                   WETLANDS, AND OTHER LAND USE-RELATED 
                   SEQUESTRATION PROJECTS.

       ``(a) In General.--Not later than 2 years after the date of 
     enactment of this title, the Secretary of Agriculture, in 
     consultation with the Administrator, shall promulgate 
     regulations establishing the requirements regarding the 
     issuance, certification, and use of offset credits for 
     greenhouse gas reductions from agricultural, forestry, 
     wetlands, and other land use-related sequestration projects, 
     including requirements--
       ``(1) for a region-specific discount factor for business-
     as-usual practices for specific types of sequestration 
     projects, in accordance with subsection (c);
       ``(2) that ensure that the reductions are real, additional, 
     verifiable, and enforceable;
       ``(3) that address leakage;
       ``(4) that the reductions are not otherwise required by any 
     law (including a regulation) or other legally binding 
     requirement;
       ``(5) for the quantification, monitoring, reporting, and 
     verification of the reductions;
       ``(6) that ensure that offset credits are limited in 
     duration to the period of sequestration of greenhouse gases, 
     and rectify any loss of sequestration other than a loss 
     caused by an error in calculation identified under this 
     subtitle, by requiring the submission of additional credits 
     of an equivalent quantity to the lost sequestration; and
       ``(7) that quantify sequestration flow.
       ``(b) Eligibility to Create Offset Credits.--
       ``(1) In general.--A sequestration project that commences 
     operation on or after January 1, 2011, is eligible to create 
     offset credits under this subtitle if the sequestration 
     project satisfies the other applicable requirements of this 
     subtitle.
       ``(2) Exception for agricultural projects.--Notwithstanding 
     paragraph (1), sequestration flow from an agricultural 
     project that occurs on or after January 1, 2011, may provide 
     the basis for offset credits under this subtitle regardless 
     of the date on which the agricultural sequestration project 
     to which the sequestration flow is attributable commenced, if 
     the project satisfies the other applicable requirements of 
     this subtitle.
       ``(c) Discounting for Business-as-Usual Practices.--
       ``(1) In general.--In order to streamline the availability 
     of offset credits for agricultural and other land use-related 
     sequestration projects, the regulations promulgated under 
     subsection (a) shall provide for the calculation and 
     reporting of region-specific discount factors by the 
     Secretary of Agriculture--
       ``(A) to be used by developers of agricultural projects and 
     other land use-related sequestration projects; and
       ``(B) to account for business-as-usual practices for 
     specific types of sequestration projects.
       ``(2) Calculation.--Unless otherwise provided in this 
     subtitle, the region-specific discount factor for business-
     as-usual practices for sequestration projects shall be 
     calculated by dividing--
       ``(A) the difference between--
       ``(i) the quantity of greenhouse gases sequestered in the 
     region as a result of the offset practice under this 
     subtitle; and
       ``(ii) the quantity of greenhouse gases sequestered in the 
     region as a result of the projected business-as-usual 
     implementation of the applicable offset practice; by

[[Page 1425]]

       ``(B) the quantity of greenhouse gases sequestered in the 
     region as a result of the offset practice under this 
     subtitle.
       ``(3) Requirements.--
       ``(A) In general.--The regulations promulgated under this 
     section shall, to the maximum extent practicable--
       ``(i) define geographic regions with reference to land that 
     has similar agricultural characteristics; and
       ``(ii) subject to subparagraph (B), define baseline 
     historical reference periods for each category of 
     sequestration practice, using the most recent period of 
     sufficient length for which there are reasonably 
     comprehensive data available.
       ``(B) Exception.--If the Secretary of Agriculture 
     determines that entities have increased implementation of the 
     relevant offset practice during the most recent period in 
     anticipation of legislation granting credit for the offsets, 
     the regulations described in subparagraph (A)(ii) may define 
     baseline historical reference periods for each category of 
     sequestration practice using an earlier period.
       ``(d) Quantifying Sequestration Flow.--The regulations that 
     quantify sequestration flow shall include--
       ``(1) a default rate of sequestration flow, regionally 
     specific to the maximum extent practicable, for each offset 
     practice or combination of offset practices, that is 
     estimated conservatively to allow for site-specific 
     variations and data uncertainties;
       ``(2) a downward adjustment factor for any offset practice 
     or combination of practices for which, in the judgment of the 
     Secretary of Agriculture, there are substantial uncertainties 
     in the sequestration flows estimated in paragraph (1), but 
     still reasonably sufficient data to calculate a default rate 
     of flow; and
       ``(3) offset practice- or project-specific measurement, 
     monitoring, and verification requirements for--
       ``(A) offset practices or projects for which there are 
     insufficiently reliable data to calculate a default rate of 
     sequestration flow; or
       ``(B) projects for which the project proponent chooses to 
     use project-specific requirements.
       ``(e) Use of Native Plant Species in Offset Projects.--
       ``(1) Regulations.--Not later than 18 months after the date 
     of enactment of this title, the Administrator, in 
     consultation with the Secretary of Agriculture, shall 
     promulgate regulations for selection, use, and storage of 
     native and nonnative plant materials in the offset projects 
     described in paragraph (2)--
       ``(A) to ensure native plant materials are given primary 
     consideration, in accordance with applicable Department of 
     Agriculture guidance for use of native plant materials;
       ``(B) to prohibit the use of Federal- or State-designated 
     noxious weeds; and
       ``(C) to prohibit the use of a species listed by a regional 
     or State invasive plant council within the applicable region 
     or State.
       ``(2) Applicability.--The regulations under paragraph (1) 
     shall apply to qualifying offset projects described in 
     sections 733(b)(2), 734(a)(2), and 734(b)(1).

     ``SEC. 733. CATEGORIES OF AGRICULTURAL OFFSET PRACTICES.

       ``(a) Regulations.--Not later than 2 years after the date 
     of enactment of this title, the Secretary of Agriculture, in 
     consultation with the Administrator, shall promulgate 
     regulations establishing the categories of offset practices 
     that--
       ``(1) reduce greenhouse gases as a result of agricultural 
     sequestration projects; and
       ``(2) are eligible to receive offset credits under this 
     subtitle.
       ``(b) Offset Practices.--Offset practices described in 
     subsection (a) shall include--
       ``(1) agricultural sequestration practices, including--
       ``(A) no-till agriculture;
       ``(B) conservation tillage (ridge till or minimum till);
       ``(C) winter cover cropping;
       ``(D) switching from a cycle of--
       ``(i) planting wheat or other crops and then fallowing 
     land; to
       ``(ii) continuous cropping;
       ``(E) any other offset practices identified by the 
     Administrator, in consultation with the Secretary of 
     Agriculture; and
       ``(F) combinations of any of the offset practices described 
     in subparagraphs (A) through (E); and
       ``(2) conversion of cropland to rangeland or grassland.

     ``SEC. 734. OFFSET CREDITS FROM FOREST MANAGEMENT, GRAZING 
                   MANAGEMENT, AND WETLANDS MANAGEMENT.

       ``(a) Forest Management Offsets.--
       ``(1) In general.--Not later than 3 years after the date of 
     enactment of this title, the Secretary of Agriculture, in 
     consultation with the Administrator, shall promulgate 
     regulations providing for the issuance of offset credits for 
     forest management projects that provide durable, long-term 
     reductions in greenhouse gases as a result of sequestration.
       ``(2) Forest management offsets.--Forest management offset 
     projects under this section may include activities that 
     reduce greenhouse gases as a result of forest management 
     sequestration projects (including afforestation), other than 
     avoided forest land conversion as described in section 735.
       ``(3) Prohibitions.--
       ``(A) In general.--In accordance with section 732(e), no 
     afforestation project may involve the planting of invasive 
     species or noxious weeds.
       ``(B) Existing native grassland and ecosystems.--No 
     afforestation project may involve planting trees on existing 
     native grassland or other existing native non-forested 
     ecosystems that the Secretary of Agriculture determines 
     should be protected in their existing native condition.
       ``(b) Wetlands Management Offsets.--
       ``(1) In general.--Not later than 3 years after the date of 
     enactment of this title, the Administrator, in consultation 
     with the Chief of Engineers, shall promulgate regulations 
     providing for the issuance of offset credits for wetlands 
     management projects that provide durable, long-term 
     reductions in greenhouse gases as a result of sequestration.
       ``(2) Prohibitions.--
       ``(A) In general.--In accordance with section 732(e), no 
     wetlands restoration project may involve the planting of 
     invasive species or noxious weeds.
       ``(B) No new wetlands.--No wetlands offset project may be 
     carried out in an area in which underlying local hydrologic 
     processes will not support a wetland.
       ``(c) Grazing Management Offsets.--
       ``(1) In general.--Not later than 3 years after the date of 
     enactment of this title, the Secretary of Agriculture, in 
     consultation with the Administrator, shall promulgate 
     regulations providing for the issuance of offset credits for 
     grazing management projects that provide durable, long-term 
     reductions in greenhouse gases as a result of sequestration.
       ``(2) Grazing management offsets.--Grazing management 
     offset projects under this section may include activities 
     that reduce greenhouse gases as a result of grazing 
     management sequestration projects other than conversion of 
     cropland to grassland or rangeland under section 733.
       ``(d) Use of Offsets.--
       ``(1) In general.--For each calendar year, an affected unit 
     may satisfy not more than 5 percent of the total allowance 
     submission requirements of the affected unit under section 
     722 by using forest management offset credits under this 
     section.
       ``(2) Exceptions.--The limitation in paragraph (1) does not 
     apply to grazing management, afforestation, or wetland offset 
     projects.

     ``SEC. 735. OFFSET CREDITS FROM THE AVOIDED CONVERSION OF 
                   FORESTED LAND OR WETLAND.

       ``(a) In General.--Offset credits for avoided conversion of 
     forested land or wetland shall be awarded to any State that 
     reduces the conversion below expected levels for all or a 
     significant portion of the State.
       ``(b) Regulations.--Not later than 3 years after the date 
     of enactment of this title, the Administrator, in conjunction 
     with the Secretary of Agriculture, shall promulgate 
     regulations that address the eligibility of offset practices 
     that avoid the conversion of forested land or wetland to 
     nonforested land uses or drained or converted wetland to 
     receive offset credits under this subtitle, including 
     requirements that address--
       ``(1) the methodology for measuring the avoided conversion 
     of forest land or wetland, including--
       ``(A) measurement of presently on-going rates of forest 
     land conversion or wetland conversion;
       ``(B) calculation of business-as-usual rates of forest land 
     conversion or wetland conversion by reference to the 
     historical rate of conversion of forested land or wetland; 
     and
       ``(C) comparison of the rates in subparagraph (A) and 
     subparagraph (B); and
       ``(2) leakage, including--
       ``(A) adjustments for leakage using standardized regional 
     leakage factors for afforestation and wetland restoration; 
     and
       ``(B) the magnitude of the forested region or wetlands 
     region in a State in which the rate of conversion of forest 
     land or wetland must be reduced to ensure that leakage of 
     forest land or wetlands conversion is minimized.
       ``(c) Precondition.--For an offset to be creditable under 
     this section, the State must certify that the State has 
     reduced its rate of conversion of forest land or wetland over 
     a period of 5 or more consecutive years for the entire State 
     or a significant forested or wetland region in the State.
       ``(d) Award by States of Offset Credits.--States that 
     participate in the program under this section shall establish 
     transparent and equitable rules by which offset credits will 
     be awarded to owners of forested land or wetland.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Administrator, in consultation with 
     the Secretary of Agriculture, for use in awarding grants to 
     States to carry out this section $5,000,000 for each fiscal 
     year.

     ``SEC. 736. OFFSET CREDITS FROM GREENHOUSE GAS EMISSIONS 
                   REDUCTION PROJECTS.

       ``(a) In General.--Not later than 2 years after the date of 
     enactment of this title, the Administrator shall promulgate 
     regulations establishing the requirements regarding the

[[Page 1426]]

     issuance, certification, and use of offset credits for 
     greenhouse gas emissions reduction offset projects, including 
     requirements--
       ``(1) for performance standards for specific types of 
     offset projects, which represent significant improvements 
     compared to recent practices in the geographic area, to be 
     reviewed, and updated if the Administrator determines 
     updating is appropriate, every 5 years;
       ``(2) that ensure that the reductions are real, additional, 
     verifiable, enforceable, and permanent;
       ``(3) that address leakage;
       ``(4) that the reductions are not otherwise required by any 
     law (including a regulation) or other legally binding 
     requirement;
       ``(5) for the quantification, monitoring, reporting, and 
     verification of the reductions; and
       ``(6) that specify the duration of offset credits for 
     greenhouse gas emissions reduction projects under this 
     section.
       ``(b) Eligibility to Create Offset Credits.--Greenhouse gas 
     emissions reduction offset projects that commence operation 
     on or after January 1, 2007, are eligible to create offset 
     credits under this subtitle if the projects satisfy the other 
     applicable requirements of this subtitle.
       ``(c) Approved Categories of Greenhouse Gas Emissions 
     Reduction Offset Projects.--Greenhouse gas emission 
     reductions from the following types of operations shall be 
     eligible to create offsets for use under this section:
       ``(1) Landfill operations.
       ``(2) Agricultural manure management projects.
       ``(3) Wastewater treatment facilities.
       ``(4) Coal mining operations.
       ``(5) Natural gas transmission and distribution systems.
       ``(6) Electrical transmission and distribution systems.
       ``(7) Elimination or reduction in use of chemicals that 
     substitute for ozone-depleting substances.
       ``(8) Cement manufacturing.
       ``(9) Lime manufacturing.
       ``(10) Iron and steel production.
       ``(11) Aluminum production.
       ``(12) Adipic acid production.
       ``(13) Nitric acid production.
       ``(14) Semiconductor manufacturing.
       ``(15) Magnesium production and processing.
       ``(16) Fossil fuel combustion at commercial and residential 
     buildings.
       ``(d) Creation of Additional Categories of Greenhouse Gas 
     Emissions Reduction Offset Projects.--The Administrator may, 
     by regulation, create additional categories of greenhouse gas 
     emissions reduction offset projects for types of projects for 
     which the Administrator determines that compliance with the 
     regulations promulgated under subsection (a) is feasible.
       ``(e) Prohibition on Use.--Notwithstanding the eligibility 
     of greenhouse gas emission reduction projects to create 
     offset credits in accordance with subsection (c) or (d), 
     greenhouse gas emissions reduction offset projects shall not 
     be eligible to create offset credits for use under this 
     section beginning on the date on which the reductions are 
     required by law (including regulations) or other legally 
     binding requirement.

     ``SEC. 737. BORROWING AT PROGRAM START-UP BASED ON CONTRACTS 
                   TO PURCHASE OFFSET CREDITS.

       ``(a) In General.--During calendar years 2011, 2012, and 
     2013, an affected unit may satisfy not more than 5 percent of 
     the allowance submission requirements of section 722 by 
     submitting to the Administrator contractual commitments to 
     purchase offset credits that will implement an equivalent 
     quantity of emission reductions or sequestration not later 
     than December 31, 2015.
       ``(b) Approval of Qualifying Offset Projects.--Offset 
     projects that may be appropriately carried out under this 
     section shall be approved by the Administrator in accordance 
     with this subtitle.
       ``(c) Repayment by 2015.--
       ``(1) In general.--If an affected unit uses subsection (a) 
     to comply with section 722, not later than the deadline in 
     that section for allowance submissions for calendar year 
     2015, the affected unit shall submit additional credits of a 
     quantity equivalent to the sum obtained by adding--
       ``(A) the value of credits submitted to comply with credit 
     submission requirements described in subsection (a); and
       ``(B) interest calculated in accordance with paragraph (2).
       ``(2) Interest.--Interest referred to in paragraph (1)(B) 
     shall be equal to the product obtained by multiplying--
       ``(A) the number of years between--
       ``(i) the use by an affected unit of the method of 
     compliance described in subsection (a); and
       ``(ii) the submission by the affected unit of additional 
     credits under this subsection; and
       ``(B) the sum obtained by adding--
       ``(i) the Federal short-term rate, as defined pursuant to 
     section 1274(d)(1)(C)(i) of the Internal Revenue Code of 
     1986; and
       ``(ii) 2 percent.

     ``SEC. 738. REVIEW AND CORRECTION OF ACCOUNTING FOR OFFSET 
                   CREDITS.

       ``(a) Duty to Monitor.--The Secretary of Agriculture and 
     the Administrator shall monitor regularly whether offset 
     credits under the respective jurisdiction of each agency head 
     under this subtitle are being awarded only for real and 
     additional sequestration of greenhouse gases and reductions 
     in greenhouse gas emissions, including--
       ``(1) the accuracy of default calculations of sequestration 
     flow and greenhouse gas emission reductions achieved by the 
     use of offset practices;
       ``(2) the calculation of region-specific discount factors; 
     and
       ``(3) the accuracy of leakage calculations.
       ``(b) Periodic Review.--Not later than December 31, 2013, 
     and every 5 years thereafter, the Secretary of Agriculture 
     and the Administrator shall review the issuance of offset 
     credits under the respective jurisdiction of each agency head 
     under this subtitle to determine--
       ``(1) whether offset credits are being awarded only for 
     real and additional sequestration of greenhouse gases or 
     reductions in greenhouse gas emissions, as described in 
     subsection (a);
       ``(2) the amount of excessive award of any offset credits;
       ``(3) the volume of offset credits that have been or are 
     expected to be approved;
       ``(4) the impact of the offset credits on market prices; 
     and
       ``(5) the impact of the offset credits on the trajectory of 
     emissions from affected units.
       ``(c) Duty to Correct.--If the Secretary of Agriculture or 
     the Administrator determines that offset credits under the 
     respective jurisdictions of the agency head have been awarded 
     under this subtitle in excess of real and additional 
     sequestration of greenhouse gases or reductions in emissions 
     of greenhouse gases, the Secretary of Agriculture or the 
     Administrator shall--
       ``(1) promptly correct on a prospective basis the sources 
     of the errors, including correcting leakage factors, region-
     specific discount factors, default rates of sequestration 
     flow, and other relevant information for the offset practices 
     involved; and
       ``(2) quantify and publicly disclose the quantity of offset 
     credits that have been awarded in excess of real and 
     additional sequestration or emissions reductions.

              ``Subtitle C--National Registry for Credits

     ``SEC. 741. ESTABLISHMENT AND OPERATION OF NATIONAL REGISTRY.

       ``(a) In General.--Except as provided in subsection (b), 
     not later than July 1 of the year immediately prior to the 
     first calendar year in which an annual tonnage limitation on 
     the emission of greenhouse gases applies under section 
     711(b), the Administrator shall promulgate regulations to 
     establish, operate, and maintain a national registry through 
     which the Administrator shall--
       ``(1) record allocations of allowances, the issuance of 
     offset credits or early reduction credits, and the 
     recognition of international credits;
       ``(2) track transfers of credits;
       ``(3) retire all credits used for compliance;
       ``(4) subject to subsection (b), maintain transparent 
     availability of registry information to the public, including 
     the quarterly reports submitted under section 742(a);
       ``(5) prepare an annual assessment of the emission data in 
     the quarterly reports submitted under section 742(a); and
       ``(6) take such action as is necessary to maintain the 
     integrity of the registry, including adjustments to correct 
     for--
       ``(A) errors or omissions in the reporting of data; and
       ``(B) the prevention of counterfeiting, double-counting, 
     multiple registrations, multiple sales, and multiple 
     retirements of credits.
       ``(b) Exception to Public Availability of Data.--
       ``(1) In general.--Subsection (a)(4) shall not apply in any 
     case in which the Administrator, in consultation with the 
     Secretary of Defense, determines that publishing or otherwise 
     making available information in accordance with that 
     paragraph poses a risk to national security.
       ``(2) Statement of reasons.--In a case described in 
     paragraph (1), the Administrator shall publish a description 
     of the determination and the reasons for the determination.

     ``SEC. 742. MONITORING AND REPORTING.

       ``(a) Requirements.--Each owner or operator of an affected 
     unit, or to the extent applicable, the greenhouse gas 
     authorized account representative for the affected unit, 
     shall--
       ``(1) comply with the monitoring, recordkeeping, and 
     reporting requirements of part 75 of title 40, Code of 
     Federal Regulations (or successor regulations); and
       ``(2) submit to the Administrator electronic quarterly 
     reports that describe the greenhouse gas mass emission data, 
     fuel input data, and electricity output data for the affected 
     unit.
       ``(b) Biomass Cofiring.--Not later than 18 months after the 
     date of enactment of this title, the Administrator shall 
     promulgate regulations that provide monitoring, 
     recordkeeping, and reporting requirements for biomass 
     cofiring at affected units.''.
       (b) Conforming Amendments.--
       (1) Federal enforcement.--Section 113 of the Clean Air Act 
     (42 U.S.C. 7413) is amended--
       (A) in subsection (a)(3), by striking ``or title VI,'' and 
     inserting ``title VI, or title VII,'';

[[Page 1427]]

       (B) in subsection (b)--
       (i) by redesignating paragraphs (1) through (3) as 
     subparagraphs (A) through (C), respectively, and indenting 
     the subparagraphs appropriately;
       (ii) by striking ``The Administrator shall'' and inserting 
     the following:
       ``(1) In general.--The Administrator shall'';
       (iii) in paragraph (1) (as designated by clause (ii)), in 
     the matter preceding subparagraph (A) (as redesignated by 
     clause (i)), by striking ``or a major stationary source'' and 
     inserting ``a major stationary source, or an affected unit 
     under title VII''; and
       (iv) in subparagraph (B) (as redesignated by clause (i)), 
     by striking ``or title VI'' and inserting ``title VI, or 
     title VII'';
       (v) in the matter following subparagraph (C) of paragraph 
     (1) (as designated by clauses (i) and (ii))--

       (I) by striking ``Any action'' and inserting the following:

       ``(2) Judicial enforcement.--
       ``(A) In general.--Any action'';

       (II) by striking ``Notice'' and inserting the following:

       ``(B) Notice.--Notice''; and

       (III) by striking ``In the case'' and inserting the 
     following:

       ``(C) Actions brought by administrator.--In the case'';
       (C) in subsection (c)--
       (i) 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
       (ii) in the first sentence of paragraph (3), by striking 
     ``or VI'' and inserting ``VI, or VII'';
       (D) in subsection (d)(1)(B), by striking ``or VI'' and 
     inserting ``VI, or VII''; and
       (E) in subsection (f), in the first sentence, by striking 
     ``or VI'' and inserting ``VI, or VII''.
       (2) Inspections, monitoring, and entry.--Section 114(a) of 
     the Clean Air Act (42 U.S.C. 7414(a)) is amended by striking 
     ``section 112,'' and all that follows through ``(ii)'' and 
     inserting the following: ``section 112, any regulation of 
     solid waste combustion under section 129, or any regulation 
     of greenhouse gas emissions under title VII, (ii)''.
       (3) Administrative proceedings and judicial review.--
     Section 307 of the Clean Air Act (42 U.S.C. 7607) is 
     amended--
       (A) in subsection (a), by striking ``, or section 306'' and 
     inserting ``section 306, or title VII'';
       (B) in subsection (b)(1)--
       (i) by striking ``section 111,,'' and inserting ``section 
     111,'';
       (ii) by striking ``section 120,'' each place it appears and 
     inserting ``section 120, any action under title VII,''; and
       (iii) by striking ``112,,'' and inserting ``112,''; and
       (C) in subsection (d)(1)--
       (i) by striking subparagraph (S);
       (ii) by redesignating the second subparagraph (N) and 
     subparagraphs (O) through (R) as subparagraphs (O), (P), (Q), 
     (R), and (S), respectively;
       (iii) by redesignating subparagraphs (T) and (U) as 
     subparagraphs (U) and (V), respectively; and
       (iv) by inserting after subparagraph (S) (as redesignated 
     by clause (ii)) the following:
       ``(T) the promulgation or revision of any regulation under 
     title VII,''.
       (4) Unavailability of emissions data.--Section 412(d) of 
     the Clean Air Act (42 U.S.C. 7651k(d)) is amended in the 
     first sentence--
       (A) by inserting ``or title VII'' after ``under subsection 
     (a)''; and
       (B) by inserting ``or title VII'' after ``this title''.

             TITLE II--CLIMATE CHANGE RESEARCH INITIATIVES

     SEC. 201. RESEARCH GRANTS THROUGH NATIONAL SCIENCE 
                   FOUNDATION.

       Section 105 of the Global Change Research Act of 1990 (15 
     U.S.C. 2935) is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following:
       ``(c) Research Grants.--
       ``(1) List of priority research areas.--The Committee shall 
     develop a list of priority areas for research and development 
     on climate change that are not being adequately addressed by 
     Federal agencies.
       ``(2) Transmission of list.--The Director of the Office of 
     Science and Technology Policy shall submit the list developed 
     under paragraph (1) to the National Science Foundation.
       ``(3) Authorization of appropriations.--There are 
     authorized to be appropriated to the National Science 
     Foundation such sums as are necessary to carry out this 
     subsection, to be made available through the Science and 
     Technology Policy Institute, for research in the priority 
     areas.''.

     SEC. 202. ABRUPT CLIMATE CHANGE RESEARCH.

       (a) In General.--The Secretary of Commerce, acting through 
     the National Oceanic and Atmospheric Administration, shall 
     carry out a program of scientific research on abrupt climate 
     change designed to provide timely warnings of the potential 
     likelihood, magnitude, and consequences of, and measures to 
     avoid, abrupt human-induced climate change.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Commerce such sums as 
     are necessary to carry out this section.

     SEC. 203. DEVELOPMENT OF NEW MEASUREMENT TECHNOLOGIES.

       (a) In General.--The Administrator of the Environmental 
     Protection Agency shall carry out a program to develop, with 
     technical assistance from appropriate Federal agencies, 
     innovative standards and measurement technologies to 
     calculate greenhouse gas emissions or reductions for which no 
     accurate, reliable, low-cost measurement technology exists.
       (b) Administration.--The program shall include technologies 
     (including remote sensing technologies) to measure carbon 
     changes and other greenhouse gas emissions and reductions 
     from agriculture, forestry, wetlands, and other land use 
     practices.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Administrator such sums as are 
     necessary to carry out this section.

     SEC. 204. TECHNOLOGY DEVELOPMENT AND DIFFUSION.

       (a) In General.--The Director of the National Institute of 
     Standards and Technology, acting through the Manufacturing 
     Extension Partnership program, may develop a program to 
     promote the use, by small manufacturers, of technologies and 
     techniques that result in reduced emissions of greenhouse 
     gases or increased sequestration of greenhouse gases.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Director of the National Institute 
     of Standards and Technology such sums as are necessary to 
     carry out this section.

     SEC. 205. PUBLIC LAND.

       (a) In General.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary of Agriculture and the 
     Secretary of the Interior shall prepare a joint assessment or 
     separate assessments setting forth recommendations for 
     increased sequestration of greenhouse gases and reduction of 
     greenhouse gas emissions on public land that is--
       (1) managed forestland;
       (2) managed rangeland or grassland; or
       (3) protected land, including national parks and designated 
     wilderness areas.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Agriculture and the 
     Secretary of the Interior such sums as are necessary to carry 
     out this section.

     SEC. 206. SEA LEVEL RISE FROM POLAR ICE SHEET MELTING.

       (a) In General.--The Secretary of Commerce, acting through 
     the National Oceanic and Atmospheric Administration and in 
     cooperation with the Administrator of the National 
     Aeronautics and Space Administration, shall carry out a 
     program of scientific research to support modeling and 
     observations into the potential role of the Greenland, west 
     Antarctic, and east Antarctic ice sheets in any future 
     increase in sea levels.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Commerce and the 
     Administrator of the National Aeronautics and Space 
     Administration such sums as are necessary to carry out this 
     section.
                                 ______
                                 
      By Mr. AKAKA (for himself, Mr. Wyden, Mr. Bunning, Mr. Inouye, 
        and Mr. Durbin):
  S. 320. A bill to provide for the protection of paleontological 
resources on Federal lands, and for other purposes; to the Committee on 
Energy and Natural Resources.
  Mr. AKAKA. Mr. President, I rise today along with my distinguished 
colleagues, Senator Wyden, Senator Bunning, Senator Inouye, and Senator 
Durbin, to introduce the Paleontological Resources Preservation Act in 
order to protect and preserve the Nation's important fossil record for 
the benefit of our citizens. Vertebrate fossils are rare and important 
natural resources that have become increasingly endangered due to an 
increase in the illegal collection of fossil specimens for commercial 
sale. However, at this time there is no unified policy regarding the 
treatment of fossils by Federal land management agencies which would 
help protect and conserve fossil specimens. Consequently, we risk the 
deterioration or loss of these valuable scientific resources. This Act 
will correct that omission by providing uniformity to the patchwork of 
statutes and regulations that currently exist. By creating a 
comprehensive national policy for preserving and managing 
paleontological resources found on Federal land, this Act will also be 
instrumental in curtailing and preventing future illegal trade thereby 
ensuring that many generations to come will have access to these 
invaluable records of our past. I would like to emphasize that this 
bill

[[Page 1428]]

covers only paleontological remains on Federal lands and in no way 
affects archaeological or cultural resources under the Archaeological 
Resources Protection Act of 1979 or the Native American Graves 
Protection and Rehabilitation Act.
  I would also mention that this bill is exactly the same bill that I 
introduced in the 109th Congress. This bill was heard and marked up by 
the Senate Energy and Natural Resources Committee, and was passed by 
the Senate.
  As a senior member of the Senate Energy and Natural Resources 
Committee and Chair of the Subcommittee on National Parks, I am very 
concerned about the preservation of fossils as records of earth's past 
upheavals and struggles. While I recognize the value of amateur 
collecting--and casual collecting--of fossils is protected in this 
bill--fossil theft has become an increasing problem. New fossil fields 
and insights into the earth's past are discovered nearly every month. 
Paleontological resources can be sold on the market for a hefty price. 
For example, the complete skeleton of a T-Rex was sold for $8.6 million 
at auction to the Field Museum of Chicago. Consequently, they are being 
stolen from public lands without regard to science and education. The 
protections I offer in this Act are not new. Federal and management 
agencies have individual regulations prohibiting theft of government 
property. However, Congress has not provided a clear statute stating 
the value of paleontological resources to our Nation, as we have for 
archeological resources. We need to work together to make sure that we 
fulfill our responsibility as stewards of public lands, and as 
protectors of our Nation's natural resources.
  Mr. President, 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. 320

       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 ``Paleontological Resources 
     Preservation Act''.

     SEC. 2. DEFINITIONS.

       As used in this Act:
       (1) Casual collecting.--The term ``casual collecting'' 
     means the collecting of a reasonable amount of common 
     invertebrate and plant paleontological resources for non-
     commercial personal use, either by surface collection or the 
     use of non-powered hand tools resulting in only negligible 
     disturbance to the Earth's surface and other resources. As 
     used in this paragraph, the terms ``reasonable amount'', 
     ``common invertebrate and plant paleontological resources'' 
     and ``negligible disturbance'' shall be determined by the 
     Secretary.
       (2) Federal lands.--The term ``Federal lands'' means--
       (A) lands controlled or administered by the Secretary of 
     the Interior, except Indian lands; or
       (B) National Forest System lands controlled or administered 
     by the Secretary of Agriculture.
       (3) Indian lands.--The term ``Indian Land'' means lands of 
     Indian tribes, or Indian individuals, which are either held 
     in trust by the United States or subject to a restriction 
     against alienation imposed by the United States.
       (4) Paleontological resource.--The term ``paleontological 
     resource'' means any fossilized remains, traces, or imprints 
     of organisms, preserved in or on the earth's crust, that are 
     of paleontological interest and that provide information 
     about the history of life on earth, except that the term does 
     not include--
       (A) any materials associated with an archaeological 
     resource (as defined in section 3(1) of the Archaeological 
     Resources Protection Act of 1979 (16 U.S.C. 470bb(1)); or
       (B) any cultural item (as defined in section 2 of the 
     Native American Graves Protection and Repatriation Act (25 
     U.S.C. 3001)).
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior with respect to lands controlled or 
     administered by the Secretary of the Interior or the 
     Secretary of Agriculture with respect to National Forest 
     System Lands controlled or administered by the Secretary of 
     Agriculture.
       (6) State.--The term ``State'' means the fifty States, the 
     District of Columbia, the Commonwealth of Puerto Rico, and 
     any other territory or possession of the United States.

     SEC. 3. MANAGEMENT.

       (a) In General.--The Secretary shall manage and protect 
     paleontological resources on Federal lands using scientific 
     principles and expertise. The Secretary shall develop 
     appropriate plans for inventory, monitoring, and the 
     scientific and educational use of paleontological resources, 
     in accordance with applicable agency laws, regulations, and 
     policies. These plans shall emphasize interagency 
     coordination and collaborative efforts where possible with 
     non-Federal partners, the scientific community, and the 
     general public.
       (b) Coordination.--To the extent possible, the Secretary of 
     the Interior and the Secretary of Agriculture shall 
     coordinate in the implementation of this Act.

     SEC. 4. PUBLIC AWARENESS AND EDUCATION PROGRAM.

       The Secretary shall establish a program to increase public 
     awareness about the significance of paleontological 
     resources.

     SEC. 5. COLLECTION OF PALEONTOLOGICAL RESOURCES.

       (a) Permit Requirement.--
       (1) In general.--Except as provided in this Act, a 
     paleontological resource may not be collected from Federal 
     lands without a permit issued under this Act by the 
     Secretary.
       (2) Casual collecting exception.--The Secretary may allow 
     casual collecting without a permit on Federal lands 
     controlled or administered by the Bureau of Land Management, 
     the Bureau of Reclamation, and the Forest Service, where such 
     collection is consistent with the laws governing the 
     management of those Federal lands and this Act.
       (3) Previous permit exception.--Nothing in this section 
     shall affect a valid permit issued prior to the date of 
     enactment of this Act.
       (b) Criteria for Issuance of a Permit.--The Secretary may 
     issue a permit for the collection of a paleontological 
     resource pursuant to an application if the Secretary 
     determines that--
       (1) the applicant is qualified to carry out the permitted 
     activity;
       (2) the permitted activity is undertaken for the purpose of 
     furthering paleontological knowledge or for public education;
       (3) the permitted activity is consistent with any 
     management plan applicable to the Federal lands concerned; 
     and
       (4) the proposed methods of collecting will not threaten 
     significant natural or cultural resources.
       (c) Permit Specifications.--A permit for the collection of 
     a paleontological resource issued under this section shall 
     contain such terms and conditions as the Secretary deems 
     necessary to carry out the purposes of this Act. Every permit 
     shall include requirements that--
       (1) the paleontological resource that is collected from 
     Federal lands under the permit will remain the property of 
     the United States;
       (2) the paleontological resource and copies of associated 
     records will be preserved for the public in an approved 
     repository, to be made available for scientific research and 
     public education; and
       (3) specific locality data will not be released by the 
     permittee or repository without the written permission of the 
     Secretary.
       (d) Modification, Suspension, and Revocation of Permits.--
       (1) The Secretary may modify, suspend, or revoke a permit 
     issued under this section--
       (A) for resource, safety, or other management 
     considerations; or
       (B) when there is a violation of term or condition of a 
     permit issued pursuant to this section.
       (2) The permit shall be revoked if any person working under 
     the authority of the permit is convicted under section 7 or 
     is assessed a civil penalty under section 8.
       (e) Area Closures.--In order to protect paleontological or 
     other resources and to provide for public safety, the 
     Secretary may restrict access to or close areas under the 
     Secretary's jurisdiction to the collection of paleontological 
     resources.

     SEC. 6. CURATION OF RESOURCES.

       Any paleontological resource, and any data and records 
     associated with the resource, collected under a permit, shall 
     be deposited in an approved repository. The Secretary may 
     enter into agreements with non-Federal repositories regarding 
     the curation of these resources, data, and records.

     SEC. 7. PROHIBITED ACTS; CRIMINAL PENALTIES.

       (a) In General.--A person may not--
       (1) excavate, remove, damage, or otherwise alter or deface 
     or attempt to excavate, remove, damage, or otherwise alter or 
     deface any paleontological resources located on Federal lands 
     unless such activity is conducted in accordance with this 
     Act;
       (2) exchange, transport, export, receive, or offer to 
     exchange, transport, export, or receive any paleontological 
     resource if, in the exercise of due care, the person knew or 
     should have known such resource to have been excavated or 
     removed from Federal lands in violation of any provisions, 
     rule, regulation, law, ordinance, or permit in effect under 
     Federal law, including this Act; or
       (3) sell or purchase or offer to sell or purchase any 
     paleontological resource if, in the exercise of due care, the 
     person knew or should have known such resource to have been 
     excavated, removed, sold, purchased, exchanged, transported, 
     or received from Federal lands.
       (b) False Labeling Offenses.--A person may not make or 
     submit any false record,

[[Page 1429]]

     account, or label for, or any false identification of, any 
     paleontological resource excavated or removed from Federal 
     lands.
       (c) Penalties.--A person who knowingly violates or 
     counsels, procures, solicits, or employs another person to 
     violate subsection (a) or (b) shall, upon conviction, be 
     fined in accordance with title 18, United States Code, or 
     imprisoned not more than 10 years, or both; but if the sum of 
     the commercial and paleontological value of the 
     paleontological resources involved and the cost of 
     restoration and repair of such resources does not exceed 
     $500, such person shall be fined in accordance with title 18, 
     United States Code, or imprisoned not more than one year, or 
     both.
       (d) General Exception.--Nothing in subsection (a) shall 
     apply to any person with respect to any paleontological 
     resource which was in the lawful possession of such person 
     prior to the date of the enactment of this Act.

     SEC. 8. CIVIL PENALTIES.

       (a) In General.--
       (1) Hearing.--A person who violates any prohibition 
     contained in an applicable regulation or permit issued under 
     this Act may be assessed a penalty by the Secretary after the 
     person is given notice and opportunity for a hearing with 
     respect to the violation. Each violation shall be considered 
     a separate offense for purposes of this section.
       (2) Amount of penalty.--The amount of such penalty assessed 
     under paragraph (1) shall be determined under regulations 
     promulgated pursuant to this Act, taking into account the 
     following factors:
       (A) The scientific or fair market value, whichever is 
     greater, of the paleontological resource involved, as 
     determined by the Secretary.
       (B) The cost of response, restoration, and repair of the 
     resource and the paleontological site involved.
       (C) Any other factors considered relevant by the Secretary 
     assessing the penalty.
       (3) Multiple offenses.--In the case of a second or 
     subsequent violation by the same person, the amount of a 
     penalty assessed under paragraph (2) may be doubled.
       (4) Limitation.--The amount of any penalty assessed under 
     this subsection for any one violation shall not exceed an 
     amount equal to double the cost of response, restoration, and 
     repair of resources and paleontological site damage plus 
     double the scientific or fair market value of resources 
     destroyed or not recovered.
       (b) Petition for Judicial Review; Collection of Unpaid 
     Assessments.--
       (1) Judicial review.--Any person against whom an order is 
     issued assessing a penalty under subsection (a) may file a 
     petition for judicial review of the order in the United 
     States District Court for the District of Columbia or in the 
     district in which the violation is alleged to have occurred 
     within the 30-day period beginning on the date the order 
     making the assessment was issued. Upon notice of such filing, 
     the Secretary shall promptly file such a certified copy of 
     the record on which the order was issued. The court shall 
     hear the action on the record made before the Secretary and 
     shall sustain the action if it is supported by substantial 
     evidence on the record considered as a whole.
       (2) Failure to pay.--If any person fails to pay a penalty 
     under this section within 30 days--
       (A) after the order making assessment has become final and 
     the person has not filed a petition for judicial review of 
     the order in accordance with paragraph (1); or
       (B) after a court in an action brought in paragraph (1) has 
     entered a final judgment upholding the assessment of the 
     penalty, the Secretary may request the Attorney General to 
     institute a civil action in a district court of the United 
     States for any district in which the person if found, 
     resides, or transacts business, to collect the penalty (plus 
     interest at currently prevailing rates from the date of the 
     final order or the date of the final judgment, as the case 
     may be). The district court shall have jurisdiction to hear 
     and decide any such action. In such action, the validity, 
     amount, and appropriateness of such penalty shall not be 
     subject to review. Any person who fails to pay on a timely 
     basis the amount of an assessment of a civil penalty as 
     described in the first sentence of this paragraph shall be 
     required to pay, in addition to such amount and interest, 
     attorneys fees and costs for collection proceedings.
       (c) Hearings.--Hearings held during proceedings instituted 
     under subsection (a) shall be conducted in accordance with 
     section 554 of title 5, United States Code.
       (d) Use of Recovered Amounts.--Penalties collected under 
     this section shall be available to the Secretary and without 
     further appropriation may be used only as follows:
       (1) To protect, restore, or repair the paleontological 
     resources and sites which were the subject of the action, or 
     to acquire sites with equivalent resources, and to protect, 
     monitor, and study the resources and sites. Any acquisition 
     shall be subject to any limitations contained in the organic 
     legislation for such Federal lands.
       (2) To provide educational materials to the public about 
     paleontological resources and sites.
       (3) To provide for the payment of rewards as provided in 
     section 9.

     SEC. 9. REWARDS AND FORFEITURE.

       (a) Rewards.--The Secretary may pay from penalties 
     collected under section 7 or 8--
       (1) consistent with amounts established in regulations by 
     the Secretary; or
       (2) if no such regulation exists, an amount equal to the 
     lesser of one-half of the penalty or $500, to any person who 
     furnishes information which leads to the finding of a civil 
     violation, or the conviction of criminal violation, with 
     respect to which the penalty was paid. If several persons 
     provided the information, the amount shall be divided among 
     the persons. No officer or employee of the United States or 
     of any State or local government who furnishes information or 
     renders service in the performance of his official duties 
     shall be eligible for payment under this subsection.
       (b) Forfeiture.--All paleontological resources with respect 
     to which a violation under section 7 or 8 occurred and which 
     are in the possession of any person, and all vehicles and 
     equipment of any person that were used in connection with the 
     violation, shall be subject to civil forfeiture, or upon 
     conviction, to criminal forfeiture. All provisions of law 
     relating to the seizure, forfeiture, and condemnation of 
     property for a violation of this Act, the disposition of such 
     property or the proceeds from the sale thereof, and remission 
     or mitigation of such forfeiture, as well as the procedural 
     provisions of chapter 46 of title 18, United States Code, 
     shall apply to the seizures and forfeitures incurred or 
     alleged to have incurred under the provisions of this Act.
       (c) Transfer of Seized Resources.--The Secretary may 
     transfer administration of seized paleontological resources 
     to Federal or non-Federal educational institutions to be used 
     for scientific or educational purposes.

     SEC. 10. CONFIDENTIALITY.

       Information concerning the nature and specific location of 
     a paleontological resource the collection of which requires a 
     permit under this Act or under any other provision of Federal 
     law shall be exempt from disclosure under section 552 of 
     title 5, United States Code, and any other law unless the 
     Secretary determines that disclosure would--
       (1) further the purposes of this Act;
       (2) not create risk of harm to or theft or destruction of 
     the resource or the site containing the resource; and
       (3) be in accordance with other applicable laws.

     SEC. 11. REGULATIONS.

       As soon as practical after the date of the enactment of 
     this Act, the Secretary shall issue such regulations as are 
     appropriate to carry out this Act, providing opportunities 
     for public notice and comment.

     SEC. 12. SAVINGS PROVISIONS.

       Nothing in this Act shall be construed to--
       (1) invalidate, modify, or impose any additional 
     restrictions or permitting requirements on any activities 
     permitted at any time under the general mining laws, the 
     mineral or geothermal leasing laws, laws providing for 
     minerals materials disposal, or laws providing for the 
     management or regulation of the activities authorized by the 
     aforementioned laws including but not limited to the Federal 
     Land Policy Management Act (43 U.S.C. 1701-1784), Public Law 
     94-429 (commonly known as the ``Mining in the Parks Act'') 
     (16 U.S.C. 1901 et seq.), the Surface Mining Control and 
     Reclamation Act of 1977 (30 U.S.C. 1201-1358), and the 
     Organic Administration Act (16 U.S.C. 478, 482, 551);
       (2) invalidate, modify, or impose any additional 
     restrictions or permitting requirements on any activities 
     permitted at any time under existing laws and authorities 
     relating to reclamation and multiple uses of Federal lands;
       (3) apply to, or require a permit for, casual collecting of 
     a rock, mineral, or invertebrate or plant fossil that is not 
     protected under this Act;
       (4) affect any lands other than Federal lands or affect the 
     lawful recovery, collection, or sale of paleontological 
     resources from lands other than Federal lands;
       (5) alter or diminish the authority of a Federal agency 
     under any other law to provide protection for paleontological 
     resources on Federal lands in addition to the protection 
     provided under this Act; or
       (6) create any right, privilege, benefit, or entitlement 
     for any person who is not an officer or employee of the 
     United States acting in that capacity. No person who is not 
     an officer or employee of the United States acting in that 
     capacity shall have standing to file any civil action in a 
     court of the United States to enforce any provision or 
     amendment made by this Act.

     SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary to carry out this Act.
                                 ______
                                 
      By Mr. DORGAN (for himself, Ms. Murkowski, Mr. McCain, Mr. 
        Conrad, Mr. Bingaman, Mr. Baucus, Mr. Smith, and Mr. Inouye):
  S. 322. A bill to establish an Indian youth telemental health 
demonstration project; to the Committee on Indian Affairs.

[[Page 1430]]


  Mr. DORGAN. Mr. President, I rise today to re-introduce legislation 
which would provide a first important step in dealing with the crisis 
of youth suicide in Indian Country.
  The legislation I am introducing today is almost identical to 
legislation that the Senate passed in May, 2006, to establish an Indian 
youth telemental health demonstration project. The Indian Youth 
Telemental Health Demonstration Project Act of 2007 would authorize the 
Secretary of Health and Human Services to carry out a 4-year 
demonstration project under which five tribes and tribal organizations 
with telehealth capabilities could use telemental health services in 
youth suicide prevention, intervention, and treatment. Demonstration 
project grantees would provide services through telemental health for 
such purposes as counseling of Indian youth; providing medical advice 
and other assistance to frontline tribal health providers; training for 
community members, tribal elected officials, tribal educators, and 
health workers and others who work with Indian youth; developing 
culturally sensitive materials on suicide prevention and intervention; 
and collecting and reporting of data.
  The Committee on Indian Affairs held three hearings during the 109th 
Congress on the issue of Indian youth suicide, including one hearing 
that I convened in Bismarck, ND. Although on the Indian reservations of 
the northern Great Plains, the rate of Indian youth suicide is 10 times 
higher than it is anywhere else in the country, this tragic issue is 
not limited to these locations. The committee has heard testimony from 
people from tribal communities in Arizona, Oregon, Washington, Alaska, 
New Mexico, and Wyoming, as well.
  According to 2004 statistics from the National Center for Injury 
Prevention and Control, suicide is the second leading cause of death, 
behind unintentional injury, for American Indian and Alaska Native 
young adults 15 to 24 years old, of both sexes--a statistic that has 
sadly been true for the past 20 years. For North Dakota Indian girls 15 
to 24 years old in 2004, suicide was the number one leading cause of 
death.
  I am grateful for the efforts of the Indian Health Service and the 
Substance Abuse and Mental Health Services Administration, in 
particular, both of which have, in a host of ways, sought to address 
the reservation youth suicide crisis. SAMHSA is providing a 4-year 
grant to the Standing Rock Sioux Tribe of North and South Dakota--a 
tribe that had 12 Indian youth die by suicide over a 6-month period--to 
provide mental health outreach workers. In addition, across the 
country, tribal leaders, tribal health professionals, and service 
providers and family members are working together to implement early 
intervention plans, improve access to prevention programs, promote 
community training and awareness, and reinstate traditional tribal 
practices and culture-based interventions to address Native youth 
suicides.
  Many Indian reservations and Native villages in Alaska are remote and 
isolated, and everyone who lives in those communities experiences much 
more limited access to mental health services than in our Nation's 
metropolitan areas. The testimony received by the Indian Affairs 
Committee indicates that it is particularly in these remote Native 
communities that there is a crisis among the youth. I believe that the 
use of telemedicine--or, for purposes of this legislation, telemental 
health--will prove a useful resource for the several tribes or tribal 
organizations that will participate in this demonstration project in 
assisting their youth.
  In addition to introducing this legislation, I will include 
authorization of this Indian Youth Telemental Health Demonstration 
Project in legislation to reauthorize and amend the Indian Health Care 
Improvement Act, which I intend to introduce soon.
  I thank my colleagues who have joined me in sponsoring this 
legislation and in being willing to talk and think hard about an issue 
that many believe should be kept hidden. We must find ways to prevent 
the needless loss of young Native American boys and girls whose whole 
lives lie ahead of them, and from whom their tribal communities and all 
of this country stand to benefit as these youth blossom in to their 
potential as adults. I look forward to continuing our efforts to 
address this sensitive and very important issue. I urge my colleagues 
to support this legislation. I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 322

       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 ``Indian Youth Telemental 
     Health Demonstration Project Act of 2007''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) suicide for Indians and Alaska Natives is 2\1/2\ times 
     higher than the national average and the highest for all 
     ethnic groups in the United States, at a rate of more than 16 
     per 100,000 males of all age groups, and 27.9 per 100,000 for 
     males aged 15 through 24, according to data for 2002;
       (2) according to national data for 2004, suicide was the 
     second-leading cause of death for Indians and Alaska Natives 
     of both sexes aged 10 through 34;
       (3) the suicide rates of Indian and Alaska Native males 
     aged 15 through 24 are nearly 4 times greater than suicide 
     rates of Indian and Alaska Native females of that age group;
       (4)(A) 90 percent of all teens who die by suicide suffer 
     from a diagnosable mental illness at the time of death; and
       (B) more than \1/2\ of the people who commit suicide in 
     Indian Country have never been seen by a mental health 
     provider;
       (5) death rates for Indians and Alaska Natives are 
     statistically underestimated;
       (6) suicide clustering in Indian Country affects entire 
     tribal communities; and
       (7) since 2003, the Indian Health Service has carried out a 
     National Suicide Prevention Initiative to work with Service, 
     tribal, and urban Indian health programs.
       (b) Purpose.--The purpose of this Act is to authorize the 
     Secretary to carry out a demonstration project to test the 
     use of telemental health services in suicide prevention, 
     intervention, and treatment of Indian youth, including 
     through--
       (1) the use of psychotherapy, psychiatric assessments, 
     diagnostic interviews, therapies for mental health conditions 
     predisposing to suicide, and alcohol and substance abuse 
     treatment;
       (2) the provision of clinical expertise to, consultation 
     services with, and medical advice and training for frontline 
     health care providers working with Indian youth;
       (3) training and related support for community leaders, 
     family members and health and education workers who work with 
     Indian youth;
       (4) the development of culturally-relevant educational 
     materials on suicide; and
       (5) data collection and reporting.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Demonstration project.--The term ``demonstration 
     project'' means the Indian youth telemental health 
     demonstration project authorized under section 4(a).
       (2) Department.--The term ``Department'' means the 
     Department of Health and Human Services.
       (3) Indian.--The term ``Indian'' means any individual who 
     is a member of an Indian tribe or is eligible for health 
     services under the Indian Health Care Improvement Act (25 
     U.S.C. 1601 et seq.).
       (4) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (6) Service.--The term ``Service'' means the Indian Health 
     Service.
       (7) Telemental health.--The term ``telemental health'' 
     means the use of electronic information and 
     telecommunications technologies to support long distance 
     mental health care, patient and professional-related 
     education, public health, and health administration.
       (8) Tribal organization.--The term ``tribal organization'' 
     has the meaning given the term in section 4 of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b).

     SEC. 4. INDIAN YOUTH TELEMENTAL HEALTH DEMONSTRATION PROJECT.

       (a) Authorization.--
       (1) In general.--The Secretary is authorized to carry out a 
     demonstration project to award grants for the provision of 
     telemental health services to Indian youth who--
       (A) have expressed suicidal ideas;
       (B) have attempted suicide; or
       (C) have mental health conditions that increase or could 
     increase the risk of suicide.
       (2) Eligibility for grants.--Grants described in paragraph 
     (1) shall be awarded to Indian tribes and tribal 
     organizations that operate 1 or more facilities--
       (A) located in Alaska and part of the Alaska Federal Health 
     Care Access Network;

[[Page 1431]]

       (B) reporting active clinical telehealth capabilities; or
       (C) offering school-based telemental health services 
     relating to psychiatry to Indian youth.
       (3) Grant period.--The Secretary shall award grants under 
     this section for a period of up to 4 years.
       (4) Maximum number of grants.--Not more than 5 grants shall 
     be provided under paragraph (1), with priority consideration 
     given to Indian tribes and tribal organizations that--
       (A) serve a particular community or geographic area in 
     which there is a demonstrated need to address Indian youth 
     suicide;
       (B) enter into collaborative partnerships with Service or 
     other tribal health programs or facilities to provide 
     services under this demonstration project;
       (C) serve an isolated community or geographic area which 
     has limited or no access to behavioral health services; or
       (D) operate a detention facility at which Indian youth are 
     detained.
       (b) Use of Funds.--
       (1) In general.--An Indian tribe or tribal organization 
     shall use a grant received under subsection (a) for the 
     following purposes:
       (A) To provide telemental health services to Indian youth, 
     including the provision of--
       (i) psychotherapy;
       (ii) psychiatric assessments and diagnostic interviews, 
     therapies for mental health conditions predisposing to 
     suicide, and treatment; and
       (iii) alcohol and substance abuse treatment.
       (B) To provide clinician-interactive medical advice, 
     guidance and training, assistance in diagnosis and 
     interpretation, crisis counseling and intervention, and 
     related assistance to Service or tribal clinicians and health 
     services providers working with youth being served under the 
     demonstration project.
       (C) To assist, educate, and train community leaders, health 
     education professionals and paraprofessionals, tribal 
     outreach workers, and family members who work with the youth 
     receiving telemental health services under the demonstration 
     project, including with identification of suicidal 
     tendencies, crisis intervention and suicide prevention, 
     emergency skill development, and building and expanding 
     networks among those individuals and with State and local 
     health services providers.
       (D) To develop and distribute culturally-appropriate 
     community educational materials on--
       (i) suicide prevention;
       (ii) suicide education;
       (iii) suicide screening;
       (iv) suicide intervention; and
       (v) ways to mobilize communities with respect to the 
     identification of risk factors for suicide.
       (E) To conduct data collection and reporting relating to 
     Indian youth suicide prevention efforts.
       (2) Traditional health care practices.--In carrying out the 
     purposes described in paragraph (1), an Indian tribe or 
     tribal organization may use and promote the traditional 
     health care practices of the Indian tribes of the youth to be 
     served.
       (c) Applications.--To be eligible to receive a grant under 
     subsection (a), an Indian tribe or tribal organization shall 
     prepare and submit to the Secretary an application, at such 
     time, in such manner, and containing such information as the 
     Secretary may require, including--
       (1) a description of the project that the Indian tribe or 
     tribal organization will carry out using the funds provided 
     under the grant;
       (2) a description of the manner in which the project funded 
     under the grant would--
       (A) meet the telemental health care needs of the Indian 
     youth population to be served by the project; or
       (B) improve the access of the Indian youth population to be 
     served to suicide prevention and treatment services;
       (3) evidence of support for the project from the local 
     community to be served by the project;
       (4) a description of how the families and leadership of the 
     communities or populations to be served by the project would 
     be involved in the development and ongoing operations of the 
     project;
       (5) a plan to involve the tribal community of the youth who 
     are provided services by the project in planning and 
     evaluating the mental health care and suicide prevention 
     efforts provided, in order to ensure the integration of 
     community, clinical, environmental, and cultural components 
     of the treatment; and
       (6) a plan for sustaining the project after Federal 
     assistance for the demonstration project has terminated.
       (d) Collaboration.--The Secretary, acting through the 
     Service, shall encourage Indian tribes and tribal 
     organizations receiving grants under this section to 
     collaborate to enable comparisons about best practices across 
     projects.
       (e) Annual Report.--Each grant recipient shall submit to 
     the Secretary an annual report that--
       (1) describes the number of telemental health services 
     provided; and
       (2) includes any other information that the Secretary may 
     require.
       (f) Report to Congress.--Not later than 270 days after the 
     date of termination of the demonstration project, the 
     Secretary shall submit to the Committee on Indian Affairs of 
     the Senate and the Committee on Resources and the Committee 
     on Energy and Commerce of the House of Representatives a 
     final report that--
       (1) describes the results of the projects funded by grants 
     awarded under this section, including any data available that 
     indicate the number of attempted suicides;
       (2) evaluates the impact of the telemental health services 
     funded by the grants in reducing the number of completed 
     suicides among Indian youth;
       (3) evaluates whether the demonstration project should be--
       (A) expanded to provide more than 5 grants; and
       (B) designated a permanent program; and
       (4) evaluates the benefits of expanding the demonstration 
     project to include urban Indian organizations.
       (g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $1,500,000 for 
     each of fiscal years 2008 through 2011.
                                 ______
                                 
      By Mrs. BOXER:
  S. 323. A bill to require persons seeking approval for a liquefied 
natural gas facility to identify employees and agents engaged in 
activities to persuade communities of the benefits of the approval; to 
the Committee on Energy and Natural Resources.
  Mrs. BOXER. Mr. President, I rise to discuss liquified natural gas 
projects in California. As of August of last year, there are five 
potential liquified natural gas projects in California. The projects 
include the Cabrillo Deepwater Port LNG Facility, Clearwater Port LNG 
Project, Long Beach LNG Facility, Ocean Way LNG Terminal, and the 
Pacific Gateway LNG Facility.
  LNG is natural gas in its liquid form. When natural gas is cooled to 
minus 259 degrees Fahrenheit, it becomes a clear, colorless, odorless 
liquid. Natural gas is transferred into LNG to transport it more 
easily.
  Although there is a need for natural gas, there are potential safety 
concerns with the siting of new LNG facilities. According to the 
California Energy Commission, ``LNG hazards result from three of its 
properties: cryogenic temperatures, dispersion characteristics, and 
flammability characteristics. The extremely cold LNG can directly cause 
injury or damage. A vapor cloud, formed by an LNG spill, could drift 
downwind into populated areas. It can ignite if the concentration of 
natural gas is between five and 15 percent in air and it encounters an 
ignition source. An LNG fire gives off a tremendous amount of heat.''
  This is why many people who live near a potential LNG facility have 
safety concerns. As a result, many companies try to ``sell'' the 
projects to communities.
  That is why today I am introducing this common sense bill. This bill 
is identical to legislation that I introduced in the 109th Congress.
  It would require any company seeking Federal Government approval to 
submit, as part or its application, the names of employees and business 
agents who are trying to persuade communities of the benefits of the 
LNG facility.
  This bill does not stop anyone from reaching out to local 
communities. What this bill says is that if you are trying to get 
approval for an LNG facility, whether on- or off-shore, you have to be 
public about it. Today, if someone lobbies the federal government, he 
or she needs to register so their affiliation and interests before the 
government are publicly known. We should do the same for these 
projects. As I said, it is common sense.
  I urge my colleagues to support this bill. I ask unanimous consent 
that the text of my 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. 323

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

     SECTION 1. IDENTIFICATION OF PROPONENTS OF APPROVAL OF 
                   LIQUIFIED NATURAL GAS FACILITIES.

       (a) Liquefied Natural Gas Facilities Requiring FERC 
     Approval.--The Federal Energy Regulatory Commission shall--
       (1) require an applicant for approval, by the Commission 
     under the Natural Gas Act

[[Page 1432]]

     (15 U.S.C. 717 et seq.), of the siting, construction, 
     expansion, or operation of a liquefied natural gas facility 
     to identify each of the employees and agents of the applicant 
     that are engaged, directly or indirectly, in activities to 
     persuade communities of the benefits of the approval; and
       (2) maintain a publicly available database listing the 
     names of the employees and agents.
       (b) Off-Shore Liquified Natural Gas Facilities.--The 
     Secretary of Transportation and the Secretary of the 
     department in which the Coast Guard is operating shall--
       (1) require an applicant for approval, by the appropriate 
     Secretary under the Deepwater Port Act of 1974 (33 U.S.C. 
     1501 et seq.), of the siting, construction, expansion, or 
     operation of a liquefied natural gas facility to identify 
     each of the employees and agents of the applicant that are 
     engaged, directly or indirectly, in activities to persuade 
     communities of the benefits of the approval; and
       (2) maintain a publicly available database listing the 
     names of the employees and agents.
                                 ______
                                 
      By Mr. DOMENICI (for himself and Mr. Bingaman):
  S. 324. A bill to direct the Secretary of the Interior to conduct a 
study of water resources in the State of New Mexico; to the Committee 
on Energy and Natural Resources.
  Mr. DOMENICI. Mr. President, above-average rainfall in New Mexico 
last summer and recent snow fall have led many to turn a blind eye to 
the grim water situation faced by our State only months ago. New Mexico 
was fast approaching a disaster due to drought. Many of our 
municipalities' wells were running dry and reservoirs were at 
dangerously low levels. Providence intervened, narrowly averting a 
crisis resulting from water scarcity.
  The development of the centrifugal pump was an event of great 
significance in the history of the West. Windmill driven pumps provided 
enough water for a family and several livestock. The centrifugal pump, 
on the other hand, was capable of pumping eight hundred gallons of 
water a minute, making possible the habitation of what was previously 
barren desert. To a large extent, this invention provided the water for 
growing towns and agricultural industry. However, it also resulted in a 
great dependence on groundwater. As such, we need to fully understand 
the nature and extent of our groundwater resources. This bill will 
provide us with the information necessary to ensure that the water on 
which we have come to rely is available for years to come.
  During times of drought, when surface water is scarce, we must be 
able to reliably turn to groundwater reserves. Approximately 90 percent 
of New Mexicans depend on groundwater for drinking water and 77 percent 
of New Mexicans obtain water exclusively from groundwater sources. 
While groundwater supplies throughout the State are coming under 
increasing competition, not enough is known about these resources in 
order to make sound decisions regarding their use.
  Nearly 40 percent of the State's population resides in the Middle Rio 
Grande Basin. Once thought to contain vast quantities of water, we are 
now faced with the reality the Middle Rio Grande Basin contains far 
less water than originally thought. Between 1995 and 2001, the United 
States Geological Survey undertook a study of the Basin which added 
greatly to our knowledge regarding the primary source of water for our 
largest population center. Had we proceeded with our water planning 
without the information provided by this study, I have little doubt 
that we would ultimately find ourselves in a dire situation. However, 
there is much more to be learned about this Basin.
  Roughly 65 percent of the State's population lives along the Rio 
Grande. Also located along the river are the four largest cities in New 
Mexico: Santa Fe, Albuquerque, Rio Rancho and Las Cruces. While the 
completion of the San Juan-Chama Diversion by the Albuquerque 
Bernalillo County Water Utility Authority will allow the County of 
Bernalillo and City of Albuquerque to take advantage of their 
allocation of San JuanChama water, the remainder of the cities and 
counties located along the Rio Grande will continue to receive the 
majority of their water from aquifers beneath the Rio Grande. Aside 
from the Middle Rio Grande Basin, we have limited knowledge of the 
amount of water contained in the aquifers below the Rio Grande, the 
rate at which they recharge, aquifer contamination, and the interaction 
between surface flows and ground water.
  Elsewhere in the State, even less is understood regarding groundwater 
resources. While there is limited unallocated surface water in the 
State, there are significant quantities of untapped underground water 
in the Tularosa and Salt Basins. The Tularosa Basin is approximately 60 
miles wide and 200 miles long. Making the conservative estimate that 10 
percent of the water contained in that aquifer is available for use 
through desalination, it would provide 100 years of water for a city 
the size of Albuquerque. With the development of desalination 
technology, I anticipate that even a greater amount of the brackish 
water contained in the Tularosa Basin will be available for human use.
  Another untapped water supply is the Salt Basin located in southern 
New Mexico. The Basin lies in a geologically complex area and our 
understanding of the total resource is incomplete. However, initial 
estimates predict sustainable withdrawals on the order of 100,000 acre-
feet per year of potable water from the New Mexico portion of the 
aquifer. This is enough water to support a city the size of our largest 
municipal area. Additional brackish resources in that Basin are highly 
likely. Because the Basin is located near expanding metropolitan areas 
near the U.S.-Mexico Border, it is a resource of critical importance.
  The bill I introduce today would direct the United States Geological 
Survey, in collaboration with the State of New Mexico, to undertake a 
groundwater resources study in the State of New Mexico. A comprehensive 
study of the State's water resources is critical to effective water 
planning. Absent such a study, I fear that there is a significant 
likelihood that we may be depleting aquifers at an unsustainable rate.
  I thank Senator Bingaman for being an original co-sponsor of this 
legislation. I look forward to working with him to ensure the bill's 
passage.
  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. 324

       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 ``New Mexico Aquifer 
     Assessment Act of 2007''.

     SEC. 2. NEW MEXICO WATER RESOURCES STUDY.

       (a) In General.--The Secretary of the Interior, acting 
     through the Director of the United States Geological Survey 
     (referred to in this Act as the ``Secretary''), in 
     coordination with the State of New Mexico (referred to in 
     this Act as the ``State'') and any other entities that the 
     Secretary determines to be appropriate (including other 
     Federal agencies and institutions of higher education), 
     shall, in accordance with this Act and any other applicable 
     law, conduct a study of water resources in the State, 
     including--
       (1) a survey of groundwater resources, including an 
     analysis of--
       (A) aquifers in the State, including the quantity of water 
     in the aquifers;
       (B) the availability of groundwater resources for human 
     use;
       (C) the salinity of groundwater resources;
       (D) the potential of the groundwater resources to recharge;
       (E) the interaction between groundwater and surface water;
       (F) the susceptibility of the aquifers to contamination; 
     and
       (G) any other relevant criteria; and
       (2) a characterization of surface and bedrock geology, 
     including the effect of the geology on groundwater yield and 
     quality.
       (b) Study Areas.--The study carried out under subsection 
     (a) shall include the Estancia Basin, Salt Basin, Tularosa 
     Basin, Hueco Basin, and middle Rio Grande Basin in the State.
       (c) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Energy and Natural Resources of the Senate and 
     the Committee on Resources of the House of Representatives a 
     report that describes the results of the study.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this Act.
                                 ______
                                 
      By Mr. BINGAMAN (for himself and Mr. Voinovich):

[[Page 1433]]

  S. 325. A bill to provide for innovation in heath care through State 
initiatives that expand coverage and access and improve quality and 
efficiency in the health care system; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. BINGAMAN. Mr. President, I rise today to introduce bipartisan 
legislation with Senator Voinovich entitled the ``Health Partnership 
Act of 2007,'' which along with a companion House bill introduced by 
Representatives Tammy Baldwin, John Tierney, and Tom Price, intends to 
set us on a path toward affordable, quality health care for all 
Americans. The Health Partnership Act creates partnerships between the 
Federal Government, State and local governments, tribes and tribal 
organizations, private payers, and health care providers to seek 
innovation in health care systems.
  Under this Act, States, local governments, and tribes and tribal 
governments would be invited to submit applications to the Federal 
Government for funding to implement expansion and improvements to 
current health programs for review by a bipartisan ``State Health 
Innovation Commission.'' Based on funding available through the Federal 
budget process, the Commission would approve a variety of reform 
options and innovative approaches.
  This federalist approach to health reform would encourage a broad 
array of reform options subject to monitoring, to determine what is and 
is not successful. As Supreme Court Justice Louis D. Brandeis wrote in 
1932, ``It is one of the happy incidents of the federal system that a 
single courageous State may, if its citizens choose, serve as a 
laboratory; and try novel social and economic experiments without risk 
to the rest of the country.''
  Our bipartisan legislation, the ``Health Partnership Act,'' 
encourages this type of State-based innovation and will help the Nation 
better address both the policy and the politics of health care reform. 
Currently, we do not have a ``one-size-fits-all'' model of reform, so 
encouraging States, local governments, and tribes to adopt a variety of 
approaches will help us better understand what may or may not work.
  Inaction on the growing and related problems of the uninsured and 
increasing health care costs is unacceptable and unconscionable.
  In fact, while spending on health care in our country has reached $2 
trillion annually, the number of uninsured has increased to nearly 47 
million people, seven million more than in 2000. The consequences are 
staggering, as uninsured citizens get about half the medical care they 
need compared to those with health insurance and, according to the 
Institute of Medicine, about 18,000 unnecessary deaths occur each year 
in the U.S. because of lack of health insurance.
  While gridlock continues to permeate Washington, DC, in regards to 
this issue, a number of States and local governments are moving ahead 
with health reform. The ``Health Partnership Act'' would provide 
support, in the form of grants, to States, groups of States, local 
governments, and Indian tribes and tribal organizations to carry out 
any of a broad range of strategies intended to reduce the number of 
uninsured, reduce costs, and improve the quality of care.
  Responding to urgent needs, State and local governments have not been 
able to wait for Federal action. We observed this in the early 1990s as 
States such as New Mexico, Massachusetts, Pennsylvania, Florida, Rhode 
Island, Hawaii, Maryland, Tennessee, Vermont, and Washington led the 
way to expanding coverage to children through the enactment of a 
variety of health reforms. Evaluation proved that some of these 
programs worked better than others, so the Federal Government took note 
and responded in 1997 with passage of the ``State Children's Health 
Insurance Program'' or SCHIP. This legislation, built upon experiences 
of the States, enjoyed broad bipartisan support. SCHIP is a popular and 
successful State-based model that covers millions of children and 
continues to have broad-based bipartisan support across this Nation.
  So, why not use that successful model and build upon it? In fact, 
State and local governments are already taking up that challenge and 
the Federal Government should, through the enactment of the ``Health 
Partnership Act,'' do what it can to be helpful with those efforts. For 
example--
  On November 15, 2005, Illinois Governor Rod Blagojevich signed into 
law the ``Covering All Kids Health Insurance Act'' which, beginning in 
July 2006, intended to make insurance coverage available to all 
uninsured children.
  In April, Massachusetts Governor Mitt Romney signed into law 
legislation that requires all Bay State residents to have health 
insurance. Their State experiment involves partnerships between the 
State Medicaid, employer groups, and insurance companies.
  Now California's Governor Schwarzenegger proposes health reform to 
include health promotion and wellness services for all, insurance 
coverage, and cost containment measures.
  Other States, including New Mexico, Vermont, Tennessee, Maine, West 
Virginia, Oklahoma, and New York have enacted other health reforms that 
have had mixed success.
  All of these efforts add importantly to our knowledge base, and can 
then lead to a national solution to our uninsured and affordability 
crisis. We can learn from each and every one of these efforts, 
including those which failed.
  Commonwealth Fund President Karen Davis said it well by noting that 
State-based reforms, such as that passed in Massachusetts, are very 
good news. As she notes, ``First, any substantive effort to expand 
access to coverage is worthwhile, given the growing number of uninsured 
in this country and the large body of evidence showing the dangerous 
health implications of lacking coverage.''
  She adds, ``But something more important is at work here. While we 
urgently need a national solution so that all Americans have insurance, 
it doesn't appear that we'll be getting one at the Federal level any 
time soon. So what Massachusetts has done potentially holds lessons for 
every State.'' I would add that it holds lessons for the Federal 
Government as well and not just for the mechanics of implementing 
health reform policy but also to the politics of health reform.
  As she concludes, ``One particularly cogent lesson is the manner in 
which the measure was crafted--via a civil process that successfully 
brought together numerous players from across the political business, 
health care delivery, and policy sectors.''
  Senator Voinovich and I have worked together and reached out to like 
minded colleagues in the House of Representatives via a process much 
like that described by Karen Davis. The legislation stems from past 
legislative efforts by Senators such as Bob Graham, Mark Hatfield, and 
Paul Wellstone, but also from work across ideological lines by Henry 
Aaron of the Brookings Institution and Stuart Butler of the Heritage 
Foundation.
  The legislation also benefits from advice and support from health 
care providers. Dr. Tim Garson who, as Dean of the University of 
Virginia, brought a much needed provider perspective, ensuring support 
from the House of Medicine. Supporters include the American Medical 
Association, the American Academy of Pediatrics, the American College 
of Physicians, the American College of Cardiology, American 
Gastroenterological Association, the Visiting Nurses Association, the 
National Association of Community Health Centers, and from state-based 
health providers such as the New Mexico Medical Society and Ohio 
Association of Community Health Centers.
  The Health Partnership Act supports providers.
  The Health Partnership Act received much comment and support from 
consumer-based groups advocating for national health reform, including 
that by Dr. Ken Frisof of the Universal Health Care Action Network, 
Bill Vaughan at Consumers Union, and from numerous health care 
advocates in New Mexico, including Community Action New Mexico, Health 
Action New Mexico, Health Care for All Campaign of New Mexico, New 
Mexico Center on Law and Poverty, New Mexico Health Choices Initiative, 
New Mexico POZ Coalition,

[[Page 1434]]

New Mexico Public Health Association, New Mexico Religious Coalition 
for Reproductive Choice, New Mexico Progressive Alliance for Community 
Empowerment, and the Health Security for New Mexicans Campaign, which 
includes 115 State-based organizations.
  The Health Partnership Act supports consumers.
  Support from stakeholders throughout our Nation's health care system 
has been sought and I would like to thank the many organizations from 
New Mexico for their support and input to this legislation. There is 
great urgency in New Mexico because our State, like all of those along 
the U.S.-Mexico border, faces a severe health care crisis. Over one in 
five New Mexicans does not have insurance coverage. In fact, only one 
State, Texas, has more uninsured. New Mexico is also the only State in 
the country with greater than half of its population covered by State 
or federally funded health programs.
  A rather shocking statistic, which also continues to worsen, is that 
one out of every three Hispanic citizens are uninsured. In fact, less 
than 41 percent of the Hispanic population now has employer-based 
coverage nationwide, which is in sharp comparison to the 66 percent of 
non-Hispanic whites who have employer-based coverage.
  Because so few New Mexicans have employer-based health insurance, the 
State of New Mexico has enacted its own health reform plan called the 
State Coverage Initiative, or SCI, in July 2005. SCI is a public/
private partnership intended to expand employer-sponsored insurance, 
developed in part with grant funding from the Robert Wood Johnson 
Foundation. As of December 2006, there were 4,256 people covered by 
this initiative and there are efforts to expand this effort to cover 
over 20,000 individuals. With Federal support for my State, the hope 
would be to further expand coverage to as many New Mexicans as 
possible.
  The Health Partnership Act encourages reforms at both the state and 
local levels of government. Senator Voinovich, as former mayor of 
Cleveland, suggested language that would capture community-based 
efforts as well. Illinois, Georgia, Michigan, and Oregon have all 
initiated efforts at the local level for reform, including so-called 
``three-share'' programs in Illinois and Michigan. Under these 
initiatives, employers, employees, and the community each pick up about 
one-third of the cost of programs.
  Jeaneane Smith, deputy administrator in the Office of Oregon Health 
Policy and Research was recently quoted by an Academy Health 
publication stating, ``In recent years it has become apparent that 
there is a need to consider both state- and community-level approaches 
to improved access. We want to learn how best to support communities as 
they play an integral part in addressing the gaps in coverage.''
  The Health Partnership Act supports communities.
  Our hope is to spawn innovation. Brookings Institution senior health 
fellow Henry Aaron and Heritage Foundation vice president Stuart Butler 
wrote a Health Affairs article in March 2004 that lays out the 
foundation for this legislative effort. They argue that while we remain 
unable to reconcile how best to expand coverage at the Federal level, 
we can agree to support states in their efforts to try widely differing 
solutions to health coverage, cost containment, and quality 
improvement. As they write, ``this approach offers both a way to 
improve knowledge about how to reform health care and a practical way 
to initiate a process of reform. Such a pluralist approach respects the 
real, abiding differences in politics, preferences, traditions, and 
institutions across the nation. It also implies a willingness to accept 
differences over an extended period in order to make progress. And it 
recognizes that permitting wide diversity can foster consensus by 
revealing the strengths and exposing the weaknesses of rival 
approaches.''
  In addition to Dr. Garson, Mr. Aaron, Mr. Butler, and Dr. Frisof, I 
would like to express my appreciation to Dan Hawkins at the National 
Association of Community Health Centers, Bill Vaughan at Consumers 
Union, and both Jack Meyer and Stan Dorn at ESRI for their counsel and 
guidance on health reform and this legislation.
  I would also like to commend the American College of Physicians, or 
ACP, for their outstanding leadership on the issue of the uninsured and 
for their willingness to support a variety of efforts to expand health 
coverage. ACP has been a longstanding advocate for expanding health 
coverage and has authored landmark reports on the important role that 
health insurance has in reducing people's morbidity and mortality. In 
fact, to cite the conclusion of one of those studies, ``Lack of 
insurance contributes to the endangerment of the health of each 
uninsured American as well as the collective health of the Nation.''
  And finally, I would also thank the many people at the Robert Wood 
Johnson Foundation on their forethought and knowledge on all the issues 
confronting the uninsured. Their efforts to continue the dialogue on 
the uninsured has successfully kept the issue alive for many years.
  I urge my colleagues to break the gridlock and support this 
legislation, which offers financial support to states, communities, 
providers, and consumers, as they adopt important innovations in 
healthcare coverage and expansion.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 325

       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 ``Health Partnership Act''.

     SEC. 2. STATE HEALTH REFORM PROJECTS.

       (a) Purpose; Establishment of State Health Care Expansion 
     and Improvement Program.--The purposes of the programs 
     approved under this section shall include, but not be limited 
     to--
       (1) achieving the goals of increased health coverage and 
     access;
       (2) ensuring that patients receive high-quality, 
     appropriate health care;
       (3) improving the efficiency of health care spending; and
       (4) testing alternative reforms, such as building on the 
     public or private health systems, or creating new systems, to 
     achieve the objectives of this Act.
       (b) Applications by States, Local Governments, and 
     Tribes.--
       (1) Entities that may apply.--
       (A) In general.--A State, in consultation with local 
     governments, Indian tribes, and Indian organizations involved 
     in the provision of health care, may apply for a State health 
     care expansion and improvement program for the entire State 
     (or for regions of the State) under paragraph (2).
       (B) Regional groups.--A regional entity consisting of more 
     than one State may apply for a multi-State health care 
     expansion and improvement program for the entire region 
     involved under paragraph (2).
       (C) Definition.--In this Act, the term ``State'' means the 
     50 States, the District of Columbia, and the Commonwealth of 
     Puerto Rico. Such term shall include a regional entity 
     described in subparagraph (B).
       (2) Submission of application.--In accordance with this 
     section, each State desiring to implement a State health care 
     expansion and improvement program may submit an application 
     to the State Health Innovation Commission under subsection 
     (c) (referred to in this section as the ``Commission'') for 
     approval.
       (3) Local government applications.--
       (A) In general.--Where a State declines to submit an 
     application under this section, a unit of local government of 
     such State, or a consortium of such units of local 
     governments, may submit an application directly to the 
     Commission for programs or projects under this subsection. 
     Such an application shall be subject to the requirements of 
     this section.
       (B) Other applications.--Subject to such additional 
     guidelines as the Secretary may prescribe, a unit of local 
     government, Indian tribe, or Indian health organization may 
     submit an application under this section, whether or not the 
     State submits such an application, if such unit of local 
     government can demonstrate unique demographic needs or a 
     significant population size that warrants a substate program 
     under this subsection.
       (c) State Health Innovation Commission.--
       (1) In general.--Within 90 days after the date of the 
     enactment of this Act, the Secretary shall establish a State 
     Health Innovation Commission that shall--

[[Page 1435]]

       (A) be comprised of--
       (i) the Secretary;
       (ii) four State governors to be appointed by the National 
     Governors Association on a bipartisan basis;
       (iii) two members of a State legislature to be appointed by 
     the National Conference of State Legislators on a bipartisan 
     basis;
       (iv) two county officials to be appointed by the National 
     Association of Counties on a bipartisan basis;
       (v) two mayors to be appointed by the United States 
     Conference of Mayors and the National League of Cities on a 
     joint and bipartisan basis;
       (vi) two individuals to be appointed by the Speaker of the 
     House of Representatives;
       (vii) two individuals to be appointed by the Minority 
     Leader of the House of Representatives;
       (viii) two individuals to be appointed by the Majority 
     Leader of the Senate;
       (ix) two individuals to be appointed by the Minority Leader 
     of the Senate; and
       (x) two individuals who are members of federally-recognized 
     Indian tribes to be appointed on a bipartisan basis by the 
     National Congress of American Indians;
       (B) upon approval of \2/3\ of the members of the 
     Commission, provide the States with a variety of reform 
     options for their applications, such as tax credit 
     approaches, expansions of public programs such as medicaid 
     and the State Children's Health Insurance Program, the 
     creation of purchasing pooling arrangements similar to the 
     Federal Employees Health Benefits Program, individual market 
     purchasing options, single risk pool or single payer systems, 
     health savings accounts, a combination of the options 
     described in this clause, or other alternatives determined 
     appropriate by the Commission, including options suggested by 
     States, Indian tribes, or the public;
       (C) establish, in collaboration with a qualified and 
     independent organization such as the Institute of Medicine, 
     minimum performance measures and goals with respect to 
     coverage, quality, and cost of State programs, as described 
     under subsection (d)(1);
       (D) conduct a thorough review of the grant application from 
     a State and carry on a dialogue with all State applicants 
     concerning possible modifications and adjustments;
       (E) submit the recommendations and legislative proposal 
     described in subsection (d)(4)(B);
       (F) be responsible for monitoring the status and progress 
     achieved under program or projects granted under this 
     section;
       (G) report to the public concerning progress made by States 
     with respect to the performance measures and goals 
     established under this Act, the periodic progress of the 
     State relative to its State performance measures and goals, 
     and the State program application procedures, by region and 
     State jurisdiction;
       (H) promote information exchange between States and the 
     Federal Government; and
       (I) be responsible for making recommendations to the 
     Secretary and the Congress, using equivalency or minimum 
     standards, for minimizing the negative effect of State 
     program on national employer groups, provider organizations, 
     and insurers because of differing State requirements under 
     the programs.
       (2) Period of appointment; representation requirements; 
     vacancies.--Members shall be appointed for a term of 5 years. 
     In appointing such members under paragraph (1)(A), the 
     designated appointing individuals shall ensure the 
     representation of urban and rural areas and an appropriate 
     geographic distribution of such members. Any vacancy in the 
     Commission shall not affect its powers, but shall be filled 
     in the same manner as the original appointment.
       (3) Chairperson, meetings.--
       (A) Chairperson.--The Commission shall select a Chairperson 
     from among its members.
       (B) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (C) Meetings.--Not later than 30 days after the date on 
     which all members of the Commission have been appointed, the 
     Commission shall hold its first meeting. The Commission shall 
     meet at the call of the Chairperson.
       (4) Powers of the commission.--
       (A) Negotiations with states.--The Commission may conduct 
     detailed discussions and negotiations with States submitting 
     applications under this section, either individually or in 
     groups, to facilitate a final set of recommendations for 
     purposes of subsection (d)(4)(B). Such negotiations shall 
     include consultations with Indian tribes, and be conducted in 
     a public forum.
       (B) Hearings.--The Commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out the purposes of this subsection.
       (C) Meetings.--In addition to other meetings the Commission 
     may hold, the Commission shall hold an annual meeting with 
     the participating States under this section for the purpose 
     of having States report progress toward the purposes in 
     subsection (a)(1) and for an exchange of information.
       (D) Information.--The Commission may secure directly from 
     any Federal department or agency such information as the 
     Commission considers necessary to carry out the provisions of 
     this subsection. Upon request of the Chairperson of the 
     Commission, the head of such department or agency shall 
     furnish such information to the Commission if the head of the 
     department or agency involved determines it appropriate.
       (E) Postal services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (5) Personnel matters.--
       (A) Compensation.--Each member of the Commission who is not 
     an officer or employee of the Federal Government or of a 
     State or local government shall be compensated at a rate 
     equal to the daily equivalent of the annual rate of basic pay 
     prescribed for level IV of the Executive Schedule under 
     section 5315 of title 5, United States Code, for each day 
     (including travel time) during which such member is engaged 
     in the performance of the duties of the Commission. All 
     members of the Commission who are officers or employees of 
     the United States shall serve without compensation in 
     addition to that received for their services as officers or 
     employees of the United States.
       (B) Travel expenses.--The members of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (C) Staff.--The Chairperson of the Commission may, without 
     regard to the civil service laws and regulations, appoint and 
     terminate an executive director and such other additional 
     personnel as may be necessary to enable the Commission to 
     perform its duties. The employment of an executive director 
     shall be subject to confirmation by the Commission.
       (D) Detail of government employees.--Any Federal Government 
     employee may be detailed to the Commission without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       (E) Temporary and intermittent services.--The Chairperson 
     of the Commission may procure temporary and intermittent 
     services under section 3109(b) of title 5, United States 
     Code, at rates for individuals which do not exceed the daily 
     equivalent of the annual rate of basic pay prescribed for 
     level V of the Executive Schedule under section 5316 of such 
     title.
       (6) Funding.--For the purpose of carrying out this 
     subsection, there are authorized to be appropriated 
     $3,000,000 for fiscal year 2007 and each fiscal year 
     thereafter.
       (d) Requirements for Programs.--
       (1) State plan.--A State that seeks to receive a grant 
     under subsection (f) to operate a program under this section 
     shall prepare and submit to the Commission, as part of the 
     application under subsection (b), a State health care plan 
     that shall have as its goal improvements in coverage, quality 
     and costs. To achieve such goal, the State plan shall comply 
     with the following:
       (A) Coverage.--With respect to coverage, the State plan 
     shall--
       (i) provide and describe the manner in which the State will 
     ensure that an increased number of individuals residing 
     within the State will have expanded access to health care 
     coverage with a specific 5-year target for reduction in the 
     number of uninsured individuals through either private or 
     public program expansion, or both, in accordance with the 
     options established by the Commission;
       (ii) describe the number and percentage of current 
     uninsured individuals who will achieve coverage under the 
     State health program;
       (iii) describe the minimum benefits package that will be 
     provided to all classes of beneficiaries under the State 
     health program;
       (iv) identify Federal, State, or local and private programs 
     that currently provide health care services in the State and 
     describe how such programs could be coordinated with the 
     State health program, to the extent practicable; and
       (v) provide for improvements in the availability of 
     appropriate health care services that will increase access to 
     care in urban, rural, and frontier areas of the State with 
     medically underserved populations or where there is an 
     inadequate supply of health care providers.
       (B) Quality.--With respect to quality, the State plan 
     shall--
       (i) provide a plan to improve health care quality in the 
     State, including increasing effectiveness, efficiency, 
     timeliness, patient focused, equity while reducing health 
     disparities, and medical errors; and
       (ii) contain appropriate results-based quality indicators 
     established by the Commission that will be addressed by the 
     State as well as State-specific quality indicators.
       (C) Costs.--With respect to costs, the State plan shall--
       (i) provide that the State will develop and implement 
     systems to improve the efficiency

[[Page 1436]]

     of health care, including a specific 5-year target for 
     reducing administrative costs (including paperwork burdens);
       (ii) describe the public and private sector financing to be 
     provided for the State health program;
       (iii) estimate the amount of Federal, State, and local 
     expenditures, as well as, the costs to business and 
     individuals under the State health program;
       (iv) describe how the State plan will ensure the financial 
     solvency of the State health program; and
       (v) provide that the State will prepare and submit to the 
     Secretary and the Commission such reports as the Secretary or 
     Commission may require to carry out program evaluations.
       (D) Health information technology.--With respect to health 
     information technology, the State plan shall provide 
     methodology for the appropriate use of health information 
     technology to improve infrastructure, such as improving the 
     availability of evidence-based medical and outcomes data to 
     providers and patients, as well as other health information 
     (such as electronic health records, electronic billing, and 
     electronic prescribing).
       (2) Technical assistance.--The Secretary shall, if 
     requested, provide technical assistance to States to assist 
     such States in developing applications and plans under this 
     section, including technical assistance by private sector 
     entities if determined appropriate by the Commission.
       (3) Initial review.--With respect to a State application 
     for a grant under subsection (b), the Secretary and the 
     Commission shall complete an initial review of such State 
     application within 60 days of the receipt of such 
     application, analyze the scope of the proposal, and determine 
     whether additional information is needed from the State. The 
     Commission shall advise the State within such period of the 
     need to submit additional information.
       (4) Final determination.--
       (A) In general.--Not later than 90 days after completion of 
     the initial review under paragraph (3), the Commission shall 
     determine whether to submit a State proposal to Congress for 
     approval.
       (B) Voting.--
       (i) In general.--The determination to submit a State 
     proposal to Congress under subparagraph (A) shall be approved 
     by \2/3\ of the members of the Commission who are eligible to 
     participate in such determination subject to clause (ii).
       (ii) Eligibility.--A member of the Commission shall not 
     participate in a determination under subparagraph (A) if--

       (I) in the case of a member who is a Governor, such 
     determination relates to the State of which the member is the 
     Governor; or
       (II) in the case of member not described in subclause (I), 
     such determination relates to the geographic area of a State 
     of which such member serves as a State or local official.

       (C) Submission.--Not later than 90 days prior to October 1 
     of each fiscal year, the Commission shall submit to Congress 
     a list, in the form of a legislative proposal, of the State 
     applications that the Commission recommends for approval 
     under this section.
       (D) Approval.--With respect to a fiscal year, a State 
     proposal that has been recommended under subparagraph (B) 
     shall be deemed to be approved, and subject to the 
     availability of appropriations, Federal funds shall be 
     provided to such program, unless a joint resolution has been 
     enacted disapproving such proposal as provided for in 
     subsection (e). Nothing in the preceding sentence shall be 
     construed to include the approval of State proposals that 
     involve waivers or modifications in applicable Federal law.
       (5) Program or project period.--A State program or project 
     may be approved for a period of 5 years and may be extended 
     for subsequent 5-year periods upon approval by the Commission 
     and the Secretary, based upon achievement of targets, except 
     that a shorter period may be requested by a State and granted 
     by the Secretary.
       (e) Expedited Congressional Consideration.--
       (1) Introduction and committee consideration.--
       (A) Introduction.--The legislative proposal submitted 
     pursuant to subsection (d)(4)(B) shall be in the form of a 
     joint resolution (in this subsection referred to as the 
     ``resolution''). Such resolution shall be introduced in the 
     House of Representatives by the Speaker, and in the Senate, 
     by the Majority Leader, immediately upon receipt of the 
     language and shall be referred to the appropriate committee 
     of Congress. If the resolution is not introduced in 
     accordance with the preceding sentence, the resolution may be 
     introduced in either House of Congress by any member thereof.
       (B) Committee consideration.--A resolution introduced in 
     the House of Representatives shall be referred to the 
     Committee on Ways and Means of the House of Representatives. 
     A resolution introduced in the Senate shall be referred to 
     the Committee on Finance of the Senate. Not later than 15 
     calendar days after the introduction of the resolution, the 
     committee of Congress to which the resolution was referred 
     shall report the resolution or a committee amendment thereto. 
     If the committee has not reported such resolution (or an 
     identical resolution) at the end of 15 calendar days after 
     its introduction or at the end of the first day after there 
     has been reported to the House involved a resolution, 
     whichever is earlier, such committee shall be deemed to be 
     discharged from further consideration of such reform bill and 
     such reform bill shall be placed on the appropriate calendar 
     of the House involved.
       (2) Expedited procedure.--
       (A) Consideration.--Not later than 5 days after the date on 
     which a committee has been discharged from consideration of a 
     resolution, the Speaker of the House of Representatives, or 
     the Speaker's designee, or the Majority Leader of the Senate, 
     or the Leader's designee, shall move to proceed to the 
     consideration of the committee amendment to the resolution, 
     and if there is no such amendment, to the resolution. It 
     shall also be in order for any member of the House of 
     Representatives or the Senate, respectively, to move to 
     proceed to the consideration of the resolution at any time 
     after the conclusion of such 5-day period. All points of 
     order against the resolution (and against consideration of 
     the resolution) are waived. A motion to proceed to the 
     consideration of the resolution is highly privileged in the 
     House of Representatives and is privileged in the Senate and 
     is not debatable. The motion is not subject to amendment, to 
     a motion to postpone consideration of the resolution, or to a 
     motion to proceed to the consideration of other business. A 
     motion to reconsider the vote by which the motion to proceed 
     is agreed to or not agreed to shall not be in order. If the 
     motion to proceed is agreed to, the House of Representatives 
     or the Senate, as the case may be, shall immediately proceed 
     to consideration of the resolution without intervening 
     motion, order, or other business, and the resolution shall 
     remain the unfinished business of the House of 
     Representatives or the Senate, as the case may be, until 
     disposed of.
       (B) Consideration by other house.--If, before the passage 
     by one House of the resolution that was introduced in such 
     House, such House receives from the other House a resolution 
     as passed by such other House--
       (i) the resolution of the other House shall not be referred 
     to a committee and may only be considered for final passage 
     in the House that receives it under clause (iii);
       (ii) the procedure in the House in receipt of the 
     resolution of the other House, with respect to the resolution 
     that was introduced in the House in receipt of the resolution 
     of the other House, shall be the same as if no resolution had 
     been received from the other House; and
       (iii) notwithstanding clause (ii), the vote on final 
     passage shall be on the reform bill of the other House.
     Upon disposition of a resolution that is received by one 
     House from the other House, it shall no longer be in order to 
     consider the resolution bill that was introduced in the 
     receiving House.
       (C) Consideration in conference.--Immediately upon a final 
     passage of the resolution that results in a disagreement 
     between the two Houses of Congress with respect to the 
     resolution, conferees shall be appointed and a conference 
     convened. Not later than 10 days after the date on which 
     conferees are appointed, the conferees shall file a report 
     with the House of Representatives and the Senate resolving 
     the differences between the Houses on the resolution. 
     Notwithstanding any other rule of the House of 
     Representatives or the Senate, it shall be in order to 
     immediately consider a report of a committee of conference on 
     the resolution filed in accordance with this subclause. 
     Debate in the House of Representatives and the Senate on the 
     conference report shall be limited to 10 hours, equally 
     divided and controlled by the Speaker of the House of 
     Representatives and the Minority Leader of the House of 
     Representatives or their designees and the Majority and 
     Minority Leaders of the Senate or their designees. A vote on 
     final passage of the conference report shall occur 
     immediately at the conclusion or yielding back of all time 
     for debate on the conference report.
       (3) Rules of the senate and house of representatives.--This 
     subsection is enacted by Congress--
       (A) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and is deemed to 
     be part of the rules of each House, respectively, but 
     applicable only with respect to the procedure to be followed 
     in that House in the case of a resolution, and it supersedes 
     other rules only to the extent that it is inconsistent with 
     such rules; and
       (B) with full recognition of the constitutional right of 
     either House to change the rules (so far as they relate to 
     the procedure of that House) at any time, in the same manner, 
     and to the same extent as in the case of any other rule of 
     that House.
       (4) Limitation.--The amount of Federal funds provided with 
     respect to any State proposal that is deemed approved under 
     subsection (d)(3) shall not exceed the cost provided for such 
     proposals within the concurrent resolution on the budget as 
     enacted by Congress for the fiscal year involved.
       (f) Funding.--

[[Page 1437]]

       (1) In general.--The Secretary shall provide a grant to a 
     State that has an application approved under subsection (b) 
     to enable such State to carry out an innovative State health 
     program in the State.
       (2) Amount of grant.--The amount of a grant provided to a 
     State under paragraph (1) shall be determined based upon the 
     recommendations of the Commission, subject to the amount 
     appropriated under subsection (k).
       (3) Performance-based funding allocation and 
     prioritization.--In awarding grants under paragraph (1), the 
     Secretary shall--
       (A) fund a diversity of approaches as provided for by the 
     Commission in subsection (c)(1)(B);
       (B) give priority to those State programs that the 
     Commission determines have the greatest opportunity to 
     succeed in providing expanded health insurance coverage and 
     in providing children, youth, and other vulnerable 
     populations with improved access to health care items and 
     services; and
       (C) link allocations to the State to the meeting of the 
     goals and performance measures relating to health care 
     coverage, quality, and health care costs established under 
     this Act through the State project application process.
       (4) Maintenance of effort.--A State, in utilizing the 
     proceeds of a grant received under paragraph (1), shall 
     maintain the expenditures of the State for health care 
     coverage purposes for the support of direct health care 
     delivery at a level equal to not less than the level of such 
     expenditures maintained by the State for the fiscal year 
     preceding the fiscal year for which the grant is received.
       (5) Report.--At the end of the 5-year period beginning on 
     the date on which the Secretary awards the first grant under 
     paragraph (1), the State Health Innovation Advisory 
     Commission established under subsection (c) shall prepare and 
     submit to the appropriate committees of Congress, a report on 
     the progress made by States receiving grants under paragraph 
     (1) in meeting the goals of expanded coverage, improved 
     quality, and cost containment through performance measures 
     established during the 5-year period of the grant. Such 
     report shall contain the recommendation of the Commission 
     concerning any future action that Congress should take 
     concerning health care reform, including whether or not to 
     extend the program established under this subsection.
       (g) Monitoring and Evaluation.--
       (1) Annual reports and participation by states.--Each State 
     that has received a program approval shall--
       (A) submit to the Commission an annual report based on the 
     period representing the respective State's fiscal year, 
     detailing compliance with the requirements established by the 
     Commission and the Secretary in the approval and in this 
     section; and
       (B) participate in the annual meeting under subsection 
     (c)(4)(B).
       (2) Evaluations by commission.--The Commission, in 
     consultation with a qualified and independent organization 
     such as the Institute of Medicine, shall prepare and submit 
     to the Committee on Finance and the Committee on Health, 
     Education, Labor, and Pensions of the Senate and the 
     Committee on Energy and Commerce, the Committee on Education 
     and Labor, and the Committee on Ways and Means of the House 
     of Representatives annual reports that shall contain--
       (A) a description of the effects of the reforms undertaken 
     in States receiving approvals under this section;
       (B) a description of the recommendations of the Commission 
     and actions taken based on these recommendations;
       (C) an evaluation of the effectiveness of such reforms in--
       (i) expanding health care coverage for State residents;
       (ii) improving the quality of health care provided in the 
     States; and
       (iii) reducing or containing health care costs in the 
     States;
       (D) recommendations regarding the advisability of 
     increasing Federal financial assistance for State ongoing or 
     future health program initiatives, including the amount and 
     source of such assistance; and
       (E) as required by the Commission or the Secretary under 
     subsection (f)(5), a periodic, independent evaluation of the 
     program.
       (h) Noncompliance.--
       (1) Corrective action plans.--If a State is not in 
     compliance with a requirements of this section, the Secretary 
     shall develop a corrective action plan for such State.
       (2) Termination.--For good cause and in consultation with 
     the Commission, the Secretary may revoke any program granted 
     under this section. Such decisions shall be subject to a 
     petition for reconsideration and appeal pursuant to 
     regulations established by the Secretary.
       (i) Relationship to Federal Programs.--
       (1) In general.--Nothing in this Act, or in section 1115 of 
     the Social Security Act (42 U.S.C. 1315) shall be construed 
     as authorizing the Secretary, the Commission, a State, or any 
     other person or entity to alter or affect in any way the 
     provisions of title XIX of such Act (42 U.S.C. 1396 et seq.) 
     or the regulations implementing such title.
       (2) Maintenance of effort.--No payment may be made under 
     this section if the State adopts criteria for benefits, 
     income, and resource standards and methodologies for purposes 
     of determining an individual's eligibility for medical 
     assistance under the State plan under title XIX that are more 
     restrictive than those applied as of the date of enactment of 
     this Act.
       (j) Miscellaneous Provisions.--
       (1) Application of certain requirements.--
       (A) Restriction on application of preexisting condition 
     exclusions.--
       (i) In general.--Subject to subparagraph (B), a State shall 
     not permit the imposition of any preexisting condition 
     exclusion for covered benefits under a program or project 
     under this section.
       (ii) Group health plans and group health insurance 
     coverage.--If the State program or project provides for 
     benefits through payment for, or a contract with, a group 
     health plan or group health insurance coverage, the program 
     or project may permit the imposition of a preexisting 
     condition exclusion but only insofar and to the extent that 
     such exclusion is permitted under the applicable provisions 
     of part 7 of subtitle B of title I of the Employee Retirement 
     Income Security Act of 1974 and title XXVII of the Public 
     Health Service Act.
       (B) Compliance with other requirements.--Coverage offered 
     under the program or project shall comply with the 
     requirements of subpart 2 of part A of title XXVII of the 
     Public Health Service Act insofar as such requirements apply 
     with respect to a health insurance issuer that offers group 
     health insurance coverage.
       (2) Prevention of duplicative payments.--
       (A) Other health plans.--No payment shall be made to a 
     State under this section for expenditures for health 
     assistance provided for an individual to the extent that a 
     private insurer (as defined by the Secretary by regulation 
     and including a group health plan (as defined in section 
     607(1) of the Employee Retirement Income Security Act of 
     1974), a service benefit plan, and a health maintenance 
     organization) would have been obligated to provide such 
     assistance but for a provision of its insurance contract 
     which has the effect of limiting or excluding such obligation 
     because the individual is eligible for or is provided health 
     assistance under the plan.
       (B) Other federal governmental programs.--Except as 
     provided in any other provision of law, no payment shall be 
     made to a State under this section for expenditures for 
     health assistance provided for an individual to the extent 
     that payment has been made or can reasonably be expected to 
     be made promptly (as determined in accordance with 
     regulations) under any other federally operated or financed 
     health care insurance program, other than an insurance 
     program operated or financed by the Indian Health Service, as 
     identified by the Secretary. For purposes of this paragraph, 
     rules similar to the rules for overpayments under section 
     1903(d)(2) of the Social Security Act shall apply.
       (3) Application of certain general provisions.--The 
     following sections of the Social Security Act shall apply to 
     States under this section in the same manner as they apply to 
     a State under such title XIX:
       (A) Title xix provisions.--
       (i) Section 1902(a)(4)(C) (relating to conflict of interest 
     standards).
       (ii) Paragraphs (2), (16), and (17) of section 1903(i) 
     (relating to limitations on payment).
       (iii) Section 1903(w) (relating to limitations on provider 
     taxes and donations).
       (iv) Section 1920A (relating to presumptive eligibility for 
     children).
       (B) Title xi provisions.--
       (i) Section 1116 (relating to administrative and judicial 
     review), but only insofar as consistent with this title.
       (ii) Section 1124 (relating to disclosure of ownership and 
     related information).
       (iii) Section 1126 (relating to disclosure of information 
     about certain convicted individuals).
       (iv) Section 1128A (relating to civil monetary penalties).
       (v) Section 1128B(d) (relating to criminal penalties for 
     certain additional charges).
       (vi) Section 1132 (relating to periods within which claims 
     must be filed).
       (4) Relation to other laws.--
       (A) HIPAA.--Health benefits coverage provided under a State 
     program or project under this section shall be treated as 
     creditable coverage for purposes of part 7 of subtitle B of 
     title I of the Employee Retirement Income Security Act of 
     1974, title XXVII of the Public Health Service Act, and 
     subtitle K of the Internal Revenue Code of 1986.
       (B) ERISA.--Nothing in this section shall be construed as 
     affecting or modifying section 514 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1144) with respect to 
     a group health plan (as defined in section 2791(a)(1) of the 
     Public Health Service Act (42 U.S.C. 300gg-91(a)(1))).
       (k) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, such sums as 
     may be necessary in each fiscal year. Amounts appropriated 
     for a fiscal year under this subsection and not expended may 
     be used in subsequent fiscal years to carry out this section.


[[Page 1438]]

  Mr. VOINOVICH. Mr. President, I rise to speak about a bill my 
colleague Senator Bingaman and I introduced today, the Health Care 
Partnership Act. For too many years, I have listened to my colleagues 
on both sides of the aisle talk about the rising cost of health care 
and the growing number of uninsured Americans. Yet, at the Federal 
level we have made little progress toward a solution for improving 
access to quality, affordable health care. I believe it is the greatest 
domestic challenge facing our Nation. In fact, the rising cost of 
health care is a major part of what is hurting our competitiveness in 
the global marketplace.
  While surveys have indicated that health insurance premiums have 
stabilized--a 9.2 percent increase in 2006 the same increase as in 2005 
and compared with; 12.3 percent in 2004; 14.7 percent in 2003 and 15.2 
percent in 2002--health insurance costs continue to be a significant 
factor impacting American competitiveness. In addition, the share of 
costs that individuals have paid for employer sponsored insurance has 
risen roughly 2 percent each year, from 31.4 percent of health care 
costs in 2001 to 38.4 percent this year.
  In fact, spending on health care in the United States reached $2 
trillion in 2005--16 percent of our GDP--the largest share ever.
  Yet, despite all the spending some 45 million Americans--15 percent 
of the population--had no health insurance at some point last year. 
This number has increased steadily. In 2000, that number was 39.8 
million. In 2002 it was 43.6 million.
  These statistics are startling, and it is beyond time that we do 
something about them.
  The bill Senator Bingaman and I are introducing today aims to break 
the log-jam here in Washington and allows States to experiment the way 
we did with welfare reform when I was Governor of Ohio. This bill would 
support State-based efforts to reduce the uninsured, reduce costs, 
improve quality, improve access to care, and expand information 
technology.
  I have been in this situation before. As Governor of Ohio, I had to 
work creatively to expand coverage and deal with increasing health care 
costs for a growing number of uninsured Ohioans. I am happy to report 
that we were able to make some progress toward reducing the number of 
uninsured during my time as the head of the State by negotiating with 
the State unions to move to managed care; by controlling Medicaid costs 
to the point where from 1995 to 1998, due to good stewardship and 
management, Ohio ended up under-spending on Medicaid without harming 
families; and implementing the S-CHIP program to provide coverage for 
uninsured children. In fact, I recently learned from the Cuyahoga 
Commissioners that in our county, 98 percent of eligible children are 
currently enrolled in this program.
  Like we did in Ohio, a number of States are already actively pursuing 
efforts to reduce the number of their residents who lack adequate 
health care coverage. This bill will build on the goals of States like 
Massachusetts, California and others, while providing a mechanism to 
analyze results and make recommendations for future action on the 
Federal level.
  Under the Health Partnership Act, Congress would authorize grants to 
individual States, groups of States, and Indian tribes and 
organizations to carry out any of a broad range of strategies to 
improve our Nation's health care delivery. The bill creates a mechanism 
for States to apply for grants to a bipartisan ``State Health 
Innovation Commission'' housed at the Department of Health and Human 
Services, HHS. After reviewing the State proposals, the Commission 
would submit to Congress a list of recommended State applications. The 
Commission would also recommend the amount of Federal grant money each 
State should receive to carry out the actions described in their plan.
  Most importantly, at the end of the 5-year period, the Commission 
would be required to report to Congress whether the States are meeting 
the goals of the act and recommend future action Congress should take 
concerning overall reform, including whether or not to extend the 
program.
  I believe it is important that we pass this legislation and provide a 
platform from which we can have a thoughtful conversation about health 
care reform at the Federal level.
  Since I have been in the Senate, Congress has made some progress 
toward improving health care, most notably for our 43 million seniors 
with the passage of the Medicare Modernization Act.
  Yet, we have been at this too long here in Washington without 
comprehensive, meaningful results. It is my hope that we will have 
bipartisan support for this very bipartisan comprehensive bill that I 
hope will move us closer toward a solution to the uninsured.
                                 ______
                                 
      By Mrs. LINCOLN (for herself, Mr. Thomas, Mr. Bingaman, Mr. 
        Durbin, Ms. Mikulski, Mr. Akaka, Mr. Pryor, Ms. Klobuchar, Mr. 
        Enzi, Mr. Harkin, Mr. Rockefeller, and Mr. Kerry):
  S. 326. A bill to amend the Internal Revenue Code of 1986 to provide 
a special period of limitation when uniformed services retirement pay 
is reduced as result of award of disability compensation; to the 
Committee on Finance.
  Mrs. LINCOLN. Mr. President, I rise today with my colleague, Senator 
Craig Thomas, to introduce the Disabled Veterans Tax Fairness Act of 
2007. This much-needed legislation would protect disabled veterans from 
being unfairly taxed on the benefits to which they are entitled, simply 
because their disability claims were not processed in a timely manner. 
This legislation is supported by the Military Coalition, a group 
representing more than 5.5 million members of the uniformed services 
and their families.
  While the Department of Veterans Affairs, VA, resolves most of its 
filed disability claims in less than a year, there are also instances 
of lost paperwork, administrative errors, and appeals of rejected 
claims that often delay thousands of disability awards for years on 
end. When this occurs, disability compensation is awarded retroactively 
and for tax purposes, a disabled veteran's previously received taxable 
military retiree pay is re-designated as nontaxable disability 
compensation. Thereby, the disabled veteran is entitled to a refund of 
taxes paid and must file an amended tax return for each applicable 
year.
  However, under current law the IRS Code bars the filing of amended 
returns beyond the last 3 tax years. As a result, many of our disabled 
veterans are denied the opportunity to file a claim for repayment of 
additional years of back taxes already paid--through no fault of their 
own--even though the IRS owes them a refund for the taxes that were 
originally paid on their retiree pay.
  The Disabled Veterans Tax Fairness Act of 2007 would add an exception 
to the IRS statute of limitations for amending returns. This exception 
would allow disabled veterans whose disability claims have been pending 
for more than 3 years to receive refunds on previous taxes paid for up 
to 5 years--the length of time the IRS keeps these records. Affected 
veterans would have 1 year from the date the VA determination is issued 
to go back and amend previous years' tax returns.
  My father and grandfather both served our Nation in uniform and they 
taught me from an early age about the sacrifices our troops and their 
families have made to keep our Nation free. This is particularly true 
for our disabled veterans. During a time when a grateful nation should 
be doing everything it can to honor those who have sacrificed so 
greatly on our behalf, the very least it can do is ensure they and 
their families are not unjustly penalized simply because of 
bureaucratic inefficiencies or administrative delays which are beyond 
their control. This situation is unacceptable and our veterans deserve 
better.
  That is why I am proud to reintroduce this legislation today to 
provide relief to our Nation's veterans. It is the least we can do for 
those whom we owe so much, and it is the least we can do to reassure 
future generations that a

[[Page 1439]]

grateful nation will not forget them when their military service is 
complete.
                                 ______
                                 
      By Mr. McCAIN (for himself and Mr. Salazar):
  S. 327. A bill to authorize the Secretary of the Interior to conduct 
a special resource study of sites associated with the life of Cesar 
Estrada Chavez and the farm labor movement; to the Committee on Energy 
and Natural Resources.
  Mr. McCAIN. Mr. President, I am pleased to be joined today by Senator 
Salazar in reintroducing the Cesar Estrada Chavez Study Act. A similar 
version of this bill was introduced by Congresswoman Hilda Solis last 
week. This legislation, which is identical to the bill we introduced in 
the 109th Congress and passed the Senate by unanimous consent during 
the 108th Congress, would authorize the Secretary of the Interior to 
conduct a special resource study of sites associated with the life of 
Cesar Chavez. The bill would direct the Secretary of the Interior to 
determine whether any of the sites significant to Chavez's life meet 
the criteria for being listed on the National Register of Historic 
Landmarks. The goal of this legislation is to establish a foundation 
for future legislation that would then designate land for the 
appropriate sites to become historic landmarks.
  Mr. Chavez's legacy is an inspiration to us all and he will be 
remembered for helping Americans to transcend distinctions of 
experience and share equally in the rights and responsibilities of 
freedom. It is important that we honor his struggle and do what we can 
to preserve appropriate landmarks that are significant to his life. 
This legislation has received an overwhelming positive response, not 
only from my fellow Arizonans, but from Americans all across the 
Nation. It has also received an endorsement from the Congressional 
Hispanic Caucus.
  Cesar Chavez, an Arizonan born in Yuma, was the son of migrant farm 
workers. While his formal education ended in the eighth grade, his 
insatiable intellectual curiosity and determination helped make him 
known as one of the great American leaders for his successes in 
ensuring migrant farm workers were treated fairly and honestly. His 
efforts on behalf of some of the most oppressed individuals in our 
society is an inspiration, and through his work he made America a 
bigger and better nation.
  While Chavez and his family migrated across the southwest looking for 
farm work, he evolved into a advocate of migrant farm workers. He 
founded the National Farm Workers Association in 1962, which later 
became the United Farm Workers of America. He gave a voice to those who 
had no voice. In his words, ``We cannot seek achievement for ourselves 
and forget about progress and prosperity for our community . . . our 
ambitions must be broad enough to include the aspirations and needs of 
others, for their sakes and for our own.''
  Cesar Chavez was a humble man of deep conviction who understood what 
it meant to serve and sacrifice for others. His motto in life ``It Can 
Be Done,'' epitomizes his life's work and continues to be a positive 
influence on so many of us. Honoring the places of his life will enable 
his legacy to inspire and serve as an example for our future leaders.

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