[Congressional Record (Bound Edition), Volume 153 (2007), Part 8]
[Senate]
[Pages 10687-10694]
[From the U.S. Government Publishing Office, www.gpo.gov]




             PRESCRIPTION DRUG USER FEE AMENDMENTS OF 2007

  The PRESIDING OFFICER. Under the previous order, the Senate will 
resume consideration of S. 1082, which the clerk will report.
  The legislative clerk read as follows:

       A bill (S. 1082) to amend the Federal Food, Drug, and 
     Cosmetic Act to reauthorize and amend the prescription drug 
     user fee provisions, and for other purposes.

  The PRESIDING OFFICER. The time until 12:30 is to be evenly divided 
between the majority leader and Republican leader and to be used for 
debate only.
  The Senator from North Dakota is recognized.
  Mr. DORGAN. Mr. President, I ask unanimous consent that Senator Boxer 
from California be recognized for 15 minutes, obviously as the next 
Democratic speaker following my presentation.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. DORGAN. Mr. President, I have come to the floor to talk about the 
underlying bill that is being considered, a

[[Page 10688]]

piece of legislation to amend the Federal Food, Drug, and Cosmetic Act 
to reauthorize and amend the prescription drug user fee provisions and 
so on. It may be that there will be an agreement by which I and some 
others who will offer legislation or an amendment to deal with the 
issue of prescription drug prices will do that at another time and not 
on this bill. If that is the case, I am fine with that. I understand 
there are discussions underway now. I would be perfectly amenable to 
not offering an amendment on this legislation and instead having an 
opportunity to offer it at a different time. That amendment is about 
the reimportation of prescription drugs.
  Let me talk just a little about this issue. This is an issue which is 
getting a gray beard these days because it has been around so long with 
so many promises to be able to take it up here in the Congress. We have 
33 cosponsors on a piece of legislation that would try to break the 
back of the pricing monopoly that exists with the pharmaceutical 
industry for prescription drugs in our country. The fact is, the 
American consumers are charged the highest prices for prescription 
drugs anywhere in the world. The highest prices for prescription drugs 
are charged to the American consumer. It is not right. It is not fair. 
It ought to stop. We do have price controls on prescription drugs in 
our country; they are just controlled by the pharmaceutical industry. 
That is why we have the highest prices in the world.
  Mr. President, I ask unanimous consent to show a couple of bottles of 
medicine.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. DORGAN. Mr. President, these two bottles of medicine are Lipitor. 
Lipitor is a very common prescription drug used by many Americans to 
reduce cholesterol. As you can see, this drug, Lipitor, is made in 
Ireland, as a matter of fact, and then imported into this country by 
the pharmaceutical industry. From Ireland it is sent many places, but 
in this case the bottle in my left hand was sent to Canada, and the 
bottle in my right hand was sent to the United States. Same bottle, 
same pill, slightly different color on the front of it. It is an FDA-
approved medicine produced in an FDA-approved plant in Ireland and then 
sent to Canada and the United States.
  The difference? No difference--same plastic in the bottle, same 
medicine inside--except the price. The Canadian pays $1.83 per tablet, 
and the American pays $3.57--96 percent more. Let me say that again: No 
difference, same medicine, same bottle, same price, made in the same 
plant, FDA approved. Difference? The American consumer is told: Guess 
what, we have a special deal for you, you get to pay 96 percent more 
for the same medicine.
  Is this unusual? No, it is not. I sat on a hay bale one day at a farm 
with an old codger. He was in his eighties. This is in North Dakota. He 
said: You know, my wife has been fighting breast cancer. She has fought 
this now for 3 years. We have gone to Canada. We had to go to Canada to 
get the medicine, to buy Tamoxifen, and the reason we had to drive to 
Canada every 3 months or so to get the medicine is we save 80 percent 
by buying it in Canada. We cannot afford the price in the United 
States. We can't afford the price to have my wife fight this breast 
cancer.
  The question is, Is it just Canada? No, not at all, but let me at 
least describe the situation with the United States and Canada. I could 
put up the chart with Italy, Spain, Germany, France, England--I could 
put up this chart with virtually every country because the U.S. 
consumer pays the highest prices in the world.
  Lipitor, I just described it; Plavix, we pay 46 percent more; 
Prevacid we pay 97 percent more; Zocor, 31 percent more, Nexium, 55 
percent; Zoloft, 52 percent more. The list goes on and on, as you might 
imagine.
  We have a population that receives a lot of benefit from miracle 
drugs. There are prescription drugs that allow you to manage your 
disease without having to go to an acute care bed in a hospital. It is 
a wonderful thing.
  A substantial portion of the research to develop those drugs is done 
in the National Institutes of Health, paid for by us. We turn that 
research over to the prescription drug industry, they produce medicine 
from it, and then they sell us the medicine.
  Another body of research is done by the prescription drug industry 
themselves. They spend a lot of money on that. They also spend a lot of 
money on advertising and promotion. Now, anyone who was standing in 
front of a mirror this morning brushing their teeth, shaving, perhaps 
getting ready for work and had their television on, one of those little 
television sets, if they have one, anyone who was engaged in doing that 
probably saw a television commercial. It said this: You should go ask 
your doctor whether the purple pill is right for you. It didn't 
necessarily tell you what the purple pill was for; it just says you 
need to talk to your doctor to see if you should have the purple pill.
  It also makes you want to run out and say: Hey, what is this purple 
pill? Maybe I should have some of those purple pills, without knowing 
what they are for. It goes on all day, every day, advertising directly 
to consumers for medicines that can only be prescribed by a doctor for 
a prescription saying: Go talk to your doctor. Wouldn't you like some 
of these pills? We have an unbelievable amount of promotion and 
advertising with respect to prescription drugs. That is another issue. 
I believe there is only one other industrialized country that allows 
that; that is New Zealand. But that is another issue for another time.
  The issue is pricing. I have described what is happening with respect 
to pricing. This is Canada, but I can describe it for other countries 
as well. The percent of adults, ages 19 to 64, not filling a 
prescription because of cost, 43 percent of the uninsured in this 
country--that is 45, 46 million--do not take their medicine because 
they do not have the money. They say it costs too much.
  The result? Well, often many of them will end up in the priciest kind 
of health care, some kind of an acute care bed through an emergency 
room in a hospital.
  The legislation we have developed in Congress is bipartisan. It 
stretches from--I shouldn't say stretches because I am not describing 
the polls in Congress. But we have Ted Kennedy, Democrat; Chuck 
Grassley, Republican; Debbie Stabenow, Democrat; John McCain, 
Republican; back and forth. Bipartisan support for a piece of 
legislation we have crafted very carefully that says: Why shouldn't the 
American people be able to take advantage of FDA-approved drugs by 
reimporting them from another country where that same drug is sold for 
a fraction of the price? Why shouldn't the global economy work for 
consumers as well? This is bipartisan legislation that has substantial 
areas of safety built into it, so there is no safety issue. This is 
from Dr. David Kessler, who was head of the FDA for 8 years, 1990 to 
1997. ``The Dorgan-Snowe bill''--Olympia Snowe is the principal 
cosponsor, along with me and many others who have worked on this--
Senator Stabenow and Senator McCain and others for a long time, Senator 
Kennedy.

       The Dorgan-Snowe bill provides a sound framework for 
     assuring that imported drugs are safe and effective. Most 
     notably, it provides additional resources to the agency to 
     run such a program, oversight by the FDA of the chain of 
     custody of imported drugs back to the FDA-inspected plants, a 
     mechanism to review imported drugs to ensure that they meet 
     FDA's approval standards, and the registration and oversight 
     of importers and exporters to assure that the imported drugs 
     meet these standards and are not counterfeit.

  Let me show you where your prescription drugs come from. The 
pharmaceutical industry is engaged in a full court press with Members 
of this Chamber. They have a fair number of friends in this Chamber who 
would want to help them derail this legislation and continue to be able 
to charge the highest prices to the American consumer.
  Lipitor comes from Dublin, Ireland. Nexium comes from France. Of 
course, these are all imported by the pharmaceutical manufacturers 
themselves. Any one of these--Vytorin, Singapore, Italy, the United 
Kingdom; Actos

[[Page 10689]]

comes from Osaka, Japan. All of these are made in other countries, 
brought back to this country, and, by the way, sold in every other 
country in most cases for a lower price than when they are sent back to 
this country by the manufacturer.
  The legislation we have introduced is very simple. It gives the 
American consumer the opportunity to take advantage of lower prices for 
an FDA-approved drug; in many cases, by the way, a drug that was 
created with the very research that the American people paid for 
through the National Institutes of Health.
  Some have said, as a result of the pharmaceutical industry's 
entreaties here, well, this can't be done safely. It cannot be done 
safely. Well, apparently, they do it safely. The chain of custody, for 
example, in Canada is virtually identical. I had a quote that I do not 
have here. I had a quote from Dr. McClelland, the former head of the 
FDA, virtually identical chain of custody from Canada as opposed to the 
United States between the pharmaceutical manufacturer, the wholesaler, 
and the retailer.
  So is the chain of custody in Canada safe with respect to 
prescription drugs being sold to Canadian consumers? The answer is yes. 
So why would you not be able to establish a regime, just as they have 
in Europe for many years, called parallel trading? This is not new. If 
you are in Europe and you are living in Germany and want to buy a 
prescription from Spain, or living in Italy and find a prescription 
drug priced lower in France through a parallel trading system, you can 
easily do that.
  To my knowledge, we have testimony from one of the people involved. 
To my knowledge, there have been no issues of safety at all. They have 
done it for 20 years. Are those who oppose this saying, well, the 
Europeans are smarter than we are, they can do it but we can't? I don't 
understand that. That is not the case. I don't understand that. This is 
a very simple case. We propose an amendment that would allow drug 
reimportation and would make it safe. That is the fact.
  We understand that the pharmaceutical industry does not like it. That 
is a fact, too. I understand why they don't like it.
  Suppose I were running a pharmaceutical company and had the ability 
to price however I wanted to price inside the United States, one of the 
most important markets in the world, perhaps the most important market 
in the world, and I would have no competition from lower prices because 
I was able to keep that out. I understand why they would like to keep 
that deal working for them, but it does not work for the American 
people. It is not fair for the American people; it just isn't.
  That is why we have put together a bipartisan piece of legislation, 
the Dorgan-Snowe bill, that is supported by Republicans and Democrats, 
which now has 33 cosponsors. It is one that should pass in the Senate. 
The House has already passed a similar piece of legislation in the last 
session. I believe, finally, given a fair opportunity--and I believe we 
will be given that fair opportunity whether it is on this bill or 
perhaps with some consent to do it on another bill, I believe we will 
get this done.
  This is important. There are some things we do that are not very 
important at all. My criticism--it is a great privilege to serve here. 
My criticism of this place is from time to time we treat the light way 
too seriously, and we treat the serious far too lightly. This is a 
serious issue that deserves to be treated seriously.
  It has been around for a long time. We have not had a vote on it only 
because we have been blocked by, I would say, Senator Frist, the 
majority leader, for a long time, despite what I thought and my 
colleagues thought was a representation by him that he would allow us 
to have this on the Senate floor. He continued to block it.
  I understand the pharmaceutical industry is pulling out all of the 
stops. They have a full court press, trying to find as many Members of 
the Senate as they can who will stand up for their current pricing 
strategy. And they will find a few, no question about that. I think 
there are some Members of the Congress who like the pricing strategy of 
saying let's price drugs so that the American people pay the highest 
prices in the world. But I am very anxious to get them here to the 
floor to debate them on that subject because they are wrong. It is just 
wrong. It is wrong to do this to the American people.
  One final point. I don't disrespect the pharmaceutical industry. I 
say good for you when you produce a miracle drug, a lifesaving drug. 
But miracle drugs offer no miracles to people who can't afford to buy 
them. My problem with the pharmaceutical industry is the pricing 
strategy, the pricing strategy which says to the American people: You 
pay the highest prices in the world, and there is nothing we will let 
you do that can alter that. That is wrong. That is why I and others 
come to the floor of the Senate to say let's fix this. Not later, let's 
fix this now.
  Mr. President, I yield the floor.
  The PRESIDING OFFICER. The Senator from California is recognized.
  Mrs. BOXER. Mr. President, I thank my colleague, Senator Dorgan, for 
all his hard work on this issue of affordability of prescription drugs. 
He has been such a consistent voice. I stand with him on that. I thank 
him.
  (The further remarks of Mrs. Boxer are printed in today's Record 
under Morning Business).
  The PRESIDING OFFICER (Ms. Klobuchar). The Senator from Wyoming is 
recognized.
  Mr. ENZI. Madam President, this morning there have been a couple of 
topics brought up. The bill before us, of course, is the 
reauthorization of the Food and Drug Administration, several important 
parts of the Food and Drug Administration, and a new section on drug 
safety to give the Food and Drug Administration a few more tools for 
their tool box. So I will stick to that topic instead of addressing the 
one more recently brought up. I have some very strong feelings on that 
and some very strong opinions on how America ought to be involved in 
the war and what the consequences are of us pulling out. However, I 
want to stick to the topic of the day, which is our pharmaceutical 
supply.
  Most Americans who turn to imported drugs do so because of the cost. 
We need to answer a lot of questions before we open our borders to 
imported drugs to be sure we don't endanger consumers or jeopardize 
research or jeopardize the development of new lifesaving products. 
Senator Dorgan, of course, introduced a bill last year. He made the 
statement that miracle drugs provide no miracles for those who can't 
afford them. I don't think there is anybody in this Chamber who 
couldn't agree more with that statement, but I am sure they would agree 
that a counterfeit or tainted drug is unsafe at any price.
  As we consider the issue of drug importation, the safety of our 
citizens must be our primary concern. As ranking member of the 
committee charged with public health, it is certainly mine. You will 
find the focus of the bill that is before us to be on safety. I think 
everything in the bill leads to safety. I don't want to come up with a 
countersituation now that might put people at risk.
  I am reminded we are going to have a little bit of debate on the 
safety of our food supply--we talked about that a little bit last 
night--because there is a crisis with pet food, in particular, but even 
some potential for human consumption, partly because of the pet food, 
partly because of some other possibilities. There are some kids dying 
in China because they have melamine in their food. This is a product 
that is added to food to increase the appearance of protein. If you add 
that to grains or other things, you can get a higher protein count, and 
usually the protein count relates to the price you get. The more 
protein, the higher the price.
  I was talking to the Senator from Colorado, Mr. Allard, who is a 
veterinarian, and he was pointing out this morning that if you take a 
fingernail, that is 100 percent protein. If you take the liver, that is 
100 percent protein. One of the differences is if you grind liver up 
and you put it in food, it is digestible. If you grind a fingernail up 
and put it in food, it isn't digestible at

[[Page 10690]]

all. So you are not getting any protein out of it. So kids have died in 
China who thought they were getting sufficient food, and they weren't. 
The cause of death was starvation. One of the countries that could be 
getting drugs to the United States would be China. If they are fooling 
with our food supply, do you think they would hesitate a minute to fool 
with our prescription drug supply? It worries me a lot. There is a lot 
of risk that is involved in this.
  The Senator from North Dakota held up two bottles. The bottles were 
identical. One was cheaper in Canada than the same bottle in the United 
States. In a minute, I will go into how that price difference happens. 
I could hold up two bottles that would look exactly the same. One would 
appear to come from Canada, but it might very well come through Canada 
from Saudi Arabia, have exactly the same packaging, labeling, colors, 
seals, even the same look of a pill. But one of the things we found out 
from some of these drugs that have come from other countries through 
Canada is that they don't work. If you grind them up, they have exactly 
the same chemicals in them, but it isn't just the chemicals that do it, 
it is the way they are put together that makes it possible for them to 
solve a medical problem. If they are put together wrong, they may not 
even digest. If they don't digest, similar to a fingernail, you don't 
get the benefit from the drug. If you don't get the benefit from the 
drug, you shouldn't pay anything for it. In fact, there ought to be 
some pretty severe action taken against the person or country or 
company that produced that kind of a drug. We are not able to do that.
  The Food and Drug Administration is charged with watching our borders 
and the things that come in to see if the drugs that come into this 
country are legitimate. There are warehouses full of drugs they have 
found that are not legitimate. So it is a matter of safety, and we are 
concentrating on the safety portion of this bill. So I am hoping we 
will save the drug importation question for a separate debate of its 
own.
  We know each one of us takes a risk every time we take a drug, but 
Americans who buy prescription drugs in Canada and other countries or 
purchase drugs from Internet pharmacies that operate outside the United 
States are taking an even greater risk by obtaining their prescription 
medicine from pharmacies and Internet sites that don't always meet the 
high standards we require here at home. Here is where my concern lies. 
We already have a problem with counterfeit and substandard drugs in the 
United States. Concern about the quickly growing counterfeit market is 
not limited to the United States. In Europe, dangerous counterfeit 
drugs are already a problem, and the problem is growing as the European 
Union expands. In addition, we have little knowledge of the extent of 
counterfeiting in Asian markets such as India, Pakistan, and China, 
other than that it may be the best.
  Now, prior to legalizing an untested, drug importation project on a 
large scale across our Nation, we must consider any new vulnerabilities 
in our drug distribution system, especially since those vulnerabilities 
could be massive in size. I know we all share the same goals. We want 
to ensure that drugs are safe, effective, and will not compromise the 
integrity of our Nation's prescription drug supply or our world-leading 
pharmaceutical research, and we want it to be at the lowest possible 
cost. Similar to many Americans, I am concerned about the high and 
rising cost of prescription drugs. However, I doubt the importation of 
drugs from other countries will solve that problem all by itself. We 
better be certain about exactly what we are doing and how we are going 
to do it. We have had some hearings on that. We have also gotten some 
phone calls from the Canadian Minister in charge of the program who has 
said: Do you realize that if America suddenly started buying its drugs 
from Canada, we would have to prohibit Americans from doing it. We are 
a small country. We could not take the amount of orders we might 
possibly get because we do have price fixing.
  We talk about negotiated prices and we talk about that in the context 
of Medicare drugs. Congress passed and the President implemented 
Medicare Part D that actually came in considerably lower in cost for 
drugs for American seniors than what we or the Government 
Accountability Office had ever anticipated--dramatically lower. Why? 
Because of competition. How does a country negotiate drug prices? Well, 
the way Canada did it was they said: If there are five drugs that treat 
heart problems, we make a bid for one drug against another drug. If 
there are five heart drugs, they all don't do the same thing. Some 
doctors would prescribe one and others would prescribe another. But if 
you are going to negotiate prices, you make the five bid against each 
other and you pick one or two, and you tell the rest of them they can't 
sell their drugs there, that the Government would not have any part of 
it. This eliminates choices.
  Then there is another little caveat that some of the countries add to 
that which says: If you don't come in with a low enough price, we are 
going to give your patent away and you would not get anything for it. 
We have some real patent issues if we are going to have people 
investing in the research to get new drugs passed and approved, and we 
should take a little look at the process that you have to go through to 
get a drug approved. It is about a $1 billion project to get a drug 
approved. They don't do that because they are wanting to donate $1 
billion; they are doing it because they expect there will be some 
profit on the other end of selling the drug. Otherwise they wouldn't go 
through all that research, all the trouble, all the clinical trials, 
and then turn it over to people for free. They give away quite a few 
drugs, but that is to people who can't afford them. There is a lot to 
the fact that we have more pharmaceutical companies developing more 
drugs than anywhere else. I am pleased that through our committee we 
found out there are over 650 clinical trials happening right now on 
various cancer drugs. That is just in the area of cancer: 650 drugs in 
the pipeline. That is a lot of billions of dollars being spent for us.
  Every once in awhile somebody mentions the high cost of insurance. 
That is something else our committee is working on. I think we have 
some potential for making some good changes there. But one thing I 
always remind people of is I could get them 1980 insurance prices if 
they would settle for 1980 treatments. Then they start to realize how 
many things that have been invented since 1980 that make a difference 
in our life and in our longevity. I don't know of anybody who wants to 
settle for pre-1980 treatments, but they are cheaper.
  In any importation discussion, it is critical we limit imported drugs 
only to those that have been approved by the FDA. It is important to 
understand how small differences between drugs can mean big differences 
in patient health. We are talking about a drug safety bill on the 
Senate floor this week. We all acknowledge that there are drug safety 
problems that must be addressed. It makes no sense to open up our 
borders when we don't have things quite right here at home. Imagine 
trying to handle the world's drug safety when we are having some 
problems handling drug safety in the United States. Furthermore, we 
should not tell companies with whom we must do business how much they 
have to sell and at what price they have to sell it. Those are mandates 
I strongly believe will ultimately limit consumer access to drugs.
  So I look forward to a spirited discussion. I think it will answer 
some of my questions about the legislation and will hopefully inform us 
all on the best direction we can take from here. There are 
possibilities for solutions on drug importation. I hope it will be a 
separate discussion from how the Food and Drug Administration 
administers the safety of pharmaceuticals and medical devices and 
particularly when they concern children. We actually forced the 
pharmaceutical companies and the medical device companies to pay to 
have their products tested and reviewed. That is what a big portion of 
this bill is about: how they will pay for having the products tested 
and reviewed.

[[Page 10691]]

  That needs to be reauthorized before September, or it expires. That 
would mean a lot of additional costs on the taxpayer if we don't do 
those two parts.
  There is also a portion on that which deals with pharmaceuticals for 
children. It is important that tests be done with the pharmaceuticals 
to be sure they are safe for children and in what dosage they are safe 
for children. There is a portion of the bill which gives incentives to 
companies that will go to that extra length to see which of the drugs 
can be used for children as well. That is another potential for a 
fascinating discussion over the next couple of days.
  I compliment the Members who have been working on that. Many are on 
the HELP Committee and have been looking into this with as much depth 
and detail as I have seen on any bill we have ever done. I have also 
seen as much cooperation between both sides of the aisle as I have seen 
on any bill we have done--working together to find a way to take care 
of the concerns and make sure we are improving the safety but also 
making it possible for people to get the pharmaceuticals and get them 
as quickly as possible. It doesn't do any good to have a miracle drug 
and not be able to get it on the market. It doesn't help to have a 
miracle drug with some problems and, because FDA doesn't have the tools 
to change some of those problems, they have to pull it off the market 
and take it away from some people who really rely on that drug. That is 
what this bill does essentially.
  I think in the substitute, or managers' amendment, that will be 
coming out, many of the difficulties people have will have been worked 
out. People are working on them as we speak. That is why the managers' 
amendment has not been laid down. It has been vetted with all Members 
who are interested and working on this, and there has been incredible 
cooperation. I hope people will continue to work with us.
  I do not want anybody to think this bill is a complete answer to 
safety. It doesn't cover some topics. That is because we are still 
working on some topics that are not developed to a point yet where they 
can be done. One is this drug importation. It is being looked at, 
hearings are being held, and we are trying to find out some way prices 
can be lowered in the United States.
  Another problem is biosimilars. There is a whole new area of drugs 
that has come out because the genome has been unlocked and proteins can 
be developed which can be used as medication which will solve some of 
those genetic problems. Those are called biologics. There are people 
who would like them to become generics right away because that would 
bring the cost down. Again, we want to make sure we have a bill that 
takes care of the safety of the biosimilars, to be sure they truly are 
similar and will have the same effect. The Europeans have been working 
on that for a while. We have looked at their model and a number of 
Senators--again from both sides of the aisle--have been working on that 
problem. Senator Clinton and Senator Hatch have been very involved in 
that, providing guidance from both sides of the aisle. We appreciate 
their efforts on it. I do not expect that to be a part of this bill.
  There are a number of tobacco issues, and our committee has a lot of 
concern on that. There are some bills which would provide a different 
way of doing that--maybe put the regulation of tobacco under the 
jurisdiction of the FDA. I hope that will not be a part of this bill. 
That is not ready yet, either. We have a lot of parts that are ready, 
and particularly the user fees need to be done before a deadline that 
is coming up.
  I really appreciate the cooperation we are having in making sure we 
can meet the deadline and have an FDA that is even more responsive and 
has more tools in their toolbox to make sure the drugs out there are 
safe and that there is a system for making sure safety is maintained 
and if there is a problem, that it can be corrected with some of the 
new tools in the toolbox.
  I thank everybody for their cooperation and patience.
  I yield the floor.
  The PRESIDING OFFICER (Mr. Casey). The Senator from Idaho is 
recognized.
  Mr. CRAIG. Mr. President, I ask unanimous consent that I may speak 
for 10 minutes as in morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                                 Energy

  Mr. CRAIG. Mr. President, I am on the floor, as others have been 
today, to speak to an issue that I think is appropriate for this day 
and time. I say so for a variety of reasons but most importantly 
because it is May 1.
  Let me put it this way, because I think it sets the context in which 
I would like to speak for a few moments.
  Mayday, Mayday, Mayday--do you hear me calling? Do you hear the 
frustration of the American consumer today who goes to the gas pump and 
pays record-high gas prices? I saw prices in my State of Idaho today 
verging on an alltime high--$3.32, $3.35, depending how far you are 
from the head of the pipeline.
  Mayday, America. Mayday. The year 1923 is when that term first came 
into use by Frederick ``Big John'' Mockford in an airport in London, 
speaking in the French term. What he was saying was: Help me, help me, 
help me.
  I do believe that is what the American consumer is saying today--help 
me. And to the Congress of the United States and to this Senate, that 
sound ought to be echoing through this Chamber and certainly through 
the halls and the committee rooms that deal with national energy 
policy.
  We are where we are today for absence of policy and for some policy 
that has driven us to less production and becoming increasingly more 
reliant upon someone else to produce our energy for us. It is in that 
context of a Mayday appeal that I speak for a few moments during this 
noon hour.
  Here is what the chart shows us very clearly. From 1890 to 2030, 
these are the trend lines. In 1950, we crossed a unique point when we 
began to see our demand outstrip our supply, and this now--well over 50 
percent of our consumption--is being picked up by other countries in 
the world that are, in many instances, less friendly to us than we 
would like.
  What is happening on May Day--this May Day--to a major supplier to 
the south of us, a guy by the name of Hugo Chavez in Venezuela is 
privatizing today all of the oil fields where our companies produce. He 
is bringing them into his control, into his form of petronationalism, 
and he is saying the priority for Venezuelan oil today is not going to 
be to the United States, it is going to be to Cuba, Bolivia, Nicaragua, 
and Haiti. He is going to become their supplier first. He is also going 
to leave the World Bank and create the Bank of the South. He is one of 
our major suppliers, and he is less than friendly.
  Shouldn't we be speaking out on May Day, as he speaks out toward 
energy independence, toward a greater sense of our own responsibility 
toward our own consumer? What is Fidel saying today? He didn't make the 
parade, apparently, but he sent a letter. He is talking about biofuels 
and saying that America is shifting toward biofuels and they are going 
to consume all of the food supply of the hemisphere to produce energy. 
I find that a bit of a uniqueness. Obviously, while he produces some 
oil, he ships it off to have it refined, and Hugo Chavez and he are 
deciding that Venezuela will be the largest supplier.
  There are a few of us in Congress who read those signals, those 
senses of emergency, that cry for the ``help me'' that I think the 
American consumer is speaking out to today. Our committees are working 
their will at this moment to add to the National Energy Policy Act of 
2005, which will continue to push the renaissance of energy production 
in this country in all forms, not just for hydrocarbons but electricity 
and other forms, in a way that will increasingly make us independent 
and self-reliant.
  Senator Byron Dorgan and I introduced the Safe Energy Act of 2007 a 
month or so ago, which strikes at the heart of the combination of 
efforts that will move us further down the road toward accomplishing 
self-help, self-reliance, and energy independence. In that act, we said 
conservation would be a part of it, as it should be. I, for the

[[Page 10692]]

first time, stepped out and said that I would accept mandatory CAFE 
standards on a growth rate of 4 percent a year to drive the auto 
industry into greater senses of efficiency and lead us toward greater 
levels of conservation. That was title I of the SAFE Act which we think 
the Commerce Committee will mark up in the next week.
  We spoke to innovation and innovation in the advance of biofuels and 
the importance of doing that and that we really ought to strive toward 
the 30 billion gallons, which our President spoke to in the State of 
the Union, by 2020--15 of that being picked up by corn but more 
importantly, now, 15 billion gallons being picked up by cellulosic 
energy--and advancing that as rapidly as we can and getting the loan 
guarantees out and the grants that will take it out of the lab and 
cause it to be a standup commercial refinery using straw, corn stover, 
and all of those types of things which are the production that we think 
ought to go on in the cellulosic area. That is title II of the bill. We 
think that will be marked up tomorrow in the Energy Committee.
  But the one that hasn't yet been marked up and the one I wish to 
spend a little time on today is the area of continued production of 
hydrocarbons in the Outer Continental Shelf. I have called this in the 
past the ``no zone'' speech. Let me combine that with Mayday. While we 
are saying no, our consumers are saying: Help me, help me, because I am 
spending more of my discretionary income on consumables and in the form 
of energy at a rate and level I never had to before. It is causing the 
American economy to shift significantly.
  Here are a variety of things we have done over the years that have 
shaped the Outer Continental Shelf capability. These areas which are 
pointed out on this map are known reserves of oil. Yet, because of 
attitudes at the State level, environmental concerns and frustrations, 
much of that production or the ability to explore within those fields 
has simply been taken off limits. They became the ``no zone,'' even 
after technology clearly proved that you can go into these waters, 
produce there safely, protect the ecosystems involved, and reward the 
American consumer by less dependence upon foreign oil and reserves.
  This area here, this small area, was a sale and an area we were able 
to put through just in the beginning of this year. This, of course, is 
the area in the gulf that is being heavily drilled today. These are the 
off-limits areas.
  I came to the floor some time ago and spoke of what is going on in 
Cuba, and I said that was an unacceptable thing and we ought to do 
something about it. So in the legislation we are talking about, for 
greater flexibility and opportunity in the Outer Continental Shelf, 
what we are really talking about in the SAFE Act--that last title yet 
to be introduced--that really balances conservation with new biofuels 
and increased production in this area, better known as the northern 
Cuban basin. It is an area that is off limits to our producers, and 
Cuba is now moving to produce it. They are going to do so by reaching 
out to other countries--other than ours because we have a prohibition 
on our companies doing business there--and they are looking at the 
French, Spaniards, the Chinese, and others to come and drill.
  Here is my frustration: While we are saying no, all around our 
coastlines, just 45 miles off our coastline, the Cubans have let leases 
for the purpose of drilling.
  I was in Cuba a few years ago visiting with their Interior Minister, 
and he said: We want your companies here. Why? Because you have the 
best technology. You are environmentally proven. You place this 
valuable ecosystem at less risk. That we know. But our policy today 
denies us that.
  There is an interesting little anomaly that happened--and I praise 
the new Secretary of the Interior for doing what he did--and that was 
opening, right off the coast of Virginia, an opportunity to seek 
natural gas and to see if those reserves are out there, which I think 
will drive increased production.
  So today I come to the floor on May Day saying: Mayday, America, 
Mayday, because Americans as they go to the gas pump are saying: Help 
us, help me; change the way this is happening. America, we have a great 
opportunity to move ourselves toward energy independence, less 
dependence on those unstable areas of the world where we now seek well 
over 50 percent of our hydrocarbon oil base. Shame on us. That is bad 
policy, and we have the power to change it if we have the will to 
change it. The will comes from the ability to build a complete 
portfolio of conservation, new technologies, and current production in 
areas where we know our reserves are, by building them up during this 
period of transition as our country moves to new technologies.
  This is a great opportunity. The only reason we are not doing it is 
because of resistance right here in the Congress of the United States, 
in part, put on by pressure from some special interests. But my guess 
is that if we listen closely to the American consumer today, they would 
agree that the SAFE Act and all titles of the SAFE Act ought to become 
public policy and that America clearly ought to be articulating a 
policy of greater energy independence so that next May Day, we can say: 
We heard you call out for help, and we are answering that call. Mayday, 
America, Mayday.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Texas.
  Mrs. HUTCHISON. Mr. President, I am pleased to follow the Senator 
from Idaho who is talking about an issue that is so important for our 
country. It is a wake-up call. Amazingly it is on May Day. I think that 
is the appropriate moniker for what we are facing in this country 
because of what is happening today.
  Mr. President, I wish to talk about what I see happening in Venezuela 
and what I think America should be doing to make sure we maintain the 
capability to control our national security and our economic security.
  Today, President Hugo Chavez is completing his latest and most 
ominous scheme out of the Fidel Castro playbook. He is nationalizing 
multibillion-dollar, heavy oilfields in the Orinoco Belt. This energy-
rich region southeast of Caracas has so much energy potential that some 
experts claim it could give the country more oil reserves than Saudi 
Arabia.
  By seizing the Orinoco Belt, President Chavez is consolidating his 
political power within Venezuela and increasing his ability to 
manipulate global oil markets.
  This nation now accounts for 14 percent of America's oil imports, and 
Mr. Chavez has promised to use his ``strong oil card'' to, in his 
words, ``finish off the U.S. empire,'' even if that means colluding 
with some of the most nefarious regimes on Earth.
  Similar to Fidel Castro, who partnered with the Soviet Union during 
the Cold War, President Chavez is making common cause with America's 
enemies, including the world's largest state sponsor of terrorism, the 
Government of Iran.
  Earlier this year, he met with Iranian President Mahmoud Ahmadinejad 
and made plans for a $2 billion joint fund, part of which will be used 
as a ``mechanism for liberation'' against American allies.
  President Chavez hopes that the profits from the Orinoco Belt will 
flood his coffers for other foreign adventures. But by asserting 
government control over this coveted region, he is actually killing the 
golden goose that feeds his socialist-inspired revolution.
  President Chavez's national oil company has already shown signs of 
stress. Despite record oil prices that should be a boon for the 
industry, the state-run company has been forced to accumulate a rapid 
increase in debt to pay for a doubling of ``social development 
spending.'' Meanwhile, its spending on energy exploration and 
production badly trails its global peers.
  In addition, the Orinoco Belt pronouncement has made ExxonMobil, 
Conoco Phillips, and other energy companies extremely cautious about 
putting their employees and billions of dollars in assets under 
Venezuelan management, and for good reason.
  If those American corporations decide to withhold their expertise and 
investment, it could further weaken the

[[Page 10693]]

Chavez Government's pursuit of socialist dreams and redistribution of 
wealth. ``It seems as if they are going to strangle themselves with 
their own rope,'' said a foreign oil analyst who chose not to be 
identified for fear of retaliation.
  President Chavez's gross mismanagement of the economy should be no 
surprise to anyone who has followed the career of his Cuban mentor, 
Fidel Castro. In less than half a century, Fidel Castro has turned what 
was once the third richest nation in Latin America into one of the 
poorest nations in the world, a real-life prison for 11 million people 
who rely on remittances from abroad to avoid starvation and collapse.
  If President Chavez continues to adopt the Castro economic model, the 
greatest victims will be the Venezuelan people, but America will also 
suffer. That is because the deterioration of Venezuela's oil industry 
could spark a surge in oil prices for American consumers, and we all 
know that prices have already jumped in the last 30 days. Anyone who 
has filled a gasoline tank knows this would be a huge hit on the 
American economy. In fact, some economists say every time oil prices 
rise by 10 percent, an average of 150,000 Americans lose their jobs 
because it presses the economy. Margins are narrowed, and that means 
people are laid off.
  So what should our response be? America must recharge its efforts to 
adopt a comprehensive plan for American energy independence, including 
more exploration for oil and gas at home. It should be a comprehensive 
plan that includes conservation, renewable energy, new research for new 
forms of energy that we have not yet explored, and it should include 
more exploration and drilling for our own resources which we can be 
assured of controlling.
  I wrote an editorial in one of the December issues of the Houston 
Chronicle that said we should be looking to the Outer Continental Shelf 
of the United States, the Gulf of Mexico, Alaska and even the Virginia 
shores and other shores on the Pacific and Atlantic sides.
  Using the comprehensive energy legislation we passed last year, I was 
very pleased to see the announcement yesterday by the Department of the 
Interior that we would, in fact, increase production of the natural 
resources in this country. The Secretary, Dirk Kempthorne, who was once 
a Member of this body, announced that there would be 21 lease sales in 
eight planning areas which could produce 10 billion barrels of oil and 
45 trillion cubic feet of natural gas over 40 years. That would 
generate about $170 billion in today's dollars.
  The potential for this amount of oil exploration alone is equivalent 
to 20 years' worth of what we import from Saudi Arabia or Venezuela.
  They are doing exactly what Congress has authorized them to do--
looking in the Outer Continental Shelf. Even the Commonwealth of 
Virginia is positive about this move because there are now incentives 
for States to allow production in the waters they control. This is one 
part of what we must do as part of a comprehensive approach to energy 
independence.
  We also need to increase research into alternative fuels, such as 
solar and wind power. In March, I introduced legislation called the 
CREST Act, which provides a comprehensive, coordinated national 
research effort that would spur the development of renewable energy for 
the marketplace. The oceans and the Gulf of Mexico have potential for 
energy production and electricity production. Just as we have seen wind 
energy become a factor on land, it can also be a factor in our bodies 
of water.
  We have the resources to achieve energy independence--the resources 
underneath our land and water--and the best resource of all, the 
ingenuity of our free, creative minds. Now we need the willpower to use 
it.
  President Chavez's announcement today is a tremendous challenge to 
America's energy future, but if we choose to be proactive, as we've 
always been throughout our history, we can regain control of our energy 
resources, and be the strongest Nation on Earth.
  We can write our own history, and today is the wake-up call that 
assures we must do it.
  I yield the floor, and I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. SCHUMER. Mr. President, I ask unanimous consent the order for the 
quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. SCHUMER. Mr. President, I understand the Senate has been 
scheduled to recess at 12:30. First, I thank the Presiding Officer for 
waiting for me here. As always he is gracious and kind.
  I now ask unanimous consent that I be permitted to speak for 5 
minutes and that following my statement, the Senate stand in recess 
under the previous order.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                 Emergency Supplemental Appropriations

  Mr. SCHUMER. Mr. President, I rise today to join so many of my 
colleagues, so many of those in the military and so many of the 
American people in urging the President to sign the emergency spending 
bill that relates to Iraq when it reaches his desk. Despite what the 
President keeps repeating, we can do both--we can fund the troops and 
change our mission in Iraq. The emergency spending bill we will send to 
the President shortly gives our troops all the money they need and even 
more than the President requested, and it changes our mission in Iraq 
from policing a civil war to focusing on counterterrorism.
  It has been 4 long years since President Bush landed on the USS 
Abraham Lincoln and prematurely announced ``mission accomplished'' in 
Iraq. Today, 4 years later, there is one thing on which the American 
people, bipartisan majorities in both Houses of Congress, military 
experts, and the Iraq Study Group all agree: We clearly have not 
accomplished our mission in Iraq, and the only way to succeed is to 
change our current course of action.
  It seems only the President and his small band of advisers think we 
have accomplished our mission in Iraq. Only he thinks we should stay 
the course. Only President Bush seems to think the only way to support 
our troops is for the Congress to be a rubberstamp to his policies. 
That is not what the American people want, and that is not what America 
is about. The American people want a change in mission. They want a new 
direction, not more of the same failed policies. That is why, if the 
President really supports our brave men and women fighting in 
Afghanistan and Iraq, he will sign the legislation that we will send to 
him very soon.
  The bill provides reasonable and meaningful guidelines to protect our 
troops by ensuring that all units that are sent overseas to fight are 
ready, trained, and equipped to fight. It will require the Department 
of Defense to adhere to its own guidelines to ensure that every unit 
that is deployed is ``fully mission capable'' for the task at hand.
  Why would the President want to send our troops into Afghanistan and 
Iraq, into fierce battles against the Taliban and the Sunni insurgency 
without the training and equipment needed to get the job done and to 
come home safely? But if the President vetoes this bill, he will not be 
so required.
  More important, this legislation shows both the United States and the 
Government of Iraq how to change the failing strategy in Iraq. It has 
been clear all along that this administration has failed to plan for 
the war. They gave no thought what it would take to accomplish this 
mission. There was no planning for the day after.
  When you think about this, it is infuriating; to think that just 
showing strength alone would solve the whole problem. That kind of 
careless, narrow thinking has led us to where we are now.
  This administration and its President seem to be lost in Iraq. They 
can only do more of the same. We put in

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more troops to support a government that every day gets weaker and 
weaker, that seems to be crumbling from both the Shiite and Sunni side. 
Why are we putting more troops in Iraq to defend a government that 
nobody seems to like and in whom nobody seems to have much faith? The 
escalation is not working.
  As a result, our mission in Iraq has devolved so that most of what we 
do is patrol, police, and stand in the middle of a civil war. The 
Sunnis and the Shiites have hated each other for centuries. Their 
enmity goes way back. They will continue to hate each other, to not 
work with each other, to fight with each other long after we have gone, 
whether we stay 3 months or 3 years. Yet most of the time our troops, 
our brave men and women, are simply caught in the middle of a civil 
war, and we have not even chosen a side. We are just in the middle, and 
they are just in the middle--trying to defend themselves in the middle 
of a civil war when we don't know which side we are on, and we are 
unable to bring the two sides together. It is a debacle.
  That is why the Congress is demanding that the President change the 
current mission in Iraq. As we all know, including General Petraeus, 
the solution to violence in Iraq is ultimately political and not 
military, and that is why Congress has imposed tough benchmarks on the 
Government of Iraq. We cannot afford to send more military troops 
without doing something to change this weak, almost feckless 
Government. Our original purpose in Iraq was to fight terrorism. I 
believe we must continue to fight terrorism; I know that from what 
happened to my city, my beloved city, and the friends I lost and think 
of every day.
  This legislation says let's go back to that original purpose, 
counterterrorism, as well as force protection and training the Iraqis. 
Instead of policing a civil war, U.S. forces will protect U.S. 
facilities and citizens, including members of the U.S. Armed Forces 
engaged in targeted counterterrorism missions to prevent anything that 
happens in Iraq from hurting us at home and continue to train and equip 
Iraqi security forces, although I must say that has not worked out very 
well thus far.
  I believe these benchmarks are reasonable and achievable with renewed 
political will from this administration and from the Government in 
Iraq. The benchmarks were not just pulled out of the air. They were 
suggested by the bipartisan, highly qualified, highly knowledgeable, 
highly experienced Baker-Hamilton commission. But more important, they 
signify the changes in strategy that must be implemented to correct the 
administration's failing strategy in Iraq.
  This is President Bush's war, but he has failed time and time again 
to make the difficult leadership decisions that are needed to protect 
our troops in Iraq. If he vetoes this bill, as he has threatened to do 
on many occasions, our brave men and women will continue to fight a 
brutal war with no forward-look strategy, no long-term plan, little 
regional support, and little chance of establishing a stable, 
representative government in Iraq. Every day it becomes more clear the 
President never had a working plan for Iraq.
  So we have a mission. It is a sacred and important mission. We must 
change the mission in Iraq away from policing a civil war and toward 
counterterrorism, which requires fewer troops and gets many more of 
them out of harm's way. That is what our bill does. It is what the 
American people want. It is what the facts on the ground demand.
  I urge the President to strongly reconsider this threat to veto this 
legislation. If he does, he will be making a terrible mistake, one that 
all of us and maybe even he will come to regret. I urge the President 
to sign the supplemental because it gives our troops and veterans the 
resources they need. It honors the sacrifices of those serving in Iraq 
with a change in mission that is long overdue, and it is my hope that 
one day we will all be able to say that we have accomplished our 
mission in Iraq. But until we change our mission and put in place a 
winning strategy, that day will continue to elude us.
  I yield the floor.
  The PRESIDING OFFICER. Under the previous order, the Senate will 
stand in recess.

                          ____________________