[Congressional Record (Bound Edition), Volume 157 (2011), Part 12]
[Senate]
[Pages 16629-16639]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Ms. SNOWE:
  S. 1801. A bill to amend the Internal Revenue Code of 1986 to extend 
certain provisions of the Creating Small Business Jobs Act of 2010, and 
for other purposes; to the Committee on Finance.
  Ms. SNOWE. Mr. President, today I introduce the Small Business Tax 
Extenders Act of 2011, targeted tax relief legislation to extend, for 
one year, the essential tax relief provisions that were included in the 
Small Business Jobs Act of 2010.
  When the Small Business Jobs Act was crafted, I worked closely with 
Finance Committee Chair Baucus and then Ranking Member Grassley to 
ensure the critical small business tax provisions that reflected our 
shared priorities were included in that legislation. I sincerely 
appreciate all of their hard work on that legislation.
  As the former Chair and now Ranking Member of the Small Business 
Committee, I am well aware of the urgent imperative of job creation in 
our country. According to the Bureau of Labor Statistics, the average 
annual unemployment rate for 2010 was 9.6 percent. For 27 out of the 
past 32 months the unemployment rate has been at 9 percent or above. 
About 45 percent of the unemployed have been out of work for at least 6 
months--a level previously unseen in the 6 decades since World War II.
  At a time when 14 million Americans are still unemployed, and have 
been so for the longest period since record keeping began in 1948, our 
government should be taking every possible step to ease the burden on 
job creators. We must help create an environment that is conducive to 
small businesses' job creation. One critical way to do so is through 
targeted small business tax incentives.
  That is why as a senior member of the Senate Finance Committee, I 
have been urging this administration to champion tax reform and in 
fact, I led a panel on the issue as part of the Economic Summit at the 
White House more than 2 years ago.
  The individual income tax form has more than tripled in length from 
52 pages for 1980 to 174 pages for 2009. American taxpayers spend 7.6 
billion hours and shell out $140 billion, or 1 percent of GDP, just 
struggling to comply with tax filing requirements. This is not 
surprising as there has been 15,000 changes to the tax code since the 
last overhaul in 1986.
  Alarmingly, the tax code is also needlessly handcuffing our ability 
to compete in today's integrated global economy, as we strain under the 
second highest corporate tax burden in the industrialized world. While 
this administration and the Senate majority are pondering whether we 
should reform our tax code, small businesses continued to struggle with 
the current tax regime at the expense of creating more jobs and growing 
operations.
  While I continue to advocate for comprehensive tax reform, there are 
certain measures that, although not a silver bullet, should be passed 
right away to help improve the economic environment for small 
businesses. The Small Business Tax Extenders Act of 2011 is a critical 
example. This legislation contains provisions I have championed for 
years to provide small businesses greater cash flow, incentivizing 
their investments, and increasing tax fairness.
  The lifeblood of a small business is its cash flow and this bill 
contains several provisions to improve it. One of these provisions will 
address a fundamental injustice of the tax code by extending for 
another year deduction for health insurance premiums against not only 
income taxes but also against payroll taxes. At a rate of 15.3 percent, 
the self-employment, or SECA, tax is imposed on the health benefits of 
business owners. This is a costly injustice that makes health insurance 
just that much more expensive at a time when insurance costs are 
already prohibitively expensive.
  In the coming year we will certainly see health premiums rise, making 
it all the more onerous on small businesses to provide critical 
benefits to their employees. Allowing the full deduction for health 
insurance is critical for its affordability. I was thrilled that we 
were able to address this injustice in the Small Business Jobs Act of 
2010, and I sincerely hope that this provision can be extended for 
another year.
  This legislation will also extend for 1 year a provision permitting 
general business credits to be carried back 5 years and taken against 
the Alternative Minimum Tax, AMT. Before the enactment of the Small 
Business Jobs Act, a business's unused general business credit could be 
carried back to offset taxes paid in the previous year, and the 
remaining amount could be carried forward for 20 years to offset future 
tax liabilities.
  The 5-year carryback of credits will allow business owners to reach 
back to prior years when they had taxable income to offset prior tax 
liability with these credits and get immediate cash infusion. Business 
owners can use this cash as they choose, but as we have seen with net 
operating loss relief, they use these funds for anything from meeting 
payroll to investing in new equipment. The same principle applies with 
respect to the provision that allows credits to be used against the 
AMT.
  When Congress implements policies through the tax code, it is with 
intent that businesses will utilize such incentives to do what they do 
best--grow their operations which in turns leads to hiring additional 
employees. Unfortunately during a downward business cycle that we have 
been experiencing for more than two years, businesses do not have 
income tax liability that can be offset with a credit. It is rather 
simple: if you do not have enough revenue to claim a credit, that 
credit is of little use to you.
  An incredible benefit of the carryback and the use of general 
business credits against the AMT is to make the small business health 
insurance tax credits enacted earlier this year more effective and make 
health insurance more affordable for business owners to offer to their 
employees.
  This bill would also extend for 1 year the availability of the so-
called section 179 expensing to give businesses the option of writing 
off the cost of qualifying capital expenses in the year of acquisition 
instead of recovering these costs over time through depreciation, and 
allow businesses to take advantage of higher limits for the so-called 
section 179 expensing. Under this provision, up to $250,000 can be 
expensed for real property and up to $250,000 for equipment, or up to 
the full $500,000 for just equipment.
  Expanding Section 179 expensing has been a significant Small Business 
Committee bipartisan priority of mine, and former Small Business 
Committee Chair Kerry and current Chair Landrieu, as reflected in no 
fewer than three separate bills in the previous Congress: the Small 
Business Stimulus Act of 2009, S. 156, Snowe-Kerry-Landrieu; the Small 
business Expensing Permanency Act of 2009, S. 2822, Snowe-Landrieu; and 
the Small Business Job Creation Act of 2010, S. 3103, Snowe.
  I want my colleagues to understand that this provision is expected to 
confer a major economic boost because it certainly speeds up the 
recovery time on these investments. Extending this provision will help 
the businesses modernize while aiding construction firms and their 
employees.
  Additionally, the Small Business Jobs Act of 2010 provided for a 
temporary reduction in the recognition period for S corporation built-
in gains tax. When businesses move from being a corporation with two 
levels of tax to an S corporation, they have generally been required to 
hold their ``retained earnings'' for up to 10 years. This prevents 
owners from taking the retained earnings as distributions where only 
income taxes are owed rather than both corporate income tax at one 
level and then personal income tax at the second. Recent law changes 
have shortened this holding period to 7 years, but that is still too 
long.

[[Page 16630]]

  By infusing capital, of their own retained earnings, this provision 
in the Small Business Jobs Act enabled companies to reduce the holding 
period from 7 years to 5 years so that companies that made the 
conversion before 2006 can redeploy this capital for use in their 
business. Extending this provision also underscores how vital retained 
earnings are for small businesses.
  A final provision would extend for one year a complete exclusion on 
capital gains attributable to small business stock held for 5 years. 
Extending this measure will help further critical investment in our 
Nation's small businesses. This is a longstanding priority of mine and 
of Senator John Kerry, former Chair of the Small Business Committee and 
my fellow colleague on the Finance Committee. The Kerry-Snowe Invest in 
Small Business Act of 2009 included this exclusion, which we fought to 
incorporate into the Small Business Jobs Act.
  It is essential that we pass these small business tax extensions. I 
urge my colleagues to support this legislation so we can ensure that 
our Nation's small businesses and their employees are provided with 
much needed tax relief.
  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. 1801

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

     SECTION 1. SHORT TITLE; ETC.

       (a) Short Title.--This Act may be cited as the ``Small 
     Business Jobs Tax Extenders Act of 2011''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; etc.
Sec. 2. Findings.

            TITLE I--EXTENSION OF SMALL BUSINESS TAX RELIEF

Sec. 101. Extension of temporary exclusion of 100 percent of gain on 
              certain small business stock.
Sec. 102. Extension of 5-year carryback of general business credits of 
              eligible small businesses.
Sec. 103. Extension of alternative minimum tax rules for general 
              business credits of eligible small businesses.
Sec. 104. Extension of temporary reduction in recognition period for 
              built-in gains tax.
Sec. 105. Extension of increased expensing limitations and treatment of 
              certain real property as section 179 property.
Sec. 106. Extension of bonus depreciation.
Sec. 107. Extension of special rule for long-term contract accounting.
Sec. 108. Extension of increased amount allowed as a deduction for 
              start-up expenditures.
Sec. 109. Extension of allowance of deduction for health insurance in 
              computing self-employment taxes.

                    TITLE II--OFFSETTING PROVISIONS

Sec. 201. Expansion of affordability exception to individual mandate.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) A vibrant and growing small business sector is critical 
     to the recovery of the economy of the United States.
       (2) Small businesses represent 99.7 percent of all employer 
     firms and generate approximately two-thirds of net new jobs.
       (3) Broadening the tax base and lowering statutory rates 
     through comprehensive tax reform is preferable to short term 
     tax rate extensions.
       (4) There is no consensus on Congressional passage and 
     implementation of such reform at this time; it is therefore 
     critical that tax relief for small businesses promulgated in 
     the Small Business Jobs Act of 2010 be extended.

            TITLE I--EXTENSION OF SMALL BUSINESS TAX RELIEF

     SEC. 101. EXTENSION OF TEMPORARY EXCLUSION OF 100 PERCENT OF 
                   GAIN ON CERTAIN SMALL BUSINESS STOCK.

       (a) In General.--Paragraph (4) of section 1202(a) is 
     amended--
       (1) by striking ``January 1, 2012'' and inserting ``January 
     1, 2013'', and
       (2) by striking ``and 2011'' and inserting ``2011, and 
     2012'' in the heading thereof.
       (b) Effective Date.--The amendments made by this section 
     shall apply to stock acquired after December 31, 2011.

     SEC. 102. EXTENSION OF 5-YEAR CARRYBACK OF GENERAL BUSINESS 
                   CREDITS OF ELIGIBLE SMALL BUSINESSES.

       (a) In General.--Subparagraph (A) of section 39(a)(4) is 
     amended by ``or 2011'' after ``2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to credits determined in taxable years beginning 
     after December 31, 2010.

     SEC. 103. EXTENSION OF ALTERNATIVE MINIMUM TAX RULES FOR 
                   GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL 
                   BUSINESSES.

       (a) In General.--Subparagraph (A) of section 38(c)(5) is 
     amended by ``or 2011'' after ``2010''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to credits determined in taxable years beginning 
     after December 31, 2010, and to carrybacks of such credits.

     SEC. 104. EXTENSION OF TEMPORARY REDUCTION IN RECOGNITION 
                   PERIOD FOR BUILT-IN GAINS TAX.

       (a) In General.--Clause (ii) of section 1374(d)(7)(B) is 
     amended by inserting ``or 2012,'' after ``2011''.
       (b) Conforming Amendment.--The heading for section 
     1372(d)(7)(B) is amended by striking ``and 2011'' and 
     inserting ``2011, and 2012''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 105. EXTENSION OF INCREASED EXPENSING LIMITATIONS AND 
                   TREATMENT OF CERTAIN REAL PROPERTY AS SECTION 
                   179 PROPERTY.

       (a) In General.--Section 179(b) is amended--
       (1) by striking ``2010 or 2011'' each place it appears in 
     paragraph (1)(B) and (2)(B) and inserting ``2010, 2011, or 
     2012'',
       (2) by striking ``2012'' each place it appears in paragraph 
     (1)(C) and (2)(C)and inserting ``2013'', and
       (3) by striking ``2012'' each place it appears in paragraph 
     (1)(D) and (2)(D) and inserting ``2013''.
       (b) Inflation Adjustment.--Subparagraph (A) of section 
     179(b)(6) is amended by striking ``2012'' and inserting 
     ``2013''.
       (c) Computer Software.--Section 179(d)(2)(A)(ii) is amended 
     by striking ``2013'' and inserting ``2014''.
       (d) Election.--Section 179(c)(2) is amended by striking 
     ``2013'' and inserting ``2014''.
       (e) Special Rules for Treatment of Qualified Real 
     Property.--Section 179(f)(1) is amended by striking ``2010 or 
     2011'' and inserting ``2010, 2011, or 2012''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

     SEC. 106. EXTENSION OF BONUS DEPRECIATION.

       (a) In General.--Paragraph (2) of section 168(k) is 
     amended--
       (1) by striking ``January 1, 2014'' in subparagraph (A)(iv) 
     and inserting ``January 1, 2015'', and
       (2) by striking ``January 1, 2013'' each place it appears 
     and inserting ``January 1, 2014''.
       (b) 100 Percent Expensing.--Paragraph (5) of section 168(k) 
     is amended--
       (1) by striking ``January 1, 2013'' and inserting ``January 
     1, 2014'', and
       (2) by striking ``January 1, 2012'' each place it appears 
     and inserting ``January 1, 2013''.
       (c) Extension of Election to Accelerate the AMT Credit in 
     Lieu of Bonus Depreciation.--
       (1) In general.--Subclause (II) of section 
     168(k)(4)(D)(iii) is amended by striking ``2013'' and 
     inserting ``2014''.
       (2) Round 3 extension property.--Paragraph (4) of section 
     168(k) is amended by adding at the end the following new 
     subparagraph:
       ``(J) Special rules for round 3 extension property.--
       ``(i) In general.--In the case of round 3 extension 
     property, this paragraph shall be applied without regard to--

       ``(I) the limitation described in subparagraph (B)(i) 
     thereof, and
       ``(II) the business credit increase amount under 
     subparagraph (E)(iii) thereof.

       ``(ii) Taxpayers previously electing acceleration.--In the 
     case of a taxpayer who made the election under subparagraph 
     (A) for its first taxable year ending after March 31, 2008, a 
     taxpayer who made the election under subparagraph (H)(ii) for 
     its first taxable year ending after December 31, 2008, or a 
     taxpayer who made the election under subparagraph (I)(iii) 
     for its first taxable year ending after December 31, 2010--

       ``(I) the taxpayer may elect not to have this paragraph 
     apply to round 3 extension property, but
       ``(II) if the taxpayer does not make the election under 
     subclause (I), in applying this paragraph to the taxpayer the 
     bonus depreciation amount, maximum amount, and maximum 
     increase amount shall be computed and applied to eligible 
     qualified property which is round 3 extension property.

     The amounts described in subclause (II) shall be computed 
     separately from any amounts computed with respect to eligible 
     qualified property which is not round 2 extension property.
       ``(iii) Taxpayers not previously electing acceleration.--In 
     the case of a taxpayer

[[Page 16631]]

     who neither made the election under subparagraph (A) for its 
     first taxable year ending after March 31, 2008, nor made the 
     election under subparagraph (H)(ii) for its first taxable 
     year ending after December 31, 2008, nor made the election 
     under subparagraph (I)(iii) for its first taxable year ending 
     after December 31, 2010--

       ``(I) the taxpayer may elect to have this paragraph apply 
     to its first taxable year ending after December 31, 2011, and 
     each subsequent taxable year, and
       ``(II) if the taxpayer makes the election under subclause 
     (I), this paragraph shall only apply to eligible qualified 
     property which is round 3 extension property.

       ``(iv) Round 3 extension property.--For purposes of this 
     subparagraph, the term `round 3 extension property' means 
     property which is eligible qualified property solely by 
     reason of the extension of the application of the special 
     allowance under paragraph (1) pursuant to the amendments made 
     by section 7(a) of the Small Business Jobs Tax Extenders Act 
     of 2011 (and the application of such extension to this 
     paragraph pursuant to the amendment made by section 7(c)(1) 
     of such Act).''.
       (d) Conforming Amendments.--
       (1) The heading for subsection (k) of section 168 is 
     amended by striking ``January 1, 2013'' and inserting 
     ``January 1, 2014''.
       (2) The heading for clause (ii) of section 168(k)(2)(B) is 
     amended by striking ``pre-january 1, 2013'' and inserting 
     ``pre-january 1, 2014''.
       (3) Paragraph (5) of section 168(l) is amended--
       (A) by striking ``and'' at the end of subparagraph (A),
       (B) by redesignating subparagraph (C) as subparagraph (B), 
     and
       (C) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) by substituting `January 1, 2013' for `January 1, 
     2014' in clause (i) thereof, and''.
       (4) Subparagraph (C) of section 168(n)(2) is amended by 
     striking ``January 1, 2013'' and inserting ``January 1, 
     2014''.
       (5) Subparagraph (D) of section 1400L(b)(2) is amended by 
     striking ``January 1, 2013'' and inserting ``January 1, 
     2014''.
       (6) Subparagraph (B) of section 1400N(d)(3) is amended by 
     striking ``January 1, 2013'' and inserting ``January 1, 
     2014''.
       (e) Effective Dates.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2011, in taxable years ending after such date.

     SEC. 107. EXTENSION OF SPECIAL RULE FOR LONG-TERM CONTRACT 
                   ACCOUNTING.

       (a) In General.--Clause (ii) of section 460(c)(6)(B) is 
     amended by striking ``January 1, 2011 (January 1, 2012'' and 
     inserting ``January 1, 2012 (January 1, 2013''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2010.

     SEC. 108. EXTENSION OF INCREASED AMOUNT ALLOWED AS A 
                   DEDUCTION FOR START-UP EXPENDITURES.

       (a) In General.--Paragraph (3) of section 195(b) is 
     amended--
       (1) by inserting ``or 2011'' after ``2010'', and
       (2) by inserting ``and 2011'' in the heading thereof.
       (b) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2010.

     SEC. 109. EXTENSION OF ALLOWANCE OF DEDUCTION FOR HEALTH 
                   INSURANCE IN COMPUTING SELF-EMPLOYMENT TAXES.

       (a) In General.--Paragraph (4) of section 162(l) is amended 
     by striking ``December 31, 2010'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

                    TITLE II--OFFSETTING PROVISIONS

     SEC. 201. EXPANSION OF AFFORDABILITY EXCEPTION TO INDIVIDUAL 
                   MANDATE.

       Section 5000A(e)(1) is amended by striking ``8 percent'' 
     each place it appears and inserting ``5 percent''.
                                 ______
                                 
      By Mr. UDALL of Colorado (for himself, Mrs. Gillibrand, Mr. 
        Merkley, and Mr. Bennet):
  S. 1802. A bill to authorize the Secretary of the Interior to carry 
out programs and activities that connect Americans, especially 
children, youth, and families, with the outdoors; to the Committee on 
Health, Education, Labor, and Pensions.
  Mr. UDALL of Colorado. Mr. President, today I speak in support of a 
bill I am introducing called the Healthy Kids Outdoor Act of 2011. This 
bill will help the development of locally-based plans that will 
encourage kids to enjoy one of our nation's most cherished past-times: 
recreating outdoors.
  I am introducing the Healthy Kids Outdoors Act of 2011 with the 
support of Senators Gillibrand, Merkley and Bennet. My friend and 
colleague Representative Kind of Wisconsin is introducing companion 
legislation today in the U.S. House of Representatives. I want to thank 
Rep. Kind for his leadership on these issues over the years. I 
especially want to thank him for the opportunity to steal his good idea 
and appropriate it for myself in the Senate.
  Specifically, the Healthy Kids Outdoors Act authorizes the U.S. 
Secretary of the Interior to provide grants, one per State, to eligible 
organizations for the development of State-level outdoor recreation 
plans. Working in cooperation with local partners, the eligible 
entities will develop plans designed to ensure that States have 
appropriate programs and infrastructure in place to help Americans 
effectively connect with the outdoors. These plans supplement current 
outdoor recreation planning by emphasizing how to use outdoor 
recreation resources and infrastructure, such as public parks, 
transportation and health systems, to facilitate outdoor activities. 
The plans supported by Federal funding under this act must be updated 
every five years based on evaluations of each state strategy and 
lessons learned from their implementation. Additionally, in order to 
ensure that state and local partners are contributing to this effort, 
funding recipients must provide a 25-percent non-federal cost share.
  Finally, this bill requires the administration to develop a national 
strategy to get Americans active outdoors and evaluate the health 
impacts of the State strategies authorized under the legislation. The 
national strategy, to be developed with significant public 
participation, should align with the State strategies and identify 
barriers to and opportunities for outdoor activities.
  Why is this important you might ask, especially at a time when we are 
looking at ways to cut spending and other programs?
  We live in an increasingly sedentary world that makes it more 
difficult for our Nation to reach the heights that it can achieve. 
Today's society provides more distractions from active lifestyles and 
the natural world around us than ever before. This is particularly true 
among children, who spend on average just 4-7 minutes a day in 
unstructured outdoor play while spending an average of 7.5 hours a day 
in front of electronic media. Partially as a result of this, obesity 
has become a major public health problem. Today, one in three children 
is either overweight or obese, whereas only about 4 percent of children 
in 1960 were. Working together, we must find proactive ways to reverse 
this harmful trend.
  Being overweight or obese can lead to many chronic health conditions, 
including heart disease, stroke, and diabetes. All of these conditions 
are costly for health care purchasers and patients, reduce quality of 
life, and are among the top 6 leading causes of death each year. The 
good news is that, in the vast majority of cases, obesity is completely 
preventable. Particularly for children, if we teach them good eating 
and fitness habits early in life, they will have a much better shot at 
maintaining a healthy weight later in life. In addition, research 
demonstrates the myriad mental health benefits of active lifestyles 
that make use of green spaces outside the home.
  Furthermore, spending time in the outdoors, connecting with our 
public lands and waters and green spaces, furthers America's 
conservation legacy. For example, research demonstrates that hunters 
who become engaged in the sport as children are among the most active 
and interested sportsmen as adults.
  Spending time in the outdoors also supports the outdoor recreation 
industry. We have a large and growing industry in this country of 
supply stores, manufacturers, guides, hotels, and other important 
businesses that are the backbone of many rural communities. In fact, 
outdoor recreation activities add over $730 billion to the national 
economy every year. In this time of economic uncertainty, outdoor 
recreation is one of the bright spots in our economy.
  Additionally, at a time when disparities in health status and health 
insurance rates for minority populations are at an all-time high, 
particularly in my

[[Page 16632]]

State of Colorado, the common sense goals of the Healthy Kids Outdoors 
Act can help level the playing field for good health across America. 
This legislation will make it easier for all Americans, regardless of 
cultural differences, geography or socio-economic status, especially 
children and families, to connect with healthy, active, outdoor 
lifestyles and the natural world. By doing so, we can combat the 
obesity epidemic, improve public health overall and bolster America's 
proud legacy of conservation and outdoor recreation economy.
  Finally, I want to note that this bill could play a small role in 
making sure our children, as they reach adulthood, are qualified to 
serve in our U.S. military, if they so choose. As a member of the 
Senate Armed Services Committee, I have seen firsthand the studies that 
have shown that greater and greater numbers of young adults are 
ineligible to serve in the Armed Forces due to disqualifying health 
factors such as being overweight. Nearly one in four applicants is 
rejected for being overweight, which is the most common reason for 
medical disqualification. It's not a stretch to say that a more fit 
population can result in a more secure nation.
  This legislation is a small but important step we can take to promote 
healthy, active lifestyles supporting the use and enjoyment of our 
natural world. I want to thank the Outdoor Alliance for Kids, whose 
members include many of the country's leading conservation groups and 
outdoor recreation companies, for its support and help developing this 
bill. I also want to thank the Campaign to End Obesity for their 
endorsement of it. I look forward to working with my colleagues to 
advance this legislation.
  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. 1802

       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 ``Healthy Kids Outdoors Act of 
     2011''.

     SEC. 2. FINDINGS.

       Congress finds as follows:
       (1) Children today are spending less time outdoors than any 
     generation in human history, as evidenced by studies that 
     show children enjoy half as much time outdoors today as they 
     did just 20 years ago, while spending more than 7\1/2\ hours 
     every day in front of electronic media.
       (2) The health of our children is at risk as evidenced by 
     the growing obesity crisis where, during the 20-year period 
     between 1991 and 2011, the childhood obesity rate has more 
     than doubled and the adolescent obesity rate has tripled, 
     costing the economy of the United States billions of dollars 
     each year.
       (3) Our military readiness is declining as nearly 1 in 4 
     applicants to the military is rejected for being overweight 
     or obese, which is the most common reason for medical 
     disqualification.
       (4) Research has shown that military children and families 
     are facing increased stress and mental strain and challenges 
     due to multiple, extended deployments. Military family 
     service organizations have developed programs that connect 
     military children and families with positive, meaningful 
     outdoor experiences that benefit mental and physical health, 
     but they lack sufficient resources to meet increasing demand.
       (5) In addition to the negative economic impact of 
     childhood obesity, the outdoor retail industry, many local 
     tourist destinations or ``gateway communities'', and State 
     fish and wildlife agencies rely on revenue generated when 
     individuals spend time outdoors to create jobs in local 
     communities.
       (6) Over the past several years, urbanization, changing 
     land use patterns, increasing road traffic, and inadequate 
     solutions to addressing these challenges in the built 
     environment have combined to make it more difficult for many 
     Americans to walk or bike to schools, parks, and play areas 
     or experience the natural environment in general.
       (7) Visitation to our Nation's public lands has declined or 
     remained flat in recent years, and yet, connecting with 
     nature and the great outdoors in our communities is critical 
     to fostering the next generation of outdoor enthusiasts who 
     will visit, appreciate, and become stewards of our Nation's 
     public lands.
       (8) It takes many dedicated men and women to work to 
     preserve, protect, enhance, and restore America's natural 
     resources, and with an aging workforce in the natural 
     resource professions, it is critical for the next generation 
     to have an appreciation for nature and be ready to take over 
     these responsibilities.
       (9) Spending time outdoors in nature is beneficial to our 
     children's physical, mental, and emotional health and has 
     been proven to decrease symptoms of attention deficit and 
     hyperactivity disorder, stimulate brain development, improve 
     motor skills, result in better sleep, reduce stress, increase 
     creativity, improve mood, and reduce children's risk of 
     developing myopia.
       (10) Children who spend time playing outside are more 
     likely to take risks, seek out adventure, develop self-
     confidence, and respect the value of nature.
       (11) Spending time in green spaces outside the home, 
     including parks, play areas, and garden, can increase 
     concentration, inhibition of initial impulses, and self-
     discipline and has been shown to reduce stress and mental 
     fatigue. In one study, children who were exposed to greener 
     environments in a public housing area demonstrated less 
     aggression, violence, and stress.
       (12) As children become more disconnected from the natural 
     world, the hunting and angling conservation legacy of America 
     is at risk.
       (13) Conservation education and outdoor recreation 
     experiences such as camping, hiking, boating, hunting, 
     fishing, archery, recreational shooting, wildlife watching, 
     and others are critical to engaging young people in the 
     outdoors.
       (14) Hunters and anglers play a critical role in 
     reconnecting young people with nature, protecting our natural 
     resources, and fostering a lifelong understanding of the 
     value of conserving the natural world.
       (15) Research demonstrates that hunters who become engaged 
     in hunting as children are among the most active and 
     interested hunters as adults. The vast majority of hunters 
     report they were introduced to hunting between the ages of 10 
     and 12, and the overwhelming majority of children are 
     introduced to hunting by an adult.
       (16) A direct childhood experience with nature before the 
     age of 11 promotes a long-term connection to nature.
       (17) Parks and recreation, youth-serving, service-learning, 
     conservation, health, education, and built-environment 
     organizations, facilities, and personnel provide critical 
     resources and infrastructure for connecting children and 
     families with nature.
       (18) Place-based service-learning opportunities use our 
     lands and waters as the context for learning by engaging 
     students in the process of exploration, action, and 
     reflection. Physical activity outdoors connected with 
     meaningful community service to solve real-world problems, 
     such as removing invasive plants or removing trash from a 
     streambed, strengthens communities by engaging youth as 
     citizen stewards.
       (19) States nationwide and their community based partners 
     have some notable programs that connect children and families 
     with nature; however, most States lack sufficient resources 
     and a comprehensive strategy to effectively engage State 
     agencies across multiple fields.
       (20) States need to engage in cross-sector agency and 
     nonprofit collaboration that involves public health and 
     wellness, parks and recreation, transportation and city 
     planning, and other sectors focused on connecting children 
     and families with the outdoors to increase coordination and 
     effective implementation of the policy tools and programs 
     that a State can bring to bear to provide healthy outdoor 
     opportunities for children and families.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Eligible entity.--The term ``eligible entity'' means--
       (A) a State; or
       (B) a consortium from one State that may include such State 
     and municipalities, entities of local or tribal governments, 
     parks and recreation departments or districts, school 
     districts, institutions of higher education, or nonprofit 
     organizations.
       (2) Local partners.--The term ``local partners'' means a 
     municipality, entity of local or tribal government, parks and 
     recreation departments or districts, Indian tribe, school 
     district, institution of higher education, nonprofit 
     organization, or a consortium of local partners.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (4) State.--The term ``State'' means any of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the United States Virgin Islands, Guam, American Samoa, 
     the Commonwealth of the Northern Mariana Islands, any other 
     territory or possession of the United States, or any Indian 
     tribe.

     SEC. 4. COOPERATIVE AGREEMENTS FOR DEVELOPMENT OR 
                   IMPLEMENTATION OF HEALTHY KIDS OUTDOORS STATE 
                   STRATEGIES.

       (a) In General.--The Secretary is authorized to issue one 
     cooperative agreement per State to eligible entities to 
     develop, implement, and update a 5-year State strategy, to be 
     known as a ``Healthy Kids Outdoors State Strategy'', designed 
     to encourage Americans, especially children, youth, and 
     families, to be physically active outdoors.
       (b) Submission and Approval of Strategies.--

[[Page 16633]]

       (1) Applications.--An application for a cooperative 
     agreement under subsection (a) shall--
       (A) be submitted not later than 120 days after the 
     Secretary publishes guidelines under subsection (f)(1); and
       (B) include a Healthy Kids Outdoors State Strategy meeting 
     the requirements of subsection (c) or a proposal for 
     development and submission of such a strategy.
       (2) Approval of strategy; peer review.--Not later than 90 
     days after submission of a Healthy Kids Outdoors State 
     Strategy, the Secretary shall, through a peer review process, 
     approve or recommend changes to the strategy.
       (3) Strategy update.--An eligible entity receiving funds 
     under this section shall update its Healthy Kids Outdoors 
     State Strategy at least once every 5 years. Continued funding 
     under this section shall be contingent upon submission of 
     such updated strategies and reports that document impact 
     evaluation methods consistent with the guidelines in 
     subsection (f)(1) and lessons learned from implementing the 
     strategy.
       (c) Comprehensive Strategy Requirements.--The Healthy Kids 
     Outdoors State Strategy under subsection (a) shall include--
       (1) a description of how the eligible entity will encourage 
     Americans, especially children, youth, and families, to be 
     physically active in the outdoors through State, local, and 
     tribal--
       (A) public health systems;
       (B) public parks and recreation systems;
       (C) public transportation and city planning systems; and
       (D) other public systems that connect Americans, especially 
     children, youth, and families, to the outdoors;
       (2) a description of how the eligible entity will partner 
     with nongovernmental organizations, especially those that 
     serve children, youth, and families, including those serving 
     military families and tribal agencies;
       (3) a description of how State agencies will collaborate 
     with each other to implement the strategy;
       (4) a description of how funding will be spent through 
     local planning and implementation subgrants under subsection 
     (d);
       (5) a description of how the eligible entity will evaluate 
     the effectiveness of, and measure the impact of, the 
     strategy, including an estimate of the costs associated with 
     such evaluation;
       (6) a description of how the eligible entity will provide 
     opportunities for public involvement in developing and 
     implementing the strategy;
       (7) a description of how the strategy will increase 
     visitation to Federal public lands within the state; and
       (8) a description of how the eligible entity will leverage 
     private funds to expand opportunities and further implement 
     the strategy.
       (d) Local Planning and Implementation.--
       (1) In general.--A Healthy Kids Outdoors State Strategy 
     shall provide for subgrants by the cooperative agreement 
     recipient under subsection (a) to local partners to implement 
     the strategy through one or more of the program activities 
     described in paragraph (2).
       (2) Program activities.--Program activities may include--
       (A) implementing outdoor recreation and youth mentoring 
     programs that provide opportunities to experience the 
     outdoors, be physically active, and teach skills for lifelong 
     participation in outdoor activities, including fishing, 
     hunting, recreational shooting, archery, hiking, camping, 
     outdoor play in natural environments, and wildlife watching;
       (B) implementing programs that connect communities with 
     safe parks, green spaces, and outdoor recreation areas 
     through affordable public transportation and trail systems 
     that encourage walking, biking, and increased physical 
     activity outdoors;
       (C) implementing school-based programs that use outdoor 
     learning environments, such as wildlife habitats or gardens, 
     and programs that use service learning to restore natural 
     areas and maintain recreational assets; and
       (D) implementing education programs for parents and 
     caregivers about the health benefits of active time outdoors 
     to fight obesity and increase the quality of life for 
     Americans, especially children, youth, and families.
       (e) Priority.--In making cooperative agreements under 
     subsection (a) and subgrants under subsection (d)(1), the 
     Secretary and the recipient under subsection (a), 
     respectively, shall give preference to entities that serve 
     individuals who have limited opportunities to experience 
     nature, including those who are socioeconomically 
     disadvantaged or have a disability or suffer 
     disproportionately from physical and mental health stressors.
       (f) Guidelines.--Not later than 180 days after the date of 
     the enactment of this Act, and after notice and opportunity 
     for public comment, the Secretary shall publish in the 
     Federal Register guidelines on the implementation of this 
     Act, including guidelines for--
       (1) developing and submitting strategies and evaluation 
     methods under subsection (b); and
       (2) technical assistance and dissemination of best 
     practices under section 7.
       (g) Reporting.--Not later than 2 years after the Secretary 
     approves the Healthy Kids Outdoors State Strategy of an 
     eligible entity receiving funds under this section, and every 
     year thereafter, the eligible entity shall submit to the 
     Secretary a report on the implementation of the strategy 
     based on the entity's evaluation and assessment of meeting 
     the goals specified in the strategy.
       (h) Allocation of Funds.--An eligible entity receiving 
     funding under subsection (a) for a fiscal year--
       (1) may use not more than 5 percent of the funding for 
     administrative expenses; and
       (2) shall use at least 95 percent of the funding for 
     subgrants to local partners under subsection (d).
       (i) Match.--An eligible entity receiving funding under 
     subsection (a) for a fiscal year shall provide a 25-percent 
     match through in-kind contributions or cash.

     SEC. 5. NATIONAL STRATEGY FOR ENCOURAGING AMERICANS TO BE 
                   ACTIVE OUTDOORS.

       (a) In General.--Not later than September 30, 2012, the 
     President, in cooperation with appropriate Federal 
     departments and agencies, shall develop and issue a national 
     strategy for encouraging Americans, especially children, 
     youth, and families, to be physically active outdoors. Such a 
     strategy shall include--
       (1) identification of barriers to Americans, especially 
     children, youth, and families, spending healthy time outdoors 
     and specific policy solutions to address those barriers;
       (2) identification of opportunities for partnerships with 
     Federal, State, tribal, and local partners;
       (3) coordination of efforts among Federal departments and 
     agencies to address the impacts of Americans, especially 
     children, youth, and families, spending less active time 
     outdoors on--
       (A) public health, including childhood obesity, attention 
     deficit disorders and stress;
       (B) the future of conservation in the United States; and
       (C) the economy;
       (4) identification of ongoing research needs to document 
     the health, conservation, economic, and other outcomes of 
     implementing the national strategy and State strategies;
       (5) coordination and alignment with Healthy Kids Outdoors 
     State Strategies; and
       (6) an action plan for implementing the strategy at the 
     Federal level.
       (b) Strategy Development.--
       (1) Public participation.--Throughout the process of 
     developing the national strategy under subsection (a), the 
     President may use, incorporate, or otherwise consider 
     existing Federal plans and strategies that, in whole or in 
     part, contribute to connecting Americans, especially 
     children, youth, and families, with the outdoors and shall 
     provide for public participation, including a national summit 
     of participants with demonstrated expertise in encouraging 
     individuals to be physically active outdoors in nature.
       (2) Updating the national strategy.--The President shall 
     update the national strategy not less than 5 years after the 
     date the first national strategy is issued under subsection 
     (a), and every 5 years thereafter. In updating the strategy, 
     the President shall incorporate results of the evaluation 
     under section 6.

     SEC. 6. NATIONAL EVALUATION OF HEALTH IMPACTS.

       The Secretary, in coordination with the Secretary of Health 
     and Human Services, shall--
       (1) develop recommendations for appropriate evaluation 
     measures and criteria for a study of national significance on 
     the health impacts of the strategies under this Act; and
       (2) carry out such a study.

     SEC. 7. TECHNICAL ASSISTANCE AND BEST PRACTICES.

       The Secretary shall--
       (1) provide technical assistance to grantees under section 
     4 through cooperative agreements with national organizations 
     with a proven track record of encouraging Americans, 
     especially children, youth, and families, to be physically 
     active outdoors; and
       (2) disseminate best practices that emerge from strategies 
     funded under this Act.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary to carry out this Act--
       (1) $1,000,000 for fiscal year 2013;
       (2) $2,000,000 for fiscal year 2014;
       (3) $3,000,000 for fiscal year 2015;
       (4) $4,000,000 for fiscal year 2016; and
       (5) $5,000,000 for fiscal year 2017.
       (b) Limitation.--Of the amounts made available to carry out 
     this Act for a fiscal year, not more than 5 percent may be 
     made available for carrying out section 7.
       (c) Supplement, Not Supplant.--Funds made available under 
     this Act shall be used to supplement, and not supplant, any 
     other Federal, State, or local funds available for activities 
     that encourage Americans, especially children, youth, and 
     families to be physically active outdoors.
                                 ______
                                 
      By Mr. REED (for himself, Mr. Durbin, Mr. Whitehouse, Mr. Levin, 
        and Mr. Merkley):
  S. 1804. A bill to amend title IV of the Supplemental Appropriations 
Act, 2008

[[Page 16634]]

to provide for the continuation of certain unemployment benefits, and 
for other purposes; to the Committee on Finance.
  Mr. REED. Mr. President, today I am introducing the Emergency 
Unemployment Compensation Extension Act of 2011 to ensure that millions 
of unemployed Americans will not lose desperately needed unemployment 
benefits and to provide relief to states and employers that are facing 
automatic penalties for overdrawing on their unemployment insurance 
trust fund during the worst unemployment crisis in modern history. I am 
pleased to be joined by my colleagues Senators Durbin, Whitehouse and 
Levin.
  Fourteen million Americans are looking for work and the average 
length of unemployment is 40 weeks. Rhode Island has endured especially 
high and persistent rates of unemployment. If Congress fails to extend 
unemployment benefits or if benefits lapse for as little as a month--
10,000 Rhode Islanders and 2 million Americans nationwide will fall 
through the safety-net and lose benefits. This would have far reaching 
impacts on families, communities, and businesses. It would seriously 
endanger our economic recovery as a whole.
  The legislation would continue funding for the Federal unemployment 
programs for jobless workers through 2012 by extending the Emergency 
Unemployment Compensation Program and making improvements to the 
Extended Benefits Program.
  The bill will also provide relief for States and employers that have 
been hit the hardest by our unemployment crisis and whose unemployment 
trust funds have been subjected to historic levels of stress by 
providing a 1 year moratorium on interest payments for States and tax 
relief for employers in States with outstanding unemployment trust fund 
loans.
  Requiring States to make such interest repayments now, at a time when 
they face massive budget deficits and the economy is still weak does 
not make economic sense. Nor does requiring businesses to pay an 
additional tax of $21 per employee for the 2011 tax year.
  This bill would provide immediate relief and certainty to 23 States 
with outstanding loans and all of their employers facing automatic tax 
increases that are otherwise set to be assessed as soon as January 31, 
2012.
  For States that have remained solvent during this crisis, they would 
receive a 2 percent interest bonus on trust fund reserves. This 
reflects the need to start moving in the direction of replenishing and 
maintaining solvent unemployment trust funds, which is why I joined 
Senator Durbin in introducing the Unemployment Insurance Solvency Act 
earlier this year.
  Unfortunately, today's legislation is necessary because Republicans 
have blocked passage of the President's American Jobs Act. The American 
Jobs Act proposed extending the EUC and EB programs along with 
incorporating several important reforms to the Ul system. These reforms 
would provide enhanced assistance to the long-term unemployed in their 
job search and ensure benefits are being administered properly. Indeed, 
as we look to extend unemployment benefits to those who have been 
harmed by this economy through no fault of their own and aid States and 
employers, we must be mindful to enhance the integrity of the 
unemployment system and prevent improper payments, which hurt taxpayers 
and ultimately erode benefits for those that are most in need. It is my 
hope that Congress and States, which are responsible for administering 
these programs, continue to improve the integrity and functioning of 
our Ul system.
  We know what policies will strengthen our recovery. Extending 
benefits and addressing solvency are among them and I urge my 
colleagues to join us in cosponsoring and pressing for action on this 
important legislation.
  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. 1804

       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 ``Emergency 
     Unemployment Compensation Extension Act of 2011''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

              TITLE I--EXTENSION OF UNEMPLOYMENT PROGRAMS

Sec. 101. Temporary extension of unemployment insurance provisions.
Sec. 102. Modification of indicators under the extended benefit 
              program.
Sec. 103. Additional extended unemployment benefits under the Railroad 
              Unemployment Insurance Act.

                TITLE II--STATE AND EMPLOYER ASSISTANCE

Sec. 201. Extension of temporary assistance for States with advances.
Sec. 202. FUTA credit reductions for 2011 contingent on voluntary 
              agreements.
Sec. 203. Assistance contingent on voluntary agreements.
Sec. 204. Solvency bonus.

              TITLE I--EXTENSION OF UNEMPLOYMENT PROGRAMS

     SEC. 101. TEMPORARY EXTENSION OF UNEMPLOYMENT INSURANCE 
                   PROVISIONS.

       (a) In General.--(1) Section 4007 of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (A) by striking ``January 3, 2012'' each place it appears 
     and inserting ``January 3, 2013'';
       (B) in the heading for subsection (b)(2), by striking 
     ``january 3, 2012'' and inserting ``january 3, 2013''; and
       (C) in subsection (b)(3), by striking ``June 9, 2012'' and 
     inserting ``June 8, 2013''.
       (2) Section 2005 of the Assistance for Unemployed Workers 
     and Struggling Families Act, as contained in Public Law 111-5 
     (26 U.S.C. 3304 note; 123 Stat. 444), is amended--
       (A) by striking ``January 4, 2012'' each place it appears 
     and inserting ``January 4, 2013''; and
       (B) in subsection (c), by striking ``June 11, 2012'' and 
     inserting ``June 11, 2013''.
       (3) Section 5 of the Unemployment Compensation Extension 
     Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is 
     amended by striking ``June 10, 2012'' and inserting ``June 
     10, 2013''.
       (b) Funding.--Section 4004(e)(1) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (1) in subparagraph (F), by striking ``and'' at the end; 
     and
       (2) by inserting after subparagraph (G) the following:
       ``(H) the amendments made by section 101(a)(1) of the 
     Emergency Unemployment Compensation Extension Act of 2011; 
     and''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the Tax 
     Relief, Unemployment Insurance Reauthorization, and Job 
     Creation Act of 2010 (Public Law 111-312).

     SEC. 102. MODIFICATION OF INDICATORS UNDER THE EXTENDED 
                   BENEFIT PROGRAM.

       (a) Extension.--Section 203 of the Federal-State Extended 
     Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) 
     is amended--
       (1) in subsection (d), by striking ``December 31, 2011'' 
     and inserting ``December 31, 2012''; and
       (2) in subsection (f)(2), by striking ``December 31, 2011'' 
     and inserting ``December 31, 2012''.
       (b) Indicator.--Section 203(d) of the Federal-State 
     Extended Unemployment Compensation Act of 1970 (26 U.S.C. 
     3304 note) is amended by adding at the end the following: 
     ``Effective with respect to compensation for weeks of 
     unemployment beginning on or after January 1, 2012 (or, if 
     later, the date established pursuant to State law) and ending 
     on or before December 31, 2012, the State may by statute, 
     regulation, or other issuance having the force and effect of 
     law provide that the determination of whether there has been 
     a State `on' or `off' indicator beginning or ending any 
     extended benefit period shall be made under this subsection, 
     disregarding subparagraph (A) of paragraph (1) and 
     disregarding `either subparagraph (A) or' in paragraph 
     (2).''.
       (c) Alternative Trigger.--Section 203(f) of the Federal-
     State Extended Unemployment Compensation Act of 1970 (26 
     U.S.C. 3304 note) is amended--
       (1) by redesignating paragraph (3) as paragraph (4); and
       (2) by inserting after paragraph (2) the following:
       ``(3) Effective with respect to compensation for weeks of 
     unemployment beginning on or after January 1, 2012 (or, if 
     later, the date established pursuant to State law) and ending 
     on or before December 31, 2012, the State may by statute, 
     regulation, or other issuance with the force and effect of 
     law provide that the determination of whether there has been 
     a State `on' or `off' indicator beginning or ending any 
     extended benefit period shall be made under this subsection, 
     disregarding clause (ii) of paragraph (1)(A) and as if 
     paragraph (1)(B) had been amended by striking `either the 
     requirements of clause

[[Page 16635]]

     (i) or (ii)' and inserting `the requirements of clause 
     (i)'.''.

     SEC. 103. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE 
                   RAILROAD UNEMPLOYMENT INSURANCE ACT.

       (a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad 
     Unemployment Insurance Act, as added by section 2006 of the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5) and as amended by section 9 of the Worker, 
     Homeownership, and Business Assistance Act of 2009 (Public 
     Law 111-92) and section 505 of the Tax Relief, Unemployment 
     Insurance Reauthorization, and Job Creation Act of 2010 
     (Public Law 111-312), is amended--
       (1) by striking ``June 30, 2011'' and inserting ``June 30, 
     2012''; and
       (2) by striking ``December 31, 2011'' and inserting 
     ``December 31, 2012''.
       (b) Clarification on Authority To Use Funds.--Funds 
     appropriated under either the first or second sentence of 
     clause (iv) of section 2(c)(2)(D) of the Railroad 
     Unemployment Insurance Act shall be available to cover the 
     cost of additional extended unemployment benefits provided 
     under such section 2(c)(2)(D) by reason of the amendments 
     made by subsection (a) as well as to cover the cost of such 
     benefits provided under such section 2(c)(2)(D), as in effect 
     on the day before the date of the enactment of this Act.

                TITLE II--STATE AND EMPLOYER ASSISTANCE

     SEC. 201. EXTENSION OF TEMPORARY ASSISTANCE FOR STATES WITH 
                   ADVANCES.

       Section 1202(b)(10)(A) of the Social Security Act (42 
     U.S.C. 1322(b)(10)(A)) is amended, in the matter before 
     clause (i), by striking ``2010--'' and inserting ``2010 and 
     the 12-month period beginning on October 1, 2011--''.

     SEC. 202. FUTA CREDIT REDUCTIONS FOR 2011 CONTINGENT ON 
                   VOLUNTARY AGREEMENTS.

       (a) In General.--Section 3302(c) of the Internal Revenue 
     Code of 1986 is amended--
       (1) by redesignating paragraph (3) as paragraph (4), and
       (2) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3)(A) If a State has entered into a voluntary agreement 
     under section 203 of the Emergency Unemployment Compensation 
     Extension Act of 2011, the provisions of paragraph (2) shall 
     be applied with respect to the taxable year beginning January 
     1, 2011, or any succeeding taxable year, by deeming January 
     1, 2012, to be the first January 1 occurring after January 1, 
     2010. For purposes of paragraph (2), consecutive taxable 
     years in the period commencing January 1, 2012, shall be 
     determined as if the taxable year which begins on January 1, 
     2012, were the taxable year immediately succeeding the 
     taxable year which began on January 1, 2010. No taxpayer 
     shall be subject to credit reductions under this paragraph 
     for the taxable year beginning January 1, 2011.
       ``(B) If the voluntary agreement specified in subparagraph 
     (A) is terminated under section 203(e) of the Emergency 
     Unemployment Compensation Extension Act of 2011, subparagraph 
     (A) shall not be effective for any taxable year.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 203. ASSISTANCE CONTINGENT ON VOLUNTARY AGREEMENTS.

       (a) In General.--The amendment made by section 201 shall 
     not apply with respect to any State with which the Secretary 
     of Labor has not entered into a voluntary agreement under 
     this section.
       (b) Application.--Any State that has 1 or more outstanding 
     repayable advances from the Federal unemployment account 
     under section 1201 of the Social Security Act (42 U.S.C. 
     1321) may apply to the Secretary of Labor to enter into a 
     voluntary agreement under this section.
       (c) Requirements.--An application described in subsection 
     (b) shall be submitted within such time, and in such form and 
     manner, as the Secretary of Labor may require, except that 
     any such application shall include certification by the State 
     that during the period of the agreement--
       (1) the method governing the computation of regular 
     compensation under the State law of the State will not be 
     modified in a manner such that the average weekly benefit 
     amount of regular compensation which will be payable during 
     the period of the agreement will be less than the average 
     weekly benefit amount of regular compensation which would 
     have otherwise been payable under the State law as in effect 
     on the date of the enactment of this subsection;
       (2) the State law of the State will not be modified in a 
     manner such that any unemployed individual who would be 
     eligible for regular compensation under the State law in 
     effect on such date of enactment would be ineligible for 
     regular compensation during the period of the agreement or 
     would be subject to any disqualification during the period of 
     the agreement that the individual would not have been subject 
     to under the State law in effect on such date of enactment; 
     and
       (3) the State law of the State will not be modified in a 
     manner such that the maximum amount of regular compensation 
     that any unemployed individual would be eligible to receive 
     in a benefit year during the period of the agreement will be 
     less than the maximum amount of regular compensation that the 
     individual would have been eligible to receive during a 
     benefit year under the State law in effect on such date of 
     enactment.
       (d) Decision.--The Secretary of Labor shall review any 
     application received from a State to enter into a voluntary 
     agreement under this section and, within 30 days after the 
     date of receipt, approve or disapprove the application and 
     notify the Governor of the State of the Secretary's decision, 
     including--
       (1) if approved, the effective date of the agreement; and
       (2) if disapproved, the reasons why it was disapproved.
       (e) Termination.--
       (1) In general.--If, after reasonable notice and 
     opportunity for a hearing, the Secretary of Labor finds that 
     a State with which the Secretary has entered into an 
     agreement under this section has modified State law so that 
     it no longer contains the provisions specified in paragraph 
     (1), (2), or (3) of subsection (c) or has failed to comply 
     substantially with any of those provisions, the agreement 
     shall be terminated, effective as of such date as the 
     Secretary shall determine, but in no event later than 
     December 31, 2012.
       (2) Effect with respect to repayable advances.--If an 
     agreement under this section with a State is terminated, 
     then, effective as of the termination date of such agreement, 
     paragraph (10) of section 1202(b) of the Social Security Act 
     shall, for purposes of such State, be applied as if 
     subparagraph (A) of such paragraph had been amended by 
     striking the date specified in such subparagraph (in the 
     matter before clause (i) thereof) and inserting the 
     termination date of such agreement.
       (f) Regulations.--Any regulations or guidance necessary to 
     carry out this title or any of the amendments made by this 
     title may be prescribed by--
       (1) to the extent that they relate to section 201, the 
     Secretary of Labor; and
       (2) to the extent that they relate to section 202, the 
     Secretary of the Treasury.
       (g) Definitions.--For purposes of this section, the terms 
     ``State'', ``State law'', ``regular compensation'', and 
     ``benefit year'' have the respective meanings given such 
     terms under section 205 of the Federal-State Extended 
     Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

     SEC. 204. SOLVENCY BONUS.

       Section 904 of the Social Security Act (42 U.S.C. 1104) is 
     amended by adding at the end the following:

                            ``Solvency Bonus

       ``(h)(1) Notwithstanding any other provision of this 
     section, the amount which is credited under subsection (e) to 
     the book account of the State agency of a solvent State 
     shall, for each quarter to which this subsection applies, be 
     equal to the amount which would be determined under this 
     section, for such State agency and for such quarter, if the 
     5th sentence of subsection (b) were applied by using--
       ``(A) the average rate of interest which (but for this 
     subsection) would otherwise have been determined under 
     subsection (b) for purposes of such quarter; plus
       ``(B) an additional 2 percentage points.
       ``(2) For purposes of this subsection, a State shall be 
     considered to be a `solvent State' if the outstanding balance 
     for such State of advances under title XII is equal to zero. 
     A determination as to whether or not a State is a solvent 
     State shall be made by the Secretary of Labor--
       ``(A) for each State;
       ``(B) for each quarter to which this subsection applies; 
     and
       ``(C) based on such date or period (before the 1st day of 
     such quarter), and otherwise in such manner, as the Secretary 
     of Labor shall determine in consultation with the Secretary 
     of the Treasury.
       ``(3) This subsection applies to each quarter in calendar 
     year 2012.
       ``(4) Nothing in this subsection shall have the effect of 
     causing the amount which is credited under subsection (e) to 
     any account in the Fund for any quarter to be less than the 
     amount which (disregarding this subsection) would otherwise 
     have been so credited to such account for such quarter.''.
                                 ______
                                 
      By Mr. JOHANNS:
  S. 1805. A bill to prohibit the Administrator of the Environmental 
Protection Agency from rejecting or otherwise determining to be 
inadequate a State implementation plan in any case in which the State 
submitting the plan has not been given a reasonable time to develop and 
submit the plan in accordance with a certain provision of the Clean Air 
Act; to the Committee on Environment and Public Works.
  Mr. JOHANNS. Mr. President, few things provide me with greater 
charity than conversations I have with people back home in Nebraska. I 
rise to discuss a few of those conversations I had just last week 
during our work period back home. I used this opportunity to meet with 
electricity providers serving Nebraskans across the great State of

[[Page 16636]]

Nebraska, from the more populated areas such as Omaha, to smaller 
communities such as Hastings, NE.
  It will come as no surprise, I believe to anyone, that the focus of 
their frustration, their anger is with the EPA. They feel they have 
been treated unfairly. They feel the Agency has not been straight 
forward or transparent. They feel they now have a target on their 
backs, and they know that compliance with the latest EPA regulatory 
bombshell is going to have a crushing impact on the communities they 
serve.
  Their latest concern is a rule known as the cross-state air pollution 
rule or cross-state. The rule addresses airborne emissions that EPA 
claims cross State lines and may affect air quality in another State. 
EPA issued the final rule in July of this year. Let me repeat that. EPA 
issued the final rule in July of this year and then demanded compliance 
by January 2012.
  That is 6 months. That is an impossibility and EPA knows it. Here is 
why it is an impossibility. This is especially relevant to my State. 
Nebraska was not included in the old version of the same rule, the so-
called clean air interstate rule. We were not a part of it. The final 
rule changed dramatically from the proposed version.
  For example, the required reductions increased dramatically from the 
proposed rule that was published in July of 2010. So Nebraska first 
found itself subject to this type of EPA rule in the proposed rule in 
July of 2010. Then the final rule arrives a year later and, boom, it is 
a dramatically different rule--more severe reductions in compliance in 
an almost laughable 6 months.
  Basically, Nebraska gets a final rule thrust upon them and no 
opportunity to comply. That could not be more unjust. Draconian changes 
made in a final rule that depart so significantly from the proposed 
rule defeat the very purpose of our laws that prescribe how agencies 
are supposed to make rules. I ran one of those agencies as Secretary of 
Agriculture.
  This process makes a mockery out of the rulemaking process. It makes 
public comments absolutely meaningless. What good does review of a 
proposed rule do when the final rule is so radically different from the 
original proposal? It also means the community regulated cannot plan 
and cannot fix the problem.
  This is our government we are talking about. Utilities cannot go to 
their ratepayers and say: Look, we have to make changes. It is going to 
take some time and money, but here is our plan and here is how much it 
will cost as a ratepayer. EPA has totally shoved aside the traditional 
role that some State regulators play as an EPA partner in establishing 
clean air plans known as State implementation plans. In fact, in this 
case, the EPA established a Federal implementation plan, a one-size-
fits-all national plan that completely rejects State efforts to manage 
compliance.
  Our power providers and regulators are echoing this same message. 
There just is not enough time for them. Instead of 3 or 5 or 10 years 
that is needed, by administrative fiat, EPA has said: They get 6 months 
to rebuild a powerplant. Let me be crystal clear about what Nebraska's 
power providers did and did not do.
  They did not say: We cannot change and we will not change. They did 
not say: Just leave me alone. What they did say to me, very clearly, 
is: We cannot waive a magic wand. We cannot do the impossible. We 
cannot put together the finance plan in 6 months. We cannot put a 
request for bid out and get the work done in 6 months. We cannot get a 
design plan written by a competent engineering firm. We cannot arrange 
for a plant shutdown. We cannot get the construction crews to our 
facility, especially as cold weather sets into our State between now 
and January 1 to rebuild the powerplants. It simply is not humanly 
possible.
  What options are possible? Someone listening to me might ask: What 
options do they have? Unfortunately, the first thing our providers are 
doing is just trying to understand the rule. That in itself is no small 
task, because as I explained, the rule is essentially brand new. The 
ink is barely dry. The EPA did a head fake. They said: Here is the rule 
and then completely changed it in the final rule.
  Secondly, electricity providers are making plans--get this. They are 
making plans all across this country to decrease electric generation 
because of this rule. In Hastings, NE, ratepayers have been told to 
expect an increase in operating costs of at least $3.8 million per 
year. Including costs of retrofits for this rule and two others that 
are in the works by EPA, Hastings figures $40 to $50 million will be 
spent over the next 5 years.
  Think about that for a second. Imagine $40 to $50 million for a 
community of 25,000 people. That is for Hastings and only if the 
utility can figure out how it can get it done. Guess who bears the 
brunt of these costs. Every Hastings resident with an electricity 
meter--not shareholders. This is not a big electric company. No 
shareholder equity will be drawn down, no preferred stock to be newly 
issued. We are, in our State, a 100-percent public power State. Just 
those folks in Hastings, NE, because they got swept into an EPA rule 
last July with a January deadline. Fremont, NE, another great Nebraska 
community caught in the crosshairs, has indicated the cross-state rule 
and two other EPA rules will cost customers about $35 million over the 
next 3 years.
  In New York City or Washington, DC, $35 million may seem 
insignificant. But to the 25,000 residents of Fremont, NE, it is a huge 
deal. Similarly, the cross-state rule will cost the Nebraska public 
power district, our largest electricity provider, about $6 million next 
year in reduced revenue, as well as mandating about $40 million in 
costs before the end of 2012. Electricity providers across the State 
are all looking at purchasing power from other generators. The only way 
they can get compliance now is to reduce generation.
  Of course, many neighboring utilities in the State are subject to the 
same final rule. Guess what. This is the problem across the country. So 
everybody is in the hunt, and the short compliance timeframe is likely 
to drive the price of energy even higher. Another option includes 
purchasing pollution credits on the open market. No one knows how much 
it will cost because the same comprised timeline affects the markets 
for credits.
  People may have also noticed I have not mentioned the bid, the 
design, the implementation, the installation of pollution control 
equipment as a compliance strategy, because in our State, that 
possibility is not an option for us because of the EPA's timeline. Six 
months is not enough time, especially when the labor, the technical 
knowledge, the contractors, the financing are all being chased by our 
utilities subject to the same rule.
  Is it any wonder people are frustrated? Is it any wonder at all? That 
is why today I am introducing legislation that addresses the way the 
EPA handled this rule. My bill takes a couple reasonable steps to 
address this unfair treatment, not only in my State but in 27 other 
States. First, under my bill, EPA is prohibited from dictating Federal 
implementation plans unless the Agency has given the State a sufficient 
amount of time to develop a plan.
  The State must be given 2 years to put a plan in place. In addition, 
if my bill is enacted, EPA cannot choose to reject a State's plan if, 
as a result, compliance would immediately follow. In other words, my 
bill prohibits EPA from jamming States by rejecting their plans and 
requiring an unreasonable compliance timeframe. Finally, my bill says 
EPA's compliance deadlines are set aside for 3 years while States get a 
chance to put this together. The message of my bill is straightforward: 
Do not freeze out States. Do not jam us with a compliance schedule that 
everybody knows will not work.
  Nebraskans, similar to everybody else, are tired of being treated as 
second-class citizens by an agency that has run amuck. I suspect the 
same is true of 27 other States. Nebraskans simply cannot believe EPA 
is hitting the accelerator on a rule that will drive up electricity 
bills in more than half the country with no way for States to comply.
  I share their frustration. The EPA is in a constant thirst for power. 
I urge

[[Page 16637]]

my colleagues to cosponsor this legislation, to introduce one small 
dose of common sense to this out-of-control agency.
                                 ______
                                 
      By Mr. BINGAMAN:
  S. 1807. A bill to amend the Federal Nonnuclear Energy Research and 
Development Act of 1974 to provide for the prioritization, 
coordination, and streamlining of energy research, development, and 
demonstration programs to meet current and future energy needs, and for 
other purposes; to the Committee on Energy and Natural Resources.
  Mr. BINGAMAN. Mr. President, I am pleased to introduce the Energy 
Research and Development Coordination Act of 2011. This bill updates 
one of the basic statutes governing energy research and development, 
the Federal Nonnuclear Energy Research and Development Act of 1974, to 
improve the planning and coordination of energy research and 
development government-wide. It also puts in place a mechanism to allow 
Congress to see a consolidated annual budget for all energy research, 
development, and demonstration activities across the Federal agencies, 
and to provide an opportunity to better coordinate and reduce 
unnecessary duplication in these activities.
  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. 1807

       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 ``Energy Research and 
     Development Coordination Act of 2011''.

     SEC. 2. COMPREHENSIVE PLAN FOR ENERGY RESEARCH, DEVELOPMENT, 
                   AND DEMONSTRATION.

       (a) In General.--Section 6 of the Federal Nonnuclear Energy 
     Research and Development Act of 1974 (42 U.S.C. 5905) is 
     amended--
       (1) by striking the section heading and all that follows 
     through the end of subsection (a) and inserting the 
     following:

     ``SEC. 6. COMPREHENSIVE PLANNING AND PROGRAMMING.

       ``(a) Comprehensive Plan.--
       ``(1) In general.--The Secretary, in consultation with the 
     National Energy Research Coordination Council established 
     under section 18, shall submit to Congress, along with the 
     annual submission of the budget by the President under 
     section 1105 of title 31, United States Code, a comprehensive 
     plan for energy research, development, and demonstration 
     programs across the Federal Government.
       ``(2) Relationship to other reviews.--The plan--
       ``(A) shall be based on the most recent Quadrennial Energy 
     Review prepared under section 801 of the Department of Energy 
     Organization Act (42 U.S.C. 7321); and
       ``(B) may take into account key energy developments since 
     the most recent Quadrennial Energy Review.
       ``(3) Revisions.--The plan shall be appropriately revised 
     annually in accordance with section 15(a).
       ``(4) Goals.--The plan shall be designed to achieve 
     solutions to problems in energy supply, transmission, and use 
     (including associated environmental problems) in--
       ``(A) the immediate and short-term (the period up to 5 
     years after submission of the plan);
       ``(B) the medium-term (the period from 5 years to 15 years 
     after submission of the plan); and
       ``(C) the long-term (the period beyond 15 years after 
     submission of the plan).''; and
       (2) in subsection (b), by striking ``(b)(1)'' and all that 
     follows through the end of paragraph (1) and inserting the 
     following:
       ``(b) Department of Energy Program.--
       ``(1) Program.--
       ``(A) In general.--Based on the comprehensive plan 
     developed under subsection (a), the Secretary shall develop 
     and submit to Congress, along with the annual budget 
     submission for the Department, a detailed description of an 
     energy research, development, and demonstration program to 
     implement the aspects of the comprehensive plan appropriate 
     to the Department.
       ``(B) Updates.--The program shall be updated and 
     transmitted to Congress annually as a part of the report 
     required under section 15.''.
       (b) Reports.--Section 15 of the Federal Nonnuclear Energy 
     Research and Development Act of 1974 (42 U.S.C. 5914) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``this Act'' and 
     inserting ``this Act and the plan under this Act'';
       (B) in paragraph (2), by striking ``nuclear and 
     nonnuclear''; and
       (C) in paragraph (3), by striking ``nonnuclear'';
       (2) in subsection (b)--
       (A) in the matter preceding paragraph (1), by striking 
     ``nonnuclear'' and inserting ``energy''; and
       (B) in paragraph (1), by striking ``objections'' and 
     inserting ``objectives''; and
       (3) by striking subsection (c) and inserting the following:
       ``(c) Administration.--Section 3003 of the Federal Reports 
     Elimination and Sunset Act of 1995 (31 U.S.C. 1113 note; 
     Public Law 104-66) shall not apply to this section.''.

     SEC. 3. COORDINATION AND REDUCTION OF DUPLICATION OF ENERGY 
                   RESEARCH, DEVELOPMENT, AND DEMONSTRATION 
                   ACTIVITIES.

       The Federal Nonnuclear Energy Research and Development Act 
     of 1974 (42 U.S.C. 5901 et seq.) is amended by adding at the 
     end the following:

     ``SEC. 18. COORDINATION AND REDUCTION OF DUPLICATION OF 
                   ENERGY RESEARCH, DEVELOPMENT, AND DEMONSTRATION 
                   ACTIVITIES.

       ``(a) Definitions.--In this section:
       ``(1) Annual budget submission.--The term `annual budget 
     submission' means the budget proposal of the President 
     transmitted under section 1105 of title 31, United States 
     Code.
       ``(2) Chairpersons.--The term `Chairpersons' means--
       ``(A) the Director of the Office of Science and Technology 
     Policy; and
       ``(B) the Secretary.
       ``(3) Comprehensive plan.--The term `comprehensive plan' 
     means the comprehensive plan for energy research, 
     development, and demonstration developed under sections 6(a) 
     and 15(a).
       ``(4) Council.--The term `Council' means the National 
     Energy Research Coordination Council established under 
     subsection (b).
       ``(5) Energy program agency.--The term `energy program 
     agency' means an executive department or agency for which the 
     annual expenditure budget for energy research, development, 
     and demonstration activities, including activities described 
     in section 6(b), exceeds $10,000,000.
       ``(b) National Energy Research Coordination Council.--
       ``(1) Establishment.--There is established within the 
     Department a National Energy Research Coordination Council to 
     coordinate the development and funding of energy research, 
     development, and demonstration activities for all energy 
     program agencies.
       ``(2) Composition.--The Council shall be composed of--
       ``(A) the Director of the Office of Science and Technology 
     Policy and the Secretary, who shall jointly serve as 
     Chairpersons of the Council;
       ``(B) the Director of the Office of Management and Budget;
       ``(C) the head of any energy program agency; and
       ``(D) such other officers or employees of executive 
     departments and agencies as the President may, from time to 
     time, designate.
       ``(c) National Energy Research, Development, and 
     Demonstration Program Budget.--
       ``(1) In general.--The Chairpersons shall--
       ``(A) in coordination with the Council, establish for each 
     fiscal year a consolidated budget proposal to implement the 
     comprehensive plan, taking into account--
       ``(i) applicable recommendations of the National Academy of 
     Sciences under this Act; and
       ``(ii) the need to avoid unnecessary duplication of 
     programs across Federal agencies;
       ``(B) provide budget guidance, coordination, and review in 
     the development of energy research, development, and 
     demonstration budget requests submitted to the Office of 
     Management and Budget by each energy program agency; and
       ``(C) submit to the President and Congress the consolidated 
     budget proposal under subparagraph (A) as part of the annual 
     budget submission.
       ``(2) Timing and format of budget requests.--The head of 
     each energy program agency shall ensure timely budget 
     development and submission to the Chairpersons of energy 
     research, development, and demonstration budget requests, in 
     such format as may be determined by the Chairpersons with the 
     concurrence of the Director of the Office of Management and 
     Budget.
       ``(d) Coordination of Implementation.--The Chairpersons, in 
     consultation with the Council, shall--
       ``(1) establish objectives and priorities for energy 
     research, development, and demonstration functions under this 
     Act;
       ``(2) review the implementation of the comprehensive plan 
     in all energy program agencies;
       ``(3) make such recommendations to the President as the 
     Chairpersons determine are appropriate regarding changes in 
     the organization, management, and budgets of energy program 
     agencies--
       ``(A) to implement the policies, objectives, and priorities 
     established under paragraph (1) and the comprehensive plan; 
     and
       ``(B) to avoid unnecessary duplication of programs across 
     Federal agencies; and
       ``(4) notify the head of an energy program agency if the 
     policies or activities of the energy program agency are not 
     in compliance

[[Page 16638]]

     with the responsibilities of the energy program agency under 
     the comprehensive plan.
       ``(e) Reports From the National Academy of Sciences.--
       ``(1) In general.--The Secretary, in consultation with the 
     Council, may enter into appropriate arrangements with the 
     National Academy of Sciences under which the Academy shall 
     prepare reports that evaluate and provide recommendations 
     with respect to specific areas of energy research, 
     development, and demonstration, including areas described in 
     section 6(b) and fundamental science and engineering research 
     supporting those areas.
       ``(2) Submission to congress.--The Secretary shall submit 
     to Congress a copy of each report prepared under this 
     subsection.
       ``(f) Independent Administration of Council.--
       ``(1) Location.--The physical location of the Council shall 
     be separate and distinct from the headquarters of the 
     Department.
       ``(2) Budget.--The Secretary shall submit the budget of the 
     Council as a separate and distinct element of the budget 
     submission of the Department for a fiscal year.
       ``(3) Personnel.--
       ``(A) In general.--The Secretary shall ensure that the 
     Council has necessary administrative support and personnel of 
     the Department to carry out this section.
       ``(B) Council personnel.--
       ``(i) In general.--The Chairpersons shall select, appoint, 
     employ, and fix the compensation of such officers and 
     employees of the Council as are necessary to carry out the 
     functions of the Council.
       ``(ii) Authority.--Each officer or employee of the 
     Council--

       ``(I) shall be responsible to and subject to the authority, 
     direction, and control of the Chairpersons, acting through an 
     Executive Director appointed by the Chairpersons or the 
     designee of the Executive Director; and
       ``(II) shall not be responsible to, or subject to the 
     authority, direction, or control of, any other officer, 
     employee, or agent of the Department or Office of Science and 
     Technology Policy.

       ``(C) Prohibition on dual office holding.--An individual 
     may not concurrently hold or carry out the responsibilities 
     of--
       ``(i) a position within the Council; and
       ``(ii) a position within the Department or Office of 
     Science and Technology Policy that is not within the Council.
       ``(g) GAO Review of Effectiveness of Council.--Not later 
     than 3 years after the date of enactment of this section and 
     every 3 years thereafter, the Comptroller General of the 
     United States shall submit to Congress a management 
     assessment of the Council, including an assessment of whether 
     the Council is--
       ``(1) adequately staffed with personnel with necessary 
     skills;
       ``(2) properly coordinating and disseminating policy and 
     budget information to the energy program agencies and 
     managers on an effective and timely basis; and
       ``(3) aligning the overall energy research, development, 
     and demonstration budget so as to achieve the comprehensive 
     plan and avoid unnecessary duplication of programs across 
     Federal agencies.''.
                                 ______
                                 
      By Mr. KERRY:
  S. 1809. A bill To amend the Public Health Service Act to revise and 
extend the program for viral hepatitis surveillance, education, and 
testing in order to prevent deaths from liver cancer, and for other 
purposes; to the Committee on Health, Education, Labor, and Pensions.
  Mr. KERRY. Mr. President, there is a silent epidemic in our country 
that today threatens the lives of more than 5 million Americans. Of 
those people afflicted with this disease, 150,000 will not survive this 
decade. In 2008 alone, an estimated 56,000 Americans were newly 
infected while as many as 75 percent of all infected people did not 
even know that they carried this disease. Without further preventative 
action, this growing health threat will only cost more lives and 
hundreds of billions in additional health care expenses. This ticking 
time bomb is viral hepatitis.
  That is bad news. But there is also cause for hope.
  Treatment already exists that can eradicate hepatitis C in close to 
75 percent of people with the disease. Another treatment reduces the 
level of hepatitis B in over 80 percent of those treated. There has 
been a vaccine against hepatitis B for decades that has left millions 
immune to that strain of virus. We understand how viral hepatitis is 
spread, how it can be prevented, and how to test people for infection. 
There have just been a string of significant medical advances that will 
improve the effectiveness of viral hepatitis screening and treatment.
  It is clear that we already have the tools at our disposal to 
prevent, treat, and control the vast majority of these infections, now 
what we need is a coordinated strategy to put these tools to work.
  That is why I am introducing the Viral Hepatitis Testing Act of 2011, 
which appropriates $110 million over five years to improve education, 
testing, and care for viral hepatitis across Massachusetts and in local 
communities around the country. This legislation is a down-payment on a 
national effort to fight and ultimately eradicate hepatitis B and C in 
America. I hope my colleagues on both sides of the aisle will join me 
in cosponsoring this effort.
  Viral hepatitis is known as a silent killer because it can stay a-
symptomatic for years before it leads to serious liver disease. It is 
the most common cause of liver cancer and yet doctors and patients 
alike are often largely uninformed about this disease. Hepatitis B is 
100 times more infectious than HIV and has spread to an estimated 2 
billion people worldwide while hepatitis C has reached about 170 
million people. Chronic viral hepatitis is widespread and it is 
dangerous.
  Last year, the Institute of Medicine released a report outlining a 
number of specific recommendations on how to combat viral hepatitis. To 
build on those recommendations, Assistant Secretary of Health Dr. 
Howard Koh convened a task force and developed a detailed, 
comprehensive action plan to combat the pervasive spread of this 
disease. These recommendations served as the foundation for the 
legislation I am proposing today.
  As of today, there is no coordinated national strategy in place to 
fight viral hepatitis. The action plan put forward by Dr. Koh and his 
team seeks to rectify that problem by incorporating standardized viral 
hepatitis prevention and treatment programs into the health care 
infrastructure that already exists. The bill I introduced today would 
quickly implement a number of these programs and provides the 
Department of Health and Human Services with the resources to act.
  The first step in prevention is determining who is infected with the 
virus so they can receive the appropriate care and will be less likely 
to pass on this disease to others. In order to determine the prevalence 
of the problem and to increase the number of people who are aware of 
their infection, The Viral Hepatitis Testing Act calls for HHS to work 
with the Center for Disease Control and Prevention, the Agency for 
Healthcare Research and Quality, and the Preventive Services Task Force 
to develop and implement effective surveillance and testing protocols. 
Whereas 75 percent of people carrying viral hepatitis today do not even 
know they are infected, improved testing could flip that disturbing 
statistic on its head in just 5 years.
  It is also a sad reality that a number of minority populations are at 
greatly increased risk for contracting viral hepatitis. Asian-Americans 
and Pacific Islanders account for over half of chronic hepatitis B 
cases. African Americans, Latinos, and American Indians and Native 
Alaskans also have disproportionately high rates of these viruses. 
Additionally, without the proper preventative care, there is a high 
likelihood that pregnant women who carry the virus will pass it on to 
their unborn children.
  For those reasons, the legislation I introduced today also focuses on 
screening and treating high-risk populations and pregnant mothers for 
viral hepatitis. Educational programs targeting high-risk groups will 
empower people to protect themselves from contracting hepatitis, and 
ensuring that people who have viral hepatitis receive the appropriate 
follow-up care will further help to prevent the spread of this 
epidemic.
  Additionally, providing doctors with the proper training on the 
causes, symptoms, and treatments would also go a long way toward 
stemming the tide of transmission and improving outcomes for patients 
who have contracted the disease. This legislation makes supplemental 
viral hepatitis training for health care professionals a priority.
  To do the things we need to do in order to save lives and control 
this deadly epidemic, we are going to have

[[Page 16639]]

to make a relativelodest investment. The Viral Hepatitis Testing Act 
appropriates $110 million over 5 years that will go toward implementing 
the educational, screening, and treatment measures required under this 
act. Rather than creating a whole new hepatitis prevention apparatus, 
this funding will be used to integrate these new and improved 
procedures into the existing health care infrastructure through grants 
to public and nonprofit private entities, including States, Indian 
tribes, and public:private partnerships.
  The human benefits of this legislation are undeniable--these 
provisions will reduce transmission, improve the quality of life for 
people with viral hepatitis, and prevent the deaths of countless 
mothers and fathers and children. It is also undeniable that this is a 
wise investment of resources and good policy. These investments are a 
classic case of using limited resources to maximum impact, as we invest 
a modest amount of money today in order to save lives, pain, and tens 
of billions of dollars tomorrow.
  Today, hepatitis B costs patients around $2.5 billion per year. With 
baby boomers aging into Medicare and accounting for an estimated two 
out of every three cases of chronic hepatitis C, medical costs for 
treating this disease are expected to skyrocket from $30 billion to 
more than $85 billion in 2024. Late diagnosis is a significant driver 
of costs, as more expensive procedures and treatments are required the 
further the infection has progressed. To put this in even starker 
terms, the cost of the hepatitis B vaccine ranges from $75 to $165, 
while treatment can cost up to $16 thousand per year for a single 
person, or up to $110 thousand per hospital visit, should the disease 
develop into liver cancer.
  Viral hepatitis is an increasingly significant issue for 
Massachusetts. The Department of Public Health reports over 2,000 cases 
of newly diagnosed chronic Hepatitis B infection and 8,000 to 10,000 
cases of newly diagnosed chronic Hepatitis C infection each year. Viral 
hepatitis is the highest volume of reportable infectious diseases in 
the state. Additionally, there continues to be a striking increase in 
cases of hepatitis C infection among adolescents and young adults in 
the State, which suggests that there is a new epidemic of the disease 
taking hold.
  Until recently, the Massachusetts State Legislature provided $1.4 
million for surveillance to detect outbreaks and behaviors of concern 
as well as for targeted screening and treatment of high-risk 
populations. Today, however, as this public health threat spreads, all 
of that funding has been eliminated due to budget cuts. Massachusetts 
receives just $104,305 from the CDC for an Adult Viral Hepatitis 
Prevention Coordinator. This is a valuable position but it is not 
nearly enough to support core public health services. The Viral 
Hepatitis Testing Act will allow Massachusetts to invest in a 
sustainable infrastructure that would improve health care for our 
citizens.
  The choice is ours: we can either invest in preventative programs and 
more robust screening now or we can just let this epidemic continue to 
proliferate around the country and foot the bill later for the 
expensive surgical procedures, medicines, and hospital bills that will 
only continue to grow.
  Without action, thousands more Americans will die year from preventa 
seases. We know what we need to do; now it is up to us to do it. Let us 
not make excuses. Let us lower health care costs for American families, 
improve the quality o our care, and save lives. I again urge my 
colleagues to join me in cosponsoring this important legislation.

                          ____________________