[Congressional Record (Bound Edition), Volume 157 (2011), Part 13]
[Senate]
[Pages 18097-18100]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. REED (for himself and Mr. Grassley):
  S. 1907. A bill to promote transparency by permitting the Public 
Company Accounting Oversight Board to allow its disciplinary 
proceedings to be open to the public, and for other purposes; to the 
Committee on Banking, Housing, and Urban Affairs.
  Mr. REED. Mr. President, today I am introducing the PCAOB Enforcement 
Transparency Act of 2011 along with Senator Grassley.
  One of the largest securities frauds in history began unraveling in 
August 2001 when an Enron vice president expressed her concern that the 
company might ``implode under a series of accounting scandals.'' Enron 
disclosed a few months later that its historical financial statements 
were not accurate. A subsequent restatement revealed over that $500 
million in losses had gone unreported. Several other large corporate 
frauds followed shortly thereafter. For instance, in June 2002, 
WorldCom admitted that it had misrepresented its profitability to 
investors.
  The Senate Committee on Banking, Housing, and Urban Affairs conducted 
a series of hearings on the issues that were raised by the revelations 
of Enron and other public companies. The hearings produced a remarkable 
consensus on a number of underlying causes, including weak corporate 
governance, a lack of accountability, and inadequate oversight of 
accountants charged with auditing a public company's financial 
statements.
  In order to address the gaps and structural weaknesses revealed by 
the investigation and hearings, Congress passed the Sarbanes-Oxley Act 
of 2002. The Senate passed this legislation on a 99 to 0 vote.
  The Sarbanes-Oxley Act ensured that corporate officers were directly 
accountable for their financial reporting and for the quality of their 
financial statements. The new law also created a strong, independent 
board to oversee the conduct of the auditors of public companies, the 
Public Company Accounting Oversight Board, PCAOB or Board.
  The board is responsible for overseeing auditors of public companies 
in order to protect investors and further the preparation of 
informative, accurate, and independent audit reports on the financial 
statements of public companies. The board operates under the oversight 
of the U.S. Securities and Exchange Commission, SEC.
  The PCAOB is responsible for setting auditing standards for auditors 
of public companies, for examining the quality of audits performed by 
public company auditors, and where necessary, for imposing disciplinary 
sanctions on registered auditors and auditing firms. The PCAOB oversees 
more than 2,400 registered auditing firms, as well as the thousands of 
audit partners and staff who contribute to a firm's work on each audit.
  The board's ability to commence proceedings to determine whether 
there have been violations of its auditing standards or rules of 
professional practice is an important component of its oversight. In 
order to determine whether to institute a proceeding, the board's 
enforcement staff conducts a nonpublic investigation and makes a 
recommendation to the five-member board.
  However, unlike other oversight bodies, such as the SEC, the U.S. 
Department of Labor, the Federal Deposit Insurance Corporation, FDIC, 
the U.S. Commodity Futures Trading Commission, CFTC, the Financial 
Industry Regulatory Authority, FINRA, and others, the Board's 
disciplinary proceedings are not allowed to be public.
  Unfortunately, over the last several years, bad actors have been 
taking advantage of this lack of transparency. In April 2011, the 
Subcommittee on Securities, Insurance, and Investment, which I chair, 
considered the issue of enhancing the PCAOB's effectiveness by 
permitting the Board to disclose information about its enforcement 
proceedings. PCAOB Chairman James Doty noted that the ``secrecy has a 
variety of unfortunate consequences'' and this ``state of affairs is 
not good for investors, for the auditing profession, or for the public 
at large.''
  In one example, an accounting firm that was subject to a disciplinary 
proceeding continued to issue no fewer than 29 additional audit reports 
on public companies without any of those companies knowing about the 
PCAOB proceedings. Those public companies and their investors were 
completely in the dark about the board's decision to both institute 
disciplinary proceedings and about the progress of those proceedings. 
The auditor knew about the proceedings, but the investors and public 
companies were denied information that was arguably very relevant to 
the audit relationship.
  There are additional reasons that the proceedings should be open and 
transparent. First, the closed proceedings run counter to the public 
proceedings of other oversight bodies, as I have already noted. Indeed, 
nearly all administrative proceedings brought by the SEC against public 
companies, brokers, dealers, investment advisers, and others are open, 
public proceedings.
  The PCAOB's secret proceedings are not only shielded from the public, 
but from Congress as well. The public and Congress have a role in 
ensuring that not just auditors are held to account, but also that the 
PCAOB is held to account as well for its oversight of the auditors and 
audit firms.
  Second, the incentive to litigate cases in order to continue to 
shield conduct from the public as long as possible frustrates the 
process and requires the expenditure of needless resources by both 
litigants and the PCAOB. In April, Chairman Doty, who testified before 
the Subcommittee on Securities, Insurance, and Investment, noted that 
``the fact that PCAOB disciplinary proceedings are required to be 
secret creates a considerable incentive to litigate.''
  Third, a recent academic study noted that the public nature of SEC's 
proceedings against companies result in good results. ``Observing a 
public SEC enforcement action in its industry against a target firm is 
likely to increase a peer firm's knowledge about SEC activity and cause 
it to revise upward its subjective probability of attracting such an 
action against itself.'' In effect, the study noted that this may serve 
as a deterrent to misconduct because of a perceived increase in 
``getting caught.'' Accordingly, the audit industry would also benefit 
from timely, public, and non-secret enforcement proceedings.
  Our bill will make hearings by the PCAOB, and all related notices, 
orders, and motions, open and available to the public unless otherwise 
ordered by the board. The board procedure would then be similar to the 
SEC's Rules of Practice for similar matters, where hearings and related 
notices, orders, and motions are open and available to the public.
  We need to ensure public proceedings to better protect and serve 
companies and investors. I hope our colleagues will join Senator 
Grassley and me in taking the legislative steps necessary to enhance 
transparency in the PCAOB's enforcement process.
  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. 1907

       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 ``PCAOB Enforcement 
     Transparency Act of 2011''.

     SEC. 2. OPEN MEETINGS AUTHORIZED.

       Section 105(c)(2) of the Sarbanes-Oxley Act of 2002 (15 
     U.S.C. 7215(c)(2)) is amended to read as follows:
       ``(2) Public hearings.--Hearings under this section shall 
     be open to the public, unless the Board, on its own motion or 
     after considering the motion of a party, orders otherwise.''.

     SEC. 3. PUBLICATION OF DETERMINATIONS.

       Section 105(d)(1)(C) of the Sarbanes-Oxley Act of 2002 (15 
     U.S.C. 7215(d)(1)(C)) is amended by striking ``(once any stay 
     on the imposition of such sanction has been lifted)''.
                                 ______
                                 
      By Mr. ENZI:
  S. 1909. A bill to amend title 31, United States Code, to provide for 
the issuance of Buy Back America Bonds; to the Committee on Finance.

[[Page 18098]]


  Mr. ENZI. I rise today to introduce my Buy Back America Bonds bill, 
S. 1909. This bill will not only help raise awareness of our Nation's 
debt crisis, but it will also give every American the chance to be a 
part of the solution to fix our country's fiscal dilemma. My bill will 
allow Americans to invest in this incredible country and bring foreign-
held U.S. debt back to American hands while at the same time reducing 
Federal Government spending. But before I talk about where my bill is 
going, I want to explain where I am coming from.
  In World War II, war bonds were sold to help pay for our Nation's 
national defense and reduce the amount of debt incurred. People from 
all kinds of backgrounds saved toward purchasing war bonds, often with 
nickels, dimes, and quarters. On the job, people deducted the cost of 
war bonds from their meager paychecks. Families invested in war bonds 
and saved for the future. During World War II, President Roosevelt even 
asked the Boy Scouts of America to sell war bonds, and they did. Boy 
Scouts and Girl Scouts worked with their packs and troops to sell bonds 
to their neighbors and communities. In other words, all across the 
country, folks of all walks and types were working together for one 
collective goal--to do their part for the country's war effort. Men, 
women, and children were selling and purchasing these war bonds, all in 
the name of lending a hand to our fellow countrymen and to pay for the 
costs of war.
  I was born during World War II. When I was born, my parents bought me 
a war bond. I still have that $20 bond today. Not cashing it was my 
first gift to my country, and it is also a keepsake to me.
  In 1941, when savings bonds were retitled as ``war bonds'' in the 
terrible and devastating aftermath of Pearl Harbor, the United States 
rallied as a collective nation in support of the war and war bond 
effort. At the time, though, the average American only earned about 
$2,000 a year. Despite these hardships and tough times, 134 million 
Americans were called on to be part of the war bond effort, and more 
than half of the U.S. population--85 million people--responded to the 
patriotic call to participate.
  The Scouts raised money and personally donated their own funds 10 
cents at a time in the form of stamps that could be pasted into a war 
bond booklet. When war bond books were complete, they could be taken to 
the local bank, and sometimes even the local post office, to purchase 
bonds. One innovative group even created a promotional cardboard with 
slots for 75 quarters that had to be filled before it could be redeemed 
for a bond.
  Showing his leadership and dedication to the effort, President 
Franklin Delano Roosevelt purchased the very first war bond issued. In 
part of President Roosevelt's April 30, 1941, radio address to the 
American people, he said:

       One thought is uppermost in my mind as I make grateful 
     acknowledgment of this dual honor. It is that in reserving 
     the first Defense Savings Bond and the first Defense Postal 
     Savings Stamps in the name of the President, the Secretary of 
     the Treasury and the Postmaster General have given emphasis 
     to the national character of this defense savings campaign. 
     This character of the campaign is national in the best sense 
     of the word, for it is going to reach down, we hope, to the 
     individual and the family in every community and on every 
     farm, in every State and every possession of the United 
     States.

  The President goes on to say:

       It is national and it is homey at the same time. For 
     example, I am buying not one stamp but ten stamps each to go 
     into a little book for each of my ten grandchildren. And the 
     first savings bond is being made out in the name of Mrs. 
     Roosevelt as beneficiary.
       It is fitting that the President in his purchases should be 
     a sort of a symbol of the determination of all the people to 
     save and sacrifice in defense of democracy. In a larger 
     sense, this first defense bond and these first defense stamps 
     sold to the President constitute tangible evidence of a 
     partnership--a partnership between all of the people and 
     their Government--entered into to safeguard and perpetuate 
     all of those precious freedoms which Government guarantees. 
     In this time of national peril, what we all must realize is 
     that the United States Government is you and I and all other 
     families next door all the way across the country and back 
     again. It is one great partnership.

  That ends the quote from President Roosevelt.
  The President concluded his address by asking his fellow Americans to 
demonstrate their faith in America by investing in the new defense 
bonds and stamps.
  I remember as a child bringing dimes to school so that I could 
purchase a stamp for my savings bond book--one stamp at a time, saving 
toward the price of a full savings bond. I remember vividly that the 
bond was a lofty $18.75. When I got my book filled, we could go down to 
the bank so that I could finally trade for my bond--that piece of paper 
showing that I had done my small part to help in the effort and make 
this country better. Kids of my generation learned the value of saving 
and helping their country through the savings bond program.
  Today, I rise to speak about a different sort of fight, and yet, at 
the same time, this fight is one that is no less serious than the one I 
remember as a child. Today, our Nation is struggling to fight a growing 
spending problem and a debt crisis. Debt is our problem now.
  It is time to get all of America involved, not with a promise of 
wealth but with a sense of investing in our country, of buying America 
back, pulling us back from the brink of bankruptcy to other countries. 
The national debt stands at $15 trillion, which breaks down to nearly 
$48,000 for every person in our entire country. These figures are a 
frightening reminder that we cannot continue to put off the tough 
choices and that we must restore the fiscal discipline to the Federal 
Government.
  This is a tough fight that has to be tackled on all fronts. Today I 
am proposing a step in the right direction and calling upon Americans 
for support of this effort. I am proposing that we bring American debt 
back to American hands. I am introducing the Buy Back America Bonds, S. 
1909. My bill would buy back American bonds to American citizens in 
affordable $25 increments so every American can afford to invest and do 
their part. The Treasury would then use the funds from these bonds to 
begin paying down the $4.4 trillion in foreign-held U.S. debt. 
Investing in Buy Back America Bonds would allow Americans to show their 
patriotism and faith in this great Nation.
  Unlike the war bonds of my childhood, Buy Back America Bonds would 
create a new series of savings bonds which are indexed for inflation as 
well as earning a fixed interest rate. By tying Buy Back America Bonds 
to inflation, we ensure the buying power of consumers' investments 
remains the same while also earning them additional interest. These 
could be called Gold Standard Bonds.
  Those are two ways the Buy Back America Bonds would earn and keep 
their value for investors in addition to their patriotic and symbolic 
investment. These are not going to be barn-burner investments, but they 
will help our Nation not only pay down our debt but pay down the amount 
of debt owed to foreign nations.
  What makes this bill particularly special is that for every bond 
purchased, citizens are also helping the Federal Government to reduce 
spending. Every year after the first year the amount of Buy Back 
America Bonds sold would be tallied and that exact amount would then be 
cut from Federal spending the following year.
  I stand before you to explain not only where I am coming from with my 
Buy Back America Bonds but also why our Nation needs a collective 
effort to rally around to make steps toward a more responsible Federal 
budget and getting our national debt under control. Investing in 
America and bringing foreign-held debt back to American hands is where 
I propose to start. I ask my colleagues and the American people to help 
me be an integral part of the debt crisis solution.
  Not only am I a father, I am a grandfather, and I want to be the 
first to purchase Buy Back America Bonds for my four grandchildren. I 
want my grandchildren and yours to have every opportunity for a great 
quality of life, to know the meaning of faith and investment in a 
prosperous United

[[Page 18099]]

States. I am doing everything I can to ensure that happens. That means 
proposing solutions to problems and working to get my colleagues on 
board.
  So I rise and ask for the support of my colleagues for this great 
effort and support for S. 1909, my Buy Back America Bonds bill. What 
President Roosevelt said then is equally true now:

       In this time of national peril we must realize the U.S. 
     Government is you and I, and all other families next door all 
     the way across the country and back again. It is one great 
     partnership.

  Working together we can solve all of this. We need to solve all of 
this. We need to start solving it right now and this is one way to do 
it.
  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. 1909

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

     SECTION 1. BUY BACK AMERICA BONDS.

       (a) In General.--Subchapter I of chapter 31 of subtitle III 
     of title 31, United States Code, is amended by inserting 
     after section 3105 the following new section:

     ``Sec. 3105a. Buy Back America Bonds

       ``(a) The Secretary shall establish and administer a new 
     series of United States savings bonds, to be known as`Buy 
     Back America Bonds'. Proceeds from the bonds shall be used 
     first solely to reduce the amount of foreign-held public 
     debt, and then to reduce other public debt.
       ``(b) A Buy Back America Bond shall be subject to such 
     terms and conditions of issue, conversion, redemption, and 
     maturation as the Secretary may prescribe, except that a Buy 
     Back America Bond shall not mature, and may not be redeemed 
     by the holder, earlier than 10 years from the date of issue 
     and shall mature not more than 20 years from the date of 
     issue. Interest on a Buy Back America Bond whenever paid 
     shall not be includible in gross income under the Internal 
     Revenue Code of 1986.
       ``(c) Buy Back America Bonds shall be issued at face value 
     and in denominations of not less than $25.
       ``(d) The redemption value of a Buy Back America Bond shall 
     be determined as the Secretary shall provide--
       ``(1) at a fixed interest rate equal to the rate applicable 
     to a Series I savings bond for the rate period during which 
     the Buy Back America Bond is purchased, and
       ``(2) for purposes of calculating yearly interest, by 
     increasing the purchase price of such Buy Back America Bond 
     in each calendar year after the year of purchase by an amount 
     equal to--
       ``(A) such purchase price, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) of the Internal Revenue Code of 1986 for such 
     calendar year, determined by substituting the calendar year 
     in which such bond was purchased for `1992' in subparagraph 
     (B) thereof.
       ``(e) If during any fiscal year during which any Buy Back 
     America Bond is outstanding--
       ``(1) the Federal budget deficit for such fiscal year is 
     less than the amount equal to 3 percent of gross domestic 
     product (as most recently computed and published by the 
     Department of Commerce); and
       ``(2) the public debt is less than the amount equal to 10 
     percent of gross domestic product (as so computed and 
     published);

     then any such bond may be redeemed without regard to 
     subsection (b).
       ``(f) A Buy Back America Bond may only be held by--
       ``(1) a citizen or resident of the United States;
       ``(2) a domestic partnership, or domestic corporation, not 
     more than 1 percent of the ownership interest of which is 
     held (directly or indirectly) by a person who is not a United 
     State person (as defined in section 7701(a)(30) of the 
     Internal Revenue Code of 1986); or
       ``(3) an estate or trust which is a United States person 
     (as so defined), unless there is a beneficiary of the trust 
     who is not a United States person (as so defined),

     and may be purchased only by an individual who provides a 
     valid social security account number (not including a 
     taxpayer identification number provided by the Internal 
     Revenue Service).
       ``(g) A Buy Back America Bond may be transferred as 
     provided by the Secretary, but only to an individual who has 
     a valid social security account number (not including a 
     taxpayer identification number provided by the Internal 
     Revenue Service).''.
       (b) Clerical Amendment.--The table of sections subchapter I 
     of chapter 31 of subtitle III of title 31, United States 
     Code, is amended by inserting after section 3105 the 
     following new item:

``3105. Buy Back America Bonds.''.

     SEC. 2. DEFICIT REDUCTION.

       (a) Calculation.--The Office of Management and Budget shall 
     calculate the net deficit reduction resulting from the 
     implementation of this Act and the sale of Buy Back America 
     Bonds for the period beginning on the date of the sale of the 
     first such Buy Back America Bond and ending on the date that 
     is 1 year after such date.
       (b) Adjustment of the Discretionary Caps.--Effective on the 
     effective date of this Act, the limit for the appropriate 
     discretionary budget category set forth in section 251(c) and 
     251A of the Balanced Budget and Emergency Deficit Control Act 
     of 1985 for the first fiscal year beginning after the date 
     that is 1 year after the date of the sale of the first Buy 
     Back America Bond shall be reduced by the amount of the net 
     deficit reduction calculated pursuant to subsection (a).
                                 ______
                                 
      By Ms. COLLINS:
  S. 1911. A bill to amend the Internal Revenue Code of 1986 to provide 
recruitment and retention incentives for volunteer emergency service 
workers; to the Committee on Finance.
  Ms. COLLINS. Mr. President, I rise today to introduce the Volunteer 
Emergency Services Recruitment and Retention Act of 2011. This bill 
fixes a long-standing problem with the tax code that harms the ability 
of volunteer fire departments to recruit and retain both firefighter 
and emergency service personnel.
  For years, local and state governments have provided their volunteer 
firefighters and EMS personnel with different forms of benefits 
including Length of Service Award Plans, commonly known as LOSAPs. 
These are pension-like benefits for volunteer emergency responders.
  Unfortunately, the way the tax code handles LOSAPs hinders 
departments' abilities to administer the plans and makes it more 
difficult for volunteer emergency personnel to receive the benefits.
  My bill would simplify the taxation of LOSAPs in two steps. First, it 
would allow LOSAPs to be elected as deferred compensation plans, and 
second, it would exempt them from the Employee Retirement Income 
Security Act of 1974. This bill makes these necessary changes, which 
will improve access to LOSAP benefits for volunteer emergency 
responders, without increasing federal spending.
  Today, an estimated 180,000 volunteer firefighters across 27 states 
participate in some form of LOSAP. Many states that do not offer these 
benefits would be more likely to do so if the federal tax code were 
simplified. This, in turn, would help volunteer fire departments to 
more easily recruit and retain personnel. These men and women our local 
first responders--are the foundation of our emergency response 
capabilities.
  These volunteers put their lives on the line to help protect our 
communities, and their spirit of selflessness and service should be 
rewarded. I am proud to introduce this legislation with Senators 
Schumer and Blumenthal, and I look forward to working with my 
colleagues to pass this bill through the Senate and into law.
  Mr. President, I would ask for unanimous consent that a letter of 
support be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                               Maine Fire Chiefs' Association,

                                  Augusta Maine, November 8, 2011.
     Re ``Volunteer Emergency Services Recruitment and Retention 
         Act of 2011.''

     Hon. Susan M. Collins,
     Dirksen Senate Office Building,
     Washington, DC.
       Dear Senator Collins The Maine Fire Chiefs' Association is 
     a 425 member organization that represents fire and EMS 
     services in every county in the State of Maine. The Maine 
     Fire Chiefs' Association is charged with regularly advising 
     the Legislature and the Governor and providing 
     recommendations regarding necessary changes to Maine's fire 
     service system. The Maine Fire Chiefs' Association represents 
     numerous fire and emergency service interests in Maine. 
     Members of the Maine Fire Chiefs' Association represent 
     fulltime, call and volunteer firefighters.
       The recruitment and retention of experienced emergency 
     responders is a priority of the Maine Fire Chiefs' 
     Association and Maine's fire service. The majority of Maine's 
     fire departments rely on call and/or volunteer firefighters 
     and the recruitment and retention of these crucial volunteers 
     is the number one issue facing the volunteer fire service 
     today. Length of Service Award Programs (LOSAPs)--pension-
     like programs for volunteer emergency responders--are 
     effective recruitment and retention tools and are

[[Page 18100]]

     quite popular among the volunteer fire service.
       In 2009, the Maine Fire Chiefs' Association proposed the 
     following legislation--L.D. 1499 ``An Act To Establish the 
     Maine Fire Protection Services Commission Length of Service 
     Award Program''--offering a LOSAP to emergency responders in 
     Maine. Although there was support for the bill's concept 
     during the public hearing process, members of the Criminal 
     Justice and Public Safety Committee cited the potential 
     problems associated with the present federal tax laws--
     specifically that the Internal Revenue Code, Section 457, 
     does not include LOSAPs--and L.D. 1499 ultimately was not 
     passed. Federal legislation--H.R. 1792--was proposed in the 
     111th Congress but was not passed before adjournment. H.R. 
     376 ``Volunteer Emergency Services Recruitment and Retention 
     Act of 2011'' was submitted earlier this year in the House of 
     Representatives and sponsorship of similar legislation in the 
     Senate is anticipated.
       The Maine Fire Chiefs' Association respectfully requests 
     your sponsorship of this important legislation for emergency 
     responders. Length of service award programs are important 
     recruitment and retention tools for communities who primarily 
     rely on volunteers. By clarifying the tax treatment of 
     LOSAPs, local communities will find it easier to establish 
     and administer these programs. H.R. 376 would not create new 
     LOSAPS, place additional requirements on existing LOSAPs or 
     require communities to provide LOSAPs to their volunteer 
     emergency responders. LOSAPs would create incentives for 
     firefighters to remain in the fire service and encourage new 
     members to join the fire service. The Maine Fire Chiefs' 
     Association joins the Fire Commission, the Maine State 
     Federation of Firefighters, and many Maine fire departments 
     in thanking you for similar senate sponsorship.
       The Maine Fire Chiefs' Association thanks you for your 
     strong support of the fire service and consideration of this 
     important issue. We welcome the opportunity to discuss this 
     proposal and other fire service issues at your convenience,
           Respectfully,

                                        Chief Stephen Nichols,

                                                        President,
                                   Maine Fire Chiefs' Association.
                                 ______
                                 
      By Ms. SNOWE (for herself, Mr. Bingaman, and Mrs. Feinstein):
  S. 1914. A bill to amend the Internal ``Revenue Code of 1986 to 
provide a credit for performance based home energy improvements, and 
for other purposes; to the Committee on Finance.
  Ms. SNOWE. Mr. President, I rise to speak about bipartisan 
legislation I am introducing today, the Cut Energy Bills at Home Act, 
which would provide a 30 percent tax credit for Americans to cut their 
energy bills, and catalyze our construction industry, reduce pollution, 
and seize the opportunity in residential energy efficiency to secure 
America's energy future. With heating oil prices at $3.94 nationally 
for home heating oil, a record for this time of year, this legislation 
is a timely method to address what may be the most expensive heating 
season in history.
  I am pleased to have developed this bill with Senators Bingaman and 
Feinstein, two longtime leaders on energy efficiency, and look forward 
to discussing this bill with my colleagues on the Senate Finance 
Committee. The Cut Energy Bills at Home Act recognizes the sea-change 
that has occurred in the energy efficiency industry and tries to ensure 
that middle-class Americans can harness these technological strides in 
their own lives.
  Specifically, not only have windows, insulation, and boilers become 
more advanced to reduce energy consumption, but our contractors who 
perform this work have developed sophisticated practices to 
holistically improve a home's energy consumption.
  In the past, homeowners would simply place insulation in the attic to 
contain heat, now companies are using infared thermography to identify 
temperature differences in a house, a blower door test to measure 
airflow leaks, to replace windows, doors, and insulation that will 
maximize the cost-effectiveness of home energy efficiency improvements.
  Today, we are on the cusp of a milestone turn in the energy 
efficiency industry--one with benefits for homeowners unimaginable even 
just five years ago. To spur early adoption of these advances and to 
ensure that cost is not prohibitive, our bill provides a 30 percent tax 
credit up to $5,000 to assist homeowners who make an investment that 
will reduce energy costs for not only this winter, but for future years 
to come.
  For example, under this bill if a homeowner invests in energy 
efficiency that will reduce heating oil consumption from 1,000 gallons 
of home heating oil to 800 gallons, a 20 percent improvement, the 
individual may claim 30 percent of the cost of the improvements as a 
tax credit up to $2,000.
  In 2009, New England consumed 3.4 billion gallons of home heating 
oil, which is approximately $13 billion that households spent simply to 
keep warm. A 20 percent reduction in this figure would yield a savings 
of $2.6 billion for households in New England. Energy efficiency can 
provide a critical tool to reduce this amount and allow households to 
invest in food, medicine, and the American economy. I urge my 
colleagues to support me in passing this legislation into law.

                          ____________________