[Congressional Record (Bound Edition), Volume 157 (2011), Part 7]
[Senate]
[Pages 8985-8991]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. JOHNSON of South Dakota (for himself, Mr. Shelby, Mr. 
        Kerry, Mr. McCain, Mr. Levin, Mr. Lieberman, and Mr. Reed):
  S. 1180. A bill to authorize the President to confiscate and vest 
certain property of the Government of Libya and to authorize the use of 
that property to provide humanitarian relief to and for the benefit of 
the people of Libya, and for other purposes; to the Committee on 
Banking, Housing, and Urban Affairs.
  Mr. JOHNSON of South Dakota. Mr. President, today I join Senator 
Shelby and other senior Senators to introduce the Libyan Assets for 
Humanitarian Relief Act of 2011, designed to explicitly authorize the 
President to confiscate and distribute some of the assets of Muammar 
Qaddafi's government to be used to provide urgent humanitarian relief 
for the people of Libya. This issue lies within the jurisdiction of the 
Committee on Banking, Housing and Urban Affairs because it involves 
frozen assets being held by U.S. banks and other financial 
institutions. We are joined by Chairman Kerry of the Senate Foreign 
Relations Committee, Armed Services Committee Chairman Levin and 
Ranking Minority Member John McCain, and Homeland Security and 
Government Affairs Committee Chairman Lieberman as original cosponsors 
of this measure.
  A few weeks ago the President's senior advisors from the Treasury 
Department, the State Department, and the White House came to Congress 
and provided draft legislation to explicitly authorize the President to 
seize and vest the Qaddafi government's assets to be used to benefit 
the Libyan people. This measure is an updated version of that 
legislation, imposing certain conditions on that authority, and 
providing for certain reporting, tracking and auditing requirements on 
the use of the funds.
  Currently, there are approximately $36 billion in Libyan Government 
assets in banks and other financial institutions subject to the 
jurisdiction of the United States, both here and abroad. According to 
the Treasury Department, a little over $8.1 billion is physically 
present in the U.S.--and of that, a little over $200 million is in cash 
and available for immediate seizure and use to support humanitarian 
efforts in Libya. This measure would allow for confiscation of up to $8 
billion of the Qaddafi government's assets--plus an additional $2 
billion if necessary to avert an imminent humanitarian emergency.
  The bill provides for the confiscation and distribution of the funds 
in two batches--the first $4 billion could be seized, vested and 
distributed upon the bill's enactment, and a second $4 billion could be 
confiscated and released

[[Page 8986]]

after a 30-day notification period designed to give Congress an 
opportunity to deny the seizure of the funds via enactment of a joint 
resolution of disapproval. The additional $2 billion could be released 
upon certification of a humanitarian emergency.
  Notwithstanding how my colleagues feel about the current military 
situation, or U.S. involvement in Libya--and I know there is a wide 
range of opinions in Congress on that issue, which we'll likely debate 
on the Senate floor soon--one thing is clear: in the wake of continuing 
violence perpetrated by the Libyan regime against its own people, there 
is a real, urgent and growing need for humanitarian relief and 
assistance.
  The U.S. has already provided tens of millions of dollars of its own 
funds in relief aid for Libya's citizens, and last week pledged 
additional aid. This bill would simply authorize the confiscation of 
certain assets of the Government of Libya, already frozen by the U.S. 
government under existing legal authorities, to be used to provide 
additional humanitarian relief to meet urgent needs there. It would 
effectively give the true owners of these assets--the Libyan people--
access to some of their own money to provide relief for Libya's 
citizens.
  The bill authorizes the President to seize and distribute these 
assets. I understand the Administration intends the funds to be 
overseen by the State Department, and to go mainly through non-
governmental humanitarian relief and development organizations 
currently active in Libya; this measure ultimately allows the President 
to decide who the recipients are, with some limitations. It also 
requires that the funds be used only for purposes related to 
humanitarian relief, consistent with UN Security Council resolutions on 
this matter, and imposes a set of accounting, recordkeeping and 
Congressional reporting requirements on the funds.
  It requires that the funds not go to anyone or any organization whose 
assets are blocked under U.S. law, or those identified as terrorists or 
affiliated with terrorist organizations, or those complicit in human 
rights abuses. It also provides the President with powerful 
investigative and penalty authorities, to ensure appropriate 
distribution of the funding and to combat any potential fraud in the 
distribution of aid. The Administration has made clear that such assets 
would be disbursed only through partners that meet U.S. legal and 
policy standards that the United States generally applies to the 
provision of assistance, including those relating to human rights and 
transparent oversight of the disbursements. While these are not U.S. 
taxpayer funds, I believe we still have a fiduciary responsibility for 
its efficient and effective distribution, and that's why we have 
imposed these important accountability measures.
  Such seizure of another government's assets is not unprecedented. In 
the past, the U.S. government has seized and frozen the assets of other 
governments with whom we were involved in a conflict, going all the way 
back to World War I. The latest example is when we seized and used a 
portion of Iraqi government assets in 2003 to provide urgent 
reconstruction assistance and other forms of support for the people of 
Iraq.
  I hope we can move quickly on this legislation to authorize the 
release of these funds and show that Congress and the Executive branch 
are working together on this issue and that despite our differences on 
U.S. military action there we can act promptly and decisively to 
provide needed humanitarian assistance to the people of Libya. I urge 
my colleagues to join us in this effort.
  Mr. President, I ask unanimous consent that the text of the bill and 
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:

                                S. 1180

       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 ``Libyan Assets for 
     Humanitarian Relief Act of 2011''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) On February 26, 2011, the United Nations Security 
     Council adopted Resolution 1970, which imposed an asset 
     freeze on Colonel Muammar Qaddafi and members of his family.
       (2) On March 17, 2011, the United Nations Security Council 
     adopted Resolution 1973, which expanded the asset freeze to 
     include the Central Bank of Libya, the Libyan Investment 
     Authority, the Libyan Foreign Bank, the Libyan Africa 
     Investment Portfolio, and the Libyan National Oil 
     Corporation.
       (3) The United Nations Security Council stated in 
     Resolution 1973 that the assets frozen would ``at a later 
     stage, as soon as possible, be made available to and for the 
     benefit of the people of the Libyan Arab Jamahiriya''.
       (4) On March 3, 2011, the President of the United States 
     stated that ``Muammar Qaddafi has lost the legitimacy to 
     lead, and he must leave''.
       (5) On March 29, 2011, the Transitional National Council of 
     the Libyan Republic issued ``A Vision of a Democratic 
     Libya'', which stated that its goal is ``building a free and 
     democratic society and ensuring the supremacy of 
     international humanitarian law and human rights 
     declarations'', and that ``[t]his can only be achieved 
     through dialogue, tolerance, co-operation, national 
     cohesiveness and the active participation of all citizens''. 
     In that statement, the Transitional National Council pledged 
     itself, without reservation, to the establishment of ``a 
     constitutional civil and free state'' that upholds 
     intellectual and political pluralism and the peaceful 
     transfer of power and guarantees full citizenship rights to 
     all Libyans.
       (6) On April 7, 2011, Ali Aujali, the Official 
     Representative to the United States of the Transitional 
     National Council of the Libyan Republic, wrote to the United 
     States Secretary of the Treasury and requested ``immediate 
     access to some of the frozen Qaddafi regime funds to purchase 
     needed humanitarian supplies and to support critical services 
     such as hospitals, water distribution and sanitation''.
       (7) On May 19, 2011, the President of the United States, 
     referring to the Transitional National Council of the Libyan 
     Republic, stated that ``the opposition has organized a 
     legitimate and credible interim council''.

     SEC. 3. AUTHORIZATION OF CONFISCATION OF PROPERTY OF THE 
                   GOVERNMENT OF LIBYA.

       (a) In General.--The International Emergency Economic 
     Powers Act (50 U.S.C. 1701 et seq.) is amended by adding at 
     the end the following:

     ``SEC. 209. AUTHORIZATION OF CONFISCATION OF PROPERTY OF THE 
                   GOVERNMENT OF LIBYA.

       ``(a) Definitions.--In this section:
       ``(1) Appropriate congressional committees.--The term 
     `appropriate congressional committees' means--
       ``(A) the Committee on Banking, Housing, and Urban Affairs 
     and the Committee on Foreign Relations of the Senate; and
       ``(B) the Committee on Financial Services and the Committee 
     on Foreign Affairs of the House of Representatives.
       ``(2) Executive agency.--The term `executive agency' has 
     the meaning given that term in section 133 of title 41, 
     United States Code.
       ``(3) Government of libya.--The term `Government of 
     Libya'--
       ``(A) means the Government of Libya on the date of the 
     enactment of the Libyan Assets for Humanitarian Relief Act of 
     2011, including any agency or instrumentality of that 
     Government, any entity controlled by that Government, and the 
     Central Bank of Libya; and
       ``(B) does not include a successor government of Libya.
       ``(4) Successor government of libya.--The term `successor 
     government of Libya' means a successor government to the 
     Government of Libya (as defined in paragraph (3)) that is 
     recognized as the legitimate governing authority of Libya by 
     the Government of the United States.
       ``(b) Statement of Policy.--It is the policy of the United 
     States to provide humanitarian relief to and for the benefit 
     of the people of Libya and to support the aspirations of the 
     people of Libya for democratic self-government.
       ``(c) Authorization of Confiscation of Property of the 
     Government of Libya.--
       ``(1) In general.--The President--
       ``(A) may confiscate and vest, through instructions or 
     licenses or in such other manner as the President determines 
     appropriate, funds and other property of the Government of 
     Libya that are subject to the jurisdiction of the United 
     States in the amounts specified in subsection (f);
       ``(B) may liquidate or sell any of such property; and
       ``(C) shall deposit any funds confiscated and vested under 
     subparagraph (A) and any funds resulting from the liquidation 
     or sale of property under subparagraph (B) in the account 
     established under subsection (d).
       ``(2) Vesting.--All right, title, and interest in funds and 
     other property confiscated under paragraph (1) shall vest in 
     the Government of the United States.
       ``(d) Establishment of Account for Confiscated Property.--

[[Page 8987]]

       ``(1) In general.--The President shall establish a non-
     interest-bearing account to consist of the funds deposited 
     into the account under subsection (c)(1)(C).
       ``(2) Use of funds.--The funds in the account established 
     under paragraph (1) shall be available to be used only as 
     specified in subsection (e)(1).
       ``(e) Use of Confiscated Property to Provide Humanitarian 
     Relief to the People of Libya.--
       ``(1) In general.--Subject to paragraph (2), the President 
     may transfer funds from the account established under 
     subsection (d)--
       ``(A) to such executive agencies and, subject to paragraph 
     (3), such other persons as the President determines 
     appropriate, to be used only for costs related to providing 
     humanitarian relief to and for the benefit of the people of 
     Libya, consistent with the purposes of United Nations 
     Security Council Resolutions 1970 (2011) and 1973 (2011); and
       ``(B) on and after the date on which a successor government 
     of Libya is recognized by the Government of the United 
     States, to the successor government of Libya.
       ``(2) Limitations on transfer of funds.--
       ``(A) Limitations on transfer to certain persons and 
     organizations.--None of the funds transferred under this 
     subsection may knowingly be provided to--
       ``(i) an organization designated as a foreign terrorist 
     organization under section 219(a) of the Immigration and 
     Nationality Act (8 U.S.C. 1189(a));
       ``(ii) a person that provides support for acts of 
     international terrorism or for an organization described in 
     clause (i);
       ``(iii) a person whose property or interests in property 
     are blocked pursuant to this Act, unless the transfer is 
     authorized by the Secretary of the Treasury; or
       ``(iv) a person the President determines is responsible for 
     violations of internationally recognized human rights.
       ``(B) Prohibition on use of funds for military purposes.--
     None of the funds transferred under this subsection may be 
     used to purchase weapons or military equipment of either a 
     lethal or nonlethal nature.
       ``(3) Certifications by certain persons.--The President may 
     not transfer funds to any person, other than an executive 
     agency, under paragraph (1)(A) unless that person certifies 
     to the President that the person--
       ``(A) will use such funds only for the costs described in 
     paragraph (1)(A); and
       ``(B) will not--
       ``(i) transfer any of such funds to a person or 
     organization described in paragraph (2)(A); or
       ``(ii) use any of such funds to purchase weapons or 
     military equipment of either a lethal or nonlethal nature.
       ``(4) Terms and conditions.--If the President exercises the 
     authority provided under this section, the President shall 
     impose such additional terms and conditions as the President 
     determines appropriate with respect to the transfer of funds 
     under this subsection and with respect to the use of such 
     funds.
       ``(5) Use by executive agencies.--Notwithstanding any other 
     provision of law, any funds transferred to an executive 
     agency under this subsection--
       ``(A) shall remain available until expended;
       ``(B) shall be used only for the costs described in 
     paragraph (1)(A);
       ``(C) may be distributed in such manner as the head of the 
     executive agency determines appropriate to accomplish the 
     purposes of this section, including through grants and 
     contributions; and
       ``(D) may be transferred among executive agencies.
       ``(f) Initial and Subsequent Authorizations of Confiscation 
     of Property.--
       ``(1) Authority.--The authority of the President to 
     confiscate and vest funds and other property under subsection 
     (c) shall be limited as follows:
       ``(A) Initial limitation.--Effective on and after the date 
     of the enactment of the Libyan Assets for Humanitarian Relief 
     Act of 2011, the President may confiscate and vest not more 
     than $4,000,000,000 under subsection (c).
       ``(B) Confiscation and vesting of additional amounts.--
       ``(i) In general.--If, at any one time after the date of 
     the enactment of the Libyan Assets for Humanitarian Relief 
     Act of 2011, the President submits to Congress the 
     notification described in clause (ii), effective on and after 
     the day after the end of the 30-day period beginning on the 
     date on which that notification is submitted, the President 
     may confiscate and vest not more than an additional 
     $4,000,000,000 under subsection (c) over the amount 
     authorized to be confiscated and vested under subparagraph 
     (A), unless a joint resolution of disapproval described in 
     paragraph (2) is enacted within the 30-day period after the 
     notification is submitted.
       ``(ii) Notification described.--The notification described 
     in this clause is a notification--

       ``(I) that the President intends to confiscate and vest the 
     additional amount specified in clause (i) to be used for the 
     costs described in subsection (e)(1)(A); and
       ``(II) submitted with a report--

       ``(aa) describing the necessity of confiscating and vesting 
     that additional amount; and
       ``(bb) detailing the plan of the President with respect to 
     the use of that additional amount.
       ``(C) Emergency certification; confiscation and vesting to 
     address emergency humanitarian needs.--
       ``(i) In general.--If, at any one time after the date of 
     the enactment of the Libyan Assets for Humanitarian Relief 
     Act of 2011, the President submits to Congress the 
     certification described in clause (ii), effective on and 
     after the date on which that certification is submitted, the 
     President may confiscate and vest not more than an additional 
     $2,000,000,000 under subsection (c) over the amounts 
     otherwise authorized to be confiscated and vested under this 
     paragraph.
       ``(ii) Certification described.--The certification 
     described in this clause is a certification by the President 
     that it is necessary to confiscate and vest the additional 
     amount specified in clause (i) to address an emergency need 
     for additional humanitarian assistance.
       ``(2) Joint resolution of disapproval.--
       ``(A) Joint resolution of disapproval.--In this paragraph, 
     the term `joint resolution of disapproval' means only a joint 
     resolution of the 2 Houses of Congress, the sole matter after 
     the resolving clause of which is as follows: `That Congress 
     disapproves of the confiscation and vesting of the amount of 
     funds or other property specified in section 209(f)(1)(B)(i) 
     of the International Emergency Economic Powers Act.'.
       ``(B) Procedures for considering resolutions.--
       ``(i) Introduction.--A joint resolution of disapproval--

       ``(I) may be introduced in the House of Representatives or 
     the Senate during the 10-day period beginning on the date on 
     which a notification described in paragraph (1)(B)(ii) is 
     submitted;
       ``(II) in the House of Representatives, may be introduced 
     by any Member of the House of Representatives;
       ``(III) in the Senate, may be introduced by any Member of 
     the Senate; and
       ``(IV) may not be amended.

       ``(ii) Referral to committees.--A joint resolution of 
     disapproval introduced in the Senate shall be referred to the 
     Committee on Banking, Housing, and Urban Affairs and a joint 
     resolution of disapproval introduced in the House of 
     Representatives shall be referred to the Committee on Foreign 
     Affairs.
       ``(iii) Committee discharge and floor consideration.--The 
     provisions of subsections (c) through (f) of section 152 of 
     the Trade Act of 1974 (19 U.S.C. 2192) (relating to committee 
     discharge and floor consideration of certain resolutions in 
     the House of Representatives and the Senate) apply to a 
     resolution of disapproval under this paragraph to the same 
     extent as such subsections apply to joint resolutions under 
     such section 152, except that--

       ``(I) subsection (c)(1) of such section 152 shall be 
     applied and administered by substituting `10 days' for `30 
     days'; and
       ``(II) subsection (f)(1)(A)(i) of such section 152 shall be 
     applied and administered by substituting `Committee on 
     Banking, Housing, and Urban Affairs' for `Committee on 
     Finance'.

       ``(C) Rules of house of representatives and senate.--This 
     paragraph is enacted by Congress--
       ``(i) as an exercise of the rulemaking power of the Senate 
     and the House of Representatives, respectively, and as such 
     is deemed a part of the rules of each House, respectively, 
     but applicable only with respect to the procedure to be 
     followed in that House in the case of a joint resolution, and 
     it supersedes other rules only to the extent that it is 
     inconsistent with such rules; and
       ``(ii) with full recognition of the constitutional right of 
     either House to change the rules (so far as relating to the 
     procedure of that House) at any time, in the same manner and 
     to the same extent as in the case of any other rule of that 
     House.
       ``(g) Recordkeeping.--
       ``(1) In general.--The President may, in exercising the 
     authority provided under this section, require any person to 
     keep a full record of--
       ``(A) any act or transaction carried out pursuant to any 
     regulation, instruction, license, order, or direction issued 
     under this section, either before, during, or after the 
     completion of the act or transaction;
       ``(B) any property in which any foreign country or any 
     national of a foreign country has or has had any interest; 
     and
       ``(C) any other information the President determines 
     necessary to carry out the provisions of this section.
       ``(2) Production of information.--The President may require 
     any person--
       ``(A) to provide any information required to be kept by the 
     person under paragraph (1) under oath and in the form of 
     reports or any other form; and
       ``(B) to produce any books of account, records, contracts, 
     letters, memoranda, or other papers in the custody or control 
     of the person that relate to any information required to be 
     kept under paragraph (1).
       ``(h) Reports on Use of Funds.--
       ``(1) In general.--Not later than 90 days after the 
     President first confiscates and vests funds or other property 
     under subsection (c), and every 90 days thereafter, the 
     President shall submit to the appropriate congressional 
     committees a report detailing,

[[Page 8988]]

     for the 90-day period preceding the submission of the 
     report--
       ``(A) the amount of funds and other property confiscated 
     and transferred under this section;
       ``(B) the executive agencies and other persons to which 
     such funds were transferred;
       ``(C) the manner in which such funds were used; and
       ``(D) the amount remaining in the account established under 
     subsection (d) at the end of the 90-day period.
       ``(2) Special rule with respect to report relating to 
     authorization of confiscation of additional amounts.--If, 
     after the date on which a report is required to be submitted 
     by paragraph (1) and before the next such report is required 
     to be submitted, the President submits to the appropriate 
     congressional committees the report described in subsection 
     (f)(1)(B)(ii)(II), the President--
       ``(A) shall include in the report described in subsection 
     (f)(1)(B)(ii)(II) the information required to be included in 
     the report required by paragraph (1) for the period that--
       ``(i) begins on the date on which the last report required 
     by paragraph (1) was required to be submitted; and
       ``(ii) ends on the date on which the President submits the 
     report described in subsection (f)(1)(B)(ii)(II); and
       ``(B) may include in the next report required by paragraph 
     (1) only the information required by paragraph (1) for the 
     period--
       ``(i) beginning on the date on which the report described 
     in subsection (f)(1)(B)(ii)(II) is submitted; and
       ``(ii) ending on the date on which the report required by 
     paragraph (1) is required to be submitted.
       ``(i) Government Accountability Office Report.--Not later 
     than 180 days after the date of the enactment of the Libyan 
     Assets for Humanitarian Relief Act of 2011, and every 180 
     days thereafter, the Comptroller General of the United States 
     shall submit to the appropriate congressional committees a 
     report assessing the confiscation and vesting of funds and 
     other property under subsection (c) and the use of funds 
     under subsection (e).
       ``(j) Penalties.--The penalties provided for in subsections 
     (b) and (c) of section 206 shall apply to a person that 
     violates, attempts to violate, conspires to violate, or 
     causes a violation of this section or any regulation, 
     instruction, license, order, or direction issued under this 
     section to the same extent that such penalties apply to a 
     person that commits an unlawful act described in section 
     206(a).
       ``(k) Judicial Review.--
       ``(1) Safe harbor.--A person that complies fully with a 
     regulation, instruction, license, order, or direction issued 
     under this section may not be held liable for a violation of 
     this section.
       ``(2) Good faith compliance.--A person may not be held 
     liable in any court for or with respect to any act or 
     omission done in good faith in connection with the 
     administration of, or pursuant to and in reliance on, this 
     section, or any regulation, instruction, license, order, or 
     direction issued under this section.
       ``(3) No legal process with respect to confiscated 
     property.--Any funds or other property confiscated and vested 
     under subsection (c), including any proceeds from the 
     liquidation or sale of such property, shall be immune from 
     any legal process or attachment.
       ``(4) Actions taken under this section.--No action taken 
     under this section, other than the imposition of penalties 
     with respect to a person under subsection (j), shall be 
     reviewable in any court in the United States.
       ``(5) Rule of construction.--This section does not create 
     any right or benefit, substantive or procedural, that is 
     enforceable at law or in equity by any party against the 
     United States, any agency of the United States, any officer 
     or employee of the United States, or any other person.
       ``(l) Termination.--
       ``(1) In general.--Except to the extent necessary to carry 
     out the plan required by paragraph (2), the provisions of 
     this section (other than subsections (a), (g), (j), (k), and 
     (m)) shall terminate on the date described in paragraph (3).
       ``(2) Plan for distribution of remaining amounts.--On the 
     date described in paragraph (3), the President shall submit 
     to the appropriate congressional committees a report 
     describing the plan of the President for using any funds 
     remaining of the amounts confiscated and vested under this 
     section that--
       ``(A) describes how any of such funds that are obligated as 
     of that date will be expended; and
       ``(B) provides for the distribution of any of such funds 
     that are unobligated as of that date to a successor 
     government of Libya.
       ``(3) Date described.--The date described in this paragraph 
     is the date on which the national emergency declared by the 
     President with respect to Libya pursuant to section 202 
     expires and is not continued by the President.
       ``(m) Regulations.--The President shall prescribe such 
     regulations as may be necessary to carry out the provisions 
     of this section.''.
       (b) Clerical Amendment.--Section 204 of the International 
     Emergency Economic Powers Act (50 U.S.C. 1703) is amended--
       (1) in subsection (b), by striking ``Whenever'' and 
     inserting ``Except as provided in subsection (e), whenever''; 
     and
       (2) by adding at the end the following:
       ``(e) Reports Relating to Confiscation of Assets of the 
     Government of Libya.--If the President exercises the 
     authority provided under section 209, the President shall 
     submit reports in accordance with subsection (h) of that 
     section.''.
                                  ____


      Summary of Libyan Assets for Humanitarian Relief Act of 2011

       Authorization of Confiscation: The measure authorizes the 
     President to confiscate and vest certain funds and other 
     property of the Government of Libya currently frozen by the 
     U.S. government, allows liquidation of the assets and sale of 
     any property, and directs the proceeds to be used solely for 
     humanitarian purposes to benefit the Libyan people. The 
     Government of Libya is defined to include Libya's Central 
     Bank.
       Account Established for Confiscated Funds: The bill 
     requires the President to establish a U.S. government account 
     to hold confiscated funds and the proceeds from any asset or 
     property sales. The Secretary of the Treasury may hold in 
     escrow funds that are not needed immediately to meet urgent 
     humanitarian needs.
       Use of Confiscated Funds for Humanitarian Purposes to 
     Benefit the Libyan People: Libyan Government funds 
     confiscated may only be used for humanitarian purposes to 
     benefit the Libyan people, consistent with United Nations 
     Security Council resolutions. None may be used to purchase 
     weapons or military equipment. The President must designate 
     recipients of funds and impose appropriate terms and 
     conditions, which may include detailed recordkeeping 
     requirements, on recipients. The measure prohibits the 
     knowing transfer of funds to: 1) foreign terrorist 
     organizations; 2) supporters of acts of terrorism or of 
     terrorist organizations; 3) a person whose assets are blocked 
     by the International Emergency Economics Powers Act (IEEPA); 
     or 4) a person the President determines to be responsible for 
     violations of internationally recognized human rights.
       Framework for Confiscation of Funds: The bill authorizes an 
     initial confiscation and distribution of $4 billion; if 
     additional funds are needed, the President may notify 
     Congress of his intent to confiscate an additional $4 
     billion, to be released within 30 days unless Congress 
     objects via enactment of a Joint Resolution of Disapproval. 
     The President's request for the additional funds must include 
     information about how prior confiscated funds were disbursed, 
     a description of the need for additional funds, a plan of how 
     the additional funds will be used, and other information. In 
     the event of a humanitarian emergency, the measure also 
     authorizes the President to notify Congress of his intent to 
     confiscate, on an expedited basis and upon certification of 
     need, an additional $2 billion to meet emergency needs.
       Investigations and Recordkeeping: The President may conduct 
     appropriate investigations of recipients as necessary, and 
     require recordkeeping from recipients of these funds, which 
     could include books of account, records, contracts, letters, 
     memoranda, or other papers related to distributions under the 
     Act.
       Audit and Reporting Requirements: The President must 
     provide detailed reports to Congress every 90 days describing 
     the amount of funds confiscated and transferred to designated 
     recipients, the recipients of these funds, and the manner in 
     which these funds were used. If the President notifies 
     Congress of an additional confiscation in the middle of a 90-
     day period, the President must only include any new 
     information on fund distribution. GAO is required to conduct 
     and provide to Congress periodic audits of the program.
       Penalties: Substantial penalties apply to persons who 
     violate provisions of the Act, including huge fines provided 
     for under section 206 of IEEPA.
       Legal Protections/Judicial Review: Decisions made with 
     respect to confiscated assets are not subject to judicial 
     review; a ``good faith'' exception is provided for those 
     acting consistent with the requirements of the Act; and any 
     funds or property confiscated under the Act are immune from 
     any legal process or attachment.
       Termination: The authorities provided for in the bill 
     terminate once the existing emergency determination of the 
     President under IEEPA with respect to Libya expires. Upon 
     termination, the President must submit to Congress a report 
     describing a plan for use of any remaining unspent funds, 
     including return of such funds to a successor government of 
     Libya.
       Regulations: The bill requires the President to prescribe 
     regulations as necessary under the Act.
                                 ______
                                 
      By Ms. COLLINS (for herself and Mr. Carper):
  S. 1183. A bill to establish a national mercury monitoring program, 
and for other purposes; to the Committee on Environment and Public 
Works.
  Ms. COLLINS. Mr. President, today along with Senator Carper, I am 
introducing the Comprehensive National

[[Page 8989]]

Mercury Monitoring Act. This bill would ensure that the Environmental 
Protection Agency, EPA, has accurate information about the extent of 
mercury pollution.
  A comprehensive national mercury monitoring network is needed to 
protect human health, safeguard fisheries, and track the impact of 
emissions reductions. By accurately quantifying regional and national 
changes in atmospheric deposition, ecosystem contamination, and 
bioaccumulation of mercury in fish and wildlife in response to changes 
in mercury emissions, this monitoring network would help policy makers, 
scientists, and the public to better understand the sources, 
consequences, and trends in United States mercury pollution.
  Mercury is a potent neurotoxin of significant ecological and public 
health concern, especially for children and pregnant women. It is 
estimated that approximately 410,000 children born in the U.S. were 
exposed to levels of mercury in the womb that are high enough to impair 
neurological development. Mercury exposure has gone down as U.S. 
mercury emissions have declined; however, levels remain unacceptably 
high.
  Each new scientific study seems to find higher levels of mercury in 
more ecosystems and in more species than we had previously thought. For 
example, as of 2008, every state in the country has issued mercury 
advisories for human fish consumption. These advisories cover 57 
percent of the Nation's total lake acreage, and 68 percent of our total 
river miles. This is 19 percent more lake acreage and 42 percent more 
river area than in 2006.
  At present, scientists must rely on limited information to understand 
the critical linkages between mercury emissions and environmental 
response and human health. Successful design, implementation, and 
assessment of solutions to the mercury pollution problem require 
comprehensive long-term information--information that is currently not 
available. We must have more comprehensive information and we must have 
it soon; otherwise, we risk making misguided policy decisions.
  Specifically, the Comprehensive National Mercury Monitoring Act would 
direct EPA, in conjunction with the Fish and Wildlife Service, U.S. 
Geological Survey, National Park Service, the National Oceanic and 
Atmospheric Administration, and other appropriate Federal agencies, to 
establish a national mercury monitoring program to measure and monitor 
mercury levels in the air and watersheds, water and soil chemistry, and 
in aquatic and terrestrial organisms at multiple sites across the 
Nation.
  The act would establish a scientific advisory committee to advise on 
the establishment, site selection, measurement, recording protocols, 
and operations of the monitoring program; establish a centralized 
database for existing and newly collected environmental mercury data 
that can be freely accessed on the Internet; and require a report to 
Congress every 2 years on the program, including trend data, and an 
assessment of the reduction in mercury deposition rates that are 
required to be achieved in order to prevent adverse human and 
ecological effects every 4 years.
  We must establish a comprehensive, robust national mercury monitoring 
network to provide EPA the data it needs to make decisions that protect 
the people and environment of Maine and the entire Nation.
                                 ______
                                 
      By Mr. THUNE (for himself, Ms. Klobuchar, Mr. Grassley, Mr. 
        Johanns, Mr. Hoeven, Mr. Franken, Mr. Moran, Mr. Lugar, Mr. 
        Nelson of Nebraska, Mr. Harkin, Mr. Johnson of South Dakota, 
        Mr. Kirk, Mr. Coats, Mr. Durbin, and Mrs. McCaskill):
  S. 1185. A bill to amend the Internal Revenue Code of 1986 to provide 
for a variable VEETC rate based on the price of crude oil, and for 
other purposes; to the Committee on Finance.
  Ms. KLOBUCHAR. Mr. President, I first wish to thank my colleague from 
Minnesota who spoke before me for his strong words. Also, I am here 
with the Senator from South Dakota, Mr. Thune, to speak about the 
legislation we are introducing today, along with several other 
Senators, to find a good way to handle this--not the way it thus far 
has been handled.
  My colleague from Minnesota talked about Senator Coburn's amendment, 
which we will be voting on tomorrow. I urge my colleagues to oppose 
this amendment. First of all, I believe we need to invest in homegrown 
energy. The Coburn amendment would abruptly eliminate the VEETC--the 
Volumetric Ethanol Excise Tax Credit--without any kind of a glidepath 
during this year. Consequently, the 450,000 people who are directly or 
indirectly employed in this industry--when we think about all of the 
jobs we work on every single day, just because jobs are in States that 
maybe some people don't live in, including North Dakota, South Dakota, 
Minnesota, and Iowa, these are very important jobs throughout the 
country.
  The other piece of this I think we can't neglect is the effect this 
would have on gas prices. That being said, both Senator Thune and I 
understand this is a situation that needs to change. We are in a 
difficult budget situation in the Senate, and that is why we are 
introducing legislation today and working with stakeholders and Members 
from both sides of the aisle to find a reasonable solution that offers 
a responsible and cost-effective approach to reforming our biofuels 
policy.
  This bill would transition to a more sustainable model of support for 
renewable fuel production in America instead of pulling the rug out 
from under an industry, with 4 days' notice, that employs hundreds of 
thousands of people in this country, as well as provides an alternative 
to oil. Senator Thune is here, and maybe he wishes to address this a 
bit. We will go back and forth.
  But I think one thing people need to understand is that this biofuels 
industry has become a major component of our fuel supply. One statistic 
is that the gasoline that is made from the oil we import from Canada--
people know Canada is our biggest trading partner for oil. We literally 
produce as much biofuels as we produce gas from the oil we import from 
Canada, so it is a major part of our fuel supply. So we shouldn't just 
decide with 4 days' notice to change the rules of the game. In fact, as 
a recent vote showed us, oil is keeping every single cent of its 
subsidy.
  Senator Thune and I have a bill which basically gives away the 
subsidies for the rest of the year that the biofuels industry has and 
puts $1 billion toward deficit reduction--$1 billion toward deficit 
reduction--as well as making some investment with the remaining money 
in the infrastructure that this industry needs to be able to compete on 
any kind of an even playing field with oil.
  So I know Senator Thune has some thoughts on this as well, and I 
would like to come back and talk a little bit about what has been going 
on with oil versus ethanol in this country. But I think it is important 
to understand the bill we are introducing today could be a major help 
with $1 billion in deficit reduction.
  Mr. THUNE. Mr. President, if I might just say to my colleague from 
Minnesota, I appreciate her good work and advocacy on this subject. 
This is something we have been working on for some time, along with 
some of our colleagues on both sides of the aisle, for a lot of 
reasons; one of which, of course, is because, as the Senator from 
Minnesota mentioned, these are difficult fiscal times.
  Obviously, every area in our budget needs to be reviewed and 
scrutinized and looked at to see where we might be able to achieve some 
savings. But, as my colleague noted, there is a right way and a wrong 
way to do this. The way that has been proposed in the amendment that 
was offered, and on which the cloture vote will occur tomorrow, is the 
wrong way. We cannot tell an industry in December we are going to give 
them a set of policies that are going to be in effect for the year, 
that they are going to be able to make investment decisions, they are 
going to be able to go to their lenders,

[[Page 8990]]

they are going to be able to go secure financing based upon this set of 
policies--we do that around here all the time. We make policy, and we 
try to do it in a way, hopefully, that gives those who are investing 
their dollars some certainty about what those policies are going to be. 
Well, how can we then, in the middle of the year, come back and say we 
are just going to pull the rug right out from under them? We are sorry, 
that is just the way it is. This is gone.
  Well, frankly, there is a much better way to go about doing this, and 
what the Senator from Minnesota and I have proposed does just that and, 
in my view, does this in a responsible, measured, thoughtful, 
reasonable way. We get to the same ultimate result, which is that for 
those who are really interested in doing away with the volumetric 
ethanol excise tax credit, it does phase it out, but it does it in a 
way that does not create disruption and harm and allows people to plan 
for the future. It also invests some of those resources in areas that 
are important to the future of that industry; namely, blender pumps, 
which is the one thing that does not exist out there today, at least 
not in any great numbers. If those pumps were more available, I believe 
we would see a lot higher usage of the fuel than we already have seen. 
But we already know it is 10 percent of our fuel supply.
  Whether the opponents of this like it or not--and I know they do 
not--there are 13 billion gallons of ethanol produced in this country. 
At least that is what it was in 2010. We assume it will be that number, 
maybe a little higher, this year. That displaces 445 million barrels of 
imported crude oil. That is 55 million barrels more than the total 
crude oil imports from Saudi Arabia last year.
  Now, think about that: a fuel that is produced from a kernel of corn 
now displaces more than the entire imports of Saudi foreign oil into 
this country. That is what we ought to be looking at. We ought to be 
looking at more ways to produce domestic energy, home-grown energy, 
adding that to our fuel supply rather than taking it out.
  What the amendment our colleagues are trying to get a vote on 
tomorrow would do is basically to say to this industry: Yes, we are 
going to take away this particular tax incentive, and we are going to 
do it right in the middle of the year. We are going to do it, and we do 
not like this industry--which is probably what animates a lot of the 
opposition to this because if people look at the facts, if they look at 
the contribution that biofuels have made to our fuel supply in this 
country, it is significant.
  Ten percent of our entire fuel now is biofuels. In fact, if we look 
at the other byproduct of biofuels--once we take the starch out of that 
kernel of corn and convert it into liquid form, we can get, for every 
bushel of corn, almost 3 gallons of ethanol. But we also get dry 
distillers grain, which is something that has been used extensively now 
for feed for livestock.
  So if we take 5 billion bushels of corn, for example, that are used 
for ethanol production in any given year, the feed product equivalent 
is about 1.7 billion bushels of corn that is returned to the livestock 
food chain as this ethanol byproduct called dry distillers grain. So we 
are adding additional protein that is fed to livestock in addition to 
the almost 3 gallons of ethanol we get from every single bushel of 
corn.
  So I do believe there is an approach that makes sense. What the 
Senator from Minnesota and I and many of our colleagues on both sides 
have come together around is a way in which we can move forward, and do 
it in a way that not only makes it reasonable for the industry to plan 
for the future but also in a way that returns dollars to the Treasury 
of this country because there is $1 billion in here for debt 
retirement. I think that is something the industry recognizes, we all 
recognize, and we need to address. It is addressed as part of this 
bill.
  So I appreciate the good work of the Senator from Minnesota in 
working with me, along with other colleagues of ours, to introduce the 
bill we introduce today.
  Ms. KLOBUCHAR. Mr. President, if I may continue, I thank Senator 
Thune for his work.
  One point I think he made that is incredibly important: I think not 
all of our colleagues understand that the way it is under the current 
rules is VEETC, which has been in place to make sure we have an 
alternative to oil in this country, ends at the end of this year. The 
one piece of it that continues for another year is the cellulosic 
research, the cellulosic credit. But the rest of it ends at the end of 
this year.
  So instead of looking at a glidepath, as suggested in our bill, where 
we could take $1 billion and put it into deficit reduction, and take 
another $1 billion or so--which would be going right now as a credit--
and put that into the infrastructure, the alternative that is suggested 
by the amendment offered by our colleague from Oklahoma is just to cut 
it off today, basically, with a few days' notice.
  What I have heard time and time again from businesses--whether it is 
in the energy area or in the medical device area--is they want 
certainty. They do not want Washington just coming in with one day's 
notice and changing things. That is why I ask my colleagues to look at 
this bill as an alternative. We are glad to discuss details with them.
  One of the things we have tried to do with this bill is to 
acknowledge the emerging field of cellulosic with algae and other forms 
of research into biofuels. That would continue into next year. But, 
basically, the proposal Senator Thune and I have put forward would end 
VEETC as we know it.
  We look at the comparisons here. Over the last few decades more than 
$360 billion worth of subsidies have gone to the oil companies. That is 
nearly 10 times greater than the investments we have made in home-grown 
biofuels. Now they are set up in a different way, but those are the 
numbers. We have to remember the jobs with biofuels are jobs that are 
made in America. We are basically investing in the farmers and the 
workers of the Midwest instead of the oil cartels in the Mideast.
  I have seen the boom in oil drilling in North Dakota. That has been a 
good thing. So I am not just a one-size fuel person. But I think to 
disrupt an industry like this, with no notice, is the wrong way to go. 
I hope our colleagues will look at our bill seriously, talk to us about 
this, think about the gas prices which have now topped $3.75 per 
gallon. While they are high now, look at the fact that the Chicago 
Tribune looked at the fact that if we ceased to produce the 13 billion 
gallons of ethanol we make every year, as Senator Thune has pointed 
out, it would drive up prices at the pump by as much as $1.40 per 
gallon. I do not think that is something we can afford right now.
  We have put together a good-faith proposal that basically even those 
who have a lot of questions about biofuels right now, about ethanol, 
will have to admit is a dramatic change. It ends VEETC as we know it. 
It puts a big chunk of change, $1 billion--that otherwise would be 
going to subsidies this year, right now--toward deficit reduction while 
still allowing for that infrastructure investment, and then looking 
into next year for just some of the key pieces but severely changing 
any kind of subsidy for this industry.
  So with that, I thank Senator Thune. I do not know if the Senator has 
something else to add.
  Mr. THUNE. Mr. President, if I might add one point.
  I think the Senator from Minnesota did point out that there are a 
significant number of jobs that are associated with this industry--in 
fact, one-half million jobs. They are American jobs. They are jobs in 
the heartland of this country. They are jobs that help grow the 
economy, make it more prosperous. It strikes me, at least, that what we 
ought to be looking at is more jobs in this country and less investment 
in foreign regimes, where we get a lot of our energy today.
  Mr. President, $1 billion a day is what we send outside the United 
States because of our addiction to foreign oil. We have a dangerous 
dependence upon foreign energy, and we have a fuel that, as I said, 
displaces 445 million barrels

[[Page 8991]]

of oil every single year--more than we import from Saudi Arabia. That 
is a pretty remarkable number when you think about it.
  We had a debate here a few weeks ago on the floor of the Senate about 
whether we ought to change tax policy with regard to oil companies. The 
decision was reached that we should not do that; that it would be 
punitive, directed at oil companies. We decided, too, that it would 
raise taxes on gas for people in this country.
  I would make the same argument today. We are talking about a tax 
increase--a large tax increase--which we know is going to get passed 
on. So we are talking about raising taxes on consumers at a time when 
they can least afford it.
  We have today 3\1/2\ to $4-a-gallon gasoline. The last thing 
consumers in this country need is something that would actually push 
that gas price higher. In fact, if we did away with biofuels 
altogether--which some people would like to do--there was a study out 
last year, in 2010, that said the price per gallon of gasoline would go 
up by 89 cents a gallon. So we have a proposal here that would have an 
adverse impact on energy prices, fuel prices for people in this 
country, which, frankly, again, because of the commitment that was made 
last December, strikes at the very heart of economic certainty, which 
so many of us come down here and talk about: the importance of having 
policies in place that are reliable, that people who are investing in 
particular areas of our economy can know they are going to be there, at 
least when Congress makes a commitment.
  This completely undermines the commitment Congress made back in 
December that this particular tax credit would be in place until the 
end of the year. So what the Senator from Minnesota and I have done is 
propose a path forward that we believe makes sense and that is a 
thoughtful, measured, reasonable, responsible way in which to get to 
the goal that many of the proponents of the amendment that will be 
voted on tomorrow want to get to; that is, to phase down the volumetric 
ethanol excise tax credit. But it does it in a way that makes sense for 
American consumers and those who have investments in the industry 
today.
  So I hope my colleagues will take a look at this legislation. We 
think we can get it moving this year. It does, as was noted by my 
colleague from Minnesota, put a significant amount toward reducing the 
debt, which I think is something all of our colleagues are very 
interested in doing. So we will present this legislation, obviously, to 
our colleagues and hope there will be many who will choose to support 
it.
  Mr. President, I yield the floor back to the Senator from Minnesota.
  Ms. KLOBUCHAR. Mr. President, again, we just hope our colleagues will 
look at this bill. It is a serious bill and very different than other 
bills that have been proposed in the past, and it actually takes 
existing money that was set out for the end of this year and puts a big 
number--$1 billion--into debt reduction.

                          ____________________