[Pages S8282-S8292]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mrs. CARNAHAN (for herself, Mr. DeWine, Mr. Leahy, Mr.
Daschle, Mr. Johnson, Ms. Landrieu, and Ms. Snowe):
S. 1250. A bill to amend title 10, United States Code, to improve
transitional medical and dental care for members of the Armed Forces
released from active duty to which called or ordered, or for which
retained, in support of a contingency operation; to the Committee on
Armed Services.
Mrs. CARNAHAN. Mr. President, our Nation's Reserve components are
assuming increasingly greater roles in the U.S. military. Today we have
more commitments around the world but fewer Active Forces. For these
reasons, we have increasingly come to depend on our Reserve components.
Since the gulf war, our Army and Marine Corps have increased their
operations abroad by 300 percent. Air Force deployments have quadrupled
since 1986. And our Navy now deploys 52 percent of its forces on any
given day.
These deployments would be impossible without guardsmen and
reservists. Last year's Reserve components served a total of 12.3
million duty days, compared to 5.2 million duty days in 1992.
It is time to recognize the contribution of our reservists and given
them the benefits they deserve. We must find a way to provide immediate
short-term relief to reservists who stand in need of our support, those
who have just returned home from deployments abroad.
Last month, Senator Leahy and six other colleagues set a goal to
provide health care for all National Guard members and reservists.
Senator Leahy's legislation recognizes the role that Reserve components
now play in our national security. This bill authorizes a Defense
Department study to develop the most feasible plan to provide health
care for all Reserve components.
Providing coverage to all reservists is a monumental task. It will
require intense analysis in developing a cost-effective approach. But
it is a worthy goal, one that will prove important to sustaining our
force strength and our military morale.

Today I am introducing legislation that will take the first step
towards Senator Leahy's goal for covering reservists. The bill will
significantly improve the quality of life for our men and women in the
National Guard and Reserves. Reservists like SSG Jonathan Reagan, this
young Army reservist just returned home from an 8-month peacekeeping
mission in Kosovo. He served in the 313th hospital surgical unit
providing care to military personnel and needy Kosovars. Yet when he
returned home to Missouri, he found himself without health care
coverage of his own.
Sergeant Reagan had just finished graduate school and was looking for
a job as a physical therapist. Currently the law allows military
personnel to extend their military health coverage for 30 days after
they return home. Well, that was not enough for Sergeant Reagan. He was
uninsured and was forced to purchase his insurance out of his own
pocket.
Sergeant Reagan is not alone. Sergeant Jason Dunson served on that
same deployment. He did not have health care coverage when he returned
home to Springfield, MO, either. Luckily before he deployed, he
transferred his 3-year-old daughter's health care coverage to his
wife's plan. Unfortunately, his employer will not be able to cover him
for a number of months.
But the case of CPT Terri McGranahan is the most troubling. She
volunteered to be a part of our peacekeeping mission in Kosovo. During
her service, she worked at a health clinic that had been newly painted
with a toxic sealant.
When she returned home, her private health insurance company refused
to retain her. Working in this clinic had made her very ill. Her
condition resulted in pneumonia and eventually a spot on her lung.
She did not detect the condition right away. When she finally sought
medical treatment, the 30 days of TRICARE coverage had already expired.
She asked the Army for help but was turned down. Moreover, her
private insurer refused to cover her for a condition acquired during
military service.
Eventually, she would be able to obtain reimbursements from the
Department of Defense, once it was fully clarified that her illness was
service related. But how long will she have to

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wait before she receives this relief? And why should she and her family
be forced to undergo such stress as she endures a serious ailment,
contracted while in the military service?
Senators DeWine, Leahy, Daschle, Johnson, Landrieu, Snowe, and I have
joined together to propose a short-term solution. Our legislation will
allow Reserve and National Guard personnel to extend their TRICARE
coverage for up to 1 year after their deployment.
Already, the Carnahan-DeWine bill has been endorsed by organizations
across the country, including the National Guard and Reserve Committee
of the Military Coalition, the Reserve Officers Association, National
Guard Association, Enlisted Association of the National Guard, and
several other organizations promoting quality of life to serve men and
women.
The Joint Chiefs of Staff have indicated that this legislation would
have a positive impact on military quality of life and retention rates.
They further believe that such extension of benefits would assist
members who, following activation and deactivation, decide to leave
their civilian employment.
We are not asking for an overly extensive benefit for Reserve
components. Some may think this proposal is far too modest. I
understand that in the other body there is a proposal to provide an
even more comprehensive approach. But I believe that before we attempt
to establish a full health care program for these service men and
women, it is essential that we authorize the Pentagon to explore the
most feasible option. The bill and the legislation authored by Senator
Leahy will work to achieve this goal.
In the meantime, I am proud to be pursuing this initiative in the
name of our Missouri National Guard and Reservists, as well as our
country's other citizen soldiers. As the Kansas City Star stated in a
recent editorial:

The United States has come to rely more and more heavily on
the military reserves and the National Guard.
The men and women who make so many sacrifices to serve in
those forces should not have to worry about inadequate health
insurance coverage as soon as they return to civilian life.

Mr. President, let's do the right thing for our Nation's citizen
soldiers.
Mr. LEAHY. Mr. President, I rise today to congratulate Senator
Carnahan on the introduction of S. 1250. I am an original co-sponsor of
her legislation that deals with health care shortfalls among members of
the National Guard and Reserve. This bill will enable citizen-soldiers
to receive health insurance coverage for up to one year following an
extended deployment. It is an important part of a larger effort to
ensure that all members of the National Guard and Reserve have adequate
health insurance.
This bill arises out of the changing role of the National Guard and
Reserve in defending our Nation. During the Cold War, the military
reserves served as an ace-in-the-hole, ready to fight but held back as
a force of last resort. As our military posture has shifted, reservists
have started supplementing active forces and taken up a greater share
of the burden of projecting our national military presence abroad.
In many cases, these proud men and women are serving side-by-side
with their active duty counterparts in deployments that can last upward
of six months. I will not repeat many of the facts and figures that
Senator Carnahan so adeptly underscored in her statement, but, suffice
to say here, our citizen-soldiers are experiencing all of the same
hardships, challenges, dangers that full-time servicemembers go through
every time they leave their barracks or launch into the skies.
This courage and sacrifice deserves our support, both in symbolic and
concrete terms. Unfortunately, many are experiencing difficulties as
they transition back-and-forth between their usual, employer-provided
health coverage and the military TRICARE Prime coverage they receive
when they deploy longer than 60 days. More disturbing are the cases
where a reservist might be between jobs in their professions, go on an
extended deployment, and return to that unemployed status with no
health insurance coverage at all. There are innumerable variations on
each one of these stories, but each points towards a larger problem.
Cases like those add up, inevitably impacting military readiness and
raising troubling moral questions. Military readiness diminishes when
soldiers, sailors, Marines, and airmen arrive for deployment less
healthy than possible. Basic questions of fairness come into play when
two people can do exactly the same job, but receive different levels of
respect and gratitude from the country. Congress has the responsibility
to deal with these inequities and tailor a solution to address the
problem.
Recently, Senators Carnahan, DeWine, Daschle, Cochran, Johnson, and
Snowe joined me to introducing S. 1119, the Selected Reserve Health
Care Act. This bill commissions an independent, detailed study of the
health insurance needs of our citizen-soldiers, but, more importantly,
expresses the sense of Congress that every reservist should have full
health care coverage. This is a long-term goal that may take some time
to achieve. In the meantime, though, we should take steps to move us in
the right direction.
Senator Carnahan's legislation will ensure a smooth transition back
to civilian employment after an extended deployment. It increases the
time that a member of the reserve can remain on TRICARE following
deployment from one month to a year. Though it merely extends an
existing benefit, it will provide a much-needed stopgap for those who
are unemployed or facing difficulties with their civilian insurance
providers. This legislation is sensible and affordable, finding a
balance between our responsibilities to our servicemembers and our
responsibilities as caretakers of the national treasury.
Senator Carnahan has shown tremendous leadership on this issue, not
only co-sponsoring a companion legislation that I introduced almost a
month ago, but, more importantly, by coming up with a realistic,
concrete step to start addressing this complex problem today. I am
happy to be an original co-sponsor of this legislation, and I look
forward to working with her to enact both of these bills.
______

By Ms. SNOWE (for herself and Ms. Collins):
S. 1251. A bill for the relief of Nancy B. Wilson; to the Committee
on Finance.
Ms. SNOWE. Mr. President, I rise today along with my colleague from
Maine to introduce legislation for the relief of Nancy Wilson of
Bremen, ME, who has been denied widow's benefits from Social Security
despite the very extenuating circumstances of her case.
Nancy Wilson was denied Social Security widow's benefits because she
had not been married to the late Alphonse Wilson for the required nine-
month period prior to his death even though they had lived together as
a couple for 19 years. Alphonse had been unable to marry Nancy earlier
because Massachusetts law forbade him from divorcing his first wife,
Edna, due to her being institutionalized with a mental illness. Upon
Edna's death on April 12, 1969, Alphonse and Nancy were married just 20
days later, with Alphonse dying on December 5, 1969.
While the nine-month requirement for receiving widow's benefits was
understandably created to prevent marriages in anticipation of death,
the reason for Nancy Wilson's delayed nuptials were clearly unique.
Given the extenuating circumstances, I urge my colleagues to support
this private relief bill for Nancy Wilson.
Ms. COLLINS. Mr. President, I am pleased to join Senator Snowe in
introducing legislation for the private relief of Nancy B. Wilson.
Nancy's compelling case merits such action.
In 1945, Al Wilson was married with two children when tragedy struck
the family. His wife Edna was institutionalized following a severe
mental breakdown, and Al was left with no one to care for his children.
Five years later, he met Nancy Butler, who took up residence with Al
and began caring for his two children, as well as her own son. The
eldest child has written that Nancy ``is the person who brought me up
in place of my biological mother, who was institutionalized. I think of
Nancy as my real mother.''
Though Al and Nancy wished to get married, Al was prohibited from
divorcing his first wife under a Massachusetts law barring divorce for
reasons of insanity or institutionalization for insanity. Time passed,
and although not legally married, Al and Nancy raised their family
together.

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Edna Wilson died on April 12, 1969, and Al and Nancy were married
twenty days later. Tragically, just seven months after their wedding,
Al died of cancer. Though only married for those seven months, Al and
Nancy had lived together for 19 years.
When Nancy turned 64 she applied to the Social Security
Administration for survivor's insurance benefits. She was told that a
couple must be married for 9 months for the spouse to be eligible to
collect survivor benefits, and that her legal marriage failed to meet
that threshold. Nancy has since exhausted the administrative appeals
process to no avail.
The private relief bill we are introducing will simply allow Nancy to
receive widow's benefits from her husband's earnings. Though Al and
Nancy were legally prevented from being married for all but seven
months of their years together, they were, for all practical purposes,
married for 19 years. She raised his children, allowing him to work and
accumulate a Social Security benefit.
These unique circumstances illustrate why Congress must enact private
relief legislation from time to time. Certainly, Nancy's unique
situation fulfills the intent of the Social Security Act, and it is a
situation that will not be repeated due to a change in Massachusetts
law repealing the legal hurdle that prevented Al and Nancy from being
married in the first place. Mrs. Wilson's case is truly compelling, and
merits this corrective action by Congress. I urge my colleagues to
support this measure.
______

By Mr. SARBANES (for himself, Mr. Reed, and Mr. Allard):
S. 1254. A bill to reauthorize the Multifamily Assisted Housing
Reform and Affordability Act of 1997, and for other purposes; to the
Committee on Banking, Housing, and Urban Affairs.
Mr. SARBANES. Mr. President, today I am introducing the Mark-to-
Market Extension Act of 2001 with my colleagues Senator Reed and
Senator Allard, the chair and ranking member of the Housing and
Transportation Subcommittee of the Banking, Housing, and Urban Affairs
Committee. This legislation will extend the Multifamily Assisted
Housing Restructuring and Affordability Act of 1997, MAHRAA, for an
additional five years.
The legislation will ensure that HUD continues to have the authority
to restructure the rents and the mortgages of its FHA-insured section 8
project-based portfolio. These properties have been operating for the
past 20 years on long term rental subsidy contracts, many of which are
currently paying above-market rents. The program we seek to reauthorize
provides HUD with the tools to reduce those rents to market levels and
restructure the underlying mortgages so that the new, lower rents will
be sufficient to cover the debt. At the same time, the program provides
for the rehabilitation of these projects, and requires another long
term commitment to keep the properties affordable.
This program expires in September. Both HUD and the General
Accounting Office believe the program should be reauthorized in order
to continue the progress in getting these projects restructured,
rehabilitated, and on a sound footing for the taxpayer, for the owner,
and for the resident.
In a hearing on this program held on June 19, we heard from all the
stakeholders, HUD, and the GAO. We have adopted many of the
recommendations heard at that hearing in this legislation. Some of the
changes we have included should further reduce the costs of the program
to the federal government, while simultaneously allowing for more
extensive rehabilitation and more economic certainty for property
owners. The bill also extends the authorization for funding for
tenants, non-profits, and public agencies that participate in the
restructuring process.
I ask unanimous consent that a section by section analysis be printed
in the Record.
There being no objection, the materials was ordered to be printed in
the Record, as follows:

Section-by-Section of the Mark-to-Market Extension Act of 2001

This legislation reauthorizes the ``Multifamily Assisted
Housing Reform and Affordability Act of 1997'' (MAHRAA) with
some amendments.
Section 1--Short Title.
Section 2--Purposes.
Section 3--Definitions.
Section 4--Provides for reauthorization of grants for
tenant services, non-profits, and public entities engaged in
the restructuring process; readjustment of calculation of
properties eligible for exception rents; use of enhanced
vouchers; notice regarding rejection of restructuring plan;
voluntary participation of Preservation projects in mortgage
restructuring upon sale or transfer of property; discretion
for the Secretary in requiring owner contributions for new
features in addition to basic rehabilitation; establish
consistent rent standard; provide for GAO reports on physical
and financial condition of the property and HUD's oversight;
and, allow for resizing of second mortgages.
Section 5--Provides for consistent rent standard for
projects undergoing restructuring, and for tenant-based
vouchers.
Section 6--Provides for HUD-held mortgages to go through
FHA's streamlined refinance process established by section
237(a)(7) of the National Housing Act; provides for the term
of such loans to be up to 30 years.
Section 7--Technical correction to renumber a section of
the law.
Section 8--Eliminate the requirement that the Director of
the Office of Multifamily Housing Assistance Restructuring,
OMHAR, be confirmed by the Senate; make the Director report
to the FHA Commissioner; extend the program and Office for 5
years; and make the limitation on subsequent employment 1
year, consistent with Congressional rules.
______

By Mr. WYDEN (for himself and Mr. Brownback):
S. 1255. A bill to encourage the use of carbon storage sequestration
practices in the United States; to the Committee on Agriculture,
Nutrition, and Forestry.
Mr. WYDEN. Mr. President, today Senator Brownback and I are
introducing legislation that uses a simple, scientifically sound and
entirely voluntary approach to combat global warming. It's not
regulatory, and it's not revolutionary, except for the fact that this
approach could account for and solve up to 50 percent of the United
States' atmospheric carbon problem. The Carbon Sequestration and
Reporting Act will expand the Nation's forested lands, protect
watersheds, conserve agricultural lands and put forests and farms on
the frontlines in the battle against global warming. The legislation is
entirely voluntary and incentive-based. It makes new resources
available to private landowners through State-operated revolving loan
programs and USDA conservation programs to provide assistance for tree
planting, other forest management actions, and soil conservation for
the purposes of carbon sequestration. Both of these programs will lead
to better water quality, less runoff pollution, better wildlife habitat
and an additional revenue source for farmers and forest land owners.
Thirty-eight industrialized countries account for one-half of the
carbon released into the atmosphere. The U.S., all alone, accounts for
one-quarter of the total carbon released into the atmosphere. This
country cannot afford to be a bystander on the climate change issue,
and yet two days ago the headlines read: ``Climate Agreement Leaves
U.S. Out in the Cold;'' ``Isolated on Global Warming;'' ``178 Nations
Reach Climate Accord; U.S. Only Looks On.'' I am convinced that it is
possible to put together a bipartisan alternative to inaction. I
started that process with the Forest Resources for the Environment and
Economy Act. Today, I continue that process with Senator Brownback as
we introduce The Carbon Sequestration and Reporting Act.
We cannot afford to sit out this debate as it goes on around us. It
costs between $2 and $20 per ton to store carbon in trees and soil but
alternative strategies such as emissions reductions can cost up to $100
per ton. Sequestering carbon in forests and soil is a scientifically
sound and cost-effective strategy that can reduce carbon dioxide levels
by up to 50 percent. My approach has been to use trees for carbon
sequestration; Senator Brownback's approach has been to sequester
carbon in agricultural soil. Our legislation joins the best of both
these approaches.
I am not saying that carbon sequestration should be the only tool in
our toolbox. We need all the tools available to address the enormous
issue of global climate change. But we believe this approach, this
bill, will provide a jump start to a stalled political process. Carbon
sequestration is a technology that can begin working right now, today,
to reduce the negative effects of climate change.
Investing in healthy forests today is an investment in the well-being
of our

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planet for decades to come. In the Pacific Northwest, forests are more
than critical environmental resources, they are also a cornerstone of
our economy. The same is true for agriculture. Last year, in Oregon
alone, agriculture accounted for over $3 billion in trade and business
revenues. Investing in improved land management and conservation to
offset greenhouse gases is a win for the environment, a win for
agriculture and a win for local economies.
According to the Pacific Forest Trust, our forest lands in the United
States are only storing one-quarter of the carbon they can ultimately
store. Just tapping a portion of this potential by expanding and
increasing the productivity of the Nation's 737 million acres of
forests is an important part of a win-win strategy to slow global
warming. The forestry component of this bill works through a revolving
loan fund for private, non-industrial landowners to be used to plant
trees for carbon sequestration and conservation purposes. The forestry
loans are not limited by time, but can be forgiven if the landowner
decides to institute a permanent easement on his or her land for the
purposes of conservation and carbon sequestration. This bill also takes
an important first step toward sequestering greenhouse gases on Federal
lands: it directs the Forest Service to report to Congress on options
to increase carbon storage in our national forests.
The agriculture portion of the bill will encourage landowners to
offer the best plans detailing practices they would be willing to
undertake to store additional carbon in the soil. The program is
limited to 5 million acres, and is not a set aside. Rather, this bill
encourages conservation practices like no-till, buffer strips and
biomass production, to name a few, which are known to enhance soils'
ability to store carbon. Using funding similar to current CRP payments,
the agricultural contracts under this bill would be for a minimum of 10
years and USDA would be required--in conjunction with other agencies--
to finalize criteria for measuring the carbon-storing ability of
various conservation practices.
We know these types of approaches work because of the leadership of
our home states in carbon sequestration practice and research: Oregon
for forestry and agriculture and Kansas for agriculture. The objectives
of this bill will be greatly aided by institutions like Oregon State
University and Kansas State University, who are already conducting
significant research on various carbon-storing practices.
This bill also makes important changes to the Energy Policy Act of
1992: it would strengthen the voluntary accounting and verification of
greenhouse gas reductions from forestry and agricultural activities.
The bill directs the Secretary of Energy to develop new guidelines on
accurate and cost-effective methods to account for and report real and
credible greenhouse gas reductions. These guidelines are absolutely
necessary because without them we could be doing all the environmental
good in the world, but we have no record of it and, therefore, no
concept of the progress we would have made. The guidelines will be
developed with the input of a new Advisory Council representing
agriculture, industry, foresters, States, and environmental groups.
As in the last Congress, the forestry portion of the bill will pay
for itself by using money that polluters pay when they are caught
violating the Clean Air Act and Clean Water Act as there are currently
no guarantees that these penalties, which revert to the General Fund,
are used to improve our environment, but our bill would put the
penalties toward this goal. We would use these fines to expand our
forests, protect streams and rivers and help remove greenhouse gases
from the air. The agricultural portion of this bill will be paid for by
conservation appropriations to the USDA.
This bill is about taking advantage of a clear win-win opportunity.
It's a win for the global environment. It's a win for sustainable
forestry. It's a win for local water protection. And it's a win for
rural communities. For these reasons, the forestry portion of this bill
has already received positive reactions from timber companies and
environmental organizations alike, including the National Association
of State Foresters and the Society of American Foresters, American
Forest and Paper Association, American Forests, Environmental Defense,
Governor John A. Kitzhaber of Oregon, PacifiCorp, The Nature
Conservancy, and The Pacific Forest Trust. The agricultural portion of
this bill has received positive reactions from many of these same
groups.
I look forward to pursuing this common-sense step toward protecting
the environment and supporting our forest workers and agricultural
interests.
I ask unanimous consent that the text of the bill and a summary of
the Carbon Sequestration and Reporting Act be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

S. 1255

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 ``Carbon
Sequestration and Reporting Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title; table of contents.

TITLE I--CARBON ADVISORY COUNCIL

Sec. 101. Carbon advisory council.
Sec. 102. National inventory and voluntary reporting of greenhouse
gases.

TITLE II--FOREST CARBON MANAGEMENT

Sec. 201. Forest carbon storage and sequestration.

TITLE III--CARBON SEQUESTRATION PROGRAM

Sec. 301. Establishment.
Sec. 302. Funding.
Sec. 303. Regulations.
Sec. 304. Effective dates.

TITLE IV--REPORTS

Sec. 401. Initial report.
Sec. 402. Annual report.
Sec. 403. State report.

TITLE I--CARBON ADVISORY COUNCIL

SEC. 101. CARBON ADVISORY COUNCIL.

The Energy Policy Act of 1992 is amended by inserting after
section 1609 (42 U.S.C. 13388) the following:

``SEC. 1610. CARBON ADVISORY COUNCIL.

``(a) Definitions.--In this section:
``(1) Carbon advisory council.--The term `Carbon Advisory
Council' means the Carbon Advisory Council established under
subsection (b).
``(2) Carbon sequestration.--The term `carbon
sequestration' means the action of vegetable matter in--
``(A) extracting carbon dioxide from the atmosphere through
photosynthesis;
``(B) converting the carbon dioxide to carbon; and
``(C) storing the carbon in the form of roots, stems, soil,
or foliage.
``(3) Carbon storage.--The term `carbon storage' means the
quantity of carbon sequestered from the atmosphere and stored
in forest carbon reservoirs.
``(4) Forest carbon program.--The term `forest carbon
program' means the program established under section 2404(b)
of the Global Climate Change Prevention Act of 1990 to
provide financial assistance for forest carbon activities
through--
``(A) cooperative agreements; and
``(B) State revolving loan funds.
``(5) Forest management action.--
``(A) In general.--The term `forest management action'
means an action that--
``(i) applies forestry principles to the regeneration,
management, utilization, and conservation of forests to meet
specific goals and objectives; and
``(ii) maintains the productivity of the forests.
``(B) Inclusions.--The term `forest management action'
includes management of forests for the benefit of--
``(i) aesthetics;
``(ii) fish;
``(iii) recreation;
``(iv) urban values;
``(v) water;
``(vi) wilderness;
``(vii) wildlife;
``(viii) wood products; and
``(ix) other forest values.
``(6) Indian tribe.--The term `Indian tribe' has the
meaning given the term by section 4 of the Indian Health Care
Improvement Act (25 U.S.C. 1603).
``(7) Reforestation.--
``(A) In general.--The term `reforestation' means the
reestablishment of forest cover naturally or artificially.
``(B) Inclusions.--The term `reforestation' includes--
``(i) planned replanting;
``(ii) reseeding; and
``(iii) natural regeneration.
``(b) Establishment.--The Secretary shall establish an
advisory council, to be known as the `Carbon Advisory
Council', to--
``(1) advise the Secretary on the development and updating
of guidelines for accurate reporting of greenhouse gas
sequestration from soil carbon and forest management actions;
``(2) evaluate the potential effectiveness of the
guidelines in verifying carbon inputs and outputs from
various soil carbon and forest management strategies;
``(3) estimate the effect of implementing the guidelines on
carbon sequestration and storage; and

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``(4) assist the Secretary in preparing the annual report
required by section 402(a) of the Carbon Storage and
Sequestration Act (including the assessment of the
vulnerability of forests and agricultural land to the adverse
effects of climate change).
``(c) Membership.--The Carbon Advisory Council shall be
composed of 21 members as follows:
``(1) The Secretary of Agriculture (or a designee).
``(2) The Secretary of Energy (or a designee).
``(3) The Secretary of the Interior (or a designee).
``(4) The Secretary of State (or a designee).
``(5) The Administrator of the Environmental Protection
Agency (or a designee).
``(6) The Chief of the Forest Service (or a designee)
``(7) 15 members appointed jointly by the Secretary of
Agriculture and the Secretary of Energy as follows:
``(A) 1 member representing professional forestry
organizations.
``(B) 2 members representing environmental or conservation
organizations.
``(C) 1 member representing nonindustrial private
landowners.
``(D) 1 member representing the forest industry.
``(E) 1 member representing Indian tribes.
``(F) 1 member representing forest workers.
``(G) 3 members representing the academic scientific
community.
``(H) 2 members representing State forestry organizations.
``(I) 2 members representing nongovernmental organizations
who have an expertise and experience in soil carbon
sequestration practices.
``(J) 1 member representing commercial agricultural
producers.
``(d) Term.--
``(1) In general.--Except as provided in paragraph (3), a
member of the Carbon Advisory Council appointed under
subsection (c)(7) shall be appointed for a term of 3 years.
``(2) Consecutive terms.--No individual appointed under
subsection (c)(7) may serve on the Carbon Advisory Council
for more than 2 consecutive terms.
``(3) Initial terms.--Of the members first appointed to the
Carbon Advisory Council under subsection (c)(7)--
``(A) 5 of the members shall be appointed for a term of 1
year;
``(B) 5 of the members shall be appointed for a term of 2
years; and
``(C) 5 of the members shall be appointed for a term of 3
years.
``(e) Vacancy.--
``(1) In general.--A vacancy on the Carbon Advisory Council
shall be filled in the same manner as the original
appointment was made.
``(2) Filling of unexpired term.--An individual chosen to
fill a vacancy shall be appointed for the unexpired term of
the member replaced.
``(f) Compensation.--
``(1) Non-federal employees.--A member of the Carbon
Advisory Council who is not an officer or employee of the
Federal Government shall be compensated at a rate equal to
the daily equivalent of the annual rate of basic pay
prescribed for level IV of the Executive Schedule under
section 5315 of title 5, United States Code, for each day
(including travel time) during which the member is engaged in
the performance of the duties of the Carbon Advisory Council.
``(2) Federal employees.--A member of the Carbon Advisory
Council who is an officer or employee of the Federal
Government shall serve without compensation in addition to
the compensation received for the services of the member as
an officer or employee of the Federal Government.
``(3) Travel Expenses.--A member of the Carbon Advisory
Council shall be allowed travel expenses, including per diem
in lieu of subsistence, at rates authorized for an employee
of an agency under subchapter I of chapter 57 of title 5,
United States Code, while away from the home or regular place
of business of the member in the performance of the duties of
the Carbon Advisory Council.
``(4) Support.--The Secretary shall provide financial and
administrative support to the Carbon Advisory Council.
``(g) Use of existing council.--The Secretary may designate
a council in existence as of the date of enactment of this
section to perform the tasks of the Carbon Advisory Council
if (as determined by the Secretary)--
``(1) the responsibilities of the Carbon Advisory Council,
as described in subsection (b), are a high priority for the
existing council; and
``(2) the representation, membership terms, background, and
responsibilities of the existing council correspond to the
requirements for the Carbon Advisory Council established
under subsections (c) and (d).
``(h) Duties.--
``(1) Review of guidelines.--Not later than 18 months after
the date of enactment of this section, the Carbon Advisory
Council shall--
``(A) review the guidelines established under section
1605(b)(1) that address procedures for the accurate voluntary
reporting of greenhouse gas sequestration from tree planting,
forest management actions, and agricultural land;
``(B) make recommendations to the Secretary to amend the
guidelines; and
``(C) before submitting the guidelines to the Secretary,
provide an opportunity for public comment on the guidelines.
``(2) Establishment of Guidelines.--
``(A) Reporting guidelines.--The recommendations under
paragraph (1)(B) shall include recommendations for reporting
guidelines that--
``(i) are based on--

``(I) measuring increases in carbon storage in excess of
the carbon storage that would have occurred but for
reforestation, forest management, forest protection, or other
soil carbon and forest management actions; and
``(II) comprehensive carbon accounting that reflects net
increases in the carbon reservoir and takes into account any
carbon emissions resulting from the disturbance of carbon
reservoirs existing at the beginning of a soil carbon or
forest management action; and

``(ii) include options for--

``(I) estimating the indirect effects of soil carbon and
forest management actions on carbon storage, including the
potential displacement of carbon emissions;
``(II) quantifying the expected carbon storage over various
time periods, as determined by the Secretary, taking into
account the duration of carbon stored in the carbon
reservoir; and
``(III) considering the economic and social effects of soil
carbon and forest management alternatives.

``(B) Accurate monitoring, measurement, and verification
guidelines.--
``(i) In general.--The recommendations under paragraph
(1)(B) shall include recommended practices for monitoring,
measurement, and verification of carbon storage from soil
carbon and forest management actions.
``(ii) Requirements.--The recommended practices shall, to
the maximum extent practicable--

``(I) be based on statistically sound sampling strategies
that build on knowledge of the carbon dynamics of forests and
agricultural land;
``(II) compute carbon stocks and changes in carbon stocks,
by taking field condition measurements and modeling;
``(III) include guidelines on how to sample and calculate
carbon sequestration across multiple participating
ownerships; and
``(IV) encourage the use of more precise measurements at
the option of a reporting entity.

``(C) State guidelines.--The recommendations under
paragraph (1)(B) shall include State guidelines for
reporting, monitoring, and verifying carbon storage under the
forest carbon program.
``(D) Biomass energy projects.--The recommendations under
paragraph (1)(B) shall include guidelines for calculating net
greenhouse gas reductions from biomass energy projects,
including--
``(i) net changes in carbon storage resulting from changes
in land use; and
``(ii) the effect of using biomass to generate electricity
(including co-firing of biomass with fossil fuels) on the
displacement of greenhouse gas emissions from fossil fuels.
``(3) Review of guidelines.--At least once every 24 months,
the Carbon Advisory Council shall meet to--
``(A) evaluate the latest scientific and observational
information on reporting, monitoring, and verification of
carbon storage from forest soil carbon and forest management
actions; and
``(B) recommend to the Secretary, revised guidelines for
reporting, monitoring, and verification of carbon storage
from soil carbon and forest management actions to reflect the
evaluation.
``(4) Compliance with other laws.--The Advisory Committee
shall meet, as necessary, to ensure that the guidelines for
reporting, monitoring, and verification of carbon storage
from forest management actions are revised to be consistent
with any Federal or State laws enacted after the date of
enactment of this section.''.

SEC. 102. NATIONAL INVENTORY AND VOLUNTARY REPORTING OF
GREENHOUSE GASES.

Section 1605(b) of the Energy Policy Act of 1992 (42 U.S.C.
13385(b)) is amended by adding at the end the following:
``(5) Amendment of guidelines.--Not later than 180 days
after receiving the recommendations of the Carbon Advisory
Council under subsection 1610(h)(1)(B), the Secretary (acting
through the Administrator of the Energy Information
Administration) shall, as appropriate, revise the guidelines
established under paragraph (1) to reflect the
recommendations of the Carbon Advisory Council.''.

TITLE II--FOREST CARBON MANAGEMENT

SEC. 201. FOREST CARBON STORAGE AND SEQUESTRATION.

The Global Climate Change Prevention Act of 1990 is amended
by inserting after section 2403 (7 U.S.C. 6702) the
following:

``SEC. 2404. FOREST CARBON MANAGEMENT.

``(a) Definitions.--In this section:
``(1) Carbon advisory council.--The term `Carbon Advisory
Council' means the Carbon Advisory Council established by
section 1610(b) of the Energy Policy Act of 1992.
``(2) Carbon storage.--The term `carbon storage' means the
quantity of carbon sequestered from the atmosphere and stored
in forest carbon reservoirs.
``(3) Forest carbon program.--The term `forest carbon
program' means the program established under subsection (b)
to provide financial assistance for forest carbon activities
through--
``(A) cooperative agreements; and
``(B) State revolving loan funds.

[[Page S8287]]

``(4) Forest carbon reservoir.--The term `forest carbon
reservoir' means--
``(A) trees, roots, soils, or other biomass associated with
forest ecosystems; and
``(B) products from the biomass that store carbon.
``(5) Forest land--
``(A) In general.--The term `forest land' means land that
is, or has been, at least 10 percent stocked by forest trees
of any size.
``(B) Inclusions.--The term `forest land' includes--
``(i) land on which forest cover may be naturally or
artificially regenerated; and
``(ii) a transition zone between a forested area and
nonforested area that is capable of sustaining forest cover.
``(6) Forest management action.--
``(A) In general.--The term `forest management action'
means an action that--
``(i) applies forestry principles to the regeneration,
management, use, and conservation of forests to meet specific
goals and objectives; and
``(ii) maintains the productivity of the forests.
``(B) Inclusions.--The term `forest management action'
includes management of forests for the benefit of--
``(i) aesthetics;
``(ii) fish;
``(iii) recreation;
``(iv) urban values;
``(v) water;
``(vi) wilderness;
``(vii) wildlife;
``(viii) wood products; and
``(ix) other forest values.
``(7) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Health Care
Improvement Act (25 U.S.C. 1603).
``(8) Invasive species.--The term `invasive species' means
a species that is not native to an ecosystem, the
introduction of which may cause harm to the economy, the
environment, or human health.
``(9) Nonindustrial private forest.--The term
`nonindustrial private forest' means forest land that is
privately owned by a person that--
``(A) does not control a forest products manufacturing
facility; and
``(B) manages the land solely for the purposes of timber
production.
``(10) Reforestation.--
``(A) In general.--The term `reforestation' means the
reestablishment of forest cover naturally or artificially.
``(B) Inclusions.--The term `reforestation' includes--
``(i) planned replanting;
``(ii) reseeding; and
``(iii) natural regeneration.
``(11) Revolving loan program.--The term `revolving loan
program' means a State revolving loan program established
under subsection (b)(2)(A).
``(12) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting through the Chief of the Forest
Service.
``(b) Forest Carbon Program.--
``(1) Cooperative Agreement.--The Secretary may enter into
a cooperative agreement with willing landowners who are State
or local governments, Indian tribes, private, nonprofit
entities, [and other persons] to carry out forest carbon
activities on private land, State land, Indian tribe land,
[or private land.]
``(2) Revolving Loan Program.--
``(A) In general.--In collaboration with State Foresters
and representatives of nongovernmental organizations, the
Secretary shall provide assistance to States to establish a
revolving loan program to carry out forest carbon activities
on nonindustrial private forest land.
``(B) Eligibility.--An owner of nonindustrial private
forest land shall be eligible for assistance from a revolving
loan fund for forest carbon activities on not more than a
total of 5,000 acres of nonindustrial private forest land of
the owner.
``(C) Loan terms.--
``(i) In general.--To be eligible for a loan under this
section, an owner of nonindustrial private forest land shall
enter into a loan agreement with the State.
``(ii) Interest rate.--The loan agreement shall have loan
interest rates that are established by the State--

``(I) to encourages participation of nonindustrial private
forest landowners in the revolving loan program;
``(II) to provide a net rate of return of not more than 3
percent; and
``(III) to further the objectives of this section.

``(iii) Repayment.--The loan agreement shall require that
loan obligations be repaid to the State--

``(I)(aa) at the time of harvest of land covered by the
revolving loan program; or
``(bb) in accordance with a repayment schedule determined
by the State; and
``(II) at a rate proportional to the percentage decrease of
carbon stock.

``(iv) Insurance.--The loan agreement shall include
provisions that provide for private insurance, or that
release the owner from the financial obligation for any
portion of the timber, forest products, or other biomass
that--

``(I) is lost to insects, disease, fire, storm, flood, or
other circumstance beyond the control of the owner; or
``(II) cannot be harvested because of restrictions on tree
harvesting imposed by the applicable Federal, State, or local
government after the date of the loan agreement.

``(v) Lien.--The loan agreement shall--

``(I) impose a lien on all timber, forest products, and
biomass produced on land covered by the loan agreement; and
``(II) provide an assurance that the terms of the lien
shall transfer with the land on sale, lease, or transfer of
the land.

``(vi) Buyout option.--The loan agreement shall include a
buyout option that specifies the financial terms under which
the owner may terminate the agreement--

``(I) before harvesting timber from the stand established
with loan funds; and
``(II) by repaying the loan with interest.

``(vii) Attribution.--The loan agreement shall provide
that, until the loan is paid in full by the participating
owner or otherwise terminated in accordance with this
section, all reductions in atmospheric greenhouse gases
achieved as the result of the loan shall be attributed to any
non-Federal entities that provide funding for the loan
(including the State or any other person or nongovernmental
organization that provides funding to the State for the
issuance of the loan).
``(viii) Monitoring and Verification.--The loan agreement
shall include provisions for the monitoring and verification
of carbon storage.
``(D) Permanent conservation easement.--
``(i) In general.--A borrower may donate to the State or to
another appropriate entity a permanent conservation easement
that--

``(I) furthers the objectives of this section, including
managing the land in a manner that maximizes the forest
carbon reservoir of the land; and
``(II) permanently protects the covered private forest land
and resources at a level above that required under applicable
Federal, State, and local law.

``(ii) Terms.--A permanent conservation easement under
clause (i) may permit the continuation of forest management
actions that--

``(I) increase carbon storage on the land and forest; or
``(II) furthers the objectives of this section.

``(iii) Effect on loan agreement.--

``(I) Required cancellation.--If the borrower donates to
the State a permanent conservation easement under clause (i),
the State shall cancel--

``(aa) the loan agreement under subparagraph (C); and
``(bb) any liens on the timber, forest products, and
biomass under subparagraph (C)(v).

``(II) Permissible cancellation.--If the borrower donates
to another appropriate entity a permanent conservation
easement under clause (i), the State may cancel--

``(aa) the loan agreement under subparagraph (C); and
``(bb) any liens on the timber, forest products, and
biomass under subparagraph (C)(v).
``(E) Reinvestment of funds.--Any funds collected under a
loan issued under this section (including loan repayments,
loan buyouts, and any interest payments) shall be--
``(i) reinvested by the State in the revolving loan
program; and
``(ii) used by the State to make additional loans under the
revolving loan program.
``(F) Records.--The State Forester of a State shall--
``(i) maintain all records related to any loan agreement
funded by a revolving loan fund of the State; and
``(ii) make the records available to the public.
``(G) Matching funds.--
``(i) In general.--Beginning the second year in which a
State participates in the revolving loan program, and each
year thereafter, to be eligible to receive Federal funds
under this subsection a State shall provide matching non-
Federal funds equal to at least 25 percent of the Federal
funds made available to the State for the revolving loan
program.
``(ii) Administration.--The State shall--

``(I) provide matching funds in the form of cash, in-kind
administrative services, or technical assistance; and
``(II) establish procedures to ensure accountability for
the use of Federal funds.

``(H) Loan funding distribution.--
``(i) Formula.--Not later than 180 days after the date of
enactment of this section, the Secretary, in consultation
with State Foresters, shall--

``(I) establish a formula under which Federal funds shall
be distributed under this section among eligible States; and
``(II) submit to Congress a report on the formula
(including the methodology used to establish the formula).

``(ii) Basis.--The formula shall--

``(I) be based on maximizing the potential for meeting the
objectives of this section;
``(II) consider--

``(aa) the acreage of un-stocked or under-producing private
forest land in each State;
``(bb) the potential productivity of the land;
``(cc) the potential long-term carbon storage of the land;
``(dd) the potential to achieve other environmental
benefits;
``(ee) the number of owners eligible for loans under this
section in each State; and
``(ff) the need for reforestation, timber stand
improvement, or other forestry investments consistent with
the objectives of this section; and

``(III) provide a priority to States that have experienced
or are expected to experience significant declines in
employment levels in the forestry industry because of
declining timber harvests on Federal land.

[[Page S8288]]

``(I) Private funding.--A revolving loan fund may accept
and distribute as loans any funds provided by nongovernmental
organizations or persons to carry out this section.
``(J) Bonneville power administration.--
``(i) In general.--The States of Washington, Oregon, Idaho,
and Montana may apply for funding from the Bonneville Power
Administration for purposes of funding loans that meet--

``(I) the objectives of this section; and
``(II) the fish and wildlife objectives of the Bonneville
Power Administration under the Pacific Northwest Electric
Power Planning and Conservation Act (16 U.S.C. 839 et seq.).

``(ii) Application of requirements under other law.--An
application under clause (i) shall be subject to all rules
and procedures established by the--

``(I) Pacific Northwest Electric Power and Conservation
Planning Council; and
``(II) the Bonneville Power Administration under the
Pacific Northwest Electric Power Planning and Conservation
Act (16 U.S.C. 839 et seq.).

``(3) Eligible forestry carbon activities.--
``(A) In general.--An owner may use a loan or other funds
provided under this section to carry out eligible forestry
carbon activities (as determined by the Secretary) that--
``(i)(I) help restore under-producing or understocked
forest land;
``(II) provide for protection of forests from nonforest
use; or
``(III) allow a variety of sustainable management
alternatives; and
``(ii) have no net negative impact on watersheds and fish
and wildlife habitats.
``(B) Assistance.--The Secretary, in collaboration with
State Foresters, shall provide guidance on eligible forestry
carbon activities under this subsection.
``(C) Application of other laws.--Funding shall not be
provided under this section for activities required under
other applicable Federal, State, or local laws.
``(D) Pre-agreement activities.--Funding shall not be
provided for costs incurred before entering into a
cooperative agreement or loan agreement under this section.
``(E) Limitation on land considered for funding.--No owner
shall enter into a loan agreement under this section to fund
reforestation of land harvested after the date of enactment
of this section if the owner received revenues from the
harvest that are sufficient to reforest the land.
``(F) Eligible tree species.--
``(i) Invasive species.--Selection of tree species for loan
projects under this paragraph shall be consistent with
Executive Order No. 13112 (42 U.S.C. 4321 note).
``(ii) Program funding.--Funding for reforestation
activities under this section may be provided for--

``(I) tree species native to a region;
``(II) tree species that formerly occupied the site; or
``(III) nonnative tree species or hybrids that are
noninvasive.

``(G) Forest-management plan.--Priority shall be provided
under this section to projects on land under a forestry
management plan or forest stewardship plan that is consistent
with the objectives of the carbon storage program.
``(H) Use of funds.--
``(i) Permitted uses.--Funds under this section may be used
to--

``(I) pay the cost of purchasing and planting tree
seedlings; and
``(II) pay other costs associated with the planted trees,
including the cost of--

``(aa) planning;
``(bb) site preparation;
``(cc) forest management;
``(dd) monitoring;
``(ee) measurement and verification; and
``(ff) consultant and contractor fees.
``(ii) Prohibited uses.--Funds under this section shall not
be used to--

``(I) pay for the labor of the owner; or
``(II) purchase capital items or expendable items, such as
vehicles, tools, and other equipment.

``(I) Amount of financial assistance.--The amount of
financial assistance provided to an owner under this section
shall not exceed--
``(i) 100 percent of total project costs of the owner,
including funds received from any other source; or
``(ii) $100,000 during any 2-year period.
``(J) Federal funding.--During fiscal years 2001 through
2010, civil penalties collected under section 113 of the
Clean Air Act (42 U.S.C. 7413) and under section 309(d) of
the Federal Water Pollution Control Act (33 U.S.C. 1319(d))
shall be available, without further act of appropriation, to
fund cooperative agreements and revolving loan funds
authorized under this section.
``(4) Allocation of funds.--The Secretary shall allocate--
``(A) not less than 15 percent of available funds for
cooperative agreements described in paragraph (1); and
``(B) after determining that States have implemented a
system to administer loans made under paragraph (2) in
accordance with this section, 85 percent of available funds
for State revolving loan programs.

TITLE III--CARBON SEQUESTRATION PROGRAM

SEC. 301. ESTABLISHMENT.

Subtitle D of title XII of the Food Security Act of 1985
(16 U.S.C. 3830 et seq.) is amended by inserting after
chapter 1 the following:

``CHAPTER 2--CARBON SEQUESTRATION PROGRAM

``SEC. 1238. CARBON SEQUESTRATION PROGRAM.

``(a) In General.--Effective beginning with the 2002
calendar year, the Secretary, acting through the Chief of the
Natural Resources Conservation Service, shall establish a
carbon sequestration program to permit owners and operators
of land located in the United States to enroll the land in
the program to increase the sequestration of carbon.
``(b) Eligible Land.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary may include in the program established under this
chapter any land, as determined by the Secretary.
``(2) Conservation reserve land and wetlands reserve
land.--The Secretary may include in the carbon sequestration
program land that is enrolled in the conservation reserve
program or the wetlands reserve program established under
subchapters B and C, respectively, of chapter 1, if the owner
or operator of the land has not received any payments under
the program for the implementation of carbon sequestration
measures on the land.
``(c) Maximum Enrollment.--The Secretary may maintain up to
20,000,000 acres of land in the United States in the carbon
sequestration program at any 1 time during a calendar year.
``(d) Duration of Contract.--
``(1) In general.--For the purpose of carrying out this
chapter, the Secretary shall enter into contracts of not less
than 10 years.
``(2) Certain land.--In the case of land devoted to
hardwood trees, shelterbelts, windbreaks, or wildlife
corridors under a contract entered into under this chapter,
the owner or operator of the land may, within the limitations
prescribed under this section, specify the duration of the
contract.

``SEC. 1238A. CARBON SEQUESTRATION PRACTICES.

``(a) Criteria for Evaluating Carbon Sequestration
Practices.--
``(1) In general.--The Carbon Advisory Council established
under section 1610(b) of the Energy Policy Act of 1992 shall
develop, and propose to the Secretary, criteria for
determining the acceptability of, and evaluating, practices
by owners and operators that will increase the sequestration
of carbon for the purposes of determining the acceptability
of contract offers made by the owners and operators.
``(2) Content.--The criteria shall address--
``(A) forest preservation and restoration and
afforestation;
``(B) biodiversity enhancement;
``(C) the use of acreage to produce high-storage crops;
``(D) soil erosion management;
``(E) soil fertility restoration;
``(F) wetland restoration;
``(G) no-till farming practices;
``(H) conservation buffers;
``(I) improved cropping systems with winter cover crops;
and
``(J) any other conservation practices that the Secretary
determines to be appropriate for increasing carbon
sequestration.
``(3) Regulations.--The Secretary, acting through the Chief
of the Natural Resources Conservation Service and the Chief
of the Forest Service, by regulation, shall establish
criteria described in paragraphs (1) and (2).
``(b) Acceptability of Carbon Sequestration Practices.--
``(1) In general.--As part of a contract offer accepted
under this chapter, the owner or operator shall agree to
carry out on land enrolled in the program established under
this chapter carbon sequestration practices proposed by the
owner or operator that (as determined by the Secretary)--
``(A) provide for additional sequestration beyond that
which would be provided in the absence of enrollment of the
land in the program; and
``(B) contribute to a positive reduction of greenhouse
gases in the atmosphere through sequestration over at least a
10-year period.
``(2) Maximum sequestration benefits.--In determining the
acceptability of contract offers, the Secretary shall take
into consideration the extent to which enrollment of the land
that is the subject of the contract offer would provide the
maximum sequestration benefits under the criteria developed
under subsection (a).
``(c) Compliance With Carbon Sequestration Contracts.--
``(1) In general.--As part of a contract offer accepted
under this chapter, an owner or operator of land shall permit
the Secretary to verify that the owner or operator is
implementing practices that sequester carbon in accordance
with the contract, including an actual verification of the
practices at least once every 5 years and such random
inspections as are necessary.
``(2) Fraud or false statements.--Section 1001 of title 18,
United States Code, shall apply to a statement,
representation, writing, or document provided by an owner or
operator under this subsection.
``(3) Confidentiality.--Information provided by an owner or
operator under this subsection shall be considered to be
confidential information for the purposes of section
552(b)(4) of title 5, United States Code.
``(d) Monitoring.--The Secretary, in consultation with the
Administrator of the Energy Information Administration, shall
develop forms to monitor sequestration improvements made as a
result of the program established under this chapter and
distribute the forms to owners and operators of land enrolled
in the program.

[[Page S8289]]

``(e) Educational Outreach.--In consultation with the
Consortium for Agricultural Soils Mitigation of Greenhouse
Gases, the Secretary, acting through the Extension Service,
shall conduct an educational outreach program to collect and
disseminate to owners and operators of land research-based
information on agricultural practices that will increase the
sequestration of carbon, while preserving the social and
economic well-being of the owners and operators.

``SEC. 1238B. DUTIES OF OWNERS AND OPERATORS.

``(a) In General.--Under the terms of a contract entered
into under this chapter, during the term of the contract, an
owner or operator of a farm or ranch shall agree--
``(1) to implement a plan approved by the Secretary for
carrying out on land subject to the contract practices that
will increase the sequestration of carbon, substantially in
accordance with a schedule, covering a period of not less
than 10 years, that is outlined in the plan;
``(2) to place land subject to the contract in the carbon
sequestration program established under this chapter;
``(3) in addition to the remedies provided under section
1238F(d), on the violation of a term or condition of the
contract at any time at which the owner or operator has
control of the land--
``(A) to forfeit all rights to receive rental payments and
cost-sharing payments under the contract and to refund to the
Secretary any rental payments and cost-sharing payments
received by the owner or operator under the contract, and
interest on the payments as determined by the Secretary,
if the Secretary determines that the violation is of such
nature as to warrant termination of the contract; or
``(B) to refund to the Secretary, or accept adjustments to,
the rental payments and cost-sharing payments provided to the
owner or operator, as the Secretary considers appropriate, if
the Secretary determines that the violation does not warrant
termination of the contract;
``(4) on the transfer of the right and interest of the
owner or operator in land subject to the contract--
``(A)(i) to forfeit all rights to rental payments and cost-
sharing payments under the contract; and
``(ii) to refund to the United States all rental payments
and cost-sharing payments received by the owner or operator,
or accept such payment adjustments or make such refunds
as the Secretary considers appropriate and consistent with
the objectives of this chapter; unless
``(B)(i) the transferee of the land agrees with the
Secretary to assume all obligations of the contract;
``(ii) the land is purchased by or for the United States
Fish and Wildlife Service; or
``(iii) the transferee and the Secretary agree to
modifications to the contract that are consistent with the
objectives of the program, as determined by the Secretary;
``(5) not to adopt any practice specified by the Secretary
in the contract as a practice that would tend to defeat the
purposes of this chapter; and
``(6) to comply with such additional provisions as the
Secretary determines are desirable and are included in the
contract to carry out this chapter or to facilitate the
practical administration of this chapter.
``(b) Plan.--The plan referred to in subsection (a)(1)--
``(1) shall specify the carbon sequestration practices to
be carried out by the owner or operator during the term of
the contract; and
``(2) may provide for the permanent retirement of any
existing cropland base and allotment history for the land.
``(c) Foreclosure.--
``(1) In general.--Notwithstanding any other provision of
law, an owner or operator that is a party to a contract
entered into under this chapter may not be required to make
repayments to the Secretary of amounts received under the
contract if--
``(A) the land that is subject to the contract has been
foreclosed on; and
``(B) the Secretary determines that forgiving the
repayments is appropriate in order to provide fair and
equitable treatment.
``(2) Resumption of control.--
``(A) In general.--This subsection shall not void the
responsibilities of such an owner or operator under the
contract if the owner or operator resumes control over the
land that is subject to the contract within the period
specified in the contract.
``(B) Contract applicability.--On the resumption of the
control over the land by the owner or operator, the
provisions of the contract in effect on the date of the
foreclosure shall apply.

``SEC. 1238C. DUTIES OF THE SECRETARY.

``In return for a contract entered into by an owner or
operator under section 1238B, the Secretary shall--
``(1) share the cost of carrying out on the land carbon
sequestration practices specified in the contract for which
the Secretary determines that cost sharing is appropriate and
in the public interest;
``(2) for a period of years not in excess of the term of
the contract, pay an annual rental payment in an amount
necessary to compensate for--
``(A) the use of carbon sequestration practices on the
land; and
``(B) the retirement of any cropland base and allotment
history that the owner or operator agrees to retire
permanently; and
``(3) provide conservation technical assistance to assist
the owner or operator in carrying out the contract.

``SEC. 1238D. PAYMENTS.

``(a) Time of Payment.--The Secretary shall provide payment
for obligations incurred by the Secretary under a contract
entered into under this chapter--
``(1) with respect to any cost-sharing payment obligation
incurred by the Secretary, as soon as practicable after the
obligation is incurred; and
``(2) with respect to any annual rental payment obligation
incurred by the Secretary--
``(A) as soon as practicable after October 1 of each
calendar year; or
``(B) at the option of the Secretary, at any time before
that date during the year in which the obligation is
incurred.
``(b) Cost-Sharing Payments.--
``(1) In general.--In making cost-sharing payments to an
owner or operator under a contract entered into under this
chapter, the Secretary shall pay not more than 50 percent of
the cost of carrying out carbon sequestration practices
required under the contract for which the Secretary
determines that cost-sharing is appropriate and in the public
interest.
``(2) Maximum amount.--The Secretary shall not make any
payment under this chapter to the extent that the total
amount of cost-sharing payments provided to an owner or
operator for carbon sequestration practices from all sources
would exceed 100 percent of the total cost of carrying out
the practices.
``(3) Other federal assistance.--An owner or operator shall
not be eligible to receive or retain cost-share assistance
for land under this subsection if the owner or operator
receives any other Federal cost-share assistance under this
subsection with respect to the land under any other provision
of law.
``(c) Rental Payments.--
``(1) In general.--In determining the amount of annual
rental payments to be paid to owners and operators for
carrying out carbon sequestration practices, the Secretary
may consider, among other factors, the amount necessary to
encourage owners or operators of land to participate in the
program established by this chapter.
``(2) Bids or other means.--The amounts payable to owners
or operators in the form of rental payments under contracts
entered into under this chapter may be determined through--
``(A) the submission of bids for such contracts by owners
and operators in such manner as the Secretary may prescribe;
or
``(B) such other means as the Secretary determines are
appropriate.
``(3) Factors.--In determining the acceptability of
contract offers, the Secretary--
``(A) shall take into consideration the extent to which
enrollment of the land that is the subject of the contract
offer would increase the sequestration of carbon in
accordance with section 1238A;
``(B) may take into consideration the extent to which
enrollment of the land that is the subject of the contract
offer would improve soil resources, water quality, or
wildlife habitat, or provide other environmental benefits;
and
``(C) may establish different criteria in various States
and regions of the United States based on the extent to which
the sequestration of carbon, water quality, or wildlife
habitat may be improved or erosion may be abated.
``(d) Form of Payment.--
``(1) In general.--Except as otherwise provided in this
section, payments under this chapter--
``(A) shall be made in cash or in the form of in-kind
commodities in such amount and on such time schedule as is
agreed on by the owner or operator and specified in the
contract; and
``(B) may be made in advance of determination of
performance.
``(2) In-kind commodities.--If the payment is made with in-
kind commodities, the payment shall be made by the Commodity
Credit Corporation--
``(A) by delivery of the commodity involved to the owner or
operator at a warehouse or other similar facility located in
the county in which the land subject to the contract is
located or at such other location as is agreed to by the
Secretary and the owner or operator;
``(B) by the transfer of negotiable warehouse receipts; or
``(C) by such other method, including the sale of the
commodity in commercial markets, as is determined by the
Secretary to be appropriate to enable the owner or operator
to receive efficient and expeditious possession of the
commodity.
``(3) Substitution in cash.--If stocks of a commodity
acquired by the Commodity Credit Corporation are not readily
available to make full payment in kind to the owner or
operator, the Secretary may substitute full or partial
payment in cash for payment in kind.
``(4) State carbon sequestration program.--Payments to an
owner or operator under a special carbon sequestration
program described in subsection (f)(4) shall be in the form
of cash only.
``(e) Payment to Others.--If an owner or operator that is
entitled to a payment under a contract entered into under
this chapter

[[Page S8290]]

dies, becomes incompetent, is otherwise unable to receive a
payment under this chapter, or is succeeded by another person
that renders or completes the required performance, the
Secretary shall make the payment, in accordance with
regulations promulgated by the Secretary and without regard
to any other provision of law, in such manner as the
Secretary determines is fair and reasonable in light of all
the circumstances.
``(f) Payment Limitations.--
``(1) Total amount.--The total amount of rental payments,
including rental payments made in the form of in-kind
commodities, made to a person under this chapter for any
fiscal year may not exceed $50,000.
``(2) Amount per acre.--The amount of rental payments made
to a person under this chapter for any fiscal year may not
exceed $20 per acre.
``(3) Regulations.--
``(A) In general.--The Secretary shall issue regulations--
``(i) defining the term `person' as used in this
subsection; and
``(ii) prescribing such rules as the Secretary determines
are necessary to ensure a fair and reasonable application of
the limitation contained in this subsection.
``(B) Corporations.--The regulations issued by the
Secretary on December 18, 1970, under section 101 of the
Agricultural Act of 1970 (7 U.S.C. 1307) shall be used to
determine whether corporations and their stockholders may be
considered to be separate persons under this subsection.
``(4) Other payments.--Rental payments received by an owner
or operator shall be in addition to, and shall not affect,
the total amount of payments that the owner or operator is
otherwise eligible to receive under--
``(A) the Federal Agriculture Improvement and Reform Act of
1996 (Public Law 104-127), including the Agricultural Market
Transition Act (7 U.S.C. 7201 et seq.);
``(B) the Food, Agriculture, Conservation, and Trade Act of
1990 (Public Law 101-624); or
``(C) the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).
``(5) State carbon sequestration program.--
``(A) In general.--This subsection and section 1305(f) of
the Agricultural Reconciliation Act of 1987 (7 U.S.C. 1308
note; Public Law 100-203) shall not be applicable to payments
received by a State, political subdivision, or agency of a
State or political subdivision in connection with agreements
entered into under a special carbon sequestration program
carried out by that entity that has been approved by the
Secretary.
``(B) Payments to states and political subdivisions.--The
Secretary may enter into such agreements for payments to
States, political subdivisions, or agencies of States or
political subdivisions as the Secretary determines will
advance the purposes of this chapter.
``(g) Exemption From Automatic Sequester.--Notwithstanding
any other provision of law, no order issued for any fiscal
year under section 252 of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 902) shall
affect any payment under this chapter.
``(h) Other Assistance.--In addition to any payment under
this chapter, an owner or operator may receive cost-share
assistance, rental payments, or tax benefits from a State or
political subdivision of a State for enrolling land in the
carbon sequestration program.
``(i) Treatment of Payments.--Payments received by an owner
or operator under this chapter shall be considered rentals
from real estate for the purposes of section 1402(a)(1) of
the Internal Revenue Code of 1986.

``SEC. 1238E. CHANGES IN OWNERSHIP; MODIFICATION OR
TERMINATION OF CONTRACTS.

``(a) Changes in Ownership.--
``(1) In general.--Subject to paragraphs (2) and (3), no
contract shall be entered into under this chapter concerning
land with respect to which the ownership has changed in the
1-year period preceding the first year of the contract period
unless--
``(A) the new ownership was acquired by will or succession
as a result of the death of the previous owner;
``(B) the new ownership was acquired before April 1, 2001;
``(C) the Secretary determines that the land was acquired
under circumstances that give adequate assurances that the
land was not acquired for the purpose of enrolling the land
in the carbon sequestration program; or
``(D) the ownership change occurred because of foreclosure
on the land and the owner of the land immediately before the
foreclosure exercises a right of redemption from the mortgage
holder in accordance with State law.
``(2) Limitations.--Paragraph (1) shall not--
``(A) prohibit the continuation of an agreement by a new
owner after an agreement has been entered into under this
chapter; or
``(B) require a person to own the land as a condition of
eligibility for entering into the contract if the person--
``(i) has operated the land to be covered by a contract
under this section for at least 1 year preceding the later
of--

``(I) the date of the contract; or
``(II) April 1, 2001; and

``(ii) controls the land for the contract period.
``(3) Options for new owner or operator.--If, during the
term of a contract entered into under this chapter, an owner
or operator of land subject to the contract sells or
otherwise transfers the ownership or right of occupancy of
the land, the new owner or operator of the land may--
``(A) continue the contract under the same terms or
conditions;
``(B) enter into a new contract in accordance with this
chapter; or
``(C) elect not to participate in the program established
by this chapter.
``(b) Modification of Contracts.--The Secretary may modify
a contract entered into with an owner or operator under this
chapter if--
``(1) the owner or operator agrees to the modification; and
``(2) the Secretary determines that the modification is
desirable--
``(A) to carry out this chapter;
``(B) to facilitate the practical administration of this
chapter; or
``(C) to achieve such other goals as the Secretary
determines are appropriate, consistent with this chapter.
``(c) Termination of Contracts.--
``(1) In general.--The Secretary may terminate a contract
entered into with an owner or operator under this chapter
if--
``(A) the owner or operator agrees to the termination; and
``(B) the Secretary determines that the termination would
be in the public interest.
``(2) Congressional notice.--Not later than 90 days before
taking any action to terminate under paragraph (1) a contract
entered into under this chapter, the Secretary shall provide
to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate written notice of the action.

``SEC. 1238F. BASE HISTORY.

``(a) In General.--A reduction, based on a ratio between
the total cropland acreage on the farm and the acreage placed
in the carbon sequestration program authorized by this
chapter, as determined by the Secretary, shall be made during
the period of the contract, in the aggregate, in crop bases,
quotas, and allotments on the farm with respect to crops for
which there is a production adjustment program.
``(b) Preservation of Base and Allotment History.--
Notwithstanding sections 1211 and 1221, the Secretary, by
regulation, may provide for preservation of cropland base and
allotment history applicable to acreage on which carbon
sequestration practices are carried out under this section,
for the purpose of any Federal program under which the
history is used as a basis for participation in the program
or for an allotment or other limitation in the program,
unless the owner and operator agree under the contract to
retire permanently that cropland base and allotment history.
``(c) Extension of Base and Allotment History.--
``(1) In general.--The Secretary shall offer the owner or
operator of a farm or ranch an opportunity to extend the
preservation of cropland base and allotment history under
subsection (b) for such time as the Secretary determines is
appropriate after the expiration date of a contract under
this chapter at the request of the owner or operator.
``(2) Conditions.--In return for the extension, the owner
or operator shall agree to continue to abide by the terms and
conditions of the original contract, except that the owner
or operator shall receive no additional cost share, annual
rental, or bonus payment.
``(d) Violation of Contracts.--In addition to any other
remedy prescribed by law, the Secretary may reduce or
terminate the quantity of cropland base and allotment history
preserved under this section for acreage with respect to
which there has occurred a violation of a term or condition
of a contract entered into under this chapter.

``SEC. 1238G. CARBON MONITORING PILOT PROGRAMS.

``(a) Establishment.--
``(1) In general.--The Secretary, in cooperation with the
Consortium for Agricultural Soils Mitigation of Greenhouse
Gases, shall carry out 4 or more pilot programs to develop,
demonstrate, and verify the best management practices for
carbon monitoring on agricultural land.
``(2) Criteria.--The Secretary shall select pilot programs
based on--
``(A) the merit of the proposed program; and
``(B) the diversity of soil sequestration types available
at the site of the proposed program.
``(b) Requirements.--Pilot programs carried out under this
section shall--
``(1) involve agricultural producers in the development and
verification of best management practices for carbon
monitoring on agricultural land;
``(2) involve research and testing of the best management
practices in various soil types and climactic zones;
``(3) analyze the effects of the adoption of the best
management practices on watershed levels; and
``(4) use the results of the research conducted under the
program to--
``(A) encourage agricultural producers to adopt the best
management practices;
``(B) analyze the economic impact of the best management
practices; and
``(C) develop the best management practices on a regional
basis for watersheds and States not participating in the
pilot programs.

``SEC. 1238H. FUNDING.

``The Secretary shall use to carry out this chapter
(including to pay administrative

[[Page S8291]]

costs incurred by the Natural Resources Conservation Service
in carrying out this chapter)--
``(1) funds of the Commodity Credit Corporation made
available under section 1241(a)(3); and
``(2) at the option of, and transfer by, another Federal
agency, funds of the agency that are available to the agency
for climate change initiatives or greenhouse gas emission
reductions.''.

SEC. 302. FUNDING.

Section 1241(a)(3) of the Food Security Act of 1985 (16
U.S.C. 3841(a)(3)) is amended by striking ``chapter 4'' and
inserting ``chapters 2 and 4''.

SEC. 303. REGULATIONS.

(a) Proposed Regulations.--Not later than 180 days after
the date of enactment of this title, the Secretary of
Agriculture shall publish in the Federal Register proposed
regulations for carrying out this title and the amendments
made by this title.
(b) Final Regulations.--Not later than 60 days after the
date of publication of the proposed regulations, the
Secretary shall promulgate final regulations for carrying out
this title and the amendments made by this title.

SEC. 304. EFFECTIVE DATES.

(a) In General.--Except as provided in subsection (b), this
title and the amendments made by this title take effect on
January 1, 2002.
(b) Regulations.--Section 203 takes effect on the date of
enactment of this title.

TITLE IV--REPORTS

SEC. 401. INITIAL REPORT.

(a) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Energy, in
consultation with the Secretary of Agriculture and other
appropriate Federal agencies, shall submit to Congress a
report on--
(1) the quantity of carbon contained in the forest carbon
reservoir of the National Forest System and the methodology
and assumptions used to determine that quantity;
(2) the potential to increase the quantity of carbon in the
National Forest System and provide positive impacts on
watersheds and fish and wildlife habitats through forest
management actions;
(3) the role of forests in the carbon cycle; and
(4) the contributions of United States forestry to the
global carbon budget.
(b) Contents.--The report shall include an assessment of
the impact of forest management actions on timber harvests,
wildlife habitat, recreation, forest health, and other
statutory objectives of National Forest System management.

SEC. 402. ANNUAL REPORT.

(a) In general.--The Secretary of Agriculture, acting
through the Chief of the Forest Service, and the Secretary of
Energy shall jointly submit an annual report on the results
of the carbon storage program under section 2404(b) of the
Global Climate Change Prevention Act of 1990 and carbon
sequestration program under section 1238 of the Food Security
Act of 1985 to--
(1) the Committee on Agriculture of the House of
Representatives;
(2) the Committee on Agriculture, Nutrition and Forestry of
the Senate;
(3) the Committee on Resources of the House of
Representatives; and
(4) the Committee on Energy and Natural Resources of the
Senate.
(b) Guidelines.--The Secretary of Agriculture, in
consultation with the Carbon Advisory Council established
under section 1610(b) of the Energy Policy Act of 1992, shall
develop guidelines for the annual report that--
(1) require a statement of the quantity of carbon storage
realized;
(2) include the data used to monitor and verify the carbon
storage;
(3) are consistent with reporting requirements of the
Energy Information Administration; and
(4) prevent soil carbon and forest carbon management
actions from being counted twice.
(c) Contents.--The report shall include--
(1) the information required by the guidelines developed
under section 1610(h) of the Energy Policy Act of 1992;
(2) an assessment of the effectiveness of carbon monitoring
and verification;
(3) a report on carbon activities associated with
cooperative agreements for the forest carbon program under
section 2404(b)(1) of the Global Climate Change Prevention
Act of 1990;
(4) a State forest carbon program compliance report
established by--
(A) reviewing reports submitted by States under section
403;
(B) verifying compliance with the guidelines developed
under subsection 1610(h) of the Energy Policy Act of 1992;
(C) notifying the State of compliance status;
(D) notifying the State of any corrections that are needed
to attain compliance; and
(E) establishing an opportunity for resubmission by the
State; and
(5) an assessment of the effectiveness of the carbon
sequestration program established under section 1238 of the
Food Security Act of 1985, including a report on--
(A) sequestration improvements made as a result of the
carbon sequestration program;
(B) sequestration practices on land enrolled in the carbon
sequestration program; and
(C) compliance with contracts entered into under the carbon
sequestration program.

SEC. 403. STATE REPORT.

Entities participating in cooperative agreements for forest
carbon programs under section 2404(b)(1) of the Global
Climate Change Prevention Act of 1990, and States receiving
assistance to establish a revolving loan fund under section
2404(b)(2) of that Act, shall--
(1) monitor and verify carbon storage achieved under the
forest carbon program in accordance with guidelines developed
under section 1610(h)(2) of the Energy Policy Act of 1992;
and
(2) submit an annual report on the results of the carbon
storage program to--
(A) the Secretary of Agriculture; and
(B) any nongovernmental organization or person that
provides funding for the carbon storage program.
____

The Carbon Sequestration and Reporting Act--Bill Summary

SUMMARY

The purposes of the bill are to develop monitoring and
verification systems for carbon reporting in forestry and
agricultural soils, to increase carbon sequestration in
forests and agricultural soils by encouraging private sector
investment in forestry and conservation in agriculture, and
to promote both the forestry and agriculture economies in the
United States. This bill is a combination of two previously
introduced bills, S. 820 and S. 785, introduced by Senators
Wyden and Brownback respectively.
Title I: Carbon Advisory Council: Guidelines for Accurate
Carbon Accounting for Forests. The bill directs the Secretary
of Energy and the Secretary of Agriculture, through the
Forest Service, to establish scientifically-based guidelines
for accurate reporting, monitoring, and verification of
carbon storage from forest management actions. The bill
establishes a multi-stakeholder Carbon and Forestry Advisory
Council to assist USDA in developing the guidelines.
Title II: Forest Carbon Management: State Revolving Loan
Programs/Cooperative Agreements. The bill provides assistance
to plant and manage underproducing or understocked forests to
increase carbon sequestration by authorizing a state-run
revolving loan program. Assistance is provided through
Cooperative Agreements with State or local governments,
American Indian Tribes, Alaska natives, native Hawaiians, and
private-nonprofit entities; or through loans to nonindustrial
private forest landowners. The Federal share of funding for
Cooperative Agreements and the loan program will come from
penalties that are being assessed against violators of the
Clean Air Act and the Clean Water Act (civil penalties
assessed in FY 1998 totaled $45 million).
Title III: Carbon Sequestration Program: Agriculture
Conservation Program. The bill authorizes USDA contracts for
a minimum of 10 years for farmers who wish to conserve land,
improve water quality and sequester carbon by employing
conservation practices, like no-till farming and the use of
buffer strips to enhance carbon sequestration. The USDA would
be required--in conjunction with other agencies--to finalize
criteria for measuring the carbon-storing ability of various
conservation practices. This bill allows farmers to submit
plans on how they would store carbon on their land.
Landowners already employing carbon-conservation practices
would also be eligible. Participation in this program is
completely voluntary, and is limited to 20 million total
acres at a maximum $20 per acre.
Title IV Reports: Report on Options to Increase Carbon
Storage on Federal Lands: The bill directs the Secretary of
Agriculture, through the Forest Service, to report to
Congress on forestry options to increase carbon storage in
the National Forest System. Forestry and Agriculture
Reporting: This bill will provide for a documented carbon
database reported by participants to the Administrator of
Energy Information Administration. The Administrator shall
develop forms to keep track of both domestic and
international sequestration gains. This data will provide a
road map for dealing with climate change through independent
carbon market offsets in the future.
______

By Mrs. FEINSTEIN (for herself, Mrs. Hutchison, Mr. Baucus, Mr.
Bayh, Mr. Bennett, Mr. Biden, Mr. Bingaman, Mr. Bond, Mrs.
Boxer, Mr. Breaux, Mr. Brownback, Mr. Bunning Mr. Burns, Mr.
Campbell, Ms. Cantwell, Mrs. Carnahan, Mr. Chafee, Mr. Cleland,
Mrs. Clinton, Ms. Collins, Mr. Craig, Mr. Daschle, Mr. Dayton,
Mr. DeWine, Mr. Dodd, Mr. Domenici, Mr. Durbin, Mr. Edwards,
Mr. Ensign, Mr. Enzi, Mr. Feingold, Mr. Grassley, Mr. Gregg,
Mr. Harkin, Mr. Hatch, Mr. Helms, Mr. Hutchinson, Mr. Inhofe,
Mr. Jeffords, Mr. Johnson, Mr. Kennedy, Mr. Kerry, Ms.
Landrieu, Mrs. Lincoln, Mr. Lott, Mr. Lugar, Mr. McCain, Ms.
Mikulski, Mr. Miller, Mr. Murkowski, Mrs. Murray, Mr. Nelson of
Florida, Mr. Roberts, Mr. Reid, Mr. Santorum, Mr. Sarbanes, Mr.
Schumer,

[[Page S8292]]

Mr. Sessions, Mr. Shelby, Mr. Smith of New Hampshire, Mr. Smith
of Oregon, Ms. Snowe, Mr. Specter, Ms. Stabenow, Mr. Thomas,
Mr. Thompson, Mr. Thurmond, Mr. Torricelli, Mr. Voinovich, Mr.
Warner, Mr. Wellstone, Mr. Wyden, Mr. Nelson of Nebraska, and
Mr. Carper):
S. 1256. A bill to provide for the reauthorization of the breast
cancer research special postage stamp, and for other purposes; to the
Committee on Governmental Affairs.
Mrs. FEINSTEIN. Mr. President, on behalf of Senator Hutchison and
myself and 71 other Senate cosponsors, I rise today to offer
legislation to extend the life of the Breast Cancer Research Stamp for
an additional six years.
I was surprised by the U.S. Postal Service's recent rule-making which
could possibly terminate the Breast Cancer Research Stamp program by
next July. The Postal Service effectively decided to permit only one
stamp to be issued at a time to raise funds for a specific cause.
This rule would therefore force competition for survival among a
number of other potential and worthy fund-raising stamps. This action
would be a terrible mistake.
The Breast Cancer Research Stamp has demonstrated itself to be a
highly effective and self-supporting fund-raiser.
To date, the stamp has raised $21.1 million for research in addition
to the $60,000 the Postal Service has recovered for administrative
costs.
Every year the stamp has existed, it has generated strong consumer
sales. In two months of operation in fiscal year 1998, consumers bought
9.2 million stamps, generating $700,000 for research on net sales of
$3.68 million.
In fiscal year 1999, consumers bought 101.2 million stamps, yielding
7.5 million for research on net sales of $40.48 million.
In fiscal year 2000, consumers purchased 119.9 million stamps,
garnering $8 million for research on net sales of $47.96 million.
In fiscal year 2001, the program continues to be vital. With two
months remaining, consumers have already bought 75.2 million stamps,
raising $4.8 million for research on sales of $30.08 million.
In total, the American people have purchased 305 million Breast
Cancer Research stamps. This means that, on average, more than one
stamp has been purchased for every citizen in our Nation and 100
million stamps were sold per year since the stamp was first introduced
in August 1998.
Clearly, the program continues to have a strong and committed
customer base.
We should also recognize that the National Cancer Institute and the
Department of Defense have put these research dollars to good use by
funding novel and innovative research in the area of breast cancer.
According to Dr. Richard Klausner, National Cancer Institute
director, these awards benefit ``over a dozen critical areas of breast
cancer research.''
Millions of Americans have bought the stamps to honor loved ones with
the disease, to highlight their own personal battle with breast cancer,
or to promote general public awareness. Virtually everywhere I travel,
people tell me they buy the stamps in the hopes of helping to find a
cure.
Moreover, one cannot calculate in dollars or cents the value the
stamp has played in increasing the visibility of the disease and the
need for additional research funding.
The life of such an extraordinary program should not prematurely end
because of an administrative decision.
There is still so much more to do because this disease has far
reaching effects on our nation: breast cancer remains the leading cause
of cancer among women. In 2001, approximately 192,200 women will get
breast cancer. This year 40,200 women will die from breast cancer.
Breast cancer represents 31 percent of all new cancers faced by women.
Approximately 3 million women in the United States are living with
breast cancer. Of these individuals, 2 million know they have the
disease, and 1 million remain unaware of their condition.
We have learned over the past few years how effective the Breast
Cancer Research Stamp is at promoting public awareness of the disease.
Yet, we still must reach out to the one million American women who do
not know of their cancer.
Some may argue that the Breast Cancer Stamp should end so that other
semi-postal stamps can have their turn at raising funds for a cause.
But it is a faulty premise that only one semi-postal stamp can
succeed at a time. I believe there is room for multiple fund-raising
stamps at the same time.
Every year, the Postal Service issues dozens of commemorative steps.
In 2001, for example, the Postal Service sold stamps commemorating
topics as various as diabetes awareness, Black Heritage, and military
veterans. Many of these stamps have sold extraordinarily well.
The viability of a postage stamp depends on its appeal to postal
customers. Over a three year period, the Breast Cancer Research has
demonstrated a sustained and committed customer base.
I urge my colleagues to join me in passing this important legislation
to grant the Breast Cancer Stamp another six years. Every dollar raised
to fight the disease can help save lives.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 1256

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

SECTION 1. REAUTHORIZATION OF BREAST CANCER RESEARCH SPECIAL
POSTAGE STAMP.

(a) Short Title.--This Act may be cited as the ``Breast
Cancer Research Stamp Act of 2001''.
(b) Reauthorization and Inapplicability of Limitation.--
(1) In general.--Section 414 of title 39, United States
Code, is amended by striking subsection (g) and inserting the
following:
``(g) For purposes of section 416 (including any regulation
prescribed under subsection (e)(1)(C) of that section), the
special postage stamp issued under this section shall not
apply to any limitation relating to whether more than 1
semipostal may be offered for sale at the same time.
``(h) This section shall cease to be effective after July
29, 2008.''.
(2) Effective date.--The amendment made by this subsection
shall take effect on the earlier of--
(A) the date of enactment of this Act; or
(B) July 29, 2002.
(c) Rate of Postage.--Section 414(b) of title 39, United
States Code, is amended--
(1) in paragraph (1), by striking ``of not to exceed 25
percent'' and inserting ``of not less than 15 percent''; and
(2) by adding after the sentence following paragraph (3)
the following: ``The special rate of postage of an individual
stamp under this section shall be an amount that is evenly
divisible by 5.''.

____________________