[Pages S7237-S7258]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. BINGAMAN:
S. 1168. A bill to amend title 23, United States Code, to establish a
program to increase the use of recyclable material in the construction
of Federal-aid highway; to the Committee on Environment and Public
Works.
Mr. BINGAMAN. Mr. President, I rise to introduce legislation that I
believe will provide the necessary incentives to improve State efforts
in the use of recycled materials in highway construction and
maintenance. The use of recycled materials in highways is an
established process in certain parts of the United States, with some
States using recycled materials on a regular basis. These materials
include fly ash, bottom ash, rubber products from old tires, and
reprocessed concrete and asphalt pavements. Less commonly used recycled
commodities include glass and plastic. The American Association of
State Highway and Transportation Officials has recently approved
specifications for the use of biomass, including small diameter timber,
providing an additional avenue for use of recycled material. The list
of accomplishments is impressive, but its application is limited. Many
States could do much more with the use of recycled materials in their
highway systems.
Challenges faced by States in the use of recycled material in
highways are attributed to several factors. Some State Departments of
Transportation are unaware of the different types of recycled materials
that are available in today's construction industry. Others do not have
the technical expertise to take advantage of the broad range of
recycled materials and techniques. Some may not have developed the
necessary procurement infrastructure to include the use of recycled
materials in highway construction.
To assist States in overcoming these obstacles and to provide
necessary incentives for the expansion of this economically and
environmentally viable practice, I am introducing the Recycled Roads
Act of 2003. The purpose of this bill is to authorize the Secretary of
Transportation to establish a recycled roads incentive grant program to
encourage the use of recyclable material in the construction of
Federal-aid highways by States and Indian tribes. The program will
provide two types of grants. The first type, which is funded up to
$125,000 per year, will be for a State or Indian tribe to use in
employing a coordinator to promote the use of recyclable material in
Federal-aid highway construction. The second type, which is funded up
to $1,400,000 per year, will be for a State or Indian tribe to use to
carry out projects and activities to promote the expanded use of
recycled material in Federal-aid highway construction and maintenance.
Total funding for both grants is $123,525,000 per year.
The case for expanded use of recycled materials in road construction
is clear. Dr. T. Taylor Eighmy, Director of the University of New
Hampshire Recycled Materials Resource Center, from an article entitled
``The Road to Reuse'' published in the professional journal Civil
Engineering, states the case well: ``Why should we as a society
continue to dispose of materials that may have inherent engineering
value and suitable environmental properties and continue to rely on
nonrenewable natural resources in constructing the U.S. infrastructure?
Indeed, these materials may become increasingly deserving of
consideration as we tackle deteriorating infrastructure problems in the
United States. And the use of recycled materials in lieu of natural
materials may provide additional environmental benefits through better
performance and lower cost because there would be less need to mine,
process, and transport traditional materials.
``Applications for recycled materials within the highway environment
include both bound and unbound uses: asphalt pavements, portland cement
concrete pavement, granular bases and subbases, stabilized bases,
embankments, structural fills, flowable fills, soil cover and erosion
control, and appurtenances. Materials such as reclaimed asphalt
pavement, RAP, are widely recycled using both in-place and off-site
recycling methods. More than 45 States use RAP. The National Asphalt
Paving Association reported in April 2000 that RAP has one of the
highest recycling rates in the United States--close to 80 percent.
About 73 million tons are recycled each year, saving the taxpayers
about $300 million annually.''
The example of RAP is one of our best success stories in the use of
recycled materials in roads. However, there is much more that can be
done. As Dr. Eighmy explains, ``. . . the number of states that use
recycled materials varies significantly, as do the approaches states
take in conducting beneficial use determinations, particularly on less
traditional materials. There is a general sense that states with higher
industrial activities use more of the resulting by-products. . . .
There also appears to be a relation between a state's
[[Page S7238]]
commitment to recycling and the maturity of the beneficial use program
in that state.''
The Federal Highway Administration produced a policy on recycled
materials in February of 2002, which strongly encourages the use of
existing recyclable materials in highway construction and maintenance.
As stated in the policy, ``Recycling presents environmental
opportunities and challenges, which, when appropriately addressed, can
maximize the benefits of reuse. The use of most recycled materials
poses no threat or danger to the air, soil, or water. Furthermore,
careful design, engineering and application of recycled materials can
reduce or eliminate the need to search for and extract new, virgin
materials from the land.
``The engineering feasibility of using recycled materials has been
demonstrated in research, field studies, experimental projects and
long-term performance testing and analysis. Significant advances in
technology over the past decade have increased the types of recycled
materials in use and the range of their applications. When
appropriately used, recycled materials can effectively and safely
reduce cost, stave time, offer equal or in some cases, significant
improvement to performance qualities, and provide long-term
environmental benefits.''
The Federal Highway Administration policy is supported by both
science and a common sense approach to the needs of building and
maintaining our national highway system. This bill provides the
necessary incentives to expand these beneficial recycling practices,
and increase the associated environmental and engineering impacts.
In addition, this legislation was developed in consultation with
several stakeholders from the Federal and state governments, and non-
governmental organizations. The State of New Mexico, and the non-profit
organizations Environmental Defense and the Surface Transportation
Policy Project have provided letters expressing their support for this
legislation.
I ask all Senators to support the Recycled Roads Act of 2003. I look
forward to working with the Chairman of the Environment and Public
Works Committee, Senator Inhofe, and Senator Jeffords, the ranking
member, to incorporate his bill into the full 6-year reauthorization of
the transportation bill. I would also like to thank Jeff Steinborn from
my office in Las Cruces, New Mexico for his diligent work in developing
the initial concept for this legislation.
I ask unanimous consent that the article from September 2001
professional society journal Civil Engineering entitled ``The Road to
Reuse'' by Dr. T. Taylor Eighmy, the February 2002 Federal Highway
Administration policy on recycled materials, and letters of support
from the State of New Mexico, Environmental Defense, and the Surface
Transportation Policy Project be printed in the Record. I also ask
unanimous consent that the text of the bill be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
[From Civil Engineering, Sept. 2001]
The Road To Reuse
(By T. Taylor Eighmy and Bryan J. Magee)
Why should we as a society continue to dispose of materials
that may have inherent engineering value and suitable
environmental properties and continue to rely on nonrenewable
natural resources in constructing the U.S. infrastructure?
Shouldn't we be making a concerted effort to use recycled
materials as substitutes for natural aggregates or materials
in the construction of highway infrastructure? Indeed, these
materials may become increasingly deserving of consideration
as we tackle deteriorating infrastructure problems in the
United States. And the use of recycled materials in lieu of
naturals materials may provide additional environmental
benefits through better performance and lower cost because
there would be less need to mine, process, and transport
traditional materials.
There are many types of wastes and by-product materials
with potential uses in the highway environment. Ground
recycled asphalt pavement, crushed reclaimed concrete,
foundry sands, coal bottom ash, blast furnace slags,
nonferrous slags, steel slags, quarry by-products, shredded
tires, and glass cullet can all serve as aggregate
substitutes. Cement kiln dusts, silica fume, ground-
granulated blast furnace slag, class F coal fly ash, and
class C coal fly ash can serve as alternative cementitious
materials. Ground recycled asphalt pavement, roofing shingle
scraps, and ground rubber can serve as sources of asphalt
cement or asphalt modifiers. And coal combustion by-products,
wood ash, sludge ash, composted biomass, and ground wood
wastes can serve as soil amendments, soil cover, mulch, and
erosion control materials.
Applications for recycled materials within the highway
environment include both bound and unbound uses: asphalt
pavement, portland cement concrete pavement, granular bases
and subbases, stabilized bases, embankments, structural
fills, flowable fills, soil cover and erosion control, and
appurtenances. Materials such as reclaimed asphalt pavement
(RAP) are widely recycled using both in-place and off-site
recycling methods. More than 45 states use RAP. The National
Asphalt Paving Association reported in April 2000 that RAP
has one of the highest recycling rates in the United States--
close to 80 percent. About 73 million tons (66 million Mg)
are recycled each year, saving taxpayers almost $300 million
annually.
A recent, but incomplete, compilation of materials recycled
in the highway environment in the United States shows that
other materials are recycled annually at reasonable rates.
These annual usage and recycling rates are worth noting:
blast furnace slag--24 million tons (12.6 million Mg), 90
percent recycling rate; coal fly ash--16 million tons (14.6
million Mg), 27 percent; coal bottom ash--4.8 million tons
(4.4 milliono Mg), 30 percent; coal boiler slag--2.3 million
tons (2.1 million Mg), 91 percent; current kiln dust and lime
kiln dust--9.1 million tons (8.3 million Mg), 31 percent; and
steel slag--8.3 million tons (7.5 million Mg), percentage
unknown. However, the number of states that use recycled
materials varies significantly, as do the approaches states
take in conducting beneficial use determinations,
particularly on less traditional materials. There is a
general sense that states with higher industrial activity use
more of the resulting by-products--foundry sands and slags,
for example. There also appears to be a relation between a
state's commitment to recycling and the maturity of the
beneficial use program in that state.
A number of European countries have routinely used recycled
materials since the 1970s with a high degree of success. What
is remarkable about the European story is the recycling rate
of materials used (material used/material produced) in the
highway environment with rates of 100 percent frequently
noted. The Netherlands, a populous country with more
limited aggregate resources and a high degree of
industrialization and interest in land reclamation, is the
best example. The annual reported totals of metric tons
used, together with the recycling rates, are as follows:
steel slag--0.5 million, 100 percent; blast furnace slag--
1.2 million, 100 percent; coal bottom ash--0.08 million,
100 percent; coal fly ash--0.85 million, 100 percent;
construction and demolition aggregates--9.2 million, 100
percent; municipal solid waste combustion bottom ash--0.8
million, 100 percent; and RAP--10.7 million, 100 percent.
Data from a variety of sources suggest potential sources of
recycled materials for use in the highway environment. In
their paper ``Utilization of Waste Materials in Civil
Engineering,'' R.J. Collins and S.K. Ciesielski cited four
major sources of waste and by-product materials for highway
use: agriculture (2,100 million tons [1,905 million Mg] per
year), domestic (200 million tons [181 million Mg] per year)
industrial (400 million tons [363 million Mg] per year), and
mineral (1,800 million tons [1,633 million Mg] per year).
Combined, these account for about 4.5 billion tons per year.
Recent data from the Federal Highway Administration (FHWA)
indicate that in 1997 there were almost 4 million mi (6.4
million km) of roads in the United States--4 percent under
federal jurisdiction, 21 percent under state jurisdiction,
and 75 percent under local jurisdiction. Data from 1992 on
material uses in the highway environment from the National
Research Council show that the construction, rehabilitation,
and maintenance of U.S. highways require about 350 million
tons (318 million Mg) of natural and manufactured materials,
including 20 million tons (18 million Mg) per year of
asphalt, 10 million tons (9 million Mg) per year of portland
cement, and 320 million tons (290 million Mg) per year of
natural aggregates, paving mixtures, and synthetic surfacing
and coating materials. It is interesting to contrast these
numbers with the data presented on waste and by-product
production. Undoubtedly, these numbers have increased.
ASCE's 2001 Report Card for America's Infrastructure
indicates that one-third of the nation's roads are in poor or
mediocre condition, costing American drivers an estimated
$5.8 billion and contributing to as many as 13,800 highway
fatalities each year. Additionally, the assessment quotes
FHWA findings that 29 percent of the nation's bridges are
structurally deficient or functionally obsolete and its
estimate that elmininating all bridge deficiencies would cost
$10.6 billion over the course of 20 years. There is a
critical need for a significant investment of money and
material to help alleviate these conditions and for
changes in transportation behavior, transportation
investment, and the application of innovative
technologies. How much of this necessary rehabilitation
can make appropriate use--both economically and from long-
term engineering and environmental performance
perspectives--of the materials already present in
pavements, base courses, subbases, embankments, bridge
decks, and bridge abutments? What other waste or by-
product material might be used?
[[Page S7239]]
The 1991 Intermodal Surface Transportation Efficiency Act
(ISTEA) gave high priority to research on recycling. Largely
as a result of this focus, the FHWA and the National
Cooperative Highway Research Program (NCHRP) sponsored
several projects related to recycling, all of them national
in scope. Other federal agencies have developed guidelines or
programs that in some way relate to the use of recycled
materials. For example, the publication User Guidelines for
Waste and By-Product Materials in Pavement Construction was
developed to assist those who have an interest in using or
increasing their understanding of the types of waste and by-
product materials that may be recovered and used in pavement
construction applications. By documenting the potential use
of 19 recycled materials in six construction applications,
these guidelines, which were produced by the FHWA and
published in 1997, are intended to describe the nature of
each material, suggest sources for obtaining additional
information, and outline the issues that need to be evaluated
when considering the use of a particular material. The
guidelines are also intended to provide general information
on engineering evaluation requirements, environmental issues,
and economic considerations in determining the suitability of
particular recovered materials in pavement applications. (An
electronic version of the guidelines is available at the Web
site of the Recycled Materials Resource Center
[www.rmrc.unh.edu/Partners/UserGuide/begin.htm].)
Funded by the NCHRP and completed in 1998, the Recycled
Materials Information Database was created as a tool that can
be used to review and store data on the properties and
applications of recycled material and on testing procedures.
Reference information is also included. With information on
21 materials, the database is divided into nine main
categories and provides the user with both general and
detailed engineering and environmental information on each
material. Recommended laboratory engineering tests that can
be used to assess the suitability of each waste and recycled
material for transportation applications are included, along
with recommendations for monitoring in-field trials. (Copies
of the database may be downloaded from the Recycled Materials
Resource Center Web site [<a href='http://www.rmrc.unh.edu/Resources/
UsefulDocuments&Programs/NCHRP/NCHRP.asp'>www.rmrc.unh.edu/Resources/
UsefulDocuments&Programs/NCHRP/NCHRP.asp</a>].)
The Framework for Evaluating Use of Recycled Materials in
the Highway Environment was recently published by the FHWA to
establish a logical and hierarchical evaluation process that
all states can use either to develop a beneficial use
determination process or to refine an existing process of
this type. The purpose of this document is to help reduce
barriers to the use of recycled materials and to facilitate
the migration of successful practices across state
boundaries. Additionally, because the management and
regulation of recycled materials use in the highway
environment are jurisdictionally the responsibility of a
state's department of transportation (DOT) and its
environmental protection agency (EPA), a major goal was to
work with state DOTs and EPAs to develop a consensus-based
approach that would encourage the two agencies to work
together in the evaluation process. The process uses a series
of stages that can each lead to approval or a beneficial use
application from both an engineering and an environmental
perspective. It comprises issue definition, data evaluation,
laboratory testing, and field tests. The project used an
expert technical group to help develop the framework. DOTs
and EPAs from Florida, Minnesota, New Hampshire, New Jersey,
and New York were involved. (An electronic version of the
guidelines is available on the Web site of the Recycled
Materials Resource Center [<a href='http://www.rmrc.unh.edu/Partners/
Framework/Start/start.html'>www.rmrc.unh.edu/Partners/
Framework/Start/start.html</a>].)
The report Environmental Impact of Construction and Repair
Materials on Surface and Ground Waters (NCHRP 25-9) was
prepared by the NCHRP after determining whether commonly used
construction and repair materials might affect--through the
persistence of any toxic leachates--the quality of surface
water or groundwater adjacent to highways. A number of widely
used waste and by-product materials were included in this
evaluation. By developing a model that can be applied to
any medium through which the leachates might pass, the
report provides users with a tool capable of predicting
the potential environmental harm of various waste and by-
product materials. (Copies of the report can be obtained
from the Transportation Research Board's bookstore [http:/
/national academies.org/trb/bookstore] by searching book
code NR448.)
Established in 1998 in close coordination with the FHWA's
Pavement Management Coordination Group, the Recycled
Materials Resource Center (RMRC) works on the national level
to promote the appropriate use of recycled materials in the
highways environment. The RMRC forms part of the
Environmental Research Group at the University of New
Hampshire. It has a unique role in the growing application of
recycled materials to highway construction--namely to serve
as a catalyst to reduce barriers to the appropriate use of
these materials. The center is a culmination of a number of
diverse but integrated efforts on the part of the FHWA, other
federal and state agencies, and academia to provide a
cohesive approach to the complex engineering and
environmental issues surrounding the use of recycled
materials. The RMRC focuses on both research and outreach
activities in carrying out its mission, and its principal
clients are state DOTs and EPAs.
In terms of research, the RMRC channels approximately half
of its overall budget to a diverse range of projects related
to recycling. At present 2 projects have been completed and
11 are in progress nationwide at a number of academic
institutions and consulting companies. In addition, with the
request for proposals issued by the center in February, three
are slated to commence in September. The projects address a
range of engineering and environmental issues related to
recycling, among them the mitigation of alkali silicate
reactions in recycled concrete; environmental weathering of
granular waste materials; concrete mixtures with inclusions
to improve the sound-absorbing capacity of portland cement
concrete pavements; and the development of a risk analysis
framework for the beneficial use of secondary materials.
Attention is also given to leaching from granular materials
used in highway construction during intermittent wetting: the
development and preparation of specifications for recycled
materials in transportation applications; the determination
of the number of revolutions needed for cold-in-place
Superpave mixture design using the sequential gyratory
compactor; the development of a rational and practical mix
design system for full depth reclamation; the fatigue
durability of stabilized recycled aggregate base course
containing coal fly ash and waste-plastic strip
reinforcement; and the development of lightweight synthetic
aggregate from coal fly ash and waste plastics.
The RMRC orchestrates numerous activities, the principal
and most accessible of which is its Web site
(www.rmrc.unh.edu). The site provides a variety of tools,
including a client registration feature; an information
request feature; virtual demonstration sites; updates on all
RMRC-funded research projects; numerous documents and
programs; links to pertinent specifications, state DOT
programs, literature search engines, and national and
international entities; lists of scheduled events;
information on funding opportunities; and access to libraries
and databases. In addition the center sends out a quarterly
electronic newsletter to its clients, keeping them abreast of
ongoing and upcoming events related to recycling.
Of particular interest is the center's first specification
to be adopted by the American Association of State Highway
and Transportation Officials (AASHTO). In December 2000
AASHTO voted to adopt ``Glass Cullet Use for Soil Aggregate
Base Course'' as a new national specification (M-318-01).
While currently recognized as a national specification, the
document will first appear in the 21st edition of the AASHTO
specifications, which is slated for publication this year.
This recycling specification was developed by Warren Chesner
of Chesner Engineering, in Commack, New York, in conjunction
with the AASHTO subcommittee on materials as part of a
research project funded by the RMRC. The project is looking
at the properties of selected recycled materials and is
developing--with the assistance of a technical advisory group
made up of representatives of 15 state DOTS--specifications
in an AASHTO format for the use of these materials in highway
construction.
An upcoming outreach event of note is the international
conference Beneficial Use of Recycled Materials in
Transportation Applications, which the center is helping to
organize. All told, 163 abstracts have been submitted from
engineers and researchers from 23 different countries. The
event will be held in Washington, DC, November 13-15 (see
[www.rmrc.unh.edu/2001Conf/overview.asp]).
In September 1999 an FHWA delegation visited Sweden,
Denmark, Germany, the Netherlands, and France to review and
document innovative policies, programs, and techniques that
would help to reduce barriers to the use of recycled
materials in U.S. highways. The delegation met with more than
100 representatives from transportation and environment
ministries, research organizations, contractors, and material
producers involved with recycled materials in those
countries. The U.S. delegation discerned a number of factors
that have played a role in the success of recycling on
highways in Europe, particularly in the Netherlands. The
factors fall under the general concept of sustainability
within the highway environment. The major components of the
sustainability initiatives are the three Es: economics,
engineering, and environment. (The final report is available
online at [<a href='http://www.international.fhwa.dot.gov/Pdfs/
recycolor.pdf'>www.international.fhwa.dot.gov/Pdfs/
recycolor.pdf</a>].)
As a follow--on to the European visit, a workshop--
Partnerships for Sustainability: A New Approach to Highway
Materials--was developed to share European advances in
recycling in the highway environment with a targeted audience
of state DOT materials engineers, state DOT environmental
staff members, and state EPA staff members who work on
beneficial use. Fifteen states were invited to send
representatives to the workshop, and more than 100 people
attended. The goals were to showcase recent developments,
introduce the Dutch sustainability concept, and encourage
state agency personnel to work together on all aspects of
using recycled materials on highways. (The workshop is
highlighted on the RMRC Web page [<a href='http://www.rmrc.unh.edu/
partner.asp'>www.rmrc.unh.edu/
partner.asp</a>], and the final report can be accessed at
[www.rmrc.unh.edu/Partners/finalreport.asp].)
[[Page S7240]]
The FHWA has established a team to provide leadership,
direction, and technical guidance to the transportation
community to promote the use of recycled materials in highway
environments and to provide technical support and assistance.
The team is preparing a white paper that will set forth
priority initiatives for recycling, and it is forming
partnerships with AASHTO's subcommittees on materials and
construction, with the RMRC, and with industry. Members of
the team--their FHWA division given in parentheses--include
Jason Harrington and Michael Rafalowski (Infrastructure Core
Business Unit), Connie Hill (Planning and Environment Core
Business Unit), Terry Mitchell and Jack Youtcheff (Research
and Development Support Business Unit), Michael Smith
(Southern Resource Center), Walter Waidlich (New Hampshire
Division), Bryan Cawley (North Dakota Division), and Jim
Travis (Texas Division).
A number of state DOTs have established recycling
coordinator positions. These positions frequently figure
prominently in technology transfer, research coordination,
and informational outreach. The DOTs of California,
Massachusetts, North Carolina, Pennsylvania, and Texas all
have active programs.
MassHighway
Over the past few years, the Massachusetts DOT,
MassHighway, has made significant progress on the recycling
front. Steps have been taken throughout the department to
increase the use of waste and recycled materials in
construction projects and everyday activities; to focus on
recycled, remanufactured, and environmentally beneficial
materials in procurement decisions for offices, stockrooms,
facilities, and construction sites; and to promote the
recycling of various waste streams. Recycling and
environmentally beneficial procurement are becoming part of
the routine way of doing business at MassHighway. Although
highway performance, safety, and cost are of primary
importance, as long as recycled and environmentally
beneficial materials and products can fill this bill, they
will be considered comparable, if not superior, to virgin
alternatives.
Recent projects in Massachusetts include the procurement of
recycled antifreeze, re-refined oils, and safety vests
manufactured from soft drink bottles that are fully recycled;
the acceptance of specifications allowing for the use of
recycled plastic offset blocks as a substitute for pressure-
treated lumber blocks; and the commencement of a research
project to investigate the use of tire shreds beneath a
roadway embankment. In addition, there are plans to set up
trial and demonstration projects involving bio-based
lubricants, recycled street sweepings, and noise barriers
made of recycled plastic.
In 1999 alone, MassHighway was able to recycle more than
10,000 tons (9,000 Mg) of waste, use more than 138,000 tons
(125,000 Mg) of reclaimed or recycled materials in
construction projects, and spend more than $33 million on
materials and products that had a high recycled content or
were environmentally beneficial. There is still much to be
done. MassHighway will continue to evaluate its many
procurement procedures and specifications to remove
unnecessary barriers and find new applications for recycled
materials and materials that are environmentally beneficial.
It will also continue to examine its construction and
maintenance operations to find areas where waste can be
reduced. Additionally, it will continue to work in
coordination with local, state, and national environmental
and public works entities to share its experiences and to
learn more about the use of recycled and environmentally
beneficial materials in highway and roadway construction.
pennslyvania dot
PennDOT has developed a strategic recycling program (SRP)
as a tool for systematically identifying, evaluating, and
implementing opportunities to sue recycled materials in
transportation and civil engineering work throughout the
state. The ultimate objective of the SRP is to realize
economic savings and environmental benefits for both PennDOT
and the state by recycling, limiting pollution, and
continuing various other environmental initiatives.
Five key areas have been targeted by the state to help
PennDOT achieve and sustain its mission to increase the use
of recycled materials:
(1) Research: Continue to evaluate the existing uses of
recycled materials and products and conduct research into new
uses of recycled materials in transportation and civil
engineering work.
(2) Specifications: Develop and approve material and use
specifications, bidding specifications, and guidelines for
the use of recycled materials that confer significant
environmental, engineering, or economic benefits.
(3) Project development: Identify, promote, and plan
projects that use recycled materials that conform to approved
or provisional specifications.
(4) Communication: Provide information via various media to
PennDOT, government agencies, and the public on the
performance and applicability of recycled materials in
transportation and civil engineering work.
(5) Contract bidding: Evaluate construction contract legal
bidding requirements and develop innovative ways to enable
PennDOT to specify the use of recycled materials in
transportation construction and maintenance projects.
North Carolina DOT
Last year NCDOT recycled 2.4 million lb (1.1 million kg) of
metal, 1 million lb (450,000 kg) of paper products, and more
than 30,000 lb (14,000 kg) of glass and plastic as part of
their daily operations. In addition to these efforts, the
department continues to seek applications for recycled
products in highway construction. Since 1989 the NCDOT has
used more than 7 million tires, 50,000 tons (45,000 kg) of
glass beads, and 14,000 tons (13,000 kg) of asphalt shingles.
Lyndo Tippett, the state's secretary of transportation, has
indicated he will expand the department's environmental
efforts. ``As a native of rural North Carolina, I know
firsthand the value of our state's natural resources,'' he
said. ``We must be proactive about finding opportunities that
not only protect our environment but also improve it.''
One such opportunity is the department's partnership with
Habitat for Humanity of Wake County, which won an
environmental excellence award from the FHWA this year. In
this program, Habitat helps raze houses within the
department's rights-of-way that are scheduled for demolition.
Prospective homeowners help demolish the houses, earning
credit toward the construction of their new homes. Materials
are then stored in Habitat's reuse center and sold to the
general public at reduced prices. The department is currently
working to develop partnerships with other Habitat chapters
throughout the state.
Another initiative is a pilot project with Bion
Technologies, of Clayton, North Carolina. Last year the
company donated 900 lb (410 kg) of swine waste for use as an
alternative to commercial fertilizer. NCDOT roadside
environmental engineers are currently working with the
company to monitor the effectiveness of this product in
test plots of wildflower beds along U.S. 117 south of
Goldsboro to see if more widespread use is warranted.
``Our partnerships with Habitat for Humanity and Bion
Technologies demonstrate to the public the positive effect
that recycling has on our culture as well as our
environment,'' said Tippett. ``These efforts also prove that
it is possible to have a quality transportation system and a
beautiful environment at the same time.''
texas dot
TxDOT's road to recycling initiative represents a mammoth
endeavor to use recycled materials in road construction and
maintenance projects. The goal of this initiative is to
increase the use of recycled materials in road construction
when they confer environmental benefits and economic or
engineering advantages.
Since 1995 TxDOT has coordinated more than $1 million worth
of research to investigate the use of a broad array of
recycled materials in road construction, including glass
cullet, scrap tires, fly and bottom ash, crushed porcelain
toilets, shredded brush, compost, roofing shingles, plastics,
RAP, crushed concrete, and industrial wastes. The research
has been equally broad in the scope of roadway construction
applications studied and has examined road signs, roadway
safety devices, embankments, asphalt and concrete pavements,
soil erosion control, drainage, vertical moisture barriers,
and road bases.
Information on the merits of recycled roadway materials has
been disseminated around the world through information
showcases, press releases, a video, a Web site, two
conferences, and a yearlong publicity campaign.
Since the inception of its recycling program in 1994, TxDOT
has spent more than $506 million on ``green'' products and
diverted more than 13 million tons (12 million Mg) of
materials from landfills--a diversion equivalent to more than
1,300 lb (590 kg) for every man, woman, and child in Texas.
These staggering numbers are for the most part directly
attributable to the use of recycled materials in road
construction applications.
As part of its continuing efforts to promote the use of
materials recovered from solid waste, the U.S. EPA has
developed the Comprehensive Procurement Guideline (CPG)
program. The institutional purchase of recycled products by
government ensures that the materials collected in recycling
programs will be used again in the manufacture of new
products. Congress authorizes the CPG program under section
6002 of the Resource Conservation and Recovery Act (RCRA).
The CPG process designates products that are or can be made
with recycled materials. At present for construction
products, coal fly ash and ground granulated blast furnace
slag are listed for cement and concrete materials, and coal
fly ash and foundry sands are listed for flowable fill.
Materials are also listed for transportation and landscaping
categories. (Additional information is available at
[www.epa.gov/cpg/].)
other initiatives
Established in the 1990s by the U.S. Department of Energy
(DOE), the Industries for the Future Program creates
partnerships linking industry, government, and supporting
laboratories and institutions to accelerate technology
research, development, and deployment. The DOE's Office of
Industrial Technologies is implementing the program for nine
energy- and waste-intensive industries, namely agriculture,
aluminum, chemicals, forest products, glass, metal casting,
mining, petroleum, and steel. The program's goal of
increasing competitiveness and reducing energy consumption
waste involves recycling
[[Page S7241]]
by-products from these industries. A recent conference hosted
by the DOE and the Civil Engineering Research Foundation
explored recycling opportunities for these industries and in
formulating plans for the future looked at perceived
barriers, market needs, and collaborative relationships. (For
additional information about the Industries for the Future
Program, see [www.oit.doe.gov/industries.shtml].)
Life-cycle analysis (LCA) has become increasingly common in
civil engineering construction applications. Indeed, its use
is being widely encouraged in addressing America's
infrastructure problems. An excellent example of this
application is the model BridgeLCC, developed by the National
Institute for Standards and Technology for use evaluating
high-performance bridges. BridgeLCC (see [<a href='http://www.bfrl.nist.gov/
'>www.bfrl.nist.gov/
</a> bridgelccl] is geared toward helping design engineers
estimate and compare the life-cycle costs of a new
technology--for example, high-performance concrete or fiber-
reinforced-polymer (FRP) composites--with those of a
conventional technology made with conventional materials. The
FHWA has instituted similar models for highway design (see
[www.fhwa.dot.gov/resourcecenters/southern/msmith.htm]).
There is less experience here in the United States with the
application of LCA in deciding whether to use recycled
materials or traditional materials in highway work, and this
is even more pronounced when environmental burdens or
emissions are included in the model. Recent work by the
Finnish National Road Administration has resulted in the
development of a comprehensive LCA and inventory analysis
program. In Finland the production and transport of materials
produce the most significant environmental burdens; the
activities that consume the most energy are the production of
bituminous asphalt and cement and the crushing and transport
of materials. The consumption of raw materials and the
leaching behavior of recycled materials there were also
regarded as being of great significance. A weighted
environmental loading assessment for three scenarios (coal
fly ash in subbase and stabilized subbase; crushed concrete
in base and subbase; and blast furnace slags in base,
subbase, and lower subbase) and a traditional construction
scenario were conducted in the Finnish study. The use of
blast furnace slag, crushed concrete, and coal fly ash in
road bases was seen as imposing a lower total environmental
loading than the use of coal fly ash in stabilized subbases
or the use of traditional pavements using crushed rock.
Obviously, such analytical tools and case studies need to
be developed and applied to scenarios here in the United
States. However, the Finnish National Road Administration
data suggest that in a broader sense there may be additional
benefits to using recycled materials when life-cycle material
costs are considered in conjunction with the harm to the
environmental caused by energy production and the processing
and transport of materials.
In refining their strategic plans, state DOT may find it
advantageous to consider the role of recycling. In addition,
as studies are carried out on proposed transportation
projects under the auspices of the National Environmental
Policy Act, is it possible that credit might be given for the
use of recycled materials, particularly if LCA shows that the
materials convey environmental benefits?
The Netherlands probably best typifies the concept of
sustainability, and it offers a suitable model for certain
states and metropolitan areas here in the United States. The
recycling or reuse of secondary materials within the Dutch
building industry is commonplace--more than 10 percent of all
granular materials used in the building industry are
recycled.
The Netherlands is an affluent country with high population
densities and limited land resources. The public has elected
not to set aside areas for landfills or aggregate mining.
This has led to the practice of sustainable development
within the building industry, as well as to a subset of that
industry: the highway construction industry. The basic
premise of the sustainability concept is that material cycles
should be closed (recycling involving use, reuse, re-reuse,
et cetera) so that there is less outright disposal and less
consumption of non-renewable natural materials. A number of
legislative initiatives, including the National Environmental
Policy Plan, the Waste Materials Policy, the Soil Protection
Policy, the Surface Minerals Policy, and the Construction
Industry Policy Declaration, provide the underpinning for
sustainable construction.
The Dutch have adopted a market philosophy that regards
recycled materials as products rather than waste. This means
that the product will exhibit a typical product life cycle in
the marketplace. Recycled materials first undergo development
before coming into widespread use and maturing. Government
and private-sector publicity campaigns and policies support
the market. This concept might prove applicable in the United
States in states or geographic regions where population
densities are high, natural aggregates are scarce, and
sources of suitable recycled materials are plentiful.
The Dutch government provides clear and unequivocal
engineering and environmental standards for all recycled
materials. This is usually achieved through governmental
research in support of the standards. Further, public or
industry working groups (including contractors) work
together to achieve these standards. The producers of
recycled materials use certified quality assurance and
quality control programs so that their goods can compete
against natural materials. The policy is clear, as is the
planning and implementation, which enables the producers
and contractors to prepare for this new market. The
government provides certain economic incentives, such as
hefty landfill disposal taxes on materials that can be
recycled and modest taxes on the use of natural
aggregates. If these aspects are combined, then a mature
recycling market can develop over time.
There is a clear need for partnerships linking the private
sector, universities, research institutions, government
bodies, environmental groups, and the public. This relates to
the formulation and coordination of policy, the transfer of
information, and making resources available for additional
research and development (R&D).
The private sector can play a variety of roles. Those
interested in having their by-products considered can make
use of the document Framework for Evaluating Use of Recycled
Materials in the Highway Environment so that they can work
with state DOTs and EPAs to develop the necessary data for
evaluation. Contractors can explore the use of recycled
materials to help meet the requirements of performance bonds.
Equipment manufacturers can also play a role by developing
technologies that would make it possible to recycle materials
on-site for pavements, bridges, and other civil
infrastructure, thereby reducing transport costs and
associated environmental burdens.
At the state level, it may be appropriate for the DOTs to
consider recycling as stand-alone policy or as part and
parcel of their strategic plans. PennDOT's SRP may be a
starting point in efforts to systematically find, evaluate,
and apply recycled materials in transportation and civil
engineering work (see [<a href='http://www.dot.state.pa.us/penndot/bureaus/
beq.nsf/srp'>www.dot.state.pa.us/penndot/bureaus/
beq.nsf/srp</a>?OpenPage]). State DOTs may wish to give credit to
recycling strategies during the planning stage of
transportation projects, as well as in analyzing alternatives
and mitigation measures. In planning transportation
projects states could develop checklists that ask
questions about recycling choices or options for use, with
the responses used in analyzing alternatives and
evaluating secondary and cumulative effects. States could
use information derived from LCAs as part of their
benefits analysis and in information packages prepared for
public hearings and for obtaining permits.
A more formal relationship between AASHTO and the
Association of State and Territorial Solid Waste Management
Officials is definitely worth exploring as this can help pave
the way for relationships at the state level. State DOTs and
EPAs might consider adopting beneficial use evaluation
frameworks similar to successful ones already in place or to
the generic one offered by the Framework for Evaluating Use
of Recycled Materials in the Highway Environment.
A lowering of the barriers encountered in transferring
technologies from one jurisdiction to another across state
lines would be a great benefit. Fortunately, the
Environmental Council of State (see [www.sso.org/ecos/]) has
two programs related to reciprocity. The group called
Interstate Technology Regulatory Cooperation (ITRC) is a
state-led national coalition dedicated to achieving better
environmental protection through the use of innovative
technologies. The ITRC (www.itrcweb.org/) is exploring
general reciprocity arrangements involving 37 state members.
Six states (California, Illinois, Massachusetts, New Jersey,
Pennsylvania, and Virginia), under the Environmental
Technology Acceptance and Reciprocity Partnership (e.TARP)
are exploring reciprocity arrangements of a more formal type,
including one for beneficial use determinations.
One recommendation that was strongly emphasized in the
final report on the workshop Partnerships for Sustainability:
A New Approach to Highway Materials Partnerships for
Sustainability is that state DOTs establish recycling
coordinator positions for the purposes of technology
transfer, research coordination, and outreach.
At the federal level, partnerships linking the private
sector, the FHWA, the U.S. EPA, the DOE, and other competent
agencies are encouraged. Two obvious examples might be
coordinating the U.S. EPA's CPG program with the DOE's
Industries for the Future Program. Funneling beneficial use
applications and adopted specifications to the CPG program
also makes sense. There may be an opportunity to establish a
leadership council that could coordinate communication and
policy and improve intergovernmental approaches. Shared
funding should be considered for lowering barriers between
jurisdictions, demonstrating the use of innovative materials,
and applying ICA analysis. A recent report on the role to be
played by the National Science Foundation in meeting
environmental science and engineering needs in the 21st
century named industrial ecology (including product and
process ICA) as a program needing enhancement. This topic
should include recycling for infrastructure improvement.
Congress is considering a number of bills that could serve
as vehicles in promoting recycling. The reauthorization of
the next highway bill in 2003 provides an excellent
opportunity to further promote appropriate recycling,
partnerships, technology transfer,
[[Page S7242]]
and R&D. Making funds available to allow two or more states
to carry out joint demonstration projects would go a long way
toward reducing barriers. Congress can also examine the
information recently provided by the U.S. EPA's Science
Advisory Board on overcoming barriers to waste utilization
(see [www.epa.gov/science1/eeccm06.pdf]). One of the board's
most important recommendations--interpreting key definitions
so that wastes could be beneficially used and not be
inappropriately labeled as hazardous--would help with the
confusion at the federal level about the need for a third
category of by-product. Material that qualifies for inclusion
in this category would not be labeled as solid waste or as
hazardous waste; rather it would be suitable for beneficial
reuse in an open market. The reauthorization of the RCRA may
provide a suitable opportunity for this change.
____
Federal Highway Administration Recycled Materials Policy
ADMINISTRATOR'S MESSAGE
The National Highway System (NHS) is extensive, with over
160,000 miles of highway pavements and over 128,000
structures, built using large quantities of asphalt,
concrete, steel, and aggregate, and smaller quantities of
nonferrous metals, plastics, and other materials. Much of the
system was constructed in the 1960's and 70's and is in need
of major rehabilitation or total reconstruction; and much of
the materials used to build that system can be recycled for
use in the new construction. In order to carry out the
mission of the FHWA, i.e., to ``improve the quality of the
Nation's highway system,'' the NHS must be properly
preserved, maintained, rehabilitated, and when necessary,
reconstructed. Maintenance of highways and associated
structures is critical to our ability to provide the safest,
most efficient roadway system possible, while simultaneously
providing the greatest level of protection to the human and
natural environment.
The same materials used to build the original highway
system can be re-used to repair, reconstruct, and maintain
them. Where appropriate, recycling of aggregates and other
highway construction materials makes sound economic,
environmental, and engineering sense. The economic benefits
from the re-use of nonrenewable highway materials can provide
a great boost to the highway industry. Recycling highway
construction materials can be a cost-saving measure, freeing
funds for additional highway construction, rehabilitation,
preservation or maintenance.
Recycling presents environmental opportunities and
challenges, which, when appropriately addressed, can maximize
the benefits of re-use. The use of most recycled materials
poses no threat or danger to the air, soil, or water.
Furthermore, careful design, engineering and application of
recycled materials can reduce or eliminate the need to search
for and extract new, virgin materials from the land. The
engineering feasibility of using recycled materials has been
demonstrated in research, field studies, experimental
projects and long-term performance testing and analysis.
Significant advances in technology over the past decade have
increased the types of recycled materials in use and the
range of their applications. When appropriately used,
recycled materials can effectively and safely reduce cost,
save time, offer equal or, in some cases, significant
improvement to performance qualities, and provide long-term
environmental benefits.
FHWA has established agency goals for enhancing the human
and natural environment, increasing mobility, raising
productivity, improving safety throughout the highway
industry, and preserving national security. All of these
goals are stated in our strategic plan, and we will ensure
that the FHWA recycling policy and recycling programs are in
alignment with those goals and underlying principles. This
recycling policy statement is offered to advance the use of
recycled materials in highway applications. It is intended to
provide leadership, direction, and technical guidance to the
transportation community for the use of recycling technology
and materials in the highway environment. The FHWA policy is:
1. Recycling and reuse can offer engineering, economic and
environmental benefits.
2. Recycled materials should get first consideration in
materials selection.
3. Determination of the use of recycled materials should
include an initial review of engineering and environmental
suitability.
4. An assessment of economic benefits should follow in the
selection process.
5. Restrictions that prohibit the use of recycled materials
without technical basis should be removed from
specifications.
FHWA has a longstanding position that any material used in
highway or bridge construction, be it virgin or recycled,
shall not adversely affect the performance, safety or the
environment of the highway system. This remains a cornerstone
in our policy statement. In order to foster innovation and
future development we support research, field trials, and
project demonstrations showcasing the findings.
We will do this with: People:
The FHWA Recycling Team.
Creation of a team of champions in our Division Offices
that will be points of contact for recycling technology.
Partnering:
The Recycled Materials Resource Center.
Working with the AASHTO Subcommittee on Materials and
Environment.
AASHTO Standing Committee on Highways recently passed a
resolution on ``Use of Recycled Materials''. That document
requests the establishment of a joint task force be created
to provide the overall leadership for a coordinated national
recycling program.
Coordination with State highway agency (SHA) Recycling
Coordinators and state solid waste management regulators.
Interaction and coordination with industry partners.
Taking the lead for coordination of recycling activities
and initiatives.
Promotion and Support:
Agency emphasis on recycling technology in the FHWA
Strategic Plan.
Research, development, and technology transfer programs to
further innovation.
Demonstration projects.
Increased training opportunities for FHWA and SHA staff.
Active promotion of recycling technology by providing
needed specifications, best practices, design guidance, and
material testing results to overcome barriers.
Assistance in review, evaluation, and advancement of
emerging technology.
Promoting the concept of ``sustainable'' construction,
i.e., construction designed for later recycling.
Frederick G. Wright, Jr.,
Executive Director.
____
New Mexico State Highway
and Transportation Department,
Santa Fe, NM, May 6, 2003.
Attention: Eric Burman, Legislative Fellow.
Hon. Jeff Bingaman,
U.S. Senate, Hart Senate Office Building, Washington, DC.
Dear Senator Bingaman: My staff and I have reviewed the
proposed ``Recycled Roads Act of 2003'' legislation and
support it for the following reasons:
The legislation supports on-going work that the NMSHTD
Recycling Task Force has been doing. It will enable us to
complete additional research on issues related to the use of
recycled materials on our roadways. Two current issues we are
pursuing are: (1) The feasibility of rubberized pavement in
roadway construction, and (2) The use of compost and/or mulch
as an alternative to reseeding upon the completion of
construction related projects.
Another important aspect of this legislation is that
through its reporting requirements, it will enhance
communication and cooperation between the NMSHTD (NMDOT) and
other groups who are interested in the use of recycled
materials in transportation facility maintenance and
construction (e.g., state and tribal Departments of
Transportation).
This legislation can provide the Department an opportunity
to expand and accelerate progress in areas we currently
pursue with limited resources.
Sincerely,
Rhonda G. Faught,
Cabinet Secretary.
____
Environmental Defense,
Washington, DC, May 22, 2003.
Hon. Jeff Bingaman,
U.S. Senate,
Washington, DC.
Dear Senator Bingaman: Environmental Defense is pleased to
endorse the Recycled Roads Act, which promotes the use of
nontoxic recycled materials as road construction materials.
Using these recycled materials not only diverts them from
landfills and incinerators, but also reduces energy use and
pollution associated with manufacturing virgin materials for
road construction, thus benefiting the environment and human
health. It also provides economic benefits by enhancing
markets for recycling of materials like glass and tires that
have traditionally had limited recycling markets or
viability. Because some potentially recyclable materials have
toxic constituents, the bill's provisions requiring
evaluation of risk (in conjunction with the Administrator of
the Environmental Protection Agency) are a key aspect of the
bill. As always, our endorsement is specific to the text of
the bill as it stands at this point.
Thank you for taking a leadership role on this important
issue.
Sincerely,
Karen Florini,
Senior Attorney.
____
Surface Transportation
Policy Project,
Washington, DC, May 22, 2003.
Hon. Jeff Bingaman,
U.S. Senate, Hart Senate Office Building,
Washington, DC.
Dear Senator Bingaman: On behalf of the Surface
Transportation Policy Project, I am writing to convey our
support for your legislation, the ``Recycle Roads Act of
2003.''
The Surface Transportation Policy Project, among it goals,
seeks improved energy use and environmental protection. We
believe that our transportation investments, services and
incentives should not only meet our travel needs, but also
can further our efforts to protect and enhance the integrity
of our natural resources and enhance resource efficiency and
energy conservation goals.
We know that the use of recyclable materials in
transportation projects conserves raw materials and reduces
the quantities of waste deposited in landfills. We also see
recyclable materials as part of a broader effort to extend
the life cycle of our transportation facilities, an important
value as we continue to look for ways to leverage available
dollars.
[[Page S7243]]
Increased recycling can deliver engineering, economic and
environmental benefits, including increased opportunities for
rural economic development. The legislation would help create
new markets and incentives for recycling in small communities
and would provide additional savings for all levels of
government. The legislation would also foster greater
cooperation between transportation and environmental programs
carried out by states or Indian tribes.
We applaud your leadership in developing this legislation
and support your efforts to move it forward during this
Congress.
Sincerely,
Anne Canby,
President.
____
S. 1168
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Recycled Roads Act of
2003''.
SEC. 2. FINDINGS.
Congress finds that--
(1) in 2000, there were more than 3,951,000 miles of
highways in the United States;
(2) in the early 1990s, as much as 350,000,000 tons of raw
and recyclable material were used annually for highway
construction, rehabilitation, and maintenance;
(3) in 2002, the Federal Government provided
$26,348,000,000, or more than 34 percent of funding, for
highways in the United States;
(4) at least 45 States recycle a total of 73,000,000 tons
of reclaimed asphalt pavement annually, the use of which
results in an annual savings of approximately $300,000,000 as
compared with the cost of using raw material;
(5) in 2002, the Federal Highway Administration issued a
policy encouraging States to use recycled material in highway
construction because recycling and reuse can offer
engineering, economic, and environmental benefits;
(6) greater incorporation of recyclable material in highway
construction would--
(A) provide a significant new national market for the use
of recyclable material;
(B) create new markets and incentives for recycling in
small communities;
(C) conserve raw material; and
(D) reduce the quantities of waste deposited in landfills
in the United States (which would produce an additional
savings for the Federal Government and State governments);
and
(7) the increased use of recyclable material in highway
construction could--
(A) provide additional opportunities for rural economic
development; and
(B) encourage expanded use of biomass products.
SEC. 3. USE OF RECYCLABLE MATERIAL IN FEDERAL-AID HIGHWAY
CONSTRUCTION.
(a) In General.--Subchapter I of chapter 1 of title 23,
United States Code, is amended by inserting after section 138
the following:
``Sec. 139. Use of recyclable material in Federal-aid highway
construction
``(a) Definition of Recyclable Material.--In this section:
``(1) In general.--The term `recyclable material' means any
material described in paragraph (2) that is determined by the
Secretary, in consultation with the Administrator of the
Environmental Protection Agency--
``(A) to be recyclable and usable in construction of a
Federal-aid highway; and
``(B) to have undergone a recycling process to prepare the
material for further use.
``(2) Materials.--The materials referred to in paragraph
(1) are--
``(A) glass;
``(B) forest biomass;
``(C) a used tire or tire product;
``(D) reclaimed asphalt;
``(E) plastic; and
``(F) any other suitable material that does not contain a
total concentration of any toxic constituent that poses a
risk to human health or the environment--
``(i) during preconstruction activity, including storage,
transportation, or preparation of the material for use in
road construction;
``(ii) during the useful life of the road; or
``(iii) after the useful life of the road, including
subsequent recycling, reuse, or disposal of components of or
debris from the road.
``(b) Program.--
``(1) Establishment.--The Secretary shall establish a
recycled roads incentive grant program to encourage the
expanded use by States and Indian tribes of a diverse range
of recyclable material in the construction of Federal-aid
highways.
``(2) Grants.--In carrying out this section, the Secretary
shall provide to each State or qualified (as determined by
the Secretary) Indian tribe--
``(A) a grant, in an amount not to exceed $125,000 for a
fiscal year, to be used by the State or Indian tribe in
employing a coordinator to promote the use of a diverse range
of recyclable material in Federal-aid highway construction;
and
``(B) a grant, on a competitive basis, in an amount not to
exceed $1,400,000 for a fiscal year, to be used by the State
or Indian tribe in carrying out projects and activities to
promote the expanded use of a diverse range of recyclable
material in Federal-aid highway construction and maintenance,
such as projects and activities to--
``(i) eliminate economic barriers;
``(ii) develop markets;
``(iii) provide outreach, training, or technical
assistance; or
``(iv) collect program and performance data.
``(3) Administration.--
``(A) Redistribution of funds.--If funds made available for
use in providing grants under subparagraph (A) or (B) of
paragraph (2) for a fiscal year remain after the Secretary
has provided grants under the subparagraph for the fiscal
year, the Secretary--
``(i) may use the remaining funds to provide additional
grants under that paragraph for the fiscal year; but
``(ii) notwithstanding any other provision of this title,
shall not use the funds to provide grants or assistance under
any other program under this title.
``(B) Transportation and environmental cooperation.--In
providing a grant to a State or Indian tribe under paragraph
(2)(B), the Secretary shall encourage cooperation between
transportation and environmental programs carried out by the
State or Indian tribe.
``(C) Equitable treatment of states and indian tribes.--To
the maximum extent practicable, the Secretary shall treat an
Indian tribe as a State for the purpose of a grant provided
under paragraph (2).
``(4) State and tribal reports.--For the fiscal year in
which the program under this section is implemented and each
fiscal year thereafter, each State and Indian tribe that
receives a grant under paragraph (2) shall--
``(A) collect a sampling of data pertaining to the use by
the State or Indian tribe, during the fiscal year covered by
the report, of recyclable material in the projects for
construction of Federal-aid highways in the State or on land
under the jurisdiction of the Indian tribe that are carried
out under this section or any other provision of this title
using at least $1,000,000 in Federal funds, including a
description of--
``(i) each type of recyclable material used;
``(ii) the quantity of each recyclable material used; and
``(iii) the proportion that--
``(I) the quantity of each recyclable material used; bears
to
``(II) the quantity of all recyclable material and raw
material used; and
``(B) submit to the Secretary a report describing those
data.
``(5) Quality control.--The Secretary shall ensure, to the
maximum extent practicable, that data provided by a State or
Indian tribe under paragraph (4) is of a sufficient quality
and range to permit the Secretary to assess national
accomplishments involving the use of recyclable material.
``(c) Reports.--
``(1) Initial report.--Not later than 180 days after the
date of enactment of the Recycled Roads Act of 2003, the
Secretary shall submit to the appropriate committees of
Congress a report on the program to be carried out under this
section that includes--
``(A) an overview of program requirements;
``(B) an analysis of any significant issues relating to the
program; and
``(C) a proposed timeline for implementation of the
program.
``(2) Annual reports.--Not later than 2 years after the
date of enactment of the Recycled Roads Act of 2003, and
annually thereafter on the date of issuance of the annual
program performance report under section 1116 of title 31,
United States Code, the Secretary shall submit to the
appropriate committees of Congress a report on the program
under this section, including, for each recyclable material
used in the construction of a Federal-aid highway during the
period covered by the report, the information described in
subsection (b)(4).
``(d) Regulations.--The Secretary shall promulgate such
regulations as are necessary to carry out this section.
``(e) Authorization of Appropriations.--There are
authorized to be appropriated from the Highway Trust Fund
(other than the Mass Transit Account)--
``(1) $10,125,000 for use in providing grants under
subsection (b)(2)(A) for each fiscal year; and
``(2) $113,400,000 for use in providing grants under
subsection (b)(2)(B) for each fiscal year.''.
(b) Conforming Amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code, is amended by
inserting after the item relating to section 138 the
following:
``139. Use of recyclable material in Federal-aid highway
construction.''.
______
By Mr. SPECTER:
S. 1169. A bill to decrease the United States dependence on imported
oil by the year 2015; to the Committee on Commerce, Science, and
Transportation.
Mr. SPECTER. Mr. President, I have sought recognition to introduce
legislation that would reduce our Nation's dependence on imported oil.
Last year, Senator Carper and I introduced this legislation as an
amendment to the energy bill and I offer it today to begin a debate and
dialogue in the Senate about the merits of this goal.
During last year's energy bill consideration, I joined over 60 of my
colleagues in voting for the Levin-Bond
[[Page S7244]]
amendment regarding the Corporate Average Fuel Economy standards for
cars, SUV's, and light trucks. Given the instability in the Middle East
and our Nation's reliance on foreign oil, Senator Carper and I offered
additional language to slow the growth of our dependency on oil in a
measurable way on the energy bill.
I supported the Levin-Bond amendment because, among other things, it
would have invested Federal dollars in research and development of
advanced technology vehicles. It would have harnessed the power of
government to purchase and commercialize hybrid and fuel cell-powered
vehicles. I also supported the amendment's accompanying tax incentives,
which would further encourage the production and purchase of advanced,
fuel-efficient vehicles.
However, the Levin-Bond amendment fell short in one important area -
it did not include a clear, measurable objective for oil savings. The
issue is not just the Corporate Average Fuel Efficiency, CAFE, or Miles
Per Gallon, MPG,--rather it is oil and our growing dependence on
imports for 56 percent of what we use. The bill I am introducing today
would implement the Levin-Bond requirement that the Secretary of
Transportation issue new regulations setting forth increased average
fuel economy standards and further require that the Secretary of
Transportation issue regulations to reduce the amount of oil consumed
in our passenger cars and light trucks in 2015 by 1,000,000 barrels per
day compared to consumption without such regulations in place.
Federal research has identified promising fuel technologies,
including fuels developed from biomass, coal waste, and other sources
that could play a role in reducing our dependence on traditional,
foreign crude oil and facilitate a transition to advanced fuels. For
example, one important effort that is happening in Pennsylvania
involves a recent $100 million U.S. Department of Energy grant to build
the first U.S. coal-waste-to-clean-fuel plant. This $612 million plant
is expected to produce 5,000 barrels of sulfur-free diesel or other
types of transportation fuel daily. This will have the multiple
benefits of removing coal waste, reducing acid mine drainage, producing
fuels that will reduce air pollution, and using a domestic energy
supply, thus reducing the need to import foreign oil. The bill I am
introducing today tasks the Department of Energy to work with the
Department of Transportation to develop and encourage such
technologies.
America uses about 8 million barrels of oil daily to power the
vehicles that we drive. The Department of Energy forecasts that this
amount will climb to 10.6 million barrels per day by 2015, an increase
of over 35 percent. I propose to limit that growth to 23 percent, or
9.6 million barrels.
America's national security is jeopardized by our growing dependence
on foreign oil. Oil imports now account for a third of our nation's
trade deficit, which exceeded $400 billion in 2001. I will continue to
raise the issue of the untenable position the United States is in by
relying on oil from the Middle East. This is highlighted by the fact
that we continue to see suicide bombings in Israel and new attacks in
other Middle Eastern nations such as Saudi Arabia and Morocco.
Additionally, the exhausts of our motor vehicles are the source of
significant amounts of air pollution, including a quarter of the carbon
dioxide emitted into our atmosphere, which is sited as a lead
contributor to global climate change.
To address these concerns, Congress need not attempt to micro manage
a solution by setting higher CAFE levels. We should, however, set a
clear, measurable objective--reducing the growth in oil consumption by
at least a million barrels per day by 2015. We should then delegate to
NHTSA, as the energy bill would have accomplished last year under the
Levin-Bond amendment and my legislation does, the responsibility for
working with the auto industry to achieve that objective. That approach
will encourage American ingenuity and foster a public-private
partnership that recognizes the interests of consumers and auto makers,
as well as furthering public policy that will help relieve the very
significant and dangerous policy of relying on our economy's lifeblood
of oil from unstable regions.
As this body considers energy legislation, I encourage my colleagues
to consider the importance of taking appropriate steps to reduce our
dependence on foreign sources of energy, particularly oil. I invite my
colleagues to join me in this effort by cosponsoring this legislation.
______
By Mr. WYDEN:
S. 1170. A bill to designate certain conduct by sports agents
relating to signing of contracts with student athletes as unfair and
deceptive acts or practices to be regulated by the Federal Trade
Commission; to the Committee on Commerce, Science, and Transportation.
Mr. WYDEN. Mr. President, summer is upon us. For many college
athletes, that means leaving campus and heading back to a home in a
different state. Some may take the opportunity to do some traveling, or
even to attend sports camps in various parts of the country.
Unfortunately, this well-earned break can carry real risks for the
athletes and their schools. Why? Because traveling student athletes may
be big targets for opportunistic sports agents--and due to highly
inconsistent state laws on the subject, the legal protections that an
athlete might enjoy in the state where the college is located don't
necessarily apply elsewhere.
Today I am reintroducing a bill to address this issue, the Sports
Agent Responsibility and Trust Act. The purpose of the bill is simple:
to set some basic, uniform nationwide rules to prevent unscrupulous
behavior by sports agents who court student athletes. The universities
in Oregon with top athletic programs--the University of Oregon, Oregon
State University, and Portland State University--have all provided
letters of endorsement for this legislation. So has the NCAA.
Too often, unscrupulous sports agents prey upon young student
athletes who are inexperienced, naive, or simply don't know all of the
collegiate athletic eligibility rules. The agent sees the student
athlete as a potentially lucrative future client, and wants to get the
biggest headstart possible on other agents. So the agent tries to
contact and sign up the student athlete as early as possible, and does
whatever takes to get the inside track.
In some cases, the agent may attempt to lure the student athlete with
grand promises. In some cases, the agent may offer flashy gifts. To
make the offer more enticing, the agent may withhold crucial
information about the impact on the student's eligibility to compete in
college sports.
A majority of States have enacted statutes to address unprincipled
behavior by sports agents, but the standards vary from State to State
and some states don't have any at all. The universities in my State of
Oregon tell me that this creates a significant loophole. Specifically,
Oregon has a State law, but it doesn't apply when, for example, a
University of Oregon athlete goes home to another State for the summer
and is contacted by an agent there. Every time that athlete crosses
into another State a different set of rules apply. And if one State's
laws on the subject are particularly weak, that is where shady sports
agents will try to contact their targets.
That is why there ought to be a single, nationwide standard. The bill
I am introducing today would establish a uniform baseline, enforceable
by the Federal Trade Commission, that would supplement but not replace
existing state laws. Specifically, the bill would make it an unfair and
deceptive trade practice for a sports agent to entice a student athlete
with false or misleading information or promises or with gifts to the
student athlete or the athlete's friends or family. It would require a
sports agent to provide the student athlete with a clear, standardized
warning, in writing, that signing an agency contract could jeopardize
the athlete's eligibility to participate in college sports. It would
make it unlawful to pre-date or post-date agency contracts, and require
both the agent and student athlete to promptly inform the athlete's
university if they do enter into a contract.
Representative Bart Gordon of Tennessee has spearheaded this
legislation in the House, where the Energy and Commerce Committee and
the Judiciary Committee have both considered and approved the bill this
year. I'm told that consideration on the House
[[Page S7245]]
floor could occur this week. I applaud Congressman Gordon for his
leadership on this issue, and I urge my Senate colleagues to join me in
addressing this matter in the Senate.
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. 1170
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Sports Agent Responsibility
and Trust Act''.
SEC. 2. DEFINITIONS.
As used in this Act, the following definitions apply:
(1) Agency Contract.--The term ``agency contract'' means an
oral or written agreement in which a student athlete
authorizes a person to negotiate or solicit on behalf of the
student athlete a professional sports contract or an
endorsement contract.
(2) Athlete agent.--The term ``athlete agent'' means an
individual who enters into an agency contract with a student
athlete, or directly or indirectly recruits or solicits a
student athlete to enter into an agency contract, and does
not include a spouse, parent, sibling, grandparent, or
guardian of such student athlete, any legal counsel for
purposes other than that of representative agency, or an
individual acting solely on behalf of a professional sports
team or professional sports organization.
(3) Athletic director.--The term ``athletic director''
means an individual responsible for administering the
athletic program of an educational institution or, in the
case that such program is administered separately, the
athletic program for male students or the athletic program
for female students, as appropriate.
(4) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(5) Endorsement contract.--The term ``endorsement
contract'' means an agreement under which a student athlete
is employed or receives consideration for the use by the
other party of that individual's person, name, image, or
likeness in the promotion of any product, service, or event.
(6) Intercollegiate sport.--The term ``intercollegiate
sport'' means a sport played at the collegiate level for
which eligibility requirements for participation by a student
athlete are established by a national association for the
promotion or regulation of college athletics.
(7) Professional sports contract.--The term ``professional
sports contract'' means an agreement under which an
individual is employed, or agrees to render services, as a
player on a professional sports team, with a professional
sports organization, or as a professional athlete.
(8) State.--The term ``State'' includes a State of the
United States, the District of Columbia, Puerto Rico, the
United States Virgin Islands, or any territory or insular
possession subject to the jurisdiction of the United States.
(9) Student athlete.--The term ``student athlete'' means an
individual who engages in, is eligible to engage in, or may
be eligible in the future to engage in, any intercollegiate
sport. An individual who is permanently ineligible to
participate in a particular intercollegiate sport is not a
student athlete for purposes of that sport.
SEC. 3. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND PRACTICES
IN CONNECTION WITH THE CONTACT BETWEEN AN
ATHLETE AGENT AND A STUDENT ATHLETE.
(a) Conduct Prohibited.--It is unlawful for an athlete
agent to--
(1) directly or indirectly recruit or solicit a student
athlete to enter into an agency contract, by--
(A) giving any false or misleading information or making a
false promise or representation; or
(B) providing anything of value to a student athlete or
anyone associated with the student athlete before the student
athlete enters into an agency contract including any
consideration in the form of a loan, or acting in the
capacity of a guarantor or co-guarantor for any debt;
(2) enter into an agency contract with a student athlete
without providing the student athlete with the disclosure
document described in subsection (b); or
(3) predate or postdate an agency contract.
(b) Required Disclosure by Athlete Agents to Student
Athletes.--
(1) In general.-- In conjunction with the entering into of
an agency contract, an athlete agent shall provide to the
student athlete, or, if the student athlete is under the age
of 18 to such student athlete's parent or legal guardian, a
disclosure document that meets the requirements of this
subsection. Such disclosure document is separate from and in
addition to any disclosure which may be required under State
law.
(2) Signature of student athlete.--The disclosure document
must be signed by the student athlete, or, if the student
athlete is under the age of 18 by such student athlete's
parent or legal guardian, prior to entering into the agency
contract.
(3) Required language.--The disclosure document must
contain, in close proximity to the signature of the student
athlete, or, if the student athlete is under the age of 18,
the signature of such student athlete's parent or legal
guardian, a conspicuous notice in boldface type stating:
``Warning to Student Athlete: If you agree orally or in
writing to be represented by an agent now or in the future
you may lose your eligibility to compete as a student athlete
in your sport. Within 72 hours after entering into this
contract or before the next athletic event in which you are
eligible to participate, whichever occurs first, both you and
the agent by whom you are agreeing to be represented must
notify the athletic director of the educational institution
at which you are enrolled, or other individual responsible
for athletic programs at such educational institution, that
you have entered into an agency contract.''.
SEC. 4. ENFORCEMENT.
(a) Unfair or Deceptive Act or Practice.--A violation of
this Act shall be treated as a violation of a rule defining
an unfair or deceptive act or practice prescribed under
section 18(a)(1)(B) of the Federal Trade Commission Act (15
U.S.C. 57a(a)(1)(B)).
(b) Actions by the Commission.--The Commission shall
enforce this Act in the same manner, by the same means, and
with the same jurisdiction, powers, and duties as though all
applicable terms and provisions of the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) were incorporated into
and made a part of this Act.
SEC. 5. ACTIONS BY STATES.
(a) In General.--
(1) Civil actions.--In any case in which the attorney
general of a State has reason to believe that an interest of
the residents of that State has been or is threatened or
adversely affected by the engagement of any athlete agent in
a practice that violates section 3 of this Act, the State may
bring a civil action on behalf of the residents of the State
in a district court of the United States of appropriate
jurisdiction to--
(A) enjoin that practice;
(B) enforce compliance with this Act; or
(C) obtain damage, restitution, or other compensation on
behalf of residents of the State.
(2) Notice.--
(A) In general.--Before filing an action under paragraph
(1), the attorney general of the State involved shall provide
to the Commission--
(i) written notice of that action; and
(ii) a copy of the complaint for that action.
(B) Exemption.--Subparagraph (A) shall not apply with
respect to the filing of an action by an attorney general of
a State under this subsection, if the attorney general
determines that it is not feasible to provide the notice
described in that subparagraph before filing of the action.
In such case, the attorney general of a State shall provide
notice and a copy of the complaint to the Commission at the
same time as the attorney general files the action.
(b) Intervention.--
(1) In general.--On receiving notice under subsection
(a)(2), the Commission shall have the right to intervene in
the action that is the subject of the notice.
(2) Effect of intervention.--If the Commission intervenes
in an action under subsection (a), it shall have the right--
(A) to be heard with respect to any matter that arises in
that action; and
(B) to file a petition for appeal.
(c) Construction.--For purposes of bringing any civil
action under subsection (a), nothing in this title shall be
construed to prevent an attorney general of a State from
exercising the powers conferred on the attorney general by
the laws of that State to--
(1) conduct investigations;
(2) administer oaths or affirmations; or
(3) compel the attendance of witnesses or the production of
documentary and other evidence.
(d) Actions by the Commission.--In any case in which an
action is instituted by or on behalf of the Commission for a
violation of section 3, no State may, during the pendency of
that action, institute an action under subsection (a) against
any defendant named in the complaint in that action.
(e) Venue.--Any action brought under subsection (a) may be
brought in the district court of the United States that meets
applicable requirements relating to venue under section 1391
of title 28, United States Code.
(f) Service of Process.--In an action brought under
subsection (a), process may be served in any district in
which the defendant--
(1) is an inhabitant; or
(2) may be found.
SEC. 6. PROTECTION OF EDUCATIONAL INSTITUTION.
(a) Notice Required.--Within 72 hours after entering into
an agency contract or before the next athletic event in which
the student athlete may participate, whichever occurs first,
the athlete agent and the student athlete shall each inform
the athletic director of the educational institution at which
the student athlete is enrolled, or other individual
responsible for athletic programs at such educational
institution, that the student athlete has entered into an
agency contract, and the athlete agent shall provide the
athletic director with notice in writing of such a contract.
(b) Civil Remedy.--
(1) In general.--An educational institution has a right of
action against an athlete agent for damages caused by a
violation of this Act.
(2) Damages.--Damages of an educational institution may
include amd are limited to
[[Page S7246]]
actual losses and expenses incurred because, as a result of
the conduct of the athlete agent, the educational institution
was injured by a violation of this Act or was penalized,
disqualified, or suspended from participation in athletics by
a national association for the promotion and regulation of
athletics, by an athletic conference, or by reasonable self-
imposed disciplinary action taken to mitigate actions likely
to be imposed by such an association or conference.
(3) Costs and attorneys fees.--In an action taken under
this section, the court may award to the prevailing party
costs and reasonable attorneys fees.
(4) Effect on other rights, remedies and defenses.--This
section does not restrict the rights, remedies, or defenses
of any person under law or equity.
SEC. 7. LIMITATION.
Nothing in the Act shall be construed to prohibit an
individual from seeking any remedies available under existing
State law or equity.
SEC. 8. SENSE OF CONGRESS.
It is the sense of Congress that States should enact the
Uniform Athlete Agents Act of 2000 drafted by the National
Conference of Commissioners on Uniform State Laws, to protect
student athletes and the integrity of amateur sports from
unscrupulous sports agents. In particular, it is the sense of
Congress that States should enact the provisions relating to
the registration of sports agents, the required form of
contract, the right of the student athlete to cancel an
agency contract, the disclosure requirements relating to
record maintenance, reporting, renewal, notice, warning, and
security, and the provisions for reciprocity among the
States.
______
By Mr. FRIST (for himself, Mr. Bingaman, Mr. Dodd, Mr. DeWine,
Mrs. Clinton, Mr. Warner, Mrs. Murray, Mr. Lugar, Ms. Landrieu,
Mr. Sessions, and Mr. Alexander):
S. 1172. A bill to establish grants to provide health services for
improved nutrition, increased physical activity, obesity prevention,
and for other purposes; to the Committee on Health, Education, Labor,
and Pensions.
Mr. FRIST. Mr. President, I rise today to discuss a particular public
health problem--the growing rates of obesity. This epidemic has
steadily increased to a level twice what it was thirty years ago.
Obesity now affects over sixty percent of adults and thirteen percent
of children and adolescents. Among young people, it is escalating at an
alarming rate. This condition causes three hundred thousand deaths a
year and is second only to smoking as the Nation's leading cause of
preventable death. Overweight and obesity are associated with increased
risk for heart disease, the leading cause of death, cancer, the second
leading cause of death, diabetes, the seventh leading cause of death,
and musculoskeletal disorders. Anyone with this condition has at least
a 50 percent chance of a premature death.
As obesity continues to mount, the morbidity, mortality and health
care costs associated with these disorders will skyrocket. Just this
last month, a Health Affairs article estimated that nearly one-tenth of
U.S. health care costs are attributable to conditions resulting from
obesity or being overweight. In 2002 dollars, the authors of this
article estimate that obesity and overweight-related conditions cost
$92.6 billion. Of which, half is financed by Medicare and Medicaid.
Healthy People 2010 calls overweight and obesity one of the Nation's
leading health problems and prioritizes efforts to increase the
proportion of adults who are at a healthy weight, and reduce the levels
of obesity and overweight among adults, children and adolescents. The
Surgeon General's report ``A Call to Action'' lists the treatment and
prevention of obesity as a top national priority.
Now, if this condition was linked to an infectious or bioterrorist
agent, the public outcry would be deafening, and the action to control
it swift. But it is not. Obesity and being overweight is often seen as
an individual problem and a personal choice, and thus does not receive
much attention. Most people do not choose to be overweight. Overweight
and obesity result from daily lifestyle choices that gradually
accumulate. Weight gain occurs slowly, often unnoticed. Today, many
Americans struggle to control their weight, collectively spending
billions of dollars each year on weight loss products and programs.
The good news is that, with healthy eating and regular physical
activity, obesity is preventable and treatable. That is why I, along
with Senator Bingaman, Senator Dodd, and others, am reintroducing the
``Improved Nutrition and Physical Activity, IMPACT, Act.'' I am pleased
that Representatives Mary Bono and Kay Granger, along with other co-
sponsors, introduced companion legislation in the House of
Representatives earlier this year. This bill will help Americans make
healthy decisions about nutrition and physical activity. It emphasizes
youth education so that healthy habits can begin early. Finally, it
funds demonstration projects to find innovative ways of improving
eating and exercise habits.
There is no single solution to the growing epidemic of obesity. That
is why the IMPACT Act takes a multifaceted approach. It implements
evidence-based programs, where available, and includes rigorous
evaluation of demonstration projects so we can learn what works best.
This important legislation has a modest price tag, reflecting the
appropriate role of the Federal Government. Most importantly, the
IMPACT Act does not attempt to mandate what Americans eat or drink or
to transfer to the Federal Government decisions that are best made at
local levels.
Let me be clear that I am not against people making choices. I am all
for choice, informed choice. What has happened, though, is that we as a
society and as individuals have made choices about eating and activity,
gradually and incrementally, without understanding or considering the
consequences. Finally, and most importantly, this bill does not intend
to and should not be considered to stigmatize those who struggle to
control their weight or to demonize any sector of the country by
blaming them for this epidemic. The IMPACT Act represents a bipartisan
agreement that the problem of obesity is important, and takes an
approach that is supported by a broad spectrum of interested parties.
With the Federal Government providing assistance, all sectors of
society will need to work together to help produce a healthier nation.
I believe we have crafted a good first response to the growing rates
of obesity. A number of public health and industry experts support the
passage of this important legislation. I ask unanimous consent that a
list of the organizations supporting the legislation and the text of
the bill be printed in the Record.
I want to thank Senators Bingaman and Dodd for their work on this
bill. I also want to thank Senator Gregg for his assistance in ensuring
that this legislation can become law. Senator Gregg has worked
tirelessly with my staff to ensure that we craft legislation that can
be quickly passed by the Senate, and I appreciate his efforts. I look
forward to having this bill become law this year.
There being no objection, the list and the bill were ordered to be
printed in the Record, as follows:
Groups Supporting the IMPACT Act
The Advertising Council, Inc.;
Consortium for Citizens with Disabilities Prevention Task
Force;
Council on State and Territorial Epidemiologists;
Endocrine Society;
FamilyCook Productions: Bringing Families Together Through
Fresh Food;
Grocery Manufacturers of America;
National Alliance for Nutrition and Activity;
National Recreation and Parks Association;
Research against Inactivity-related Disorders (RID);
Samuels & Associates: Public Health Research, Evaluation,
and Policy Consultants;
Society for Nutrition Education;
Structure House;
University of North Carolina at Chapel Hill, School of
Public Health; and
YMCA.
____
S. 1172
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improved Nutrition and
Physical Activity Act'' or the ``IMPACT Act''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) An estimated 61 percent of adults and 13 percent of
children and adolescents in the Nation are overweight or
obese.
(2) The prevalence of obesity and being overweight is
increasing among all age groups. There are twice the number
of overweight children and 3 times the number of overweight
adolescents as there were 29 years ago.
[[Page S7247]]
(3) An estimated 300,000 deaths a year are associated with
being overweight or obese.
(4) Obesity and being overweight are associated with an
increased risk for heart disease (the leading cause of
death), cancer (the second leading cause of death), diabetes
(the 6th leading cause of death), and musculoskeletal
disorders.
(5) Individuals who are obese have a 50 to 100 percent
increased risk of premature death.
(6) The Healthy People 2010 goals identify obesity and
being overweight as one of the Nation's leading health
problems and include objectives of increasing the proportion
of adults who are at a healthy weight, reducing the
proportion of adults who are obese, and reducing the
proportion of children and adolescents who are overweight or
obese.
(7) Another goal of Healthy People 2010 is to eliminate
health disparities among different segments of the
population. Obesity is a health problem that
disproportionally impacts medically underserved populations.
(8) The United States Surgeon General's report ``A Call To
Action'' lists the treatment and prevention of obesity as a
top national priority.
(9) The estimated direct and indirect annual cost of
obesity in the United States is $117,000,000,000 (exceeding
the cost of tobacco-related illnesses) and appears to be
rising dramatically. This cost can potentially escalate
markedly as obesity rates continue to rise and the medical
complications of obesity are emerging at even younger ages.
Therefore, the total disease burden will most likely
increase, as well as the attendant health-related costs.
(10) Weight control programs should promote a healthy
lifestyle including regular physical activity and healthy
eating, as consistently discussed and identified in a variety
of public and private consensus documents, including ``A Call
To Action'' and other documents prepared by the Department of
Health and Human Services and other agencies.
(11) Eating preferences and habits are established in
childhood.
(12) Poor eating habits are a risk factor for the
development of eating disorders and obesity.
(13) Simply urging overweight individuals to be thin has
not reduced the prevalence of obesity and may result in other
problems including body dissatisfaction, low self-esteem, and
eating disorders.
(14) Effective interventions for promoting healthy eating
behaviors should promote healthy lifestyle and not
inadvertently promote unhealthy weight management techniques.
(15) Binge Eating is associated with obesity, heart
disease, gall bladder disease, and diabetes.
(16) Anorexia Nervosa, an eating disorder from which 0.5 to
3.7 percent of American women will suffer in their lifetime,
is associated with serious health consequences including
heart failure, kidney failure, osteoporosis, and death. In
fact, Anorexia Nervosa has the highest mortality rate of all
psychiatric disorders, placing a young woman with Anorexia at
18 times the risk of death of other women her age.
(17) Anorexia Nervosa and Bulimia Nervosa usually appears
in adolescence.
(18) Bulimia Nervosa, an eating disorder from which an
estimated 1.1 to 4.2 percent of American women will suffer in
their lifetime, is associated with cardiac, gastrointestinal,
and dental problems, including irregular heartbeats, gastric
ruptures, peptic ulcers, and tooth decay.
(19) On the 1999 Youth Risk Behavior Survey, 7.5 percent of
high school girls reported recent use of laxatives or
vomiting to control their weight.
(20) Binge Eating Disorder is characterized by frequent
episodes of uncontrolled overeating, with an estimated 2 to 5
percent of Americans experiencing this disorder in a 6-month
period.
(21) Eating disorders are commonly associated with
substantial psychological problems, including depression,
substance abuse, and suicide.
(22) Eating disorders of all types are more common in women
than men.
TITLE I--TRAINING GRANTS
SEC. 101. GRANTS TO PROVIDE TRAINING FOR HEALTH PROFESSION
STUDENTS.
Section 747(c)(3) of title VII of the Public Health Service
Act (42 U.S.C. 293k(c)(3)) is amended by striking ``and
victims of domestic violence'' and inserting ``victims of
domestic violence, individuals (including children) who are
overweight or obese (as such terms are defined in section
399W(j)) and at risk for related serious and chronic medical
conditions, and individuals who suffer from eating
disorders''.
SEC. 102. GRANTS TO PROVIDE TRAINING FOR HEALTH
PROFESSIONALS.
Section 399Z of the Public Health Service Act (42 U.S.C.
280h-3) is amended--
(1) in subsection (b), by striking ``2005'' and inserting
``2007'';
(2) by redesignating subsection (b) as subsection (c); and
(3) by inserting after subsection (a) the following:
``(b) Grants.--
``(1) In general.--The Secretary may award grants to
eligible entities to train primary care physicians and other
licensed or certified health professionals on how to
identify, treat, and prevent obesity or eating disorders and
aid individuals who are overweight, obese, or who suffer from
eating disorders.
``(2) Application.--An entity that desires a grant under
this subsection shall submit an application at such time, in
such manner, and containing such information as the Secretary
may require, including a plan for the use of funds that may
be awarded and an evaluation of the training that will be
provided.
``(3) Use of funds.--An entity that receives a grant under
this subsection shall use the funds made available through
such grant to--
``(A) use evidence-based findings or recommendations that
pertain to the prevention and treatment of obesity, being
overweight, and eating disorders to conduct educational
conferences, including Internet-based courses and
teleconferences, on--
``(i) how to treat or prevent obesity, being overweight,
and eating disorders;
``(ii) the link between obesity and being overweight and
related serious and chronic medical conditions;
``(iii) how to discuss varied strategies with patients from
at-risk and diverse populations to promote positive behavior
change and healthy lifestyles to avoid obesity, being
overweight, and eating disorders;
``(iv) how to identify overweight and obese patients and
those who are at risk for obesity and being overweight or
suffer from eating disorders and, therefore, at risk for
related serious and chronic medical conditions;
``(v) how to conduct a comprehensive assessment of
individual and familial health risk factors; and
``(B) evaluate the effectiveness of the training provided
by such entity in increasing knowledge and changing attitudes
and behaviors of trainees.''.
TITLE II--COMMUNITY-BASED SOLUTIONS TO INCREASE PHYSICAL ACTIVITY AND
IMPROVE NUTRITION
SEC. 201. GRANTS TO INCREASE PHYSICAL ACTIVITY AND IMPROVE
NUTRITION.
Part Q of title III of the Public Health Service Act (42
U.S.C. 280h et seq.) is amended by striking section 399W and
inserting the following:
``SEC. 399W. GRANTS TO INCREASE PHYSICAL ACTIVITY AND IMPROVE
NUTRITION.
``(a) Establishment.--
``(1) In general.--The Secretary, acting through the
Director of the Centers for Disease Control and Prevention
and in coordination with the Administrator of the Health
Resources and Services Administration, the Director of the
Indian Health Service, the Secretary of Education, the
Secretary of Agriculture, the Secretary of the Interior, the
Director of the National Institutes of Health, the Director
of the Office of Women's Health, and the heads of other
appropriate agencies, shall award competitive grants to
eligible entities to plan and implement programs that promote
healthy eating behaviors and physical activity to prevent
eating disorders, obesity, being overweight, and related
serious and chronic medical conditions. Such grants may be
awarded to target at-risk populations including youth,
adolescent girls, racial and ethnic minorities, and the
underserved.
``(2) Term.--The Secretary shall award grants under this
subsection for a period not to exceed 4 years.
``(b) Award of Grants.--An eligible entity desiring a grant
under this section shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require, including--
``(1) a plan describing a comprehensive program of
approaches to encourage healthy eating behaviors and healthy
levels of physical activity;
``(2) the manner in which the eligible entity will
coordinate with appropriate State and local authorities,
including--
``(A) State and local educational agencies;
``(B) departments of health;
``(C) chronic disease directors;
``(D) State directors of programs under section 17 of the
Child Nutrition Act of 1966 (42 U.S.C. 1786);
``(E) 5-a-day coordinators;
``(F) governors' councils for physical activity and good
nutrition; and
``(G) State and local parks and recreation departments; and
``(3) the manner in which the applicant will evaluate the
effectiveness of the program carried out under this section.
``(c) Coordination.--In awarding grants under this section,
the Secretary shall ensure that the proposed programs are
coordinated in substance and format with programs currently
funded through other Federal agencies and operating within
the community including the Physical Education Program (PEP)
of the Department of Education.
``(d) Eligible Entity.--In this section, the term `eligible
entity' means--
``(1) a city, county, tribe, territory, or State;
``(2) a State educational agency;
``(3) a tribal educational agency;
``(4) a local educational agency;
``(5) a federally qualified health center (as defined in
section 1861(aa)(4) of the Social Security Act (42 U.S.C.
1395x(aa)(4));
``(6) a rural health clinic;
``(7) a health department;
``(8) an Indian Health Service hospital or clinic;
``(9) an Indian tribal health facility;
[[Page S7248]]
``(10) an urban Indian facility;
``(11) any health care service provider;
``(12) an accredited university or college; or
``(13) any other entity determined appropriate by the
Secretary.
``(e) Use of Funds.--An eligible entity that receives a
grant under this section shall use the funds made available
through the grant to--
``(1) carry out community-based activities including--
``(A) planning and implementing environmental changes that
promote physical activity;
``(B) forming partnerships and activities with businesses
and other entities to increase physical activity levels and
promote healthy eating behaviors at the workplace and while
traveling to and from the workplace;
``(C) forming partnerships with entities, including
schools, faith-based entities, and other facilities providing
recreational services, to establish programs that use their
facilities for after school and weekend community activities;
``(D) establishing incentives for retail food stores,
farmer's markets, food coops, grocery stores, and other
retail food outlets that offer nutritious foods to encourage
such stores and outlets to locate in economically depressed
areas;
``(E) forming partnerships with senior centers and nursing
homes to establish programs for older people to foster
physical activity and healthy eating behaviors;
``(F) forming partnerships with day care facilities to
establish programs that promote healthy eating behaviors and
physical activity; and
``(G) providing community educational activities targeting
good nutrition;
``(2) carry out age-appropriate school-based activities
including--
``(A) developing and testing educational curricula and
intervention programs designed to promote healthy eating
behaviors and habits in youth, which may include--
``(i) after hours physical activity programs;
``(ii) increasing opportunities for students to make
informed choices regarding healthy eating behaviors; and
``(iii) science-based interventions with multiple
components to prevent eating disorders including nutritional
content, understanding and responding to hunger and satiety,
positive body image development, positive self-esteem
development, and learning life skills (such as stress
management, communication skills, problem-solving and
decisionmaking skills), as well as consideration of cultural
and developmental issues, and the role of family, school, and
community;
``(B) providing education and training to educational
professionals regarding a healthy lifestyle and a healthy
school environment;
``(C) planning and implementing a healthy lifestyle
curriculum or program with an emphasis on healthy eating
behaviors and physical activity; and
``(D) planning and implementing healthy lifestyle classes
or programs for parents or guardians, with an emphasis on
healthy eating behaviors and physical activity;
``(3) carry out activities through the local health care
delivery systems including--
``(A) promoting healthy eating behaviors and physical
activity services to treat or prevent eating disorders, being
overweight, and obesity;
``(B) providing patient education and counseling to
increase physical activity and promote healthy eating
behaviors; and
``(C) providing community education on good nutrition and
physical activity to develop a better understanding of the
relationship between diet, physical activity, and eating
disorders, obesity, or being overweight; or
``(4) other activities determined appropriate by the
Secretary.
``(f) Matching Funds.--In awarding grants under subsection
(a), the Secretary may give priority to eligible entities who
provide matching contributions. Such non-Federal
contributions may be cash or in kind, fairly evaluated,
including plant, equipment, or services.
``(g) Technical Assistance.--The Secretary may set aside an
amount not to exceed 10 percent of the total amount
appropriated for a fiscal year under subsection (k) to permit
the Director of the Centers for Disease Control and
Prevention to provide grantees with technical support in the
development, implementation, and evaluation of programs under
this section and to disseminate information about effective
strategies and interventions in preventing and treating
obesity and eating disorders through the promotion of healthy
eating behaviors and physical activity.
``(h) Limitation on Administrative Costs.--An eligible
entity awarded a grant under this section may not use more
than 10 percent of funds awarded under such grant for
administrative expenses.
``(i) Report.--Not later than 6 years after the date of
enactment of the Improved Nutrition and Physical Activity
Act, the Director of the Centers for Disease Control and
Prevention shall review the results of the grants awarded
under this section and other related research and identify
programs that have demonstrated effectiveness in healthy
eating behaviors and physical activity in youth.
``(j) Definitions.--In this section:
``(1) Anorexia nervosa.--The term `Anorexia Nervosa' means
an eating disorder characterized by self-starvation and
excessive weight loss.
``(2) Binge eating disorder.--The term `binge eating
disorder' means a disorder characterized by frequent episodes
of uncontrolled eating.
``(3) Bulimia nervosa.--The term `Bulimia Nervosa' means an
eating disorder characterized by excessive food consumption,
followed by inappropriate compensatory behaviors, such as
self-induced vomiting, misuse of laxatives, fasting, or
excessive exercise.
``(4) Eating disorders.--The term `eating disorders' means
disorders of eating, including Anorexia Nervosa, Bulimia
Nervosa, and binge eating disorder.
``(5) Healthy eating behaviors.--The term `healthy eating
behaviors' means--
``(A) eating in quantities adequate to meet, but not in
excess of, daily energy needs;
``(B) choosing foods to promote health and prevent disease;
``(C) eating comfortably in social environments that
promote healthy relationships with family, peers, and
community; and
``(D) eating in a manner to acknowledge internal signals of
hunger and satiety.
``(6) Obese.--The term `obese' means an adult with a Body
Mass Index (BMI) of 30 kg/m2 or greater.
``(7) Overweight.--The term `overweight' means an adult
with a Body Mass Index (BMI) of 25 to 29.9 kg/m2 and a child
or adolescent with a BMI at or above the 95th percentile on
the revised Centers for Disease Control and Prevention growth
charts or another appropriate childhood definition, as
defined by the Secretary.
``(8) Youth.--The term `youth' means individuals not more
than 18 years old.
``(k) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section,
$60,000,000 for fiscal year 2004 and such sums as may be
necessary for each of fiscal years 2005 through 2008. Of the
funds appropriated pursuant to this subsection, the following
amounts shall be set aside for activities related to eating
disorders:
``(1) $5,000,000 for fiscal year 2004.
``(2) $5,500,000 for fiscal year 2005.
``(3) $6,000,000 for fiscal year 2006.
``(4) $6,500,000 for fiscal year 2007.
``(5) $1,000,000 for fiscal year 2008.
SEC. 202. NATIONAL CENTER FOR HEALTH STATISTICS.
Section 306 of the Public Health Service Act (42 U.S.C.
242k) is amended by striking subsection (n) and inserting the
following:
``(n)(1) The Secretary, acting through the Center, may
provide for the--
``(A) collection of data for determining the fitness levels
and energy expenditure of children and youth; and
``(B) analysis of data collected as part of the National
Health and Nutrition Examination Survey and other data
sources.
``(2) In carrying out paragraph (1), the Secretary, acting
through the Center, may make grants to States, public
entities, and nonprofit entities.
``(3) The Secretary, acting through the Center, may provide
technical assistance, standards, and methodologies to
grantees supported by this subsection in order to maximize
the data quality and comparability with other studies.''.
SEC. 203. STUDY OF THE FOOD SUPPLEMENT AND NUTRITION PROGRAMS
OF THE DEPARTMENT OF AGRICULTURE.
(a) In General.--The Secretary of Agriculture shall request
that the Institute of Medicine conduct, or contract with
another entity to conduct, a study on the food and nutrition
assistance programs run by the Department of Agriculture.
(b) Content.--Such study shall--
(1) investigate whether the nutrition programs and
nutrition recommendations are based on the latest scientific
evidence;
(2) investigate whether the food assistance programs
contribute to either preventing or enhancing obesity and
being overweight in children, adolescents, and adults;
(3) investigate whether the food assistance programs can be
improved or altered to contribute to the prevention of
obesity and becoming overweight; and
(4) identify obstacles that prevent or hinder the programs
from achieving their objectives.
(c) Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary of Agriculture shall
submit to the appropriate committees of Congress a report
containing the results of the Institute of Medicine study
authorized under this section.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $750,000 for
fiscal years 2003 and 2004.
SEC. 204. HEALTH DISPARITIES REPORT.
Not later than 18 months after the date of enactment of
this Act, and annually thereafter, the Director of the Agency
for Healthcare Research and Quality shall review all research
that results from the activities outlined in this Act and
determine if particular information may be important to the
report on health disparities required by section 903(c)(3) of
the Public Health Service Act (42 U.S.C. 299a-1(c)(3)).
SEC. 205. PREVENTIVE HEALTH SERVICES BLOCK GRANT.
Section 1904(a)(1) of the Public Health Service Act (42
U.S.C. 300w-3(a)(1)) is amended by adding at the end the
following:
``(H) Activities and community education programs designed
to address and prevent overweight, obesity, and eating
disorders through effective programs to promote healthy
eating, and exercise habits and behaviors.''.
[[Page S7249]]
SEC. 206. REPORT ON OBESITY RESEARCH.
(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Health and Human
Services shall submit to the Committee on Health, Education,
Labor, and Pensions of the Senate and the Committee on Energy
and Commerce of the House of Representatives a report on
research conducted on causes and health implications of
obesity and being overweight.
(b) Content.--The report described in subsection (a) shall
contain--
(1) descriptions on the status of relevant, current,
ongoing research being conducted in the Department of Health
and Human Services including research at the National
Institutes of Health, the Centers for Disease Control and
Prevention, the Agency for Healthcare Research and Quality,
the Health Resources and Services Administration, and other
offices and agencies;
(2) information about what these studies have shown
regarding the causes of, prevention of, and treatment of,
overweight and obesity; and
(3) recommendations on further research that is needed,
including research among diverse populations, the
department's plan for conducting such research, and how
current knowledge can be disseminated.
SEC. 207. REPORT ON A NATIONAL CAMPAIGN TO CHANGE CHILDREN'S
HEALTH BEHAVIORS AND REDUCE OBESITY.
Section 399Y of the Public Health Service Act (42 U.S.C.
280h-2) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b) Report.--The Secretary shall evaluate the
effectiveness of the campaign described in subsection (a) in
changing children's behaviors and reducing obesity and shall
report such results to the Committee on Health, Education,
Labor, and Pensions of the Senate and the Committee on Energy
and Commerce of the House of Representatives.''.
Mr. BINGAMAN. Mr. President, I rise today in support of the Improved
Nutrition and Physical Activity or IMPACT Bill that Senator Frist has
introduced with myself and Senators Dodd, DeWine, Clinton, Warner,
Murray, Lugar, Landrieu, and Sessions. This is a bill that is critical
in this era of chronic disease, as it addresses the mounting public
health concerns of obesity, overweight, eating disorders, and their
related diseases such as diabetes and cardiovascular disease.
Approximately 61 percent of adults and 13 percent of children and
adolescents in our Nation today are overweight or obese. These
individuals have a significantly greater risk of diseases such as
diabetes, heart disease, and stroke than their healthy weight peers.
Another 5 to 10 percent of Americans are suffering from eating
disorders that can also manifest themselves in a number of physical and
psychological illnesses including heart disease, osteoporosis, kidney
failure, depression, anxiety, and suicide. Unfortunately, these rates
of overweight, obesity, and eating disorders are rising in both adult
and child populations. Since obesity is a health problem that
disproportionately impacts medically underserved populations, it is
rapidly increasing the medical burden on these already overburdened
populations.
The economic implications of the obesity epidemic are equally
disturbing. The estimated direct and indirect annual cost of obesity in
the United States is now 117 billion dollars--exceeding the cost of
tobacco-related illnesses. These costs will only continue to climb
unless we make a concerted effort to stem this dangerous tide by
initiating primary and secondary prevention programs.
It is this conclusion that led the United States Surgeon General to
issue a Call to Action listing the treatment and prevention of obesity
as a top national priority. It is this conclusion that has led
Secretary Thompson to implement the Steps to a Healthier US initiative.
And it is this reality that makes passing the IMPACT bill a critical
step towards improving our nation's future health and well-being.
Obesity and eating disorders are complex diseases and as such require
comprehensive multidisciplinary solutions. IMPACT aims to move us
toward those solutions by addressing these diseases on a number of
levels. First, it aims to prepare the health care community to deal
with obesity from prevention to diagnosis to intervention by adding
obesity, overweight, and eating disorders to the list of priority
conditions to be addressed in the health professions Title VII training
grants.
Second, IMPACT supports community-based solutions to increase
physical activity and improve nutrition on a number of levels. It
provides funding for demonstration projects in communities, schools,
health care organizations, and other qualified entities that promote
fitness or healthy nutrition. It authorizes the CDC to collect fitness
and energy expenditure information from children. It directs AHRQ to
review any new information relating to obesity trends among various
sub-populations and include such information in its health disparities
report. It allows states to use their Preventive Services Block Grant
money for community education on nutrition and increased physical
activity. It instructs the Secretary to report on what research has
been done in the area of obesity, what has been learned from this
research, and what future research should be conducted. And finally, it
asks the secretary to report on the effectiveness of the Youth Media
Campaign in changing children's behaviors and reducing obesity.
IMPACT is supported by a wide variety of public and private
organizations. The National Alliance for Nutrition and Activity or
NANA, an organization including more than 250 national, state, and
local organizations and the single largest coalition in the U.S.
dedicated to promoting healthy eating and physical activity and
reducing obesity states, ``NANA strongly supports your efforts to
reduce obesity and improve eating and activity habits in the U.S.
through the IMPACT bill.'' Other organizations that have stated their
support include the American Heart Association, the American Cancer
Society, the Council for States and Territorial Epidemiologists, the
Society for Nutrition Education, and the American Dietetic Association.
This legislation is an excellent first step in the fight for improved
health, but it is not the only step we must take. We need to assist our
schools in providing healthy nutrition options and expanding physical
activity programs. We need to grow the workforce so that people have
access to the healthcare professionals they need to prevent, diagnose,
and treat obesity and eating disorders. We need to look at Medicare and
Medicaid and insure that they provide the services necessary to help
people prevent and treat obesity and its complications so that we
reduce the burden of these diseases in these vulnerable populations.
And we need to promote research in the areas of obesity prevention and
treatment so that we can offer people better and more effective
interventions in the future. These are not small goals but they are
critical to our nation's health. I will continue to work on additional
legislation that will take the next steps toward addressing these and
other related concerns.
For today, I would like to ask all of my colleagues to join me in
taking this very important first step toward reducing obesity and
eating disorders by supporting this important legislation. By passing
this bill we can truly IMPACT the health of our nation.
Mrs. CLINTON. Mr. President, I rise today to speak about a
frightening epidemic in our Nation. A staggering 61 percent of adults
and 13 percent of children and adolescents in our Nation are overweight
or obese. The number of overweight children has doubled and the number
of overweight adolescents has tripled since 1980, according to the
Surgeon General. The estimated direct and indirect annual cost of
obesity in the United States is $117,000,000,000, exceeding even
smoking-related illnesses.
That is why I am pleased to join Senators Frist, Bingaman, Dodd and
others in introducing the Improved Nutrition and Physical Activity Act
of 2003. This bill takes important steps to fund programs that ensure
healthy eating behaviors and improved physical activity. Funding this
program will save Americans vastly more in lower health care costs. The
bill also takes critical steps to educate health professionals to help
us fight this epidemic. With smoking, we learned that a simple
recommendation from a health professional to stop could have a dramatic
impact in reducing smoking. It is just as important to make sure our
health care providers are equipped to help mold healthy behaviors in
our fight against obesity.
I also appreciate Senator Frist's willingness to incorporate
important provisions from my Promoting Healthy Eating Behaviors in
Youth Act of 2002. While it is so important to fight the obesity
epidemic, we should not inadvertently send the wrong message by
[[Page S7250]]
telling our children and adults simply to eat less and exercise.
Unfortunately, many adolescents misinterpret this as a message that
they should eat to achieve the body of a runway model. Anorexia and
bulimia are increasingingly common among our Nation's youth. Recent
data from the 1999 Youth Risk Behavior Survey indicated that 7 percent
of young women who were very thin (body mass index less than 15
percentile) reported taking laxatives or vomiting to lose weight or to
avoid gaining weight. An even larger percentage 9 percent of these very
thin young women reported using diet pills.
While it is important to prevent diabetes and heart disease that may
result from obesity, eating disorders also have their own very serious
consequences. Anorexia nervosa, which will affect 3.7 percent of
American women sometime in their lifetime, leads to heart failure,
kidney failure, and osteoporosis. In fact, a young woman is 12 times
more likely to die than other women her age without anorexia.
Poor eating habits have also led to a ``calcium crisis'' among
American youth. Very few adolescent girls (14 percent get the
recommended daily amount of calcium, placing them at serious risk for
osteoporosis and other bone diseases. Because nearly 90 percent of
adult bone mass is established by the end of adolescent growth period,
the Nation's youth's insufficient calcium intake is truly a calcium
crisis. The consequence of this crisis will be seen years later, when
we are likely to face an unprecedented incidence of osteoporosis in
women.
That is why I am especially grateful to see the use of a balanced
``healthy eating behavior'' definition in the bill, and to see that a
portion of the grants in the bill are set aside for eating disorders
education programs. While we certainly need to focus on exercise and
appropriate nutritional behavior, it is certainly just as important to
teach our children and adults how to engage in regular physical
exercise and lose weight in a healthy way.
I am proud to join Senators Frist, Bingaman, Dodd, Warner, DeWine,
Murray, Lugar, and Landrieu in this important legislative initiative,
and eagerly anticipate its progress as we fight a significant public
health epidemic.
______
By Mr. GRASSLEY (for himself, Mr. Frist, Mr. Graham of South
Carolina, Mr. Alexander, and Mrs. Hutchison):
S. 1173. A bill to amend the Internal Revenue Code of 1986 to
accelerate the increase in the refundability of the child tax credit,
and for other purposes; to the Committee on Finance.
Mr. GRASSLEY. Mr. President, I want to speak briefly about low-income
families and the recently passed tax bill. There has been much heat and
very little light about what we have done in this bill. Most of the
heat has been focused on the conference decision not to retain the
Senate position regarding acceleration from 10 percent to 15 percent as
part of the refundable child credit--a change already scheduled to take
place in 2005.
Before I discuss this matter in detail, let me start by saying that I
agree with my colleagues that we should seek to reconsider this
provision. I am introducing legislation today that will do that, and
will also, of equal, and perhaps greater importance, provide a uniform
definition of a child and make the $1,000 child credit permanent.
Finally, my bill will eliminate the marriage penalty that is contained
in the child credit. This bill is an encompassing effort to help low-
income and middle-income families.
The uniform definition of a child will help hundreds of thousands of
families receive tax benefits for which they are not currently
eligible. As important, it will bring simplification and clarity for
millions of families, ensuring that they are not subject to IRS audit
and collection efforts.
The bill also makes permanent the $1,000 child credit. Otherwise, in
2005 working families with two eligible children will receive a $600
tax increase as the tax credit drops to $700. In addition, the bill
accelerates the refundable calculation from 10 percent to 15 percent.
Finally, the bill addresses the marriage penalty contained in the
child credit. Currently, the child credit phases out at $75,000 for a
single mother and a $110,000 for a married couple. My bill would
eliminate the marriage penalty by having the credit phase out at
$150,000. In addition, it adjusts the phase-out level for inflation.
I do not need to wait for comments from my colleagues or from the
media to take this action. Many from the media who attended my press
conference the day of final passage of the conference report will
recall that I stated then that I would quickly seek to revisit the
child tax credit issues and seek Senate action on permanency of the
child credit.
Let me turn now to the acceleration issue. The media and some members
of Congress seem to have a willful blindness as they discuss this
matter. What are they blind to? The Earned Income Credit, EIC, program
provides great assistance to the very population that is of concern.
Let me give you an example: A family of four making $11,000 will be
eligible for $50 under the refundable child credit. By accelerating it,
as proposed by my bill and by others, they will now be eligible for
$75. What does this family get under EIC? In 2002 they will get a check
for $4,140. That means that family is paying no income tax and payroll
tax of $842 and is getting a payment from the federal government of
almost $3,300 in excess of the payroll tax they pay.
You would never know this from the media accounts and the press
releases. And even if there is a mention of the EIC, I have seen no
mention of the dollar amount--the $4,00-plus check for families with
two children and $2,500 for families with one child. Why is that?
Because the chicken littles are too busy running around. I would hope
that the concept of ``context'' would not be something of which the
media has to be reminded. You would think from reading speeches and
media accounts that the whole tax relief provided in the tax code to
a family making $11,000 is the refundable child credit. The child
credit for these families at this income level is a thimble compared to
the enormous benefits of EIC.
Let me remind my colleagues of the purpose of the child credit: It
was designed to address the perceived penalty for working families as
the EIC began to phase out. In fact, the original proposal of the
refundable child credit that I drafted with Senator Baucus in 2001
would not have begun to take effect until the point where the EIC
begins to phase-out--at approximately $13,500 for a head of household
and $14,500 for married couples.
The Finance Committee heard testimony, and it was the repeated view
of academics, that Congress needed to address the phase-out of the EIC.
There was no testimony to the Senate Finance Committee and I can find
very little in respectable academic discussions that advocated an
increase in the check for EIC recipients--that the EIC top amount of
$4,000 plus for two children or $2,500 for one child was insufficiently
generous.
So that is what was the genesis of the Finance Committee's support
for a child credit--addressing somewhat the EIC phase-out as families
begin to make more money. However, the beginning point of the phase-in
was shifted at the request of some Senators to $10,000. That does not
negate that the underlying purpose was and is to deal with the EIC
phase-out.
This concern about the phase-out is reflected in the actions we took
in conference. By raising the child credit to $1,000 we helped put more
money in the pocket of a single mom with one child making $17,000 to
$20,000.
That single mom making $20,000 will now get a $1,000 check instead of
a $600 check under previous law.
What if we were to only do as some propose and do acceleration to 15
percent but not increase the child credit in 2005 to $1,000?
Yes, it will mean a bit more for those families already receiving a
$4,000-plus check under EIC--and I recognize that every penny counts to
these families. But this proposal will also mean a tax increase on that
single mom making $18,000, that single dad making $19,000 and that
married couple with one child making $20,000. Why? Because they benefit
more from the increase in the child credit to $1,000. The acceleration
will not benefit them; they will quickly meet the maximum child credit.
It is the increase to $1,000 that is the real
[[Page S7251]]
benefit for these families that do not receive the maximum benefits
under EIC.
That is why I urge my colleagues to support my legislation that helps
millions of working families, and doesn't impose a tax on families that
are working hard and getting themselves a little bit better paying job.
And let me close with one other note. My colleagues should remember
that it still takes 3 million taxpayers off the rolls completely. They
will no longer have to pay tax under this legislation. Much of that is
due to the increase in the child credit to $1,000.
Finally, for those who want to talk about income tax relief for low-
income individuals, I would encourage them to remember this is many
ways a bill that is in concert with the 2001 tax relief that created
the 10 percent bracket and provided great income tax relief to singles.
Again, a bigger picture that provides greater context of our work will
show that we are providing broad-based relief to millions of taxpayers.
I urge my colleagues to work with me in passing this full relief for
families. I also think it is important that we pass legislation that
can be passed into law by working with the House and the White House.
We have already passed legislation that deals with just the 10 percent
to 15 percent--the Finance Committee passed it and the Senate passed
it. The Senate is on record on this matter already. Now is the time to
bring real relief and permanent relief to all working families.
______
By Ms. STABENOW (for herself, Mr. Smith, and Mr. Dayton):
S. 1175. A bill to amend the Internal Revenue Code of 1986 to allow a
refundable credit against income tax for the purchase of a principal
residence by a first-time homebuyer; to the Committee on Finance.
Ms. STABENOW. Mr. President, I believe ``home'' is one of the warmest
words in the English language. At the end of a long day, I think the
favorite phrase of every hardworking working man and woman in this
country is: ``Well, I'll see you tomorrow. I'm going home now.''
That is why I rise today to introduce the First Time Homebuyers' Tax
Credit Act of 2003.
The bill I am introducing will spread that warmth by opening the door
to homeownership to millions of hardworking families, helping them
cover the initial down payment and closing costs.
This initiative is in keeping with our longstanding national policy
of encouraging homeownership.
Owning a home has always been a fundamental part of the American
dream.
We, in Congress, have long recognized the social and economic value
in high rates of homeownership through laws that we have enacted, such
as the mortgage interest tax deduction and the capital gains exclusion
on the sale of a home.
Over the life of a loan, the mortgage interest tax deduction can save
homeowners thousands of dollars that they could use for other necessary
family expenses such as education or health care.
These benefits, however, are only available to individuals who own
their own home.
It is important also to note that owning a home is a principle and
reliable source of savings as homeowners build equity over the years
and their homes appreciate.
For many people, it is home equity--not stocks--that help them
through the retirement years.
In addition, owning a home insulates people from spikes in housing
costs.
Indeed, while rents may go up, the costs of a monthly mortgage
payment, in relative terms, will go down over the course of the
mortgage.
In my own State of Michigan, the homeownership rate of 74 percent is
the third highest in the Nation and well above the national rate of 66
percent.
In Oregon, the home State of my bill's lead Republican sponsor,
Senator Gordon Smith, the homeownership rate is 64.3 percent--about 2
percent below the national average.
However, as impressive as these numbers may initially sound, not
everyone enjoys the benefits of homeownership.
For example, homeownership in Michigan among whites is 78 percent;
Native Americans 60 percent; Hispanics 55 percent; African Americans 51
percent; and Asians 50 percent.
A national study by the Fannie Mae Foundation found that in the top
third of income levels, 44 percent of people under the age of 31 owned
their own home.
But, for the lowest third on the income scale, only 15.6 percent
owned their own home--a 28 percent gap!
Why do we face these disparities? Clearly, one of the biggest
barriers to homeownership for working families is the cost of a down
payment and the costs associated with closing a mortgage.
According to the Mortgage Bankers Association, typical closing costs
on an average sized loan of $175,000 can approach approximately $4,000.
Even with relatively recent mortgage products that allow a
downpayment of as little as 3 percent of the value of a home, total
costs can quickly approach over $9,000.
This is an impossible amount to save for those who are scraping by,
working hard to make ends meet.
To address this problem, I am introducing the First Time Homebuyers'
Tax Credit Act of 2003.
My bill authorizes a one-time tax credit of up to $3,000 for
individuals and $6,000 for married couples.
This credit is similar to the existing mortgage interest tax
deduction in that it creates incentives for people to buy a home.
To be eligible for the credit, taxpayers must be first-time
homebuyers who were within the 27 percent tax bracket or lower in the
year before they purchase their home. That is $67,700 for single
filers, $96,700 for heads of household, $112,850 for joint returns.
There is a dollar-for-dollar phase-out beyond the cap.
Normally, tax credits like this are an after-the-fact benefit. They
do little to get people actually into a home.
What is particularly innovative and beneficial about the tax credit
in this bill, however, is that, for the first time, the taxpayer can
either claim the credit in the year after he or she buys a first home
or the taxpayer can transfer the credit directly to a lender at
closing.
The transferred credit would go toward helping with the down payment
or closing costs. This is cash at the table.
As mandated in the bill, the eligible homebuyer would have the money
for the lender from the Treasury within 30 days of application.
I am happy to say that this legislation already has strong support.
Among those who have already written to me in support of this concept
are:
The American Bankers Association; America's Community Bankers; the
Housing Partnership Network; the National Housing Conference; the
National Congress for Community Economic Development; the National
Council of La Raza; the National Association of Affordable Housing
Lenders; the Manufactured Housing Institute; Fannie Mae; Freddie Mac;
National Community Reinvestment Coalition; Standard Federal Bank;
Habitat for Humanity, and, the National American Indian Housing
Council.
I ask unanimous consent that copies of their letters be printed in
the Record.
There being no objection, the letters were ordered to be printed in
the Record.
Habitat for
Humanity International,
Washington, DC, May 12, 2003.
Hon. Debbie Stabenow,
U.S. Senate, Hart Senate Office Building, Washington, DC.
Dear Senator Stabenow: On behalf of Habitat for Humanity
International, I want to commend you for your leadership on
issues of affordable housing and for putting forth
legislation--the First-Time Homebuyers Tax Credit Act--that
will enable low-income families with little or no savings to
overcome the two largest obstacles faced on the path to
homeownership; downpayments and closing costs.
As you know, Habitat for Humanity has witnessed, through
the sale of over 135,000 homes worldwide to Habitat homeowner
families, that homeownership is one of the most important
personal and financial investments for individuals, families,
and communities. By expanding first-time homeownership
opportunities to thousands of low-income families via a one-
time tax credit, the First-Time Homebuyers Tax Credit Act
will help close the homeownership gap and provide new wealth-
building opportunities for thousands who would perhaps in no
other way experience the American Dream.
Habitat for Humanity affiliates across the country address
the issue of daunting financial barriers posed by
downpayments and
[[Page S7252]]
closing costs by charging only a minimal amount or by
enabling potential homeower families to forgo the requirement
altogether, relying on a homeowner's ``sweat equity'' in the
construction of their home as sufficient deposit. While this
legislation may not directly affect the work of our Habitat
affiliates, HFHI is pleased to offer our support to you as we
work together to provide new homeownership opportunities to
strengthen families, revitalize neighborhoods, and close the
homeownership gap among racial groups.
Again, we applaud your commitment to affordable housing
issues and for sponsoring legislation that reflects your
conviction that all Americans should have a decent, safe, and
affordable place in which to live. If we can be of any
assistance, please do not hestitate to contact me or Amy
Randel, Director of Government Relations, at 202/628-9171.
Gratefully yours,
Tom Jones,
Vice President, HFHI/Managing Director.
____
Standard Federal Bank,
Troy, MI, March 27, 2003.
Hon. Debbie A. Stabenow,
Hart Senate Office Building,
Washington, DC.
Dear Senator Stabenow: Standard Federal Bank National
Association (``SFB'') appreciates the opportunity to comment
on the proposed First-Time Homebuyers' Tax Credit Act of
2003. This letter is written on behalf of SFB and all of its
LaSalle Bank Corporation (``LBC'') affiliates.
LBC is a subsidiary of ABN AMRO Bank N.V. (``Bank'') which
is headquartered in Amsterdam, the Netherlands. The Bank has
over $519 billion in assets, approximately 111,000 employees,
and a network of approximately 3,500 offices in over 70
countries and territories. The Bank maintains several
branches, agencies and offices in the United States. In
addition, ABN AMRO Incorporated, a full-service investment
banking, advisory, and brokerage firm, headquartered in New
York, New York, is also a subsidiary of the Bank.
LBC is the financial holding company for the U.S. domestic
banking operations of the Bank and is headquartered in
Chicago. LBC is among the largest foreign financial holding
companies in North America with $90 billion in assets. The
U.S. operations of the Bank include LaSalle Bank National
Association, located in Chicago, Illinois, and Standard
Federal Bank National Association, located in Troy, Michigan.
These banks maintain over 400 offices in Illinois, Michigan,
and Indiana.
The advantages of home ownership are both obvious and
clearly instrumental in providing a secure lifestyle to our
citizens. Owning one's own home is the primary source of
wealth building for most Americans. While rents and other
living expenses increase with inflation, the monthly mortgage
payment can remain constant, and in relative terms will
become an even smaller portion of the family's financial
obligations over time.
An additional benefit to home ownership is the mortgage
interest tax deduction. Home owners can use the money they
save on taxes to meet other family expense, such as education
and health care, benefits which are not available to renters.
We want to express our strong support for the concept of
expanding homeownership opportunities contained in the
proposed First-Time Homebuyers' Tax Credit Act of 2003, which
you have been instrumental in brining up for Congressional
approval. This legislation has the potential to provide a
significant opportunity for home ownership to many families
and individuals who are not able to meet the financial burden
of down payment and closing costs. The First Time Homebuyers'
Tax Credit, perhaps used in conjunction with other available
federal, state, and local homebuyers' incentive programs,
will bring the dream of owning one's own home well within the
grasp of many additional people.
We understand that some details of the program,
particularly as it relates to the transfer of the tax credit
to a lender, remain to be worked out. However, we are
supportive of the concept of the tax credit and of income
limits for participation.
We appreciate the opportunity to comment on this important
legislation and congratulate you for providing leadership to
this effort. We hope that our comments and our support will
assist in bringing the tax credit program to fruition for the
benefit of first time homebuyers.
Sincerely,
Mary M. Fowlie,
Group Senior Vice President.
____
National Community
Reinvestment Coalition,
Washington, DC, March 18, 2003.
Hon. Debbie A. Stabenow,
Senate Hart Building,
U.S. Senate, Washington DC.
Dear Senator Stabenow: On behalf of the National Community
Reinvestment Coalition (NCRC) and our over 600 member
organizations, we would like to express our most sincere
gratitude for taking time out of your busy schedule to
participate in our Congressional Luncheon held on Thursday,
March 13, 2003 at the Senate Hart Building.
Our National Community Reinvestment Coalition (NCRC)
membership and staff truly enjoyed your encouraging and well-
stated remarks. In addition, we are truly grateful to you
regarding your leadership in authoring ``The First Time
Homebuyers Tax Credit Act of 2003'', and we applaud you as a
champion for this cause. We would like for you to know that
we stand willing and anxious to assist you in the
introduction of this bill in the 108th Congress.
Again, thank you for your pioneering spirit and continued
support in assisting those who have encountered economic
injustices. If NCRC can further assist you in eradicating
these causes, please do not hesitate to contact me directly
or our Director of Legislative and Regulatory Affairs,
Crystal Ford, at (202) 628-8866.
Sincerely,
John Taylor,
President and CEO.
____
National Congress for
Community Economic Development,
Washington, DC, April 25, 2003.
Hon. Debbie Stabenow,
U.S. Senator, Hart Senate Office Building, Washington, DC.
Dear Senator Stabenow: The National Congress for Community
Economic Development (NCCED), on behalf of its more than 700
member community development corporations (CDCs) nationwide,
supports the proposed Homeownership Tax Credit bill to be
introduced by Senator Gordon Smith and you.
The proposed legislation is innovative because it provides
homebuyers with the ability to transfer their tax credit to
the lender at closing in order to offset downpayment and
closing costs. Downpayment and closing costs have
consistently been one of the greatest barriers to
homeownership for low and moderate-income families.
NCCED is the national trade association representing more
than 3,600 CDCs nationwide. We were founded in 1970 and since
have advocated for the community economic development
industry, whose work creates wealth, builds healthy and
sustainable communities, and achieves lasting economic
viability. NCCED fulfills its mission of service to its
members working in disinvested urban and rural communities
through education, resource development, advocacy,
networking, training, technology assistance, policy
initiatives, and strategic partnerships.
NCCED's annual conference will be held this year in
Detroit, Michigan on October 9 and 10, 2003. We would welcome
the opportunity for you to share your thoughts with the
expected 500 conference attendees who will be there to learn
from the successes of Detroit's community development
corporations.
Please contact me at (202) 289-9020 if you would like more
information. We look forward to working with you on policy
issues related to community revitalization.
Sincerely,
Roy O. Priest,
President and CEO.
____
The Housing Partnership
Network,
Boston, MA, May 12, 2003.
Senator Deborah Stabenow,
Hart Senate Office Building,
Washington, DC.
Dear Senator Stabenow: On behalf of the Housing Partnership
Network, I would like to extend our support for your proposed
Homeownership Tax Credit Act of 2002. This legislation would
authorize a one-time tax credit of up to $3,000 for
individuals and $6,000 for married couples to help pay
downpayment and closing costs for eligible first-time
homebuyers.
The lack of funds for downpayment and closing costs is a
significant barrier for many lower income families who wish
to purchase a home in communities throughout the country. The
proposed homeownership credit is a particularly innovative
solution to help families overcome this obstacle because of
the transferability feature. By allowing buyers to transfer
the credit to their mortgage lender at closing, the credit
can provide an immediate infusion of cash to help the family
finance the home purchase.
Founded in 1990, the Housing Partnership Network is a
national membership intermediary for regional nonprofit
housing partnerships. The Network currently has 77 members
operating in 37 states. (The full membership list is
attached.) The Network and our members sponsor a range of
programs to provide counseling, mortgage finance, and
downpayment assistance to promote affordable homeownerships
opportunities for low and moderate income families. The
Network's members have provided homeownership counseling to
over 225,000 families and have developed or rehabilitated
200,000 homes.
The Network is a national funding intermediary for the HUD
Housing Counseling Program, and has provided $8 million to
support the counseling programs of 35 organizations over the
last eight years. Focused primarily on homebuyer education,
the program underwrites a range of services, including post-
purchase, foreclosure prevention, and reverse equity mortgage
counseling. There are also homeless assistance and renter
counseling components.
Our member that operates in the Washington, DC area, the
Community Development and Preservation Corporation, is
familiar with the federally authorized homeownership tax
credit in the District of Columbia. This program has been
quite successful and your bill would extend this benefit to
many other communities. The innovative
[[Page S7253]]
transferability feature which you have included in the
legislation will make this resource even more useful to first
time homebuyers.
The proposed credit is a creative approach to use the tax
system to facilitate homeownership for lower income families.
As this bill makes its way through the legislative process,
we would recommend that the income eligibility for the credit
be more narrowly drawn to ensure the public resource is more
efficiently targeted to lower income beneficaries.
We appreciate the leadership you have provide in helping
address the nation's affordable housing crisis, and look
forward to working with you and your staff on this and other
issues.
Sincerely,
Thomas Bledsoe,
President.
____
National Council of La Raza,
Washington, DC, May 21, 2003.
Hon. Deborah Stabenow,
U.S. Senate,
Washington, DC.
Dear Senator Stabenow: On behalf of the National Council of
La Raza (NCLR), I write in support of the First-Time
Homebuyers' Tax Credit Act of 2003. NCLR is the nation's
largest Hispanic constituency-based organization,
representing more than 37 million Latinos nationwide. The
opportunity to become a homeowner is essential to NCLR's
mission to promote economic mobility and financial stability
within the Hispanic community.
As you may know, Latino representation within the
homebuying market is increasing, accounting for 16.3% of all
new homebuyers from 1995 to 2000. That said, we remain
concerned that the rate of Hispanic homeownership, 48%
continues to lag behind the national average of 68%.
Homeownership is often the largest and single most
important asset for a family, building wealth and improving
community stability. Further initiatives that facilitate
homeownership opportunities are essential for improving
Hispanic and low-income neighborhoods. Too many working
Latino families are unable to save enough money for closing
costs and downpayments, and are barred from attaining the
American dream of homeownership. Legislation such as yours
will break down barriers to homeownership, of which
affordability is a major component.
NCLR looks forward to working with you on this and other
innovative affordable housing efforts. Please contact Janis
Bowdler, Housing Policy Analyst, (202) 776-1748, to discuss
further ways in which we can work together on these important
issues.
Sincerely,
Raul Yzaguirre,
President/CEO.
____
National Association of
Affordable Housing Lenders,
March 12, 2003.
Hon. Debbie A. Stabenow,
Hart Senate Office Building,
Washington, DC.
Dear Senator Stabenow: The National Association of
Affordable Housing Lenders (NAAHL), which represent America's
leaders in community lending and investment, strongly
supports the proposed First-Time Homebuyers' Tax Credit Act
of 2003, to help working families buy their first home
through a tax credit to help cover the downpayment and
closing costs.
NAAHL is the only association devoted to increasing private
capital investment in low- and moderate-income communities.
NAAHL represents 200 organizations that are leaders in
lending and investing, including more than 70 insured
depository institutions, 45 non-profit providers and 800
individuals. Members include the who's who of private sector
lenders and investors in affordable housing and community
development: banks, thrifts, insurance companies, community
development corporations, mortgage companies, loan consortia,
financial intermediaries, pension funds, foundations, local
and national nonprofits, and public agencies.
As you well know, the number of working families with
critical housing needs has continued to grow in recent years,
and working families have identified the lack of affordable
housing as one of their biggest problems. The First-Time
Homebuyers' Tax Credit Act would make it significantly easier
for many households to realize the American dream of
homeownership by providing them with a valuable resource for
overcoming one of the biggest barriers to homeownership--the
cost of a downpayment and closing costs.
The proposed legislation evolves from longstanding public
policy to create incentives to homeownership because of the
inherent benefits of homeownership for both individuals and
society. Your bill effectively complements the existing
mortgage interest tax deduction--which saves families
thousands of dollars for other necessary expenditures after a
home has been acquired--by providing a tax credit that
facilitates the first-time purchase of a home for working
families. The legislation also addresses another key concern,
narrowing the homeownership gap between the lowest and
highest income groups, and among different races.
NAAHL and our member companies look forward to working
closely with you to enact this legislation. We share your
goal of expanding homeownership opportunities, and sincerely
appreciate your commitment to helping make housing more
affordable.
Sincerely,
Judy Kennedy,
President.
____
Manufactured Housing Institute,
March 18, 2003.
Hon. Debbie A. Stabenow,
Senate Hart Office Building,
Washington, DC.
Dear Senator Stabenow: The Manufactured Housing Institute
(MHI) supports the ``First-Time Homebuyers' Tax Credit Act of
2003,'' which we understand you will be introducing in the
near future.
This legislation would permit a one-time tax-credit to
first-time homebuyers which can be used for down payment and
closing costs in connection with the purchase of a principal
residence. This will help credit-worthy homebuyers overcome
the biggest impediment to purchasing a first home today--the
accumulation of sufficient funds to finance the down payment
and closing costs required at loan settlement.
If structured properly, this program will help credit-
worthy low- and moderate-income homebuyers to purchase and
remain in manufactured homes for many years to come.
Sincerely,
Chris Stinebert,
President, Manufactured Housing Institute.
____
Fannie Mae,
May 13, 2003.
Hon. Debbie Stabenow,
Senate Hart Office Building,
Washington, DC.
Dear Senator Stabenow: I understand that you will be
introducing a bill shortly that would provide for a one-time
tax credit for first time homebuyers in America's lowest tax
brackets.
Your legislation, The Homeownership Tax Credit Act of 2003,
providing a tax credit of up to $3,000 for moderate-income
individuals, is the kind of assistance low and moderate
income families can harness to better afford the American
Dream of homeownership.
As you know, the availability of funds for a downpayment is
a key barrier to homeownership. Our National Housing Survey
found that 32 percent of Americans say they would have
difficulty making a downpayment for the purchase of a home.
We at Fannie Mae support the use of tax credits to promote
homeownership and appreciate your work in this regard.
We look forward to continuing our work with you to increase
the opportunity for more Americans to own homes of their own.
Sincerely,
William R. Daley.
____
Washington, DC, May 12, 2003
Hon. Debbie A. Stabenow,
U.S. Senate, Hart Senate Office Building,
Washington, DC.
Dear Senator Stabenow: I am writing to commend your efforts
in introducing the ``FIRST-TIME HOMEBUYERS' TAX CREDIT ACT OF
2003''. Your legislation providing a tax credit to assist
first-time homebuyers with closing costs or down payment
assistance is very important
Becasue of innovative products and services offered by the
banking industry, the United States has achieved the highest
homeownership rate in our nation's history. Nevertheless, as
you have recognized, millions still face barriers to
homeownership because of difficulty in accumulating an
adequate down-payment or because of costs associated with the
loan transaction. By providing assistance in the form of a
Federal tax rebate, paid before a borrower closes on a loan,
your legislation can make homeownership a reality for many
more Americans.
Thank you for your leadership on this issue.
Sincerely,
Floyd E. Stoner,
Executive Director, Congressional
Relations and Public Policy,
American Bankers Association.
____
Freddie Mac,
Washington, DC, May 5, 2003.
Hon. Debbie Stabenow,
U.S. Senate, Senate Hart Office Building,
Washington, DC.
Dear Senator Stabenow: Freddie Mac is pleased to support
your legislation, The Homeownership Tax Credit Act of 2003.
We appreciate your extraordinary leadership in broadening
homeownership opportunities for America's working families
and look forward to continuing to work with you to achieve
this common goal.
The Homeownership Tax Credit Act addresses one of the
primary barriers that many working families and other
Americans face in trying to buy a home, the cost of a down
payment and the closing costs involved in the purchase of a
home. Your legislation takes an innovative approach to
knocking down this barrier to homeownership by providing a
tax credit that the taxpayer can either claim in the year
after he or she buys a first home or the taxpayer can
transfer the credit directly to a lender at closing.
At Freddie Mac, we work to help America's families realize
the dream of homeownership, by making low-cost mortgage
financing available to families every day. Freddie Mac has
made mortgage financing available for more than 27 million
homes. We are strongly committed to improving the quality of
life for homeowners and renters by making decent, accessible
housing a reality for America's families.
[[Page S7254]]
As a member of the Senate Committee on Banking, Housing and
Urban Affairs, you have consistently demonstrated your
outstanding support for increasing homeownership in America,
and we look forward to working with you to help America's
families realize the American Dream of homeownership.
Sincerely,
Dwight Fettig,
Director, Congressional Relations.
____
National American Indian Housing Council, Office of
Governmental Affairs,
Washington, DC, May 8, 2003
Hon. Debbie Stabenow,
U.S. Senate,
Washington, DC.
Dear Senator Stabenow: I write today to let you know that
you have the support of the National American Indian Housing
Council for your Homeownership Tax Credit bill. We will be
watching for when the bill is introduced so we can be sure to
inform our members.
The National American Indian Housing Council is a national
membership organization representing over 400 of the 564
federally-recognized tribes and their tribally designated
housing entities on low-income housing, mortgage lending,
finance and economic development issues. We currently have
ten member tribes from your home state of Michigan.
Although much of our effort goes to helping tribal housing
agencies build and finance homes for tribal members where the
real estate market is nearly non-existent, we are always
looking to help those tribal members that are ready and able
for homeownership, but are driven away by high down-payments
and closing costs associated with buying a home. Your idea to
offer a transferable tax credit to first-time homebuyers
would be very helpful. We believe in the benefits of
homeownership and support your effort for making it less
cumbersome for lower income Americans.
Please do not hesitate to contact me for further
information or for any assistance you might need in the
passage of this legislation.
Sincerely,
Russell Sossamon,
Chairman.
____
June 3, 2003.
Hon. Debbie Stabenow,
U.S. Senate, Hart Senate Office Building,
Washington, DC.
Dear Senator Stabenow: I want to take this opportunity to
express America's Community Bankers' support for your
initiative to provide Americans the opportunity to own their
own home. The First Time Homebuyers' Tax Credit Act of 2003
is greatly needed to address the current affordable housing
crisis in this country.
Homeownership is an important goal for ACB. Our members
originate more than 25 percent of all U.S. mortgages. This
legislation will assist first-time homebuyers and lenders by
converting federal income tax credits into cash for down
payments and closing fees. We support giving qualified first-
time buyers the option of either handing over their credit to
their lenders or using it later to reduce their own personal
income taxes.
Over the years, ACB members have helped people with owning
a home. Your initiative will create additional opportunities
for our members to continue assisting first-time homebuyers
in securing a mortgage.
ACB urges your colleagues in the House of Representatives
to support this legislation and increase the number of new
American homeowners. We applaud your efforts in offering a
solution to a problem many Americans face.
Thank you for your leadership on this issue.
Sincerely,
Robert R. Davis,
Executive Vice President and Managing
Director, Government Relations.
Earlier today, at a press conference, Senator Smith and I were also
joined by the Mortgage Bankers Association of America and we have
received positive comments from the National Association of
Homebuilders about my legislation.
Clearly, the breadth and diversity of support is strong for this
legislation.
This is a bold and aggressive effort to reach out to a large number
of working families to help them get into this first home.
The Joint Committee on Taxation has estimated that up to 16.8 million
working people would get into their first home over the next seven
years because of this new tax credit.
People like Christine Nelson, with whom I met this morning. Christine
is a working mom. She works as an administrative assistant for a
national association. She is carefully saving up to buy her first home.
In addition to supporting her daughter, however, Christine has
student loans that she is paying for.
These multiple obligations make it difficult for her to come up with
that $9,000 I mentioned earlier.
The $3,000 tax credit she is eligible for would make a tremendous
difference in her life. It would get her and her daughter into that
first home much faster.
We are working to send a message to Christine and other people all
over the country that if you are working hard to save up enough to get
into that first home, the Federal Government will make a strategic
investment in your family--it will offer a hand up.
This is not unlike what we already do through the mortgage interest
tax deduction for millions of people who are fortunate enough already
to own their own home.
We certainly won't do all the hard work for you. You must be frugal
and save and do most of the work yourself, but we, in Congress,
understand that it is good for America to enhance homeownership.
We also understand that this sort of investment in working families
stimulates the economy.
No one can deny that when the First Time Homebuyers' Tax Credit is
enacted and used by millions of people, every single time the credit is
used, it will be stimulative.
Why?
Because it means someone bought a house. And that generates economic
activity for multiple small business people. Realtors. Lenders. House
appraisers. Inspectors. Title insurers. And so on. And there is a
ripple of economic activity by the new homeowners as they fix up their
new homes and get settled in.
Housing has been such a bright light in the sluggish economy we've
faced for the last few years. My bill is designed to ensure that the
housing sector remains a strong component of our economy.
Finally, let me close by emphasizing how happy and proud I am that
this tax legislation is bipartisan. In a closely divided Senate, and a
closely divided Congress, it is so important to work across the aisle
and Senator Smith, who is a real champion for good housing policy, is
someone I want to work closely with on this bill and other important
housing legislation. He understands how housing tax benefits help build
strong communities and provide economic security for millions of
families.
I am committed to seeing this legislation passed. And, I welcome the
chance to work with all of my colleagues to see the dream of
homeownership expanded to all people.
Home. Sentimentally, it is one of the warmest words in the English
language. Economically, it is the key word in bringing millions of
families in from the cold and letting them begin building wealth for
themselves and their family.
I ask unanimous consent that the text of this legislation be printed
in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1175
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``First-Time Homebuyers' Tax
Credit Act of 2003''.
SEC. 2. REFUNDABLE CREDIT FOR FIRST-TIME HOMEBUYERS.
(a) In General.--Subpart C of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
refundable credits) is amended by redesignating section 36 as
section 37 and by inserting after section 35 the following
new section:
``SEC. 36. PURCHASE OF PRINCIPAL RESIDENCE BY FIRST-TIME
HOMEBUYER.
``(a) Allowance of Credit.--In the case of an individual
who is a first-time homebuyer of a principal residence in the
United States during any taxable year, there shall be allowed
as a credit against the tax imposed by this subtitle for the
taxable year an amount equal to 10 percent of the purchase
price of the residence.
``(b) Limitations.--
``(1) Maximum dollar amount.--
``(A) In general.--The credit allowed under subsection (a)
shall not exceed the excess (if any) of--
``(i) $3,000 ($6,000 in the case of a joint return), over
``(ii) the credit transfer amount determined under
subsection (c) with respect to the purchase to which
subsection (a) applies.
``(B) Inflation adjustment.--In the case of any taxable
year beginning after December 31, 2003--
``(i) the $3,000 amount under subparagraph (A) shall be
increased by an amount equal to $3,000, multiplied by the
cost-of-living adjustment determined under section 1(f)(3)
for the calendar year in which the taxable year begins by
substituting `2002' for `1992' in subparagraph (B) thereof,
and
[[Page S7255]]
``(ii) the $6,000 amount under subparagraph (A) shall be
increased to twice the $3,000 amount, as adjusted under
clause (i) for the taxable year.
If the $3,000 amount as adjusted under clause (i) is not a
multiple of $10, such amount shall be rounded to the nearest
multiple of $10.
``(2) Taxable income limitation.--
``(A) In general.--If the taxable income of the taxpayer
for any taxable year exceeds the maximum taxable income in
the table under subsection (a), (b), (c), or (d) of section
1, whichever is applicable, to which the 25 percent rate
applies, the dollar amounts in effect under paragraph
(1)(A)(i) for such taxpayer for the following taxable year
shall be reduced (but not below zero) by the amount of the
excess.
``(B) Change in return status.--In the case of married
individuals filing a joint return for any taxable year who
did not file such a joint return for the preceding taxable
year, subparagraph (A) shall be applied by reference to the
highest taxable income of either such individual for the
preceding taxable year.
``(c) Transfer of Credit.--
``(1) In general.--A taxpayer may transfer all or a portion
of the credit allowable under subsection (a) to 1 or more
persons as payment of any liability of the taxpayer arising
out of--
``(A) the downpayment of any portion of the purchase price
of the principal residence, and
``(B) closing costs in connection with the purchase
(including any points or other fees incurred in financing the
purchase).
``(2) Credit transfer mechanism.--
``(A) In general.--Not less than 180 days after the date of
the enactment of this Act, the Secretary shall establish and
implement a credit transfer mechanism for purposes of
paragraph (1). Such mechanism shall require the Secretary
to--
``(i) certify that the taxpayer is eligible to receive the
credit provided by this section with respect to the purchase
of a principal residence and that the transferee is eligible
to receive the credit transfer,
``(ii) certify that the taxpayer has not received the
credit provided by this section with respect to the purchase
of any other principal residence,
``(iii) certify the credit transfer amount which will be
paid to the transferee, and
``(iv) require any transferee that directly receives the
credit transfer amount from the Secretary to notify the
taxpayer within 14 days of the receipt of such amount.
Any check, certificate, or voucher issued by the Secretary
pursuant to this paragraph shall include the taxpayer
identification number of the taxpayer and the address of the
principal residence being purchased.
``(B) Timely receipt.--The Secretary shall issue the credit
transfer amount not less than 30 days after the date of the
receipt of an application for a credit transfer.
``(3) Payment of interest.--
``(A) In general.--Notwithstanding any other provision of
this title, the Secretary shall pay interest on any amount
which is not paid to a person during the 30-day period
described in paragraph (2)(B).
``(B) Amount of interest.--Interest under subparagraph (A)
shall be allowed and paid--
``(i) from the day after the 30-day period described in
paragraph (2)(B) to the date payment is made, and
``(ii) at the overpayment rate established under section
6621.
``(C) Exception.--This paragraph shall not apply to
failures to make payments as a result of any natural disaster
or other circumstance beyond the control of the Secretary.
``(4) Effect on legal rights and obligations.--Nothing in
this subsection shall be construed to--
``(A) require a lender to complete a loan transaction
before the credit transfer amount has been transferred to the
lender, or
``(B) prevent a lender from altering the terms of a loan
(including the rate, points, fees, and other costs) due to
changes in market conditions or other factors during the
period of time between the application by the taxpayer for a
credit transfer and the receipt by the lender of the credit
transfer amount.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) First-time homebuyer.--
``(A) In general.--The term `first-time homebuyer' has the
same meaning as when used in section 72(t)(8)(D)(i).
``(B) One-time only.--If an individual is treated as a
first-time homebuyer with respect to any principal residence,
such individual may not be treated as a first-time homebuyer
with respect to any other principal residence.
``(C) Married individuals filing jointly.--In the case of
married individuals who file a joint return, the credit under
this section is allowable only if both individuals are first-
time homebuyers.
``(D) Other taxpayers.--If 2 or more individuals who are
not married purchase a principal residence--
``(i) the credit under this section is allowable only if
each of the individuals is a first-time homebuyer, and
``(ii) the amount of the credit allowed under subsection
(a) shall be allocated among such individuals in such manner
as the Secretary may prescribe, except that the total amount
of the credits allowed to all such individuals shall not
exceed the amount in effect under subsection (b)(1)(A) for
individuals filing joint returns.
``(2) Principal residence.--The term `principal residence'
has the same meaning as when used in section 121. Except as
provided in regulations, an interest in a partnership, S
corporation, or trust which owns an interest in a residence
shall not be treated as an interest in a residence for
purposes of this paragraph.
``(3) Purchase.--
``(A) In general.--The term `purchase' means any
acquisition, but only if--
``(i) the property is not acquired from a person whose
relationship to the person acquiring it would result in the
disallowance of losses under section 267 or 707(b) (but, in
applying section 267 (b) and (c) for purposes of this
section, paragraph (4) of section 267(c) shall be treated as
providing that the family of an individual shall include only
the individual's spouse, ancestors, and lineal descendants),
and
``(ii) the basis of the property in the hands of the person
acquiring it is not determined--
``(I) in whole or in part by reference to the adjusted
basis of such property in the hands of the person from whom
acquired, or
``(II) under section 1014(a) (relating to property acquired
from a decedent).
``(B) Construction.--A residence which is constructed by
the taxpayer shall be treated as purchased by the taxpayer.
``(4) Purchase price.--The term `purchase price' means the
adjusted basis of the principal residence on the date of
acquisition (within the meaning of section 72(t)(8)(D)(iii)).
``(e) Denial of Double Benefit.--No credit shall be allowed
under subsection (a) for any expense for which a deduction or
credit is allowed under any other provision of this chapter.
``(f) Basis Adjustment.--For purposes of this subtitle, if
a credit is allowed under this section with respect to the
purchase of any residence, the basis of such residence shall
be reduced by the amount of the credit so allowed.
``(g) Property to Which Section Applies.--
``(1) In general.--The provisions of this section apply to
a principal residence if--
``(A) the taxpayer purchases the residence on or after
January 1, 2003, and before January 1, 2010, or
``(B) the taxpayer enters into, on or after January 1,
2003, and before January 1, 2010, a binding contract to
purchase the residence, and purchases and occupies the
residence before July 1, 2011.''.
(b) Conforming Amendments.--
(1) Subsection (a) of section 1016 of the Internal Revenue
Code of 1986 (relating to general rule for adjustments to
basis) is amended by striking ``and'' at the end of paragraph
(27), by striking the period at the end of paragraph (28) and
inserting ``, and'', and by adding at the end the following
new paragraph:
``(29) in the case of a residence with respect to which a
credit was allowed under section 36, to the extent provided
in section 36(f).''.
(2) Section 1324(b)(2) of title 31, United States Code, is
amended by striking ``or'' before ``enacted'' and by
inserting before the period at the end ``, or from section 36
of such Code''.
(c) Clerical Amendment.--The table of sections for subpart
C of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 is amended by striking the item relating
to section 36 and inserting the following new items:
``Sec. 36. Purchase of principal residence by first-time homebuyer.''.
``Sec. 37. Overpayments of tax.''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2002.
______
By Mr. BYRD:
S. 1176. A bill to complete construction of the 13-State Appalachian
development highway system, and for other purposes; to the Committee on
Environment and Public Works.
Mr. BYRD. Mr. President, today I am introducing legislation designed
to fulfill an important promise made by the Federal Government to the
people of my State and my region some 38 years ago. I am speaking of
the promise to build and complete a network of highways through the
Appalachian region known today as the Appalachian Development Highway
System or ADHS. I look forward to working with my fellow Senators to
have my legislation included in the measure to reauthorize the Federal-
aid Highway Program, one of the most important, if not the most
important, pieces of legislation which will be considered during this
Congress. The Federal-aid Highway Program is at the very core of the
Federal infrastructure investment exercise.
On September 30 of last year, our very capable Federal Highway
Administrator, Ms. Mary Peters, testified before the Committee on
Environment and Public Works on the condition and performance of our
National Highway System. The Administration's Conditions and
Performance Report has
[[Page S7256]]
again reminded us that a great deal more needs to be invested in our
infrastructure if we are not to fall further and further behind in
stemming the deterioration of our nation's highways and bridges and
alleviating congestion on our nation's roads.
At the September 30 hearing, Administrator Peters testified that,
even in the wake of the historic funding increase accomplished through
TEA-21, congestion on our roads continues to worsen. An investment in
our highway infrastructure by all levels of government will have to
increase by more than 65 percent or $42.2 billion per year to actually
improve the condition of our nation's highways. A funding increase of
more than 17 percent or $11.3 billion will be necessary simply to
maintain the current inadequate conditions of our highway network,
where more than one in four of our nation's bridges are classified as
deficient.
Having served as both Chairman and Ranking Member of the Senate
Appropriations Committee, I have sought to do my part by championing
the highest level of Federal highway investment for all fifty States
that is possible under our budget constraints. Earlier this year, I am
pleased to report that the Senate prevailed in the conference with the
House on the Omnibus Appropriations Bill for Fiscal Year 2003 and
rejected every penny of the $8.6 billion cut in highway funding
proposed by President Bush. And just last month, I was pleased to join
with Senators Bond and Reid, the respective Chairman and Ranking Member
of the Surface Transportation Subcommittee, in sponsoring a bipartisan
amendment to the Budget Resolution for Fiscal Year 2004 that boosted
funding for our Federal-aid Highway Program by several billion dollars.
That amendment commanded 79 votes on the Senate floor.
While serving in the other body, I had the great privilege of casting
my vote in favor of establishing the Interstate highway System back in
1958. However, in 1964, it was recognized by the first Appalachian
Regional Commission that while the Interstate Highway System was slated
to provide historic economic benefits to most of our Nation, the system
was designed to bypass the Appalachian Region due to the extremely high
cost associated with building Highways through Appalachia's rugged
topography. As a result, the construction of the interstates would have
had the detrimental effect of drawing passengers and freight, and the
accompanying economic benefits, away from the Appalachian Region.
In 1965, the Congress adopted the Appalachian Regional Development
Act that promised a network of modern highways to connect the
Appalachian Region to the rest of the Nation's highway network and,
even more importantly, the rest of the Nation's economy. Absent the
Appalachian Development Highway System, my region of the country would
have been left solely with a transportation infrastructure of
dangerous, narrow, winding roads which follow the path of river valleys
and stream beds between mountains. These roads are still, more often
than not, two-lane roads that are squeezed into very limited rights-of-
way. They are characterized by low travel speeds and long travel
distances and are often built to inadequate design standards.
One of the observations contained in Administrator Peters' testimony
back in September that especially caught my eye was her statement that
``the condition of higher-order roads, such as interstates, has
improved considerably since 1993 while the condition on many lower-
order roads has deteriorated.'' It appears that the pattern of road
conditions is beginning to mirror the distribution of wealth in our
country, whereby the rich are getting richer while the poor get poorer.
That observation is most pertinent when you consider the challenge of
completing the Appalachian Development Highway System.
We have virtually completed the construction of the Interstate
Highway System and have moved on to many other important transportation
goals. However, the people of my region are still waiting for the
Federal Government to live up to its promise, made some 38 years ago,
to complete the ADHS. The system is still less than 80 percent complete
and I regret to observe that my home State of West Virginia is below
the average for the entire Appalachian Region with only 72 percent of
its mileage complete and open to traffic.
The rationale behind the completion of the Appalachian Development
Highway System is no less sound today than it was in 1964.
Unfortunately, there are still children in Appalachia who lack decent
transportation routes to school; and there are still pregnant mothers,
elderly citizens and others who lack timely road access to area
hospitals. There are thousands upon thousands of people who cannot
obtain sustainable well-paying jobs because of poor road access to
major employment centers. The entire status of the Appalachian
Development Highway System is laid out in great detail in the Cost to
Complete Report for 2002 recently completed by the Appalachian Regional
Commission. This is the most comprehensive report on the status of the
Appalachian Development Highway System to date and I commend the staff
of the Appalachian Regional Commission for their hard work on this
report. The last report was completed in 1997 just prior to
Congressional consideration of TEA-21.
The enactment of TEA-21 signaled a new day in the advancement of the
Appalachian Development Highway System. Through the work of the
Committee on Environment and Public Works, the House Transportation and
Infrastructure Committee, and the Administration, we took a great leap
forward by authorizing direct contract authority from the Highway Trust
Fund to the States for the construction of the ADHS. Up until that
point, funding for the Appalachian Development Highway System had been
limited to uncertain and inconsistent general fund appropriations. By
provding the States of the Appalachian Region with a consistent and
predictable source of funds to move forward on its uncompleted ADHS
segments, TEA-21 served to reinvigorate our efforts to honor the
promise made to the people of the Appalachian Region.
As is made clear in the Cost to Complete Report, this initiative has
been a great success. States are making greater progress toward the
completion of the system than they have in any five-year segment in
recent memory. Since the last Cost to Complete Report, 183 miles of the
system have been opened to traffic and we have successfully brought
down the cost to complete the system by roughly $1.7 billion in Federal
funds.
Back when we were debating TEA-21, some questions were asked as to
how committed the States would be to completing the unfinished segments
to the Appalachian Development Highway System. I am pleased to report
that the 13 States, to date, have succeeded in obligating just under 90
percent of the obligation authority that has been granted to them for
the completion of the system. A 90-percent obligation rate compares
quite favorably to some of the other transportation programs through
which the States were granted multiple years to obligate their funds.
According to the ARC's Cost to Complete Report, the remaining Federal
funds needed to complete the ADHS are now estimated to be $4.467
billion. When adjusted for inflation over the life of the next highway
bill, using the standard inflation calculation for highway projects, a
total of $5.04 billion will need to be authorized to complete the
system. That is a lot of money and I believe that figure deserves some
explanation.
The considerable cost of completing the last 20 percent of the ADHS
is explained by the fact that the easiest segments of the system to
build have already been built. Much of the costs associated with
completing the most difficult unfinished segments are driven by the
requirement to comply with other Federal laws, especially the laws
requiring environmental mitigation measures when building new highways
through rural areas. While the $5.04 billion figure may seem large to
some of my colleagues, I would remind them the last highway bill
authorized more than $218 billion in federal infrastructure investment
over six years. It is my sincere hope and expectation that the next
highway bill will authorize an even greater amount.
Of critical importance to this debate is the fact that the unfinished
segments of the ADHS represent some of most dangerous and most
deficient roadways in our entire Nation. Often lost in our debate over
the necessity to
[[Page S7257]]
invest in our highways is the issue of safety. The Federal Highway
Administration has published reports indicating that substandard road
conditions are a factor in 30 percent of all fatal highway accidents. I
am quite certain that the percentage is a great deal higher in the
Appalachian Region.
The Federal Highway Administration found that upgrading two-lane
roads to four-lane divided highways decreased fatal car accidents by 71
percent and that the widening of traffic lanes has served to reduce
fatalities by 21 percent. These are precisely the kind of road
improvements that are funded through the ADHS. In my state, the largest
segment of unfinished Appalachian Highway, if completed, will replace
the second most dangerous segment of roadway in West Virginia. So, even
those who would question the wisdom of completing these highways in the
name of economic development should take a hard look at the fact that
the people of rural Appalachia are taking their lives in their hands
every day as they drive on dangerous roads.
It is time for this Congress, in concert with the Administration, to
take the last great leap forward and authorize sufficient contract
authority to finally complete the Appalachian Development Highway
System. If we enact another six-year highway bill with sufficient funds
to complete the system, we will finally pay the full costs of the ADHS
almost 45 years after the system was first promised to the people of my
region. The legislation I am introducing today, the ``Appalachian
Development Highway System Completion Act,'' will provide sufficient
contract authority to complete the system. Importantly, it will
guarantee that the states of the Appalachian Region do not pay a
penalty, either through the distribution of minimum allocation funds,
or the distribution of obligation limitation, for receiving sufficient
funds to complete the Appalachian system.
I am very pleased that this Administration has taken on the goal of
completing the ADHS. In her letter accompanying the Cost to Complete
Report, Administrator Peters said ``the completion of the ADHS is an
important part of the mission of the Federal Highway Administration. We
consider the accessibility, mobility and economic stimulation provided
by the ADHS to be entirely consistent with the goals of our agency.''
Ms. Peters further stated that the Appalachian Regional Commission's
2002 Cost to Complete Report, ``provides a sound basis for apportioning
future funding to complete the system.'' I thank Mary Peters and the
entire Federal Highway Administration for their leadership on this
issue and I look forward to working with Ms. Peters and her agency to
ensure that this commitment is borne out in the transportation
reauthorization legislation that is developed by the Congress.
Completion of a new highway bill will be a mammoth task for this
Congress. As I look back over the many years of my public career, one
of the accomplishments of which I am most proud was my amendment
providing an additional $8 billion in funding to break the logjam
during the debate on the Intermodal Surface Transportation Efficiency
Act in 1991. Another was my sponsorship of the Byrd-Gramm-Baucus-Warner
Amendment during the Senate debate of TEA-21 in 1998. That effort
resulted in some $26 billion in funding being added to that bill and
put us on a path to historic funding increases for our nation's highway
infrastructure. I look forward again to working with my fellow Senators
on completion of a bill that makes the necessary investments in our
nation's highways, not just in the Appalachian Region, but across our
entire country.
______
By Mr. HATCH (for himself and Mr. Kohl):
S. 1177. A bill to ensure the collection of all cigarette taxes, and
for other purposes; to the Committee on the Judiciary.
Mr. HATCH. Mr. President, I rise today, with my colleague Senator
Kohl, to introduce S. 1177, the Prevent All Cigarette Trafficking, PACT
Act of 2003. I do so because of my concern that contraband cigarettes
contribute heavily to the profits of organized crime syndicates,
specifically global terrorist organizations. Furthermore, illegal
cigarette trafficking has had a damaging impact on the economies of
numerous States.
Organized crime syndicates typically purchase cigarettes in States
with low taxes and transport the product into states wit high taxes to
illegally sell to small retailers below market costs. The Internet has
exacerbated this problem. Frequently, these syndicates produce
counterfeit State and city tax stamps in order to make it less risky
for these small retailers to sell them to consumers. For example,
Virginia has a per pack tax of 2.5 cents, while New York City has a per
pack tax of $3. Organized crime syndicates, such as those affiliated
with the Lebanon-based terrorist organization, Hezbollah, have been
known to purchase and transport cigarettes in tractor-trailers up
Interstate 95 from Virginia to New York for resale. As one can easily
see, a State such as New York is losing millions of dollars in revenue
each year because of unpaid taxes on these contraband cigarettes, while
terrorist organizations are making millions in profits.
Recent articles in the Washington Post and New York Post revealed
that a cigarette-smuggling ring, which allegedly purchased over 70,000
cartons from undercover Federal agents in a sting operation last fall,
does in fact have ties to Hezbollah. If this group had been successful
in its racketeering scheme, it would have amounted to a loss of nearly
$2.4 million in tax revenue for New York and millions in profits for
Hezbollah, allowing this organization to finance their terrorist
activities.
Members of an organized crime syndicate arrested in Charlotte, NC
last year for smuggling contraband cigarettes from North Carolina to
Michigan were also using their illegal profits to aid Hezbollah,
according to the Charlotte Observer. The Buffalo News reported that one
of the members of the Charlotte syndicate, Mohamad Hammoud, allegedly
has ties to a recently arrested Detroit-area syndicate, which includes
two women from the Seneca Nation of Indians' Cattaraugus reservation.
Because the syndicate transported the cigarettes from North Carolina to
Michigan for resale, Michigan lost $12.50 per carton in sales and
excise taxes. These examples illustrate that cigarette smuggling is not
only a lucrative business for organized crime but also detrimental to
the budgets of many states.
The PACT Act attacks the problem of illegal cigarette trafficking by
these organized crime syndicates through its strengthening of the
Jenkins Act of 1949, 15 U.S.C. Sec. Sec. 375-378, 2003. In its current
form, the Jenkins Act requires tobacco vendors to register with each
State tax administrator in which they sell cigarettes, as well as file
a monthly report that provides shipment information within each State.
Failure to do so is a misdemeanor. Compliance with this statute enables
States to collect cigarette excise, sales and use taxes from consumers.
This legislation, which the distinguished Senator from Wisconsin and I
are introducing, strengthens the Act by increasing the reporting
requirements first established under Jenkins, expressly including
cigarette orders placed through the Internet, lowering the threshold
for cigarettes to be treated as contraband from 60,000 to 10,000,
increasing the criminal penalty for violating the Act to a felony and
creating a substantial civil penalty.
The PACT Act will also provide State attorneys general with the
option to bring actions in federal court, which is a tool desired by
many states. According to a GAO report from last year on Internet
cigarette sales, online cigarette sellers simply do not comply with the
Jenkins Act requirements--in fact most of them defiantly state that
they do not comply with the Jenkins Act. Many State attorneys general
realize that this practice is unfair not only to their individual
States, but also to the brick and mortar retailers located in their
state, placing these businesses at an unfair commercial disadvantage.
Providing these state attorneys general with the ability to bring
actions against these out-of-state Internet vendors for lost revenue is
crucial in leveling the playing field and collecting the rightful
revenue for states like Washington, California, New York, Wisconsin,
Michigan and Rhode Island.
I ask my colleagues to join Senator Kohl and me in our efforts to
help stop the funding of global terrorist organizations and ensure that
States are able
[[Page S7258]]
to recover lost revenue by co-sponsoring and supporting the PACT Act of
2003.
____________________