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Floods Devastate Midwest Farmland; Offshore Drilling Fight; Afghanistan's Leadership in Doubt

Aired June 18, 2008 - 14:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

DON LEMON, CNN ANCHOR: Well, if it wasn't a national disaster before, it is now. The overflowing Mississippi River turns thousands of acres of Illinois farm land into lakes. Crops are lost for this season and many seasons to come.
KYRA PHILLIPS, CNN ANCHOR: Is American oil the answer to America's energy problem? President Bush turns up the pressure to open up the coastlines and the arctic tundra to drilling. That's where Democrats draw the line.

Hello, everyone. I'm Kyra Phillips, live in New York.

LEMON: And I'm Don Lemon, live here at the CNN World Headquarters in Atlanta.

You're in the CNN NEWSROOM.

PHILLIPS: More sandbags, more people trying to save their homes. More levees breaking by the day. The Midwest on the brink of what could be a record flooding disaster. And all the sandbagging, all the volunteers, all the desperate efforts might not be enough to stop it.

LEMON: Oh, boy, yes. And CNN is your severe headquarters. And this is why. Let us tell you, our state-of-the-art weather center.

Chad Myers has your latest forecast. Jacqui Jeras, well, she has your latest iReports. And our weather producers are tracking the floodwaters every inch of the way.

Now, no matter where the floods have been, where they're going, CNN correspondents are there in the field, in the water. And Allan Chernoff is in Oakville, Iowa. He's been out on a boat bringing us brand-new pictures of the devastation. Sean Callebs is in Des Moines County, where people are trying to save their communities. And our Reynolds Wolf is in Quincy, Illinois, where they're bracing for the worst.

Let's get right to it now, Allan Chernoff.

What's going on where you are?

ALLAN CHERNOFF, CNN SR. CORRESPONDENT: Don, that levee-building effort was very intense over here last week. Seven miles down. The entire community around here was working, building up the levee along the Iowa River. Obviously it did not hold. The levee broke on Saturday. By Sunday morning, this is what everyone saw -- cornfields filled with water for miles and miles and miles. More than 21 square miles behind me.

Lost are the corn. Lost are the soy beans, as well as some livestock as well. The farmers did all they could to get their livestock out.

In fact, there is a barn behind me just me over here. Farmers told me that 20,000 hogs were taken out of several barns over there. Tragically, a few remain. In fact, when we were on that boat earlier today, we saw three pigs on the roof of one of the barns. Not these, but even farther out, about a mile and a half out into what is now a lake. And they were just surviving on some corn that had floated to the top of that roof.

But the farmers are doing whatever they can to rescue their livestock. A very, very dire situation here. And all of this, of course, consider after they had invested so much money, time and effort into planting these fields.

Let's learn more about the situation now from Reynolds Wolf -- Reynolds.

REYNOLDS WOLF, CNN METEOROLOGIST: Well, right now we're at one of the staging areas. You know, again, one of the symbols we've had from this flood has been a bag very similar to this.

We're talking about sandbags filled with about 20, 30 pounds of sand. Using as many of these as possible to help stem the flood, stem that tide coming in from the Mississippi.

It is a daunting, daunting assignment, but that's what many people are doing. Not only just people, but also some soldiers.

Right behind me we've got some of our nation's finest. I was talking them a moment ago. And some of these guys have actually been over in the Middle East, they've come back. And I asked them what's the difference in serving over in Iraq and serving here. They said sand is sand.

They have a job to do and they're excited about doing it. It never changes. They're great Americans.

Speaking of Americans, you look around here, we've got many of them in all kinds of staging areas. And what we're doing here is pretty much what we've doing for a good part of the day, just picking up bags and loading them up. One of many loads we're going to do today.

They bring sand over. They put it in piles. They bag it up. And where do they send it? To any community that is going to be fighting these floodwaters.

From here, conditions are pretty good because this city -- Quincy is built upon a bluff. But farther downstream, a different situation. And it's going to be a rough time, especially over the next 24 to 48 hours and through the weekend. So, as long as it takes, we're going to be piling in more of these bags.

That's the story from Quincy. We're going to be here all afternoon, all evening. Let's send it back to you guys.

LEMON: Hey, Reynolds, you know what? I know that you're not wearing -- you don't have a sic (ph) mike. Can you get real close to some of those folks and talk to them and ask them exactly how they feel about this, why they're out there doing this?

WOLF: OK.

Hey, guys, you got a moment? How do you like doing this, seriously? I mean, what does this do for you?

UNIDENTIFIED MALE: It makes you feel good.

WOLF: It makes him feel good. It makes him feel good.

See, that's a true soldier for you. They're out there doing what they can for their country. And this situation in their state. It's a wonderful thing.

LEMON: Absolutely, Reynolds. Great work.

Thanks for bringing those guys over and talking to them. And tell them, nice job. We appreciate everything that they do.

(WEATHER REPORT)

LEMON: CNN is your world headquarters. We've got it all covered for you right here in the CNN NEWSROOM this afternoon.

PHILLIPS: Oil and water may not mix, but they're key ingredients in a fight that's taking shape in Washington right now. President Bush wants Congress to lift the ban on offshore drilling, but Democrats in charge say no way.

CNN's Brianna Keilar is standing by live. She's following it for us.

Hey, Brianna.

BRIANNA KEILAR, CNN CORRESPONDENT: Hi there, Kyra.

Well, there are effectively two bans on offshore oil drilling. One is a congressional ban and the other one is basically an executive ban. It was put into place by former President George Bush when he was president.

Well, President Bush is basically telling Democrats in Congress, you lift your ban and I'll left my ban. Let's listen to some of what he said earlier today.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There is no excuse for delay. As a matter of fact, it's a reason to move swiftly. I know the Democratic leaders have opposed some of these policies in the past. Now that their opposition has helped drive gas prices to record levels, I ask them to reconsider their positions.

(END VIDEO CLIP)

KEILAR: So President Bush there pointing a finger at Democrats. And Democrats in Congress really pointing it right back.

Senate Majority Leader Harry Reid really tying President Bush and John McCain together on this, because Senator John McCain, of course, making the same call yesterday to lift this ban on offshore oil drilling. Now, Reid called this a "cynical campaign ploy." That's a quote. And another quote, he called this "another big giveaway to oil companies."

But bottom line here, Democratic leaders in Congress not planning to make this happen or bow to the president's demands -- Kyra.

PHILLIPS: All right. Brianna Keilar there, live from the White House.

Brianna, thanks so much.

And Democrats want to keep the offshore drilling ban in place. House Speaker Nancy Pelosi says that lifting that ban would benefit oil industry, not consumers. Another Democrat argues that oil companies need to do more drilling in areas where it's already allowed.

Take a listen.

(BEGIN VIDEO CLIP)

REP. PETER DEFAZIO (D), OREGON: Come on, guys. They are not developing what they have now. There's 20 years' supply out there underneath their idle leases that could double our domestic production. And plain and simple, they have haven't developed it. And then when they're done with that, then we can have a debate about more leasing in other places.

(END VIDEO CLIP)

PHILLIPS: Now, offshore drilling looks to be a major issue in the presidential campaign. Democrat Barack Obama wants to keep the ban in place. Republican John McCain wants the lift the federal ban and let states decide for themselves.

Straight ahead, the fighting heats up in Afghanistan.

LEMON: Absolutely, Kyra. And who really has the upper hand, the government or the Taliban?

PHILLIPS: And what's it like to return to your home and find it full of water? We'll get a first-person account from a CNN iReporter.

(COMMERCIAL BREAK)

LEMON: Take a look at -- we've been seeing all these iReports. Our Jacqui Jeras, our meteorologist here, she's been going through all of the iReports for us, and here's what people are saying.

They're telling us that one day your home is warm and dry, the next it is filled with water. And that's exactly what happened to CNN iReporter and Midwest flood evacuee Andrew Sherburne. He sent us this waterlogged iReport after he paddled a canoe back to his home in Iowa City.

Take a look.

(BEGIN VIDEO CLIP)

ANDREW SHERBURNE, IOWA CITY, IOWA: At 1:30 in the morning they came in, told everybody they had 30 minutes to get out even though at this point, the streets were dry. I mean, there was no imminent danger.

And most everybody -- most everybody got out in about 30 minutes, just because the cops wanted to do. But we said, there is no way. We're going to save as much as we can. And we took about two hours. They let us load up about three truckloads before we finally got kicked out.

(END VIDEO CLIP)

LEMON: Well, Andrew is joining us now by telephone.

Andrew, I think you're staying at one of your wife's friend's homes right now for us -- homes right now. Tell us about that, but you seemed awfully calm as well.

SHERBURNE: Yes. Well, you know, there is not much you can do except try to stay as sane as possible. Yes, we're lucky enough to have a furnished apartment that we can go back to, and we have a roof over our heads. And I understand a lot of people aren't quite so lucky.

LEMON: Yes. Tell us about this canoe. I saw you carrying it on your head, and now you're actually paddling down I guess what is a stream now but didn't used to be a stream.

SHERBURNE: Yes. You know, between houses and down the street. And, you know, the whole neighborhood's under water, as you can see that. The water rises up about halfway up the houses.

So it was quite surreal. I mean, it was something I've never seen before in my life.

LEMON: I understand that just, you know, maybe 10 days or so before the flooding you actually got flood insurance. Were you concerned about that, about the flooding? Obviously you good flood insurance, but did you realize it was going to be this imminent?

SHERBURNE: No. I mean, you know, we had a feeling that there might be some flooding that would happen this year, but the flood of 1993, the last flood of record, the water didn't come anywhere near our house. So we were pretty confident that we would be all right. That's what we had been told by our neighbors and our real estate agent.

We just bought the house three weeks before. So we tried to get flood insurance as soon as we could after that, but it wasn't soon enough.

LEMON: Yes, you got flood insurance. Here's the thing that people don't realize. It takes a while for it to kick in, right?

SHERBURNE: Right.

LEMON: And so your flood insurance kicks in maybe 20 days later, 20 days from now, and that's not soon enough for you.

SHERBURNE: Yes, exactly. It's from the day the water enters your home. So it's too late for us to get any insurance coverage.

LEMON: Talk to us about what you're doing here. Can you see this video that we have up with you? It looks like you're holding picture albums in that thing. Describe to us what was happening, what was going through your mind and what you were doing at this exact moment here.

SHERBURNE: Well, we came back. I mean, we were, you know, afraid that we would be evacuated. So we tried to pack up as much as we could before we got the evacuation notice. And we did get a lot of things out that night, but not everything.

And so we returned the next -- you know, a day and a half later to try to save whatever we could that was still high enough out of the water. You know, unfortunately, some of our things that we put up on a bookshelf, the bookshelf collapsed because of the water and those things fell in the water. And there were, you know, other things that we never got off the floor.

LEMON: Yes.

SHERBURNE: But we were lucky we got a lot of our valuables out. And, you know, some of these things can be replaced, couches and appliances. But half the things that are most important.

LEMON: Yes. And you know what? You've been such a great iReporter for us. We have to wrap it up here because of lots of news to get to. If you can tell me in five seconds -- I don't know if you can -- what you want people to know, what advice you have for people who are further down and may be experiencing this.

SHERBURNE: Yes, well, you know, the most important thing is to get out with your life. And, you know, thankfully the police did come and evacuate us. It would have been nice to have a little bit more time. So I'd advise people to start packing now.

LEMON: I'll bet. And I saw your hat. "Go Twins." Is that the sentiment?

SHERBURNE: That's right.

LEMON: All right. Andrew Sherburne, we appreciate it. And our thoughts and prayers are with you.

SHERBURNE: Thank you.

LEMON: All right -- Kyra.

PHILLIPS: Overseas now, four NATO troops have been killed in Afghanistan. It happened during an anti-Taliban operation in the southern Helmand Province.

All four troops were British. Their vehicle was hit by a bomb of some sort late Tuesday. One of the dead is reportedly a woman, the first female British service member killed in Afghanistan. A fifth U.K. soldier was wounded.

That region is where NATO and Afghan forces are preparing for a large-scale assault on what they believe is a Taliban stronghold.

Also, Afghanistan, large parts of it, is swarming with Taliban fighters. So who's still in charge in the no man's land?

CNN's Atia Abawi found more than just one answer to that question.

(BEGIN VIDEOTAPE)

ATIA ABAWI, CNN CORRESPONDENT (voice-over): Afghans escaping war again. A woman takes one last look at her village, one of hundreds leaving their homes near Kandahar to live as refugees once more.

The Azadan (ph) district near Kandahar is just the latest battleground between the Taliban and the coalition of Afghan and NATO forces. Six years after the Taliban were overthrown, Hamid Karzai's government still doesn't control vast areas of the country.

Both al Qaeda and the Taliban have reorganized. There were just two suicide attacks in all of 2003. In 2007, there was an average of one every three days. And U.S. commanders say attacks on coalition forces have risen 50 percent in some areas from last year.

One influential member of Afghanistan's parliament says the Taliban is far from beaten.

DAOUD SULTANZOY, AFGHANISTAN'S ECONOMIC CHAIRMAN: While the Taliban may not be in power because they don't have the strength to hold areas, it's the weakness of the government that provides them with the vacuum, with the oxygen that they are breathing, and coming and creating disturbances in areas.

ABAWI: The government can point to achievements. Most notably, in education.

Over six million children are attending schools, including nearly two million girls. But rural health care remains dismal despite billions of dollars in international aid. The United States has discovered that extending the government's authority and services across Afghanistan is an elusive goal.

ROBERT GATES, DEFENSE SECRETARY: Afghanistan historically had a weak center and very strong provinces, or warlords. So trying to create a government that effectively delivers services to the people in remote areas that fights corruption and can deal with a terrible narcotics problem is a challenge.

ABAWI: The rapid increase in opium cultivation has helped fund the insurgency. And the level of official corruption has alienated many Afghans from the government. Daoud Sultanzoy, who represents a remote area of central Afghanistan, says Karzai needs to give way to fresh ideas.

SULTANZOY: He did not fulfill his responsibilities and the expectation of the people. Even a token of those expectations are not fulfilled. He, I think, served by -- next year this time it will be eight years. And in a democracy, eight years is a long time. And he as probably has served his usefulness, and I think it's time to move on.

ABAWI: President Karzai has said that he can't stamp out the insurgency so long as it has a safe haven in the tribal areas of Pakistan. On that, Washington agrees. But the outgoing commander of U.S. forces in Afghanistan says the latest trouble in Kandahar shows the internal challenges Karzai faces.

GEN. DAN MCNEILL, FMR. COMMANDER, U.S. FORCES IN AFGHANISTAN: Well, he's got a governor down in Kandahar. He's got a provincial police chief. He's got a corps commander down that way. Perhaps he needs to talk to all of them just to make sure that everybody has their eye on the ball.

ABAWI: And while the struggle for the future of their country continues, the vast major of Afghans do what they have always done, survive in the face of adversity.

Atia Abawi, CNN, Atlanta.

(END VIDEOTAPE)

LEMON: Well, despite miles of sandbags and thousands of people trying to save their homes, the Midwest remains on the brink of a record flooding disaster. We're live in the flood zone and in the CNN severe weather center.

(COMMERCIAL BREAK)

(BUSINESS REPORT)

PHILLIPS: We may already recycle aluminum, plastic and glass. How about rainwater?

Jacqui Jeras shows us how.

(BEGIN VIDEOTAPE)

JACQUI JERAS, CNN METEOROLOGIST (voice-over): With rain becoming evermore precious in drought-stricken places, a Canadian engineering professor is pushing a solution. Khosrow Farahbakhsh created a rainwater recycling system for his home using old cistern technology.

KHOSROW FARAHBAKHSH, PROFESSOR, UNIVERSITY OF GEORGIA: It's basically a new twist of a very ancient practice.

JERAS: Water still runs off the roof when it rains. But it's filtered and piped into an underground well. The water can be pumped out manually. Some is piped into the house for indoor use.

FARAHBAKHSH: Right now they're able to collect in our tanks. We use for toilet flushing, doing our laundry, and also outdoor, watering our plants.

JERAS: The system is backed up by the city supply in case it ever runs out. Farahbaakhsh says his family has cut its use of municipal water dramatically.

FARAHBAKHSH: We have saved about 65,000 liters, which is about 30 percent of the water that a family of five would use.

JERAS: But at $7,000, it wasn't cheap. One solution, building rainwater recycling into the cost of a new home as a local developer is now doing. That way, saving water becomes second nature, not just drought relief.

Jacqui Jeras, CNN, reporting.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

PHILLIPS: More on our developing story regarding Boeing and a big win for the company as it's been fighting for a contract for Air Force tankers.

Jamie McIntyre has been following it for us from the Pentagon.

Jamie, what do you know?

JAMIE MCINTRYRE, CNN SR. PENTAGON CORRESPONDENT: Well this is huge, Kyra.

Boeing had said along the process wasn't there. And now, the general accounting offices -- excuse me, the Government Accountability Office has sided with Boeing and said -- you know what -- they may have a point.

Here's what the GAO said today, "Our review of the records let us to conclude that the Air Force had made a number of significant errors that could have affected the outcome of what was a close competition between Boeing and Northrop Grumman. We therefore sustain Boeing's protests."

Now, this recommendation by the GAO is not binding, but it's going to put a lot of pressure on the Pentagon in a decision that's going to really have ramifications that reverberate across the Atlantic. The other competitor that won originally, Northrop Grumman, along with the European EADS company, was something that had really cut across the U.S. and European markets.

And it's also going to cause a big problem for the Pentagon, which has been waiting anxiously to get these new, essentially flying gas stations.

Here's when the Pentagon spokesman Geoff Morrell said just yesterday.

(BEGIN VIDEO CLIP)

GEOFF MORRELL, PENTAGON SPOKESPERSON: This is the No. 1 acquisition priority of the Air Force, it is has to be. It is ten years overdue. The average age of this fleet is 47 years old. These planes desperately need to be replaced, not yesterday, not the year before, but ten years ago. Any further delay would be a real problem. And we believe that the acquisition of the contracting process, that eventually produced Northrop Grumman and EADS as the winner of this deal was a fair and transparent one.

(END VIDEO CLIP)

MCINTYRE: Now, the Air Force is going to issue a statement later today, but you can already see the pressure building. The Senate Armed Services Committee Chairman, Carl Levin, issuing a statement saying, " ... what we need a new, (INAUDIBLE), fair, open process."

This is a huge contract, Kyra. It's $35, $40 billion with the potential of $100 billion over the life of the contract. And Boeing stock, by the way, jumped on this news, a couple of dollars. It was -- opened at 73 bucks a share, went up to 76. It's now trading at about 75.

Big win for Boeing, but it's not over yet.

PHILLIPS: Yes, and it's got to happen. The Air Force needs those new tankers; they are decades old.

Jamie, thanks.

LEMON: Let's talk now about the flooding that is really hitting the Midwest. We're getting new video in from Iowa -- look, you can see some of it here on the monitor -- where floodwaters are engulfing homes, farms and crops. So it may be their homes, it may be their farms, and it may be their crops. Look at that water, right up to the roof line there. But it's going to affect your wallet.

Let's go to straight to CNN senior's correspondent, Allan Chernoff. He joins us now from Oakville, Iowa.

So Allan, we know food prices are at an all-time right now. This is going to affect people's wallets and we really can't say by how much. It's going to be amazing -- once we figure it out.

CHERNOFF: Don, it's going to take a while because what you see behind me, a corn field just filled with water, this is corn, or at least it was to be corn, that we would have been eating, or livestock would have been eating, next year. That's why folks won't feel an immediate impact, but we certainly will hear some impact a little bit later on.

Perhaps -- we're having a little bit of a problem with the microphone, but nonetheless I think we're OK now -- OK.

Now, we're also talking about a situation here where farmers have been chipping in and doing everything they possibly can to prevent this from happening elsewhere. People in the community had worked day and night to build the levee over at the Iowa River, seven miles away from here. They put in five days of work.

We have one of the farmers who owns some of the land here.

Kirk Siegel (ph), very tough to see that levee fail.

KIRK SIEGEL, FARMER: Yes. It was very disappointing, disheartening to everyone in the community who put all their hard work into shore up the levee and try to protect the large investment that all farmers and business have out this area.

CHERNOFF: Kirk, I have to say, I'm incredibly impressed with the community spirit here.

Kirk is actually looking at his submerged farm land.

And Kirk, what is it that you're going to be doing at 6:00 a.m. tomorrow morning by the Mississippi?

SIEGEL: The Mississippi River is still very high. I will be patrolling the levee that has been built up at a bottom-ground that is south of here that has not flooded at this time. And we still need to be keep controlling that to make sure that it's -- retains its integrity and does not break.

CHERNOFF: You're going to be patrolling a levee down there, even though all of your land, or much of your land, is submerged under water right now?

SIEGEL: Yes. This is -- we know what's happened here. We're trying to save what we have and other agriculture producers or businesses, save what we have in another areas that is not flooded at this time. And I, along with many other people, will be patrolling the levees 24 hours a day to make sure that that -- keeps its integrity and does not break.

CHERNOFF: Don, that is what I would call community spirit. Farmers all chipping in together, even though their crops may be lost, they want their neighbors to still have theirs -- Don.

LEMON: Yes. I would call it the American spirit as well, Allan.

And of course, our hearts and prayers go out for Kirk Siegel -- right -- that farmer there. And he is not alone.

Allan Chernoff reporting for us. We appreciate that.

On top of the people who are dealing with this our reporters who are out there, our CNN I-Reporters are all over the flood zone. They're documenting this devastation for us. Their videos, their pictures and their stories are pouring in to the CNN NEWSROOM.

Our Jacqui Jeras shows us some of the best of (ph). She joins us now. She's standing by at what we've been calling our I-Report desk.

You heard me speak to Andrew -- I forget his last name -- Sherburne -- a little bit earlier. What a great I-Reporter. And many of our I-Reporters --

JERAS: Yes, he could have taken my job.

LEMON: Don't say that, but he was pretty good.

Of course, we're concerned about them, their families and what have you and their belongings. But they have been doing some good stuff for us.

JERAS: Well, the next ones (ph) I have to show, Don, are kind of along the same lines, but they're more of an aftermaths. We've shown you a lot of high water pictures, for example, out in the Cedar Rapids area.

But check out these photos. This is the office building of Doug Laiert (ph) from Cedar Rapids. This is the first floor of the office building which is located there on Third Avenue. And he said there were nine feet of water in this area. He said that currents broke out some of the windows, knocked out an interior wall.

Those tables -- I think those are actually conference tables that you're looking at. There you can see -- that's a desk, looks like a fan, those might be speakers maybe from your computer monitor. But look at all the muck that is all over this.

And there you can see, another picture -- parts of the ceiling and lights just hanging off. It's a real testament of all the damage that can be caused by that water. And look at all the dirt. Those walls were actually white at one time.

Thanks for to Doug Laiert for giving us an inside view of the damage that these floodwaters have been holding (ph). It's been a week in Cedar Rapids that you've had that high water, and it's still going down. But you're looking at maybe -- still days to come before that water is all within its banks.

Now, let's go ahead and move on. We're going to take you to remind you of what's going on with some of the roadways. Look at this picture. This is from Johnny Walker (ph). This is a picture from West Quincy, Missouri. It shows you the bridge that used to connect West Quincy and Quincy, Illinois. He says that that bridge has been shut down now altogether. A bridge north of there has been converted to two-way traffic in order to help people move around the area.

Just a reminder, Don, for people -- don't drive through it. I know you're getting frustrated because it's been a while since you've been able to get around. But really play it safe and find that alternate route.

LEMON: Good advice from our meteorologist, Jacqui Jeras, at our I-Report desk. We appreciate that.

Meantime, Jacqui, I'm hearing from our producers we have some breaking news concerning a tornado warning.

We give it to Chad Myers now -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Yes, a lot of spin on a radar picture out of West Palm Beach, very close to Palm Beach Gardens. A tornado warning is now in effect for you. You should be hearing the sirens. If you are not in Palm Beach Gardens, you need to be taking cover on the inside of your home, a basement if you have -- not very many people do have basements there. But if you can, get in the inside of your home, the smallest room, preferably one without windows.

Right now this circulation -- I'm looking right at it -- right here near and just maybe one or two miles northwest of Palm Beach Gardens right now. That could be moving to the east at about 40 miles per hour. That could go right over Juno Beach and the surrounding areas there, right near the Lost Tree golf course and those areas there.

That's going to be running back into the ocean. But right, now it is spinning quite badly (ph).

LEMON: All right. Thank you, Jacqui. Thank you, Chad.

Severe weather is our big story, right here in the CNN NEWSROOM -- Kyra.

PHILLIPS: An update now on the government giveaway of household goods that were supposed to help victims of Hurricane Katrina. Instead, the items, $85 million worth, were given away as surplus. Our special investigations correspondent, Abbie Boudreau, joins us now with an update.

You've been following this now for a few weeks. Pretty fascinating stuff, very disappointing as well, Abbie.

ABBIE BOUDREAU, CNN SPECIAL INVESTIGATIONS UNIT CORRESPONDENT: You're exactly right, Kyra.

Since this story aired last week, state and federal agencies have been scrambling to find out where these household supplies went and to figure out exactly what went wrong. Today at a news conference, top Louisiana officials tell CNN they've been pressuring FEMA to get answers, wanting to know why FEMA was just sitting on tens of millions of dollars worth of brand-new household supplies.

U.S. Senator Mary Landrieu said those badly-need supplies are now on their way to Louisiana.

(BEGIN VIDEO CLIP)

SEN. MARY LANDRIEU (D), LOUISIANA: Two truck loads are on its way to Louisiana. These trucks and loads of materials could also be very helpful to people in Iowa and people in Kansas and people in Missouri. So I would strongly suggest to FEMA to not get rid of them.

(END VIDEO CLIP)

BOUDREAU: Later today on "THE SITUATION ROOM," we'll tell you more about when these supplies are going to make it back to Louisiana and what FEMA has to say about all of this.

PHILLIPS: Well Abbie, it's great to see that your investigation paid off. We want to see lawmakers doing something about it.

Great work.

BOUDREAU: Thanks.

PHILLIPS: Don --

LEMON: All right. Abbie and Kyra, we've gotten used to fuel surcharges on just about everything. But how about this -- speeding tickets? Details next.

(COMMERCIAL BREAK)

PHILLIPS: Leading our Political Ticker, a new poll concerning the wives of the likely major party nominees. Pew Research finds that Americans have heard more about Michelle Obama than Cindy McCain. But not necessarily in a good way. About a quarter say the coverage of Barack Obama's wife has been mostly negative. She's been in the spotlight more during the campaign, and today she co-hosted "The View."

John McCain's wife did "The View" earlier. Only 7 percent in the Pew poll consider her media coverage mostly negative.

LEMON: And Hillary Clinton and Barack Obama have a sit-down next week with some of the Clinton's biggest financial backers. They have been invited to a meeting with both senators in Washington and asked to bring their checkbooks. A letter from Clinton's finance director urges Clinton supporters to give $2,300 -- the maximum allowed -- to Obama's campaign.

PHILLIPS: Congressman William Jefferson plans to face voters in November before he faces a jury in December. The Louisiana Democrat says that he still has power on Capitol Hill, despite being charged with corruption. Jefferson has pleaded not guilty to federal charges of soliciting more than half a million dollars in bribes.

LEMON: And Kyra, I know you enjoy in these type of segments. We've been doing them since you have been on assignment and been doing the morning show, so pay attention to this. Sometimes the best way to bridge the gaps in society is simplest -- one person at a time.

In our continuing series, "Black in America," our Susan Candiotti introduces to a woman who is encouraging people to share of themselves.

(BEGIN VIDEOTAPE)

KITTY OLIVER, WRITER (singing): The young become the old...

SUSAN CANDIOTTI, CNN CORRESPONDENT: Kitty Oliver begins her lectures about race and building bridges with songs.

OLIVER (singing): That's the way of time (ph), and nothing and no one goes unchanged.

I am a curiosity because I don't quite fit into any exact mold.

CANDIOTTI(on camera): And you like that?

OLIVER: I like it. I've come to accept it. Certainly, yes. I've come to accept it. And maybe that's one of the messages I give is if you don't quite fit that might be a good thing.

CANDIOTTI (voice-over): Growing up in Jacksonville, Florida, Kitty Oliver never worried about fitting in. Segregation was the norm in the '50s. Her mom worked in a restaurant and raised Kitty herself.

OLIVER: I couldn't wait to leave home. I always kind of had a sense that there was more out there.

CANDIOTTI: She was among the first African-American students to integrate the University of Florida's main campus in the mid '60s, at a time when the band still played "Dixie" at football games.

Oliver graduated with honors, was a professional singer, and a newspaper reporter for nearly two decades. She saw some of Miami's most turbulent times.

OLIVER: People want to tell their experiences. And people want to be heard.

CANDIOTTI (on camera): Former newspaper reporter and columnist, Kitty Oliver, is now using a new set of skills. Making documentaries, using performance art and lectures to try to spark a dialogue she hopes will shrink racial differences.

OLIVER: So come on this journey with me...

CANDIOTTI (voice-over): In her documentaries, Oliver features oral histories about race, then and now.

This woman remembers her first day integrating an all-white high school.

UNIDENTIFIED FEMALE: Now, I don't remember all of them by name. But I do remember the young lady who escorted me around.

CANDIOTTI: Oliver reunited her with the girl who offered to share her locker.

UNIDENTIFIED FEMALE: I remember it because it had to have been a huge, huge event.

CANDIOTTI: Oliver collects personal stories of race and cultural.

OLIVER: They're aware that this is a legacy that they're passing on, that they're doing something for history. They're putting it down for others.

CANDIOTTI: Her work covers primarily what it's like to be black in America. But it's expanding to other countries.

OLIVER: That's what I'm trying to do -- create another kind of dialogue, another wave of dialoguing about differences -- whatever those differences may be.

CANDIOTTI: And this presidential campaign, her work seems especially significant.

OLIVER: People are going to have to really look into their own hearts of how you're choosing. Are you choosing based on ideas and policies? Or are you really choosing at the end of that voting day based on race?

CANDIOTTI: Oliver encourages these college students to write their own histories, yet wonders...

OLIVER: Will it change the world?

I don't know. But at least I can do some little part to help.

OLIVER (singing): There are not many things in life you can be sure of, except rain and sun. And pretty music can make you smile.

Thank you so much, and we'll continue --

CANDIOTTI: Susan Candiotti, CNN, Boca Raton, Florida.

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LEMON: That's amazing stuff.

Thank you, Kitty for what you do. And great job on that story, Susan.

Do you have any questions about the issues that face black America?

Here's your chance to get answers from some of the most influential names. Go to i-report.com/thedream, and ask away. Your questions will be part of the CNN's "Essence" magazine special event, "Reclaiming the Dream." That's July 19th, right here on CNN.

Then make sure you join us for CNN presents, "Black in America." It is a six-hour television event. It airs July 23rd and 24th only on here on CNN. We saw a preview here in Atlanta the other night. It is amazing. You can see a preview too, at CNN.com/blackinAmerica.

Amazing stuff, Kyra?

PHILLIPS: Pretty awesome.

Straight ahead, everything else related to driving costs more because of high gas prices. But now, even speeding tickets are delivering a little extra grief. That's next in our energy fix segment.

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PHILLIPS: Well, drivers near Atlanta may face a fuel surcharge, not from an airline or a pizza delivery, but from the local police department. That's right, speeding tickets now carry a fuel surcharge.

CNNMoney.com's Poppy Harlow has our energy fix from New York.

Well, Poppy, I guess they're trying anything?

POPPY HARLOW, CNNMONEY.COM: They are. Can you believe it? I was shocked when I heard this story.

But it's pretty interesting, so listen up folks. As gas prices near record levels, a lot of people out there are trying to figure out their own energy fix, including a small town in Georgia. Holly Springs plans to add a $12 fuel surcharge to speeding tickets. Now, the goal is to offset the gas prices that the police department is having to pay, without hitting the taxpayer directly.

So beginning on July 1st, if you're traveling along Interstate 575 through Holly Springs, slow down. Not only will it make your car more fuel sufficient, but it can spare you from a speeding ticket that is getting just a little bit more expensive.

Here's another interesting way to save on gas -- avoid $8 gas. Yes, you heard that right -- $8 gas.

So, where does gas cost nearly eight bucks?

At a lot of rental car locations if you don't refill the gas tank before you return the car. Now, Hertz has backed off of that $8 price. But it's still going to cost you a lot. Take a look at those numbers. Hertz is charging a one-time, $6.99 fee, plus the market price for gas, which is above $4 in most places. And we called some other rental car locations around where we are in New York and found some pretty astonishing prices that look a lot like what people are paying in Europe. Avis and Budget are charging nearly $8 a gallon. Dollar is up to about $7 a gallon to top off your tank. Enterprise is a little more reasonable, but still, they charge more $5 a gallon if you return your car without a full tank.

Enterprise says it never charges more than a 33 percent premium. Well -- that's good.

The energy fix, this is for you. What you want to do, bring your vehicle back full, also bring a receipt along that shows you actually filled it up. And if you typically forget to fill the tank, please pick a rental car company with a more reasonable top-off fee.

We're following the energy fix for you from every angle on our Web site. For some more tips, logon to CNNMoney.com -- Kyra.

PHILLIPS: All right, Poppy, thanks.

HARLOW: Sure.

LEMON: Despite miles of sandbags and thousands of people trying to save their homes, the Midwest remains on the brink of record flooding. A disaster there. We're live in the flood zone and in the CNN weather center.

PHILLIPS: We're also going to have more on Tiger's injury and what it means for the rest of his career. That's later this hour.

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PHILLIPS: A Los Angeles woman says her thong did her wrong. And now she's a panty plaintiff. 52-year-old Creda Patterson (ph) is suing Victoria's Secret saying a defective thong injured her in the eye. Patterson says that she was trying on that low-rise, V-string, when a decorative metallic piece basically just flew off and hit her in the eye, causing permanent damage. Her lawyer blames a design error. Victoria's Secret asked to examine the thong, but so far, has been denied.

The next hour of the CNN NEWSROOM starts right now.