H. Rept. 104-814 - TO EXTEND CERTAIN PROGRAMS UNDER THE ENERGY POLICY AND CONSERVATION ACT THROUGH SEPTEMBER 30, 1997104th Congress (1995-1996)
Committee Report
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[House Report 104-814]
[From the U.S. Government Publishing Office]
104th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 104-814
_______________________________________________________________________
TO EXTEND CERTAIN PROGRAMS UNDER THE ENERGY POLICY AND CONSERVATION ACT
THROUGH SEPTEMBER 30, 1997
_______________________________________________________________________
September 20, 1996.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Bliley, from the Committee on Commerce, submitted the following
R E P O R T
[To accompany H.R. 4083]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, to whom was referred the bill
(H.R. 4083) to extend certain programs under the Energy Policy
and Conservation Act through September 30, 1997, having
considered the same, report favorably thereon without amendment
and recommend that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Committee Consideration.......................................... 3
Rollcall Votes................................................... 3
Committee Oversight Findings..................................... 3
Committee on Government Reform and Oversight..................... 3
New Budget Authority and Tax Expenditures........................ 3
Committee Cost Estimate.......................................... 3
Congressional Budget Office Estimate............................. 4
Inflationary Impact Statement.................................... 6
Advisory Committee Statement..................................... 6
Section-by-Section Analysis of the Legislation................... 6
Changes in Existing Law Made by the Bill, as Reported............ 6
Purpose and Summary
H.R. 4083 extends certain programs under the Energy Policy
and Conservation Act through September 30, 1997. Paragraphs 1
and 2 of H.R. 4083 extend the authorities to buy or lease oil
for, operate, and drawdown the Strategic Petroleum Reserves
through September 30, 1997, and authorize such sums as may be
necessary. Paragraphs 3 and 4 extend funding and authority for
the United States to participate in the International Energy
Agency (IEA) through September 30, 1997, and authorize such
sums as may be necessary. Absent an extension, (1) the
President's authority to drawdown the Reserve in an emergency
might be insufficient or his ability to order a rapid drawdown
if necessary could be delayed, and (2) the ability of oil
companies to participate in oil sharing programs ordered by the
IEA in an emergency would be severely limited.
Background and Need for Legislation
The Energy Policy and Conservation Act (EPCA) was enacted
on December 22, 1975, (Public Law 94-163) to deal with the
chronic energy supply shortages, particularly petroleum supply
shortages, experienced by the United States in the early 1970s.
Among other things, EPCA authorized the creation of a Strategic
Petroleum Reserve (SPR or Reserve) capable of storing up to one
billion barrels of oil to reduce the U.S.'s vulnerability in
the event of a disruption in imported petroleum supplies. EPCA
also authorized U.S. participation in the International Energy
Agreement. Authorization of both of these programs expired June
30, 1996.
The SPR presently consists of six sites on the Gulf Coast
in Texas and Louisiana. These sites currently contain about 582
million barrels of crude oil and have a total storage capacity
of 750 million barrels. The current storage level is equivalent
to approximately 71 days of U.S. imported oil consumption. By
law, the SPR is required to contain one billion barrels of oil.
However, recent budget constraints have forced the Department
of Energy to end plans to expand the SPR's capacity and to
propose to stop buying and to start selling SPR oil. In the
104th Congress, two sales of oil from the Reserve were
authorized to meet budgetary goals and a third has been
proposed.
The purpose of the International Energy Agreement is to
coordinate the responses of oil consuming nations to oil supply
disruptions in order to minimize the global impact of those
disruptions. The authorities being extended by H.R. 4083 allow
the President to participate in the program and give U.S. oil
companies a limited antitrust exemption for their participation
in the program.
Authority to undertake activities related to the Reserve
and the International Energy Agreement expired on June 30,
1996. Concerns have been raised that the expiration of this
authority leaves the President without complete authority to
drawdown the Reserve in an energy emergency and impairs the
ability of U.S. oil companies to participate in the
International Energy Agreement. This short term extension
addresses these concerns and assures that these important
authorities are continued when the Congress adjourns. This
short term extension also gives the Congress additional time to
consider issues involved in a longer term extension.
Hearings
The Subcommittee on Energy and Power held a hearing on H.R.
2965, a bill to extend energy conservation programs under the
Energy Policy and Conservation Act through Fiscal Year 1999,
and for other purposes, on November 9, 1995. The Subcommittee
received testimony from the following witnesses: Mr. C. Kyle
Simpson, Associate Deputy Secretary for Energy Programs, U.S.
Department of Energy; Mr. John Nunley, III, Director, Wyoming
Energy and Conservation Office, representing the National
Association of State Energy Officials; and Mr. Scott Sklar,
Executive Director, Solar Energy Industries Association.
Committee Consideration
On September 18, 1996, the Committee on Commerce met in
open markup session and ordered H.R. 4083, a bill to extend
certain programs under the Energy Policy and Conservation Act
through September 30, 1997, reported to the House, without
amendment, by a voice vote.
Rollcall Votes
Clause 2(l)(2)(B) of rule XI of the Rules of the House
requires the Committee to list the recorded votes on the motion
to report legislation and on amendments thereto. There were no
recorded votes taken in connection with ordering H.R. 4083
reported. A motion by Mr. Bliley to order H.R. 4083 reported to
the House, without amendment, was agreed to by a voice vote, a
quorum being present.
Committee Oversight Findings
Pursuant to clause 2(l)(3)(A) of rule XI of the Rules of
the House of Representatives, the Committee held a legislative
hearing and made findings that are reflected in this report.
Committee on Government Reform and Oversight
Pursuant to clause 2(l)(3)(D) of rule XI of the Rules of
the House of Representatives, no oversight findings have been
submitted to the Committee by the Committee on Government
Reform and Oversight.
New Budget Authority and Tax Expenditures
In compliance with clause 2(l)(3)(B) of rule XI of the
Rules of the House of Representatives, the Committee states
that H.R 4083 would result in no new or increased budget
authority or tax expenditures or revenues.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 403 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimate
Pursuant to clause 2(l)(3)(C) of rule XI of the Rules of
the House of Representatives, the following is the cost
estimate provided by the Congressional Budget Office pursuant
to section 403 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 19, 1996.
Hon. Thomas J. Bliley, Jr.,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4083, a bill to
extend certain programs under the Energy Policy and
Conservation Act through September 30, 1997.
Enacting H.R. 4083 would not affect direct spending or
receipts. Therefore, pay-as-you-go procedures would not apply
to the bill.
If you wish further details on this estimate, we will be
pleased to provide them.
Sincerely,
June E. O'Neill, Director.
Enclosure.
congressional budget office cost estimate
1. Bill number: H.R. 4083.
2. Bill title: A bill to extend certain programs under the
Energy Policy and Conservation Act through September 30, 1997.
3. Bill status: As ordered reported by the House Committee
on Commerce on September 18, 1996.
4. Bill purpose: H.R. 4083 would amend the Energy Policy
and Conservation Act (EPCA) to extend the authorization of
programs and activities related to energy emergencies through
September 30, 1997. The previous authorization for these
activites expired on June 30, 1996. This bill would authorize
the Department of Energy (DOE) to continue to operate the
Strategic Petroleum Reserve, participate in the International
Energy Agency, and conduct related activities through the end
of fiscal year 1997, and would authorize such sums as may be
necessary for these programs.
5. Estimated cost to the Federal Government: As shown in
the following table, we estimate that enacting H.R. 4083 would
result in additional descretionary spending totaling $224
million over the 1997-2002 period, assuming appropriation of
the necessary amounts for fiscal year 1997.
[By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
1996 1997 1998 1999 2000 2001 2002
----------------------------------------------------------------------------------------------------------------
Spending under current law:
Budget authority \1\................................ 290 ...... ...... ...... ...... ...... ......
Estimated outlays................................... 272 128 29 ...... ...... ...... ......
Proposed changes:
Estimated authorization level....................... ...... 224 ...... ...... ...... ...... ......
Estimated outlays................................... ...... 123 79 22 ...... ...... ......
Spending under H.R. 4083:
Estimated authorization level \1\................... 290 224 ...... ...... ...... ...... ......
Estimated outlays................................... 272 251 108 22 ...... ...... ......
----------------------------------------------------------------------------------------------------------------
\1\ The 1996 level is the amount appropriated for that year.
The costs of this bill fall within budget function 270.
6. Basis of estimate: For the purpose of this estimate, we
assume that appropriations will be provided by the start of
fiscal year 1997 and that outlays will follow historical trends
for the affected programs. In the absence of specific
authorization levels, we assume that the amounts appropriated
for the current fiscal year represent the level of funding
necessary to carry out the functions outlined in the bill. The
one exception to this approach is the estimate for operation
and maintenance of SPR facilities. For that account, we have
based our estimate on DOE's current estimate of the program's
requirements for 1997 because the 1996 level includes the one-
time cost of decommissioning one of the SPR sites. Hence, we
project spending for the SPR would total about $220 million in
1997, assuming appropriations consistent with operations and
maintenance needs.
For comparability to the estimate for 1997, the table
includes the $287 million gross appropriation for the SPR
facilities account for 1996. This SPR account received no new
budget authority for 1996 because the entire operation was
offset by collections of $100 million from a sale of oil from
one of the SPR sites and by the transfer of $187 million in
unobligated balances from the SPR petroleum acquisition
account.
7. Pay-as-you-go considerations: None.
8. Estimated impact on State, local, and tribal
governments: The bill contains no intergovernmental mandates as
defined by the Unfunded Mandates Reform Act of 1995 (Public Law
104-4), and would not have any impact on the budgets of state,
local, or tribal governments.
9. Estimated impact on the private sector: This bill would
impose no new private-sector mandates as defined in Public Law
104-4.
10. Previous CBO estimate: In 1996, CBO submitted estimates
of several bills approved by the House Committee on Commerce
and the Senate Committee on Energy and Natural Resources that
would have extended the authorization of the programs
authorized by H.R. 4083. Estimates were provided for H.R. 2596,
a bill to reauthorize the Energy Policy and Conservation Act
through 1999, and for other purposes; H.R. 3868, a bill to
extend certain programs under the Energy Policy and
Conservation Act through September 30, 1996; S. 1605, the
Energy Policy and Conservation Act Amendment Act; and S. 1888,
the Energy Policy and Conservation Act Amendments of 1996. Most
of differences between those estimates and the estimate for
H.R. 4083 reflect differences in the time period and programs
that would be affected by the respective bills.
11. Estimate prepared by: Federal cost estimate--Kathleen
Gramp. Impact on State, local, and tribal governments--Pepper
Santalucia. Impact on the private sector--Patrice Gordon.
12. Estimate approved by: Robert A. Sunshine, for Paul N.
Van de Water, Assistant Director for Budget Analysis.
Inflationary Impact Statement
Pursuant to clause 2(l)(4) of rule XI of the Rules of the
House of Representatives, the Committee finds that the bill
would have no inflationary impact.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
Section-by-Section Analysis of the Legislation
Paragraph 1 of H.R. 4083 authorizes such sums as may be
necessary to carry out the Strategic Petroleum Reserve program
through September 30, 1997. Funds for this program have already
been appropriated through the end of Fiscal Year 1997.
Paragraph 2 of the bill extends the authorities to buy or
lease oil for, operate and drawdown the Strategic Petroleum
Reserves through September 30, 1997. Absent extension of this
authority the President's ability to drawdown the Reserve in an
energy emergency is incomplete.
Paragraph 3 authorizes such sums as may be necessary to
participate in the International Energy Program through
September 30, 1997. Funds for the program have already been
appropriated through the end of Fiscal Year 1997.
Paragraph 4 simply extends the authority for the U.S. to
participate in the International Energy Agency (IEA) through
September 30, 1997. Absent such an extension, the ability of
oil companies to participate in oil sharing programs ordered by
the IEA in an emergency would be severely limited.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3 of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the
bill, as reported, are shown as follows (existing law proposed
to be omitted is enclosed in black brackets, new matter is
printed in italic, existing law in which no change is proposed
is shown in roman):
ENERGY POLICY AND CONSERVATION ACT
* * * * * * *
TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY
* * * * * * *
Part B--Strategic Petroleum Reserve
* * * * * * *
[authorization of appropriations
[Sec. 166. (a) There are authorized to be appropriated--
[(1) such funds as are necessary to develop and
implement the Early Storage Reserve Plan (including
planning, administration, acquisition, and construction
of storage and related facilities) and as are necessary
to permit the acquisition of petroleum products for
storage in the Early Storage Reserve or, if the
Strategic Petroleum Reserve Plan has become effective
under section 159(a), for storage in the Strategic
Petroleum Reserve in the minimum volume specified in
section 154(a) or 155(a)(2), whichever is applicable;
[(2) $1,100,000,000 to remain available until
expended to carry out the provisions of this part to
develop the Strategic Petroleum Reserve Plan and to
implement such plan which has taken effect pursuant to
section 159(a), including planning, administration, and
acquisition and construction of storage and related
facilities, but no funds are authorized to be
appropriated under this paragraph for the purchase of
petroleum products for storage in the Strategic
Petroleum Reserve;
[(3) such funds for the fiscal year ending September
30, 1978, not to exceed $1,210,000,000, as are
necessary to permit the acquisition and storage of
petroleum products in the Strategic Petroleum Reserve,
in accordance with the storage schedule set forth in
the Strategic Petroleum Reserve Plan then in effect in
excess of the minimum volume specified in section
154(a), but not in excess of 500,000,000 barrels; and
[(4) for the fiscal year ending September 30, 1982,
not to exceed $260,000,000 to carry out the provisions
of this part, except--
[(A) acquisition, transportation, and
injection of petroleum products for the
Reserve, and
[(B) the carrying out of any drawdown and
distribution of the Reserve.]
authorization of appropriations
Sec. 166. There are authorized to be appropriated for fiscal
year 1997 such sums as may be necessary to implement this part.
* * * * * * *
Part D--Expiration
expiration
Sec. 181. Except as otherwise provided in title I, all
authority under any provision of title I (other than a
provision of such title amending another law) and any rule,
regulation, or order issued pursuant to such authority, shall
expire at midnight, [June 30, 1996] September 30, 1997, but
such expiration shall not affect any action or pending
proceedings, civil or criminal, not finally determined on such
date, nor any action or proceeding based upon any act committed
prior to midnight, [June 30, 1996] September 30, 1997.
* * * * * * *
TITLE II--STANDBY ENERGY AUTHORITIES
* * * * * * *
Part B--Authorities With Respect to International Energy Program
* * * * * * *
domestic renewable energy industry and related service industries
Sec. 256. (a) * * *
* * * * * * *
(h) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary for purposes of carrying out
the programs under subsections (d) and (e) $10,000,000, to be
divided equitably between the interagency working subgroups
based on program requirements, for each of the fiscal years
1993 and 1994, and such sums as may be necessary for fiscal
year 1995 to carry out the purposes of this subtitle. There are
authorized to be appropriated for fiscal year 1997 such sums as
may be necessary to carry out this part.
* * * * * * *
Part D--Expiration
expiration
Sec. 281. Except as otherwise provided in title II, all
authority under any provision of title II (other than a
provision of such title amending another law) and any rule,
regulation, or order issued pursuant to such authority, shall
expire at midnight, [June 30, 1996] September 30, 1997, but
such expiration shall not affect any action or pending
proceedings, civil or criminal, not finally determined on such
date, nor any action or proceeding based upon any act committed
prior to midnight, [June 30, 1996] September 30, 1997.
* * * * * * *