[House Report 105-275]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-275
_______________________________________________________________________


 
TO EXTEND CERTAIN PROGRAMS UNDER THE ENERGY POLICY AND CONSERVATION ACT

                                _______
                                

 September 26, 1997.--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. 2472]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, to whom was referred the bill 
(H.R. 2472) to extend certain programs under the Energy Policy 
and Conservation Act, 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..........................................     4
Congressional Budget Office Estimate.............................     4
Federal Mandates Statement.......................................     6
Advisory Committee Statement.....................................     6
Constitutional Authority Statement...............................     6
Applicability to Legislative Branch..............................     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. 2472 extends for a period of one year, through 
September 30, 1998, the authority of the Department of Energy 
to buy or lease oil for, operate, and drawdown the Strategic 
Petroleum Reserve. The bill also extends authority for the 
United States to participate in the International Energy 
Agreement for another fiscal year.

                  Background and Need for Legislation

    The Energy Policy and Conservation Act (EPCA) was enacted 
on December 22, 1975, to deal with the chronic energy supply 
shortages, particularly petroleum supply shortages, experienced 
by the United States in the early 1970's. Among other things, 
EPCA authorized the creation of a Strategic Petroleum Reserve 
(SPR) capable of storing up to one billion barrels of oil to 
reduce the disruption from a cut-off in petroleum imports and 
to meet U.S. obligations under the International Energy 
Program. Other provisions in EPCA restrict exports of energy; 
regulate certain joint oil exploration ventures on the Outer 
Continental Shelf; set forth Corporate Average Fuel Economy 
(CAFE) standards; provide a limited antitrust exemption for 
U.S. oil companies that participate in the International Energy 
Program (IEP); and authorize the President to allocate oil 
supplies in an oil emergency in order to comply with the United 
States' obligation under the IEP.

Strategic petroleum reserve

    The SPR was created to protect the United States from 
interruptions in foreign oil supplies. The SPR presently 
consists of six sites on the Gulf Coast in Texas and Louisiana. 
These sites currently contain about 563 million barrels of 
crude oil and have a total storage capacity of approximately 
680 million barrels. The current storage level of oil in the 
SPR is equivalent to approximately 67 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 stop buying oil for the SPR. The SPR costs 
approximately $200 million per year to operate, although recent 
maintenance and repair programs have led to higher costs in the 
past few years. EPCA gives the President the authority to 
drawdown the SPR in the event of a severe energy supply 
interruption.
    H.R. 2472 extends the authorization to maintain, operate, 
and drawdown the SPR for an additional fiscal year, through 
September 30, 1998. Absent this reauthorization, that authority 
would expire on September 30, 1997.

International Energy Program

    The U.S. has participated in the International Energy 
Agreement (IEA) since 1974. The purpose of the IEA is to 
coordinate the responses of oil-consuming nations to oil supply 
disruptions to minimize the global impact of those disruptions. 
EPCA authorizes the President to participate in the program and 
gives the oil companies a limited antitrust exemption for their 
participation.
    H.R. 2472 extends for one fiscal year, through September 
30, 1998, the authority for the United States to participate in 
this program. Absent this extension, authority to participate 
in the IEA would expire on September 30, 1997.

                                Hearings

    The Subcommittee on Energy and Power held a hearing on H.R. 
2472, a bill to extend certain programs under the Energy Policy 
and Conservation Act, on September 16, 1997. The Subcommittee 
received testimony from: The Honorable Elizabeth Anne Moler, 
Deputy Secretary, Department of Energy; Mr. Wayne Curtis, 
Chief, Office of Human Services, National Association for State 
Community Services Programs; Ms. Cheryl DeVol-Glowinski, 
Director, Office of Energy Policy, Indiana Department of 
Commerce, representing the National Association of State Energy 
Officials; Mr. David Bradley, Executive Director, National 
Community Action Foundation; and Mr. S. Lynn Sutcliffe, 
President and CEO of SYCOM Enterprises Inc. on behalf of the 
National Association of Energy Service Companies.

                        Committee Consideration

    On September 16, 1997, the Subcommittee on Energy and Power 
met in open markup session and approved H.R. 2472 for Full 
Committee consideration, without amendment, by a voice vote. 
The Full Commerce Committee met in open markup session on 
September 18, 1997, and ordered H.R. 2472 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 amendments thereto. There were no 
recorded votes taken in connection with ordering H.R. 2472 
reported. A motion by Mr. Bliley to order H.R. 2472 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 finds that 
H.R. 2472 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 25, 1997.
Hon. Tom Bliley,
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. 2472, a bill to 
extend certain programs under the Energy Policy and 
Conservation Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Kathleen 
Gramp.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

H.R. 2472--A bill to extend certain programs under the Energy Policy 
        and Conservation Act

    Summary: H.R. 2472 would extend for one year the Department 
of Energy's (DOE's) authorities related to energy emergencies. 
The bill also would authorize such sums as may be necessary for 
fiscal year 1998 for DOE's activities related to the Strategic 
Petroleum Reserve (SPR).
    Assuming appropriation of the necessary amounts, CBO 
estimates that implementing H.R. 2472 would result in 
additional discretionary spending of about $220 million over 
the next three years. The legislation would not affect direct 
spending or receipts; therefore, pay-as-you-go procedures would 
not apply. H.R. 2472 contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act 
of 1995 (UMRA) and would impose no costs on state, local, or 
tribal governments.
    Estimated cost to the Federal Government: For the purposes 
of this estimate, CBO assumes that the amounts necessary for 
the SPR program will be appropriated near the start of fiscal 
year 1998 and that outlays will follow the historical pattern 
for these activities. The estimated budgetary impact of H.R. 
2472 is shown in the following table.

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal years, in millions of dollars--      
                                                         -------------------------------------------------------
                                                           1996    1997    1998    1999    2000    2001    2002 
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
                                                                                                                
Spending Under Current Law:                                                                                     
    Estimated Budget Authority \1\......................       0       0       0       0       0       0       0
    Estimated Outlays...................................     139      46     111      22       0       0       0
``Such Sums'' Authorizations Projected at the 1997                                                              
 Level:                                                                                                         
    Proposed Changes:                                                                                           
        Estimated Authorization Level...................       0       0     220       0       0       0       0
        Estimated Outlays...............................       0       0     121      77      22       0       0
    Spending Under H.R. 2472:                                                                                   
        Estimated Authorization Level \1\...............       0       0     220       0       0       0       0
        Estimated Outlays...............................     139      46     232      99      22       0       0
``Such Sums'' Authorizations Adjusted for Inflation:                                                            
    Proposed Changes:                                                                                           
        Estimated Authorization Level...................       0       0     226       0       0       0       0
        Estimated Outlays...............................       0       0     124      79      23       0       0
    Spending Under H.R. 2472:                                                                                   
        Estimated Authorization Level \1\...............       0       0     226       0       0       0       0
        Estimated Outlays...............................     139      46     235     101      23       0      0 
----------------------------------------------------------------------------------------------------------------
\1\ The 1996 and 1997 levels are the net amounts appropriated for those years.                                  

    The costs of this legislation fall within budget function 
270 (energy).
    Basis of estimate: The estimated authorization for the SPR 
program is based on the gross rather than the net amount 
appropriated for the current year--$220 million. (The SPR 
program received a net appropriation of zero for both 1996 and 
1997, because the spending authority for both years was offset 
by an equal amount of receipts generated by the sale of oil 
from the reserve.) The estimate does not assume any sale of oil 
from the reserve because none is authorized or mandated by the 
bill. Because H.R. 2472 does not specify the amount authorized 
for the program, the table shows two alternative sets of 
authorization levels for fiscal year 1998: one without an 
adjustment for anticipated inflation ($220 million) and a 
second that includes an adjustment for inflation ($226 
million).
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 2472 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Previous CBO estimate: On May 22, 1997, CBO transmitted a 
cost estimate for S. 417, a bill to extend energy conservation 
programs under the Energy Policy and Conservation Act through 
September 30, 2002, as ordered reported by the Senate Committee 
on Energy and Natural Resources on May 21, 1997. Differences 
between the two estimates reflect differences in the two bills. 
The Senate bill would provide an authorization for a longer 
period of time and would fund several energy conservation 
programs in addition to the SPR. The Senate bill also includes 
provisions related to the leasing of the excess capacity of the 
SPR to foreign governments, which affects direct spending.
    Estimate prepared by: Kathleen Gramp.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1. Energy and Policy Act amendments

    Section 1 extends the EPCA authority to buy or lease oil 
for, operate, and drawdown the Strategic Petroleum Reserve, 
through September 30, 1998, for such sums as may be necessary. 
Absent this extension, authority for the SPR expires September 
30, 1997.
    Section 1 also extends funding and authority for the U.S. 
to participate in the International Energy Agreement (IEA) for 
one fiscal year, through September 30, 1998, and authorizes 
such sums as may be necessary. Absent such an extension, U.S. 
participation in the IEA expires at the end of Fiscal Year 
1997.

         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. There are authorized to be appropriated for 
fiscal year [1997] 1998 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 amendment another law) and any rule, 
regulation, or order issued pursuant to such authority, shall 
expire at midnight, September 30, [1997] 1998, 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, September 30, [1997] 1998.
                              * * * * * * *

                  TITLE II--STANDBY ENERGY AUTHORITIES

                              * * * * * * *

                           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 amendment another law) and any rule, 
regulation, or order issued pursuant to such authority, shall 
expire at midnight, September 30, [1997] 1998, 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, September 30 [1997] 1998.
                              * * * * * * *

                                
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