[House Report 105-727]
[From the U.S. Government Publishing Office]
105th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 105-727
_______________________________________________________________________
ENERGY CONSERVATION REAUTHORIZATION ACT OF 1998
_______
September 17, 1998.--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
together with
ADDITIONAL VIEWS
[To accompany H.R. 4017]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, to whom was referred the bill
(H.R. 4017) to extend certain programs under the Energy Policy
and Conservation Act and the Energy Conservation and Production
Act, and for other purposes, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 5
Background and Need for Legislation.............................. 5
Hearings......................................................... 10
Committee Consideration.......................................... 11
Roll Call Votes.................................................. 11
Committee Oversight Findings..................................... 11
Committee on Government Reform and Oversight..................... 11
New Budget Authority, Entitlement Authority, and Tax Expenditures 11
Committee Cost Estimate.......................................... 11
Congressional Budget Office Estimate............................. 11
Federal Mandates Statement....................................... 15
Advisory Committee Statement..................................... 15
Constitutional Authority Statement............................... 15
Applicability to Legislative Branch.............................. 15
Section-by-Section Analysis of the Legislation................... 15
Changes in Existing Law Made by the Bill, as Reported............ 20
Additional Views................................................. 35
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Energy Conservation Reauthorization
Act of 1998''.
SEC. 2. ENERGY POLICY AND CONSERVATION ACT AMENDMENTS.
(a) Interagency Working Groups.--Section 256(h) of the Energy Policy
and Conservation Act (42 U.S.C. 6276(h)) is amended to read as follows:
``(h) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for fiscal years 1999 through 2003 such
sums as may be necessary to carry out subsections (d) and (e), to be
divided equitably between the interagency working subgroups based on
program requirements.''.
(b) State Energy Conservation Program.--Section 365(f) of the Energy
Policy and Conservation Act (42 U.S.C. 6325(f)) is amended to read as
follows:
``(f) For the purpose of carrying out this part, there are authorized
to be appropriated for fiscal years 1999 through 2003 such sums as may
be necessary.''.
(c) Schools and Hospitals.--Section 397 the Energy Policy and
Conservation Act (42 U.S.C. 6371f) is amended to read as follows:
``authorization of appropriations
``Sec. 397. For the purpose of carrying out this part, there are
authorized to be appropriated for fiscal years 1999 through 2003 such
sums as may be necessary.''.
SEC. 3. ENERGY CONSERVATION AND PRODUCTION ACT AMENDMENT.
Section 422 of the Energy Conservation and Production Act (42 U.S.C.
6872) is amended to read as follows:
``authorization of appropriations
``Sec. 422. For the purpose of carrying out the weatherization
program under this part, there are authorized to be appropriated for
fiscal years 1999 through 2003 such sums as may be necessary.''.
SEC. 4. ENERGY SAVINGS PERFORMANCE CONTRACTS.
(a) Sunset.--Section 801(c) of the National Energy Conservation
Policy Act (42 U.S.C. 8287(c)) is amended by striking ``five years
after'' and all that follows through ``subsection (b)'' and inserting
``on October 1, 2003''.
(b) Definition.--Section 804(1) of the National Energy Conservation
Policy Act (42 U.S.C. 8287c(1)) is amended to read as follows:
``(1) The term `Federal agency' means each authority of the
Government of the United States, whether or not it is within or
subject to review by another agency.''.
SEC. 5. TECHNICAL AMENDMENTS.
(a) Energy Policy and Conservation Act.--The Energy Policy and
Conservation Act is amended--
(1) in the table of contents--
(A) by striking ``Sec. 301.'' and all that follows
through ``Reports to Congress.'.'';
(B) by striking ``efficiency'' and inserting
``conservation'' in the item relating to section 325;
(C) by striking ``and private labelers'' in the item
relating to section 326;
(D) by striking the items relating to part E of title
III;
(E) by inserting after the items relating to part I
of title III the following:
``Part J--Encouraging the Use of Alternative Fuels
``Sec. 400AA. Alternative fuel use by light duty Federal vehicles.
``Sec. 400BB. Alternative fuels truck commercial application program.
``Sec. 400CC. Alternative fuels bus program.
``Sec. 400DD. Interagency Commission on Alternative Motor Fuels.
``Sec. 400EE. Studies and reports.'';
(F) by inserting ``Environmental'' after ``Energy
Supply and'' in the item relating to section 505; and
(G) by striking the item relating to section 527;
(2) in section 321(1) (42 U.S.C. 6291(1))--
(A) by striking ``section 501(1) of the Motor Vehicle
Information and Cost Savings Act'' and inserting
``section 32901(a)(3) of title 49, United States
Code''; and
(B) by striking the second period at the end thereof;
(3) in section 322(b)(2)(A) (42 U.S.C. 6292(b)(2)(A)) by
inserting close quotation marks after ``type of product'';
(4) in section 324(a)(2)(C)(ii) (42 U.S.C. 6294(a)(2)(C)(ii))
by striking ``section 325(j)'' and inserting ``section
325(i)'';
(5) in section 325 (42 U.S.C. 6295)--
(A) by striking ``paragraphs'' in subsection
(e)(4)(A) and inserting ``paragraph''; and
(B) by striking ``Ballasts;'' in the heading of
subsection (g) and inserting ``Ballasts'';
(6) in section 336(c)(2) (42 U.S.C. 6306(c)(2)) by striking
``section 325(k)'' and inserting ``section 325(n)'';
(7) in section 345(c) (42 U.S.C. 6316(c)) by inserting
``standard'' after ``meets the applicable'';
(8) in section 362 (42 U.S.C. 6322)--
(A) by inserting ``of'' after ``of the
implementation'' in subsection (a)(1); and
(B) by striking ``subsection (g)'' and inserting
``subsection (f)(2)'' in subsection (d)(12);
(9) in section 391(2)(B) (42 U.S.C. 6371(2)(B)) by striking
the period at the end and inserting a semicolon;
(10) in section 394(a) (42 U.S.C. 6371c(a))--
(A) by striking the commas at the end of paragraphs
(1), (3), and (5) and inserting semicolons;
(B) by striking the period at the end of paragraph
(2) and inserting a semicolon; and
(C) by striking the colon at the end of paragraph (6)
and inserting a semicolon;
(11) in section 400 (42 U.S.C. 6371i) by striking ``(a)'';
(12) in section 400D(a) (42 U.S.C. 6372c(a)) by striking the
commas at the end of paragraphs (1), (2), and (3) and inserting
semicolons;
(13) in section 400I(b) (42 U.S.C. 6372h(b)) by striking
``Secretary shall,'' and inserting ``Secretary shall'';
(14) in section 400AA (42 U.S.C. 6374) by redesignating
subsection (i) as subsection (h);
(15) in section 503 (42 U.S.C. 6383)--
(A) by striking ``with repect to'' and inserting
``with respect to'' in subsection (b); and
(B) by striking ``controlling'' and inserting ``,
controlling,'' in subsection (c)(1); and
(16) in section 552(d)(5)(A) (42 U.S.C. 6422(d)(5)(A)) by
striking ``notion'' and inserting ``motion''.
(b) Energy Conservation and Production Act.--The Energy Conservation
and Production Act is amended--
(1) in the table of contents--
(A) by striking ``rules and regulations'' and
inserting ``regulations and rulings'' in the item
relating to section 106; and
(B) by striking the item relating to section 207 and
inserting the following:
``Sec. 207. State utility regulatory assistance.
``Sec. 208. Authorization of appropriations.''; and
(2) in section 202 (42 U.S.C. 6802) by striking ``(b)
Definitions.--''.
(c) National Energy Conservation Policy Act.--The National Energy
Conservation Policy Act is amended--
(1) in the table of contents--
(A) by striking ``, installation, and financing'' and
inserting ``and installation'' in the item relating to
section 216;
(B) by striking ``Ratings'' and inserting ``Rating
Guidelines'' in the item relating to part 6 of title
II;
(C) by striking the item relating to section 304; and
(D) by striking ``goals'' and inserting
``requirements'' in the item relating to section 543;
(2) in section 216(d)(1)(C) (42 U.S.C. 8217(d)(1)(C)) by
striking ``explictly'' and inserting ``explicitly'';
(3) in section 251(b)(1) (42 U.S.C. 8231(b)(1))--
(A) by striking ``National Housing Act to projects''
and inserting ``National Housing Act) to projects'';
and
(B) by striking ``accure'' and inserting ``accrue'';
(4) in section 266 (42 U.S.C. 8235e) by striking ``(17
U.S.C.'' and inserting ``(15 U.S.C.''; and
(5) in section 551(8) (42 U.S.C. 8259(8)) by striking
``goethermal'' and inserting ``geothermal''.
SEC. 6. MATERIALS ALLOCATION AUTHORITY EXTENSION.
Section 104(b) of the Energy Policy and Conservation Act is amended
by striking ``(1) The authority'' and all that follows through ``(2)''.
SEC. 7. BIODIESEL FUEL USE CREDITS.
(a) Amendment.--Title III of the Energy Policy Act of 1992 (42 U.S.C.
13211-13219) is amended by adding at the end the following new section:
``SEC. 312. BIODIESEL FUEL USE CREDITS.
``(a) Allocation of Credits.--
``(1) In general.--The Secretary shall allocate one credit
under this section to a fleet or covered person for each
qualifying volume of the biodiesel component of fuel containing
at least 20 percent biodiesel by volume purchased after the
date of the enactment of this section for use by the fleet or
covered person in vehicles owned or operated by the fleet or
covered person that weigh more than 8,500 pounds gross vehicle
weight rating.
``(2) Exceptions.--No credits shall be allocated under
paragraph (1) for a purchase of biodiesel--
``(A) for use in alternative fueled vehicles; or
``(B) that is required by Federal or State law.
``(3) Authority to modify percentage.--The Secretary may, by
rule, lower the 20 percent biodiesel volume requirement in
paragraph (1) for reasons related to cold start, safety, or
vehicle function considerations.
``(4) Documentation.--A fleet or covered person seeking a
credit under this section shall provide written documentation
to the Secretary supporting the allocation of a credit to such
fleet or covered person under paragraph (1).
``(b) Use of Credits.--
``(1) In general.--At the request of a fleet or covered
person allocated a credit under subsection (a), the Secretary
shall, for the year in which the purchase of a qualifying
volume is made, treat that purchase as the acquisition of one
alternative fueled vehicle the fleet or covered person is
required to acquire under this title, title IV, or title V.
``(2) Limitation.--Credits allocated under subsection (a) may
not be used to satisfy more than 50 percent of the alternative
fueled vehicle requirements of a fleet or covered person under
this title, title IV, and title V. This paragraph shall not
apply to a fleet or covered person that is a biodiesel
alternative fuel provider described in section 501(a)(2)(A).
``(c) Credit Not a Section 508 Credit.--A credit under this section
shall not be considered a credit under section 508.
``(d) Issuance of Rule.--The Secretary shall, before January 1, 1999,
issue a rule establishing procedures for the implementation of this
section.
``(e) Collection of Data.--The Secretary shall collect such data as
are required to make a determination described in subsection (f)(2)(B).
``(f) Definitions.--For purposes of this section--
``(1) the term `biodiesel' means a diesel fuel substitute
produced from nonpetroleum renewable resources that meets the
registration requirements for fuels and fuel additives
established by the Environmental Protection Agency under
section 211 of the Clean Air Act; and
``(2) the term `qualifying volume' means--
``(A) 450 gallons; or
``(B) if the Secretary determines by rule that the
average annual alternative fuel use in light duty
vehicles by fleets and covered persons exceeds 450
gallons or gallon equivalents, the amount of such
average annual alternative fuel use.''.
(b) Table of Contents Amendment.--The table of contents of the Energy
Policy Act of 1992 is amended by adding at the end of the items
relating to title III the following new item:
``Sec. 312. Biodiesel fuel use credits.''.
Purpose and Summary
The purpose of H.R. 4017 is to extend energy conservation
and export promotion programs authorized by the Energy Policy
and Conservation Act and the Energy Conservation and Production
Act, expand use of energy savings performance contracts
authorized by the National Energy Conservation Policy Act,
restore the authority of the President to allocate energy
materials and equipment under the Defense Production Act of
1950 under certain circumstances to maximize domestic energy
supplies, promote the use of biodiesel fuel, and make technical
corrections.
Background and Need for Legislation
The Energy Policy and Conservation Act (EPCA) was enacted
in 1975 in response to the oil embargo of 1973-74. The purpose
of EPCA was to improve U.S. energy security by establishing the
Strategic Petroleum Reserve, authorizing the International
Energy Program, providing for increased energy efficiency of
automobiles, encouraging greater appliance energy efficiency,
authorizing various energy conservation programs, and by other
means. The Energy Conservation and Production Act (ECPA) was
enacted in 1976 to improve U.S. energy security by amending the
Federal Energy Administration Act, providing an incentive for
domestic energy production, establishing an electric utility
rate design initiative, developing energy conservation
standards for new buildings, providing for energy conservation
assistance for existing buildings and industrial plants, and
other means. The National Energy Conservation Policy Act
(NECPA) was enacted in 1978 to improve U.S. energy security by
promoting energy conservation and other means. The Energy
Policy Act (EPAct) was enacted in 1992 to improve U.S. energy
security through a broad range of programs, including energy
conservation and alternative fueled vehicle programs.
Conservation Programs
Title III of EPCA authorizes the State Energy Conservation
Program (SECP) and the Institutional Conservation Program
(ICP), which were consolidated by the Department of Energy
(DOE) into the State Energy Program (SEP). The SEP provides
grants and technical assistance to States, U.S. territories,
and the District of Columbia to develop and implement State
energy plans that promote energy efficiency. SEP is a block
grant program, giving States broad discretion to shape programs
but requiring States to provide matching funds of at least 20
percent. States, territories, and the District develop and
implement comprehensive plans for achieving specific energy
goals appropriate to their particular needs. The ICP provides
grants on a matching basis to States to upgrade the energy
efficiency of schools and hospitals. Grants are awarded on a
matching basis directly to eligible schools and hospitals.
Early in its history, SECP concentrated its resources on five
mandatory measures, including promoting car pools, enacting
right-on-red legislation, and implementing lighting and thermal
efficiency standards for non-Federal public buildings. The SEP
program now provides greater flexibility and has increasingly
focused on optional measures as these mandatory measures were
implemented. Authorization for the SECP and ICP expired at the
end of Fiscal Year 1993.
Section 422 of ECPA authorizes the Weatherization
Assistance Program. The primary purpose of the weatherization
assistance program is to increase energy conservation by
reducing the burden of energy costs to low-income families,
particularly the elderly, persons with disabilities, and
families with children. Grant awards are provided to all
States, the District of Columbia, and, under certain
circumstances, to Indian tribal organizations. The governor of
each State applies for grant funds and distributes them to
local agencies to weatherize homes. Local service
organizations, usually community action agencies, implement the
program. There are about 750 local community action agencies
participating in the weatherization program. Based on
priorities established through energy audits conducted by local
agencies, the program provides for installation of cost-
effective weatherization measures such as caulking and
weatherstripping, wall and attic insulation, and heating system
improvements. Authorization for the weatherization assistance
program expired at the end of Fiscal Year 1994.
Export Promotion Programs
Title II of EPCA authorizes the Committee on Renewable
Energy Commerce and Trade (CORECT) and the Committee on Energy
Efficiency Commerce and Trade (COEECT). CORECT, established by
the Renewable Energy Industry Development Act of 1983, is an
interagency working group chaired by DOE composed of
representatives of 14 agencies. Its primary mission is to
promote the export of U.S. renewable energy technology. CORECT
consults with industry and non-profit organizations to make
recommendations on how to promote exports of renewable energy
technology and services. COEECT was established by the Energy
Policy Act of 1992, and its intended purposes are much the same
as CORECT. The difference is a focus on promoting the export of
energy efficiency technology instead of renewable energy
technology. Like CORECT, COEECT is aninteragency working group,
chaired by DOE, and composed of representatives from 15 agencies. The
interagency committee is charged with consulting with industry and non-
profit organizations to make recommendations on how to promote exports
of energy efficiency technology and services. Authorization for CORECT
and COEECT expired at the end of Fiscal Year 1995.
Energy Savings Performance Contracts
Energy savings performance contracts (ESPCs) are an
alternative to the traditional method of financing energy
efficiency improvements in Federal buildings through the
appropriation of funds. Under this alternative, Federal
agencies contract with energy service companies, which pay all
the up-front costs of making energy efficiency improvements.
These costs include identifying building energy requirements
and acquiring, installing, operating, and maintaining energy-
efficient equipment. In return, the energy service company
receives a share of the energy cost savings resulting from
these improvements until the contract period expires, which can
be up to 25 years. After that point, the Federal government
retains all the energy cost savings and energy-efficient
equipment. Significantly, energy service companies bear the
risk of performance, and guarantee energy cost savings to
Federal agencies.
Section 155 of the Energy Policy Act of 1992 amended Title
VIII of NECPA, giving Federal agencies the authority to enter
into ESPCs. The Committee recognizes that ESPCs have tremendous
potential to produce significant energy savings at Federal
facilities at the expense of energy service companies. DOE
estimates the ESPCs awarded to date will produce $3 billion in
energy cost savings.
DOE has also developed Super Energy Savings Performance
Contracts (Super ESPCs), a simplified process for Federal
agencies to acquire equipment that will reduce facility costs
by reducing energy consumption. DOE developed Super ESPCs in
response to concerns by Federal agencies that ESPCs were a
difficult procedure, since they must be executed under Federal
Acquisition Regulations that are burdensome for both agencies
and energy service companies. Super ESPCs are similar to
conventional ESPCs, with two exceptions. First, a Super ESPC
blankets a large geographic area, while a conventional ESPC is
used for a specific site. Any Federal agency in the area can
use the Super ESPCs. DOE plans to issue Super ESPCs that cover
the entire country. Second, the Super ESPC substantially
reduces the lead time to contract with energy service companies
for energy efficiency improvements. Under conventional ESPCs,
agency personnel had to do their own contracting for energy
efficiency improvements, a process that can take as long as 18
months. Contracting takes only 3 to 6 months using a Super
ESPC, and DOE specialists can provide guidance to agencies on
the most difficult aspect of the contracting process--proposal
evaluation and award. DOE also has developed technology-
specific Super ESPCs, which emphasize a particular technology,
such as solar collectors.
Technical Errors
Three of the statutes being amended--the Energy Policy and
Conservation Act, the Energy Conservation and Production Act,
and the National Energy Conservation Policy Act--contain a
large number of technical errors, including misspellings,
punctuation errors, and incorrect cross-references. Many of
these errors have been in the statutes since they were enacted
as long as twenty-five years ago.
Energy Materials Allocation Authority
Section 104 of EPCA amended section 101 of the Defense
Production Act of 1950, adding a new subsection (c) granting
the President authority to, by rule or order, require the
allocation of, or priority performance under contracts or
orders relating to, supplies of materials and equipment in
order to maximize domestic energy supplies if the President
makes certain findings. Section 104(b)(1) sunsets the authority
of the President to issue the rules and orders necessary to
execute this authority. The President's authority to allocate
materials was used in the late 1970s, and again in the 1980s
and early 1990s, to facilitate development of the Alaskan North
Slope oil fields. This authority could also be used to assist
electric utilities or oil refineries obtain material or
equipment to repair facilities damaged by natural disasters, or
to expedite repair of pipelines or other facilities during a
drawdown of the Strategic Petroleum Reserve. The President's
authority to issue rules and orders expired on September 30,
1994.
Biodiesel Fuel Use Credit
The Energy Policy Act of 1992 authorized programs to reduce
consumption of petroleum motor fuel by promoting the use of
replacement fuels and alternative fuels. Title III sets forth
mandatory requirements for Federal fleet acquisitions of
alternative fueled vehicles. Title V provides for separate
regulatory mandates for the purchase of alternative fueled
vehicles which apply to: (1) alternative fuel providers; (2)
State government fleets; and (3) private and municipal fleets.
These mandates set forth annual percentages of new light duty
vehicle acquisitions which must be alternative fueled vehicles.
Title V also allows for credits for alternative fueled vehicles
acquired beyond what is legally required. These credits may be
sold and used by other persons or fleets subject to an
alternative fueled vehicle acquisition mandate.
Biodiesel is a renewable diesel fuel substitute that can be
made by chemically combining any natural oil or fat with an
alcohol such as methanol or ethanol. Methanol has been the most
commonly used alcohol in the commercial production of
biodiesel. In Europe, biodiesel is widely available in both its
neat form (100 percent biodiesel, also known as B-100) and in
blends with petroleum diesel. Most European biodiesel is made
from rapeseed oil (a cousin of canola oil). In the United
States, initial interest in producing and using biodiesel has
focused on the use of soybean oil as the primary feedstock,
mainly because the United States is the world'slargest producer
of soybean oil. Biodiesel fuel would be used largely in medium and
heavy duty vehicles, such as buses and trucks, and also in marine
vessels. It has limited potential for light duty vehicles.
Section 301(2) of the Energy Policy Act defines
``alternative fuel'' by listing various fuels. The definition
also gives DOE discretion to add a fuel to this list if the
Secretary determines, by rule, that it (1) is substantially not
petroleum; (2) would yield substantial energy security
benefits; and (3) would yield substantial environmental
benefits. Biodiesel--either neat biodiesel or blends--is not
one of the fuels listed in section 301(2). However, DOE
determined in 1996 that neat biodiesel is an alternative fuel.
The National Biodiesel Board petitioned DOE to issue a
rulemaking determining that a biodiesel blend (B-20) that is,
by volume, 80 percent petroleum and 20 percent biodiesel, is an
alternative fuel. Last March, DOE announced it would issue a
notice of proposed rulemaking addressing the petition by May
1998. No such rule, however, was issued. At hearings held by
the Subcommittee on Energy and Power in July 1998, DOE promised
to issue the proposed rule within days. Again, no rule was
issued. DOE has floated various approaches that might be taken
in a rule, including limiting B-20 as an alternative fuel for
use in heavy duty vehicles, making use of biodiesel mandatory,
and establishing a credit ratio for alternative fueled vehicles
that use biodiesel. However, DOE still has taken no action on
the petition.
According to a May 1998 analysis by the National Renewable
Energy Laboratory (NREL), use of biodiesel has some significant
advantages. First, it would reduce U.S. dependence on foreign
oil. The U.S. transportation sector relies almost exclusively
on petroleum, and biodiesel would replace petroleum. Second,
biodiesel reduces greenhouse gas emissions. According to the
NREL report, ``[d]isplacing petroleum diesel with biodiesel in
urban buses is an extremely effective strategy for reducing
CO2 emissions.'' Third, biodiesel would help reduce
air pollution and related health risks. Biodiesel substantially
reduces some pollutants--particulates, carbon monoxide, and
sulfur dioxide. The Environmental Protection Agency targets
these three emissions because they pose public health risks,
especially in urban areas. Biodiesel increases hydrocarbon life
cycle emissions, but lowers tailpipe emissions. Biodiesel
increases NOx emissions slightly. Fourth, biodiesel
benefits the domestic economy, by reducing spending on foreign
oil imports.
Section 502 of the Energy Policy Act directs DOE to
establish a program to promote the development and use of
domestic replacement fuels in light duty motor vehicles. The
Act provides this program ``shall promote the replacement of
petroleum motor fuels with replacement fuels to the maximum
extent practicable.'' Section 502 directs DOE to determine the
technical and economic feasibility of achieving the goals of
producing sufficient replacement fuels to replace 10 percent of
the projected consumption of motor fuel in the U.S. by 2000,
and 30 percent in 2010. Section 502 left it to DOE, in
consultation with other Federal agencies, to determine the
appropriate program elements to achieve these replacement fuel
goals. Section 301(14) defines the term ``replacement fuel'' as
``the portion of any motor fuel'' that is derived from any one
of a list of specific fuels, including ``fuels (other than
alcohol) derived from biological materials.'' Twenty percent of
biodiesel blend is derived from biological materials, so that
portion appears to meet the definition of ``replacement fuel.''
It is clear DOE will not achieve the replacement fuel goals
established in section 502. DOE estimates actual use of
replacement fuel in 1996 was only 3.1 percent of total highway
motor fuel--2.9 percent was oxygenates blended into gasoline
and 0.2 percent was alternative fuel use. This compares to the
targets of 10 percent in 2000 and 30 percent in 2010. DOE
estimates alternative fueled vehicle sales would have to grow
to between 35 and 40 percent of total light duty vehicle sales
by 1999 and stay at that level to meet the 2000 goal. The
Department concedes that this is extremely unlikely to occur.
DOE estimates Federal, State, and local alternative fueled
vehicle programs could displace about 3 percent of light duty
vehicle motor fuel use in 2010, and replacement fuels in the
form of oxygenates could account for an additional 4.8 to 6.7
percent of fuel use. It appears replacement fuel use in 2010
will account for 10 percent or less of motor fuel use--far
short of 30 percent.
One reason the DOE alternative fueled vehicle programs are
failing to reduce consumption of petroleum motor fuel is that
the Energy Policy Act programs do not require use of
alternative fuel in alternative fueled vehicles. Under section
301(3) of the Act, ``alternative fueled vehicles'' is defined
to include dual fueled vehicles capable of operating on
petroleum motor fuel. This reflects a recognition by Congress
that alternative fuels would not be available to all covered
vehicles all the time. The Energy Policy Act mandates purchases
of alternative fueled vehicles. However, it does not mandate
that these vehicles actually use alternative fuels. Although
the Act has succeeded in boosting the number of alternative
fueled vehicles in the U.S. by more than 60 percent between
1992 and 1998--two-thirds of alternative fueled vehicles in
1996 were dual fueled vehicles, and many of these vehicles
largely use petroleum motor fuel.
There is a need for a comprehensive review of the
effectiveness of the alternative fueled vehicle programs
authorized by the Act. These programs have spurred development
of alternative fueled vehicles. However, they have also failed
to reduce consumption of petroleum motor fuel, since many
alternative fueled vehicles use petroleum motor fuel, not
alternative fuel.
The bill does not designate biodiesel blend as an
``alternative fuel'' under EPAct. Instead, it embraces an
alternative approach that allocates credits for use of
biodiesel fuel in blends with diesel fuel. In particular, the
bill provides that credits for use of biodiesel fuel may be
substituted for the acquisition of alternative fueled vehicles
by fleets and covered persons required to purchase alternative
fueled vehicles. This approach encourages greater use of a
replacement fuel, displaces use of petroleum motor fuels, and
may lead to approaches that encourage greater use of
alternative fuels by alternative fueled vehicles.
Hearings
The Subcommittee on Energy and Power held a hearing on
September 16, 1997, on energy conservation and export promotion
programs authorized by the Energy Policy and Conservation Act
and Energy Conservation and Production Act and proposed
amendments to theNational Energy Conservation Policy Act. The
Subcommittee received testimony from: The Honorable Elizabeth Anne
Moler, Deputy Secretary, U.S. Department of Energy; Mr. Wayne Curtis,
Chief, Office of Human Services, Division of Economic Opportunity,
Illinois Department of Commerce and Community Affairs, on behalf of the
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, SYSCOM
Enterprises, on behalf of the National Association of Energy Services
Companies.
The Subcommittee also held a hearing on July 21, 1998, on
H.R. 2568, the Energy Policy Act Amendments of 1997. The
Subcommittee received testimony from: Mr. Thomas Gross, Deputy
Assistant Secretary for Transportation Technologies, Office of
Energy Efficiency and Renewable Energy, U.S. Department of
Energy; Mr. Jim Gay, President, National Biodiesel Board; Mr.
Russell Teall, Chairman, Biodiesel Development Corporation; Mr.
John Campbell, Corporate Vice President, AG Processing, Inc.;
Mr. Robert Sellers, Maintenance Supervisor, Kansas City Area
Transportation Authority; Mr. Gilbert Sperling, General
Counsel, Natural Gas Vehicle Coalition.
Committee Consideration
On June 11, 1998, the Subcommittee on Energy and Power met
in open markup session and approved H.R. 4017 for Full
Committee consideration, without amendment, by a voice vote. On
August 5, 1998, the Full Committee met in open markup session
and ordered H.R. 4017, the Energy Conservation Reauthorization
Act of 1998, reported to the House, amended, by a voice vote, a
quorum being present.
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. 4017
reported. An amendment by Mr. Schaefer to expand the use of
energy savings performance contracts and restore the
President's authority to allocate energy equipment under
certain circumstances, was agreed to by a voice vote. An
amendment by Mr. Shimkus to amend Title III of the Energy
Policy Act of 1992 by adding a new section to promote biodiesel
fuel use by providing credits for use of fuel, was agreed to by
a voice vote. A motion by Mr. Bliley to order H.R. 4017
reported to the House, amended, 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 legislative
and oversight hearings 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, Entitlement 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. 4017, the Energy Conservation Reauthorization Act of 1998,
would result in no new or increased budget authority,
entitlement 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 402 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 402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 9, 1998.
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. 4017, the Energy
Conservation Reauthorization Act of 1998.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Kathleen
Gramp and Kim Cawley (for federal costs), and Pepper Santalucia
(for the state and local impact).
Sincerely,
June E. O'Neill, Director.
Enclosure.
H.R. 4017--Energy Conservation Reauthorization Act of 1998
Summary: H.R. 4017 would reauthorize various energy
conservation programs of the Department of Energy (DOE) through
fiscal year 2003. The bill would authorize the appropriation of
such sums as necessary for certain international programs, the
Committee on Renewable Energy Commerce and Trade (CORECT), the
Committee on Energy Efficiency Commerce and Trade, and grants
to states for weatherization assistance and other conservation
initiatives. In addition, the bill would extend the
authorization for the Energy Savings Performance Contracts
(ESPC) program through 2003 and would expand the scope of the
program to include legislative and judicial branch agencies.
Other provisions would amend existing law regarding the use of
alternative fuels, including biodiesel fuel, and the
President's authority to allocate materials during energy
emergencies.
CBO estimates that implementing this bill would cost a
total of about $600 million over the 1999-2003 period, assuming
appropriation of the necessary funds. That amount is net of
estimated savings of about $40 million over the same period for
the provision that would encourage increase use of biodiesel
fuel in government vehicles. H.R. 4017 could affect direct
spending; therefore, pay-as-you-go procedures would apply, but
CBO estimates that there would be no significant effect in any
year. The bill contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 4017 is shown in the following table.
The costs of this legislation fall within budget functions 270
(energy) and 800 (general government).
----------------------------------------------------------------------------------------------------------------
By fiscal years, in millions of dollars--
-----------------------------------------------------------
1998 1999 2000 2001 2002 2003
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law:
Budget Authority \1\............................ 156 0 0 0 0 0
Estimated Outlays............................... 158 116 31 8 0 0
``Such Sums'' Authorizations Projected at the 1998
Level
Proposed Changes:
Authorization Level \2\......................... 0 158 148 148 148 148
Estimated Outlays............................... 0 40 119 140 148 148
Spending Under H.R. 4017:
Authorization Level \2\......................... 156 158 148 148 148 148
Estimated Outlays............................... 158 156 150 148 148 148
``Such Sums'' Authorizations Adjusted for Inflation
Proposed Changes:
Authorization Level \2\......................... 0 161 155 158 162 166
Estimated Outlays............................... 0 41 123 147 158 162
Spending Under H.R. 4017:
Authorization Level \1\......................... 156 161 155 158 162 166
Estimated Outlays............................... 158 157 154 155 158 162
----------------------------------------------------------------------------------------------------------------
\1\ The 1998 level is the net amount appropriated for that year.
\2\ The estimated net authorization declines in 2000 because of estimated savings from increased use of
biodiesel fuel in government vehicles.
Basis of estimate: For purposes of this estimate, CBO
assumes that appropriations will be provided near the beginning
of each fiscal year and that outlays will follow historical
trends for the affected programs. In the absence of specified
authorization for these activities, we assume that the amounts
appropriated for fiscal year 1998 represent the level of
funding currently needed to carry out the functions outlined in
the bill. The one exception to this approach is the estimate
for CORECT, which did not receive an appropriation for fiscal
year 1998. In that case, we based our estimates on the
President's request for 1999 of $2 million, which is the amount
DOE estimates would be needed to fund the authorized
activities. The table shows two alternative sets of
authorization levels for fiscal years 1999-2003: one without an
adjustment for anticipated inflation and a second that includes
an adjustment for inflation.
In addition, H.R. 4017 would give managers of motor vehicle
fleets for federal agencies credit for purchasing an
alternatively fueled vehicle if they switch from diesel to
biodiesel and diesel fuel mixtures to operate their existing
vehicles. Biodiesel fuel is a diesel-fuel substitute made from
renewable materials (such as vegetable oils) and can be used in
convention diesel engines. Under the Energy Policy Act, federal
vehicle fleet managers are directed to procure about 15,000
alternatively fueled vehicles (AFVs) annually. These vehicles
are generally more costly to acquire and operate than
comparable conventional vehicles. The premium paid for
alternative fuel vehicles depends on the type of fuel used and
ranges from 2 percent to 200 percent above the cost of a
conventional vehicle. Based on information from DOE, CBO
estimates that, under current law, federal agencies will spend
about $35 million per year to cover the additional cost of
acquiring AFVs that are capable of operating with either
compressed natural gas, liquefied-petroleum gas, methanol,
ethanol, or electricity.
Although biodiesel fuel is more expensive than conventional
diesel fuel, agencies could save money if they chose to use
biodiesel fuel mixtures in existing vehicles instead of
purchasing the types of alternatively fueled vehicles they have
acquired in the past. Because agencies would incur no
additional capital costs, using biodiesel fuel mixtures in
conventional vehicles would be significantly less expensive
than acquiring and operating many types of AFVs. H.R. 4017
would limit the amount of credit that could be generated by use
of biodiesel mixtures to 50 percent of AFV purchases. Thus,
savings from this provision could total nearly $20 million
annually if federal fleet managers were able to achieve the
maximum amount of biodiesel credits allowed. For purposes of
this estimate, CBO estimates that such savings would average
about $10 million a year beginning in fiscal year 2000,
assuming that appropriations are reduced by a corresponding
amount.
Finally, extending and expanding the use of ESPCs could
reduce future spending on energy services, but CBO estimates
that these changes would have no net effect on federal outlays
over the 1999-2003 period. The ESPC program, which under
current law will expire in 2000, allows agencies to use some of
the funds appropriated for energy expenses for investments in
measures that reduce energy consumption. Because of the way
these contracts are structured, EPSCs have no net effect on
agency spending until after the payback period for the
investment, typically about 15 years. At that point,
appropriations for energy services may be lower than they
otherwise would be if the investments were not made. Hence, CBO
estimates that implementing these provisions would not change
the amounts authorized for energy expenses in the near term and
would not result in any significant savings to the federal
government until after 2003. Other provisions of the bill would
not have a significant effect on federal spending.
Pay-as-you-go-considerations: The Balance Budget and
Emergency Deficit Control Act specifies pay-as-you-go
procedures for legislation affecting direct spending or
receipts. The provision regarding use of biodiesel fuel
mixtures in federal vehicles could affect direct spending for
agencies, such as the Bonneville Power Administration and the
Tennessee Valley Authority, that have direct spending
authority. CBO estimates, however, that any effect on direct
spending for such agencies would not be significant.
Estimated impact on State, local, and tribal governments:
H.R. 4017 contains no intergovernmental mandates as defined in
UMRA and would impose no costs on state, local, or tribal
governments. The bill would authorize the appropriation of such
sums as may be necessary for fiscal years 1999 through 2003 for
energy conservation programs that provide assistance to states.
The Weatherization Assistance Program provides funds to states
to make improvements in energy efficiency for low-income
households. This program received about $125 million or fiscal
year 1998. The bill would also authorize funds for the State
Energy Conservation Program, which funds the development and
implementation of statewide energy conservation plans.
Appropriations for this program are about $30 million in fiscal
year 1998.
Estimated impact on the private sector: This bill would
impose no new private-sector mandates as defined in UMRA.
Estimate prepared by: Federal Costs: Kathleen Gramp and Kim
Cawley. Impact on State, Local, and Tribal Governments: Pepper
Santalucia.
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. Short title
This section provides a short title for the bill, the
``Energy Conservation Reauthorization Act of 1998.''
Section 2. Energy Policy and Conservation Act amendments
Subsection (a) amends section 256(h) of the Energy Policy
and Conservation Act to extend the authorization of the
Committee on Renewable Energy Commerce and Trade and the
Committee on Energy Efficiency Commerce and Trade through
Fiscal Year 2003. The subsection authorizes such sums as may be
necessary to carry out the functions of these interagency
working subgroups, to be divided equitably between the
subgroups based on program requirements.
Subsection (b) amends section 365(f) of EPCA to extend the
authorization of the State Energy Conservation Program through
Fiscal Year 2003. The subsection authorizes such sums as may be
necessary to carry out the purposes of the program.
Subsection (c) amends section 397 of EPCA to extend the
authorization of the Institutional Conservation Program through
Fiscal Year 2003. The subsection authorizes such sums as may be
necessary to carry out the purposes of the program.
Section 3. Energy Conservation and Production Act Amendment
The section amends section 422 of the Energy Conservation
and Production Act to extend the authorization of the
Weatherization Assistance Program through Fiscal Year 2003. The
section authorizes such sums as may be necessary to carry out
the purposes of the program.
Section 4. Energy savings performance contracts
Subsection (a) amends section 801(c) of the National Energy
Conservation Policy Act to extend the authority of Federal
agencies to enter into energy savings performance contracts
through Fiscal Year 2003. The authority of Federal agencies to
enter into energy savings performance contracts was added to
NECPA by the Energy Policy Act of 1992. Under the current
language of section 801(c), the authority of Federal agencies
to enter into new contracts under section 801 ``shall cease to
be effective five years after the date procedures and methods
are established under subsection (b).'' Since DOE established
the contract procedures and methods provided in section 801(b)
in a final rule issued on April 10, 1995 (60 FR 18326), the
authority of Federal agencies to enter into energy savings
performance contracts expires on April 10, 2000.
Subsection (b) amends section 801(c) of NECPA to provide a
new definition of ``Federal agency.'' The current definition of
``Federal agency'' is the definition used in the Administrative
Procedures Act (APA) (5 U.S.C. 551(1)). That definition
provides a general rule, defining ``Federal agency'' as ``each
authority of the Government of the United States, whether or
not it is within or subject to review by another agency.''
However, the definition also has a list of exceptions to the
general rule, which includes the Congress and the courts of the
United States.
The new definition of ``Federal agency'' in subsection (b)
is based on the APA definition, but it eliminates the
exceptions listed in the APA definition. By doing so, it
includes all authorities of the Government of the United
States, including legislative and judicial agencies. This
expands the universe of Federal entities that can enter into
energy savings performance contracts, and should result in
greater energy efficiencies.
The courts have determined an ``authority of the Government
of the United States'' is ``any administrative unit with
substantial independent authority in the exercise of specific
functions.'' Soucie v. David, 448 F.2d 1067, 1073 (D.C. Cir.
1971). A leading treatise has suggested that in determining
whether an ``entity is an agency * * * the most important word
in the [APA] definition may be ``authority'.'' 1 Kenneth C.
Davis & Richard J. Pierce, Jr., Administrative Law Treatise,
Sec. 1.2 at 4 (1994). According to the legislative history of
the APA, `` `authority' means any officer or board, whether
within another agency or not, which by law has authority to
take final and binding action with or without appeal to some
superior administrative authority.'' Staff of the Senate Comm.
on the Judiciary, Report on the Admin. Proc. Act, 79th Cong.,
1st Sess. 13 (Comm. Print 1945).
Under the APA definition, agencies that are subunits of
other agencies are Federal agencies if they have substantial
independent authority. For example, the Immigration and
Naturalization Service is a Federal agency, despite the fact it
is under the supervision of the Department of Justice. Koden v.
Dep't of Justice, 564 F.2d 228, 232 (D.C. Cir. 1977); Blackwell
College of Business v. Attorney General, 454 F.2d 928, 933
(D.C. Cir. 1971). Likewise, the Bureau of Prisons is a Federal
agency, although it also is part of the Department of Justice.
White v. Henman, 977 F.2d 292, 293 (7th Cir. 1992); Ramer v.
Saxbe, 522 F.2d 695, 697 (D.C. Cir. 1975). According to the
D.C. Circuit, ``the APA makes the fact that a government
authority's decisions are subject to review irrelevant in
determining whether that authority is an agency * * *.''
Washington Research Project v. HEW, 504 F.2d 238, 248 (D.C.
Cir. 1974).
The status of government contractors under the APA
definition has been the subject of some dispute. The D.C.
Circuit has suggested a contractor may become a governmental
unit if it has authority to make decisions and comes under the
day-to-day supervision of the Federal government. Public
Citizen Health Research Group v. HEW, 668 F.2d 537, 543-44
(D.C. Cir. 1981). One court grappling with the question of
whether a Federal contractor was a Federal agency concluded
``any general definition can be of only limited utility to a
court confronted with one of the myriad organizational
arrangements for getting the business of the government done. *
* * The unavoidable fact is that each new arrangement must be
examined anew and in its own context.'' Washington Research
Project, 504 F.2d at 245-46.
Section 5. Technical amendments
Section 5 makes a host of technical changes to three of the
statutes that are amended by the bill--the Energy Policy and
Conservation Act, the Energy Conservation and Production Act,
and the National Energy Conservation Policy Act. A review of
these statutes indicates there are many technical errors--such
as spelling errors, punctuation errors, and incorrect cross-
references. Some of these errors can be traced back to
enactment of these statutes nearly 25 years ago. The bill
eliminates many of them.
Subsection (a) makes technical corrections to EPCA.
Paragraph (1) makes a number of changes to the table of
contents. First, subparagraph (A) strikes the items relating to
section 301, since that section was repealed by the National
Cooperative Production Amendments of 1993. Second, subparagraph
(B) corrects the heading for section 325. Third, subparagraph
(C) corrects the heading for section 326. Fourth, subparagraph
(D) strikes the items relating to part E of title III, since
that part was repealed by the Petroleum Overcharge Distribution
and Restitution Act of 1986. Fifth, subparagraph (E) inserts
items relating to part J of title III, since that part was
added to EPCA by the Alternative Motor Fuels Act of 1988, but
that law did not amend the EPCA table of contents. Sixth,
subparagraph (F) corrects the heading for section505. Seventh,
subparagraph (G) strikes the item relating to section 527, since that
section was repealed by NECPA.
Paragraph (2) makes changes to section 321(1). Subparagraph
(A) strikes the cross-reference to ``section 501(1) of the
Motor Vehicle Information and Cost Savings Act'' in favor of a
reference to ``section 32901(a)(3) of title 49, United States
Code.'' A transportation law enacted in the 103rd Congress
provided that a reference to section 501(1) of the Motor
Vehicle Information and Cost Savings Act be deemed to refer to
49 U.S.C. 32901(a)(3). Subparagraph (B) strikes the second
period at the end of section 321(1).
Paragraph (3) inserts close quotation marks after ``type of
product'' in section 322(b)(2)(A). Currently, there are no
close quotation marks in subparagraph (A). Paragraph (4)
corrects the cross-reference in section 324(a)(2)(C)(ii),
striking section 325(j) and inserting section 325(i). Paragraph
(5) corrects two errors in section 325. Subparagraph (A)
strikes the word ``paragraphs'' in section 325(e)(4)(A) and
replaces it with ``paragraph.'' Subparagraph (A) strikes the
semicolon at the end of the heading for section 325(g), since
semicolons are not used at the end of headings.
Paragraph (6) corrects the cross-reference in section
336(c)(2), striking section 325(k) and replacing it with
section 325(n). Section 123(f)(1) of the Energy Policy Act of
1992 renumbered section 325(k) as section 325(n), but did not
make this conforming change. Paragraph (7) amends section
345(c) by adding ``standard'' after ``meets the applicable.''
Paragraph (8) corrects two errors in section 362. Subparagraph
(A) inserts ``of'' after ``of the implementation'' in
subsection (a)(1). Subparagraph (B) corrects the cross-
reference in subsection (d)(12), by striking the reference to
subsection (g) and replacing it with a reference to subsection
(f)(2). Paragraph (9) corrects a punctuation error at the end
of section 391(2)(B), striking the period and replacing it with
a semicolon.
Paragraph (10) corrects five punctuation errors in section
394(a) to ensure that all paragraphs end with semicolons.
Subparagraph (A) strikes the commas at the end of paragraphs
(1), (3), and (5) and replaces them with semicolons.
Subparagraph (B) strikes the period at the end of paragraph (2)
and replaces it with a semicolon. Subparagraph (C) strikes the
colon at the end of paragraph (6) and replaces it with a
semicolon. Paragraph (11) strikes the ``(a)'' in section 400,
since there are no subsections in that section. Paragraph (12)
corrects punctuation errors in section 400D(a), striking the
commas at the end of paragraphs (1), (2), and (3) and inserting
semicolons. Paragraph (13) corrects a punctuation error in
section 400I(b) by striking the comma after ``Secretary
shall.'' Paragraph (14) redesignates subsection (i) in section
400AA as subsection (h), since currently there is no subsection
(h). Paragraph (15) corrects two errors in section 503.
Subparagraph (A) corrects a spelling error in subsection (b).
Subparagraph (B) corrects a punctuation error in subsection
(c)(1), inserting commas before and after ``controlling.''
Subsection (b) makes technical corrections to ECPA.
Paragraph (1) makes corrections to the table of contents.
Subparagraph (A) corrects the heading of section 106.
Subparagraph (B) strikes the item relating to section 207 and
provides new section headings for sections 207 and 208.
Paragraph (2) strikes an unnecessary subsection heading in
section 202, since that section has no subsections.
Subsection (c) makes technical corrections to NECPA.
Paragraph (1) makes corrections to the table of contents.
Subparagraph (A) corrects the heading of section 216.
Subparagraph (B) corrects the heading of part 6 of title II.
Subparagraph (C) strikes the item relating to section 304,
since there is no section 304 in the statute. Subparagraph (D)
corrects the heading for section 543. Paragraph (2) corrects a
spelling error in section 216(d)(1)(C). Paragraph (3) makes
technical corrections to section 251(b)(1). Subparagraph (A)
corrects a punctuation error, inserting a close parenthesis
after ``National Housing Act.'' Subparagraph (B) corrects a
spelling error. Paragraph (4) corrects the U.S. Code reference
in section 266, striking the reference to title 17 and
replacing it with a reference to title 15. Paragraph (5)
corrects a spelling error in section 551(8).
Section 6. Materials allocation authority extension
This section strikes section 104(b)(1) and makes a
conforming change to paragraph (2), providing the President
with permanent authority to issue rules or orders under section
101(c) of the Defense Production Act of 1950.
Section 7. Biodiesel fuel use credits
Subsection (a) adds a new section 312 to the Energy Policy
Act of 1992 (EPAct). Subsection (a) of section 312 provides for
credits for use of biodiesel fuel. Paragraph (1) of that
subsection directs DOE to allocate one credit to a fleet or
covered person for each qualifying volume of the biodiesel
component of fuel containing at least 20 percent biodiesel
purchased after the date of enactment of this section for use
by the fleet or covered person in vehicles operated by the
fleet or covered person weighing more than 8,500 pounds.
Paragraph (2) bars allocation of credits for purchase of
biodiesel under two circumstances. First, subparagraph (A) bars
allocation of credits for use in alternative fueled vehicles.
This assures that fleets or covered persons that operate
vehicles capable of operating on neat biodiesel do not receive
credits for use of biodiesel in those vehicles. DOE has
determined that neat biodiesel fuel is an alternative fuel, and
vehicles warranted by their original equipment manufacturer or
a certified converter to operate on neat biodiesel qualify as
alternative fueled vehicles. Allocation of credits for use of
biodiesel in alternative fueled vehicles would create an
inconsistency with respect to other alternative fuels, since
use of alternative fuels in other alternative fueled vehicles
does not generate credits. Second, subparagraph (B) bars
allocation of credits for purchase of biodiesel that is
required by Federal or State law.
Paragraph (3) grants DOE authority to lower the 20 percent
biodiesel requirement in paragraph (1) for reasons related to
cold start, safety, or vehicle function considerations. These
are the same grounds provided in section 301(2) of EPAct upon
which DOE is authorized to lower the nonpetroleum content of
methanol, ethanol, and other alcohols. Paragraph (4) requires
that fleets and covered persons seeking a credit under section
312 provide written documentation to DOE supporting the
allocation of a credit.
Subsection (b) of new section 312 governs the use of
credits. Paragraph (1) directs DOE, for the year in which the
purchase of a qualifying volume of the biodiesel component of
fuel is made, to treat that purchase as the acquisition of one
alternative fueled vehicle the fleet or covered person is
required to acquire under titles III, IV and V of EPAct.
Paragraph (2) provides that credits allocated under subsection
(a) may not be used to satisfy more than 50 percent of the
alternative fueled vehicle requirements of a fleet or covered
person under titles III, IV and V of EPAct. This limitation
does not apply to a fleet or covered person that is a biodiesel
alternative fuel provider described in section 501(a)(2)(A) of
EPAct.
Subsection (c) provides that a section 312 credit is not
considered a credit under section 508. Credits issued by DOE
may only be used by the fleet or covered person that earned the
credits and only in the year the credit is issued, so they
cannot be traded or banked. Subsection (d) directs DOE to issue
a rule by January 1, 1999, establishing procedures implementing
this section. Subsection (e) directs DOE to collect such data
as are required to make a determination whether average annual
alternative fuel use exceeds 450 gallons. Subsection (f)
provides definitions of key terms used in section 312. The term
``qualifying volume'' is defined to mean 450 gallons of
biodiesel. DOE is authorized to increase this amount by rule to
an amount equal to the average use of alternative fuels by
fleets and covered persons if it determines that average annual
alternative fuel use exceeds 450 gallons.
Subsection (b) of section 7 makes a conforming change to
the EPAct table of contents, adding an item relating to the new
section 312.
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
* * * * * * *
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That this
Act may be cited as the ``Energy Policy and Conservation Act''.
TABLE OF CONTENTS
Sec. 2. Statement of purposes.
Sec. 3. Definitions.
TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY
* * * * * * *
TITLE III--IMPROVING ENERGY EFFICIENCY
Part A--Automotive Fuel Economy
[Sec. 301. Amendment to Motor Vehicle Information and Cost Savings Act.
[``TITLE V--IMPROVING AUTOMOTIVE EFFICIENCY
[``Part A--Automotive Fuel Economy
[``Sec. 501. Definitions.
[``Sec. 502. Average fuel economy standards applicable to each
manufacturer.
[``Sec. 503. Determination of average fuel economy.
[``Sec. 504. Judicial review.
[``Sec. 505. Information and reports.
[``Sec. 506. Labeling.
[``Sec. 507. Unlawful conduct.
[``Sec. 508. Civil penalty.
[``Sec. 509. Effect on State law.
[``Sec. 510. Use of fuel efficient passenger automobile by the Federal
Government.
[``Sec. 511. Retrofit devices.
[``Sec. 512. Reports to Congress.''.]
* * * * * * *
Part B--Energy Conservation Program for Consumer Products Other Than
Automobiles
Sec. 321. Definitions.
Sec. 322. Coverage.
* * * * * * *
Sec. 325. Energy [efficiency] conservation standards.
Sec. 326. Requirements of manufacturers [and private labelers].
* * * * * * *
[Part E--Industrial Energy Conservation
[Sec. 371. Definitions.
[Sec. 372. Program.
[Sec. 373. Identification of major energy consumers.
[Sec. 374. Industrial energy efficiency improvement targets.
[Sec. 374A. Targets for use of recovered materials.
[Sec. 375. Reports.
[Sec. 376. General provisions.]
* * * * * * *
Part J--Encouraging the Use of Alternative Fuels
Sec. 400AA. Alternative fuel use by light duty Federal vehicles.
Sec. 400BB. Alternative fuels truck commercial application program.
Sec. 400CC. Alternative fuels bus program.
Sec. 400DD. Interagency Commission on Alternative Motor Fuels.
Sec. 400EE. Studies and reports.
TITLE V--GENERAL PROVISIONS
Part A--Energy Data Base and Energy Information
Sec. 501. Verification examinations.
* * * * * * *
Sec. 505. Amendment to Energy Supply and Environmental Coordination Act
of 1974.
* * * * * * *
Part B--General Provisions
Sec. 521. Prohibition on certain actions.
* * * * * * *
[Sec. 527. Transfer of authority.]
* * * * * * *
TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY
Part A--Domestic Supply
* * * * * * *
materials allocation
Sec. 104. (a) * * *
(b)[(1) The authority to issue any rules or orders under
section 101(c) of the Defense Production Act of 1950, as
amended by this Act, shall expire at midnight September 30,
1994, 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 such date.]
[(2)] The expiration of the Defense Production Act of 1950 or
any amendment of such Act after the date of enactment of this
Act shall not affect the authority of the President under
section 101(c) of such Act, as amended by subsection (a) of
this section and in effect on the date of enactment of this
Act, unless Congress by law expressly provides to the contrary.
* * * * * * *
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.]
(h) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary for fiscal years 1999 through
2003 such sums as may be necessary to carry out subsections (d)
and (e), to be divided equitably between the interagency
working subgroups based on program requirements.
* * * * * * *
TITLE III--IMPROVING ENERGY EFFICIENCY
Part B--Energy Conservation Program for Consumer Products Other Than
Automobiles
definitions
Sec. 321. For purposes of this part:
(1) The term ``consumer product'' means any article
(other than an automobile, as defined in [section
501(1) of the Motor Vehicle Information and Cost
Savings Act] section 32901(a)(3) of title 49, United
States Code) of a type--
(A) * * *
* * * * * * *
without regard to whether such article of such type is
in fact distributed in commerce for personal use or
consumption by an individual, except that such term
includes fluorescent lamp ballasts, general service
fluorescent lamps, incandescent reflector lamps,
showerheads, faucets, water closets, and urinals
distributed in commerce for personal or commercial use
or consumption.[.]
* * * * * * *
coverage
Sec. 322. (a) * * *
(b) Special Classification of Consumer Product.--(1) * * *
(2) For purposes of this subsection:
(A) The term ``average annual per-household energy
use with respect to a type of product'' means the
estimated aggregate annual energy use (in kilowatt-
hours or the Btu equivalent) of consumer products of
such type which are used by households in the United
States, divided by the number of such households which
use products of such type.
* * * * * * *
labeling
Sec. 324. (a) In General.--(1) * * *
(2)(A) * * *
* * * * * * *
(C)(i) * * *
(ii) If the Secretary determines that compliance with the
standards specified in section [325(j)] 325(i) for any lamp
will result in the discontinuance of the manufacture of such
lamp, the Commission may exempt such lamp from the labeling
rules prescribed under clause (i).
* * * * * * *
energy conservation standards
Sec. 325. (a) * * *
* * * * * * *
(e) Standards for Water Heaters; Pool Heaters; Direct Heating
Equipment.--(1) * * *
* * * * * * *
(4)(A) The Secretary shall publish final rules no later than
January 1, 1992, to determine whether the standards established
by [paragraphs] paragraph (1), (2), or (3) for water heaters,
pool heaters, and direct heating equipment should be amended.
Such rule shall provide that any amendment shall apply to
products manufactured on or after January 1, 1995.
* * * * * * *
(g) Standards for Dishwashers; Clothes Washers; Clothes
Dryers, Fluorescent Lamp [Ballasts;] Ballasts.--(1) Dishwashers
manufactured on or after January 1, 1988, shall be equipped
with an option to dry without heat.
* * * * * * *
administrative procedure and judicial review
Sec. 336. (a) * * *
* * * * * * *
(c) Jurisdiction is vested in the Federal district courts of
the United States over actions brought by--
(1) * * *
(2) any person who files a petition under section
[325(k)] 325(n) which is denied by the Secretary.
* * * * * * *
Part C--Certain Industrial Equipment
* * * * * * *
administration, penalties, enforcement, and preemption
Sec. 345. (a) * * *
* * * * * * *
(c) With respect to any electric motor to which standards are
applicable under section 342(b), the Secretary shall require
manufacturers to certify, through an independent testing or
certification program nationally recognized in the United
States, that such motor meets the applicable standard.
* * * * * * *
Part D--State Energy Conservation Plans
* * * * * * *
state energy conservation plans
Sec. 362. (a) The Secretary shall, by rule, within 60 days
after the date of enactment of this Act, prescribe guidelines
for the preparation of a State energy conservation feasibility
report. The Secretary shall invite the Governor of each State
to submit, within 3 months after the effective date of such
guidelines, such a report. Such report shall include--
(1) an assessment of the feasibility of establishing
a State energy conservation goal, which goal shall
consist of a reduction, as a result of the
implementation of the State energy conservation plan
described in this section, of 5 percent or more in the
total amount of energy consumed in such State in the
year 1980 from the projected energy consumption for
such State in the year 1980, and
* * * * * * *
(d) Each proposed State energy conservation plan may
include--
(1) * * *
* * * * * * *
(12) in accordance with subsection [(g)] (f)(2),
programs to implement the Energy Technology
Commercialization Services Program;
* * * * * * *
general provisions
Sec. 365. (a) * * *
* * * * * * *
[(f)(1) Except as provided in paragraph (2), for the purpose
of carrying out this part, there are authorized to be
appropriated not to exceed $25,000,000 for fiscal year 1991,
$35,000,000 for fiscal year 1992, and $45,000,000 for fiscal
year 1993.
[(2) For the purposes of carrying out section 363(f),
there is authorized to be appropriated for fiscal year
1994 and each fiscal year thereafter such sums as may
be necessary, to remain available until expended.]
(f) For the purpose of carrying out this part, there are
authorized to be appropriated for fiscal years 1999 through
2003 such sums as may be necessary.
* * * * * * *
Part G--Energy Conservation Program for Schools and Hospitals
definitions
Sec. 391. For the purposes of this part--
(1) * * *
(2) The term ``energy conservation measure'' means an
installation or modification of an installation in a building
which is primarily intended to maintain or reduce energy
consumption and reduce energy costs or allow the use of an
alternative energy source, including, but not limited to--
(A) * * *
(B) storm windows and doors, multiglazed windows and
doors, heat absorbing or heat reflective glazed and
coated windows and door systems, additional glazing,
reductions in glass area, and other window and door
system modifications[.];
* * * * * * *
state plans
Sec. 394. (a) The Secretary shall invite the State energy
agency of each State to submit, within 90 days after the
effective date of the guidelines prescribed pursuant to section
392, or such longer period as the Secretary may, for good
cause, allow, a State plan under this section for such State.
Such plan shall include--
(1) the results of preliminary energy audits
conducted in accordance with the guidelines prescribed
under section 392(a)(1), and an estimate of the energy
savings that may result from the modification of
maintenance and operating procedures and installation
of energy conservation measures in the schools and
hospitals in such State[,];
(2) a recommendation as to the types of energy
conservation projects considered appropriate for
schools and hospitals in such State, together with an
estimate of the costs of carrying out such projects in
each year for which funds are appropriated[.];
(3) a program for identifying persons qualified to
carry out energy conservation projects[,];
* * * * * * *
(5) a statement of the extent to which, and by which
methods, such State will encourage utilization of solar
space heating, cooling, and electric systems and solar
water heating systems where appropriate[,];
(6) procedures to assure that all assistance under
this part in such State will be expended in compliance
with the requirements of an approved State plan for
such State, and in compliance with the requirements of
this part[:];
* * * * * * *
[authorization of appropriations
[Sec. 397. For the purpose of carrying out this part, there
are authorized to be appropriated not to exceed $40,000,000 for
fiscal year 1991, $50,000,000 for fiscal year 1992, and
$60,000,000 for fiscal year 1993.]
authorization of appropriations
Sec. 397. For the purpose of carrying out this part, there
are authorized to be appropriated for fiscal years 1999 through
2003 such sums as may be necessary.
* * * * * * *
records
Sec. 400. [(a)] Each recipient of assistance under this part
shall keep such records, provide such reports, and furnish such
access to books and records as the Secretary may by rule
prescribe.
* * * * * * *
Part H--Energy Conservation Program for Buildings Owned by Units of
Local Government and Public Care Institutions
* * * * * * *
state plans
Sec. 400D. (a) The Secretary shall invite the State energy
agency of each State to submit, within 90 days after the
effective date of the guidelines prescribed pursuant to section
400B, or such longer period as the Secretary may, for good
cause, allow, a proposed State plan under this section for such
State. Such plan shall include--
(1) the results of preliminary energy audits
conducted in accordance with the guidelines prescribed
pursuant to section 400B(a)(1), and an estimate of the
energy savings that may result from the modification of
maintenance and operating procedures in buildings owned
by units of local government and public care
institutions[,];
(2) a recommendation as to the types of technical
assistance programs considered appropriate for
buildings owned by units of local government and public
care institutions in such State, together with an
estimate of the costs of carrying out such programs[,];
(3) a program for identifying persons qualified to
carry out technical assistance programs[,];
* * * * * * *
administration; annual reports
Sec. 400I. (a) The Secretary may prescribe such rules as may
be necessary in order to carry out the provisions of this part.
(b) The Secretary [shall,] shall include in his annual report
a detailed description of the actions taken under this part in
the preceding fiscal year and the actions planned to be taken
in the subsequent fiscal year. Such description shall show the
allocations made (including the allocations made to each State)
and include information on the technical assistance carried out
with funds allocated, and an estimate of the energy savings, if
any, achieved.
* * * * * * *
PART J--ENCOURAGING THE USE OF ALTERNATIVE FUELS
SEC. 400AA. ALTERNATIVE FUEL USE BY LIGHT DUTY FEDERAL VEHICLES.
(a) * * *
* * * * * * *
[(i)] (h) Funding.--(1) For the purposes of this section,
there are authorized to be appropriated such sums as may be
necessary for fiscal years 1993 through 1998, to remain
available until expended.
(2) The authority of the Secretary to obligate amounts to be
expended under this section shall be effective for any fiscal
year only to such extent or in such amounts as are provided in
advance by appropriation Acts.
* * * * * * *
TITLE V--GENERAL PROVISIONS
Part A--Energy Data Base and Energy Information
* * * * * * *
accounting practices
Sec. 503. (a) * * *
(b) In carrying out its responsibilities under subsection
(a), the Securities and Exchange Commission shall--
(1) * * *
* * * * * * *
The Securities and Exchange Commission shall afford interested
persons an opportunity to submit written comment with respect
to whether it should exercise its discretion to recognize or
otherwise rely on such accounting practice in lieu of
prescribing such practices by rule and may extend the 24-month
period referred to in subsection (a) as it determines may be
necessary to allow for a meaningful comment period [with repect
to] with respect to such determination.
(c) The Securities and Exchange Commission shall assure that
accounting practices developed pursuant to this section, to the
greatest extent practicable, permit the compilation, treating
domestic and foreign operations as separate categories, of an
energy data base consisting of:
(1) The separate calculation of capital, revenue, and
operating cost information pertaining to--
(A) prospecting,
(B) acquisition,
(C) exploration,
(D) development, and
(E) production,
including geological and geophysical costs, carrying
costs, unsuccessful exploratory drilling costs,
intangible drilling and development costs on productive
wells, the cost of unsuccessful development wells, and
the cost of acquiring oil and gas reserves by means
other than development. Any such calculation shall take
into account disposition of capitalized costs,
contractual arrangements involving special conveyance
of rights and joint operations, differences between
book and tax income, and prices used in the transfer of
products or other assets from one person to any other
person, including a person controlled by [controlling],
controlling, or under common control with such person.
* * * * * * *
Part C--Congressional Review
* * * * * * *
expedited procedure for congressional consideration of certain
authorities
Sec. 552. (a) * * *
* * * * * * *
(d)(1) * * *
* * * * * * *
(5)(A) When the committee has reported, or has been
discharged from further consideration of, a resolution, it
shall be at any time thereafter in order (even though a
previous motion to the same effect has been disagreed to) to
move to proceed to the consideration of the resolution. The
motion shall be highly privileged and shall not be debatable.
An amendment to the [notion] motion shall not be in order, and
it shall not be in order to move to reconsider the vote by
which the motion was agreed to or disagreed to.
* * * * * * *
----------
ENERGY CONSERVATION AND PRODUCTION ACT
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That this
Act may be cited as the ``Energy Conservation and Production
Act''.
CONTENTS
TITLE I--FEDERAL ENERGY ADMINISTRATION ACT AMENDMENTS AND RELATED
MATTERS
Part A--Federal Energy Administration Act Amendments
Sec. 101. Short title.
* * * * * * *
Sec. 106. Limitation on the Administrator's authority with respect to
enforcement of [rules and regulations] regulations and
rulings.
* * * * * * *
TITLE II--ELECTRIC UTILITIES RATE DESIGN INITIATIVES
Sec. 201. Findings.
* * * * * * *
[Sec. 207. Authorizations of appropriations.]
Sec. 207. State utility regulatory assistance.
Sec. 208. Authorization of appropriations.
* * * * * * *
TITLE II--ELECTRIC UTILITY RATE DESIGN INITIATIVES
DEFINITIONS
Sec. 202. As used in this title:
[(b) Definitions.--]
(1) The term ``Secretary'' means the Secretary of
Energy.
* * * * * * *
TITLE IV--ENERGY CONSERVATION AND RENEWABLE-RESOURCE ASSISTANCE FOR
EXISTING BUILDINGS
* * * * * * *
Part A--Weatherization Assistance for Low-Income Persons
* * * * * * *
[authorization of appropriations
[Sec. 422. (a) There are authorized to be appropriated for
purposes of carrying out the weatherization program under this
part, other than under subsections (d) and (e) of section 415,
not to exceed $200,000,000 for fiscal year 1991 and such sums
as may be necessary for fiscal years 1992, 1993, and 1994.
[(b) There are authorized to be appropriated for purposes of
carrying out the weatherization program under subsections (d)
and (e) of section 415, not to exceed $20,000,000 for fiscal
year 1992 and such sums as may be necessary for fiscal years
1993 and 1994.]
authorization of appropriations
Sec. 422. For the purpose of carrying out the weatherization
program under this part, there are authorized to be
appropriated for fiscal years 1999 through 2003 such sums as
may be necessary.
* * * * * * *
----------
NATIONAL ENERGY CONSERVATION POLICY ACT
TITLE I--GENERAL PROVISIONS
SEC. 101. SHORT TITLE AND TABLE OF CONTENTS.
(a) * * *
(b) Table of Contents.--
TITLE I--GENERAL PROVISIONS
Sec. 101. Short title and table of contents.
* * * * * * *
TITLE II--RESIDENTIAL ENERGY CONSERVATION
Part 1--Utility Program
Sec. 210. Definitions.
* * * * * * *
Sec. 216. Supply[, installation, and financing] and installation by
public utilities.
* * * * * * *
Part 6--Residential Energy Efficiency [Ratings] Rating Guidelines
* * * * * * *
TITLE III--ENERGY CONSERVATION PROGRAMS FOR SCHOOLS AND HOSPITALS AND
BUILDINGS OWNED BY UNITS OF LOCAL GOVERNMENTS AND PUBLIC CARE
INSTITUTIONS
Part 1--Schools and Hospitals
Sec. 301. Statement of findings and purposes.
* * * * * * *
[Sec. 304. Cross reference].
* * * * * * *
TITLE V--FEDERAL ENERGY INITIATIVES
* * * * * * *
part 3--federal energy management
Sec. 541. Findings.
* * * * * * *
Sec. 543. Energy management [goals] requirements.
* * * * * * *
TITLE II--RESIDENTIAL ENERGY CONSERVATION
PART 1--UTILITY PROGRAM
* * * * * * *
SEC. 216. SUPPLY AND INSTALLATION BY PUBLIC UTILITIES.
(a) * * *
* * * * * * *
(d) General Exemptions.--(1) Except as provided in paragraph
(2), the prohibitions contained in subsection (a) shall not
apply to--
(A) * * *
* * * * * * *
(C) supply, installation, or financing activities by
a public utility with respect to energy conservation
measures where a law or regulation in effect on or
before the date of enactment of this Act either
requires, or [explictly] explicitly permits, the public
utility to carry out such activities.
* * * * * * *
PART 4--MISCELLANEOUS
SEC. 251. ENERGY-CONSERVING IMPROVEMENTS FOR ASSISTED HOUSING.
(a) * * *
(b) Grants.--(1) The Secretary of Housing and Urban
Development is authorized to make grants to finance energy
conserving improvements (as defined in subparagraph (2) of the
last paragraph of section 2(a) of the [National Housing Act to
projects] National Housing Act) to projects which are financed
with loans under section 202 of the Housing Act of 1959, or
which are subject to mortgages insured under section 221(d)(3)
or section 236 of the National Housing Act. The Secretary shall
make assistance available under this subsection on a priority
basis to those projects which are in financial difficulty as a
result of high energy costs. In carrying out the program
authorized by this subsection, the Secretary shall issue
regulations requiring that any grant made under this subsection
shall be made only on the condition that the recipient of such
grant shall take steps (prescribed by the Secretary) to assure
that the benefits derived from such grants in terms of lower
energy costs shall [accure] accrue to tenants in the form of
lower operating subsidy if such a subsidy is being paid to such
recipient.
* * * * * * *
PART 5--RESIDENTIAL ENERGY EFFICIENCY PROGRAMS
* * * * * * *
SEC. 266. AUTHORITY OF THE FEDERAL ENERGY REGULATORY COMMISSION TO
EXEMPT APPLICATION OF CERTAIN LAWS.
The Federal Energy Regulatory Commission may exempt from any
provisions in sections 4, 5, and 7 of the Natural Gas Act [(17
U.S.C.] (15 U.S.C. 717c, 717d, and 717f) and titles II and IV
of the Natural Gas Policy Act of 1978 (15 U.S.C. 3341 through
3348 and 3391 through 3394) the sale or transportation, by any
public utility, local distribution company, interstate or
intrastate pipeline, or any other person, of any natural gas
which is determined (in the case of a regulated utility,
company, pipeline, or person) by the State regulatory authority
having ratemaking authority over such utility, company,
pipeline, or person, or (in the case of a nonregulated utility,
company, pipeline, or person) by such utility, company,
pipeline, or person, to have been conserved because of a
prototype residential energy efficiency program which is
established under a plan approved under section 262(a), if the
Commission determines that such exemption is necessary to make
feasible the demonstration of such prototype residential energy
efficiency program.
* * * * * * *
TITLE V--FEDERAL ENERGY INITIATIVE
* * * * * * *
PART 3--FEDERAL ENERGY MANAGEMENT
* * * * * * *
SEC. 551. DEFINITIONS.
For the purposes of this part--
(1) * * *
* * * * * * *
(8) the term ``renewable energy sources'' includes,
but is not limited to, sources such as agriculture and
urban waste, [goethermal] geothermal energy, solar
energy, and wind energy; and
* * * * * * *
TITLE VIII--ENERGY SAVINGS PERFORMANCE CONTRACTS
SEC. 801. AUTHORITY TO ENTER INTO CONTRACTS.
(a) * * *
* * * * * * *
(c) Sunset and Reporting Requirements.--The authority to
enter into new contracts under this section shall cease to be
effective [five years after the date procedures and methods are
established under subsection (b)] on October 1, 2003.
* * * * * * *
SEC. 804. DEFINITIONS.
For purposes of this title, the following definitions apply:
[(1) The term ``Federal agency'' means an agency
defined in section 551(1) of title 5, United States
Code.]
(1) The term ``Federal agency'' means each authority
of the Government of the United States, whether or not
it is within or subject to review by another agency.
* * * * * * *
----------
ENERGY POLICY ACT OF 1992
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy
Policy Act of 1992''.
(b) Table of Contents.--
TITLE I--ENERGY EFFICIENCY
Subtitle A--Buildings
Sec. 101. Building energy efficiency standards.
* * * * * * *
TITLE III--ALTERNATIVE FUELS--GENERAL
Sec. 301. Definitions.
* * * * * * *
Sec. 312. Biodiesel fuel use credits.
* * * * * * *
TITLE III--ALTERNATIVE FUELS--GENERAL
* * * * * * *
SEC. 312. BIODIESEL FUEL USE CREDITS.
(a) Allocation of Credits.--
(1) In general.--The Secretary shall allocate one
credit under this section to a fleet or covered person
for each qualifying volume of the biodiesel component
of fuel containing at least 20 percent biodiesel by
volume purchased after the date of the enactment of
this section for use by the fleet or covered person in
vehicles owned or operated by the fleet or covered
person that weigh more than 8,500 pounds gross vehicle
weight rating.
(2) Exceptions.--No credits shall be allocated under
paragraph (1) for a purchase of biodiesel--
(A) for use in alternative fueled vehicles;
or
(B) that is required by Federal or State law.
(3) Authority to modify percentage.--The Secretary
may, by rule, lower the 20 percent biodiesel volume
requirement in paragraph (1) for reasons related to
cold start, safety, or vehicle function considerations.
(4) Documentation.--A fleet or covered person seeking
a credit under this section shall provide written
documentation to the Secretary supporting the
allocation of a credit to such fleet or covered person
under paragraph (1).
(b) Use of Credits.--
(1) In general.--At the request of a fleet or covered
person allocated a credit under subsection (a), the
Secretary shall, for the year in which the purchase of
a qualifying volume is made, treat that purchase as the
acquisition of one alternative fueled vehicle the fleet
or covered person is required to acquire under this
title, title IV, or title V.
(2) Limitation.--Credits allocated under subsection
(a) may not be used to satisfy more than 50 percent of
the alternative fueled vehicle requirements of a fleet
or covered person under this title, title IV, and title
V. This paragraph shall not apply to a fleet or covered
person that is a biodiesel alternative fuel provider
described in section 501(a)(2)(A).
(c) Credit Not a Section 508 Credit.--A credit under this
section shall not be considered a credit under section 508.
(d) Issuance of Rule.--The Secretary shall, before January 1,
1999, issue a rule establishing procedures for the
implementation of this section.
(e) Collection of Data.--The Secretary shall collect such
data as are required to make a determination described in
subsection (f)(2)(B).
(f) Definitions.--For purposes of this section--
(1) the term ``biodiesel'' means a diesel fuel
substitute produced from nonpetroleum renewable
resources that meets the registration requirements for
fuels and fuel additives established by the
Environmental Protection Agency under section 211 of
the Clean Air Act; and
(2) the term ``qualifying volume'' means--
(A) 450 gallons; or
(B) if the Secretary determines by rule that
the average annual alternative fuel use in
light duty vehicles by fleets and covered
persons exceeds 450 gallons or gallon
equivalents, the amount of such average annual
alternative fuel use.
* * * * * * *
ADDITIONAL VIEWS OF REPRESENTATIVES MARKEY, WAXMAN, PALLONE, DEGETTE,
AND FURSE
While all of us would support a clean reauthorization of
the Energy Policy and Conservation Act, we have concerns about
the Shimkus amendment that was adopted during the Committee's
markup. Though some of us were willing to support the
underlying legislation despite adoption of the amendment,
others felt that the amendment raised sufficient policy
concerns to lead us to oppose the bill. All of us agree,
however, that while the Shimkus amendment represents an
improvement over the original Shimkus bill (H.R. 2568), this
legislation raises significant concerns which must be addressed
if it is to avoid a negative impact on efforts to promote
development of cleaner alternative fueled vehicles and reduce
our nation's dependence on imported oil.
We note that one of the primary goals of the Energy Policy
Act of 1992 (``EPAct'' or ``the Act'') was to enact a
comprehensive national energy policy that strengthens U.S.
energy security by reducing dependence on imported oil.
Currently, the United States consumes seven million barrels of
oil more per day than it produces. Section 502 of the Act
establishes goals of a 10 percent displacement in U.S. motor
fuel consumption by the year 2000 and a 30 percent displacement
in U.S. motor fuel consumption by the year 2010 through the
production and increased use of replacement fuels. Section 504
of the Act allows the Secretary to revise these goals downward.
According to the latest projections by the Energy Information
Administration, the transportation sector will consume 15.8
million barrels per day of petroleum in 2010. Of this total,
about 9.2 million barrels per day of petroleum are projected to
be used by light duty vehicles. The Energy Information
Administration also estimates that 60 percent of our total
petroleum demand will be imported in 2010.
Significant gains in displacing petroleum motor fuel
consumption by the year 2010 are expected to occur by replacing
gasoline with alternative fuels such as electricity, ethanol,
hydrogen, methanol, natural gas and propane, in a portion of
the U.S. car and truck population, which is projected to be in
excess of 200 million vehicles in the year 2010. Currently,
alternative fueled vehicles comprise a small fraction of the
total U.S. vehicle stock. To enable the Act's displacement
goals to be met, alternative fuels must be readily accessible
and motor vehicles that operate on these alternative fuels must
be available for purchase. Thus, two important elements of
reducing petroleum motor fuel consumption are: a nationwide
alternative fuels infrastructure and the availability of
alternative fueled vehicles for purchase at a reasonable cost
by the general public in a wide variety of vehicle types and
fueling options. Under EPAct, a motor fuel must meet three
requirements to be considered to be an alternative fuel. First,
it must foster substantial environmental benefits. Second, it
must be substantially non-petroleum. Third, it must promote
energy security goals of the Act.
While we share the stated concerns of some supporters of
the Shimkus amendment that many alternative fueled vehicles
acquired in response to EPAct do not actually operate on /
alternative fuels, we must point out that neither H.R. 2568 nor
the Shimkus amendment adopted by the Committee addresses this
shortcoming in current law.
The original Shimkus bill, H.R. 2568, would have designated
a fuel mixture that contained 80 percent petroleum and 20
percent biodiesel (B-20) as an alternative motor fuel under
EPAct. Since any diesel-fueled vehicle is capable of operating
on the biodiesel fuel known as B-20, and since EPAct defines an
alternative fueled vehicle as one which is capable of operating
using an alternative fuel, H.R. 2568 would have transformed
every diesel vehicle in America into an alternative fueled
vehicle. Even if such vehicles did not use biodiesel fuel
(which they would be unlikely to do, as B-20 costs 20-28 cents
per gallon more than traditional petroleum diesel), they would
have been considered an alternative fueled vehicle for the
purposes of EPAct. This would have created a huge loophole in
the law which would have undermined our national policy of
seeking to promote investment in natural gas, electric, or
other alternative fueled vehicles and would have undermined
much of the private sector investment in such vehicle
technologies that has occurred since EPAct's enactment in 1992.
We note that the Shimkus amendment adopted by the Committee
takes a different approach from H.R. 2568, and one which
represents an improvement over the original bill. The amendment
would allow the Secretary of Energy to allocate credits for
each qualifying volume of the biodiesel fuel purchased for
heavy vehicles to satisfy EPAct requirements imposed on certain
covered persons and fleets. We were pleased that the sponsors
agreed to make certain modifications in this amendment, such as
striking the transferability of these credits, making certain
modifications in the definition of biodiesel that clarifies
that it covers only fuel substitutes produced from non-
petroleum renewable resources, and making certain
clarifications in the DOE authority to lower the percentage of
qualifying biodiesel volume for reasons relating to cold start,
safety and vehicle function considerations. While these changes
have helped to improve the amendment, we still have significant
concerns about the language adopted by the Committee.
First, we question whether it makes sense to allow
biodiesel fuel to be used to meet up to 50 percent of the
alternative fueled vehicle requirements under EPAct. The
purpose of the alternative fuels program was to create
incentives for private sector investments in new and more
environmentally benign technologies which could meet our
nation's long term energy and transportation needs without
reliance on imported oil--much of which comes from the Middle
East. The Shimkus amendment could undermine this important
energy security goal by reducing by up to half the number of
alternative fueled vehicles acquired in this country each year.
Congress decided in 1992 to encourage the shift from petroleum
by first getting alternative fueled vehicles on the road so
that the infrastructure for alternative fuels could be
supported. Allowing use of a fuel which is 80% petroleum to
displace the acquisition of vehicles which don'trely on
petroleum-based fuels will do little to help the U.S. achieve energy
independence from oil imports. In fact, according to DOE staff,
switching every single diesel vehicle in the United States to B-20
would only displace 4.2% of petroleum usage.
Second, alternative fuels under EPAct are required to
foster substantial environmental benefits. It is our
understanding that NOx emissions, a leading source of health-
threatening smog, are not reduced in biodiesel blends with less
than 35 percent bio-mass derived fuel. Moreover, we note that
diesel-fueled vehicles are the source of more than 40 percent
of the pollutants from motor vehicles and are also the primary
transportation source of fine particulate matter (PM), which
has been determined to be a major public health problem.
Additionally, in August 1998 the California Air Resources Board
designated diesel particulates as carcinogenic toxic air
contaminants. The decision means that California state
regulators must examine strategies to limit human exposure to
the chemicals and illustrates the growing consensus on the need
to further reduce dangerous diesel emissions.
Allowing a fuel which is largely petroleum-based to receive
credits to meet up to 50 percent of the alternative fuels
requirements of EPAct will complicate efforts to achieve the
fundamental purposes of the alternative fuels program.
Therefore, if this legislation moves forward, we would be far
more comfortable if biodiesel credits were limited to a much
lower level of between 20 to 30 percent.
Third, we have concerns about the definition of
``qualifying volume'' of biodiesel fuel. Under the amendment, a
minimum of 450 gallons of biodiesel fuel qualifies for one
credit. We think this quantity is far too low. Under current
law, the purchase of an alternative fueled vehicle--which may
serve in a fleet for an average of 5 or 6 years--is worth one
credit. Under the Shimkus amendment, a vehicle which burns 450
gallons of biodiesel per year would receive one credit for
every year it is in service, or 5-6 credits.
The practical impact of this difference is that credits
will be more easily, cheaply, and plentifully generated through
the use of biodiesel than through acquisition of alternative
fueled vehicles. Consider that over a lifetime of 6 years, a
natural gas dedicated vehicle could consume up to 4800 gallons
of alternative fuel. The B-20 heavy-duty vehicle would consume
12,000 gallons of B-20, which would equate to only 2,400
gallons of biodiesel. The dedicated natural gas vehicle would
get 1 credit. The B-20 vehicle could claim 1 credit per year,
or 6 credits total over the same time frame. Also, a heavy-duty
dedicated natural gas vehicle that consumes 12,000 gallons of
natural gas over 6 years would also get 1 credit. This is a
perverse policy result.
To equate a biodiesel credit with a dedicated alternative
fueled vehicle on a strict energy basis, therefore, the
qualifying volume would need to be set at 4800 gallons.
However, since many alternative fueled vehicles are not
dedicated, but dual-fuel, they consume much less. The
Department of Energy informs us that most dual-fuel natural gas
vehicles consume an alternative fuel 50% of the time. Thus, we
believe a much higher qualifying volume, such as 2250 gallons,
would be appropriate so that biodiesel credits do not entirely
displace investment in cleaner alternative fueled vehicles. We
also note that to maintain the integrity of this credit system,
the Department of Energy may need to collect fuel use records
from fleets using biodiesel.
When Congress enacted the alternative fuels provisions of
EPAct, it recognized that vehicles had to come first--and that
requiring fuel use would steer many fleets to ``avoid'' the
program. Now that the U.S. is manufacturing significant numbers
of alternative fueled vehicles, we must continue working to
create a sound and viable refueling infrastructure. While some
of us considered offering amendments to address our concerns
regarding the Shimkus amendment, we decided not to do so at the
Committee markup in the hope that we could continue to work
with the sponsors of the amendment to address these issues. We
appreciate the willingness of the sponsors of the amendment to
work with us to address our concerns, and we are hopeful that a
compromise can be reached to address these concerns as best as
possible.
Ed Markey.
Frank Pallone, Jr.
Diana DeGette.
Henry A. Waxman.
Elizabeth Furse.