[House Report 107-6]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                      107-6

======================================================================



 
              STRATEGIC PETROLEUM RESERVE REAUTHORIZATION

                                _______
                                

 March 6, 2001.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Tauzin, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 724]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 724) to authorize appropriations to carry out 
part B of title I of the Energy Policy and Conservation Act, 
relating to the Strategic Petroleum Reserve, having considered 
the same, report favorably thereon without amendment and 
recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Committee Consideration..........................................     2
Committee Votes..................................................     2
Committee Oversight Findings.....................................     2
Committee on Government Reform Oversight Findings................     3
New Budget Authority, Entitlement Authority, and Tax Expenditures     3
Committee Cost Estimate..........................................     3
Congressional Budget Office Estimate.............................     3
Federal Mandates Statement.......................................     4
Advisory Committee Statement.....................................     4
Constitutional Authority Statement...............................     5
Applicability to Legislative Branch..............................     5
Section-by-Section Analysis of the Legislation...................     5
Changes in Existing Law Made by the Bill, as Reported............     5

                          Purpose and Summary

    The purpose of H.R. 724 is to amend Section 166 of the 
Energy Policy and Conservation Act (EPCA) to authorize such 
sums as may be necessary to be appropriated for the operations 
of the Strategic Petroleum Reserve.

                  Background and Need for Legislation

    H.R. 724, a bill to authorize appropriations to carry out 
part B of Title I of the Energy Policy and Conservation Act 
(EPCA) relating to the Strategic Petroleum Reserve (Reserve), 
makes a technical correction to a prior reauthorization of 
EPCA. EPCA authorizes the Department of Energy to operate the 
Strategic Petroleum Reserve. The Strategic Petroleum Reserve 
contains approximately 541 million barrels of oil stored along 
the Gulf Coast. It costs approximately $165 million per year to 
operate the Reserve.
    The majority of EPCA was reauthorized through Fiscal Year 
2003 during the 106th Congress (H.R. 2884, Public Law 106-469). 
Section 166 is the section of EPCA that provides authorization 
for ``such sums as may be necessary'' to be appropriated for 
operation of the Strategic Petroleum Reserve. Due to a 
technical error in the most recent EPCA reauthorization, 
section 166 provides authorization for appropriations only 
through March 31, 2000. In contrast, section 181 of EPCA 
provides the authority for the Department of Energy to operate 
the Strategic Petroleum Reserve through September 30, 2003. As 
a practical matter, last year's Interior Appropriations Bill 
appropriated funds to operate the Strategic Petroleum Reserve 
through Fiscal Year 2001.
    H.R. 724 will eliminate the March 31, 2000 limitation on 
appropriations for the Strategic Petroleum Reserve allowing 
future appropriations for the Reserve. With this change and 
pursuant to Section 181 of EPCA, the Reserve would not have to 
be reauthorized again until September 30, 2003.

                                Hearings

    The Committee held no hearings on H.R. 724 because the 
legislation is a technical correction. The Committee did hold 
hearings on EPCA generally in the 106th Congress.

                        Committee Consideration

    On February 28, 2001, the Committee on Energy and Commerce 
met in open markup session and approved H.R. 724, without 
amendment, by a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. 
There were no record votes taken in connection with ordering 
H.R. 724 reported. A motion by Mr. Tauzin to order H.R. 724 
reported to the House, without amendment, was agreed to by a 
voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has not held oversight 
or legislative hearings on this legislation.

           Committee on Government Reform Oversight Findings

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
724 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 3(c)(3) of rule XIII 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, March 5, 2001.
Hon. W.J. ``Billy'' Tauzin,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 724, a bill to 
authorize appropriations to carry out part B of title I of the 
Energy Policy and Conservation Act, relating to the Strategic 
Petroleum Reserve.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Lisa Cash 
Driskill.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 724--A bill to authorize appropriations to carry out part B of 
        title I of the Energy Policy and Conservation Act, relating to 
        the Strategic Petroleum Reserve

    Summary: H.R. 724 would extend the authorization for the 
Strategic Petroleum Reserve (SPR) to September 30, 2003. The 
authorization for the SPR expired on March 30, 2000.
    Assuming appropriation of the necessary amounts, CBO 
estimates that implementing this legislation would cost $342 
million over the 2002-2006 period, if the 2001 appropriation is 
increased in 2002 and 2003 to account for anticipated 
inflation. (Without such inflation adjustments, the cost would 
be $330 million.) H.R. 724 would not affect direct spending or 
receipts; therefore, pay-as-you-go procedures would not apply. 
The bill contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA), 
and would have no impact on state, local, or tribal 
governments.
    Estimated cost to the Federal Government:The estimated 
budgetary impact of H.R. 724 is shown in the following table. 
Two alternative funding paths are shown: one with adjustments 
for inflation, and one without such adjustments. The costs of 
this legislation fall within budget function 270 (energy).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2001      2002      2003      2004      2005      2006
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

                                         With Adjustments for Inflation

Spending Under Current Law:
    Budget Authority \1\............................       165         0         0         0         0         0
    Estimated Outlays...............................       164        90        33         8         0         0
Proposed Changes:
    Estimated Authorization Level...................         0       169       173         0         0         0
    Estimated Outlays...............................         0        76       137        86        34         9
Spending Under H.R. 724:
    Estimated Authorization Level \1\...............       165       169       173         0         0         0
    Estimated Outlays...............................       164       166       170        94        34         9

                                        Without Adjustments for Inflation

Spending Under Current Law:
    Budget Authority \1\............................       165         0         0         0         0         0
    Estimated Outlays...............................       164        90        33         8         0         0
Proposed Changes:
    Estimated Authorization Level...................         0       165       165         0         0         0
    Estimated Outlays...............................         0        74       132        83        33         8
Spending Under H.R. 724:
    Estimated Authorization Level \1\...............       165       165       165         0         0         0
    Estimated Outlays...............................       164       164       165        91        33         8
----------------------------------------------------------------------------------------------------------------
\1\ The 2001 level is the amount appropriated for that year.

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted by the end of fiscal year 2001, and that 
the necessary amounts will be appropriated by the start of each 
fiscal year to operate and maintain the SPR. Outlay estimates 
are based on historical spending patterns for the SPR program.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: The bill 
contains no intergovernmental or private-sector mandates as 
defined in UMRA, and would have no impact on state, local, or 
tribal governments.
    Estimate prepared by: Federal costs: Lisa Cash Driskill; 
impact on State, local, and tribal governments: Tori Heid Hall; 
impact on the private sector: Lauren Marks.
    Estimate approved by: Peter H. Fontaine, 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 3(d)(1) of rule XIII 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

    H.R. 724 will eliminate the March 31, 2000 limitation on 
appropriations for the Strategic Petroleum Reserve allowing 
future appropriations for the Reserve. With this change and 
pursuant to Section 181 of EPCA, the Reserve would not have to 
be reauthorized again until September 30, 2003.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) 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 and 
existing law in which no change is proposed is shown in roman):

         SECTION 166 OF THE ENERGY POLICY AND CONSERVATION ACT


                    AUTHORIZATION OF APPROPRIATIONS

    Sec. 166. There are authorized to be appropriated [for 
fiscal year 2000] such sums as may be necessary to implement 
this part[, to remain available only through March 31, 2000].

                                  
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