[House Report 108-579]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-579

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



 
   REAUTHORIZATION OF THE STEEL AND ALUMINUM ENERGY CONSERVATION AND 
                 TECHNOLOGY COMPETITIVENESS ACT OF 1988

                                _______
                                

  July 1, 2004.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Boehlert, from the Committee on Science, submitted the following

                              R E P O R T

                        [To accompany H.R. 3890]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Science, to whom was referred the bill (H.R. 
3890) to reauthorize the Steel and Aluminum Energy Conservation 
and Technology Competitiveness Act of 1988, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
   I. Amendment.......................................................2
  II. Purpose of the Bill.............................................2
 III. Background and Need for the Legislation.........................2
  IV. Summary of Hearings.............................................3
   V. Committee Actions...............................................3
  VI. Summary of Major Provisions of the Bill.........................4
 VII. Section-By-Section Analysis (By Title and Section)..............4
VIII. Committee Views.................................................4
  IX. Cost Estimate...................................................4
   X. Congressional Budget Office Cost Estimate.......................5
  XI. Compliance with Public Law 104-4 (Unfunded Mandates)............6
 XII. Committee Oversight Findings and Recommendations................6
XIII. Statement on General Performance Goals and Objectives...........6
 XIV. Constitutional Authority Statement..............................6
  XV. Federal Advisory Committee Statement............................6
 XVI. Congressional Accountability Act................................6
XVII. Statement on Preemption of State, Local, or Tribal Law..........7
XVIII.Changes in Existing Law Made by the Bill, As Reported...........7

 XIX. Committee Recommendations.......................................8
  XX. Proceedings of Subcommittee Markup..............................9
 XXI. Proceedings of Full Committee Markup...........................23

                              I. Amendment

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. AMENDMENTS.

  (a) Authorization of Appropriations.--Section 9 of the Steel and 
Aluminum Energy Conservation and Technology Competitiveness Act of 1988 
(15 U.S.C. 5108) is amended to read as follows:

``SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to the Secretary to carry 
out this Act for fiscal year 2005, an amount equal to the amount 
appropriated for the same purposes for fiscal year 2004, and 
$20,000,000 for each of the fiscal years 2006 through 2009.''.
  (b) Steel Project Priorities.--Section 4(c)(1) of the Steel and 
Aluminum Energy Conservation and Technology Competitiveness Act of 1988 
(15 U.S.C. 5103(c)(1)) is amended--
          (1) in subparagraph (H), by striking ``coatings for sheet 
        steels'' and inserting ``sheet and bar steels''; and
          (2) by adding at the end the following new subparagraph:
                  ``(K) The development of technologies which reduce 
                greenhouse gas emissions.''.
  (c) Conforming Amendments.--The Steel and Aluminum Energy 
Conservation and Technology Competitiveness Act of 1988 is further 
amended--
          (1) by striking section 7 (15 U.S.C. 5106); and
          (2) in section 4(b)--
                  (A) in the subsection heading, by inserting ``and 
                Report'' after ``Management Plan'';
                  (B) by striking ``Within 6 months after the date of 
                enactment of this Act'' and inserting ``Not later than 
                6 months after the date of enactment of the Act 
                enacting this sentence'';
                  (C) by striking ``to expand the steel research and 
                development initiative to include aluminum and''; and
                  (D) by inserting ``, and shall transmit such plan to 
                Congress'' after ``carry out the purposes of this 
                Act''.

                        II. Purpose of the Bill

    The purpose of the bill is to reauthorize a program of 
energy efficiency research and development (R&D) at the 
Department of Energy (DOE) to support the domestic metals 
industry. Specifically, the bill reauthorizes the Steel and 
Aluminum Energy Conservation and Technology Competitiveness Act 
of 1988, and makes minor modifications to that act.

              III. Background and Need for the Legislation

    DOE's steel-related energy efficiency R&D program was 
established in 1986. The program was expanded to a broader 
``metals initiative'' in 1988 when the President signed into 
law the Steel and Aluminum Energy Conservation and Technology 
Competitiveness Act of 1988. Reauthorization of appropriations 
for the program occurred in 1992 with the passage of the Energy 
Policy Act. Authorization of appropriations expired in 1997, 
although Congress has continued to appropriate funds for the 
program each year since then as part of the Industries of the 
Future program at DOE. H.R. 3890 reaffirms Congressional 
support for the metals program through reauthorization of 
appropriations through 2009, updates program priorities, and 
calls for an update of the management plan required by the 
original legislation.

                        IV. Summary of Hearings

    On May 20, 2004, the Subcommittee on Energy of the 
Committee on Science held a hearing to examine the metals R&D 
program at DOE. Witnesses included:
           Mr. Douglas L. Faulkner, Principal Deputy 
        Assistant Secretary for Energy Efficiency and Renewable 
        Energy at the U.S. Department of Energy;
           Mr. Richard A. Shulkosky, Vice President for 
        sales, marketing and product development at the INTEG 
        Process Group, a small company that supplies industrial 
        process control systems and electronics;
           Ms. Lisa A. Roudabush, General Manager of 
        Research for the United States Steel Corporation; and
           Dr. Ronald Sutherland, Consulting Economist 
        and Adjunct Professor of Law at the George Mason 
        University School of Law.
    Mr. Faulkner, speaking on behalf of the Administration, 
testified on the history and management of the program and 
provided examples of success stories. He indicated that the 
Administration has no objection to the legislation. Mr. 
Shulkosky and Ms. Roudabush spoke of their companies' 
experiences and successes with the program. Mr. Sutherland, 
suggested that the program placed too much emphasis on energy 
efficiency rather than economic efficiency. He also recommended 
program improvements that he felt would help ensure that 
program benefited metals companies in the U.S.

                          V. Committee Actions

    On March 4, 2004, Ms. Hart, Mr. English and Mr. Murphy 
introduced H.R 3890 to reauthorize the Steel and Aluminum 
Energy Conservation and Technology Competitiveness Act of 1988. 
The bill was referred to the Committee on Science, and to the 
Subcommittee on Energy and to the Subcommittee on Environment, 
Technology, and Standards. Because the bill primarily deals 
with programs at the Department of Energy, the Subcommittee on 
Energy met on June 15, 2004, to consider the bill. No 
amendments were offered. Mr. Larson moved that the Subcommittee 
favorably report the bill, H.R. 3890, to the Full Committee on 
Science, and that the staff be instructed to make all necessary 
technical and conforming changes to the bill in accordance with 
the recommendations of the Subcommittee. The motion was agreed 
to by a voice vote. The Subcommittee on Environment, 
Technology, and Standards was discharged from considering the 
bill.
    The Full Committee on Science met on June 16, 2004, to 
consider the bill. Two amendments were offered and considered 
by the committee:
    (1) Ms. Hart offered an amendment in the nature of a 
substitute to make technical corrections to the bill. By 
unanimous consent the amendment in the nature of a substitute 
was considered as base text for the purpose of amendment.
    (2) Mr. Gutknecht offered an amendment to limit the 
authorization for fiscal year 2005 to no more than was 
appropriated in fiscal year 2004. The amendment was approved by 
a voice vote.
    (3) The amendment in the nature of a substitute, as 
amended, was then passed by a voice vote.
    Mr. Gordon moved that the Committee favorably report the 
bill, H.R. 3890, to the House with the recommendation that the 
bill as amended do pass, and that the staff be instructed to 
make all technical and conforming changes to the bill as 
amended and prepare the legislative report and that the 
Chairman take all necessary steps to bring the bill before the 
House for consideration. With a quorum present, the motion was 
agreed to by a voice vote.

              VI. Summary of Major Provisions of the Bill

    The bill amends the Steel and Aluminum Energy Conservation 
and Technology Competitiveness Act of 1988. Primarily, the bill 
authorizes appropriations each year for fiscal years 2005 
through 2009 for the Department of Energy. The bill also 
updates priorities to be considered in research planning, 
repeals a section related to National Institute of Standards 
and Technology (NIST) programs that have been inactive, and 
requires DOE to update the program's Management Plan and submit 
it to Congress.

        VII. Section-by-Section Analysis (by Title and Section)


                         SECTION 1. AMENDMENTS

    Amends various sections of the Steel and Aluminum Energy 
Conservation and Technology Competitiveness Act of 1988 as 
follows:
           Authorizes appropriations for fiscal year 
        2005 at the same level as enacted in fiscal year 2004 
        (when DOE allocated $13,268,000 to the program) and 
        authorizes appropriations of $20,000,000 for each of 
        the fiscal years 2006 through 2009.
           Amends the list of priorities to delete 
        ``coatings for sheet steels'' and substitute ``sheet 
        and bar steels,'' and to add research on technologies 
        that reduce greenhouse gas emissions.
           Strikes the section referring to activities 
        at NIST.
           Modifies language to require DOE to update 
        and submit to Congress a Management Plan.

                         VIII. Committee Views

    The Committee believes that energy efficiency research and 
development (R&D) is an important component of the Nation's R&D 
portfolio, especially given concerns about energy security and 
the environmental impacts of energy use. As one of the largest 
energy-consuming industries, efficiency research for the metals 
industry can pay large dividends at a relatively low cost. 
Improvements by these large consumers can mean large reductions 
in energy demand for the nation, lowering demand for fuels and 
reducing upward pressure on prices. The Committee also believes 
that the metals program benefits the U.S. steel and aluminum 
industries by helping them to maintain a competitive edge over 
foreign producers. A healthy U.S. metals industry helps keep 
skilled jobs here in America, and protects the Nation against 
reliance on foreign sources of metal materials and products 
essential to our economy and national security.

                           IX. Cost Estimate

    A cost estimate and comparison prepared by the Director of 
the Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974 timely submitted to the 
Committee on Science prior to the filing of this report and is 
included in Section X of this report pursuant to House rule 
XIII, clause 3(c)(3).
    H.R. 3890 does not contain new budget authority, credit 
authority, or changes in revenues or tax expenditures. Assuming 
that the sums authorized under the bill are appropriated, H.R. 
3890 authorizes additional discretionary spending, as described 
in the Congressional Budget Office report on the bill, which is 
contained in Section X of this report.

              X. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, July 1, 2004.
Hon. Sherwood L. Boehlert,
Chairman, Committee on Science,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3890, a bill to 
reauthorize the Steel and Aluminum Energy Conservation and 
Technology Competitiveness Act of 1988.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Lisa Cash 
Driskill.
            Sincerely,
                                      Elizabeth M. Robinson
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

H.R. 3890--A bill to reauthorize the Steel and Aluminum Energy 
        Conservation and Technology Competitiveness Act of 1988

    Summary: H.R. 3890 would reauthorize the Steel and Aluminum 
Energy Conservation and Technology Competitiveness Act of 1988. 
The bill would authorize the appropriation of $93 million over 
the 2005-2009 period for research and development to enhance 
the energy efficiency of processes that create steel and 
aluminum. It also would expand research authorized under that 
act to include processes that make bar steel and technologies 
to reduce greenhouse gas emissions. CBO estimates that 
implementing H.R. 3890 would cost $79 million over the 2005-
2009 period, assuming appropriation of the authorized amounts.
    H.R. 3890 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, and tribal 
governments.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of H.R. 3890 is shown in the following table. 
The costs of this legislation fall within budget function 270 
(energy). For this estimate, CBO assumes that the amounts 
authorized would be appropriated near the beginning of each 
fiscal year and that outlays would follow the historical 
spending patterns of similar programs.

------------------------------------------------------------------------
                                By fiscal year, in millions of dollars--
                               -----------------------------------------
                                 2004   2005   2006   2007   2008   2009
------------------------------------------------------------------------
                    SPENDING SUBJECT TO APPROPRIATION

Spending under current law:
    Budget Authority \1\......     13      0      0      0      0      0
    Estimated outlays.........      6      5      2      0      0      0
Proposed changes:
    Authorization level.......      0     13     20     20     20     20
    Estimated outlays.........      0      6     14     19     20     20
Spending under H.R. 3890:
    Authorization level \1\...     13     13     20     20     20     20
    Estimated outlays.........      6     11     16     19     20     20
------------------------------------------------------------------------
\1\ The 2004 level is the amount appropriated for that year for research
  and development to enhance the energy efficiency of processes to
  create steel and aluminum.

    Intergovernmental and Private-Sector Impact: H.R. 3890 
contains no intergovernmental or private-sector mandates as 
defined in the UMRA and would impose no costs on state, local, 
and tribal governments.
    Estimate Prepared by: Federal Costs: Lisa Cash Driskill. 
Impact on State, Local and Tribal Governments: Greg Waring. 
Impact on the Private Sector: Jean Talarico.
    Estimate Approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                  XI. Compliance With Public Law 104-4

    H.R. 3890 contains no unfunded mandates.

         XII. Committee Oversight Findings and Recommendations

    The Committee on Science's oversight findings and 
recommendations are reflected in the body of this report.

      XIII. Statement on General Performance Goals and Objectives

    The goal of the Act establishing the metals program, which 
H.R. 3890 reauthorizes, is ``to increase the energy efficiency 
and enhance competitiveness of American steel, aluminum, and 
copper industries by providing Federal incentives for the 
establishment of public-private sector research and development 
partnerships to undertake scientific research and development 
to develop advanced technologies.'' H.R. 3890 makes no changes 
to the goal of the underlying Act.

                XIV. Constitutional Authority Statement

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact H.R. 3890.

                XV. Federal Advisory Committee Statement

    H.R. 3890 does not establish nor authorize the 
establishment of any advisory committee.

                 XVI. Congressional Accountability Act

    The Committee finds that H.R. 3890 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 (Public Law 104-1).

      XVII. Statement on Preemption of State, Local, or Tribal Law

    This bill is not intended to preempt any state, local, or 
tribal law.

      XVIII. 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, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

 STEEL AND ALUMINUM ENERGY CONSERVATION AND TECHNOLOGY COMPETITIVENESS 
ACT OF 1988

           *       *       *       *       *       *       *



SEC. 4. ESTABLISHMENT OF SCIENTIFIC RESEARCH AND DEVELOPMENT PROGRAM TO 
                    DEVELOP COMPETITIVE MANUFACTURING TECHNOLOGIES AND 
                    INCREASE ENERGY EFFICIENCY IN THE STEEL AND 
                    ALUMINUM INDUSTRIES.

  (a) * * *
  (b) Management Plan and Report.--[Within 6 months after the 
date of enactment of this Act] Not later than 6 months after 
the date of enactment of the Act enacting this sentence, the 
Secretary shall publish an update of the management plan [to 
expand the steel research and development initiative to include 
aluminum and] to carry out the purposes of this Act, and shall 
transmit such plan to Congress. The Secretary, from time to 
time, may further update the management plan. The management 
plan shall be subject to the following conditions:
          (1) * * *

           *       *       *       *       *       *       *

  (c) Priorities.--Within 6 months after the date of enactment 
of this Act, the Secretary shall publish an update of the 
research plan. In reviewing research and development activities 
for possible inclusion in the research plan, the Secretary 
shall consider the following:
          (1) Steel projects.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (H) The development of advanced [coatings for 
                sheet steels] sheet and bar steels.

           *       *       *       *       *       *       *

                  (K) The development of technologies which 
                reduce greenhouse gas emissions.

[SEC. 7. EXPANDED STEEL AND ALUMINUM RESEARCH PROGRAM IN NATIONAL 
                    INSTITUTE OF STANDARDS AND TECHNOLOGY.

  [The National Institute of Standards and Technology, through 
its Institute for Materials Science and Engineering and, as 
appropriate, in coordination with the Department of Energy and 
other Federal agencies, shall conduct an expanded program of 
steel and aluminum research to provide necessary 
instrumentation and measurement research and development in 
support of activities conducted under this Act.]

           *       *       *       *       *       *       *


[SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

  [(a) To the Secretary.--(1) There are authorized to be 
appropriated to the Secretary, to carry out the functions of 
the Department of Energy under this Act, $2,000,000 for fiscal 
year 1989, $20,000,000 for fiscal year 1990, $25,000,000 for 
fiscal year 1991, $17,968,000 for fiscal year 1992, and 
$18,091,000 for each of the fiscal years 1993 through 1997, to 
be derived from sums authorized under section 2101(e) of the 
Energy Policy Act of 1992.
  [(2) Funds previously appropriated for the steel research and 
development initiative--
          [(A) under title II of the Interior and Related 
        Agencies portion of the joint resolution entitled 
        ``Joint Resolution making further continuing 
        appropriations for the fiscal year 1986, and for other 
        purposes'', approved December 19, 1985 (Public Law 99-
        190); or
          [(B) under subsequent appropriation Acts,
which remain available under the terms of such Acts may be used 
for the purposes of this Act.
  [(b) To the Institute.--There are authorized to be 
appropriated to the Director of the National Institute of 
Standards and Technology to carry out the functions of the 
Institute under this Act, $3,000,000 for each of the fiscal 
years 1989, 1990, 1991, 1992, 1993, 1994, 1995, 1996, and 1997, 
to be derived from sums otherwise authorized to be appropriated 
to the Institute.]

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to the Secretary to 
carry out this Act for fiscal year 2005, an amount equal to the 
amount appropriated for the same purposes for fiscal year 2004, 
and $20,000,000 for each of the fiscal years 2006 through 2009.

           *       *       *       *       *       *       *


                     XIX. Committee Recommendations

    On June 16, a quorum being present, the Committee on 
Science favorably reported H.R. 3890, a bill to reauthorize the 
Steel and Aluminum Energy Conservation and Competitiveness Act 
of 1988, by a voice vote, and recommended its enactment.


  XX: PROCEEDINGS OF THE MARKUP BY THE SUBCOMMITTEE ON ENERGY ON H.R. 
  3890, TO REAUTHORIZE THE STEEL AND ALUMINUM ENERGY CONSERVATION AND 
                 TECHNOLOGY COMPETITIVENESS ACT OF 1988

                              ----------                              


                         TUESDAY, JUNE 15, 2004

                  House of Representatives,
                            Subcommittee on Energy,
                                      Committee on Science,
                                                    Washington, DC.

    The Subcommittee met, pursuant to call, at 2:10 p.m., in 
Room 2318 of the Rayburn House Office Building, Hon. Judy 
Biggert [Chairwoman of the Subcommittee] presiding.
    Chairwoman Biggert. Good afternoon. The Subcommittee will 
be in order. I apologize for being late. After a two-day 
markup, we are having votes at this very moment, so I did get 
three out of five in, so it was time to leave.
    Pursuant to notice, the Subcommittee on Energy meets today 
to consider the following measures: H.R. 4516, to require the 
Secretary of Energy to carry out a program of research and 
development to advance high-end computing; and H.R. 3890, To 
Reauthorize the Steel and Aluminum Energy Conservation and 
Technology Competitiveness Act of 1988. I ask unanimous consent 
for authority to recess the Subcommittee at any point. Without 
objection, it is so ordered.
    We will now proceed with opening statements, and I will 
start.
    I want to thank you all for attending today's markup. The 
two bills the Energy Subcommittee will consider this afternoon 
are non-controversial in nature, and I anticipate that we will 
complete our business here quite quickly. The first bill before 
the Subcommittee is H.R. 4516, the Department of Energy High-
End Computing Revitalization Act of 2004, which I sponsored 
along with my Democratic colleague, Lincoln Davis. This bill 
would authorize a program of research and development in high-
end computing at the Department of Energy. Next, the 
Subcommittee will consider H.R. 3890, a bill to reauthorize the 
Metals Initiative at the Department of Energy, sponsored by Ms. 
Hart. Representative Hart's bill will help the metals industry, 
one of our most energy-intensive industries, to develop more 
energy-efficient processes.
    Let me speak for a moment about the legislation H.R. 4516, 
DOE's High-Energy Computing Revitalization Act of 2004. This 
bill requires the Secretary of Energy to establish and operate 
high-end computing facilities involving leadership-class 
machines that are among the most elite in the world. The bill 
also directs the Secretary to conduct advanced scientific and 
engineering research and development using these leadership-
class systems, and to continue to advance the capabilities of 
high-end computing hardware and software. Finally, the bill 
requires that these computing facilities be made available on a 
competitive, peer-reviewed basis to researchers with U.S. 
industry, institutions of higher education, national 
laboratories, and other federal agencies.
    Last fall, the Department of Energy's Office of Science 
released its ``20-year Facilities Plan,'' a prioritized list of 
the most important facilities needed to advance multiple fields 
of scientific endeavor over the next two decades. The second 
highest priority identified on the Department's list was ultra-
scale computing. Ultra-scale, or high-end, computing ranks at 
the top of the Department of Energy's priority list because 
these computers are essential tools for achieving the next 
generation of scientific breakthroughs in a variety of 
disciplines. These powerful machines are used to complement 
theory and experimentation in plasma physics and fusion, 
astrophysics, nuclear physics, and genomes, all fields central 
to the Department of Energy's mission.
    In many cases, dramatic breakthroughs will require us to 
increase computing power by a factor of 100, or, in some cases, 
by a factor of 1,000. While obtaining these increases may seem 
daunting, the history of computer development has taught us 
that with a sustained commitment to research, such gains are 
within our reach.
    The bill we are marking up today also complements a new 
initiative recently advanced by the Department. Last month, 
Secretary Abraham announced the selection of a team including 
Argonne National Laboratory, Oak Ridge National Laboratory, and 
other partners to develop and build a new high-end computing 
facility. When completed, this facility will outpace the 
world's current number one computer, Japan's Earth Simulator. 
By renewing our commitment to high-end computing research and 
development at the Department of Energy, the United States can 
regain its distinction as home to the world's most powerful 
computer.
    [The prepared statement of Mrs. Biggert follows:]
              Prepared Statement of Chairman Judy Biggert
    I want to thank you all for attending today's markup. The two bills 
the Energy Subcommittee will consider this morning are non-
controversial in nature, and I anticipate that we will complete our 
business here quite quickly.
    The first bill before the Subcommittee is H.R. 4516, the Department 
of Energy High-End Computing Revitalization Act of 2004, which I 
sponsored along with my Democratic colleague, Lincoln Davis. This bill 
would authorize a program of research and development in high-end 
computing at the Department of Energy. Next, the Subcommittee will 
consider H.R. 3890, a bill to reauthorize the metals initiative at the 
Department of Energy, sponsored by Ms. Hart. Representative Hart's bill 
will help the metals industry, one of our most energy intensive 
industries, to develop more energy efficient processes.
    Let me speak for a moment about my legislation, H.R. 4516, the DOE 
High-End Computing Revitalization Act of 2004. This bill requires the 
Secretary of Energy to establish and operate high-end computing 
facilities involving ``leadership-class'' machines that are among the 
most elite in the world. My bill also directs the Secretary to conduct 
advanced scientific and engineering research and development using 
these leadership class systems, and to continue to advance the 
capabilities of high-end computing hardware and software. Finally, the 
bill requires that these computing facilities be made available on a 
competitive, peer-reviewed basis to researchers with U.S. industry, 
institutions of higher education, national laboratories, and other 
federal agencies.
    Last fall, the Department of Energy's Office of Science released 
its twenty-year facilities plan, a prioritized list of the most 
important facilities needed to advance multiple fields of scientific 
endeavor over the next two decades. The second highest priority 
identified on the Department's list was ``ultra-scale computing.''
    Ultra-scale or high-end computing ranks at the top of the 
Department of Energy's priority list because these computers are 
essential tools for achieving the next generation of scientific 
breakthroughs in a variety of disciplines. These powerful machines are 
used to complement theory and experimentation in plasma physics and 
fusion, astrophysics, nuclear physics, and genomics, all fields central 
to the Department of Energy's mission.
    In many cases, dramatic breakthroughs will require us to increase 
computing power by a factor of a hundred, or in some cases, by a factor 
of a thousand. While attaining these increases may seem daunting, the 
history of computer development has taught us that with a sustained 
commitment to research, such gains are within our reach.
    The bill we are marking up today also complements a new initiative 
recently advanced by the Department. Last month, Secretary Abraham 
announced the selection of a team, including Argonne National 
Laboratory, Oak Ridge National Laboratory, and other partners to 
develop and build a new, high-end computing facility. When completed, 
this new facility will outpace the world's current ``number one'' 
computer, Japan's Earth Simulator.
    By renewing our commitment to high-end computing research and 
development at the Department of Energy, the United States can regain 
its distinction as home to the world's most powerful computer.
    Thank you.

    Chairwoman Biggert. I now recognize Mr. Larson for five 
minutes to present his opening remarks.
    Mr. Larson. Thank you, Madame Chair. I join with you in the 
sentiments that you have expressed that the two bills that we 
are about to undertake are one that enjoy unanimous support of 
the Subcommittee, and we look forward to their passage in 
taking them before the Committee of the whole. And I would like 
to congratulate both Congresswoman Hart and also yourself and 
Congressman Lincoln Davis for your hard work in putting forth 
this legislation.
    Madame Chair, I am pleased to join you in supporting the 
Department of Energy's High-End Computing Revitalization Act 
that is before the Subcommittee today. I want to congratulate 
you and Congressman Lincoln Davis on our side of the aisle for 
all of your hard work in developing this important bill. It has 
been a bipartisan effort, as you know, that culminated in an 
excellent legislative product deserving of the support of the 
Subcommittee.
    The activities authorized at Department of Energy by H.R. 
4516 will help to ensure that United States researchers have 
the tools they need now and in the future to make progress in 
science and engineering research and to generate the new ideas 
that will underpin future technology products and services. The 
bill will reenergize the Department of Energy's R&D efforts in 
supercomputing, which have been at the forefront in past 
development of high-end computing capabilities, as you have 
previously noted. The resources authorized will provide 
researchers with access to the most powerful computing systems 
and will also support the education and training of new 
scientists and engineers in computer and computational 
sciences.
    [The prepared statement of Mr. Larson follows:]

            Prepared Statement of Representative John Larson

    Thank you Madame Chairman.
    We are here today to markup H.R. 3890, Congresswoman Hart's bill to 
reauthorize the metals R&D program at the Department of Energy.
    The implications for programs such as this extend well beyond the 
steel and aluminum industries. With U.S. manufacturing capabilities 
quickly heading overseas, we have a responsibility to do all we can to 
bolster domestic industries and keep Americans working.
    The Department of Energy has a long and successful history of 
partnerships with industry. Through the Industries of the Future 
program, the Department has seen substantial technological benefits in 
a wide range of industrial sectors.
    In addition to the work done on steel and aluminum, applied 
research programs in the mining, chemicals, forest products, 
agriculture, glass and petroleum industries have seen real results. 
Together, these industries employ a very large part of the domestic 
manufacturing workforce.
    There are many benefits of sustaining R&D partnerships with 
industry. We see results in energy savings, a cleaner environment, 
competitive industries, high-paying jobs and ultimately a more solid 
foundation for our economy.
    H.R. 3890 is a small but effective step Congress can take to 
reinforce key domestic industries in their efforts to achieve these 
goals and I support the bill.
    Thank you, and I yield back my time.

    Mr. Larson. I would also seek unanimous consent, and I know 
that Mr. Davis is not here, and I know how hard he has worked 
on this proposal and would seek unanimous consent to submit, 
for the record, any remarks that Mr. Davis, who I know is also 
probably detained by a markup and is unable to be here at this 
point.
    Chairwoman Biggert. Without objection, all Members' opening 
statements will be placed in the record at this time.
    The next bill is H.R. 3890, a bill To Reauthorize the Steel 
and Aluminum Energy Conservation and Technology Competitiveness 
Act of 1988. We will now proceed with opening remarks, and I 
will yield five minutes to the gentlewoman from Pennsylvania to 
introduce the bill.
    Ms. Hart. Thank you, Madame Chair. I hope I won't take the 
five minutes.
    The Committee is familiar with the legislation from our 
recent hearing, and I would ask the Committee, obviously, to 
support it. The goal of the legislation is to reauthorize the 
original Steel and Aluminum Competitiveness Act of 1988, which 
authorized federal cost sharing for research in the metals 
industry. This legislation does this by providing federal 
incentives for the establishment of public/private sector 
research and development to develop technologies that utilize 
the expertise of our existing metals industries to their 
fullest potential. The act established three goals. One was 
high-energy efficiency. The other is increasing competitiveness 
of the U.S. metals industries worldwide, and also improving our 
environment.
    The legislation also has a payback provision, which I think 
is especially important. This initiative requires, under this 
payback provision, the federal share of the monies for the 
research to be repaid out of the net proceeds from 
commercialization of the developed technology that is a result 
of these grants. This has several advantages. Obviously, one by 
compelling commercialization, it focuses the funding for 
particular projects on those that have the best chance of 
commercial success. And also, the Metals Initiative requires a 
commercialization partner, which is a business partner, that 
will be involved in the project from the beginning and the 
responsibility of that business partner is then to deliver that 
technology somehow profitably into the market.
    The reason that we need the reauthorization is because the 
steel industry and the Department of Energy have continued the 
partnership but at a much lower level since the expiration of 
this Act. The Steel Initiative continued even after the 
expiration as well. The Administration has continued to support 
this type of partnership. For fiscal year 2005, in fact, the 
Administration has recommended $6.5 million for the Initiative, 
$3.8 million for steel, $2.7 for aluminum, but that is only 
half of what was provided in 2004. In 2004, the level of 
funding was $13.3 million. It is very difficult to plan 
projects having funding swing so severely from $6.5 in one 
budget to $13.3 the next, or backwards, so this legislation 
would basically reauthorize the 1988 Act through 2009 at a more 
consistent level of $10 million a year.
    Over the years, 58 steel companies and 23 research 
organizations have participated and benefited from the program. 
Those of you who were at the hearing will recall that two 
organizations that participated in the program, one called 
Integ Process Group, and they do a lot of the research, and 
another, United States Steel, had been participants through 
this program and had much success. They testified regarding the 
benefits that it has provided in the past and potential 
benefits that it can continue to provide if we continue to fund 
it in the future.
    I believe the bill is right for industry. I believe it is 
good for energy consumption and also good for our environment. 
It provides for government and for our economy a great bang for 
the buck, especially with the requirements for 
commercialization and payback. So I ask the Members for their 
support, and I yield back, Madame Chair.
    [The prepared statement of Ms. Hart follows:]

           Prepared Statement of Representative Melissa Hart

    I would like to thank Madam Chair for calling this markup to 
discuss my legislation H.R. 3890, To Reauthorize the Steel and Aluminum 
Energy Conservation and Technology Competitiveness Act of 1988.
    As a lifelong Western Pennsylvanian, I saw the devastating effects 
on my region by the collapse of the domestic steel industry in the 
1970s and early 1980s. In the 1960's there were 15,000 steel-producing 
jobs in the City of Aliquippa alone. Currently, there are 15,000 steel-
producing jobs in all of Allegheny, Beaver, Butler, Fayette, Washington 
and Westmoreland counties combined. Recently, we almost saw the 
complete folding of the industry as they were attacked by unfair trade 
practices and dumping by foreign competitors.
    However, the steel industry has worked within itself to stay 
efficient, cost effective and productive, despite these exterior set 
backs. As one of the largest energy consumers in manufacturing, they 
sought way to be energy efficient and environmentally sensitive. In 
such a cash strapped business, they needed the help of the Federal 
Government to be able to seek these benefits. The purpose of the 
original legislation was to authorize federal cost sharing of research 
in the metals industry. The legislation established three goals: 
energy-efficiency, increasing the competitiveness of U.S. industry and 
improving the environment. Legislation does this by providing federal 
incentives for the establishment of public-private sector research and 
development to develop technologies that utilize the expertise of the 
metals industries. Legislation also has a payback provision that 
requires the federal share to be repaid out of net proceeds of 
commercialization of the developed technology. This has several 
advantages such as: by compelling commercialization, it forces only the 
projects with the best chance of commercial success to be selected; by 
requiring a ``commercialization partner,'' a company involved in the 
project from the beginning has the responsibility to deliver the 
technology to market.
    The steel industry and Department of Energy continued this 
partnership under the Metals Initiative, and its predecessor, the Steel 
Initiative, even after the authorization expired.
    While the Metals Initiative benefited from years of high funding 
levels, we have seen a steady decline in the funding over the last four 
years. For the fiscal year 2005 the Administration only recommended a 
total of $6.5 million ($3.8 million for steel, $2.7 for aluminum) which 
is half the $13.3 million provided in 2004. My legislation would 
reauthorize the 1988 Act through 2009 at a constant level of $10 
million per year.
    Over the years 58 steel companies and 23 research organizations 
have participated and benefited from the program. Many of those 
companies are from my region including two companies that participated 
in our May 20th hearing, INTEG Process Group and U.S. Steel. Also 
universities in my region, including the University of Pittsburgh and 
Carnegie Mellon University, benefited from this program. The Metals 
Initiative has helped push private research investments to pursue 
public goals. This bill is right for the industry, good for energy 
consumption and good for the environment. I ask for your support and 
yield back.

    Chairwoman Biggert. I now recognize Mr. Larson for five 
minutes to present his opening remarks.
    Mr. Larson. Thank you, Madame Chair.
    We are here today to mark up H.R. 3890, Congresswoman 
Hart's bill, to reauthorize the Metals Research and Development 
Program at the Department of Energy.
    The implications for programs such as this extend well 
beyond the steel and aluminum industries. With U.S. 
manufacturing capabilities quickly heading overseas, we have 
the responsibility to do all that we can to bolster domestic 
industries and keep Americans working.
    The Department of Energy has a long and successful history 
of partnerships with industry. Through the Industries of the 
Future Program, the Department has seen substantial 
technological benefits in a wide range of industrial sectors.
    In addition to the work done on the steel and aluminum, 
applied research programs in mining, chemicals, forest 
products, agriculture, glass, and petroleum industries have 
seen real results. Together these industries employ a very 
large part of the domestic manufacturing workforce.
    There are many benefits of sustaining research and 
development partnerships with industry. We see the results in 
energy savings, a cleaner environment, competitive industries, 
high-paying jobs, and ultimately, a more solid foundation for 
our economy.
    H.R. 3890 is a small, but effective, step Congress can take 
to reinforce key domestic industries in their efforts to 
achieve these goals, and I support the bill.
    Thank you, and I yield back my time.
    Chairwoman Biggert. The gentleman yields back.
    Without objection, all Members may place opening remarks in 
the record at this point.
    I ask unanimous consent that H.R. 3890 be considered as 
read and open to amendment at any point. Without objection, so 
ordered.
    Are there any amendments? Hearing none, the question is on 
the bill, as amended, H.R. 3890, To Reauthorize the Steel and 
Aluminum Energy Conservation and Technology Competitiveness Act 
of 1988, as amended. All of those in favor will say aye. All of 
those opposed will say no. In the opinion of the Chair, the 
ayes have it.
    I now recognize Mr. Larson to offer a motion.
    Mr. Larson. Thank you, Madame Chair.
    Madame Chair, I move that the Subcommittee favorably report 
the bill H.R. 3890 to the Full Committee. Further, I ask 
unanimous consent that the staff be instructed to make all 
necessary technical and conforming changes to the bill in 
accordance with the recommendation of the Subcommittee.
    Chairwoman Biggert. The question is on the motion to report 
the bill. Those in favor will say aye. Those opposed will say 
no. The ayes have it, and the motion is agreed to.
    Without objection, the motion to reconsider is laid upon 
the table.
    This concludes our Subcommittee markup. And I thank you 
all. And again, I apologize for being late. My one goal always 
is to be on time and to start our meetings on time. So once 
again, thank you for coming, and the Chair declares the 
Subcommittee adjourned.
    [Whereupon, at 2:20 p.m., the Subcommittee was adjourned.]


                               Appendix:

                              ----------                              


 H.R. 3890, To Reauthorize the Steel and Aluminum Energy Conservation 
   and Technology Competitiveness Act of 1988; Summary of H.R. 3890; 
                Section-by-Section Analysis of H.R. 3890





                          Summary of H.R. 3890

    The bill amends the Steel and Aluminum Energy Conservation and 
Technology Competitiveness Act of 1988. Primarily, the bill authorizes 
appropriations of $10 million each year for fiscal years 2005 through 
2009 for the Department of Energy. The bill also includes provisions 
to:

          Include the potential for technologies to reduce 
        greenhouse gas emissions as a consideration in research 
        planning;

          Repeal a section related to programs at the National 
        Institute of Standards and Technology (NIST) that have been 
        inactive; and

          Re-establish a requirement for an annual report to 
        the President and the Congress on R&D activities carried out 
        under the program.

                Section-by-Section Analysis of H.R. 3890

Section 1

    Authorizes appropriations of $10 million for each of the fiscal 
years 2005 through 2009. Amends one of the program priorities by 
deleting ``coatings for sheet steels'' and substituting ``sheet and bar 
steels.'' Adds a new priority that authorizes research on technologies 
that reduce greenhouse gas emissions. Strikes the section referring to 
activities at NIST. Inserts language that reestablishes a requirement 
for an annual report to Congress.

Bill Background

What did the underlying legislation do?
    The underlying act, the Steel and Aluminum Energy Conservation and 
Technology Competitiveness Act of 1988, (the Act) authorized a program 
to ``increase the energy efficiency and enhance the competitiveness of 
American steel, aluminum, and copper industries'' through research and 
development activities at DOE. While a program already existed at DOE, 
the Act required an updated research plan, set the minimum cost share 
from industry at 30 percent, identified specific priorities for 
consideration in project selection, required regular reports to 
Congress, and outlined intellectual property rights for discoveries of 
the research. The Act also mandated participation by industry and labor 
in the development of the management plans. The Act also called on NIST 
to provide instrumentation and measurement R&D support to the programs.
What programmatic changes does H.R. 3890 include?
    In addition to authorizing $10 million per year for fiscal year 
2005 through fiscal year 2009 to carry out the program, H.R. 3890 
proposes to:

          Authorize research to target greenhouse gas 
        reductions. As large energy consumers the metals industries 
        make a significant contribution to total emission of greenhouse 
        gasses, including carbon dioxide. This provision, included at 
        the request of the metals industry, would explicitly allow 
        research projects that concentrate on reducing these emissions;

          Repeal the sections of the Act that refer to NIST. 
        The NIST portion of the program has not been active for many 
        years. While NIST's general authorities would allow work to 
        continue on competitiveness for the metals industry, the bill's 
        sponsors believe that it is most important to focus the program 
        at the Department of Energy;

          Require an annual report to Congress. The report must 
        include a summary of the research and development activities, 
        including budget information, together with any recommendations 
        from the Secretary on other actions that could assist the 
        industry. The report must also contain an analysis of the 
        extent to which projects succeeded in accomplishing the 
        purposes of the Act.

How does the existing program work?
    The program is closely coordinated with industry through 
participation in research planning and cost-sharing. This involvement 
serves as a ``market test'' of whether industry perceives the 
activities as important enough to contribute their time and money. In 
general, the program solicits proposals, which are concurrently 
reviewed by the industry's trade organization and DOE to ensure that 
the projects meet the criteria and objectives of both. The resulting 
list of qualified proposals is then distributed to the trade group's 
member companies, which determine priority projects by identifying 
projects for which they are willing to cost share. Project awards are 
made, and the research is generally conducted at universities and 
national laboratories, although some research may also be carried out 
on-site at participating companies' facilities. To ensure that the 
benefits are realized domestically, the Act limits company 
participation to those companies ``substantially involved in the United 
States domestic production, processing, or use'' of steel, aluminum or 
copper.
What are the funding levels for the program?
    In 2004, Congress appropriated $6.7 million for the steel program 
and $6.6 million for the aluminum program. The 2005 Budget includes 
$3.8 million and $2.7 million for these programs, respectively.


    XXI. PROCEEDINGS OF THE FULL COMMITTEE MARKUP ON H.R. 3890, TO 
 REAUTHORIZE THE STEEL AND ALUMINUM ENERGY CONSERVATION AND TECHNOLOGY 
                      COMPETITIVENESS ACT OF 1988

                              ----------                              


                        WEDNESDAY, JUNE 16, 2004

                  House of Representatives,
                                      Committee on Science,
                                                    Washington, DC.

    The Committee met, pursuant to call, at 10:10 a.m., in Room 
2318 of the Rayburn House Office Building, Hon. Sherwood L. 
Boehlert [Chairman of the Committee] presiding.
    Chairman Boehlert. The Committee on Science will be in 
order. Pursuant to notice, the Committee on Science meets today 
to consider the following measures: H.R. 3890, To Reauthorize 
the Steel and Aluminum Conservation and Technology 
Competitiveness Act of 1988; H.R. 3598, Manufacturing 
Technology Competitiveness Act of 2004; H.R. 4218, High-
Performance Computing Revitalization Act of 2004; and H.R. 
4516, Department of Energy High-End Computing Revitalization 
Act of 2004. I ask unanimous consent for the authority to 
recess the Committee at any point during consideration of these 
matters. And without objection, it is so ordered.
    We will now proceed with opening statements, and I will 
lead off.
    I am going to keep my remarks very brief, because we have a 
long markup ahead of us. I would simply point out that once 
again we have come up with a good set of bipartisan bills that 
prepare our nation for the future. We have Ms. Hart's metals 
bill, which will help our nation save energy, helping the steel 
and aluminum industries remain competitive by helping our 
nation become less dependent on foreign sources of energy, all 
worthy goals. We have Ms. Biggert's computing bill--bills, 
which will revitalize our high-performance computing efforts, 
enabling our scientists and computing industry to excel as they 
face new challenges from abroad. And we have Dr. Ehlers' 
manufacturing bill, which will help our smaller manufacturers 
stay up-to-date and competitive. All of these bills reflect 
significant contributions from the Minority and have lead 
Minority co-sponsors, whom I am sure Mr. Gordon will 
acknowledge.
    Our debate today will be prolonged, but it won't be on 
fundamental goals or principles. It will be about whether to do 
even more in the manufacturing bill. I think we need to get 
this measure through before we take on additional issues. We 
will have lively discussion on that, but we are united on 
trying to do everything possible for our manufacturers.
    With that, let the games begin.
    Mr. Gordon.
    [The prepared statement of Chairman Boehlert follows:]

            Prepared Statement of Chairman Sherwood Boehlert

    I'm going to keep my remarks very brief because we have a long 
markup ahead of us.
    I would simply point out that once again we've come with a good set 
of bipartisan bills that prepare our nation for the future. We have Ms. 
Hart's metals bill, which will help our nation save energy, helping the 
steel and aluminum industry remain competitive while helping our nation 
become less dependent on foreign sources of energy. We have Ms. 
Biggert's computing bills, which will revitalize our high-performance 
computing efforts, enabling our scientists and computing industry to 
excel as they face new challenges from abroad. And we have Mr. Ehlers 
manufacturing bill, which will help our smaller manufacturers stay up-
to-date and competitive.
    All these bills reflect significant contributions from the Minority 
and have lead Minority co-sponsors, whom I'm sure Mr. Gordon will 
acknowledge.
    Our debate today will be prolonged, but it won't be on fundamental 
goals or first principles. It will be about whether to do even more in 
the manufacturing bill. I think we need to get this measure through 
before we take on additional issues. We'll have lively discussion on 
that, but we are united on trying to do everything possible for our 
manufacturers.
    With that, let the games begin.
    Mr. Gordon.

    Mr. Gordon. Thank you, Mr. Chairman. Let me say that we are 
pleased at the bipartisan cooperation we have experienced in 
the development of three of the bills considered today: H.R. 
3890, To Reauthorize the Steel and Aluminum Energy Conservation 
and Technology Competitiveness Act of 1988; H.R. 4516, the 
Department of Energy High-End Computing Revitalization Act of 
2004; and H.R. 4218, the High-Performance Computing 
Revitalization Act of 2004.
    With regard to H.R. 4218 and H.R. 4516, we believe the 
Committee is making a major contribution to reinvigorating 
high-end computing at a time when traditional U.S. lead is 
under vigorous challenge. We are depending on this program to 
increase ability to understand huge data sets across a wide 
spectrum of programs ranging from advanced manufacturing to 
weather prediction.
    The steel industry is one of several industrial sectors 
that are heavy users of energy and benefit from cooperative 
research with the Federal Government. We support not only 
continuing the Department of Energy's program with the steel 
industry as set out in H.R. 3890, but also strengthening the 
entire Industries of the Future Program.
    Unfortunately, though, however, the same level of 
cooperation did not occur on H.R. 3598 in developing our 
manufacturing policy. This is particularly disturbing in light 
of the battering this sector has endured over the last three 
years. We have no problem with the tentative first steps taken 
in H.R. 3598, but we do not think it is an adequate response to 
the problems that have cost the jobs of two million Americans. 
I will have further comments on this bill when it is called up 
for consideration.
    Thank you.
    [The prepared statement of Mr. Gordon follows:]

            Prepared Statement of Representative Bart Gordon

    We are pleased at the bipartisan cooperation we have experienced in 
the development of three bills to be considered today: H.R. 3890, To 
Reauthorize the Steel and Aluminum Energy Conservation and Technology 
Competitiveness Act of 1988; H.R. 4516, The Department of Energy High-
End Computing Revitalization Act of 2004; and H.R. 4218, The High-
Performance Computing Revitalization Act of 2004.
    With regard to H.R. 4218 and H.R. 4516, we believe the Committee is 
making a major contribution to reinvigorating high-end computing at a 
time when the traditional U.S. lead is under vigorous challenge. We are 
depending on this program to increase our ability to understand huge 
data sets across a wide spectrum of problems ranging from advanced 
manufacturing to weather prediction. The steel industry is one of 
several industrial sectors that are heavy users of energy that benefit 
from cooperative research with the Federal Government. We support, not 
only continuing the Department of Energy's program with the steel 
industry as set out in H.R. 3890, but also strengthening the entire 
Industries of the Future Program.
    Unfortunately, the same level of cooperation did not occur on the 
H.R. 3598, The Manufacturing Competitiveness Act of 2004, in developing 
our manufacturing policy. This is particularly disturbing in light of 
the battering this sector has endured over the past three years. We 
have no problem with the tentative first steps taken in H.R. 3598, but 
we do not think it is an adequate response to the problems that have 
cost the jobs of two million Americans. I will have further comments on 
this bill when it is called up for consideration.

    Chairman Boehlert. Thank you very much, Mr. Gordon.
    Without objection, all Members may place opening statements 
in the record at this point.
    We will now consider H.R. 3890. Now, listen, the balance of 
the program. We have three bills, and by agreement of both 
sides, we are going to move these rather rapidly. We are very 
mindful of the demands on your time. We will now consider H.R. 
3890, To Reauthorize the Steel and Aluminum Conservation and 
Technology Competitiveness Act of 1988. I now yield five 
minutes to Ms. Hart to introduce her bill.
    Ms. Hart. Thank you, Mr. Chairman. Thank you for scheduling 
this markup so quickly on the heels of the Subcommittee markup, 
but I would like to also thank the Subcommittee Chairman, Mrs. 
Biggert, for moving the bill as well.
    H.R. 3890 is a bill to reauthorize the Steel and Aluminum 
Energy Conservation and Technology Competitiveness Act of 1988, 
and it is--the purpose of it is to just reauthorize the Act, 
which has expired. I would authorize federal cost sharing of 
research in the metals industry. The legislation does this by 
providing federal incentives for the establishment of public 
private sector research and development, to develop 
technologies that will utilize the expertise of the metal 
industries, and also, the expertise of those that provide 
process development.
    The Act established three goals. And one is energy 
efficiency, the second is increasing the competitiveness of the 
United States industry, the metals industry here, and also, 
improving the environment. The legislation also contains 
something that I think is extremely important, and that is a 
payback provision. It requires a federal share, or a portion of 
the federal share, to be repaid out of the net proceeds of the 
commercialization of the developed technology.
    This has several advantages. Obviously, first, by 
compelling commercialization, it focuses these--the decision 
for which projects will be funded on those projects which have 
the best chance of commercial success, and also, the metals 
initiative requires that there be a commercialization partner, 
that is a business, that will be involved in the project from 
the beginning, and it will be the responsibility of that 
business to deliver this technology to market.
    The reason we need the reauthorization is that the 
partnership has been concluded, even though the Act--the part--
excuse me, has been continued even after the Act expired, but 
it is important, in my opinion, to continue it, because the 
funding has been inconsistent. For Fiscal Year 2005, the 
Administration only recommended a total of $6.5 million, which 
is $3.8 million for steel, $2.7 million for aluminum, which is 
half of what was provided in the prior year of 2004.
    This legislation would simply reauthorize the Act, and 
continue it until 2009, and at a consistent funding level. Over 
the years of this Act, 58 steel companies and 23 research 
organizations have participated and benefited from the program, 
creating a stronger industry, creating jobs, and obviously, 
helping us to be competitive worldwide.
    Two of those companies, as the Members may recall, did 
participate in a hearing before the Subcommittee, and one of 
them, Integ Process Group, the other, United States Steel, 
testified about the positive effects of this initiative, and 
their hopes for the future of this initiative, has continued.
    I believe it is a great bill for industry. It is good for 
energy consumption, and it is good for the environment, and by 
partnering with industry, it provides a great bang for the 
government dollar.
    I ask the Members for their support, and I yield back, Mr. 
Chairman.
    Chairman Boehlert.--presentation. The Chair now recognizes. 
The Chair now recognizes Mr. Gordon.
    Mr. Gordon. I want to commend Congresswoman Hart for her 
work on H.R. 3890, for a variety of reasons, and which I won't 
go to today, because of our need for brevity, but I urge the 
support of this bill.
    Chairman Boehlert. Thank you very much. Without objection, 
all Members may place opening statements in the record at this 
point. I ask unanimous consent that the bill is considered as 
read and opened to amendment at any point, and that the Members 
proceed with the amendments in the order of the roster.
    Without objection, so ordered. The first amendment on the 
roster is an amendment in the nature of a substitute, offered 
by Ms. Hart. I ask unanimous consent that the amendment in the 
nature of a substitute be treated as original text for purpose 
of amendment under the five-minute rule. Without objection, so 
ordered. Ms. Hart?
    Ms. Hart. Thank you, Mr. Chairman. I mentioned the 
continuation of funding through this legislation, and what we 
do in the amendment.
    Chairman Boehlert. Do you have the amendment----
    Ms. Hart. I am sorry.
    Chairman Boehlert.--desk. Clerk, report the amendment.
    Ms. Hart. Thanks.
    Ms. Tessieri. Amendment in the nature of a substitute to 
H.R. 3890, offered by Ms. Hart.
    [Note: See the Appendix for the Amendment offered by Ms. 
Hart.]
    Chairman Boehlert. The gentlelady is recognized.
    Ms. Hart. Thank you, Mr. Chairman. I apologize for starting 
too soon. Basically, there are some technical corrections in 
the amendment. One is that the development of an initiative for 
aluminum is removed, because the Department of Energy has 
already done that, and the other is regarding the consistent 
funding, we actually replace $10 million with $20 million, so 
that the funding will be more significant. Thank you, Mr. 
Chairman.
    Chairman Boehlert. Thank you very much. If there is no 
further discussion on the amendment, the next amendment is on 
the roster, amendment number 2, an amendment offered by the 
gentleman from Minnesota. Are you ready to proceed?
    Mr. Gutknecht. Yes, Mr. Chairman.
    Chairman Boehlert. You are recognized. The Clerk will 
report the amendment.
    Ms. Tessieri. Amendment offered by Mr. Gutknecht to the 
amendment in the nature of a substitute.
    [Note: See the Appendix for the Amendment offered by Mr. 
Gutknecht.]
    Chairman Boehlert. Mr. Gutknecht is recognized for five 
minutes.
    Mr. Gutknecht. Mr. Chairman, I believe this amendment that 
Ms. Hart will agree to, essentially what it does, because we 
are, in fairly large sections of the federal budget this year, 
we are putting in what I would describe as a flexible freeze, 
and as a Member of the Budget Committee, I think we probably 
need to follow through in terms of our authorization, and 
instructing the appropriators. All this really does is--does 
for this program what we have done for so many other programs, 
and that is to flatline the budget for this year. The 
compromise is that in future years, the amount authorized for 
this program will be allowed to go up. And so I would hope you 
would support this amendment, and we can move forward with the 
bill.
    Chairman Boehlert. Ms. Hart, do you have a word to say in 
support?
    Ms. Hart. Yes. I have. My staff and Mr. Gutknecht's staff 
have worked out an agreement on the amendment, so I do support 
the amendment.
    Chairman Boehlert. Is there further discussion on the 
amendment? If not, the vote occurs on the amendment. All in 
favor, say aye? Aye. Opposed, no. The ayes appear to have it, 
and the amendment is agreed to.
    Now, we will vote on the amendment in the nature of a 
substitute. Are there any further amendments to the amendment 
in the nature of a substitute? Hearing none, the question is on 
the amendment in the nature of a substitute. All in favor, say 
aye. Aye. The opposed, say no. The ayes have it, and the 
amendment in the nature of a substitute is agreed to.
    Are there any other amendments? Hearing none, the question 
is now on the bill, H.R. 3890, To Reauthorize the Steel and 
Aluminum Conservation and Technology Competitiveness Act of 
1988, as amended. All those in favor, say aye. Aye. Opposed, 
no. In the opinion of the Chair, the ayes have it.
    I now recognize Mr. Gordon to offer an amendment.
    Mr. Gordon. Mr. Chairman, I move that the Committee 
favorably report H.R. 3890, as amended, to the House with the 
recommendation that the bill, as amended, do pass. Furthermore, 
I move that the staff be instructed to prepare the legislative 
report, and make necessary technical and conforming changes, 
and that the Chairman take all necessary steps to bring the 
bill before the House for consideration.
    Chairman Boehlert. The question is on the motion to report 
the bill, as amended, favorably. Those in favor of the motion 
will signify by saying aye. Aye. Opposed, no. The ayes appear 
to have it, and the resolution is favorably reported. Without 
objection, the motion to reconsider is laid upon the table. I 
move that Members have two subsequent calendar days in which to 
submit supplemental, minority, or additional views on the 
measure. I move, pursuant to Clause 1 of Rule 22 of the Rules 
of House of Representatives, that the Committee authorize the 
Chairman to offer such motions as may be necessary in the House 
to adopt and pass H.R. 3890, as amended, and to go to 
conference with the Senate on H.R. 3890, or a similar Senate 
bill. Without objection, so ordered.
    This concludes our Committee markup, and I want to thank 
those who indulged all of us for so many hours. I want to thank 
the staff on a bipartisan basis for their outstanding input, 
that makes these success stories possible.
    This committee is adjourned.
    [Whereupon, at 2:15 p.m., the Committee was adjourned.]
                               Appendix:

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                            Amendment Roster





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