[House Report 110-444]
[From the U.S. Government Publishing Office]





110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-444

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



 
                     MERCURY EXPORT BAN ACT OF 2007

                                _______
                                

 November 13, 2007.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 1534]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 1534) to prohibit the sale, distribution, or 
transfer of mercury, to prohibit the export of mercury, and for 
other purposes, having considered the same, report favorably 
thereon with amendments and recommend that the bill as amended 
do pass.

                                CONTENTS

                                                                   Page
Amendments.......................................................     1
Purpose and Summary..............................................     6
Background and Need for Legislation..............................     6
Hearings.........................................................     9
Committee Consideration..........................................    10
Committee Votes..................................................    10
Committee Oversight Findings.....................................    12
Statement of General Performance Goals and Objectives............    12
New Budget Authority, Entitlement Authority, and Tax Expenditures    12
Earmarks and Tax and Tariff Benefits.............................    12
Committee Cost Estimate..........................................    12
Congressional Budget Office Estimate.............................    12
Federal Mandates Statement.......................................    16
Advisory Committee Statement.....................................    16
Constitutional Authority Statement...............................    16
Applicability to Legislative Branch..............................    16
Section-by-Section Analysis of the Legislation...................    16
Changes in Existing Law Made by the Bill, as Reported............    20

                               Amendments

    The amendments are as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Mercury Export Ban Act of 2007''.

SEC. 2. FINDINGS.

  Congress finds that--
          (1) mercury is highly toxic to humans, ecosystems, and 
        wildlife;
          (2) as many as 10 percent of women in the United States of 
        childbearing age have mercury in the blood at a level that 
        could put a baby at risk;
          (3) as many as 630,000 children born annually in the United 
        States are at risk of neurological problems related to mercury;
          (4) the most significant source of mercury exposure to people 
        in the United States is ingestion of mercury-contaminated fish;
          (5) the Environmental Protection Agency reports that, as of 
        2004--
                  (A) 44 States have fish advisories covering over 
                13,000,000 lake acres and over 750,000 river miles;
                  (B) in 21 States the freshwater advisories are 
                statewide; and
                  (C) in 12 States the coastal advisories are 
                statewide;
          (6) the long-term solution to mercury pollution is to 
        minimize global mercury use and releases to eventually achieve 
        reduced contamination levels in the environment, rather than 
        reducing fish consumption since uncontaminated fish represents 
        a critical and healthy source of nutrition worldwide;
          (7) mercury pollution is a transboundary pollutant, 
        depositing locally, regionally, and globally, and affecting 
        water bodies near industrial sources (including the Great 
        Lakes) and remote areas (including the Arctic Circle);
          (8) the free trade of elemental mercury on the world market, 
        at relatively low prices and in ready supply, encourages the 
        continued use of elemental mercury outside of the United 
        States, often involving highly dispersive activities such as 
        artisinal gold mining;
          (9) the intentional use of mercury is declining in the United 
        States as a consequence of process changes to manufactured 
        products (including batteries, paints, switches, and measuring 
        devices), but those uses remain substantial in the developing 
        world where releases from the products are extremely likely due 
        to the limited pollution control and waste management 
        infrastructures in those countries;
          (10) the member countries of the European Union collectively 
        are the largest source of elemental mercury exports globally;
          (11) the European Commission has proposed to the European 
        Parliament and to the Council of the European Union a 
        regulation to ban exports of elemental mercury from the 
        European Union by 2011;
          (12) the United States is a net exporter of elemental mercury 
        and, according to the United States Geological Survey, exported 
        506 metric tons of elemental mercury more than the United 
        States imported during the period of 2000 through 2004; and
          (13) banning exports of elemental mercury from the United 
        States will have a notable effect on the market availability of 
        elemental mercury and switching to affordable mercury 
        alternatives in the developing world.

SEC. 3. PROHIBITION ON SALE, DISTRIBUTION, OR TRANSFER OF ELEMENTAL 
                    MERCURY.

  Section 6 of the Toxic Substances Control Act (15 U.S.C. 2605) is 
amended by adding at the end the following:
  ``(f) Mercury.--
          ``(1) Prohibition on sale, distribution, or transfer of 
        elemental mercury by federal agencies.--Except as provided in 
        paragraph (2), effective beginning on the date of enactment of 
        this subsection, no Federal agency shall convey, sell, or 
        distribute to any other Federal agency, any State or local 
        government agency, or any private individual or entity any 
        elemental mercury under the control or jurisdiction of the 
        Federal agency.
          ``(2) Exception.--Paragraph (1) shall not apply to a transfer 
        between Federal agencies of elemental mercury for the sole 
        purpose of facilitating storage of mercury to carry out this 
        Act.''.

SEC. 4. PROHIBITION ON EXPORT OF ELEMENTAL MERCURY.

  Section 12 of the Toxic Substances Control Act (15 U.S.C. 2611) is 
amended--
          (1) in subsection (a) by striking ``subsection (b)'' and 
        inserting ``subsections (b) and (c)''; and
          (2) by adding at the end the following:
  ``(c) Prohibition on Export of Elemental Mercury.--
          ``(1) Prohibition.--Effective January 1, 2010, the export of 
        elemental mercury from the United States is prohibited.
          ``(2) Inapplicability of subsection (a).--Subsection (a) 
        shall not apply to this subsection.
          ``(3) Report to congress on mercury compounds.--
                  ``(A) Report.--Not later than one year after the date 
                of enactment of the Mercury Export Ban Act of 2007, the 
                Administrator shall publish and submit to Congress a 
                report on mercuric chloride, mercurous chloride or 
                calomel, mercuric oxide, and other mercury compounds, 
                if any, that may currently be used in significant 
                quantities in products or processes. Such report shall 
                include an analysis of--
                          ``(i) the sources and amounts of each of the 
                        mercury compounds imported into the United 
                        States or manufactured in the United States 
                        annually;
                          ``(ii) the purposes for which each of these 
                        compounds are used domestically, the amount of 
                        these compounds currently consumed annually for 
                        each purpose, and the estimated amounts to be 
                        consumed for each purpose in 2010 and beyond;
                          ``(iii) the sources and amounts of each 
                        mercury compound exported from the United 
                        States annually in each of the last three 
                        years;
                          ``(iv) the potential for these compounds to 
                        be processed into elemental mercury after 
                        export from the United States; and
                          ``(v) other relevant information that 
                        Congress should consider in determining whether 
                        to extend the export prohibition to include one 
                        or more of these mercury compounds.
                  ``(B) Procedure.--For the purpose of preparing the 
                report under this paragraph, the Administrator may 
                utilize the information gathering authorities of this 
                title, including sections 10 and 11.
          ``(4) Essential use exemption.--(A) Any person residing in 
        the United States may petition the Administrator for an 
        exemption from the prohibition in paragraph (1), and the 
        Administrator may grant by rule, after notice and opportunity 
        for comment, an exemption for a specified use at an identified 
        foreign facility if the Administrator finds that--
                  ``(i) nonmercury alternatives for the specified use 
                are not available in the country where the facility is 
                located;
                  ``(ii) there is no other source of elemental mercury 
                available from domestic supplies (not including new 
                mercury mines) in the country where the elemental 
                mercury will be used;
                  ``(iii) the country where the elemental mercury will 
                be used certifies its support for the exemption;
                  ``(iv) the export will be conducted in such a manner 
                as to ensure the elemental mercury will be used at the 
                identified facility as described in the petition, and 
                not otherwise diverted for other uses for any reason;
                  ``(v) the elemental mercury will be used in a manner 
                that will protect human health and the environment, 
                taking into account local, regional, and global human 
                health and environmental impacts;
                  ``(vi) the elemental mercury will be handled and 
                managed in a manner that will protect human health and 
                the environment, taking into account local, regional, 
                and global human health and environmental impacts; and
                  ``(vii) the export of elemental mercury for the 
                specified use is consistent with international 
                obligations of the United States intended to reduce 
                global mercury supply, use, and pollution.
          ``(B) Each exemption issued by the Administrator pursuant to 
        this paragraph shall contain such terms and conditions as are 
        necessary to minimize the export of elemental mercury and 
        ensure that the conditions for granting the exemption will be 
        fully met, and shall contain such other terms and conditions as 
        the Administrator may prescribe. No exemption granted pursuant 
        to this paragraph shall exceed three years in duration and no 
        such exemption shall exceed 10 metric tons of elemental 
        mercury.
          ``(C) The Administrator may by order suspend or cancel an 
        exemption under this paragraph in the case of a violation 
        described in subparagraph (D).
          ``(D) A violation of this subsection or the terms and 
        conditions of an exemption, or the submission of false 
        information in connection therewith, shall be considered a 
        prohibited act under section 15, and shall be subject to 
        penalties under section 16, injunctive relief under section 17, 
        and citizen suits under section 20.
          ``(5) Consistency with trade obligations.--Nothing in this 
        subsection affects, replaces, or amends prior law relating to 
        the need for consistency with international trade obligations.
          ``(6) Export of coal.--Nothing in this subsection shall be 
        construed to prohibit the export of coal.''.

SEC. 5. LONG-TERM STORAGE.

  (a) Establishment of Program.--Not later than January 1, 2010, the 
Secretary of Energy (in this section referred to as the ``Secretary'') 
shall accept custody, for the purpose of long-term management and 
storage, of elemental mercury generated within the United States and 
delivered to a facility of the Department of Energy designated by the 
Secretary.
  (b) Fees.--
          (1) In general.--After consultation with persons who are 
        likely to deliver elemental mercury to a designated facility 
        for long-term management and storage under the program 
        prescribed in subsection (a), and with other interested 
        persons, the Secretary shall assess and collect a fee at the 
        time of delivery for providing such management and storage, 
        based on the pro rata cost of long-term management and storage 
        of elemental mercury delivered to the facility. The amount of 
        such fees--
                  (A) shall be made publically available not later than 
                October 1, 2009;
                  (B) may be adjusted annually; and
                  (C) shall be set in an amount sufficient to cover the 
                costs described in paragraph (2).
          (2) Costs.--The costs referred to in paragraph (1)(C) are the 
        costs to the Department of Energy of providing such management 
        and storage, including facility operation and maintenance, 
        security, monitoring, reporting, personnel, administration, 
        inspections, training, fire suppression, closure, and other 
        costs required for compliance with applicable law. Such costs 
        shall not include costs associated with land acquisition or 
        permitting of a designated facility under the Solid Waste 
        Disposal Act or other applicable law. Building design and 
        building construction costs shall only be included to the 
        extent that the Secretary finds that the management and storage 
        of elemental mercury accepted under the program under this 
        section cannot be accomplished without construction of a new 
        building or buildings.
  (c) Report.--Not later than 60 days after the end of each Federal 
fiscal year, the Secretary shall transmit to the Committee on Energy 
and Commerce of the House of Representatives and the Committee on 
Environment and Public Works of the Senate a report on all of the costs 
incurred in the previous fiscal year associated with the long-term 
management and storage of elemental mercury. Such report shall set 
forth separately the costs associated with activities taken under this 
section.
  (d) Management Standards for a Facility.--
          (1) Guidance.--Not later than October 1, 2009, the Secretary, 
        after consultation with the Administrator of the Environmental 
        Protection Agency and all appropriate State agencies in 
        affected States, shall make available, including to potential 
        users of the long-term management and storage program 
        established under subsection (a), guidance that establishes 
        procedures and standards for the receipt, management, and long-
        term storage of elemental mercury at a designated facility or 
        facilities, including requirements to ensure appropriate use of 
        flasks or other suitable shipping containers. Such procedures 
        and standards shall be protective of human health and the 
        environment and shall ensure that the elemental mercury is 
        stored in a safe, secure, and effective manner. In addition to 
        such procedures and standards, elemental mercury managed and 
        stored under this section at a designated facility shall be 
        subject to the requirements of the Solid Waste Disposal Act, 
        including the requirements of subtitle C of that Act, except as 
        provided in subsection (g)(2) of this section. A designated 
        facility in existence on or before January 1, 2010, is 
        authorized to operate under interim status pursuant to section 
        3005(e) of the Solid Waste Disposal Act until a final decision 
        on a permit application is made pursuant to section 3005(c) of 
        the Solid Waste Disposal Act. Not later than January 1, 2012, 
        the Administrator of the Environmental Protection Agency (or an 
        authorized State) shall issue a final decision on the permit 
        application.
          (2) Training.--The Secretary shall conduct operational 
        training and emergency training for all staff that have 
        responsibilities related to elemental mercury management, 
        transfer, storage, monitoring, or response.
          (3) Equipment.--The Secretary shall ensure that each 
        designated facility has all equipment necessary for routine 
        operations, emergencies, monitoring, checking inventory, 
        loading, and storing elemental mercury at the facility.
          (4) Fire detection and suppression systems.--The Secretary 
        shall--
                  (A) ensure the installation of fire detection systems 
                at each designated facility, including smoke detectors 
                and heat detectors; and
                  (B) ensure the installation of a permanent fire 
                suppression system, unless the Secretary determines 
                that a permanent fire suppression system is not 
                necessary to protect human health and the environment.
  (e) Indemnification of Persons Delivering Elemental Mercury.--
          (1) In general.--(A) Except as provided in subparagraph (B) 
        and subject to paragraph (2), the Secretary shall hold 
        harmless, defend, and indemnify in full any person who delivers 
        elemental mercury to a designated facility under the program 
        established under subsection (a) from and against any suit, 
        claim, demand or action, liability, judgment, cost, or other 
        fee arising out of any claim for personal injury or property 
        damage (including death, illness, or loss of or damage to 
        property or economic loss) that results from, or is in any 
        manner predicated upon, the release or threatened release of 
        elemental mercury as a result of acts or omissions occurring 
        after such mercury is delivered to a designated facility 
        described in subsection (a).
          (B) To the extent that a person described in subparagraph (A) 
        contributed to any such release or threatened release, 
        subparagraph (A) shall not apply.
          (2) Conditions.--No indemnification may be afforded under 
        this subsection unless the person seeking indemnification--
                  (A) notifies the Secretary in writing within 30 days 
                after receiving written notice of the claim for which 
                indemnification is sought;
                  (B) furnishes to the Secretary copies of pertinent 
                papers the person receives;
                  (C) furnishes evidence or proof of any claim, loss, 
                or damage covered by this subsection; and
                  (D) provides, upon request by the Secretary, access 
                to the records and personnel of the person for purposes 
                of defending or settling the claim or action.
          (3) Authority of secretary.--(A) In any case in which the 
        Secretary determines that the Department of Energy may be 
        required to make indemnification payments to a person under 
        this subsection for any suit, claim, demand or action, 
        liability, judgment, cost, or other fee arising out of any 
        claim for personal injury or property damage referred to in 
        paragraph (1)(A), the Secretary may settle or defend, on behalf 
        of that person, the claim for personal injury or property 
        damage.
          (B) In any case described in subparagraph (A), if the person 
        to whom the Department of Energy may be required to make 
        indemnification payments does not allow the Secretary to settle 
        or defend the claim, the person may not be afforded 
        indemnification with respect to that claim under this 
        subsection.
  (f) Terms, Conditions, and Procedures.--The Secretary is authorized 
to establish such terms, conditions, and procedures as are necessary to 
carry out this section.
  (g) Effect on Other Law.--
          (1) In general.--Except as provided in paragraph (2), nothing 
        in this section changes or affects any Federal, State, or local 
        law or the obligation of any person to comply with such law.
          (2) Exception.--(A) Elemental mercury that the Secretary is 
        storing on a long-term basis shall not be subject to the 
        storage prohibition of section 3004(j) of the Solid Waste 
        Disposal Act (42 U.S.C. 6924(j)). For the purposes of section 
        3004(j) of the Solid Waste Disposal Act, a generator 
        accumulating elemental mercury destined for a facility 
        designated by the Secretary under subsection (a) for 90 days or 
        less shall be deemed to be accumulating the mercury to 
        facilitate proper treatment, recovery, or disposal.
          (B) Elemental mercury that is stored at a facility with 
        respect to which a permit has been issued under section 3005(c) 
        of the Solid Waste Disposal Act (42 U.S.C. 6925(c)) shall not 
        be subject to the storage prohibition of section 3004(j) of the 
        Solid Waste Disposal Act (42 U.S.C. 6924(j)) if--
                  (i) the Secretary is unable to accept the mercury at 
                a facility designated by the Secretary under subsection 
                (a) for reasons beyond the control of the owner or 
                operator of the permitted facility;
                  (ii) the owner or operator of the permitted facility 
                certifies in writing to the Secretary that it will ship 
                the mercury to the designated facility when the 
                Secretary is able to accept the mercury; and
                  (iii) the owner or operator of the permitted facility 
                certifies in writing to the Secretary that it will not 
                sell, or otherwise place into commerce, the mercury.
        This subparagraph shall not apply to mercury with respect to 
        which the owner or operator of the permitted facility fails to 
        comply with a certification provided under clause (ii) or 
        (iii).
  (h) Study.--Not later than July 1, 2011, the Secretary shall transmit 
to the Congress the results of a study, conducted in consultation with 
the Administrator of the Environmental Protection Agency, that--
          (1) determines the impact of the long-term storage program 
        under this section on mercury recycling; and
          (2) includes proposals, if necessary, to mitigate any 
        negative impact identified under paragraph (1).

SEC. 6. REPORT TO CONGRESS.

  At least 3 years after the effective date of the prohibition on 
export of elemental mercury under section 12(c) of the Toxic Substances 
Control Act (15 U.S.C. 2611(c)), as added by section 4 of this Act, but 
not later than January 1, 2014, the Administrator of the Environmental 
Protection Agency shall transmit to the Committee on Energy and 
Commerce of the House of Representatives and the Committee on 
Environment and Public Works of the Senate a report on the global 
supply and trade of elemental mercury, including but not limited to the 
amount of elemental mercury traded globally that originates from 
primary mining, where such primary mining is conducted, and whether 
additional primary mining has occurred as a consequence of this Act.

  Amend the title so as to read:

      A bill to prohibit certain sales, distributions, and 
transfers of elemental mercury, to prohibit the export of 
elemental mercury, and for other purposes.

                          Purpose and Summary

    The purpose of H.R.1534, the Mercury Export Ban Act of 
2007, is to prohibit the sale, distribution, and transfer of 
elemental mercury held by Federal agencies (except for its 
transfer between Federal agencies to facilitate storage), as of 
the date of enactment; ban the export of elemental mercury 
beginning in 2010; and provide a long-term management and 
storage option for elemental mercury generated by private 
sources by 2010. The bill also allows the Administrator of the 
Environmental Protection Agency (EPA) to grant an exemption 
from the export prohibition by rule, after notice and 
opportunity for comment, if the Administrator finds that 
certain conditions have been met.
    The Mercury Export Ban Act of 2007 also directs EPA to 
submit a report to Congress one year after enactment regarding 
(1) sources and amounts of mercury compounds used, processed, 
imported into the United States, and exported from the United 
States and (2) the potential for exported mercury compounds to 
be processed into elemental mercury. The EPA is also required 
to report by 2013 on the global supply and trade of elemental 
mercury, including the amount that originates from primary 
mining and whether additional primary mining has occurred as a 
consequence of this Act.
    The Mercury Export Ban Act of 2007 directs the Secretary of 
Energy (Secretary) to report annually on the costs incurred in 
the previous fiscal year associated with the long-term 
management and storage of elemental mercury. The Secretary is 
also required to report by July 1, 2011, on the affect of the 
long-term storage program on mercury recycling, including any 
necessary proposals to mitigate negative impacts of the long-
term storage program.

                  Background and Need for Legislation

    Mercury is a neurotoxin that is harmful even at low 
exposure levels. Children and developing fetuses are especially 
at risk if exposed. An increase in awareness about exposure 
risks, coupled with the development of effective mercury 
substitutes in manufacturing and for products, has led to 
decreased use in the United States. Between 1980 and 2001, 
annual mercury use in the United States fell from 2,225 to 271 
metric tons. According to EPA, however, exports of elemental 
mercury to the global market in 2006 were the highest they have 
been in the past five years (390 metric tons gross and 296 
metric tons net).
    Mercury exists in three basic forms. Elemental mercury is a 
very dense, shiny, silver-colored metal. Elemental mercury is 
the pure form of mercury (i.e., it is not combined with any 
other elements). A second form of mercury is inorganic mercury 
compounds. This form is created when elemental mercury is 
combined with other elements such as oxygen, chlorine, or 
sulfur. Inorganic mercury compounds are used in fungicides, 
disinfectant agents, and antiseptics. The third basic form is 
organic mercury compounds. These compounds are combinations of 
mercury and carbon. The most common organic mercury compound is 
methylmercury.
    The Centers for Disease Control and Prevention and the 
Agency for Toxic Substances and Disease Registry have 
determined that all forms of mercury have adverse health 
effects. The nature and severity of the health effects will 
depend on the type of mercury involved, as well as the level 
and length of exposure. For example, elemental mercury and 
methylmercury vapors are more harmful than other forms because 
more mercury reaches the brain. Prolonged exposure to high 
levels of elemental, inorganic, or organic mercury can 
permanently damage the brain, kidneys, and the developing 
fetus. Short-term exposures to high levels of elemental mercury 
vapors can cause lung damage, nausea, vomiting, diarrhea, 
increases in blood pressure or heart rate, skin rashes, and eye 
irritation. Very young children are more sensitive to mercury 
than adults, and the nervous system is especially sensitive. 
Mercury in the mother's body passes to the fetus and may 
accumulate there.
    Surplus elemental mercury from the United States is sold to 
metals recyclers and brokers who offer the mercury to buyers on 
the global market. Through this market, much of the surplus 
elemental mercury from the United States and other 
industrialized nations ends up in developing countries. Often 
it is sold to artisanal and small-scale gold miners located 
primarily in Africa, Asia, and South America. These miners, and 
their family members, are usually unaware of the dangers of 
mercury exposure, and are unprepared to handle the material 
safely.
    According to the United Nations Industrial Development 
Organization (UNIDO), 10 to 15 million people are now engaged 
in artisanal and small-scale gold mining, including 4.5 million 
women and 1 million children. In addition to the occupational 
hazards associated with the use of elemental mercury by these 
small-scale miners, thousands of polluted sites have been 
created in developing countries. It is estimated that each 
year, artisanal and small-scale mining operations volatize as 
much as 300 metric tons of mercury into the Earth's atmosphere, 
and discharge as much as 700 metric tons of mercury from mine 
tailings into soil, rivers, and lakes.
    The effect of mercury emissions and discharges from 
artisanal and small-scale gold mining is not localized. Mercury 
emissions are transported over long distances and can remain in 
the atmosphere for a year or more before falling to Earth. Once 
deposited, the methylated mercury contaminates water bodies and 
land, and enters the food chain. Deposition modeling conducted 
by EPA and other research organizations indicates that 60 
percent to 80 percent of all mercury deposited in the United 
States comes from global sources.
    The most common route of mercury exposure in the United 
States is through consumption of mercury-contaminated fish. 
EPA's most recent National Listing of Fish Advisories (July 
2007) shows that 48 States, one Territory, and two Tribes have 
issued mercury fish advisories. In 2006, these advisories 
covered more than 14 million lake acres and almost 890,000 
river miles. Twenty-three States have issued statewide 
advisories for lakes and/or rivers, and 12 States have 
statewide advisories for their coastal waters.
    According to EPA's list, the total number of fish 
advisories for mercury was 2,436 in 2004, 2,682 in 2005, and 
3,080 in 2006. The increase in the number of mercury advisories 
in 2005 and 2006 can be attributed to the issuance of new 
mercury advisories by 25 States, and American Samoa. Most of 
the new mercury advisories issued in 2005 and 2006 were in 
Wisconsin (293), Michigan (46), New York (36), and Minnesota 
(32). In 2005, American Samoa, Kansas, Oklahoma, and Utah 
issued mercury advisories for the first time. Iowa issued its 
first mercury advisories in 2006.
    Currently, 23 States (Connecticut, Florida, Illinois, 
Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, 
Minnesota, Missouri, Montana, New Hampshire, New Jersey, North 
Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, Vermont, 
Washington, Wisconsin, and West Virginia) have issued statewide 
advisories for mercury in freshwater lakes and/or rivers. 
Twelve States (Alabama, Florida, Georgia, Louisiana, Maine, 
Massachusetts, Mississippi, New Hampshire, North Carolina, 
Rhode Island, South Carolina, and Texas) have issued statewide 
advisories for mercury in their coastal waters. Hawaii has a 
statewide advisory for mercury in marine fish.
    The Federal Government's supply of surplus elemental 
mercury is currently stored in government stockpiles maintained 
by the Department of Defense (4,436 metric tons) and the 
Department of Energy (1,206 metric tons). The Committee 
received testimony and information from officials of the 
Department of Energy that storage of elemental mercury began at 
its facility in Oak Ridge, Tennessee in 1963 and that there is 
no history of a flask that has leaked. Further, the current 
storage facility is a building constructed to be 
environmentally protective, with a sealed, concrete floor with 
a leak-proof coating, a 6-8 inch dike around the outer edge of 
the building to contain any material in the event of a spill, 
and an automatic dry-pipe (water supply) fire suppression 
system. The Department of Defense informed the Committee that 
the elemental mercury in the National Defense Stockpile has 
been safely stored for more than 50 years.
    In the past, surplus elemental mercury from these 
government stockpiles was sold for domestic uses or for export. 
Based on environmental concerns, the Department of Defense 
stopped selling surplus mercury in 1994, and the Department of 
Energy announced in 2006 it would no longer market any of its 
mercury. Consistent with these departmental policies, the 
Mercury Export Ban Act of 2007 would ensure that the Federal 
Government's elemental mercury remains in storage by 
prohibiting the sale, distribution, and transfer of elemental 
mercury held by Federal agencies, as of the date of enactment. 
Transfer of elemental mercury between Federal agencies would 
continue to be allowed for the sole purpose of facilitating 
storage of elemental mercury to carry out this Act.
    The largest non-governmental reserves of elemental mercury 
are currently held by the chlor-alkali industry. The elemental 
mercury is contained in plants that continue to use mercury-
cell technology for the production of chlorine, caustic soda, 
and other chemicals. At one time, there were a number of these 
plants in the United States, but with the advent of mercury-
free alternative technologies, many companies have closed or 
converted their plants. Today, 90 percent of United States 
chlorine production is done without using elemental mercury. 
According to the Chlorine Institute, Inc., by 2010 only four 
mercury-cell chlor-alkali plants will remain in operation. The 
plants are owned by three companies and are located in four 
States (Georgia, Ohio, Tennessee, and West Virginia). The 
Chlorine Institute, Inc. estimates that if these four plants 
were to convert their processes or close, collectively they 
would generate approximately 1,000 metric tons of elemental 
mercury.
    Other non-governmental sources of elemental mercury include 
the mining industry and mercury recycling and recovery 
operations. There are no mercury mines in the United States. 
Elemental mercury is, however, generated as a by-product of 
gold mining, primarily conducted in Nevada. EPA estimates that 
approximately 118 metric tons of elemental mercury was 
generated as a by-product of gold mining in 2006. Elemental 
mercury is also generated through recycling programs and by 
companies that collect old thermometers, fluorescent light 
bulbs, auto switches, electronics, and other consumer products. 
EPA estimates that recycling and waste recovery produced at 
least 50 to 80 metric tons in 2006.
    H.R. 1534 has precedent internationally. The European 
Union's legislative body, the European Parliament, voted in 
June of 2007 to prohibit the export of elemental mercury and 
mercury compounds by 2010. The European Parliament also adopted 
a safe storage requirement for holders of excess elemental 
mercury. The Environmental Ministers for the member nations of 
the European Union have proposed that the mercury export 
prohibition take effect in 2011.

                                Hearings

    The Subcommittee on Environment and Hazardous Materials 
held a hearing on H.R. 1534, the Mercury Export Ban Act of 
2007, on Friday, June 22, 2007. The Subcommittee received 
testimony from: Ms. Alice Williams, Deputy Associate 
Administrator for Infrastructure and Environment, National 
Nuclear Security Administration, U.S. Department of Energy; Mr. 
Cornel Holder, Administrator, Defense National Stockpile 
Center, Defense Logistics Agency, U.S. Department of Defense; 
the Honorable James Gulliford, Assistant Administrator, Office 
of Prevention, Pesticides and Toxic Substances, U.S. 
Environmental Protection Agency; Linda Greer, Ph.D., Senior 
Scientist, National Resources Defense Council; Michael Shannon, 
MD, MPH, FAAP, on behalf of the American Association of 
Pediatrics; Mr. C. Mark Smith, Ph.D., Acting Commissioner, 
Massachusetts Department of Environmental Protection on behalf 
of the Environmental Council of States; Mr. Arthur Dungan, 
President, the Chlorine Institute, Inc.; and Mr. Bruce 
Lawrence, President, Bethlehem Apparatus Company, Inc.

                        Committee Consideration

    On Thursday, August 2, 2007, the Subcommittee on 
Environment and Hazardous Materials met in open markup session 
and favorably forwarded H.R. 1534, amended, to the full 
Committee for consideration, by a voice vote. On Tuesday, 
October 30, 2007, the full Committee met in open markup session 
and ordered H.R. 1534 favorably reported to the House, amended, 
by a recorded 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. A 
motion by Mr. Allen to order H.R. 1534 favorably reported to 
the House, amended, was agreed to by a recorded vote of 45 yeas 
and 2 nays. The following is the recorded vote taken on the 
motion, including the names of those Members voting for and 
against.


                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Subcommittee on Environment and 
Hazardous Materials held a legislative hearing on H.R. 1534, 
and the oversight findings of the Committee are reflected in 
this report.

         Statement of General Performance Goals and Objectives

    The purpose of H.R. 1534 is to prohibit the sale, 
distribution, or transfer of elemental mercury by Federal 
agencies, except for its transfer between Federal agencies in 
order to facilitate storage; to prohibit the export of 
elemental mercury beginning in 2010 to reduce global mercury 
pollution; and to provide a long-term management and storage 
option for elemental mercury generated by private sources, at a 
facility to be designated by the Secretary of Energy, by 2010.

   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 adopts as its 
own the estimate of budget authority and revenues regarding 
H.R.1534 prepared by the Director of the Congressional Budget 
Office pursuant to section 402 of the Congressional Budget Act 
of 1974. The Committee finds that H.R.1534 would result in no 
new or increased entitlement authority or tax expenditures.

                  Earmarks and Tax and Tariff Benefits

    Regarding compliance with clause 9 of rule XXI of the Rules 
of the House of Representatives, H.R. 1534 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate on H.R. 
1534 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 on 
H.R. 1534 provided by the Congressional Budget Office pursuant 
to section 402 of the Congressional Budget Act of 1974:

                                                  November 9, 2007.
Hon. John D. Dingell,
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. 1534, the Mercury 
Export Ban Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Kathleen 
Gramp.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

H.R. 1534--Mercury Export Ban Act of 2007

    Summary: H.R. 1534 would ban the export of elemental 
mercury, prohibit federal agencies from selling or distributing 
mercury, and direct the Department of Energy (DOE) to provide 
permanent storage for domestic stocks of mercury under certain 
conditions. Under this bill, firms would be allowed to begin 
delivering mercury to DOE on January 1, 2010, and would be 
required to pay a one-time fee sufficient to cover most of the 
department's long-term costs of storing it. DOE would indemnify 
those entities from legal actions resulting from any actual or 
threatened release of mercury occurring after the materials are 
delivered to the federal facility. In addition, DOE's mercury 
storage operations would have to comply with various 
performance standards, including the Solid Waste Disposal Act. 
Finally, the bill would direct DOE and the Environmental 
Protection Agency (EPA) to prepare reports on issues related to 
the storage of domestic mercury and the disposition of global 
supplies.
    Implementing this bill would affect both discretionary 
spending and direct spending. Assuming appropriation of the 
necessary amounts, CBO estimates that DOE would spend $8 
million over the 2008-2012 period and additional amounts 
thereafter to provide for the permanent storage of commercially 
generated mercury. CBO also estimates that enacting this bill 
would reduce net direct spending by $8 million over the 2008-
2017 period by increasing offsetting receipts (an offset to 
direct spending) from the one-time fee that would be paid by 
firms transferring mercury to DOE. Enacting this legislation 
would not affect revenues.
    H.R. 1534 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would not affect 
the budgets of state, local, or tribal governments.
    H.R. 1534 would impose a private-sector mandate as defined 
in UMRA. It would prohibit the export of elemental mercury from 
the United States beginning in 2010. Based on information from 
the U.S. Geological Survey, CBO estimates that the cost of that 
mandate would fall below the annual threshold established in 
UMRA ($131 million in 2007, adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1534 is shown in the following table. 
The costs of this legislation fall within budget functions 270 
(energy) and 300 (natural resources and environment).

------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2008    2009    2010    2011    2012
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...       0       2       2       3       2
Estimated Outlays...............       0       1       2       3       2

                      CHANGES IN DIRECT SPENDING\1\

Estimated Budget Authority......       0       0       *      -2      -2
Estimated Outlays...............       0       0       *      -2     -2
------------------------------------------------------------------------
\1\CBO estimates that enacting this bill would result in a net increase
  in offsetting receipts of $8 million over the 2008-2017 period.
Note: * = between zero and -$500,000.

    Basis of estimate: For this estimate, CBO assumes that the 
amounts necessary to implement the bill will be appropriated 
each year. Estimated outlays reflect historical spending 
patterns for similar activities.
    H.R. 1534 would require DOE to take custody of commercial 
stocks of domestic mercury, subject to certain conditions. 
According to reports from EPA-sponsored stakeholders' meetings 
held in 2007, the cumulative volume of mercury eligible for DOE 
storage would probably range between 7,500 metric tons and 
10,000 metric tons. The amounts likely to be delivered over the 
next several years are difficult to predict because they will 
depend on investment decisions made by individual firms. Based 
on information in those reports, CBO expects that the demand 
for permanent storage would total about 1,700 metric tons over 
the next 10 years.
    For this estimate, CBO assumes that DOE could store an 
additional 1,200 metric tons of mercury in its existing mercury 
storage building in Oak Ridge, Tennessee, but would have to 
build or renovate additional facilities to accommodate the 
remainder. Thus, we expect that DOE would have to begin 
developing new capacity within the next five years and would 
start receiving materials at the new facility sometime after 
2012. Any fees collected for mercury delivered to DOE's 
existing storage facility would be deposited in the Treasury as 
offsetting receipts, which would reduce direct spending. (By 
contrast, fees paid for materials delivered to a new or 
renovated facility would be contingent on appropriation 
actions, and thus, are not attributable to H.R. 1534.)

Spending subject to appropriation

    Based on information from DOE, EPA, and the stakeholders' 
meetings, CBO estimates that implementing this bill would 
require the appropriation of about $9 million over the 2008-
2012 period and additional sums over the life of the mercury 
storage operation. CBO expects that DOE would have to spend 
about $2 million to develop guidelines, reports, and analyses 
required by the bill; another $2 million for building upgrades, 
training, and staff needed to store the commercial mercury in a 
manner consistent with the environmental and safety standards 
in the bill; and roughly $5 million to plan and develop new 
storage capacity. In addition, CBO estimates that EPA would 
spend less than $500,000 a year to develop the guidelines and 
reports required by the bill. Estimated spending for DOE and 
EPA activities would total $8 million over the next five years.
    DOE's costs could exceed the amounts included in this 
estimate if state or federal regulatory agencies determined 
that other upgrades to its Oak Ridge facility were needed to 
comply with the new performance standards. For example, 
replacing the department's 40-year-old mercury storage flasks 
would cost about $21 million according to DOE. Whether such 
costs would be imposed is unknown, and such potential costs are 
not included in this estimate.

Direct spending

    H.R. 1534 would affect direct spending in two ways. First, 
any fees collected for mercury delivered to the existing 
storage facility at Oak Ridge would increase offsetting 
receipts (a credit against direct spending). Second, the 
provisions requiring DOE to indemnify those firms from certain 
environmental actions could result in a net cost to the 
government if the fees do not fully cover DOE's liabilities 
under this legislation.
    Proceeds from the one-time storage fees would depend on how 
much DOE would charge. H.R. 1534 would direct the department to 
set fees sufficient to cover the long-term costs of permanently 
storing the commercial stocks of mercury, excluding regulatory 
compliance and land acquisition expenses. The legislation does 
not limit the time for cost recovery (storage of this toxic 
element would continue indefinitely), or allow for any other 
adjustments to the cost calculation. CBO expects that the fees 
necessary to cover the cost of permanent storage would likely 
exceed the amount that industry would be willing to pay. For 
this estimate, however, CBO assumes that DOE would accept 
custody of the mercury that could be stored at its Oak Ridge 
facility and would set the fee at about $3 per pound (or $6,600 
per metric ton), which is at the high end of the range shown in 
reports from the stakeholders' meetings but less than a fee 
that would be needed to fully offset the agency's costs. At 
that level, we estimate that the fee would generate offsetting 
receipts of $8 million over the 2010-2017 period.
    Based on guidelines issued by EPA and the Office of 
Management and Budget, CBO assumes that DOE would set fees 
sufficient to compensate the government for the environmental 
liabilities associated with storing commercial mercury. Thus, 
CBO estimates that the government's indemnification of owners 
of mercury from environmental liability under this bill would 
have no net impact on direct spending over the 2008-2017 
period.
    Estimated impact on state, local, and tribal governments: 
H.R. 1534 contains no intergovernmental mandates as defined in 
UMRA and would not affect the budgets of state, local, or 
tribal governments.
    Estimated impact on the private sector: H.R. 1534 would 
impose a private-sector mandate as defined in UMRA. It would 
prohibit, with some exceptions, the export of elemental mercury 
from the United States beginning in 2010. The cost of the 
mandate to the private sector would be the loss of net income 
to entities currently involved in exporting mercury and, in 
some cases, the cost to those exporters of storing the mercury 
that cannot otherwise be sold. Information from the U.S. 
Geological Survey indicates that the value of mercury exports 
was less than $10 million in 2006.
    Further, CBO expects that the cost of storage would not be 
substantial. Consequently, CBO estimates that the cost of the 
mandate would fall below the annual threshold established in 
UMRA ($131 million in 2007, adjusted annually for inflation).
    Estimate prepared by: Federal Costs: Kathleen Gramp (DOE 
costs) and Susanne Mehlman (EPA costs), Impact on State, Local, 
and Tribal Governments: Neil Hood, Impact on the Private 
Sector: Amy Petz.
    Estimate approved by: Peter H. Fontaine, Assistant Director 
for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates regarding H.R. 1534 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, and in the provisions of 
Article I, section 8, clause 1, that relate to expending funds 
to provide for the general welfare of the United States.

                  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 of 1995.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 establishes the short title of the Act as the 
``Mercury Export Ban Act of 2007''.

Section 2. Findings

    This section contains findings related to mercury 
pollution, health effects attributed to mercury, and global use 
of elemental mercury.

Section 3. Prohibition on sale, distribution, or transfer of elemental 
        mercury

    Section 3 establishes a new subsection (f) to Section 6 of 
the Toxic Substances Control Act, 15 U.S.C. Sec. 2601 et seq. 
(1976). This new subsection would, beginning on the date of 
enactment, prohibit the sale, distribution, or transfer of 
elemental mercury by any Federal agency to any other Federal 
agency, any State or local Government agency, or any private 
individual or entity. This prohibition does not apply to the 
transfer of elemental mercury between Federal agencies for the 
sole purpose of storage.

Section 4. Prohibition on export of elemental mercury

    Section 4 establishes a new subsection (c) to Section 12 of 
the Toxic Substances Control Act. This new subsection would 
prohibit the export of elemental mercury from the United States 
beginning January 1, 2010. The export ban does not affect the 
sale, recovery, or other use of mercury in the United States. 
Further, the Committee does not intend that this prohibition 
prevent exportation of fly ash, a by-product of coal 
combustion, or manufactured consumer products containing 
elemental mercury.
    New subsection (c)(3) requires the EPA to submit a report 
to Congress one year after enactment addressing:
          (i) the sources and amounts of mercury compounds that 
        may be used in significant quantities in products and 
        processes produced annually in the United States or 
        imported into the United States;
          (ii) the purposes for which each of these compounds 
        are used domestically and the amount of these compounds 
        consumed annually;
          (iii) the sources and amounts of each mercury 
        compound exported from the United States annually in 
        each of the last three years;
          (iv) the potential for these compounds to be 
        processed into elemental mercury after export from the 
        United States; and
          (v) other information that Congress should consider 
        in determining whether to extend export prohibition to 
        include one or more of these mercury compounds.
    The Administrator may utilize the information gathering 
authorities of the Toxic Substances Control Act for the purpose 
of preparing the report.
    New subsection (c)(4) allows any person residing in the 
United States to petition the Administrator for an exemption 
from the prohibition on export of elemental mercury. The 
Administrator may grant by rule, after notice and opportunity 
for comment, an exemption for a specified use at an identified 
foreign facility if each of the following findings is 
satisfied:
          (i) non-mercury alternatives for the specified use 
        are not available in the country where the facility is 
        located;
          (ii) there is no other source of elemental mercury 
        available from domestic supplies (not including new 
        mercury mines) in the country where the elemental 
        mercury will be used;
          (iii) the country where the elemental mercury will be 
        used certifies its support for the exemption;
          (iv) the export will be conducted in such a manner as 
        to ensure the elemental mercury will be used at the 
        identified facility and not otherwise diverted for 
        other uses for any reason;
          (v) the elemental mercury will be handled and managed 
        in a manner that will protect human health and the 
        environment, taking into account local, regional, and 
        global human health and environmental effects; and
          (vi) the export of elemental mercury for the 
        specified use is consistent with international 
        obligations of the United States intended to reduce 
        global mercury supply, use, and pollution.
    The Administrator must also include in the exemption such 
terms and conditions as are necessary to minimize the export of 
elemental mercury and ensure that the conditions for granting 
the exemption will be fully met. No single exemption can exceed 
3 years in duration and 10 metric tons of elemental mercury.
    The Administrator may by order suspend or cancel an 
exemption in the case of a violation of the subsection, a 
violation of the terms and conditions of an exemption, or the 
submission of false information. Violations of the statutory 
requirements or the terms and conditions of an exemption, or 
the submission of false information in connection therewith are 
a prohibited act under Section 15 of the Toxic Substances 
Control Act. Such violations shall be subject to penalties, 
injunctive relief, and citizen suits as provided in the Toxic 
Substances Control Act.
    In new subsection (c)(5) ``prior'' law refers to any law in 
existence before the enactment of this Act. It is the intent of 
the Committee to not affect, replace, or amend existing law 
relating to the need for consistency with international trade 
obligations.
    New subsection (c)(6) provides that nothing in the 
subsection shall be construed to prohibit the export of coal.

Section 5. Long-term storage

    Section 5(a) requires the Secretary of Energy not later 
than January 1, 2010, to accept custody, for the purpose of 
long-term management and storage, of elemental mercury 
generated within the United States and delivered to a facility 
of the Department of Energy designated by the Secretary. The 
Committee purposely did not designate any particular facility 
of the Department of Energy but left that choice in the 
discretion of the Secretary.
    Subsection (b)(1) requires the Secretary, after appropriate 
consultation with interested parties, to assess and collect a 
fee at the time of delivery to cover the pro rata cost of long-
term management and storage of elemental mercury delivered to 
the facility. The amount of the fees is to be made publicly 
available not later than October 1, 2009, and may be adjusted 
annually.
    Subsection (b)(2) provides that the costs covered by the 
fee are the costs to the Department of Energy of providing 
management and storage for the elemental mercury delivered to 
the facility, including facility operation and maintenance, 
security, monitoring, reporting, personnel, administration, 
inspections, training, fire suppression, closure, and other 
costs required for compliance with applicable law. Such costs 
shall not include costs associated with land acquisition or 
permitting of a designated facility under the Solid Waste 
Disposal Act, 42 U.S.C. Sec. 6901 et seq. (1976), or other 
applicable law. Building design and building construction costs 
shall only be included to the extent that the Secretary finds 
that the management and storage of elemental mercury, accepted 
under the program created by this section, cannot be 
accomplished without construction of a new building or 
buildings.
    Subsection (c) requires the Secretary to report annually to 
the appropriate Committees of jurisdiction on all of the costs 
incurred in the previous fiscal year associated with the long-
term management and storage of elemental mercury, including a 
separate accounting of the costs associated with activities 
taken under this section.
    Subsection (d) requires the Secretary not later than 
October 1, 2009, after consultation with EPA and all 
appropriate State agencies in affected States, to make guidance 
available to potential users of the program setting forth 
procedures and standards for the receipt, management, and long-
term storage of elemental mercury at a designated facility or 
facilities. The procedures must be protective of human health 
and the environment and shall ensure that the elemental mercury 
is stored in a safe, secure, and effective manner. 
Additionally, the elemental mercury managed and stored at a 
designated facility shall be subject to the requirements of the 
Solid Waste Disposal Act. The only exception is set forth in 
subsection (g)(2) which provides that the elemental mercury the 
Secretary is storing on a long-term basis shall not be subject 
to the storage prohibition of section 3004(j) of the Solid 
Waste Disposal Act.
    Subsection (d)(1) further provides that a designated 
facility in existence on or before January 1, 2010, is 
authorized to operate under interim status pursuant to section 
3005 (e) of the Solid Waste Disposal Act until a final decision 
on a permit application is made pursuant to Section 3005(c) of 
the Solid Waste Disposal Act. The Administrator of EPA (or an 
authorized State) is required to issue a final decision on the 
permit application not later than January 1, 2012.
    Subsections (d)(2), (3), and (4), provide for the conduct 
of operational and emergency training, assurance that the 
designated facility will have necessary equipment, and the 
installation of fire detection systems and fire suppression 
systems, respectively.
    Subsection (e) provides indemnification for persons 
delivering elemental mercury for a claim that results from, or 
is in a manner predicated upon, the release or threatened 
release of elemental mercury as a result of acts or omissions 
occurring after such mercury is delivered to a designated 
facility. Indemnification is not applicable to a person who has 
contributed to any such release or threatened release.
    Subsection (e)(2) provides that no indemnification may be 
afforded unless the person seeking indemnification follows 
certain procedures and provides relevant information concerning 
the claim, loss, or damage. Subsection (e)(3) gives the 
Secretary the authority to settle or defend the claim for 
personal injury or property damage in any case in which the 
Secretary determines that the Department of Energy may be 
required to make indemnification payments to a person under 
this subsection.
    Subsection (f) authorizes the Secretary to establish such 
terms, conditions, and procedures as are necessary to carry out 
this section.
    Subsection (g)(1) provides that except as provided in 
paragraph (2), nothing in this section changes or affects any 
Federal, State, or local law or the obligation of any person to 
comply with such law. Paragraph (2) allows a generator 
accumulating elemental mercury destined for a facility 
designated by the Secretary to store mercury for a period of 90 
days or less. Further, paragraph (2) provides authority to 
store elemental mercury at a facility that has been issued a 
permit under section 3005(c) of the Solid Waste Disposal Act, 
notwithstanding section 3004(j) of that Act, if the Secretary 
is unable to accept mercury at a facility designated by the 
Secretary for reasons beyond the control of the owner or 
operator of the permitted facility. The owner or operator of 
the permitted facility must also make certain certifications 
set forth in subsection (g)(2)(B) (ii) and (iii) and comply 
with them to benefit from this provision.
    Subsection (h) requires the Secretary, in consultation with 
Administrator of EPA, to report to Congress by July 1, 2011, on 
the effect of the long-term storage program on mercury 
recycling and include proposals, if necessary, to mitigate any 
negative effect.

Section 6. Report to Congress

    This section requires the EPA Administrator to report by 
January 1, 2014, on the global supply and trade of elemental 
mercury and whether additional primary mining has occurred as a 
consequence of this Act.

         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):

TOXIC SUBSTANCES CONTROL ACT

           *       *       *       *       *       *       *


TITLE I--CONTROL OF TOXIC SUBSTANCES

           *       *       *       *       *       *       *


SEC. 6. REGULATION OF HAZARDOUS CHEMICAL SUBSTANCES AND MIXTURES.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Mercury.--
          (1) Prohibition on sale, distribution, or transfer of 
        elemental mercury by federal agencies.--Except as 
        provided in paragraph (2), effective beginning on the 
        date of enactment of this subsection, no Federal agency 
        shall convey, sell, or distribute to any other Federal 
        agency, any State or local government agency, or any 
        private individual or entity any elemental mercury 
        under the control or jurisdiction of the Federal 
        agency.
          (2) Exception.--Paragraph (1) shall not apply to a 
        transfer between Federal agencies of elemental mercury 
        for the sole purpose of facilitating storage of mercury 
        to carry out this Act.

           *       *       *       *       *       *       *


SEC. 12. EXPORTS.

  (a) In General.--(1) Except as provided in paragraph (2) and 
[subsection (b)] subsections (b) and (c), this Act (other than 
section 8) shall not apply to any chemical substance, mixture, 
or to an article containing a chemical substance or mixture, 
if--
          (A) * * *

           *       *       *       *       *       *       *

  (c) Prohibition on Export of Elemental Mercury.--
          (1) Prohibition.--Effective January 1, 2010, the 
        export of elemental mercury from the United States is 
        prohibited.
          (2) Inapplicability of subsection (a).--Subsection 
        (a) shall not apply to this subsection.
          (3) Report to congress on mercury compounds.--
                  (A) Report.--Not later than one year after 
                the date of enactment of the Mercury Export Ban 
                Act of 2007, the Administrator shall publish 
                and submit to Congress a report on mercuric 
                chloride, mercurous chloride or calomel, 
                mercuric oxide, and other mercury compounds, if 
                any, that may currently be used in significant 
                quantities in products or processes. Such 
                report shall include an analysis of--
                          (i) the sources and amounts of each 
                        of the mercury compounds imported into 
                        the United States or manufactured in 
                        the United States annually;
                          (ii) the purposes for which each of 
                        these compounds are used domestically, 
                        the amount of these compounds currently 
                        consumed annually for each purpose, and 
                        the estimated amounts to be consumed 
                        for each purpose in 2010 and beyond;
                          (iii) the sources and amounts of each 
                        mercury compound exported from the 
                        United States annually in each of the 
                        last three years;
                          (iv) the potential for these 
                        compounds to be processed into 
                        elemental mercury after export from the 
                        United States; and
                          (v) other relevant information that 
                        Congress should consider in determining 
                        whether to extend the export 
                        prohibition to include one or more of 
                        these mercury compounds.
                  (B) Procedure.--For the purpose of preparing 
                the report under this paragraph, the 
                Administrator may utilize the information 
                gathering authorities of this title, including 
                sections 10 and 11.
          (4) Essential use exemption.--(A) Any person residing 
        in the United States may petition the Administrator for 
        an exemption from the prohibition in paragraph (1), and 
        the Administrator may grant by rule, after notice and 
        opportunity for comment, an exemption for a specified 
        use at an identified foreign facility if the 
        Administrator finds that--
                  (i) nonmercury alternatives for the specified 
                use are not available in the country where the 
                facility is located;
                  (ii) there is no other source of elemental 
                mercury available from domestic supplies (not 
                including new mercury mines) in the country 
                where the elemental mercury will be used;
                  (iii) the country where the elemental mercury 
                will be used certifies its support for the 
                exemption;
                  (iv) the export will be conducted in such a 
                manner as to ensure the elemental mercury will 
                be used at the identified facility as described 
                in the petition, and not otherwise diverted for 
                other uses for any reason;
                  (v) the elemental mercury will be used in a 
                manner that will protect human health and the 
                environment, taking into account local, 
                regional, and global human health and 
                environmental impacts;
                  (vi) the elemental mercury will be handled 
                and managed in a manner that will protect human 
                health and the environment, taking into account 
                local, regional, and global human health and 
                environmental impacts; and
                  (vii) the export of elemental mercury for the 
                specified use is consistent with international 
                obligations of the United States intended to 
                reduce global mercury supply, use, and 
                pollution.
          (B) Each exemption issued by the Administrator 
        pursuant to this paragraph shall contain such terms and 
        conditions as are necessary to minimize the export of 
        elemental mercury and ensure that the conditions for 
        granting the exemption will be fully met, and shall 
        contain such other terms and conditions as the 
        Administrator may prescribe. No exemption granted 
        pursuant to this paragraph shall exceed three years in 
        duration and no such exemption shall exceed 10 metric 
        tons of elemental mercury.
          (C) The Administrator may by order suspend or cancel 
        an exemption under this paragraph in the case of a 
        violation described in subparagraph (D).
          (D) A violation of this subsection or the terms and 
        conditions of an exemption, or the submission of false 
        information in connection therewith, shall be 
        considered a prohibited act under section 15, and shall 
        be subject to penalties under section 16, injunctive 
        relief under section 17, and citizen suits under 
        section 20.
          (5) Consistency with trade obligations.--Nothing in 
        this subsection affects, replaces, or amends prior law 
        relating to the need for consistency with international 
        trade obligations.
          (6) Export of coal.--Nothing in this subsection shall 
        be construed to prohibit the export of coal.

           *       *       *       *       *       *       *


                                  
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