[Senate Report 110-181]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 379
110th Congress                                                   Report
                                 SENATE
 1st Session                                                    110-181

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



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

                                _______
                                

               September 17, 2007.--Ordered to be printed

                                _______
                                

   Mr. Bingaman, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 1126]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 1126) to reauthorize the Steel and 
Aluminum Energy Conservation and Technology Competitiveness Act 
of 1988, having considered the same, reports favorably thereon 
without amendment and recommends that the Act do pass.

                         Purpose of the Measure

    The purpose of H.R. 1126 is to reauthorize the Steel and 
Aluminum Energy Conservation and Technology Competitiveness Act 
of 1988 (Public Law 100-680).

                          Background and Need

    The Steel and Aluminum Energy Conservation and Technology 
Competitiveness Act of 1988 was enacted to help maintain viable 
domestic steel, aluminum, copper, and other metal industries. 
The Act directed the Secretary of Energy to establish an 
industrial energy conservation and competitive technology 
program, known as the Metals Initiative, to increase energy 
efficiency and enhance the competitiveness of American steel, 
aluminum, and copper industries through joint research and 
development partnerships.
    As originally enacted, the Steel and Aluminum Energy 
Conservation and Technology Act of 1988 authorized 
appropriations to carry out the Metals Initiative through 
fiscal year 1991. Section 2106 of the Energy Policy Act of 1992 
authorized additional appropriations through fiscal year 1997. 
Congress has continued to appropriate funds for the Initiative 
each year since then.
    H.R. 1126 is needed to reauthorize appropriations for the 
Metals Initiative for fiscal years 2008 through 2012, to update 
program priorities, and to reinstate the requirement that the 
Secretary submit annual reports on the research and development 
activities carried out under the Act.

                          Legislative History

    H.R. 1126 was introduced in the House of Representatives by 
Representative Lipinski on February 16, 2007 and referred to 
the Committee on Science and Technology. The Committee on 
Science and Technology ordered the bill reported without 
amendment on February 28, 2007 (H. Rept. 110-41). The House 
passed the bill by voice vote on March 12, 2007.
    H.R. 1126 was referred to the Committee on Energy and 
Natural Resources on March 12, 2007. The Subcommittee on Energy 
held a hearing on the bill on May 22, 2007. The Committee 
ordered the bill reported without amendment on July 25, 2007.
    H.R. 1126 is similar to H.R. 1158 in the 109th Congress. 
The House Committee on Science and Technology held an oversight 
hearing on the Metals Initiative on May 20, 2004, and ordered 
H.R. 1158 reported on March 17, 2005 (H. Rept. 109-147). The 
House passed H.R. 1158 on April 26, 2005. H.R. 1158 was 
referred to the Senate Committee on Energy and Natural 
Resources, but no action was taken on it during the 109th 
Congress.

                        Committee Recommendation

    The Committee on Energy and Natural Resources, in open 
business session on July 25, 2007, by a voice vote of a quorum 
present, recommends that the Senate pass H.R. 1126.

                      Section-by-Section Analysis

    Section 1 amends the Steel and Aluminum Energy Conservation 
and Technology Competitiveness Act of 1988 (15 U.S.C. 5101-
5110) in five respects.
    Subsection (a) amends section 9 of the Act (15 U.S.C. 1508) 
to authorize $12 million to be appropriated to the Secretary of 
Energy for the Metals Initiative for each of fiscal years 2008 
through 2012.
    Subsection (b)(1) amends section 4(c)(1) of the Act (15 
U.S.C. 5103(c)(1)), which lists the priority steel projects, to 
eliminate ``coatings for sheet steels'' and add ``sheet and bar 
steels''.
    Subsection (b)(2) amends section 4(c)(1) of the Act to add 
``the development of technologies which reduce greenhouse gas 
emissions'' to the list of steel projects.
    Subsection (c)(1) strikes section 7 of the Act (15 U.S.C. 
5106), which had required the National Institute of Standards 
and Technology to conduct an expanded program of steel and 
aluminum research and development.
    Subsection (c)(2) amends section 8 of the Act (15 U.S.C. 
5107) to reinstate the requirement that the Secretary of Energy 
submit annual reports to the President and Congress on the 
research and development activities carried out under the 
Metals Initiative.

                     Cost and Budget Considerations

    The following estimate of costs of H.R. 1126 has been 
provided by the Congressional Budget Office:

                                                   August 14, 2007.
Hon. Jeff Bingaman,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1126, an act 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 Megan 
Carroll.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

H.R. 1126--An act to reauthorize the Steel and Aluminum Energy 
        Conservation and Technology Competitiveness Act of 1988

    Summary: H.R. 1126 would authorize appropriations totaling 
$60 million over the 2008-2012 period for research and 
development to enhance the energy efficiency of processes to 
manufacture metals, particularly steel and aluminum. Assuming 
appropriation of the specified amounts, CBO estimates that 
implementing the legislation would increase discretionary 
spending by $6 million in 2008 and $54 million over the next 
five years. Enacting H.R. 1126 would not affect direct spending 
or revenues.
    H.R. 1126 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1126 is shown in the following table. 
The costs of this legislation fall within budget function 270 
(energy).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2007     2008     2009     2010     2011     2012
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATlON

Spending Under Current Law for Research on Energy
 Efficiency of Metals Manufacturing:
    Budget Authority\1\...................................        7        0        0        0        0        0
    Estimated Outlays.....................................        6        2        0        0        0        0
Proposed Changes:
    Authorization Level...................................        0       12       12       12       12       12
    Estimated Outlays.....................................        0        6       12       12       12       12
Spending Under H.R, 1126 for Research on Energy Efficiency
 of Metals Manufacturing:
    Authorization Level\1\................................        7       12       12       12       12       12
    Estimated Outlays.....................................        6        8       12       12       12       12
----------------------------------------------------------------------------------------------------------------
\1\The 2007 level is the amount appropriated for that year for programs to improve the energy efficiency of
  metals manufacturing.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
1126 will be enacted near the end of fiscal year 2007 and that 
appropriations will be provided as specified in the 
legislation. H.R. 1126 would reauthorize the Steel and Aluminum 
Energy Conservation and Technology Competitiveness Act of 1988. 
The legislation would authorize the appropriation of $12 
million a year over the 2008-2012 period for research and 
development to enhance the energy efficiency of processes to 
manufacture steel, aluminum, and other metals. It also would 
expand research authorized under the act to include processes 
that make bar steel and technologies to reduce greenhouse gas 
emissions. Based on historical spending patterns for similar 
activities, CBO estimates that fully funding H.R. 1126 would 
increase discretionary spending by $6 million in 2008 and $54 
million over the next five years, assuming appropriation of the 
specified amounts.
    Intergovernmental and private-sector impact: H.R. 1126 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. Funds authorized in the legislation would 
benefit institutions of higher education that participate in 
research programs to improve the energy efficiency of metals. 
Any costs that they might incur, including matching funds, 
would result from complying with conditions of federal 
assistance.
    Previous CBO estimate: On March 2, 2007, CBO transmitted a 
cost estimate for H.R. 1126 as ordered reported by the House 
Committee on Science and Technology on February 28, 2007. The 
two versions of the legislation are similar, and our cost 
estimates are the same.
    Estimate prepared by: Federal Costs: Megan Carroll; Impact 
on State, Local, and Tribal Governments: Neil Hood; Impact on 
the Private Sector: Craig Cammarata and Patrice Gordon.
    Estimate approved by: Peter H. Fontaine, Assistant Director 
for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out H.R. 1126.
    The bill is not a regulatory measure in the sense of 
imposing Government established standards or significant 
economic responsibilities on private individuals and 
businesses.
    The Secretary may need to collect some personal information 
from grant applicants. The Committee expects the Secretary to 
limit the collection of personal information to the minimum 
amount needed to adequately administer the programs, and 
therefore anticipates little impact on personal privacy.
    Enactment of H.R. 1126 will result in the production of 
various applications, reports, and performance assessments 
necessary to the administration of the various programs 
authorized by the bill. Again, the Committee expects the 
Secretary to limit paperwork requirements to the minimum amount 
needed to adequately administer the program.

                        Executive Communications

    At a legislative hearing before the Committee on Energy and 
Natural Resources on May 22, 2007, the Department of Energy 
provided the following testimony with respect to H.R. 1126.

   Statement of David R. Hill, General Counsel, Department of Energy

    Chairman Dorgan, Senator Murkowski, and members of the 
Committee, my name is David Hill and I am the General Counsel 
of the U.S. Department of Energy. I want to thank you for the 
opportunity to appear today and offer preliminary comments on 
five energy-related bills that the Congress is considering. The 
bills before the Committee today each make valuable 
contributions to our national discussion on energy security, 
but in some cases could benefit from further review, discussion 
and modification. The Department looks forward to working with 
the Committee to resolve these issues. I would like to discuss 
the elements of each bill, as well as present some of the DOE 
activities that are already underway in areas addressed by the 
bills.

           *       *       *       *       *       *       *

    H.R. 1126 would reauthorize and modify the Steel and 
Aluminum Energy Conservation and Technology Competitiveness Act 
of 1988. The Department generally supports the change in 
direction to develop technologies which reduce greenhouse gas 
emissions. However, while the bill does reauthorize provisions 
to encourage energy efficiency in these important industries, 
it also maintains an industry-specific focus that the 
Department believes is not the best way to advance industrial 
energy efficiency as a whole. DOE has restructured its 
Industrial Technologies Program to focus on process energy 
efficiency improvements that will bring more cross-cutting 
benefits and with wider application to a broader spectrum of 
manufacturing industries, including steel and aluminum.
    Another concern is the reauthorization of recoupment 
schemes. Although well-intentioned and attractive on the 
surface, they can ultimately serve as a disincentive to 
industry, and have been difficult to execute in practice. 
Although the Department supports continued research and 
development that will contribute to reducing energy costs for 
these industries, the Department also wants to pursue 
initiatives that address newer, high energy growth industries 
and next generation manufacturing technologies.
    Again, thank you for the opportunity to present the 
Department of Energy comments on these bills. The Department 
looks forward to working with the Committee on these bills, and 
on the many other important energy matters facing our Nation. 
This concludes my prepared remarks. I would be happy to answer 
any questions the Committee may have.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill H.R. 1126, as ordered 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

                   Public Law 100-680--Nov. 17, 1988


AN ACT To promote energy conservation and technology competitiveness in 
the American steel and aluminum industries

           *       *       *       *       *       *       *


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

           *       *       *       *       *       *       *


    (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.--

           *       *       *       *       *       *       *

                  (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. 8. REPORTS.

    The Secretary shall prepare and submit annually to the 
President and the Congress at the close of each fiscal year, 
beginning with fiscal year 2008, a complete report of the 
research and development activities carried out under this Act 
during the fiscal year involved, including the actual and 
anticipated obligation of funds, for such activities, together 
with such recommendations as the Secretary may consider 
appropriate for further legislative, administrative, and other 
actions, including actions by the American steel, aluminum, 
copper, and other metals industries, which should be taken in 
order to achieve the purposes of this Act. The report submitted 
at the close of fiscal year 1991 shall also contain a complete 
summary of activities under the management plan and the 
research plan from the first year of their operation, along 
with an analysis of the extent to which they have succeeded in 
accomplishing the purposes of this Act. The reports submitted 
at the close of fiscal years 1993, 1995, and 1997 shall also 
contain a complete summary of activities under the management 
plan and the research plan from the first year of their 
operation, along with an analysis of the extent to which they 
have succeeded in accomplishing the purposes of 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 appropriations 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 $12,000,000 for each of the fiscal years 
2008 through 2012.

           *       *       *       *       *       *       *


                                  
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