[House Report 113-209]
[From the U.S. Government Publishing Office]


113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    113-209

======================================================================
 
  TO AUTHORIZE THE PRESIDENT TO EXTEND THE TERM OF THE AGREEMENT FOR 
COOPERATION BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND 
   THE GOVERNMENT OF THE REPUBLIC OF KOREA CONCERNING CIVIL USES OF 
        NUCLEAR ENERGY FOR A PERIOD NOT TO EXCEED MARCH 19, 2016

                                _______
                                

 September 17, 2013.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Mr. Royce, from the Committee on Foreign Affairs, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2449]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Foreign Affairs, to whom was referred the 
bill (H.R. 2449) to authorize the President to extend the term 
of the Agreement for Cooperation between the Government of the 
United States of America and the Government of the Republic of 
Korea Concerning Civil Uses of Nuclear Energy for a period not 
to exceed March 19, 2016, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                           TABLE OF CONTENTS

                                                                   Page
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Committee Consideration..........................................     3
Committee Oversight Findings.....................................     3
New Budget Authority, Tax Expenditures, and Federal Mandates.....     3
Congressional Budget Office Cost Estimate........................     3
Directed Rule Making.............................................     4
Non-Duplication of Federal Programs..............................     4
General Performance Goals and Objectives.........................     4
Congressional Accountability Act.................................     4
New Advisory Committees..........................................     5
Earmark Identification...........................................     5
Agency Views.....................................................     5

                  Background and Need for Legislation

    A prerequisite for virtually all nuclear cooperation 
between the U.S. and another country, especially commercial 
activity, is a civil nuclear cooperation agreement, as 
specified by the Atomic Energy Act of 1954 (AEA). Also known as 
a ``123 agreement'' after the relevant section of the AEA, 
these agreements must meet the list of requirements specified 
in the Act, which focus on preventing any cooperation from 
knowingly or inadvertently assisting nuclear proliferation.
    The first civil nuclear cooperation agreement between the 
United States and South Korea was concluded in 1972 for a 
period of 30 years. It was subsequently amended in 1974 with a 
new expiration date of March 19, 2014. Since that time, an 
extensive nuclear industry has been established in South Korea, 
which is heavily dependent on U.S.-origin equipment, 
technology, and services.
    Negotiations for a new agreement began in 2010, but 
differences in the two countries' positions have slowed 
progress. The most contentious issue in the negotiations is 
South Korea's position that the text include permission to 
alter U.S.-origin nuclear fuel, a term which can include 
enriching uranium and reprocessing spent nuclear fuel to 
extract plutonium (ENR). This general grant of permission is 
known as ``advance consent'' or ``programmatic approval.'' 
South Korea's interest in obtaining this new provision stems 
from its development of ENR technology termed 
``pyroprocessing.'' In 2011, the U.S. and South Korea began a 
joint 10-year study of the feasibility of this technology.
    Given the lengthy period mandated by the AEA for 
Congressional consideration of civil nuclear cooperation 
agreements subsequent to their having been formally submitted 
by the President, insufficient time remains for the 
finalization of a replacement for the existing agreement prior 
to its expiration. A lapse would prevent U.S. businesses from 
exporting any nuclear-related goods or services to South Korea 
and might also result in significant problems arising in U.S. 
relations with South Korea, a key economic and security ally. 
To avoid this negative scenario, the two countries have agreed 
to extend the existing agreement for two years to enable the 
ongoing negotiations to continue.
    H.R. 2449 authorizes the President to extend the existing 
agreement for two years until March 19, 2016. It makes no other 
change to the existing agreement.

                                Hearings

    On June 27, 2013, the Subcommittee on Asia and the Pacific 
and the Subcommittee on Terrorism, Nonproliferation, and Trade 
held a joint hearing to consider H.R. 2449 and related issues, 
entitled ``Next Steps in the U.S.--Republic of Korea 
Alliance.'' Witnesses included: Mr. James P. Zumwalt, Acting 
Assistant Secretary, Bureau of East Asian and Pacific Affairs, 
U.S. Department of State; and Hon. Thomas M. Countryman, 
Assistant Secretary, Bureau of International Security and 
Nonproliferation, U.S. Department of State.

                        Committee Consideration

    On July 24, 2013, the Foreign Affairs Committee marked up 
the bill H.R. 2449, pursuant to notice, in open session. H.R. 
2449, as introduced, was adopted by voice vote and, by 
unanimous consent, was ordered favorably reported to the House.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of House Rule XIII, the 
Committee reports that the findings and recommendations of the 
Committee, based on oversight activities under clause 2(b)(1) 
of House Rule X, are incorporated in the ``Background and Need 
for Legislation'' section of this report.

      New Budget Authority, Tax Expenditures, and Federal Mandates

    In compliance with clause 3(c)(2) of House Rule XIII and 
the Unfunded Mandates Reform Act (P.L. 104-4), the Committee 
adopts as its own the estimate of new budget authority, 
entitlement authority, tax expenditures or revenues, and 
Federal mandates contained in the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974.

               Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 30, 2013.

Hon. Edward R. Royce, Chairman,
Committee on Foreign Affairs,
House of Representatives, Washington, DC.

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2449, a bill to 
authorize the President to extend the term of the Agreement for 
Cooperation between the Government of the United States of 
America and the Government of the Republic of Korea Concerning 
Civil Uses of Nuclear Energy for a period not to exceed March 
19, 2016.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Raymond J. 
Hall, who can be reached at 226-2840.
            Sincerely,
                                      Douglas W. Elmendorf.
Enclosure

cc:
        Honorable Eliot L. Engel
        Ranking Member
H.R. 2449--A bill to authorize the President to extend the term of the 
        Agreement for Cooperation between the Government of the United 
        States of America and the Government of the Republic of Korea 
        Concerning Civil Uses of Nuclear Energy for a period not to 
        exceed March 19, 2016
    As ordered reported by the House Committee on Foreign 
Affairs on July 24, 2013.

    H.R. 2449 would authorize the President to extend the 
current nuclear cooperation agreement with the Republic of 
Korea for up to two years. That agreement is scheduled to 
expire in March of 2014. Under the Atomic Energy Act of 1954, 
such agreements are required for U.S. companies to be permitted 
to export commercial nuclear materials, technologies, and 
services to foreign nations. Extending the agreement would 
maintain ongoing civil nuclear cooperation with the Republic of 
Korea, and allow joint commercial activities to continue.
    CBO estimates that the issuance of export licenses and 
continued certification and reporting requirements under the 
two-year extension would cost less than $500,000 over the 2014-
2018 period, subject to the availability of appropriated funds. 
Enacting H.R. 2449 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    H.R. 2449 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Raymond J. Hall. 
This estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                          Directed Rule Making

    Pursuant to clause 3(c) of House Rule XIII, as modified by 
section 3(k) of H.Res. 5 during the 113th Congress, the 
Committee notes that H.R. 2449 does not include any directed 
rule makings.

                  Non-Duplication of Federal Programs

    Pursuant to clause 3(c) of House Rule XIII, as modified by 
section 3(j)(2) of H.Res. 5 during the 113th Congress, the 
Committee states that H.R. 2449 does not establish or 
reauthorize a program of the Federal Government known to be 
duplicative of another Federal Program, and does not include 
any program listed in any report from the Government 
Accountability Office pursuant to section 21 of Public Law 111-
139, or any program related to those listed in the most recent 
Catalog of Federal Domestic Assistance.

                General Performance Goals and Objectives

    The goal of H.R. 2449 is to temporarily extend the current 
civil nuclear cooperation agreement between the United States 
and the Republic and Korea for an additional two years, to 
March 19, 2016.

                    Congressional Accountability Act

    H.R. 2449 does not apply to the Legislative Branch.

    

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