[House Report 118-446]
[From the U.S. Government Publishing Office]
118th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 118-446
======================================================================
SETTING CONSUMER STANDARDS FOR LITHIUM-ION BATTERIES ACT
_______
April 5, 2024.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mrs. Rodgers of Washington, from the Committee on Energy and Commerce,
submitted the following
R E P O R T
[To accompany H.R. 1797]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 1797) to require the Consumer Product Safety
Commission to promulgate a consumer product safety standard
with respect to rechargeable lithium-ion batteries used in
micromobility devices, and for other purposes, having
considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Committee Action................................................. 3
Committee Votes.................................................. 3
Oversight Findings and Recommendations........................... 5
New Budget Authority, Entitlement Authority, and Tax Expenditures 5
Congressional Budget Office Estimate............................. 5
Federal Mandates Statement....................................... 14
Statement of General Performance Goals and Objectives............ 14
Duplication of Federal Programs.................................. 14
Related Committee and Subcommittee Hearings...................... 14
Committee Cost Estimate.......................................... 15
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 15
Advisory Committee Statement..................................... 15
Applicability to Legislative Branch.............................. 15
Section-by-Section Analysis of the Legislation................... 15
Changes in Existing Law Made by the Bill, as Reported............ 15
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Setting Consumer Standards for
Lithium-Ion Batteries Act''.
SEC. 2. CONSUMER PRODUCT SAFETY STANDARD FOR CERTAIN BATTERIES.
(a) Consumer Product Safety Standard Required.--
(1) In general.--Not later than 1 year after the date of the
enactment of this Act, the Consumer Product Safety Commission
shall promulgate, under section 553 of title 5, United States
Code, a final consumer product safety standard for rechargeable
lithium-ion batteries used in micromobility devices, including
electric bicycles and electric scooters, to protect against the
risk of fires caused by such batteries.
(2) Inclusion of related equipment.--The standard promulgated
under paragraph (1) shall include requirements with respect to
equipment related to or used with rechargeable lithium-ion
batteries used in micromobility devices, including battery
chargers, charging cables, external terminals on battery packs,
external terminals on micromobility devices, and free-standing
stations used for recharging.
(b) CPSC Determination of Scope.--In promulgating the standard under
subsection (a), the Commission shall determine the types of products
subject to the standard and shall ensure that such products are--
(1) within the jurisdiction of the Commission; and
(2) reasonably necessary to include to protect against the
risk of fires.
(c) Modifications.--At any time after the promulgation of the
standard under subsection (a), the Commission may, through a rulemaking
under section 553 of title 5, United States Code, modify the
requirements of the standard.
(d) Treatment of Standard.--A standard promulgated under this
section, including a modification of such standard, shall be treated as
a consumer product safety rule promulgated under section 9 of the
Consumer Product Safety Act (15 U.S.C. 2058).
PURPOSE AND SUMMARY
H.R. 1797, the ``Setting Consumer Standards for Lithium-Ion
Batteries Act,'' was introduced by Representative Torres on
March 24, 2023, and was referred to the Committee on Energy and
Commerce. H.R. 1797 requires the Consumer Product Safety
Commission (CPSC) to promulgate a consumer product safety
standard to protect consumers from the risk of fires associated
with rechargeable lithium-ion batteries used in micromobility
devices.
BACKGROUND AND NEED FOR LEGISLATION
Lithium-Ion batteries are lightweight, rechargeable
batteries found in many consumer electronics and are often used
in micromobility devices, such as electric bikes and scooters.
When poorly made, lacking adequate safety testing, charged
improperly, or damaged these batteries are prone to ignite and
the associated fires may be accompanied by explosions and the
release of toxic gas.\1\ As micromobility devices have risen in
popularity, the use of lithium-ion batteries has increased,
creating the need for safety standards. Currently, there is no
federal safety standard for Lithium-Ion batteries\2\ and many
uncertified and untested batteries are available for
purchase.\3\
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\1\National Fire Protection Association, Lithium-Ion Battery Safety
(accessed Jan. 4, 2024) (https://www.nfpa.org/education-and-research/
home-fire-safety/lithium-ion-batteries).
\2\Letter from International Association of Fire Fighters, to
Subcommittee on Innovation, Data, and Commerce Chair Gus Bilirakis and
Ranking Member Jan Schakowsky (Sept. 26, 2023).
\3\International Association of Fire Fighters, Preventing Lithium-
Ion Battery Fires, (July 18, 2023) (https://www.iaff.org/news/
preventing-lithium-ion-battery-fires/).
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From 2019 to 2023, the Fire Department of New York reported
more than 400 fires, 300 injuries, and twelve deaths caused by
lithium-ion batteries in New York City alone.\4\ Urban areas
are at increased risk for injuries and property damage due to
high population density, but Lithium-ion battery fires impact
communities across the United States. Consumer advocates and
fire professionals have warned consumers only to use certified
and tested products and called for strong federal safety
standards.\5\
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\4\See Note 2.
\5\ See Note 1.
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COMMITTEE ACTION
On September 27, 2023, the Subcommittee on Innovation,
Data, and Commerce held a hearing on H.R. 1797. The title of
the hearing was ``Proposals to Enhance Product Safety and
Transparency for Americans.'' The Subcommittee received
testimony from:
Kathleen Callahan, Owner, Xpertech Auto
Repair;
Scott Benavidez, Chairman, Automotive
Service Association;
Steven Michael Gentine, Counsel, Arnold &
Porter, LLP;
John Breyault, Vice President of Public
Policy, Telecommunications and Fraud, National
Consumers League; and,
David Touhey, Principal, Connett Consulting,
appearing on behalf of International Association of
Venue Managers.
On November 2, 2023, the Subcommittee on Innovation, Data,
and Commerce met in open markup session and forwarded H.R.
1797, as amended, to the full Committee by a record vote of 20
yeas and 0 nays.
On December 6, 2023, the full Committee on Energy and
Commerce met in open markup session and ordered H.R. 1797,
without amendment, favorably reported to the House by a record
vote of 42 yeas and 0 nays.
COMMITTEE VOTES
Clause 3(b) of rule XIII requires the Committee to list the
record votes on the motion to report legislation and amendments
thereto. The following reflects the record votes taken during
the Committee consideration:
OVERSIGHT FINDINGS AND RECOMMENDATIONS
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee held a hearing and made findings that
are reflected in this report.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 1797 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
Pursuant to clause 3(c)(3) of rule XIII, the following is
the cost estimate provided by the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974:
----------------------------------------------------------------------------------------------------------------
Changes in
Net Increase or Spending Subject
Decrease (-) in to Appropriation
the Deficit Over Over the 2024-
Bill the 2024-2034 2029 Period Mandate Effects?
Period (Millions (Outlays,
of Dollars) Millions of
Dollars)
----------------------------------------------------------------------------------------------------------------
H.R. 133................................ 0 0 No
H.R. 1797............................... 0 6 Yes
H.R. 2365............................... 0 3 No
H.R. 2880............................... -226 0 No
H.R. 3842............................... * 0 No
H.R. 4310............................... 0 2 Yes
H.R. 4881a.............................. 754 0 No
H.R. 5202............................... 0 22 No
H.R. 5371............................... 0 0 No
H.R. 5372............................... -145 0 No
H.R. 5380............................... 15 0 No
H.R. 5385............................... -381 0 No
H.R. 5386............................... * 0 No
H.R. 5388............................... 0 0 No
H.R. 5389............................... 0 0 No
H.R. 5393............................... 6 0 No
H.R. 5396............................... 0 0 No
H.R. 5397............................... -139 0 No
H.R. 5555............................... 145 0 No
H.R. 6132............................... 0 3 Yes
H.R. 6364............................... 0 0 No
----------------------------------------------------------------------------------------------------------------
* = between -$500,000 and $500,000.
a H.R. 4881 would increase on-budget deficits by more than $5 billion in at least one of the four consecutive 10-
year periods beginning in 2035.
Summary: On December 6, 2023, the House Committee on Energy
and Commerce ordered 41 pieces of legislation to be reported.
This document provides estimates for 21 bills in that package
that are related to health care and consumer protection.
Generally, the bills in this group that would affect direct
spending would:
Limit beneficiary cost sharing for certain
prescription drugs and add certain drugs to the group
of products covered by the Medicare home infusion
benefit;
Prohibit pharmacy benefit managers (PBMs)
from collecting certain fees from prescription drug
manufacturers and require PBMs to provide additional
information to Medicare Part D plans (which provide
prescription drug coverage);
Allow Part D plans more flexibility to add
biosimilar biological products to their formularies and
to change the cost-sharing status of reference
biological products;
Temporarily increase Medicare payment rates
for durable medical equipment (DME); and
Provide mandatory funding for implementation
of certain provisions in several bills.
Estimated Federal cost: The costs of the legislation fall
within budget functions 550 (health) and 570 (Medicare).
Basis of estimate: For this estimate, CBO assumes that the
bills will be enacted near the middle of fiscal year 2024 and
that the estimated amounts will be appropriated each year. This
cost estimate does not include any effects of interactions
among the bills. If all 21 bills were combined and enacted as a
single piece of legislation, the effects could be different
from the sum of the separate estimates.
Direct spending: Enacting 10 bills in the group would
affect direct spending over the 2024-2034 period (see Table 1).
TABLE 1.--ESTIMATED EFFECTS ON DIRECT SPENDING OF HEALTH CARE LEGISLATION, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON ENERGY AND COMMERCE ON DECEMBER
6, 2023
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By fiscal year, millions of dollars--
-----------------------------------------------------------------------------------------------------------
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2024-2029 2024-2034
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increases or Decreases (-) in Direct Spending
H.R. 2880:
Budget Authority.......................... 0 0 0 -29 -39 -31 -31 -28 -26 -24 -18 -99 -226
Outlays................................... 0 0 0 -29 -39 -31 -31 -28 -26 -24 -18 -99 -226
H.R. 3842:
Budget Authority.......................... 0 * * * * * * * * * * * *
Outlays................................... 0 * * * * * * * * * * * *
H.R. 4881:
Budget Authority.......................... 0 0 0 0 77 88 100 106 113 134 136 165 754
Outlays................................... 0 0 0 0 77 88 100 106 113 134 136 165 754
H.R. 5372:
Budget Authority.......................... 0 -9 -12 -12 -14 -12 -14 -16 -17 -20 -19 -59 -145
Outlays................................... 0 -9 -12 -12 -14 -12 -14 -16 -17 -20 -19 -59 -145
H.R. 5380:
Budget Authority.......................... 15 0 0 0 0 0 0 0 0 0 0 15 15
Outlays................................... 13 1 1 0 0 0 0 0 0 0 0 15 15
H.R. 5385:
Budget Authority.......................... 55 0 0 -55 -75 -60 -60 -55 -50 -46 -35 -135 -381
Outlays................................... 49 4 2 -55 -75 -60 -60 -55 -50 -46 -35 -135 -381
H.R. 5386:
Budget Authority.......................... 0 0 * * * * * * * * * * *
Outlays................................... 0 0 * * * * * * * * * * *
H.R. 5393:
Budget Authority.......................... 0 6 0 0 0 0 0 0 0 0 0 6 6
Outlays................................... 0 6 0 0 0 0 0 0 0 0 0 6 6
H.R. 5397:
Budget Authority.......................... 0 0 -9 -13 -15 -14 -15 -17 -17 -20 -19 -37 -139
Outlays................................... 0 0 -9 -13 -15 -14 -15 -17 -17 -20 -19 -37 -139
H.R. 5555:
Budget Authority.......................... 144 1 0 0 0 0 0 0 0 0 0 145 145
Outlays................................... 144 1 0 0 0 0 0 0 0 0 0 145 145
--------------------------------------------------------------------------------------------------------------------------------------------------------
All amounts for outlays are estimates; except for H.R. 5380 and H.R. 5393, all amounts for budget authority are estimated;* = between -$500,000 and
$500,000.
H.R. 2880, the Protecting Patients Against PBM Abuses Act,
would modify the rules with respect to certain fees that PBMs
collect from prescription drug manufacturers. In Medicare Part
D (which provides prescription drug coverage), sponsors of
private insurance plans contract with the government to deliver
benefits to Medicare beneficiaries. Those insurance plans
usually contract with PBMs to negotiate with drug
manufacturers, design formularies, and perform other
administrative functions. A PBM can be owned by the plan
sponsor or it can be an independent corporate entity.
H.R. 2880 would prohibit PBMs from collecting service fees
from manufacturers that are based on drug prices, manufacturer
discounts, or formulary placement decisions. Under the bill,
those fees would be specific dollar amounts based on the fair
market value of a PBM's services. Under current law, PBMs can
be compensated for services they provide to manufacturers, but
compensation that exceeds the fair market value of a service
must be classified as direct and indirect remuneration and
reported to the Centers for Medicare & Medicaid Services (CMS).
According to the Government Accountability Office, however, CMS
does not routinely monitor how PBMs classify those fees.\1\
Under the bill, CMS and the Office of Inspector General would
more closely monitor those classifications.
---------------------------------------------------------------------------
\1\ See Government Accountability Office, Medicare Part D: Use of
Pharmacy Benefit Managers and Efforts to Manage Drug Expenditures, GAO-
19-498 (July 2019), Appendix III, www.gao.gov/products/gao-19-498.
---------------------------------------------------------------------------
CBO estimates that manufacturers' service fees are roughly
1 percent of Part D retail spending under current law. CBO
expects that under H.R. 2880, a portion of those fees would be
reclassified as direct and indirect remuneration by PBMs and,
because of stronger oversight, passed along to the sponsors of
prescription drug plans. That action would reduce bid amounts
for plans' expected benefit payments, which in turn would
reduce spending in Part D. CBO estimates that the provision
would decrease federal spending by $226 million over the 2024-
2034 period, or by roughly 1 percent of the amount expected to
be collected in service fees over that period.
H.R. 3842, the Expanding Access to Diabetes Self-Management
Training Act of 2023, would allow more providers to refer
eligible patients to diabetes self-management training covered
by Medicare and would codify regulatory time limits on use of
the training. CBO expects that enacting H.R. 3842 would result
in more patients receiving such training, which would lead to
increased Medicare spending. CBO expects that such training
would reduce the use of acute-care services, at least partly
offsetting that increase in costs. As a result, CBO estimates
that enacting the bill would increase or decrease direct
spending by less than $500,000 over the 2024-2034 period.
H.R. 4881, a bill to amend title XVIII of the Social
Security Act to limit cost sharing for drugs under the Medicare
program, would limit cost sharing above the deductible to no
more than the average net price for a drug, which is the list
price minus after-sale discounts from the drug's manufacturer.
From 2028 to 2034, CBO projects, less than 1 percent of Part D
spending above the deductible under current law will be for
drugs with cost sharing that exceeds net drug costs. Under the
bill, CBO expects that some out-of-pocket spending by
beneficiaries and some federal subsidies for low-income
beneficiaries would shift onto Part D plans, which would
increase the bids they submit to the federal government to
cover expected benefits spending and therefore increase federal
spending. CBO estimates that enacting H.R. 4881 would increase
direct spending by $754 million over the 2024-2034 period.
H.R. 5372, the Expanding Seniors' Access to Lower Cost
Medications Act of 2023, would allow Part D plans to add
biosimilar biological products to their formularies and change
the cost-sharing status of a reference biological product after
the first 60 days of a plan year. (A reference biological
product is the approved product against which a proposed
biosimilar product is compared.) Under current law, Part D
plans must exempt beneficiaries who currently use reference
biological products from changes in coverage and cost sharing
for the remainder of the year. That restriction limits a plan's
ability to promote use of a biosimilar product immediately
following that product's entry to the market. CMS has proposed
rules that overlap with the bill's provisions concerning
formulary substitutions for biosimilar products.\2\ CBO's
estimate of Medicare spending for those products under current
law accounts for 50 percent of the effect of the proposed
rules. As a result, CBO's estimate of the decrease in direct
spending under H.R. 5372 is larger than it might be if CMS's
rules had become final.
---------------------------------------------------------------------------
\2\See Centers for Medicare & Medicaid Services, ``Medicare
Program; Contract Year 2025 Policy and Technical Changes to the
Medicare Advantage Program, Medicare Prescription Drug Benefit Program,
Medicare Cost Plan Program, and Programs of All-Inclusive Care for the
Elderly; Health Information Technology Standards and Implementation
Specifications,'' Notice of Proposed Rulemaking, 88 Fed. Reg. 78476
(November 15, 2023), http://tinyurl.com/wv7yprfm; and ``Medicare
Program; Contract Year 2024 Policy and Technical Changes to the
Medicare Advantage Program, Medicare Prescription Drug Program,
Medicare Cost Plan Program, Medicare Parts A, B, C, and D Overpayment
Provisions of the Affordable Care Act and Programs of All-Inclusive
Care for the Elderly; Health Information Technology Standards and
Implementation Specifications,'' Notice of Proposed Rulemaking, 87 Fed.
Reg. 79452 (December 27, 2022), http://tinyurl.com/3754c49x.
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Under the bill, the addition of biosimilar products to
formularies could lead to a shift away from the use of
reference biological products. CBO estimates that the
government will spend about $10 billion over the 2024-2034
period to cover reference biological products under current
law. CBO anticipates that under H.R. 5372 approximately 20
percent of the current use of reference biological products
would be replaced by biosimilar products. The prices for
biosimilar products are estimated to be 15 percent lower, on
average, than the prices for the reference products. Using
information about spending on both types of products under
current law and adjusting for current regulatory proposals by
CMS that would streamline coverage for biosimilar products, CBO
estimates that enacting H.R. 5372 would decrease direct
spending by $145 million over the 2024-2034 period.
H.R. 5380, a bill to amend title XVIII of the Social
Security Act to increase data transparency for supplemental
benefits under Medicare Advantage, would provide $15 million in
2024 for the Department of Health and Human Services (HHS) to
implement reporting requirements for supplemental benefits
under Medicare Advantage plans. Based on historical spending
patterns for HHS programs, CBO estimates that enacting H.R.
5380 would increase direct spending by $15 million over the
2024-2034 period.
H.R. 5385, the Medicare PBM Accountability Act, would
require pharmacy benefit managers to provide plan sponsors with
information not furnished under current law. Part D plans have
access to certain aggregate and drug-specific information from
PBMs concerning prescriptions, prices, rebates, and out-of-
pocket charges, but may lack information about PBM-affiliated
entities and contractors, rationales for formulary decisions,
and explanations for benefit designs that favor certain
pharmacies. H.R. 5385 would require PBMs to report such
information to Part D plans but also, subject to certain
restrictions, would allow plans to audit PBMs' business
practices and request other information. The bill would provide
$55 million for HHS to implement those requirements.
H.R. 5385 also would require PBMs to make their business
practices clearer to Part D plans, thus promoting competition
among PBMs. CBO estimates that the increased competition would
reduce net spending for Part D by less than 0.1 percent over
the 2024-2034 period--reducing federal spending by $436 million
over that period.
CBO estimates that the net effect of the bill would be a
reduction in direct spending of $381 million over the 2024-2034
period.
H.R. 5386, the Cutting Copays Act, would prohibit cost
sharing for generic drugs for beneficiaries who are eligible
for the low-income subsidy, which pays most or all of their
premium and cost-sharing requirements. Under current law, plans
have an option but not an obligation to do so. CBO expects that
enacting the bill would increase the use of generic drugs,
which would increase plan bid submissions for expected benefits
payments and, therefore, federal spending. CBO expects that
some of the increase would be offset by reduced spending on
brand-name drugs and certain medical services. CBO estimates
that enacting the bill would increase direct spending by less
than $500,000 over the 2024-2034 period.
H.R. 5393, a bill to amend title XVIII of the Social
Security Act to ensure fair assessment of pharmacy performance
and quality under Medicare Part D, and for other purposes,
would provide $4 million in 2025 for CMS program management to
implement pharmacy performance and quality measures for Part D
and $2 million in that year to implement pharmacy transparency
requirements. Based on historical spending patterns for CMS
administrative costs, CBO estimates that enacting H.R. 5393
would increase direct spending by $6 million over the 2024-2034
period.
H.R. 5397, the Joe Fiandra Access to Home Infusion Act of
2023, would add drugs to the current Medicare benefit that
allows patients to receive some drugs by infusion under nursing
care at home. H.R. 5397 would allow other drugs to meet the
statutory criteria for coverage in the home setting by
establishing those products as suitable for delivery through a
pump and requiring patients receiving those drugs also to
receive regular nursing services.
Based on its analysis of the beneficiary population and
Medicare payment rates, CBO estimates that enacting the bill
would reduce direct spending by $139 million over the 2024-2034
period, primarily because beneficiaries would bear a larger
share of the cost of infusions that occur at home. Under
current law, there is a cap on beneficiary cost sharing in
outpatient hospital settings, which is where CBO expects that
beneficiaries receive those drugs now. There is no equivalent
cap for the home infusion benefit.
CBO's estimate for H.R. 5397 is subject to considerable
uncertainty. First, it is not known how many drugs would
qualify for coverage under the bill. CBO's estimate focused on
three products that industry and clinical experts mentioned as
likely candidates, but the actual number could be larger or
smaller. In addition, given that cost sharing could increase
significantly for patients, it is not known how many
beneficiaries would choose to receive home infusions.\3\
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\3\CMS proposed a similar but not identical policy in a proposed
rulemaking. In the regulatory impact analysis, CMS estimated that, for
one product, beneficiaries' cost sharing would be about triple the
amount if the product was received in a home setting. For more
information, see Centers for Medicare & Medicaid Services, ``Medicare
Program; Durable Medical Equipment, Prosthetics, Orthotics, and
Supplies (DMEPOS) Policy Issues and Level II of the Healthcare Common
Procedure Coding System (HCPCS),'' Notice of Proposed Rulemaking, 85
Fed. Reg. 70358 (November 4, 2020), http://tinyurl.com/29djdrvz.
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H.R. 5555, the DMEPOS Relief Act of 2023, would temporarily
increase Medicare rates in some areas of the country for DMEPOS
(durable medical equipment, prosthetics, orthotics, and
supplies). Under current law, Medicare's payments for some
equipment are based on competitive bidding among suppliers. CMS
uses those results to set rates (either directly or through a
blend with the historic fee schedule) in areas of the country
where formal bidding has not occurred. Prior legislation
directed CMS to use a blend of fee schedule and competitively
bid rates in some areas of the country; the use of those
blended rates expired at the end of calendar year 2023.
Enacting H.R. 5555 would extend the use of those blended rates
through calendar year 2024. Based on an analysis of historic
claim spending, CBO estimates that the DME provision of the
bill would increase direct spending by $145 million over the
2024-2034 period. H.R. 5555 also would reduce amounts available
to the Medicare Improvement Fund by $177 million, however the
Consolidated Appropriations Act, 2024 rescinded all funding
from the Medicare Improvement Fund. As a result, the provision
would not affect direct spending. In total, CBO estimates that
enacting H.R. 5555 would increase net direct spending by $145
million over the 2024-2034 period.
Legislation with no effect on direct spending: CBO
estimates that enacting 11 bills in this estimate would have no
effect on direct spending over the 2024-2034 period:
H.R. 133, the Mandating Exclusive Review of
Individual Treatments (MERIT) Act;
H.R. 1797, the Setting Consumer Standards
for Lithium-Ion Batteries Act;
H.R. 2365, the Dr. Emmanuel Bilirakis
National Plan to End Parkinson's Act;
H.R. 4310, the Youth Poisoning Protection
Act;
H.R. 5202, the Virginia Graeme Baker Pool
and Spa Safety Reauthorization Act;
H.R. 5371, the Choices for Increased
Mobility Act of 2023;
H.R. 5388, the Supporting Innovation for
Seniors Act;
H.R. 5389, the National Coverage
Determination Transparency Act;
H.R. 5396, the Coverage Determination
Clarity Act of 2023;
H.R. 6132, the Awning Safety Act of 2023;
and
H.R. 6364, the Medicare Telehealth Privacy
Act of 2023.
Spending subject to appropriation: CBO estimates that five
bills would increase spending subject to appropriation (see
Table 2). Any spending would be subject to the availability of
appropriated funds.
TABLE 2.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER HEALTH CARE LEGISLATION, AS ORDERED
REPORTED BY THE HOUSE COMMITTEE ON ENERGY AND COMMERCE ON DECEMBER 6, 2023
----------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
------------------------------------------------------------------
2024 2025 2026 2027 2028 2029 2024-2029
----------------------------------------------------------------------------------------------------------------
H.R. 1797:
Estimated Authorization.................. * 1 1 1 1 2 6
Estimated Outlays........................ * 1 1 1 1 2 6
H.R. 2365:
Estimated Authorization.................. * 1 * 1 * 1 3
Estimated Outlays........................ * 1 * 1 * 1 3
H.R. 4310:
Estimated Authorization.................. * * * 1 * 1 2
Estimated Outlays........................ * * * 1 * 1 2
H.R. 5202:
Authorization............................ 5 5 5 5 5 0 25
Estimated Outlays........................ 4 4 4 5 5 0 22
H.R. 6132:
Estimated Authorization.................. * 1 * 1 * 1 3
Estimated Outlays........................ * 1 * 1 * 1 3
----------------------------------------------------------------------------------------------------------------
* = between zero and $500,000.
H.R. 1797, the Setting Consumer Standards for Lithium-Ion
Batteries Act, would require the Consumer Product Safety
Commission (CPSC) to issue a final safety standard to reduce
the risk of fire from rechargeable lithium-ion batteries that
are used to power electric-assist bicycles and electric
scooters, for example. Based on information provided by the
commission, CBO expects that CPSC would need less than two
employees for the first two years after enactment and six
employees thereafter, at an average annual cost of $190,000 per
employee, to issue and enforce the standard. In total, CBO
estimates that it would cost $6 million over the 2024-2029
period for CPSC to implement H.R. 1797, assuming appropriation
of the necessary amounts.
H.R. 2365, the Dr. Emmanuel Bilirakis National Plan to End
Parkinson's Act, would require HHS to establish an advisory
council and to create and update several plans and reports as
part of a national project to prevent, diagnose, treat, and
cure Parkinson's disease. Using information about similar
activities, CBO expects that HHS would need two employees for
the first year after enactment and three employees thereafter,
at an average annual cost in 2024 of $160,000 per employee, to
carry out activities required under the act. In total, CBO
estimates that it would cost $3 million over the 2024-2029
period for HHS to implement H.R. 2365, assuming appropriation
of the necessary amounts.
H.R. 4310, the Youth Poisoning Protection Act, would ban
the sale of consumer products containing 10 percent or more of
sodium nitrite by weight. Using information from CPSC, CBO
expects the commission would need less than one employee for
the first two years after enactment and around two employees
thereafter, at an average annual cost of $190,000 per employee,
to enforce the standard. In total, CBO estimates it would cost
about $2 million over the 2024-2029 period for CPSC to
implement H.R. 4310, assuming appropriation of the necessary
amounts.
H.R. 5202, the Virginia Graeme Baker Pool and Spa Safety
Reauthorization Act, would authorize the appropriation of $5
million annually over the 2024-2028 period for CPSC to continue
a grant program and public outreach concerning the safety of
children in pools and spas. The bill would require CPSC to
extend grant eligibility to nonprofit organizations, appoint a
Director of Drowning Prevention, and report to the Congress
annually on the program's results. Using information from CPSC,
CBO estimates that the cost of implementing the bill would be
$22 million over the 2024-2029 period, assuming appropriation
of the necessary amounts.
H.R. 6132, the Awning Safety Act of 2023, would require
CPSC to issue a final safety standard for retractable awnings.
Using information from that agency, CBO expects the commission
would need an average of two employees per year, at an average
annual cost of $190,000 per employee, to issue and enforce the
standard. In total, CBO estimates it would cost about $3
million over the 2024-2029 period for CPSC to implement H.R.
6132, assuming appropriation of the necessary amounts.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays for the 10 bills that are
subject to those pay-as-you-go procedures are shown in Table 1.
Increase in long-term net direct spending and deficits: CBO
estimates that enacting H.R. 4881 would increase long-term net
direct spending and that such spending would increase by more
than $5 billion in at least one of the four consecutive 10-year
periods beginning in 2035.
CBO estimates that none of the other bills discussed in
this estimate would increase net direct spending or deficits in
any of the four consecutive 10-year periods beginning in 2035.
Mandates: H.R. 1797 would impose a private-sector mandate
as defined in the Unfunded Mandates Reform Act (UMRA) by
requiring manufacturers of electric-assist bicycles and
electric scooters, for example, to comply with a prospective
CPSC safety standard concerning the risk of fire in lithium-ion
batteries. Limited data are available about the extent of
industry compliance with the current voluntary standards or
about the cost of bringing products into compliance. Therefore,
CBO cannot determine whether the cost of the mandate would
exceed the private-sector threshold established in UMRA ($200
million in 2024, adjusted annually for inflation).
H.R. 1797 would not impose any intergovernmental mandates.
H.R. 4310 would impose a private-sector mandate as defined
in UMRA by banning the sale of consumer products containing 10
percent or more of sodium nitrite by weight. The prohibition
would not apply to industrial uses or to food preservation.
Because there is only a small market for consumer products
containing more than 10 percent by weight and some states
already have curtailed the sale of products containing sodium
nitrite, CBO estimates that the cost of the mandate would not
exceed the private-sector threshold established in UMRA.
H.R. 4310 would not impose any intergovernmental mandates.
H.R. 6132 would impose a private-sector mandate as defined
in UMRA by requiring awning manufacturers to comply with a
prospective CPSC safety standard concerning fixed and
freestanding retractable awnings. CBO expects that the standard
could require awnings to be equipped with safety clips and to
issue visual or audible alerts when in motion. Based on the
cost of such additional equipment and the number of such
awnings likely to be sold, CBO estimates that the cost of the
mandate would not exceed the private-sector threshold
established in UMRA.
H.R. 6132 would not impose any intergovernmental mandates.
CBO has determined that none of the other bills in this
estimate would impose intergovernmental or private-sector
mandates as defined in UMRA.
Estimate prepared by Federal costs: Austin Barselau
(Medicare), Ezra Cohn (public health), Cornelia Hall
(Medicare), Hudson Osgood (Medicare), Lara Robillard
(Medicare), Sarah Sajewski (Medicare), Katie Zhang (public
health), Noah Zwiefel (Medicare); Mandates: Andrew Laughlin.
Estimate reviewed by: Sean Dunbar, Chief, Low-Income Health
Programs and Prescription Drugs Cost Estimates Unit; Kathleen
FitzGerald, Chief, Public and Private Mandates Unit; Sarah
Masi, Senior Adviser, Budget Analysis Division; Asha Saavoss,
Chief, Medicare and Health Systems Cost Estimates Unit; Chad
Chirico, Director of Budget Analysis.
Estimate approved by: Phillip L. Swagel, Director,
Congressional Budget Office.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to direct
the CPSC to promulgate a final consumer product safety standard
to protect consumer lives and property against the risk of
fires caused by lithium-ion batteries.
DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 1797 is known to be duplicative of another Federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111-139 or the
most recent Catalog of Federal Domestic Assistance.
RELATED COMMITTEE AND SUBCOMMITTEE HEARINGS
Pursuant to clause 3(c)(6) of rule XIII, the following
related hearing was used to develop or consider H.R. 1797:
On September 27, 2023, the Subcommittee on
Innovation, Data, and Commerce held a hearing on H.R.
1797. The title of the hearing was ``Proposals to
Enhance Product Safety and Transparency for
Americans.'' The Subcommittee received testimony from:
Kathleen Callahan, Owner,
Xpertech Auto Repair;
Scott Benavidez, Chairman,
Automotive Service Association;
Steven Michael Gentine, Counsel,
Arnold & Porter, LLP;
John Breyault, Vice President of
Public Policy, Telecommunications and Fraud,
National Consumers League; and
David Touhey, Principal, Connett
Consulting, appearing on behalf of
International Association of Venue Managers.
COMMITTEE COST ESTIMATE
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974.
EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 1797 contains no earmarks, limited
tax benefits, or limited tariff benefits.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title
Section 1 provides that the Act may be cited as the
``Setting Consumer Standards for Lithium-Ion Batteries Act.''
Section 2. Consumer product safety standard for certain batteries
Section 2 requires the Consumer Product Safety Commission
to promulgate a rulemaking under 5 U.S.C. 553 for a final
consumer product safety standard for rechargeable lithium-ion
batteries used in micromobility devices, including electric
bikes and electric scooters, and any related equipment used
with such batteries within the jurisdiction of the Commission.
Such a standard will be treated as a consumer product safety
rule promulgated under section 9 of the Consumer Product Safety
Act (15 U.S.C. 2058).
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.