[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As originally enacted, the Steel and Aluminum Energy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.
* * * * * * *