[House Report 113-209]
[From the U.S. Government Publishing Office]
113th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 113-209
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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.