[House Report 113-483]
[From the U.S. Government Publishing Office]
113th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 113-483
======================================================================
TO REQUIRE THE SECRETARY OF THE INTERIOR TO ASSEMBLE A TEAM OF
TECHNICAL, POLICY, AND FINANCIAL EXPERTS TO ADDRESS THE ENERGY NEEDS OF
THE INSULAR AREAS OF THE UNITED STATES AND THE FREELY ASSOCIATED STATES
THROUGH THE DEVELOPMENT OF ACTION PLANS AIMED AT REDUCING RELIANCE ON
IMPORTED FOSSIL FUELS AND INCREASING USE OF INDIGENOUS CLEAN-ENERGY
RESOURCES, AND FOR OTHER PURPOSES
_______
June 19, 2014.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Upton, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 83]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 83) to require the Secretary of the Interior to
assemble a team of technical, policy, and financial experts to
address the energy needs of the insular areas of the United
States and the Freely Associated States through the development
of action plans aimed at reducing reliance on imported fossil
fuels and increasing use of indigenous clean-energy resources,
and for other purposes, having considered the same, report
favorably thereon with amendment and recommend that the bill as
amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 3
Background and Need for Legislation.............................. 3
Hearings......................................................... 4
Committee Consideration.......................................... 4
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 4
Statement of General Performance Goals and Objectives............ 4
New Budget Authority, Entitlement Authority, and Tax Expenditures 5
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 5
Committee Cost Estimate.......................................... 5
Congressional Budget Office Estimate............................. 5
Federal Mandates Statement....................................... 6
Duplication of Federal Programs.................................. 6
Disclosure of Directed Rule Makings.............................. 6
Advisory Committee Statement..................................... 7
Applicability to Legislative Branch.............................. 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 7
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. INSULAR AREAS AND FREELY ASSOCIATED STATES ENERGY
DEVELOPMENT.
(a) Definitions.--In this section:
(1) Comprehensive energy plan.--The term ``comprehensive
energy plan'' means a comprehensive energy plan prepared and
updated under subsections (c) and (e) of section 604 of the Act
entitled ``An Act to authorize appropriations for certain
insular areas of the United States, and for other purposes'',
approved December 24, 1980 (48 U.S.C. 1492).
(2) Energy action plan.--The term ``energy action plan''
means the plan required by subsection (d).
(3) Freely associated states.--The term ``Freely Associated
States'' means the Federated States of Micronesia, the Republic
of the Marshall Islands, and the Republic of Palau.
(4) Insular areas.--The term ``insular areas'' means American
Samoa, the Commonwealth of the Northern Mariana Islands, the
Commonwealth of Puerto Rico, Guam, and the Virgin Islands.
(5) Secretary.--The term ``Secretary'' means the Secretary of
the Interior.
(6) Team.--The term ``team'' means the team established by
the Secretary under subsection (b).
(b) Establishment.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall establish a team of
technical, policy, and financial experts--
(1) to develop energy action plans addressing the immediate,
near-term, and long-term energy and environmental needs of each
of the insular areas and Freely Associated States; and
(2) to assist each of the insular areas and Freely Associated
States in implementing an energy action plan.
(c) Participation of Regional Utility Organizations.--In establishing
the team, the Secretary shall consider including regional utility
organizations.
(d) Energy Action Plans.--In accordance with subsection (b), the
energy action plans shall include--
(1) recommendations, based on the comprehensive energy plan
where applicable, to--
(A) promote access to affordable, reliable energy;
(B) develop indigenous, nonfossil fuel energy
resources; and
(C) improve performance of energy infrastructure and
overall energy efficiency;
(2) a schedule for implementation of such recommendations and
identification and prioritization of specific projects;
(3) a financial and engineering plan for implementing and
sustaining projects; and
(4) benchmarks for measuring progress toward implementation.
(e) Reports to Secretary.--Not later than 1 year after the date on
which the Secretary establishes the team and annually thereafter, the
team shall submit to the Secretary a report detailing progress made in
fulfilling its charge and in implementing the energy action plans.
(f) Annual Reports to Congress.--Not later than 30 days after the
date on which the Secretary receives a report submitted by the team
under subsection (e), the Secretary shall submit to the appropriate
committees of Congress a summary of the report of the team.
Amend the title to read:
A bill to require the Secretary of the Interior to assemble
a team of technical, policy, and financial experts to address
the energy needs of the insular areas of the United States and
the Freely Associated States through the development of energy
action plans aimed at promoting access to affordable, reliable
energy, including increasing use of indigenous clean-energy
resources, and for other purposes.
PURPOSE AND SUMMARY
H.R. 83, to require the Secretary of the Interior to
assemble a team of technical, policy, and financial experts to
address the energy needs of the insular areas of the United
States and the Freely Associated States through the development
of energy action plans aimed at promoting access to affordable,
reliable energy, including increasing use of indigenous clean-
energy resources, and for other purposes, was introduced by
Rep. Donna M. Christensen on January 3, 2013. The legislation
will assist the insular areas of the United States and the
Freely Associated States in addressing their energy and
environmental needs by directing the Secretary of the Interior
to establish a team of technical, policy, and financial experts
to develop an energy action plan for each of the insular areas
and Freely Associated States and to assist them in implementing
those energy action plans.
BACKGROUND AND NEED FOR LEGISLATION
The Insular Areas and Freely Associated States (Insular
Areas), including American Samoa, the Commonwealth of the
Northern Mariana Islands, the Commonwealth of Puerto Rico,
Guam, the Virgin Islands, the Federated States of Micronesia,
the Republic of the Marshall Islands, and the Republic of
Palau, generally, have few conventional energy resources, and
they are dependent upon imports to meet a significant portion
of their energy needs. As noted in the U.S. Department of the
Interior's 2006 United States of America Insular Areas Energy
Assessment Report, ``[t]he Insular Areas have no indigenous
fossil fuels, and their near complete reliance on a single,
increasingly expensive energy source has created fiscal burdens
that have hampered economic development.'' (p. ii)
In addition, because the Insular Areas are isolated from
areas that provide their energy fuels, as well as the added
cost of transporting those fuels, they face higher energy costs
and greater threat of supply interruption than areas that are
energy independent or have a more convenient source of energy
fuels. For example, the National Renewable Energy Laboratory
found in its 2011 report on Integrating Renewable Energy into
the Transmission and Distribution System of the U.S. Virgin
Islands that electricity costs in the Virgin Islands are more
than four times higher than the U.S. average due to the
territory's dependence on imported energy to meet nearly all of
its energy needs. To address these challenges, the Insular
Areas require assistance with their immediate, near-term, and
long-term energy resource planning and implementation,
including the development of local renewable energy and
improvements in energy efficiency.
Congress previously addressed the energy issues faced by
Insular Areas in 1984 with the passage of H.R. 5561 (P.L. 98-
454, 48 U.S.C. 1492), which, in part, required the Secretary of
Energy (Secretary) to ``prepare a comprehensive energy plan
with emphasis on indigenous renewable sources of energy . . .
.'' (48 U.S.C. 1492(c)) and authorized the Secretary to:
grant financial assistance . . . to insular area
governments or private sector persons working in
cooperation with insular area governments to carry out
projects to evaluate the feasibility of, develop
options for, and encourage the adoption of energy
efficiency and renewable energy measures which reduce
the dependency of the insular areas on imported fuels,
improve the quality of the environment, and promote
development in the insular areas. (48 U.S.C. 1492(g))
When Congress passed the Energy Policy Act of 2005 (EPAct
2005, P.L. 109-190), it included provisions that expanded the
scope of the comprehensive energy plan and authorized grants
``to carry out projects to protect electric power transmission
and distribution lines . . . from damage caused by hurricanes
and typhoons.'' (sec. 251 of EPAct 2005)
Section 252 of EPAct 2005 also directed the Secretary to
``conduct a feasibility study of a project to implement a
strategy or project identified in the [comprehensive energy]
plans . . . .'' required by 48 U.S.C. 1492. (42 U.S.C.
15891(a)) In addition, the Secretary was authorized to
``provide such technical and financial assistance as the
Secretary determines is appropriate for the implementation of
the project.'' (42 U.S.C. 15891(b))
While these previous laws have provided assistance, the
Insular Areas continue to face significant energy challenges.
The Committee has an ongoing interest in the energy needs of
the nation, and the Insular Areas. Affordable and reliable
sources of energy are hallmarks of a thriving economy that can
improve the quality of life for all.
HEARINGS
The Committee on Energy and Commerce has not held hearings
on the legislation.
COMMITTEE CONSIDERATION
On July 10, 2013, the Subcommittee on Energy and Power met
in open markup session and approved H.R. 83 for full Committee
consideration, as amended, by a voice vote.
On July 17, 2013, the Committee on Energy and Commerce met
in open markup session, and a motion by Mr. Upton to order H.R.
83 reported to the House, as amended, was agreed to by
unanimous consent.
COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto.
There were no record votes taken in connection with ordering
H.R. 83 reported. A motion by Mr. Upton to order H.R. 83
reported to the House, as amended, was agreed to by unanimous
consent.
COMMITTEE OVERSIGHT FINDINGS
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee has not held oversight
or legislative hearings on this legislation.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
H.R. 83 assists the insular areas of the United States and
the Freely Associated States to address their energy needs
through the development of energy action plans aimed at
promoting access to affordable and reliable energy, including
increasing use of indigenous clean energy resources.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
83, to require the Secretary of the Interior to assemble a team
of technical, policy, and financial experts to address the
energy needs of the insular areas of the United States and the
Freely Associated States through the development of energy
action plans aimed at promoting access to affordable, reliable
energy, including increasing use of indigenous clean-energy
resources, and for other purposes, would result in no new or
increased budget authority, entitlement authority, or tax
expenditures or revenues.
EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS
In compliance with clause 9(e), 9(f), and 9(g) of rule XXI
of the Rules of the House of Representatives, the Committee
finds that H.R. 83 contains no earmarks, limited tax benefits,
or limited tariff benefits.
COMMITTEE COST ESTIMATE
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.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
July 29, 2013.
Hon. Fred Upton,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 83, a bill to
require the Secretary of the Interior to assemble a team of
technical, policy, and financial experts to address the energy
needs of the insular areas of the United States and the Freely
Associated States through the development of action plans aimed
at reducing reliance on imported fossil fuels and increasing
use of indigenous clean-energy resources, and for other
purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Maggie
Morrissey and Matthew Pickford.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 83--A bill to require the Secretary of the Interior to assemble a
team of technical, policy, and financial experts to address the
energy needs of the insular areas of the United States and the
Freely Associated States through the development of action
plans aimed at reducing reliance on imported fossil fuels and
increasing use of indigenous clean-energy resources, and for
other purposes
H.R. 83 would require the Department of the Interior (DOI)
to establish a team of technical, policy, and financial experts
to develop action plans aimed at reducing reliance on imported
fossil fuels and increasing the use of clean-energy sources in
the insular areas (American Samoa, the Northern Mariana
Islands, Puerto Rico, Guam, and the Virgin Islands) and the
Freely Associated States (the Federated States of Micronesia,
the Republic of the Marshall Islands, and the Republic of
Palau). In establishing the team, DOI would be required to
consider including regional utility organizations. Both the
team and DOI would report to the Congress on their findings
annually.
DOI currently spends $1.2 million annually to establish
energy action plans for insular areas. Based on information
from the agency, CBO expects that under H.R. 83, DOI would need
to spend about $2 million more annually to hire additional
staff to handle the increased technical support called for
under the bill. Thus, CBO estimates that implementing the bill
would cost about $10 million over the 2014-2018 period,
assuming appropriation of the necessary amounts. Enacting H.R.
83 would not affect direct spending or revenues; therefore,
pay-as-you-go procedures do not apply.
H.R. 83 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 contacts for this estimate are Maggie
Morrissey and Matthew Pickford. The estimate was approved by
Theresa Gullo, Deputy Assistant Director for Budget Analysis.
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.
DUPLICATION OF FEDERAL PROGRAMS
No provision of H.R. 83 establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
DISCLOSURE OF DIRECTED RULE MAKINGS
The Committee estimates that enacting H.R. 83 directs to be
completed no specific rule makings within the meaning of 5
U.S.C. 551.
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(a) defines the terms ``Comprehensive Energy
Plan,'' ``Energy Action Plan,'' ``Freely Associated States,''
``Insular Areas,'' ``Secretary,'' and ``Team.''
Section 1(b) directs the Secretary of the Interior to
establish a team of technical, policy and financial experts to
(1) develop energy action plans addressing the immediate, near-
term, and long-term energy and environmental needs of each of
the insular areas and Freely Associated States, and (2) assist
them in implementing an energy action plan.
Section 1(c) requires the Secretary of the Interior to
consider including regional utility organizations in the team.
Section 1(d) provides that the energy action plans include
(1) recommendations to (a) promote access to affordable,
reliable energy, (b) develop indigenous, nonfossil fuel energy
resources, and (c) improve performance of energy infrastructure
and overall energy efficiency; (2) a schedule for
implementation of such recommendations and identification and
prioritization of specific projects; (3) a financial and
engineering plan for implementing and sustaining projects; and
(4) benchmarks for measuring progress toward implementation.
Section 1(e) directs the team to submit to the Secretary of
the Interior a report detailing progress made in fulfilling its
charge and implementing the energy action plans. The report
must be submitted within 1 year of the establishment of the
team and annually thereafter.
Section 1(f) directs the Secretary of the Interior to
submit to the appropriate Congressional committees a summary of
the report of the team required by section 1(e). The summary
must be submitted within 30 days of receiving the report
required by section 1(e).
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.