[DOCID: f:hr535.109]
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109th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 109-535
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TO ESTABLISH A GRANT PROGRAM WHEREBY MONEYS COLLECTED FROM VIOLATIONS
OF THE CORPORATE AVERAGE FUEL ECONOMY PROGRAM ARE USED TO EXPAND
INFRASTRUCTURE NECESSARY TO INCREASE THE AVAILABILITY OF ALTERNATIVE
FUELS
_______
June 28, 2006.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Barton of Texas, from the Committee on Energy and Commerce,
submitted the following
R E P O R T
[To accompany H.R. 5534]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 5534) to establish a grant program whereby
moneys collected from violations of the corporate average fuel
economy program are used to expand infrastructure necessary to
increase the availability of alternative fuels, having
considered the same, report favorably thereon without amendment
and recommend that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 2
Committee Consideration.......................................... 2
Committee Votes.................................................. 2
Committee Oversight Findings..................................... 2
Statement of General Performance Goals and Objectives............ 2
New Budget Authority, Entitlement Authority, and Tax Expenditures 3
Committee Cost Estimate.......................................... 3
Congressional Budget Office Estimate............................. 3
Federal Mandates Statement....................................... 4
Advisory Committee Statement..................................... 4
Constitutional Authority Statement............................... 4
Applicability to Legislative Branch.............................. 5
Section-by-Section Analysis of the Legislation................... 5
Changes in Existing Law Made by the Bill, as Reported............ 5
PURPOSE AND SUMMARY
The purpose of H.R. 5534 is to establish a grant program
whereby moneys collected from violations of the Corporate
Average Fuel Economy program are used to expand infrastructure
necessary to increase the availability of alternative fuels.
BACKGROUND AND NEED FOR LEGISLATION
Today, nearly six million Americans drive flex-fuel
vehicles. These cars are capable of running on gasoline or
renewable fuels like E-85, which is 85 percent ethanol.
Unfortunately, renewable fuels infrastructure has not kept pace
with the number of renewable fueled cars on the road, and today
only approximately 800 gas stations have E-85 pumps installed,
which is less than 1 percent of all gas stations.
With gas prices at record highs, there is great interest in
reducing the country's dependence on foreign oil by making
alternative fuels more available to drivers. To achieve this,
H.R. 5534 uses the penalties automakers pay for failing to meet
Corporate Average Fuel Economy (CAFE) standards to provide
grants to install alternative fuel infrastructure.
In particular, H.R. 5534 allows independent gas stations to
apply for targeted grants of $30,000 to be used for the
installation of E-85 pumps and other alternative fuel
infrastructure. With approximately $20 million collected from
CAFE penalties annually, this legislation could double the
number of alternative fuel pumps in the United States in one
year.
HEARINGS
The Committee on Energy and Commerce has not held hearings
on the legislation.
COMMITTEE CONSIDERATION
On Tuesday, June 20, 2006, the Committee on Energy and
Commerce met in open markup session and ordered H.R. 5534
reported to the House, without amendment, by a voice vote, a
quorum being present.
COMMITTEE VOTES
There were no record votes taken in connection with
ordering H.R. 5534 reported. A motion by Mr. Barton to order
H.R. 5534 reported to the House, with amendment, was agreed to
by a voice vote.
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
The goal of H.R. 5534 is to establish a grant program
whereby moneys collected from violations of the Corporate
Average Fuel Economy program are used to expand infrastructure
necessary to increase the availability of alternative fuels.
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.
5534, would result in no new or increased budget authority,
entitlement authority, or tax expenditures or revenues.
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:
June 22, 2006.
Hon. Joe Barton,
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. 5534, a bill to
establish a grant program whereby moneys collected from
violations of the corporate average fuel economy program are
used to expand infrastructure necessary to increase the
availability of alternative fuels.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Leigh
Angres and Megan Carroll.
Sincerely,
Donald B. Marron,
Acting Director.
Enclosure.
H.R. 5534--A bill to establish a grant program whereby moneys collected
from violations of the corporate average fuel economy program
are used to expand infrastructure necessary to increase the
availability of alternative fuels
Summary: H.R. 5534 would establish a Department of Energy
(DOE) grant program to support the installation of equipment at
gas stations for the delivery of alternative fuels. CBO
estimates enacting the bill would increase direct spending by
$5 million in 2007 and by $225 million over the 2007-2016
period because it would authorize spending without further
appropriation of amounts currently collected for violations of
corporate average fuel economy (CAFE) standards. Enacting the
bill would not affect revenues.
H.R. 5534 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA);
the bill would benefit State, local, and tribal governments and
any costs would be incurred voluntarily.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 5534 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 2013 2014 2015 2016
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated Budget Authority...... 25 25 25 25 25 25 25 25 25 25
Estimated Outlays............... 5 20 25 25 25 25 25 25 25 25
----------------------------------------------------------------------------------------------------------------
Basis of estimate: Under current law, the Department of
Transportation charges penalties for automakers' violations of
CAFE standards. In recent years, such collections have ranged
from $51 million in 2000 to $5 million in 2003. H.R. 5534 would
require that the penalties be transferred to a new interest-
bearing fund. Amounts in the proposed fund would be available,
without further appropriation, to DOE for a grant program to
support the installation of equipment at gas stations for the
delivery of alternative motor fuels.
CBO estimates the fines that would be directed to the
proposed fund would total $24 million annually, and interest on
the balance of the fund would total about $1 million annually.
Based on spending patterns of similar grant programs
administered by DOE, CBO estimates enacting the bill would
increase direct spending by $5 million in 2007 and by $225
million over the 2007-2016 time period.
Intergovernmental and private-sector impact: H.R. 5534
contains no intergovernmental or private-sector mandates as
defined in UMRA. Grants established by the bill may benefit
State, local, and tribal governments that choose to construct
or expand infrastructure to increase access to alternative
fuels. Any costs they might incur would result from complying
with conditions of federal assistance.
Estimate prepared by: Federal Costs: Leigh Angres and Megan
Carroll. Federal Revenues: Emily Schlect. Impact on State,
Local, and Tribal Governments: Lisa Ramirez-Branum. Impact on
the Private Sector: Craig Cammarata.
Estimate approved by: Peter H. Fontaine, 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.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
CONSTITUTIONAL AUTHORITY STATEMENT
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for this legislation is provided in
Article I, section 8, clause 3, which grants Congress the power
to regulate commerce with foreign nations, among the several
States, and with the Indian tribes.
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. Fuel Economy Fund and Alternative Fuel Grant Program
Section 1(a)(1) creates a Fuel Economy Fund (Fund) with
amounts transferred to the Fund from the total amount deposited
in the general fund of the Treasury in the preceding fiscal
year from fines, penalties, and other moneys collected under
the CAFE program (49 U.S.C. 32912). The Secretary of Energy
(Secretary) is directed to invest such portion of the Fund that
is not required to meet current withdrawals in interest bearing
obligations of the United States. The amounts in the Fund shall
be made available to the Secretary to carry out the grant
program.
Section 1(b) requires the Secretary to establish and carry
out a grant program to expand the availability of alternative
fuels through the Clean Cities Program administered through the
Department of Energy. Any entity eligible for assistance
through the Clean Cities program will be eligible for a grant
under this section, except that no grant shall be awarded to a
large, vertically integrated oil company. Grants shall not
exceed $30,000, or $60,000 in any fiscal year. The grants under
this section shall be used for the construction or expansion of
infrastructure necessary to increase the availability to
consumers of alternative fuels (as defined in 49 U.S.C.
32901(a)(1)). Not more than three percent of grant funds may be
used for administrative costs.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.
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