59–010 

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As originally enacted, the Steel and Aluminum Energy Conservation and Technology Act of 1988 authorized appropriations to carry 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 


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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. 


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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 


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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. 


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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 


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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 øcoatings for sheet 

steels¿ sheet and bar steels. 

* * * * * * * 

(K) The development of technologies which reduce greenhouse gas emissions. 

* * * * * * * 

øSEC. 7. EXPANDED STEEL AND ALUMINUM RESEARCH PROGRAM IN 

NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY. 

øThe 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 reVerDate Aug 31 2005 06:03 Sep 21, 2007 Jkt 059010 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\SR181.XXX SR181

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search 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. 

øSEC. 9. AUTHORIZATION OF APPROPRIATIONS. 

ø(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. 

ø(2) Funds previously appropriated for the steel research and development initiative—

ø(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 

ø(B) under subsequent appropriations Acts, 

which remain available under the terms of such Acts may be used 

for the purposes of this Act. 

ø(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. 

* * * * * * * 

Æ 


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