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[House Report 109-659]
[From the U.S. Government Publishing Office]

109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-659

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 TO AUTHORIZE TEMPORARY EMERGENCY EXTENSIONS TO CERTAIN EXEMPTIONS TO 
 THE REQUIREMENTS WITH RESPECT TO POLYCHLORINATED BIPHENYLS UNDER THE 
                      TOXIC SUBSTANCES CONTROL ACT

                                _______
                                

 September 14, 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. 5863]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 5863) to authorize temporary emergency 
extensions to certain exemptions to the requirements with 
respect to polychlorinated biphenyls under the Toxic Substances 
Control Act, having considered the same, report favorably 
thereon without amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
Statement of General Performance Goals and Objectives............     3
New Budget Authority, Entitlement Authority, and Tax Expenditures     3
Committee Cost Estimate..........................................     4
Congressional Budget Office Estimate.............................     4
Federal Mandates Statement.......................................     5
Advisory Committee Statement.....................................     5
Constitutional Authority Statement...............................     5
Applicability to Legislative Branch..............................     5
Section-by-Section Analysis of the Legislation...................     5
Changes in Existing Law Made by the Bill, as Reported............     6

                          Purpose and Summary

    The purpose of H.R. 5863 is to allow for the authorization 
of a temporary emergency extension of a certain exemption to 
the requirements concerning polychlorinated biphenyls in the 
Toxic Substances Control Act (TSCA).

                  Background and Need for Legislation

    The Department of Defense (DOD) and its services and 
supplies adjunct, the Defense Logistics Agency (DLA), have been 
stockpiling PCB laden equipment in its warehouses overseas, 
particularly in Japan. This equipment, in part consisting of 
electric transformers, capacitors, voltage regulators, circuit 
breakers, and electric cable, which were manufactured both in 
the United States and abroad, is nearing the point of 
completely filling existing warehouse space. DOD and DLA are 
currently seeking ways to properly remove and dispose of this 
equipment to help alleviate storage capacity concerns.
    Under regulations promulgated pursuant to Section 6(e) of 
TSCA, no person may import equipment with PCBs into the United 
States for disposal, treatment, or storage if those PCBs or the 
equipment containing those PCBs were created in a foreign 
country. Items containing PCBs that were created in the United 
States, even if they are used overseas, are not subject to this 
provision of law. Section 6(e)(3)(B) of TSCA, however, allows 
the Administrator of the U.S. Environmental Protection Agency 
(EPA) to grant a one year waiver from these requirements for a 
specific petitioner if that petitioner can demonstrate that the 
grant of a waiver by EPA will: (1) not result in an 
unreasonable risk to human health or the environment and (2) 
good faith efforts have been made by the petitioner to develop 
alternatives to PCBs that would not present an unreasonable 
risk of injury to health or the environment.
    In past years, DOD/DLA have relied upon the existing 
petition and waiver process from TSCA Section 6(e)(3)(B) to 
ship foreign generated PCBs along with U.S.-generated PCBs back 
into the United States for disposal, treatment, or storage 
through contracted private parties. For example, in 2003, the 
Administrator granted a one-year exemption to DLA who 
successfully removed over 2.7 million pounds of PCB 
contaminated equipment from Japan. Another petition to ship 
foreign generated PCBs is currently pending with EPA.
    However, while this arrangement has worked, DOD/DLA are 
concerned that one-year alone might be too tight of a time 
frame because it does not allow much room for unexpected 
shipping delays. For example, during the 2003 waiver period, 
the ship carrying DOD's last shipment of foreign generated PCBs 
caught fire, had to return to Japan, and nearly did not make it 
to U.S. customs territory before the one year waiver expired. 
Had that shipment not made it to port in the United States, the 
ship would have been prohibited from docking and unloading its 
cargo in the United States. The Committee expects that DOD/DLA 
will minimize the possibility of a problem caused by unexpected 
shipping delays by scheduling the shipments well in advance of 
the end of the one year exemption period.
    Based on this past experience, DOD/DLA has recently 
expressed heightened concerns about the potential of a TSCA 
Section 6(e)(3)(B) exemption expiring while a shipment of 
foreign generated PCBs is in transit. DOD has been working with 
the State Department to find PCB disposal capacity. Currently, 
Japan--where DOD/DLA's greatest concerns lie--has no immediate 
capability to dispose of PCBs and does not expect to have the 
capability for several years. Since U.S. military activities 
will continue to generate domestic and foreign PCBs for many 
years as existing equipment comes out of service, DOD/DLA are 
seeking an amendment to TSCA Section 6(e)(3)(B) to extend the 
waiver period for DOD/DLA importation of foreign manufactured 
PCB equipment.
    On June 22, 2006, the Senate passed H.R. 5122, the National 
Defense Authorization Act for fiscal year 2007. Section 322 of 
the Senate passed version of H.R. 5122 contains language that 
would amend TSCA Section 6(e)(3)(B) to allow EPA to grant an 
exemption for up to three years to the Secretary of Defense and 
the Secretaries of the military departments to transport PCBs 
generated by, or under the control of DOD into the United 
States for purposes of their disposal. In addition, Senate 
Section 322 would sunset in 2012 and require a report on DOD 
and DLA stockpiles of foreign generated PCBs by 2012. The House 
passed version of H.R. 5122 did not contain similar provisions. 
H.R. 5863 responds to Section 322 of the Senate passed version 
of H.R. 5122.

                                Hearings

    The Committee on Energy and Commerce has not held hearings 
on the legislation.

                        Committee Consideration

    On Wednesday, July 26, 2006, the Committee on Energy and 
Commerce met in open markup session and ordered H.R. 5863 
favorably reported to the House, without amendment, by a voice 
vote, a quorum being present.

                            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. 5863 reported. A motion by Mr. Barton to order H.R. 5863 
favorably reported to the House, without 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. 5863 is to authorize a temporary emergency 
extension to certain exemptions to the requirements with 
respect to polychlorinated biphenyls under the Toxic Substances 
Control Act.

   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. 
5863, to authorize a temporary emergency extension to certain 
exemptions to the requirements with respect to polychlorinated 
biphenyls under the Toxic Substances Control Act, 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:
                       Congressional Budget Office,
                                             U.S. Congress,
                                    Washington, DC, August 3, 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. 5863, a bill to 
authorize temporary emergency extensions to certain exemptions 
to the requirements with respect to polychlorinated biphenyls 
under the Toxic Substances Control Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
Mehlman.
            Sincerely,
                                          Donald B. Marron,
                                                   Acting Director.
    Enclosure.

H.R. 5863--A bill to authorize temporary emergency extensions to 
        certain exemptions to the requirements with respect to 
        polychlorinated biphenyls under the Toxic Substances Control 
        Act

    Under the Toxics Substances Control Act, no person may 
import polychlorinated biphenyls (PCBs) into the United States 
for disposal, treatment, or storage if those PCBs or the 
equipment containing those PCBs were created in a foreign 
country. Under certain circumstances, however, the 
Environmental Protection Agency (EPA) is allowed to grant 
exemptions from this law for up to one year. Enacting H.R. 5863 
would allow EPA to extend previously granted exemptions for an 
additional 30 days in emergency situations. This authority to 
extend waivers would end on September 30, 2012.
    Based on information from EPA, CBO estimates that enacting 
H.R. 5863 would have no significant impact on the federal 
budget. Enacting this legislation would not affect direct 
spending or revenues.
    H.R. 5863 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 Susanne S. 
Mehlman. This estimate was approved by Robert A. Sunshine, 
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. Extension of emergency exemption authority from certain 
        requirements

    Section 1 amends Section 6(e)(3) of the Toxic Substances 
Control Act.
    First, it creates a new subparagraph (D) that supplements 
the existing authority that is provided to the Administrator of 
the U.S. Environmental Protection Agency (EPA) in existing 
subparagraph (B). The new subparagraph (D) allows the EPA 
Administrator to extend, if notified of an emergency situation, 
an exemption granted pursuant to existing subparagraph (B) for 
a period of not more than 30 days for the purpose of 
authorizing the safe, effective, and efficient shipment into 
the customs territory of the United States of foreign generated 
polychlorinated biphenyls for purposes of their disposal, 
treatment, or storage in the customs territory of the United 
States.
    Section 1 also sunsets the EPA Administrator's authority to 
grant an extension of an exemption on September 30, 2012. If, 
however, a 30-day extension of an exemption has been granted 
prior to September 30, 2012; such extension of the exemption 
shall be fully carried out as issued.
    Finally, not later than March 1, 2011, Section 1 requires 
that any person or entity who has been granted an exemption 
pursuant to section 6(e)(3)(B) of the Toxic Substances Control 
Act, after the enactment of new subparagraph 6(e)(3)(D), shall 
submit to the Committee on Environment and Public Works of the 
Senate and the Committee on Energy and Commerce of the House of 
Representatives a report on the status of foreign-manufactured 
polychlorinated biphenyls generated by or under the control of 
that person or entity outside of the United States. The report 
shall address the remaining volume of such foreign-manufactured 
polychlorinated biphenyls that may require shipment into the 
customs territory of the United States for disposal, treatment, 
or storage; the efforts that have been made by that person or 
entity or related Federal entities to reduce such volumes of 
foreign manufactured PCBs and the development of alternative 
options for the disposal, treatment, or storage of such PCBs.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as 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):

             SECTION 6 OF THE TOXIC SUBSTANCES CONTROL ACT

SEC. 6. REGULATION OF HAZARDOUS CHEMICAL SUBSTANCES AND MIXTURES.

    (a)  * * *

           *       *       *       *       *       *       *

    (e) Polychlorinated Biphenyls.--(1)  * * *

           *       *       *       *       *       *       *

    (3)(A) Except as provided in [subparagraphs (B) and (C)] 
subparagraphs (B), (C), and (D)--
          (i)  * * *
    (B) Any person may petition the Administrator for an 
exemption from the requirements of subparagraph (A), and the 
Administrator may grant by rule such an exemption if the 
Administrator finds that--
          (i)  * * *

           *       *       *       *       *       *       *

An exemption granted under this subparagraph shall be subject 
to such terms and conditions as the Administrator may prescribe 
and shall be in effect for such period ([but not more than one 
year from the date it is granted] but not more than 1 year from 
the date it is granted, except as provided in subparagraph (D)) 
as the Administrator may prescribe.

           *       *       *       *       *       *       *

  (D) The Administrator may extend, if notified of an emergency 
situation, an exemption granted pursuant to subparagraph (B) 
for a period of not more than 30 days for the purpose of 
authorizing the safe, effective, and efficient shipment into 
the customs territory of the United States of polychlorinated 
biphenyls for purposes of their disposal, treatment, or storage 
in the customs territory of the United States.

           *       *       *       *       *       *       *

                                  
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