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104th Congress                                            Rept. 104-262
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     Part 1
_______________________________________________________________________


 
                    EDIBLE OIL REGULATORY REFORM ACT

_______________________________________________________________________


               September 27, 1995.--Ordered to be printed

                                _______


Mr. Roberts, from the Committee on Agriculture, submitted the following

                              R E P O R T

                        [To accompany H.R. 436]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Agriculture, to whom was referred the bill 
(H.R. 436) to require the head of any Federal agency to 
differentiate between fats, oils, and greases of animal, 
marine, or vegetable origin, and other oils and greases, in 
issuing certain regulations, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Edible Oil Regulatory Reform Act''.

SEC. 2. DEFINITIONS.

    As used in this Act:
          (1) Animal fat.--The term ``animal fat'' means each type of 
        animal fat, oil, or grease (including fat, oil, or grease from 
        fish or a marine mammal), including any fat, oil, or grease 
        referred to in section 61(a)(2) of title 13, United States 
        Code.
          (2) Vegetable oil.--The term ``vegetable oil'' means each 
        type of vegetable oil (including vegetable oil from a seed, 
        nut, or kernel), including any vegetable oil referred to in 
        section 61(a)(1) of title 13, United States Code.

SEC. 3. DIFFERENTIATION AMONG FATS, OILS, AND GREASES.

    (a) In General.--In issuing or enforcing a regulation, an 
interpretation, or a guideline relating to a fat, oil, or grease under 
a Federal law, the head of a Federal agency shall--
          (1) differentiate between and establish separate categories 
        for--
                  (A)(i) animal fats; and
                  (ii) vegetable oils; and
                  (B) other oils, including petroleum oil; and
          (2) apply different standards to different classes of fat and 
        oil as provided in subsection (b).
    (b) Consideration.--In differentiating between the classes of 
animal fats and vegetable oils referred to in subsection (a)(1)(A) and 
the classes of oils described in subsection (a)(1)(B), the head of the 
Federal agency shall consider differences in physical, chemical, 
biological, and other properties, and in the effects on human health 
and the environment, of the classes.

SEC. 4. FINANCIAL RESPONSIBILITY.

    (a) Limits of Liability.--Section 1004(a)(1) of the Oil Pollution 
Act of 1990 (33 U.S.C. 2704(a)(1)) is amended by striking ``for a tank 
vessel,'' and inserting ``for a tank vessel (other than a tank vessel 
carrying animal fat or vegetable oil),''.
    (b) Financial Responsibility.--The first sentence of section 
1016(a) of the Act (33 U.S.C. 2716(a)) is amended by striking ``in the 
case of a tank vessel,'' and inserting ``in the case of a tank vessel 
(other than a tank vessel carrying animal fat or vegetable oil),''.

                           Brief Explanation

    The Edible Oil Regulatory Reform Act is designed to require 
Federal agencies in issuing or enforcing a regulation, an 
interpretation, or a guideline to differentiate between and 
establish separate categories for animal fats and vegetable 
oils and other oils, such as petroleum. Federal agencies should 
consider differences in the physical, chemical, biological, and 
other properties between classes of animal fats and vegetable 
oils and the classes of other oils, and in the effects on human 
health and the environment, of the classes. This Act limits the 
liability under the Oil Pollution Act of 1990 for a tank vessel 
carrying animal fat or vegetable oil to the greater of $600 per 
gross ton of the tank vessel or $500,000. The liability of the 
responsible party is limited to the same amount as the tank 
vessel and such responsible party must establish and maintain, 
in accordance with regulations promulgated by the Secretary of 
Transportation, evidence of financial responsibility sufficient 
to meet the removal costs and damages incident to an oil 
discharge.

                            Purpose and Need

    The purpose of the Edible Oil Regulatory Reform Act is 
intended to avoid the application of costly, inappropriate, and 
counterproductive regulatory requirements intended for 
petroleum and other oils to animal fats and vegetable oils. Due 
to the broad definition of oil in the Oil Pollution Act of 
1990, regulatory agencies have generally failed to 
differentiate between animal fats and vegetable oil and other 
oils, such as petroleum oil. As a result, regulatory agencies, 
despite scientific evidence and other data justifying 
differentiation, have proposed or issued regulations that 
regulate animal fats and vegetable oils to the same degree as 
toxic oils.
    Due to the failure of regulatory agencies to differentiate 
between fats, oils, or greases and other oils, this Act directs 
those agencies to differentiate between non-toxic animal fats 
and vegetable oils and all other oils, including toxic 
petroleum and non-petroleum oils, when promulgating oil 
pollution prevention and response regulations. In requiring 
differentiation, the Committee intends that the provisions of 
this legislation cover products made from animal fats and 
vegetable oils that contain no petroleum or toxic additives. 
Such differentiated animal fat and vegetable oil products 
include, but are not limited to, lubricants, greases, hydraulic 
fluids, solvents, and mono-alkyl esters used as fuel for diesel 
engines (biodiesel). These products are non-toxic, 
biodegradable, and should be treated no differently than animal 
fats and vegetable oils.

                           Section-by-Section

                         Section 1. Short title

    This section provides that this Act may be cited as the 
``Edible Oil Regulatory Reform Act''.

                         Section 2. Definitions

    Paragraph (1) of this section defines the term ``animal 
fat'' to mean each type animal fat, oil, or grease, including 
fat, oil or grease from fish or a marine mammal. Additionally, 
the term `animal fat'' includes any fat, oil, or grease 
referred to in section 61(a)(2) of title 13, United States 
Code.
    Paragraph (2) defines the term ``vegetable oil'' to mean 
each type of vegetable oil, including vegetable oil from a 
seed, nut, or kernel. Additionally, the term ``vegetable oil'' 
includes any vegetable oil referred to in section 61(a)(1) of 
title 13, United States Code.
    The Committee intends that the definition of the terms 
``animal fat'' and ``vegetable oil'' includes products made 
from animal fats and vegetable oils that contain no petroleum 
or toxic additives. Such animal fat and vegetable oil products 
include, but are not limited to, lubricants, greases, hydraulic 
fluids, solvents, and mono-alkyl esters used as fuel for diesel 
engines (biodiesel). These products are non-toxic, 
biodegradable, and should be treated no differently than animal 
fats and vegetable oils.

        Section 3. Differentiation Among Fats, Oils, And Greases

    Subsection (a) of this section requires a Federal agency in 
issuing or enforcing a regulation, an interpretation or a 
guideline relating to a fat, oil, or grease under a Federal 
law, to differentiate between and establish separate categories 
for animal fats and vegetable oils and other oils. The Federal 
agency shall also apply different standards to different 
classes of fats and oils.
    Subsection (b) provides that in differentiating between 
classes of animal fats and vegetable oils and other oils, the 
Federal agency shall consider differences in physical, 
chemical, biological, and other properties, and in the effects 
on human health and the environment of the classes.

                  Section 4. Financial Responsibility

    This section provides that under the Oil Pollution Act of 
1990, the liability for a tank vessel carrying animal fat or 
vegetable oil is limited to the greater of $600 per gross ton 
of the tank vessel or $500,000. The liability of the 
responsible party is limited to the same amount as the tank 
vessel and such responsible party must establish and maintain, 
in accordance with regulations promulgated by the Secretary of 
Transportation, evidence of financial responsibility sufficient 
to meet the removal costs and damages incident to an oil 
discharge.

                        Committee Consideration

    The Committee on Agriculture met, pursuant to notice, on 
September 20, 1995, a quorum being present, to consider H.R. 
436, the ``Edible Oil Regulatory Reform Act,'' and other 
pending business.
    Chairman Roberts called the meeting to order in the 
presence of a quorum and without objection discharged the 
Subcommittee on Department Operations, Nutrition, and Foreign 
Agriculture from further consideration of H.R. 436. Mr. Ewing 
was then recognized for an explanation of the bill.
    After an explanation of the bill and a brief discussion. 
Mr. Ewing offered an Amendment in the Nature of a Substitute, 
to H.R. 436, which was adopted by a voice vote. Mr. Ewing then 
moved that the bill, as amended, be favorably reported to the 
House for consideration on the corrections calendar. That 
motion, without objection, being adopted by a voice vote, Mr. 
Emerson who moved that the Committee authorize the Chairman to 
offer such motions as may be necessary in the House to go to 
conference with the Senate on the bill, H.R. 436, or similar 
Senate bills. The motion was also adopted by a voice vote.
    The Committee then proceeded to other items of business.

                   Reporting the Bill--Rollcall Votes

    In compliance with clause 2(l)(2) of rule XI on the House 
of Representatives, the bill was reported, as amended, with a 
quorum actually present by a voice vote. There was no motion or 
request for a recorded vote.

                        Administration Position

    At the time of the filing of this report, the Committee had 
not received a report from the U.S. Department of Agriculture 
concerning H.R. 436, as amended, to require the head of any 
Federal agency to differentiate between fats, oils, and greases 
of animal, marine, or vegetable origin, and other oils and 
greases, in issuing certain regulations, and for other 
purposes.

          Budget Act Compliance (section 308 and section 403)

    The provisions of clause 2(l)(3)(B) of rule XI of the Rules 
of the House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974 (relating to estimates of new 
budget authority, new spending authority, or new credit 
authority, or increased or decreased revenues or tax 
expenditures) are not considered applicable. The estimate and 
comparison required to be prepared by the Director of the 
Congressional Budget Office under clause 2(l)(C)(3) of rule XI 
of the Rules of the House of Representatives and section 403 of 
the Congressional Budget Act of 1974 submitted to the Committee 
prior to the filing of this report are as follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 27, 1995.
Hon. Pat Roberts,
Chairman, Committee on Agriculture,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed H.R. 436, the Edible Oil Regulatory Reform Act, as 
ordered reported by the House Committee on Agriculture on 
September 20, 1995. The bill defines animal fat and vegetable 
oil, and would require the head of a federal agency to apply 
different regulatory standards to classes of fats and vegetable 
oils and other classes of other oils, including petroleum oil, 
based on physical, chemical and other properties. The bill 
would also change financial responsibility requirements for 
tank vessels carrying animal fat or vegetable oil. CBO 
estimates that enacting H.R. 436 would not result in any 
significant cost to the federal government, and would not 
affect the budgets of state or local governments.
    Enactment of H.R. 436 would not affect direct spending or 
receipts. Therefore, pay-as-you-go procedures would not apply 
to the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is David Hull.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee estimates that 
enactment of H.R. 436, as amended, will have no inflationary 
impact on the national economy.

                          Oversight Statement

    No summary of oversight findings and recommendations made 
by the Committee on Government Reform and Oversight under 
clause 2(l)(3)(D) of rule XI of the Rules of the House of 
Representatives was available to the Committee with reference 
to the subject matter specifically addressed by H.R. 436, as 
amended.
    No specific oversight activities other than the hearings 
detailed in this report were conducted by the Committee within 
the definition of clause 2(b)(1) of rule X of the Rules of the 
House of Representatives.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3 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):

                       OIL POLLUTION ACT OF 1990

          * * * * * * *

           TITLE I--OIL POLLUTION LIABILITY AND COMPENSATION

          * * * * * * *

SEC. 1004. LIMITS ON LIABILITY.

    (a) General Rule.--Except as otherwise provided in this 
section, the total of the liability of a responsible party 
under section 1002 and any removal costs incurred by, or on 
behalf of, the responsible party, with respect to each incident 
shall not exceed--
          (1) [for a tank vessel,] for a tank vessel (other 
        than a tank vessel carrying animal fat or vegetable 
        oil), the greater of--
                  (A) * * *
          * * * * * * *

SEC. 1016. FINANCIAL RESPONSIBILITY.

    (a) Requirement.--The responsible party for--
          (1) any vessel over 300 gross tons (except a non-
        self-propelled vessel that does not carry oil as cargo 
        or fuel) using any place subject to the jurisdiction of 
        the United States; or
          (2) any vessel using the waters of the exclusive 
        economic zone to transship or lighter oil destined for 
        a place subject to the jurisdiction of the United 
        States;
shall establish and maintain, in accordance with regulations 
promulgated by the Secretary, evidence of financial 
responsibility sufficient to meet the maximum amount of 
liability to which, [in the case of a tank vessel,] in the case 
of a tank vessel (other than a tank vessel carrying animal fat 
or vegetable oil), the responsible party could be subject under 
section 1004 (a)(1) or (d) of this Act, or to which, in the 
case of any other vessel, the responsible party could be 
subjected under section 1004 (a)(2) or (d), in a case where the 
responsible party would be entitled to limit liability under 
that section. If the responsible party owns or operates more 
than one vessel, evidence of financial responsibility need be 
established only to meet the amount of the maximum liability 
applicable to the vessel having the greatest maximum liability.
          * * * * * * *