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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.