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113th Congress                                            Rept. 113-568
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 2




 September 8, 2014.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed


 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                          SUPPLEMENTAL REPORT

                        [To accompany H.R. 5078]

      [Including cost estimate of the Congressional Budget Office]

    This supplemental report shows the cost estimate of the 
Congressional Budget Office with respect to the bill (H.R. 
5078), as reported, which was not included in the report 
submitted by the Committee on Transportation and Infrastructure 
on July 31, 2014 (H. Rept. 113-568).


    In compliance with clause 3(c)(3) of rule XIII of the House 
of Representatives, the cost estimate prepared by the 
Congressional Budget Office and submitted pursuant to section 
402 of the Congressional Budget Act of 1974 and section 423 of 
the Unfunded Mandates Reform Act (Public Law 104-4) is as 

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, August 1, 2014.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5078, the Waters 
of the United States Regulatory Overreach Protection Act of 
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
                                    Douglas W. Elmendorf, Director.

H.R. 5078--Waters of the United States Regulatory Overreach Protection 
        Act of 2014

    H.R. 5078 would prohibit the Environmental Protection 
Agency (EPA) and the U.S. Army Corps of Engineers (Corps) from 
implementing or enforcing certain proposed regulations 
regarding the use of the nation's waters and wetlands. The 
legislation would affect direct spending because it would 
reduce fees collected by the Corps for issuing permits under 
the Clean Water Act (CWA). However, CBO estimates that the 
change in those fees would be negligible. Because the 
legislation would affect direct spending, pay-as-you-go 
procedures apply. Enacting H.R. 5078 would not affect revenues. 
In addition, CBO estimates that implementing H.R. 5078 would 
have no significant effect on discretionary spending by EPA or 
the Corps.
    Under the CWA, EPA and the Corps, along with the states, 
serve as co-regulators of the nation's waters. H.R. 5078 would 
prohibit the agencies from developing, finalizing, adopting, 
implementing, or enforcing the following:
           A proposed rule published in the Federal 
        Register on April 21, 2014, that defines the scope of 
        waters protected by the CWA;
           Draft Guidance Regarding Identification of 
        Waters Protected by the Clean Water Act, submitted to 
        the Office of Management and Budget on February 21, 
        2012, that clarifies how EPA and the Corps should 
        identify U.S. waters protected by the CWA and implement 
        two Supreme Court decisions on this issue; and
           An interpretive rule published in the 
        Federal Register on April 21, 2014, to clarify the 
        types of discharges of dredged or fill material 
        associated with certain agricultural conservation 
        practices that can be exempted from section 404 
    Finally, enacting this legislation would require EPA and 
the Corps to jointly consult with state regulatory officials to 
develop recommendations for an alternative regulatory proposal 
instead of the proposed rules and draft guidance; such 
recommendations would be provided to the Congress in a final 
    The regulatory changes proposed under current law would 
expand the area covered by federal regulations and the number 
of permits issued by the Corps under the CWA. The legislation 
would probably prevent, reduce, or delay such an expansion of 
federally regulated waters. However, because the amount of 
permit fees collected by the Corps is nominal, CBO estimates 
enacting H.R. 5078 would have an insignificant effect on direct 
spending over the 2015-2024 period.
    As with similar legislative proposals directing EPA to 
prepare alternatives to proposed rules, CBO estimates that 
enacting this legislation would have no significant net impact 
on federal spending. Under the bill, we expect that EPA 
resources that would have been used to develop and implement 
the currently proposed rules and draft guidance would be used 
to develop an alternative regulatory proposal and a report to 
the Congress.
    H.R. 5078 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act, and 
any costs incurred by state, local, or tribal governments would 
result from participation in a voluntary federal program.
    The CBO staff contact for this estimate is Susanne S. 
Mehlman. This estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.