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104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-189
_______________________________________________________________________


 
  COLLECTION OF FEES FOR TRIPLOID GRASS CARP CERTIFICATION INSPECTIONS

                                _______


 July 17, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 268]

      [Including cost estimate of the Congressional Budget Office]
    The Committee on Resources, to whom was referred the Act 
(S. 268) to authorize the collection of fees for expenses for 
triploid grass carp certification inspections, and for other 
purposes, having considered the same, report favorably thereon 
without amendment and recommend that the Act do pass.

                          purpose of the bill

    The purpose of S. 268 is to establish a fee-for-service 
system where the Secretary of the Interior may collect money 
from private fish producers for the cost of triploid grass carp 
certification inspections and to allow the U.S. Fish and 
Wildlife Service to retain those funds to be used for this 
inspection program.

                  background and need for legislation

    The grass carp, Ctenopharyngodon idella, is a nonindigenous 
species that feeds largely on plant matter. It was introduced 
to the United States to control aquatic vegetation that had 
become problematic for recreational and other activities in 
public and private waters. The grass carp has become a valuable 
aquacultural commodity, but remains a concern to State fish and 
wildlife conservation agencies because of its potential to 
alter habitats and impact native species when it is allowed to 
establish reproducing populations.
    To control grass carp populations without having to ban 
their use, many States only allow sterile grass carp to be 
used. The most common method of achieving sterility is by 
inducing triploidy, which is the production of three sets of 
chromosomes. States then require a scientifically credible 
third party to certify that triploidy has been properly induced 
before the fish are released. The U.S. Fish and Wildlife 
Service (USFWS) began its involvement in the certification of 
triploid grass carp in 1979. The program has now grown to more 
than 550 inspections per year for private growers in seven 
States whose products are shipped to some 30 States. In Fiscal 
Year 1994, USFWS spent over $70,000 on this program.
    During this time of declining budgets, USFWS has indicated 
that it can no longer pay the cost of providing this service to 
private producers. However, many States now specifically 
require USFWS certification of triploidy as a precondition to 
bringing grass carp into their State. Several of these States 
have expressed concern that discontinuation of this program 
will leave native stocks vulnerable to the impacts of a 
reproducing population of grass carp. Similarly, aquaculturists 
have expressed concern over the loss of continued access to the 
markets in these States if USFWS does not provide triploidy 
certification services, at least until a privatization of this 
function can be achieved in a manner acceptable to the States. 
In the interim, the aquaculture community has notified USFWS 
that private producers are willing to fully reimburse USFWS to 
offset certification costs.
    If USFWS terminates this program, it appears that producers 
in Arkansas and other States will be unable to sell their fish 
because buyers from other States will be unable to purchase 
grass carp without the triploidy certification from USFWS.

                            committee action

    S. 268 was introduced on January 24, 1995, by Senator Dale 
Bumpers of Arkansas, and passed the Senate on April 26, 1995. 
Identical legislation, H.R. 649, was introduced on January 24, 
1995, by Representative Blanche Lambert Lincoln. These bills 
were referred to the Committee on Resources, and within the 
Committee to the Subcommittee on Fisheries, Wildlife and 
Oceans.
    On June 8, 1995, the Subcommittee held a hearing on S. 268 
and H.R. 649. The Honorable Blanche Lambert Lincoln testified 
in support of this legislation. In her statement, Congresswoman 
Lincoln stated that ``this bill aptly illustrates the ability 
of the Federal Government and the private sector to work 
together to reach a mutually agreeable solution. Fish and 
Wildlife supports this public-private arrangement, but has 
determined that it cannot act accordingly through an 
administrative order or a Memorandum of Understanding. This 
arrangement must be established by statute.'' In addition, Mr. 
Gary Edwards, Assistant Director for Fisheries, USFWS, 
testified that ``the Administration supports H.R. 649 (S. 268), 
authorizing the collection of fees for expenses for triploid 
grass carp certification inspections.''
    On June 27, 1995, the Subcommittee on Fisheries, Wildlife 
and Oceans considered S. 268 in markup session and ordered it 
reported favorably, without amendment, to the Full Committee on 
Resources by voice vote.
    On July 12, 1995, the Full Committee on Resources met to 
consider S. 268. There were no amendments and the Committee 
ordered the bill favorably reported to the House of 
Representatives by voice vote, with a quorum present.

                      section-by-section analysis

Section 1. Collection of fees for triploid grass carp certification 
        inspection

    Subsection (a) allows the Secretary of the Interior to 
charge reasonable fees to cover expenses of the Federal 
Government for triploid grass carp certification inspections.
    Subsection (b) specifies that all fees collected are 
available to the Director of USFWS until expended.
    Subsection (c) requires that all fees collected are to be 
used by the Director of USFWS to carry out the inspection 
program.

            committee oversight findings and recommendations

    With respect to the requirements of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee on Resources' oversight findings and 
recommendations are reflected in the body of this report.

                     inflationary impact statement
    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee estimates that the 
enactment of S. 268 will have no significant inflationary 
impact on prices and costs in the operation of the national 
economy.

                        cost of the legislation

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
S. 268. However, clause 7(d) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                     compliance with house rule xi

    1. With respect to the requirement 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, S. 268 
does not contain any new budget authority, credit authority, or 
an increase or decrease in tax expenditures, or decrease in 
revenues. The bill does contain an increase in revenues and new 
spending authority.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of S. 268.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rule XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for S. 268 
from the Director of the Congressional Budget Office.

               congressional budget office cost estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 13, 1995.
Hon. Don Young,
Chairman, Committee on Resources,
U.S. House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed S. 268, an act to authorize the collection of fees for 
expenses for triploid grass carp certification inspections, and 
for other purposes, as ordered reported by the House Committee 
on Resources on July 12, 1995. CBO estimates that enacting S. 
268 would have no net impact on the federal budget. However, 
the legislation would affect direct spending, therefore, pay-
as-you-go procedures would apply.
    S. 268 would authorize the U.S. Fish and Wildlife Service 
(USFWS) to charge fees for inspection and certification of 
grass carp. (These fish are used by the aquaculture industry 
and others to control the growth of aquatic vegetation.) All 
such fees collected would have to be used for the inspection/
certification program, and would be available for that purpose 
without further appropriation.
    Based on information provided by the USFWS, we estimate 
that under S. 268 the federal government would collect and 
spend between $50,000 and $100,000 annually. Because new 
offsetting receipts and direct spending would be approximately 
equal each year, there would be no net impact on the federal 
budget.
    On March 29, 1995, CBO prepared a cost estimate for S. 268 
as ordered reported by the Senate Committee on Environment and 
Public Works on March 23, 1995. The two estimates are 
identical.
    Enacting S. 268 would have no impact on the budgets of 
state or local governments.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Deborah Reis.
            Sinerely,
                                             James L. Blum,
                                   (For June E. O'Neill, Director).

                        changes in existing law

    If enacted, S. 268 would make no changes in existing law.

                          departmental reports

    The Committee received a favorable report on S. 268 from 
the Department of the Interior on March 16, 1995. No other 
reports have been received on S. 268.

                   U.S. Department of the Interior,
                                   Office of the Secretary,
                                      Washington, DC, May 16, 1995.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC
    Dear Mr. Young: This responds to your request for the views 
of this Department on S. 268, as passed by the Senate, a bill 
to authorize the collection of fees for expenses to the Federal 
Government for triploid grass carp certification inspections.
    The Department has previously submitted identical views to 
you on H.R. 649, the identical House equivalent to S. 268, in 
our letter of March 2, 1995.
    The Administration supports enactment of S. 268.
    The Service continues strongly to support efforts to 
restore our Nation's ecosystems, particularly aquatic 
ecosystems. The Service also recognizes the needs of private 
aquaculture and the States in continuing triploid grass carp 
certification until a privatization of this function can be 
achieved in a manner acceptable to the States. However, during 
this time of declining budgets we can no longer pay the cost of 
providing triploid grass carp certification to private 
producers. Because private producers have notified the Service 
that they are willing, in the interim, to reimburse the Service 
for certification costs, we believe that enactment of S. 268 
will allow the Service to help private aquaculture maintain 
operations while strengthening the ability of State aquatic 
resource conservation agencies to protect native wild stocks.
    We have enclosed a brief memorandum providing further 
background on S. 268 and the triploid grass carp certification 
issue.
    The Office of Management and Budget advises that there is 
no objection to the presentation of this report from the 
standpoint of the Administration's program.
            Sincerely,
                           George T. Frampton, Jr.,
                                    Assistant Secretary for
                                       Fish and Wildlife and Parks.
    background, s. 268, collection of fees for triploid grass carp 
                             certification


    The grass carp, Ctenopharyngodon idella, is a nonindigenous 
species whose adult stage feeds largely on plant matter. It was 
introduced to the United States to control aquatic vegetation 
(often nonindigenous itself) that had become problematic for 
recreational and other activities in public and private waters. 
The grass carp quickly became a valuable aquacultural 
commodity, but remains a concern to State fish and wildlife 
conservation agencies because of its potential to alter 
habitats and impact native species if allowed to establish 
reproducing populations.
    In order to control grass carp populations without having 
to ban their use, many States allow only sterile grass carp to 
be used. The most common method of achieving sterility is by 
inducing triploidy (production of three sets of chromosomes). 
This means, however, that States need a scientifically credible 
third party to turn to for certification of triploidy. The U.S. 
Fish and Wildlife Service (Service) began its involvement in 
the certification of triploid grass carp in 1979. The program 
has now grown to more than 550 inspections per year for private 
growers in seven States whose products are shipped to some 30 
States. In FY 1994, over $70,000 was spent by the Service on 
this program.
    During this time of declining budgets, the Service can no 
longer pay the cost of providing this service to private 
producers. However, many States now specifically require 
Service certification of triploidy as a precondition to 
bringing grass carp into the State. Several of these States 
have expressed concern that discontinuation of this program 
will leave native stocks vulnerable to the impacts of a 
reproducing population of grass carp. Similarly, aquaculturists 
have expressed concern over the loss of continued access to the 
markets in these States if the Service does not provide 
triploidy certification services, at least until a 
privatization of this function can be achieved in a manner 
acceptable to the States. In the interim, the aquaculture 
community has notified the Service and Members of Congress that 
private producers are willing to reimburse the Service to 
offset certification costs.