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113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     113-574

======================================================================



 
                     EPS SERVICE PARTS ACT OF 2014

                                _______
                                

 September 8, 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. 5057]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 5057) to amend the Energy Policy and 
Conservation Act to permit exemptions for external power 
supplies from certain efficiency standards, and for other 
purposes, having considered the same, report favorably thereon 
without amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
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
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......     3
Committee Cost Estimate..........................................     3
Congressional Budget Office Estimate.............................     3
Federal Mandates Statement.......................................     4
Duplication of Federal Programs..................................     4
Disclosure of Directed Rule Makings..............................     5
Advisory Committee 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............     5

                          Purpose and Summary

    H.R. 5057, the ``EPS Service Parts Act of 2014,'' was 
introduced by Reps. Gardner (R-CO) and Tonko (D-NY) on July 10, 
2014. The legislation amends the Energy Policy and Conservation 
Act (EPCA) to permit exemptions for certain external power 
supply (EPS) service and spare parts from Department of Energy 
(DOE) efficiency standards. DOE is provided the authority to 
establish limited reporting requirements and modifications to 
prevent potential misuse of the exemption.

                  Background and Need for Legislation

    External power supplies are the AC power adapters that 
convert household electricity to much lower DC voltages needed 
to charge laptops, small desktops, tablets, networking 
products, and mobile phones. EPS are subject to Federal energy 
efficiency standards. However, spare and replacement parts for 
EPS were exempted from the original standards pursuant to the 
Energy Independence and Security Act of 2007 (EISA). 
Specifically, in EISA, Congress provided that from July 1, 2008 
through June 30, 2015, the DOE efficiency standards would not 
apply to EPS made available as service or spare replacement 
parts for end-use products manufactured before July 1, 2008. 
But Congress did not provide authority for DOE to create 
similar exemptions for spare parts when DOE updated the 
standards for external power supplies.
    DOE subsequently updated the EPS standards, issuing a Final 
Rule on February 10, 2014. During the comment period, a number 
of commenters urged DOE to extend the exemption provided in 
EISA for the 2008 through 2015 period. DOE responded to these 
comments by stating that current statute:

          [D]oes not grant DOE with the authority to expand or 
        extend the length of this exemption and Congress did 
        not grant DOE with the general authority to exempt any 
        already covered product from the requirements set by 
        Congress. Accordingly, DOE cannot grant the relief 
        sought by these commenters.

    H.R. 5057 provides a four-year exemption for such parts 
manufactured after the effective date of the new standards 
adopted by DOE on February 10, 2014, and also provides the 
Secretary discretionary authority to issue similar exemptions 
for service and spare parts in future amendments of the EPS 
standards. The legislation will allow continued production of 
replacement chargers and other EPS equipment for use with 
equipment manufactured before the effective date of the new EPS 
efficiency standards.

Supporters of the Legislation

    Supporters of H.R. 5057 include:
           Alliance to Save Energy,
           American Council for an Energy-Efficient 
        Economy, Association of Home Appliance Manufacturers,
           Consumers Electronic Association,
           Information Technology Industry Council,
           National Electrical Manufacturers 
        Association, and
           Natural Resources Defense Council.

                                Hearings

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

                        Committee Consideration

    On July 14 and 15, 2014, the Committee on Energy and 
Commerce met in open markup session. The Committee ordered H.R. 
5057 favorably reported to the House of Representatives, 
without amendment, by a voice vote.

                            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. 5057 reported. A motion by Mr. Upton to order H.R. 5057 
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 made findings that are 
reflected in this report.

         Statement of General Performance Goals and Objectives

    H.R. 5057 amends EPCA to permit exemptions for certain EPS 
service and spare parts from DOE efficiency standards. DOE 
maintains the authority to include limited reporting 
requirements and modifications to prevent potential misuse of 
the exemption.

   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. 
5057 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. 5057 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:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 23, 2014.
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. 5057, the EPS 
Service Parts Act of 2014.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 5057--EPS Service Parts Act of 2014 

    The Department of Energy (DOE) prescribes energy 
conservation standards for more than 50 categories of 
appliances and equipment. H.R. 5057 would exempt certain 
external power supplies from complying with standards set forth 
in a final rule published in February 2014. (An external power 
supply is a hardware component that converts household electric 
current into lower-voltage current used to operate devices such 
as laptops and smartphones.) The bill would authorize DOE to 
limit the applicability of that exemption if the Secretary 
finds that the exemption would result in a significant 
reduction in energy savings that would otherwise result if the 
February 2014 rule were fully implemented.
    CBO estimates that enacting H.R. 5057 would not 
significantly affect the federal budget. Based on information 
from DOE, we estimate that any costs incurred by the agency to 
carry out the bill's provisions would total less than $500,000 
annually and would be subject to the availability of 
appropriated funds. H.R. 5057 would not affect direct spending 
or revenues; therefore, pay-as-you-go procedures do not apply.
    H.R. 5057 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 Megan Carroll. 
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. 5057 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. 5057 
specifically directs no rule makings within the meaning of 5 
U.S.C. 551 to be completed.

                      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. Short title

    Section 1 provides the short title for the legislation, the 
``EPS Service Parts Act of 2014.''

Section 2. Exempt supplies

    Section 2 adds a new paragraph (5) to section 325(u) of 
ECPA that establishes a four-year exemption from the 2014 DOE 
efficiency standards for EPS service and spare parts, which 
would still be required to meet the 2007 standards.
    The provision permits DOE to establish limited reporting 
requirements that will allow DOE to detect potential misuse of 
the exemption. DOE is provided authority to limit the 
exemption, after notice and comment, if the Secretary 
determines the exemption is resulting in a significant 
reduction of the energy savings that otherwise would have been 
achieved from the standard.
    New section 325(u)(5)(B) provides DOE with authority to 
establish a similar service and spare parts exemption as part 
of any future amended EPS efficiency standard, along with 
authority for a limited reporting requirement.

         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 (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

ENERGY POLICY AND CONSERVATION ACT

           *       *       *       *       *       *       *



TITLE III--IMPROVING ENERGY EFFICIENCY

           *       *       *       *       *       *       *



 Part B--Energy Conservation Program for Consumer Products Other Than 
Automobiles

           *       *       *       *       *       *       *



                     energy conservation standards

  Sec. 325. (a) * * *

           *       *       *       *       *       *       *

  (u) Battery Charger and External Power Supply Electric Energy 
Consumption.--(1) * * *

           *       *       *       *       *       *       *

          (5) Exempt supplies.--
                  (A) February 10, 2014, rule.--
                          (i) In general.--An external power 
                        supply shall not be subject to the 
                        final rule entitled ``Energy 
                        Conservation Program: Energy 
                        Conservation Standards for External 
                        Power Supplies'', published at 79 Fed. 
                        Reg. 7845 (February 10, 2014), if the 
                        external power supply--
                                  (I) is manufactured during 
                                the period beginning on 
                                February 10, 2016, and ending 
                                on February 10, 2020;
                                  (II) is marked in accordance 
                                with the External Power Supply 
                                International Efficiency 
                                Marking Protocol, as in effect 
                                on February 10, 2016;
                                  (III) meets, where 
                                applicable, the standards under 
                                paragraph (3)(A), and has been 
                                certified to the Secretary as 
                                meeting International 
                                Efficiency Level IV or higher 
                                of the External Power Supply 
                                International Efficiency 
                                Marking Protocol, as in effect 
                                on February 10, 2016; and
                                  (IV) is made available by the 
                                manufacturer as a service part 
                                or a spare part for an end-use 
                                product that--
                                          (aa) constitutes the 
                                        primary load; and
                                          (bb) was manufactured 
                                        before February 10, 
                                        2016.
                          (ii) Reporting.--The Secretary may 
                        require manufacturers of products 
                        exempted pursuant to clause (i) to 
                        report annual total units shipped as 
                        service and spare parts that are not 
                        International Efficiency Level VI or 
                        higher.
                          (iii) Limitation of exemption.--The 
                        Secretary may issue a rule, after 
                        providing public notice and opportunity 
                        for public comment, to limit the 
                        applicability of the exemption 
                        established under clause (i) if the 
                        Secretary determines that the exemption 
                        is resulting in a significant reduction 
                        of the energy savings that would 
                        otherwise result from the final rule 
                        described in such clause.
                  (B) Amended standards.--
                          (i) In general.--The Secretary may 
                        exempt an external power supply from 
                        any amended standard under this 
                        subsection if the external power 
                        supply--
                                  (I) is manufactured within 
                                four years of the compliance 
                                date of the amended standard;
                                  (II) complies with applicable 
                                marking requirements adopted by 
                                the Secretary prior to the 
                                amendment;
                                  (III) meets the standards 
                                that were in effect prior to 
                                the amendment; and
                                  (IV) is made available by the 
                                manufacturer as a service part 
                                or a spare part for an end-use 
                                product that--
                                          (aa) constitutes the 
                                        primary load; and
                                          (bb) was manufactured 
                                        before the compliance 
                                        date of the amended 
                                        standard.
                          (ii) Reporting.--The Secretary may 
                        require manufacturers of a product 
                        exempted pursuant to clause (i) to 
                        report annual total units shipped as 
                        service and spare parts that do not 
                        meet the amended standard.

           *       *       *       *       *       *       *