[House Report 112-654]
[From the U.S. Government Publishing Office]
112th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 112-654
======================================================================
HAZARDOUS WASTE ELECTRONIC MANIFEST ESTABLISHMENT ACT
_______
September 10, 2012.--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 S. 710]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (S. 710) to amend the Solid Waste Disposal Act to
direct the Administrator of the Environmental Protection Agency
to establish a hazardous waste electronic manifest system,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 5
Background and Need for Legislation.............................. 6
Hearings......................................................... 7
Committee Consideration.......................................... 7
Commitee Votes................................................... 7
Committee Oversight Findings..................................... 7
Statement of General Performance, Goals and Objectives........... 7
New Budget Authority, Entitlement Authority, and Tax Expenditures 8
Earmarks......................................................... 8
Committee Cost Estimate.......................................... 8
Congressional Budget Office Estimate............................. 8
Federal Mandates Statement....................................... 11
Advisory Committee Statement..................................... 11
Applicability to Legislative Branch.............................. 11
Section-by-Section Analysis of Legislation....................... 11
Changes in Existing Law Made by the Bill, as Reported............ 13
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Hazardous Waste Electronic Manifest
Establishment Act''.
SEC. 2. HAZARDOUS WASTE ELECTRONIC MANIFEST SYSTEM.
(a) In General.--Subtitle C of the Solid Waste Disposal Act (42
U.S.C. 6921 et seq.) is amended by adding at the end the following:
``SEC. 3024. HAZARDOUS WASTE ELECTRONIC MANIFEST SYSTEM.
``(a) Definitions.--In this section:
``(1) Board.--The term `Board' means the Hazardous Waste
Electronic Manifest System Advisory Board established under
subsection (f).
``(2) Fund.--The term `Fund' means the Hazardous Waste
Electronic Manifest System Fund established by subsection (d).
``(3) Person.--The term `person' includes an individual,
corporation (including a Government corporation), company,
association, firm, partnership, society, joint stock company,
trust, municipality, commission, Federal agency, State,
political subdivision of a State, or interstate body.
``(4) System.--The term `system' means the hazardous waste
electronic manifest system established under subsection (b).
``(5) User.--The term `user' means a hazardous waste
generator, a hazardous waste transporter, an owner or operator
of a hazardous waste treatment, storage, recycling, or disposal
facility, or any other person that--
``(A) is required to use a manifest to comply with
any Federal or State requirement to track the shipment,
transportation, and receipt of hazardous waste or other
material that is shipped from the site of generation to
an off-site facility for treatment, storage, disposal,
or recycling; and
``(B)(i) elects to use the system to complete and
transmit an electronic manifest format; or
``(ii) submits to the system for data processing
purposes a paper copy of the manifest (or data from
such a paper copy), in accordance with such regulations
as the Administrator may promulgate to require such a
submission.
``(b) Establishment.--Not later than 3 years after the date of
enactment of this section, the Administrator shall establish a
hazardous waste electronic manifest system that may be used by any
user.
``(c) User Fees.--
``(1) In general.--In accordance with paragraph (4), the
Administrator may impose on users such reasonable service fees
as the Administrator determines to be necessary to pay costs
incurred in developing, operating, maintaining, and upgrading
the system, including any costs incurred in collecting and
processing data from any paper manifest submitted to the system
after the date on which the system enters operation.
``(2) Collection of fees.--The Administrator shall--
``(A) collect the fees described in paragraph (1)
from the users in advance of, or as reimbursement for,
the provision by the Administrator of system-related
services; and
``(B) deposit the fees in the Fund.
``(3) Fee structure.--
``(A) In general.--The Administrator, in consultation
with information technology vendors, shall determine
through the contract award process described in
subsection (e) the fee structure that is necessary to
recover the full cost to the Administrator of providing
system-related services, including--
``(i) contractor costs relating to--
``(I) materials and supplies;
``(II) contracting and consulting;
``(III) overhead;
``(IV) information technology
(including costs of hardware, software,
and related services);
``(V) information management;
``(VI) collection of service fees;
``(VII) reporting and accounting; and
``(VIII) project management; and
``(ii) costs of employment of direct and
indirect Government personnel dedicated to
establishing, managing, and maintaining the
system.
``(B) Adjustments in fee amount.--
``(i) In general.--The Administrator, in
consultation with the Board, shall increase or
decrease the amount of a service fee determined
under the fee structure described in
subparagraph (A) to a level that will--
``(I) result in the collection of an
aggregate amount for deposit in the
Fund that is sufficient and not more
than reasonably necessary to cover
current and projected system-related
costs (including any necessary system
upgrades); and
``(II) minimize, to the maximum
extent practicable, the accumulation of
unused amounts in the Fund.
``(ii) Exception for initial period of
operation.--The requirement described in clause
(i)(II) shall not apply to any additional fees
that accumulate in the Fund, in an amount that
does not exceed $2,000,000, during the 3-year
period beginning on the date on which the
system enters operation.
``(iii) Timing of adjustments.--Adjustments
to service fees described in clause (i) shall
be made--
``(I) initially, at the time at which
initial development costs of the system
have been recovered by the
Administrator such that the service fee
may be reduced to reflect the
elimination of the system development
component of the fee; and
``(II) periodically thereafter, upon
receipt and acceptance of the findings
of any annual accounting or auditing
report under subsection (d)(3), if the
report discloses a significant
disparity for a fiscal year between the
funds collected from service fees under
this subsection for the fiscal year and
expenditures made for the fiscal year
to provide system-related services.
``(4) Crediting and availability of fees.--Fees authorized
under this section shall be collected and available for
obligation only to the extent and in the amount provided in
advance in appropriations Acts.
``(d) Hazardous Waste Electronic Manifest System Fund.--
``(1) Establishment.--There is established in the Treasury of
the United States a revolving fund, to be known as the
`Hazardous Waste Electronic Manifest System Fund', consisting
of such amounts as are deposited in the Fund under subsection
(c)(2)(B).
``(2) Expenditures from fund.--
``(A) In general.--Only to the extent provided in
advance in appropriations Acts, on request by the
Administrator, the Secretary of the Treasury shall
transfer from the Fund to the Administrator amounts
appropriated to pay costs incurred in developing,
operating, maintaining, and upgrading the system under
subsection (c).
``(B) Use of funds by administrator.--Fees collected
by the Administrator and deposited in the Fund under
this section shall be available to the Administrator
subject to appropriations Acts for use in accordance
with this section without fiscal year limitation.
``(C) Oversight of funds.--The Administrator shall
carry out all necessary measures to ensure that amounts
in the Fund are used only to carry out the goals of
establishing, operating, maintaining, upgrading,
managing, supporting, and overseeing the system.
``(3) Accounting and auditing.--
``(A) Accounting.--For each 2-fiscal-year period, the
Administrator shall prepare and submit to the Committee
on Environment and Public Works and the Committee on
Appropriations of the Senate and the Committee on
Energy and Commerce and the Committee on Appropriations
of the House of Representatives a report that
includes--
``(i) an accounting of the fees paid to the
Administrator under subsection (c) and
disbursed from the Fund for the period covered
by the report, as reflected by financial
statements provided in accordance with--
``(I) the Chief Financial Officers
Act of 1990 (Public Law 101-576; 104
Stat. 2838) and amendments made by that
Act; and
``(II) the Government Management
Reform Act of 1994 (Public Law 103-356;
108 Stat. 3410) and amendments made by
that Act; and
``(ii) an accounting describing actual
expenditures from the Fund for the period
covered by the report for costs described in
subsection (c)(1).
``(B) Auditing.--
``(i) In general.--For the purpose of section
3515(c) of title 31, United States Code, the
Fund shall be considered a component of an
Executive agency.
``(ii) Components of audit.--The annual audit
required in accordance with sections 3515(b)
and 3521 of title 31, United States Code, of
the financial statements of activities carried
out using amounts from the Fund shall include
an analysis of--
``(I) the fees collected and
disbursed under this section;
``(II) the reasonableness of the fee
structure in place as of the date of
the audit to meet current and projected
costs of the system;
``(III) the level of use of the
system by users; and
``(IV) the success to date of the
system in operating on a self-
sustaining basis and improving the
efficiency of tracking waste shipments
and transmitting waste shipment data.
``(iii) Federal responsibility.--The
Inspector General of the Environmental
Protection Agency shall--
``(I) conduct the annual audit
described in clause (ii); and
``(II) submit to the Administrator a
report that describes the findings and
recommendations of the Inspector
General resulting from the audit.
``(e) Contracts.--
``(1) Authority to enter into contracts funded by service
fees.--The Administrator may enter into 1 or more information
technology contracts with entities determined to be appropriate
by the Administrator (referred to in this subsection as
`contractors') for the provision of system-related services.
``(2) Term of contract.--A contract awarded under this
subsection shall have a term of not more than 10 years.
``(3) Achievement of goals.--The Administrator shall ensure,
to the maximum extent practicable, that a contract awarded
under this subsection--
``(A) is performance-based;
``(B) identifies objective outcomes; and
``(C) contains performance standards that may be used
to measure achievement and goals to evaluate the
success of a contractor in performing under the
contract and the right of the contractor to payment for
services under the contract, taking into consideration
that a primary measure of successful performance shall
be the development of a hazardous waste electronic
manifest system that--
``(i) meets the needs of the user community
(including States that rely on data contained
in manifests);
``(ii) attracts sufficient user participation
and service fee revenues to ensure the
viability of the system;
``(iii) decreases the administrative burden
on the user community; and
``(iv) provides the waste receipt data
applicable to the biennial reports required by
section 3002(a)(6).
``(4) Payment structure.--Each contract awarded under this
subsection shall include a provision that specifies--
``(A) the service fee structure of the contractor
that will form the basis for payments to the
contractor; and
``(B) the fixed-share ratio of monthly service fee
revenues from which the Administrator shall reimburse
the contractor for system-related development,
operation, and maintenance costs.
``(5) Cancellation and termination.--
``(A) In general.--If the Administrator determines
that sufficient funds are not made available for the
continuation in a subsequent fiscal year of a contract
entered into under this subsection, the Administrator
may cancel or terminate the contract.
``(B) Negotiation of amounts.--The amount payable in
the event of cancellation or termination of a contract
entered into under this subsection shall be negotiated
with the contractor at the time at which the contract
is awarded.
``(6) No effect on ownership.--Regardless of whether the
Administrator enters into a contract under this subsection, the
system shall be owned by the Federal Government.
``(f) Hazardous Waste Electronic Manifest System Advisory Board.--
``(1) Establishment.--Not later than 3 years after the date
of enactment of this section, the Administrator shall establish
a board to be known as the `Hazardous Waste Electronic Manifest
System Advisory Board'.
``(2) Composition.--The Board shall be composed of 9 members,
of which--
``(A) 1 member shall be the Administrator (or a
designee), who shall serve as Chairperson of the Board;
and
``(B) 8 members shall be individuals appointed by the
Administrator--
``(i) at least 2 of whom shall have expertise
in information technology;
``(ii) at least 3 of whom shall have
experience in using or represent users of the
manifest system to track the transportation of
hazardous waste under this subtitle (or an
equivalent State program); and
``(iii) at least 3 of whom shall be a State
representative responsible for processing those
manifests.
``(3) Duties.--The Board shall meet annually to discuss,
evaluate the effectiveness of, and provide recommendations to
the Administrator relating to, the system.
``(g) Regulations.--
``(1) Promulgation.--
``(A) In general.--Not later than 1 year after the
date of enactment of this section, the Administrator
shall promulgate regulations to carry out this section.
``(B) Inclusions.--The regulations promulgated
pursuant to subparagraph (A) may include such
requirements as the Administrator determines to be
necessary to facilitate the transition from the use of
paper manifests to the use of electronic manifests, or
to accommodate the processing of data from paper
manifests in the electronic manifest system, including
a requirement that users of paper manifests submit to
the system copies of the paper manifests for data
processing purposes.
``(C) Requirements.--The regulations promulgated
pursuant to subparagraph (A) shall ensure that each
electronic manifest provides, to the same extent as
paper manifests under applicable Federal and State law,
for--
``(i) the ability to track and maintain legal
accountability of--
``(I) the person that certifies that
the information provided in the
manifest is accurately described; and
``(II) the person that acknowledges
receipt of the manifest;
``(ii) if the manifest is electronically
submitted, State authority to access paper
printout copies of the manifest from the
system; and
``(iii) access to all publicly available
information contained in the manifest.
``(2) Effective date of regulations.--Any regulation
promulgated by the Administrator under paragraph (1) and in
accordance with section 3003 relating to electronic manifesting
of hazardous waste shall take effect in each State as of the
effective date specified in the regulation.
``(3) Administration.--The Administrator shall carry out
regulations promulgated under this subsection in each State
unless the State program is fully authorized to carry out such
regulations in lieu of the Administrator.
``(h) Requirement of Compliance With Respect to Certain States.--In
any case in which the State in which waste is generated, or the State
in which waste will be transported to a designated facility, requires
that the waste be tracked through a hazardous waste manifest, the
designated facility that receives the waste shall, regardless of the
State in which the facility is located--
``(1) complete the facility portion of the applicable
manifest;
``(2) sign and date the facility certification; and
``(3) submit to the system a final copy of the manifest for
data processing purposes.
``(i) Authorization for Start-up Activities.--There are authorized to
be appropriated $2,000,000 for each of fiscal years 2013 through 2015
for start-up activities to carry out this section, to be offset by
collection of user fees under subsection (c) such that all such
appropriated funds are offset by fees as provided in subsection (c).''.
(b) Conforming Amendment.--The table of contents of the Solid Waste
Disposal Act (42 U.S.C. 6901) is amended by inserting at the end of the
items relating to subtitle C the following:
``Sec. 3024. Hazardous waste electronic manifest system.''.
Purpose and Summary
This legislation amends Subtitle C of the Solid Waste
Disposal Act, otherwise known as the Resource Conservation and
Recovery Act (RCRA), to direct the Administrator of the
Environmental Protection Agency (EPA) to establish a hazardous
waste electronic manifest system (system). The legislation
requires EPA to create, through the use of one or more
performance-based and goal-oriented contracts with outside
vendors, a system that may be used at the option of any entity
required to complete or file a hazardous waste manifest. S. 710
also authorizes EPA to establish and collect fees paid by users
of the system, and deposit those fees into a fund solely to pay
the costs of the system. The bill also requires EPA to create a
Hazardous Waste Electronic Manifest System Governing Board to
evaluate the manifest system and to periodically report on the
financial status of the fund to Congress. In addition, the bill
requires EPA's Inspector General to perform an annual audit of
the system, including an evaluation of the reasonableness of
the fees.
The amendment adopted by the Committee allows the fees to
be collected and obligated, in accordance with appropriations
acts and only for use on the system. It also authorizes start-
up activities to be funded in advance of collection of fees,
such that all program costs are offset by fee collection. By
contrast, S. 710, as passed by the Senate, provides for
mandatory spending and fee collection not subject to
appropriations acts. Finally, the amendment deletes certain
contract details specified in S. 710 as approved by the Senate.
Background and Need for Legislation
Subtitle C of RCRA establishes a Federal program to
regulate hazardous waste management and disposal. Section 3002
of RCRA requires use of a manifest system to assure that
hazardous waste generated is designated for treatment, storage,
or disposal in, and arrives at, treatment, storage, or disposal
facilities. Since 1980, EPA has required use of the Hazardous
Waste Manifest System (HWMS), a set of multi-copy paper forms,
reports, and procedures designed to track hazardous waste from
the time it leaves the facility where it was generated until it
reaches the off-site waste management facility that will store,
treat, or dispose of it.
In order to verify that waste has been properly delivered,
and that no waste is lost or unaccounted for in the process,
paper copies of the manifest must accompany the waste as it is
transported. Once the waste reaches its destination, the
receiving facility must mail a signed paper copy of the
manifest to the generator to be kept on file confirming that
the waste has been received by the designated facility.\1\ Some
States have additional submission mandates.
---------------------------------------------------------------------------
\1\http://www.epa.gov/wastes/hazard/transportation/manifest/
index.htm.
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EPA requires that the manifest contain information on the
type and quantity of the waste being transported, instructions
for handling the waste, and signatures for all parties involved
in the disposal process, from original generator to final
disposer.
In the event of an emergency or release of hazardous waste
the manifest can provide response personnel with a variety of
useful information, including data on the hazardous waste's
potential to threaten human health and the environment.
Notwithstanding the 2006 changes, EPA has stated that the
paper hazardous waste manifest burden constitutes the most
expensive paperwork requirement EPA imposes under Subtitle C of
the RCRA. The EPA estimates that the cost of the paperwork
burden on States and private entities from manifests to be from
$193 million to over $400 million annually.
Besides eliminating most of the manual processing steps
involved with the paper-driven system, EPA also believes an
electronic system will produce better quality data, provide
nearly real-time tracking, serve as a single point of contact
for both Federal and State required manifest data reporting,
and reduce the need for onsite labor intensive inspection of
paper records.\2\
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\2\EPA testimony before Subcommittee on Environment and the
Economy, June 21, 2012.
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Hearings
On June 21, 2012, the Subcommittee on Environment and the
Economy held a hearing entitled ``Electronic Submissions of
Hazardous Waste Manifests--Modernizing for the 21st Century.''
The Subcommittee received testimony from Suzanne Rudzinski,
Director, Office of Resource Conservation and Recovery, Office
of Solid Waste and Emergency Response, U.S. Environmental
Protection Agency; Lisa Silvia, Senior Waste Inspector,
Virginia Department of Environmental Quality, on behalf of the
Association of State and Territorial Solid Waste Management
Officials; and David Case, Executive Director, Environmental
Technology Council. Witnesses discussed S. 710 and EPA detailed
the new statutory authority it would need to establish an
electronic system.
Committee Consideration
S. 710 was referred to the Committee on Energy and
Commerce, and Representative John Shimkus, Chairman of the
Subcommittee on Environment and the Economy, distributed an
amendment in the nature of a substitute to S. 710 on July 24,
2012.
On July 26, 2012, the Subcommittee on Environment and the
Economy met in open markup session to consider S. 710. Only one
amendment, Representative Shimkus' amendment in the nature of a
substitute, was offered, and it was adopted by a voice vote.
The Subcommittee on Environment and the Economy ordered S. 710
favorably reported, as amended, to the full Committee by a
voice vote.
On July 31, 2012, the Committee on Energy and Commerce met
in open markup session to consider S. 710, as amended by the
Subcommittee on Environment and the Economy. No amendments were
offered to S. 710, and the Committee ordered S. 710 favorably
reported to the House, as amended.
Committee Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, S. 710 was reported by voice vote
with a majority quorum present. There was no request for a
recorded 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
S. 710, the ``Hazardous Waste Electronic Manifest
Establishment Act,'' facilitates creation of a system for
electronic submission and tracking of hazardous waste manifests
pursuant to Subtitle C of RCRA. The legislation requires EPA to
create, through the use of one or more performance-based and
goal-oriented contracts with outside vendors, a system that may
be used by any entity required to complete or file a manifest.
Subject to appropriations, S. 710 authorizes EPA to establish
and collect a user fee to pay for building, operating,
upgrading, and maintaining the system. S. 710 also requires EPA
to create a Hazardous Waste Electronic Manifest System Board to
evaluate the manifest system; periodically report on the
financial status of the fund to Congress; and have EPA's
Inspector General provide an accounting of the actual
expenditures from the fund.
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 S.
710, the ``Hazardous Waste Electronic Manifest Establishment
Act,'' as amended by the Committee on Energy and Commerce,
would result in no new or increased budget authority, no
entitlement authority, and no tax expenditures. Revenues
collected from system users would fully offset new budget
authority.
Earmarks
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 S. 710, the ``Hazardous Waste Electronic Manifest
Establishment Act,'' as amended by the Committee on Energy and
Commerce, contains no earmarks, limited tax benefits, or
limited tariff benefits.
Committee Cost 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.
August 21, 2012.
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 S. 710, the Hazardous
Waste Electronic Manifest Establishment Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susanne S.
Mehlman.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
S. 710--Hazardous Waste Electronic Manifest Establishment Act
Summary: S. 710 would direct the Environmental Protection
Agency (EPA) to establish an electronic manifest system to
track the handling of hazardous waste. This legislation would
authorize the appropriation of $6 million over the 2013-2015
period for EPA to establish the system. In addition, subject to
provisions in future appropriations acts, this legislation
would authorize EPA to collect user fees to offset the cost of
developing, operating, and maintaining the system.
Under current law, individuals who handle hazardous waste
must prepare a paper manifest that completely documents how
hazardous waste is disposed of from the time it is generated
through treatment, storage, and disposal. Under S. 710,
generators and transporters of hazardous waste and the owners
and operators of facilities that treat, store, or dispose of
hazardous waste could elect to use the proposed electronic
manifest system or the existing paper system.
Subject to appropriation of the necessary amounts, CBO
estimates that over the 2013-2017 period, EPA would spend about
$15 million to create the electronic manifest system. We also
estimate that EPA would collect user fees totaling $12 million
over that same period. Thus, CBO estimates that implementing
this legislation would have a net cost of $3 million over the
2013-2017 period. Pay-as-you-go procedures do not apply to S.
710 because the legislation would not affect direct spending or
revenues.
S. 710 would impose intergovernmental and private-sector
mandates, as defined in the Unfunded Mandates Reform Act
(UMRA), on facilities that handle hazardous waste. CBO
estimates that the cost of the mandates would fall below the
annual thresholds established in UMRA ($73 million for
intergovernmental mandates and $146 million for private-sector
mandates in 2012, adjusted annually for inflation).
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 710 is shown in the following table. The
costs of this legislation fall within budget function 300
(natural resources and environment).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2013 2014 2015 2016 2017 2013-2017
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Gross Spending:
Estimated Authorization Level....................... 3 3 3 3 3 15
Estimated Outlays................................... 3 3 3 3 3 15
Fees:
Estimated Authorization Level....................... 0 0 0 -6 -6 -12
Estimated Outlays................................... 0 0 0 -6 -6 -12
Net Spending:
Estimated Authorization Level....................... 3 3 3 -3 -3 3
Estimated Outlays................................... 3 3 3 -3 -3 3
----------------------------------------------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO assumes that S.
710 will be enacted near the beginning of fiscal year 2013,
that the necessary amounts to implement this legislation will
be appropriated for each year, and the authority to collect
fees will be provided.
Gross spending
S. 710 would authorize the appropriation of $6 million over
the 2013-2015 period for EPA to establish an electronic
manifest system to track the handling of hazardous waste. That
amount would cover contract costs to develop the manifest
system. Based on information from EPA, CBO estimates that EPA
would require additional appropriations of $3 million over the
2013-2015 period to oversee the system's development. EPA's
administrative expenses include outreach; regulatory
development; system and security planning, procurement, and
project management. After 2015, we estimate that EPA would
spend about $3 million annually to operate and maintain the
system. Thus, CBO estimates that implementing this legislation
would have a gross cost of $15 million over the 2013-2017
period, assuming appropriation of the specified and estimated
amounts.
Fees
Under S. 710, EPA would be authorized, subject to
provisions in future appropriations acts, to collect fees to
offset the cost of establishing, operating, and maintaining the
new system. Based on information from EPA, CBO expects that the
agency would not collect fees before the new system is in use,
beginning in 2016. CBO estimates that EPA would collect $6
million in each of 2016, 2017, and 2018 to recover its
operating costs in those years and the initial amounts spent to
develop the system over the 2012-2015 period. We expect that
the agency would reduce fees once the system development costs
were recouped.
Based on information from EPA, CBO estimates that about
114,000 users would obtain electronic manifests in 2016, with
participation reaching 227,000 users in subsequent years. We
estimate that, under this legislation, EPA would collect annual
fees from those participants totaling $12 million over the
2013-2017 period. After 2018, CBO estimates that fees would be
reduced to match the annual operating and maintenance costs
associated with the tracking system.
Intergovernmental and private-sector impact: S. 710
contains intergovernmental and private-sector mandates, as
defined in UMRA, on facilities that handle hazardous waste. CBO
estimates that the cost of the mandates would fall below the
annual thresholds established in UMRA ($73 million for
intergovernmental mandates and $146 million for private-sector
mandates in 2012, adjusted annually for inflation).
Mandates
The act would require waste management facilities that
receive hazardous waste generated in or shipped through other
states to submit copies of shipment manifests to EPA. The act
also would authorize EPA to require those facilities and any
hazardous waste management facilities that use a paper system
to submit a copy of the manifest to the electronic system
established under the act. The affected facilities would
primarily be private entities but could include municipal and
county landfills. Because the cost to complete a manifest and
to submit a paper copy to the electronic system would be
minimal, CBO estimates that the cost to comply with the
mandates would be small.
The act also would authorize EPA to establish fees for
users of the electronic manifest system, which could include
those facilities that are required to submit a copy of a paper
manifest. CBO estimates that such fees would total $6 million
or less annually beginning in fiscal year 2016.
Other Impacts
CBO expects that users of the electronic manifest system
created by the act could save money in comparison to using a
paper system. Users include generators, transporters, and
recipients of hazardous waste, as well as state agencies that
collect copies of manifests.
Previous CBO cost estimate: On May 6, 2011, CBO transmitted
a cost estimate for S. 710, the Hazardous Waste Electronic
Manifest Establishment Act, as ordered reported by the Senate
Committee on Environment and Public Works on April 15, 2011.
Both versions of S. 710 would require that EPA establish an
electronic manifest system to track hazardous waste, but the
funding mechanisms for the systems provided in each are
different. The two CBO cost estimates reflect those
differences.
Estimate prepared by: Federal costs: Susanne S. Mehlman;
Impact on state, local, and tribal governments: Melissa
Merrell; Impact on the private sector: Amy Petz.
Estimate 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.
Advisory Committee Statement
S. 710, the ``Hazardous Waste Electronic Manifest
Establishment Act,'' as amended by the Committee on Energy and
Commerce, creates one advisory committee, which is within the
meaning and requirements of section 5(b) of the Federal
Advisory Committee Act.
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 Legislation
S. 710, as amended, adds a new section 3024 to Subtitle C
of the Solid Waste Disposal Act. New section 3024 contains nine
subsections, as follows:
Subsection (a) defines ``Board,'' ``Fund,'' ``System,''
``Person,'' and ``User,'' each as used in new Section 3024.
Subsection (b) requires that, not later than three years
after enactment, the EPA Administrator establish a system that
may be used by any user.
Subsection (c) authorizes the Administrator, in accordance
with appropriations acts, to impose reasonable service fees
necessary to pay costs incurred in developing, operating,
maintaining, and upgrading the system. Subparagraph (c)(3)(B)
requires the Administrator, in consultation with the Board
established in Subsection (f), to increase or decrease the
amount of the service fee to a level sufficient and not more
than reasonably necessary to cover current and projected
system-related costs, and to minimize accumulation of unused
amounts in the Fund. The Committee amendment added the
requirement that fees be adjusted to ensure that they are ``not
more than reasonably necessary'' to cover system costs to
ensure that users are not overcharged for the system if
appropriations acts appropriate more than needed to make the
system function effectively. The Committee expects that
appropriations acts that follow such a fee adjustment will take
into account the reasons for and the amount of the adjustment.
The Committee also added to subsection (c) a new paragraph (4)
on ``Crediting and Availability of Fees.'' Paragraph (4)
provides that fees authorized under new section 3024 are to be
collected and available for obligation only to the extent and
in the amount provided in advance in appropriations acts.
Subsection (d) establishes in the U.S. Treasury a fund
consisting of amounts deposited in the fund under subsection
(c) to be used solely to carry out the purposes of the system.
Subsection (d) also requires the EPA Inspector General to
conduct an audit of fees paid and disbursed, including the
reasonableness of the fee structure to meet system costs, the
level of use, and the operating success of the system.
Subsection (d) also requires the Administrator to report to
Congress, for each 2-fiscal-year period, an accounting of fees
paid and disbursed.
Subsection (e) authorizes the Administrator to enter into
contracts for system-related services that have terms of not
more than 10 years, are performance based, identify objective
outcomes, contain performance standards, and specify the
service fee structure that forms the basis of payments to the
contractor. The Committee amendment deletes an explicit
contract condition that appeared in subparagraph (e)(1)(b) as
originally approved by the Senate, which provided that the
contractor would assume the initial risk of the information
technology investment. Instead, the Committee leaves new
section 3024 silent on this subject in order to ensure that
contracting parties have flexibility to adopt whatever
combination of contract terms affords effective and economic
system design, development, and performance. The Committee
expects the Administrator will not secure contracts at costs
that exceed the fair market value of the procured goods and
services.
Subsection (f) establishes a hazardous waste electronic
manifest system advisory board to evaluate the effectiveness
of, and provide recommendations to the Administrator relating
to, the system.
Subsection (g) requires the Administrator, not later than
one year after enactment, to promulgate regulations to carry
out new Solid Waste Disposal Act section 3024.
Subsection (h) requires that facilities that receive
hazardous waste submit a manifest if a State in which the waste
was generated, or in which the waste is transported, requires
tracking with a manifest.
Subsection (i) authorizes $2 million to be appropriated for
each of fiscal years 2013-2015 for start-up activities to carry
out new section 3024. The start-up appropriations are required
to be offset by the collection of user fees so that all
appropriated funds are offset by fees as provided in subsection
(c).
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):
SOLID WASTE DISPOSAL ACT
TITLE II--SOLID WASTE DISPOSAL
Subtitle A--General Provisions
SHORT TITLE AND TABLE OF CONTENTS
Sec. 1001. This title (hereinafter in this title referred to
as ``this Act''), together with the following table of
contents, may be cited as the ``Solid Waste Disposal Act'':
* * * * * * *
Subtitle C--Hazardous Waste Management
Sec. 3001. Identification and listing of hazardous waste.
* * * * * * *
Sec. 3024. Hazardous waste electronic manifest system.
* * * * * * *
Subtitle C--Hazardous Waste Management
* * * * * * *
SEC. 3024. HAZARDOUS WASTE ELECTRONIC MANIFEST SYSTEM.
(a) Definitions.--In this section:
(1) Board.--The term ``Board'' means the Hazardous
Waste Electronic Manifest System Advisory Board
established under subsection (f).
(2) Fund.--The term ``Fund'' means the Hazardous
Waste Electronic Manifest System Fund established by
subsection (d).
(3) Person.--The term ``person'' includes an
individual, corporation (including a Government
corporation), company, association, firm, partnership,
society, joint stock company, trust, municipality,
commission, Federal agency, State, political
subdivision of a State, or interstate body.
(4) System.--The term ``system'' means the hazardous
waste electronic manifest system established under
subsection (b).
(5) User.--The term ``user'' means a hazardous waste
generator, a hazardous waste transporter, an owner or
operator of a hazardous waste treatment, storage,
recycling, or disposal facility, or any other person
that--
(A) is required to use a manifest to comply
with any Federal or State requirement to track
the shipment, transportation, and receipt of
hazardous waste or other material that is
shipped from the site of generation to an off-
site facility for treatment, storage, disposal,
or recycling; and
(B)(i) elects to use the system to complete
and transmit an electronic manifest format; or
(ii) submits to the system for data
processing purposes a paper copy of the
manifest (or data from such a paper copy), in
accordance with such regulations as the
Administrator may promulgate to require such a
submission.
(b) Establishment.--Not later than 3 years after the date of
enactment of this section, the Administrator shall establish a
hazardous waste electronic manifest system that may be used by
any user.
(c) User Fees.--
(1) In general.--In accordance with paragraph (4),
the Administrator may impose on users such reasonable
service fees as the Administrator determines to be
necessary to pay costs incurred in developing,
operating, maintaining, and upgrading the system,
including any costs incurred in collecting and
processing data from any paper manifest submitted to
the system after the date on which the system enters
operation.
(2) Collection of fees.--The Administrator shall--
(A) collect the fees described in paragraph
(1) from the users in advance of, or as
reimbursement for, the provision by the
Administrator of system-related services; and
(B) deposit the fees in the Fund.
(3) Fee structure.--
(A) In general.--The Administrator, in
consultation with information technology
vendors, shall determine through the contract
award process described in subsection (e) the
fee structure that is necessary to recover the
full cost to the Administrator of providing
system-related services, including--
(i) contractor costs relating to--
(I) materials and supplies;
(II) contracting and
consulting;
(III) overhead;
(IV) information technology
(including costs of hardware,
software, and related
services);
(V) information management;
(VI) collection of service
fees;
(VII) reporting and
accounting; and
(VIII) project management;
and
(ii) costs of employment of direct
and indirect Government personnel
dedicated to establishing, managing,
and maintaining the system.
(B) Adjustments in fee amount.--
(i) In general.--The Administrator,
in consultation with the Board, shall
increase or decrease the amount of a
service fee determined under the fee
structure described in subparagraph (A)
to a level that will--
(I) result in the collection
of an aggregate amount for
deposit in the Fund that is
sufficient and not more than
reasonably necessary to cover
current and projected system-
related costs (including any
necessary system upgrades); and
(II) minimize, to the maximum
extent practicable, the
accumulation of unused amounts
in the Fund.
(ii) Exception for initial period of
operation.--The requirement described
in clause (i)(II) shall not apply to
any additional fees that accumulate in
the Fund, in an amount that does not
exceed $2,000,000, during the 3-year
period beginning on the date on which
the system enters operation.
(iii) Timing of adjustments.--
Adjustments to service fees described
in clause (i) shall be made--
(I) initially, at the time at
which initial development costs
of the system have been
recovered by the Administrator
such that the service fee may
be reduced to reflect the
elimination of the system
development component of the
fee; and
(II) periodically thereafter,
upon receipt and acceptance of
the findings of any annual
accounting or auditing report
under subsection (d)(3), if the
report discloses a significant
disparity for a fiscal year
between the funds collected
from service fees under this
subsection for the fiscal year
and expenditures made for the
fiscal year to provide system-
related services.
(4) Crediting and availability of fees.--Fees
authorized under this section shall be collected and
available for obligation only to the extent and in the
amount provided in advance in appropriations Acts.
(d) Hazardous Waste Electronic Manifest System Fund.--
(1) Establishment.--There is established in the
Treasury of the United States a revolving fund, to be
known as the ``Hazardous Waste Electronic Manifest
System Fund'', consisting of such amounts as are
deposited in the Fund under subsection (c)(2)(B).
(2) Expenditures from fund.--
(A) In general.--Only to the extent provided
in advance in appropriations Acts, on request
by the Administrator, the Secretary of the
Treasury shall transfer from the Fund to the
Administrator amounts appropriated to pay costs
incurred in developing, operating, maintaining,
and upgrading the system under subsection (c).
(B) Use of funds by administrator.--Fees
collected by the Administrator and deposited in
the Fund under this section shall be available
to the Administrator subject to appropriations
Acts for use in accordance with this section
without fiscal year limitation.
(C) Oversight of funds.--The Administrator
shall carry out all necessary measures to
ensure that amounts in the Fund are used only
to carry out the goals of establishing,
operating, maintaining, upgrading, managing,
supporting, and overseeing the system.
(3) Accounting and auditing.--
(A) Accounting.--For each 2-fiscal-year
period, the Administrator shall prepare and
submit to the Committee on Environment and
Public Works and the Committee on
Appropriations of the Senate and the Committee
on Energy and Commerce and the Committee on
Appropriations of the House of Representatives
a report that includes--
(i) an accounting of the fees paid to
the Administrator under subsection (c)
and disbursed from the Fund for the
period covered by the report, as
reflected by financial statements
provided in accordance with--
(I) the Chief Financial
Officers Act of 1990 (Public
Law 101-576; 104 Stat. 2838)
and amendments made by that
Act; and
(II) the Government
Management Reform Act of 1994
(Public Law 103-356; 108 Stat.
3410) and amendments made by
that Act; and
(ii) an accounting describing actual
expenditures from the Fund for the
period covered by the report for costs
described in subsection (c)(1).
(B) Auditing.--
(i) In general.--For the purpose of
section 3515(c) of title 31, United
States Code, the Fund shall be
considered a component of an Executive
agency.
(ii) Components of audit.--The annual
audit required in accordance with
sections 3515(b) and 3521 of title 31,
United States Code, of the financial
statements of activities carried out
using amounts from the Fund shall
include an analysis of--
(I) the fees collected and
disbursed under this section;
(II) the reasonableness of
the fee structure in place as
of the date of the audit to
meet current and projected
costs of the system;
(III) the level of use of the
system by users; and
(IV) the success to date of
the system in operating on a
self-sustaining basis and
improving the efficiency of
tracking waste shipments and
transmitting waste shipment
data.
(iii) Federal responsibility.--The
Inspector General of the Environmental
Protection Agency shall--
(I) conduct the annual audit
described in clause (ii); and
(II) submit to the
Administrator a report that
describes the findings and
recommendations of the
Inspector General resulting
from the audit.
(e) Contracts.--
(1) Authority to enter into contracts funded by
service fees.--The Administrator may enter into 1 or
more information technology contracts with entities
determined to be appropriate by the Administrator
(referred to in this subsection as ``contractors'') for
the provision of system-related services.
(2) Term of contract.--A contract awarded under this
subsection shall have a term of not more than 10 years.
(3) Achievement of goals.--The Administrator shall
ensure, to the maximum extent practicable, that a
contract awarded under this subsection--
(A) is performance-based;
(B) identifies objective outcomes; and
(C) contains performance standards that may
be used to measure achievement and goals to
evaluate the success of a contractor in
performing under the contract and the right of
the contractor to payment for services under
the contract, taking into consideration that a
primary measure of successful performance shall
be the development of a hazardous waste
electronic manifest system that--
(i) meets the needs of the user
community (including States that rely
on data contained in manifests);
(ii) attracts sufficient user
participation and service fee revenues
to ensure the viability of the system;
(iii) decreases the administrative
burden on the user community; and
(iv) provides the waste receipt data
applicable to the biennial reports
required by section 3002(a)(6).
(4) Payment structure.--Each contract awarded under
this subsection shall include a provision that
specifies--
(A) the service fee structure of the
contractor that will form the basis for
payments to the contractor; and
(B) the fixed-share ratio of monthly service
fee revenues from which the Administrator shall
reimburse the contractor for system-related
development, operation, and maintenance costs.
(5) Cancellation and termination.--
(A) In general.--If the Administrator
determines that sufficient funds are not made
available for the continuation in a subsequent
fiscal year of a contract entered into under
this subsection, the Administrator may cancel
or terminate the contract.
(B) Negotiation of amounts.--The amount
payable in the event of cancellation or
termination of a contract entered into under
this subsection shall be negotiated with the
contractor at the time at which the contract is
awarded.
(6) No effect on ownership.--Regardless of whether
the Administrator enters into a contract under this
subsection, the system shall be owned by the Federal
Government.
(f) Hazardous Waste Electronic Manifest System Advisory
Board.--
(1) Establishment.--Not later than 3 years after the
date of enactment of this section, the Administrator
shall establish a board to be known as the ``Hazardous
Waste Electronic Manifest System Advisory Board''.
(2) Composition.--The Board shall be composed of 9
members, of which--
(A) 1 member shall be the Administrator (or a
designee), who shall serve as Chairperson of
the Board; and
(B) 8 members shall be individuals appointed
by the Administrator--
(i) at least 2 of whom shall have
expertise in information technology;
(ii) at least 3 of whom shall have
experience in using or represent users
of the manifest system to track the
transportation of hazardous waste under
this subtitle (or an equivalent State
program); and
(iii) at least 3 of whom shall be a
State representative responsible for
processing those manifests.
(3) Duties.--The Board shall meet annually to
discuss, evaluate the effectiveness of, and provide
recommendations to the Administrator relating to, the
system.
(g) Regulations.--
(1) Promulgation.--
(A) In general.--Not later than 1 year after
the date of enactment of this section, the
Administrator shall promulgate regulations to
carry out this section.
(B) Inclusions.--The regulations promulgated
pursuant to subparagraph (A) may include such
requirements as the Administrator determines to
be necessary to facilitate the transition from
the use of paper manifests to the use of
electronic manifests, or to accommodate the
processing of data from paper manifests in the
electronic manifest system, including a
requirement that users of paper manifests
submit to the system copies of the paper
manifests for data processing purposes.
(C) Requirements.--The regulations
promulgated pursuant to subparagraph (A) shall
ensure that each electronic manifest provides,
to the same extent as paper manifests under
applicable Federal and State law, for--
(i) the ability to track and maintain
legal accountability of--
(I) the person that certifies
that the information provided
in the manifest is accurately
described; and
(II) the person that
acknowledges receipt of the
manifest;
(ii) if the manifest is
electronically submitted, State
authority to access paper printout
copies of the manifest from the system;
and
(iii) access to all publicly
available information contained in the
manifest.
(2) Effective date of regulations.--Any regulation
promulgated by the Administrator under paragraph (1)
and in accordance with section 3003 relating to
electronic manifesting of hazardous waste shall take
effect in each State as of the effective date specified
in the regulation.
(3) Administration.--The Administrator shall carry
out regulations promulgated under this subsection in
each State unless the State program is fully authorized
to carry out such regulations in lieu of the
Administrator.
(h) Requirement of Compliance With Respect to Certain
States.--In any case in which the State in which waste is
generated, or the State in which waste will be transported to a
designated facility, requires that the waste be tracked through
a hazardous waste manifest, the designated facility that
receives the waste shall, regardless of the State in which the
facility is located--
(1) complete the facility portion of the applicable
manifest;
(2) sign and date the facility certification; and
(3) submit to the system a final copy of the manifest
for data processing purposes.
(i) Authorization for Start-up Activities.--There are
authorized to be appropriated $2,000,000 for each of fiscal
years 2013 through 2015 for start-up activities to carry out
this section, to be offset by collection of user fees under
subsection (c) such that all such appropriated funds are offset
by fees as provided in subsection (c).
* * * * * * *