[Senate Hearing 113-292]
[From the U.S. Government Publishing Office]
S. Hrg. 113-292
TOLEDO BEND
=======================================================================
HEARING
before the
COMMITTEE ON
ENERGY AND NATURAL RESOURCES
UNITED STATES SENATE
ONE HUNDRED THIRTEENTH CONGRESS
SECOND SESSION
TO
DEVELOP IDEAS REGARDING STEPS THE FEDERAL GOVERNMENT CAN TAKE TO
INCREASE THE ECONOMIC BENEFITS OF THE TOLEDO BEND PROJECT TO THE REGION
__________
MANY, LA, MAY 17, 2014
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Printed for the use of the
Committee on Energy and Natural Resources
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COMMITTEE ON ENERGY AND NATURAL RESOURCES
MARY L. LANDRIEU, Louisiana, Chair
RON WYDEN, Oregon LISA MURKOWSKI, Alaska
TIM JOHNSON, South Dakota JOHN BARRASSO, Wyoming
MARIA CANTWELL, Washington JAMES E. RISCH, Idaho
BERNARD SANDERS, Vermont MIKE LEE, Utah
DEBBIE STABENOW, Michigan DEAN HELLER, Nevada
MARK UDALL, Colorado JEFF FLAKE, Arizona
AL FRANKEN, Minnesota TIM SCOTT, South Carolina
JOE MANCHIN, III, West Virginia LAMAR ALEXANDER, Tennessee
BRIAN SCHATZ, Hawaii ROB PORTMAN, Ohio
MARTIN HEINRICH, New Mexico JOHN HOEVEN, North Dakota
TAMMY BALDWIN, Wisconsin
Elizabeth Leoty Craddock, Staff Director
Sam E. Fowler, Chief Counsel
Karen K. Billups, Republican Staff Director
Patrick J. McCormick III, Republican Chief Counsel
C O N T E N T S
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STATEMENTS
Page
Curtis-Sparks, Linda, Director, Sabine Parish Tourism Commission. 14
Freeman, Kenneth A., Mayor, Town of Many, LA..................... 17
Goodeaux, Ned, Chairman, Board of Commissioners, River Authority,
State of Louisiana............................................. 1
Landrieu, Hon. Mary, U.S. Senator From Louisiana................. 1
Long, Gerald, Louisiana State Senator, District 31............... 6
Pratt, Jim, Executive Director, Sabine River Authority, State of
Louisiana...................................................... 7
Ruffin, William, President, Sabine Parish Police Jury............ 18
Sabine River Authority of Texas.................................. 26
Williams, Bobby.................................................. 29
TOLEDO BEND
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SATURDAY, MAY 17, 2014
U.S. Senate,
Committee on Energy and Natural Resources,
Many, LA.
The committee met, pursuant to notice, at 10:30 a.m. at the
Cypress Bend Conference Center, Many, Louisiana, Hon. Mary
Landrieu, chair, presiding.
OPENING STATEMENT OF HON. MARY LANDRIEU, U.S. SENATOR FROM
LOUISIANA
The Chair. Welcome this morning to the Senate Committee of
Energy and Natural Resources.
We're going to begin by just introducing Ned Goodeaux, who
is going to introduce his Board members and a few dignitaries
in the audience.
Then I will do an opening statement and we'll hear from our
panelists on this important subject.
But first, let me just say how wonderful it is to be here
in Sabine Parish, to be back here at Cypress Bend. I've had the
pleasure of coming many times. It's wonderful when I actually
get to spend not one, but two nights. So I was here last night,
will be staying again.
So thank you all for your hospitality. It really is one of
the most extraordinary and beautiful places in all of our State
and really in the whole southern region of the United States.
So I thank everyone for joining us for this important
discussion.
So, Ned, let me turn it over to you. If you'll just use
Senator Long's microphone and introduce your Commissioners and
thank you so much for your leadership and anybody else you want
to introduce in the audience.
STATEMENT OF NED GOODEAUX, CHAIRMAN, BOARD OF COMMISSIONERS,
RIVER AUTHORITY, STATE OF LOUISIANA
Mr. Goodeaux. Thank you, Senator.
Let me say first how really great it is to have you back in
the Parish, to have you come by and look at our facilities.
We'd just like you to make more trips, if at all possible
sometimes. You know, if you can get out of Washington, get down
here and have some fun.
[Laughter.]
The Chair. Hooray for that. Yes.
[Laughter.]
Mr. Goodeaux. My name is Ned Goodeaux. I am the Chairman of
the Board of Commissioners for the River Authority, State of
Louisiana. I represent Sabine Parish.
I have several of the board members, out of the 13 board
members from the State, up and down the waterway here of the
Sabine River.
From Sabine Parish, I have Mr. Ron Williams.
From Sabine Parish, I have Mr. Bobby Williams.
From Beauregard Parish, Mrs. Dale Scott.
The Chair. Would you all stand up and just stay standing,
please?
Alright.
Mr. Goodeaux. Those are the only board members out of the
13 that was able to be here this morning.
[Applause.]
Mr. Goodeaux. Thank you guys for coming.
[Applause.]
Mr. Goodeaux. Also, Ms. Scott was 30 years as a City
Councilwoman in DeRidder just south and her niece, Ms. Kim
Moore is the newly elected City Councilwoman from down in that
area.
The Chair. Please stand so we can give you a round of
applause.
Thank you all.
[Applause.]
Mr. Goodeaux. Thank you all for coming.
[Applause.]
Mr. Goodeaux. One last that probably for the River
Authority that has to carry the biggest stick is always his
phone ringing from the staff of Sabine River Authority, Mr.
Carl Chance over our Shoreline Management Department.
Thank you.
The Chair. Thank you, Carl.
[Applause.]
Mr. Goodeaux. That, Senator, is our River Authority
personnel that are here today.
Thank you again.
The Chair. Thank you very much, Ned, so appreciate it.
Let me just begin by giving a short opening statement and
set the stage for why we're here this morning and the
significance of this meeting. I hope to have several additional
informal meetings as this project unfolds.
But as you all know, I don't have to share with the local
community here, that Toledo Bend has driven significant
economic development including recreation, ecotourism, just the
beautiful landscape of the water and has driven development in
this area including hydropower since the early mid 1960s. The
reservoir filled up in 1968. Plans for it were laid prior to
that. Today in 2014, we're here to talk about the future.
Today we look ahead to the next 50 years and how we can
responsibly leverage the area's hydro energy assets and obvious
and abundant natural resources, which is visible to the eye and
to a small child as well as to an adult, how we can create more
high paying jobs and spur commerce and recreation in this area.
Toledo Bend has huge potential, economic potential. I'm
committed to getting to the Federal status and local plans to
unleash this potential.
You all know that the Toledo Bend Reservoir is over 80
miles long. It has more than 1,200 miles of shoreline which is
both sides. That's about the same distance, if stretched out,
between Louisiana and Washington, DC. That is quite an enormous
length of property.
It's the largest manmade body of water in the South, the
largest. It's the fifth largest in the United States not owned
by the Federal Government. In terms of surface area and
storage, it's the largest reservoir in the country not owned by
the Federal Government. So it's truly a treasure and an
extraordinary asset for our part of the world.
Despite its extraordinary size and beauty it might be one
of the least well known large reservoirs in the United States.
This hidden gem and treasure can and should be enjoyed, not
only by our communities nestled in close proximity, like Many,
Zwolle, Logansport and so many others, but by people all across
the region and Nation. In fact today there are over 2,000
anglers fishing in some of the best bass waters in the world.
Toledo Bend's primary purpose, of course initially, was to
unleash hydropower for the region and that still is a very
important part of what Toledo Bend's mission is. As you know,
when it was developed each State, the states that border this
Toledo Bend, Texas and Louisiana, made a decision and an
agreement that each would get half of the water generated. It's
about 1.87 billion gallons of water per day the reservoir
delivers for use by families, businesses and farms in two
States.
The economic value of this water supply cannot be
overstated. The availability of fresh water from the reservoir
is one of the main reasons why Sasol chose West Lake as a site
for a new massive gas to liquids manufacturing facility that
will create in Louisiana twelve hundred permanent, high paying
jobs in the area south of us around Lake Charles and 5,000
construction jobs.
Now these construction jobs might be temporary, but let me
add that with the effort that I'm making with our State leaders
and Senator Long knows most certainly about our push for
closing the skills gap in Louisiana, that while some of these
construction jobs are temporary the skills that people are able
to, with our partnership with Federal, State and local
government and the private sector, are permanent. The skills
that people are able to achieve for themselves will permanently
stay with them and be able to, over long periods of time,
sustain and grow and develop the economic power of their
families and their communities. So this should not be
underestimated.
One clear example of how Toledo Bend creates wealth for
communities around it. That's just one example. But you can
look here and see the recreational benefits, clearly, which are
also equally important.
The dam at Toledo Bend generates 81 million watts of
hydroelectricity which is enough to power 16,000 homes in
Louisiana on a yearly basis. Two companies on either side of
the line, Entergy and Cleco, buy the power the dam produces
under a long term contract that expires in 2018, just 4 years
away. This is a clean and affordable hydropower that
diversifies electricity supply in Louisiana as part of the all
or the above energy policy that I support and champion in
Washington as the new Chair of the Energy and Natural Resources
Committee.
I am committed as Chair of this committee to keep Louisiana
in the driver's seat to redesign the next big pillars of energy
policy for our Nation for the next 20, 30 and 40 years. It's a
gavel we don't often get. I've got it now. It's really
important for me to be able to wield it on behalf of
communities like this and communities all over our State and
Nation.
I most strongly believe that America can be an energy
superpower. We can create more energy resources here at home
using all the above, hydro, nuclear, gas, oil, alternative,
biofuels, etcetera and be an exporter of electricity, power and
energy to our allies and friends around the world to push out
and to have even greater influence in the geopolitics of our
Nation and world. You only have to look at what's happening in
the Ukraine today and the thumb that they're under from Russia
to understand the power of when a country can be, like the
United States, self sufficient in its own energy and not have
to rely on an unfriendly neighbor, particularly one that does
not share democratic values.
So we come back here to Toledo Bend. It's one of the best
places in the United States for bass fishing, one of the top
spots for tournaments in the country. As I said, the Big Bass
Splash is taking place as we speak.
Fishing tournaments and recreational fisherman have been
important drivers of economic growth in this region. They will
continue to do so. Hundreds of hotel rooms including the resort
that we're in today, RV parks and other facilities generate
over 38 million in economic activity for our State each year.
I'd like to commend all the people in this room and this
witness table for all the efforts that you've made over the
last several decades to make this happen. I'm here today to
tell you that I want to work more closely with you as we
develop what the next 30, 40 and 50 years looks like for this
community and for our State.
Because it generates and sells electricity to utilities,
Toledo Bend falls under the jurisdiction of the Federal Energy
Regulatory Commission, called the FERC. I am committed to make
sure that this regulation, which is necessary, does not stymie
this area from developing its full potential. FERC, under my
jurisdiction in the Energy Committee, is in the process or
under the jurisdiction of the committee that I Chair, is in the
process of issuing a new license to Toledo Bend. They've been
in the process of asking for a license.
The initial 50-year license expired in 2013. So we've been
operating on a temporary license ever since. FERC is in the
process of deciding whether that permit should be extended for
30 years, 40 years or 50 years. We're asking for 50 years.
We're going to lay down some testimony in the congressional
record today as to why that would be important.
The two River Authorities have done a great job of keeping
the FERC relicensing process from spinning out of control and
compromising the current benefits of Toledo Bend which I have
heretofore mentioned. These fights can be messy. There's
sometimes too many stories about hydropower relicensing across
the country, cannot be, you know, compromised between all of
these interests. I hope that this will help us to keep working
in the cooperative way that we are.
The relicensing process takes too long and it's too costly.
Toledo Bend is currently waiting for a new license. I'm been
pushing FERC, as I said, to get this done.
On February 5th of this year I wrote a letter to FERC
calling on them to issue Toledo Bend a new 50-year license, the
longest term possible under Federal law. The law does not have
to be changed for this 50-year license to be issued.
It is within their jurisdiction. We've laid out several
important arguments why we think a 50-year license will save
local communities money. It will help generate some additional
revenues that can be used for the benefit of all concerned.
I expect that FERC will issue a 50-year license for Toledo
Bend this summer as I and others have requested. Frankly if
they're not leaning forward, I'm going to be using my power as
the Chair to pass legislation. It would be much easier for them
to do this administratively. I most certainly appreciate their
consideration of all the arguments that we've laid out.
So before I turn this over to our panel of witnesses I want
to express my strong support and recognize this reservoir as
the extraordinary economic engine it has been and can continue
to be for this region. We need to relicense this project for 50
years. We need more resources for infrastructure to make Toledo
Bend as accessible as possible for the public, to the private
landowners, for new investments and for mostly, creating
wonderful jobs, high paying jobs, for every single person to
have access to those jobs in our community.
So I thank you all very much. I want to recognize our
panel. We're going to have a great panel this morning. I've
asked each of them to give 4 or 5 minutes of testimony then
we'll have a round of questioning.
I'd first like to welcome Senator Gerald Long, who has been
a long standing friend and wonderful ally. He's represented
Louisiana's District 31 which includes Natchitoches, Winn,
Grant and Sabine Parishes since 2007. He currently serves as
Chair of Louisiana's Senate Natural Resources Committee and is
a strong and recognized voice in all issues related to what
we're discussing today.
Senator Long, thank you for being here.
I'm going to introduce everyone and then we'll come back.
Next we have Mr. Jim Pratt, the Executive Director of the
Sabine River Authority of Louisiana. The Sabine Authority has
joint authority, as I've said, over Toledo Bend along with its
counterpart in Texas.
Jim, I think we have 13 commissioners and Texas has nine.
We look forward to hearing the good work that you're doing and
how our counterparts in Texas are thinking about some of these
things as well.
Next I'd like to welcome Linda, who hosted me the last time
I was here. Mrs. Curtis-Sparks, thank you very, very much for
your leadership of the Sabine Parish Tourist Commission and for
your passion and advocacy for this community. We look forward
to hearing your perspectives on the existing economic and
recreational benefits that Toledo Bend has to offer and see
what more we can do to be of assistance to you.
We next have Mr. Kenneth Freeman, of course, the Mayor of
the great town of Many. He's been the Mayor since 1989. He
serves on the Board of the Sabine River Authority. We thank
you, Mayor, for being here and for your leadership for these
many years.
Finally our last witness, Mr. William Ruffin, President of
the Police Jury. He'll have some helpful suggestions as to how
this can benefit the whole region. We thank Sabine Parish
Police Jury for their strong support. Mr. Ruffin, President
Ruffin, and for all you've done today.
So let's begin with Senator Long to just give us 4 or 5
minutes of opening testimony. Then I've got some questions and
hopefully we can conclude in about an hour or an hour and a
half.
Thank you.
STATEMENT OF GERALD LONG, LOUISIANA STATE SENATOR, DISTRICT 31
Mr. Long. Thank you, Senator Landrieu.
First of all on behalf of all of us from Louisiana we want
to publicly congratulate you for the Chairmanship that we think
offers enormous opportunities for our people. So I'm going to
ask the audience that are here today to extend a personal
congratulations to Senator Landrieu.
[Applause.]
Mr. Long. It's interesting to note that her Chairmanship at
the national level is exactly my Chairmanship at the State
level. As a State Senator I've been privileged to have the
responsibility of being the Chairman of the Senate Natural
Resources. Now we spent most of our time this year dealing with
Legacy lawsuits and with levy lawsuits. The real issue though,
I think, as we look at today is how can we move Toledo Bend
into a position of prominence as we look at the next 20, 30, 40
years.
Let me parenthetically make a statement that I think is
extremely important. It is this. Toledo Bend knows no political
parties. We simply know that the needs of our community and the
needs of our State transcend politics.
I want to publicly say how appreciative I am that Senator
Landrieu has brought government to the people and that this
meeting is being held today at Cypress Bend.
One of the things I hear, Senator, so much as an elected
official is that I feel isolated from my government. I believe
today we actually put hands and feet to what we do as
legislators.
Now several things and I know there's many others who would
like to speak and we'll be as brief as we can. One of the
things that's extremely important is that we understand,
collectively, is that Toledo Bend can be the economic engine
for Northwest Louisiana. We have yet to touch the hem of the
garment in regards to the potential of Toledo Bend.
One of the things that we want to do as State officials as
well as Federal officials is to facilitate opportunities to
grow Toledo Bend. When you look at travel across the United
States and you see other recreational facilities such as this,
unfortunately, as we compare it to Louisiana we find ourselves
behind the curve when it comes to development and making this
an economic engine. I do appreciate the fact that we're able to
attract great opportunities like the Bass Masters and others,
but if you begin to think outside the box of what Toledo Bend
can be it can be an economic engine.
A point and case here is that when we look at the diversion
canals that are south of us that go into Lake Charles and
Calcasieu and Cameron Parishes, we already provide for about 21
industries. Their needs as it pertains to a quality, quantity
of water. One of the things that attracts people to Louisiana,
Senator Landrieu, when we think of our economic engine is the
fact that there is an availability of water which is affordable
and which is portable meaning it can get from point A to point
B.
What we would ask you to do, as our United States Senator,
is to continue to operate from the perspective of being pro
business. Give our people an opportunity to grow Louisiana by
using its natural resources.
Now, ladies and gentlemen, I've made this statement before.
Let me make it again. We are one of only 6 states that is water
independent. The next great economic engine that drives
Louisiana will be associated directly with how much water we
have and how we use it.
I offered 2 years ago a measure which will create a
comprehensive water management plan for Louisiana. Currently at
the State government level we have 21 agencies or sub agencies
that have some type of regulatory control over our water. What
we want to do is not only to use this great assets of Toledo
Bend, we want to use the State of Louisiana with our water
resources to grow our State.
When you look at St. James parishes and some of the others
that are attracting the large industries, the No. 1 reason they
give when they come before my committee is the availability of
water. Water is driving the economy in Louisiana and
nationwide. If you doubt that, the State of Texas would love to
be in the position we're in when it comes to our water.
Many of the things that hinder other states is the lack of
water. Senator, we have that availability. We believe Toledo
Bend is in a prime position to drive our State.
Again, thank you for your attention.
The Chair. Thank you so very much, Senator. I really
appreciate it.
Mr. Pratt.
STATEMENT OF JIM PRATT, EXECUTIVE DIRECTOR, SABINE RIVER
AUTHORITY, STATE OF LOUISIANA
Mr. Pratt. Thank you, Madame.
I am Jim Pratt. I'm the Executive Director of the Sabine
River Authority for the State of Louisiana. The Sabine River
Authority, as been stated earlier, we have 13 members that are
appointed and serve at the pleasure of the Governor.
The Sabine River Basin in Louisiana stretches from
Logansport in Desoto Parish through Sabine, through Vernon,
Beauregard, Cameron and Calcasieu, all of which have
representatives on the Sabine River Authority Board of
Commissioners.
One of our most significantly visible and responsible
projects, of course yet is equally been a project. Of course we
mention operated with the co-licensing of the Federal Energy
Regulatory Commission, the Sabine River Authority, State of
Texas.
Earlier stated about the immense short line and the fact
that this is the largest water body in the Southern states,
it's the fifth largest in the United States and unique is is it
is not owned or operated by the Federal Government although we
do fall under the Federal Energy Regulatory Commission's
jurisdiction because we do have a dam hydro facility on a river
that was formally a navigable waterway of the United States. So
our relationship with the Federal Government, one that
fortunately has been, obviously, and will continue in the
future.
Primarily it was designed here in West Louisiana and
Eastern Texas as a water supply. But of course, during the
1950s and early 1960s when this project was conceived, the
immense need for water supply was not apparent at the time. So
the local leadership looked at ways of doing this. It's not a
Corps of Engineer project because it did not lend the flood
control for their purposes.
But the local business leaders and elected officials got
together, joined in with the power companies that were around
at the time, and designed this project for two purposes to pay
for it. That was, of course, hydro electric power would
initially pay for it knowing that the water supply component
would eventually be tapped into. But then the local support of
this project was from the promise of economic development for
these poor parishes that were along the Western corridor of
Louisiana.
It has. Obviously there's much more potential that can be
reached.
The generating facility at the dam, it produces those 80
megawatts or so per hour. It will fund approximately or at
least power about 16,000 residents. But of course, on one scale
that's not much.
But when you look at the fact this is a renewable resource.
It is green power. We believe that certainly has a placemat in
our future energy needs. Certainly in all of our efforts for
renewable resources this one stands alone. It does very well
there.
The economic impact that we receive from this project, of
course, you see it today. We've got one of our largest, non-
professional tournaments that we're hosting this weekend. It's
the Big Bass Splash. Over 2,000 participants.
The beauty of this one is couple weeks ago we had the Bass
Masters elite. Those are professionals, great crowds and a lot
of media attention. But this one today you have mother/
daughter, father/daughter, grandchildren fishing. It is a
family event with big rewards.
That's why it's so exciting for us to see this come here
because of all things this is a great place to bring your
family. We have capitalized on that. That's part of the future
on this.
This resort that you're at today was a project conceived by
the Sabine River Authority as an economic development project
in the early 1990s. The speaker behind me was the Executive
Director at the time and led the charge to make this happen.
This has changed the landscape. It bumped the level somewhat.
But we all know that that was going to be a catalyst to bring
even more.
We have two State parks here that are operated by our
Office of State Parks in addition to the several
recreationsites that are operated by the Sabine River
Authority. We believe then though in the coming years, as was
emphasized by the Senator, that water shortages will continue
to be apparent. Climate change, one way or the other, is going
to impact us and just natural outdoor environments are being
confronted with industrial and residential development.
So this project becomes more and more valuable to the
States of Louisiana and Texas for the outdoor experience, but
also of that genuine asset of high quality, clean, fresh water.
As we referred earlier to the Federal Energy Regulatory
Commission and the initial license that was issued in 1963.
We've operated under that for the first 50 years very
independent. Of course there were several environmental laws
and regs that have been adopted since 1963. So one of the
challenges that we had in going through this relicensing
process, was showing that we are complying with all of those
acts and regulations that have been passed.
I'm happy to report that during this process, jointly with
the State of Texas, we spent about $11 million. You may ask,
well what can you show for that?
We had to do a lot of those studies for, particularly, the
river downstream of the dam to make sure it wasn't impaired and
the species that were expected to be there were still in place.
The good news is, excuse me, they are. We have a very healthy
environment. We actually have some of the highest quality of
water of any river flowing into the Gulf of Mexico.
The process of relicensing though has been an 8-year
process with us. We developed a scoping document and a pre-
application document that was submitted. We actually chose the
integrated licensing process which was supposed to be much more
expedited even than the traditional. But we must say, it has
still been quite a challenge for us, to say the least.
There was a lot of settlements. We have several Federal
entities and State entities that are regulatory in nature that
participated such as locally we had the Louisiana Wildlife and
Fisheries, Louisiana Department of Economic Quality, in Texas,
Texas Parks and Wildlife, Texas Commission on Environmental
Quality and then the Federal agencies from the U.S. Fish and
Wildlife Service, National Marine Fishery Service and our
neighbor next door, of course, is the United States Forest
Service under the Department of Agriculture. During that we
addressed the concerns they brought forward which dealt with
things from public recreation and water supply to the value of
that hydro power production that we do here on Toledo Bend.
It came at quite a cost. This process to both authorities,
again, we are not taxing authorities. We generate our revenues
here through the sale of hydropower, water and fees that we
charge on our sites. But jointly we will have spent, at the end
of the day, about $11 million during this process.
The capital costs that are going to be associated with
complying with the new terms are going to cost about $3.6
million. Our operation maintenance costs on an annual basis
that, you know, includes the mitigation and protection measures
that were requested by the Federal agencies and that's another
3.7.
Many years ago and really it wasn't many, but within the
last decade, as residents moved to Toledo Bend and became full
time residents. Their voices began to be heard. It came very
apparent that maximizing the power production during the summer
months which is when the power is most needed, was in conflict
with our recreation element here.
As such we made the Louisiana legislature instructed
through a statute to reduce the amount of water we had
available through elevation for power production in those
months. But it did reduce our ability for revenue streams. But
that being said, when you balance that with the recreational
and the other economic development components then it's just
the best use of the asset that we're looking at.
The cost for our total project of relicensing, when we look
at that, we cash-flowed it. There's not been any tax dollars
put into this from Texas or Louisiana. But we have to look at
it from a business perspective and try to amortize that cost
over a period. It really only works reasonably well if we can
amortize that over the next 50 years.
Anything shorter, even our own residents say, you know, why
did you do that? It just doesn't pay for itself. So it's very
important, Senator, that we get that 50-year license so that we
can amortize that cost over the 50 years.
Hopefully the reality is that once the next license term
comes around we will have operated this reservoir project for
almost a century. We would at least encourage people to think,
you know, what else could there possibly be? Do we really need
to go through at today's level an $11 million study again in 50
years and maybe we can mitigate that through this process.
The Chair. Try to wrap up, if you can.
Mr. Pratt. Will do.
Last there's two things.
There's a land exchange legislation that you have sponsored
in DC that is very apparent that the U.S. Forest Service lands
were not acquired as originally intended with the project in
1963. That empowers the U.S. Forest Service to mandate
conditions on the project that are not necessarily conducive
with local economic development efforts. So we appreciate your
sponsorship on that, Chairman.
We've already covered the no additional.
Thank you, Madame, for hosting this here. We will stand by
to answer any other questions you may have about this project.
Thank you.
[The prepared statement of Mr. Pratt follows:]
Prepared Statement of Jim Pratt, Executive Director, Sabine River
Authority, State of Louisiana
introduction
This written statement is submitted on behalf of Jim Pratt,
Executive Director of the Sabine River Authority, State of Louisiana
(SRA-Louisiana). SRA-Louisiana, established by the Louisiana State
Legislature in 1950, is an instrumentality of the State that provides
an essential public function on behalf of the citizens of Louisiana,
which it serves. Its primary statutory mission is to conserve, store,
control, utilize, and distribute the waters of the rivers and streams
in the Sabine River watershed for multiple public benefits, including
domestic use, agricultural production, manufacturing and other
industrial and commercial purposes, hydroelectric power production,
navigation, recreation and tourism. SRA-Louisiana's operations extend
to the parishes of De Soto, Sabine, Vernon, Beauregard, Calcasieu, and
Cameron, which lie within the watershed of the Sabine River and its
tributaries.
The governing authority of SRA-Louisiana is a thirteen-member board
of commissioners, each of which is appointed by, and serves at the
pleasure of, the governor. SRA-Louisiana is a self-sustaining entity
that has no taxing authority and does not receive appropriated funds
from the State of Louisiana. Today, SRA-Louisiana has 64 employees and
an annual operating budget of $9.8 million.
overview of toledo bend project
SRA-Louisiana's most significant responsibility is the Toledo Bend
Project (Project), located on the main stem of the Sabine River in the
parishes of De Soto, Sabine, and Vernon in Louisiana, and the counties
of Panola, Shelby, Sabine and Newton in Texas. In terms of both surface
area (approximately 180,000 acres) and storage capacity (approximately
4.5 million acre feet), Toledo Bend Reservoir is one of the largest
water bodies in the United States, and is the largest reservoir in the
nation that is not owned and operated by the federal government. SRA-
Louisiana manages the Project with its co-licensee, the Sabine River
Authority of Texas (SRA-Texas). The Project is the only hydropower
facility in the United States that is co-licensed by the Federal Energy
Regulatory Commission (FERC) to two states through governmental units
of those states.
The Project was conceived, licensed, and developed primarily as a
water supply facility, but also provides hydroelectric power
production, economic development, and public recreation. The Sabine
River Compact (Compact), signed by representatives from Louisiana,
Texas, and the United States in 1953 and approved by Congress,
apportions the waters of the Sabine River Basin below the northern
state line of Louisiana equally between the two states. Prior to its
construction, the Federal Power Commission (FPC), predecessor agency to
the FERC, granted a 50-year license to the Authorities in 1963. The
Authorities completed construction and commenced operations of the
Project in 1969.
Today, the Project has the capacity to produce approximately
240,000 megawatt hours of clean, renewable energy annually-enough to
power about 16,000 homes in Louisiana. Toledo Bend Reservoir also
provides water supply for local municipalities and industries, as well
as supports jobs and businesses throughout the lower Sabine River Basin
through the provision of a dependable water supply. In fact, Toledo
Bend is the largest unallocated supply of fresh water in Texas, and the
reservoir is considered crucial to meeting future water demands in the
region, which are expected to increase in Texas alone by 92 percent
over the decades between 2010 and 2060. Finally, Toledo Bend supports a
world-class bass fishery, which supports economic development in the
region through the numerous recreational opportunities provided by the
Project.
project area
The Toledo Bend shoreline is approximately 1,200 miles in length-
longer than the entire west coast of the continental United States. In
Louisiana, the shoreline offers numerous public recreation facilities,
commercially owned marinas and other businesses, private docks and boat
houses on lands leased to adjacent landowners, and undeveloped lands.
While a similar land use pattern also occurs in Texas, the shoreline
area in Texas also includes approximately 4,000 acres of federal lands
administered by the United States Forest Service as part of the Sabine
National Forest, as well as the Indian Mounds Wilderness Area (IMWA).
IMWA was congressionally designated in 1984-more than 20 years after
the original Project licensing and 15 years after Project construction.
No Project structures, facilities or works occupy lands within IMWA.
project purposes and benefits
In addition to serving as a key source of water supply to meet the
municipal, industrial, and irrigation water needs for both Louisiana
and Texas, and providing low-cost, emissions-free renewable energy to
ratepayers in Western Louisiana and Eastern Texas, the Project is a
significant economic engine in the region, supporting jobs, tourism,
and local businesses. Among the economic benefits made possible by the
Project in Louisiana are the Cypress Bend Conference Center, two state
parks, many private businesses dependent on recreation at Toledo Bend,
and the large new Sasol plant planned for Southwest Louisiana. We
believe that in the coming years, as water shortages increase in parts
of the United States and natural outdoor environments continue to
confront development pressures, the Toledo Bend Project will become an
increasingly valuable asset of the States of Louisiana and Texas.
relicensing process
The Project operates under the license issued by the FPC in 1963,
which expired at the end of September, 2013. The Authorities'
application for a new license was filed in September 2011 and currently
is pending at the FERC.
The Authorities developed the license application through an 8-year
process that included the development and filing of a notice of intent
to apply for a new license and pre-application document, extensive
environmental scoping and studies, and 5 years collaborating with all
relevant federal and state agencies and the interested public both
before and after the application for a new license was filed with the
FERC.
The relicensing process also involved a successful comprehensive
settlement with federal and state resource agencies, reached after more
than a year of intense settlement negotiations. The settlement sets
forth mutually agreeable terms and conditions for the operation of the
Project over the new license term, and includes measures that protect
and enhance fish and aquatic resources, public recreation, water
quality, and preserves the value of hydropower production and water
supply.
In addition, as part of the relicensing effort the Authorities have
proposed to construct a new renewable generating facility in Louisiana
to take advantage of water releases from the Project spillway, which is
expected to produce approximately 11,600 megawatt hours of renewable
energy-enough to power about 800 homes in Louisiana each year.
This onerous relicensing process has come at considerable cost to
the two Authorities, as follows:
The relicensing process costs (e.g., environmental and
engineering consultant fees, environmental studies, legal
expenses, document preparation, and other related expenses)
have totaled over $10 million since inception, and the
Authorities expect a total expenditure of over $11 million by
the time the license is issued later this year.
Capital costs associated with implementing new license
measures are estimated at $3.6 million (not including the
capital costs of the new small generating facility at the
spillway).
Annual costs associated with operation and maintenance of
new protection, mitigation, and enhancement measures set forth
in FERC's staff preferred alternative (which includes measures
in the relicensing settlement agreement) are estimated at $3.7
million.
In addition, the Authorities estimate that they lose $ 2.6
million in revenue each year as a result of enhancing
recreation at Toledo Bend Reservoir by restricting normal
hydropower production to periods when Toledo Bend Reservoir is
above 168 feet mean sea level (msl) (even though the Project
was designed to draw reservoir levels down to elevation 162
feet msl for power generation).
Together, these costs will increase the Project's total operating
costs by more than $7 million each year over a 50-year license term.
For a Project with current operating costs of approximately $16.5
million annually, these relicensing costs substantially increase the
Project's total operating costs by nearly 44% annually, even if the
FERC issues the statutory maximum new license term of 50 years. Of
course, this increase would be even more substantial if the FERC issues
a new license for less than 50 years.
land exchange legislation
The Authorities very much need the enactment of S.1484, the Sabine
National Forest Land Exchange Act of 2013, of which Chairman Landrieu
is the lead sponsor. Senators David Vitter (R-LA) and John Cornyn (R-
TX) are also original sponsors of this legislation. This legislation
would remove some aspects of federal oversight under the FPA that
potentially could cripple the many benefits provided by the Project on
a going-forward basis. Currently, the presence in the Project of
approximately 4,000 acres of federal land administered by the U.S.
Forest Service imposes a considerable regulatory and cost burden on the
Authorities, both now and into the future. The legislation sponsored by
Chairman Landrieu, Senator Vitter and Senator Cornyn would remove these
challenges and ensure that the Project can continue to be a valuable
asset of the people of Louisiana and Texas.
The existence of Sabine National Forest lands within the Project
gives ``mandatory conditioning authority'' to the U.S. Forest Service
under section 4(e) of the FPA. This broad authority allows the U.S.
Forest Service to impose upon the Authorities' FERC-issued license any
conditions it believes would adequately protect and utilize Sabine
National Forest. Because the U.S. Supreme Court has held that FERC has
no authority to modify or reject these conditions, there is no
guarantee that a future FERC-issued license will be balanced in the
public interest for both developmental and non-developmental values, as
required by the FPA. Given the unique structure of FPA section 4(e)-
where one agency can override the action agency's overall licensing
authority-there is little opportunity in the relicensing process for
the Authorities and other hydropower licensees to challenge the factual
merits of the conditions.
Fortunately, the Authorities were able to work closely with the
U.S. Forest Service in the current relicensing process and resolve all
their issues through a negotiated settlement of the FPA section 4(e)
conditions that will apply to the new license. SRA-Louisiana fully
supports these negotiated settlement terms and is willing to implement
them as a co-licensee of the Project. In a future licensing proceeding
involving the Project, however, the Authorities should not be subjected
to the risk that the U.S. Forest Service could impose onerous or
crippling conditions to protect its narrow interests at the expense of
the broader purposes of the Project.
While all lands involved in this matter are on the Texas side of
the Project, Louisiana is liable for one-half of all the costs of the
Project. Thus, we share the interest of SRA-Texas in removing all
federal land from the Project.
In addition, removal of Sabine National Forest lands from the
Project, together with the assurance that other non-fee federal
interests in Project lands would not trigger land use fees under FPA
section 10(e), would remove the threat to the Authorities to pay
extraordinary federal land use fees to FERC. According to an estimate
by the Authorities, these FERC fees could be as high as $3 million
annually, which would wreck the economics of the Project. The FERC is
not collecting these fees from the Project for two reasons: (1) the
FERC has found that Project power is provided to consumers without
profit; and (2) the FERC has determined that it will not collect these
fees at all from anyone right now, but has not rejected its authority
to collect these fees. The potential liability of the Project for these
fees is exacerbated because a prior land exchange in the 1980s retained
the federal government's ``power site reservation'' on over 30,000
acres of lands inundated by Toledo Bend Reservoir. This ``power site
reservation'' is the alleged basis of this fee by the FERC. The
Authorities are pleased about the refusal of the current FERC to
collect these fees, but also are keenly aware that a future FERC could
change this position and determine to collect these excessive and
unjustified fees in the future. Because any further change in FERC
policy could be devastating to the Project, SRA-Louisiana supports a
legislative solution that removes FERC's power to collect fees for any
interest in federal land at the Project.
no additional relicensing processes
Finally, SRA-Louisiana questions why this Project should undergo
another relicensing in 30 to 50 years. At that point, the Project will
have been operating for 80 to 100 years, which provides ample time to
fully understand and address environmental effects of its operations.
The comprehensive, complex, costly and time consuming ``audit'' of the
Project-which is what the re-licensing process is all about-against the
full spectrum of environmental laws of the nation will be completely
unnecessary. The Project has now been through an original licensing
and, very recently, a relicensing. SRA-Louisiana has no objection to
remaining under the jurisdiction of the FERC according to the terms of
our settled license conditions, which will contain sufficient authority
to reopen the license, where justified, to address any implementation
issues that might arise at the Project.
We view this entire costly application process for a new license in
30 or 50 years to be an imposition of government expense of
questionable value. This Project is an asset owned by the people of
Louisiana and Texas, and it is the only FERC-licensed Project in the
nation that is owned by two different states. This Project is not
operated for profit, but for the benefit of the people of Louisiana and
Texas. Therefore, we ask Chairman Landrieu to do all in your power to
relieve this Project of incurring another major expense-which may be
much greater in 30 or 50 years than our current relicensing-occasioned
by the requirement to seek a new license periodically.
conclusion
Thank you, Madam Chairman, for your great interest in the success
of the Toledo Bend Project and for this hearing that you are conducting
here today on the Project. We appreciate your support and your
leadership in Congress to address issues that will enable this
important state asset to achieve its full potential as an electricity
producer, a water supply facility and an engine of economic development
for Western Louisiana.
We welcome your questions about the Project, Madam Chairman.
The Chair. Thank you very much, Mr. Pratt.
Ms. Curtis-Sparks.
STATEMENT OF LINDA CURTIS-SPARKS, DIRECTOR, SABINE PARISH
TOURISM COMMISSION
Ms. Curtis-Sparks. I want to add my appreciation to Senator
Long's remarks in you bringing this Commission to us today
because the story and I'm going to tell more of a story today.
I'm going to speak to you as a resident because if you had
250 people in this room there would probably be 5 of us that
lived here prior to Toledo Bend being built. So we can tell you
the wishes or what the people then thought it would be. I will
speak to you with a little bit of knowledge from my time as
Director of the Sabine River Authority. I will tell you today
of what's happening with tourism and retirement development as
the Director of the Sabine Parish Tourist Commission.
Sixty-six years ago this past Monday, a group of
businessmen from about 16 miles as the crow flies Edgefield,
that area, to about 16 miles into Many were very concerned
about who was going to take our--the most water out of Toledo
Bend and how they were going to be sure that both states got
their equal share. At that time this was a very poor rural
agricultural area as was Desoto to the North and Vernon to the
South. So these people were really concerned.
Out of that grew the legislation that established the Texas
and Louisiana River Authorities. For the next 20 years they
went through conceptual studies and gaining the financing took
about 7 years and the construction----
The Chair. Linda, I just have to say you were 5 years old.
Ms. Curtis-Sparks. Almost.
[Laughter.]
The Chair. But go ahead. It's a great story.
Ms. Curtis-Sparks. OK.
I was at the ground breaking. I was at the dedication. I
know what the people thought it was going to be.
At that time we envisioned lots of factories coming because
we were going to have all the water it took to attract those.
You can go back and you can look at the Shreveport Times and
the Longview papers. They had big pictures of big factories.
It never happened. I'll state up front because I have been
involved in the area so long, its people often ask why has it
never happened?
Senator Long mentioned, you know, you can go still to
places in Louisiana that don't know about Toledo Bend. I hear
all the time people in Louisiana that have never heard about
Cypress Bend. I work that market.
I don't know in my lifetime if we'll ever get that word
out.
But the two things that, in my opinion, have really held
this project back is when we finally got it built. It was truly
a miracle that it was built. It was built, as you know, by the
people of Texas and Louisiana without any Federal assistance.
There was no infrastructure built. The roads and the water
to create those industries coming in was not put here. So those
people that came to Toledo Bend in those first years, I
personally traveled 26 miles on a dirt road to fish at Toledo
Bend. So it just wasn't here.
So those first 20 years of Toledo Bend it didn't happen
because there was just no infrastructure. We had a lot of local
people that put in a lot of local marinas. By the end of that
first 20-year period, by the first of say, 1990, we had 2,600
homes and camps, most of them were camps that were kind of
shotgun camps. We had very, very few really nice homes in
Toledo Bend at that time.
We had 204 hotel rooms on this lake that you could rent to
the public to come to Toledo Bend. So we couldn't market Toledo
Bend on a national level in 1990 because we didn't have any
place for them to stay. We didn't have North and South Toledo
Bend and some of the things we have then.
So the River Authority did adopt, in my opinion, an
aggressive economic development program.
They built 33 hard surface roads.
They built Cypress Bend.
They cleared and marked broke roads.
They started restocking the lake.
Within a 5-year period we saw a significant economic
change.
We, at that time, went from 2,600 homes to 5,600 homes in 5
years. Now those numbers and I want to explain this in case you
go out and check with our Assessor's Office, because we now
have just about 6,000 on the row. But most of those homes and
camps that were here in 1969, those mobile homes, have ceased
to be. Those camps have been replaced with $300,000 to $1.5
million homes.
So we still have about, at this time, 6,000 homes or
structures along the 80 percent shoreline, about 480 miles of
shoreline in Sabine Parish.
Now the, because of Cypress Bend, and Cypress Bend was part
of that economic program. It was built to give the banks a
property comparable. It was built to give the banks an
occupancy comparable because at that time about 30 of our old
marinas had been owner financed and sold for too much money
that you couldn't drive to pay off a $300,000 note with 5
cabins and a boat ramp. So those owners have taken them back
and taken them back and taken them back over the years.
Since Cypress Bend was built we now have 750 rentable
rooms. We now have about 800 RV pads. So we're getting close to
1,600 rentable units on Toledo Bend. About 17 times out of the
year those rooms are all full. So we max out at many times of
the year.
Coming forward the next 15 years we continue to experience
the same problems we had in 1969, are the same problems in
2009, is that the infrastructure on Toledo Bend still holds
back the development of Toledo Bend and people that come in
from Houston which is one of our main areas to draw from, South
Louisiana to that area they don't understand because they look
at Lake Livingston and Lake Conroe and it's house to house and
it's businesses and multiple restaurants.
But we can't a Holiday Inn Express on this lake because we
don't have water for fire protection. We don't have sewer. Of
those 6,000 homes, probably, maybe 5 percent are serviced by a
sewer system, a community sewer system. The rest of them are on
individual units. So when business gets ready to come into this
area they have to put in sewer and water. You're just not going
to get it.
The other thing, the second thing, in my opinion, that has
held back the development of Toledo Bend is that we are a
small, rural parish where you have 80 percent of the lake.
Senator Long will tell you when you go to Baton Rouge and he
represents 4 other parishes and our Representative represents
5, you don't get State money to bring home. It's very, very
difficult. He can tell you those challenges because our
Senators and Representatives have fought it for years.
The only way that we got money to build Cypress Bend, we've
brought all of them up here and we told them the story. They
saw the economic value. So it is a struggle indeed.
I turn it back to sewer and water.
On the positive side you will see tomorrow that ESPN story
that Jim talked about that was filmed here a couple of weeks
ago. We had the top pros in the world at Toledo Bend. They come
because it is a fabulous fishing resource.
On the negative side that wonderful tournament that's down
at that arena today has 2,500 people. I asked Bob Seeley
yesterday why can we not get 7,500 like Rayburn's got or had 3
weeks ago? He said you can't get them because I can't bring
out-of-State people in because you still don't have the
lodging. You don't have the rooms for them, plus the quality of
rooms.
So I close with this remark. We really appreciate the
efforts that you have made in helping the River Authority work
through the issues with FERC. We hope that you will be
successful in getting a 50-year license because the cost of the
authorities when they have such a small amount of money to
operate on to meet the recreational needs of the future, are
going to be really difficult.
We would ask that it never have to be licensed again. But
for the FERC license or the requirement of the FERC license as
we go forward to take 40 or 45 percent of these authority's
revenues to address the needs in there. We ask that you do all
that you can in that area to help lower that cost.
The Chair. Thank you for that impassioned testimony. You
bring such depth of experience and the knowledge having been
here from, in large part, from the beginning. I'm going to have
several questions to ask you after we have our other panelists.
But let me just say that you have a champion in me. I've
said that to you privately and publicly to develop in the most
appropriate way for the benefit of this region, as well as for
the benefit of the whole State and Nation, but for this region,
the people that live here to see the true benefits of this
extraordinary asset. So I look forward to continuing to work
with you. Thank you so very much.
Mayor Freeman.
STATEMENT OF KENNETH A. FREEMAN, MAYOR, TOWN OF MANY, LOUISIANA
Mr. Freeman. Senator, contrary to President Putin of
Russia, we want to welcome you to Toledo Bend country.
[Laughter.]
The Chair. Thank you.
Mr. Freeman. Let you know you are always welcome to join
us. We look forward to and appreciate your being here.
Ms. Curtis-Sparks. Thank you for enlightening me.
Mr. Freeman. I too was here when the lake was built. I
remember those discussions as to why it was important, what
would happen, what our hopes and dreams would be, if this came
to pass. As you're well aware the lake was built to accomplish
many, several goals for the people and the citizens of
Northwest Louisiana and Northeast Texas.
One was to generate electricity.
One was to provide a reliable source of water for industry.
To create recreation and tourism.
Since its completion Toledo Bend project has not
disappointed.
Since its completion the lake has continually generated
electricity to help feed the growing demand for energy in
America.
Since its completion water sources have been consistent and
good water to the point where just recently whether you agreed
with the concept or not. Dallas came to Toledo Bend to ask to
buy water which to me underscores the fact that our children
are going to be faced with some tremendous challenges to meet
the essential resources to meet the demands of an ever growing
human population.
Tourism and recreation.
Today Toledo Bend is recognized as the second most visited
tourist attraction in the State of Louisiana. A pleasant
surprise because of the tourism coming to Toledo Bend another
industry has sprung up that's important to our economy and
that's retirees. Today Toledo Bend is one of the fastest
growing destination points for retirees in Louisiana.
So those of us who were here from the beginning know that
Toledo Bend is not just a sportsman's paradise.
We know it's not just a big old hole in the ground with a
lot of water in it.
We know that it is the engine that drives our economy.
However, this engine can't roar to its fullest potential
until we accomplish one more goal and that's transportation.
The people of Many have worked diligently for the last 25 years
to expand our airport and are pleased to report that within 5
years jet planes will be able to land, for the first time, in
Sabine Parish.
I have served on the El Camino Real Commission for the last
23 years. It's a 5 State commission to 4 lane highway 6 from
New Brunswick, Georgia to El Paso, Texas. I'm keenly interested
in four-laning from Pendleton Bridge to 49, opening up Toledo
Bend country, allowing that economic engine to produce more
than we ever imagined.
We here today are asking you to continue to support the
Toledo Bend project and help us accomplish these goals so that
this area can reach its fullest potential and in doing so build
a stronger North Louisiana for generations to come.
The Chair. Thank you, Mr. Mayor, very well done.
Mr. Ruffin.
STATEMENT OF WILLIAM RUFFIN, PRESIDENT, SABINE PARISH POLICE
JURY
Mr. Ruffin. Thank you, Senator.
The Chair. President Ruffin.
Mr. Ruffin. As the other panelists have already done,
stated beforehand, we're very pleased to have you here with us
in Sabine Parish. On behalf of the governing body of the Parish
and the citizens of this entire Parish, we certainly salute
you. We'd like to commend you for your new appointment and even
though this is not a political committee, we don't dare think
of not keeping you in the position that's so vitally important
to the State and the citizens of Louisiana and this entire
Parish.
As for the Toledo Bend project I'd like to emphasize
continue with the same things that others have mentioned, the
importance in terms of recreation and economic value. It is
quite obvious that the police jury and the citizens depend upon
the economic value. That's so vitally important to all of them,
the taxes that's drawed from the Lake, Toledo Bend Lake.
But I would also like to emphasize the importance of
recreation thanks to Toledo Bend Lake Association, the
Authority, the Tourist Commission. The Toledo Bend Lake has
attracted retirees, that the Mayor just pointed out. They don't
just come here to fish, recreation seasonal. We still have
that.
But since the lake opened, yes I remember that too, there
have been a number, as Linda pointed out, a number of people
that have come from all over the country and retired in this
area. There's very seldom mention the human resource that's
brought on by the lake. We benefited from people from all over
this country that come here to retire. They bring their
expertise.
Yes, they do retire, but very few of them come here just to
fish. Even if they do, they find themselves becoming very
active throughout the community.
We have one example. An individual from the Lake
Association that served on the Authority was voted citizen of
the year in Sabine Parish just a few years ago. Those people
are very, very important to the development of this Parish and
to the lake. We certainly hope you will continue to support the
growth and development of the lake for all the reasons have
been mentioned.
I am very pleased to point out, thanks to Senator Long and
Representative Frank Howard, the Police Jury appointed a long
range water planning committee to study the feasibility of
water. Water is so vitally important as you've heard any number
of times. It is very important. We recognize that.
But we have a committee. Next week we're going to appoint
an engineer. Thanks to Senator Long and Howard, we received a
grant to do a long-range study for water in Sabine Parish. The
Police Jury will appoint an engineer next week so that we can
get started on that study, the feasibility study. We're going
to rush that right through so we can go on with the plan of
developing water for the citizens in this entire Parish.
As has been pointed out any number of times before, the
growth of Toledo Bend and Sabine Parish is hindered by the lack
of water, the availability of water as so vividly have been
pointed out in a number of cases before. But we're working on
that. We certainly hope that you would assist in the continued
growth of that.
We know we have the support of Senator Long and Senator
Howard, our State led. But we also know that Northwest
Louisiana, we are aware the location. It's a little different
from South of 10.
It is difficult to receive those funds. But we have very
strong legislators that are working diligently to help provide.
We certainly appreciate all the support that you can give us in
that endeavor. We feel like the future of Sabine Parish depends
largely on the growth of Toledo Bend.
All that you can do and we welcome you back numerous times.
We want you to come back. I remember before when Linda had you
here. We went down and I would invite all of those of you that
are here and encourage others. We were able to travel by barge
down the lake and to just look on the shores at the growth of
Toledo Bend. It is fantastic.
I'm very proud to say, Toledo Bend, Sabine Parish is my
home. When we walk out at Cypress Bend and we went through that
endeavor. I've been on the jury for a couple of years too when
we had to struggle to get Cypress Bend even built. It was
indeed a struggle.
But it has been good for the Parish. We certainly
appreciate your continued support in that.
The Chair. Thank you all very much, really appreciate the
testimony today.
Let me just begin by getting a few questions on the record
to you, Mr. Pratt. Then I have some additional questions for
the panelists.
The Sabine River Authority as you testified today has spent
$11 million on, approximately $11 million, I think you said, on
reauthorization. How much money, roughly, would the Authority
save if you can or we can secure the 50-year license instead of
the 30 or 40 year?
Have you roughed that savings out?
Mr. Pratt. Apparently the initial cost of the $11 million
is gone. The good news is is that the last time we went for a
rate negotiation with the power companies we had an $8 million
estimate. So we recovered that.
But the reality----
The Chair. I'm not--can you make that clear to me? I'm
sorry. You've already spent the $11 million to date with the
reauthorization.
Mr. Pratt. Yes.
The Chair. But when you renegotiated your power you got an
$8 million plus over what you were expecting?
Mr. Pratt. No. It was factored into our current rate. But
that rate goes away here within the next year or two. We'll
have to start over.
But once we've made that expenditure though and the real
challenge that we're going to have, Senator, is is that there
are mandates and additional obligations under the terms of the
new license that we agreed to that will cost us an extra amount
per year.
The Chair. OK. Let's talk about what one or two of those
just might be.
Mr. Pratt. Sure.
The Chair. If you have it. Just as clear as you can be, one
or two requirements that are going to increase your operating
cost.
Mr. Pratt. One of those that was very apparent is is that
the amount of water that we were releasing through the power
plant we've had to adjust that somewhat. It diminishes a little
bit of our power production on an annual basis.
The Chair. You've been required to reduce it or increase
it?
Mr. Pratt. Reduce it.
The Chair. Reduce it.
Mr. Pratt. Reduce it.
The Chair. For what reason?
Mr. Pratt. For what reasons? It was a balancing of the
flows downstream. There wasn't any real albatross or anything
that was out there. But it was just concerns that the resource
agencies had that we were releasing large slugs of water. Then
when we quit generating then it was down to a very minimal
amount.
We agreed with them to work with them. Now we didn't go----
The Chair. You agreed to make it a more steady flow?
Mr. Pratt. Yes, Ma'am. Yes, Ma'am.
The Chair. Instead of the surge?
Mr. Pratt. Right.
The Chair. That's going to reduce a little bit of your
income?
Mr. Pratt. It will because some of that constant flow will
actually be released through our spillway rather than the power
plant itself. So there's no power generated when we do that.
Now as an alternative condition that we've asked for in the
license is that we try to capture some of that release at the
spillway in a mini hydro unit. We won't know for sure until we
get the license and then see if that will be economically
feasible.
It won't produce a whole lot of power. But again, trying to
capitalize on if we're going to release water for environmental
purposes, run it through a small turbine and that will offset.
In addition what strikes me most is that the Federal lands
that the U.S. Forest Service owns along the shoreline. We----
The Chair. On the Texas side?
Mr. Pratt. Yes, Ma'am. That are on the Texas side, but of
course we're jointly responsible for the administration of
those lands. We planned that we will be doing some historic
surveys on those lands at their demand, basically, over the
next several years.
Now once your bill moves forward and we can exchange lands
with the Forest Service and own them ourselves, then that will
mitigate our future cost of having to do archeological surveys
on public land.
The Chair. OK.
Senator Long, let me ask you this.
Do you think or could you describe the level of
understanding currently, not only yours, but not so much yours
because you clearly understand it. But among the Governors that
you've served with, among legislators that you've served with
in both parties, do you think that there is an understanding
about the value of this particular resource and how, if a few
things could be done and stronger partnerships it could really
develop more along the lines of what Ms. Curtis-Sparks and
Mayor Freeman and President Ruffin have outlined?
Mr. Long. Senator, that's a great question. I think people
understand the significance of a global concept or a national
concept of water. We're beginning to see that pretty clearly as
we look at the fact that 36 states currently are in a drought
condition or semi-drought condition.
What has not yet hit home in Louisiana is the significance
of the role of Toledo Bend in mitigating some of these issues
that are national in scope. Now look, I felt very strongly to
protect the integrity of our water here. But we have to realize
also that we have a diamond in the rough and that 90 percent of
our water in Toledo Bend eventually ends up in the Gulf of
Mexico.
So we've got to be proactive in figuring out how we can
manage this valuable resource. No one that I know would
deliberately give away 90 percent of their assets. So we do not
understand how this wonderful situation that we've inherited
with the growth of our area in our State and Toledo Bend fit
together.
The Chair. That's exactly my point. I'm so glad you raised
it because initially when this was built the idea was that the
hydropower and electricity would be the driving value. It is
clear today after 50 years that the driving value is the water
itself. So that the Authority has a very significant
responsibility to manage that water for the highest and best
use of the communities in which it serves.
It's a little bit unsettling and ironic that I hear the
testimony that Toledo Bend is sending all the water necessary
for international plants to operate, but the community that
lives here can't get clean drinking water or water enough for
its development of its subdivisions and schools and you know,
commercial developments. It's a little bit unsettling here.
Mr. Long. Senator, if I----
The Chair. So help me understand what you think or what the
Authority thinks is its responsibility to the local
communities, particularly the 3 parishes of Sabine, Desoto and
Vernon and then you've also got Beauregard, Calcasieu and
Cameron, but Sabine, Desoto and Vernon.
Mr. Long. Let me address that briefly. Others here
certainly have greater knowledge than I do on this.
The grant that Mr. Ruffin spoke about is a $13 million
capital outlay which I was able to put into and work with the
Administration. Now the caveat on that, under some of the rules
we've passed at Baton Rouge which aren't necessarily, in my
opinion, favorable for small parishes, require a 25 percent
match. In other words if I get $13 million, $3.2 million of
that has to be paid locally.
I want to say this again without politicalizing anything.
We worked with the Administration very closely. We were able to
get that $3.25 million waived.
The Chair. That is terrific.
Mr. Long. As a results of that----
The Chair. That is a great effort.
Mr. Long. Yes.
The Chair. Congratulations because I have something to say
about these matches. But thank you for doing that.
Mr. Long. But to answer your question is that without a
doubt the 3 parishes that surround the lake itself are the ones
most influenced. We believe that once this project, this $13
billion project is implemented it could well address, perhaps
as much as 80, 85 percent, of these ongoing issues that have
been, obviously, a problem in expanding them.
The Chair. A barrier for expanded economic development.
Mr. Long. Yes, exactly.
The Chair. Whether it's retirement communities, whether
it's additional, you know, lodging and hospitality, whether
it's small, commercial enterprises and restaurants and you
know, hardware stores and you know, auto mechanic supplies,
shoe repair. I mean, you could just think of when you bring in
people that come in either to live permanently throughout the
year, particularly for seasonal. You know, they come in, spend
a lot of money.
Don't really rely a lot on the resources. I mean, sometimes
families come in just for vacationing. You don't have to give
them too much hospital care. You don't have to give them
schools. You don't give them too much policing.
But they spend a lot of money while they're here. So
they're kind of the best kind of dollar you can generate for
your community. All they really want to do is spend their money
in your community. Then they leave to other places. That's
$1.00.
The other dollars are attracting long term, you know,
annual residents that can come in, that do have access to good
schools, hospitals, you know, key shopping opportunities so
families can think that they can.
I have to say one of the other reasons that drives me to
this table now is because of the great benefit this is to Fort
Polk. You all know as one of the great characteristics or
assets that we put on the table to the Pentagon when they're
looking around closing some of our joint training bases. We had
said why would you close Fort Polk when we've invested over a
billion dollars of infrastructure in housing? The State,
because you all have, as well, worked with us to put in some
additional infrastructure to Fort Polk and the soldiers and
their families at Fort Polk have access to a world class
recreational, you know, facility, Toledo Bend.
That scores a high mark in the Pentagon when they're
looking at well, we should probably not look at closing Fort
Polk core. So that is another economic driver for this whole
region that is in some ways directly related to what happens
here. So that military piece is really, really important.
President Ruffin, let me ask you this. Have you all
estimated for your parish what the sewer build out might be for
supplying or wait, I'll come back to you ask you, Linda, too,
the, you know, just the basic water, sewer connections that
would allow the kind of just regular development that goes on
in subdivisions and communities throughout the State.
Do you have a rough estimate of what your cost might be
there?
Mr. Ruffin. It would be extremely difficult because we have
not looked into that. But we do understand without the long
range water planning that we spoke of.
The Chair. Right. You can't do the development.
Mr. Ruffin. It is totally out.
The Chair. So until you get the study done it's hard to
figure out what it's going to be.
Mr. Ruffin. It's going to be because we don't have it and
we've not had it before. This is new.
The Chair. So this is going to be a great first step that
Senator Long has managed to secure for you all.
Mr. Ruffin. It certainly is.
I might point out that this study was hindered because when
the jury was confronted with this it was totally out of the
question if we had to do that now.
The Chair. Let me say a word about the match because I say
this all over the country and I'm going to say it right here. I
think it is wrong headed policy for the Federal Government or
for State government, Senator Long, to require the same match
for urban and rural and the same match for densely populated
areas and sparsely populated areas.
If you think about it when we pass laws and we do this,
unfortunately, all the time at the Federal level and at the
State level, where we give out grants but you can only access
the grants if you can come up with the match. If you think
about what happens over time as all taxpayers send money to the
State, rich and poor alike. All taxpayers send money rich and
poor alike to the Federal Government. But the only counties
that can pull the money back down are the richer parishes
because they're the only ones that can afford the match.
It is an absolutely self defeating system that has to stop.
Now I'm an appropriator. I've been an appropriator since I
was 23 years old. I have been trying to get this changed. To
some degree, have by doing exactly what Senator Long did by
occasionally getting enough power to waive the requirement.
But that policy has to change. It should be stricken from
our laws. There should be a graduated match with the poor
parishes being able to put up like a 5 percent or a 10 percent.
The middle income parishes put up 15 or 20. The wealthier
parishes actually put up a 30 percent match. That would make
everything much more fair whether you're talking about highways
or water or sewer, etcetera.
So I'm going to continue, you know, to speak about this.
I'm making very incremental progress.
But thank you, Senator Long, because it's just absolutely
unfair to a community that's a rural community and can't, you
know, pool together sometimes the resources it needs to claim
the funding that is truly theirs.
The other thing is I hope the local authorities with the
assessors and these parishes will look at the increased
revenues that are coming to the parishes based on the
development here. Linda, as you said, people aren't living in
trailers, they're living in million dollar homes.
Those homes are being assessed. They're paying property
tax. Same exact thing is happening in Grand Isle. You know, the
generation of wealth in Grand Isle and it all goes to Jefferson
Parish, but I keep telling Jefferson Parish, you should share
some of that revenue back with Grand Isle because they're a
small, little place, but they're generating, they're a
generator of income for Jefferson Parish.
So it's sort of the same thing up here that you've got
these communities that are generating income to the parish. I
hope the parish will be sensitive and help you continue to
invest back in this community for it to grow for, you know,
public access, boat launches, all the things, new lodging,
etcetera.
So do you want to add anything? We're going to wrap up in
just a few minutes.
Ms. Curtis-Sparks. No, I think it is important though,
because this is a regional project too, for your records is
that several of them, Ken and Mr. Ruffin have mentioned the
retirement development which I did not touch on a great deal.
But about a third of the retail value of those that have
settled here goes to Shreveport, Bossier and to Rapides and so
that is one help that Senator Long can gather those people. But
when he has, as I said, he's one vote and you have 17 in Lake
Charles and you have 55 in New Orleans, it's hard for him to be
able to bring that money up here.
We just got a time in a lifetime here. We're very
appreciative to him.
But the retirement value of that or the economics, I want
you to understand, is just not for Sabine Parish. In fact, the
State of Louisiana last year recognized what you mentioned.
They put $200,000 into internet marketing for Vernon because of
Fort Polk, Toledo Bend, because of the retirement here in
Shreveport Bossier. They just put another $125,000 into
marketing for the month of May because it has generated so much
interest in our areas.
Incidentally, Toledo Bend beat Shreveport Bossier, you
know, which is a real plus. But other people----
The Chair. Beat them in what way? Beat them in what way?
Ms. Curtis-Sparks. Toledo Bend beat Shreveport Bossier as
far as the Google analytics, the number of people that it drove
to us, to our website verses Shreveport Bossier's and Vernon's.
So there's tremendous interest out there.
But we're continually telling the story. It's not just the
benefit of those retirees to Sabine. Those people go to
Shreveport Bossier for medical help. They go they buy cars and
boats and appliances, same thing to Rapides.
So it is a regional benefit from that economic development
that is being done here in Sabine Parish.
Mr. Freeman. Senator, to underscore what Linda just said.
In the last 30 years I've seen the sales tax revenues for the
citizens of Many increase 97 percent. That's significant in
real dollars.
So it is----
The Chair. Identifying where those drivers of that increase
sales tax are coming from and increased property taxes and then
having the local officials reinvest in the areas that are
generating it will help the whole community grow.
I'll continue to work with you all on that informally. But
I'll continue to work with the Authority officially through the
reauthorization of FERC to see what I can do to strengthen the
Authority to help them save as much money as they can in their
petitions and relicensing to the Federal Government so we can
generate, maybe, some additional resources that could be spent
right here at home at the Louisiana side of the Sabine. Also
help out our Texas friends on their side as well.
Let's go for one 30 second closing comments.
Senator Long, just anything that you want to put on the
record that hasn't been put that you think should be?
Mr. Long. Again, as I have commented earlier water is going
to be absolutely the driving force, not only in Louisiana but
throughout the Nation. We have a diamond in the rough. If we
can figure out how to manage it properly I think you'll see an
economic explosion that will benefit the entire State.
The Chair. Thank you.
Mr. Pratt.
Mr. Pratt. Yes, Ma'am.
Fifty-year minimum license, Federal land swap with the U.S.
Forest Service and exemption from any FERC fees for occupying
Federal lands.
Thank you.
The Chair. Thank you.
Lin.
Ms. Curtis-Sparks. I have to amen what Jim has said and
mention just one quick thing that was not mentioned is that as
far as your question on other things in the FERC license.
I think that SRA has made every effort to try to not hinder
economic development with residents and businesses. But the
shoreline development policy we would ask that it not require a
great amount of funds in the future in meeting requirements
because that's going to impact economic development.
The Chair. Absolutely.
Ms. Curtis-Sparks. If you would note that too. But thank
you so much.
The Chair. Thanks.
Mayor.
Mr. Freeman. I agree with the world population from and 100
years going from 2 billion to 6 billion people on this earth to
in the last 10 years growing another billion. Water is going to
be essential and very valuable resource.
But for us here today transportation, again. You've got to
be able to get in here and get out. I think that's going to be
an integral role in developing it to its fullest potential,
four-laning highway 6 at least to I49.
The Chair. Thank you.
President Ruffin.
Mr. Ruffin. Yes.
One of the most important things and that you mentioned
about reinvesting into the communities that develop the tax
base and all. It is vitally important that we recognize the
fact that as governing body of this entire parish it's pretty
much like a family. Regardless to what one individual does that
individual represents our parish, our family.
So is true with Toledo Bend Lake as to Toledo Bend
community grows so does Sabine Parish. The governing body has
the responsibility of making sure that the entire parish grows
along with Toledo Bend and to polarize one group from another.
It is a difficult task because we've received so many
resources from the lake area. But we have areas that don't
receive just in the State of Louisiana and Northeast Louisiana.
They don't get near as much as they do in South Louisiana. But
then we still have to take care of Northeast Louisiana too.
The same is true with our parish government. We have to
make sure that the entire parish is taken care of.
The Chair. Thank you.
Excellent note to end on. It's been a terrific meeting.
We've all learned a lot. Put a lot on the congressional record
that I think will help this community and our State for many
years to come.
Meeting adjourned and thank you all so much.
[Applause.]
[Whereupon, at 11:44 a.m., the hearing was adjourned.]
[The following statements were received for the record.]
Statement of the Sabine River Authority of Texas
This written statement is submitted on behalf of the Sabine River
Authority of Texas (SRA-Texas). SRA-Texas, established by the Texas
State Legislature in 1949, is an official agency of the State of Texas
that provides an essential public function on behalf of the citizens of
Texas, which it serves. We were created as a conservation and
reclamation district with responsibilities to control, store, preserve
and distribute the waters of the Sabine River and its tributary streams
for multiple public purposes, including domestic use, agricultural
production, manufacturing and other industrial and commercial purposes,
hydroelectric power production, navigation, recreation and tourism.
SRA-Texas's operations extend to all or part of 21 counties (Orange,
Newton, Jasper, Sabine, San Augustine, Shelby, Rusk, Panola, Harrison,
Gregg, Smith, Upshur, Wood, Van Zandt, Kaufman, Rains, Rockwall,
Collin, Hunt, Hopkins, and Franklin), which lie within the watershed of
the Sabine River and its tributaries.
We supply water to municipal, industrial and agricultural users
throughout the Sabine River Basin. This is accomplished through the
John W. Simmons Gulf Coast Canal System in Orange County, the Toledo
Bend Reservoir, the Lake Tawakoni Reservoir, and Lake Fork Reservoir.
Our customers include municipal and domestic clients with the largest
being the Cities of Dallas, Longview and Greenville. We also have
industrial clients, which include DuPont, International Paper and Texas
Eastman.
SRA-Texas is governed by a nine-member Board of Directors appointed
by the Governor of Texas to serve six-year terms. Board members are
vested with the management and control of the affairs of the SRA-Texas,
which receives no appropriations from the State and is not empowered to
levy or collect any kind of taxes. Operating funds are primarily
derived from the sale of raw water, hydroelectric power, water quality
services, and recreational and land use permit fees. Currently we have
104 full-time positions and operate within a budget of approximately
$21.6 million.
overview of toledo bend project
One of SRA-Texas's most significant responsibilities is the Toledo
Bend Project (Project), located on the main stem of the Sabine River in
the counties of Panola, Shelby, Sabine and Newton, and in the parishes
of De Soto, Sabine, and Vernon in Louisiana. In terms of both surface
area (approximately 185,000 acres) and storage capacity (approximately
4.5 million acre feet), Toledo Bend Reservoir is one of the largest
water bodies in the United States, and is the largest reservoir in the
nation that is not owned and operated by the federal government. SRA-
Texas manages the Project with its co-licensee, the Sabine River
Authority, State of Louisiana. The Project is the only hydropower
facility in the United States that is co-licensed by the Federal Energy
Regulatory Commission (FERC) to two states through governmental units
of those states.
The Project was conceived, licensed, and developed primarily as a
water supply facility, but also provides hydroelectric power
production, economic development, and public recreation. The Sabine
River Compact (Compact), signed by representatives from Louisiana,
Texas, and the United States in 1953 and approved by Congress,
apportions the waters of the Sabine River Basin below the state line
equally between the two states. In 1959, the States of Texas and
Louisiana arranged for the financing of $30 million in revenue bonds
for the Project; the sale of electricity from the Project's
hydroelectric operations provided funds to pay for the revenue bonds.
The Project is the nation's only public water conservation and
hydroelectric power project to be undertaken without federal
participation in its permanent financing. Prior to its construction,
the Federal Power Commission (FPC), predecessor agency to the FERC,
granted a 50-year license to the Authorities in 1963. The Authorities
completed construction and commenced operations of the Project in 1969.
Today, the Project has the capacity to produce approximately
240,000 megawatt hours of clean, renewable energy annually--enough to
power about 16,000 homes. Toledo Bend Reservoir also provides water
supply for local municipalities and industries, as well as supports
jobs and businesses throughout the lower Sabine River Basin through the
provision of a dependable water supply. In fact, Toledo Bend is the
largest unallocated supply of fresh water in Texas, and the reservoir
is considered crucial to meeting future water demands in the region,
which are expected to increase in Texas alone by 92 percent over the
decades between 2010 and 2060. Finally, Toledo Bend supports a world-
class bass fishery, which supports economic development in the region
through the numerous recreational opportunities provided by the
Project.
project area
The Toledo Bend shoreline is approximately 1,200 miles in length--
longer than the entire west coast of the continental United States. In
Texas, the shoreline offers numerous public recreation facilities,
commercially owned marinas and other businesses, private docks and boat
houses on lands leased to adjacent landowners, and undeveloped lands.
It also includes approximately 4,000 acres of federal lands
administered by the United States Forest Service as part of the Sabine
National Forest, as well as the Indian Mounds Wilderness Area (IMWA).
IMWA was congressionally designated in 1984--more than 20 years after
the original Project licensing and 15 years after Project construction.
No Project structures, facilities or works occupy lands within IMWA.
project purposes and benefits
In addition to serving as a key source of water supply to meet the
municipal, industrial, and irrigation water needs for both Texas and
Louisiana, and providing low-cost, emissions-free renewable energy to
ratepayers in Eastern Texas and Western Louisiana, the Project is a
significant economic engine in the region, supporting jobs, tourism,
and local businesses. Among the economic benefits made possible by the
Project in Texas are numerous public recreation facilities and many
private businesses dependent on recreation at Toledo Bend. We believe
that in the coming years, as water shortages increase in parts of the
United States and natural outdoor environments continue to confront
development pressures, the Toledo Bend Project will become an
increasingly valuable asset of the States of Texas and Louisiana.
relicensing process
The Project operates under the license issued by the FPC in 1963,
which expired at the end of September, 2013. The Authorities'
application for a new license was filed in September 2011 and currently
is pending at the FERC.
The Authorities developed the license application through an 8-year
process that included the development and filing of a notice of intent
to apply for a new license and pre-application document, extensive
environmental scoping and studies, and 5 years collaborating with all
relevant federal and state agencies and the interested public both
before and after the application for a new license was filed with the
FERC.
The relicensing process also involved a successful comprehensive
settlement with federal and state resource agencies, reached after more
than a year of intense settlement negotiations. The settlement sets
forth mutually agreeable terms and conditions for the operation of the
Project over the new license term, and includes measures that protect
and enhance fish and aquatic resources, public recreation, water
quality, and preserves the value of hydropower production and water
supply.
In addition, as part of the relicensing effort the Authorities have
proposed to construct a new renewable generating facility in Louisiana
to take advantage of water releases from the Project spillway, which is
expected to produce approximately 11,600 megawatt hours of renewable
energy--enough to power about 800 homes each year.
This onerous relicensing process has come at considerable cost to
the two Authorities, as follows:
The relicensing process costs (e.g., environmental and
engineering consultant fees, environmental studies, legal
expenses, document preparation, and other related expenses)
have totaled over $10 million since inception, and the
Authorities expect a total expenditure of over $11 million by
the time the license is issued later this year.
Capital costs associated with implementing new license
measures are estimated at $3.6 million (not including the
capital costs of the new small generating facility at the
spillway).
Annual costs associated with operation and maintenance of
new protection, mitigation, and enhancement measures set forth
in FERC's staff preferred alternative (which includes measures
in the relicensing settlement agreement) are estimated at $3.7
million.
In addition, the Authorities estimate that they lose $2.6
million in revenue each year as a result of enhancing
recreation at Toledo Bend Reservoir by restricting normal
hydropower production to periods when Toledo Bend Reservoir is
above 168 feet mean sea level (msl) (even though the Project
was designed to draw reservoir levels down to elevation 162
feet msl for power generation).
Together, these costs will increase the Project's total operating
costs by more than $7 million each year over a 50 year license term.
For a Project with current operating costs of approximately $16.5
million annually, these relicensing costs substantially increase the
Project's total operating costs by nearly 44% annually, even if the
FERC issues the statutory maximum new license term of 50 years. Of
course, this increase would be even more substantial if the FERC issues
a new license for less than 50 years.
land exchange legislation
The Authorities very much need the enactment of S.1484, the Sabine
National Forest Land Exchange Act of 2013, of which Chairman Landrieu
is the lead sponsor. Senators David Vitter (R-LA) and John Cornyn (R-
TX) are also original sponsors of this legislation. This legislation
would remove some aspects of federal oversight under the FPA that
potentially could cripple the many benefits provided by the Project on
a going-forward basis. Currently, the presence in the Project of
approximately 4,000 acres of federal land administered by the U.S.
Forest Service imposes a considerable regulatory and cost burden on the
Authorities, both now and into the future. The legislation sponsored by
Chairman Landrieu, Senator Vitter and Senator Cornyn would remove these
challenges and ensure that the Project can continue to be a valuable
asset of the people of Texas and Louisiana.
The existence of Sabine National Forest lands within the Project
gives ``mandatory conditioning authority'' to the U.S. Forest Service
under section 4(e) of the FPA. This broad authority allows the U.S.
Forest Service to impose upon the Authorities' FERC-issued license any
conditions it believes would adequately protect and utilize Sabine
National Forest. Because the U.S. Supreme Court has held that FERC has
no authority to modify or reject these conditions, there is no
guarantee that a future FERC-issued license will be balanced in the
public interest for both developmental and non-developmental values, as
required by the FPA. Given the unique structure of FPA section 4(e)--
where one agency can override the action agency's overall licensing
authority--there is little opportunity in the relicensing process for
the Authorities and other hydropower licensees to challenge the factual
merits of the conditions.
Fortunately, the Authorities were able to work closely with the
U.S. Forest Service in the current relicensing process and resolve all
their issues through a negotiated settlement of the FPA section 4(e)
conditions that will apply to the new license. In a future licensing
proceeding involving the Project, however, the Authorities should not
be subjected to the risk that the U.S. Forest Service could impose
onerous or crippling conditions to protect its narrow interests at the
expense of the broader purposes of the Project.
In addition, removal of Sabine National Forest lands from the
Project, together with the assurance that other non-fee federal
interests in Project lands would not trigger land use fees under FPA
section 10(e), would remove the threat to the Authorities to pay
extraordinary federal land use fees to FERC. According to an estimate
by the Authorities, these FERC fees could be as high as $3 million
annually, which would wreck the economics of the Project. The FERC is
not collecting these fees from the Project for two reasons: (1) the
FERC has found that Project power is provided to consumers without
profit; and (2) the FERC has determined that it will not collect these
fees at all from anyone right now, but has not rejected its authority
to collect these fees. The potential liability of the Project for these
fees is exacerbated because a prior land exchange in the 1980s retained
the federal government's ``power site reservation'' on over 30,000
acres of lands inundated by Toledo Bend Reservoir. This ``power site
reservation'' is the alleged basis of this fee by the FERC. The
Authorities are pleased about the refusal of the current FERC to
collect these fees, but also are keenly aware that a future FERC could
change this position and determine to collect these excessive and
unjustified fees in the future. Because any further change in FERC
policy could be devastating to the Project, we support a legislative
solution that removes FERC's power to collect fees for any interest in
federal land at the Project.
no additional relicensing processes
Finally, we question why this Project should undergo another
relicensing in 30 to 50 years. At that point, the Project will have
been operating for 80 to 100 years, which provides ample time to fully
understand and address environmental effects of its operations. The
comprehensive, complex, costly and time consuming ``audit'' of the
Project--which is what the re-licensing process is all about--against
the full spectrum of environmental laws of the nation will be
completely unnecessary. The Project has now been through an original
licensing and, very recently, a relicensing. SRA-Texas has no objection
to remaining under the jurisdiction of the FERC according to the terms
of our settled license conditions, which will contain sufficient
authority to reopen the license, where justified, to address any
implementation issues that might arise at the Project.
We view this entire costly application process for a new license in
30 or 50 years to be an imposition of government expense of
questionable value. This Project is an asset owned by the people of
Texas and Louisiana, and it is the only FERC-licensed Project in the
nation that is owned by two different states. This Project is not
operated for profit, but for the benefit of the people of Texas and
Louisiana. Therefore, we ask Chairman Landrieu to do all in your power
to relieve this Project of incurring another major expense--which may
be much greater in 30 or 50 years than our current relicensing--
occasioned by the requirement to seek a new license periodically.
conclusion
Thank you, Madam Chairman, for your great interest in the success
of the Toledo Bend Project and for this hearing that you are conducting
on the Project. We appreciate your support and your leadership in
Congress to address issues that will enable this important state asset
to achieve its full potential as an electricity producer, a water
supply facility and an engine of economic development for Eastern Texas
and Western Louisiana.
______
277 Hwy 118,
Florien, LA, May 17, 2014.
Hon. Mary Landrieu,
Chairman, Senate Energy and Resources.
RE: Committee Hearing., Cypress Bend Complex, Toledo Lake
Following are means that Federal Government can assist in increase
of Economic benefits in area of Toledo Bend Lake and. Sabine River:
While being blessed with a north/south 4-lane highway (U.S.
171) Shreveport To Lake Charles, Louisiana., most tourist from
South Louisiana arrive via I-40, taking 2-lane La. Hwy 6 to
Toledo Lake area. A bottle neck in town of Many Louisiana can
be eliminated with funding cost of $450,000. Federal Funding of
80% is needed to begin the DODT project.
Funding for Sabine River Authority Louisiana to construct a water
supply lift station in Desota Parish for water supply used for
FRACTURING in the Haynesville oil fields situated in Northwestern
Louisiana and East Texas and for other area water needs.
Funding for a salt water barrier on Sabine River. Salt Water,
currently, is only a short distance from the Louisiana Diversion Canal
that supplies fresh water for all the commercial ventures in Calcasieu
Parish area--providing TENS OF THOUSAND Jobs. None of the plants can
operate with Salt Water. This salt water barrier is a must--now--and
not later. Should the salt water move north a short distance (to the
Diversion Canal intake station)--more than 30,000 jobs will be lost.
These are only a few means in which federal Funding can and will
impact economic cond. its in the Toledo BenD and Sabine River area.
Bobby Williams,
Member, Sabine River Authority, Louisiana, Sabine River Compact
Administration (La. & Texas), Sabine Parish Sales & Use Tax
Commission,El Camino East/W Corridor Commission (La. 6 U.S. 84),
Western Corridor Commission (U.S. Hwy 171), West Louisiana Veterans
Park