[House Report 109-685]
[From the U.S. Government Publishing Office]
109th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 109-685
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REINSTATEMENT OF LICENSE FOR FEDERAL ENERGY REGULATORY COMMISSION
PROJECT NUMBERED 7307
_______
September 26, 2006.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Barton of Texas, from the Committee on Energy and Commerce,
submitted the following
R E P O R T
[To accompany H.R. 4417]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 4417) to provide for the reinstatement of a
license for a certain Federal Energy Regulatory project, having
considered the same, report favorably thereon without amendment
and recommend that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 2
Hearings......................................................... 2
Committee Consideration.......................................... 2
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 3
Statement of General Performance Goals and Objectives............ 3
New Budget Authority, Entitlement Authority, and Tax Expenditures 3
Earmark.......................................................... 3
Committee Cost Estimate.......................................... 3
Congressional Budget Office Estimate............................. 3
Federal Mandates Statement....................................... 4
Advisory Committee Statement..................................... 4
Constitutional Authority Statement............................... 4
Applicability to Legislative Branch.............................. 4
Section-by-Section Analysis of the Legislation................... 5
Changes in Existing Law Made by the Bill, as Reported............ 5
PURPOSE AND SUMMARY
The purpose of H.R. 4417 is to reinstate the license and
extend the deadline for commencement of construction of a 20
megawatt hydroelectric project, the Tygart Dam Project (No.
7307), in West Virginia.
BACKGROUND AND NEED FOR LEGISLATION
Section 13 of the Federal Power Act, 16 U.S.C. Sec. 806
(2000), provides that after the issuance by the Federal Energy
Regulatory Commission (FERC) of a hydroelectric license, the
licensee must begin construction of the project within the time
specified in the license, which can be no more than 2 years
after issuance of the license. FERC may extend this deadline to
begin construction by 2 years. Thus, under the statute, FERC
may allow a licensee a maximum of 4 years from the date of
license issuance to begin construction of the hydroelectric
project. Section 13 also provides that if the licensee does not
begin construction within the time specified in the license or
as extended by FERC, then, after due notice, the license shall
be terminated by order of FERC. Congress can extend the
construction deadline beyond what FERC may authorize through
appropriate legislation.
H.R. 4417 directs FERC to extend the period specified in
the project license for commencing construction of the project
until December 31, 2007. If the license has already expired
before the date of enactment of this Act, reinstate the license
and extend the date for commencing construction until December
31, 2007.
This project was delayed because of problems and economic
conditions that have been resolved. This project is anticipated
to provide a substantial economic boost to Grafton, West
Virginia. The project developer is working on power sales
agreements. The project will be built at an existing dam,
minimizing environmental impact.
HEARINGS
The Subcommittee on Energy and Commerce held a hearing
nuclear waste storage and disposal policy, and hydroelectric
license extension and energy efficiency legislation, on
September 13, 2006. The Subcommittee received testimony from:
The Honorable Edward F. Sproat III, Director, Office of
Civilian Radioactive Waste Management, U.S. Department of
Energy; Mr. Luis A. Reyes, Executive Director for Operations,
U.S. Nuclear Regulatory Commission; The Honorable Stan Wise,
Chairman, Georgia Public Service Commission, on behalf of:
National Association of Regulatory Utility Commissioners; Mr.
Anthony F. Earley Jr., Chairman and CEO, DTE Energy Company, on
behalf of: Nuclear Energy Institute; Ms. Michelle Boyd,
Legislative Director, Public Citizen; The Honorable C. L.
``Butch'' Otter, Member, U.S. House of Representatives; The
Honorable Alan B. Mollohan, Member, U.S. House of
Representatives; and Mr. J. Mark Robinson, Director of the
Office of Energy Projects, Federal Energy Regulatory
Commission.
COMMITTEE CONSIDERATION
On Wednesday, September 20, 2006, the Committee on Energy
and Commerce met in open markup session and ordered H.R. 4417
favorably reported to the House, without amendment, by a voice
vote, a quorum being present.
COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto.
There were no record votes taken in connection with ordering
H.R. 4417 reported. A motion by Mr. Deal to order H.R. 4417
favorably reported to the House, without amendment, was agreed
to by a voice vote.
COMMITTEE OVERSIGHT FINDINGS
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee has not held oversight
or legislative hearings on this legislation.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
The goal of H.R. 4417 is to authorize FERC to reinstate a
terminated license to construct a hydroelectric power project
in the State of West Virginia and to extend the deadline to
commence construction of such project until December 31, 2007.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
4417, to provide for the reinstatement of a license for a
certain Federal Energy Regulatory project, would result in no
new or increased budget authority, entitlement authority, or
tax expenditures or revenues.
EARMARK
In compliance with H. Res. 1000 as passed the House of
Representatives on September 14, 2006, the Committee finds that
H.R. 4417, to provide for the reinstatement of a license for a
certain Federal Energy Regulatory project, contains no
earmarks.
COMMITTEE COST ESTIMATE
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 26, 2006.
Hon. Joe Barton,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4417, a bill to
provide for the reinstatement of a license for a certain
Federal Energy Regulatory Commission project.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Megan
Carroll.
Sincerely,
Donald B. Marron,
Acting Director.
Enclosure.
H.R. 4417--A bill to provide for the reinstatement of a license for a
certain Federal Energy Regulatory Commission project
H.R. 4417 would authorize the Federal Energy Regulatory
Commission (FERC) to reinstate the license for a hydroelectric
project (number 7307) in West Virginia. The bill also would
extend the deadline for commencing construction of that project
until December 31, 2007.
CBO estimates that implementing H.R. 4417 would have no net
effect on the federal budget. The bill would have a minor
impact on FERC's workload. Because FERC recovers 100 percent of
its costs through user fees, any change in its administrative
costs would be fully offset by an equal change in the fees that
the commission charges. Because FERC's administrative costs are
limited in annual appropriations, the bill would not affect
direct spending or revenues.
H.R. 4417 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
On June 5, 2006, CBO transmitted a cost estimate for S.
2028, similar legislation, as ordered reported by the Senate
Committee on Energy and Natural Resources on May 24, 2006. The
estimated costs of the two bills are the same.
The CBO staff contact for this estimate is Megan Carroll.
This estimate was approved by Robert A. Sunshine, Assistant
Director for Budget Analysis.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
CONSTITUTIONAL AUTHORITY STATEMENT
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for this legislation is provided in
Article I, section 8, clause 3, which grants Congress the power
to regulate commerce with foreign nations, among the several
States, and with the Indian tribes.
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Reinstatement of License for Federal Energy Regulatory
Commission project
Section 1 directs FERC to extend the time for commencement
of construction of Project No. 7307 until December 31, 2007. If
the license has expired by the date of enactment of this Act,
FERC will reinstate the license and extend the time for
commencement of construction until December 31, 2007.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.