[House Report 106-629]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-629
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TO EXTEND THE DEADLINE FOR COMMENCEMENT OF CONSTRUCTION OF A
HYDROELECTRIC PROJECT IN THE STATE OF ALABAMA
_______
May 19, 2000.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Bliley, from the Committee on Commerce, submitted the following
R E P O R T
[To accompany H.R. 3852]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, to whom was referred the bill
(H.R. 3852) to extend the deadline for commencement of
construction of a hydroelectric project in the State of
Alabama, having considered the same, reports favorably thereon
without amendment and recommends that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 2
Committee Consideration.......................................... 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 3
Committee on Government Reform Oversight Findings................ 3
New Budget Authority, Entitlement Authority, and Tax Expenditures 3
Committee Cost Estimate.......................................... 4
Congressional Budget Office Estimate............................. 4
Federal Mandates Statement....................................... 5
Advisory Committee Statement..................................... 5
Constitutional Authority Statement............................... 5
Applicability to Legislative Branch.............................. 5
Section-by-Section Analysis of the Legislation................... 5
Changes in Existing Law Made by the Bill, as Reported............ 5
PURPOSE AND SUMMARY
The purpose of H.R. 3852 is to extend the deadline for
commencement of construction of a hydroelectric project in the
State of Alabama.
BACKGROUND AND NEED FOR LEGISLATION
Section 13 of the Federal Power Act (16 U.S.C. Sec. 806)
establishes time limits for commencement of construction of a
hydroelectric project once the Federal Energy Regulatory
Commission (FERC) has issued a license. The licensee must begin
construction not more than two years from the date the license
is issued unless FERC extends the initial deadline. However,
section 13 permits FERC to grant only one extension of that
deadline for ``not longer than two additional years * * * when
not incompatible with the public interests.'' Accordingly, FERC
lacks authority to extend the deadline beyond a maximum of two
years from the original deadline for commencement of
construction. Therefore, a license is subject to termination if
a licensee fails to begin construction within four years of the
date the license is issued.
Lack of a power sales contract can delay the commencement
of construction of licensed hydroelectric projects. Some
hydroelectric project developers cannot secure financing to
fund construction until they enter into power sales contracts.
Generally, a licensee cannot enter into a contract until it has
a license, and the construction deadline begins to toll once
the license is granted. The tremendous uncertainties in the
electric industry discourage power purchasers from entering
into the long-term power sales contracts that in the past often
financed hydroelectric project construction. There are other
obstacles to commencement of construction, such as protracted
proceedings on a licensee's application for a dredge and fill
permit from the Army Corps of Engineers under section 404 of
the Clean Water Act. FERC has testified that in such cases it
can issue orders staying the license until matters are
resolved, suggesting extension legislation is not needed in
order to address delays beyond the control of the licensee.
H.R. 3852 directs FERC to extend the deadline for the
commencement of construction of a 24 megawatt hydroelectric
project (Project No. 7115) in Houston County, Alabama, and
Early County, Georgia, for up to three consecutive two-year
periods. This extends the deadline to up to ten years after the
date the license was issued. The current deadline for
commencement of construction of this project expires on
September 21, 2000. H.R. 3852 does not ease the requirements of
a hydroelectric license, but merely extends the period for
commencement of project construction. H.R. 3852 provides the
licensee must meet the good faith, due diligence, and public
interest requirements of section 13 of the Federal Power Act.
HEARINGS
The Subcommittee on Energy and Power held a hearing on H.R.
3852 on March 30, 2000. The Subcommittee received testimony
from: The Honorable Frank Murkowski, United States Senate; The
Honorable George Radanovich, U.S. House of Representatives; The
Honorable Peter DeFazio, U.S. House of Representatives; The
Honorable James J. Hoecker, Chairman, Federal Energy Regulatory
Commission; The Honorable John D. Leshy, Solicitor, U.S.
Department of the Interior; Mr. Allen Burns, Vice President of
Requirements Marketing, Bonneville Power Administration; Dr.
Andrew Rosenberg, Deputy Assistant Administrator for Fisheries,
National Oceanic and Atmospheric Administration, U.S.
Department of Commerce; Mr. Paul Brouha, Associate Deputy
Chief, ForestService, U.S. Department of Agriculture; Mr.
Michael A. Murphy, President, National Hydropower Association; Mr.
Kevin Lynch, Director of Government Affairs, PacifiCorp; Mr. Andrew
Fahlund, Policy Director for Hydropower Programs, American Rivers; Mr.
Robert Grimm, President, Alaska Power & Telephone; Mr. David E. Piper,
Chief Executive Officer, Pacific Northwest Generating Cooperative; Mr.
Steve Waddington, Northwest Power Manager, Reynolds Metals Company; and
Ms. Lynne Kennedy, Hydroelectric Specialist, Oregon Department of
Environmental Quality.
COMMITTEE CONSIDERATION
On April 12, 2000, the Subcommittee on Energy and Power met
in open markup session and approved H.R. 3852 for Full
Committee consideration, without amendment, by a voice vote.
The Full Committee met in open markup session on May 17, 2000,
and ordered H.R. 3852 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 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. 3852 reported. A motion
by Mr. Bliley to order H.R. 3852 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 held a legislative
hearing on H.R. 3852 and made findings that are reflected in
this report.
COMMITTEE ON GOVERNMENT REFORM OVERSIGHT FINDINGS
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, no oversight findings have been
submitted to the Committee by the Committee on Government
Reform.
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.
3852, a bill to extend the deadline for commencement of
construction of a hydroelectric project in the State of
Alabama, would result in no new or increased budget authority,
entitlement authority, or tax expenditures or revenues.
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, May 18, 2000.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
U.S. House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3852, a bill to
extend the deadline for commencement of the construction of a
hydroelectric project in the state of Alabama.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Lisa Cash
Driskill.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Dirctor).
Enclosure.
H.R. 3852--A bill to extend the deadline for commencement of the
construction of a hydroelectric project in the state of Alabama
CBO estimates that enacting H.R. 3852 would have no net
effect on the federal budget. The legislation contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act and would not affect the budgets
of state, local, or tribal governments.
H.R. 3852 would extend the deadline for construction of a
hydroelectric project currently subject to licensing by the
Federal Energy Regulatory Commission (FERC) for six years. The
proposed extension is for FERC project number 7115. H.R. 3852
also would direct FERC to reinstate the license for the project
should it expire prior to enactment of this bill. These
provisions may 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 offset by an equal
change in the fees that the commission charges. Hence, the
bill's provisions would have no net budgetary impact.
Because FERC's administrative costs are limited in annual
appropriations, enactment of this bill would not affect direct
spending or receipts. Therefore, pay-as-you-go procedures would
not apply to H.R. 3852.
The CBO staff contact for this estimate is Lisa Cash
Driskill. This estimate was approved by Peter H. Fontaine,
Deputy Assistant Director for Budget Analysis.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
ADVISORY COMMITTEE STATEMENT
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. Extension of Deadline and Reinstatement of License.
Subsection (a) directs FERC, upon the request of the
licensee for Project No. 7115, and in accordance with the good
faith, due diligence, and public interest requirements of
section 13 of the Federal Power Act and FERC's procedures under
such section, to extend the time required for commencement of
construction of such project for up to three consecutive two-
year periods. Subsection (b) provides that subsection (a) shall
take effect on the expiration of the period required for
commencement of construction of Project No. 7115, September 21,
2000. Subsection (c) directs FERC to reinstate the license
effective on the date of expiration of the current construction
deadline and extend the time required for commencement of
construction, in the event the license is terminated before
enactment of the legislation.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
H.R. 3852 does not amend any existing Federal statute.