[House Report 108-4]
[From the U.S. Government Publishing Office]
108th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 108-4
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TO EXTEND CERTAIN HYDRO-ELECTRIC LICENSES IN THE STATE OF ALASKA
_______
February 4, 2003.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Tauzin, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 337]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 337) to extend certain hydro-electric licenses
in the State of Alaska, 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.................................................. 2
Committee Oversight Findings..................................... 3
Statement of General Performance Goals and Objectives............ 3
New Budget Authority, Entitlement Authority, and Tax Expenditures 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................... 4
Changes in Existing Law Made by the Bill, as Reported............ 5
PURPOSE AND SUMMARY
The purpose of H.R. 337 is to direct the Federal Energy
Regulatory Commission (FERC), upon the request of the licensee,
to issue an order staying the license of a hydroelectric
project in the State of Alaska (Project No. 11393) pending the
construction of an associated transmission line. The
legislation also directs FERC to extend the deadline to
commence construction of the project for one additional two-
year period.
BACKGROUND AND NEED FOR LEGISLATION
Section 13 of the Federal Power Act (16 U.S.C. 806 (2002))
establishes time limits for commencement of construction of a
hydroelectric project once FERC has issued a license. The
licensee must begin construction not more than two years from
the date the license in 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 interest.''
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.
H.R. 337 would direct FERC to temporarily stay the license
for a project in the State of Alaska pending completion of an
associated transmission line. Once the transmission line is
completed, the bill directs FERC to lift the stay and extend
the deadline to commence construction for one additional two-
year period.
On January 22, 1998, FERC issued a license to the City of
Saxman, Alaska to construct, operate and maintain the 96
megawatt Mahoney Lake Hydroelectric Project No. 11393. The
project is located on Upper Mahoney Lake and Upper Mahoney
Creek near Ketchikan in southeast Alaska. The project is not
projected to be economic until the completion of the associated
Swan-Tyee transmission line. The Cape Fox Corporation, which
oversees the construction, operation, and maintenance of the
project, stands to lose a substantial investment in the project
if the license expires prior to completion of the transmission
line.
HEARINGS
The Committee on Energy and Commerce has not held hearings
on the legislation.
COMMITTEE CONSIDERATION
On Wednesday, January 29, 2003, the Full Committee on
Energy and Commerce met in open markup session and ordered H.R.
337 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. 337 reported. A motion by Mr. Tauzin to order H.R. 337
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 this legislation is to require the Federal
Energy Regulatory Commission (FERC) to issue a temporary stay
of a license to for a hydroelectric power project in the State
of Alaska pending completion of an associated transmission
line, to reinstate the license once the transmission line is
completed, and to authorize one additional two-year extension
of the deadline to commence construction of such project.
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.
337, a bill to extend certain hydro-electric licenses in the
State of Alaska, 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, February 3, 2002.
Hon. W.J. ``Billy'' Tauzin,
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. 337, a bill to
extend certain hydroelectric licenses in the stale of Alaska.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Lisa Cash
Driskill.
Sincerely,
William J. Gainer
(For Barry B. Anderson, Acting Director).
Enclosure.
H.R. 337--A bill to extend certain hydroelectric licenses in the state
of Alaska
CBO estimates that implementing H.R. 337 would have no net
effect on the federal budget. The bill 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.
H.R. 337 would direct the Federal Energy Regulatory
Commission (FERC) to stay the license for hydroelectric project
number 11393, if requested by the licensee, for up to six years
after construction of the Swan-Tyee transmission line is
completed. When the line is completed, if requested by the
licensee, FERC would be required to lift the stay and extend
the deadline for beginning construction of the project for up
to two years. This project is near Ketchican, Alaska.
This bill could 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 set in annual
appropriations, enactment of this legislation would not affect
direct spending or receipts.
The CBO staff contact for this estimate is Lisa Cash
Driskill. 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. Stay and reinstatement of FERC license No. 11393
This section directs the Federal Energy Regulatory
Commission (FERC) to issue a stay of the license for Project
No. 11393. Not later than six years following notice of
completion of the Swan-Tyee transmission line, this section
also requires FERC to reinstate the license upon the request of
the licensee. Finally, this section authorizes FERC, upon the
request of the licensee for Project No. 11393 and in accordance
with the good faith, due diligence, and public interest
requirements of section 13 of the Federal Power Act, to extend
the deadline to commence construction of such project for up to
one additional two-year period.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.