[House Report 108-6]
[From the U.S. Government Publishing Office]
108th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 108-6
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TO REINSTATE AND EXTEND THE DEADLINE FOR COMMENCEMENT OF CONSTRUCTION
OF A HYDROELECTRIC PROJECT IN THE STATE OF ILLINOIS
_______
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. 397]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 397) to reinstate and extend the deadline for
commencement of construction of a hydroelectric project in the
State of Illinois, 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. 397 is to reinstate an expired license
and extend the deadline for commencement of construction of a
hydroelectric project in the State of Illinois licensed by the
Federal Energy Regulatory Commission (FERC).
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 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 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. 397 would reinstate an expired license for a 4
megawatt hydroelectric project (Project No. 11214) at the
existing U.S. Army Corp of Engineers' Carlyle Dam on the
Kaskaskia River near the City of Carlyle, Clinton County,
Illinois. The original license, issued in June 1997 to
Southwestern Electric Cooperative, Inc., was surrendered in May
2000. Once reinstated, Southwestern has agreed to transfer the
license, with FERC, to the City of Carlyle to proceed with
further studies, designs and development of the project. FERC
is not aware of any other party that is interested in
developing this project site.
H.R. 397 extends the deadline for commencement of
construction of this project for up to six years. Not counting
the years in which the license was surrendered, this
potentially amounts to nine years for the licensee to commence
construction. The legislation provides for up to three
consecutive two-year extensions, instead of a single six-year
extension, to assure that the licensee must continue to meet
the section 13 requirement to prosecute construction ``in good
faith and with due diligence'' before obtaining each two-year
extension. If FERC determines the licensee is not prosecuting
construction in good faith and with due diligence, the
Committee expects the agency will refuse to grant a request for
an additional two year extension, terminate the license, and
make the site available for other uses.
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.
397 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. 397 reported. A motion by Mr. Tauzin to order H.R. 397
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 authorize the Federal
Energy Regulatory Commission (FERC) to reinstate an expired
license to construct, operate and maintain a hydroelectric
power project in the State of Illinois and to extend the
deadline to commence construction of such project for up to
three consecutive two-year periods.
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.
397, a bill to reinstate and extend the deadline for
commencement of construction of a hydroelectric project in the
State of Illinois, 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, 2003.
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. 397, a bill to
reinstate and extend the deadline for commencement of
construction of a hydroelectric project in the state of
Illinois.
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. 397--A bill to reinstate and extend the deadline for commencement
of construction of a hydroelectric project in the state of
Illinois
CBO estimates that implementing H.R. 397 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 impose no costs on
state, local, or tribal governments.
H.R. 397 would authorize the Federal Energy Regulatory
Commission (FERC) to reinstate the license and extend the
deadline for construction of a hydroelectric project (number
11214) in Carlyle, Illinois. These provisions could have a
minor impact on FERC's workload. Because FERC recovers 100
percent of its costs through user fees, any change is its
administrative costs would be offset by an equal change in the
fees that the commission charges. Hence, the legislation's
provisions would have no net budgetary impact.
Because FERC's administrative costs are limited in annual
appropriations, the bill would not affect direct spending or
revenues.
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. Extension of time for Federal Energy Regulatory Commission
Project
This section authorizes the Federal Energy Regulatory
Commission (FERC), upon the request of the licensee for Project
No. 11214, 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 (1)
reinstate the license for construction of the project as of the
effective date of surrender, and (2) extend the deadline to
commence construction of such project for up to three
additional two-year periods.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.