[Senate Report 108-22]
[From the U.S. Government Publishing Office]
Calendar No. 37
108th Congress Report
SENATE
1st Session 108-22
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HYDROELECTRIC PROJECTS IN THE STATE OF ILLINOIS
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March 19, 2003.--Ordered to be printed
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Mr. Domenici, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 220]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 220) to reinstate and extend the deadline
for commencement of construction of a hydroelectric project in
the State of Illinois, having considered the same, reports
favorably thereon without amendment and recommends that the
bill do pass.
PURPOSE OF THE MEASURE
The purpose of S. 220 is to reinstate the license for
construction, operation, and maintenance and to extend the
deadline for commencement of construction of a hydroelectric
project in the State of Illinois.
BACKGROUND AND NEED
Section 13 of the Federal Power Act requires that
construction commence within 2 years after a project is
licensed. The Federal Energy Regulatory Commission (FERC) is
authorized under the Federal Power Act to extend this deadline
once, for a maximum of two additional years, upon a finding
that such extension is ``not incompatible with the public
interest.'' Consequently, a license is subject to termination
if a licensee fails to begin construction within four years
after the license is issued.
S. 220 would reinstate an expired license for Project No.
11214, a four-megawatt hydroelectric project on the U.S. Army
Corps of Engineers' Carlyle Dam, located on the Kaskaskia
River, as of the effective date of the surrender of the
license. In 1997, Southwestern Electric Cooperative, Inc.
(Southwestern) was issued the original license by FERC.
However, Southwestern did not begin construction of the project
and surrendered the license to FERC in 2000. According to the
bill's sponsor, the city of Carlyle, Illinois, is interested in
developing the hydroelectric project and has reached agreement
with Southwestern whereby once the license is reinstated,
Southwestern has agreed to transfer the license, designs and
development of the project to the city. FERC has stated that it
is not aware of any other party that is interested in
developing this project site.
LEGISLATIVE HISTORY
S. 220 was introduced by Senator Fitzgerald on January 28,
2003, and referred to the Committee on Energy and Natural
Resources. The Subcommmittee on Water and Power conducted a
hearing on the measure on March 6, 2003. At the business
meeting on March 12, 2003, the Committee on Energy and Natural
Resources ordered S. 220 favorably reported.
COMMITTEE RECOMMENDATION
The Committee on Energy and Natural Resources, in open
business session on March 12, 2003, by a voice vote of a quorum
present, recommends that the Senate pass S. 220.
SECTION-BY-SECTION ANALYSIS
Section 1 authorizes FERC, for Project No. 11214, upon the
request of the licensee, and in accordance with the good faith,
due diligence, and public interest requirements of section 13
of the FederalPower Act and FERC's procedures under such
section: (1) to reinstate the license for construction of the project
as of the effective date of surrender of the license; and (2) to extend
the deadline to commence construction of the project for up to three
additional 2-year periods beyond the date that is 4 years after the
date of the issuance of the license.
COST AND BUDGETARY CONSIDERATIONS
The Congressional Budget Office estimate of the costs of S.
220 has been requested but was not received at the time the
report was filed. When the report is available, the Chairman
will request it to be printed in the Congressional Record for
the advice of the Senate.
REGULATORY IMPACT EVALUATION
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 220. The bill is not a regulatory measure in
the sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 220.
EXECUTIVE COMMUNICATIONS
The pertinent legislative report received by the Committee
from FERC setting forth Executive agency recommendations
relating to S. 220 is set forth below:
Federal Energy Regulatory Commission,
Washington, DC, March 13, 2003.
Hon. Pete V. Domenici,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: Thank you for your letter of March 10,
2003 asking for my views on H.R. 397, a House-passed bill to
reinstate the surrendered license and to extend the
commencement of construction deadline applicable to a
hydroelectric project licensed by the Federal Energy Regulatory
Commission in the State of Illinois. My comments also apply to
an identical Senate bill, S. 220.
Section 13 of the Federal Power Act requires that
construction of a licensed project be commenced within two
years of issuance of the license. Section 13 authorizes the
Commission to extend this deadline once, for a maximum
additional two additional years. If project construction has
not commenced by this deadline, the Commission is required to
terminate the license. Section 13 also authorizes the
Commission to extend the deadline for completion of
construction when not incompatible with the public interest.
The Project
On June 26, 1997, the Commission issued a license to
Southwestern Electric Cooperative, Inc. (Southwestern) to
construct, operate, and maintain the 4-megawatt Carlyle
Hydroelectric Project No. 11214, to be located at the U.S. Army
Corps of Engineers' Carlyle Dam on the Kaskaskia River in
Clinton County, Illinois. Construction of the project entails
installing an intake structure, five intake conduits, a
powerhouse with five 800-kilowatt generating units, a
transmission line, and appurtenances. The deadline for the
commencement of project construction was June 26, 1999.
By filing of March 3, 1999, Southwestern advised the
Commission that it would be applying to surrender the project
license. On March 27, 2000, Southwestern filed an application
to surrender the license, stating that the project was no
longer economicallyfeasible. No project construction had
commenced. The Commission accepted the surrender, effective June 24,
2000.
H.R. 397 and S. 220
Both bills would authorize the Commission, upon request of
the licensee, after reasonable notice and in accordance with
the requirements of Section 13 of the Federal Power Act, to
reinstate the surrendered license for Project No. 11214 and to
extend the deadline for commencement of project construction
for three consecutive 2-year periods beyond the date that is
four years after the issuance date of the license.
As a general matter, enactment of bills authorizing or
requiring commencement-of-construction extensions for
individual projects delays the development of an important
energy resource and therefore has not been recommended. In
cases where project-specific extensions are authorized by the
Congress, it has been the policy of prior Commission chairmen
that such extensions not go beyond ten years from the date the
project was licensed. If a licensee cannot meet a ten-year
deadline, then as a general rule the license should be
terminated, making the site once again available for such uses
as current circumstances may warrant, based on up-to-date
information on economic and environmental considerations. I
have no reason to depart from this extension policy.
H.R. 397 and S. 220 would provide for extensions of the
deadline for commencement of construction that would not exceed
ten years from the date the license was issued. Since this time
period is within the ten-year deadline, I have no objection to
the bills' enactment.
I hope that this information is helpful to you. If I can be
of further assistance to you in this or any other Commission
matter, please let me know.
Best regards,
Pat Wood III,
Chairman.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by S. 220, as ordered
reported.