[Senate Report 109-29]
[From the U.S. Government Publishing Office]
Calendar No. 42
109th Congress Report
SENATE
1st Session 109-29
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EXTENSION OF TIME FOR FEDERAL ENERGY REGULATORY COMMISSION PROJECT
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March 10, 2005.--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. 176]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 176) to extend the deadline for
commencement of construction of a hydroelectric project in the
State of Alaska, having considered the same, reports favorably
thereon without amendment and recommends that the bill do pass.
PURPOSE OF THE MEASURE
The purpose of S. 176 is to extend the deadline for
commencement of construction of a hydroelectric project in the
State of
Alaska.
BACKGROUND AND NEED
Section 13 of the Federal Power Act requires that the
construction of a licensed project commence within two years
from the date the license is issued. The Federal Energy
Regulatory Commission (``FERC'' or ``Commission'') 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 date the license is issued unless legislation
authorizing an additional extension is enacted. S. 176
authorizes FERC to extend the construction deadline for Project
No. 11480.
On October 24, 2000, the Commission issued a license to the
Haida Corporation to construct, operate, and maintain the 5-
megawatt Reynolds Creek Project No. 11480 on Prince of Wales
Island, in southeast Alaska. The license's original deadline
for construction commencement was October 23, 2002. Because the
project lacked a power purchase contract, FERC granted the
licensee's request to extend the deadline to October 23, 2004,
four years after the license was issued. Construction of
Project No. 11480 entails building a 20-foot-long, 6-foot-high
diversion dam, a 3,200-foot-long penstock, a powerhouse with
two turbine-generator units, and a transmission line.
LEGISLATIVE HISTORY
S. 176 was introduced by Senator Murkowski on January 26,
2005. S. 176 is identical to S. 2243 as passed by the Senate
during the 108th Congress. S. 2243 was introduced by Senator
Murkowski on March 26, 2004, and referred to the Committee on
Energy and Natural Resources. A hearing on S. 2243 was
conducted by the Water and Power Subcommittee on May 19, 2004.
S. Hrg. 108-618. The Energy and Natural Resources Committee, on
June 16, 2004, by unanimous vote of a quorum present ordered S.
2243 favorably reported. S. Rept. 108-286. S. 2243 was passed
by the Senate by unanimous consent on September 15, 2004. At a
business meeting on February 9, 2005, the Committee on Energy
and Natural Resources ordered S. 176 favorably reported.
COMMITTEE RECOMMENDATION
The Senate Committee on Energy and Natural Resources, in an
open business session on February 9, 2005, by unanimous voice
vote of a quorum present, recommends that the Senate pass S.
176.
SECTION-BY-SECTION ANALYSIS
Section 1 authorizes FERC, at the request of the licensee,
to extend the deadline for commencing construction of
hydroelectric project No. 11480. The time period may be
extended for three consecutive two-year periods. The extension
is to take effect on the date of the expiration of the
extension originally issued by the Commission under section 13
of the Federal Power Act.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of costs of this measure has been
provided by the Congressional Budget Office.
February 14, 2005.
Hon. Pete V. Domenici,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 176, a bill to
extend the deadline for commencement of construction of a
hydroelectric project in the state 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,
Douglas Holtz-Eakin.
Enclosure.
S. 176--A bill to extend the deadline for commencement of construction
of a hydroelectric project in the state of Alaska
CBO estimates that implementing S. 176 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.
If requested by the licensee, S. 176 would authorize the
Federal Energy Regulatory Commission (FERC) to extend the
deadline for construction of a hydroelectric project (number
11480) in Alaska by up to six years. This bill would have a
minor impact on FERC's workload. Because FERC recovers 100
percent of its 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 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 Peter H. Fontaine,
Deputy Assistant Director for Budget Analysis.
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. 176. 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. 176.
EXECUTIVE COMMUNICATIONS
The testimony provided by the Commission at the
Subcommittee hearing on S. 2243, an identical bill to S. 176 in
the 108th Congress, follows:
Testimony Submitted by Chairman Pat Wood III, Federal Energy Regulatory
Commission
Madam Chairman and Members of the Subcommittee:
I appreciate the opportunity to comment on S. 2243, a bill
to extend the deadline for commencement of construction of a
hydroelectric project in the State of Alaska.
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
Federal Energy Regulatory Commission to extend this deadline
once, for a maximum additional two 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 October 24, 2000, the Commission issued a license to
Haida Corporation to construct, operate, and maintain the 5-
megawatt Reynolds Creek Project No. 11480, on Prince of Wales
Island, in southeast Alaska. The original deadline in the
license for the commencement of construction, October 23, 2002,
was, at the licensee's request, extended by the Commission to
October 23, 2004, four years after license issuance. The
request cited the lack of a power purchase contract.
Construction of Project No. 11480 entails building a 20-
foot-long, 6-foot-high diversion dam, a 3,200-foot-long
penstock, a powerhouse with two turbine-generator units, and a
transmission line.
the legislation
S. 2243 would authorize the Commission, at the request of
the project licensee, and after reasonable notice, in
accordance with the good faith, due diligence, and public
interest requirements of section 13 and the Commission's
procedures under that section, to extend the time period during
which the licensee is required to commence the construction of
the project for three consecutive two-year periods beyond the
date that is four years after the date of issuance of the
license.
In cases where project-specific extensions of construction
deadlines are authorized by the Congress, it has been the
position of prior Commission chairmen that such extensions
should not go beyond ten years from the date the project was
licensed. I have no reason to depart from this extension
policy.
S. 2243 would permit the licensee for Project No. 11480 to
extend the deadline for commencement of construction for three
consecutive 2-year periods beyond the date that is four years
after the date of issuance of the license. Accordingly,
construction could commence no later than ten years from the
date the license was issued. This time frame is consistent with
the Commission's policy, and I have no objection to the bill.
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 the bill S. 176 as ordered
reported.