[Senate Report 106-381]
[From the U.S. Government Publishing Office]
Calendar No. 757
106th Congress Report
SENATE
2d Session 106-381
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HYDROELECTRIC PROJECT IN PENNSYLVANIA
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August 25, 2000.--Ordered to be printed
Filed under authority of the order of the Senate of July 26, 2000
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Mr. Murkowski, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 2499]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 2499) to extend the deadline for
commencement of construction of a hydroelectric project in the
State of Pennsylvania, having considered the same, reports
favorably thereon without amendment and recommends that the
bill do pass.
purpose of the measure
The purpose of S. 2499 is to require the Federal Energy
Regulatory Commission, upon the request of the licensee, to
extend until December 31, 2001, the deadline for the licensee
to commence construction of hydroelectric project No. 7041. S.
2449 also provides for the reinstatement of the license for the
project if it has expired before the enactment of the Act.
background and need
Section 13 of the Federal Power Act requires a
hydroelectric licensee to commence the construction of its
project within two years of the date of the issuance of the
license. That deadline can be extended by the FERC one time for
as much as two additional years. Unless additional legislation
is enacted, if construction has not commenced by the end of the
time period the license is terminated by the FERC. Thus, in the
absence of this legislation, the license will be terminated.
On September 27, 1989, the FERC issued a license to Potter
Township, Pennsylvania to construct and operate the 20-megawatt
Emsworth Project, FERC license No. 7041, to be located at an
existing U.S. Army Corps of Engineers dam on the Ohio River in
Allegheny County, Pennsylvania. The deadline for commencement
of construction of the Emsworth Project was originally
September 26, 1991. Pending judicial review of the license, the
Commission stayed most of the license requirements, including
the construction deadline, from September 27, 1990, to April
16, 1992, which resulted in a new construction commencement
deadline of April 15, 1993. At the licensee's request, this
deadline was subsequently extended to April 15, 1995, to give
the licensee additional time to consult with the Corps
regarding site access and project design and construction, and
to obtain a power sales contract. Pursuant to Pub. L. No. 104-
254, the Commission further extended the deadline to September
26, 1999. On March 29, 2000, the Commission denied, for lack of
authority, the licensee's request for an extension to September
26, 2001, denied its alternative request for a stay of the
deadline, and terminated the license, effective April 28, 2000.
legislative history
S. 2499 was introduced on May 3, 2000. A hearing was held
by the Subcommittee on Water and Power on June 21, 2000.
committee recommendation and tabulation of votes
The Senate Committee on Energy and Natural Resources, in
open business session on July 13, 2000, by a voice vote with a
quorum present, recommends that the Senate pass the bill
without amendment.
cost and budgetary considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 17, 2000.
Hon. Frank H. Murkowski,
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. 2499, a bill to
extend the deadline for commencement of construction of a
hydroelectric project in the state of Pennsylvania.
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, Director).
Enclosure.
S. 2499--A bill to extend the deadline for commencement of construction
of a hydroelectric project in the State of Pennsylvania
CBO estimates that enacting S. 2499 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.
S. 2499 would extend the deadline, until December 31, 2001,
for construction of a hydroelectric project currently subject
to licensing by the Federal Energy Regulatory Commission
(FERC). The proposed extension is for project number 7041. S.
2499 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 S. 2499.
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 this measure.
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 provisions of the bill. Therefore, there would be no impact
on personal privacy.
Little, if any, additional paperwork would result from the
enactment of this measure.
executive communications
The pertinent communications received by the Committee from
the Federal Energy Regulatory Commission setting forth
Executive agency views relating to this measure are set forth
below:
Statement of James J. Hoecker, Chairman, Federal Energy Regulatory
Commission
Mr. Chairman and Members of the Subcommittee: Thank you for
the opportunity to comment on S. 2499, a bill to extend the
construction deadlines applicable to a hydroelectric project
licensed by the Federal Energy Regulatory Commission.
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 of two
additional years. If project construction has not commenced by
this deadline, Section 13 requires the Commission to terminate
the license.
On September 27, 1989, the Commission issued a license to
Potter Township, Pennsylvania, to construct and operate the 20-
megawatt Emsworth Project No. 7041 at an existing Army Corps of
Engineers dam on the Ohio River in Allegheny County,
Pennsylvania. Construction of the project entails building a
1,800-foot-long dike for the forebay, a 250-foot-long open-
channel intake, and a powerhouse. In 1994, the Commission
approved the transfer of the project license to Potter Township
Hydroelectric Authority.
The deadline for commencement of construction of the
Emsworth Project was originally September 26, 1991. Pending
judicial review of the license, the Commission stayed most of
the license requirements, including the construction deadline,
from September 27, 1990, to April 16, 1992 (nearly 19 months),
which resulted in a new construction commencement deadline of
April 15, 1993. At the licensee's request, this deadline was
subsequently extended to April 15, 1995, to give the licensee
additional time to consult with the Corps regarding site access
and project design and construction, and to obtain a power
sales contract. Pursuant to Pub. L. No. 104-254, the Commission
further extended the deadline to September 26, 1999. On March
29, 2000, the Commission denied, for lack of authority, the
licensee's request for an extension to September 26, 2001,
denied its alternative request for a stay of the deadline, and
terminated the license, effective April 28, 2000.
S. 2499 would require the Commission, upon the request of
the licensee, to extend the deadline for commencement of
construction until December 31, 2001, which is nearly 27 months
after the date the license was issued.
As a general matter, enactment of bills authorizing or
requiring construction extensions for individual projects
delays utilization in the public interest of an important
energy resource and therefore is inappropriate. In cases where
project-specific extensions are authorized by the Congress,
however, they should be of relatively short duration and
respond only to the practical but unforeseeable needs of the
licensee. Absent a showing of extraordinary circumstances,
granting a licensee more than ten unstayed years from the
issuance date of the license to commence construction does not
meet these criteria. (Where the Commission has stayed the
construction deadlines, or the entire license, for example,
pending judicial appeal of the license, which was the case
here, the period of the stay should not be counted in applying
this 10-year policy.) I believe ten years is a more than
reasonable period for a licensee to determine whether a project
is economically viable and to sign a power purchase agreement.
If a licensee cannot meet such a deadline, then I believe as a
general matter the license should be terminated pursuant to the
requirements of Section 13, so that the site is once again
available for whatever uses current circumstances may warrant,
based on up-to-date information on economic and environmental
considerations.
S. 2499 would extend the construction commencement date for
the Emsworth Project ten years and eight months beyond the
issuance of the Project No. 7041 license, excluding the period
of the stay. During the intervening time, substantial changes
in economic factors, such as the cost of project power, and in
relevant public interest considerations, such as the project's
environmental impacts, could affect the viability of the
project. Because S. 2499 would extend the deadline beyond ten
years from license issuance, I do not support its enactment.
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. 2499, as ordered
reported.