[House Report 105-12]
[From the U.S. Government Publishing Office]
105th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 105-12
_______________________________________________________________________
TO EXTEND THE DEADLINE FOR THE CONSTRUCTION OF A HYDROELECTRIC PROJECT
LOCATED IN THE STATE OF WASHINGTON
_______
March 11, 1997.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______________________________________________________________________
Mr. Bliley, from the Committee on Commerce, submitted the following
R E P O R T
[To accompany H.R. 651]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, to whom was referred the bill
(H.R. 651) to extend the deadline under the Federal Power Act
for the construction of a hydroelectric project located in the
State of Washington, and for other purposes, having considered
the same, report favorably thereon without amendment and
recommend that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Committee Consideration.......................................... 3
Roll Call Votes.................................................. 3
Committee Oversight Findings..................................... 3
Committee on Government Reform and Oversight..................... 3
New Budget 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............................... 5
Applicability to Legislative Branch.............................. 5
Section-by-Section Analysis of the Legislation................... 5
Changes in Existing Law Made by the Bill, as Reported............ 5
Purpose and Summary
The purpose of H.R. 651 is to extend the deadline for the
commencement of construction of a hydroelectric project in the
State of Washington licensed by the Federal Energy Regulatory
Commission (FERC).
Background and Need for Legislation
Section 13 of the Federal Power Act (16 U.S.C. Sec. 806
(1988)) 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
interests.'' 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.
Lack of a power sales contract can delay the commencement
of construction of licensed hydroelectric projects. It is very
difficult for a hydroelectric project sponsor to secure
financing until it has a power sales contract, and generally a
licensee cannot secure a contract until it has been granted a
license. However, the construction deadline begins to toll once
the license is granted. There are other obstacles to
commencement of construction, such as protracted proceedings on
a licensee's application for a dredge and fill permit from the
Army Corps of Engineers under section 404 of the Clean Water
Act. FERC has testified that in such cases ithas issued orders
staying the license until matters are resolved, suggesting extension
legislation is not needed in order to address delays beyond the control
of the licensee.
H.R. 651 would extend the deadline for the commencement of
construction for a 5.4 megawatt hydroelectric project (Project
No. 8864) in King County, Washington, for up to three
additional two-year periods. This would extend the deadline to
up to ten years after the date the license was issued.
According to the project sponsor, construction has not
commenced for lack of a power purchase agreement. The deadline
for the commencement of construction of this project expires on
May 13, 1997. The licensee has invested about $1.3 million in
project development. H.R. 651 does not ease the requirements of
a hydroelectric license, but merely extends the period for
commencement of project construction.
The legislation provides for up to three consecutive two-
year extensions, instead of a six-year extension, to assure
that the licensee must continue to meet the section 13
requirement that it 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 Commerce has not held hearings on the
legislation.
Committee Consideration
On February 26, 1997, the Subcommittee on Energy and Power
met in open markup session and approved H.R. 651 for Full
Committee consideration, without amendment, by a voice vote.
The Full Committee met in open markup session on March 5, 1997,
and ordered H.R. 651 reported to the House, without amendment,
by a voice vote.
Roll Call Votes
Clause 2(l)(2)(B) of rule XI of the Rules of the House
requires the Committee to list the recorded votes on the motion
to report legislation and amendments thereto. There were no
recorded votes taken in connection with ordering H.R. 651
reported. A motion by Mr. Bliley to order H.R. 651 reported to
the House, without amendment, was agreed to by a voice vote, a
quorum being present.
Committee Oversight Findings
Pursuant to clause 2(l)(3)(A) of rule XI of the Rules of
the House of Representatives, the Committee did not hold
oversight or legislative hearings on this legislation.
Committee on Government Reform and Oversight
Pursuant to clause 2(l)(3)(D) of rule XI of the Rules of
the House of Representatives, no oversight findings have been
submitted to the Committee by the Committee on Government
Reform and Oversight.
New Budget Authority and Tax Expenditures
In compliance with clause 2(l)(3)(B) of rule XI of the
Rules of the House of Representatives, the Committee finds that
H.R. 651 would result in no new or increased budget 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 403 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimate
Pursuant to clause 2(l)(3)(C) of rule XI of the Rules of
the House of Representatives, the following is the cost
estimate provided by the Congressional Budget Office pursuant
to section 403 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, March 6, 1997.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 651, a bill to
extend the deadline under the Federal Power Act for the
construction of a hydroelectric project located in the state of
Washington, and for other purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Kim Cawley.
Sincerely,
James L. Blum
(For June E. O'Neill, Director).
Enclosure.
H.R. 651--A bill to extend the deadline under the Federal Power Act for
the construction of a hydroelectric project located in the
state of Washington, and for other purposes
CBO estimates that enacting this bill would have no net
effect on the federal budget. The bill does not contain any
intergovernmental or private-sector mandates, and would not
impose any costs on state, local, or tribal governments.
The bill would extend for up to six years the deadline for
construction of a hydroelectric project currently subject to
licensing by the Federal Energy Regulatory Commission (FERC).
The proposed extension is for FERC project number 8864. This
provision 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 the bill.
The CBO staff contact for this estimate is Kim Cawley. This
estimate was approved by Paul Van de Water, 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 2(l)(4) of rule XI 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 deadline
This section directs the Federal Energy Regulatory
Commission (FERC), upon the request of the licensee for Project
No. 8864, 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 extend the
time required for the commencement of construction for such
project for up to three additional two-year periods. Any such
extension will take effect upon the expiration of the extension
previously granted by FERC. If the license has expired prior to
the date of enactment of H.R. 651 and FERC extends the deadline
for the commencement of construction, the section directs FERC
to reinstate the license effective upon the date of its
expiration.
Changes in Existing Law Made by the Bill, as Reported
H.R. 651 does not amend any existing Federal statute.