[Congressional Record Volume 141, Number 173 (Friday, November 3, 1995)]
[Senate]
[Page S16665]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. MOSELEY-BRAUN (for herself and Mr. Simon):
  S. 1393. A bill to extend the deadline for commencement of 
construction of a hydroelectric project in the State of Illinois; to 
the Committee on Energy and Natural Resources.


                   hydroelectric project legislation

 Ms. MOSELEY-BRAUN. Mr. President, the bill I am introducing 
today, on behalf of myself and Senator Simon, grants the city of Alton, 
IL, a 6-year extension of its Federal Energy Regulatory Commission 
[FERC] license to begin construction of a hydroelectric power project 
next to lock and dam 26R on the Mississippi River. This extension is 
necessary because the Alton license expired October 15, 1995.

  A license to permit construction for this proposed plant was first 
issued by FERC to the Missouri Joint Municipal Electric Utility 
Commission [MJMEUC] on October 15, 1987. MJMEUC transferred the license 
to the city of Alton with FERC approval on April 5, 1990. At the time 
of the transfer, the city of Alton entered into an agreement with Sithe 
Energies, a developer, which was granted a licensing extension pursuant 
to the Federal Power Act and Public Law No. 102-240, 105 Stat. 1914, 
section 1075 (b) of the Intermodal Surface Transportation Efficiency 
Act of 1991.
  Between 1990 and 1995, Sithe Energies developed plans for a 
hydroelectric plant. However, there were several problems with its 
proposal. Sithe Energies was depending on State subsidies to support 
the estimated $190 million cost of the plant. The Illinois General 
Assembly did not provide those subsidies. Further, Sithe Energies was 
unable to comply with several FERC license requirements. For example, 
Sithe was unable to meet the FERC requirement for a fish mortality 
study. The proposed plant could have had a substantial effect on fish 
and other aquatic life in the Mississippi. Finally, due to the high 
rate per kilowatt hour that would be required to retire the debt that 
would be associated with the project and provide an attractive return 
on investment, Sithe Energies was unable to negotiate a purchase and 
sale agreement for the plant's electricity.
  In May 1995, Sithe Energies terminated its relationship with the city 
of Alton. Subsequently, the city was contacted by Bedford Energies with 
a new plan that happens to be more economically feasible. Bedford 
Energies is proposing a smaller plant, using turbines that move more 
slowly and which should therefore reduce the plant's impact on fish and 
aquatic life in the Mississippi. The cost of the project is estimated 
to be $110 million--much less than the Sithe Energies' project. The 
projected costs per kilowatt hour is approximately one-half of Sithe's 
estimates.
  The city of Alton and the River Bend area have been hit hard by plant 
closings and the loss of manufacturing jobs over the past 20 years. 
During the 1980's, Alton alone lost nearly 4,000 jobs. Alton's per 
capita income is significantly below the State of Illinois' average per 
capita income and, since 1970, Alton's population has declined from 
39,700 to 33,064 residents. Alton's unemployment rate currently exceeds 
9 percent and has consistently exceeded State and national averages. 
One-hundred to one-hundred fifty jobs are expected to be created during 
the 2- or 3-year construction phase of this project, and 6 to 12 
permanent power plant operator jobs will be created once the plant is 
operational. The royalties from power sales will provide revenue to the 
city for capital improvements and other needed city projects which 
impact employment.
  Lock and dam 26R on the Mississippi was designed and constructed for 
a hydroelectric plant. Because of the difficulties the city experienced 
with Sithe Energies, there was simply no way that construction could 
have begun in accordance with the schedule anticipated by the current 
license. This FERC license extension is a reasonable proposition for 
the residents of Alton who are counting on this project. Mr. President, 
this type of license extension has precedent in previous congressional 
action, and it is my hope that the Congress can move this 
noncontroversial bill forward as soon as possible.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1393

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EXTENSION OF COMMENCEMENT OF CONSTRUCTION DEADLINE 
                   FOR HYDROELECTRIC PROJECT IN THE STATE OF 
                   ILLINOIS.

       (a) In General.--Notwithstanding the time period specified 
     in section 13 of the Federal Power Act (16 U.S.C. 806) that 
     would otherwise apply to the Federal Energy Regulatory 
     Commission project numbered 3246, the Commission shall, at 
     the request of the licensee for the project, in accordance 
     with the good faith, due diligence, and public interest 
     requirements of that section and the Commission's procedures 
     under that section, extend until October 15, 2001, the time 
     period during which the licensee is required to commence 
     construction of the project.
       (b) Applicability.--Subsection (a) shall take effect on the 
     expiration of the extension, issued by the Commission under 
     section 13 of the Federal Power Act (16 U.S.C. 806), of the 
     period required for commencement of construction of the 
     project described in subsection (a).
       (c) Reinstatement of Expired License.--If the license for 
     the project described in subsection (a) has expired prior to 
     the date of enactment of this Act, the Commission shall 
     reinstate the license effective as of the date of its 
     expiration and extend until October 15, 2001, the time 
     required for commencement of construction of the 
     project.
                                 ______