[Congressional Record Volume 141, Number 179 (Monday, November 13, 1995)]
[House]
[Pages H12149-H12150]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




AUTHORIZING EXTENSION OF TIME LIMITATION FOR FERC-ISSUED HYDROELECTRIC 
               LICENSE FOR MOUNT HOPE WATERPOWER PROJECT

  Mr. SCHAEFER. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1366) to authorize the extension of time limitation for the 
FERC-issued hydroelectric license for the Mount Hope waterpower 
project.
  The Clerk read as follows:

                               H.R. 1366

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

     SECTION 1. EXTENSION OF TIME FOR FERC PROJECT.

       Notwithstanding the time limitations specified in section 
     13 of the Federal Power Act (16 U.S.C. 806), the Federal 
     Energy Regulatory Commission, upon the request of the 
     licensee for FERC Project No. 9401 (and after reasonable 
     notice), is authorized, in accordance with the good faith, 
     due diligence, and public interest requirements of such 
     section 13 and the Commission's procedures under such 
     section, to extend the time required for commencement of 
     construction of such project until August 3, 1999.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Colorado [Mr. Schaefer] and the gentleman from New Jersey [Mr. Pallone] 
will be recognized for 20 minutes each.
  The Chair recognizes the gentleman from Colorado [Mr. Schaefer].
  Mr. SCHAEFER. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, H.R. 1366 would extend the deadline for construction of 
a 2,000 megawatt pumped-storage project in New Jersey until August 3, 
1999, or 7 years after the date the license was issued. The licensee is 
Halecrest Co., which has been unable to commence project construction 
due to the lack of a power sales contract needed to secure financing. 
This bill was introduced by our colleague, Representative Frelinghuysen 
of New Jersey.
  Mr. Speaker, I reserve the balance of my time.
  Mr. PALLONE. Mr. Speaker, I yield such time as he may consume to the 
gentleman from New Jersey [Mr. Frelinghuysen], my colleague, who is the 
sponsor of the legislation.

  (Mr. FRELINGHUYSEN asked and was given permission to revise and 
extend his remarks.)
  Mr. FRELINGHUYSEN. Mr. Speaker, I thank the gentleman for yielding me 
time, and I rise in strong support of H.R. 1366, legislation I 
introduced earlier this year to extend the Federal Energy Regulatory 
Commission [FERC] license for the Mount Hope hydroelectric project by a 
period of 3 years. I would like to thank Chairman Dan Schaefer and 
ranking Member Frank Pallone of the Energy and Power Subcommittee for 
moving this bill expeditiously through their committee.
  Mount Hope received its original FERC license in August 1992. The 
license has since been extended by 2 years and is due to expire in 
August 1996. H.R. 1366 would simply ensure that there is sufficient 
time for Mount Hope to secure the energy supply contracts needed to 
begin construction of the proposed facility.
  The Mount Hope project is a proposed advanced pumped-storage 
hydroelectric plant located in Morris County, NJ. Far from a 
conventional hydro plant, the Mount Hope facility will be a closed-
cycle system in which water will continuously circulate between two 
man-made reservoirs: an upper reservoir on the surface and a lower 
reservoir to be constructed entirely underground. During periods of 
peak electrical demand or when needed by the regional power pool to 
enhance system operations, water will be released from the upper 
reservoir into a vertical shaft which will direct it to the powerhouse 
2800 feet underground. There it will pass through a new generation of 
fast-response turbines which will be capable of reaching the full 
generating 

[[Page H 12150]]
capacity of 2000 megawatts in as little as 15 seconds--a capability 
unmatched by any other method of power generation currently available. 
The water will then be stored in the underground lower reservoir.
  The project has the strong support of local government officials and 
organizations, including the mayor of Rockaway Township, NJ, where the 
project will be built, the New Jersey Business and Industry Association 
and the Sierra Club of New Jersey. The $1.8 billion project will be 
financed entirely by the private sector with no taxpayer dollars used 
for its construction or operation. It is estimated that the project 
will bring 1300 jobs to New Jersey and boost our Nation's economy by 
adding approximately $6 billion to the gross national product during 
construction. It will also inject an estimated $254.4 million directly 
into the Morris County economy in the form of wages and salaries and 
contractor spending.
  In a nutshell, the project can serve as our region's long-term energy 
insurance policy by enhancing the security of the regional electrical 
supply system, thus allowing optimized use of existing generating and 
transmission facilities. Its rapid-response capability and its purchase 
of pump-up power during off-peak periods would allow existing thermal 
plants to operate more efficiently and cost-effectively by enabling 
them to run for longer periods of time at constant output levels.
  This, along with increased transmission capacity, would facilitate 
compliance with the 1990 Clean Air Act amendments. A recent analysis by 
Tech Environmental Inc. estimated that typical operating profile of 
Mount Hope would result in a reduction of 13.4 tons of NOx per 
day. Assuming advanced operation of Mount Hope, it is estimated that 
NOx emissions could be reduced by 50 tons per day.
  Mr. Speaker, as you can see the Mount Hope project has many 
environmental, energy and economic benefits for the State of New Jersey 
and the Mid-Atlantic region. The project has the strong support of 
local and State officials and organizations and will help us meet goals 
of the Clean Air Act. I urge my colleagues to support the passage of 
H.R. 1366 so that we can realize the benefits this exciting project 
promises.
  Mr. PALLONE. Mr. Speaker, I yield myself such time as I may consume 
to congratulate my colleague, the gentleman from New Jersey [Mr. 
Frelinghuysen], for his hard work on this bill. As usual, he is out 
there working hard for his constituents.
  The sponsors of this project have worked very hard to address some 
initial environmental concerns that arose with the project and their 
hard work has paid off. Today, I know of no objection to this project, 
and I am, therefore, pleased to add my support for the legislation.
  Mr. Speaker, I yield back the balance of my time.
  Mr. SCHAEFER. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Colorado [Mr. Schaefer] that the House suspend the rules 
and pass the bill, H.R. 1366.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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