[Congressional Record Volume 143, Number 80 (Tuesday, June 10, 1997)]
[House]
[Pages H3586-H3587]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 EXTENDING DEADLINE FOR BEAR CREEK HYDROELECTRIC PROJECT IN WASHINGTON

  Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I move to suspend the 
rules and pass the bill (H.R. 1184) to extend the deadline under the 
Federal Power Act for the construction of the Bear Creek hydroelectric 
project in the State of Washington, and for other purposes, as amended.
  The Clerk read as follows:

                               H.R. 1184

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

     SECTION 1. EXTENSION OF DEADLINE.

       (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 Federal Energy Regulatory Commission 
     project numbered 10371, the Commission may, upon the request 
     of the project licensee, in accordance with the good faith, 
     due diligence, and public interest requirements of that 
     section and the Commission's procedures under that section, 
     extend the time period during which the licensee is required 
     to commence construction of the project for not more than 3 
     consecutive 2-year periods.
       (b) Applicability.--The extension under subsection (a) 
     shall take effect for the project upon 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.
       (c) Reinstatement of Expired License.--If the license for 
     the project referred to 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 the time required for commencement of 
     construction of the project as provided in subsection (a) for 
     not more than 3 consecutive 2-year periods, the first of 
     which shall commence on the date of such expiration.

     SEC. 2. REENACTMENT OF SENTENCE IN SECTION 6.

       Section 6 of the Federal Power Act (16 U.S.C. 799) is 
     amended by adding the following sentence (deleted by section 
     108(a) of the General Accounting Office Act of 1996 (Public 
     Law 104-316)) at the end thereof: ``Licenses may be revoked 
     only for the reasons and in the manner prescribed under the 
     provisions of this Act, and may be altered or surrendered 
     only upon mutual agreement between the licensee and the 
     Commission after thirty days' public notice.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Colorado, Mr. Dan Schaefer and the gentleman from Texas, Mr. Hall each 
will control 20 minutes.
  The Chair recognizes the gentleman from Colorado, Mr. Dan Schaefer.
  Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I yield myself 5 minutes.
  (Mr. DAN SCHAEFER of Colorado asked and was given permission to 
revise and extend his remarks.)
  Mr. DAN SCHAEFER of Colorado. Mr. Speaker, H.R. 1184, as amended, 
authorizes the Federal Energy Regulatory Commission to extend the 
deadline for commencement of construction of the Bear Creek 
hydroelectric project in the State of Washington.
  The reason for this legislation is the same as with other 
hydroelectric license extension bills. The onset of intense competition 
in the electric industry is driving utilities to lower their costs and 
avoid making long-term commitments. As hydroelectric projects are 
typically financed through long-term power sales contracts, it has been 
difficult for many project developers to secure financing to construct 
licensed projects.
  There is a need to act on this legislation in a very timely manner, 
since the construction deadline expired on December 9, 1997. I should 
note that H.R. 1184 does not ease the environmental requirements of the 
license but merely extends the construction deadline.
  H.R. 1184, as amended, also would restore a sentence in the Federal 
Power Act that was erroneously deleted by the General Accounting Office 
Act of 1996. In the last Congress, both the National Defense 
Authorization Act and the General Accounting Office Act provided for 
the deletion of the last sentence of section 6 of the Federal Power 
Act. The intent of both laws was to strike a requirement that the FERC 
would file all issued hydropower licenses with the General Accounting 
Office.
  However, since the National Defense Authorization Act was enacted 
first, the General Accounting Office Act erroneously deleted the next-
to-last sentence of section 6 of the Federal Power Act which addressed 
the authority of FERC to revoke hydropower licenses. H.R. 1184 would 
restore this sentence to the Federal Power Act.
  The Federal Energy Regulatory Commission has no objection to this 
particular legislation and I urge the support of 1184, as amended.
  Mr. Speaker, I reserve the balance of my time.
  Mr. HALL of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  (Mr. HALL of Texas asked and was given permission to revise and 
extend his remarks.)
  Mr. HALL of Texas. Mr. Speaker, I rise today in support of H.R. 1184, 
introduced by my colleague, the gentleman from Washington [Mr. 
Metcalf]. The bill allows the Federal Energy Regulatory Commission to 
extend the deadline under the Federal Power Act for the construction of 
the Bear Creek hydroelectric project in Washington State.
  I have had the pleasure of working with the gentleman from 
Washington, a noted author and a very respected Member of this 
Congress. I have sat in on many financial meetings with him and have 
the highest regard for him. He has done a good job on H.R. 1184. It 
allows FERC simply to extend the commencement of construction for the

[[Page H3587]]

project for not more than three consecutive 2-year periods.
  This extension bill faces no opposition. In keeping with the practice 
of granting license extensions, H.R. 1184 is a noncontroversial, easy 
yes vote, and I strongly urge my colleagues to vote in favor of H.R. 
1184.
  Mr. Speaker, finally, I wish to thank the gentleman from Colorado, 
and I certainly want to thank the gentleman from Washington for 
bringing this important legislation to the floor.
  Mr. Speaker, I yield back the balance of my time.
  Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I yield such time as he 
may consume to the gentleman from Washington [Mr. Metcalf].
  Mr. METCALF. Mr. Speaker, I would like to take this opportunity to 
thank the chairman, the gentleman from Virginia, Mr. Bliley, and the 
subcommittee chairman, the gentleman from Colorado, Mr. Dan Schaefer, 
for considering the next two bills, H.R. 1184 and H.R. 1217, and I 
appreciate their willingness to work with me on renewing these 
projects. These are important projects to my district.
  The project is located in Skagit County and will result in no new or 
increased budget authority or tax expenditures or revenues. This 
facility has operated from 1906 to 1969 when it ceased operation. FERC 
issued a construction license in 1993 which will expire December 10, 
1997. This bill will extend the deadline for the commencement of 
construction for three, 2-year periods. Such an extension is common on 
projects where construction has been delayed due to factors outside of 
the licensee's control. For example, to date, construction has not 
commenced because of a lack of a power purchase agreement to support 
project construction financing. As a result of destabilization of the 
electricity industry and spot prices and, therefore, a market condition 
such that no power sales contract can be executed.
  The legislation provides for up to three consecutive, 2-year 
extensions, instead of a 6-year extension, to assure that the licensee 
must continue to meet the section 13 requirement that it prosecute each 
2-year extension. If FERC determines the licensee is not acting in good 
faith, it is expected that FERC will refuse to grant a request for an 
extension for an additional 2-year extension.
  This project has received no challenges and has been determined 
environmentally sound and nonthreatening by all applicable local, 
State, and Federal agencies. The Bear Creek facility is located 
entirely on private property.
  Mr. DAN SCHAEFER of Colorado. 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. Dan Schaefer, that the House suspend the 
rules and pass the bill, H.R. 1184, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________