[Congressional Record Volume 143, Number 132 (Monday, September 29, 1997)]
[House]
[Pages H8087-H8088]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




EXTENSION OF DEADLINE FOR CONSTRUCTION OF FERC PROJECT IN THE STATE OF 
                                  IOWA

  Mr. CRAPO. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 2165) to extend the deadline under the Federal Power Act 
applicable to the construction of FERC Project No. 3862 in the State of 
Iowa, and for other purposes.
  The Clerk read as follows:

                               H.R. 2165

       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) Project Numbered 3862.--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 3862, the Commission 
     is authorized, at the request of the licensee for the 
     project, and after reasonable notice, in accordance with the 
     good faith, due diligence, and public interest requirements 
     of that section and the Commission's procedures under that 
     section, to extend the time required for commencement of 
     construction of the project for not more than 3 consecutive 
     2-year periods.
       (b) Effective Date.--This section shall take effect on the 
     date of the expiration of the extension of the period 
     required for commencement of construction that the Commission 
     issued, prior to the date of enactment of this Act, under 
     section 13 of the Federal Power Act (16 U.S.C. 806) for the 
     project described in subsection (a).
       (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.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Idaho [Mr. Crapo] and the gentleman from Texas [Mr. Hall] each will 
control 20 minutes.
  The Chair recognizes the gentleman from Idaho [Mr. Crapo].
  Mr. CRAPO. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. CRAPO asked and was given permission to revise and extend his 
remarks.)
  Mr. CRAPO. Mr. Speaker, under section 13 of the Federal Power Act, 
project construction must begin within 4 years of issuance of a 
license. If construction has not begun by that time, the Federal Energy 
Regulatory Commission cannot extend the deadline and must terminate the 
license. H.R. 2165 provides for extension of the construction deadline 
of the LeClaire project, a 27-megawatt hydroelectric project in Iowa, 
if the sponsor pursues the commencement of construction in good faith 
and with due diligence.
  These types of bills have not been controversial in the past, and 
this bill does not change the license requirements in any way, and does 
not change environmental standards. It merely extends the construction 
deadline. There is a need to act, since the construction deadline for 
the project expires in February 1998. If Congress does not act, FERC 
will terminate the license, the project sponsors will lose their 
investment in the project, and the community will lose the prospect of 
significant job creation and added revenues.
  H.R. 2165 would extend the deadline for up to 6 years and reinstate 
the license if it expires before the enactment of the bill. Lack of a 
power purchase agreement is the main reason construction of projects 
may not commence in a timely manner. It is very difficult for a 
hydroelectric project sponsor to secure financing until they have a 
license, and once they have been granted a license the construction 
deadline begins to run. However, the onset of intense competition in 
the electric industry is driving utilities to lower their costs and 
avoid making long-term commitments.
  Without a power purchase agreement a project generally cannot be 
financed. According to sponsors of the LeClaire project, construction 
has not commenced because of the lack of a power purchase agreement 
needed to obtain the financing. I should also note that the bill 
incorporates the views of the Federal Energy Regulatory Commission. The 
Subcommittee on Energy and Power solicited the views of FERC, and the 
agency does not oppose H.R. 2165.
  I urge my colleagues to support H.R. 2165, and I reserve the balance 
of my time, Mr. Speaker.
  Mr. HALL of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I am pleased to support H.R. 2165, which extends the 
license for a very important hydroelectric project. I commend the 
gentleman from Iowa [Mr. Leach] for bringing the bill to the committee. 
This continues a bipartisan tradition of the Committee on Commerce 
under which noncontroversial pending hydro projects can receive an 
extension of time to permit their completion.
  I think these projects are important to Members on both sides of the 
aisle, and I commend the gentleman from Virginia, Chairman Bliley, and 
the gentleman from Colorado, Mr. Dan Schaefer, and the gentleman from 
Idaho, Mr. Crapo, for their leadership in moving these bills forward in 
a prompt and fair manner.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CRAPO. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Iowa [Mr. Leach].
  Mr. LEACH. Mr. Speaker, I would like to thank Mr. Crapo for managing 
the bill today and Chairman Dan Schaefer and Ranking Member Ralph Hall 
of the Subcommittee on Energy and Power, as well as Chairman Tom Bliley 
and Ranking Member John Dingell of the Committee on Commerce for 
bringing this legislation to the floor so expeditiously. I would also 
like to express my appreciation to the staff of the Commerce Committee, 
and particularly Joe Kelliher, for their work on the bill.
  H.R. 2165 authorizes the Federal Energy Regulatory Commission [FERC] 
to extend the time required for commencement of construction of a 
hydroelectric project in my district for a maximum of three consecutive 
2-year periods.
  The project this legislation affects, FERC Project No. 3862, calls 
for the construction of a 27-megawatt hydropower facility on lock and 
dam 19 located on the Mississippi River adjacent to LeClaire, IA. Plans 
for deregulation of the power industry have temporarily halted the 
willingness of utilities to enter into long-term power purchase 
agreements. As a result, project coordinators do not anticipate being 
able to finalize power sales negotiations in time to meet the present 
February 28, 1998,

[[Page H8088]]

deadline for beginning construction on the project.
  My understanding is that granting FERC the authority to extend the 
deadline for such projects has become a routine matter, and that FERC 
has indicated that it has no objection to the extension called for by 
H.R. 2165.
  Granting the extension authorized by this legislation would help 
ensure a responsible review of the project's economic viability. It 
would also enable the environmental impact of the project to remain 
under review in order to help ensure that the project's impact on the 
ecology of the Mississippi River is benign.
  Again, I would like to thank the members of the Commerce Committee 
and its staff for their support of H.R. 2165 and urge its support by my 
colleagues in the House.
  Mr. HALL of Texas. Mr. Speaker, I have no further requests for time, 
and I yield back the balance of my time.
  Mr. CRAPO. 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 Idaho [Mr. Crapo] that the House suspend the rules and 
pass the bill, H.R. 2165.
  The question was taken.
  Mr. CONDIT. Mr. Speaker, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Pursuant to clause 5, rule I, and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.
  The point of no quorum is considered withdrawn.

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