[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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