[Congressional Record Volume 144, Number 85 (Thursday, June 25, 1998)]
[Senate]
[Pages S7224-S7225]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   HYDROELECTRIC PROJECTS ACT OF 1997

  The Senate proceed to consider the bill (S. 439) to provide for 
Alaska State jurisdiction over small hydroelectric projects, to address 
voluntary licensing of hydroelectric projects, to address voluntary 
licensing of hydroelectric projects on fresh waters in the Sate of 
Hawaii, to provide an exemption for portion of a hydroelectric project 
locate in the State of New Mexico, and for other purposes, which had 
been reported from the Committee on Energy and Natural Resources, with 
amendments, as follows:
  (The parts of the bill intended to be stricken are shown in boldface 
brackets and the parts of the bill intended to be inserted are shown in 
italic.)
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     [SECTION. 1. ALASKA STATE JURISDICTION OVER SMALL 
                   HYDROELECTRIC PROJECTS.

       [The Federal Power Act, as amended (16 U.S.C. 1791a et 
     seq.) is further amended by adding the following at the end 
     of section 23:
       [``(c) In the case of any project works in the State of 
     Alaska--
       [``(1) that are not part of a project licensed under this 
     Act prior to the date of enactment of this subsection;
       [``(2) for which a preliminary permit or a license 
     application has not been accepted for filing by the 
     Commission prior to the date of enactment of this subsection 
     (unless such application is withdrawn at the election of the 
     applicant);

[[Page S7225]]

       [``(3) that have a power production capacity of 5,000 
     kilowatts or less;
       [``(4) that are located entirely within the boundaries of 
     the State of Alaska; and
       [``(5) that are not located in whole or in part on any 
     Indian reservation, unit of the National Park System, 
     component of the Wild and Scenic Rivers System or segment of 
     a river designated for study for potential addition to such 
     system,

     the State of Alaska shall have the exclusive authority to 
     authorize such project works under State law, in lieu of 
     licensing by the Commission under the otherwise applicable 
     provisions of this part, effective upon the date on which the 
     Governor of the State of Alaska notifies the Secretary of 
     Energy that the State has in place a process for regulating 
     such projects which gives appropriate consideration to the 
     improvement or development of the State's waterways for the 
     use or benefit of intrastate, interstate, or foreign 
     commerce, for the improvement and use of waterpower 
     development, for the adequate protection, mitigation of 
     damage to, and enhancement of fish and wildlife (including 
     related spawning grounds), and for other beneficial public 
     uses, including irrigation, flood control, water supply, 
     recreational and other purposes, and Indian rights, if 
     applicable.
       [``(d) In the case of a project that would be subject to 
     authorization by the State under subsection (c) but for the 
     fact that the project has been licensed by the Commission 
     prior to the enactment of subsection (c), the licensee of 
     such project may in its discretion elect to make the project 
     subject to the authorizing authority of the State.
       [``(e) With respect to projects located in whole or in part 
     on Federal lands, State authorizations for project works 
     pursuant to subsection (c) of this section shall be subject 
     to the approval of the Secretary having jurisdiction with 
     respect to such lands and subject to such terms and 
     conditions as the Secretary may prescribe.''
       [``(f) Nothing in subsection (c) shall preempt the 
     application of Federal environment, natural, or cultural 
     resources protection laws according to their terms.''.]

     SECTION 1. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC 
                   PROJECTS.

       Part I of the Federal Power Act (16 U.S.C. 792 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 32. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC 
                   PROJECTS.

       ``(a) Discontinuance of Regulation by the Commission.--
     Notwithstanding sections 4(e) and 23(b), the Commission shall 
     discontinue exercising licensing and regulatory authority 
     under this Part over qualifying project works in the State of 
     Alaska, effective on the date on which the Commission 
     certifies that the State of Alaska has in place a regulatory 
     program for water-power development that--
       ``(1) protects the public interest, the purposes listed in 
     paragraph (2), and the environment to the same extent 
     provided by licensing and regulation by the Commission under 
     this Part and other applicable Federal laws, including the 
     Endangered Species Act (16 U.S.C. 1531 et seq.) and the Fish 
     and Wildlife Coordination Act (16 U.S.C. 661 et seq.);
       ``(2) gives equal consideration to the purposes of--
       ``(A) energy conservation;
       ``(B) the protection, mitigation of damage to, and 
     enhancement of, fish and wildlife (including related spawning 
     grounds and habitat);
       ``(C) the protection of recreational opportunities,
       ``(D) the preservation of other aspects of environmental 
     quality,
       ``(E) the interests of Alaska Natives, and
       ``(F) other beneficial public uses, including irrigation, 
     flood control, water supply, and navigation; and
       ``(3) requires, as a condition of a license for any project 
     works--
       ``(A) the construction, maintenance, and operation by a 
     licensee at its own expense of such lights and signals as may 
     be directed by the Secretary of the Department in which the 
     Coast Guard is operating, and such fishways as may be 
     prescribed by the Secretary of the Interior or the Secretary 
     of Commerce, as appropriate;
       ``(B) the operation of any navigation facilities which may 
     be constructed as part of any project to be controlled at all 
     times by such reasonable rules and regulations as may be made 
     by the Secretary of the Army; and
       ``(C) conditions for the protection, mitigation, and 
     enhancement of fish and wildlife based on recommendations 
     received pursuant to the Fish and Wildlife Coordination Act 
     (16 U.S.C. 661 et seq.) from the National Marine Fisheries 
     Service, the United States Fish and Wildlife Service, and 
     State fish and wildlife agencies.
       ``(b) Definition of `Qualifying Project Works'.--For 
     purposes of this section, the term ``qualifying project 
     works'' means project works--
       ``(1) that are not part of a project licensed under this 
     Part or exempted from licensing under this Part or section 
     405 of the Public Utility Regulatory Policies Act of 1978 
     prior to the date of enactment of this section;
       ``(2) for which a preliminary permit, a license 
     application, or an application for an exemption from 
     licensing has not been accepted for filing by the Commission 
     prior to the date of enactment of subsection (c) (unless such 
     application is withdrawn at the election of the applicant);
       ``(3) that are part of a project that has a power 
     production capacity of 5,000 kilowatts or less;
       ``(4) that are located entirely within the boundaries of 
     the State of Alaska; and
       ``(5) that are not located in whole or in part on any 
     Indian reservation, a conservation system unit (as defined in 
     section 102(4) of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3102(4))), or segment of a river 
     designated for study for addition to the Wild and Scenic 
     Rivers System.
       ``(c) Election of State Licensing.--In the case of 
     nonqualifying project works that would be a qualifying 
     project works but for the fact that the project has been 
     licensed (or exempted from licensing) by the Commission prior 
     to the enactment of this section, the licensee of such 
     project may in its discretion elect to make the project 
     subject to licensing and regulation by the State of Alaska 
     under this section.
       ``(d) Project Works on Federal Lands.--With respect to 
     projects located in whole or in part on a reservation, a 
     conservation system unit, or the public lands, a State 
     license or exemption from licensing shall be subject to--
       ``(1) the approval of the Secretary having jurisdiction 
     over such lands; and
       ``(2) such conditions as the Secretary may prescribe.
       ``(e) Consultation With Affected Agencies.--The Commission 
     shall consult with the Secretary of the Interior, the 
     Secretary of Agriculture, and the Secretary of Commerce 
     before certifying the State of Alaska's regulatory program.
       ``(f) Application of Federal Laws.--Nothing in this section 
     shall preempt the application of Federal environmental, 
     natural resources, or cultural resources protection laws 
     according to their terms.
       ``(g) Oversight by the Commission.--The State of Alaska 
     shall notify the Commission not later than 30 days after 
     making any significant modification to its regulatory 
     program. The Commission shall periodically review the State's 
     program to ensure compliance with the provisions of this 
     section.
       ``(h) Resumption of Commission Authority.--Notwithstanding 
     subsection (a), the Commission shall reassert its licensing 
     and regulatory authority under this Part if the Commission 
     finds that the State of Alaska has not complied with one or 
     more of the requirements of this section.
       ``(i) Determination by the Commission.--
       ``(1) Upon application by the Governor of the State of 
     Alaska, the Commission shall within 30 days commence a review 
     of the State of Alaska's regulatory program for water-power 
     development to determine whether it complies with the 
     requirements of subsection (a).
       ``(2) The Commission's review required by paragraph (1) 
     shall be completed within one year of initiation, and the 
     Commission shall within 30 days thereafter issue a final 
     order determining whether or not the State of Alaska's 
     regulatory program for water-power development complies with 
     the requirements of subsection (a).
       ``(3) If the Commission fails to issue a final order in 
     accordance with paragraph (2), the State of Alaska's 
     regulatory program for water-power development shall be 
     deemed to be in compliance with subsection (a).''.

     SEC. 2. VOLUNTARY LICENSING OF HYDROELECTRIC PROJECTS ON 
                   FRESH WATERS IN THE STATE OF HAWAII.

       Section 4(e) of the Federal Power Act is amended by 
     striking ``several States, or upon'' and inserting ``several 
     States (except fresh waters in the State of Hawaii, unless a 
     license would be required by section 23 of the Act), or 
     upon''.

     SEC. 3. LIMITED EXEMPTION FOR TRANSMISSION FACILITIES 
                   ASSOCIATED WITH THE EL VADO HYDROELECTRIC 
                   PROJECT.

       (a) Part I of the Federal Power Act, and the jurisdiction 
     of the Federal Energy Regulatory Commission under such part 
     I, shall not apply to the transmission line facilities 
     associated with the El Vado Hydroelectric project (FERC 
     project No. 5226) which are described in subsection (b).
       (b) The facilities to which the exemption under subsection 
     (a) applies are those transmission facilities located near 
     the Rio Chama, a tributary of the Rio Grande, in Rio Arriba 
     County, New Mexico, referred to as the El Vado transmission 
     line, a three phase 12-mile long 69 kV power line installed 
     within a 50-foot wide right-of-way in Rio Arriba County, New 
     Mexico, originating at the El Vado project's switchyard and 
     connecting to the Spills 69 kV switching station operated by 
     the Northern Arriba Electric Cooperative Inc.

     SEC. 4. FERC EXTENSION OF COMMENCEMENT OF CONSTRUCTION 
                   DEADLINE FOR HYDROELECTRIC PROJECTS.

       The second sentence in section 13 of the Federal Power Act 
     (15 U.S.C. 806) is amended to read as follows: ``The period 
     for the commencement of construction may be extended by the 
     Commission for not longer than ten years from the issuance 
     date of the license when not incompatible with the public 
     interest, and the period for the completion of construction 
     carried on in good faith and with reasonable diligence may be 
     extended by the Commission when not incompatible with the 
     public interest.''.

     SEC. 5. TECHNICAL CORRECTION.

       Section 6 of the Federal Power Act (16 U.S.C. 799) is 
     amended by adding at the end the following:
       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 license and the Commission after thirty days' public 
     notice.
  The amendments were agreed to.
  The bill (S. 439), as amended, was passed.




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