[Congressional Record Volume 145, Number 63 (Tuesday, May 4, 1999)]
[House]
[Pages H2587-H2588]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  EXTENDING DEADLINE UNDER FEDERAL POWER ACT FOR MT. HOPE WATERPOWER 
                                PROJECT

  Mr. BARTON of Texas. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 459) to extend the deadline under the Federal Power 
Act for FERC Project No. 9401, the Mt. Hope Waterpower Project.
  The Clerk read as follows:

                                H.R. 459

       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, 2002.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. Barton) and the gentleman from Texas (Mr. Hall) each will 
control 20 minutes.
  The Chair recognizes the gentleman from Texas (Mr. Barton).


                             General Leave

  Mr. BARTON of Texas. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks and to insert extraneous material on the bill, H.R. 459.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. BARTON of Texas. Mr. Speaker, I yield myself 5 minutes.
  (Mr. BARTON of Texas asked and was given permission to revise and 
extend his remarks.)
  Mr. BARTON of Texas. Mr. Speaker, H.R. 459 extends the construction 
period for a hydroelectric project in the State of New Jersey. Under 
section 13 of the Federal Power Act, project construction must begin 
within 4 years of issuance of the license. If construction is not begun 
by that time, the Federal Energy Regulatory Commission cannot extend 
the deadline and must terminate the license.
  H.R. 459 grants the project developer until August 3, 2002, to 
commence construction if it pursues the commencement of construction in 
good faith and with due diligence.
  These types of bills have not been controversial in the past. The 
bill does not change the license requirement in any way. It does not 
change environmental standards but merely extends the construction 
deadline.
  There is a need to act, Mr. Speaker, since the construction deadline 
for the Mt. Hope Pumped Storage Project expires in August of this year. 
If Congress does not act, the Federal Energy Regulatory Commission will 
terminate the license, the project sponsor will lose $28 million that 
they have already invested in the project, and the local community will 
lose the prospect of significant job creation and added revenues. 
Construction of the Mt. Hope project will create 1,300 jobs during 
construction and generate $254 million for the local economy. If the 
Congress does not act, the local community will lose these jobs and 
these revenues.
  These extension bills have not proved controversial in the past. H.R. 
459 was approved by the Subcommittee on Energy and Power of the 
Committee on Commerce by unanimous voice vote. The bill was introduced 
jointly by the gentleman from New Jersey (Mr. Frelinghuysen) and the 
gentleman from New Jersey (Mr. Pallone).
  I support H.R. 459, Mr. Speaker.
  Mr. Speaker, I reserve the balance of my time.
  Mr. HALL of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  I will be brief, Mr. Speaker. I thank the chairman of the committee; 
and I want to congratulate my colleague, the gentleman from New Jersey 
(Mr. Frelinghuysen), for his very hard and successful bipartisan work 
on this bill. He has worked closely with the gentleman from New Jersey 
(Mr. Frank Pallone), who is an active member of our subcommittee, as 
well as the original cosponsor of this legislation. These two men 
together have done such an excellent job of building bipartisan support 
that, as the gentleman from Texas (Mr. Barton) has pointed out, it was 
reported out unanimously by both the Subcommittee on Energy and Power 
and the full Committee on Commerce.
  I know of no objection to this project; and I am, therefore, pleased 
to add our support to the legislation that would authorize FERC to 
extend the license for the Mt. Hope hydroelectric project for an 
additional 2 years.
  Mr. Speaker, I have no further requests for time; and I yield back 
the balance of my time.
  Mr. BARTON of Texas. Mr. Speaker, I yield such time as he may consume 
to the gentleman from New Jersey (Mr. Frelinghuysen), one of the 
original cosponsors whose district the project is located in.
  (Mr. FRELINGHUYSEN asked and was given permission to revise and 
extend his remarks.)
  Mr. FRELINGHUYSEN. Mr. Speaker, I thank the gentleman for yielding me 
this time; and I rise in strong support of H.R. 459, legislation I 
introduced earlier this year to extend the FERC license for the Mt. 
Hope hydroelectric project by a period of 3 years.
  First, let me thank the gentleman from Texas (Mr. Barton), the 
chairman of the Subcommittee on Energy and Power, and the gentleman 
from Virginia (Mr. Bliley), chairman of the full Committee on Commerce, 
as well as the ranking member of the subcommittee, the gentleman from 
Texas (Mr. Hall), and my colleague, the gentleman from New Jersey (Mr. 
Frank Pallone), for moving so expeditiously on this bill.
  Mt. Hope received its original FERC license in August of 1992. The 
license has been extended for 2 years by FERC and once by Congress in 
1995. H.R. 459 would simply ensure that there is additional time for 
Mt. Hope to secure the energy supply contracts to begin the 
construction of the proposed facility.
  This project is an advanced pumped-storage hydroelectric plant 
located in my district, Morris County, New Jersey. Far from a 
conventional hydro plant, this facility will be a closed cycle system 
in which water will be continuously circulated between two man-made 
reservoirs.
  The project has the strong support of local government officials and 
organizations where the project will be built, namely the New Jersey 
Business and Industry Association and the Sierra Club of New Jersey. 
This $2 billion project will be financed entirely by the private sector 
with no taxpayers' dollars used for its construction.
  As the chairman has mentioned, the project will bring approximately 
1,300

[[Page H2588]]

jobs to New Jersey and boost our Nation's economy by adding 
approximately $6 billion to the gross national product during 
construction.
  In a nutshell, this project can serve as our region's, northern New 
Jersey, New York and that area, as an energy insurance policy by 
enhancing the security of the electrical supply system for our region.
  Mr. Speaker, the project has many environmental, energy and economic 
benefits to the State of New Jersey and the mid-Atlantic region. The 
project has strong support of local and State officials; and it will 
help us meet, most importantly, the goals of the Clean Air Act. I urge 
my colleagues to support the passage of H.R. 459 so we can begin to 
realize these benefits.
  Mr. PALLONE. Mr. Speaker, I am pleased to speak today in support of 
H.R. 459, to extend the deadline for the Mt. Hope hydropower project.
  The Federal Power Act allows a licensee two years to begin 
construction of a hydroelectric project once a license is issued. The 
Federal Energy Regulatory Commission (FERC) may extend that deadline, 
but it may only do so once and only for two years. If project 
construction has not commenced by this deadline, the commission is 
required to terminate the license.
  However, there are many obstacles that often make it difficult for a 
project to commence construction during either the initial license time 
frame or the extension period. Perhaps the most frequent reason for 
delay is the lack of a power purchase agreement, for without such an 
agreement, it is unlikely that a project could get financed. This is 
the case with the Mt. Hope hydropower project to be located in Rockaway 
Township, Morris County, in my home state of New Jersey.
  Because of the limitations set in the Federal Power Act, the House 
has had a long, bipartisan tradition of moving non-controversial 
license extensions. I am pleased that Representative Frelinghuysen and 
I could introduce this bill in a bi-partisan manner. The Commerce 
Committee unanimously passed this bill. In addition, the chairman of 
FERC wrote a letter to the House Commerce Energy and Power Subcommittee 
just a few months ago indicating his approval for extending the 
deadline for this project.
  Mr. Speaker, I know of no objection to this bill, and I urge my 
colleagues to support the legislation.
  Mr. BARTON of Texas. 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 Texas (Mr. Barton) that the House suspend the rules and 
pass the bill, H.R. 459.
  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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