[Senate Report 104-75]
[From the U.S. Government Publishing Office]
Calendar No. 98
104th Congress Report
SENATE
1st Session 104-75
_______________________________________________________________________
EXTENSION OF COMMENCEMENT OF CONSTRUCTION DEADLINE FOR A HYDROELECTRIC
PROJECT LOCATED IN THE STATE OF OREGON
_______
April 27 (legislative day, April 24), 1995.--Ordered to be printed
_______________________________________________________________________
Mr. Murkowski, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 538]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 538) to reinstate the permit for, and
extend the deadline under the Federal Power Act applicable to
the construction of, a hydroelectric project in Oregon, and for
other purposes, having considered the same, reports favorably
thereon without amendment and recommends that the bill do pass.
purpose of the measure
The purpose of S. 538 is to extend the deadline contained
in the Federal Power Act for the commencement of construction
of a FERC-licensed hydroelectric project located in the State
of Oregon.
background and need
Section 13 of the Federal Power Act requires a licensee to
commence the construction of a hydroelectric project within two
years of the date of the issuance of the license. That deadline
can be extended by the FERC one time for as much as two
additional years. If construction has not commenced at the end
of the time period, the license is terminated by the FERC.
Thus, in the absence of this legislation, the FERC would
terminate the license at the end of the time period authorized
under the Federal Power Act for commencement of construction.
S. 538 would reinstate the terminated license and extend
the time required to begin construction for a maximum of four
years for the Emigrant Dam Project (Project No. 7829) on the
Emigrant River in Jackson Country, Oregon.
legislative history
S. 538 was introduced by Senator Hatfield on March 10,
1995. Last Congress, these provisions were included in S. 2384
as passed by the Senate on October 5, 1994.
Committee Recommendation and Tabulation of Votes
The Senate Committee on Energy and Natural Resources, in
open business session on March 15, 1995, by a majority vote of
a quorum present, recommends that the Senate pass the bill as
described herein.
The rollcall vote on reporting the measure was 18 yeas, 0
nays, as follows:
YEAS NAYS
Mr. Murkowski
Mr. Hatfield \1\
Mr. Domenici
Mr. Nickles \1\
Mr. Craig
Mr. Thomas
Mr. Kyl\1\
Mr. Grams
Mr. Jeffords \1\
Mr. Burns
Mr. Campbell
Mr. Johnston
Mr. Bumpers
Mr. Ford
Mr. Bradley
Mr. Bingaman \1\
Mr. Akaka
Mr. Wellstone
\1\ Indicates vote by proxy.
cost and budgetary considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, March 30, 1995.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate,
Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
reviewed S. 538, a bill to reinstate the permit for, and extend
the deadline under the Federal Power Act applicable to the
construction of, a hydroelectric project in Oregon, and for
other purposes, as ordered reported by the Senate Committee on
Energy and Natural Resources on March 15, 1995. CBO estimates
that enacting the bill would have no net effect on the federal
budget.
The bill would reinstate the permit for, and extend the
deadline for construction of a hydroelectric project currently
subject to licensing by the Federal Energy Regulatory
Commission (FERC). These provisions may have a minor impact on
FERC's workload. Because FERC recovers 100 percent of its costs
through user fees, any change in its administrative costs would
be offset by an equal change in the fees that the commission
charges. Hence, the bill's provisions would have no net
budgetary impact.
Because FERC's administrative costs are limited in annual
appropriations, enactment of this bill would not affect direct
spending or receipts. Therefore, pay-as-you-go procedures would
not apply to the bill. In addition, CBO estimates that enacting
the bill would have no significant impact on the budgets of
state or local governments.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Kim Cawley.
Sincerely,
June E. O'Neill, Director.
regulatory impact evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out this measure.
The bill is not a regulatory measure in the sense of
imposing Government-established standards or significant
economic responsibilities on private individuals and
businesses.
No personal information would be collected in administering
the provisions of the bill. Therefore, there would be no impact
on personal privacy.
Little, if any additional paperwork would result from the
enactment of this measure.
executive communications
The pertinent communications received by the Committee from
the Federal Energy Regulatory Commission setting forth
Executive agency relating to this measure are set forth below:
Federal Energy Regulatory Commission,
Washington, DC, March 14, 1995.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate,
Washington, DC.
Dear Mr. Chairman: Thank you for your letters of February
27 and March 2, 1995, and Committee staff's inquiries of March
13 and 14, requesting my comments on a number of bills to allow
for the extension of the construction deadlines applicable to
nine hydroelectric projects licensed by the Federal Energy
Regulatory Commission. Because it is my understanding that the
Committee is scheduled to mark all these bills on March 15, I
have combined my comments on these bills in one letter.
This letter also responds to your March 2, 1995 request for
comments on S. 225, a bill to remove the Commission's
jurisdiction to license projects on fresh waters in the State
of Hawaii; and to Committee staff's March 13 request for
comments on S. 522, a bill to exempt from Part I the Federal
Power Act the primary transmission line for a project in New
Mexico. The bill fall into four general categories. Each bill
is discussed below.
1. Extension of statutory deadline to commence construction
Section 13 of the Federal Power Act requires that
construction of a licensed project be commenced within two
years of issuance of the license. Section 13 authorizes the
Commission to extend this deadline once, for a maximum
additional two years. If project construction has not commenced
by this deadline, Section 13 requires the Commission to
terminate the license.
As a general principle, I do not support the enactment of
bills authorizing or requiring construction extensions for
individual projects. However, if such extensions are to be
authorized, as a matter of policy I would object to granting a
licensee more than ten years from the issuance date of the
license to commence construction. In my view, ten years is a
more than reasonable period for a licensee to determine
definitively whether a project is economically viable and to
sign a power purchase agreement. If a licensee cannot meet such
a deadline, I believe the site should be made available to
potential competitors.
I do not have specific objctions to the proposed
legislation, except with respect to the ten year maximum time
period to begin construction. Suggestions on how to conform the
legislation to that principle are noted.
* * * * * * *
S. 538
S. 538 would require the Commission, at the request of the
licensee, to reinstate the terminated license for Project No.
7829 effective May 23, 1993, and give the licensee four years
from the date of enactment of S. 538 to commence project
construction.
The Commission issued a license on May 25, 1989, to the
Talent, Rogue River Valley, and Medford Irrigation Districts to
construct and operate the 1,896-kilowatt Emigrant Dam Hydro
Project No. 7829 at an existing Bureau of Reclamation dam on
Emigrant Creek in Jackson County, Oregon. The original deadline
for commencement of project construction was May 24, 1991. This
deadline was subsequently extended to May 24, 1993, because the
licensee had not obtained a power sales contract. On September
21, 1993, the Commission terminated the license for the
licensee's failure to commence construction by the statutory
deadline.
Project construction entails adding a bifurcation pipe at
the existing outlet pipe of the Emigrant Dam; one penstock, 175
feet long, leading to one powerhouse; a second penstock, 195
feet long, leading to a second powerhouse; a tailrace, a 1,000-
foot-long transmission line, and related project facilities.
* * * * * * *
Thank you for offering me an opportunity to comment on
bills affecting the Commission's hydropower program. If I can
be of further assistance to you in this or any other Commission
matter, please let me know.
With best wishes,
Sincerely,
Elizabeth A. Moler, Chair.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by S. 538, as ordered
reported.