[Senate Report 104-76]
[From the U.S. Government Publishing Office]
Calendar No. 99
104th Congress Report
SENATE
1st Session 104-76
_______________________________________________________________________
EXTENSION OF COMMENCEMENT OF CONSTRUCTION DEADLINE FOR CERTAIN
HYDROELECTRIC PROJECTS LOCATED IN THE STATE OF ARKANSAS
_______
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. 549]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 549) to extend the deadline under the
Federal Power Act applicable to the construction of three
hydroelectric projects in the State of Arkansas, having
considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
purpose of the measure
The purpose of S. 549 is to extend the deadline contained
in the Federal Power Act for the commencement of construction
of three FERC-licensed hydroelectric projects located in the
State of Arkansas.
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. 549 would extend the time required to begin construction
for a maximum of three consecutive two-year periods for the
White River Hydroelectric Project's Lock and Dam Nos. 1, 2, and
3 (Projects Nos. 4204, 4660, and 4659) on the White River in
north central Arkansas.
legislative history
S. 549 was introduced by Senator Bumpers on March 14, 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. 549, a bill to extend the deadline under the
Federal Power Act applicable to the construction of three
hydroelectric projects in the State of Arkansas, 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 provide extensions of deadlines for
construction of three hydroelectric projects 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 provision 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, April 5, 1995.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate,
Washington, DC.
Dear Mr. Chairman: Thank you for your request for comments
on eight bills affecting twelve hydroelectric projects licensed
by the Federal Energy Regulatory Commission.
My detailed comments are enclosed. 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.
comments on pending hydroelectric legislation by elizabeth a. moler,
chair, federal energy regulatory commission: s. 283, s. 468, s. 543, s.
547, s. 549, s. 552, s. 595, and s. 611
Six of the bills would extend the statutory deadline for
the start of construction of ten licensed projects. The seventh
bill would extend for one licensed project the non-statutory
deadline for completion of project construction. The eighth
bill would partially waive annual charges assessed for one
licensed project's occupancy of federal land. I will address
each subject matter in turn.
A. Extending deadlines to commence project construction
Overview
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.
All ten of the projects in question have received the
maximum four years for commencement of construction. S. 611
would authorize the commission to extend one project's
construction deadline by an additional three years, for a total
of seven years. S. 468, S. 547, and S. 595 would authorize or
require the Commission to extend the deadline for four projects
by an additional six years, for a total of ten years. S. 283
would authorize the Commission to extend the deadline for two
projects by an additional eighteen and one-half months, for a
total of a little over eleven and one-half years. S. 549 would
authorize an extension of up to six years for three projects
which have already been given ten years: four years under
Section 13 and six years under special legislation passed in
1989.
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. Appropriate amendments to the bills that
would provide a construction commencement deadline exceeding
ten years are suggested below.
* * * * * * *
S. 549 (Senator Bumpers)
S. 549 would authorize the Commission to extend for up to
six years (16 years after licensing) the deadline for
commencement of construction of Project Nos. 4204, 4659, and
4660.
Project No. 4204
On February 28, 1986, the Commission issued a license to
the City of Batesville, Arkansas, to construct and operate the
6,825-kilowatt White River Lock and Dam No. 1 Project No. 4204,
to be located at the licensee's existing dam on the White River
in Independence County, Arkansas. The deadline for the
commencement of project construction, originally February 27,
1988, was extended to February 27, 1990. Under Pub. L. No. 101-
155, 103 Stat. 935 (1989), this deadline was extended three
more times (each time for two years), to February 27, 1996,
because the licensee had not obtained a power sales contract.
Construction of the project entails adding an intake
structure, a powerhouse, a 280-foot-long tailrace, a 10,000-
foot-long transmission line, and related project facilities.
Project No. 4659
On February 28, 1986, the Commission issued a license to
Independence County, Arkansas, to construct and operate the
10.5-megawatt White River Lock and Dam No. 3 Hydroelectric
Project No. 4659, to be located at an existing Corps dam on the
White River in Stone County, Arkansas. The original deadline
for the commencement of project construction was February 27,
1988. By order issued March 16, 1987, this deadline was
extended to February 27, 1990. Under Pub. L. No. 101-155, 103
Stat. 935 (1989), this deadline was extended three more times
(each time for two years), to February 27, 1996.
Construction of the project entails adding an intake
structure, a powerhouse, a tailrace, a 7-mile-long transmission
line, and related project facilities.
Project No. 4660
On November 8, 1985, the Commission issued a license to
Independence County to construct and operate the 7,080-kilowatt
White River Lock and Dam No. 2 Project No. 4660, to be located
at an existing privately owned dam on the White River in
Independence County, Arkansas. The deadline for the
commencement of project construction, originally November 7,
1987, was extended to November 7, 1989. Under Pub. L. No. 101-
155, 103 Stat. 935 (1989), this deadline was extended three
more times (each time for two years), to November 7, 1995,
because the licensee had not obtained a power sales contract.
Construction of the project entails adding an intake
structure, a powerhouse, a 120-foot-long tailrace, a 6.5-mile-
long transmission line, and related project facilities.
The legislation should be amended to provide a maximum of
ten years to begin construction. The new deadlines would thus
be February 27, 1996 for Project No. 4204; February 27, 1996
for Project No. 4659; and November 7, 1995 for Project No.
4660.
* * * * * * *
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. 549, as ordered
reported.