[House Report 105-124]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-124
_______________________________________________________________________


 
 EXTENSION OF HYDROELECTRIC PROJECT LOCATED IN THE STATE OF WASHINGTON

                                _______
                                

  June 7, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                        [To accompany H.R. 1217]

      [Including cost estimate of the Congressional Budget Office

    The Committee on Commerce, to whom was referred the bill 
(H.R. 1217) to extend the deadline under the Federal Power Act 
for the construction of a hydroelectric project located in the 
State of Washington, and for other purpose, having considered 
the same, report favorably thereon without amendment and 
recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Committee Consideration..........................................     3
Rollcall Votes...................................................     3
Committee Oversight Findings.....................................     3
Committee on Government Reform and Oversight.....................     3
New Budget Authority and Tax Expenditures........................     3
Committee Cost Estimate..........................................     3
Congressional Budget Office Estimate.............................     3
Federal Mandates Statement.......................................     4
Advisory Committee Statement.....................................     4
Constitutional Authority Statement...............................     5
Applicability to Legislative Branch..............................     5
Section-by-Section Analysis of the Legislation...................     5
Changes in Existing Law Made by the Bill, as Reported............     5

                          purpose and summary

    The purpose of H.R. 1217 is to extend the deadline for the 
completion of construction of a hydroelectric project in the 
State of Washington licensed by the Federal Energy Regulatory 
Commission (FERC).

                  background and need for legislation

    Section 13 of the Federal Power Act (16 U.S.C. Sec. 806 
(1988)) requires that both the commencement and completion of 
construction of hydroelectric projects be completed within 
deadlines fixed in licenses issued by FERC. The licensee must 
begin construction not more than two years from the date the 
license is issued, unless FERC extends the initial deadline. 
However, section 13 permits FERC to grant only one extension of 
that deadline for ``not longer than two additional years * * * 
when not incompatible with the public interests.'' Accordingly, 
FERC lacks authority to extend the deadline beyond a maximum of 
two years from the original deadline for commencement of 
construction. Therefore, a license is subject to termination if 
a licensee fails to begin construction within four years of the 
date the license is issued.
    A license issued by FERC also provides a deadline for the 
completion of construction. Under section 13 of the Federal 
Power Act, a licensee is directed to complete construction by a 
deadline fixed in the license. However, section 13 provides 
that ``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 
interests.'' In the event construction begins but is not 
completed by the deadline fixed in the license or extended by 
FERC, section 13 provides that the Attorney General, upon the 
request of FERC, shall institute proceedings in equity in the 
district court of the United States for the district in which 
any part of the project is located for the revocation of the 
license, the sale of the project works, and other relief.
    H.R. 1217 would extend the deadline for completion of 
construction of an 8.3 megawatt hydroelectric project (Project 
No. 10359) in Snohomish County, Washington, until May 4, 2004. 
Construction of the project commenced in a timely manner, and 
FERC extended the deadline for completion of construction from 
May 4, 1996 to May 4, 1998. The reason for the extension was 
the licensee lacked financing to complete construction of the 
project. The licensee has expended over $5 million on project 
development, or about 25 percent of total project costs. 
However, construction was suspended because the sponsor has not 
been able to secure a power purchase agreement to support 
additional financing of construction costs. Without an 
extension of the deadline for completion of construction, the 
license will be revoked.

                                hearings

    The Committee on Commerce has not held hearings on the 
legislation.

                        committee consideration

    On May 22, 1997, the Subcommittee on Energy and Power met 
in open markup session and approved H.R. 1217 for Full 
Committee consideration, without amendment, by a voice vote. 
The Full Committee met in open markup session on June 4, 1997, 
and ordered H.R. 1217 reported to the House, without amendment, 
by a voice vote.

                             rollcall votes

    Clause 2(l)(2)(B) of rule XI of the Rules of the House 
requires the Committee to list the recorded votes on the motion 
to report legislation and amendments thereto. There were no 
recorded votes taken in connection with ordering H.R. 1217 
reported. A motion by Mr. Bliley to order H.R. 1217 reported to 
the House, without amendment, was agreed to by a voice vote, a 
quorum being present.

                      committee oversight findings

    Pursuant to clause 2(l)(3)(A) of rule XI of the Rules of 
the House of Representatives, the Committee did not hold 
oversight or legislative hearings on this legislation.

              committee on government reform and oversight

    Pursuant to clause 2(l)(3)(D) of rule XI of the Rules of 
the House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform and Oversight.

               new budget authority and tax expenditures

    In compliance with clause 2(l)(3)(B) of rule XI of the 
Rules of the House of Representatives, the Committee finds that 
H.R. 1217 would result in no new or increased budget authority 
or tax expenditures or revenues.

                        committee cost estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 403 of the Congressional Budget Act of 1974.

                  congressional budget office estimate

    Pursuant to clause 2(l)(3)(C) of rule XI of the Rules of 
the House of Representatives, the following is the cost 
estimate provided by the Congressional Budget Office pursuant 
to section 403 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, June 5, 1997.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1217, a bill to 
extend the deadline under the Federal Power Act for the 
construction of a hydroelectric project located in the state of 
Washington, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Kim Cawley.
            Sincerely,
                                         Paul Van de Water,
                                   (for June E. O'Neill, Director.)
    Enclosure.

H.R. 1217--A bill to extend the deadline under the Federal Power Act 
        for the construction of a hydroelectric project located in the 
        state of Washington, and for other purposes

    CBO estimates that enacting this bill would have no net 
effect on the federal budget. The bill does not contain any 
intergovernmental or private-sector mandates, and would not 
impose any costs on state, local, or tribal governments.
    The bill would extend until May 4, 2004, the deadline for 
construction of a hydroelectric project currently subject to 
licensing by the Federal Energy Regulatory Commission (FERC). 
The proposed extension is for FERC project number 10359. This 
provision 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.
    The CBO staff contact for this estimate is Kim Cawley. This 
estimate was approved by Paul Van de Water, Assistant Director 
for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1. Extension of deadline

    This section directs the Federal Energy Regulatory 
Commission (FERC), upon the request of the licensee for Project 
No. 10359, to extend the time required for the completion of 
construction for such project until May 4, 2004. The section 
directs the licensee to submit reports on the status of the 
project to FERC on December 31 of each year until construction 
is completed.

         Changes in Existing Law Made by the Bill, as Reported

    H.R. 1217 does not amend any existing Federal statute.

                                
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