[House Report 105-509]
[From the U.S. Government Publishing Office]
105th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 105-509
_______________________________________________________________________
FERC PROJECT NUMBER 9248 IN THE STATE OF COLORADO
_______
May 6, 1998.--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. 2217]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, to whom was referred the bill
(H.R. 2217) to extend the deadline under the Federal Power Act
applicable to the construction of FERC Project Number 9248 in
the State of Colorado, and for other purposes, 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, Entitlement 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. 2217 is to extend the deadline for the
commencement of construction of a hydroelectric project in the
State of Colorado.
Background and Need for Legislation
Section 13 of the Federal Power Act (16 U.S.C. Sec. 806
(1988)) establishes time limits for commencement of
construction of a hydroelectric project once the Federal Energy
Regulatory Commission (FERC) has issued a license. 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.
Lack of a power sales contract can delay the commencement
of construction of licensed hydroelectric projects. It is very
difficult for a hydroelectric project sponsor to secure
financing until it has a power sales contract, and generally a
licensee cannot secure a contract until it has been granted a
license. However, the construction deadline begins to toll once
the license is granted. There are other obstacles to
commencement of construction, such as protracted proceedings on
a licensee's application for a dredge and fill permit from the
Army Corps of Engineers under section 404 of the Clean Water
Act. FERC has testified that in such cases it has issued orders
staying the license until matters are resolved, suggesting
extension legislation is not needed in order to address delays
beyond the control of the licensee.
H.R. 2217 would extend the deadline for the commencement of
construction for a 4.6 megawatt hydroelectric project (Project
No. 9248) in San Miguel County, Colorado, until January 30,
2002. This would extend the deadline to ten years after the
date the license was issued. According to the project sponsor,
construction has not commenced because of delays in obtaining a
special use permit from the U.S. Forest Service and a U.S. Army
Corps of Engineers dredge and fill permit, and because it lacks
a power purchase agreement. The deadline for the commencement
of construction of this project expired on January 26, 1996,
and FERC has terminated the license. H.R. 2217 does not ease
the requirements of a hydroelectric license, but merely extends
the period for commencement of project construction. The
legislation provides that the licensee must meet the section 13
requirement that it prosecute construction ``in good faith and
with due diligence.''
Hearings
The Committee on Commerce has not held hearings on the
legislation.
Committee Consideration
On April 22, 1998, the Subcommittee on Energy and Power met
in open markup session and approved H.R. 2217 for Full
Committee consideration, without amendment, by a voice vote.
The Full Committee met in open markup session on April 29,
1998, and ordered H.R. 2217 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 of
Representatives 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. 2217 reported. A motion by Mr. Bliley to order
H.R. 2217 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, Entitlement 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. 2217 would result in no new or increased budget authority,
entitlement 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 402 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 402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 30, 1998.
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. 2217, a bill to
extend the deadline under the Federal Power Act applicable to
the construction of FERC project number 9248 in the state of
Colorado, 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,
June E. O'Neill, Director.
Enclosure.
H.R. 2217--A bill to extend the deadline under the Federal Power Act
applicable to the construction of FERC project number 9248 in
the state of Colorado, and for other purposes
CBO estimates that enacting H.R. 2217 would have no net
effect on the federal budget. The bill does not contain any
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act of 1995 and would not affect the
budgets of state, local, or tribal governments.
The bill would extend the deadline for construction of a
hydroelectric project currently subject to licensing by the
Federal Energy Regulatory Commission (FERC) until January 20,
2002. The proposed extension is for FERC project number 9248.
The bill also would direct FERC to reinstate the license of the
town of Telluride, Colorado, for this project. 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 Robert A. Sunshine, Deputy 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 and reinstatement of license
Subsection (a) directs the Federal Energy Regulatory
Commission (FERC), upon the request of the licensee for Project
No. 9248, and in accordance with the good faith, due diligence,
and public interest requirements of section 13 of the Federal
Power Act and FERC's procedures under such section, to extend
the time required for the commencement of construction for such
project until January 30, 2002. Subsection (b) directs FERC to
reinstate the license that expired prior to the date of
enactment of this Act effective upon the date of its
expiration.
Changes in Existing Law Made by the Bill, as Reported
H.R. 2217 does not amend any existing Federal statute.