[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.

                                
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