[House Report 105-748]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-748
_______________________________________________________________________


 
 TO EXTEND THE DEADLINE UNDER THE FEDERAL POWER ACT APPLICABLE TO THE 
    CONSTRUCTION OF A HYDROELECTRIC PROJECT IN THE STATE OF ARKANSAS

                                _______
                                

 September 25, 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. 4081]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, to whom was referred the bill 
(H.R. 4081) to extend the deadline under the Federal Power Act 
applicable to the construction of a hydroelectric project in 
the State of Arkansas, 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..........................................     2
Roll Call 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...............................     4
Applicability to Legislative Branch..............................     4
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. 4081 is to extend the deadline for the 
commencement of construction of a hydroelectric project in the 
State of Arkansas.

                  Background and Need for Legislation

    Section 13 of the Federal Power Act (16 U.S.C. Sec. 806) 
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. 4081 authorizes the FERC to extend the deadline for 
the commencement of construction for a 600 megawatt 
hydroelectric project (Project No. 10455) in Logan County, 
Arkansas, by up to three consecutive two-year periods. This 
extends the deadline to ten years after the date the license 
was issued. According to the project sponsor, construction has 
not commenced because it lacks a power purchase agreement. The 
deadline for the commencement of construction of this project 
expires on October 16, 1998. H.R. 4081 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 September 17, 1998, the Subcommittee on Energy and Power 
met in open markup session and approved H.R. 4081 for Full 
Committee consideration, without amendment, by a voice vote. 
The Full Committee met in open markup session on September 24, 
1998, and ordered H.R. 4081 reported to the House, without 
amendment, by a voice vote.

                            Roll Call 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. 4081 
reported. A motion by Mr. Bliley to order H.R. 4081 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. 4081 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, September 25, 1998.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Office has prepared 
the enclosed cost estimate for H.R. 4081, a bill to extend the 
deadline under the Federal Power Act applicable to the 
construction of a hydroelectric project in the state of 
Arkansas.
    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. 4081--A bill to extend the deadline under the Federal Power Act 
        applicable to the construction of a hydroelectric project in 
        the state of Arkansas

    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 as defined in the 
Unfunded Mandates Reform Act, and would impose no costs on 
state, local, or tribal governments.
    The bill would extend for up to six years 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 10455. This 
provision may have a minor impact of 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 N. 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 deadlines

    The section authorizes FERC, upon the request of the 
licensee for Project No. 10455, 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 by up to three consecutive 
two-year periods. The section provides that it takes effect 
upon the expiration of the extension previously issued by FERC 
under section 13.

         changes in existing law made by the bill, as reported

    H.R. 4081 does not amend any existing Federal statute.

                                
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