[Senate Report 105-137]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 256
105th Congress                                                   Report
                                 SENATE

 1st Session                                                    105-137
_______________________________________________________________________


 
 EXTENSION OF HYDROELECTRIC PROJECT LOCATED IN THE STATE OF WASHINGTON

                                _______
                                

                November 4, 1997.--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 H.R. 1217]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (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 
purposes, having considered the same, reports favorably thereon 
without amendment and recommends that the Act do pass.

                         Purpose of the Measure

    The purpose of H.R. 1217 is to extend the deadline 
contained in the Federal Power Act for the commencement of 
construction of a FERC-licensed hydroelectric project (project 
number 10359) located in the State of Washington.

                          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.
    H.R. 1217 would extend the time required to complete 
construction of hydroelectric project numbered 10359 until May 
4, 2004. This project has spent about $5 million on project 
development. However, construction was suspended because the 
sponsor has not been able to secure a power purchase agreement 
to support additional financing of construction.
    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. This extension provides the project 
additional time to secure a contract and financing and to 
complete construction.

                          Legislative History

    H.R. 1217 was passed by the House on June 10, 1997. A 
hearing was held by the Subcommittee on Water and Power on 
October 7, 1997.

            Committee Recommendation and Tabulation of Votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on October 22, 1997, by a voice vote with 
a quorum present, recommends that the Senate pass the bill 
without amendment.

                   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, October 24, 1997.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources, U.S. Senate, 
        Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1217, an act 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 for this 
estimate is Kim Cawley.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

H.R. 1217--An act 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 H.R. 1217 would have no net 
effect on the federal budget. The legislation contains no 
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.
    H.R. 1217 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 
provisions would have no net budgetary impact.
    Because FERC's administrative costs are limited in annual 
appropriations, enactment of this legislation would not affect 
direct spending or receipts. Therefore, pay-as-you-go 
procedures would not apply.
    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.

                      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:

Statement of Kristina Nygaard, Assistant General Counsel, Hydroelectric 
            Licensing, Federal Energy Regulatory Commission

    Mr. Chairman and Members of the Subcommittee: My name is 
Kristina Nygaard, and I am Assistant General Counsel for 
Hydroelectric Licensing at the Federal Energy Regulatory 
Commission. I am appearing before you as a Commission staff 
witness and do not speak for individual members of the 
Commission.
    Thank you for the opportunity to be here today to comment 
on a bill affecting the Federal Energy Regulatory Commission's 
regulation of non-federal hydropower projects pursuant to Part 
I of the Federal Power Act and related statutes.
    H.R. 1217 would extend the non-statutory deadline for the 
completion of construction of a licensed project.


     h.r. 1217: extending deadline to complete project construction


    The project is question is the 7.5-megawatt Youngs Creek 
Project (FERC No. 10359), to be located in Snohomish County, 
Washington. The project was licensed in 1992, and construction 
was timely commenced, but most of the construction remains to 
be done. The Commission has extended the original deadline for 
completion of construction to May 1998. H.R. 1217 would require 
the Commission, upon the request of the licensee, to extend the 
completion deadline to May 2004.
    We have no specific objection to this bill. Attached to my 
testimony are detailed comments about the bill and the project 
it concerns.

               Appendix to Statement of Kristina Nygaard


                        h.r. 1217 (mr. metcalf)


    H.R. 1217 would require the Commission, upon the request of 
the licensee for Project No. 10359, to extend for two years the 
current Commission deadline for completion of project 
construction.
Project No. 10359
    On May 5, 1992, the Commission issued a license to 
Snoqualmie River Hydro to construct, operate, and maintain the 
7.5-megawatt Youngs Creek Project No. 10359, to be located in 
Snohomish County, Washington. The licensee timely commenced 
project construction. The original deadline for completion of 
project construction, May 4, 1996, was extended to May 4, 1998. 
To date, the only construction that has taken place is 
completion of an access road and the clearing of a right-of-way 
for the penstock.

                        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 H.R. 1217, as ordered 
reported.