[House Report 106-629]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-629

======================================================================



 
     TO EXTEND THE DEADLINE FOR COMMENCEMENT OF CONSTRUCTION OF A 
             HYDROELECTRIC PROJECT IN THE STATE OF ALABAMA

                                _______
                                

  May 19, 2000.--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. 3852]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, to whom was referred the bill 
(H.R. 3852) to extend the deadline for commencement of 
construction of a hydroelectric project in the State of 
Alabama, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
Committee on Government Reform Oversight Findings................     3
New Budget Authority, Entitlement Authority, and Tax Expenditures     3
Committee Cost Estimate..........................................     4
Congressional Budget Office Estimate.............................     4
Federal Mandates Statement.......................................     5
Advisory Committee Statement.....................................     5
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. 3852 is to extend the deadline for 
commencement of construction of a hydroelectric project in the 
State of Alabama.

                  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. Some 
hydroelectric project developers cannot secure financing to 
fund construction until they enter into power sales contracts. 
Generally, a licensee cannot enter into a contract until it has 
a license, and the construction deadline begins to toll once 
the license is granted. The tremendous uncertainties in the 
electric industry discourage power purchasers from entering 
into the long-term power sales contracts that in the past often 
financed hydroelectric project construction. 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 
can issue 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. 3852 directs FERC to extend the deadline for the 
commencement of construction of a 24 megawatt hydroelectric 
project (Project No. 7115) in Houston County, Alabama, and 
Early County, Georgia, for up to three consecutive two-year 
periods. This extends the deadline to up to ten years after the 
date the license was issued. The current deadline for 
commencement of construction of this project expires on 
September 21, 2000. H.R. 3852 does not ease the requirements of 
a hydroelectric license, but merely extends the period for 
commencement of project construction. H.R. 3852 provides the 
licensee must meet the good faith, due diligence, and public 
interest requirements of section 13 of the Federal Power Act.

                                HEARINGS

    The Subcommittee on Energy and Power held a hearing on H.R. 
3852 on March 30, 2000. The Subcommittee received testimony 
from: The Honorable Frank Murkowski, United States Senate; The 
Honorable George Radanovich, U.S. House of Representatives; The 
Honorable Peter DeFazio, U.S. House of Representatives; The 
Honorable James J. Hoecker, Chairman, Federal Energy Regulatory 
Commission; The Honorable John D. Leshy, Solicitor, U.S. 
Department of the Interior; Mr. Allen Burns, Vice President of 
Requirements Marketing, Bonneville Power Administration; Dr. 
Andrew Rosenberg, Deputy Assistant Administrator for Fisheries, 
National Oceanic and Atmospheric Administration, U.S. 
Department of Commerce; Mr. Paul Brouha, Associate Deputy 
Chief, ForestService, U.S. Department of Agriculture; Mr. 
Michael A. Murphy, President, National Hydropower Association; Mr. 
Kevin Lynch, Director of Government Affairs, PacifiCorp; Mr. Andrew 
Fahlund, Policy Director for Hydropower Programs, American Rivers; Mr. 
Robert Grimm, President, Alaska Power & Telephone; Mr. David E. Piper, 
Chief Executive Officer, Pacific Northwest Generating Cooperative; Mr. 
Steve Waddington, Northwest Power Manager, Reynolds Metals Company; and 
Ms. Lynne Kennedy, Hydroelectric Specialist, Oregon Department of 
Environmental Quality.

                        COMMITTEE CONSIDERATION

    On April 12, 2000, the Subcommittee on Energy and Power met 
in open markup session and approved H.R. 3852 for Full 
Committee consideration, without amendment, by a voice vote. 
The Full Committee met in open markup session on May 17, 2000, 
and ordered H.R. 3852 reported to the House, without amendment, 
by a voice vote, a quorum being present.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House requires 
the Committee to list the record votes on the motion to report 
legislation and amendments thereto. There were no record votes 
taken in connection with ordering H.R. 3852 reported. A motion 
by Mr. Bliley to order H.R. 3852 reported to the House, without 
amendment, was agreed to by a voice vote.

                      COMMITTEE OVERSIGHT FINDINGS

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a legislative 
hearing on H.R. 3852 and made findings that are reflected in 
this report.

           COMMITTEE ON GOVERNMENT REFORM OVERSIGHT FINDINGS

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform.

   NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
3852, a bill to extend the deadline for commencement of 
construction of a hydroelectric project in the State of 
Alabama, 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 3(c)(3) of Rule XIII 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, May 18, 2000.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
U.S. House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3852, a bill to 
extend the deadline for commencement of the construction of a 
hydroelectric project in the state of Alabama.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Lisa Cash 
Driskill.
            Sincerely,
                                          Barry B. Anderson
                                     (For Dan L. Crippen, Dirctor).
    Enclosure.

H.R. 3852--A bill to extend the deadline for commencement of the 
        construction of a hydroelectric project in the state of Alabama

    CBO estimates that enacting H.R. 3852 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 and would not affect the budgets 
of state, local, or tribal governments.
    H.R. 3852 would extend the deadline for construction of a 
hydroelectric project currently subject to licensing by the 
Federal Energy Regulatory Commission (FERC) for six years. The 
proposed extension is for FERC project number 7115. H.R. 3852 
also would direct FERC to reinstate the license for the project 
should it expire prior to enactment of this bill. These 
provisions 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 H.R. 3852.
    The CBO staff contact for this estimate is Lisa Cash 
Driskill. This estimate was approved by Peter H. Fontaine, 
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 3(d)(1) of Rule XIII 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 FERC, upon the request of the 
licensee for Project No. 7115, 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 commencement of 
construction of such project for up to three consecutive two-
year periods. Subsection (b) provides that subsection (a) shall 
take effect on the expiration of the period required for 
commencement of construction of Project No. 7115, September 21, 
2000. Subsection (c) directs FERC to reinstate the license 
effective on the date of expiration of the current construction 
deadline and extend the time required for commencement of 
construction, in the event the license is terminated before 
enactment of the legislation.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    H.R. 3852 does not amend any existing Federal statute.

                                  

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