[Senate Report 106-97]
[From the U.S. Government Publishing Office]
Calendar No. 179
106th Congress Report
SENATE
1st Session 106-97
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MT. HOPE WATERPOWER PROJECT
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June 24, 1999.--Ordered to be printed
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Mr. Murkowski, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany H.R. 459]
The Committee on Energy and Natural Resources, to which was
referred the Act (H.R. 459) to extend the deadline under the
Federal Power Act for FERC Project No. 9401, the Mt. Hope
Waterpower Project, 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. 459 is to authorize the Federal Energy
Regulatory Commission (FERC) to extend the deadline for
commencement of construction of the Mt. Hope hydroelectric
project (Project No. 9401) until August 3, 2002.
background and need
Section 13 of the Federal Power Act requires a
hydroelectric licensee to commence the construction of its
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. Unless additional legislation
is enacted, if construction has not commenced by the end of the
time period, the license is terminated by the FERC.
On August 4, 1992, the FERC issued a hydroelectric license
to the Halecrest Company to construct and operate the 2,000
megawatt Mt. Hope Pumped Storage Project, located in Rockaway
Township, New Jersey. The deadline for the commencement of
project construction, originally August 3, 1994, was extended
by the FERC to August 3, 1996, because the licensee had not
obtained a power sales contract. The deadline was further
extended until August 3, 1999, under the terms of P.L. 104-247.
In the absence of this legislation, the license would be
terminated as of that date.
legislative history
H.R. 459 passed the House of Representatives on May 4, 1999
by voice vote. A hearing was held by the Subcommittee on Water
and Power on May 27, 1999.
committee recommendation and tabulation of votes
The Senate Committee on Energy and Natural Resources, in
open business session on June 16, 1999, 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, June 21, 1999.
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. 459, an act to
extend the deadline under the Federal Power Act applicable to
the construction of FERC Project Number 9401, the Mt. Hope
Waterpower Project.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Kim Cawley.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
H.R. 459--An act to extend the deadline under the Federal Power Act for
FERC Project Number 9401, the Mt. Hope Waterpower Project
CBO estimates that enacting this legislation would have no
net effect on the federal budget. It does not contain any
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act and would not impose any costs on
state, local, or tribal governments.
H.R. 459 would extend the deadline for construction of a
hydroelectric project currently subject to licensing by the
Federal Energy Regulatory Commission (FERC) until August 3,
2002. The proposed extension is for FERC project number 9401.
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 commission charges. Hence, the
act's provisions would have no net budgetary impact.
Because FERC's administrative costs are limited in annual
appropriations, enacting H.R. 459 would not affect direct
spending or receipts. Therefore, pay-as-you-go procedures would
not apply to the bill.
On April 26, 1999, CBO prepared a cost estimate for H.R.
459, as ordered reported by the House Committee on Commerce on
April 21, 1999. The two versions of H.R. 459 are identical, as
are the two estimates.
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 views relating to this measure are set forth
below:
statement of james j. hoecker, chairman, federal energy regulatory
commission
Mr. Chairman and Members of the Subcommittee: I appreciate
the opportunity to comment on H.R. 459, an act to extend the
construction deadlines applicable to a hydroelectric project
licensed by the Federal Energy Regulatory Commission.
Section 13 of the Federal Power Act requires that
construction of a licensed project be commenced within two
years of issuance of the license. Section 13 authorizes the
Commission to extend this deadline once, for a maximum
additional two years. If project construction has not commenced
by this deadline, the Commission is required to terminate the
license.
On August 4, 1992, the Commission issued a license to the
Halecrest Company to construct and operate the 2,000-megawatt
Mt. Hope Pumped Storage Project No. 9401, to be located in
Rockaway Township, Morris County, New Jersey. The deadline for
the commencement of project construction, originally August 3,
1994, was extended to August 3, 1996, because the licensee had
not obtained a power sales contract. The deadline was further
extended until August 3, 1999, under the terms of P.L. 104-247.
The Commission staff knows of no other interest in the
site. Construction of the project entails excavation of a
surface level 57-acre upper reservoir; utilization, after
extensive modification, of an existing underground cavern
associated with the Mount Hope Mine as its lower reservoir,
both with a 5,500-acre-foot capacity; installation of a 2,800-
foot-long shaft between the reservoirs bifurcating into five
penstocks; and construction of an underground powerhouse, two
parallel 10.6-mile-long transmission lines, and related project
facilities.
H.R. 459 would authorize the Commission, upon the request
of the licensee and in accordance with the good faith, due
diligence, and public interest requirements of Section 13, to
extend the deadline for commencement of construction until
August 3, 2002.
The Commission has not in the past objected to other bills
granting a particular licensee up to ten years from the
issuance date of the license to commence project construction.
The deadline in H.R. 459 does not exceed ten years. I therefore
do not object to the bill's enactment.
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. 459, as ordered
reported.