[Senate Report 106-97]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 179
106th Congress                                                   Report
                                 SENATE
 1st Session                                                     106-97

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



 
                      MT. HOPE WATERPOWER PROJECT

                                _______
                                

                 June 24, 1999.--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. 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.

                                  
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