[House Report 108-4]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                      108-4

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



 
    TO EXTEND CERTAIN HYDRO-ELECTRIC LICENSES IN THE STATE OF ALASKA

                                _______
                                

February 4, 2003.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Tauzin, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 337]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 337) to extend certain hydro-electric licenses 
in the State of Alaska, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Committee Consideration..........................................     2
Committee Votes..................................................     2
Committee Oversight Findings.....................................     3
Statement of General Performance Goals and Objectives............     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...................     4
Changes in Existing Law Made by the Bill, as Reported............     5

                          PURPOSE AND SUMMARY

    The purpose of H.R. 337 is to direct the Federal Energy 
Regulatory Commission (FERC), upon the request of the licensee, 
to issue an order staying the license of a hydroelectric 
project in the State of Alaska (Project No. 11393) pending the 
construction of an associated transmission line. The 
legislation also directs FERC to extend the deadline to 
commence construction of the project for one additional two-
year period.

                  BACKGROUND AND NEED FOR LEGISLATION

    Section 13 of the Federal Power Act (16 U.S.C. 806 (2002)) 
establishes time limits for commencement of construction of a 
hydroelectric project once FERC has issued a license. The 
licensee must begin construction not more than two years from 
the date the license in 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 interest.'' 
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.
    H.R. 337 would direct FERC to temporarily stay the license 
for a project in the State of Alaska pending completion of an 
associated transmission line. Once the transmission line is 
completed, the bill directs FERC to lift the stay and extend 
the deadline to commence construction for one additional two-
year period.
    On January 22, 1998, FERC issued a license to the City of 
Saxman, Alaska to construct, operate and maintain the 96 
megawatt Mahoney Lake Hydroelectric Project No. 11393. The 
project is located on Upper Mahoney Lake and Upper Mahoney 
Creek near Ketchikan in southeast Alaska. The project is not 
projected to be economic until the completion of the associated 
Swan-Tyee transmission line. The Cape Fox Corporation, which 
oversees the construction, operation, and maintenance of the 
project, stands to lose a substantial investment in the project 
if the license expires prior to completion of the transmission 
line.

                                HEARINGS

    The Committee on Energy and Commerce has not held hearings 
on the legislation.

                        COMMITTEE CONSIDERATION

    On Wednesday, January 29, 2003, the Full Committee on 
Energy and Commerce met in open markup session and ordered H.R. 
337 favorably 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 of 
Representatives 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. 337 reported. A motion by Mr. Tauzin to order H.R. 337 
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 has not held oversight 
or legislative hearings on this legislation.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    The goal of this legislation is to require the Federal 
Energy Regulatory Commission (FERC) to issue a temporary stay 
of a license to for a hydroelectric power project in the State 
of Alaska pending completion of an associated transmission 
line, to reinstate the license once the transmission line is 
completed, and to authorize one additional two-year extension 
of the deadline to commence construction of such project.

   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. 
337, a bill to extend certain hydro-electric licenses in the 
State of Alaska, 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, February 3, 2002.
Hon. W.J. ``Billy'' Tauzin,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 337, a bill to 
extend certain hydroelectric licenses in the stale of Alaska.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Lisa Cash 
Driskill.
            Sincerely,
                                          William J. Gainer
                          (For Barry B. Anderson, Acting Director).
    Enclosure.

H.R. 337--A bill to extend certain hydroelectric licenses in the state 
        of Alaska

    CBO estimates that implementing H.R. 337 would have no net 
effect on the federal budget. The bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act and would impose no costs on 
state, local, or tribal governments.
    H.R. 337 would direct the Federal Energy Regulatory 
Commission (FERC) to stay the license for hydroelectric project 
number 11393, if requested by the licensee, for up to six years 
after construction of the Swan-Tyee transmission line is 
completed. When the line is completed, if requested by the 
licensee, FERC would be required to lift the stay and extend 
the deadline for beginning construction of the project for up 
to two years. This project is near Ketchican, Alaska.
    This bill could 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 set in annual 
appropriations, enactment of this legislation would not affect 
direct spending or receipts.
    The CBO staff contact for this estimate is Lisa Cash 
Driskill. This estimate was approved by Robert A. Sunshine, 
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. Stay and reinstatement of FERC license No. 11393

    This section directs the Federal Energy Regulatory 
Commission (FERC) to issue a stay of the license for Project 
No. 11393. Not later than six years following notice of 
completion of the Swan-Tyee transmission line, this section 
also requires FERC to reinstate the license upon the request of 
the licensee. Finally, this section authorizes FERC, upon the 
request of the licensee for Project No. 11393 and in accordance 
with the good faith, due diligence, and public interest 
requirements of section 13 of the Federal Power Act, to extend 
the deadline to commence construction of such project for up to 
one additional two-year period.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation does not amend any existing Federal 
statute.

                                
