[House Report 108-6]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                      108-6

======================================================================
 
 TO REINSTATE AND EXTEND THE DEADLINE FOR COMMENCEMENT OF CONSTRUCTION 
          OF A HYDROELECTRIC PROJECT IN THE STATE OF ILLINOIS

                                _______
                                

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. 397]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 397) to reinstate and extend the deadline for 
commencement of construction of a hydroelectric project in the 
State of Illinois, 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. 397 is to reinstate an expired license 
and extend the deadline for commencement of construction of a 
hydroelectric project in the State of Illinois licensed by the 
Federal Energy Regulatory Commission (FERC).

                  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 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 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. 397 would reinstate an expired license for a 4 
megawatt hydroelectric project (Project No. 11214) at the 
existing U.S. Army Corp of Engineers' Carlyle Dam on the 
Kaskaskia River near the City of Carlyle, Clinton County, 
Illinois. The original license, issued in June 1997 to 
Southwestern Electric Cooperative, Inc., was surrendered in May 
2000. Once reinstated, Southwestern has agreed to transfer the 
license, with FERC, to the City of Carlyle to proceed with 
further studies, designs and development of the project. FERC 
is not aware of any other party that is interested in 
developing this project site.
    H.R. 397 extends the deadline for commencement of 
construction of this project for up to six years. Not counting 
the years in which the license was surrendered, this 
potentially amounts to nine years for the licensee to commence 
construction. The legislation provides for up to three 
consecutive two-year extensions, instead of a single six-year 
extension, to assure that the licensee must continue to meet 
the section 13 requirement to prosecute construction ``in good 
faith and with due diligence'' before obtaining each two-year 
extension. If FERC determines the licensee is not prosecuting 
construction in good faith and with due diligence, the 
Committee expects the agency will refuse to grant a request for 
an additional two year extension, terminate the license, and 
make the site available for other uses.

                                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. 
397 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. 397 reported. A motion by Mr. Tauzin to order H.R. 397 
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 authorize the Federal 
Energy Regulatory Commission (FERC) to reinstate an expired 
license to construct, operate and maintain a hydroelectric 
power project in the State of Illinois and to extend the 
deadline to commence construction of such project for up to 
three consecutive two-year periods.

   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. 
397, a bill to reinstate and extend the deadline for 
commencement of construction of a hydroelectric project in the 
State of Illinois, 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, 2003.
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. 397, a bill to 
reinstate and extend the deadline for commencement of 
construction of a hydroelectric project in the state of 
Illinois.
    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. 397--A bill to reinstate and extend the deadline for commencement 
        of construction of a hydroelectric project in the state of 
        Illinois

    CBO estimates that implementing H.R. 397 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 impose no costs on 
state, local, or tribal governments.
    H.R. 397 would authorize the Federal Energy Regulatory 
Commission (FERC) to reinstate the license and extend the 
deadline for construction of a hydroelectric project (number 
11214) in Carlyle, Illinois. These provisions could have a 
minor impact on FERC's workload. Because FERC recovers 100 
percent of its costs through user fees, any change is its 
administrative costs would be offset by an equal change in the 
fees that the commission charges. Hence, the legislation's 
provisions would have no net budgetary impact.
    Because FERC's administrative costs are limited in annual 
appropriations, the bill would not affect direct spending or 
revenues.
    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. Extension of time for Federal Energy Regulatory Commission 
        Project

    This section authorizes the Federal Energy Regulatory 
Commission (FERC), upon the request of the licensee for Project 
No. 11214, 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 (1) 
reinstate the license for construction of the project as of the 
effective date of surrender, and (2) extend the deadline to 
commence construction of such project for up to three 
additional two-year periods.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation does not amend any existing Federal 
statute.

                                
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