[House Report 108-721]
[From the U.S. Government Publishing Office]



108th Congress                                            Rept. 108-721
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

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



 
                  TAPOCO PROJECT LICENSING ACT OF 2004

                                _______
                                

                October 4, 2004.--Ordered to be printed

                                _______
                                

   Mr. Barton  of Texas, from the Committee on Energy and Commerce, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 4667]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 4667) to authorize and facilitate hydroelectric 
power licensing of the Tapoco Project, and for other purposes, 
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...................     5
Changes in Existing Law Made by the Bill, as Reported............     5

                          PURPOSE AND SUMMARY

    The purpose of the bill is to facilitate the relicensing of 
the Tapoco Project by the Federal Energy Regulatory Commission 
(FERC) and effect a land swap. The bill provides that Alcoa 
Power Generating Inc. (APGI) will convey approximately 186 
acres of land to the National Park Service and that APGI will 
acquire about 110 acres of parkland now inundated by the Tapoco 
Project. The National Park Service will retain a conservation 
easement on the land conveyed to APGI and the boundaries of the 
National Park will not be adjusted to reflect the land transfer 
to APGI. Upon completion of this land swap, FERC will be 
authorized to relicense the Tapoco Project, notwithstanding the 
fact that a portion of the Project remains within the 
boundaries of the National Park. The bill also provides for a 
process whereby Alcoa can convey additional land to the 
National Park Service or the Forest Service at a later time.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Tapoco Hydroelectric Project is an approximately 360 MW 
hydroelectric project located on the Little Tennessee and 
Cheoah rivers in Tennessee and North Carolina. It is operated 
by APGI and provides power for Alcoa facilities in the region. 
The FERC project license issued in 1955 expires on February 28, 
2005. APGI began discussions with interested stakeholders 
related to relicensing the Project in 1999, and filed with FERC 
to relicense the Project in early 2003.
    The reservoir for part of the Project floods approximately 
110 acres of the Great Smoky Mountains National Park. Because a 
portion of the Project reservoir extends onto National Park 
land, FERC does not have statutory authority to issue a new 
license for the Project. APGI entered into a comprehensive 
settlement agreement with the U.S. Department of the Interior, 
the U.S. Department of Agriculture, resource agencies of the 
States of Tennessee and North Carolina, local governments, and 
national, regional and local non-governmental organizations 
with respect to the relicensing. The bill provides that APGI 
will transfer approximately 186acres of land within the 
boundaries of the Great Smoky Mountains National Park to the National 
Park Service in exchange for the National Park Service transferring to 
APGI the approximately 110 acres of flooded land in the reservoir 
subject to conservation easements. Once the land swap is completed, the 
bill authorizes FERC to relicense the Project.
    H.R. 4667 is needed to implement the land swap between APGI 
and the National Park Service and authorize FERC to relicense 
the Project.

                                HEARINGS

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

                        COMMITTEE CONSIDERATION

    On Thursday, September 30, 2004, the Full Committee met in 
open markup session and ordered H.R. 4667 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. 4667 reported. A motion by Mr. Barton to order H.R. 4667 
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 the bill is to authorize a land swap and 
authorize FERC to relicense the Tapoco 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. 
4667, the Tapoco Project Licensing Act of 2004, 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, October 4, 2004.
Hon. Joe Barton,
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. 4667, the Tapoco 
Project Licensing Act of 2004.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                         Robert A. Sunshine
                                (For Douglas Holtz-Eakin, Director)
    Enclosure.

H.R. 4667--Tapoco Project Licensing Act of 2004

    CBO estimates that implementing H.R. 4667 would cost $6 
million over the 2005-2009 period, assuming appropriation of 
the necessary amounts. Enacting the bill would not affect 
direct spending or revenues. H.R. 4667 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act and would impose no significant 
costs on state, local, or tribal governments.
    H.R. 4667 would authorize the Secretary of the Interior to 
exchange 100 acres of land within the Great Smoky Mountains 
National Park in Tennessee for 186 acres of other land within 
the authorized boundary of that park owned by Alcoa Power 
Generating Inc. (APGI). APGI would use the land it receives for 
the Tapoco Hydroelectric Project. According to the National 
Park Service, the federal land to be conveyed currently 
generates no receipts and is not expected to do so over the 
next 10 years. Hence, we estimate that the proposed exchange 
would not affect offsetting receipts (a credit against direct 
spending). We estimate that the agency would spend about 
$30,000 in 2005 to complete the transaction, assuming the 
availability of appropriated funds.
    H.R. 4667 also would authorize the Secretaries of 
Agriculture and the Interior to acquire certain other land that 
is currently owned by APGI. Based on information from APGI and 
local tax assessors regarding the value of that land, CBO 
estimates that the federal government would spend $6 million 
over the 2006-2009 period to acquire that land, assuming 
appropriation of the necessary funds. We also estimate that any 
resulting increase in federal spending for land management 
would total less than $500,000 a year.
    On June 23, 2004, CBO transmitted a cost estimate for S. 
2319, the Tapoco Project Licensing Act of 2004, as ordered 
reported by the Senate Committee on Energy and Natural 
Resources on June 16, 2004. On September 17, 2004, CBO 
transmitted a cost estimate for H.R. 4667 as ordered reported 
by the House Committee on Resources on September 15, 2004. All 
three pieces of legislation are similar, and our cost estimates 
are the same.
    The CBO staff contact for this estimate is Megan Carroll. 
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. Short title

    Section 1 establishes the short title of the bill, the 
``Tapoco Project Licensing Act of 2004.''

Section 2. Definitions

    Section 2 defines terms that are specific to the bill.

Section 3. Land exchange

    This section authorizes the land swap whereby APGI will 
convey about 186 acres of land to the National Park Service, 
through the Secretary of the Interior, and the National Park 
Service will convey about 110 acres of land to APGI, retaining 
a conservation easement and a reversion on the land. The 
section also provides that the Secretary can adjust the 
National Park boundary to reflect the land transferred to the 
National Park, but not change the boundary to reflect the land 
transferred to APGI.

Section 4. Project licensing

    Section 4 authorizes FERC to relicense the Project once the 
land swap is completed, notwithstanding the fact that portions 
of the Project lie within the boundaries of the National Park.

Section 5. Land acquisition

    This section authorizes the Secretary of the Interior or 
the Secretary of Agriculture to acquire and administer 
additional lands transferred by APGI to a nongovernmental 
organization and administer those lands as part of a National 
Park or National Forest.

Section 6. Authorization of appropriations

    Section 6 authorizes such sums as are necessary to carry 
out the bill.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation does not amend any existing Federal 
statute.

                                  
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