[House Report 106-630]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-630
======================================================================
TO EXTEND THE DEADLINE FOR COMMENCEMENT OF THE CONSTRUCTION OF THE
ARROWROCK DAM HYDROELECTRIC PROJECT IN THE STATE OF IDAHO
_______
May 19, 2000.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Bliley, from the Committee on Commerce, submitted the following
R E P O R T
[To accompany S. 1236]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, to whom was referred the bill (S.
1236) to extend the deadline under the Federal Power Act for
commencement of the construction of the Arrowrock Dam
Hydroelectric Project in the State of Idaho, having considered
the same, reports favorably thereon with an amendment and
recommends that the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Committee Consideration.......................................... 3
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 4
Committee on Government Reform Oversight Findings................ 4
New Budget Authority, Entitlement Authority, and Tax Expenditures 4
Committee Cost Estimate.......................................... 4
Congressional Budget Office Estimate............................. 4
Federal Mandates Statement....................................... 5
Advisory Committee Statement..................................... 5
Constitutional Authority Statement............................... 5
Applicability to Legislative Branch.............................. 6
Section-by-Section Analysis of the Legislation................... 6
Changes in Existing Law Made by the Bill, as Reported............ 6
AMENDMENT
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. EXTENSION OF TIME FOR FEDERAL ENERGY REGULATORY COMMISSION
PROJECT.
(a) In General.--Notwithstanding the time period specified in section
13 of the Federal Power Act (16 U.S.C. 806) that would otherwise apply
to the Federal Energy Regulatory Commission project numbered 4656, the
Commission may, at the request of the licensee for the project and
after reasonable notice, in accordance with the good faith, due
diligence, and public interest requirements of that section and the
Commission's procedures under that section, extend the time period
during which the licensee is required to commence the construction of
the project for three consecutive two-year periods.
(b) Effective Date.--Subsection (a) shall take effect on the date of
the expiration of the extension issued by the Commission prior to the
date of enactment of this Act under section 13 of the Federal Power Act
(16 U.S.C. 806).
(c) Reinstatement of Expired License.--If the period required for
commencement of construction of the project described in subsection (a)
has expired prior to the date of enactment of this Act, the Commission
shall reinstate the license effective as of the date of its expiration
and the first extension authorized under subsection (a) shall take
effect on the date of such expiration.
PURPOSE AND SUMMARY
The purpose of S. 1236 is to extend the deadline for
commencement of construction of a hydroelectric project in the
State of Idaho.
BACKGROUND AND NEED FOR LEGISLATION
Section 13 of the Federal Power Act (16 U.S.C. Sec. 806)
establishes time limits for commencement of construction of a
hydroelectric project once the Federal Energy Regulatory
Commission (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 interests.'' 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.
Lack of a power sales contract can delay the commencement
of construction of licensed hydroelectric projects. Some
hydroelectric project developers cannot secure financing to
fund construction until they enter into power sales contracts.
Generally, a licensee cannot enter into a contract until it has
a license, and the construction deadline begins to toll once
the license is granted. The tremendous uncertainties in the
electric industry discourage power purchasers from entering
into the long-term power sales contracts that in the past often
financed hydroelectric project construction. There are other
obstacles to commencement of construction, such as protracted
proceedings on a licensee's application for a dredge and fill
permit from the Army Corps of Engineers under section 404 of
the Clean Water Act. FERC has testified that in such cases it
can issue orders staying the license until matters are
resolved, suggesting extension legislation is not needed in
order to address delays beyond the control of the licensee.
S. 1236 authorizes FERC to extend the deadline for the
commencement of construction of a 60 megawatt hydroelectric
project (Project No. 4656) in Elmore and Ada Counties, Idaho,
for up to three consecutive two-year periods. Since the project
was granted a legislative extension by Congress in the Energy
Policy Act of 1992, S. 1236 would extend the deadline to up to
sixteen years after the date the original license was issued.
The current deadline for commencement of construction of this
project expired on March 26, 1999, and FERC has indicated its
intent to terminate the license. S. 1236 does not ease the
requirements of a hydroelectric license, but merely extends the
period for commencement of project construction. S. 1236
provides the licensee must meet the good faith, due diligence,
and public interest requirements of section 13 of the Federal
Power Act.
S. 1236 was amended by the Subcommittee on Energy and Power
to provide for up to three consecutive two-year extensions,
instead of the single six-year extension in the bill passed by
the Senate, in order to assure the licensee continues to meet
the section 13 requirements before obtaining each two-year
extension. If FERC determines the licensee is not prosecuting
construction in accordance with the good faith, due diligence,
and public interest requirements of section 13 the Committee
expects the agency to refuse to grant a request for an
additional two-year extension and terminate the license.
HEARINGS
The Subcommittee on Energy and Power held a hearing on S.
1236 on March 30, 2000. The Subcommittee received testimony
from: The Honorable Frank Murkowski, United States Senate; The
Honorable George Radanovich, U.S. House of Representatives; The
Honorable Peter DeFazio, U.S. House of Representatives; The
Honorable James J. Hoecker, Chairman, Federal Energy Regulatory
Commission; The Honorable John D. Leshy, Solicitor, U.S.
Department of the Interior; Mr. Allen Burns, Vice President of
Requirements Marketing, Bonneville Power Administration; Dr.
Andrew Rosenberg, Deputy Assistant Administrator for Fisheries,
National Oceanic and Atmospheric Administration, U.S.
Department of Commerce; Mr. Paul Brouha, Associate Deputy
Chief, Forest Service, U.S. Department of Agriculture; Mr.
Michael A. Murphy, President, National Hydropower Association;
Mr. Kevin Lynch, Director of Government Affairs, PacifiCorp;
Mr. Andrew Fahlund, Policy Director for Hydropower Programs,
American Rivers; Mr. Robert Grimm, President, Alaska Power &
Telephone; Mr. David E. Piper, Chief Executive Officer, Pacific
Northwest Generating Cooperative; Mr. Steve Waddington,
Northwest Power Manager, Reynolds Metals Company; and Ms. Lynne
Kennedy, Hydroelectric Specialist, Oregon Department of
Environmental Quality.
COMMITTEE CONSIDERATION
On April 12, 2000, the Subcommittee on Energy and Power met
in open markup session and approved S. 1236 for Full Committee
consideration, as amended, by a voice vote. The Full Committee
met in open markup session on May 17, 2000, and ordered S. 1236
reported to the House, without further amendment, by a voice
vote, a quorum being present.
COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House 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 S. 1236 reported. A motion by
Mr. Bliley to order S. 1236 reported to the House, as amended,
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 held a legislative
hearing on S. 1236 and made findings that are reflected in this
report.
COMMITTEE ON GOVERNMENT REFORM OVERSIGHT FINDINGS
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, no oversight findings have been
submitted to the Committee by the Committee on Government
Reform.
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 S.
1236, a bill to extend the deadline under the Federal Power Act
for commencement of construction of the Arrowrock Dam
Hydroelectric Project in the State of Idaho, 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, May 18, 2000.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed estimate for S. 1236, an act to extend
the deadline under the Federal Power Act for commencement of
the construction of the Arrowrock Dam Hydroelectric Project in
the state of Idaho.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Lisa Cash
Driskill.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
S. 1236--An act to extend the deadline under the Federal Power Act for
commencement of the construction of the Arrowrock Dam
Hydroelectric Project in the state of Idaho
CBO estimates that enacting S. 1236 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.
S. 1236 would extend the deadline for construction of a
hydroelectric project currently subject to licensing by the
Federal Energy Regulatory Commission (FERC) for six years. The
proposed extension is for FERC project number 4656. S. 1236
also would direct FERC to reinstate the license for the project
should it expire prior to enactment of this legislation. These
provisions 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 the commission charges. Hence, the
act's provisions would have no net budgetary impact.
Because FERC's administrative costs are limited in annual
appropriations, the act would not affect direct spending or
receipts. Therefore, pay-as-you-go procedures would not apply
to the act.
On September 22, 1999, CBO transmitted a cost estimate for
S. 1236, as ordered reported by the Senate Committee on Energy
and Natural Resources on September 27, 1999. The two versions
of the legislation are virtually identical and the estimated
costs are the same.
The CBO staff contact for this estimate is Lisa Cash
Driskill. 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. Extension of time for Federal Energy Regulatory Commission
project
Subsection (a) authorizes FERC, upon the request of the
licensee for Project No. 4656, and 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 extend the time required for commencement of
construction of such project for up to three consecutive two-
year periods. Subsection (b) provides that subsection (a) shall
take effect on the expiration of the period required for
commencement of construction of Project No. 4656, namely March
26, 1999. Subsection (c) directs FERC to reinstate the license
effective on the date of expiration of the current construction
deadline and extend the time required for commencement of
construction, in the event the license is terminated before
enactment of the legislation.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
S. 1236 does not amend any existing Federal statute.