[Congressional Record (Bound Edition), Volume 145 (1999), Part 6] [Senate] [Pages 8320-8321] [From the U.S. Government Publishing Office, www.gpo.gov]EXTENDING DEADLINE UNDER FEDERAL POWER ACT FOR MT. HOPE WATERPOWER PROJECT Mr. BARTON of Texas. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 459) to extend the deadline under the Federal Power Act for FERC Project No. 9401, the Mt. Hope Waterpower Project. The Clerk read as follows: H.R. 459 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. EXTENSION OF TIME FOR FERC PROJECT. Notwithstanding the time limitations specified in section 13 of the Federal Power Act (16 U.S.C. 806), the Federal Energy Regulatory Commission, upon the request of the licensee for FERC Project No. 9401 (and after reasonable notice), is authorized, in accordance with the good faith, due diligence, and public interest requirements of such section 13 and the Commission's procedures under such section, to extend the time required for commencement of construction of such project until August 3, 2002. The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Texas (Mr. Barton) and the gentleman from Texas (Mr. Hall) each will control 20 minutes. The Chair recognizes the gentleman from Texas (Mr. Barton). General Leave Mr. BARTON of Texas. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and to insert extraneous material on the bill, H.R. 459. The SPEAKER pro tempore. Is there objection to the request of the gentleman from Texas? There was no objection. Mr. BARTON of Texas. Mr. Speaker, I yield myself 5 minutes. Mr. Speaker, H.R. 459 extends the construction period for a hydroelectric project in the State of New Jersey. Under section 13 of the Federal Power Act, project construction must begin within 4 years of issuance of the license. If construction is not begun by that time, the Federal Energy Regulatory Commission cannot extend the deadline and must terminate the license. H.R. 459 grants the project developer until August 3, 2002, to commence construction if it pursues the commencement of construction in good faith and with due diligence. These types of bills have not been controversial in the past. The bill does not change the license requirement in any way. It does not change environmental standards but merely extends the construction deadline. There is a need to act, Mr. Speaker, since the construction deadline for the Mt. Hope Pumped Storage Project expires in August of this year. If Congress does not act, the Federal Energy Regulatory Commission will terminate the license, the project sponsor will lose $28 million that they have already invested in the project, and the local community will lose the prospect of significant job creation and added revenues. Construction of the Mt. Hope project will create 1,300 jobs during construction and generate $254 million for the local economy. If the Congress does not act, the local community will lose these jobs and these revenues. These extension bills have not proved controversial in the past. H.R. 459 was approved by the Subcommittee on Energy and Power of the Committee on Commerce by unanimous voice vote. The bill was introduced jointly by the gentleman from New Jersey (Mr. Frelinghuysen) and the gentleman from New Jersey (Mr. Pallone). I support H.R. 459, Mr. Speaker. Mr. Speaker, I reserve the balance of my time. Mr. HALL of Texas. Mr. Speaker, I yield myself such time as I may consume. I will be brief, Mr. Speaker. I thank the chairman of the committee; and I want to congratulate my colleague, the gentleman from New Jersey (Mr. Frelinghuysen), for his very hard and successful bipartisan work on this bill. He has worked closely with the gentleman from New Jersey (Mr. Frank Pallone), who is an active member of our subcommittee, as well as the original cosponsor of this legislation. These two men together have done such an excellent job of building bipartisan support that, as the gentleman from Texas (Mr. Barton) has pointed out, it was reported out unanimously by both the Subcommittee on Energy and Power and the full Committee on Commerce. I know of no objection to this project; and I am, therefore, pleased to add our support to the legislation that would authorize FERC to extend the license for the Mt. Hope hydroelectric project for an additional 2 years. Mr. Speaker, I have no further requests for time; and I yield back the balance of my time. Mr. BARTON of Texas. Mr. Speaker, I yield such time as he may consume to the gentleman from New Jersey (Mr. Frelinghuysen), one of the original cosponsors whose district the project is located in. Mr. FRELINGHUYSEN. Mr. Speaker, I thank the gentleman for yielding me this time; and I rise in strong support of H.R. 459, legislation I introduced earlier this year to extend the FERC license for the Mt. Hope hydroelectric project by a period of 3 years. First, let me thank the gentleman from Texas (Mr. Barton), the chairman of the Subcommittee on Energy and Power, and the gentleman from Virginia (Mr. Bliley), chairman of the full Committee on Commerce, as well as the ranking member of the subcommittee, the gentleman from Texas (Mr. Hall), and my colleague, the gentleman from New Jersey (Mr. Frank Pallone), for moving so expeditiously on this bill. Mt. Hope received its original FERC license in August of 1992. The license has been extended for 2 years by FERC and once by Congress in 1995. H.R. 459 would simply ensure that there is additional time for Mt. Hope to secure the energy supply contracts to begin the construction of the proposed facility. This project is an advanced pumped-storage hydroelectric plant located in my district, Morris County, New Jersey. Far from a conventional hydro plant, this facility will be a closed cycle system in which water will be continuously circulated between two man-made reservoirs. The project has the strong support of local government officials and organizations where the project will be built, namely the New Jersey Business and Industry Association and the Sierra Club of New Jersey. This $2 billion project will be financed entirely by the private sector with no taxpayers' dollars used for its construction. As the chairman has mentioned, the project will bring approximately 1,300 jobs to New Jersey and boost our Nation's economy by adding approximately $6 billion to the gross national product during construction. In a nutshell, this project can serve as our region's, northern New Jersey, New York and that area, as an energy insurance policy by enhancing the security of the electrical supply system for our region. Mr. Speaker, the project has many environmental, energy and economic benefits to the State of New Jersey and the mid-Atlantic region. The project has strong support of local and State officials; and it will help us meet, most importantly, the goals of the Clean Air Act. I urge my colleagues to support the passage of H.R. 459 so we can begin to realize these benefits. Mr. PALLONE. Mr. Speaker, I am pleased to speak today in support of H.R. 459, to extend the deadline for the Mt. Hope hydropower project. The Federal Power Act allows a licensee two years to begin construction of a hydroelectric project once a license is issued. The Federal Energy Regulatory Commission (FERC) may extend that deadline, but it may only do so once and only for two years. If project construction has not commenced by this deadline, the commission is required to terminate the license. [[Page 8321]] However, there are many obstacles that often make it difficult for a project to commence construction during either the initial license time frame or the extension period. Perhaps the most frequent reason for delay is the lack of a power purchase agreement, for without such an agreement, it is unlikely that a project could get financed. This is the case with the Mt. Hope hydropower project to be located in Rockaway Township, Morris County, in my home state of New Jersey. Because of the limitations set in the Federal Power Act, the House has had a long, bipartisan tradition of moving non-controversial license extensions. I am pleased that Representative Frelinghuysen and I could introduce this bill in a bi-partisan manner. The Commerce Committee unanimously passed this bill. In addition, the chairman of FERC wrote a letter to the House Commerce Energy and Power Subcommittee just a few months ago indicating his approval for extending the deadline for this project. Mr. Speaker, I know of no objection to this bill, and I urge my colleagues to support the legislation. Mr. BARTON of Texas. Mr. Speaker, I have no further requests for time; and I yield back the balance of my time. The SPEAKER pro tempore. The question is on the motion offered by the gentleman from Texas (Mr. Barton) that the House suspend the rules and pass the bill, H.R. 459. The question was taken; and (two-thirds having voted in favor thereof) the rules were suspended and the bill was passed. A motion to reconsider was laid on the table. ____________________