SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Power Act Amendments of 
1996''.

SEC. 2. LIMITED EXEMPTION TO HYDROELECTRIC LICENSING PROVISIONS FOR 
              TRANSMISSION FACILITIES ASSOCIATED WITH THE EL VADO 
              HYDROELECTRIC PROJECT.

    (a) Exemption.--Part I of the Federal Power Act, and the 
jurisdiction of the Federal Energy Regulatory Commission under such 
part I, shall not apply to the transmission line facilities associated 
with the El Vado Hydroelectric Project (FERC Project No. 5226-002) 
which are described in subsection (b).
    (b) Facilities Covered by Exemption.--The facilities to which the 
exemption under subsection (a) applies are those transmission 
facilities located near the Rio Chama, a tributary of the Rio Grande, 
in Rio Arriba County, New Mexico, referred to as the El Vado 
transmission line, a three phase 12-mile long 69 kV power line 
installed within a 50-foot wide right-of-way in Rio Arriba County, New 
Mexico, originating at the El Vado Project's switchyard and connecting 
to the Spills 69 kV Switching Station operated by the Northern Arriba 
Electric Cooperative, Inc.

SEC. 3. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC PROJECTS.

    The Federal Power Act, as amended, (16 U.S.C. 1791a et seq.) is 
further amended by adding the following at the end of section 23:
    ``(c) In the case of any project works in the State of Alaska--
            ``(1) that are not part of a project licensed under this 
        Act prior to the date of enactment of this subsection;
            ``(2) for which a license application has not been accepted 
        for filing by the Commission prior to the date of enactment of 
        this subsection (unless such application is withdrawn at the 
        election of the applicant);
            ``(3) having a power production capacity of 5,000 kilowatts 
        or less;
            ``(4) located entirely within the boundaries of the State 
        of Alaska; and
            ``(5) not located in whole or in part on any Indian 
        reservation, unit of the National Park System, component of the 
        Wild and Scenic Rivers System or segment of a river designated 
        for study for potential addition to such system,
the State of Alaska shall have the exclusive authority to authorize 
such project works under State law, in lieu of licensing by the 
Commission under the otherwise applicable provisions of this part, 
effective upon the date on which the Governor of the State of Alaska 
notifies the Secretary of Energy that the State has in place a process 
for regulating such projects which gives appropriate consideration to 
the improvement or development of the State's waterways for the use or 
benefit of intrastate, interstate, or foreign commerce, for the 
improvement and use of waterpower development, for the adequate 
protection, mitigation of damage to, and enhancement of fish and 
wildlife (including related spawning grounds), and for other beneficial 
public uses, including irrigation, flood control, water supply, 
recreational and other purposes, and Indian rights, if applicable.
    ``(d) In the case of a project that would be subject to 
authorization by the State under subsection (c) but for the fact that 
the project has been licensed by the Commission prior to the enactment 
of subsection (c), the licensee of such project may in its discretion 
elect to make the project subject to the authorizing authority of the 
State.
    ``(e) With respect to projects located in whole or in part on 
Federal lands, State authorizations for project works pursuant to 
subsection (c) of this section shall be subject to the approval of the 
Secretary having jurisdiction with respect to such lands and subject to 
such terms and conditions as the Secretary may prescribe.
    ``(f) Nothing in subsection (c) shall preempt the application of 
Federal environment, natural, or cultural resources protection laws 
according to their terms.''.

SEC. 4. FERC VOLUNTARY LICENSING OF HYDROELECTRIC PROJECTS ON FRESH 
              WATERS IN THE STATE OF HAWAII.

    Section 4(e) of the Federal Power Act is amended by striking 
``several States, or upon'' and inserting ``several States (except 
fresh waters in the State of Hawaii, unless a license would be required 
by section 23 of the Act), or upon''.

SEC. 5. EXTENSION OF COMMENCEMENT OF CONSTRUCTION DEADLINE FOR CERTAIN 
              HYDROELECTRIC PROJECTS LOCATED IN ILLINOIS.

    (a) Project Number 3943.--
            (1) Notwithstanding the time limitations of section 13 of 
        the Federal Power Act, the Federal Energy Regulatory 
        Commission, upon the request of the licensee for project number 
        3943 (and after reasonable notice), may extend the time 
        required for commencement of construction of such project for 
        not more than 3 consecutive 2-year periods, in accordance with 
        paragraphs (2) and (3).
            (2) An extension may be granted under paragraph (1) only in 
        accordance with--
                    (A) the good faith, due diligence, and public 
                interest requirements contained in section 13 of the 
                Federal Power Act; and
                    (B) the procedures of the Federal Energy Regulatory 
                Commission under such section.
            (3) This subsection shall take effect for project number 
        3943 upon the expiration of the extension of the period 
        required for commencement of construction of such project 
        issued by the Federal Energy Regulatory Commission under 
        section 13 of the Federal Power Act.
    (b) Project Number 3944.--
            (1) Notwithstanding the time limitations of section 13 of 
        the Federal Power Act, the Federal Energy Regulatory 
        Commission, upon the request of the licensee for FERC project 
        number 3944 (and after reasonable notice), may extend the time 
        required for commencement of construction of such project for 
        not more than 3 consecutive 2-year periods, in accordance with 
        paragraphs (2) and (3).
            (2) An extension may be granted under paragraph (1) only in 
        accordance with--
                    (A) the good faith, due diligence, and public 
                interest requirements contained in section 13 of the 
                Federal Power Act; and
                    (B) the procedures of the Commission under such 
                section.
            (3) this subsection shall take effect for project number 
        3944 upon the expiration of the extension of the period 
        required for commencement of construction of such project 
        issued by the Commission under section 13 of the Federal Power 
        Act.

SEC. 6. REFURBISHMENT AND CONTINUED OPERATION OF A HYDROELECTRIC 
              FACILITY IN MONTANA.

    Notwithstanding section 10(e)(1) of the Federal Power Act or any 
other law requiring payment to the United States of an annual or other 
charge for the use, occupancy, and enjoyment of land by the holder of a 
license issued by the Federal Energy Regulatory Commission under part I 
of the Federal Power Act, a political subdivision of the State of 
Montana that accepts the terms and conditions of a license for Federal 
Energy Regulatory Commission project number 1473 in Granite County and 
Deer Lodge County, Montana--
            (1) shall not be required to pay any such charge with 
        respect to the 5-year period following the date of acceptance; 
        and
            (2) after that 5-year period and for so long as the 
        political subdivision holds the license, shall be required to 
        pay such charges under section 10(e)(1) of the Federal Power 
        Act or any other law for the use, occupancy, and enjoyment of 
        the land covered by the license as the Federal Energy 
        Regulatory Commission or any other Federal agency may assess, 
        not to exceed a total of $20,000 for any year.

            Passed the Senate September 27, 1996.

            Attest:

                                             KELLY D. JOHNSTON,

                                                             Secretary.
Federal Power Act Amendments of 1996 - Exempts certain transmission line facilities associated with the El Vado Hydroelectric Project in New Mexico from Federal Energy Regulatory Commission (FERC) licensing requirements. 
Amends the Federal Power Act (FPA) to prescribe circumstances under which certain hydroelectric projects in Alaska having a power production capacity of 5,000 kilowatts or less shall be subject to the licensing authority of the State in lieu of FERC.  Grants the licensee of a currently FERC-licensed project the discretion to subject such project to the State's authorizing authority. 
Subjects any State authorization for a project located on Federal lands to the approval of the Secretary with jurisdiction over such lands, and to such terms and conditions as that Secretary may prescribe. 
Declares that nothing shall preempt the application of Federal environment, natural, or cultural resources protection laws according to their terms. 
Excludes from FERC voluntary licensing jurisdiction any hydroelectric projects upon fresh waters in Hawaii, unless a license would be required because:  (1) the waters are navigable; or (2) the projects affect interstate commerce, are located on Federal lands, or use water from a government dam. 
Directs FERC to extend for three consecutive two-year periods, upon request of a certain licensee, the time required to commence construction of specified hydroelectric projects in the State of Illinois. 
Suspends certain FPA use and occupancy fees for a five-year period with respect to a State of Montana political subdivision that accepts the terms of a FERC license for a specified hydroelectric project in Granite and Deer Lodge Counties.  Requires payment of such fees in an amount up to $20,000 for any year, after the five-year period, for as long as such subdivision holds such license.
Federal Power Act Amendments of 1996