39–010 

Calendar No. 42 

109TH CONGRESS REPORT " ! SENATE 1st Session 109–29 

EXTENSION OF TIME FOR FEDERAL ENERGY 

REGULATORY COMMISSION PROJECT 

MARCH 10, 2005.—Ordered to be printed 

Mr. DOMENICI, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 176] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 176) to extend the deadline for commencement 

of construction of a hydroelectric project in the State of Alaska, 

having considered the same, reports favorably thereon without 

amendment and recommends that the bill do pass. 

PURPOSE OF THE MEASURE

The purpose of S. 176 is to extend the deadline for commencement of construction of a hydroelectric project in the State of 

Alaska. 

BACKGROUND AND NEED

Section 13 of the Federal Power Act requires that the construction of a licensed project commence within two years from the date 

the license is issued. The Federal Energy Regulatory Commission 

(‘‘FERC’’ or ‘‘Commission’’) is authorized under the Federal Power 

Act to extend this deadline once, for a maximum of two additional 

years, upon a finding that such extension is ‘‘not incompatible with 

the public interest.’’ Consequently, a license is subject to termination if a licensee fails to begin construction within four years 

after the date the license is issued unless legislation authorizing an 

additional extension is enacted. S. 176 authorizes FERC to extend 

the construction deadline for Project No. 11480. 

On October 24, 2000, the Commission issued a license to the 

Haida Corporation to construct, operate, and maintain the 5-megawatt Reynolds Creek Project No. 11480 on Prince of Wales Island, 

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in southeast Alaska. The license’s original deadline for construction 

commencement was October 23, 2002. Because the project lacked 

a power purchase contract, FERC granted the licensee’s request to 

extend the deadline to October 23, 2004, four years after the license was issued. Construction of Project No. 11480 entails building a 20-foot-long, 6-foot-high diversion dam, a 3,200-foot-long 

penstock, a powerhouse with two turbine-generator units, and a 

transmission line. 

LEGISLATIVE HISTORY

S. 176 was introduced by Senator Murkowski on January 26, 

2005. S. 176 is identical to S. 2243 as passed by the Senate during 

the 108th Congress. S. 2243 was introduced by Senator Murkowski 

on March 26, 2004, and referred to the Committee on Energy and 

Natural Resources. A hearing on S. 2243 was conducted by the 

Water and Power Subcommittee on May 19, 2004. S. Hrg. 108–618. 

The Energy and Natural Resources Committee, on June 16, 2004, 

by unanimous vote of a quorum present ordered S. 2243 favorably 

reported. S. Rept. 108–286. S. 2243 was passed by the Senate by 

unanimous consent on September 15, 2004. At a business meeting 

on February 9, 2005, the Committee on Energy and Natural Resources ordered S. 176 favorably reported. 

COMMITTEE RECOMMENDATION

The Senate Committee on Energy and Natural Resources, in an 

open business session on February 9, 2005, by unanimous voice 

vote of a quorum present, recommends that the Senate pass S. 176. 

SECTION-BY-SECTION ANALYSIS

Section 1 authorizes FERC, at the request of the licensee, to extend the deadline for commencing construction of hydroelectric 

project No. 11480. The time period may be extended for three consecutive two-year periods. The extension is to take effect on the 

date of the expiration of the extension originally issued by the 

Commission under section 13 of the Federal Power Act. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of costs of this measure has been provided 

by the Congressional Budget Office. 

FEBRUARY 14, 2005. 

Hon. PETE V. DOMENICI, 

Chairman, Committee on Energy and Natural Resources, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 176, a bill to extend the 

deadline for commencement of construction of a hydroelectric 

project in the state of Alaska. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Lisa Cash Driskill. 

Sincerely, 

DOUGLAS HOLTZ-EAKIN. 

Enclosure. 

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S. 176—A bill to extend the deadline for commencement of construction of a hydroelectric project in the state of Alaska 

CBO estimates that implementing S. 176 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. 

If requested by the licensee, S. 176 would authorize the Federal 

Energy Regulatory Commission (FERC) to extend the deadline for 

construction of a hydroelectric project (number 11480) in Alaska by 

up to six years. This bill would have a minor impact on FERC’s 

workload. Because FERC recovers 100 percent of its 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 

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 Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

S. 176. The bill is not a regulatory measure in the sense of imposing Government established standards or significant economic responsibilities on private individuals and businesses. 

No personal information would be collected in administering the 

program. Therefore, there would be no impact on personal privacy. 

Little, if any, additional paperwork would result from the enactment of S. 176. 

EXECUTIVE COMMUNICATIONS

The testimony provided by the Commission at the Subcommittee 

hearing on S. 2243, an identical bill to S. 176 in the 108th Congress, follows: 

TESTIMONY SUBMITTED BY CHAIRMAN PAT WOOD III, 

FEDERAL ENERGY REGULATORY COMMISSION

Madam Chairman and Members of the Subcommittee: 

I appreciate the opportunity to comment on S. 2243, a 

bill to extend the deadline for commencement of construction of a hydroelectric project in the State of Alaska. 

Section 13 of the Federal Power Act requires that construction of a licensed project be commenced within two 

years of issuance of the license. Section 13 authorizes the 

Federal Energy Regulatory Commission to extend this 

deadline once, for a maximum additional two years. If 

project construction has not commenced by this deadline, 

the Commission is required to terminate the license. Section 13 also authorizes the Commission to extend the deadline for completion of construction when not incompatible 

with the public interest. 

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THE PROJECT

On October 24, 2000, the Commission issued a license to 

Haida Corporation to construct, operate, and maintain the 

5-megawatt Reynolds Creek Project No. 11480, on Prince 

of Wales Island, in southeast Alaska. The original deadline 

in the license for the commencement of construction, October 23, 2002, was, at the licensee’s request, extended by 

the Commission to October 23, 2004, four years after license issuance. The request cited the lack of a power purchase contract. 

Construction of Project No. 11480 entails building a 20- 

foot-long, 6-foot-high diversion dam, a 3,200-foot-long 

penstock, a powerhouse with two turbine-generator units, 

and a transmission line. 

THE LEGISLATION

S. 2243 would authorize the Commission, at the request 

of the project licensee, and after reasonable notice, in accordance with the good faith, due diligence, and public interest requirements of section 13 and the Commission’s 

procedures under that section, to extend the time period 

during which the licensee is required to commence the construction of the project for three consecutive two-year periods beyond the date that is four years after the date of 

issuance of the license. 

In cases where project-specific extensions of construction 

deadlines are authorized by the Congress, it has been the 

position of prior Commission chairmen that such extensions should not go beyond ten years from the date the 

project was licensed. I have no reason to depart from this 

extension policy. 

S. 2243 would permit the licensee for Project No. 11480 

to extend the deadline for commencement of construction 

for three consecutive 2-year periods beyond the date that 

is four years after the date of issuance of the license. Accordingly, construction could commence no later than ten 

years from the date the license was issued. This time 

frame is consistent with the Commission’s policy, and I 

have no objection to the bill. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee notes that no changes in existing law are made by the bill S. 176 as ordered reported. 

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