69–010 

Calendar No. 99 

115TH CONGRESS REPORT " ! SENATE 1st Session 115–80 

TO EXTEND THE DEADLINE FOR COMMENCEMENT OF 

CONSTRUCTION OF A HYDROELECTRIC PROJECT 

MAY 24, 2017.—Ordered to be printed 

Ms. MURKOWSKI, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 723] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 723) to extend the deadline for commencement 

of construction of a hydroelectric project, having considered the 

same, reports favorably thereon with amendments and recommends that the bill, as amended, do pass. 

The amendments are as follows: 

1. On page 1, line 9, strike ‘‘Commission’’ and insert ‘‘the Federal 

Energy Regulatory Commission (referred to in this section as the 

‘Commission’)’’. 

2. On page 2, line 12, strike ‘‘Federal Energy Regulatory’’. 

PURPOSE

The purpose of S. 723 is to extend the deadline for commencement of construction of the W. Kerr Scott hydroelectric project. 

BACKGROUND AND NEED

On July 17, 2012, the Federal Energy Regulatory Commission 

(Commission) granted the Wilkesboro Hydroelectric Company, 

LLC, a license for its proposed 4-megawatt W. Kerr Scott Hydroelectric Project (No. 12642) to be located at the existing, non-powered, U.S. Army Corps of Engineers’ (Corps) W. Kerr Scott Dam in 

the State of North Carolina. 

On July 24, 2013, the Commission approved the transfer of the 

license from Wilkesboro Hydroelectric Company to Wilkesboro HyVerDate Sep 11 2014 18:29 May 27, 2017 Jkt 069010 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\SR080.XXX SR080

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dropower, LLC. On May 7, 2014, the Commission granted 

Wilkesboro Hydropower a two-year extension, the maximum allowed under section 13 of the Federal Power Act (16 U.S.C. 806), 

to extend the deadline of the project commencement to July 17, 

2016. Given the extensive and ongoing review process undertaken 

by the Corps to ensure that the proposed development does not 

conflict with the authorized purposes of flood control and water 

supply, Wilkesboro Hydropower seeks an extension of the project 

commencement deadline. 

LEGISLATIVE HISTORY

Senators Burr and Tillis introduced S. 723 on March 27, 2017. 

In the 114th Congress, a similar measure, S. 2083, was introduced by Senators Burr and Tillis on September 28, 2015. The 

Committee on Energy and Natural Resources held a hearing on the 

bill on October 8, 2015. At its open business session on November 

19, 2015, the Committee favorably reported S. 2083 without 

amendment. 

The measure was also included in Amendment No. 3234, which 

the Senate agreed to on April 19, 2016, as an amendment to S. 

2012, the Energy Policy Modernization Act of 2016, which the Senate passed, as amended, on April 20, 2016. 

H.R. 3447, a companion measure, was introduced in the House 

of Representatives by Representative Foxx on September 8, 2015. 

H.R. 3447 was agreed to in the House of Representatives by a vote 

of 406–3 on March 15, 2016. 

The Committee on Energy and Natural Resources met in open 

business session on March 30, 2017, and ordered S. 723 favorably 

reported, as amended. 

COMMITTEE RECOMMENDATION

The Senate Committee on Energy and Natural Resources, in an 

open business session on March 30, 2017, by a majority voice vote 

of a quorum present, recommended that the Senate pass S. 723, if 

amended as described herein. 

COMMITTEE AMENDMENTS

During the consideration of S. 723 the committee adopted two 

technical amendments to clarify that the Commission referred to in 

the bill is the Federal Energy Regulatory Commission. 

SECTION-BY-SECTION ANALYSIS

Section 1 authorizes the Commission, at the request of the licensee for the project and after reasonable notice in accordance 

with Commission procedures, to extend the time period during 

which the licensee is required to commence project construction for 

up to six years. Section 1 also authorizes the Commission to reinstate the license if the license has expired prior to the date of enactment of this Act. If so reinstated, the reinstated license is to be 

effective as of the date of the expiration of the previous extension. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of the costs of this measure has been provided by the Congressional Budget Office: 


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CBO estimates that implementing S. 723 would have no net effect on the federal budget. The bill would authorize the Federal Energy Regulatory Commission (FERC) to reinstate the license and 

extend the deadline for beginning construction of a hydroelectric 

project (number 12642) involving the W. Kerr Scott Hydropower 

Project in North Carolina. The proposed extension could have a 

minor effect on FERC’s workload; however, because FERC recovers 

100 percent of its costs through user fees, any change in that agency’s costs (which are controlled through annual appropriation acts) 

would be offset by an equal change in fees that the commission 

charges, resulting in no net change in federal spending. 

Enacting S. 723 would not affect direct spending or revenues; 

therefore, pay-as-you-go procedures do not apply. CBO estimates 

that enacting S. 723 would not increase net direct spending or onbudget deficits in any of the four consecutive 10-year periods beginning in 2028. 

S. 723 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. 

The CBO staff contact for this estimate is Megan Carroll. The estimate was approved by H. Samuel Papenfuss, 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. 723. 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. 723, as ordered reported. 

CONGRESSIONALLY DIRECTED SPENDING

S. 723, as ordered reported, does not contain any congressionally 

directed spending items, limited tax benefits, or limited tariff benefits as defined in rule XLIV of the Standing Rules of the Senate. 

EXECUTIVE COMMUNICATIONS

Because S. 723 is similar to legislation considered by the Committee in the 114th Congress, the Committee did not request Executive Agency views. The written testimony provided by the FERC 

Chairman at the hearing before the Energy and Natural Resources 

Committee on October 8, 2015, follows: 


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FEDERAL ENERGY REGULATORY COMMISSION, OFFICE OF THE CHAIRMAN, Washington, DC. 

Re S. 1583, S. 2083, and S. 2046. 

Hon. LISA MURKOWSKI, 

Chairman, Committee on Energy and Natural Resources, 

Washington, DC. 

DEAR CHAIRMAN MURKOWSKI: This letter is in response to a request by the Senate Committee on Energy and Natural Resources 

for my views on S. 1583, a bill to authorize the expansion of the 

existing Terror Lake Hydroelectric Project, located at Terror Lake, 

on Kodiak Island, Alaska; S. 2083, a bill to extend the deadline for 

the commencement of construction of the W. Kerr Scott Hydroelectric Project in North Carolina; and S. 2046, a bill to authorize 

the Federal Energy Regulatory Commission (Commission) to issue 

an order continuing a stay of a hydroelectric license for the 

Mahoney Lake Project in the State of Alaska, and for other purposes. 

S. 2083

On July 17, 2012, the Commission issued Wilkesboro Hydroelectric Company, LLC a license to construct and operate the proposed 4–MW W. Kerr Scott Hydroelectric Project, to be located at 

the U.S. Army Corps of Engineers’ (Corps) W. Kerr Scott Dam and 

Reservoir, located on the Yadkin River, in Wilkes County, North 

Carolina. The license required the company to commence project 

construction within two years of the issuance date of the license, 

the longest time period allowed by section 13 of the Federal Power 

Act. On May 7, 2014, the Commission, at the licensee’s request, 

granted the one, two-year extension of the commencement of construction deadline permitted by section 13, thus making the deadline July 17, 2016. On June 19, 2015, the licensee filed an application with the Commission, seeking to amend the project license 

consistent with the results of its design consultation with the 

Corps. 

S. 2083 would allow the Commission, at the licensee’s request, to 

extend the time period within which the licensee is required to 

commence construction for up to three consecutive two-year periods 

following the expiration of the extension authorized by the May 7, 

2014 order. 

The last several Commission Chairmen have taken the position 

of not opposing legislation that would extend the commencement of 

construction deadline no further than 10 years from the date that 

the license in question was issued. Where proposed extensions 

would run beyond that time, there has been a sense that the public 

interest is better served by releasing the site for other public uses. 

Because S. 2083 provides for commencement of construction deadlines that do not exceed 10 years from the date on which the 

project license was issued, I do not oppose this bill. 

Sincerely, 

NORMAN C. BAY, 

Chairman. 


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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 as ordered reported. 

Æ 


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