69–010 

Calendar No. 96 

115TH CONGRESS REPORT " ! SENATE 1st Session 115–77 

TO AUTHORIZE THE FEDERAL ENERGY REGULATORY COMMISSION TO 

ISSUE AN ORDER CONTINUING A STAY OF A HYDROELECTRIC LICENSE 

FOR THE MAHONEY LAKE HYDROELECTRIC PROJECT IN THE STATE OF 

ALASKA, AND FOR OTHER PURPOSES 

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. 215] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 215) to authorize the Federal Energy Regulatory Commission to issue an order continuing a stay of a hydroelectric license for the Mahoney Lake hydroelectric project in the 

State of Alaska, and for other purposes, having considered the 

same, reports favorably thereon without amendment and recommends that the bill do pass. 

PURPOSE

The purpose of S. 215 is to direct the Federal Energy Regulatory 

Commission (Commission) to issue an order continuing a stay of a 

hydroelectric license for the Mahoney Lake hydroelectric project in 

the State of Alaska. 

BACKGROUND AND NEED

The Mahoney Lake Hydroelectric Project was first proposed in 

the 1990s as a 9.6 megawatt lake-tap project. In 2002, Congress directed the Commission to grant a stay for the project’s construction 

until not later than six years after the Commission received written notice that the Swan-Tyee electrical transmission intertie was 

completed. The Commission received written notice of the completion of the Swan-Tyee electrical transmission intertie on October 4, 

2011, thus requiring the Commission to lift the stay no later than 

October 4, 2017. 

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Currently, the Southeast Alaska Power Authority (SEAPA) is reviewing potential power sources to meet the City of Ketchikan’s 

projected power needs over the next decade. As part of that study, 

SEAPA is considering the merits of a number of projects, including 

the construction of Mahoney Lake. In order to keep the Mahoney 

Lake hydropower project viable as a potential renewable energy 

project, the Cape Fox Native Corporation of Ketchikan, the Alaska 

Power and Telephone Company, and the City of Saxman seek an 

additional stay of the license for the Mahoney Lake project, along 

with a potential extension of the construction start deadline. 

LEGISLATIVE HISTORY

Senators Murkowski and Sullivan introduced S. 215 on January 

24, 2017. 

In the 114th Congress, S. 2046 was introduced by Senator Murkowski on September 17, 2015. The Committee on Energy and Natural Resources held a hearing on October 8, 2015 to consider the 

bill and ordered S. 2046 favorably reported, as amended, at its 

business meeting on November 19, 2015 (S. Rept. 114–190). Representative Don Young introduced companion legislation, H.R. 

5302, in the House of Representatives on May 19, 2016. 

The measure was 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. 

The Committee on Energy and Natural Resources met in open 

business session on March 30, 2017, and ordered S. 215 favorably 

reported. 

COMMITTEE RECOMMENDATION

The Senate Committee on Energy and Natural Resources, in 

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

of a quorum present, recommends that the Senate pass S. 215. 

SECTION-BY-SECTION ANALYSIS

Section 1. Stay and reinstatement of FERC license No. 11393 for the 

Mahoney Lake Hydroelectric Project 

Section 1(a) defines key terms. 

Subsection (b) directs the Commission, at the request of the licensee, to issue a stay of license. 

Subsection (c) directs the Commission, at the request of the licensee, to lift the stay of the license and make the effective date 

of the license the day the stay is lifted. Such request by the licensee must be made within 10 years of the date of enactment of 

this Act. 

Subsection (d) directs the Commission, at the request of the licensee, to extend the time period for project construction commencement for up to six years. Such extension is to be undertaken 

after reasonable notice and in accordance with the good faith, due 

diligence, and public interest requirements of section 13 of the Federal Power Act. 

Subsection (e) clarifies that S. 215 does not prioritize or create 

any advantage or disadvantage for the Mahoney Lake Hydroelectric Project. 

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COST AND BUDGETARY CONSIDERATIONS

The following estimate of costs of this measure has been provided 

by the Congressional Budget Office: 

CBO estimates that implementing S. 215 would have no net effect on the federal budget. The bill would direct the Federal Energy 

Regulatory Commission (FERC), at the request of the licensee of 

the Mahoney Lake hydroelectric project in Alaska (number 11393), 

to issue an order to continue a stay of the license for that project. 

The bill also would direct FERC, upon the licensee’s request, to 

subsequently lift that stay and extend for up to three consecutive 

two-year periods the deadline for beginning construction of the hydroelectric project. Implementing S. 215 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. 215 would not affect direct spending or revenues; 

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

that enacting S. 215 would not increase net direct spending or onbudget deficits in any of the four consecutive 10-year periods beginning in 2028. 

S. 215 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. 215. 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. 215, as ordered reported. 

CONGRESSIONALLY DIRECTED SPENDING

S. 215, 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. 215 is similar to legislation considered by the Committee in the 114th Congress, the Committee did not request Executive Agency views. The relevant portion of the written testimony 

provided by the Chairman of the Federal Energy Regulatory Commission for 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. 2046

On January 22, 1998, the Commission issued the City of 

Saxman, Alaska an original license authorizing the construction 

and operation of the proposed 9.6–MW Mahoney Lake Hydroelectric Project, to be located on Upper Mahoney Lake and Upper 

Mahoney Creek, near Ketchikan, Alaska. On August 5, 2004, as required by Public Law No. 108–7, the Commission issued an order 

granting stay of the Mahoney Lake Project license. Under section 

314(b) of the law, the Commission was required to lift the stay 

upon request of the City, but not later than six years after the 

Commission received written notice of the completion of the SwanTyee transmission line. By letter filed October 4, 2011, the Southeast Alaska Power Agency, which built the transmission line, reported that the Swan-Tyee transmission line was operational on 

October 21, 2009. Accordingly, I believe that the Commission is 

currently required to lift the stay no later than October 4, 2017. 

S. 2046 would require the Commission to stay the license, upon 

the licensee’s request, for a period of no more than 10 years after 

the date of enactment of the bill, make the effective date of the license the date on which the stay is lifted, and grant up to three 

two-year extensions of the construction deadline. Given the policy 

of the last several Chairmen that I discussed above, and that S. 

2046 could result in a commencement of construction deadline 

more than 30 years after the project license was issued, I do not 

support S. 2046. 

As you know, I recently spoke at the National Hydropower Association meeting in Anchorage and met with a number of hydropower operators. I understand the importance of hydropower for 

communities in Alaska and elsewhere, and look forward to working 

with you on hydropower issues. 

If I can be of further assistance to you on this or any other Commission matter, please let me know. 

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. 

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