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[House Report 106-630]
[From the U.S. Government Publishing Office]

106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-630

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  TO EXTEND THE DEADLINE FOR COMMENCEMENT OF THE CONSTRUCTION OF THE 
       ARROWROCK DAM HYDROELECTRIC PROJECT IN THE STATE OF IDAHO

                                _______
                                

  May 19, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                         [To accompany S. 1236]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Commerce, to whom was referred the bill (S. 
1236) to extend the deadline under the Federal Power Act for 
commencement of the construction of the Arrowrock Dam 
Hydroelectric Project in the State of Idaho, having considered 
the same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Committee Consideration..........................................     3
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
Committee on Government Reform Oversight Findings................     4
New Budget Authority, Entitlement Authority, and Tax Expenditures     4
Committee Cost Estimate..........................................     4
Congressional Budget Office Estimate.............................     4
Federal Mandates Statement.......................................     5
Advisory Committee Statement.....................................     5
Constitutional Authority Statement...............................     5
Applicability to Legislative Branch..............................     6
Section-by-Section Analysis of the Legislation...................     6
Changes in Existing Law Made by the Bill, as Reported............     6

                               AMENDMENT

  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. EXTENSION OF TIME FOR FEDERAL ENERGY REGULATORY COMMISSION 
                    PROJECT.

  (a) In General.--Notwithstanding the time period specified in section 
13 of the Federal Power Act (16 U.S.C. 806) that would otherwise apply 
to the Federal Energy Regulatory Commission project numbered 4656, the 
Commission may, at the request of the licensee for the project and 
after reasonable notice, in accordance with the good faith, due 
diligence, and public interest requirements of that section and the 
Commission's procedures under that section, extend the time period 
during which the licensee is required to commence the construction of 
the project for three consecutive two-year periods.
  (b) Effective Date.--Subsection (a) shall take effect on the date of 
the expiration of the extension issued by the Commission prior to the 
date of enactment of this Act under section 13 of the Federal Power Act 
(16 U.S.C. 806).
  (c) Reinstatement of Expired License.--If the period required for 
commencement of construction of the project described in subsection (a) 
has expired prior to the date of enactment of this Act, the Commission 
shall reinstate the license effective as of the date of its expiration 
and the first extension authorized under subsection (a) shall take 
effect on the date of such expiration.

                          PURPOSE AND SUMMARY

    The purpose of S. 1236 is to extend the deadline for 
commencement of construction of a hydroelectric project in the 
State of Idaho.

                  BACKGROUND AND NEED FOR LEGISLATION

    Section 13 of the Federal Power Act (16 U.S.C. Sec. 806) 
establishes time limits for commencement of construction of a 
hydroelectric project once the Federal Energy Regulatory 
Commission (FERC) has issued a license. The licensee must begin 
construction not more than two years from the date the license 
is issued unless FERC extends the initial deadline. However, 
section 13 permits FERC to grant only one extension of that 
deadline for ``not longer than two additional years * * * when 
not incompatible with the public interests.'' Accordingly, FERC 
lacks authority to extend the deadline beyond a maximum of two 
years from the original deadline for commencement of 
construction. Therefore, a license is subject to termination if 
a licensee fails to begin construction within four years of the 
date the license is issued.
    Lack of a power sales contract can delay the commencement 
of construction of licensed hydroelectric projects. Some 
hydroelectric project developers cannot secure financing to 
fund construction until they enter into power sales contracts. 
Generally, a licensee cannot enter into a contract until it has 
a license, and the construction deadline begins to toll once 
the license is granted. The tremendous uncertainties in the 
electric industry discourage power purchasers from entering 
into the long-term power sales contracts that in the past often 
financed hydroelectric project construction. There are other 
obstacles to commencement of construction, such as protracted 
proceedings on a licensee's application for a dredge and fill 
permit from the Army Corps of Engineers under section 404 of 
the Clean Water Act. FERC has testified that in such cases it 
can issue orders staying the license until matters are 
resolved, suggesting extension legislation is not needed in 
order to address delays beyond the control of the licensee.
    S. 1236 authorizes FERC to extend the deadline for the 
commencement of construction of a 60 megawatt hydroelectric 
project (Project No. 4656) in Elmore and Ada Counties, Idaho, 
for up to three consecutive two-year periods. Since the project 
was granted a legislative extension by Congress in the Energy 
Policy Act of 1992, S. 1236 would extend the deadline to up to 
sixteen years after the date the original license was issued. 
The current deadline for commencement of construction of this 
project expired on March 26, 1999, and FERC has indicated its 
intent to terminate the license. S. 1236 does not ease the 
requirements of a hydroelectric license, but merely extends the 
period for commencement of project construction. S. 1236 
provides the licensee must meet the good faith, due diligence, 
and public interest requirements of section 13 of the Federal 
Power Act.
    S. 1236 was amended by the Subcommittee on Energy and Power 
to provide for up to three consecutive two-year extensions, 
instead of the single six-year extension in the bill passed by 
the Senate, in order to assure the licensee continues to meet 
the section 13 requirements before obtaining each two-year 
extension. If FERC determines the licensee is not prosecuting 
construction in accordance with the good faith, due diligence, 
and public interest requirements of section 13 the Committee 
expects the agency to refuse to grant a request for an 
additional two-year extension and terminate the license.

                                HEARINGS

    The Subcommittee on Energy and Power held a hearing on S. 
1236 on March 30, 2000. The Subcommittee received testimony 
from: The Honorable Frank Murkowski, United States Senate; The 
Honorable George Radanovich, U.S. House of Representatives; The 
Honorable Peter DeFazio, U.S. House of Representatives; The 
Honorable James J. Hoecker, Chairman, Federal Energy Regulatory 
Commission; The Honorable John D. Leshy, Solicitor, U.S. 
Department of the Interior; Mr. Allen Burns, Vice President of 
Requirements Marketing, Bonneville Power Administration; Dr. 
Andrew Rosenberg, Deputy Assistant Administrator for Fisheries, 
National Oceanic and Atmospheric Administration, U.S. 
Department of Commerce; Mr. Paul Brouha, Associate Deputy 
Chief, Forest Service, U.S. Department of Agriculture; Mr. 
Michael A. Murphy, President, National Hydropower Association; 
Mr. Kevin Lynch, Director of Government Affairs, PacifiCorp; 
Mr. Andrew Fahlund, Policy Director for Hydropower Programs, 
American Rivers; Mr. Robert Grimm, President, Alaska Power & 
Telephone; Mr. David E. Piper, Chief Executive Officer, Pacific 
Northwest Generating Cooperative; Mr. Steve Waddington, 
Northwest Power Manager, Reynolds Metals Company; and Ms. Lynne 
Kennedy, Hydroelectric Specialist, Oregon Department of 
Environmental Quality.

                        COMMITTEE CONSIDERATION

    On April 12, 2000, the Subcommittee on Energy and Power met 
in open markup session and approved S. 1236 for Full Committee 
consideration, as amended, by a voice vote. The Full Committee 
met in open markup session on May 17, 2000, and ordered S. 1236 
reported to the House, without further amendment, by a voice 
vote, a quorum being present.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House requires 
the Committee to list the record votes on the motion to report 
legislation and amendments thereto. There were no record votes 
taken in connection with ordering S. 1236 reported. A motion by 
Mr. Bliley to order S. 1236 reported to the House, as amended, 
was agreed to by a voice vote.

                      COMMITTEE OVERSIGHT FINDINGS

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a legislative 
hearing on S. 1236 and made findings that are reflected in this 
report.

           COMMITTEE ON GOVERNMENT REFORM OVERSIGHT FINDINGS

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform.

   NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that S. 
1236, a bill to extend the deadline under the Federal Power Act 
for commencement of construction of the Arrowrock Dam 
Hydroelectric Project in the State of Idaho, would result in no 
new or increased budget authority, entitlement authority, or 
tax expenditures or revenues.

                        COMMITTEE COST ESTIMATE

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 18, 2000.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed estimate for S. 1236, an act to extend 
the deadline under the Federal Power Act for commencement of 
the construction of the Arrowrock Dam Hydroelectric Project in 
the state of Idaho.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Lisa Cash 
Driskill.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

S. 1236--An act to extend the deadline under the Federal Power Act for 
        commencement of the construction of the Arrowrock Dam 
        Hydroelectric Project in the state of Idaho

    CBO estimates that enacting S. 1236 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.
    S. 1236 would extend the deadline for construction of a 
hydroelectric project currently subject to licensing by the 
Federal Energy Regulatory Commission (FERC) for six years. The 
proposed extension is for FERC project number 4656. S. 1236 
also would direct FERC to reinstate the license for the project 
should it expire prior to enactment of this legislation. These 
provisions may have a minor impact on FERC's workload. Because 
FERC recovers 100 percent of its costs 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 
act's provisions would have no net budgetary impact.
    Because FERC's administrative costs are limited in annual 
appropriations, the act would not affect direct spending or 
receipts. Therefore, pay-as-you-go procedures would not apply 
to the act.
    On September 22, 1999, CBO transmitted a cost estimate for 
S. 1236, as ordered reported by the Senate Committee on Energy 
and Natural Resources on September 27, 1999. The two versions 
of the legislation are virtually identical and the estimated 
costs are the same.
    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.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Extension of time for Federal Energy Regulatory Commission 
        project

    Subsection (a) authorizes FERC, upon the request of the 
licensee for Project No. 4656, and in accordance with the good 
faith, due diligence, and public interest requirements of 
section 13 of the Federal Power Act and FERC's procedures under 
such section, to extend the time required for commencement of 
construction of such project for up to three consecutive two-
year periods. Subsection (b) provides that subsection (a) shall 
take effect on the expiration of the period required for 
commencement of construction of Project No. 4656, namely March 
26, 1999. Subsection (c) directs FERC to reinstate the license 
effective on the date of expiration of the current construction 
deadline and extend the time required for commencement of 
construction, in the event the license is terminated before 
enactment of the legislation.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    S. 1236 does not amend any existing Federal statute.

                                  
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