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109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-685

======================================================================



 
   REINSTATEMENT OF LICENSE FOR FEDERAL ENERGY REGULATORY COMMISSION 
                         PROJECT NUMBERED 7307

                                _______
                                

 September 26, 2006.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Mr. Barton of Texas, from the Committee on Energy and Commerce, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 4417]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 4417) to provide for the reinstatement of a 
license for a certain Federal Energy Regulatory project, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Committee Consideration..........................................     2
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
Statement of General Performance Goals and Objectives............     3
New Budget Authority, Entitlement Authority, and Tax Expenditures     3
Earmark..........................................................     3
Committee Cost Estimate..........................................     3
Congressional Budget Office Estimate.............................     3
Federal Mandates Statement.......................................     4
Advisory Committee Statement.....................................     4
Constitutional Authority Statement...............................     4
Applicability to Legislative Branch..............................     4
Section-by-Section Analysis of the Legislation...................     5
Changes in Existing Law Made by the Bill, as Reported............     5

                          PURPOSE AND SUMMARY

    The purpose of H.R. 4417 is to reinstate the license and 
extend the deadline for commencement of construction of a 20 
megawatt hydroelectric project, the Tygart Dam Project (No. 
7307), in West Virginia.

                  BACKGROUND AND NEED FOR LEGISLATION

    Section 13 of the Federal Power Act, 16 U.S.C. Sec. 806 
(2000), provides that after the issuance by the Federal Energy 
Regulatory Commission (FERC) of a hydroelectric license, the 
licensee must begin construction of the project within the time 
specified in the license, which can be no more than 2 years 
after issuance of the license. FERC may extend this deadline to 
begin construction by 2 years. Thus, under the statute, FERC 
may allow a licensee a maximum of 4 years from the date of 
license issuance to begin construction of the hydroelectric 
project. Section 13 also provides that if the licensee does not 
begin construction within the time specified in the license or 
as extended by FERC, then, after due notice, the license shall 
be terminated by order of FERC. Congress can extend the 
construction deadline beyond what FERC may authorize through 
appropriate legislation.
    H.R. 4417 directs FERC to extend the period specified in 
the project license for commencing construction of the project 
until December 31, 2007. If the license has already expired 
before the date of enactment of this Act, reinstate the license 
and extend the date for commencing construction until December 
31, 2007.
    This project was delayed because of problems and economic 
conditions that have been resolved. This project is anticipated 
to provide a substantial economic boost to Grafton, West 
Virginia. The project developer is working on power sales 
agreements. The project will be built at an existing dam, 
minimizing environmental impact.

                                HEARINGS

    The Subcommittee on Energy and Commerce held a hearing 
nuclear waste storage and disposal policy, and hydroelectric 
license extension and energy efficiency legislation, on 
September 13, 2006. The Subcommittee received testimony from: 
The Honorable Edward F. Sproat III, Director, Office of 
Civilian Radioactive Waste Management, U.S. Department of 
Energy; Mr. Luis A. Reyes, Executive Director for Operations, 
U.S. Nuclear Regulatory Commission; The Honorable Stan Wise, 
Chairman, Georgia Public Service Commission, on behalf of: 
National Association of Regulatory Utility Commissioners; Mr. 
Anthony F. Earley Jr., Chairman and CEO, DTE Energy Company, on 
behalf of: Nuclear Energy Institute; Ms. Michelle Boyd, 
Legislative Director, Public Citizen; The Honorable C. L. 
``Butch'' Otter, Member, U.S. House of Representatives; The 
Honorable Alan B. Mollohan, Member, U.S. House of 
Representatives; and Mr. J. Mark Robinson, Director of the 
Office of Energy Projects, Federal Energy Regulatory 
Commission.

                        COMMITTEE CONSIDERATION

    On Wednesday, September 20, 2006, the Committee on Energy 
and Commerce met in open markup session and ordered H.R. 4417 
favorably reported to the House, without amendment, by a voice 
vote, a quorum being present.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives 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 
H.R. 4417 reported. A motion by Mr. Deal to order H.R. 4417 
favorably reported to the House, without amendment, 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 has not held oversight 
or legislative hearings on this legislation.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    The goal of H.R. 4417 is to authorize FERC to reinstate a 
terminated license to construct a hydroelectric power project 
in the State of West Virginia and to extend the deadline to 
commence construction of such project until December 31, 2007.

   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 H.R. 
4417, to provide for the reinstatement of a license for a 
certain Federal Energy Regulatory project, would result in no 
new or increased budget authority, entitlement authority, or 
tax expenditures or revenues.

                                EARMARK

    In compliance with H. Res. 1000 as passed the House of 
Representatives on September 14, 2006, the Committee finds that 
H.R. 4417, to provide for the reinstatement of a license for a 
certain Federal Energy Regulatory project, contains no 
earmarks.

                        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, September 26, 2006.
Hon. Joe Barton,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4417, a bill to 
provide for the reinstatement of a license for a certain 
Federal Energy Regulatory Commission project.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                          Donald B. Marron,
                                                   Acting Director.
    Enclosure.

H.R. 4417--A bill to provide for the reinstatement of a license for a 
        certain Federal Energy Regulatory Commission project

    H.R. 4417 would authorize the Federal Energy Regulatory 
Commission (FERC) to reinstate the license for a hydroelectric 
project (number 7307) in West Virginia. The bill also would 
extend the deadline for commencing construction of that project 
until December 31, 2007.
    CBO estimates that implementing H.R. 4417 would have no net 
effect on the federal budget. The bill would 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 fully offset by an equal change in the fees that 
the commission charges. Because FERC's administrative costs are 
limited in annual appropriations, the bill would not affect 
direct spending or revenues.
    H.R. 4417 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.
    On June 5, 2006, CBO transmitted a cost estimate for S. 
2028, similar legislation, as ordered reported by the Senate 
Committee on Energy and Natural Resources on May 24, 2006. The 
estimated costs of the two bills are the same.
    The CBO staff contact for this estimate is Megan Carroll. 
This estimate was approved by Robert A. Sunshine, 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. Reinstatement of License for Federal Energy Regulatory 
        Commission project

    Section 1 directs FERC to extend the time for commencement 
of construction of Project No. 7307 until December 31, 2007. If 
the license has expired by the date of enactment of this Act, 
FERC will reinstate the license and extend the time for 
commencement of construction until December 31, 2007.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation does not amend any existing Federal 
statute.