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115th Congress    }                                    {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                    {      115-173

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



 
                    HYDROPOWER PERMIT EXTENSION ACT

                                _______
                                

 June 12, 2017.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Walden, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2274]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 2274) to amend the Federal Power Act to provide 
for extended periods relating to preliminary permits and 
commencement of construction, and for other purposes, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Committee Action.................................................     2
Committee Votes..................................................     2
Oversight Findings and Recommendations...........................     2
New Budget Authority, Entitlement Authority, and Tax Expenditures     2
Congressional Budget Office Estimate.............................     2
Federal Mandates Statement.......................................     2
Statement of General Performance Goals and Objectives............     2
Duplication of Federal Programs..................................     2
Committee Cost Estimate..........................................     2
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......     3
Disclosure of Directed Rule Makings..............................     3
Advisory Committee Statement.....................................     3
Applicability to Legislative Branch..............................     3
Section-by-Section Analysis of the Legislation...................     3
Changes in Existing Law Made by the Bill, as Reported............     3

                          Purpose and Summary

    H.R. 2274 amends the Federal Power Act to allow the Federal 
Energy Regulatory Commission (FERC) to extend periods relating 
to preliminary permits and commencement of construction of 
hydroelectric projects.

                            Committee Action

    The Committee on Energy and Commerce has not held hearings 
on the legislation.
    On June 7, 2017, the full Committee on Energy and Commerce 
met in open markup session and ordered H.R. 2274, without 
amendment, favorably reported to the House by unanimous 
consent.

                            Committee Votes

    Clause 3(b) of rule XIII 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. 2274 reported.

                 Oversight Findings and Recommendations

    Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII, the Committee has not held hearings on this 
legislation.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII, the Committee 
finds that H.R. 2274 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII, at the time this 
report was filed, the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not available.

                       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.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to amend 
the Federal Power Act to allow FERC to extend periods relating 
to preliminary permits and commencement of construction of 
hydroelectric projects.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 2274 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                        Committee Cost Estimate

    Pursuant to clause 3(d)(1) of rule XIII, 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. At the time this report was 
filed, the estimate was not available.

       Earmark, Limited Tax Benefits, and Limited Tariff Benefits

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 2274 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                  Disclosure of Directed Rule Makings

    Pursuant to section 3(i) of H. Res. 5, the Committee finds 
that H.R. 2274 contains no directed rule makings.

                      Advisory Committee Statement

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

                  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. Short title

    Section 1 would provide that the Act may be cited as the 
``HYdropower Permit Extension Act'' or the ``HYPE Act.''

Section 2. Extension of periods

    Section 2 would authorize the FERC to issue a preliminary 
permit to a hydropower construction license applicant for up to 
four years instead of three. In addition, the FERC would be 
authorized to extend the period of a preliminary permit once 
for not more than four additional years, instead of two, beyond 
the initial four year period. The FERC may further extend the 
period a preliminary permit once for not more than four 
additional years if it determines that there are extraordinary 
circumstances that warrant such additional extension.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

FEDERAL POWER ACT

           *       *       *       *       *       *       *



PART I

           *       *       *       *       *       *       *


  Sec. 5. (a) Each preliminary permit issued under this Part 
shall be for the sole purpose of maintaining priority of 
application for a license under the terms of this Act for such 
period or periods, not exceeding a total of [three] four years, 
as in the discretion of the Commission may be necessary for 
making examinations and surveys, for preparing maps, plans, 
specifications, and estimates, and for making financial 
arrangements.
  (b) The [Commission may extend the period of a preliminary 
permit once for not more than 2 additional years beyond the 3 
years] Commission may--
          (1) extend the period of a preliminary permit once 
        for not more than four additional years beyond the four 
        years permitted by subsection (a) if the Commission 
        finds that the permittee has carried out activities 
        under such permit in good faith and with reasonable 
        diligence[.]; and
          (2) if the period of a preliminary permit is extended 
        under paragraph (1), extend the period of such 
        preliminary permit once for not more than four 
        additional years beyond the extension period granted 
        under paragraph (1), if the Commission determines that 
        there are extraordinary circumstances that warrant such 
        additional extension.
  (c) Each such permit shall set forth the conditions under 
which priority shall be maintained.
  (d) Such permits shall not be transferable, and may be 
canceled by order of the Commission upon failure of permittees 
to comply with the conditions thereof or for other good cause 
shown after notice and opportunity for hearing.

           *       *       *       *       *       *       *

  Sec. 13. That the licensee shall commence the construction of 
the project works within the time fixed in the license, which 
shall not be more than two years from the date thereof, shall 
thereafter in good faith and with due diligence prosecute such 
construction, and shall within the time fixed in the license 
complete and put into operation such part of the ultimate 
development as the Commission shall deem necessary to supply 
the reasonable needs of the then available market, and shall 
from time to time thereafter construct such portion of the 
balance of such development as the Commission may direct, so as 
to supply adequately the reasonable market demands until such 
development shall have been completed. The periods for the 
commencement of construction may be extended [once but not 
longer than two additional years] for not more than eight 
additional years, and the period for the completion of 
construction carried on in good faith and with reasonable 
diligence may be extended by the Commission when not 
incompatible with the public interests. In case the licensee 
shall not commence actual construction of the project works, or 
of any specified part thereof, within the time prescribed in 
the license or as extended by the commission, then, after due 
notice given, the license shall, as to such project works or 
part thereof, be terminated upon written order of the 
Commission. In case the construction of the project works, or 
of any specified part thereof, have been begun but not 
completed within the time prescribed in the license, or as 
extended by the commission, then the Attorney General, upon the 
request of the Commission, shall institute proceedings in 
equity in the district court of the United States for the 
district in which any part of the project is situated for the 
revocation of said license, the sale of the works constructed, 
and such other equitable relief as the case may demand, as 
provided for in section 26 hereof.

           *       *       *       *       *       *       *


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