[House Report 115-154]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 115-154
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TO AUTHORIZE THE EXPANSION OF AN EXISTING HYDROELECTRIC PROJECT, AND
FOR OTHER PURPOSES
_______
June 2, 2017.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Bishop of Utah, from the Committee on Natural Resources, submitted
the following
R E P O R T
[To accompany H.R. 220]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 220) to authorize the expansion of an existing
hydroelectric project, and for other purposes, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. TERROR LAKE HYDROELECTRIC PROJECT UPPER HIDDEN BASIN
DIVERSION AUTHORIZATION.
(a) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(2) Terror lake hydroelectric project.--The term ``Terror
Lake Hydroelectric Project'' means the project identified in
section 1325 of the Alaska National Interest Lands Conservation
Act (16 U.S.C. 3212), and which is Federal Energy Regulatory
Commission project number 2743.
(3) Upper hidden basin diversion expansion.--The term ``Upper
Hidden Basin Diversion Expansion'' means the expansion of the
Terror Lake Hydroelectric Project as generally described in
Exhibit E to the Upper Hidden Basin Grant Application dated
July 2, 2014, and submitted to the Alaska Energy Authority
Renewable Energy Fund Round VIII by Kodiak Electric
Association, Inc.
(b) Authorization.--The licensee for the Terror Lake Hydroelectric
Project may occupy not more than 20 acres of Federal land to construct,
operate, and maintain the Upper Hidden Basin Diversion Expansion
without further authorization of the Secretary of the Interior or under
the Alaska National Interest Lands Conservation Act (16 U.S.C. 3101 et
seq.).
(c) Savings Clause.--The Upper Hidden Basin Diversion Expansion shall
be subject to appropriate terms and conditions included in an amendment
to a license issued by the Commission pursuant to the Federal Power Act
(16 U.S.C. 791a et seq.), including section 4(e) of that Act (16 U.S.C.
797(e)), following an environmental review by the Commission under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
PURPOSE OF THE BILL
The purpose of H.R. 220 is to authorize the expansion of an
existing hydroelectric project.
BACKGROUND AND NEED FOR LEGISLATION
H.R. 220, as amended, authorizes the limited expansion of
the Terror Lake hydroelectric project on Kodiak Island, Alaska.
According to the Alaska Energy Authority, the Terror Lake
Hydroelectric Project (Project) on Kodiak Island, Alaska,
provides 31 Megawatts of hydropower capacity to the Island's
approximately 13,789 residents and a U.S. Coast Guard (USCG)
Station. Kodiak Island (Island) is off the North American
electricity grid and relies solely on electric generation
within the Island or imported diesel fuel.
The Project, licensed by the Federal Energy Regulatory
Commission (FERC) as Project No. 2743 in 1981, was the result
of an agreement between the federal government, the State of
Alaska, environmental groups and the Kodiak Electric
Association (KEA). Since the Project is within the Island's
National Wildlife Refuge (Refuge), the settlement required the
following mitigation measures: (1) the Alaska Department of
Natural Resources agreed to manage 28,000 acres of state-owned
land contiguous to the Refuge at Kiliuda Bay as though it were
part of the Refuge; and (2) the State of Alaska agreed that at
least half of the Shearwater Peninsula would be designated as
wildlife habitat where grazing would be prohibited. According
to the U.S. Fish and Wildlife Service (USFWS), the Refuge
currently comprises 82.6% of the Island.
KEA, a rural electric cooperative, owns and operates the
Project. According to KEA, nearly 99.7% of their energy sources
are renewable, consisting of wind energy and hydropower
produced at Terror Lake, with the remaining 0.3% consisting of
diesel generation. One of KEA's largest customers is the USCG
base on the Island, which includes Air Station Kodiak, USCG
Cutter Spar, and USCG Cutter Alex Haley. KEA also provides
electricity for USCG housing and support services.
In light of growing electricity demand on the Island, there
is concern that KEA will be unable to meet the needs of the
residents without acquiring additional energy resources.
According to KEA, the increased generation capacity must come
in the form of either an expansion of the Project or increased
diesel fuel imports. As a result, the utility has proposed a
Project expansion which would divert a small portion of flows
in the Upper Hidden Basin into Terror Lake via a 1.2 mile
underground tunnel. According to KEA, this diversion would
increase the water resources at Terror Lake by 25%, resulting
in an additional 33,000 Megawatt-hours (MWh) of generation each
year, with a total estimated output of approximately 168
million MWh annually. Without the Project expansion, Alaska's
Department of Environmental Quality estimates that the diesel
generation required for heat alone will result in an annual
release of 140 tons of NOX and 6,500 tons of
greenhouse gases into the atmosphere.
H.R. 220, as amended, allows KEA to use not more than 20
acres of federal land within the Refuge for the proposed
expansion--which is consistent with KEA's request. The
legislation specifically requires the expansion to be subject
to appropriate terms and conditions under the Federal Power
Act. This would allow USFWS to impose ``mandatory conditions''
under Section 4(e) of the Federal Power Act for mitigation.
The bill seeks to expedite the expansion in light of rising
costs and a limited construction season. According to KEA,
delaying construction by just one year would add $11 million in
additional project costs, which includes $1.3 million in costs
associated with future supplemental diesel generation that will
be required to meet electricity demand. All of these costs
would be borne by the Island's ratepayers, including the USCG.
SECTION-BY-SECTION ANALYSIS
Section 1, as amended, authorizes the licensee for the
Terror Lake hydroelectric project to occupy not more than 20
acres of federal land to construct, operate and maintain the
Upper Hidden Basin Diversion Expansion without further
authorization of the Secretary of the Interior under the Alaska
National Interest Lands Conservation Act. This section also
clarifies that this legislation does not impact any requirement
to procure a revised license from FERC or impact the ability of
the USFWS to impose conditions on that license, pursuant to the
Federal Power Act and in particular section 4(e) of that Act.
This also in no way impacts any requirement to conduct an
environmental review pursuant to the National Environmental
Policy Act of 1969.
COMMITTEE ACTION
H.R. 220 was introduced on January 3, 2017, by Congressman
Don Young (R-AK). The bill was referred to the Committee on
Natural Resources, and within the Committee to the
Subcommittees on Water, Power and Oceans and Federal Lands. On
April 3, 2017, the Subcommittee on Water, Power and Oceans held
a hearing on the bill. On April 26, 2017, the Natural Resources
Committee met to consider the bill. The Subcommittees on Water,
Power and Oceans and Federal Lands were discharged by unanimous
consent. Congressman Don Young offered an amendment designated
#1 to the bill; it was adopted by unanimous consent. No further
amendments were offered, and the bill, as amended, was ordered
favorably reported to the House of Representatives by unanimous
consent on April 27, 2017.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
COMPLIANCE WITH HOUSE RULE XIII AND CONGRESSIONAL BUDGET ACT
1. Cost of Legislation and the Congressional Budget Act.
With respect to the requirements of clause 3(c)(2) and (3) of
rule XIII of the Rules of the House of Representatives and
sections 308(a) and 402 of the Congressional Budget Act of
1974, the Committee has received the following estimate for the
bill from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 5, 2017.
Hon. Rob Bishop,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 220, a bill to
authorize the expansion of an existing hydroelectric project,
and for other purposes.
If you wish further details of this estimate, we will be
pleased to provide them. The CBO staff contact is Megan
Carroll.
Sincerely,
Keith Hall.
Enclosure.
H.R. 220--A bill to authorize the expansion of an existing
hydroelectric project, and or other purposes
H.R. 220 would specify that the licensee of the Terror Lake
hydroelectric project (number 2743), located within the Kodiak
National Wildlife Refuge in Alaska, can expand that project to
occupy not more than 20 acres of additional federal land. Under
the bill, the proposed expansion would require no further
approval by the Secretary of the Interior.
CBO estimates that enacting H.R. 220 would not
significantly affect the federal budget. The proposed expansion
could have a minor effect on spending by the Federal Energy
Regulatory Commission (FERC), which regulates the Terror Lake
hydroelectric project. Because FERC recovers 100 percent of its
costs through user fees, however, 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.
According to the Department of the Interior, the federal
lands that would be affected by the proposed expansion
currently generate no significant receipts from programs to
develop natural resources and are not expected to do so in the
future. As a result, CBO expects that the proposed expansion
would not affect offsetting receipts (which are treated as
reductions in direct spending). Because H.R. 220 would not
affect direct spending or revenues, pay-as-you-go procedures do
not apply.
CBO estimates that enacting H.R. 220 would not increase net
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2028.
H.R. 220 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 April 6, 2017, CBO transmitted a cost estimate for S.
214, a bill to authorize the expansion of an existing
hydroelectric project, as ordered reported by the Senate
Committee on Energy and Natural Resources on March 30, 2017.
The two pieces of legislation are similar and CBO's estimate of
their budgetary effects is the same.
The CBO staff contact for this estimate is Megan Carroll.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
2. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is authorize the expansion of an
existing hydroelectric project.
EARMARK STATEMENT
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
COMPLIANCE WITH PUBLIC LAW 104-4
This bill contains no unfunded mandates.
COMPLIANCE WITH H. RES. 5
Directed Rule Making. This bill does not contain any
directed rule makings.
Duplication of Existing Programs. This bill does not
establish or reauthorize a program of the federal government
known to be duplicative of another program. Such program was
not included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-139
or identified in the most recent Catalog of Federal Domestic
Assistance published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169) as relating to other programs.
PREEMPTION OF STATE, LOCAL OR TRIBAL LAW
This bill is not intended to preempt any State, local or
tribal law.
CHANGES IN EXISTING LAW
If enacted, this bill would make no changes in existing
law.
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