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UPSTREAM BENEFITS

U.S. Congress. House.

HEARINGS

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON

INTERSTATE AND FOREIGN COMMERCE.
HOUSE OF REPRESENTATIVES

EIGHTY-SIXTH CONGRESS

FIRST AND SECOND SESSIONS

ON

4- MAR-1
Copy 1860

H.R. 5309

A BILL TO AMEND PART I OF THE FEDERAL POWER ACT

H.R. 7201 and H.R. 7494

BILLS TO PROVIDE FOR THE COMPREHENSIVE OPERATION
OF HYDROELECTRIC POWER RESOURCES OF THE UNITED
STATES, AND FOR OTHER PURPOSES

51029

0-60676

JULY 16, 27, 1959, AND JANUARY 20, 1960

Printed for the use of the Committee on Interstate and Foreign Commerce

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UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1960

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

OREN HARRIS,

JOHN BELL WILLIAMS, Mississippi
PETER F. MACK, JR., Illinois
KENNETH A. ROBERTS, Alabama
MORGAN M. MOULDER, Missouri
HARLEY O. STAGGERS, West Virginia
ISIDORE DOLLINGER, New York 1
WALTER ROGERS, Texas

SAMUEL N. FRIEDEL, Maryland
JOHN J. FLYNT, JR., Georgia

TORBERT H. MACDONALD, Massachusetts
GEORGE M. RHODES, Pennsylvania

JOHN JARMAN, Oklahoma

LEO W. O'BRIEN, New York

JOHN E. MOSS, California

JOHN D. DINGELL, Michigan

JOE M. KILGORE, Texas

PAUL G. ROGERS, Florida

ROBERT W. HEMPHILL, South Carolina
DAN ROSTENKOWSKI, Illinois
LAWRENCE BROCK, Nebraska
JAMES C. HEALEY, New York 2

ANDREW STEVENSON KURT BORCHARDT

Arkansas, Chairman

JOHN B. BENNETT, Michigan
WILLIAM L. SPRINGER, Illinois
ALVIN R. BUSH, Pennsylvania 3
PAUL F. SCHENCK, Ohio

STEVEN B. DEROUNIAN, New York
J. ARTHUR YOUNGER, California
WILLIAM H. AVERY, Kansas
HAROLD R. COLLIER, Illinois
MILTON W. GLENN, New Jersey
SAMUEL L. DEVINE, Ohio
ANCHER NELSEN, Minnesota
HASTINGS KEITH, Massachusetts
WILLARD S. CURTIN, Pennsylvania 4

W. E. WILLIAMSON, Clerk
KENNETH J. PAINTER, Assistant Clerk

Professional Staff

SAM G. SPAL

MARTIN W. CUNNINGHAM

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III

Additional information submitted for the record-Continued
Industrial Union Department, letter from Albert Whitehouse, director.
Inland Empire Waterways Association, statement of Herbert G.
West, executive vice president...

Page

138

131

147, 163

Interior Department, letters from Hon. Fred G. Aandahl, Assistant
Secretary, transmitting proposed amendments to H.R. 7201...

Lewis-Clark G. & T. Co-op, telegram from Edgar Collison, president__

Metcalf, Hon. Lee:

Resolution of County Commissioners Association of the State of

Montana...

Section-by-section analysis of H.R. 7201..

Montana Farmers Union, letter from Leonard Kenfield, president__
Montana Public Service Commission, statement of Paul T. Smith,
chairman__

National Association of Railroad and Utilities Commissioners, letter

from Austin L. Roberts, Jr., general solicitor___.

National Farmers Union:

Letter from James G. Patton, president, to Senator Murray--.
Statement of Angus McDonald, coordinator, legislative services.

Northwest Public Power Association, Inc.:

Letters from Gus Norwood, executive secretary.

Research memorandum__.

Testimony before Senate committee_.

Stevens, Jack D.:

Benefits due to storage releases at Flathead Lake, map_.
Comments by H. A. Sewell, consulting engineer, on research
memorandum of Gus Norwood_

137

138

136

135

99

Washington Public Utility Districts' Association, statement of Ken
Billington, executive secretary_

57

UPSTREAM BENEFITS

THURSDAY, JULY 16, 1959

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON COMMUNICATIONS AND POWER, OF THE

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Washington, D.C.

The subcommittee met at 10 a.m., pursuant to call, in room 1334 of the New House Office Building, Hon. Oren Harris (chairman) presiding.

The CHAIRMAN. The committee will come to order.

Today the subcommittee is holding hearings on three bills. Interest has been manifested in this problem for some time. The bills are H.R. 5309, by our colleague from Virginia, Mr. Gary; H.R. 7201, by our colleague from Montana, Mr. Metcalf; and H.R. 7494, by our colleague from South Carolina, and a member of this committee, Mr. Hemphill. These bills to amend the Federal Power Act provide that charges shall be paid by Federal power projects which are benefited by upstream improvements constructed by other parties.

H.R. 7201 and H.R. 7494 are identical bills, but H.R. 5309 treats the subject a little differently.

In addition, H.R. 5309 would amend the existing law (1) to provide for exemption of projects of 2,000 horsepower or less compared with the present 100 horsepower-from certain licensing provisions of the Federal Power Act; and (2) to provide for relicensing the same licensee upon application if the United States does not take over a project at the end of the license period.

All three subjects have been before this committee in one form or another for several years. The charging of Federal projects with upstream benefits was proposed in the 1954 budget message of the President, and considered by the 83d Congress, and has been a legislative recommendation of the Federal Power Commission.

The increase in the exemption from 100 to 2,000 horsepower was considered by the committee in connection with legislation in the 80th Congress and has been recommended by the Federal Power Commission since 1951.

The renewal of a license at the end of a 50-year period, which is opposed by the Federal Power Commmission as being an unnecessary amendment, was considered in the 83d Congress in connection with legislation exempting State and municipal projects from recapture provisions of the act.

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