SENATE AMENDED
        PRIOR PRINTER'S NOS. 3537, 3721               PRINTER'S NO. 3760

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2470 Session of 1984


        INTRODUCED BY FREEMAN, GRUPPO, RYBAK AND KOWALYSHYN,
           SEPTEMBER 18, 1984

        AS AMENDED ON SECOND CONSIDERATION, IN SENATE, NOVEMBER 28, 1984

                                     AN ACT

     1  Establishing the authority of the Department of Environmental
     2     Resources to lease the State-owned facility, known as the
     3     Chain Dam, located in Palmer Township (near the City of
     4     Easton) in Northampton County on the Lehigh River.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7  Section 1.  Short title.
     8     This act shall be known and may be cited as the Chain Dam
     9  Hydroelectric Facility Leasing Act.
    10  Section 2.  Declaration of policy.
    11     Because the Commonwealth currently is holding an exemption
    12  from the Federal Energy Regulatory Commission, which will expire
    13  before much broader legislation can be enacted, it is imperative
    14  that the Department of Environmental Resources be authorized to
    15  lease the hydroelectric facility located at Chain Dam on the
    16  Lehigh River.
    17  Section 3.  Definitions.
    18     The following words and phrases when used in this act shall

     1  have the meanings given to them in this section unless the
     2  context clearly indicates otherwise:
     3     "Department."  The Department of Environmental Resources.
     4     "Hydroelectric facility."  The hydroelectric facility located
     5  at the Chain Dam, located in Northampton County on the Lehigh
     6  River.
     7  Section 4.  Leasing of hydroelectric facilities by the
     8                 department.
     9     (a)  Authority of department.--The department shall have the
    10  power to grant to any person, ON THE BASIS OF A COMPETITIVE BID   <--
    11  OR COMPETITIVE PROPOSAL PROCESS, a hydroelectric franchise and
    12  any necessary right-of-way or lease for the construction,
    13  operation and maintenance of a hydroelectric facility utilizing
    14  the lands, water rights or facilities of the Commonwealth at
    15  Chain Dam, Lehigh River, Northampton County. Any such grant
    16  affecting lands or facilities of the City of Easton shall be
    17  subject to the agreement and approval of the City of Easton. ANY  <--
    18  ROYALTIES OR LEASE PAYMENTS SHALL BE THE SUBJECT OF THE
    19  COMPETITIVE BID OR COMPETITIVE PROPOSAL PROCESS AND ESTABLISHED
    20  IN THE FRANCHISE CONTRACT OR AGREEMENT.
    21     (b)  Collections and deposit of charges, royalties, lease
    22  payments, etc.--All charges, royalties, lease payments and other
    23  revenues collected under the provisions of this section shall be
    24  paid into the State Treasury and shall be deposited in a
    25  restricted revenue account known as the Hydroelectric Resources
    26  Account. Funds deposited in this account shall be used solely
    27  for the planning, development, operation, maintenance, repair
    28  and restoration of the Chain Dam facility and the reacquisition
    29  of that facility following the expiration of the right granted
    30  for development and operation of that facility. The deposited
    19840H2470B3760                  - 2 -

     1  funds are hereby appropriated for these purposes.
     2  Section 5.  Effective date.
     3     This act shall take effect immediately.


















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