Hurt introduces bill to protect lake property owners from over regulation

Homeowners at Smith Mountain Lake could have a federal agency paying more attention to their property rights under a bill introduced in Congress Wednesday by Rep. Robert Hurt, R-5^th District.

The measure was inspired by conflicts between lakefront property owners and regulators, who in some cases have limited the owners’ dock-building plans or told people to tear up property they’ve improved.

Hurt proposed the Supporting Home Owner Rights Enforcement (SHORE) Act, which, if passed, would require the Federal Energy Regulatory Commission to take into account private-property ownership rights when issuing and enforcing hydropower project licenses.

Currently, FERC is not required to consider private-property matters when it issues or renews licenses for hydroelectric projects like the Smith Mountain-Leesville Lake complex operated by Appalachian Power Co.

Hurt said his legislation would require FERC to consider “the private use and enjoyment of land.”   

Hurt’s measure would require APCO, when enforcing FERC rules, to “consider the benefit of private landownership to investment and increased tourism” when developers are building recreation resources on the lake, Hurt said.

APCO spokesman Todd Burns said the utility company hadn’t seen Hurt’s bill yet, “but we're interested to see it.”

Enforcement of the measure probably would be left to the court system, Hurt said.

Sen. Roy Blunt, R-Mo., has filed a similar bill concerning FERC regulations on the Lake of the Ozarks, Hurt said.

Jody Lyons, a developer who owns a home on Smith Mountain Lake, said APCO enforcement of FERC rules has reduced the home’s value by $250,000.   

Lyons said he has a lawsuit pending before the 4^th U.S. Circuit Court of Appeals that would force FERC to reconsider its impact on his property. At issue is a dock Lyons said he built smaller than the plans APCO had approved.

“My case is just one of many,” said Lyons, whose real-estate business markets property in Downtown Moneta, a commercial-residential development on Virginia 122 a few miles from the lake.

“I know people who have lost their life savings over regulation,” Lyons said.

Over-regulation of property rights prevents people from buying and selling homes, Lyons said.

Hurt said he developed his legislation after working with Bill Brush of Bedford County and Russ Johnson of Franklin County. 

Brush is head of CURB, an anti-regulation group in Bedford County, and Johnson leads a group known as the Tri-County Relicensing Committee, which tried to influence the relicensing process FERC completed in December 2009.