[Senate Report 112-58]
[From the U.S. Government Publishing Office]
Calendar No. 138
112th Congress Report
SENATE
1st Session 112-58
======================================================================
HOOVER POWER ALLOCATION ACT
_______
August 30 (legislative day, August 2), 2011.--Ordered to be printed
Filed, under authority of the order of the Senate of August 2, 2011
_______
Mr. Bingaman, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 519]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 519) to further allocate and expand the
availability of hydroelectric power generated at Hoover Dam,
and for other purposes, having considered the same, reports
favorably thereon with amendments and recommends that the bill,
as amended, do pass.
The amendments are as follows:
1. On page 8, line 21, strike ``redesignated as'' and insert
``redesignated by''.
2. On page 9, strike lines 4 and 5 and insert the following:
(A) by striking ``any'' each place it appears and
inserting ``each'';
3. On page 9, line 14, strike ``Subdivision E of the
Criteria'' and insert ``Subdivision C of the Conformed
Criteria''.
4. On page 9, line 22, strike ``redesignated as'' and insert
``redesignated by''.
Purpose
The purpose of S. 519 is to further allocate and expand the
availability of hydroelectric power generated at Hoover Dam.
Background and Need
The Boulder Canyon Project Act of 1928 (Public Law 70-642)
authorized the Secretary of the Interior, among other things,
to construct Hoover Dam and enter into contracts for the sale
of power generated at the dam. In 1984, Congress enacted the
Hoover Power Plant Act (Public Law 98-381) and, among other
things, authorized the Secretary of Energy to allocate power
produced at the dam. The 1984 act recognizes three categories
of power allocations, referred to as Schedules A, B, and C.
``Schedule A'' authorizes contracts to: Metropolitan Water
District of Southern California; California cities of Los
Angeles, Glendale, Pasadena, and Burbank; Southern California
Edison Company; Arizona Power Authority; Colorado River
Commission of Nevada; and the City of Boulder City, Nevada.
These contractors represent the original contractors for power
from Hoover Dam.
``Schedule B'' authorizes contracts to: the southern
California cities of Glendale, Pasadena, Burbank, Anaheim,
Azusa, Banning, Colton, Riverside, and Vernon, as well as the
States of Arizona and Nevada.
``Schedule C'' allocates excess power production, if any,
to the States of California, Arizona, and Nevada.
The current power contracts were signed in 1987, and will
expire in 2017. The approximate percentage of power delivered
to each state is: 23.4 percent to Nevada; 19 percent to
Arizona; and 57.6 percent to California.
On November 20, 2009, the Western Area Power Administration
(WAPA) published notice in the Federal Register of its intent
to administratively allocate the power supply from Hoover Dam
through its existing power marketing procedures. On April 27,
2011, WAPA issued another Federal Register notice of its
administrative allocation proposal indicating that the proposal
would take effect on May 27, 2011. Due to concerns from the
existing contractors, WAPA has agreed to extend the effective
date of its decision to December 13, 2011. WAPA's
administrative proposal includes terms that are inconsistent
with S. 519, including proposed contract terms of 30 years as
opposed to 50 years. Existing contractors from Arizona,
California, and Nevada have voiced objections to WAPA's
proposed actions because the allocations are contrary to the
allocations proposed in S. 519 and would otherwise circumvent
the traditional role of Congress in allocating the power from
Hoover Dam. S. 519 is needed to implement the agreement reached
by the existing contractors.
S. 519 allocates hydroelectric power generated at Hoover
Dam to current power customers in Arizona, Nevada, and
California in accordance with revised Schedules A, B, and C and
creates a new pool of ``Schedule D'' power to be allocated to
Indian tribes and other new entities. Two-thirds of the
Scheduled D pool will be allocated in accordance with
procedures developed by the Western Area Power Administration
and the remaining one-third will be allocated in equal shares
by the Arizona Power Authority for new contractors in Arizona,
the Colorado River Commission of Nevada for new contractors in
Nevada, and the Western Area Power Administration for new
contractors in California.
Legislative History
Senator Reid introduced S. 519 on March 9, 2011. The bill
is co-sponsored by Senators Boxer, Ensign, Feinstein, and
Heller. The Subcommittee on Water and Power of the Committee on
Energy and Natural Resources held a hearing on S. 519 on May
19, 2011, and considered the bill and adopted technical
amendments to the bill at its business meeting on July 14,
2011. The Committee ordered S. 519 favorably reported, as
amended, at its business meeting on July 14, 2011.
During the 111th Congress, the Committee considered similar
legislation, S. 2891, sponsored by Senator Reid. The
Subcommittee on Water and Power held a hearing on H.R. 4349 and
S. 2891 on June 9, 2010 (S. Hrg. 111-707) and the Committee
ordered H.R. 4349 favorably reported without amendment on July
21, 2010 (S. Rpt. 111-329). A companion measure H.R. 4349,
sponsored by Representative Napolitano, passed the House of
Representatives by voice vote on June 8, 2010.
Committee Recommendation
The Senate Committee on Energy and Natural Resources, in
open business session on July 14, 2011, by voice vote of a
quorum present, recommends that the Senate pass S. 519, as
amended as described herein.
Committee Amendment
During its consideration of S. 519, the Committee adopted
four technical amendments to the bill.
Section-by-Section Analysis
Section 1 contains the short title for the bill.
Subsection 2(a-c) amends section 105(a)(1) of the Hoover
Power Plant Act of 1984 (43 U.S.C. 619a) (Hoover Power Act) by
specifying that the new contracts for the allocation of power
as provided in Schedules A, B, and C shall commence on October
1, 2017. Section 2 also designates specific, revised
allocations to the existing contractors and States.
Subsection (d) amends section 105(a) of the Hoover Power
Act by adding a new subsection that establishes a new
contingent capacity and firm energy pool designated as Schedule
D for delivery beginning on October 1, 2017. Section 2(d) also
specifies that the Western Area Power Administration (Western)
shall allocate 66.7 percent of the Schedule D contingent
capacity and firm energy to new entities or Indian tribes
within 36 months of enactment of this Act. Within 1 year of
enactment, the Secretary of Energy shall make 33.3 percent of
the Schedule D contingent capacity and firm energy in equal
allocations, available for delivery commencing October 1, 2017
to the Arizona Power Authority for new allottees in the State
of Arizona; the Colorado River Commission of Nevada for new
allottees in the State of Nevada; and Western for new allottees
with the State of California, provided that Western shall have
thirty-six months to complete such allocation. New Schedule D
contractors must execute the Boulder Canyon Project
Implementation Agreement. Contracts must also include a
provision requiring new contractors to pay a proportionate
share of their State's contribution to the cost of the Lower
Colorado River Multi-Species Conservation Program. Any of the
66.7 percent of the Schedule D contingent capacity and firm
energy that is not allocated and placed under contract by
October 1, 2017 will be returned in the same proportion to the
contractors in Schedule A and Schedule B. Any of the 33.3
percent of Schedule D contingent capacity and firm energy that
is to be distributed within the States of Arizona, Nevada, and
California that is not allocated and placed under contract by
October 1, 2017, shall be returned to the Schedule A and
Schedule B contractors within the State in which the Schedule D
contingent capacity and firm energy were to be distributed.
Subsections (e-f) make technical and conforming changes to
the Hoover Power Act.
Subsection (g) amends the Hoover Power Act to specify the
expiration date for the new allocation contracts as September
30, 2067. Western is also authorized and required to collect a
pro rata share of Hoover Dam repayable advances from new
allottees prior to October 1, 2017. Further, transactions with
an independent system operator are permitted.
Subsection (h) amends section 105(b) of the Hoover Power
Act to change the year ``2017'' to ``2067''.
Subsection (i) amends section 105(c) of the Hoover Power
Act to specify the procedures the Secretary of Energy is to
follow in order to make available the contingent capacity and
firm energy if an existing contractor fails to accept an
offered contract.
Subsection (j) amends the Hoover Power Act by stating that
the obligation of the Secretary of Energy to deliver contingent
capacity and firm energy is subject to the availability of the
water needed to produce the contingent capacity and firm
energy.
Subsection (k) repeals sections 105(e) and 105(f) of the
Hoover Power Act.
Subsection (l) provides for continued congressional
oversight regarding the terms and conditions of the governing
contracts for power generated at Hoover Dam until September 30,
2067.
Subsections (m-n) make conforming changes to the Hoover
Power Act.
Section 3 sets forth the requirements for compliance with
the Statutory Pay-As-You-Go Act of 2010.
Cost and Budgetary Considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
S. 519--Hoover Power Allocation Act of 2011
S. 519 would update the statutory allocation of electric
power generated at the Hoover Dam among various users. The
current allocation expires at the end of fiscal year 2017. The
legislation would increase the amount of electricity to be
marketed by the Western Area Power Administration (WAPA) and
would allocate much of the dam's currently unallocated
electricity to Native American tribes and other entities. The
revised allocations would remain in effect from 2017 through
2067.
Enacting S. 519 would affect direct spending; therefore,
pay-as-you-go procedures apply. However, CBO estimates that the
net effects would be insignificant for each year. In the
absence of this legislation, CBO expects that WAPA would
allocate the electricity from Hoover Dam by regulation. We
estimate that any differences between the electricity
allocation under S. 519 and the allocations developed under
such regulations would have a negligible effect on offsetting
receipts (a credit against direct spending) from electricity
sales because the agency is required by law to keep electric
rates as low as possible while recovering all costs of
generation and marketing over time. CBO also estimates that
implementing the bill would have no significant impact on
WAPA's administrative costs, which are funded by appropriations
and offset by proceeds from the sale of electricity. Enacting
this bill would not affect revenues.
S. 519 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 June 20, 2011, CBO transmitted a cost estimate for H.R.
470, the Hoover Power Allocation Act of 2011, as ordered
reported by the House Committee on Natural Resources on June
15, 2011. The two pieces of legislation are similar, and CBO
cost estimates are the same.
The CBO staff contact for this estimate is Kathleen Gramp.
The estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 519.
The bill is not a regulatory measure in the sense of
imposing Government-established standards or significant
economic responsibilities on private individuals and
businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 519, as ordered reported.
Congressionally Directed Spending
S. 519, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
Executive Communications
The testimony provided by the Department of Energy, at the
May 19, 2011, Subcommittee on Water and Power hearing on S. 519
follows:
Statement of Darrick Moe, Regional Manager of the Desert Southwest
Region, Western Area Power Administration, Department of Energy
Madam Chairwoman and members of the Subcommittee, I am
Darrick Moe, Regional Manager of the Desert Southwest Region,
speaking on behalf of Timothy J. Meeks, the Administrator of
the Department of Energy's Western Area Power Administration
(Western). I am pleased to be here today to discuss S. 519, the
Hoover Power Allocation Act of 2011. This legislation seeks to
amend the Hoover Power Plant Act of 1984. The legislation
proposes revised allocations of the generation capacity and
energy from the Hoover Dam power plant, a feature of the
Boulder Canyon Project (BCP), after the existing contracts
expire on September 30, 2017.
Western's mission is to market and deliver reliable,
renewable, cost-based hydroelectric power from facilities such
as Hoover Dam. Hoover Dam was authorized and constructed in
accordance with the Boulder Canyon Project Act of 1928.
Pursuant to this Act, the Secretary of the Interior was
authorized to contract for the sale of generation based upon
general regulations as he may prescribe. Subsequent power sales
contracts were executed that committed Hoover power through May
31, 1987. With the passage of the Hoover Power Plant Act of
1984, Congress authorized the Secretary of the Interior to
implement an uprating program, which increased the generation
capacity of the Hoover Dam facilities, to make additional
facility modifications, and to resolve issues over the
disposition of Hoover power, post-1987. Western proceeded to
market Hoover Dam power and entered into 30-year term contracts
with the current Hoover contractors in accordance with the
Hoover Power Plant Act of 1984, and Western's Conformed General
Consolidated Power Marketing Criteria. This process resulted in
the allocation of 1,951 megawatts of contingent capacity with
an associated 4,527,001 megawatt-hours of firm energy.
Contingent capacity is capacity that is available on an as-
available basis, while the firm energy entails Western's
assurance to deliver.
The Hoover power plant is a significant Federal
hydroelectric power resource in the Desert Southwest with a
maximum rated capacity of 2,074 megawatts. Under existing
Federal law and policy, Western markets Hoover power at cost.
Hoover power is hydropower and is considered ``clean energy''
with a minimal carbon footprint. The Hoover Dam power plant is
able to ramp up and down rapidly and is used by contractors for
various power-related ancillary services. For these reasons,
Hoover power is an extremely valuable resource for power
contractors in the southwestern United States.
The existing power sales contracts between Western and the
contractors will expire on September 30, 2017. As this
expiration date becomes more prominent on the planning horizon,
efforts have progressed among both Federal and non-Federal
sectors to determine the allocation of Hoover Dam power after
2017.
In accordance with policy and existing Federal law,
Western's post-2017 power allocation effort comprises a series
of proposals introduced to the public through public
information forums and public comment forums. Western makes
policy decisions only after all interested parties have been
provided ample opportunity to be engaged in the process and
public input has been carefully considered to develop new
Hoover Dam allocations that are in the public's best interest
and provide widespread use of this Federal resource.
Western's public process to allocate Hoover Dam electricity
was initiated on November 20, 2009, in a Federal Register
notice that proposed several key aspects of the allocating
effort. Among other things, this Federal Register notice
proposed the application of Western's Power Marketing
Initiative (PMI) developed under the Energy Planning and
Management Program (EPAMP), the extension of a major percentage
of the marketable resource to existing contractors, reservation
of an approximate 5% resource pool to be allocated to eligible
contractors, and provision of 30-year contract terms. Western
conducted three public information forums from December 1-3,
2009. These public information forums were well attended by
current customers and interested parties, including Native
American tribes, and engaged the attendees through question and
answer sessions. Public comment forums were held from January
19-21, 2010. All interested parties were provided an
opportunity to submit comments related to Western's proposals
contained in the November 20, 2009 Federal Register notice.
After considering comments received, in an April 16, 2010
Federal Register notice, Western extended the comment period
from January 29, 2010, to September 30, 2010. This extension
provided interested parties additional time to submit comments
and allowed Western to consult with tribes to inform them of
the remarketing process.
After considering comments received, Western announced in
an April 27, 2011 Federal Register notice its decision to apply
its EPAMP PMI to the BCP remarketing effort. The PMI has been
applied to all of Western's remarketing efforts since it was
announced as a final rule in 1995 following a four-year public
process. Application of the PMI to the BCP expressly protects
and reserves a major portion of the existing customers'
allocations while also providing potential customers, such as
tribal governments and other eligible customers, an opportunity
to acquire an allocation. The PMI has historically provided a
balancing of the needs of the existing customers with those of
prospective customers. Western also decided on a 30-year
contract term to achieve a balance between resource certainty
and providing for an allocation opportunity for future
customers at an appropriate time. Finally, Western also made
additional proposals and is seeking further comments on the
amount of marketable contingent capacity and firm energy, the
size of the resource pool to be created for new customers, and
excess energy provisions. As described in the Federal Register
notice, a public information and comment forum was established
for all interested parties to provide written and oral comments
on these proposals. The comment period for these proposals was
initially set to close June 16, 2011.
Western is currently in the process of publishing a Federal
Register notice that will extend the close of the comment
period established in the April 27, 2011 notice to September 1,
2011. This Federal Register notice will also extend the
effective date of the decisions announced in the April 27, 2011
notice to December 31, 2011. Western is also rescheduling the
public information and comment forums for later this year. This
extension provides additional time for on-going legislative
activities, as well as additional opportunity for interested
parties, including Native American Tribes, to consult with
Western and comment on the proposals.
There are numerous steps ahead in the administrative
process. Western currently projects that this process will be
completed with finalized contracts in the spring of 2015. It is
important that the process be finalized well in advance of 2017
to provide customers the time to balance their energy
portfolios and make required transmission arrangements, and to
allow related state agencies time to carry out their
allocations process.
Western has reviewed S. 519. There are several similarities
between the draft legislation and Western's proposals, and
there are some departures. To provide background that may be
useful to the Subcommittee members as this bill is considered,
I'll address some of these differences in my comments.
All of Western's allocation efforts are open to public
participation and conducted in accordance with the
Administrative Procedure Act. At each stage of the process,
Western proposes actions and/or policy to be considered and is
open for public comment and input. Western believes soliciting
and integrating public input into policy decisions allows
Western to develop results that are in the public's best
interest and lead to the most widespread use of this resource.
Western has 15 current contractors who receive an
allocation of Hoover power. Two of those existing contractors
are the Colorado River Commission (CRC) and the Arizona Power
Authority (APA). CRC and APA sub-allocate their Hoover power to
customers under prescribed guidelines and regulations. Both S.
519 and Western's administrative effort propose an amount of
resource to be allocated to new customers, including Native
American Tribes. S. 519 proposes certain quantities to be
allocated to APA and CRC for their disposition to new
customers. While it is anticipated that new customers to APA
and CRC could result from this effort, Western's process
affords the opportunity to fully seek public input and assures
all interested parties are considered in the power's
disposition.
Western has received numerous written comments and
statements from Native American tribes expressing concern that
their interests have not yet been fully vetted and considered.
In recent years, tribes have been active in Western's
remarketing efforts, and one goal of Western's Strategic Plan
is to seek partnerships with tribes on numerous initiatives. I
believe that soliciting input from tribes and other entities
that do not already have an allocation of Hoover power is in
the public interest. Western has reached out to tribes
specifically in this remarketing effort through letters, phone
calls, meetings, site visits, and consultations.
S. 519 would direct that Hoover's full maximum rating of
2,074 megawatts of capacity be allocated to Hoover customers in
a multi-faceted approach. As described in Western's April 27,
2011 Federal Register notice, we propose to market 2,044
megawatts of contingent capacity; 30 megawatts below the
maximum rating. Retention of project capacity to support the
reliability of the Federal electric system is relatively common
among the Power Marketing Administrations. Western is currently
able to utilize Hoover Dam capacity that is available in excess
of 1,951 megawatts. The preservation of 30 megawatts of
contingent Hoover Dam capacity for use by Western for project
integration purposes should provide the tools we need to meet
our mission and statutory requirement of delivering reliable
Federal hydro-generation. Western manages multiple federally
owned generation and transmission projects in the Desert
Southwest on a minute-by-minute basis 24 hours a day. While
these projects are financially segregated, they are operated as
an integrated system. This 30-megawatt capacity to be held by
the Federal Government would provide significant benefit to the
operation of the integrated projects and the Western Area Lower
Colorado balancing authority that Western operates. Retaining
30 megawatts would also likely allow our Hoover Dam power
customers to experience cost-neutral conditions. Should Western
be unable to retain approximately 30 megawatts, we would expect
to procure replacement power from the market at a higher cost,
if it is available. These higher costs would in turn need to be
passed through to Western customers in the form of higher
rates.
S. 519 expressly requires that each contract offered to a
new allottee for Hoover Dam power should require the new
allottee to execute the Boulder Canyon Project Implementation
Agreement. Western finds significant value in the provisions
and results of the Implementation Agreement. However, this
agreement was jointly constructed between Western and our
customers for unique circumstances that existed in 1994. Should
this requirement be retained, the current Implementation
Agreement would need to be evaluated and potentially revised to
accommodate current conditions. We support the universal
benefits achieved by the Implementation Agreement and will work
with our customers to determine the appropriate documentation
to meet all of our customers' needs; both current and future.
S. 519 expressly requires that each contract offered to a
new allottee for Hoover Dam power includes a provision
requiring the new allottee to pay a proportional share of its
State's funding contribution for the Lower Colorado River
Multi-Species Conservation Program, known as the LCR MSCP. The
LCR MSCP is a 50-year, multi-stakeholder, Federal and non-
Federal partnership, responding to the need to balance the use
of lower Colorado River water resources and the conservation of
native species and their habitats in compliance with the
Endangered Species Act (ESA). The LCR MSCP is a comprehensive
approach to species protection developed after nearly a decade
of work. This program is funded on a cost-share basis comprised
of 50-percent Federal and 50-percent non-Federal. The states of
Arizona, California and Nevada have worked internally with
water and power customers to fund each state's respective
share. S. 519 recognizes these funding requirements and
obligates new power customers to contribute to this funding in
a proportional manner. Supporters of S. 519 note that the 50-
year obligation of the LCR MSCP is, in part, reason to proceed
with 50-year Hoover power supply contracts. Western continues
to review the LCR MSCP requirements in our administrative
process. However, Western's position is that the 50-year LCR
MSCP term need not coincide with the Hoover Dam power sales
contracts' term. The adoption of a 50-year contract term, as
opposed to Western's decision to apply 30-year contract terms,
could potentially exclude evolving classes of customers in
decades to come. The modern day electrical industry is dynamic
in its regulations, technologies, operations and participants.
Western notes that we currently provide Federal hydropower
allocations to 87 federally recognized Native American tribes.
Many of these tribal customers are new to Western in the last
20 years. The landscape of potential customers in decades to
come has the capability to yield new Hoover customers, as we
strive to meet the needs of all our customers; existing and
future.
As drafted, S. 519 states that Subdivision E of the General
Consolidated Power Marketing Criteria or Regulations for
Boulder City Area Projects published in the Federal Register on
December 28, 1984, (Criteria) shall be deemed to have been
modified to conform to this legislation. Western would like to
refine this statement as Western's December 28, 1984, Federal
Register notice is more precisely titled Conformed General
Consolidated Power Marketing Criteria or Regulations for
Boulder City Area Projects (Conformed Criteria). Western
published the Criteria on May 9, 1983, which was in need of
conformance per the Hoover Power Plant Act of 1984. Pursuant to
the Hoover Power Plant Act of 1984, Western conformed the 1983
Criteria in its December 28, 1984, Federal Register notice. In
doing so, the pertinent section is now Subdivision C of the
Conformed Criteria. If S. 519 is to move forward, edits would
be needed to refer to Subdivision C Western's Conformed
Criteria and not Subdivision E of the Criteria.
Western respectfully recognizes that our administrative
process is not the exclusive means of allocating Hoover power.
I would welcome the opportunity to work with this Subcommittee
to address the technical concerns I have raised and to ensure
the widespread use of this valuable resource as work continues
on this legislation. In the absence of congressional action,
Western will uphold our authority and responsibility to market
Hoover power consistent with historical statutes and in concert
with the rules and regulations as the Secretary of Energy
prescribes.
This concludes my prepared remarks and I would be pleased
to answer any questions you or members of the Subcommittee
might have.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill H.R. 4349, as ordered reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italic, existing law in
which no change is proposed is shown in roman):
THE HOOVER POWER PLANT ACT OF 1984
Public Law 98-381, as Amended
AN ACT To authorize the Secretary of the Interior to construct,
operate, and maintain certain facilities at Hoover Dam, and for other
purposes.
* * * * * * *
TITLE I
* * * * * * *
Sec. 105. (a)(1) The Secretary of Energy shall offer:
(A) To each contractor for power generated at Hoover
Dam a [renewal] contract for delivery commencing [June
1, 1987] October 1, 2017, of the amount of capacity and
firm energy specified for that contractor in the
following table:
[SCHEDULE A
Long Term Contingent Capacity and Associated Firm Energy Reserved for Renewal Contract Offers to Current Boulder
Canyon Project Contractors
----------------------------------------------------------------------------------------------------------------
Contingent Firm energy (thousands of kWh)
Contractor capacity --------------------------------------
(kW) Summer Winter Total
----------------------------------------------------------------------------------------------------------------
Metropolitan Water District of Southern California........... 247,500 904,382 387,592 1,291,974
City of Los Angeles.......................................... 490,875 488,535 209,658 698,193
Southern California Edison Company........................... 277,500 175,486 75,208 260,694
City of Glendale............................................. 18,000 47,398 20,313 67,711
City of Pasadena............................................. 11,000 40,655 17,424 58,079
City of Burbank.............................................. 5,125 14,811 6,347 21,158
Arizona Power Authority...................................... 189,000 452,192 193,797 645,989
Colorado River Commission of Nevada.......................... 189,000 452,192 193,797 645,989
United States, for Boulder City.............................. 20,000 56,000 24,000 80,000
--------------------------------------------------
--------------------------------------------------
Totals....................................................... 1,448,000 2,631,651 1,128,136 3,759,787]
----------------------------------------------------------------------------------------------------------------
Schedule A
Long-term Schedule A contingent capacity and associated firm energy for offers of contracts to Boulder Canyon
project contractors
----------------------------------------------------------------------------------------------------------------
Contingent Firm energy (thousands of kWh)
Contractor capacity --------------------------------------
(kW) Summer Winter Total
----------------------------------------------------------------------------------------------------------------
Metropolitan Water District of Southern California........... 249,948 859,163 368,212 1,227,375
City of Los Angeles.......................................... 495,732 464,108 199,175 663,283
Southern California Edison Company........................... 280,245 166,712 71,448 238,160
City of Glendale............................................. 18,178 45,028 19,297 64,325
City of Pasadena............................................. 11,108 38,622 16,553 55,175
City of Burbank.............................................. 5,176 14,070 6,030 20,100
Arizona Power Authority...................................... 190,869 429,582 184,107 613,689
Colorado River Commission of Nevada.......................... 190,869 429,582 184,107 613,689
United States, for Boulder City.............................. 20,198 53,200 22,800 76,000
--------------------------------------------------
--------------------------------------------------
Totals....................................................... 1,462,323 2,500,067 1,071,729 3,571,796
----------------------------------------------------------------------------------------------------------------
[(B) To purchasers in the States of Arizona, Nevada
and California eligible to enter into such contracts
under section 5 of the Boulder Canyon Project Act,
contracts for delivery commencing June 1, 1987, or as
it thereafter becomes available, of capacity resulting
from the uprating program and for delivery commencing
June 1, 1987, of associated firm energy as specified in
the following table:
[Schedule B
Contingent Capacity Resulting From the Uprating Program and Associated Firm Energy
----------------------------------------------------------------------------------------------------------------
Contingent Firm energy (thousands of kWh)
State capacity --------------------------------------
(kW) Summer Winter Total
----------------------------------------------------------------------------------------------------------------
Arizona...................................................... 188,000 148,000 64,000 212,000
California................................................... 127,000 99,850 43,364 143,214
Nevada....................................................... 188,000 288,000 124,000 412,000
--------------------------------------------------
Totals....................................................... 503,000 535,850 231,364 767,214
----------------------------------------------------------------------------------------------------------------
Provided, however, That in the case of Arizona and Nevada, such
contracts shall be offered to the Arizona Power Authority and
the Colorado River Commission of Nevada, respectively, as the
agency specified by State law as the agent of such State for
purchasing power from the Boulder Canyon project: Provided
further, That in the case of California, no such contract under
this subparagraph (B) shall be offered to any purchaser who is
offered a contract for capacity exceeding 20,000 kilowatts
under subparagraph (A) of this paragraph.]
(B) To each existing contractor for power generated
at Hoover Dam, a contract, for delivery commencing
October 1, 2017, of the amount of contingent capacity
and firm energy specified for that contractor in the
following table:
Schedule B
Long-term Schedule B contingent capacity and associated firm energy for offers of contracts to Boulder Canyon
project contractors
----------------------------------------------------------------------------------------------------------------
Contingent Firm energy (thousands of kWh)
Contractor capacity --------------------------------------
(kW) Summer Winter Total
----------------------------------------------------------------------------------------------------------------
City of Glendale............................................. 2,020 2,749 1,194 3,943
City of Pasadena............................................. 9,089 2,399 1,041 3,440
City of Burbank.............................................. 15,149 3,604 1,566 5,170
City of Anaheim.............................................. 40,396 34,442 14,958 49,400
City of Azusa................................................ 4,039 3,312 1,438 4,750
City of Banning.............................................. 2,020 1,324 576 1,900
City of Colton............................................... 3,030 2,650 1,150 3,800
City of Riverside............................................ 30,296 25,831 11,219 37,050
City of Vernon............................................... 22,218 18,546 8,054 26,600
Arizona...................................................... 189,860 140,600 60,800 201,400
Nevada....................................................... 189,860 273,600 117,800 391,400
--------------------------------------------------
Totals....................................................... 507,977 509,057 219,796 728,853
----------------------------------------------------------------------------------------------------------------
(C) To the Arizona Power Authority and the Colorado
River Commission of Nevada and to purchasers in the
State of California eligible to enter into such
contracts under section 5 of the Boulder Canyon Project
Act, contracts for delivery commencing [June 1, 1987]
October 1, 2017, of such energy generated at Hoover Dam
as is available respectively to the States of Arizona,
Nevada, and California in excess of 4,501.001 million
kilowatthours in any year of operation (hereinafter
called excess energy) in accordance with the following
table:
[SCHEDULE C
Excess Energy
------------------------------------------------------------------------
Priority of entitlement to excess energy State
------------------------------------------------------------------------
First: Meeting Arizona's first priority Arizona
right to delivery of excess energy which
is equal in each year of operation to
200 million kilowatthours: Provided,
however That in the event excess energy
in the amount of 200 million
kilowatthours is not generated during
any year of operation, Arizona shall
accumulate a first right to delivery of
excess energy subsequently generated in
an amount not to exceed 600 million
kilowatthours, inclusive of the current
year's 200 million kilowatthours. Said
first right of delivery shall accrue at
a rate of 200 million kilowatthours per
year for each year excess energy in an
amount of 200 million kilowatthours is
not generated, less amounts of excess
energy delivered.
Second: Meeting Hoover Dam contractual
obligations under Schedule A of
subsection 105(a)(1)(A) and under
Schedule B of subsection 105(a)(1)(B)
not exceeding 26 million kilowatthours
in each year of operation.
Third: Meeting the energy requirements of Arizona, Nevada, and
the three States, such available excess California]
energy to be divided equally among the
States.
------------------------------------------------------------------------
Schedule C
Excess Energy
------------------------------------------------------------------------
Priority of entitlement to excess energy State
------------------------------------------------------------------------
First: Meeting Arizona's first priority Arizona
right to delivery of excess energy which
is equal in each year of operation to
200 million kilowatthours: Provided,
That in the event excess energy in the
amount of 200 million kilowatthours is
not generated during any year of
operation, Arizona shall accumulate a
first right to delivery of excess energy
subsequently generated in an amount not
to exceed 600 million kilowatthours,
inclusive of the current year's 200
million kilowatthours. Said first right
of delivery shall accrue at a rate of
200 million kilowatthours per year for
each year excess energy in an amount of
200 million kilowatthours is not
generated, less amounts of excess energy
delivered.
Second: Meeting Hoover Dam contractual Arizona, Nevada, and
obligations under Schedule A of California
subsection (a)(1)(A), under Schedule B
of subsection (a)(1)(B), and under
Schedule D of subsection (a)(2), not
exceeding 26 million kilowatthours in
each year of operation.
Third: Meeting the energy requirements of Arizona, Nevada, and
the three States, such available excess California
energy to be divided equally among the
States.
------------------------------------------------------------------------
(2)(A) The Secretary of Energy is authorized to and shall
create from the apportioned allocation of contingent capacity
and firm energy adjusted from the amounts authorized in this
Act in 1984 to the amounts shown in Schedule A and Schedule B,
as modified by the Hoover Power Allocation Act of 2011, a
resource pool equal to 5 percent of the full rated capacity of
2,074,000 kilowatts, and associated firm energy, as shown in
Schedule D (referred to in this section as ``Schedule D
contingent capacity and firm energy''):
Schedule D
Long-term Schedule D resource pool of contingent capacity and associated firm energy for new allottees
----------------------------------------------------------------------------------------------------------------
Contingent Firm energy (thousands of kWh)
State capacity --------------------------------------
(kW) Summer Winter Total
----------------------------------------------------------------------------------------------------------------
New Entities Allocated by the Secretary of Energy............ 69,170 105,637 45,376 151,013
New Entities Allocated by State..............................
Arizona...................................................... 11,510 17,580 7,533 25,113
California................................................... 11,510 17,580 7,533 25,113
Nevada....................................................... 11,510 17,580 7,533 25,113
--------------------------------------------------
Totals....................................................... 103,700 158,377 67,975 226,352
----------------------------------------------------------------------------------------------------------------
(B) The Secretary of Energy shall offer Schedule D
contingency capacity and firm energy to entities not receiving
contingent capacity and firm energy under subparagraphs (A) and
(B) of paragraph (1) (referred to in this section as ``new
allottees'') for delivery commencing October 1, 2017 pursuant
to this subsection. In this subsection, the term ``the
marketing area for the Boulder City Area Projects'' shall have
the same meaning as in appendix A of the General Consolidated
Power Marketing Criteria or Regulations for Boulder City Area
Projects published in the Federal Register on December 28, 1984
(49 Federal Register 50582 et seq.) (referred to in this
section as the ``Criteria'').
(C)(i) Within 36 months of the date of enactment of the
Hoover Power Allocation Act of 2011, the Secretary of Energy
shall allocate through the Western Area Power Administration
(referred to in this section as ``Western''), for delivery
commencing October 1, 2017, for use in the marketing area for
the Boulder City Area Projects 66.7 percent of the Schedule D
contingent capacity and firm energy to new allottees that are
located within the marketing area for the Boulder City Area
Projects and that are--
(I) eligible to enter into contracts under section 5
of the Boulder Canyon Project Act (43 U.S.C. 617d); or
(II) federally recognized Indian tribes.
(ii) In the case of Arizona and Nevada, Schedule D
contingent capacity and firm energy for new allottees other
than federally recognized Indian tribes shall be offered
through the Arizona Power Authority and the Colorado River
Commission of Nevada, respectively. Schedule D contingent
capacity and firm energy allocated to federally recognized
Indian tribes shall be contracted for directly with Western.
(D) Within 1 year of the date of enactment of the Hoover
Power Allocation Act of 2011, the Secretary of Energy also
shall allocate, for delivery commencing October 1, 2017, for
use in the marketing area for the Boulder City Area Projects
11.1 percent of the Schedule D contingent capacity and firm
energy to each of--
(i) the Arizona Power Authority for allocation to new
allottees in the State of Arizona;
(ii) the Colorado River Commission of Nevada for
allocation to new allottees in the State of Nevada; and
(iii) Western for allocation to new allottees within
the State of California, provided that Western shall
have 36 months to complete such allocation.
(E) Each contract offered pursuant to this subsection shall
include a provision requiring the new allottee to pay a
proportionate share of its State's respective contribution
(determined in accordance with each State's applicable funding
agreement) to the cost of the Lower Colorado River Multi-
Species Conservation Program (as defined in section 9401 of the
Omnibus Public Land Management Act of 2009 (Public Law 111-11;
123 Stat. 1327)), and to execute the Boulder Canyon Project
Implementation Agreement Contract No. 95-PAO-10616 (referred to
in this section as the ``Implementation Agreement'').
(F) Any of the 66.7 percent of Schedule D contingent
capacity and firm energy that is to be allocated by Western
that is not allocated and placed under contract by October 1,
2017, shall be returned to those contractors shown in Schedule
A and Schedule B in the same proportion as those contractors'
allocations of Schedule A and Schedule B contingent capacity
and firm energy. Any of the 33.3 percent of Schedule D
contingent capacity and firm energy that is to be distributed
within the States of Arizona, Nevada, and California that is
not allocated and placed under contract by October 1, 2017,
shall be returned to the Schedule A and Schedule B contractors
within the State in which the Schedule D contingent capacity
and firm energy were to be distributed, in the same proportion
as those contractors' allocations of Schedule A and Schedule B
contingent capacity and firm energy.
[(2)] (3) The total obligation of the Secretary of Energy
to deliver firm energy pursuant to [schedule A of section
105(a)(1)(A) and schedule B of section 105(a)(1)(B)] paragraphs
(1)(A), (1)(B), and (2) is 4,527.001 million kilowatthours in
each year of operation. To the extent that the actual
generation at Hoover Powerplant in [any] each year of operation
(less deliveries thereof to Arizona required by its first
priority under [schedule C] Schedule C of section 105(a)(1)(C)
whenever actual generation in [any] each year of operation is
in excess of 4,501.001 million kilowatthours is less than
4,527.001 million kilowatthours, such deficiency shall be borne
by the holders of contracts under said [schedules A and B]
Schedules A, B, and D in the ratio that the sum of the
quantities of firm energy to which each contractor is entitled
pursuant to said schedules bears to 4,527.001 million
kilowatthours. At the request of any such contractor, the
Secretary of Energy will purchase energy to meet that
contractor's deficiency at such contractor's expense.
[(3) Subdivision E of the ``General Consolidated Power
Marketing Criteria or Regulations for Boulder City Area
Projects'' published in the Federal Register May 9, 1983 (48
Federal Register commencing at 20881), hereinafter referred to
as the ``Criteria'' or as the ``Regulations'' shall be deemed
to have been modified to conform to this section. The Secretary
of Energy shall cause to be included in the Federal Register a
notice conforming the text of said Regulations to such
modifications.]
(4) Subdivision C of the Conformed Criteria shall be deemed
to have been modified to conform to this section, as modified
by the Hoover Power Allocation Act of 2011. The Secretary of
Energy shall cause to be included in the Federal Register a
notice conforming the text of the regulations to such
modifications.
[(4)] (5) Each contract offered under subsection (a)(1) of
this section shall:
[(A) expire September 30, 2017;]
(A) in accordance with section 5(a) of the Boulder
Canyon Project Act (43 U.S.C. 617d(a)), expire
September 30, 2067;
(B) not restrict use to which the capacity and energy
contracted for by the Metropolitan Water District of
Southern California may be placed within the State of
California: Provided, That to the extent practicable
and consistent with sound water management and
conservation practice, the Metropolitan Water District
of Southern California [shall use] shall allocate such
capacity and energy to pump available Colorado River
water prior to using such capacity and energy to pump
California State water project water; [and]
(C) conform to the applicable provisions of
subdivision E of the Criteria, commencing at 48 Federal
Register 20881, modified as provided in this section.
To the extent that said provisions of the Criteria, as
so modified, are applicable to contracts entered into
under this section, those provisions are hereby
ratified[.];
(D) authorize and require Western to collect from new
allottees a pro rata share of Hoover Dam repayable
advances paid for by contractors prior to October 1,
2017, and remit such amounts to the contractors that
paid such advances in proportion to the amounts paid by
such contractors as specified in section 6.4 of the
Implementation Agreement;
(E) permit transactions with an independent system
operator; and
(F) contain the same material terms included in
section 5.6 of those long-term contracts for purchases
from the Hoover Power Plant that were made in
accordance with this Act and are in existence on the
date of enactment of the Hoover Power Allocation Act of
2011.
(b) Nothing in the Criteria shall be construed to prejudice
any rights conferred by the Boulder Canyon Project Act, as
amended and supplemented, on the holder of a contract described
in subsection (a) of this section not in default thereunder on
September 30, [2017] 2067.
[(c)(1) The Secretary of Energy shall not execute a
contract described in subsection (a)(1)(A) of this section with
any entity which is a party to the action entitled the ``State
of Nevada, et al. against the United States of America, et
al.'' in the United States District Court for the District of
Nevada, case numbered CV LV '82 441 RDF, unless that entity
agrees to file in that action a stipulation for voluntary
dismissal with prejudice of its claims, or counterclaims, or
crossclaims, as the case may be, and also agrees to file with
the Secretary a document releasing the United States, its
officers and agents, and all other parties to that action who
join in that stipulation from any claims arising out of the
disposition under this section of capacity and energy from the
Boulder Canyon project. The Attorney General shall join on
behalf of the United States, its officers and agents, in any
such voluntary dismissal and shall have the authority to
approve on behalf of the United States the form of each
release.
[(2) If after a reasonable period of time as determined by
the Secretary, the Secretary is precluded from executing a
contract with an entity by reason of paragraph (1) of this
subsection, the Secretary shall offer the capacity and energy
thus available to other entities in the same State eligible to
enter into such contracts under section 5 of the Boulder Canyon
Project Act.
[(d) The uprating program authorized under section 101(a)
of this Act shall be undertaken with funds advanced under
contracts made with the Secretary of the Interior by non-
Federal purchasers described in subsection (a)(1)(B) of this
section. Funding provided by non-Federal purchasers shall be
advanced to the Secretary of the Interior pursuant to the terms
and conditions of such contracts.]
(c) Offer of Contract to Other Entities.--If any existing
contractor fails to accept an offered contract, the Secretary
of Energy shall offer the contingent capacity and firm energy
thus available first to other entities in the same State listed
in Schedule A and Schedule B, second to other entities listed
in Schedule A and Schedule B, third to other entities in the
same State which receive contingent capacity and firm energy
under subsection (a)(2) of this section, and last to other
entities which receive contingent capacity and firm energy
under subsection (a)(2) of this section.
(d) Water Availability.--Except with respect to energy
purchased at the request of an allottee pursuant to subsection
(a)(3), the obligation of the Secretary of Energy to deliver
contingent capacity and firm energy pursuant to contracts
entered into pursuant to this section shall be subject to
availability of the water needed to produce such contingent
capacity and firm energy. In the event that water is not
available to produce the contingent capacity and firm energy
set forth in Schedule A, Schedule B, and Schedule D, the
Secretary of Energy shall adjust the contingent capacity and
firm energy offered under those Schedules in the same
proportion as those contractors' allocations of Schedule A,
Schedule B, and Schedule D contingent capacity and firm energy
bears to the full rated contingent capacity and firm energy
obligations.
[(e) Notwithstanding any other provisions of the law, funds
advanced by non-Federal purchasers for use in the uprating
program shall be deposited in the Colorado River Dam Fund and
shall be available for the uprating program.
[(f) Those amounts advanced by non-Federal purchasers shall
be financially integrated as capital costs with other project
costs for rate-setting purposes, and shall be returned to those
purchasers advancing funds throughout the contract period
through credits which include interest costs incurred by such
purchasers for funds contributed to the Secretary of the
Interior for the uprating program.]
[(g)] (e) The provisions of this section constitute an
exercise by the Congress of the right reserved by it in section
5(b) of the Boulder Canyon Project Act, as amended and
supplemented, to prescribe terms and conditions for [the
renewal of] contracts for electrical energy generated at Hoover
Dam. This section constitutes the exclusive method for
disposing of capacity and energy from Hoover Dam for the period
beginning [June 1, 1987, and ending September 30, 2017] October
1, 2017, and ending September 30, 2067.
[(h)] (f)(1) Notwithstanding any other provision of law,
any claim that the provisions of subsection (a) of this section
violates any rights to capacity or energy from the Boulder
Canyon project is barred unless the complaint is filed within
one year after the date of enactment of [this Act] the Hoover
Power Allocation Act of 2011 in the United States Claims Court
which shall have exclusive jurisdiction over this action. Any
claim that actions taken by any administrative agency of the
United States violates any right under this title or the
Boulder Canyon Project Act or the Boulder Canyon Project
Adjustment Act is barred unless suit asserting such claim is
filed in a Federal court of competent jurisdiction within one
year after final refusal of such agency to correct the action
complained of.
* * * * * * *
[(i)] (g) It is the purpose of [subsections (c), (g), and
(h) of this section] this Act to ensure that the rights of
contractors for capacity and energy from the Boulder Canyon
project for the period beginning [June 1, 1987, and ending
September 30, 2017] October 1, 2017, and ending September 30,
2067, will vest with certainty and finality.
* * * * * * *