[House Report 111-502]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-502
======================================================================
HOOVER POWER ALLOCATION ACT OF 2010
_______
May 28, 2010.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Rahall, from the Committee on Natural Resources, submitted the
following
R E P O R T
[To accompany H.R. 4349]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred the
bill (H.R. 4349) to further allocate and expand the
availability of hydroelectric power generated at Hoover Dam,
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. SHORT TITLE.
This Act may be cited as the ``Hoover Power Allocation Act of 2010''.
SEC. 2. ALLOCATION OF CONTRACTS FOR POWER.
(a) Schedule A Power.--Section 105(a)(1)(A) of the Hoover Power Plant
Act of 1984 (43 U.S.C. 619a(a)(1)(A)) is amended--
(1) by striking ``renewal'';
(2) by striking ``June 1, 1987'' and inserting ``October 1,
2017''; and
(3) by striking Schedule A and inserting the following:
``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) Schedule B Power.--Section 105(a)(1)(B) of the Hoover Power Plant
Act of 1984 (43 U.S.C. 619a(a)(1)(B)) is amended to read as follows:
``(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) Schedule C Power.--Section 105(a)(1)(C) of the Hoover Power Plant
Act of 1984 (43 U.S.C. 619a(a)(1)(C)) is amended--
(1) by striking ``June 1, 1987'' and inserting ``October 1,
2017''; and
(2) by striking Schedule C and inserting the following:
``Schedule C
Excess Energy
----------------------------------------------------------------------------------------------------------------
Priority of entitlement to excess energy State
----------------------------------------------------------------------------------------------------------------
First: Meeting Arizona's first priority right to delivery Arizona
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 obligations under Arizona, Nevada, and California
Schedule A of 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 the three States, Arizona, Nevada, and California''.
such available excess energy to be divided equally among
the States................................................
----------------------------------------------------------------------------------------------------------------
(d) Schedule D Power.--Section 105(a) of the Hoover Power Plant Act
of 1984 (43 U.S.C. 619a(a)) is amended--
(1) by redesignating paragraphs (2), (3), and (4) as
paragraphs (3), (4), and (5), respectively; and
(2) by inserting after paragraph (1) the following:
``(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 2010, 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 2010, 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 2010, 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.''.
(e) Total Obligations.--Paragraph (3) of section 105(a) of the Hoover
Power Plant Act of 1984 (43 U.S.C. 619a(a)) (as redesignated as
subsection (d)(1)) is amended--
(1) in the first sentence, by striking ``schedule A of
section 105(a)(1)(A) and schedule B of section 105(a)(1)(B)''
and inserting ``paragraphs (1)(A), (1)(B), and (2)''; and
(2) in the second sentence--
(A) by striking ``any'' and inserting ``each'';
(B) by striking ``schedule C'' and inserting
``Schedule C''; and
(C) by striking ``schedules A and B'' and inserting
``Schedules A, B, and D''.
(f) Power Marketing Criteria.--Paragraph (4) of section 105(a) of the
Hoover Power Plant Act of 1984 (43 U.S.C. 619a(a)) (as redesignated as
subsection (d)(1)) is amended to read as follows:
``(4) Subdivision E of the Criteria shall be deemed to have been
modified to conform to this section, as modified by the Hoover Power
Allocation Act of 2010. The Secretary of Energy shall cause to be
included in the Federal Register a notice conforming the text of the
regulations to such modifications.''.
(g) Contract Terms.--Paragraph (5) of section 105(a) of the Hoover
Power Plant Act of 1984 (43 U.S.C. 619a(a)) (as redesignated as
subsection (d)(1)) is amended--
(1) by striking subparagraph (A) and inserting the following:
``(A) in accordance with section 5(a) of the Boulder Canyon
Project Act (43 U.S.C. 617d(a)), expire September 30, 2067;'';
(2) in the proviso of subparagraph (B)--
(A) by striking ``shall use'' and inserting ``shall
allocate''; and
(B) by striking ``and'' after the semicolon at the
end;
(3) in subparagraph (C), by striking the period at the end
and inserting a semicolon; and
(4) by adding at the end the following:
``(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 2010.''.
(h) Existing Rights.--Section 105(b) of the Hoover Power Plant Act of
1984 (43 U.S.C. 619a(b)) is amended by striking ``2017'' and inserting
``2067''.
(i) Offers.--Section 105(c) of the Hoover Power Plant Act of 1984 (43
U.S.C. 619a(c)) is amended to read as follows:
``(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.''.
(j) Availability of Water.--Section 105(d) of the Hoover Power Plant
Act of 1984 (43 U.S.C. 619a(d) is amended to read as follows:
``(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.''.
(k) Conforming Amendments.--Section 105 of the Hoover Power Plant Act
of 1984 (43 U.S.C. 619a) is amended--
(1) by striking subsections (e) and (f); and
(2) by redesignating subsections (g), (h), and (i) as
subsections (e), (f), and (g), respectively.
(l) Continued Congressional Oversight.--Subsection (e) of section 105
of the Hoover Power Plant Act of 1984 (43 U.S.C. 619a)) (as
redesignated by subsection (k)(2)) is amended--
(1) in the first sentence, by striking ``the renewal of'';
and
(2) in the second sentence, by striking ``June 1, 1987, and
ending September 30, 2017'' and inserting ``October 1, 2017,
and ending September 30, 2067''.
(m) Court Challenges.--Subsection (f)(1) of section 105 of the Hoover
Power Plant Act of 1984 (43 U.S.C. 619a) (as redesignated by subsection
(k)(2)) is amended in the first sentence by striking ``this Act'' and
inserting ``the Hoover Power Allocation Act of 2010''.
(n) Reaffirmation of Congressional Declaration of Purpose.--
Subsection (g) of section 105 of the Hoover Power Plant Act of 1984 (43
U.S.C. 619a) (as redesignated by subsection (k)(2)) is amended--
(1) by striking ``subsections (c), (g), and (h) of this
section'' and inserting ``this Act''; and
(2) by striking ``June 1, 1987, and ending September 30,
2017'' and inserting ``October 1, 2017, and ending September
30, 2067''.
Purpose of the Bill
The purpose of H.R. 4349 is to further allocate and expand
the availability of hydroelectric power generated at Hoover
Dam, and for other purposes.
Background and Need for Legislation
H.R. 4349 would allocate hydroelectric power generated at
Hoover Dam, on the Colorado River, to current power customers
in Arizona, Nevada, and California, and create a new pool of
power for federally-recognized Indian Tribes and other eligible
entities.
The Boulder Canyon Project Act of 1928 authorized the
construction of what is now called Hoover Dam. In addition to
authorizing the dam, the Boulder Canyon Act allocated power to
an original pool of customers which included public and private
entities in the Lower Colorado Basin states of Arizona, Nevada,
and California. The original contracts for power were executed
in 1937 and were valid for a 50-year time period.
As the original contracts were set to expire, Congress
reviewed the original Act and provided guidance on the revised
allocation of Hoover Dam power through the Hoover Power Plant
Act of 1984 (HPPA). The HPPA preserved power for the original
customers of Hoover power and provided the legal ability for
new entrants into the market for Hoover power. The original
customers had their allocations established in Schedule A while
the new entities that received power had their allocations
designated in Schedule B of the HPPA legislation. HPPA directed
that any power in excess of the total of Schedules A and B
would be allocated pursuant to Schedule C as negotiated between
the federal government and the Lower Colorado Basin states. The
HPPA of 1984 allocated power to customers for a 30-year period.
The 1984 power contract allocations are set to expire in 2017.
Committee Action
H.R. 4349 was introduced by Water and Power Subcommittee
Chairwoman Grace Napolitano (D-CA) on December 16, 2009. The
bill was referred to the Committee on Natural Resources, and
within the Committee to the Subcommittee on Water and Power.
The Subcommittee held a legislative hearing on H.R. 4349 on
March 18, 2010 and received testimony from federal and private
interests.
On May 5, 2010 the Subcommittee was discharged from further
consideration of H.R. 4349 and the full Natural Resources
Committee met to consider the bill. An amendment in the nature
of a substitute was offered by Rep. Napolitano to address the
issue of tribal sovereignty and consultation with the Western
Area Power Administration regarding criteria for the allocation
of power from the new Schedule D. The amendment in the nature
of a substitute was agreed to by voice vote. The bill, as
amended, was then ordered favorably reported to the House of
Representatives by voice vote.
Section-by-Section Analysis
Section 1. Short title; Table of Contents
Section 1 provides that this Act may be cited as the
``Hoover Power Allocation Act of 2010''.
Section 2. Allocation of contracts for power
Section 2(a) amends the Hoover Power Plant Act of 1984
(HPPA) to increase the Schedule A contingent capacity at Hoover
Dam proportionally based on the maximum dependable operating
capacity, and then reduces the Schedule A summer and winter
firm energy by 5% of the amount to be provided after October 1,
2017 to existing Schedule A contractors. In addition, this
section makes technical and conforming changes to the
underlying Act.
Section 2(b) amends the HPPA to increase the Schedule B
contingent capacity proportionally based on the maximum
dependable operating capacity, and then makes a 5% reduction in
summer and winter firm energy after October 1, 2017 to existing
Schedule B contractors. In addition, this section also makes
technical and conforming changes to the underlying Act.
Section 2(c) makes further technical and conforming changes
to the HPPA related to Schedule C.
Section 2(d) amends the HPPA by directing the Secretary of
Energy to create a new Schedule D from the apportioned
allocation equal to 5% of Schedules A and B of contingent
capacity and firm energy after October 1, 2017. This power will
be made available to new allottees that do not already receive
Schedule A or B contingent capacity and firm energy. Contracts
offered under Schedule D will include a provision requiring new
allottees to pay a proportionate share of their state's
contribution to the cost of the Lower Colorado River Multi-
Species Conservation Program, and a provision that would
require new allottees to execute the Boulder Canyon Project
Implementation Agreement Contract.
Section 2(d) also gives the Western Area Power
Administration (Western) 36 months from the date of enactment
to allocate the Schedule D contingent capacity. Any 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.
In testimony before the Subcommittee on March 18, 2010, the
Inter-Tribal Council of Arizona (ITCA) requested that H.R. 4349
be amended to allow federally recognized Indian tribes to
contract directly with Western for any power they may receive
and to develop allocation criteria in direct consultation with
Western. The Committee adopted an amendment that included those
changes in section 2(d)(C). ITCA further requested that H.R.
4349 be amended to direct Western to develop allocation
criteria to respond to tribal circumstances, including:
allowing a power pool for allocations to federally recognized
tribes; allocating power to tribes in kilowatts versus
megawatts; and, waiving the requirement that tribes have a
distribution utility. In their testimony ITCA stated that
Western has demonstrated both the ability and the willingness
to respond to such tribal circumstances in proceedings to
allocate power from other federal hydropower projects. The
Committee does not believe it is necessary to break
longstanding precedent by amending H.R. 4349 in this regard,
but encourages Western to work directly on a nation-to-nation
basis with tribes to manage their allocations of power from
Schedule D in a manner that recognizes the circumstances of
tribes that receive such allocations. The tribes will have the
right to enter into operational agreements with the states
after allocations are made by Western.
The Committee expects that Western and the state regulatory
bodies in Arizona and Nevada will conduct a full and open
public hearing and review process upon the enactment of this
legislation. The administrative process should fairly and
equitably determine allocations from the new power pool. With
the opportunity for rural electric cooperatives and other
entities to receive allocations from the new proposed Schedule
D, the Committee expects that the state regulatory bodies will
undertake an open, thorough and transparent assessment of the
relevant power requests of potential new Hoover power
recipients, including an assessment of the applicants' power
needs and the classes of customers they serve, and act in an
impartial and unbiased manner in order to make allocation
determinations in an objective manner consistent with state and
federal preference standards. The Committee further expects
that the process and analytical results will be documented and
made available for examination.
Section 2(e) and 2(f) make technical and conforming changes
to the HPPA to take into account other changes made by this
legislation.
Section 2(g) amends the HPPA to establish the expiration
date of the contract as September 30, 2067. This section
further directs Western to collect a pro-rata share of Hoover
Dam repayable advances from new allottees prior to October 1,
2017 and remit a proportional share of the advances to existing
Hoover contractors. Section 2(g) also authorizes Hoover
contractors to engage in transactions for Hoover power with
independent system operations and requireS the contracts
executed pursuant to this legislation to contain the same
material terms as Section 5.6 of the long-term contracts,
effective on the date of enactment.
Section 2(h) amends the HPPA to strike the date ``2017''
and insert the contract expiration year of ``2067''.
Section 2(i) amends the HPPA to establish a mechanism by
which the Secretary of Energy would offer the contingent
capacity and firm energy made available if an existing
contractor fails to accept an offered contract.
Section 2(j) amends the HPPA to state 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. Section
2(j) also directs the Secretary of Energy to adjust the
continent capacity and firm energy under Schedule A, B and D
proportionally if water is not available to produce contingent
capacity and firm energy.
Section 2(k) makes conforming changes in the HPPA by
repealing Sections 105(e) and (f).
Section 2(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.
Section 2(m) makes a conforming change to Section 105(h)(l)
of the HPPA.
Section 2(n) confirms that the rights of contractors to
capacity and energy would vest under the contracts through
September 30, 2067.
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.
Constitutional Authority Statement
Article I, section 8 of the Constitution of the United
States grants Congress the authority to enact this bill.
Compliance With House Rule XIII
1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(3)(B)
of that rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
2. Congressional Budget Act. As required by clause 3(c)(2)
of rule XIII of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, this
bill does not contain any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
3. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of H.R. 4349 is to allocate and expand the
availability of hydroelectric power generated at Hoover Dam.
4. Congressional Budget Office Cost Estimate. Under clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 403 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for this bill from the Director of the Congressional Budget
Office:
H.R. 4349--Hoover Power Allocation Act of 2010
H.R. 4349 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 Indian tribes and other
entities. The revised allocations would remain in effect from
2017 through 2067. Based on information from WAPA, CBO
estimates that implementing this bill would have a negligible
effect on net direct spending and spending subject to
appropriation.
In the absence of this legislation, CBO expects that WAPA
would allocate the electricity from the Hoover Dam by
regulation. CBO estimates that any differences between the
electricity allocation under H.R. 4349 and the allocations
developed under such regulations would have a negligible effect
on offsetting receipts (an offset to 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.
The Statutory Pay-As-You-Go Act of 2010 establishes budget
reporting and enforcement procedures for legislation affecting
direct spending or revenues. The net changes in outlays that
are subject to those pay-as-you-go procedures are shown in the
following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4349 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON MAY 5, 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------------------------------------------------------
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010-2015 2010-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact....................... 0 0 0 0 0 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------------------------------------------------------------
H.R. 4349 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.
The CBO staff contact for this estimate is Kathleen Gramp.
The estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Compliance With Public Law 104-4
This bill contains no unfunded mandates.
Earmark Statement
H.R. 4349 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
Preemption of State, Local or Tribal Law
This bill is not intended to preempt any State, local or
tribal law.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as 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):
SECTION 105 OF THE HOOVER POWER PLANT ACT OF 1984
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 75,208 250,694
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 24,800 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 right to delivery Arizona
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 the amount of 200 million kilowatthours is not
generated, less amounts of excess energy delivered
Second: Meeting Hoover Dam contractual obligations under ...............
Schedule A of section 105(a)(1)(A) and under Schedule B of
section 105(a)(1)(B) not exceeding 26 million
kilowatthours in each year of operation
Third: Meeting the energy requirements of the three States, Arizona, Nevada, and California]
such available excess 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 right to delivery Arizona
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 obligations under Arizona, Nevada, and California
Schedule A of 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 the three States, Arizona, Nevada, and California
such available excess 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 2010, 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 2010, 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 2010, 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 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 E of the Criteria shall be deemed to have
been modified to conform to this section, as modified by the
Hoover Power Allocation Act of 2010. 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
subdivison 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
2010.
(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.
[(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.]
(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.
[(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 2010 in the United Stats 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.