99–010 

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 conVerDate Mar 15 2010 09:14 Sep 01, 2011 Jkt 099010 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\SR058.XXX SR058

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struct 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 cosponsored by Senators Boxer, Ensign, Feinstein, and Heller. The 

Subcommittee on Water and Power of the Committee on Energy 


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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 proVerDate Mar 15 2010 09:14 Sep 01, 2011 Jkt 099010 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\SR058.XXX SR058

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portion 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-asyou-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 


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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 


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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 


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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 comVerDate Mar 15 2010 09:14 Sep 01, 2011 Jkt 099010 PO 00000 Frm 00007 Fmt 6659 Sfmt 6969 E:\HR\OC\SR058.XXX SR058

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ment 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 alloVerDate Mar 15 2010 09:14 Sep 01, 2011 Jkt 099010 PO 00000 Frm 00008 Fmt 6659 Sfmt 6969 E:\HR\OC\SR058.XXX SR058

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cation 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 


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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 abVerDate Mar 15 2010 09:14 Sep 01, 2011 Jkt 099010 PO 00000 Frm 00010 Fmt 6659 Sfmt 6969 E:\HR\OC\SR058.XXX SR058

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sence 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 ørenewal¿ contract for delivery commencing øJune 1, 1987¿ 

October 1, 2017, of the amount of capacity and firm energy 

specified for that contractor in the following table: 

øSCHEDULE A 

Long Term Contingent Capacity and Associated Firm Energy Reserved for Renewal Contract 

Offers to Current Boulder Canyon Project Contractors 

Contractor 

Contingent capacity 

(kW) 

Firm energy (thousands of kWh) 

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 


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øSCHEDULE A—Continued 

Long Term Contingent Capacity and Associated Firm Energy Reserved for Renewal Contract 

Offers to Current Boulder Canyon Project Contractors 

Contractor 

Contingent capacity 

(kW) 

Firm energy (thousands of kWh) 

Summer Winter Total 

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 

Contractor 

Contingent capacity 

(kW) 

Firm energy (thousands of kWh) 

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 

ø(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: 

øSchedule B 

Contingent Capacity Resulting From the Uprating Program and Associated Firm Energy 

State 

Contingent capacity 

(kW) 

Firm energy (thousands of kWh) 

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 


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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 

Contractor 

Contingent capacity 

(kW) 

Firm energy (thousands of kWh) 

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 øJune 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: 


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øSCHEDULE C 

Excess Energy 

Priority of entitlement to excess energy State 

First: Meeting Arizona’s first priority 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.

Arizona 

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 the three 

States, such available excess energy to be divided 

equally among the States.

Arizona, Nevada, and California¿ 

Schedule C 

Excess Energy 

Priority of entitlement to excess energy State 

First: Meeting Arizona’s first priority 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.

Arizona 

Second: Meeting Hoover Dam contractual obligations 

under 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.

Arizona, Nevada, and 

California 

Third: Meeting the energy requirements of the three 

States, such available excess energy to be divided 

equally among the States.

Arizona, Nevada, and 

California 

(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 


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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 

State 

Contingent capacity 

(kW) 

Firm energy (thousands of kWh) 

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 


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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. 

ø(2)¿ (3) The total obligation of the Secretary of Energy to deliver 

firm energy pursuant to øschedule 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 

øany¿ each year of operation (less deliveries thereof to Arizona required by its first priority under øschedule C¿ Schedule C of section 105(a)(1)(C) whenever actual generation in øany¿ 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 øschedules 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. 

ø(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 

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form 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. 

ø(4)¿ (5) Each contract offered under subsection (a)(1) of this section shall: 

ø(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 øshall 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; øand¿ 

(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 

ratifiedø.¿; 

(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, ø2017¿ 2067. 

ø(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 offiVerDate Mar 15 2010 21:12 Sep 01, 2011 Jkt 099010 PO 00000 Frm 00017 Fmt 6659 Sfmt 6602 E:\HR\OC\SR058.XXX SR058

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cers 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. 

ø(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. 

ø(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. 

ø(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. 

ø(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.¿ 

ø(g)¿ (e) The provisions of this section constitute an exercise by 

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der Canyon Project Act, as amended and supplemented, to prescribe terms and conditions for øthe 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 øJune 1, 1987, and ending September 30, 2017¿ October 1, 2017, and ending September 30, 2067. 

ø(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 øthis 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. 

* * * * * * * 

ø(i)¿ (g) It is the purpose of øsubsections (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 øJune 1, 1987, and ending September 30, 2017¿ October 1, 

2017, and ending September 30, 2067, will vest with certainty and 

finality. 

* * * * * * * 

Æ 


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