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[Senate Report 112-58]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 138
112th Congress                                                   Report
                                 SENATE
 1st Session                                                     112-58

======================================================================

 
                      HOOVER POWER ALLOCATION ACT

                                _______
                                

  August 30 (legislative day, August 2), 2011.--Ordered to be printed

  Filed, under authority of the order of the Senate of August 2, 2011

                                _______
                                

   Mr. Bingaman, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 519]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 519) to further allocate and expand the 
availability of hydroelectric power generated at Hoover Dam, 
and for other purposes, having considered the same, reports 
favorably thereon with amendments and recommends that the bill, 
as amended, do pass.
    The amendments are as follows:
  1. On page 8, line 21, strike ``redesignated as'' and insert 
``redesignated by''.
  2. On page 9, strike lines 4 and 5 and insert the following:

          (A) by striking ``any'' each place it appears and 
        inserting ``each'';

  3. On page 9, line 14, strike ``Subdivision E of the 
Criteria'' and insert ``Subdivision C of the Conformed 
Criteria''.
  4. On page 9, line 22, strike ``redesignated as'' and insert 
``redesignated by''.

                                Purpose

    The purpose of S. 519 is to further allocate and expand the 
availability of hydroelectric power generated at Hoover Dam.

                          Background and Need

    The Boulder Canyon Project Act of 1928 (Public Law 70-642) 
authorized the Secretary of the Interior, among other things, 
to construct Hoover Dam and enter into contracts for the sale 
of power generated at the dam. In 1984, Congress enacted the 
Hoover Power Plant Act (Public Law 98-381) and, among other 
things, authorized the Secretary of Energy to allocate power 
produced at the dam. The 1984 act recognizes three categories 
of power allocations, referred to as Schedules A, B, and C.
    ``Schedule A'' authorizes contracts to: Metropolitan Water 
District of Southern California; California cities of Los 
Angeles, Glendale, Pasadena, and Burbank; Southern California 
Edison Company; Arizona Power Authority; Colorado River 
Commission of Nevada; and the City of Boulder City, Nevada. 
These contractors represent the original contractors for power 
from Hoover Dam.
    ``Schedule B'' authorizes contracts to: the southern 
California cities of Glendale, Pasadena, Burbank, Anaheim, 
Azusa, Banning, Colton, Riverside, and Vernon, as well as the 
States of Arizona and Nevada.
    ``Schedule C'' allocates excess power production, if any, 
to the States of California, Arizona, and Nevada.
    The current power contracts were signed in 1987, and will 
expire in 2017. The approximate percentage of power delivered 
to each state is: 23.4 percent to Nevada; 19 percent to 
Arizona; and 57.6 percent to California.
    On November 20, 2009, the Western Area Power Administration 
(WAPA) published notice in the Federal Register of its intent 
to administratively allocate the power supply from Hoover Dam 
through its existing power marketing procedures. On April 27, 
2011, WAPA issued another Federal Register notice of its 
administrative allocation proposal indicating that the proposal 
would take effect on May 27, 2011. Due to concerns from the 
existing contractors, WAPA has agreed to extend the effective 
date of its decision to December 13, 2011. WAPA's 
administrative proposal includes terms that are inconsistent 
with S. 519, including proposed contract terms of 30 years as 
opposed to 50 years. Existing contractors from Arizona, 
California, and Nevada have voiced objections to WAPA's 
proposed actions because the allocations are contrary to the 
allocations proposed in S. 519 and would otherwise circumvent 
the traditional role of Congress in allocating the power from 
Hoover Dam. S. 519 is needed to implement the agreement reached 
by the existing contractors.
    S. 519 allocates hydroelectric power generated at Hoover 
Dam to current power customers in Arizona, Nevada, and 
California in accordance with revised Schedules A, B, and C and 
creates a new pool of ``Schedule D'' power to be allocated to 
Indian tribes and other new entities. Two-thirds of the 
Scheduled D pool will be allocated in accordance with 
procedures developed by the Western Area Power Administration 
and the remaining one-third will be allocated in equal shares 
by the Arizona Power Authority for new contractors in Arizona, 
the Colorado River Commission of Nevada for new contractors in 
Nevada, and the Western Area Power Administration for new 
contractors in California.

                          Legislative History

    Senator Reid introduced S. 519 on March 9, 2011. The bill 
is co-sponsored by Senators Boxer, Ensign, Feinstein, and 
Heller. The Subcommittee on Water and Power of the Committee on 
Energy and Natural Resources held a hearing on S. 519 on May 
19, 2011, and considered the bill and adopted technical 
amendments to the bill at its business meeting on July 14, 
2011. The Committee ordered S. 519 favorably reported, as 
amended, at its business meeting on July 14, 2011.
    During the 111th Congress, the Committee considered similar 
legislation, S. 2891, sponsored by Senator Reid. The 
Subcommittee on Water and Power held a hearing on H.R. 4349 and 
S. 2891 on June 9, 2010 (S. Hrg. 111-707) and the Committee 
ordered H.R. 4349 favorably reported without amendment on July 
21, 2010 (S. Rpt. 111-329). A companion measure H.R. 4349, 
sponsored by Representative Napolitano, passed the House of 
Representatives by voice vote on June 8, 2010.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on July 14, 2011, by voice vote of a 
quorum present, recommends that the Senate pass S. 519, as 
amended as described herein.

                          Committee Amendment

    During its consideration of S. 519, the Committee adopted 
four technical amendments to the bill.

                      Section-by-Section Analysis

    Section 1 contains the short title for the bill.
    Subsection 2(a-c) amends section 105(a)(1) of the Hoover 
Power Plant Act of 1984 (43 U.S.C. 619a) (Hoover Power Act) by 
specifying that the new contracts for the allocation of power 
as provided in Schedules A, B, and C shall commence on October 
1, 2017. Section 2 also designates specific, revised 
allocations to the existing contractors and States.
    Subsection (d) amends section 105(a) of the Hoover Power 
Act by adding a new subsection that establishes a new 
contingent capacity and firm energy pool designated as Schedule 
D for delivery beginning on October 1, 2017. Section 2(d) also 
specifies that the Western Area Power Administration (Western) 
shall allocate 66.7 percent of the Schedule D contingent 
capacity and firm energy to new entities or Indian tribes 
within 36 months of enactment of this Act. Within 1 year of 
enactment, the Secretary of Energy shall make 33.3 percent of 
the Schedule D contingent capacity and firm energy in equal 
allocations, available for delivery commencing October 1, 2017 
to the Arizona Power Authority for new allottees in the State 
of Arizona; the Colorado River Commission of Nevada for new 
allottees in the State of Nevada; and Western for new allottees 
with the State of California, provided that Western shall have 
thirty-six months to complete such allocation. New Schedule D 
contractors must execute the Boulder Canyon Project 
Implementation Agreement. Contracts must also include a 
provision requiring new contractors to pay a proportionate 
share of their State's contribution to the cost of the Lower 
Colorado River Multi-Species Conservation Program. Any of the 
66.7 percent of the Schedule D contingent capacity and firm 
energy that is not allocated and placed under contract by 
October 1, 2017 will be returned in the same proportion to the 
contractors in Schedule A and Schedule B. Any of the 33.3 
percent of Schedule D contingent capacity and firm energy that 
is to be distributed within the States of Arizona, Nevada, and 
California that is not allocated and placed under contract by 
October 1, 2017, shall be returned to the Schedule A and 
Schedule B contractors within the State in which the Schedule D 
contingent capacity and firm energy were to be distributed.
    Subsections (e-f) make technical and conforming changes to 
the Hoover Power Act.
    Subsection (g) amends the Hoover Power Act to specify the 
expiration date for the new allocation contracts as September 
30, 2067. Western is also authorized and required to collect a 
pro rata share of Hoover Dam repayable advances from new 
allottees prior to October 1, 2017. Further, transactions with 
an independent system operator are permitted.
    Subsection (h) amends section 105(b) of the Hoover Power 
Act to change the year ``2017'' to ``2067''.
    Subsection (i) amends section 105(c) of the Hoover Power 
Act to specify the procedures the Secretary of Energy is to 
follow in order to make available the contingent capacity and 
firm energy if an existing contractor fails to accept an 
offered contract.
    Subsection (j) amends the Hoover Power Act by stating that 
the obligation of the Secretary of Energy to deliver contingent 
capacity and firm energy is subject to the availability of the 
water needed to produce the contingent capacity and firm 
energy.
    Subsection (k) repeals sections 105(e) and 105(f) of the 
Hoover Power Act.
    Subsection (l) provides for continued congressional 
oversight regarding the terms and conditions of the governing 
contracts for power generated at Hoover Dam until September 30, 
2067.
    Subsections (m-n) make conforming changes to the Hoover 
Power Act.
    Section 3 sets forth the requirements for compliance with 
the Statutory Pay-As-You-Go Act of 2010.

                   Cost and Budgetary Considerations

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office:

S. 519--Hoover Power Allocation Act of 2011

    S. 519 would update the statutory allocation of electric 
power generated at the Hoover Dam among various users. The 
current allocation expires at the end of fiscal year 2017. The 
legislation would increase the amount of electricity to be 
marketed by the Western Area Power Administration (WAPA) and 
would allocate much of the dam's currently unallocated 
electricity to Native American tribes and other entities. The 
revised allocations would remain in effect from 2017 through 
2067.
    Enacting S. 519 would affect direct spending; therefore, 
pay-as-you-go procedures apply. However, CBO estimates that the 
net effects would be insignificant for each year. In the 
absence of this legislation, CBO expects that WAPA would 
allocate the electricity from Hoover Dam by regulation. We 
estimate that any differences between the electricity 
allocation under S. 519 and the allocations developed under 
such regulations would have a negligible effect on offsetting 
receipts (a credit against direct spending) from electricity 
sales because the agency is required by law to keep electric 
rates as low as possible while recovering all costs of 
generation and marketing over time. CBO also estimates that 
implementing the bill would have no significant impact on 
WAPA's administrative costs, which are funded by appropriations 
and offset by proceeds from the sale of electricity. Enacting 
this bill would not affect revenues.
    S. 519 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    On June 20, 2011, CBO transmitted a cost estimate for H.R. 
470, the Hoover Power Allocation Act of 2011, as ordered 
reported by the House Committee on Natural Resources on June 
15, 2011. The two pieces of legislation are similar, and CBO 
cost estimates are the same.
    The CBO staff contact for this estimate is Kathleen Gramp. 
The estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 519.
    The bill is not a regulatory measure in the sense of 
imposing Government-established standards or significant 
economic responsibilities on private individuals and 
businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 519, as ordered reported.

                   Congressionally Directed Spending

    S. 519, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        Executive Communications

    The testimony provided by the Department of Energy, at the 
May 19, 2011, Subcommittee on Water and Power hearing on S. 519 
follows:

  Statement of Darrick Moe, Regional Manager of the Desert Southwest 
    Region, Western Area Power Administration, Department of Energy

    Madam Chairwoman and members of the Subcommittee, I am 
Darrick Moe, Regional Manager of the Desert Southwest Region, 
speaking on behalf of Timothy J. Meeks, the Administrator of 
the Department of Energy's Western Area Power Administration 
(Western). I am pleased to be here today to discuss S. 519, the 
Hoover Power Allocation Act of 2011. This legislation seeks to 
amend the Hoover Power Plant Act of 1984. The legislation 
proposes revised allocations of the generation capacity and 
energy from the Hoover Dam power plant, a feature of the 
Boulder Canyon Project (BCP), after the existing contracts 
expire on September 30, 2017.
    Western's mission is to market and deliver reliable, 
renewable, cost-based hydroelectric power from facilities such 
as Hoover Dam. Hoover Dam was authorized and constructed in 
accordance with the Boulder Canyon Project Act of 1928. 
Pursuant to this Act, the Secretary of the Interior was 
authorized to contract for the sale of generation based upon 
general regulations as he may prescribe. Subsequent power sales 
contracts were executed that committed Hoover power through May 
31, 1987. With the passage of the Hoover Power Plant Act of 
1984, Congress authorized the Secretary of the Interior to 
implement an uprating program, which increased the generation 
capacity of the Hoover Dam facilities, to make additional 
facility modifications, and to resolve issues over the 
disposition of Hoover power, post-1987. Western proceeded to 
market Hoover Dam power and entered into 30-year term contracts 
with the current Hoover contractors in accordance with the 
Hoover Power Plant Act of 1984, and Western's Conformed General 
Consolidated Power Marketing Criteria. This process resulted in 
the allocation of 1,951 megawatts of contingent capacity with 
an associated 4,527,001 megawatt-hours of firm energy. 
Contingent capacity is capacity that is available on an as-
available basis, while the firm energy entails Western's 
assurance to deliver.
    The Hoover power plant is a significant Federal 
hydroelectric power resource in the Desert Southwest with a 
maximum rated capacity of 2,074 megawatts. Under existing 
Federal law and policy, Western markets Hoover power at cost. 
Hoover power is hydropower and is considered ``clean energy'' 
with a minimal carbon footprint. The Hoover Dam power plant is 
able to ramp up and down rapidly and is used by contractors for 
various power-related ancillary services. For these reasons, 
Hoover power is an extremely valuable resource for power 
contractors in the southwestern United States.
    The existing power sales contracts between Western and the 
contractors will expire on September 30, 2017. As this 
expiration date becomes more prominent on the planning horizon, 
efforts have progressed among both Federal and non-Federal 
sectors to determine the allocation of Hoover Dam power after 
2017.
    In accordance with policy and existing Federal law, 
Western's post-2017 power allocation effort comprises a series 
of proposals introduced to the public through public 
information forums and public comment forums. Western makes 
policy decisions only after all interested parties have been 
provided ample opportunity to be engaged in the process and 
public input has been carefully considered to develop new 
Hoover Dam allocations that are in the public's best interest 
and provide widespread use of this Federal resource.
    Western's public process to allocate Hoover Dam electricity 
was initiated on November 20, 2009, in a Federal Register 
notice that proposed several key aspects of the allocating 
effort. Among other things, this Federal Register notice 
proposed the application of Western's Power Marketing 
Initiative (PMI) developed under the Energy Planning and 
Management Program (EPAMP), the extension of a major percentage 
of the marketable resource to existing contractors, reservation 
of an approximate 5% resource pool to be allocated to eligible 
contractors, and provision of 30-year contract terms. Western 
conducted three public information forums from December 1-3, 
2009. These public information forums were well attended by 
current customers and interested parties, including Native 
American tribes, and engaged the attendees through question and 
answer sessions. Public comment forums were held from January 
19-21, 2010. All interested parties were provided an 
opportunity to submit comments related to Western's proposals 
contained in the November 20, 2009 Federal Register notice. 
After considering comments received, in an April 16, 2010 
Federal Register notice, Western extended the comment period 
from January 29, 2010, to September 30, 2010. This extension 
provided interested parties additional time to submit comments 
and allowed Western to consult with tribes to inform them of 
the remarketing process.
    After considering comments received, Western announced in 
an April 27, 2011 Federal Register notice its decision to apply 
its EPAMP PMI to the BCP remarketing effort. The PMI has been 
applied to all of Western's remarketing efforts since it was 
announced as a final rule in 1995 following a four-year public 
process. Application of the PMI to the BCP expressly protects 
and reserves a major portion of the existing customers' 
allocations while also providing potential customers, such as 
tribal governments and other eligible customers, an opportunity 
to acquire an allocation. The PMI has historically provided a 
balancing of the needs of the existing customers with those of 
prospective customers. Western also decided on a 30-year 
contract term to achieve a balance between resource certainty 
and providing for an allocation opportunity for future 
customers at an appropriate time. Finally, Western also made 
additional proposals and is seeking further comments on the 
amount of marketable contingent capacity and firm energy, the 
size of the resource pool to be created for new customers, and 
excess energy provisions. As described in the Federal Register 
notice, a public information and comment forum was established 
for all interested parties to provide written and oral comments 
on these proposals. The comment period for these proposals was 
initially set to close June 16, 2011.
    Western is currently in the process of publishing a Federal 
Register notice that will extend the close of the comment 
period established in the April 27, 2011 notice to September 1, 
2011. This Federal Register notice will also extend the 
effective date of the decisions announced in the April 27, 2011 
notice to December 31, 2011. Western is also rescheduling the 
public information and comment forums for later this year. This 
extension provides additional time for on-going legislative 
activities, as well as additional opportunity for interested 
parties, including Native American Tribes, to consult with 
Western and comment on the proposals.
    There are numerous steps ahead in the administrative 
process. Western currently projects that this process will be 
completed with finalized contracts in the spring of 2015. It is 
important that the process be finalized well in advance of 2017 
to provide customers the time to balance their energy 
portfolios and make required transmission arrangements, and to 
allow related state agencies time to carry out their 
allocations process.
    Western has reviewed S. 519. There are several similarities 
between the draft legislation and Western's proposals, and 
there are some departures. To provide background that may be 
useful to the Subcommittee members as this bill is considered, 
I'll address some of these differences in my comments.
    All of Western's allocation efforts are open to public 
participation and conducted in accordance with the 
Administrative Procedure Act. At each stage of the process, 
Western proposes actions and/or policy to be considered and is 
open for public comment and input. Western believes soliciting 
and integrating public input into policy decisions allows 
Western to develop results that are in the public's best 
interest and lead to the most widespread use of this resource.
    Western has 15 current contractors who receive an 
allocation of Hoover power. Two of those existing contractors 
are the Colorado River Commission (CRC) and the Arizona Power 
Authority (APA). CRC and APA sub-allocate their Hoover power to 
customers under prescribed guidelines and regulations. Both S. 
519 and Western's administrative effort propose an amount of 
resource to be allocated to new customers, including Native 
American Tribes. S. 519 proposes certain quantities to be 
allocated to APA and CRC for their disposition to new 
customers. While it is anticipated that new customers to APA 
and CRC could result from this effort, Western's process 
affords the opportunity to fully seek public input and assures 
all interested parties are considered in the power's 
disposition.
    Western has received numerous written comments and 
statements from Native American tribes expressing concern that 
their interests have not yet been fully vetted and considered. 
In recent years, tribes have been active in Western's 
remarketing efforts, and one goal of Western's Strategic Plan 
is to seek partnerships with tribes on numerous initiatives. I 
believe that soliciting input from tribes and other entities 
that do not already have an allocation of Hoover power is in 
the public interest. Western has reached out to tribes 
specifically in this remarketing effort through letters, phone 
calls, meetings, site visits, and consultations.
    S. 519 would direct that Hoover's full maximum rating of 
2,074 megawatts of capacity be allocated to Hoover customers in 
a multi-faceted approach. As described in Western's April 27, 
2011 Federal Register notice, we propose to market 2,044 
megawatts of contingent capacity; 30 megawatts below the 
maximum rating. Retention of project capacity to support the 
reliability of the Federal electric system is relatively common 
among the Power Marketing Administrations. Western is currently 
able to utilize Hoover Dam capacity that is available in excess 
of 1,951 megawatts. The preservation of 30 megawatts of 
contingent Hoover Dam capacity for use by Western for project 
integration purposes should provide the tools we need to meet 
our mission and statutory requirement of delivering reliable 
Federal hydro-generation. Western manages multiple federally 
owned generation and transmission projects in the Desert 
Southwest on a minute-by-minute basis 24 hours a day. While 
these projects are financially segregated, they are operated as 
an integrated system. This 30-megawatt capacity to be held by 
the Federal Government would provide significant benefit to the 
operation of the integrated projects and the Western Area Lower 
Colorado balancing authority that Western operates. Retaining 
30 megawatts would also likely allow our Hoover Dam power 
customers to experience cost-neutral conditions. Should Western 
be unable to retain approximately 30 megawatts, we would expect 
to procure replacement power from the market at a higher cost, 
if it is available. These higher costs would in turn need to be 
passed through to Western customers in the form of higher 
rates.
    S. 519 expressly requires that each contract offered to a 
new allottee for Hoover Dam power should require the new 
allottee to execute the Boulder Canyon Project Implementation 
Agreement. Western finds significant value in the provisions 
and results of the Implementation Agreement. However, this 
agreement was jointly constructed between Western and our 
customers for unique circumstances that existed in 1994. Should 
this requirement be retained, the current Implementation 
Agreement would need to be evaluated and potentially revised to 
accommodate current conditions. We support the universal 
benefits achieved by the Implementation Agreement and will work 
with our customers to determine the appropriate documentation 
to meet all of our customers' needs; both current and future.
    S. 519 expressly requires that each contract offered to a 
new allottee for Hoover Dam power includes a provision 
requiring the new allottee to pay a proportional share of its 
State's funding contribution for the Lower Colorado River 
Multi-Species Conservation Program, known as the LCR MSCP. The 
LCR MSCP is a 50-year, multi-stakeholder, Federal and non-
Federal partnership, responding to the need to balance the use 
of lower Colorado River water resources and the conservation of 
native species and their habitats in compliance with the 
Endangered Species Act (ESA). The LCR MSCP is a comprehensive 
approach to species protection developed after nearly a decade 
of work. This program is funded on a cost-share basis comprised 
of 50-percent Federal and 50-percent non-Federal. The states of 
Arizona, California and Nevada have worked internally with 
water and power customers to fund each state's respective 
share. S. 519 recognizes these funding requirements and 
obligates new power customers to contribute to this funding in 
a proportional manner. Supporters of S. 519 note that the 50-
year obligation of the LCR MSCP is, in part, reason to proceed 
with 50-year Hoover power supply contracts. Western continues 
to review the LCR MSCP requirements in our administrative 
process. However, Western's position is that the 50-year LCR 
MSCP term need not coincide with the Hoover Dam power sales 
contracts' term. The adoption of a 50-year contract term, as 
opposed to Western's decision to apply 30-year contract terms, 
could potentially exclude evolving classes of customers in 
decades to come. The modern day electrical industry is dynamic 
in its regulations, technologies, operations and participants. 
Western notes that we currently provide Federal hydropower 
allocations to 87 federally recognized Native American tribes. 
Many of these tribal customers are new to Western in the last 
20 years. The landscape of potential customers in decades to 
come has the capability to yield new Hoover customers, as we 
strive to meet the needs of all our customers; existing and 
future.
    As drafted, S. 519 states that Subdivision E of the General 
Consolidated Power Marketing Criteria or Regulations for 
Boulder City Area Projects published in the Federal Register on 
December 28, 1984, (Criteria) shall be deemed to have been 
modified to conform to this legislation. Western would like to 
refine this statement as Western's December 28, 1984, Federal 
Register notice is more precisely titled Conformed General 
Consolidated Power Marketing Criteria or Regulations for 
Boulder City Area Projects (Conformed Criteria). Western 
published the Criteria on May 9, 1983, which was in need of 
conformance per the Hoover Power Plant Act of 1984. Pursuant to 
the Hoover Power Plant Act of 1984, Western conformed the 1983 
Criteria in its December 28, 1984, Federal Register notice. In 
doing so, the pertinent section is now Subdivision C of the 
Conformed Criteria. If S. 519 is to move forward, edits would 
be needed to refer to Subdivision C Western's Conformed 
Criteria and not Subdivision E of the Criteria.
    Western respectfully recognizes that our administrative 
process is not the exclusive means of allocating Hoover power. 
I would welcome the opportunity to work with this Subcommittee 
to address the technical concerns I have raised and to ensure 
the widespread use of this valuable resource as work continues 
on this legislation. In the absence of congressional action, 
Western will uphold our authority and responsibility to market 
Hoover power consistent with historical statutes and in concert 
with the rules and regulations as the Secretary of Energy 
prescribes.
    This concludes my prepared remarks and I would be pleased 
to answer any questions you or members of the Subcommittee 
might have.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill H.R. 4349, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                   THE HOOVER POWER PLANT ACT OF 1984

                     Public Law 98-381, as Amended

    AN ACT To authorize the Secretary of the Interior to construct, 
 operate, and maintain certain facilities at Hoover Dam, and for other 
purposes.

           *       *       *       *       *       *       *

TITLE I

           *       *       *       *       *       *       *

    Sec. 105. (a)(1) The Secretary of Energy shall offer:
          (A) To each contractor for power generated at Hoover 
        Dam a [renewal] contract for delivery commencing [June 
        1, 1987] October 1, 2017, of the amount of capacity and 
        firm energy specified for that contractor in the 
        following table:

                                                   [SCHEDULE A
Long Term Contingent Capacity and Associated Firm Energy Reserved for Renewal Contract Offers to Current Boulder
                                           Canyon Project Contractors
----------------------------------------------------------------------------------------------------------------
                                                               Contingent      Firm energy (thousands of kWh)
                          Contractor                            capacity  --------------------------------------
                                                                  (kW)        Summer       Winter       Total
----------------------------------------------------------------------------------------------------------------
Metropolitan Water District of Southern California...........     247,500      904,382      387,592    1,291,974
City of Los Angeles..........................................     490,875      488,535      209,658      698,193
Southern California Edison Company...........................     277,500      175,486       75,208      260,694
City of Glendale.............................................      18,000       47,398       20,313       67,711
City of Pasadena.............................................      11,000       40,655       17,424       58,079
City of Burbank..............................................       5,125       14,811        6,347       21,158
Arizona Power Authority......................................     189,000      452,192      193,797      645,989
Colorado River Commission of Nevada..........................     189,000      452,192      193,797      645,989
United States, for Boulder City..............................      20,000       56,000       24,000       80,000
                                                              --------------------------------------------------
                                                              --------------------------------------------------
Totals.......................................................   1,448,000    2,631,651    1,128,136   3,759,787]
----------------------------------------------------------------------------------------------------------------

                                                   Schedule A
  Long-term Schedule A contingent capacity and associated firm energy for offers of contracts to Boulder Canyon
                                               project contractors
----------------------------------------------------------------------------------------------------------------
                                                               Contingent      Firm energy (thousands of kWh)
                          Contractor                            capacity  --------------------------------------
                                                                  (kW)        Summer       Winter       Total
----------------------------------------------------------------------------------------------------------------
Metropolitan Water District of Southern California...........     249,948      859,163      368,212    1,227,375
City of Los Angeles..........................................     495,732      464,108      199,175      663,283
Southern California Edison Company...........................     280,245      166,712       71,448      238,160
City of Glendale.............................................      18,178       45,028       19,297       64,325
City of Pasadena.............................................      11,108       38,622       16,553       55,175
City of Burbank..............................................       5,176       14,070        6,030       20,100
Arizona Power Authority......................................     190,869      429,582      184,107      613,689
Colorado River Commission of Nevada..........................     190,869      429,582      184,107      613,689
United States, for Boulder City..............................      20,198       53,200       22,800       76,000
                                                              --------------------------------------------------
                                                              --------------------------------------------------
Totals.......................................................   1,462,323    2,500,067    1,071,729    3,571,796
----------------------------------------------------------------------------------------------------------------

          [(B) To purchasers in the States of Arizona, Nevada 
        and California eligible to enter into such contracts 
        under section 5 of the Boulder Canyon Project Act, 
        contracts for delivery commencing June 1, 1987, or as 
        it thereafter becomes available, of capacity resulting 
        from the uprating program and for delivery commencing 
        June 1, 1987, of associated firm energy as specified in 
        the following table:

                                                   [Schedule B
               Contingent Capacity Resulting From the Uprating Program and Associated Firm Energy
----------------------------------------------------------------------------------------------------------------
                                                               Contingent      Firm energy (thousands of kWh)
                            State                               capacity  --------------------------------------
                                                                  (kW)        Summer       Winter       Total
----------------------------------------------------------------------------------------------------------------
Arizona......................................................     188,000      148,000       64,000      212,000
California...................................................     127,000       99,850       43,364      143,214
Nevada.......................................................     188,000      288,000      124,000      412,000
                                                              --------------------------------------------------
Totals.......................................................     503,000      535,850      231,364      767,214
----------------------------------------------------------------------------------------------------------------

Provided, however, That in the case of Arizona and Nevada, such 
contracts shall be offered to the Arizona Power Authority and 
the Colorado River Commission of Nevada, respectively, as the 
agency specified by State law as the agent of such State for 
purchasing power from the Boulder Canyon project: Provided 
further, That in the case of California, no such contract under 
this subparagraph (B) shall be offered to any purchaser who is 
offered a contract for capacity exceeding 20,000 kilowatts 
under subparagraph (A) of this paragraph.]
          (B) To each existing contractor for power generated 
        at Hoover Dam, a contract, for delivery commencing 
        October 1, 2017, of the amount of contingent capacity 
        and firm energy specified for that contractor in the 
        following table:

                                                   Schedule B
  Long-term Schedule B contingent capacity and associated firm energy for offers of contracts to Boulder Canyon
                                               project contractors
----------------------------------------------------------------------------------------------------------------
                                                               Contingent      Firm energy (thousands of kWh)
                          Contractor                            capacity  --------------------------------------
                                                                  (kW)        Summer       Winter       Total
----------------------------------------------------------------------------------------------------------------
City of Glendale.............................................       2,020        2,749        1,194        3,943
City of Pasadena.............................................       9,089        2,399        1,041        3,440
City of Burbank..............................................      15,149        3,604        1,566        5,170
City of Anaheim..............................................      40,396       34,442       14,958       49,400
City of Azusa................................................       4,039        3,312        1,438        4,750
City of Banning..............................................       2,020        1,324          576        1,900
City of Colton...............................................       3,030        2,650        1,150        3,800
City of Riverside............................................      30,296       25,831       11,219       37,050
City of Vernon...............................................      22,218       18,546        8,054       26,600
Arizona......................................................     189,860      140,600       60,800      201,400
Nevada.......................................................     189,860      273,600      117,800      391,400
                                                              --------------------------------------------------
Totals.......................................................     507,977      509,057      219,796      728,853
----------------------------------------------------------------------------------------------------------------

          (C) To the Arizona Power Authority and the Colorado 
        River Commission of Nevada and to purchasers in the 
        State of California eligible to enter into such 
        contracts under section 5 of the Boulder Canyon Project 
        Act, contracts for delivery commencing [June 1, 1987] 
        October 1, 2017, of such energy generated at Hoover Dam 
        as is available respectively to the States of Arizona, 
        Nevada, and California in excess of 4,501.001 million 
        kilowatthours in any year of operation (hereinafter 
        called excess energy) in accordance with the following 
        table:

                               [SCHEDULE C
                              Excess Energy
------------------------------------------------------------------------
 Priority of entitlement to excess energy              State
------------------------------------------------------------------------
First: Meeting Arizona's first priority    Arizona
 right to delivery of excess energy which
 is equal in each year of operation to
 200 million kilowatthours: Provided,
 however That in the event excess energy
 in the amount of 200 million
 kilowatthours is not generated during
 any year of operation, Arizona shall
 accumulate a first right to delivery of
 excess energy subsequently generated in
 an amount not to exceed 600 million
 kilowatthours, inclusive of the current
 year's 200 million kilowatthours. Said
 first right of delivery shall accrue at
 a rate of 200 million kilowatthours per
 year for each year excess energy in an
 amount of 200 million kilowatthours is
 not generated, less amounts of excess
 energy delivered.
Second: Meeting Hoover Dam contractual
 obligations under Schedule A of
 subsection 105(a)(1)(A) and under
 Schedule B of subsection 105(a)(1)(B)
 not exceeding 26 million kilowatthours
 in each year of operation.
Third: Meeting the energy requirements of  Arizona, Nevada, and
 the three States, such available excess    California]
 energy to be divided equally among the
 States.
------------------------------------------------------------------------

                               Schedule C
                              Excess Energy
------------------------------------------------------------------------
 Priority of entitlement to excess energy              State
------------------------------------------------------------------------
First: Meeting Arizona's first priority    Arizona
 right to delivery of excess energy which
 is equal in each year of operation to
 200 million kilowatthours: Provided,
 That in the event excess energy in the
 amount of 200 million kilowatthours is
 not generated during any year of
 operation, Arizona shall accumulate a
 first right to delivery of excess energy
 subsequently generated in an amount not
 to exceed 600 million kilowatthours,
 inclusive of the current year's 200
 million kilowatthours. Said first right
 of delivery shall accrue at a rate of
 200 million kilowatthours per year for
 each year excess energy in an amount of
 200 million kilowatthours is not
 generated, less amounts of excess energy
 delivered.
Second: Meeting Hoover Dam contractual     Arizona, Nevada, and
 obligations under Schedule A of            California
 subsection (a)(1)(A), under Schedule B
 of subsection (a)(1)(B), and under
 Schedule D of subsection (a)(2), not
 exceeding 26 million kilowatthours in
 each year of operation.
Third: Meeting the energy requirements of  Arizona, Nevada, and
 the three States, such available excess    California
 energy to be divided equally among the
 States.
------------------------------------------------------------------------

    (2)(A) The Secretary of Energy is authorized to and shall 
create from the apportioned allocation of contingent capacity 
and firm energy adjusted from the amounts authorized in this 
Act in 1984 to the amounts shown in Schedule A and Schedule B, 
as modified by the Hoover Power Allocation Act of 2011, a 
resource pool equal to 5 percent of the full rated capacity of 
2,074,000 kilowatts, and associated firm energy, as shown in 
Schedule D (referred to in this section as ``Schedule D 
contingent capacity and firm energy''):

                                                   Schedule D
     Long-term Schedule D resource pool of contingent capacity and associated firm energy for new allottees
----------------------------------------------------------------------------------------------------------------
                                                               Contingent      Firm energy (thousands of kWh)
                            State                               capacity  --------------------------------------
                                                                  (kW)        Summer       Winter       Total
----------------------------------------------------------------------------------------------------------------
New Entities Allocated by the Secretary of Energy............      69,170      105,637       45,376      151,013
New Entities Allocated by State..............................
Arizona......................................................      11,510       17,580        7,533       25,113
California...................................................      11,510       17,580        7,533       25,113
Nevada.......................................................      11,510       17,580        7,533       25,113
                                                              --------------------------------------------------
Totals.......................................................     103,700      158,377       67,975      226,352
----------------------------------------------------------------------------------------------------------------

    (B) The Secretary of Energy shall offer Schedule D 
contingency capacity and firm energy to entities not receiving 
contingent capacity and firm energy under subparagraphs (A) and 
(B) of paragraph (1) (referred to in this section as ``new 
allottees'') for delivery commencing October 1, 2017 pursuant 
to this subsection. In this subsection, the term ``the 
marketing area for the Boulder City Area Projects'' shall have 
the same meaning as in appendix A of the General Consolidated 
Power Marketing Criteria or Regulations for Boulder City Area 
Projects published in the Federal Register on December 28, 1984 
(49 Federal Register 50582 et seq.) (referred to in this 
section as the ``Criteria'').
    (C)(i) Within 36 months of the date of enactment of the 
Hoover Power Allocation Act of 2011, the Secretary of Energy 
shall allocate through the Western Area Power Administration 
(referred to in this section as ``Western''), for delivery 
commencing October 1, 2017, for use in the marketing area for 
the Boulder City Area Projects 66.7 percent of the Schedule D 
contingent capacity and firm energy to new allottees that are 
located within the marketing area for the Boulder City Area 
Projects and that are--
          (I) eligible to enter into contracts under section 5 
        of the Boulder Canyon Project Act (43 U.S.C. 617d); or
          (II) federally recognized Indian tribes.
    (ii) In the case of Arizona and Nevada, Schedule D 
contingent capacity and firm energy for new allottees other 
than federally recognized Indian tribes shall be offered 
through the Arizona Power Authority and the Colorado River 
Commission of Nevada, respectively. Schedule D contingent 
capacity and firm energy allocated to federally recognized 
Indian tribes shall be contracted for directly with Western.
    (D) Within 1 year of the date of enactment of the Hoover 
Power Allocation Act of 2011, the Secretary of Energy also 
shall allocate, for delivery commencing October 1, 2017, for 
use in the marketing area for the Boulder City Area Projects 
11.1 percent of the Schedule D contingent capacity and firm 
energy to each of--
          (i) the Arizona Power Authority for allocation to new 
        allottees in the State of Arizona;
          (ii) the Colorado River Commission of Nevada for 
        allocation to new allottees in the State of Nevada; and
          (iii) Western for allocation to new allottees within 
        the State of California, provided that Western shall 
        have 36 months to complete such allocation.
    (E) Each contract offered pursuant to this subsection shall 
include a provision requiring the new allottee to pay a 
proportionate share of its State's respective contribution 
(determined in accordance with each State's applicable funding 
agreement) to the cost of the Lower Colorado River Multi-
Species Conservation Program (as defined in section 9401 of the 
Omnibus Public Land Management Act of 2009 (Public Law 111-11; 
123 Stat. 1327)), and to execute the Boulder Canyon Project 
Implementation Agreement Contract No. 95-PAO-10616 (referred to 
in this section as the ``Implementation Agreement'').
    (F) Any of the 66.7 percent of Schedule D contingent 
capacity and firm energy that is to be allocated by Western 
that is not allocated and placed under contract by October 1, 
2017, shall be returned to those contractors shown in Schedule 
A and Schedule B in the same proportion as those contractors' 
allocations of Schedule A and Schedule B contingent capacity 
and firm energy. Any of the 33.3 percent of Schedule D 
contingent capacity and firm energy that is to be distributed 
within the States of Arizona, Nevada, and California that is 
not allocated and placed under contract by October 1, 2017, 
shall be returned to the Schedule A and Schedule B contractors 
within the State in which the Schedule D contingent capacity 
and firm energy were to be distributed, in the same proportion 
as those contractors' allocations of Schedule A and Schedule B 
contingent capacity and firm energy.
    [(2)] (3) The total obligation of the Secretary of Energy 
to deliver firm energy pursuant to [schedule A of section 
105(a)(1)(A) and schedule B of section 105(a)(1)(B)] paragraphs 
(1)(A), (1)(B), and (2) is 4,527.001 million kilowatthours in 
each year of operation. To the extent that the actual 
generation at Hoover Powerplant in [any] each year of operation 
(less deliveries thereof to Arizona required by its first 
priority under [schedule C] Schedule C of section 105(a)(1)(C) 
whenever actual generation in [any] each year of operation is 
in excess of 4,501.001 million kilowatthours is less than 
4,527.001 million kilowatthours, such deficiency shall be borne 
by the holders of contracts under said [schedules A and B] 
Schedules A, B, and D in the ratio that the sum of the 
quantities of firm energy to which each contractor is entitled 
pursuant to said schedules bears to 4,527.001 million 
kilowatthours. At the request of any such contractor, the 
Secretary of Energy will purchase energy to meet that 
contractor's deficiency at such contractor's expense.
    [(3) Subdivision E of the ``General Consolidated Power 
Marketing Criteria or Regulations for Boulder City Area 
Projects'' published in the Federal Register May 9, 1983 (48 
Federal Register commencing at 20881), hereinafter referred to 
as the ``Criteria'' or as the ``Regulations'' shall be deemed 
to have been modified to conform to this section. The Secretary 
of Energy shall cause to be included in the Federal Register a 
notice conforming the text of said Regulations to such 
modifications.]
    (4) Subdivision C of the Conformed Criteria shall be deemed 
to have been modified to conform to this section, as modified 
by the Hoover Power Allocation Act of 2011. The Secretary of 
Energy shall cause to be included in the Federal Register a 
notice conforming the text of the regulations to such 
modifications.
    [(4)] (5) Each contract offered under subsection (a)(1) of 
this section shall:
          [(A) expire September 30, 2017;]
          (A) in accordance with section 5(a) of the Boulder 
        Canyon Project Act (43 U.S.C. 617d(a)), expire 
        September 30, 2067;
          (B) not restrict use to which the capacity and energy 
        contracted for by the Metropolitan Water District of 
        Southern California may be placed within the State of 
        California: Provided, That to the extent practicable 
        and consistent with sound water management and 
        conservation practice, the Metropolitan Water District 
        of Southern California [shall use] shall allocate such 
        capacity and energy to pump available Colorado River 
        water prior to using such capacity and energy to pump 
        California State water project water; [and]
          (C) conform to the applicable provisions of 
        subdivision E of the Criteria, commencing at 48 Federal 
        Register 20881, modified as provided in this section. 
        To the extent that said provisions of the Criteria, as 
        so modified, are applicable to contracts entered into 
        under this section, those provisions are hereby 
        ratified[.];
          (D) authorize and require Western to collect from new 
        allottees a pro rata share of Hoover Dam repayable 
        advances paid for by contractors prior to October 1, 
        2017, and remit such amounts to the contractors that 
        paid such advances in proportion to the amounts paid by 
        such contractors as specified in section 6.4 of the 
        Implementation Agreement;
          (E) permit transactions with an independent system 
        operator; and
          (F) contain the same material terms included in 
        section 5.6 of those long-term contracts for purchases 
        from the Hoover Power Plant that were made in 
        accordance with this Act and are in existence on the 
        date of enactment of the Hoover Power Allocation Act of 
        2011.
    (b) Nothing in the Criteria shall be construed to prejudice 
any rights conferred by the Boulder Canyon Project Act, as 
amended and supplemented, on the holder of a contract described 
in subsection (a) of this section not in default thereunder on 
September 30, [2017] 2067.
    [(c)(1) The Secretary of Energy shall not execute a 
contract described in subsection (a)(1)(A) of this section with 
any entity which is a party to the action entitled the ``State 
of Nevada, et al. against the United States of America, et 
al.'' in the United States District Court for the District of 
Nevada, case numbered CV LV '82 441 RDF, unless that entity 
agrees to file in that action a stipulation for voluntary 
dismissal with prejudice of its claims, or counterclaims, or 
crossclaims, as the case may be, and also agrees to file with 
the Secretary a document releasing the United States, its 
officers and agents, and all other parties to that action who 
join in that stipulation from any claims arising out of the 
disposition under this section of capacity and energy from the 
Boulder Canyon project. The Attorney General shall join on 
behalf of the United States, its officers and agents, in any 
such voluntary dismissal and shall have the authority to 
approve on behalf of the United States the form of each 
release.
    [(2) If after a reasonable period of time as determined by 
the Secretary, the Secretary is precluded from executing a 
contract with an entity by reason of paragraph (1) of this 
subsection, the Secretary shall offer the capacity and energy 
thus available to other entities in the same State eligible to 
enter into such contracts under section 5 of the Boulder Canyon 
Project Act.
    [(d) The uprating program authorized under section 101(a) 
of this Act shall be undertaken with funds advanced under 
contracts made with the Secretary of the Interior by non-
Federal purchasers described in subsection (a)(1)(B) of this 
section. Funding provided by non-Federal purchasers shall be 
advanced to the Secretary of the Interior pursuant to the terms 
and conditions of such contracts.]
    (c) Offer of Contract to Other Entities.--If any existing 
contractor fails to accept an offered contract, the Secretary 
of Energy shall offer the contingent capacity and firm energy 
thus available first to other entities in the same State listed 
in Schedule A and Schedule B, second to other entities listed 
in Schedule A and Schedule B, third to other entities in the 
same State which receive contingent capacity and firm energy 
under subsection (a)(2) of this section, and last to other 
entities which receive contingent capacity and firm energy 
under subsection (a)(2) of this section.
    (d) Water Availability.--Except with respect to energy 
purchased at the request of an allottee pursuant to subsection 
(a)(3), the obligation of the Secretary of Energy to deliver 
contingent capacity and firm energy pursuant to contracts 
entered into pursuant to this section shall be subject to 
availability of the water needed to produce such contingent 
capacity and firm energy. In the event that water is not 
available to produce the contingent capacity and firm energy 
set forth in Schedule A, Schedule B, and Schedule D, the 
Secretary of Energy shall adjust the contingent capacity and 
firm energy offered under those Schedules in the same 
proportion as those contractors' allocations of Schedule A, 
Schedule B, and Schedule D contingent capacity and firm energy 
bears to the full rated contingent capacity and firm energy 
obligations.
    [(e) Notwithstanding any other provisions of the law, funds 
advanced by non-Federal purchasers for use in the uprating 
program shall be deposited in the Colorado River Dam Fund and 
shall be available for the uprating program.
    [(f) Those amounts advanced by non-Federal purchasers shall 
be financially integrated as capital costs with other project 
costs for rate-setting purposes, and shall be returned to those 
purchasers advancing funds throughout the contract period 
through credits which include interest costs incurred by such 
purchasers for funds contributed to the Secretary of the 
Interior for the uprating program.]
    [(g)] (e) The provisions of this section constitute an 
exercise by the Congress of the right reserved by it in section 
5(b) of the Boulder Canyon Project Act, as amended and 
supplemented, to prescribe terms and conditions for [the 
renewal of] contracts for electrical energy generated at Hoover 
Dam. This section constitutes the exclusive method for 
disposing of capacity and energy from Hoover Dam for the period 
beginning [June 1, 1987, and ending September 30, 2017] October 
1, 2017, and ending September 30, 2067.
    [(h)] (f)(1) Notwithstanding any other provision of law, 
any claim that the provisions of subsection (a) of this section 
violates any rights to capacity or energy from the Boulder 
Canyon project is barred unless the complaint is filed within 
one year after the date of enactment of [this Act] the Hoover 
Power Allocation Act of 2011 in the United States Claims Court 
which shall have exclusive jurisdiction over this action. Any 
claim that actions taken by any administrative agency of the 
United States violates any right under this title or the 
Boulder Canyon Project Act or the Boulder Canyon Project 
Adjustment Act is barred unless suit asserting such claim is 
filed in a Federal court of competent jurisdiction within one 
year after final refusal of such agency to correct the action 
complained of.

           *       *       *       *       *       *       *

    [(i)] (g) It is the purpose of [subsections (c), (g), and 
(h) of this section] this Act to ensure that the rights of 
contractors for capacity and energy from the Boulder Canyon 
project for the period beginning [June 1, 1987, and ending 
September 30, 2017] October 1, 2017, and ending September 30, 
2067, will vest with certainty and finality.

           *       *       *       *       *       *       *

                                  
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