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[Senate Report 111-329]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 615
111th Congress                                                   Report
                                 SENATE
 2d Session                                                     111-329

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

 
                      HOOVER POWER ALLOCATION ACT

                                _______
                                

               September 27, 2010.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 4349]

    The Committee on Energy and Natural Resources, to which was 
referred the Act (H.R. 4349) to further allocate and expand the 
availability of hydroelectric power generated at Hoover Dam, 
and for other purposes, having considered the same, reports 
favorably thereon without amendment and recommends that the Act 
do pass.

                                Purpose

    The purpose of H.R. 4349 is to amend the Hoover Power Plant 
Act of 1984 (43 U.S.C. 619) to further allocate and expand the 
availability of hydroelectric power generated at Hoover Dam, 
and for other purposes.

                          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:
    ``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.
    H.R. 4349 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

    H.R. 4349 was introduced by Representative Napolitano on 
December 16, 2009 and passed the House of Representatives by 
voice vote on June 8, 2010. Companion legislation, S. 2891, was 
introduced in the Senate by Senator Reid on December 16, 2009. 
The Subcommittee on Water and Power held a hearing on H.R. 4349 
and S. 2891 on June 9, 2010. The Committee on Energy and 
Natural Resources considered H.R. 4349 at its business meeting 
on July 21, 2010, and ordered it favorably reported without 
amendment.

                        Committee Recommendation

    The Committee on Energy and Natural Resources, in open 
business session on July 21, 2010, by voice vote of a quorum 
present, recommends that the Senate pass H.R. 4349.

                      Section-by-Section Analysis

    Section 1 sets forth the short title as the ``Hoover Power 
Allocation Act of 2010''.
    Section 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.
    Section 2(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 
equalallocations, 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.
    Sections 2(e) and 2(f) make technical and conforming 
changes to the Hoover Power Act.
    Section 2(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.
    Section 2(h) amends section 105(b) of the Hoover Power Act 
to change the year ``2017'' to ``2067''.
    Section 2(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.
    Section 2(j) amends the Hoover Power Act by stating that 
the obligation of the Secretary to Energy to deliver contingent 
capacity and firm energy is subject to the availability of the 
water needed to produce the contingent capacity and firm 
energy.
    Section 2(k) repeals sections 105(e) and (f) of the Hoover 
Power Act.
    Section 2(l) provides for continued congressional oversight 
regarding the terms and conditions of the governing contracts 
for power generated at Hoover Dam until September 30, 2067.
    Sections 2(m) and 2(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:

H.R. 4349--Hoover Power Allocation Act of 2010

    H.R. 4349 would update the statutory allocation of electric 
power generated at the Hoover Dam among various users. The 
current allocation expires at the end of fiscal year 2017. The 
legislation would increase the amount of electricity to be 
marketed by the Western Area Power Administration (WAPA) and 
would allocate much of the dam's currently unallocated 
electricity to Native American Indian tribes and other 
entities. The revised allocations would remain in effect from 
2017 through 2067. Based on information from WAPA, CBO 
estimates that implementing this act would have a negligible 
effect on net direct spending and spending subject to 
appropriation.
    In the absence of this legislation, CBO expects that WAPA 
would allocate the electricity from the Hoover Dam by 
regulation. CBO estimates that any differences between the 
electricity allocation under H.R. 4349 and the allocations 
developed under such regulations would have a negligible effect 
on offsetting receipts (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 act would have no significant impact on WAPA's 
administrative costs, which are funded by appropriations and 
offset by proceeds from the sale of electricity.
    The Statutory Pay-As-You-Go Act of 2010 establishes budget 
reporting and enforcement procedures for legislation affecting 
direct spending or revenues. The net changes in outlays that 
are subject to those pay-as-you-go procedures are shown in the 
following table.

    CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4349 AS ORDERED REPORTED BY THE SENATE COMMITTEE ON ENERGY AND NATURAL RESOURCES ON JULY 21, 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2010   2011   2012   2013   2014   2015   2016   2017   2018   2019   2020  2010-2015  2010-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact.......................      0      0      0      0      0      0      0      0      0      0      0         0          0
--------------------------------------------------------------------------------------------------------------------------------------------------------

    H.R. 4349 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on State, local, or tribal governments.
    On May 20, 2010, CBO transmitted a cost estimate for H.R. 
4349, as ordered reported by the House Committee on Natural 
Resources. The two versions of the legislation are similar and 
the 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 H.R. 4349.
    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 H.R. 4349 as ordered reported.

                   Congressionally Directed Spending

    H.R. 4349, 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

   Statement of Timothy J. Meeks, Administrator, Western Area Power 
                  Administration, Department of Energy

    Madam Chairwoman and Members of the Subcommittee, I am 
Timothy J. Meeks, Administrator of the United States Department 
of Energy's Western Area Power Administration (Western). I am 
pleased to be here today to discuss S. 2891, the Hoover Power 
Allocation Act of 2009. 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, 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. 
In the 1984 Act, Congress directed the Secretary of Energy to 
offer renewal contracts to existing contractors and provided 
guidance for marketing the capacity gained through the uprating 
program.
    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 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 is composed of a 
series of proposals introduced to the public through Federal 
Register notices, 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 the most 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 proposes several key aspects of the allocation 
effort. Among other things, this Federal Register notice 
proposes the application of Western's Energy Planning and 
Management Program, extends a major percentage of the 
marketable resource to existing contractors, reserves an 
approximate 5 percent resource pool to be allocated to new 
contractors, and provides for 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 and engaged the 
attendees through question and answer sessions. Public comment 
forums were held from January 19-21, 2010. Interested parties 
were provided an opportunity to submit comments related to 
Western's proposals contained in the November Federal Register 
notice. The comment period was extended from January 29, 2010, 
to September 30, 2010, via a Federal Register notice dated 
April 16, 2010. Western is in the process of reviewing the 
submissions received to date. Depending on the public input 
received, Western projects that some initial decisions will be 
made later this year. In the event that a resource pool is 
established, Western will conduct a public process to determine 
what marketing criteria would be applicable to the disposition 
of the resource pool. Western projects that final allocations 
will be determined and contracts executed by the spring of 
2013, giving other entities time to plan prior to the 
expiration of the contracts in 2017.
    Western has reviewed S. 2891. There are several 
similarities between the draft legislation and Western's 
initial proposals brought forward in the November Federal 
Register notice, and there are some distinct 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 Procedures 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 the public input into policy decisions allows 
Western to progress to results that are in the public's best 
interest and lead to the most widespread use of this resource.
    S. 2891 directs Western to allocate certain amounts of 
Hoover power within eighteen (18) months after enactment. Based 
on historical practice and in review of Western's marketing 
project plans, an 18-month time frame may not be sufficient to 
thoroughly solicit and integrate public input into our 
marketing criteria and final allocations. Western supports the 
action that the House of Representatives Committee on Natural 
Resources took on H.R. 4349, which revised the amount of time 
allowed for the allocation of power to new customers from 18 
months to thirty-six (36) months after enactment.
    Western has 15 current contractors who receive an 
allocation of Hoover power. Two of those existing contractors 
are the Colorado River Agency (CRC) and the Arizona Power 
Authority (APA). APA and CRC sub-allocate their allocations to 
customers under State prescribed guidelines and regulations. 
Both S. 2891 and Western's administrative effort propose an 
amount of resource to be allocated to new customers. Western's 
process affords the opportunity of full public input and 
ensures all interested parties are considered in the power's 
allocation. Western supports the House of Representatives 
Committee on Natural Resources elimination of language in H.R. 
4349 that would have required a state role in developing 
criteria associated with the allocation of power to new 
customers. This language potentially restricted the open public 
process for creating marketing criteria for those power 
allocations. 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 history, 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 have an allocation of Hoover power is in the public 
interest. Western has identified 59 federally recognized Native 
American Tribes in the BCP marketing area and is in the process 
of ensuring they are afforded an opportunity to participate in 
the public process. Western supports the revision made to the 
House version of this bill that expressly provides for the 
tribes to contract directly with Western to obtain a Hoover 
allocation.
    S. 2891 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 November 
20, 2009, Federal Register notice, Western proposes to market 
2,044 megawatts of contingent capacity; 30 megawatts below the 
maximum rating. The retention of 30 megawatts of contingent 
Hoover Dam capacity for use by Western for project integration 
purposes would assist in providing the tools needed 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. 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. Should Western be 
unable to retain approximately 30 megawatts, Western expects to 
procure replacement power from the market at a higher cost, if 
it is available. These higher costs would in turn be passed 
through to Western's customers in the form of higher rates.
    S. 2891 would direct that the existing contractual amounts 
totaling 4,527,001 megawatt-hours annually be allocated. In 
consultation with the Bureau of Reclamation (Reclamation) and 
in review of the most recent hydrologic studies, Western 
observed and proposed that 4,116,000 megawatt-hours would 
better align with the actual availability of the resource. 
Western's historical practice is to market an amount of 
generation that is based upon projected available generation. 
Remarketing the existing 4,527,001 megawatt-hours is possible; 
however, the 4,527,001 megawatt-hour level of generation has 
only been achieved a few times in the last 30 years. 
Reclamation's forecast studies exhibit that this level of 
generation would be fairly improbable.
    S. 2891 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 Contract No. 95-PAO-10616. Western finds significant 
value in the provisions and results of the Implementation 
Agreement. However, this agreement was constructed for unique 
circumstances that existed in 1994. Should we retain this 
feature, I recommend that the current Implementation Agreement 
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. 2891 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. 2891 recognizes these funding 
requirements and obligates new power customers to contribute to 
this funding in a proportional manner. Supporters of S. 2891 
note that the 50-year obligation of the LCR MSCP is, in part, 
reason to proceed with 50-year Hoover power supply contracts. 
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 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. The landscape of 
potential customers in decades to come has the capability to 
yield new prospective customers, and we strive to meet the 
needs of all our customers; existing and future.
    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 as work 
continues on this legislation. In the absence of congressional 
action, Western will uphold its 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. 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

 (August 17, 1984, Public Law 98-381, 98 Stat. 1333, 43 U.S.C. 619; as 
 amended by the Act of October 24, 1992, Public Law 102-486, 106 Stat, 
                                 2776)

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

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,
    Section 1. This Act may be cited as the ``Hoover Power 
Plant Act of 1984''.

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       250,694
City of Glendale........................................        18,000        47,398        20,313        67,711
City of Pasadena........................................        11,000        40,655        17,424        58,079
City of Burbank.........................................         5,125        14,811         6,347        21,158
Arizona Power Authority.................................       189,000       452,192       193,797       645,989
Colorado River Commission of Nevada.....................       189,000       452,192       193,797       645,989
United States, for Boulder City.........................        20,000        56,000        24,000        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

----------------------------------------------------------------------------------------------------------------
                                                                             Firm energy  (thousands of kWh)
                         [State                            Contingent  -----------------------------------------
                                                            capacity       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..............................................       508,000       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 the amount of 200
 million kilowatthours is not generated,
 less amounts of excess energy delivered.
Second: Meeting Hoover Dam contractual      ............................
 obligations under schedule A of section
 105(a)(1)(A) and under schedule B of
 section 105(a)(1)(B) not exceeding 26
 million kilowatthours in each year of
 operation.
Third: Meeting the energy requirements of   Arizona, Nevada, California]
 the three States, such available excess
 energy to be divided equally among the
 States.
------------------------------------------------------------------------

                               SCHEDULE C

                             EXCESS ENERGY

------------------------------------------------------------------------
 Priority of entitlement to excess energy               State
------------------------------------------------------------------------
First: Meeting Arizona's first priority     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 2010, a 
resource pool equal to 5 percent of the full rated capacity of 
2,074,000 kilowatts, and associated firm energy, as shown in 
Schedule D (referred to in this section as `Schedule D 
contingent capacity and firm energy'):

                               SCHEDULE D

     LONG-TERM SCHEDULE D RESOURCE POOL OF CONTINGENT CAPACITY AND 
                ASSOCIATED FIRM ENERGY FOR NEW ALLOTTEES

----------------------------------------------------------------------------------------------------------------
                                                           Contingent        Firm energy  (thousands of kWh)
                          State                             capacity   -----------------------------------------
                                                              (kW)         Summer        Winter         Total
----------------------------------------------------------------------------------------------------------------
New Entities Allocated by the Secretary of Energy.......        69,170       105,637        45,376       151,013
New Entities Allocated by State:
    Arizona.............................................        11,510        17,580         7,533        25,113
    California..........................................        11,510        17,580         7,533        25,113
    Nevada..............................................        11,510        17,580         7,533        25,113
                                                         -------------------------------------------------------
        Totals..........................................       103,700       158,377        67,975       226,352
----------------------------------------------------------------------------------------------------------------

    (B) The Secretary of Energy shall offer Schedule D 
contingency capacity and firm energy to entities not receiving 
contingent capacity and firm energy under subparagraphs (A) and 
(B) of paragraph (1) (referred to in this section as `new 
allottees') for delivery commencing October 1, 2017 pursuant to 
this subsection. In this subsection, the term `the marketing 
area for the Boulder City Area Projects' shall have the same 
meaning as in appendix A of the General Consolidated Power 
Marketing Criteria or Regulations for Boulder City Area 
Projects published in the Federal Register on December 28, 1984 
(49 Federal Register 50582 et seq.) (referred to in this 
section as the `Criteria').
    (C)(i) Within 36 months of the date of enactment of the 
Hoover Power Allocation Act of 2010, the Secretary of Energy 
shall allocate through the Western Area Power Administration 
(referred to in this section as `Western'), for delivery 
commencing October 1, 2017, for use in the marketing area for 
the Boulder City Area Projects 66.7 percent of the Schedule D 
contingent capacity and firm energy to new allottees that are 
located within the marketing area for the Boulder City Area 
Projects and that are--
          (I) eligible to enter into contracts under section 5 
        of the Boulder Canyon Project Act (43 U.S.C. 617d); or
          (II) federally recognized Indian tribes.
    (ii) In the case of Arizona and Nevada, Schedule D 
contingent capacity and firm energy for new allottees other 
than federally recognized Indian tribes shall be offered 
through the Arizona Power Authority and the Colorado River 
Commission of Nevada, respectively. Schedule D contingent 
capacity and firm energy allocated to federally recognized 
Indian tribes shall be contracted for directly with Western.
    (D) Within 1 year of the date of enactment of the Hoover 
Power Allocation Act of 2010, the Secretary of Energy also 
shall allocate, for delivery commencing October 1, 2017, for 
use in the marketing area for the Boulder City Area Projects 
11.1 percent of the Schedule D contingent capacity and firm 
energy to each of--
          (i) the Arizona Power Authority for allocation to new 
        allottees in the State of Arizona;
          (ii) the Colorado River Commission of Nevada for 
        allocation to new allottees in the State of Nevada; and
          (iii) Western for allocation to new allottees within 
        the State of California, provided that Western shall 
        have 36 months to complete such allocation.
    (E) Each contract offered pursuant to this subsection shall 
include a provision requiring the new allottee to pay a 
proportionate share of its State's respective contribution 
(determined in accordance with each State's applicable funding 
agreement) to the cost of the Lower Colorado River Multi-
Species Conservation Program (as defined in section 9401 of the 
Omnibus Public Land Management Act of 2009 (Public Law 111-11; 
123 Stat. 1327)), and to execute the Boulder Canyon Project 
Implementation Agreement Contract No. 95-PAO-10616 (referred to 
in this section as the `Implementation Agreement').
    (F) Any of the 66.7 percent of Schedule D contingent 
capacity and firm energy that is to be allocated by Western 
that is not allocated and placed under contract by October 1, 
2017, shall be returned to those contractors shown in Schedule 
A and Schedule B in the same proportion as those contractors' 
allocations of Schedule A and Schedule B contingent capacity 
and firm energy. Any of the 33.3 percent of Schedule D 
contingent capacity and firm energy that is to be distributed 
within the States of Arizona, Nevada, and California that is 
not allocated and placed under contract by October 1, 2017, 
shall be returned to the Schedule A and Schedule B contractors 
within the State in which the Schedule D contingent capacity 
and firm energy were to be distributed, in the same proportion 
as those contractors' allocations of Schedule A and Schedule B 
contingent capacity and firm energy.
    [(2)] (3) The total obligation of the Secretary of Energy 
to deliver firm energy pursuant to [schedule A of section 
105(a)(1)(A) and schedule B of section 105(a)(1)(B)] paragraphs 
(1)(A), (1)(B), and (2) is 4,527.001 million kilowatthours in 
each year of operation. To the extent that the actual 
generation at Hoover Powerplant in [any] each year of operation 
(less deliveries thereof to Arizona required by its first 
priority under [schedule C] Schedule C of section 105(a)(1)(C) 
whenever actual generation in any year of operation is in 
excess of 4,501.001 million kilowatthours) is less than 
4,527.001 million kilowatthours, such deficiency shall be borne 
by the holders of contracts under said [schedules A and B] 
Schedules A, B, and D in the ratio that the sum of the 
quantities of firm energy to which each contractor is entitled 
pursuant to said schedules bears to 4,527.001 million 
kilowatthours. At the request of any such contractor, the 
Secretary of Energy will purchase energy to meet that 
contractor's deficiency at such contractor's expense.
    [(3)] (4) Subdivision E of the ``General Consolidated Power 
Marketing Criteria or Regulations for Boulder City Area 
Projects'' published in the Federal Register May 9, 1983 (48 
Federal Register commencing at 20881), hereinafter referred to 
as the ``Criteria'' or as the ``Regulations'' shall be deemed 
to have been modified to conform to this section. The Secretary 
of Energy shall cause to be included in the Federal Register a 
notice conforming the text of said Regulations to such 
modifications.]
    (4) Subdivision E of the Criteria shall be deemed to have 
been modified to conform to this section, as modified by the 
Hoover Power Allocation Act of 2010. The Secretary of Energy 
shall cause to be included in the Federal Register a notice 
conforming the text of the regulations to such modifications.
    [(4)] (5) Each contract offered under subsection (a)(1) of 
this section shall:
          [(A) expire September 30, 2017;]
          (A) in accordance with section 5(a) of the Boulder 
        Canyon Project Act (43 U.S.C. 617d(a)), expire 
        September 30, 2067;
          (B) not restrict use to which the capacity and energy 
        contracted for by the Metropolitan Water District of 
        Southern California may be placed within the State of 
        California: Provided, That to the extent practicable 
        and consistent with sound water management and 
        conservation practice, the Metropolitan Water District 
        of Southern California [shall use] shall allocate such 
        capacity and energy to pump available Colorado River 
        water prior to using such capacity and energy to pump 
        California State water project water; [and]
          (C) conform to the applicable provisions of 
        subdivison E of the Criteria, commencing at 48 Federal 
        Register 20881, modified as provided in this section. 
        To the extent that said provisions of the Criteria, as 
        so modified, are applicable to contracts entered into 
        under this section, those provisions are hereby 
        ratified[.];
          (D) authorize and require Western to collect from new 
        allottees a pro rata share of Hoover Dam repayable 
        advances paid for by contractors prior to October 1, 
        2017, and remit such amounts to the contractors that 
        paid such advances in proportion to the amounts paid by 
        such contractors as specified in section 6.4 of the 
        Implementation Agreement;
          (E) permit transactions with an independent system 
        operator; and
          (F) contain the same material terms included in 
        section 5.6 of those long-term contracts for purchases 
        from the Hoover Power Plant that were made in 
        accordance with this Act and are in existence on the 
        date of enactment of the Hoover Power Allocation Act of 
        2010.
    (b) Nothing in the Criteria shall be construed to prejudice 
any rights conferred by the Boulder Canyon Project Act, as 
amended and supplemented, on the holder of a contract described 
in subsection (a) of this section not in default thereunder on 
September 30, [2017] 2067.
    [(c)(1) The Secretary of Energy shall not execute a 
contract described in subsection (a)(1)(A) of this section with 
any entity which is a party to the action entitled the ``State 
of Nevada, et al. against the United States of America, et 
al.'' in the United States District Court for the District of 
Nevada, case numbered CV LV '82 441 RDF, unless that entity 
agrees to file in that action a stipulation for voluntary 
dismissal with prejudice of its claims, or counterclaims, or 
crossclaims, as the case may be, and also agrees to file with 
the Secretary a document releasing the United States, its 
officers and agents, and all other parties to that action who 
join in that stipulation from any claims arising out of the 
disposition under this section of capacity and energy from the 
Boulder Canyon project. The Attorney General shall join on 
behalf of the United States, its officers and agents, in any 
such voluntary dismissal and shall have the authority to 
approve on behalf of the United States the form of each 
release.
    [(2) If after a reasonable period of time as determined by 
the Secretary, the Secretary is precluded from executing a 
contract with an entity by reason of paragraph (1) of this 
subsection, the Secretary shall offer the capacity and energy 
thus available to other entities in the same State eligible to 
enter into such contracts under section 5 of the Boulder Canyon 
Project Act.]
    (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) 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.]
    (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 2010 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.
    (2) Any contract entered into pursuant to section 105 or 
section 107 of this Act shall contain provisions by which any 
dispute or disagreement as to interpretation or performance of 
the provisions of this title or of applicable regulations or of 
the contract may be determined by arbitration or court 
proceedings. The Secretary of Energy or the Secretary of the 
Interior, as the case may be, if authorized to act for the 
United States in such arbitration or court proceedings and, 
except as provided in paragraph (1) of this subsection, 
jurisdiction is conferred upon any district court of the United 
States of proper venue to determine the dispute.
    [(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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