Calendar No. 101

104TH CONGRESS

1ST SESSION S. 395

[Report No. 104–78]

A BILL

To authorize and direct the Secretary of Energy to

other purposes.sell the Alaska Power Administration, and for

APRIL 27 (legislative day, APRIL 24), 1995

Reported with amendments and an amendment to the

title
II

Calendar No. 101

104TH CONGRESS

1ST SESSION S. 395

[Report No. 104–78]

To authorize and direct the Secretary of Energy to sell the Alaska Power

Administration, and for other purposes.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 13 (legislative day, JANUARY 30), 1995

Mr. MURKOWSKI (for himself, Mr. STEVENS, Mrs. FEINSTEIN, and Mr. KYL)

introduced the following bill; which was read twice and referred to the

Committee on Energy and Natural Resources

APRIL 27 (legislative day, APRIL 24), 1995

Reported by Mr. MURKOWSKI, with amendments and an amendment to the

title

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To authorize and direct the Secretary of Energy to sell

the Alaska Power Administration, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
2

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1 TITLE I

2 SECTION 101. SHORT TITLE.

3 This title may be cited as the ‘‘Alaska Power Admin4 istration Sale Act’’.

5 SEC. 102. SALE OF SNETTISHAM AND EKLUTNA HYDRO6 ELECTRIC PROJECTS.

7 (a) The Secretary of Energy is authorized and di8 rected to sell the Snettisham Hydroelectric Project (re9 ferred to in this Act as ‘‘Snettisham’’) to the State of

10 Alaska in accordance with the terms of this Act and the

11 February 10, 1989, Snettisham Purchase Agreement, as

12 amended, between the Alaska Power Administration of the

13 Department of Energy and the Alaska Power Authority.

14 (b) The Secretary of Energy is authorized and di15 rected to sell the Eklutna Hydroelectric Project (referred

16 to in this Act as ‘‘Eklutna’’) to the Municipality of An17 chorage doing business as Municipal Light and Power, the

18 Chugach Electric Association, Inc., and the Matanuska

19 Electric Association, Inc. (referred to in this Act as

20 ‘‘Eklutna Purchasers’’), in accordance with the terms of

21 this Act and the August 2, 1989, Eklutna Purchase

22 Agreement, as amended, between the Department of En23 ergy and the Eklutna Purchasers.

24 (c) The heads of other Federal departments and

25 agencies, including the Secretary of the Interior, shall as-
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1 sist the Secretary of Energy in implementing the sales au2 thorized and directed by this Act.

3 (d) The Secretary of Energy shall deposit sale pro4 ceeds in the Treasury of the United States to the credit

5 of miscellaneous receipts.

6 (e) There are authorized to be appropriated such

7 sums as may be necessary to prepare or acquire Eklutna

8 and Snettisham assets for sale and conveyance. Such prep9 arations and acquisitions shall provide sufficient title to

10 ensure the beneficial use, enjoyment, and occupancy to the

11 purchasers of the asset to be sold.

12 SEC. 103. EXEMPTION.

13 (a)(1) After the sales authorized by this Act occur,

14 Eklutna and Snettisham, including future modifications,

15 shall continue to be exempt from the requirements of the

16 Federal Power Act (16 U.S.C. 791a et. seq.).

17 (2) The exemption provided by paragraph (1) does

18 not affect the Memorandum of Agreement entered into be19 tween the State of Alaska, the Eklutna Purchasers, the

20 Alaska Energy Authority, and Federal fish and wildlife

21 agencies regarding the protection, mitigation of, damages

22 to, and enhancement of fish and wildlife, dated August

23 7, 1991, which remains in full force and effect.

24 (3) Nothing in this Act or the Federal Power Act pre25 empts the State of Alaska from carrying out the respon-
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1 sibilities and authorities of the Memorandum of Agree2 ment.

3 (b)(1) The United States District Court for the Dis4 trict of Alaska has jurisdiction to review decisions made

5 under the Memorandum of Agreement and to enforce the

6 provisions of the Memorandum of Agreement, including

7 the remedy of specific performance.

8 (2) An action seeking review of a Fish and Wildlife

9 Program (‘‘Program’’) of the Governor of Alaska under

10 the Memorandum of Agreement or challenging actions of

11 any of the parties to the Memorandum of Agreement prior

12 to the adoption of the Program shall be brought not later

13 than ninety days after the date of which the Program is

14 adopted by the Governor of Alaska, or be barred.

15 (3) An action seeking review of implementation of the

16 Program shall be brought not later than ninety days after

17 the challenged act implementing the program, or be

18 barred.

19 (c) With respect to Eklutna lands described in Ex20 hibit A of the Eklutna Purchase Agreement:

21 (1) The Secretary of the Interior shall issue

22 rights-of-way to the Alaska Power Administration

23 for subsequent reassignment to the Eklutna Pur24 chasers—

25 (A) at no cost to the Eklutna Purchasers;
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1 (B) to remain effective for a period equal

2 to the life of Eklutna as extended by improve3 ments, repairs, renewals, or replacements; and

4 (C) sufficient for the operation, mainte5 nance, repair, and replacement of, and access

6 to, Eklutna facilities located on military lands

7 and lands managed by the Bureau of Land

8 Management, including land selected by the

9 State of Alaska.

10 (2) If the Eklutna Purchasers subsequently sell

11 or transfer Eklutna to private ownership, the Bu12 reau of Land Management may assess reasonable

13 and customary fees for continued uses of the rights14 of-way on lands managed by the Bureau of Land

15 Management and military lands in accordance with

16 current law.

17 (3) Fee title to lands at Anchorage Substation

18 shall be transferred to Eklutna Purchasers at no ad19 ditional cost if the Secretary of the Interior deter20 mines that pending claims to, and selection of, those

21 lands are invalid or relinquished.

22 (4) With respect only to approximately eight

23 hundred and fifty-three acres of Eklutna lands iden24 tified in paragraphs 1. a., b., and c. of exhibit A of

25 the Eklutna Purchase Agreement, the State of Alas-
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1 ka may select, and the Secretary of the Interior shall

2 convey, to the State, improved lands under the selec3 tion entitlements in section 6(a) of the Act of July

4 7, 1958 (Public Law 85–508), and the North An5 chorage Land Agreement of January 31, 1983. The

6 conveyance is subject to the rights-of-way provided

7 to the Eklutna Purchasers under paragraph (1).

8 (d) With respect to the approximately two thousand

9 six hundred and seventy-one acres of Snettisham lands

10 identified in paragraphs 1. a. and b. of Exhibit A of the

11 Snettisham Purchase Agreement, the State of Alaska may

12 select, and the Secretary of the Interior shall convey to

13 the State, improved lands under the selection entitlement

14 in section 6(a) of the Act of July 7, 1958 (Public Law

15 85–508).

16 (e) Not later than one year after both of the sales

17 authorized in section 2 have occurred, as measured by the

18 transaction dates stipulated in the purchase agreements,

19 the Secretary of Energy shall—

20 (1) complete the business of, and close out, the

21 Alaska Power Administration;

22 (2) prepare and submit to Congress a report

23 documenting the sales; and
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1 (3) return unused balances of funds appro2 priated for the Alaska Power Administration to the

3 Treasury of the United States.

4 (f) The Act of July 31, 1950 (64 Stat. 382) is re5 pealed effective on the date, as determined by the Sec6 retary of Energy, when all Eklutna assets have been con7 veyed to the Eklutna Purchasers.

8 (g) Section 204 of the Flood Control Act of 1962

9 (Public Law 87–874; 76 Stat. 1193) is repealed effective

10 on the date, as determined by the Secretary of Energy,

11 when all Snettisham assets have been conveyed to the

12 State of Alaska.

13 (h) As of the later of the two dates determined in

14 subsection (f) and (g), section 302(a) of the Department

15 of Energy Organization Act (42 U.S.C. 7152 (a)) is

16 amended—

17 (1) in paragraph (1)—

18 (A) by striking out subparagraph (C); and

19 (B) by redesignating subparagraphs (D),

20 (E) and (F) as subparagraphs (C), (D), and

21 (E) respectively;

22 (2) in paragraph (2), by striking out ‘‘the Bon23 neville Power Administration, and the Alaska Power

24 Administration’’ and inserting in lieu thereof ‘‘and

25 the Bonneville Power Administration’’.
8

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1 (i) The Act of August 9, 1955 (69 Stat. 618), con2 cerning water resources investigation in Alaska, is re3 pealed.

4 (j) The sales of Eklutna and Snettisham under this

5 Act are not considered a disposal of Federal surplus prop6 erty under the following provisions of section 203 of the

7 Federal Property and Administration Services Act of 1949

8 (40 U.S.C. 484) and section 13 of the Surplus Property

9 Act of 1944 (50 U.S.C. app. 1622).

10 TITLE I

11 SECTION 101. SHORT TITLE.

12 This title may be cited as the ‘‘Alaska Power Adminis13 tration Asset Sale and Termination Act’’.

14 SEC. 102. SALE OF SNETTISHAM AND EKLUTNA HYDRO15 ELECTRIC PROJECTS.

16 (a) The Secretary of Energy is authorized and directed

17 to sell the Snettisham Hydroelectric Project (referred to in

18 this Act as ‘‘Snettisham’’) to the State of Alaska in accord19 ance with the terms of this Act and the February 10, 1989,

20 Snettisham Purchase Agreement, as amended, between the

21 Alaska Power Administration of the United States Depart22 ment of Energy and the Alaska Power Authority and the

23 Authority successors.

24 (b) The Secretary of Energy is authorized and directed

25 to sell the Eklutna Hydroelectric Project (referred to in this
9

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1 Act as ‘‘Eklutna’’) to the Municipality of Anchorage doing

2 business as Municipal Light and Power, the Chugach Elec3 tric Association, Inc., and the Matanuska Electric Associa4 tion, Inc. (referred to in this Act as ‘‘Eklutna Purchasers’’),

5 in accordance with the terms of this Act and the August

6 2, 1989, Eklutna Purchase Agreement, as amended, between

7 the Alaska Power Administration of the United States De8 partment of Energy and the Eklutna Purchasers.

9 (c) The heads of other Federal departments and agen10 cies, including the Secretary of the Interior, shall assist the

11 Secretary of Energy in implementing the sales authorized

12 and directed by this Act.

13 (d) Proceeds from the sales required by this title shall

14 be deposited in the Treasury of the United States to the

15 credit of miscellaneous receipts.

16 (e) There are authorized to be appropriated such sums

17 as may be necessary to prepare, survey and acquire

18 Eklutna and Snettisham assets for sale and conveyance.

19 Such preparations and acquisitions shall provide sufficient

20 title to ensure the beneficial use, enjoyment, and occupancy

21 by the purchaser.

22 SEC. 103. EXEMPTION AND OTHER PROVISIONS.

23 (a)(1) After the sales authorized by this Act occur,

24 Eklutna and Snettisham, including future modifications,
10

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1 shall continue to be exempt from the requirements of the

2 Federal Power Act (16 U.S.C. 791a et seq.) as amended.

3 (2) The exemption provided by paragraph (1) does not

4 affect the Memorandum of Agreement entered into among

5 the State of Alaska, the Eklutna Purchasers, the Alaska En6 ergy Authority, and Federal fish and wildlife agencies re7 garding the protection, mitigation of, damages to, and en8 hancement of fish and wildlife, dated August 7, 1991, which

9 remains in full force and effect.

10 (3) Nothing in this title or the Federal Power Act pre11 empts the State of Alaska from carrying out the responsibil12 ities and authorities of the Memorandum of Agreement.

13 (b)(1) The United States District Court for the District

14 of Alaska shall have jurisdiction to review decisions made

15 under the Memorandum of Agreement and to enforce the

16 provisions of the Memorandum of Agreement, including the

17 remedy of specific performance.

18 (2) An action seeking review of a Fish and Wildlife

19 Program (‘‘Program’’) of the Governor of Alaska under the

20 Memorandum of Agreement or challenging actions of any

21 of the parties to the Memorandum of Agreement prior to

22 the adoption of the Program shall be brought not later than

23 ninety days after the date of which the Program is adopted

24 by the Governor of Alaska, or be barred.
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1 (3) An action seeking review of implementation of the

2 Program shall be brought not later than ninety days after

3 the challenged act implementing the Program, or be barred.

4 (c) With respect to Eklutna lands described in Exhibit

5 A of the Eklutna Purchase Agreement:

6 (1) The Secretary of the Interior shall issue

7 rights-of-way to the Alaska Power Administration for

8 subsequent reassignment to the Eklutna Purchasers—

9 (A) at no cost to the Eklutna Purchasers;

10 (B) to remain effective for a period equal to

11 the life of Eklutna as extended by improvements,

12 repairs, renewals, or replacements; and

13 (C) sufficient for the operation of, mainte14 nance of, repair to, and replacement of, and ac15 cess to, Eklutna facilities located on military

16 lands and lands managed by the Bureau of Land

17 Management, including lands selected by the

18 State of Alaska.

19 (2) If the Eklutna Purchasers subsequently sell

20 or transfer Eklutna to private ownership, the Bureau

21 of Land Management may assess reasonable and cus22 tomary fees for continued use of the rights-of-way on

23 lands managed by the Bureau of Land Management

24 and military lands in accordance with existing law.
12

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1 (3) Fee title to lands at Anchorage Substation

2 shall be transferred to Eklutna Purchasers at no addi3 tional cost if the Secretary of the Interior determines

4 that pending claims to, and selections of, those lands

5 are invalid or relinquished.

6 (4) With respect to the Eklutna lands identified

7 in paragraph 1 of Exhibit A of the Eklutna Purchase

8 Agreement, the State of Alaska may select, and the

9 Secretary of the Interior shall convey to the State, im10 proved lands under the selection entitlements in sec11 tion 6 of the Act of July 7, 1958 (commonly referred

12 to as the Alaska Statehood Act, Public Law 85–508,

13 72 Stat. 339, as amended), and the North Anchorage

14 Land Agreement dated January 31, 1983. This con15 veyance shall be subject to the rights-of-way provided

16 to the Eklutna Purchasers under paragraph (1).

17 (d) With respect to the Snettisham lands identified in

18 paragraph 1 of Exhibit A of the Snettisham Purchase

19 Agreement and Public Land Order No. 5108, the State of

20 Alaska may select, and the Secretary of the Interior shall

21 convey to the State of Alaska, improved lands under the

22 selection entitlements in section 6 of the Act of July 7, 1958

23 (commonly referred to as the Alaska Statehood Act, Public

24 Law 85–508, 72 Stat. 339, as amended).
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1 (e) Not later than one year after both of the sales au2 thorized in section 102 have occurred, as measured by the

3 Transaction Dates stipulated in the Purchase Agreements,

4 the Secretary of Energy shall—

5 (1) complete the business of, and close out, the

6 Alaska Power Administration;

7 (2) submit to Congress a report documenting the

8 sales; and

9 (3) return unobligated balances of funds appro10 priated for the Alaska Power Administration to the

11 Treasury of the United States.

12 (f) The Act of July 31, 1950 (64 Stat. 382) is repealed

13 effective on the date, as determined by the Secretary of En14 ergy, that all Eklutna assets have been conveyed to the

15 Eklutna Purchasers.

16 (g) Section 204 of the Flood Control Act of 1962 (76

17 Stat. 1193) is repealed effective on the date, as determined

18 by the Secretary of Energy, that all Snettisham assets have

19 been conveyed to the State of Alaska.

20 (h) As of the later of the two dates determined in sub21 section (f) and (g), section 302(a) of the Department of En22 ergy Organization Act (42 U.S.C. 7152 (a)) is amended—

23 (1) in paragraph (1)—

24 (A) by striking subparagraph (C); and
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1 (B) by redesignating subparagraphs (D),

2 (E), and (F) as subparagraphs (C), (D), and (E)

3 respectively; and

4 (2) in paragraph (2) by striking out ‘‘and the

5 Alaska Power Administration’’ and by inserting

6 ‘‘and’’ after ‘‘Southwestern Power Administration,’’.

7 (i) The Act of August 9, 1955, concerning water re8 sources investigation in Alaska (69 Stat. 618), is repealed.

9 (j) The sales of Eklutna and Snettisham under this

10 title are not considered disposal of Federal surplus property

11 under the Federal Property and Administrative Services

12 Act of 1949 (40 U.S.C. 484) or the Act of October 3, 1994,

13 popularly referred to as the ‘‘Surplus Property Act of 1944’’

14 (50 U.S.C. App. 1622).

15 TITLE II

16 SEC. 201. SHORT TITLE

17 This title may be cited as ‘‘Trans-Alaska Pipeline

18 Amendment Act of 1995’’.

19 SEC. 202. TAPS ACT AMENDMENTS.

20 Section 203 of the Act entitled the ‘‘Trans-Alaska

21 Pipeline Authorization Act,’’ as amended (43 U.S.C.

22 1652), is amended by inserting the following new sub23 section (f):

24 ‘‘(f) EXPORTS OF ALASKAN NORTH SLOPE OIL.—
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1 ‘‘(1) Subject to paragraphs (2) and (3), not2 withstanding any other provision of law (including

3 any regulation), any oil transported by pipeline over

4 a right-of-way granted pursuant to this section may

5 be exported.

6 ‘‘(2) Except in the case of oil exported to a

7 country pursuant to a bilateral international oil sup8 ply agreement entered into by the United States

9 with the country before June 25, 1979, or to a coun10 try pursuant to the International Emergency Oil

11 Sharing Plan of the International Energy Agency,

12 the oil shall be transported by a vessel documented

13 under the laws of the United States and owned by

14 a citizen of the United States (as determined in ac15 cordance with section 2 of the Shipping Act, 1916

16 (46 U.S.C. App. 802)).

17 ‘‘(3) Nothing in this subsection shall restrict

18 the authority of the President under the Constitu19 tion, the International Emergency Economic Powers

20 Act (50 U.S.C. 1701 et seq.), or the National Emer21 gencies Act (50 U.S.C. 1601 et seq.) to prohibit ex22 portation of the oil.’’.

23 SEC. 203. SECURITY OF SUPPLY.

24 Section 410 of the Trans-Alaska Pipeline Authoriza25 tion Act (87 Stat. 594) is amended to read as follows:
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1 ‘‘The Congress reaffirms that the crude oil on the North

2 Slope of Alaska is an important part of the Nation’s oil

3 resources, and that the benefits of such crude oil should

4 be equitably shared, directly or indirectly, by all regions

5 of the country. The President shall use any authority he

6 may have to ensure an equitable allocation of available

7 North Slope and other crude oil resources and petroleum

8 products among all regions and all of the several States.’’.

9 SEC. 204. ANNUAL REPORT.

10 Section 103(f) of the Energy Policy and Conservation

11 Act (42 U.S.C. 6212(f)) is amended by adding at the end

12 thereof the following: ‘‘In the first quarter report for each

13 new calendar year, the President shall indicate whether

14 independent refiners in Petroleum Administration District

15 5 have been unable to secure adequate supplies of crude

16 oil as a result of exports of Alaskan North Slope crude

17 oil in the prior calendar year and shall make such rec18 ommendations to the Congress as may be appropriate.’’.

19 SEC. 205. GAO REPORT.

20 The Comptroller General of the United States shall

21 conduct a review of energy production in California and

22 Alaska and the effects of Alaskan North Slope crude oil

23 exports, if any, on consumers, independent refiners, and

24 shipbuilding and ship repair yards on the West Coast. The

25 Comptroller General shall commence this review four years
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1 after the date of enactment of this Act and, within one

2 year after commencing the review, shall provide a report

3 to the Committee on Energy and Natural Resources in

4 the Senate and the Committee on Resources in the House

5 of Representatives. The report shall contain a statement

6 of the principal findings of the review and such rec7 ommendations for consideration by the Congress as may

8 be appropriate.

9 SEC. 206. EFFECTIVE DATE.

10 This Act title and the amendments made by it shall

11 take effect on the date of enactment.

Amend the title so as to read: ‘‘To authorize and direct the Secretary of Energy to sell the Alaska Power Administration, and to authorize the export of Alaska North

Slope crude oil, and for other purposes.’’.