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103D CONGRESS

1ST SESSION H. R. 1129

To direct the President to develop a plan for transferring all real property,

facilities, and equipment of the Tennessee Valley Authority to public

and private entities, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 24, 1993

Mr. SANTORUM (for himself, Mr. INGLIS of South Carolina, Mr. DOOLITTLE,

and Mr. ZIMMER) introduced the following bill; which was referred to the

Committee on Public Works and Transportation

A BILL

To direct the President to develop a plan for transferring

all real property, facilities, and equipment of the Tennessee Valley Authority to public and private entities,

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,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Tennessee Valley Au5 thority Power Privatization Act of 1993’’.

6 SEC. 2. SENSE OF CONGRESS.

7 It is the sense of Congress that—
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1 (1) the power generation and transmission fa2 cilities of the Tennessee Valley Authority should be

3 privatized; and

4 (2) the transfer of all property of the Tennessee

5 Valley Authority remaining after such privatization

6 should be made to other Federal, State, and local

7 agencies in an orderly and expeditious manner.

8 SEC. 3. PURPOSES.

9 The purposes of this Act are—

10 (1) to achieve the intention of Congress set

11 forth in section 2 by requiring the President to de12 velop a plan—

13 (A) for the sale of the power generating

14 and transmission facilities and equipment of the

15 Tennessee Valley Authority to the private sector

16 in groupings that will introduce competition

17 into the generation and sale of electric power;

18 (B) for the transfer of the National Fer19 tilizer and Environmental Research Center to a

20 public or private entity which will carry out the

21 functions of such Center;

22 (C) for the transfer to other governmental

23 entities of all property of the Tennessee Valley

24 Authority remaining after the sales and trans-
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1 fers described in subparagraphs (A) and (B);

2 and

3 (D) for the orderly termination of the Ten4 nessee Valley Authority after the completion of

5 such sales and transfers; and

6 (2) to provide a method for reducing the na7 tional debt through the use of the income derived

8 from such sales and transfers.

9 SEC. 4. TVA PRIVATIZATION PLAN.

10 (a) IN GENERAL.—Not later than September 30,

11 1994, the President shall develop and transmit to Con12 gress a plan for transferring, by sale or otherwise, of all

13 real property, facilities, and equipment of the Tennessee

14 Valley Authority to appropriate public and private entities.

15 (b) CONTENTS.—The plan to be developed under sub16 section (a) shall include, at a minimum, recommendations

17 (including legislative recommendations) of the President

18 concerning each of the following:

19 (1) TRANSFER OF POWER FACILITIES AND

20 EQUIPMENT.—Transfer by sale of the power genera21 tion and transmission facilities and equipment of the

22 Tennessee Valley Authority, including real property

23 used in connection with such facilities and equip24 ment, for the purpose of maximizing proceeds from

25 such sales. Such transfers may provide for the sale
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1 of generating equipment and facilities to persons

2 other than the persons to whom transmission facili3 ties are sold. Such transfers shall be subject to the

4 following conditions: Former customers of power

5 from the Tennessee Valley Authority will continue to

6 be served and reliability of service will be ensured by

7 establishing control areas in cooperation with sur8 rounding control areas. Such transfers may provide,

9 to the extent practicable, for the grouping of facili10 ties utilizing different sources of power (including

11 coal-fired, nuclear, and hydroelectric generating fa12 cilities) and provide for access to the transmission

13 grids of the Tennessee Valley Authority by such

14 groupings to ensure availability of power from dif15 ferent sources and to enhance competition. All out16 standing loans associated with such facilities and

17 equipment shall be assumed by the purchasers.

18 (2) TRANSFER OF NATIONAL FERTILIZER AND

19 ENVIRONMENTAL RESEARCH CENTER FACILITIES

20 AND EQUIPMENT.—Transfer by sale of real property,

21 facilities, and equipment used by the National Fer22 tilizer and Environmental Research Center of the

23 Tennessee Valley Authority to a public or private en24 tity which agrees to continue to carry out the func25 tions of the Center for at least 5 years after assum-
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1 ing ownership. If such sale cannot be arranged, such

2 transfer may be by donation to an appropriate entity

3 subject to agreement that the functions of the Cen4 ter will be continued for at least 10 years.

5 (3) TRANSFER OF JURISDICTIONAL AUTHORITY

6 OVER REAL PROPERTY.—Transfer to appropriate

7 governmental departments and agencies, including

8 the National Park Service, of jurisdictional authority

9 over real property which is controlled by the Ten10 nessee Valley Authority and which is not transferred

11 under paragraphs (1) and (2).

12 (4) TRANSFER OF CERTAIN FUNCTIONS.—

13 Transfer to appropriate Federal departments and

14 agencies of functions of the Tennessee Valley Au15 thority which are not related to power generation.

16 (5) TERMINATION OF TVA.—Termination of the

17 Tennessee Valley Authority after the transfers under

18 paragraphs (1), (2), (3), and (4) have been made.

19 (c) ADDITIONAL REQUIREMENTS.—The plan devel20 oped under subsection (a) shall include—

21 (1) a step-by-step procedure to carry out the

22 sales and transfers described in subsection (b);

23 (2) a timetable for implementation of each step

24 of the plan;
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1 (3) an estimate of the amount of anticipated

2 net proceeds from the sale of assets of the Ten3 nessee Valley Authority; and

4 (4) an estimate of the cost of implementing the

5 plan.

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