I

105TH CONGRESS

2D SESSION H. R. 4834

To ensure salmon recovery in the Pacific Northwest, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 4, 1998

Ms. FURSE introduced the following bill; which was referred to the Committee

on Resources, and in addition to the Committee on Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To ensure salmon recovery in the Pacific Northwest, 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 ‘‘Northwest Salmon Re5 covery Act of 1998’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that:

8 (1) In order to deal with significant changes in

9 the Nation’s electric utility industry, and to continue
2

•HR 4834 IH

1 to enjoy the considerable benefits the Pacific North2 west receives from the Federal Columbia River

3 Power System through the Bonneville Power Admin4 istration, new tools are needed to ensure that the

5 electric power customers of the Administration repay

6 all the costs associated with the system, including

7 the public obligations to restore fish and wildlife,

8 meet treaty and trust obligations, and pay the

9 United States Treasury and the Washington Public

10 Power Supply System bondholders.

11 (2) In addition, new tools are needed to ensure

12 salmon recovery and promote conservation and re13 newable resources in the Pacific Northwest region.

14 SEC. 3. DEFINITIONS.

15 For purposes of this Act:

16 (1) The term ‘‘Administration’’ means the Bon17 neville Power Administration.

18 (2) The term ‘‘Administrator’’ means the Ad19 ministrator of the Bonneville Power Administration.

20 (3) The term ‘‘Council’’ means the Pacific

21 Northwest Electric Power and Conservation Plan22 ning Council established by the Pacific Northwest

23 Electric Power Planning and Conservation Act.

24 (4) The term ‘‘Commission’’ means the Federal

25 Energy Regulatory Commission.
3

•HR 4834 IH

1 (5) The terms ‘‘region’’ and ‘‘Pacific North2 west’’ have the meaning provided for such terms by

3 section 3(11) of the Pacific Northwest Electric

4 Power Planning and Conservation Act.

5 (6) The term ‘‘Secretary’’ means the Secretary

6 of the Interior.

7 (7) The term ‘‘States’’ means the States of Or8 egon, Washington, Idaho, Montana, and Alaska.

9 (8) The term ‘‘tribes’’ means the following fed10 erally recognized Indian tribes: Confederated Salish

11 and Kootenai Tribes, Shoshone-Bannock Tribe, Nez

12 Perce Tribe, Kootenai Tribe of Idaho, Coeur d’Alene

13 Tribe, Shoshone-Paiute Tribes, Burns-Paiute Tribe,

14 Confederated Tribes of Warm Springs, Confederated

15 Tribes of Umatilla, and Confederated Tribes of

16 Yakama, Spokane Tribe, Colville Tribe, and Kalispel

17 Tribe.

18 (9) The term ‘‘unified plan’’ means the unified

19 plan developed under section 4 of this Act.

20 (10) The term ‘‘WPPSS’’ means the Washing21 ton Public Power Supply System.

22 SEC. 4. GOVERNANCE.

23 The Secretary of the Interior shall, in consultation

24 with the Federal, State, and tribal governments in the Pa25 cific Northwest, develop a unified plan for salmon recovery
4

•HR 4834 IH

1 in the region by December 31, 1999. The goal of this plan

2 shall be to restore sustainable, naturally reproducing salm3 on populations to support tribal and nontribal harvest and

4 cultural and economic practices. The plan shall address

5 treaty, trust, and Endangered Species Act responsibilities,

6 the fish mitigation and enhancement requirements of the

7 Pacific Northwest Electric Power Planning and Conserva8 tion Act, the water quality standards under the Clean

9 Water Act, and the United States-Canada Pacific Salmon

10 Treaty commitments. Implementation of the unified plan

11 and the Northwest Power Planning Council’s fish and

12 wildlife program shall be overseen by the Secretary of the

13 Interior. The Secretary shall promulgate a rule, in accord14 ance with the applicable requirements of title 5 of the

15 United States Code, applicable environmental require16 ments, and other applicable requirements of law, contain17 ing the plan developed under this section.

18 SEC. 5. FISCAL ACCOUNTABILITY.

19 (a) ACCOUNTING SYSTEM.—

20 (1) REQUIREMENTS.—Not later than 12

21 months after the date of the enactment of this Act,

22 the Secretary of Energy and the Secretary of the

23 Treasury, in consultation with the Office of Manage24 ment and Budget and the General Accounting Of25 fice, shall establish an accounting system for the Ad-
5

•HR 4834 IH

1 ministration that meets each of the following re2 quirements:

3 (A) REPAYMENT OF COSTS TO THE

4 UNITED STATES TREASURY.—The accounting

5 system shall ensure that all costs repayable to

6 the United States Treasury are paid in a timely

7 manner. The accounting system shall provide

8 for independent, outside reviews of Administra9 tion repayment studies and include the views of

10 the Federal Energy Regulatory Commission.

11 Such reviews shall assess assumptions and

12 methodologies, application of appropriate inter13 est rates, and whether all power-related costs

14 are included for repayment.

15 (B) FISH AND WILDLIFE COSTS.—The ac16 counting system shall properly and accurately

17 identify costs allocable to compliance with the

18 restoration of fish and wildlife in the region, in19 cluding treaty, trust, and Endangered Species

20 Act responsibilities of the Administrator, the

21 fish mitigation and enhancement requirements

22 of the Pacific Northwest Electric Power Plan23 ning and Conservation Act, and the water qual24 ity standards under the Clean Water Act. The

25 Administration is prohibited from allocating to
6

•HR 4834 IH

1 fishery restoration accounts the costs of spills

2 or releases of water that result in power loss or

3 which are required for purposes of flood control,

4 irrigation, navigation, or other authorized ac5 tivities.

6 (2) ACCOUNTING PRINCIPLES AND REQUIRE7 MENTS.—The accounting system shall provide proce8 dures to ensure regular consultation with Federal,

9 State, and tribal governments in the region, tracking

10 of the costs associated with each of the Administra11 tor’s significant responsibilities, including those re12 ferred to in paragraph (1).

13 (3) PUBLIC AVAILABILITY.—The system shall

14 contain procedures to ensure that the books and

15 records of the Administration, including all account16 ing records regarding the costs allocated to fishery

17 restoration, public purposes, and the WPPSS debt,

18 are available to the public.

19 (4) COMPLIANCE.—The system shall contain

20 procedures for the filing of complaints with the Sec21 retary of Energy by interested persons seeking to

22 ensure compliance with this section.

23 (b) FISH AND WILDLIFE BUDGET MANAGEMENT

24 AND ACCOUNTABILITY.—The Secretaries of the Interior,

25 Energy, Commerce, and the Army shall implement (until
7

•HR 4834 IH

1 the unified plan takes effect) the Memorandum of Agree2 ment and Annex on Budget Management and Accountabil3 ity adopted in September 1996, including procedures for

4 effective regional involvement and accountability in the ex5 penditure of moneys from the Administration’s fund pur6 suant to section 4(h)(10) of the Pacific Northwest Electric

7 Power Planning and Conservation Act. The following pro8 cedures shall apply to administration of the Memorandum

9 of Agreement and the unified plan:

10 (1) Open and accurate methods for tracking the

11 funding, implementation, and performance of activi12 ties.

13 (2) Independent scientific review of activities

14 funded pursuant to this Act. Such independent sci15 entific review shall be undertaken by an independent

16 scientific advisory board appointed by the Secretary

17 of the Interior, in consultation with the region’s

18 State and tribal governments. Appointments to the

19 Board will take into account recommendations from

20 the chair of the National Research Council.

21 (3) Coordinated and integrated project

22 prioritization processes for selection of activities

23 (under both the unified plan and the Council’s fish

24 and wildlife program) to be funded pursuant to this

25 Act to be implemented by State and tribal govern-
8

•HR 4834 IH

1 ments and the Secretaries of the Interior, Energy,

2 Commerce, and the Army for all fish and wildlife ex3 penditures pursuant to this Act, using consistent cri4 teria that allow for choices among direct, reimburs5 able and capital, and other expenditure categories.

6 (4) Effective procedures for resolution of dis7 putes regarding budget management and account8 ability.

9 (c) REPEAL.—Section 4(h)(10)(D) of the Pacific

10 Northwest Electric Power Planning and Conservation Act

11 (16 U.S.C. 839b(h)(10)(D)) is hereby repealed.

12 SEC. 6. PAYMENTS TOWARD THE NATURAL RESOURCES RE13 COVERY FUND AND THE WPPSS DEBT.

14 (a) NATURAL RESOURCES RECOVERY FUND.—

15 (1) ESTABLISHMENT.—The Secretary of the In16 terior shall establish a Natural Resources Recovery

17 Fund. The Fund shall be managed by the Secretary.

18 (2) USES OF FUND.—The Secretary of the In19 terior shall expend amounts in the Fund in a man20 ner consistent with the Memorandum of Agreement

21 referred to in section 5 until the unified plan takes

22 effect. When the unified plan takes effect, the Fund

23 shall be administered in a manner consistent with

24 such unified plan. If no unified plan exists, the Sec25 retary of the Interior shall allocate funds in con-
9

•HR 4834 IH

1 sultation with States, tribes, and Federal agencies.

2 Amounts in the Fund shall be used for the restora3 tion of fish and wildlife in the region, including

4 meeting treaty, trust, and Endangered Species Act

5 responsibilities, the fish mitigation and enhancement

6 requirements of the Pacific Northwest Electric

7 Power Planning and Conservation Act, and imple8 mentation of measures necessary to meet the water

9 quality standards under the Clean Water Act. Mon10 eys in the Fund may also be used to promote con11 servation and renewable energy projects.

12 (3) SOURCE OF MONIES.—All fees collected

13 under paragraph (4) shall be deposited in the Fund,

14 and such fees shall be available without further ap15 propriation for the purposes set forth in paragraph

16 (2).

17 (4) DISTRIBUTION FEE.—Each public and in18 vestor-owned utility that purchases electric power

19 from the Administrator and makes retail sales of

20 electric power in the region shall collect and deposit

21 in the Fund a fee in the amount of 3 mills per kilo22 watt hour on all retail electric power sales made by

23 such utility in the region during the 15 calendar

24 years following the date of the enactment of this

25 Act. During such 15-year period, the Administrator
10

•HR 4834 IH

1 shall collect from each direct service industrial cus2 tomer of the Administrator (as defined in section

3 3(8) of the Pacific Northwest Electric Power Plan4 ning and Conservation Act) a fee in the amount of

5 3 mills per kilowatt hour.

6 (b) PAYMENTS OF WPPSS DEBT.—In order to en7 sure that the costs of repayment of Washington Public

8 Power Supply System debt is repaid and fairly allocated

9 to all Administration customers, the Administrator shall

10 establish, collect, and use for repayment of the WPPSS

11 debt each of the following fees and charges:

12 (1) FEE OR SURCHARGE FOR CERTAIN NEW

13 CONTRACTS.—The Administrator shall require each

14 direct service industrial customer (as defined in sec15 tion 3(8) of the Pacific Northwest Electric Power

16 Planning and Conservation Act) that enters into a

17 new contract with the Administrator for the delivery

18 of electric energy by the Administrator during the

19 period beginning after the date of the enactment of

20 this Act and ending in the year 2006 to pay either

21 a fee established by the Administrator or an addi22 tional percentage surcharge over the otherwise appli23 cable rates.

24 (2) EXIT CHARGE.—The Administrator shall re25 quire each wholesale power purchaser receiving elec-
11

•HR 4834 IH

1 tric energy as of the year 2006 that does not enter

2 into a contract with the Administration for the deliv3 ery of power after the year 2006 to pay an exit

4 charge in such amount as may be established by the

5 Administrator.

6 (3) AMOUNT OF FEE, SURCHARGE, OR EXIT

7 CHARGE.—Fees, surcharges, and exit charges re8 ceived by the Administrator under this subsection

9 shall be established at such level as the Adminis10 trator deems necessary to insure that the direct

11 service industrial customers referred to in paragraph

12 (1) and the wholesale power purchasers referred to

13 in paragraph (2) pay an equitable portion of the

14 Washington Public Power Supply System debt based

15 upon each purchaser’s historic purchases.

16 (c) RELATIONSHIP TO RATES.—The fees, surcharges,

17 and exit charges imposed as provided in this section shall

18 be in addition to the rates established as provided in sec19 tions 7 and 8.

20 SEC. 7. RATES FOR POWER SALES BY BONNEVILLE POWER

21 ADMINISTRATION.

22 (a) RATES, TERMS, AND CONDITIONS.—

23 (1) IN GENERAL.—All rates and charges made,

24 demanded, or received by the Administrator for the

25 sale of electric energy by the Administration to its
12

•HR 4834 IH

1 electric energy customers (other than the fees, sur2 charges, and charges referred to in section 6) shall

3 recover from such customers, over a reasonable pe4 riod of years, in accordance with sound business

5 principles, all costs incurred by the United States

6 for the generation and marketing of electric energy

7 sold by the Administration, including meeting treaty,

8 trust, and Endangered Species Act responsibilities,

9 the fish mitigation and enhancement requirements of

10 the Northwest Power Act, and the water quality

11 standards under the Clean Water Act.

12 (2) COMMISSION APPROVAL.—Rates established

13 under this section shall become effective only upon

14 a determination by the Commission that such rates

15 meet the requirements of paragraph (1). The Com16 mission may modify proposed rates submitted by the

17 Administrator and establish terms and conditions to

18 meet the requirements of paragraph (1).

19 (b) EXISTING RATES.—All rates, terms, and condi20 tions for the sale of electric energy at wholesale by the

21 Administration placed into effect on a final basis pursuant

22 to any authority prior to the date of enactment of this

23 Act shall remain in full force and effect unless the Com24 mission determines, after a hearing held upon its own mo25 tion or upon complaint, that the rates, terms, and condi-
13

•HR 4834 IH

1 tions are inconsistent with subsection (a) of this section

2 and establishes new rates, terms, and conditions. Such

3 new rates, terms, and conditions shall not result in rates

4 for such sales that are in excess of the comparable market

5 rate for electricity in the Western System Coordinating

6 Council.

7 SEC. 8. FEDERAL ENERGY REGULATORY COMMISSION REG8 ULATION OF BONNEVILLE POWER ADMINIS9 TRATION TRANSMISSION RATES.

10 (a) IN GENERAL.—The transmission of electric en11 ergy by the Administration shall be subject to the provi12 sions of parts II and III of the Federal Power Act (except

13 sections 204, 207, 209, 214, and 305), and the Commis14 sion shall have jurisdiction under such parts II and III

15 over the rates, terms, and conditions of such transmission.

16 Such provisions of the Federal Power Act and the rules,

17 regulations, and policies of the Commission thereunder

18 shall apply to such transmission by the Administration to

19 the same extent and in the same manner as such provi20 sions apply to the transmission of electric energy by a pub21 lic utility otherwise subject to the jurisdiction of the Com22 mission under part II of such Act, except that rates

23 charged by the Administration for the transmission of

24 electric energy shall be sufficient to recover all costs for

25 compliance with treaty, trust, and Endangered Species
14

•HR 4834 IH

1 Act responsibilities, the fish mitigation and enhancement

2 requirements of the Pacific Northwest Electric Power

3 Planning and Conservation Act, and the water quality

4 standards under the Clean Water Act.

5 (b) SEPARATION.—(1) The financial and accounting

6 system established for the Administration under section

7 5 shall assure the separation of all costs, revenues, and

8 other fiscal matters associated with transmission from the

9 costs, revenues, and other fiscal matters associated with

10 power sales. The Commission shall review and approve or

11 disapprove such administrative separation and assure that

12 only costs properly allocable to transmission rates are re13 covered through transmission rates. Nothing in this para14 graph shall be construed to limit or affect the authority

15 of the Administrator to impose a transmission fee as part

16 of cost recovery measures under subsection (c)(1)(B)(ii).

17 (2) Except for purposes of assuring such trans18 mission access as is necessary for purposes of meeting

19 treaty, trust, and Endangered Species Act responsibilities,

20 the fish mitigation and enhancement requirements of the

21 Northwest Power Act, and the water quality standards

22 under the Clean Water Act, the Commission shall take

23 such steps as may be necessary to assure that no pref24 erence is accorded to the Administration for the trans25 mission of power sold by the Administration.
15

•HR 4834 IH

1 (c) COST RECOVERY ADJUSTMENT.—(1) Whenever,

2 during the period beginning October 1, 2001, and ending

3 September 30, 2016, the Administrator, in accordance

4 with account procedures established under section 5, de5 termines that either—

6 (A) the Administration’s reserves have fallen

7 below $800,000,000, or

8 (B) a 10-year forecast indicates that in any 1

9 future year, the Administration has less than a 95

10 percent probability of meeting a payment to the

11 United States Treasury,

12 the Administrator shall submit to the Commission a trans13 mission rate increase under this subsection and implement

14 the following cost recovery measures designed to correct,

15 within 5 years, such reserve deficiency or reduced payment

16 ability forecast:

17 (i) the Administrator shall adjust wholesale

18 power rates (up to the market rate for electricity in

19 the Western System Coordinating Council) to meet

20 the revenue requirement set forth in subparagraph

21 (A) or (B), as the case may be; and

22 (ii) if increasing wholesale rates up to the mar23 ket rate of electricity in the Western System Coordi24 nating Council is not sufficient to meet such require25 ment, the Administrator shall implement a trans-
16

•HR 4834 IH

1 mission fee to generate revenues sufficient to meet

2 such requirement but not in excess of $100,000,000

3 a year.

4 (2) The Commission shall approve, disapprove, or

5 modify any transmission rate increase submitted under

6 this subsection within 30 days after the date of submis7 sion. The Commission shall approve such increase if the

8 Commission determines that such rate increase meets the

9 requirements of this subsection and that the Adminis10 trator has taken reasonable steps to avoid such increase

11 by using its authority under section 4(h)(10)(C) of the Pa12 cific Northwest Electric Power, Planning and Conserva13 tion Act (16 U.S.C. 838b(h)(10)(D)).

Æ