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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 603 Introduced in House (IH)]

105th CONGRESS
  1st Session
                                H. R. 603

To prohibit Federal subsidies for the Tennessee Valley Authority after 
                           fiscal year 1998.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 5, 1997

 Mr. Franks of New Jersey (for himself and Mr. Meehan) introduced the 
 following bill; which was referred to the Committee on Transportation 
                           and Infrastructure

_______________________________________________________________________

                                 A BILL

 
To prohibit Federal subsidies for the Tennessee Valley Authority after 
                           fiscal year 1998.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tennessee Valley Authority First 
Step Reform Act of 1997''.

SEC. 2. FINDINGS AND PURPOSES.

    The Congress finds that:
            (1) The Tennessee Valley Authority was established in 1933 
        to, among other things, bring the benefits of electrification 
        to an impoverished region of America.
            (2) The Tennessee Valley Authority has fulfilled this 
        mission and the once impoverished region enjoys relative 
        prosperity.
            (3) To provide the benefits of electrification to residents 
        of the Tennessee Valley, the Federal Government provided the 
        Tennessee Valley Authority with an array of subsidies, 
        including tax exemptions, favorable treatments affecting the 
        cost of capital, and access to preference power, as well as 
        relatively minor appropriation subsidies associated with 
        economic development and waterway management.
            (4) In the interest of deficit reduction, the Chairman of 
        the Tennessee Valley Authority is to be commended for 
        suggesting that appropriation subsidies to Tennessee Valley 
        Authority totaling some $106,000,000 in fiscal year 1997, be 
        phased out over the next 2 years.

SEC. 3. DISCONTINUANCE OF APPROPRIATIONS.

    Section 27 of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 
831z) is amended by inserting the following before the period at the 
end thereof: ``through the fiscal year 1998, but no funds may be 
appropriated for such purposes for any fiscal year thereafter''.

SEC. 4. REPORTS.

    (a) Cost of Federal Subsidies.--Not later than January 1, 1998, the 
Director of the Office of Management and Budget shall develop and 
submit a report to Congress that describes and details the historical 
and current costs to the Federal Government of subsidies provided to 
the Tennessee Valley Authority, including tax exemptions, favorable 
treatments affecting the cost of capital, and access to preference 
power.
    (b) Transition Plan.--Not later than January 1, 1998, the Director 
of the Office of Management and Budget, after consultation with the 
Chairman of the Tennessee Valley Authority and other appropriate 
persons, shall develop and submit a plan to Congress outlining how the 
Authority plans to make the transition from receiving Federal subsidies 
to an organization generating, transmitting and distributing electric 
power on an open and competitive market.
                                 <all>
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