(C) CHANGES
IN
OPERATION.—The Dis-
tricts shall attempt, to the extent practicable,
taking into consideration historic project oper-
ations, to notify the State of Colorado of
changes in historic project operations which
may adversely affect State park operations.
(2) REQUIREMENTS.—During the 40-year pe-
riod described in paragraph (1)(B)—
(A) the Districts shall annually submit to
the Secretary of Agriculture and the Colorado
Department of Natural Resources a plan for
operation of the project, which plan shall—
(i) report on project operations for the
previous year;
(ii) provide a description of the man-
ner of project operations anticipated for
the forthcoming year, which shall be pre-
pared after consultation with the des-
ignated representatives of the Secretary of
Agriculture, the Board of County Commis-
sioners of Mesa County, Colorado, and the
Colorado Department of Natural Re-
sources; and
(iii) certify that the Districts have op-
erated and will operate and maintain the
project facilities in accordance with sound
engineering practices; and
(B) subject to section 4, all electric power
generated by operation of the project shall be
made available to and be marketed by the
Western Area Power Administration.
(f) AGREEMENTS.—Conveyance of the project shall
be subject to the agreements between the United States
and the State of Colorado dated August 22, 1994, and
September 23, 1994, relating to the construction and op-
eration of recreational facilities at Vega Reservoir, which
agreements shall continue to be performed by the parties
to the agreements according to the terms of the agree-
ments.
SEC. 4. OPERATION OF THE POWER COMPONENT.
(a) CONFORMITY TO HISTORIC OPERATIONS.—The
power component and facilities of the project shall be oper-
ated in substantial conformity with the historic operations
of the power component and facilities (including recent op-
erations in a peaking mode).
(b) POWER MARKETING.—
(1) EXISTING
MARKETING
ARRANGEMENT.—
The post-1989 marketing criteria, which provide for
the marketing of power generated by the power com-
ponent of the project as part of the output of the
Salt Lake City area integrated projects, shall no
longer be binding on the project upon conveyance of
the project under section 3(a).
(2) AFTER
TERMINATION
OF
EXISTING
MAR-
KETING ARRANGEMENT.—
(A) IN GENERAL.—
(i) FIRST OFFER.—After the convey-
ance under section 3(a), the Districts shall
offer all power produced by the power com-
ponent of the project to the Western Area
Power Administration or its successors or
assigns (referred to in this paragraph as
‘‘Western’’), which, in consultation with its
affected preference customers, shall have
the first right to purchase such power at
the rates established under subparagraph
(B).
(ii) SECOND OFFER.—If Western de-
clines to purchase the power after con-
sultation with its affected preference cus-
tomers, the power shall be offered at the
same rates first to Western’s preference
customers located in the Salt Lake City
area integrated projects marketing area
(referred to in this paragraph as the
‘‘SLCAIP preference customers’’).
(iii) OTHER
OFFERS.—After offers
have been made under clauses (i) and (ii),
power may be sold to any other party, but
no such sale may occur at a rate less than
a rate established under subparagraph (B)
unless the power is offered at the lesser
rate first to Western and second to the
SLCAIP preference customers.
(B) RATE.—The rate for power initially of-
fered to Western and the SLCAIP preference
customers under this paragraph shall not ex-
ceed that required to produce revenues suffi-
cient to provide for—
(i) annual debt service or recoupment
of the cost of capital (or a combination of
both) for the amount specified in section
3(d)(1)(A) less the sum of $310,000
(which is the net present value of the out-
standing repayment obligation of the
Collbran Conservancy District); and
(ii) the cost of operation, mainte-
nance, and replacement of the power com-
ponent of the project.
(C) 
DETERMINATION
OF
COSTS
AND
RATE.—Costs and a rate under subparagraph
(B) shall be determined in a manner that is
consistent with the principles followed, as of the
date of enactment of this Act, by the Secretary
and by Western in its annual power and repay-
ment study.
SEC. 5. LICENSE.
(a) IN GENERAL.—Before conveyance of the project
to the Districts, the Federal Energy Regulatory Commis-
sion shall issue to the Districts a license or licenses as
appropriate under part I of the Federal Power Act (16
U.S.C. 791 et seq.) authorizing for a term of 40 years
the continued operation and maintenance of the power
component of the project.
(b) TERMS OF LICENSE.—
(1) IN GENERAL.—The license under subsection
(a)—
(A) shall be for the purpose of operating,
using, maintaining, repairing, and replacing the
power component of the project as authorized
by the Act of July 3, 1952 (66 Stat. 325, chap-
ter 565);
(B) shall be subject to the condition that
the power component of the project continue to
be operated and maintained in accordance with
the authorized purposes of the project; and
(C) shall be subject to part I of the Fed-
eral Power Act (16 U.S.C. 791 et seq.) except
as stated in paragraph (2).
(2) LAWS NOT APPLICABLE.—
(A) FEDERAL POWER ACT.—
(i) IN GENERAL.—The license under
subsection (a) shall not be subject to the
following provisions of the Federal Power
Act: the word ‘‘constructed’’ in section
3(10) (16 U.S.C. 796d(10)); the 4 provisos
of section 4(e) (16 U.S.C. 797(e)); section
6 (16 U.S.C. 799) to the extent that the
section requires acceptance by a licensee of
terms and conditions of the Act that this
subsection waives; section 10(e) (insofar as
the subsection concerns annual charges for
the use and occupancy of Federal lands
and facilities); subsection (f) or (j) of sec-
tion 10 (16 U.S.C. 803); section 18 (16
U.S.C. 811); section 19 (16 U.S.C. 812);
section 20 (16 U.S.C. 813); or section 22
(16 U.S.C. 815).
(ii) NOT A GOVERNMENT DAM.—Not-
withstanding that any dam under the li-
cense under subsection (a) may have been
constructed by the United States for Gov-
ernment purposes, the dam shall not be
considered to be a Government dam, as
that term is defined in section 3 of the
Federal Power Act (16 U.S.C. 796).
(iii) STANDARD FORM LICENSE CON-
DITIONS.—The license under subsection (a)
shall not be subject to the standard ‘‘L–
Form’’ license conditions published at 54
FPC 1792–1928 (1975).
(B) OTHER LAWS.—The issuance of the li-
cense under subsection (a) shall not be subject
to—
(i) the Federal Land Policy and Man-
agement Act of 1976 (43 U.S.C. 1701 et
seq.);
(ii) section 2402 of the Energy Policy
Act of 1992 (16 U.S.C. 797c);
(iii) the National Environmental Pol-
icy Act of 1969 (42 U.S.C. 4321 et seq.);
(iv) the Endangered Species Act of
1973 (16 U.S.C. 1531 et seq.);
(v) the Wild and Scenic Rivers Act
(16 U.S.C. 1271 et seq.);
(vi) the Federal Water Pollution Con-
trol Act (commonly known as the ‘‘Clean
Water Act’’) (33 U.S.C. 1251 et seq.);
(vii) the National Historic Preserva-
tion Act (16 U.S.C. 470 et seq.);
(viii) the Coastal Zone Management
Act of 1972 (16 U.S.C. 1451 et seq.);
(ix) the Fish and Wildlife Coordina-
tion Act (16 U.S.C. 661 et seq.); or
(x) any other Act otherwise applicable
to the licensing of the project.
(3) LAWS ENACTED AFTER ISSUANCE OF LI-
CENSE.—The operation of the project shall be subject
to all existing and future applicable State and Fed-
eral laws enacted after the date of issuance of the
license under subsection (a).
(c) LICENSING STANDARDS.—The license under sub-
section (a) is deemed to meet all licensing standards of
the Federal Power Act (16 U.S.C. 791 et seq.).
(d) POWER SITE RESERVATION.—Any power site res-
ervation established under section 24 of the Federal Power
Act (16 U.S.C. 818) or any other law, that exists on any
land, whether federally or privately owned, that is included
within the boundaries of the project shall be vacated by
operation of law on issuance of the license for the project.
(e) EXPIRATION OF LICENSE.—All requirements of
part I of the Federal Power Act (16 U.S.C. 791 et seq.)
and of any other Act applicable to the licensing of a hydro-
electric project shall apply to the project on expiration of
the license issued under this section.
SEC. 6. INAPPLICABILITY OF PRIOR AGREEMENTS AND OF
FEDERAL RECLAMATION LAWS.
On conveyance of the project to the Districts—
(1) the repayment contract dated May 27,
1957, as amended April 12, 1962, between the
Collbran Conservancy District and the United
States, and the contract for use of project facilities
for diversion of water dated January 11, 1962, as
amended November 10, 1977, between the Ute
Water Conservancy District and the United States,
shall be terminated and of no further force or effect;
and
(2) the project shall no longer be subject to or
governed by the Federal reclamation laws.
SEC. 7. LIABILITY OF THE DISTRICTS.
The Districts shall be liable, to the extent allowed
under State law, for all acts or omissions relating to the
operation and use of the project by the Districts that occur
subsequent to the conveyance under section 3(a), including
damage to any Federal land or facility that results from
the failure of a project facility.
SEC. 8. EFFECT ON STATE LAW.
Nothing in this Act impairs the effectiveness of any
State or local law (including a regulation) relating to land
use.
SEC. 9. TREATMENT OF SALES FOR PURPOSES OF CERTAIN
LAWS.
The sales of assets under this Act shall not be consid-
ered to be a disposal of Federal surplus property under—
(1) section 203 of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C.
484); or
(2) section 13 of the Surplus Property Act of
1944 (50 U.S.C. App. 1622).
Æ