I 
108TH CONGRESS 
1ST SESSION H. R. 3044
To amend the Tennessee Valley Authority Act of 1933 to modify provisions 
relating to the Board of Directors of the Tennessee Valley Authority, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 9, 2003
Mr. COOPER introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure 
A BILL 
To amend the Tennessee Valley Authority Act of 1933 to 
modify provisions relating to the Board of Directors of 
the Tennessee Valley Authority, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. CHANGE IN COMPOSITION, OPERATION, AND 
DUTIES OF THE BOARD OF DIRECTORS OF 
THE TENNESSEE VALLEY AUTHORITY. 
(a) IN GENERAL.—The Tennessee Valley Authority 
Act of 1933 (16 U.S.C. 831 et seq.) is amended by strik-
ing section 2 and inserting the following:
‘‘SEC. 2. MEMBERSHIP, OPERATION, AND DUTIES OF THE 
BOARD OF DIRECTORS. 
‘‘(a) MEMBERSHIP.—
‘‘(1) APPOINTMENT.—The Board of Directors 
of the Corporation (referred to in this Act as the 
‘Board’) shall be composed of 9 members appointed 
by the President by and with the advice and consent 
of the Senate, a majority of whom shall be legal resi-
dents of the service area. 
‘‘(2) CHAIRMAN.—The members of the Board 
shall select 1 of the members to act as chairman of 
the Board. 
‘‘(b) QUALIFICATIONS.—
‘‘(1) IN GENERAL.—To be eligible to be ap-
pointed as a member of the Board, an individual—
‘‘(A) shall be a citizen of the United 
States; 
‘‘(B) shall have widely recognized experi-
ence or applicable expertise in the management 
of or decisionmaking for a large corporate 
structure, preferably in the electric power in-
dustry; 
‘‘(C) shall not be an employee of the Cor-
poration; 
‘‘(D) shall have no substantial direct finan-
cial interest in—
‘‘(i) any public-utility corporation en-
gaged in the business of distributing and 
selling power to the public; or 
‘‘(ii) any business that may be ad-
versely affected by the success of the Cor-
poration as a producer of electric power; 
and 
‘‘(E) shall profess a belief in the feasibility 
and wisdom of this Act. 
‘‘(2) PARTY AFFILIATION.—Not more than 5 of 
the 9 members of the Board may be affiliated with 
a single political party. 
‘‘(c) RECOMMENDATIONS.—In appointing members 
of the Board, the President shall—
‘‘(1) consider recommendations from such pub-
lic officials as—
‘‘(A) the Governors of States in the service 
area; 
‘‘(B) individual citizens; 
‘‘(C) business, industrial, labor, electric 
power distribution, environmental, civic, and 
service organizations; and 
‘‘(D) the congressional delegations of the 
States in the service area; and
‘‘(2) seek qualified members from among per-
sons who reflect the diversity and needs of the serv-
ice area of the Corporation. 
‘‘(d) TERMS.—
‘‘(1) IN GENERAL.—A member of the Board 
shall serve a term of 5 years, except that in first 
making appointments after the date of enactment of 
this paragraph, the President shall appoint—
‘‘(A) 2 members to a term of 2 years; 
‘‘(B) 1 member to a term of 3 years; and 
‘‘(C) 2 members to a term of 4 years. 
‘‘(2) VACANCIES.—A member appointed to fill a 
vacancy in the Board occurring before the expiration 
of the term for which the predecessor of the member 
was appointed shall be appointed for the remainder 
of that term. 
‘‘(3) REAPPOINTMENT.—
‘‘(A) IN
GENERAL.—A member of the 
Board that was appointed for a full term may 
be reappointed for 1 additional term. 
‘‘(B) APPOINTMENT TO FILL VACANCY.—
For the purpose of subparagraph (A), a mem-
ber appointed to serve the remainder of the 
term of a vacating member for a period of more
than 2 years shall be considered to have been 
appointed for a full term. 
‘‘(e) QUORUM.—
‘‘(1) IN GENERAL.—Six members of the Board 
shall constitute a quorum for the transaction of 
business. 
‘‘(2) MINIMUM NUMBER OF MEMBERS.—A va-
cancy in the Board shall not impair the power of the 
Board to act, so long as there are 6 members in of-
fice. 
‘‘(f) COMPENSATION.—
‘‘(1) IN GENERAL.—A member of the Board 
shall be entitled to receive—
‘‘(A)(i) a stipend of $30,000 per year; plus 
‘‘(ii) compensation, not to exceed $10,000 
for any year, at a rate that does not exceed the 
daily equivalent of the annual rate of basic pay 
prescribed under level V of the Executive 
Schedule under section 5316 of title 5, United 
States Code, for each day the member is en-
gaged in the actual performance of duties as a 
member of the Board at meetings or hearings; 
and 
‘‘(B) travel expenses, including per diem in 
lieu of subsistence, in the same manner as per-
sons employed intermittently in Government 
service under section 5703 of title 5, United 
States Code. 
‘‘(2) 
ADJUSTMENTS
IN
STIPENDS.—The 
amount of the stipend under paragraph (1)(A)(i) 
shall be adjusted by the same percentage, at the 
same time and manner, and subject to the same lim-
itations as are applicable to adjustments under sec-
tion 5318 of title 5, United States Code. 
‘‘(g) DUTIES.—
‘‘(1) IN GENERAL.—The Board shall—
‘‘(A) establish the broad goals, objectives, 
and policies of the Corporation that are appro-
priate to carry out this Act; 
‘‘(B) develop long-range plans to guide the 
Corporation in achieving the goals, objectives, 
and policies of the Corporation and provide as-
sistance to the chief executive officer to achieve 
those goals, objectives, and policies, including 
preparing the Corporation for fundamental 
changes in the electric utilities industry; 
‘‘(C) ensure that those goals, objectives, 
and policies are achieved; 
‘‘(D) approve an annual budget for the 
Corporation;
‘‘(E) establish a compensation plan for em-
ployees of the Corporation in accordance with 
subsection (i); 
‘‘(F) approve the salaries, benefits, and in-
centives for managers and technical personnel 
that report directly to the chief executive offi-
cer; 
‘‘(G) ensure that all activities of the Cor-
poration are carried out in compliance with ap-
plicable law; 
‘‘(H) create an audit committee, composed 
solely of Board members independent of the 
management of the Corporation, which shall—
‘‘(i) recommend to the Board an ex-
ternal auditor; 
‘‘(ii) receive and review reports from 
the external auditor; and 
‘‘(iii) make such recommendations to 
the Board as the audit committee con-
siders necessary; 
‘‘(I) create such other committees of Board 
members as the Board considers to be appro-
priate; 
‘‘(J) conduct public hearings on issues that 
could have a substantial effect on—
‘‘(i) the electric ratepayers in the serv-
ice area; or 
‘‘(ii) the economic, environmental, so-
cial, or physical well-being of the people of 
the service area; and 
‘‘(K) establish the electricity rate schedule. 
‘‘(2) MEETINGS.—The Board shall meet at 
least 4 times each year. 
‘‘(h) CHIEF EXECUTIVE OFFICER.—
‘‘(1) APPOINTMENT.—The Board shall appoint 
a person to serve as chief executive officer of the 
Corporation. 
‘‘(2) QUALIFICATIONS.—To serve as chief exec-
utive officer of the Corporation, a person—
‘‘(A) shall be a citizen of the United 
States; 
‘‘(B) shall have management experience in 
large, complex organizations; 
‘‘(C) shall not be a current member of the 
Board or have served as a member of the Board 
within 2 years before being appointed chief ex-
ecutive officer; and 
‘‘(D) shall have no substantial direct finan-
cial interest in—
‘‘(i) any public-utility corporation en-
gaged in the business of distributing and 
selling power to the public; or 
‘‘(ii) any business that may be ad-
versely affected by the success of the Cor-
poration as a producer of electric power; 
and 
‘‘(3) TENURE.—The chief executive officer shall 
serve at the pleasure of the Board. 
‘‘(i) COMPENSATION PLAN.—
‘‘(1) IN GENERAL.—The Board shall approve a 
compensation plan that specifies salaries, benefits, 
and incentives for the chief executive officer and em-
ployees of the Corporation. 
‘‘(2) ANNUAL SURVEY.—The compensation plan 
shall be based on an annual survey of the prevailing 
salaries, benefits, and incentives for similar work in 
private industry, including engineering and electric 
utility companies, publicly owned electric utilities, 
and Federal, State, and local governments. 
‘‘(3) 
CONSIDERATIONS.—The 
compensation 
plan shall provide that education, experience, level of 
responsibility, geographic differences, and retention 
and recruitment needs will be taken into account in 
determining salaries of employees.
‘‘(4) SUBMISSION
TO
CONGRESS.—No salary 
shall be established under a compensation plan until 
after the compensation plan and the survey on which 
it is based have been submitted to Congress and 
made available to the public for a period of 30 days. 
‘‘(5) POSITIONS AT OR BELOW LEVEL IV.—The 
chief executive officer shall determine the salary and 
benefits of employees whose annual salary is not 
greater than the annual rate payable for positions at 
level IV of the Executive Schedule under section 
5315 of title 5, United States Code. 
‘‘(6) POSITIONS ABOVE LEVEL IV.—On the rec-
ommendation of the chief executive officer, the 
Board shall approve the salaries of employees whose 
annual salaries would be in excess of the annual rate 
payable for positions at level IV of the Executive 
Schedule under section 5315 of title 5, United 
States Code. 
‘‘(j) LIMITATION.—The Board may not take any ac-
tion regarding appointment or dismissal of the Inspector 
General of the Corporation, or both, or any action that 
has the effect of interfering with a duty of the Inspector 
General.’’. 
(b) CURRENT BOARD MEMBERS.—A member of the 
Board of Directors of the Tennessee Valley Authority who
was appointed before the effective date of the amendment 
made by subsection (a)—
(1) shall continue to serve as a member until 
the date of expiration of the member’s current term; 
and 
(2) may not be reappointed. 
SEC. 2. CHANGE IN MANNER OF APPOINTMENT OF STAFF. 
Section 3 of the Tennessee Valley Authority Act of 
1933 (16 U.S.C. 831b) is amended—
(1) by striking the first undesignated paragraph 
and inserting the following: 
‘‘(a) APPOINTMENT BY THE CHIEF EXECUTIVE OF-
FICER.—The chief executive officer shall appoint, with the 
advice and consent of the Board, and without regard to 
the provisions of the civil service laws applicable to officers 
and employees of the United States, such managers, as-
sistant managers, officers, employees, attorneys, and 
agents as are necessary for the transaction of the business 
of the Corporation.’’; and 
(2) by striking ‘‘All contracts’’ and inserting 
the following: 
‘‘(b) WAGE RATES.—All contracts’’. 
SEC. 3. CONFORMING AMENDMENTS. 
(a) The Tennessee Valley Authority Act of 1933 (16 
U.S.C. 831 et seq.) is amended—
(1) by striking ‘‘board of directors’’ each place 
it appears and inserting ‘‘Board of Directors’’; and 
(2) by striking ‘‘board’’ each place it appears 
and inserting ‘‘Board’’. 
(b) Section 9 of the Tennessee Valley Authority Act 
of 1933 (16 U.S.C. 831h) is amended—
(1) by striking ‘‘The Comptroller General of the 
United States shall audit’’ and inserting the fol-
lowing: 
‘‘(c) AUDITS.—The Comptroller General of the 
United States shall audit’’; and 
(2) by striking ‘‘The Corporation shall deter-
mine’’ and inserting the following: 
‘‘(d) ADMINISTRATIVE ACCOUNTS
AND BUSINESS 
DOCUMENTS.—The Corporation shall determine’’. 
SEC. 4. EFFECTIVE DATE. 
The amendments made by this Act take effect, and 
7 additional members of the Board of Directors of the 
Tennessee Valley Authority shall be appointed so as to 
commence their terms on, the first date following the date 
of enactment of this Act on which the term of a member 
of the Board of Directors of the Tennessee Valley Author-
ity expires.
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