(b) BID AND AUCTION PROCEDURES.—The Secretary
shall establish by regulation bid and auction procedures
to implement subsection (a) with respect to hydroelectric
power sold under any power sale contract entered into by
the Tennessee Valley Authority after the date that is 1
year after the date of enactment of this Act, including re-
marketed power that has been declined by a party entitled
to purchase it.
(c) USE OF REVENUE.—
(1) IN GENERAL.—
(A) OFFSET OF COSTS.—Out of revenue
collected under procedures described in sub-
section (b), the Secretary shall remit to the Sec-
retary of the Treasury amounts (as determined
by the Secretary with the approval of the Fed-
eral Energy Regulatory Commission) to cover
the costs of—
(i) all power-related operations and
maintenance expenses associated with the
Tennessee Valley Authority’s hydroelectric
facilities;
(ii) compliance with all legal obliga-
tions (including treaty obligations) with re-
spect to fish and wildlife; and
(iii) project investments related to
power production, including repayment of
the U.S. Treasury for appropriated invest-
ments.
(B) REMAINING REVENUE.—Any revenue
collected under procedures described in sub-
section (b) that is not remitted under subpara-
graph (A) shall be remitted to the Secretary of
the Treasury for the following uses:
(i) 50 percent of such revenue shall be
used for the reduction of the Federal debt.
(ii) 35 percent of such revenue shall
be deposited in the fund established under
paragraph (2)(A).
(iii) 15 percent of such revenue shall
be deposited in the fund established under
paragraph (3)(A).
(2) FUND
FOR
ENVIRONMENTAL
MITIGATION
AND RESTORATION.—
(A) ESTABLISHMENT.—
(i) IN GENERAL.—There is established
in the Treasury of the United States a
fund to be known as the Fund for Envi-
ronmental Mitigation and Restoration (re-
ferred to in this paragraph as the
‘‘Fund’’), consisting of funds deposited
under paragraph (1)(B)(ii).
(ii) 
ADMINISTRATION.—The 
Fund
shall be administered by a Board of Direc-
tors consisting of the Secretary, the Ad-
ministrator of the Environmental Protec-
tion Agency, and the Secretary of the
Army, or their designees.
(B) USE.—Amounts in the Fund shall be
available—
(i) to carry out projects described in
subparagraph (C); and
(ii) to cover all costs incurred in es-
tablishing and administering the Fund.
(C) PROJECT-SPECIFIC PLANS.—
(i) IN
GENERAL.—For each hydro-
electric project that is used to generate
power marketed by the Tennessee Valley
Authority, the Board of Directors of the
Fund shall develop a project-specific plan
to mitigate damage to (and to restore the
health of) fish, wildlife, and other environ-
mental resources, where such damage is
attributable to the construction and oper-
ation of the facilities from which power is
generated and sold.
(ii) USE OF EXISTING DATA, INFOR-
MATION, AND PLANS.—In developing plans
under clause (i), the Board of Directors, to
the maximum extent practicable, shall rely
on existing data, information, and mitiga-
tion and restoration plans developed by—
(I) the Director of the Fish and
Wildlife Service;
(II) the Administrator of the En-
vironmental Protection Agency; and
(III) the heads of other Federal,
State, and tribal agencies.
(D) MAXIMUM AMOUNT.—
(i) IN
GENERAL.—The Fund shall
maintain a balance of not more than
$50,000,000 in excess of the amount that
the Board of Directors determines is nec-
essary to cover the costs of plans developed
under clause (i).
(ii) SURPLUS REVENUE FOR DEBT RE-
DUCTION.—Amounts allocated to the Fund
under paragraph (1)(B)(ii) that, if depos-
ited in the Fund, would exceed the max-
imum set forth in clause (i) shall be used
by the Secretary of the Treasury to reduce
the Federal debt.
(3) FUND FOR RENEWABLE RESOURCES.—
(A) ESTABLISHMENT.—
(i) IN GENERAL.—There is established
in the Treasury of the United States a
fund to be known as the Fund for Renew-
able Resources (referred to in this para-
graph as the ‘‘Fund’’), consisting of funds
allocated under paragraph (1)(B)(iii).
(ii) 
ADMINISTRATION.—The 
Fund
shall be administered by the Secretary.
(B) USE.—Amounts in the Fund shall be
available—
(i) to reimburse consumers in the re-
gion in which power is marketed by the
Tennessee Valley Authority for that por-
tion of the cost of acquiring power gen-
erated by nonhydroelectric renewable re-
sources that exceeds the market price for
power; and
(ii) to cover all costs incurred in es-
tablishing and administering the Fund.
(C) RESOURCES
DEVELOPMENT
PLAN.—
Amounts in the Fund shall be expended only in
accordance with a plan, developed by the Sec-
retary, that is designed to foster the develop-
ment of nonhydroelectric renewable resources
that show substantial long-term promise but
that are currently too expensive to attract pri-
vate capital sufficient to develop or ascertain
their potential.
(D) MAXIMUM AMOUNT.—
(i) IN
GENERAL.—The Fund shall
maintain a balance of not more than
$25,000,000 in excess of the amount that
the Secretary determines is necessary to
carry out the plan developed under sub-
paragraph (C).
(ii) SURPLUS REVENUE FOR DEBT RE-
DUCTION.—Amounts allocated to the Fund
under paragraph (1)(B)(iii) that, if depos-
ited in the Fund, would exceed the max-
imum set forth in clause (i) shall be used
by the Secretary of the Treasury to reduce
the Federal debt.
(d) TREATMENT OF PUBLIC BODIES AND COOPERA-
TIVES.—