in the region by December 31, 1999. The goal of this plan
shall be to restore sustainable, naturally reproducing salm-
on populations to support tribal and nontribal harvest and
cultural and economic practices. The plan shall address
treaty, trust, and Endangered Species Act responsibilities,
the fish mitigation and enhancement requirements of the
Pacific Northwest Electric Power Planning and Conserva-
tion Act, the water quality standards under the Clean
Water Act, and the United States-Canada Pacific Salmon
Treaty commitments. Implementation of the unified plan
and the Northwest Power Planning Council’s fish and
wildlife program shall be overseen by the Secretary of the
Interior. The Secretary shall promulgate a rule, in accord-
ance with the applicable requirements of title 5 of the
United States Code, applicable environmental require-
ments, and other applicable requirements of law, contain-
ing the plan developed under this section.
SEC. 5. FISCAL ACCOUNTABILITY.
(a) ACCOUNTING SYSTEM.—
(1) 
REQUIREMENTS.—Not 
later 
than 
months after the date of the enactment of this Act,
the Secretary of Energy and the Secretary of the
Treasury, in consultation with the Office of Manage-
ment and Budget and the General Accounting Of-
fice, shall establish an accounting system for the Ad-
ministration that meets each of the following re-
quirements:
(A) REPAYMENT
OF
COSTS
TO
THE
UNITED
STATES
TREASURY.—The accounting
system shall ensure that all costs repayable to
the United States Treasury are paid in a timely
manner. The accounting system shall provide
for independent, outside reviews of Administra-
tion repayment studies and include the views of
the Federal Energy Regulatory Commission.
Such reviews shall assess assumptions and
methodologies, application of appropriate inter-
est rates, and whether all power-related costs
are included for repayment.
(B) FISH AND WILDLIFE COSTS.—The ac-
counting system shall properly and accurately
identify costs allocable to compliance with the
restoration of fish and wildlife in the region, in-
cluding treaty, trust, and Endangered Species
Act responsibilities of the Administrator, the
fish mitigation and enhancement requirements
of the Pacific Northwest Electric Power Plan-
ning and Conservation Act, and the water qual-
ity standards under the Clean Water Act. The
Administration is prohibited from allocating to
fishery restoration accounts the costs of spills
or releases of water that result in power loss or
which are required for purposes of flood control,
irrigation, navigation, or other authorized ac-
tivities.
(2) ACCOUNTING
PRINCIPLES
AND
REQUIRE-
MENTS.—The accounting system shall provide proce-
dures to ensure regular consultation with Federal,
State, and tribal governments in the region, tracking
of the costs associated with each of the Administra-
tor’s significant responsibilities, including those re-
ferred to in paragraph (1).
(3) PUBLIC AVAILABILITY.—The system shall
contain procedures to ensure that the books and
records of the Administration, including all account-
ing records regarding the costs allocated to fishery
restoration, public purposes, and the WPPSS debt,
are available to the public.
(4) COMPLIANCE.—The system shall contain
procedures for the filing of complaints with the Sec-
retary of Energy by interested persons seeking to
ensure compliance with this section.
(b) FISH
AND WILDLIFE BUDGET MANAGEMENT
AND ACCOUNTABILITY.—The Secretaries of the Interior,
Energy, Commerce, and the Army shall implement (until
the unified plan takes effect) the Memorandum of Agree-
ment and Annex on Budget Management and Accountabil-
ity adopted in September 1996, including procedures for
effective regional involvement and accountability in the ex-
penditure of moneys from the Administration’s fund pur-
suant to section 4(h)(10) of the Pacific Northwest Electric
Power Planning and Conservation Act. The following pro-
cedures shall apply to administration of the Memorandum
of Agreement and the unified plan:
(1) Open and accurate methods for tracking the
funding, implementation, and performance of activi-
ties.
(2) Independent scientific review of activities
funded pursuant to this Act. Such independent sci-
entific review shall be undertaken by an independent
scientific advisory board appointed by the Secretary
of the Interior, in consultation with the region’s
State and tribal governments. Appointments to the
Board will take into account recommendations from
the chair of the National Research Council.
(3) 
Coordinated 
and 
integrated 
project
prioritization processes for selection of activities
(under both the unified plan and the Council’s fish
and wildlife program) to be funded pursuant to this
Act to be implemented by State and tribal govern-
ments and the Secretaries of the Interior, Energy,
Commerce, and the Army for all fish and wildlife ex-
penditures pursuant to this Act, using consistent cri-
teria that allow for choices among direct, reimburs-
able and capital, and other expenditure categories.
(4) Effective procedures for resolution of dis-
putes regarding budget management and account-
ability.
(c) REPEAL.—Section 4(h)(10)(D) of the Pacific
Northwest Electric Power Planning and Conservation Act
(16 U.S.C. 839b(h)(10)(D)) is hereby repealed.
SEC. 6. PAYMENTS TOWARD THE NATURAL RESOURCES RE-
COVERY FUND AND THE WPPSS DEBT.
(a) NATURAL RESOURCES RECOVERY FUND.—
(1) ESTABLISHMENT.—The Secretary of the In-
terior shall establish a Natural Resources Recovery
Fund. The Fund shall be managed by the Secretary.
(2) USES OF FUND.—The Secretary of the In-
terior shall expend amounts in the Fund in a man-
ner consistent with the Memorandum of Agreement
referred to in section 5 until the unified plan takes
effect. When the unified plan takes effect, the Fund
shall be administered in a manner consistent with
such unified plan. If no unified plan exists, the Sec-
retary of the Interior shall allocate funds in con-
sultation with States, tribes, and Federal agencies.
Amounts in the Fund shall be used for the restora-
tion of fish and wildlife in the region, including
meeting treaty, trust, and Endangered Species Act
responsibilities, the fish mitigation and enhancement
requirements of the Pacific Northwest Electric
Power Planning and Conservation Act, and imple-
mentation of measures necessary to meet the water
quality standards under the Clean Water Act. Mon-
eys in the Fund may also be used to promote con-
servation and renewable energy projects.
(3) SOURCE
OF
MONIES.—All fees collected
under paragraph (4) shall be deposited in the Fund,
and such fees shall be available without further ap-
propriation for the purposes set forth in paragraph
(2).
(4) DISTRIBUTION FEE.—Each public and in-
vestor-owned utility that purchases electric power
from the Administrator and makes retail sales of
electric power in the region shall collect and deposit
in the Fund a fee in the amount of 3 mills per kilo-
watt hour on all retail electric power sales made by
such utility in the region during the 15 calendar
years following the date of the enactment of this
Act. During such 15-year period, the Administrator
shall collect from each direct service industrial cus-
tomer of the Administrator (as defined in section
3(8) of the Pacific Northwest Electric Power Plan-
ning and Conservation Act) a fee in the amount of
3 mills per kilowatt hour.
(b) PAYMENTS OF WPPSS DEBT.—In order to en-
sure that the costs of repayment of Washington Public
Power Supply System debt is repaid and fairly allocated
to all Administration customers, the Administrator shall
establish, collect, and use for repayment of the WPPSS
debt each of the following fees and charges:
(1) FEE
OR
SURCHARGE
FOR
CERTAIN
NEW
CONTRACTS.—The Administrator shall require each
direct service industrial customer (as defined in sec-
tion 3(8) of the Pacific Northwest Electric Power
Planning and Conservation Act) that enters into a
new contract with the Administrator for the delivery
of electric energy by the Administrator during the
period beginning after the date of the enactment of
this Act and ending in the year 2006 to pay either
a fee established by the Administrator or an addi-
tional percentage surcharge over the otherwise appli-
cable rates.
(2) EXIT CHARGE.—The Administrator shall re-
quire each wholesale power purchaser receiving elec-
tric energy as of the year 2006 that does not enter
into a contract with the Administration for the deliv-
ery of power after the year 2006 to pay an exit
charge in such amount as may be established by the
Administrator.
(3) AMOUNT
OF
FEE, SURCHARGE, OR
EXIT
CHARGE.—Fees, surcharges, and exit charges re-
ceived by the Administrator under this subsection
shall be established at such level as the Adminis-
trator deems necessary to insure that the direct
service industrial customers referred to in paragraph
(1) and the wholesale power purchasers referred to
in paragraph (2) pay an equitable portion of the
Washington Public Power Supply System debt based
upon each purchaser’s historic purchases.
(c) RELATIONSHIP TO RATES.—The fees, surcharges,
and exit charges imposed as provided in this section shall
be in addition to the rates established as provided in sec-
tions 7 and 8.
SEC. 7. RATES FOR POWER SALES BY BONNEVILLE POWER
ADMINISTRATION.
(a) RATES, TERMS, AND CONDITIONS.—
(1) IN GENERAL.—All rates and charges made,
demanded, or received by the Administrator for the
sale of electric energy by the Administration to its
electric energy customers (other than the fees, sur-
charges, and charges referred to in section 6) shall
recover from such customers, over a reasonable pe-
riod of years, in accordance with sound business
principles, all costs incurred by the United States
for the generation and marketing of electric energy
sold by the Administration, including meeting treaty,
trust, and Endangered Species Act responsibilities,
the fish mitigation and enhancement requirements of
the Northwest Power Act, and the water quality
standards under the Clean Water Act.
(2) COMMISSION APPROVAL.—Rates established
under this section shall become effective only upon
a determination by the Commission that such rates
meet the requirements of paragraph (1). The Com-
mission may modify proposed rates submitted by the
Administrator and establish terms and conditions to
meet the requirements of paragraph (1).
(b) EXISTING RATES.—All rates, terms, and condi-
tions for the sale of electric energy at wholesale by the
Administration placed into effect on a final basis pursuant
to any authority prior to the date of enactment of this
Act shall remain in full force and effect unless the Com-
mission determines, after a hearing held upon its own mo-
tion or upon complaint, that the rates, terms, and condi-
tions are inconsistent with subsection (a) of this section
and establishes new rates, terms, and conditions. Such
new rates, terms, and conditions shall not result in rates
for such sales that are in excess of the comparable market
rate for electricity in the Western System Coordinating
Council.
SEC. 8. FEDERAL ENERGY REGULATORY COMMISSION REG-
ULATION OF BONNEVILLE POWER ADMINIS-
TRATION TRANSMISSION RATES.
(a) IN GENERAL.—The transmission of electric en-
ergy by the Administration shall be subject to the provi-
sions of parts II and III of the Federal Power Act (except
sections 204, 207, 209, 214, and 305), and the Commis-
sion shall have jurisdiction under such parts II and III
over the rates, terms, and conditions of such transmission.
Such provisions of the Federal Power Act and the rules,
regulations, and policies of the Commission thereunder
shall apply to such transmission by the Administration to
the same extent and in the same manner as such provi-
sions apply to the transmission of electric energy by a pub-
lic utility otherwise subject to the jurisdiction of the Com-
mission under part II of such Act, except that rates
charged by the Administration for the transmission of
electric energy shall be sufficient to recover all costs for
compliance with treaty, trust, and Endangered Species
Act responsibilities, the fish mitigation and enhancement
requirements of the Pacific Northwest Electric Power
Planning and Conservation Act, and the water quality
standards under the Clean Water Act.
(b) SEPARATION.—(1) The financial and accounting
system established for the Administration under section
5 shall assure the separation of all costs, revenues, and
other fiscal matters associated with transmission from the
costs, revenues, and other fiscal matters associated with
power sales. The Commission shall review and approve or
disapprove such administrative separation and assure that
only costs properly allocable to transmission rates are re-
covered through transmission rates. Nothing in this para-
graph shall be construed to limit or affect the authority
of the Administrator to impose a transmission fee as part
of cost recovery measures under subsection (c)(1)(B)(ii).
(2) Except for purposes of assuring such trans-
mission access as is necessary for purposes of meeting
treaty, trust, and Endangered Species Act responsibilities,
the fish mitigation and enhancement requirements of the
Northwest Power Act, and the water quality standards
under the Clean Water Act, the Commission shall take
such steps as may be necessary to assure that no pref-
erence is accorded to the Administration for the trans-
mission of power sold by the Administration.
(c) COST RECOVERY ADJUSTMENT.—(1) Whenever,
during the period beginning October 1, 2001, and ending
September 30, 2016, the Administrator, in accordance
with account procedures established under section 5, de-
termines that either—
(A) the Administration’s reserves have fallen
below $800,000,000, or
(B) a 10-year forecast indicates that in any 1
future year, the Administration has less than a 95
percent probability of meeting a payment to the
United States Treasury,
the Administrator shall submit to the Commission a trans-
mission rate increase under this subsection and implement
the following cost recovery measures designed to correct,
within 5 years, such reserve deficiency or reduced payment
ability forecast:
(i) the Administrator shall adjust wholesale
power rates (up to the market rate for electricity in
the Western System Coordinating Council) to meet
the revenue requirement set forth in subparagraph
(A) or (B), as the case may be; and
(ii) if increasing wholesale rates up to the mar-
ket rate of electricity in the Western System Coordi-
nating Council is not sufficient to meet such require-
ment, the Administrator shall implement a trans-
mission fee to generate revenues sufficient to meet
such requirement but not in excess of $100,000,000
a year.
(2) The Commission shall approve, disapprove, or
modify any transmission rate increase submitted under
this subsection within 30 days after the date of submis-
sion. The Commission shall approve such increase if the
Commission determines that such rate increase meets the
requirements of this subsection and that the Adminis-
trator has taken reasonable steps to avoid such increase
by using its authority under section 4(h)(10)(C) of the Pa-
cific Northwest Electric Power, Planning and Conserva-
tion Act (16 U.S.C. 838b(h)(10)(D)).
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