H. R. 4818—157
‘‘(E) adopt and submit to Congress a conflict-of-interest
policy applicable to members of the Board and employees
of the Corporation;
‘‘(F) establish a compensation plan for employees of
the Corporation in accordance with subsection (i);
‘‘(G) approve all compensation (including salary or any
other pay, bonuses, benefits, incentives, and any other form
of remuneration) of all managers and technical personnel
that report directly to the chief executive officer (including
any adjustment to compensation);
‘‘(H) ensure that all activities of the Corporation are
carried out in compliance with applicable law;
‘‘(I) create an audit committee, composed solely of
Board members independent of the management of the
Corporation, which shall—
‘‘(i) in consultation with the inspector general of
the Corporation, recommend to the Board an external
auditor;
‘‘(ii) receive and review reports from the external
auditor of the Corporation and inspector general of
the Corporation; and
‘‘(iii) make such recommendations to the Board
as the audit committee considers necessary;
‘‘(J) create such other committees of Board members
as the Board considers to be appropriate;
‘‘(K) conduct such public hearings as it deems appro-
priate on issues that could have a substantial effect on—
‘‘(i) the electric ratepayers in the service area; or
‘‘(ii) the economic, environmental, social, or phys-
ical well-being of the people of the service area;
‘‘(L) establish the electricity rates charged by the Cor-
poration; and
‘‘(M) engage the services of an external auditor for
the Corporation.
‘‘(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.—
‘‘(A) IN GENERAL.—To serve as chief executive officer
of the Corporation, a person—
‘‘(i) shall have senior executive-level management
experience in large, complex organizations;
‘‘(ii) 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 executive officer;
and
‘‘(iii) shall comply with the conflict-of-interest
policy adopted by the Board.
‘‘(B) EXPERTISE.—In appointing a chief executive
officer, the Board shall give particular consideration to
appointing an individual with expertise in the electric
industry and with strong financial skills.
‘‘(3) TENURE.—The chief executive officer shall serve at
the pleasure of the Board.
‘‘(i) COMPENSATION PLAN.—
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‘‘(1) IN GENERAL.—The Board shall approve a compensation
plan that specifies all compensation (including salary or any
other pay, bonuses, benefits, incentives, and any other form
of remuneration) for the chief executive officer and employees
of the Corporation.
‘‘(2) ANNUAL
SURVEY.—The compensation plan shall be
based on an annual survey of the prevailing compensation
for similar positions 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 pro-
vide that education, experience, level of responsibility,
geographic differences, and retention and recruitment needs
will be taken into account in determining compensation of
employees.
‘‘(4) 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.
‘‘(5) POSITIONS ABOVE LEVEL IV.—On the recommendation
of the chief executive officer, the Board shall approve the sala-
ries 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.’’.
SEC. 602. 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 OFFICER.—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, assistant 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. 603. 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 following:
‘‘(c) AUDITS.—The Comptroller General of the United States
shall audit’’; and
(2) by striking ‘‘The Corporation shall determine’’ and
inserting the following:
H. R. 4818—159
‘‘(d) ADMINISTRATIVE ACCOUNTS AND BUSINESS DOCUMENTS.—
The Corporation shall determine’’.
(c) Title 5, United States Code, is amended—
(1) in section 5314, by striking ‘‘Chairman, Board of Direc-
tors of the Tennessee Valley Authority.’’; and
(2) in section 5315, by striking ‘‘Members, Board of Direc-
tors of the Tennessee Valley Authority.’’.
SEC. 604. APPOINTMENTS; EFFECTIVE DATE; TRANSITION.
(a) APPOINTMENTS.—
(1) IN
GENERAL.—As soon as practicable after the date
of enactment of this Act, the President shall submit to the
Senate nominations of six persons to serve as members of
the Board of Directors of the Tennessee Valley Authority in
addition to the members serving on the date of enactment
of this Act.
(2) INITIAL
TERMS.—Notwithstanding section 2(d) of the
Tennessee Valley Authority Act of 1933 (as amended by this
title), in making the appointments under paragraph (1), the
President shall appoint—
(A) two members for a term to expire on May 18,
2007;
(B) two members for a term to expire on May 18,
2009; and
(C) two members for a term to expire on May 18,
2011.
(b) EFFECTIVE DATE.—The amendments made by this title take
effect on the later of—
(1) the date on which at least three persons nominated
under subsection (a) take office; or
(2) May 18, 2005.
(c) SELECTION OF CHAIRMAN.—The Board of Directors of the
Tennessee Valley Authority shall select one of the members to
act as chairman of the Board not later than 30 days after the
effective date specified in subsection (b).
(d) CONFLICT-OF-INTEREST POLICY.—The Board of Directors of
the Tennessee Valley Authority shall adopt and submit to Congress
a conflict-of-interest policy, as required by section 2(g)(1)(E) of the
Tennessee Valley Authority Act of 1933 (as amended by this title),
as soon as practicable after the effective date specified in subsection
(b).
(e) TRANSITION.—A person who is serving as a member of
the board of directors of the Tennessee Valley Authority on the
date of enactment of this Act—
(1) shall continue to serve until the end of the current
term of the member; but
(2) after the effective date specified in subsection (b), shall
serve under the terms of the Tennessee Valley Authority Act
of 1933 (as amended by this title).
This division may be cited as the ‘‘Energy and Water Develop-
ment Appropriations Act, 2005’’.