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If Western declines to purchase the power
after consultation with its affected pref-
erence customers, such power shall then be
offered at the same rates first to Western’s
preference customers located in the Salt
Lake City area integrated projects market-
ing area (referred to in this section as the
‘‘SLCAIP preference customers’’). There-
after, such power may be sold to any other
party: Provided, however, That no such sale
may occur at rates less than rates estab-
lished in accordance with clause (ii) unless
such power is first offered at such lesser
rate first to Western and then to its
SLCAIP preference customers.
(ii) The rate for power initially offered
to Western and its SLCAIP preference
customers under this paragraph shall not
exceed that required to produce revenues
sufficient to provide for—
(I) annual debt service and/or
recoupment of the cost of capital for
the amount specified in subsection
(c)(4)(A)(i) of this section, less the
sum of $310,000 (which is the net
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present value of the outstanding re-
payment obligation of the Collbran
Conservancy District), and
(II) the cost of operation, main-
tenance, and replacement of the power
component of the project.
Such costs and rate shall be determined in a
manner consistent with the current principles
followed by the Secretary of the Interior and by
Western in its annual power and repayment
study.
(e) LICENSE.—
(1) Prior to the conveyance of the project to the
districts, the Commission shall issue to the districts
a license or licenses as appropriate under part I of
the Federal Power Act, as amended (16 U.S.C. 791
et seq.), authorizing for a term of 40 years the con-
tinued operation and maintenance of the power com-
ponent of the project.
(2) The license issued pursuant to subsection
(l)—
(A) shall be for the purpose of operating,
using, maintaining, repairing, and replacing the
power component of the project as authorized
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by the Act of July 3, 1952 (66 Stat. 325, chap-
ter 565);
(B) shall be conditioned upon the require-
ment that the power component of the project
continue to be operated and maintained in ac-
cordance with the authorized purposes of the
project; and
(C) shall be subject only to the provisions
of part I of the Federal Power Act, except the
word ‘‘constructed’’ in section 3(10); the four
provisos of section 4(e); section 6 to the extent
it requires the licensee’s acceptance of those
terms and conditions of the Act that this sub-
section waives; section 10(e) as concerns annual
charges for the use and occupancy of Federal
lands and facilities; section 10(f); section 10(j);
section 18; section 19; section 20; and section
22 of the Federal Power Act, 16 U.S.C.
796(10), 797(e), 799, 803(e), 803(f), 803(j),
811, 812, 813, and 815; and shall not be sub-
ject to the standard ‘‘L–Form’’ license condi-
tions, published at 54 FPC 1792–1928 (1975),
the Federal Land Policy and Management Act
(43 U.S.C. 1701 et seq.), as amended, section
2402 of the Energy Policy Act of 1992 (16
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U.S.C. 797c), the National Environmental Pol-
icy Act of 1969 (42 U.S.C. 4321 et seq.), the
Endangered Species Act of 1973 (16 U.S.C.
1531 et seq.), the Wild and Scenic Rivers Act
(16 U.S.C. 1271 et seq.), the Federal Water
Pollution Control Act (commonly known as the
‘‘Clean Water Act’’) (33 U.S.C. 1251 et seq.),
the National Historic Preservation Act (16
U.S.C. 470 et seq.), the Coastal Zone Manage-
ment Act of 1972 (16 U.S.C. 1451 et seq.), the
Fish and Wildlife Coordination Act (16 U.S.C.
661 et seq.), or any other Act otherwise appli-
cable to the licensing of the project.
(3) The license issued under paragraph (1) is
deemed to meet the licensing standards of the Fed-
eral Power Act, including section 10(a) and the last
sentence of section 4(e), 16 U.S.C. 797(e).
(4) Any power site reservation established by
the President, the Secretary of the Interior, or pur-
suant to section 24 of the Federal Power Act (16
U.S.C. 818) or any other law, which exists on any
lands, whether federally or privately owned, that are
included within the boundaries of the project shall
be vacated by operation of law upon issuance of the
license for the project.
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(5) All requirements of part I of the Federal
Power Act and of any other Act applicable to the li-
censing of a hydroelectric project shall apply to the
project upon expiration of the license issued under
this section.
(6) For purposes of this section, ‘‘Commission’’
means the Federal Energy Regulatory Commission.
(7) The operation of the project shall be subject
to all applicable State and Federal laws subsequent
to the issuance of the license pursuant to paragraph
(1).
(f) INAPPLICABILITY OF NEPA.—Neither the con-
veyance of the project nor the issuance of easements pur-
suant to this section constitutes a major Federal action
within the meaning of the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.), including any regu-
lations issued under such Act.
(g) 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
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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.
(h) DISTRICTS’ LIABILITY.—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 con-
veyance under subsection (c), including damages to Fed-
eral lands or facilities which result from the failure of
project facilities.
(i) EFFECT ON STATE LAW.—Nothing in this section
shall be construed to impair the effectiveness of any State
or local law (including regulations) relating to land use.
(j) TREATMENT OF SALES FOR PURPOSES OF CER-
TAIN LAWS.—The sales of assets under this subchapter
shall not be considered a disposal of Federal surplus prop-
erty under the following provisions of law:
(1) Section 203 of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C.
484).