I
104TH CONGRESS
1ST SESSION
H. R. 599
To provide for the reconstitution of outstanding repayment obligations of
the Administrator of the Bonneville Power Administration for the appro-
priated capital investments in the Federal Columbia River Power System.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 20, 1995
Mr. DEFAZIO (for himself, Mr. BUNN, Mr. DICKS, and Mr. WILLIAMS) intro-
duced the following bill; which was referred to the Committee on Re-
sources
A BILL
To provide for the reconstitution of outstanding repayment
obligations of the Administrator of the Bonneville Power
Administration for the appropriated capital investments
in the Federal Columbia River Power System.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Bonneville Power Ad-
ministration Appropriations Refinancing Act’’.
SEC. 2. DEFINITIONS.
For the purposes of this Act—
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(1) ‘‘Administrator’’ means the Administrator
of the Bonneville Power Administration;
(2) ‘‘capital investment’’ means a capitalized
cost funded by Federal appropriations that—
(A) is for a project, facility, or separable
unit or feature of a project or facility;
(B) is a cost for which the Administrator
is required by law to establish rates to repay to
the United States Treasury through the sale of
electric power, transmission, or other services;
(C) excludes a Federal irrigation invest-
ment; and
(D) excludes an investment financed by the
current revenues of the Administrator or by
bonds issued and sold, or authorized to be is-
sued and sold, by the Administrator under sec-
tion 13 of the Federal Columbia River Trans-
mission System Act (16 U.S.C. 838(k));
(3) ‘‘new capital investment’’ means a capital
investment for a project, facility, or separable unit
or feature of a project or facility, placed in service
after September 30, 1995;
(4) ‘‘old capital investment’’ means a capital in-
vestment whose capitalized cost—
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(A) was incurred, but not repaid, before
October 1, 1995, and
(B) was for a project, facility, or separable
unit or feature of a project or facility, placed in
service before October 1, 1995;
(5) ‘‘repayment date’’ means the end of the pe-
riod within which the Administrator’s rates are to
assure the repayment of the principal amount of a
capital investment; and
(6) ‘‘Treasury rate’’ means—
(A) for an old capital investment, a rate
determined by the Secretary of the Treasury,
taking into consideration prevailing market
yields, during the month preceding October 1,
1995, on outstanding interest-bearing obliga-
tions of the United States with periods to matu-
rity comparable to the period between October
1, 1995, and the repayment date for the old
capital investment; and
(B) for a new capital investment, a rate
determined by the Secretary of the Treasury,
taking into consideration prevailing market
yields, during the month preceding the begin-
ning of the fiscal year in which the related
project, facility, or separable unit or feature is
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placed in service, on outstanding interest-bear-
ing obligations of the United States with peri-
ods to maturity comparable to the period be-
tween the beginning of the fiscal year and the
repayment date for the new capital investment.
SEC. 3. NEW PRINCIPAL AMOUNTS.
(a) Effective October 1, 1995, an old capital invest-
ment has a new principal amount that is the sum of—
(1) the present value of the old payment
amounts for the old capital investment, calculated
using a discount rate equal to the Treasury rate for
the old capital investment; and
(2) an amount equal to $100,000,000 multi-
plied by a fraction whose numerator is the principal
amount of the old payment amounts for the old cap-
ital investment and whose denominator is the sum of
the principal amounts of the old payment amounts
for all old capital investments.
(b) With the approval of the Secretary of the Treas-
ury based solely on consistency with this Act, the Adminis-
trator shall determine the new principal amounts under
section 3 and the assignment of interest rates to the new
principal amounts under section 4.
(c) For the purposes of this section, ‘‘old payment
amounts’’ means, for an old capital investment, the annual
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interest and principal that the Administrator would have
paid to the United States Treasury from October 1, 1995,
if this Act were not enacted, assuming that—
(1) the principal were repaid—
(A) on the repayment date the Adminis-
trator assigned before October 1, 1993, to the
old capital investment, or
(B) with respect to an old capital invest-
ment for which the Administrator has not as-
signed a repayment date before October 1,
1993, on a repayment date the Administrator
shall assign to the old capital investment in ac-
cordance with paragraph 10(d)(1) of the ver-
sion of Department of Energy Order RA
6120.2 in effect on October 1, 1993; and
(2) interest were paid—
(A) at the interest rate the Administrator
assigned before October 1, 1993, to the old cap-
ital investment, or
(B) with respect to an old capital invest-
ment for which the Administrator has not as-
signed an interest rate before October 1, 1993,
at a rate determined by the Secretary of the
Treasury, taking into consideration prevailing
market yields, during the month preceding the
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beginning of the fiscal year in which the related
project, facility, or separable unit or feature is
placed in service, on outstanding interest-bear-
ing obligations of the United States with peri-
ods to maturity comparable to the period be-
tween the beginning of the fiscal year and the
repayment date for the old capital investment.
SEC. 4. INTEREST RATE FOR NEW PRINCIPAL AMOUNTS
As of October 1, 1995, the unpaid balance on the
new principal amount established for an old capital invest-
ment under section 3 bears interest annually at the Treas-
ury rate for the old capital investment until the earlier
of the date that the new principal amount is repaid or
the repayment date for the new principal amount.
SEC. 5. REPAYMENT DATES.
As of October 1, 1995, the repayment date for the
new principal amount established for an old capital invest-
ment under section 3 is no earlier than the repayment date
for the old capital investment assumed in section 3(c)(1).
SEC. 6. PREPAYMENT LIMITATIONS.
During the period October 1, 1995, through Septem-
ber 30, 2000, the total new principal amounts of old cap-
ital investments, as established under section 3, that the
Administrator may pay before their respective repayment
dates shall not exceed $100,000,000.
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SEC. 7. INTEREST RATES FOR NEW CAPITAL INVESTMENTS
DURING CONSTRUCTION.
(a) The principal amount of a new capital investment
includes interest in each fiscal year of construction of the
related project, facility, or separable unit or feature at a
rate equal to the one-year rate for the fiscal year on the
sum of—
(1) construction expenditures that were made
from the date construction commenced through the
end of the fiscal year, and
(2) accrued interest during construction.
(b) The Administrator is not required to pay, during
construction of the project, facility, or separable unit or
feature, the interest calculated, accrued, and capitalized
under subsection (a).
(c) For the purposes of this section, ‘one-year rate’
for a fiscal year means a rate determined by the Secretary
of the Treasury, taking into consideration prevailing mar-
ket yields, during the month preceding the beginning of
the fiscal year, on outstanding interest-bearing obligations
of the United States with periods to maturity of approxi-
mately one year.
SEC. 8. INTEREST RATES FOR NEW CAPITAL INVESTMENTS.
The unpaid balance on the principal amount of a new
capital investment bears interest at the Treasury rate for
the new capital investment from the date the related
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project, facility, or separable unit or feature is placed in
service until the earlier of the date the new capital invest-
ment is repaid or the repayment date for the new capital
investment.
SEC. 9. APPROPRIATED AMOUNTS.
The Confederated Tribe of the Colville Reservation
Grand Coulee Dam Settlement Act (Public Law No. 103–
436) is amended by striking section 6 and its catchline
and inserting the following:
‘‘SEC. 6. APPROPRIATED AMOUNTS.
‘‘(a) Without fiscal year limitation, there are appro-
priated to the Administrator $15.25 million in fiscal year
1996, $15.86 million in fiscal year 1997, $16.49 million
in fiscal year 1998, $17.15 million in fiscal year 1999,
$17.84 million in fiscal year 2000, and $4.10 million in
each succeeding fiscal year so long as the Administrator
makes annual payments to the Tribes under the settle-
ment agreement.
‘‘(b) For the purposes of this section—
‘‘(1) ‘settlement agreement’ means that settle-
ment agreement between the United States of Amer-
ica and the Confederated Tribes of the Colville Res-
ervation signed by the Tribes on April 16, 1994, and
by the United States of America on April 21, 1994,
which settlement agreement resolves claims of the
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(C) any payment of principal of an old
capital investment shall reduce the outstanding
principal balance of the old capital investment
in the amount of the payment at the time the
payment is tendered; and
(D) any payment of interest on the unpaid
balance of the new principal amount of an old
capital investment shall be a credit against the
appropriate interest account in the amount of
the payment at the time the payment is ten-
dered;
(2) apart from charges necessary to repay the
new principal amount of an old capital investment as
established under section 3 of this Act and to pay
the interest on the principal amount under section 4
of this Act, no amount may be charged for return
to the United States Treasury as repayment for or
return on an old capital investment, whether by way
of rate, rent, lease payment, assessment, user
charge, or any other fee;
(3) amounts provided under section 1304 of
title 31, United States Code, shall be available to
pay, and shall be the sole source for payment of, a
judgment against or settlement by the Administrator
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or the United States on a claim for a breach of the
contract provisions required by this Act; and
(4) the contract provisions specified in this Act
do not—
(A) preclude the Administrator from recov-
ering, through rates or other means, any tax
that is generally imposed on electric utilities in
the United States, or
(B) affect the Administrator’s authority
under applicable law, including section 7(g) of
the Pacific Northwest Electric Power Planning
and Conservation Act (16 U.S.C. 839e(g)), to—
(i) allocate costs and benefits, includ-
ing but not limited to fish and wildlife
costs, to rates or resources, or
(ii) design rates.
SEC. 11. SAVINGS PROVISIONS.
(a) This Act does not affect the obligation of the Ad-
ministrator to repay the principal associated with each
capital investment, and to pay interest on the principal,
only from the ‘‘Administrator’s net proceeds,’’ as defined
in section 13 of the Federal Columbia River Transmission
System Act (16 U.S.C. 838k(b)).
(b) Except as provided in section 6 of this Act, this
Act does not affect the authority of the Administrator to
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pay all or a portion of the principal amount associated
with a capital investment before the repayment date for
the principal amount.
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