Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act

Bill: 113-hr-1963
Sponsor: full_name: Rep. Daines, Steve [R-MT-At Large]
Introduced: 2013-05-14
Policy area: Energy
Subjects: Alternative and renewable resources

Dams and canals

Electric power generation and transmission

Environmental assessment, monitoring, research

Pipelines

Water use and supply
Latest action: action_date: 2014-07-31
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 518.

Summaries:
action_date: 2013-05-14
action_desc: Introduced in House
text: <p>Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act - Amends the Water Conservation and Utilization Act (WCUA) to: (1) repeal a provision reserving all right, title, and interest in the facilities provided for municipal or miscellaneous water supplies or surplus power and the revenues derived therefrom to the United States; (2) authorize the Secretary of the Interior (acting through the Bureau of Reclamation) to enter into leases of power privileges for electric power generation in connection with any project constructed under such Act; (3) grant the Secretary authority in addition to and alternative to any authority in existing laws related to particular projects, including small conduit hydropower development; and (4) direct the Secretary to first offer the lease of power privilege to an irrigation district or water users association operating the applicable transferred conduit or to the irrigation district or water users association receiving water from the applicable reserved conduit.</p> <p>Requires the Bureau to apply its categorical exclusion process under the National Environmental Policy Act of 1969 (NEPA) to small conduit hydropower under WCUA, excluding siting of associated transmission facilities on federal lands.</p> <p>Declares that nothing in WCUA shall: (1) obligate specified power administrations to purchase or market the power produced by such facilities, (2) alter or impede the delivery and management of water for original project purposes, or (3) alter or affect any agreements in effect on the date of this Act's enactment for conduit hydropower development projects or disposition of revenues. Deems water used for conduit hydropower generation to be incidental to use of water for the original project purposes.</p>

action_date: 2013-10-22
action_desc: Reported to House with amendment(s)
text: <p>Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act - Amends the Water Conservation and Utilization Act (WCUA) to: (1) authorize the Secretary of the Interior (acting through the Bureau of Reclamation) to enter into leases of power privileges for electric power generation in connection with any project constructed under such Act; and (2) grant the Secretary authority in addition to and alternative to any authority in existing laws relating to particular projects, including small conduit hydropower development, consistent with the terms of such Act, the Reclamation Project Act of 1939, and other federal reclamation laws.</p> <p>Requires all right, title, and interest to installed power facilities constructed by non-federal entities pursuant to a lease of power privilege, and direct revenues derived therefrom, to remain with the lessee, except that the lease of power privilege charges or fees under this Act shall be credited to the facility from which those revenues were derived.</p> <p>Requires the Secretary: (1) to first offer the lease of power privilege to an irrigation district or water users association operating the applicable transferred conduit, or to the district or association receiving water from such conduit; (2) to determine a reasonable timeframe for the district or association to accept or reject the lease offer; and (3) if the district or association rejects the offer, to offer the lease to other parties in accordance with WCUA.</p> <p>Requires the Bureau to apply its categorical exclusion process under the National Environmental Policy Act of 1969 (NEPA) to small conduit hydropower under WCUA, excluding siting of associated transmission facilities on federal lands.</p> <p>

action_date: 2013-12-03
action_desc: Passed House amended
text: <p>Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act - Amends the Water Conservation and Utilization Act (WCUA) to: (1) authorize the Secretary of the Interior (acting through the Bureau of Reclamation) to enter into leases of power privileges for electric power generation in connection with any project constructed under such Act, using the processes applicable to such leases under the Reclamation Project Act of 1939 (RPA); and (2) grant the Secretary authority in addition to and alternative to any authority in existing laws relating to particular projects, including small conduit hydropower development. </p> <p>Requires the lease of power privilege contracts to be at rates that will produce revenues at least sufficient to cover the appropriate share of the annual operation and maintenance cost of the project and such fixed charges, including interest, as the Secretary deems proper. Limits such leases to periods not to exceed 40 years. Specifies that no findings required as prerequisites for construction of a water conservation or utilization project under WCUA shall be required for such a lease.</p> <p>Requires all right, title, and interest to installed power facilities constructed by non-federal entities pursuant to a lease of power privilege, and direct revenues derived therefrom, to remain with the lessee, except that lease revenues and fixed charges, if any, shall be covered into the Reclamation Fund to be credited to the project from which those revenues were derived.</p> <p>Requires the Secretary: (1) to first offer the lease of power privilege to an irrigation district or water users association operating the applicable transferred conduit, or to the district or association receiving water from such conduit; (2) to determine a reasonable timeframe for the district or association to accept or reject the lease offer; and (3) if the district or association rejects the offer, to offer the lease to other parties using the applicable RPA processes.</p> <p>Requires the Bureau to apply its categorical exclusion process under the National Environmental Policy Act of 1969 (NEPA) to small conduit hydropower under WCUA, excluding siting of associated transmission facilities on federal lands.</p> <p>

action_date: 2014-07-31
action_desc: Reported to Senate with amendment(s)
text: <p>Bureau of Reclamation Hydropower Development Equity and Jobs Act - Amends the Water Conservation and Utilization Act (WCUA) to: (1) authorize the Secretary of the Interior (acting through the Bureau of Reclamation) to enter into leases of power privileges for electric power generation in connection with any project constructed pursuant to such Act, using the processes, terms, and conditions applicable to the lease under the Reclamation Project Act of 1939; and (2) grant the Secretary authority over any project constructed pursuant to such Act in addition to and alternative to any existing authority relating to a particular project. </p> <p>Specifies that no findings required as prerequisites for construction of a water conservation or utilization project under WCUA shall be required for such a lease.</p> <p>Requires: (1) all right, title, and interest in and to installed power facilities constructed by non-federal entities pursuant to such a lease, and any direct revenues derived from such lease, to remain with the lessee; and (2) lease charges to be credited to the project from which the power is derived.</p>

tv_txt: I 113th CONGRESS 1st Session H. R. 1963 IN THE HOUSE OF REPRESENTATIVES May 14, 2013 Mr. Daines introduced the following bill; which was referred to the Committee on Natural Resources A BILL To amend the Water Conservation and Utilization Act to authorize the development of non-Federal hydropower and issuance of leases of power privileges at projects constructed pursuant to the authority of the Water Conservation and Utilization Act, and for other purposes.

1. Short title This Act may be cited as the Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act . 2. Amendment Section 9 of the Act entitled An Act authorizing construction of water conservation and utilization projects in the Great Plains and arid semiarid areas of the United States , approved August 11, 1939 ( 16 U.S.C. 590z–7 ; commonly known as the Water Conservation and Utilization Act ), is amended— (1) by striking In connection with and inserting (a) In connection with ; (2) by striking All right, title, and interest in the facilities provided for such municipal or miscellaneous water supplies or surplus power and the revenues derived therefrom shall be and remain in the United States. ; and (3) by adding at the end the following: (b) The Secretary is authorized to enter into leases of power privileges for electric power generation in connection with any project constructed under this Act, and shall have authority in addition to and alternative to any authority in existing laws related to particular projects, including small conduit hydropower development, consistent with the terms of this Act, the Reclamation Project Act of 1939 (43 U.S.C. 485h), and other Federal reclamation laws. (c) When carrying out this section, the Secretary shall first offer the lease of power privilege to an irrigation district or water users association operating the applicable transferred conduit, or to the irrigation district or water users association receiving water from the applicable reserved conduit. The Secretary shall determine a reasonable timeframe for the irrigation district or water users association to accept or reject a lease of power privilege offer. If the irrigation district or water users association elects not to accept a lease of power privilege offer under paragraph (1), the Secretary shall offer the lease of power privilege to other parties in accordance with this section. (d) The Bureau of Reclamation shall apply its categorical exclusion process under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) to small conduit hydropower development under this section, excluding siting of associated transmission facilities on Federal lands. (e) Nothing in this section shall obligate the Western Area Power Administration or the Bonneville Power Administration to purchase or market any of the power produced by the facilities covered under this section and none of the costs associated with production or delivery of such power shall be assigned to project purposes for inclusion in project rates. (f) Nothing in this section shall alter or impede the delivery and management of water by Bureau of Reclamation facilities, as water used for conduit hydropower generation shall be deemed incidental to use of water for the original project purposes. Lease of power privilege shall be made only when, in the judgment of the Secretary, the exercise of the lease will not be incompatible with the purposes of the project or division involved and shall not create any unmitigated financial or physical impacts to the project or division involved. The Secretary shall notify and consult with the irrigation district or legally organized water users association operating the transferred conduit in advance of offering the lease of power privilege and shall prescribe such terms and conditions necessary to adequately protect the planning, design, construction, operation, maintenance, and other interests of the United States and the project or division involved. (g) Nothing in this section shall alter or affect any agreements in effect on the date of the enactment of the Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act for the development of conduit hydropower projects or disposition of revenues. (h) In this section: (1) Conduit The term conduit means any Bureau of Reclamation tunnel, canal, pipeline, aqueduct, flume, ditch, or similar manmade water conveyance that is operated for the distribution of water for agricultural, municipal, or industrial consumption and not primarily for the generation of electricity. (2) Irrigation district The term irrigation district means any irrigation, water conservation or conservancy, multi-county water conservation or conservancy district, or any separate public entity composed of two or more such districts and jointly exercising powers of its member districts. (3) Reserved conduit The term reserved conduit means any conduit that is included in project works the care, operation, and maintenance of which has been reserved by the Secretary, through the Commissioner of the Bureau of Reclamation. (4) Transferred conduit The term transferred conduit means any conduit that is included in project works the care, operation, and maintenance of which has been transferred to a legally organized water users association or irrigation district. (5) Small conduit hydropower The term small conduit hydropower means a facility capable of producing 5 megawatts or less of electric capacity. .

tv_txt: IB Union Calendar No. 177 113th CONGRESS 1st Session H. R. 1963 [Report No. 113–249] IN THE HOUSE OF REPRESENTATIVES May 14, 2013 Mr. Daines introduced the following bill; which was referred to the Committee on Natural Resources October 22, 2013 Additional sponsors: Mr. Tipton , Mr. LaMalfa , Mr. Cramer , and Mrs. Lummis October 22, 2013 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on May 14, 2013 A BILL To amend the Water Conservation and Utilization Act to authorize the development of non-Federal hydropower and issuance of leases of power privileges at projects constructed pursuant to the authority of the Water Conservation and Utilization Act, and for other purposes.

1. Short title This Act may be cited as the Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act . 2. Amendment Section 9 of the Act entitled An Act authorizing construction of water conservation and utilization projects in the Great Plains and arid semiarid areas of the United States , approved August 11, 1939 ( 16 U.S.C. 590z–7 ; commonly known as the Water Conservation and Utilization Act ), is amended— (1) by striking In connection with and inserting (a) In connection with ; and (2) by adding at the end the following: (b) Except as otherwise provided in this section, the Secretary is authorized to enter into leases of power privileges for electric power generation in connection with any project constructed under this Act, and shall have authority in addition to and alternative to any authority in existing laws relating to particular projects, including small conduit hydropower development, consistent with the terms of this Act, the Reclamation Project Act of 1939 ( 43 U.S.C. 485h ), and other Federal reclamation laws. (c) All right, title, and interest to installed power facilities constructed by non-Federal entities pursuant to a lease of power privilege, and direct revenues derived therefrom, shall remain with the lessee unless otherwise required in subsection (d). (d) Lease of power privilege charges or fees under this section shall be credited to the facility from which those revenues were derived. (e) When carrying out this section, the Secretary shall first offer the lease of power privilege to an irrigation district or water users association operating the applicable transferred conduit, or to the irrigation district or water users association receiving water from the applicable reserved conduit. The Secretary shall determine a reasonable timeframe for the irrigation district or water users association to accept or reject a lease of power privilege offer. If the irrigation district or water users association elects not to accept a lease of power privilege offer under paragraph (1), the Secretary shall offer the lease of power privilege to other parties in accordance with this section. (f) The Bureau of Reclamation shall apply its categorical exclusion process under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) to small conduit hydropower development under this section, excluding siting of associated transmission facilities on Federal lands. (g) Nothing in this section shall obligate the Western Area Power Administration or the Bonneville Power Administration to purchase or market any of the power produced by the facilities covered under this section and none of the costs associated with production or delivery of such power shall be assigned to project purposes for inclusion in project rates. (h) Nothing in this section shall alter or impede the delivery and management of water by Bureau of Reclamation facilities, as water used for conduit hydropower generation shall be deemed incidental to use of water for the original project purposes. Lease of power privilege shall be made only when, in the judgment of the Secretary, the exercise of the lease will not be incompatible with the purposes of the project or division involved and shall not create any unmitigated financial or physical impacts to the project or division involved. The Secretary shall notify and consult with the irrigation district or legally organized water users association operating the transferred conduit in advance of offering the lease of power privilege and shall prescribe such terms and conditions necessary to adequately protect the planning, design, construction, operation, maintenance, and other interests of the United States and the project or division involved. (i) Nothing in this section shall alter or affect any agreements in effect on the date of the enactment of the Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act for the development of conduit hydropower projects or disposition of revenues. (j) In this section: (1) The term conduit means any Bureau of Reclamation tunnel, canal, pipeline, aqueduct, flume, ditch, or similar manmade water conveyance that is operated for the distribution of water for agricultural, municipal, or industrial consumption and not primarily for the generation of electricity. (2) The term irrigation district means any irrigation, water conservation or conservancy, multi-county water conservation or conservancy district, or any separate public entity composed of two or more such districts and jointly exercising powers of its member districts. (3) The term reserved conduit means any conduit that is included in project works the care, operation, and maintenance of which has been reserved by the Secretary, through the Commissioner of the Bureau of Reclamation. (4) The term transferred conduit means any conduit that is included in project works the care, operation, and maintenance of which has been transferred to a legally organized water users association or irrigation district. (5) The term small conduit hydropower means a facility capable of producing 5 megawatts or less of electric capacity. .

October 22, 2013 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: I 113th CONGRESS 1st Session H. R. 1963 IN THE HOUSE OF REPRESENTATIVES AN ACT To amend the Water Conservation and Utilization Act to authorize the development of non-Federal hydropower and issuance of leases of power privileges at projects constructed pursuant to the authority of the Water Conservation and Utilization Act, and for other purposes.

1. Short title This Act may be cited as the Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act . 2. Amendment Section 9 of the Act entitled An Act authorizing construction of water conservation and utilization projects in the Great Plains and arid semiarid areas of the United States , approved August 11, 1939 ( 16 U.S.C. 590z–7 ; commonly known as the Water Conservation and Utilization Act ), is amended— (1) by striking In connection with and inserting (a) In connection with ; and (2) by adding at the end the following: (b) Notwithstanding subsection (a), the Secretary is authorized to enter into leases of power privileges for electric power generation in connection with any project constructed under this Act, and shall have authority in addition to and alternative to any authority in existing laws relating to particular projects, including small conduit hydropower development. (c) When entering into leases of power privileges under subsection (b), the Secretary shall use the processes applicable to such leases under section 9(c) of the Reclamation Project Act of 1939 ( 43 U.S.C. 485h(c) ). (d) Lease of power privilege contracts shall be at such rates as, in the Secretary’s judgment, will produce revenues at least sufficient to cover the appropriate share of the annual operation and maintenance cost of the project and such fixed charges, including interest, as the Secretary deems proper. Lease of power privilege contracts shall be for periods not to exceed 40 years. (e) No findings under section 3 shall be required for a lease under subsection (b). (f) All right, title, and interest to installed power facilities constructed by non-Federal entities pursuant to a lease of power privilege, and direct revenues derived therefrom, shall remain with the lessee unless otherwise required under subsection (g). (g) Notwithstanding section 8, lease revenues and fixed charges, if any, shall be covered into the Reclamation Fund to be credited to the project from which those revenues or charges were derived. (h) When carrying out this section, the Secretary shall first offer the lease of power privilege to an irrigation district or water users association operating the applicable transferred conduit, or to the irrigation district or water users association receiving water from the applicable reserved conduit. The Secretary shall determine a reasonable timeframe for the irrigation district or water users association to accept or reject a lease of power privilege offer. If the irrigation district or water users association elects not to accept a lease of power privilege offer under subsection (b), the Secretary shall offer the lease of power privilege to other parties using the processes applicable to such leases under section 9(c) of the Reclamation Project Act of 1939 ( 43 U.S.C. 485h(c) ). (i) The Bureau of Reclamation shall apply its categorical exclusion process under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) to small conduit hydropower development under this section, excluding siting of associated transmission facilities on Federal lands. (j) Nothing in this section shall obligate the Western Area Power Administration or the Bonneville Power Administration to purchase or market any of the power produced by the facilities covered under this section and none of the costs associated with production or delivery of such power shall be assigned to project purposes for inclusion in project rates. (k) Nothing in this section shall alter or impede the delivery and management of water by Bureau of Reclamation facilities, as water used for conduit hydropower generation shall be deemed incidental to use of water for the original project purposes. Lease of power privilege shall be made only when, in the judgment of the Secretary, the exercise of the lease will not be incompatible with the purposes of the project or division involved and shall not create any unmitigated financial or physical impacts to the project or division involved. The Secretary shall notify and consult with the irrigation district or legally organized water users association operating the transferred conduit in advance of offering the lease of power privilege and shall prescribe such terms and conditions necessary to adequately protect the planning, design, construction, operation, maintenance, and other interests of the United States and the project or division involved. (l) Nothing in this section shall alter or affect any agreements in effect on the date of the enactment of the Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act for the development of conduit hydropower projects or disposition of revenues. (m) In this section: (1) The term conduit means any Bureau of Reclamation tunnel, canal, pipeline, aqueduct, flume, ditch, or similar manmade water conveyance that is operated for the distribution of water for agricultural, municipal, or industrial consumption and not primarily for the generation of electricity. (2) The term irrigation district means any irrigation, water conservation or conservancy, multi-county water conservation or conservancy district, or any separate public entity composed of two or more such districts and jointly exercising powers of its member districts. (3) The term reserved conduit means any conduit that is included in project works the care, operation, and maintenance of which has been reserved by the Secretary, through the Commissioner of the Bureau of Reclamation. (4) The term transferred conduit means any conduit that is included in project works the care, operation, and maintenance of which has been transferred to a legally organized water users association or irrigation district. (5) The term small conduit hydropower means a facility capable of producing 5 megawatts or less of electric capacity. .

Passed the House of Representatives December 3, 2013. Karen L. Haas, Clerk.

tv_txt: IIB 113th CONGRESS 1st Session H. R. 1963 IN THE SENATE OF THE UNITED STATES December 9, 2013 Received; read twice and referred to the Committee on Energy and Natural Resources AN ACT To amend the Water Conservation and Utilization Act to authorize the development of non-Federal hydropower and issuance of leases of power privileges at projects constructed pursuant to the authority of the Water Conservation and Utilization Act, and for other purposes.

1. Short title This Act may be cited as the Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act . 2. Amendment Section 9 of the Act entitled An Act authorizing construction of water conservation and utilization projects in the Great Plains and arid semiarid areas of the United States , approved August 11, 1939 ( 16 U.S.C. 590z–7 ; commonly known as the Water Conservation and Utilization Act ), is amended— (1) by striking In connection with and inserting (a) In connection with ; and (2) by adding at the end the following: (b) Notwithstanding subsection (a), the Secretary is authorized to enter into leases of power privileges for electric power generation in connection with any project constructed under this Act, and shall have authority in addition to and alternative to any authority in existing laws relating to particular projects, including small conduit hydropower development. (c) When entering into leases of power privileges under subsection (b), the Secretary shall use the processes applicable to such leases under section 9(c) of the Reclamation Project Act of 1939 ( 43 U.S.C. 485h(c) ). (d) Lease of power privilege contracts shall be at such rates as, in the Secretary’s judgment, will produce revenues at least sufficient to cover the appropriate share of the annual operation and maintenance cost of the project and such fixed charges, including interest, as the Secretary deems proper. Lease of power privilege contracts shall be for periods not to exceed 40 years. (e) No findings under section 3 shall be required for a lease under subsection (b). (f) All right, title, and interest to installed power facilities constructed by non-Federal entities pursuant to a lease of power privilege, and direct revenues derived therefrom, shall remain with the lessee unless otherwise required under subsection (g). (g) Notwithstanding section 8, lease revenues and fixed charges, if any, shall be covered into the Reclamation Fund to be credited to the project from which those revenues or charges were derived. (h) When carrying out this section, the Secretary shall first offer the lease of power privilege to an irrigation district or water users association operating the applicable transferred conduit, or to the irrigation district or water users association receiving water from the applicable reserved conduit. The Secretary shall determine a reasonable timeframe for the irrigation district or water users association to accept or reject a lease of power privilege offer. If the irrigation district or water users association elects not to accept a lease of power privilege offer under subsection (b), the Secretary shall offer the lease of power privilege to other parties using the processes applicable to such leases under section 9(c) of the Reclamation Project Act of 1939 ( 43 U.S.C. 485h(c) ). (i) The Bureau of Reclamation shall apply its categorical exclusion process under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) to small conduit hydropower development under this section, excluding siting of associated transmission facilities on Federal lands. (j) Nothing in this section shall obligate the Western Area Power Administration or the Bonneville Power Administration to purchase or market any of the power produced by the facilities covered under this section and none of the costs associated with production or delivery of such power shall be assigned to project purposes for inclusion in project rates. (k) Nothing in this section shall alter or impede the delivery and management of water by Bureau of Reclamation facilities, as water used for conduit hydropower generation shall be deemed incidental to use of water for the original project purposes. Lease of power privilege shall be made only when, in the judgment of the Secretary, the exercise of the lease will not be incompatible with the purposes of the project or division involved and shall not create any unmitigated financial or physical impacts to the project or division involved. The Secretary shall notify and consult with the irrigation district or legally organized water users association operating the transferred conduit in advance of offering the lease of power privilege and shall prescribe such terms and conditions necessary to adequately protect the planning, design, construction, operation, maintenance, and other interests of the United States and the project or division involved. (l) Nothing in this section shall alter or affect any agreements in effect on the date of the enactment of the Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act for the development of conduit hydropower projects or disposition of revenues. (m) In this section: (1) The term conduit means any Bureau of Reclamation tunnel, canal, pipeline, aqueduct, flume, ditch, or similar manmade water conveyance that is operated for the distribution of water for agricultural, municipal, or industrial consumption and not primarily for the generation of electricity. (2) The term irrigation district means any irrigation, water conservation or conservancy, multi-county water conservation or conservancy district, or any separate public entity composed of two or more such districts and jointly exercising powers of its member districts. (3) The term reserved conduit means any conduit that is included in project works the care, operation, and maintenance of which has been reserved by the Secretary, through the Commissioner of the Bureau of Reclamation. (4) The term transferred conduit means any conduit that is included in project works the care, operation, and maintenance of which has been transferred to a legally organized water users association or irrigation district. (5) The term small conduit hydropower means a facility capable of producing 5 megawatts or less of electric capacity. .

Passed the House of Representatives December 3, 2013. Karen L. Haas, Clerk

tv_txt: II Calendar No. 518 113th CONGRESS 2d Session H. R. 1963 [Report No. 113–231] IN THE SENATE OF THE UNITED STATES December 9, 2013 Received; read twice and referred to the Committee on Energy and Natural Resources July 31, 2014 Reported by Ms. Landrieu , with an amendment Strike out all after the enacting clause and insert the part printed in italic AN ACT To amend the Water Conservation and Utilization Act to authorize the development of non-Federal hydropower and issuance of leases of power privileges at projects constructed pursuant to the authority of the Water Conservation and Utilization Act, and for other purposes.

1. Short title This Act may be cited as the Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act . 2. Amendment Section 9 of the Act entitled An Act authorizing construction of water conservation and utilization projects in the Great Plains and arid semiarid areas of the United States , approved August 11, 1939 ( 16 U.S.C. 590z–7 ; commonly known as the Water Conservation and Utilization Act ), is amended— (1) by striking In connection with and inserting (a) In connection with ; and (2) by adding at the end the following: (b) Notwithstanding subsection (a), the Secretary is authorized to enter into leases of power privileges for electric power generation in connection with any project constructed under this Act, and shall have authority in addition to and alternative to any authority in existing laws relating to particular projects, including small conduit hydropower development. (c) When entering into leases of power privileges under subsection (b), the Secretary shall use the processes applicable to such leases under section 9(c) of the Reclamation Project Act of 1939 ( 43 U.S.C. 485h(c) ). (d) Lease of power privilege contracts shall be at such rates as, in the Secretary’s judgment, will produce revenues at least sufficient to cover the appropriate share of the annual operation and maintenance cost of the project and such fixed charges, including interest, as the Secretary deems proper. Lease of power privilege contracts shall be for periods not to exceed 40 years. (e) No findings under section 3 shall be required for a lease under subsection (b). (f) All right, title, and interest to installed power facilities constructed by non-Federal entities pursuant to a lease of power privilege, and direct revenues derived therefrom, shall remain with the lessee unless otherwise required under subsection (g). (g) Notwithstanding section 8, lease revenues and fixed charges, if any, shall be covered into the Reclamation Fund to be credited to the project from which those revenues or charges were derived. (h) When carrying out this section, the Secretary shall first offer the lease of power privilege to an irrigation district or water users association operating the applicable transferred conduit, or to the irrigation district or water users association receiving water from the applicable reserved conduit. The Secretary shall determine a reasonable timeframe for the irrigation district or water users association to accept or reject a lease of power privilege offer. If the irrigation district or water users association elects not to accept a lease of power privilege offer under subsection (b), the Secretary shall offer the lease of power privilege to other parties using the processes applicable to such leases under section 9(c) of the Reclamation Project Act of 1939 ( 43 U.S.C. 485h(c) ). (i) The Bureau of Reclamation shall apply its categorical exclusion process under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) to small conduit hydropower development under this section, excluding siting of associated transmission facilities on Federal lands. (j) Nothing in this section shall obligate the Western Area Power Administration or the Bonneville Power Administration to purchase or market any of the power produced by the facilities covered under this section and none of the costs associated with production or delivery of such power shall be assigned to project purposes for inclusion in project rates. (k) Nothing in this section shall alter or impede the delivery and management of water by Bureau of Reclamation facilities, as water used for conduit hydropower generation shall be deemed incidental to use of water for the original project purposes. Lease of power privilege shall be made only when, in the judgment of the Secretary, the exercise of the lease will not be incompatible with the purposes of the project or division involved and shall not create any unmitigated financial or physical impacts to the project or division involved. The Secretary shall notify and consult with the irrigation district or legally organized water users association operating the transferred conduit in advance of offering the lease of power privilege and shall prescribe such terms and conditions necessary to adequately protect the planning, design, construction, operation, maintenance, and other interests of the United States and the project or division involved. (l) Nothing in this section shall alter or affect any agreements in effect on the date of the enactment of the Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act for the development of conduit hydropower projects or disposition of revenues. (m) In this section: (1) The term conduit means any Bureau of Reclamation tunnel, canal, pipeline, aqueduct, flume, ditch, or similar manmade water conveyance that is operated for the distribution of water for agricultural, municipal, or industrial consumption and not primarily for the generation of electricity. (2) The term irrigation district means any irrigation, water conservation or conservancy, multi-county water conservation or conservancy district, or any separate public entity composed of two or more such districts and jointly exercising powers of its member districts. (3) The term reserved conduit means any conduit that is included in project works the care, operation, and maintenance of which has been reserved by the Secretary, through the Commissioner of the Bureau of Reclamation. (4) The term transferred conduit means any conduit that is included in project works the care, operation, and maintenance of which has been transferred to a legally organized water users association or irrigation district. (5) The term small conduit hydropower means a facility capable of producing 5 megawatts or less of electric capacity. .

1. Short title This Act may be cited as the Bureau of Reclamation Hydropower Development Equity and Jobs Act . 2. Amendment Section 9 of the Act of August 11, 1939 (commonly known as the Water Conservation and Utilization Act ) ( 16 U.S.C. 590z–7 ) is amended— (1) by striking In connection with and inserting (a) In general .—In connection with ; and (2) by adding at the end the following: (b) Certain leases authorized (1) In general Notwithstanding subsection (a), the Secretary— (A) may enter into leases of power privileges for electric power generation in connection with any project constructed pursuant to this Act; and (B) shall have authority over any project constructed pursuant to this Act in addition to and alternative to any existing authority relating to a particular project. (2) Process In entering into a lease of power privileges under paragraph (1), the Secretary shall use the processes, terms, and conditions applicable to the lease under section 9(c) of the Reclamation Project Act of 1939 ( 43 U.S.C. 485h(c) ). (3) Findings not required No findings under section 3 shall be required for a lease under paragraph (1). (4) Rights retained by lessee Except as otherwise provided under paragraph (5), all right, title, and interest in and to installed power facilities constructed by non-Federal entities pursuant to a lease under paragraph (1), and any direct revenues derived from that lease, shall remain with the lessee. (5) Lease charges Notwithstanding section 8, lease charges shall be credited to the project from which the power is derived. (6) Effect Nothing in this section alters or affects any agreement in effect on the date of enactment of the Bureau of Reclamation Hydropower Development Equity and Jobs Act for the development of hydropower projects or disposition of revenues. .

July 31, 2014 Reported with an amendment