Pacific Northwest Electric Power Planning and Conservation Act
PL 96-501 (S.885), enacted 12/05/1980

PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2697 
Public Law 96-501 
96th Congress 
An Act 
Dec. 5, 1980 
[S. 885] 
Pacific 
Northwest 
Electric Power 
Planning and 
Conservation 
Act. 
16 u s e 839 note. 
To assist the electrical consumers of the Pacific Northwest through use of the 
Federal Columbia River Power System to achieve cost-effective energy conserva-
tion, to encourage the development of renewable energy resources, to establish a 
representative regional power planning process, to assure the region of an effi-
cient and adequate power supply, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SHORT TITLE AND TABLE OF CONTENTS 
SECTION 1. This Act, together with the following table of contents, 
may be cited £is the "Pacific Northwest Electric Power Planning and 
Conservation Act". 
TABLE OF CONTENTS 
Sec. 1. Short title and table of contents. 
Sec. 2. Purposes. 
Sec. 3. Definitions. 
Sec. 4. Regional planning and participation. 
Sec. 5. Sale of power. 
Sec. 6. Conservation and resource acquisition. 
Sec. 7. Rates. 
Sec. 8. Amendments to existing law. 
Sec. 9. Administrative provisions. 
Sec. 10. Savings provisions. 
Sec. 11. Effective date. 
Sec. 12. Severability. 
PURPOSES 
SEC 2. The purposes of this Act, together with the provisions of 16 use 839. 
other laws applicable to the Federal Columbia River Power System, 
are all intended to be construed in a consistent manner. Such 
purposes are also intended to be construed in a manner consistent 
with applicable environmental laws. Such purposes are: 
(1) to encourage, through the unique opportunity provided by 
the Federal Columbia River Power System— 
(A) conservation and efficiency in the use of electric power, 
and 
(B) the development of renewable resources within the 
Pacific Northwest; 
(2) to assure the Pacific Northwest of an adequate, efficient, 
economical, and reliable power supply; 
(3) to provide for the participation £ind consultation of the 
Pacific Northwest States, local governments, consumers, custom-
ers, users of the Columbia River System (including Federal and 
State fish and wildlife agencies and appropriate Indian tribes), 
and the public at large within the region in— 
(A) the development of regional plans and programs 
related to energy conservation, renewable resources, other 
resources, and protecting, mitigating, and enhancing fish 
and wildlife resources. 
94 STAT. 2698 
PUBLIC LAW 96-501—DEC. 5, 1980 
(B) facilitating the orderly planning of the region's power 
system, and 
(C) providing environmental quality; 
(4) to provide that the customers of the Bonneville Power 
Administration and their consumers continue to pay all costs 
necessary to produce, transmit, and conserve resources to meet 
the region's electric power requirements, including the amortiza-
tion on a current basis of the Federal investment in the Federal 
Columbia River Power System; 
(5) to insure, subject to the provisions of this Act— 
(A) that the authorities and responsibilities of State and 
local governments, electric utility systems, water manage-
ment agencies, and other non-Federal entities for the regula-
tion, planning, conservation, supply, distribution, and use of 
electric power shall be construed to be maintained, and 
(B) that Congress intends that this Act not be construed to 
limit or restrict the ability of customers to take actions in 
accordance with other applicable provisions of Federal or 
State law, including, but not limited to, actions to plan, 
develop, and operate resources and to achieve conservation, 
without regard to this Act; and 
(6) to protect, mitigate and enhance the fish and wildlife, 
including related spawning grounds and habitat, of the Columbia 
River and its tributaries, particularly anadromous fish which are 
of significant importance to the social and economic well-being of 
the Pacific Northwest and the Nation and which are dependent 
on suitable environmental conditions substantially obtainable 
from the management and operation of the Federal Columbia 
River Power System and other power generating facilities on the 
Columbia River and its tributaries. 
DEFINITIONS 
16 use 839a. 
SEC. 3. As used in this Act, the term— 
(1) "Acquire" and "acquisition" shall not be construed as 
authorizing the Administrator to construct, or have ownership 
of, under this Act or any other law, any electric generating 
facility. 
(2) 'Administrator" means the Administrator of the Bonne-
ville Power Administration. 
(3) "Conservation" means any reduction in electric power 
consumption as a result of increases in the efficiency of energy 
use, production, or distribution. 
(4)(A) "Cost-effective", when applied to any measure or 
resource referred to in this Act, means that such measure 
or resource must be forecast— 
(i) to be reliable and available within the time it is needed, 
and 
(ii) to meet or reduce the electric power demand, as 
determined by the Council or the Administrator, as appro-
priate, of the consumers of the customers at an estimated 
incremental system cost no greater than that of the least-
cost similarly reliable and available alternative measure or 
resource, or any combination thereof. 
(B) For purposes of this paragraph, the term "system cost" 
means an estimate of all direct costs of a measure or resource 
over its effective life, including, if applicable, the cost of distribu-
tion and transmission to the consumer and, among other factors. 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2699 
waste disposal costs, end-of-cycle costs, and fuel costs (including 
projected increases), and such quantifiable environmental costs 
and benefits as the Administrator determines, on the basis of a 
methodology developed by the Council as part of the plan, or in 
the absence of the plan by the Administrator, are directly 
attributable to such measure or resource. 
(C) In determining the amount of power that a conservation 
measure or other resource may be expected to save or to produce, 
the Council or the Administrator, as the case may be, shall take 
into account projected realization factors and plant factors, 
including appropriate historical experience with similar meas-
ures or resources. 
(D) For purposes of this paragraph, the "estimated incremental 
system cost" of any conservation measure or resource shall not 
be treated as greater than that of any nonconservation measure 
or resource unless the incremental system cost of such conserva-
tion measure or resource is in excess of 110 per centum of the 
incremental system cost of the nonconservation measure or 
resource. 
(5) "Consumer" means any end user of electric power. 
(6) "Council" means, unless otherwise specifically provided, 
the members appointed to the Pacific Northwest Electric Power 
and Conservation Planning Council established pursuant to 
section 4. 
(7) "Customer" means anyone who contracts for the purchase 
of power from the Administrator pursuant to this Act. 
(8) "Direct service industrial customer" means an industrial 
customer that contracts for the purchase of power from the 
Administrator for direct consumption. 
(9) "Electric power" means electric peaking capacity, or elec-
tric energy, or both. 
(10) "Federal base system resources" means— 
(A) the Federal Columbia River Power System hydroelec-
tric projects; 
(B) resources acquired by the Administrator under long-
term contracts in force on the effective date of this Act; and 
(C) resources acquired by the Administrator in an amount 
necessary to replace reductions in capability of the resources 
referred to in subparagraphs (A) and (B) of this paragraph. 
(11) "Indian tribe" means any Indian tribe or band which is 
located in whole or in part in the region and which has a 
governing body which is recognized by the Secretary of the 
Interior. 
(12) "Maior resource" means any resource that— 
(A) has a planned capability greater than fifty average 
megawatts, and 
(B) if acquired by the Administrator, is acquired for a 
period of more than 
five 
years. 
Such term does not include any resource acquired pursuant to 
section 11(b)(6) of the Federal Clolumbia River Transmission 
System Act. 
1
6 use 838i. 
(13) "New large single load" means any load associated with a 
new facility, an existing facility, or an expansion of an existing 
facility— 
(A) which is not contracted for, or committed to, as 
determined by the Administrator, by a public body, coopera-
tive, investor-owned utility, or Federal agency customer 
prior to September 1,1979, and 
94 STAT. 2700 
PUBLIC LAW 96-501—DEC. 5, 1980 
(B) which will result in an increase in power requirements 
of such customer of ten average megawatts or more in any 
consecutive twelve-month period. 
(14) "Pacific Northwest", region", or "regional" means— 
(A) the area consisting of the States of Oregon, Washing-
ton, and Idaho, the portion of the State of Montana west of 
the Continental Divide, and such portions of the States of 
Nevada, Utah, and Wyoming as are within the Columbia 
River drainage basin; and 
(B) any contiguous areas, not in excess of seventy-five air 
miles from the area referred to in subparagraph (A), which 
are a part of the service area of a rural electric cooperative 
customer served by the Administrator on the effective date 
of this Act which has a distribution system from which it 
serves both within and without such region. 
(15) "Plan" means the Regional Electric Power and Conserva-
tion plan (including any amendments thereto) adopted pursuant 
to this Act and such plan shall apply to actions of the Adminis-
trator as specified in this Act. 
(16) "Renewable resource" means a resource which utilizes 
solar, wind, hydro, geothermal, biomass, or similar sources of 
energy and which either is used for electric power generation or 
will reduce the electric power requirements of a consumer, 
including by direct application. 
(17) "Reserves" means the electric power needed to avert 
particular planning or operating shortages for the benefit of firm 
power customers of the Administrator and available to the 
Administrator (A) from resources or (B) from rights to interrupt, 
curtail, or otherwise withdraw, as provided by specific contract 
provisions, portions of the electric power supplied to customers. 
(18) "Residential use" or "residential load means all usual 
residential, apartment, seasonal dwelling and farm electrical 
loads or uses, but only the first four hundred horsepower during 
any monthly billing period of farm irrigation and pumping for 
any farm. 
(19) "Resource" means— 
(A) electric power, including the actual or planned electric 
power capability of generating facilities, or 
(B) actual or planned load reduction resulting from direct 
application of a renewable energy resource by a consumer, 
or from a conservation measure. 
(20) "Secretary" means the Secretary of Energy. 
REGIONAL PLANNING AND PARTICIPATION 
Pacific 
SEC. 4. (aXD The purposes of this section are to provide for the 
Northwest 
prompt establishment and effective operation of the Pacific North-
Hectric Power 
^gg^ Electric Power and (Ilonservation Planning Council, to further 
Conservation 
the purposes of this Act by the Council promptly preparing and 
Planning 
adopting (A) a regional conservation and electric power plan and (B) a 
Council, 
program to protect, mitigate, and enhance fish and wildlife, and to 
le^usc 839T* 
otherwise expeditiously and effectively carry out the Council's 
responsibilities and functions under this Act. 
(2) To achieve such purposes and facilitate cooperation among the 
States of Idaho, Montana, Oregon, and Washington, and with the 
Bonneville Power Administration, the consent of Congress is given 
for an agreement described in this paragraph and not in conflict with 
this Act, pursuant to which— 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2701 
(A) there shall be established a regional agency known as the 
"Pacific Northwest Electric Power and Conservation Planning 
Council" which (i) shall have its offices in the Pacific Northwest, 
(ii) shall carry out its functions and responsibilities in accordance 
with the provisions of this Act, (iii) shall continue in force and 
effect in accordance with the provisions of this Act, and (iv) 
except as otherwise provided in this Act, shall not be considered 
an agency or instrumentality of the United States for the 
purpose of any Federal law; and 
(B) two persons from each State may be appointed, subject to Members, 
the applicable laws of each such State, to undertake the func- appointment. 
tions and duties of members of the Council. 
The State may fill any vacancy occurring prior to the expiration of 
the term of any member. The appointment of six initial members, 
subject to applicable State law, by June 30,1981, by at least three of 
such States shall constitute an eigreement by the States establishing 
the Council and such agreement is hereby consented to by the 
Congress. Upon request of the Governors of two of the States, the 
Secretary shall extend the June 30, 1981, date for six addi-
tional months to provide more time for the States to make such 
appointments. 
(3) Except as otherwise provided by State law, each member Terms of office. 
appointed to the Council shall serve for a term of three years, except 
that, with respect to members initially appointed, each Governor 
shall designate one member to serve a term of two years and one 
member to serve a term of three years. The members of the Council 
shall select from among themselves a chairman. The members and 
officers and employees of the Council shall not be deemed to be 
officers or employees of the United States for any purpose. The 
Council shall appoint, fix compensation, and assign and delegate 
duties to such executive and additional personnel as the Council 
deems necessary to fulfill its functions under this Act, taking into 
account such information and analyses as are, or are likely to be, 
available from other sources pursuant to provisions of this Act. The 
compensation of the members shall be fixed by State law. The Compensation. 
compensation of the members and officers shall not exceed the rate 
prescribed for Federal officers and positions at step 1 of level GS-18 of 
the General Schedule. 
5 USC 5332 note. 
(4) For the purpose of providing a uniform system of laws, in 
addition to this Act, applicable to the Council relating to the making 
of contracts, conflicts-of-interest, financial disclosure, open meetings 
of the Council, advisory committees, disclosure of information, judi-
cial review of Council functions and actions under this Act, and 
related matters, the Federal laws applicable to such matters in the 
case of the Bonneville Power Administration shall apply to the 
Council to the extent appropriate, except that with respect to open 
meetings, the Federal laws applicable to open meetings in the case of 
the Federal Energy Regulatory Commission shall apply to the Coun-
cil to the extent appropriate. In applying the Federal laws applicable 
to financial disclosure under the preceding sentence, such laws shall 
be applied to members of the Council without regard to the duration 
of their service on the Council or the amount of compensation 
received for such service. No contract, obligation, or other action of 
the Council shall be construed as an obligation of the United States or 
an obligation secured by the full faith and credit of the United States. 
For the purpose of judicial review of any action of the Council or 
challenging any provision of this Act relating to functions and 
responsibilities of the Council, notwithstanding any other provision 
94 STAT. 2702 
PUBLIC LAW 96-501—DEC. 5, 1980 
Notice, 
publication in 
Federal 
Register. 
Compensation. 
5 u s e 5332 note. 
Executive 
director. 
of law, the courts of the United States shall have exclusive jurisdic-
tion of any such review. 
(b)(1) If the Council is not established and its members are not 
timely appointed in accordance with subsection (a) of this section, or 
if, at any time after such Council is established and its members are 
appointed in accordance with subsection (a)— 
(A) any provision of this Act relating to the establishment of 
the Council or to any substantial function or responsibility of the 
Council (including any function or responsibility under subsec-
tion (d) or (h) of this section or under section 6(c) of this Act) is 
held to be unlawful by a final determination of any Federal 
court, or 
(B) the plan or any program adopted by such Council under 
this section is held by a final determination of such a court to be 
ineffective by reason of subsection (a)(2)(B), 
the Secretary shall establish the Council pursuant to this subsection 
as a Federal agency. The Secretary shall promptly publish a notice 
thereof in the Federal Register and notify the Governors of each of 
the States referred to in subsection (a) of this section. 
(2) As soon as practicable, but not more than thirty days after the 
publication of the notice referred to in paragraph (1) of this subsec-
tion, and thereafter within forty-five days after a vacancy occurs, the 
Governors of the States of Washington, Oregon, Idaho, and Montana 
may each (under applicable State laws, if any) provide to the 
Secretary a list of nominations from such State for each of the State's 
positions to be selected for such Council. The Secretary may extend 
this time an additional thirty days. The list shall include at least two 
persons for each such position. The list shall include such informa-
tion about such nominees as the Secretary may request. The Secre-
tary shall appoint the Council members from each Governor's list of 
nominations for each State's positions, except that the Secretary may 
decline to appoint for any reason any of a Governor's nominees for a 
position and shall so notify the Governor. The Governor may thereaf-
ter make successive nominations within forty-five days of receipt of 
such notice until nominees acceptable to the Secretary are appointed 
for each position. In the event the Governor of any such State fails to 
make the required nominations for any State position on such 
Council within the time specified for. 
such nominations, the Secretary 
shall select from such State and appoint the Council member or 
members for such position. The members of the Council shall select 
from among themselves one member of the Council as Chairman. 
(3) The members of the Council established by this subsection who 
are not employed by the United States or a State shall receive 
compensation at a rate equal to the rate prescribed for offices and 
positions at level GS-18 of the General Schedule for each day such 
members are engaged in the actual performance of duties as mem-
bers of such Council, except that no such member may be paid more 
in any calendar year than an officer or employee at step 1 of level 
GS-18 is paid during such year. Members of such Council shall be 
considered officers or employees of the United States for purposes of 
title II of the Ethics in Government Act of 1978 (5 U.S.C. app.) and 
shall also be allowed travel expenses, including per diem in lieu of 
subsistence, in the same manner as persons employed intermittently 
in Government service are allowed expenses under section 5703 of 
title 5 of the United States Code. Such Council may appoint, and 
assign duties to, an executive director who shall serve at the pleasure 
of such Council and who shall be compensated at the rate established 
for GS-18 of the General Schedule. The executive director shall 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2703 
Funds, 
documents and 
equipment, 
transfer. 
Transfer of 
functions. 
exercise the powers and duties delegated to such director by such 
Council, including the power to appoint and fix compensation of 
additional personnel in accordance with applicable Federal law to 
carry out the functions and responsibilities of such Council. 
(4) When a Council is established under this subsection after a 
Council was established pursuant to subsection (a) of this section, the 
Secretary shall provide, to the greatest extent feasible, for the 
transfer to the Council established by this subsection of all funds, 
books, papers, documents, equipment, and other matters in order to 
facilitate the Council's capability to achieve the requirements of 
subsections (d) and (h) of this section. In order to carry out its 
functions and responsibilities under this Act expeditiously, the Coun-
cil shall take into consideration any actions of the Council under 
subsection (a) and may review, modify, or confirm such actions 
without further proceedings. 
(5)(A) At any time beginning one year after the plan referred to in Termination 
such subsection (d) and the program referred to in such subsection (h) 
of this section are both finally adopted in accordance with this Act, 
the Council established pursuant to this subsection shall be 
terminated by the Secretary 90 days after the Governors of three of 
the States referred to in this subsection jointly provide for any reason 
to the Secretary a written request for such termination. Except as 
provided in subparagraph (B), upon such termination all functions 
and responsibilities of the Council under this Act shall also 
terminate. 
(B) Upon such termination of the Council, the functions and 
responsibilities of the Council set forth in subsection (h) of this section 
shall be transferred to, and continue to be funded and carried out, 
jointly, by the Administrator, the Secretary of the Interior, and the 
Administrator of the National Marine Fisheries Service, in the same 
manner and to the same extent as required bv such subsection and in 
cooperation with the Federal and the region s State fish and wildlife 
agencies and Indian tribes referred to in subsection (h) of this section 
and the Secretary shall provide for the transfer to them of all records, 
books, documents, funds, and personnel of such Council that relate to 
subsection (h) matters. In order to carry out such functions and 
responsibilities expeditiously, the Administrator, the Secretary of the 
Interior, and the Administrator of the National Marine Fisheries 
Service shall take into consideration any actions of the Council under 
this subsection, and may review, modify, or confirm such actions 
without further proceedings. In the event the Council is terminated 
pursuant to this paragraph, whenever any action of the Administra-
tor requires any approval or other action by the Council, the Admin-
istrator may take such action without such approval or action, except 
that the Administrator may not implement any proposal to acquire a 
major generating resource or to grant billing credits involving a 
major generating resource until the expenditure of funds for that 
purpose is specifically authorized by Act of Congress enacted after 
such termination. 
(c)(1) The provisions of this subsection shall, except as specifically 
provided in this subsection, apply to the Council established pursuant 
to either subsection (a) or (b) of this section. 
(2) A majority of the members of the Council shall constitute a 
quorum. Except as otherwise provided specifically in this Act, all 
actions and decisions of the Council shall be by majority vote of the 
members present and voting. The plan or any part thereof and any 
amendment thereto shall not be approved unless such plan or 
amendment receives the votes of— 
Quorum. 
94 STAT. 2704 
PUBLIC LAW 96-501—DEC. 5, 1980 
Council meeting. 
Annual work 
program budget, 
availability. 
Personnel detail. 
Administrative 
services. 
Information to 
Congress. 
Compensation 
and other 
expenses, 
payment. 
16 u s e 838 note. 
16 u s e 838i. 
Document 
(A) a majority of the members appointed to the Council, 
including the vote of at least one member from each State with 
members on the Council; or 
(B) at least six members of the Council, 
(3) The Council shall meet at the call of the Chairman or upon the 
request of any three members of the Council. If any member of the 
Council disagrees with respect to any matter transmitted to any 
Federal or State official or any other person or wishes to express 
additional views concerning such matter, such member may submit a 
statement to accompany such matter setting forth the reasons for 
such disagreement or views. 
(4) The Council shall determine its organization and prescribe its 
practices and procedures for carrying out its functions and responsi-
bilities under this Act. The Council shall make available to the public 
a statement of its organization, practices, and procedures, and make 
available to the public its annual work program budget at the time 
the President submits his annual budget to Congress. 
(5) Upon request of the Council established pursuant to subsection 
(b) of this section, the head of any Federal agency is authorized to 
detail or assign to the Council, on a reimbursable basis, any of the 
personnel of such agency to assist the Council in the performance of 
its functions under this Act. 
(6) At the Council's request, the Administrator of the General 
Services Administration shall furnish the Council established pursu-
ant to subsection Q)) of this section with such offices, equipment, 
supplies, and services in the same manner and to the same extent as 
such Administrator is authorized to furnish to any other Federal 
agency or instrumentality such offices, supplies, equipment, and 
services. 
(7) Upon the request of the Congress or any committee thereof, the 
Council shall promptly provide to the Congress, or to such committee, 
any record, report, document, material, and other information which 
is in the possession of the Council. 
(8) To obtain such information and advice as the Council deter-
mines to be necessary or appropriate to carry out its functions and 
responsibilities pursuant to this Act, the Council shall, to the greatest 
extent practicable, solicit engineering, economic, social, environmen-
tal, and other technical studies from customers of the Administrator 
and from other bodies or organizations in the region with particular 
expertise. 
(9) The Administrator and other Federal agencies, to the extent 
authorized by other provisions of law, shall furnish the Council all 
information requested by the Council as necessary for performance of 
its functions, subject to such requirements of law concerning trade 
secrets and proprietary data as may be applicable. 
(lOXA) At the request of the Council, the Administrator shall pay 
from funds available to the Administrator the compensation and 
other expenses of the Council as are authorized by this Act, including 
the reimbursement of those States with members on the Council for 
services and personnel to assist in preparing a plan pursuant to 
subsection (d) and a program pursuant to subsection (h) of this 
section, as the Council determines are necessary or appropriate for 
the performance of its functions and responsibilities. Such payments 
shall be included by the Administrator in his annual budgets submit-
ted to Congress pursuant to the Federal Columbia River Transmis-
sion System Act and shall be subject to the requirements of that Act, 
including the audit requirements of section 11(d) of such Act. The 
records, reports, and other documents of the Council shall be availa-
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2705 
ble to the Comptroller General for review in connection with such 
audit or other review and examination by the Comptroller General 
pursuant to other provisions of law applicable to the Comptroller 
General. Funds provided by the Administrator for such payments 
shall not exceed annually an amount equal to 0.02 mill multiplied by 
the kilowatt hours of firm power forecast to be sold by the Adminis-
trator during the year to be funded. In order to assist the Council's 
initial organization, the Administrator after the enactment of this 
Act shall promptly prepare and propose an amended annual budget 
to expedite payment for Council activities. 
(B) Notwithstanding the limitation contained in the fourth sen-
tence of subparagraph (A) of this paragraph, upon an annual showing 
by the Council that such limitation will not permit the Council to 
carry out its functions and responsibilities under this Act the Admin-
istrator may raise such limit up to any amount not in excess of 0.10 
mill multiplied by the kilowatt hours of firm power forecast to be sold 
by the Administrator during the year to be funded. 
(11) The Council shall establish a voluntary scientific and statisti-
cal advisory committee to assist in the development, collection, and 
evaluation of such statistical, biological, economic, social, environ-
mental, and other scientific information as is relevant to the Coun-
cil's development and amendment of a regional conservation and 
electric power plan. 
(12) The Council may establish such other voluntary advisory 
committees as it determines are necessary or appropriate to assist it 
in carrying out its functions and responsibilities under this Act. 
(13) The Council shall ensure that the membership for any advisory 
committee established or formed pursuant to this section shall, to the 
extent feasible, include representatives of, and seek the advice of, the 
Federal, and the various regional. State, local, and Indian Tribal 
Governments, consumer groups, and customers. 
(d)(1) Within two years after the Council is established and the 
members are appointed pursuant to subsection (a) or (b) of this 
section, the Council shall prepare, adopt, and promptly transmit to 
the Administrator a regional conservation and electric power plan. 
The adopted plan, or any portion thereof, may be amended from time 
to time, and shall be reviewed by the Council not less frequently than 
once every five years. Prior to such adoption, public hearings shall be 
held in each Council member's State on the plan or substantial, 
nontechnical amendments to the plan proposed by the Council for 
adoption. A public hearing shall also be held in any other State of the 
region on the plan or amendments thereto, if the Council determines 
that the plan or amendments would likely have a substantial impact 
on that State in terms of major resources which may be developed in 
that State and which the Administrator may seek to acquire. Action 
of the Council under this subsection concerning such hearings shall 
be subject to section 553 of title 5, United States Code and such 
procedure as the Council shall adopt. 
(2) Following adoption of the plan and any amendment thereto, all 
actions of the Administrator pursuant to section 6 of this Act shall be 
consistent with the plan and any amendment thereto, except as 
otherwise specifically provided in this Act. 
(e)(1) The plan shall, as provided in this paragraph, give priority to 
resources which the Council determines to be cost-effective. Priority 
shall be given: first, to conservation; second, to renewable resources; 
third, to generating resources utilizing waste heat or generating 
resources of high fuel conversion efficiency; and fourth, to all other 
resources. 
Voluntary 
scientific and 
statistical 
advisory 
committee, 
establishment. 
Conservation 
and electric 
power plan, 
transmittal to 
Administrator. 
Hearings. 
94 STAT. 2706 
PUBLIC LAW 96-501—DEC. 5, 1980 
Studies. 
Model 
conservation 
standards. 
(2) The plan shall set forth a general scheme for implementing 
conservation measures and developing resources pursuant to section 
6 of this Act to reduce or meet the Administrator's obligations with 
due consideration by the Council for (A) environmental quality, (B) 
compatibility with the existing regional power system, (C) protection, 
mitigation, and enhancement of fish and wildlife and related spawn-
ing groun(k and habitat, including sufficient quantities and qualities 
of flows for successful migration, survival, and propagation of anadro-
mous fish, and (D) other criteria which may be set forth in the plan. 
(3) To accomplish the priorities established by this subsection, the 
plan shall include the following elements which shall be set forth in 
such detail as the Council determines to be appropriate: 
(A) an energy conservation program to be implemented under 
this Act, including, but not limited to, model conservation 
standards; 
(B) recommendation for research and development; 
(C) a methodology for determining quantifiable environmental 
costs and benefits under section 3(4); 
(D) a demand forecast of at legist twenty years (developed in 
consultation with the Administrator, the customers, the States, 
including State agencies with ratemaMng authority over electric 
utilities, and the public, in such manner as the Council deems 
appropriate) and a forecast of power resources estimated by the 
Council to be required to meet the Administrator's obligations 
and the portion of such obligations the Council determines can be 
met by resources in each of the priority categories referred to in 
paragraph (1) of this subsection which forecast (i) shall include 
regional reliability and reserve requirements, (ii) shall take into 
account the effect, if any, of the requirements of subsection (h) on 
the availability of resources to the Administrator, and (iii) shall 
include the approximate amounts of power the Council recom-
mends should be acquired by the Administrator on a long-term 
basis and may include, to the extent practicable, an estimate of 
the types of resources from which such power should be acquired; 
(E) an analysis of reserve and reliability requirements and 
cost-effective methods of providing reserves designed to insure 
adequate electric power at the lowest probable cost; 
(F) the program adopted pursuant to subsection (h); and 
(G) if the Council recommends surcharges pursuant to subsec-
tion (f) of this section, a methodology for calculating such 
surcharges. 
(4) The Council, taking into consideration the requirement that it 
devote its principal efforts to carrying out its responsibilities under 
subsections (d) and (h) of this section, shall undertake studies of 
conservation measures reasonably available to direct service indus-
trial customers and other major consumers of electric power within 
the region and make an analysis of the estimated reduction in energy 
use wmch would result from the implementation of such measures as 
rapidly as possible, consistent with sound business practices. The 
Council shall consult with such customers and consumers in the 
conduct of such studies. 
(fXD Model conservation standards to be included in the plan shall 
include, but not be limited to, standards applicable to (A) new and 
existing structures, (B) utility, customer, and governmental conserva-
tion programs, and (C) other consumer actions for achieving conser-
vation. Model conservation standards shall reflect geographic and 
climatic differences within the region and other appropriate consid-
erations, and shall be designed to produce all power savings that are 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2707 
cost-effective for the region and economically feasible for consumers, 
taking into account financial assistance made available to consumers 
under section 6(a) of this Act. These model conservation standards 
shall be adopted by the Council and included in the plan after 
consultation, in such manner as the Council deems appropriate, with 
the Administrator, States, and political subdivisions, customers of 
the Administrator, and the public. 
(2) The Council by a majority vote of the members of the Council is Surcharge. 
authorized to recommend to the Administrator a surcharge and the 
Administrator may thereafter impose such a surcharge, in accord-
ance with the methodology provided in the plan, on customers for 
those portions of their loads within the region that are within States 
or political subdivisions which have not, or on the Administrator's 
customers which have not, implemented conservation measures that 
achieve energy savings which the Administrator determines are 
comparable to those which would be obtained under such standards. 
Such surcharges shall be established to recover such additional costs 
as the Administrator determines will be incurred because such 
projected energy savings attributable to such conservation measures 
have not been achieved, but in no case may such surcharges be less 
than 10 per centum or more than 50 per centum of the Administra-
tor's applicable rates for such load or portion thereof. 
(g)(1) To insure widespread public involvement in the formulation 
of regional power policies, the Council and Administrator shall 
maintain comprehensive programs to— 
(A) inform the Pacific Northwest public of major regional 
power issues, 
(B) obtain public views concerning major regional power 
issues, and 
(C) secure advice and consultation from the Administrator's 
customers and others. 
(2) In carrjdng out the provisions of this section, the Council and 
the Administrator shall— 
(A) consult with the Administrator's customers; 
(B) include the comments of such customers in the record of the 
Council's proceedings; and 
(C) recognize and not abridge the authorities of State and local 
governments, electric utility systems, and other non-Federal 
entities responsible to the people of the Pacific Northwest for the 
planning, conservation, supply, distribution, and use of electric 
power and the operation of 
electric generating facilities. 
(3) In the preparation, adoption, and implementation of the plan, 
the Council and the Administrator shall encourage the cooperation, 
participation, and assistance of appropriate Federal agencies. State 
entities. State political subdivisions, and Indian tribes. The Council Contracts. 
and the Administrator are authorized to contract, in accordance with 
applicable law, with such agencies, entities, tribes, and subdivisions 
individually, in groups, or t&ough associations thereof to (A) investi-
gate possible measures to be included in the plan, (B) provide public 
involvement and information regarding a proposed plan or amend-
ment thereto, and (C) provide services which will assist in the 
implementation of the plan. In order to assist in the implementation Technical 
of the plan, particularly conservation, renewable resource, and fish assistance. 
and wildlife activities, the Administrator, when requested and sub-
ject to available funds, may provide technical assistance in establish-
ing conservation, renewable resource, and fish and wildlife objectives 
by individual States or subdivisions thereof or Indian tribes. Such 
objectives, if adopted by a State or subdivision thereof or Indian 
program. 
94 STAT. 2708 
PUBLIC LAW 96-501—DEC. 5, 1980 
tribes, may be submitted to the Council and the Administrator for 
review, and upon approval by the Council, may be incorporated as 
part of the plan. 
Fish and wildlife 
(h)(1)(A) The Council shall promptly develop and adopt, pursuant to 
^rnlra*,i?" 
^^^^ subsectlon, a program tu protect, mitigate, and enhance fish and 
nrncrram 
wildUfe, Includlng related spawning grounds and habitat, on the 
Columbia River and its tributaries. Because of the unique history, 
problems, and opportunities presented by the development and 
operation of hydroelectric facilities on the Columbia River and its 
tributaries, the program, to the greatest extent possible, shall be 
designed to deal with that river and its tributaries as a system. 
(B) This subsection shall be applicable solely to fish and wildlife, 
including related spawning grounds and habitat, located on the 
Columbia River and its tributaries. Nothing in this subsection shall 
alter, modify, or affect in any way the laws applicable to rivers or 
river systems, including electric power facilities related thereto, 
other than the Columbia River and its tributaries, or affect the rights 
and obligations of any agency, entity, or person under such laws. 
(2) The Council shall request, in writing, promptly after the Council 
is established under either section 4(a) or 4(b) of this Act and prior to 
the development or review of the plan, or any major revision thereto, 
from the Federal, and the region's State, fish and wildlife agencies 
and from the region's appropriate Indian tribes, recommendations 
for— 
(A) measures which can be expected to be implemented by the 
Administrator, using authorities under this Act and other laws, 
and other Federal agencies to protect, mitigate, and enhance fish 
and wildlife, including related spawning grounds and habitat, 
affected by the development and operation of any hydroelectric 
project on the Columbia River and its tributaries; 
(B) establishing objectives for the development and operation 
of such projects on the Columbia River and its tributaries in a 
manner designed to protect, mitigate, and enhance fish and 
wildlife; and 
(C) fish and wildlife management coordination and research 
and development (including funding) which, among other things, 
will assist protection, mitigation, and enhancement of anadro-
mous fish at, and between, the region's hydroelectric dams. 
(3) Such agencies and tribes shall have 90 days to respond to such 
request, unless the Council extends the time for making such recom-
mendations. The Federal, and the region's, water management agen-
cies, and the region's electric power producing agencies, customers, 
and public may submit recommendations of the type referred to in 
paragraph (2) of this subsection. All recommendations shall be 
accompanied by detailed information and data in support of the 
recommendations. 
(4)(A) The Council shall give notice of all recommendations and 
shall make the recommendations and supporting documents availa-
ble to the Administrator, to the Federal,.and the region's. State fish 
and wildlife agencies, to the appropriate Indian tribes, to Federal 
agencies responsible for managing, operating, or regulating hydro-
electric facilities located on the Columbia River or its tributaries, and 
to any customer or other electric utility which owns or operates any 
such facility. Notice shall also be given to the public. Copies of such 
recommendations and supporting documents shall be made available 
for review at the offices of the Council and shall be available for 
reproduction at reasonable cost. 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2709 
(B) The Council shall provide for public participation and comment Written and oral 
regarding the recommendations and supporting documents, includ- comments. 
ing an opportunity for written and oral comments, within such 
reasonable time as the Council deems appropriate. 
(5) The Council shall develop a program on the basis of such 
recommendations, supporting documents, and views and info:^mation 
obtained through public comment and participation, and consulta-
tion with the agencies, tribes, and customers referred to in subpara-
graph (A) of paragraph (4). The program shall consist of measures to 
protect, mitigate, and enhance fish and wildlife affected by the 
development, operation, and management of such facilities while 
assuring the Pacific Northwest an adequate, efficient, economical, 
and reliable power supply. Enhancement measures shall be included 
in the program to the extent such measures are designed to achieve 
improved protection and mitigation. 
(6) The Council shall include in the program measures which it 
determines, on the basis set forth in paragraph (5), will— 
(A) complement the existing and future activities of the Fed-
eral and the region's State fish and wildlife agencies and appro-
priate Indian tribes; 
(B) be based on, and supported by, the best avEiilable scientific 
knowledge; 
(C) utilize, where equally effective alternative means of achiev-
ing the same sound biological objective exist, the alternative with 
the minimum economic cost; 
(D) be consistent with the legal rights of appropriate Indian 
tribes in the region; and 
(E) in the case of anadromous fish— 
(i) provide for improved survival of such fish at hydroelec-
tric facilities located on the Columbia River system; and 
(ii) provide flows of sufficient quality and quantity 
between such facilities to improve production, migration, 
and survival of such fish as necessary to meet sound biologi-
cal objectives. 
(7) The Council shall determine whether each recommendation 
received is consistent with the purposes of this Act. In the event such 
recommendations are inconsistent with each other, the Council, in 
consultation 
with 
appropriate 
entities, 
shall 
resolve 
such 
inconsistency in the program giving due weight to the recommenda-
tions, expertise, and legal rights and responsibilities of the Federal 
and the region's State fish and wildlife agencies and appropriate 
Indian tribes. If the Council does not adopt any recommendation of 
the fish and wildlife agencies and Indian tribes as part of the program 
or any other recommendation, it shall explain in writing, as part of 
the program, the basis for its finding that the adoption of such 
recommendation would be— 
(A) inconsistent with paragraph (5) of this subsection; 
(B) inconsistent with paragraph (6) of this subsection; or 
(C) less effective than the adopted recommendations for the 
protection, mitigation, and enhancement of fish and wildlife. 
(8) The Council shall consider, in developing and adopting a 
program pursuant to this subsection, the following principles: 
(A) Enhancement measures may be used, in appropriate cir-
cumstances, as a means of achieving offsite protection and 
mitigation with respect to compensation for losses arising from 
the development and operation of the hydroelectric facilities of 
the Columbia River and its tributaries as a system. 
79-194 
O—81—pt. 3 
5 : QL3 
94 STAT. 2710 
PUBLIC LAW 96-501—DEC. 5, 1980 
(B) Consumers of electric power shall bear the cost of measures 
designed to deal with adverse impacts caused by the development 
and operation of electric power facilities and programs only. 
(C) To the extent the program provides for coordination of its 
measures with additional measures (including additional en-
hancement measures to deal with impacts caused by factors 
other than the development and operation of electric power 
facilities and programs), such additional measures are to be 
implemented in accordance with agreements among the appro-
priate parties providing for the administration and funding of 
such additional measures. 
(D) Monetary costs and electric power losses resulting from the 
implementation of the program shall be allocated by the Admin-
istrator consistent with individual project impacts and system-
wide objectives of this subsection. 
(9) The Council shall adopt such program or amendments thereto 
within one year after the time provided for receipt of the recommen-
dations. Such program shall also be included in the plan adopted by 
the Council under subsection (d). 
(10)(A) The Administrator shall use the Bonneville Power Adminis-
tration fund and the authorities available to the Administrator under 
this Act and other laws administered by the Administrator to protect, 
mitigate, and enhance fish and wildlife to the extent affected by the 
development and operation of any hydroelectric project of the Colum-
bia River and its tributaries in a manner consistent with the plan, if 
in existence, the program adopted by the Council under this subsec-
tion, and the purposes of this Act. Expenditures of the Administrator 
pursuant to this paragraph shall be in addition to, not in lieu of, other 
expenditures authorized or required from other entities under other 
agreements or provisions of law. 
(B) The Administrator may make expenditures from such fund 
which shall be included in the annual or supplementary budgets 
submitted to the Congress pursuant to the Federal Columbia River 
16 use 838 note. Transmission System Act. Any amounts included in such budget for 
the construction of capital facilities with an estimated life of greater 
than 15 years and an estimated cost of at least $1,000,000 shall be 
funded in the same manner and in accordance with the same 
procedures as major transmission facilities under the Federal Colum-
bia River Transmission System Act. 
Allocation of 
(C) The amounts expended by the Administrator for each activity 
funds. 
pursuant to this subsection shall be allocated as appropriate by the 
Administrator, in consultation with the Corps of Engineers and the 
Water and Power Resources Service, among the various hydroelectric 
projects of the Federal Columbia River Power System. Amounts so 
allocated shall be allocated to the various project purposes in accord-
ance with existing accounting procedures for the Federal Columbia 
River Power System. 
(11)(A) The Administrator and other Federal agencies responsible 
for managing, operating, or regulating Federal or non-Federal hydro-
electric facilities located on the Columbia River or its tributaries 
shall— 
(i) exercise such responsibilities consistent with the purposes of 
this Act and other applicable laws, to adequately protect, miti-
gate, and enhance fish and wildlife, including related spawning 
grounds and habitat, affected by such projects or facilities in a 
manner that provides equitable treatment for such fish and 
wildlife with the other purposes for which such system and 
facilities are managed and operated; 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2711 
Report to 
congressional 
committees. 
(ii) exercise such responsibilities, taking into account at each 
relevant stage of decisionmaking processes to the fullest extent 
practicable, the program adopted by the Council under this 
subsection. If, and to the extent that, such other Federal agencies 
as a result of such consideration impose upon any non-Federal 
electric power project measures to protect, mitigate, and enhance 
fish and wildlife which are not attributable to the development 
and operation of such project, then the resulting monetary costs 
and power losses (if any) shall be borne by the Administrator in 
accordance with this subsection. 
(B) The Administrator and such Federal Eigencies shall consult with 
the Secretary of the Interior, the Administrator of the National 
Marine Fisheries Service, and the State fish and wildlife agencies of 
the region, appropriate Indian tribes, and affected project operators 
in carrying out the provisions of this paragraph and shall, to the 
greatest extent practicable, coordinate their actions. 
(12XA) Beginning on October 1 of the first fiscal year after all 
members to the Council are appointed initially, the Council shall 
submit annually a detailed report to the Committee on Energy and 
Natural Resources of the Senate and to the Committees on Interstate 
and Foreign Commerce and on Interior and Insular Affairs of the 
House of Representatives. The report shall describe the actions taken 
and to be taken by the Council under this Act, including this 
subsection, the effectiveness of the fish and wildlife program, and 
potential revisions or modifications to the program to be included in 
the plein when adopted. At least ninety days prior to its submission of 
such report, the Council shall make available to such fish and wildlife 
agencies, and tribes, the Administrator and the customers a draft of 
such report. The Council shall establish procedures for timely com-
ments thereon. The Council shall include as an appendix to such 
report such comments or a summary thereof. 
(B) The Administrator shall keep such committees fully and cur-
rently informed of the actions taken and to be taken by the Adminis-
trator under this Act, including this subsection. 
(i) The Council may from time to time review the actions of the Review. 
Administrator pursuant to sections 4 and 6 of this Act to determine 
whether such actions are consistent with the plan and programs, the 
extent to which the plan and programs is being implemented, and to 
assist the Council in preparing amendments to the plan and 
programs. 
(jXD The Council may request the Administrator to take an action 
under section 6 to carry out the Administrator's responsibilities 
under the plan. 
(2) To the greatest extent practicable within ninety days after the 
Council's request, the Administrator shall respond to the Council in 
writing specifying— 
(A) the means by which the Administrator will undertake the 
action or any modification thereof requested by the Council, or 
(B) the reasons why such action would not be consistent with 
the plan, or with the Administrator's legal obligations under this 
Act, or other provisions of law, which the Administrator shall 
specifically identify. 
(3) If the Administrator determines not to undertake the requested 
action, the Council, within sixty days after notice of the Administra-
tor's determination, may request the Administrator to hold an 
informal hearing and make a final decision. 
(kXD Not later than October 1,1987, or six years after the Council 
is established under this Act, whichever is later, the Council shall 
Hearing. 
Conservation 
measures and 
resources, 
analysis. 
94 STAT. 2712 
PUBLIC LAW 96-501—DEC. 5, 1980 
complete a thorough analysis of conservation measures and conserva-
tion resources implemented pursuant to this Act during the five-year 
period beginning on the date the Council is established under this Act 
to determine if such measures or resources: 
(A) have resulted or are likely to result in costs to consumers in 
the region greater than the costs of additional generating 
resources or additional fuel which the Council determines would 
be necessary in the absence of such measures or resources; 
(B) have not been or are likely not to be generally equitable to 
all consumers in the region; or 
(C) have impaired or are likely to impair the ability of the 
Administrator to carry out his obligations under this Act and 
other laws, consistent with sound business practices. 
(2) The Administrator may determine that section 3(4XD) shall not 
apply to any proposed conservation measure or resource if the 
Administrator finds after receipt of such analysis from the Council 
that such measure or resource would have any result or effect 
described in subparagraph (A), (B) or (C) of paragraph (1). 
SALE OF POWER 
16 use 839c. 
SEC. 5. (a) All power sales under this Act shall be subject at all times 
to the preference and priority provisions of the Bonneville Project 
Act of 1937 (16 U.S.C. 832 and following) and, in particular, sections 4 
16 use 832c, 
and 5 thereof. Such sales shall be at rates established pursuant to 
832d. 
section 7. 
16 use 832f. 
(b)(1) Whenever requested, the Administrator shall offer to sell to 
each requesting public body and cooperative entitled to preference 
and prioritjr under the Bonneville Project Act of 1937 and to each 
requesting investor-owned utility electric power to meet the firm 
power load of such public body, cooperative or investor-owned utility 
in the Region to the extent that such firm power load exceeds— 
(A) the capability of such entity's firm peaking and energy 
resources used in the year prior to the enactment of this Act to 
serve its firm load in the region, and 
(B) such other resources as such entity determines, pursuant to 
contracts under this Act, will be used to serve its firm load in the 
region. 
In determining the resources which are used to serve a firm load, for 
purposes of subparagraphs (A) and (B), any resources used to serve a 
firm load under such subparagraphs shall be treated as continuing to 
be so used, unless such use is discontinued with the consent of the 
Administrator, or unless such use is discontinued because of obsoles-
cence, retirement, loss of resource, or loss of contract rights. 
(2) Contracts with investor-owned utilities shall provide that the 
Administrator may reduce his obligations under such contracts in 
accordance with section 5(a) of the Bonneville Project Act of 1937. 
(3) In addition to his authorities to sell electric power under 
paragraph (1), the Administrator is also authorized to sell electric 
power to Federal agencies in the region. 
(4) Sales under this subsection shall be made only if the public body, 
cooperative. Federal agency or investor-owned utility complies with 
the Administrator's standards for service in effect on the effective 
date of this Act or as subsequently revised. 
(5) The Administrator shall include in contracts executed in accord-
ance with this subsection provisions that enable the Administrator to 
restrict his contractual obligations to meet the loads referred to in 
this subsection in the future if the Administrator determines, after a 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2713 
reasonable period of experience under this Act, that the Administra-
tor cannot be assured on a planning basis of acquiring sufficient 
resources to meet such loads during a specified period of 
insufficiency. Any such contract with a public body, cooperative, or 
Federal agency shall specify a reasonable minimum period between a 
notice of restriction and the earliest date such restriction may be 
imposed. 
(6) Contracts executed in accordance with this subsection with 
public body, cooperative, and Federal agency customers shall— 
(A) provide that the restriction referred to in paragraph (5) 
shall not be applicable to any such customers until the operating 
year in which the total of such customers' firm loads to be served 
by the Administrator equals or exceeds the firm capability of the 
Federal base system resources; 
(B) not permit restrictions which would reduce the total 
contractual entitlement of such customers to an amount less 
than the firm capability of the Federal base system resources; 
and 
(C) contain a formula for determining annually, on a uniform 
basis, each such customer's contractual entitlement to firm 
power during such a period of restriction, which formula shall 
not consider customer resources other than those the customer 
has determined, as of the effective date of this Act, to be used to 
serve its own firm loads. 
The formula referred to in subparagraph (C) shall obligate the 
Administrator to provide on an annual basis only firm power needed 
to serve the portion of such customer's firm load in excess of the 
capability of such customer's own firm resources determined by such 
customer under paragraph (1) of this subsection to be used to serve its 
firm load. 
(cXl) Whenever a Pacific Northwest electric utility offers to sell Purchase and 
electric power to the Administrator at the average system cost of that exchange sale. 
utility's resources in each year, the Administrator shall acquire by 
purchase such power and shall offer, in exchange, to sell an equiva-
lent amount of electric power to such utility for resale to that utility's 
residential users within the region. 
(2) The purchase £ind exchange sale referred to in paragraph (1) of Limitation. 
this subsection with any electric utility shall be limited to an amount 
not in excess of 50 per centum of such utility's Regional residential 
load in the year beginning July 1, 1980, such 50 per centum limit 
increasing in equal annual increments to 100 per centum of such load 
in theyear beginning July 1,1985, and each year thereafter. 
(3) 'The cost benefits, as specified in contracts with the Administra- Cost benefits. 
tor, of any purchase and exchange sale referred to in paragraph (1) of 
this subsection which are attributable to any electric utility's residen-
tial load within a State shall be passed through directly to such 
utility's residential loads within such State, except that a State which 
lies partially within and partially without the region may require 
that such cost benefits be distributed among all of the utility's 
residential loads in that State. 
(4) An electric utility may terminate, upon reasonable terms and Termination. 
conditions agreed to by the Administrator and such utility prior to 
such termination, its purchase and sale under this subsection if the 
supplemental rate charge provided for in section 70b)(3) is applied and 
the cost of electric power sold to such utility under this subsection 
exceeds, after application of such rate charge, the average system cost 
of power sold by such utility to the Administrator under this 
subsection. 
94 STAT. 2714 
PUBLIC LAW 96-501—DEC. 5, 1980 
(5) Subject to the provisions of sections 4 and 6, in lieu of purchasing 
any amount of electric power offered by a utility under paragraph (1) 
of this subsection, the Administrator may acquire an equivalent 
amount of electric power from other sources to replace power sold to 
such utility as part of an exchange sale if the cost of such acquisition 
is less than the cost of purchasing the electric power offered by such 
utility. 
(6) Exchange sales to a utility pursuant to this subsection shall not 
be restricted below the amounts of electric power acquired by the 
Administrator from, or on behalf of, such utility pursuant to this 
subsection. 
"Average system 
(7) The "average system cost" for electric power sold to the 
cost." 
Administrator under this subsection shall be determined by the 
Administrator on the basis of a methodology developed for this 
purpose in consultation with the Council, the Administrator's cus-
tomers, and appropriate State regulatory bodies in the region. Such 
methodology shall be subject to review and approval by the Federal 
Energy Regulatory Commission. Such average system cost shall not 
include— 
(A) the cost of additional resources in an amount sufficient to 
serve any new large single load of the utility; 
(B) the cost of additional resources in an amount sufficient to 
meet any additional load outside the region occurring after the 
effective date of this Act; and 
(C) any costs of any generating facility which is terminated 
prior to initial commercial operation. 
(d)(1)(A) The Administrator is authorized to sell in accordance with 
this subsection electric power to existing direct service industrial 
customers. Such sales shall provide a portion of the Administrator's 
reserves for firm power loads within the region. 
"Industrial 
firm 
(B) After the effective date of this Act, the Administrator shall offer 
P^^^'' 
in accordance with subsection (g) of this section to each existing direct 
service industrial customer an initial long term contract that pro-
vides such customer an amount of power equivalent to that to which 
such customer is entitled under its contract dated January or April 
1975 providing for the sale of "industrial firm power." 
(2) The Administrator shall not sell electric power, including 
reserves, directly to new direct service industrial customers. 
(3) The Administrator shall not sell amounts of electric power, 
including reserves, to existing direct service industrial customers in 
excess of the amount permitted under paragraph (1) unless the 
Administrator determines, after a plan has been adopted pursuant to 
section 4 of this Act, that such proposed sale is consistent with the 
plan and that— 
(A) additional power system reserves are required for the 
region's firm loads, 
(B) the proposed sale would provide a cost-effective method of 
supplying such reserves, 
(C) such loads or loads of similar character cannot provide 
equivalent operating or planning benefits to the region if served 
by an electric utility under contractual arrangements providing 
reserves, and 
(D) the Administrator has or can acquire sufficient electric 
power to serve such loads, and 
unless the Council has determined such sale is consistent with the 
plan. After such determination by the Administrator and by the 
Council, the Administrator is authorized to offer to existing direct 
service industrial customers power in such amounts in excess of the 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2715 
amount permitted under paragraph (1) of this subsection as the 
Administrator determines to be necessary to provide additional 
power system reserves to meet the region's firm loads. 
(4)(A) As used in this section, the term "existing direct service Definitions. 
industrial customer" means any direct service industrial customer of 
the Administrator which has a contract for the purchase of electric 
power from the Administrator on the effective date of this Act. 
(B) The term "new direct service industrial customer" means any 
industrial entity other than an existing direct service industrial 
customer. 
(C)(i) Where a new contract is offered in accordance with subsection N
e
w contract, 
(g) to any existing direct service industrial customer which has not 
received electric power prior to the effective date of this Act from the 
Administrator pursuant to a contract with the Administrator exist-
ing on the date of the enactment of this Act, electric power delivered 
under such new contract shall be conditioned on the Administrator 
reasonably acquiring, in accordance with this Act and within such 
estimated period of time (as specified in the contract) as he deems 
reasonable, sufficient resources to meet, on a planning basis, the load 
requirement of such customer. Such contract shall also provide that 
the obligation of the Administrator to acquire such resources to meet 
such load requirement shall, except as provided in clause (ii) of this 
subparagraph, apply only to such customer and shall not be sold or 
exchanged by such customer to any other person. 
(ii) Rights under a contract described in clause (i) of this subpara- Contract rights, 
graph may be transferred by an existing direct service industrial transfer. 
customer referred to in clause (i) to a successor in interest in 
connection with a reorganization or other transfer of all major assets 
of such customer. Following such a transfer, such successor in 
interest (or any other subsequent successor in interest) may also 
transfer rights under such a contract only in connection with a 
reorganization or other transfer of all assets of such successor in 
interest. 
(iii) The limitations of clause (i) of this subparagraph shall not 
apply to any customer referred to in clause (i) whenever the Adminis-
trator determines that such customer is receiving electric power 
pursuant to a contract referred to in such clause (ii). 
(e)(1) The contractual entitlement to firm power of any customer 
from whom, or on whose behalf, the Administrator has acquired 
electric power pursuant to section 6 may not be restricted below the 
amount of electric power so acquired from, or on behalf of, such 
customer. If in any year such customer's requirements are less than 
such entitlement, any excess of such entitlement shall be first made 
available to increase the entitlement of other customers of the same 
class before being available for the entitlement of other customers. 
For purposes of this paragraph^ the following entities shall each 
constitute a class: 
(A) public bodies eind cooperatives; 
(B) Federal agencies; 
(C) direct service industrial; and 
(D) investor owned utilities. 
(2) Any contractual entitlement to firm power which is based on 
electric power acquired from, or on behalf of, a customer pursuant to 
section 6 shall be in addition to any other contractual entitlement to 
firm power not subject to restriction that such customer may have 
under this section. For the purposes of this subsection, references to 
amounts of power acquired by the Administrator pursuant to section 
6 shall be deemed to mean the amounts specified in the resource 
94 STAT. 2716 
PUBLIC LAW 96-501—DEC. 5, 1980 
acquisition contracts exclusive of any amounts recognized in such 
contracts as replacement for Federal base system resources. 
(3) The Administrator shall, consistent with the provisions of this 
Act, insure that any restrictions upon any particular customer class 
made pursuant to this subsection and subsection (b) of this section are 
distributed equitably throughout the region. 
(f) The Administrator is authorized to sell, or otherwise dispose of, 
electric power, including power acquired pursuant to this and other 
Acts, that is surplus to his obligations incurred pursuant to subsec-
tions Ot)), (c), and (d) of this section in accordance with this and other 
Acts applicable to the Administrator, including the Bonneville Proj-
ect Act of 1937 (16 U.S.C. 832 and following), the Federal Columbia 
River Transmission System Act (16 U.S.C. 838 and following), and the 
Act of August 31,1964 (16 U.S.C. 837-837h). 
Long-term 
(g)(1) As soon as practicable within nine months after the effective 
contracts. 
date of this Act, the Administrator shall commence necessary negoti-
ations for, and offer, initial long-term contracts (within the limita-
tions of the third sentence of section 5(a) of the Bonneville Project 
16 use 832d. 
Act) simultaneously to— 
(A) existing public body and cooperative customers and inves-
tor-owned utility customers under subsection (b) of this section; 
(B) Federal agency customers under subsection (b) of this 
section; 
(C) electric utility customers under subsection (c) of this sec-
tion; and 
(D) direct service industrial customers under subsection (d)(1). 
(2) Each customer offered a contract pursuant to this subsection 
shall have one year from the date of such offer to accept such 
contract. Such contract shall be effective as provided in this 
subsection. 
(3) An initial contract with a public body, cooperative or investor-
owned electric utility customer or a Federal agency customer pursu-
ant to subsection Ot)) of this section shall be effective on the date 
executed by such customer, unless another effective date is otherwise 
agreed to by the Administrator and the customer, 
(4) An initial contract with an electric utility customer pursuant to 
subsection (c) of this section shall be effective on the date executed by 
such customer, but no earlier than the first day of the tenth month 
after the effective date of this Act. 
(5) An initial contract with a direct service industrial customer 
pursuant to subsection (dXD, shall be effective on the date agreed 
upon by the Administrator and such customer, but no later than the 
first day of the tenth month after the effective date of this Act. When 
such contract is executed, it may for rate purposes be given retroac-
tive effect to such first day. 
(6) Initial contracts offered public body, cooperative and Federal 
agency customers in accordance with this subsection shall provide 
that during a period of insufficiency declared in accordance with 
subsection (b) of this section each customer's contractual entitlement 
shall, to the extent of its requirements on the Administrator, be no 
less than the amount of firm power received from the Administrator 
in the year immediately preceding the period of insufficiency. 
(7) The Administrator shall be deemed to have sufficient resources 
for the purpose of entering into the initial contracts specified in 
paragraph (1) (A) through (D). 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2717 
CONSERVATION AND RESOURCE ACQUISITION 
SEC. 6. (aXD The Administrator shall acquire such resources i6USC839d. 
through conservation, implement all such conservation me£isures, 
and acquire such renewable resources which are installed by a 
residential or small commercial consumer to reduce load, as the 
Administrator determines are consistent with the plan, or if no plan 
is in effect with the criteria of section 4(eXl) and the considerations of 
section 4(eX2) and, in the case of major resources, in accordance with 
subsection (c) of this section. Such conservation measures and such 
resources may include, but are not limited to— 
(A) loans and grants to consumers for insulation or weatheriza-
tion, increased system efficiency, and waste energy recovery by 
direct application, 
(B) technical and financial assistance to, and other cooperation 
with, the Administrator's customers and governmental authori-
ties to encourage maximum cost-effective voluntary conservation 
and the attainment of any cost-effective conservation objectives 
adopted by individual States or subdivisions thereof, 
(C) ai(hng the Administrator's customers and governmental 
authorities in implementing model conservation standards 
adopted pursuant to section 4(f), and 
(D) conducting demonstration projects to determine the cost 
effectiveness of conservation measures and direct application of 
renewable energy resources. 
(2) In addition to acquiring electric power pursuant to section 5(c), 
or on a short-term basis pursuant to section ll(bX6Xi) of the Federal 
Columbia River Transmission System Act, the Administrator shall 16 use 838i. 
acquire, in accordance with this section, sufficient resources— 
(A) to meet his contractual obligations that remain after 
taking into account plsmned savings from measures provided for 
in paragraph (1) of this subsection, and 
(B) to assist in meeting the requirements of section 4(h) of this 
Act. 
The Administrator shaJl acquire such resources without considering 
restrictions which may apply pursuant to section 5(b) of this Act. 
(bXl) Except as specifically provided in this section, acquisition of 
resources under this Act shall be consistent with the plan, as 
determined by the Administrator. 
(2) The Administrator may acquire resources (other than major 
resources) under this Act which are not consistent with the plan, but 
which are determined by the Administrator to be consistent with the 
criteria of section 4(eXl) and the considerations of section 4(eX2) of 
this Act. 
(3) If no plan is in effect, the Administrator may acquire resources 
under this Act which are determined by the Administrator to be 
consistent with the criteria of section 4(eXl) and the considerations of 
section 4(eX2) of this Act. 
(4) The Administrator shall acquire any non-Federal resources to 
replace Federal base system resources only in accordance with the 
provisions of this section. The Administrator shall include in the 
contracts for the acquisition of £my such non-Federal replacement 
resources provisions which will enable him to ensure that such non-
Federal replacement resources are developed and operated in a 
manner consistent with the considerations specified in section 4(eX2) 
of this Act. 
(5) Notwithstanding any acquisition of resources pursuant to this 
section, the Administrator shall not reduce his efforts to achieve 
94 STAT. 2718 
PUBLIC LAW 96-501—DEC. 5, 1980 
Publication in 
Federal 
Register. 
Public hearings. 
conservation and to acquire renewable resources installed by a 
residential or small commercial consumer to reduce load, pursuant to 
subsection (a)(1) of 
this section. 
(c)(1) For each proposal under subsection (a), (b), (f), (h), or (1) of this 
section to acquire a major resource, to implement a conservation 
measure which will conserve an amount of electric power equivalent 
to that of a major resource, to pay or reimburse investigation and 
preconstruction expenses of the sponsors of a major resource, or to 
grant billing credits or services involving a major resource, the 
Administrator shall— 
(A) publish notice of the proposed action in the Federal 
Register and provide a copy of such notice to the Council, the 
Governor of each State in which facilities would be constructed 
or a conservation measure implemented, and the Administra-
tor's customers; 
(B) not less than sixty days following publication of 
such notice, 
conduct one or more public hearings, presided over by a hearing 
officer, at which testimony and evidence shall be received, with 
opportunity for such rebuttal and cross-examination as the 
hearing officer deems appropriate in the development of an 
adequate hearing record; 
(C) develop a record to assist in evaluating the proposal which 
shall include the transcript of the public hearings, together with 
exhibits, and such other materials and information as may have 
been submitted to, or developed by, the Administrator; and 
(D) following completion of such hearings, promptly provide to 
the Council and make public a written decision that includes, in 
addition to a determination respecting the requirements of 
subsection (a), (b), (f), (h), (1), or (m) of this section, as 
appropriate— 
(i) if a plan is in effect, a finding that the proposal is either 
consistent or inconsistent with the plan or, notwithstanding 
its inconsistency with the plan, a finding) that it is needed to 
meet the Administrator's obligations linder this Act, or 
(ii) if no plan is in effect, a finding that the proposal is 
either consistent or inconsistent with the criteria of section 
4(eXl) and the considerations of section 4(eX2) of this Act or 
notwithstanding its inconsistency, a finding that it is needed 
to meet the Administrator's obligations under this Act. 
In the case of subsection (f) of this section, such decision shall be 
treated as satisfjring the applicable requirements of this subsec-
tion and of subsection (f) of this section, if it includes a finding of 
probable consistencv, based upon the Administrator's evaluation 
of information available at the time of completion of the hearing 
under this paragraph. Such decision shall include the reasons for 
such finding. 
(2) Within sixty days of the receipt of the Administrator's decision 
pursuant to paragraph (1)(D) of this subsection, the Council may 
determine by a m^ority vote of all members of the Council, and 
notify the Aoministrator— 
(A) that the proposal is either consistent or inconsistent with 
theplan, or 
(B) if no plan is in effect, that the proposal is either consistent 
or inconsistent with the criteria of section 4(eXl) and the consid-
erations of 
section 4(eX2). 
(3) The Administrator may not implement any proposal referred to 
in paragraph (1) that is determined pursuant to paragraph (1) or (2) 
by either the Administrator or the Council to be inconsistent with the 
Publication in 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2719 
plan or, if no plan is in effect, with the criteria of section 4(e)(1) and 
the considerations of 
section 4(e)(2)— 
(A) unless the Administrator finds that, notwithstanding such 
inconsistency, such resource is needed to meet the Administra-
tor's obligations under this Act, and 
(B) until the expenditure of funds for that purpose has been 
specifically authorized by Act of Congress enacted after the date 
of the enactment of this Act. 
(4) Before the Administrator implements any proposal referred to 
in paragraph (1) of 
this subsection, the Administrator shall— 
(A) submit to the appropriate committees of the Congress the 
administrative record of the decision (including any determina-
tion by the Council under paragraph (2)) and a statement of the 
procedures followed or to be followed for compliance with the 
National Environmental Policy Act of 1969, 
42 use 4321 
(B) publish notice of the decision in the Federal Register, and ^°^• 
(C) note the proposal in the Administrator's annual or supple- FedeS^ 
mentary budget submittal made pursuant to the Federal Colum- Register. 
bia River Transmission System Act (16 U.S.C. 838 and following). 
The Administrator may not implement any such proposal until 
ninety days after the date on which such proposal has been noted in 
such budget or after the date on which such decision has been 
published in the Federal Register, whichever is later. 
(5) The authority of the Council to make a determination under 
paragraph (2XB) if no plan is in effect shall expire on the date two 
years after the establishment of the Council. 
(d) The Administrator is authorized to acquire a resource, other 
than a major resource, whether or not such resource meets the 
criteria of section 4(eXl) and the considerations of section 4(e)(2) but 
which he determines is an experimental, developmental, demonstra-
tion, or pilot project of a type with a potential for providing cost-
effective service to the region. The Administrator shall make no 
obligation for the acquisition of such resource until it is included in 
the annual budgets submitted to the Congress pursuant to the 
Federal Columbia River Transmission System Act. 
(e)(1) In order to effectuate the priority given to conservation 
measures and renewable resources under this Act, the Administrator 
shall, to the maximum extent practicable, make use of his authorities 
under this Act to acquire conservation measures and renewable 
resources, to implement conservation measures, and to provide 
credits and technical and financial assistance for the development 
and implementation of such resources and measures (including the 
funding of, and the securing of debt for, expenses incurred during the 
investigation and preconstruction of resources, as authorized in 
subsection (f) of 
this section). 
(2) To the extent conservation measures or acquisition of resources 
require direct arrangements with consumers, the Administrator 
shall make maximum practicable use of customers and local entities 
capable of administering and carrying out such arrangements. 
(f)(1) For resources which the Administrator determines may be 
eligible for acquisition under this section and satisfy the criteria of 
section 4(e)(1) and the considerations of section 4(e)(2) of this Act or, if 
a plan is in effect, to be consistent with the plan, the Administrator is 
authorized to enter into agreements with sponsors o
f
— 
(A) a renewable resource, other than a major resource, to fund 
or secure debt incurred in the investigation and initial develop-
ment of such resource, or 
94 STAT. 2720 
PUBLIC LAW 96-501—DEC. 5, 1980 
(B) any other resource to provide for the reimbursement of the 
sponsor's investigation and preconstruction expenses concerning 
such resource (which expenses shall not include procurement of 
capital equipment or construction material for such resource). 
In the case of any resource referred to in subparagraph (B) of this 
paragraph, such reimbursement is authorized only if— 
(i) such resource is subsequently denied State siting approval 
or other necessary Federal or State permits, or approvals, 
(ii) such investigation subsequently demonstrates, as deter-
mined by the Administrator, that such resource does not meet 
the criteria of section 4(e)(1) and the considerations of section 
4(e)(2) of this Act or is not acceptable because of environmental 
impacts, or 
(iii) after such investigation the Administrator determines not 
to acquire the resource and the sponsor determines not to 
construct the resource. 
(2) The Administrator may exercise the authority of this subsection 
only after he determines that the failure to do so would result 
in inequitable hardship to the consumers of 
such sponsors. The Admin-
istrator may provide reimbursement under this subsection only for 
expenses incurred after the date of the enactment of this Act. 
(3) Any agreement under paragraph (1) of this subsection shall 
provide the Administrator an option to acquire any such resource, 
including a renewable resource, and shall include such other provi-
sions, as the Administrator deems appropriate, for the Administra-
tor's recovery from such sponsors or any assignee of the sponsors, if 
such sponsor or assignee continues development of the resource, of 
any advances made by the Administrator pursuant to such agree-
ment. 
(4) The Administrator shall not reimburse any expense incurred by 
the sponsors (except necessary expenses involved in the liquidation of 
the resource) after the date of a final denial of application for State 
siting approval or after the date the Administrator determines that 
the resource to be inconsistent with the plan or the criteria of section 
4(e)(1) and the considerations of section 4(eX2). 
(g) At the request of the appropriate State, any environmental 
impact statement which may be required with respect to a resource, 
to the extent determined possible by the Administrator in accordance 
with applicable law and regulations, may be prepared jointly and in 
coordination with any required environmental impact statement of 
the State or any other statement which serves the purpose of an 
environmental impact statement which is required by State law. 
Billing credits. 
(h)(1) If a customer so requests, the Administrator shall grant 
billing credits to such customer, and provide services to such 
customer at rates established for such services, for— 
(A) conservation activities independently undertaken or con-
tinued after the effective date of this Act by such customer or 
political subdivision served by such customer which reduce the 
obligation of the Administrator that would otherwise have 
existed to acquire other resources under this Act, or 
(B) resources constructed, completed, or acquired after the 
effective date of this Act by a customer, an entity acting on 
behalf of such customer, or political subdivision served by the 
customer which reduce the obligation of the Administrator to 
acquire resources under this Act. Such resources shall be renew-
able resources or multipurpose projects or other resources which 
are not inconsistent with the plan or, in the absence of a plan, not 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2721 
inconsistent with the criteria of section 4(eXl) and the consider-
ations of section 4(eX2) of this Act. 
(2) The energy and capacity on which a credit under this subsection 
to a customer is based shall be the amount by which a conservation 
activity or resource actually changes the customer's net requirement 
for supply of electric power or reserves from the Administrator. 
(3) The amount of credits for conservation under this subsection 
shall be set to credit the customer implementing or continuing the 
conservation activity for which the credit is granted for the savings 
resulting from such activity. The rate impact on the Administrator's 
other customers of granting the credit shall be equal to the rate 
impact such customers would have experienced had the Administra-
tor been obligated to acquire resources in an amount equal to that 
actually saved by the activity for which the credit is granted. 
(4) For resources other than conservation, the customer shall be 
credited for net costs actually incurred by such customer, an entity 
acting on behalf of such customer, or political subdivision served by 
such customer, in acquiring, constructing, or operating the resource 
for which the credit is granted. The rate impact to the Administra-
tor's other customers of granting the credit shall be no greater than 
the rate impact such customers would have experienced had the 
Administrator been obligated to acquire resources in an amount 
equal to that actually produced by the resource for which the credit is 
granted. 
(5) Retail rate structures which are voluntarily implemented by the 
Administrator's customers and which induce conservation or instal-
lation of consumer-owned renewable resources shall be considered, 
for purposes of this subsection, to be (A) conservation activities 
independently undertaken or carried on by such customers, or (B) 
customer-owned renewable resources, and shall qualify for billing 
credits upon the same showing as that required for other conserva-
tion or renewable resource activities. 
(6) Prior to granting any credit or providing services pursuant to 
this subsection, the Administrator shall— 
(A) comply with the notice provisions of subsection (c) of this 
section, and include in such notice the methodology the Adminis-
trator proposes to use in determining the amount of any such 
credit; 
(B) include the cost of such credit in the Administrator's 
annual or amended budget submittal to the Congress made 
pursuant to the Federal Columbia River Transmission System 
Act(16U.S.C.838(j)); 
(C) require that resources in excess of customer's reasonable 
load growth shall have been offered to others for ownership, 
participation or other sponsorship pursuant to subsection (m) of 
this section, except in the case of conservation, multi-purpose 
projects uniquely suitable for development by the customer, or 
renewable resources; and 
(D) require that the operators of any generating resource for 
which a billing credit is to be granted agree to operate such 
resource in a mgmner compatible with the planning and oper-
ation of the region's power system. 
(i) Contracts for the acquisition of resources and for billing credits 
for major resources, including conservation activities, entered into 
pursuant to this section shall contain such terms and conditions, 
applicable after the contract is entered into, as will— 
(1) insure timely construction, scheduling, completion, and 
operation of resources. 
94 STAT. 2722 
PUBLIC LAW 96-501—DEC. 5, 1980 
(2) insure that the costs of any acquisition are as low as 
reasonably possible, consistent (A) with sound engineering, oper-
ating, and safety practices, and (B) the protection, mitigation, 
and enhancement of fish and wildlife, including related spawn-
ing grounds and habitat affected by the development of such 
resources, and 
(3) insure that the Administrator exercises effective oversight, 
inspection, audit, and review of all aspects of such construction 
and operation. 
Such contracts shall contain provisions assuring that the Administra-
tor has the authority to approve all costs of, and proposals for, major 
modifications in construction, scheduling or operations and to assure 
that the Administrator is provided with such current information as 
he deems necessary to evaluate such construction and operation. 
(j)(l) All contractual and other obligations required to be carried 
out by the Administrator pursuant to this Act shall be secured solely 
by the Administrator's revenues received from the sale of electric 
power and other services. Such obligations are not, nor shall they be 
construed to be, general obligations of the United States, nor are such 
obligations intended to be or are they secured by the full faith and 
credit of the United States. 
(2) All contracts entered into by the Administrator for the acquisi-
tion of resources pursuant to this Act shall require that, in the sale of 
any obligations, all offerings and promotional material for the sale of 
such obligations shall include the language contained in the second 
sentence of paragraph (1) of this subsection. The Administrator shall 
monitor and enforce such requirement. 
(k) In the exercise of his authorities pursuant to this section, the 
Administrator shall, consistent with the provisions of this Act and 
the Administrator's obligations to particular customer classes, insure 
that benefits under this section, including financial and technical 
assistance, conduct of conservation demonstrations, and experimen-
tal projects, services, and billing credits, are distributed equitably 
throughout the region. 
Investigations. 
(1X1) The Administrator is authorized and directed to investigate 
opportunities for adding to the region's resources or reducing the 
region's power costs through the accelerated or cooperative develop-
ment of resources located outside the States of Idaho, Montana, 
Oregon, and Washington if such resources are renewable resources, 
and are now or in the future planned or considered for eventual 
development by nonregional agencies or authorities that will or 
would own, sponsor, or otherwise develop them. The Administrator 
shall keep the Council fully and currently informed of such investiga-
tions, and seek the Council's advice as to the desirability of pursuing 
such investigations. 
(2) The Administrator is authorized and directed to investigate 
periodically opportunities for mutually beneficial interregional 
exchanges of electric power that reduce the need for additional 
generation or generating capacity in the Pacific Northwest and the 
regions with which such exchanges may occur. The Council shall take 
into consideration in formulating a plan such investigations. 
(3) After the Administrator submits a report to Congress pursuant 
to paragraph (5) of this subsection, the Administrator is authorized to 
acquire resources consistent with such investigations and consistent 
with the plan or, if no plan is in effect, with the priorities of section 
4(eXl) and the considerations of section 4(eX2). Such acquisitions shall 
be in accordance with the provisions of this subsection. 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2723 
(4) The Administrator shall conduct the investigations and the 
acquisitions, if any, authorized under this subsection with the assist-
ance of other Federal agencies as may be appropriate. 
(5) No later than July 1,1981, the Administrator shall submit to the Report to 
Congress a report of the results of the investigations undertaken Congress. 
pursuant to this subsection, together with the prospects for obtaining 
additional resources under the authority granted by this subsection 
and for reductions in generation or generating capacity through 
exchanges. 
(m) Except as to resources under construction on the effective date 
of this Act, the Administrator shall determine in each case of a major 
resource acquisition that a reasonable share of the particular 
resource, or a reasonable equivalent, has been offered to each Pacific 
Northwest electric utility for ownership, participation, or other 
sponsorship, but not in excess of the amounts needed to meet such 
utility's Regional load. 
RATES 
SEC. 7. (a)(1) The Administrator shall establish, and periodically 16 use 839e. 
review and revise, rates for the sale and disposition of electric energy 
and capacity and for the transmission of non-Federal power. Such 
rates shall be established and, as appropriate, revised to recover, in 
accordance with sound business principles, the costs associated with 
the acquisition, conservation, and transmission of electric power, 
including the amortization of the Federal investment in the Federal 
Columbia River Power System (including irrigation costs required to 
be repaid out of power revenues) over a reasonable period of years 
and the other costs and expenses incurred by the Administrator 
pursuant to this Act and other provisions of law. Such rates shall be 
established in accordance with sections 9 and 10 of the Federal 
Columbia River Transmission System Act (16 U.S.C. 838), section 5 of 16 use 838g, 
the Flood Control Act of 1944, and the provisions of this Act. 
^^^,^Q„ „„_ 
(2) Rates established under this section shall become effective only, ^" ^°^ ^^^^• 
except in the case of interim rules as provided in subsection (i)(6), 
upon confirmation and approval by the Federal Energy Regulatory 
Commission upon a finding by the Commission, that such rates— 
(A) are sufficient to assure repayment of the Federal invest-
ment in the Federal Columbia River Power System over a 
reasonable number of years after first meeting the Administra-
tor's other costs, 
(B) are based upon the Administrator's total system costs, and 
(C) insofar as transmission rates are concerned, equitably 
allocate the costs of the Federal transmission system between 
Federal and non-Federal power utilizing such system. 
(b)(1) The Administrator shall establish a rate or rates of general 
application for electric power sold to meet the general requirements 
of public body, cooperative, and Federal agency customers within the 
Pacific Northwest, and loads of electric utilities under section 5(c). 
Such rate or rates shall recover the costs of that portion of the 
Federal base system resources needed to supply such loads until such 
sales exceed the Federal base system resources. Thereafter, such rate 
or rates shall recover the cost of additional electric power as needed 
to supply such loads, first from the electric power acquired by the 
Administrator under section 5(c) and then from other resources. 
(2) After July 1,1985, the projected amounts to be charged for firm 
power for the combined general requirements of public body, coopera-
tive and Federal agency customers, exclusive of amounts charged 
such customers under subsection (g) for the costs of conservation. 
94 STAT. 2724 
PUBLIC LAW 96-501—DEC. 5, 1980 
resource and conservation credits, experimental resources and un-
controllable events, may not exceed in total, as determined by the 
Administrator, during any year after July 1, 1985, plus the ensuing 
four years, an amount equal to the power costs for general require-
ments of such customers if, the Administrator assumes that— 
(A) the public body and cooperative customers' general require-
ments had included during such five-year period the direct 
service industrial customer loads which are— 
(i) served by the Administrator, and 
(ii) located within or adjacent to the geographic service 
boundaries of such public bodies and cooperatives; 
(B) public body, cooperative, and Federal agency customers 
were served, during such five-year period, with Federal base 
system resources not obligated to other entities under contracts 
existing as of the effective date of this Act (during the remaining 
term of such contracts) excluding obligations to direct service 
industrial customer loads included in subparagraph (A) of this 
paragraph; 
(C) no purchases or sales by the Administrator as provided in 
section 5(c) were made during such five-year period; 
(D) all resources that would have been required, during such 
five-year period, to meet remaining general requirements of the 
public body, cooperative and Federal agency customers (other 
than requirements met by the available Federal base system 
resources determined under subparagraph (B) of this paragraph) 
were— 
(i) purchased from such customers by the Administrator 
pursuant to section 6, or 
(ii) not committed to load pursuant to section 5(b), 
and were the least expensive resources owned or purchased by 
public bodies or cooperatives; and any additional needed 
resources were obtained at the average cost of all other new 
resources acquired by the Administrator; and 
(E) the quantifiable monetary savings, during such five-year 
period, to public body, cooperative and Federal agency customers 
resulting from— 
(i) reduced public body and cooperative financing costs as 
applied to the total amount of resources, other than Federal 
base system resources, identified under subparagraph (D) of 
this paragraph, and 
(ii) reserve benefits as a result of the Administrator's 
actions under this Act 
were not achieved. 
(3) Any amounts not charged to public body, cooperative, and 
Federal agency customers by reason of paragraph (2) of this subsec-
tion shall be recovered through supplemental rate charges for all 
other power sold by the Administrator to all customers. Rates 
charged public body, cooperative, or Federal agency customers pursu-
ant to this subsection shall not include any costs or benefits of a net 
revenue surplus or deficiency occurring for the period ending 
June 30,1985, to the extent such surplus or deficiency is caused by— 
(A) a difference between actual power deliveries and power 
deliveries projected for the purpose of establishing rates to direct 
service industrial customers under subsection (c)(1) of this sub-
section, and 
(B) an overrecovery or underrecovery of the net costs incurred 
by the Administrator under section 5(c) as a result of such 
difference. 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2725 
Any such revenue surplus or deficiency incurred shall be recovered 
from, or repaid to, customers over a reasonable period of time after 
July 1, 1985, through a supplemental rate charge or credit applied 
proportionately for all other power sold by the Administrator at rates 
established under other subsections of this section prior to July 1, 
1985. 
(4) The term "general requirements" as used in this section means "General 
the public body, cooperative or Federal agency customer's electric requirements." 
power purchased from the Administrator under section 5(b) of this 
Act, exclusive of any new large single load. 
(cXD The rate or rates applicable to direct service industrial 
customers shall be established— 
(A) for the period prior to July 1, 1985, at a level which the 
Administrator estimates will be sufficient to recover the cost of 
resources the Administrator determines are required to serve 
such customers' load and the net costs incurred by the Adminis-
trator pursuant to section 5(c) of this Act, based upon the 
Administrator's projected ability to make power available to 
such customers pursuant to their contracts, to the extent that 
such costs are not recovered through rates applicable to other 
customers; and 
(B) for the period beginning July 1,1985, at a level which the 
Administrator determines to be equitable in relation to the retail 
rates charged by the public body and cooperative customers to 
their industrial consumers in the region. 
(2) The determination under paragraph (1)(B) of this subsection 
shall be based upon the Administrator's applicable wholesale rates to 
such public body and cooperative customers and the typical margins 
included by such public body and cooperative customers in their 
retail industrial rates but shall take into account— 
(A) the comparative size and character of the loads served, 
(B) the relative costs of electric capacity, energy, transmission, 
and related delivery facilities provided and other service provi-
sions, and 
(C) direct and indirect overhead costs, 
all as related to the delivery of power to industrial customers, except 
that the Administrator's rates during such period shall in no event be 
less than the rates in effect for the contract year ending on June 30, 
1985. 
(3) The Administrator shall adjust such rates to take into account 
the value of power system reserves made available to the Administra-
tor through his rights to interrupt or curtail service to such direct 
service industrial customers. 
(d)(1) In order to avoid adverse impacts on retail rates of the 
Administrator's customers with low system densities, the Adminis-
trator shall, to the extent appropriate, apply discounts to the rate or 
rates for such customers. 
(2) In order to avoid adverse impacts of increased rates pursuant to 
this Act on any direct service industrial customer using raw minerals 
indigenous to the region as its primary resource, the Administrator, 
upon request of such customer showing such impacts and after 
considering the effect of such request on his other obligations under 
this Act, is authorized, if the Administrator determines that such 
impacts will be significant, to establish a special rate applicable to 
such customer if all power sold to such customer may be interrupted, 
curtailed, or withdrawn to meet firm loads in the region. Such rate 
shall be established in accordance with this section and shall include 
such terms and conditions as the Administrator deems appropriate. 
79-194 O—81—pt. 3 
6 : QL3 
94 STAT. 2726 
PUBLIC LAW 96-501—DEC. 5, 1980 
Publication in 
Federal 
Register. 
Hearings. 
Publication in 
Federal 
Register. 
(e) Nothing in this Act prohibits the Administrator from estabHsh-
ing, in rate schedules of general application, a uniform rate or rates 
for sale of peaking capacity or from establishing time-of-day, seasonal 
rates, or other rate forms. 
(f) Rates for all other firm power sold by the Administrator for use 
in the Pacific Northwest shall be based upon the cost of the portions 
of Federal base system resources, purchases of power under section 
5(c) of this Act and additional resources which, in the determination 
of the Administrator, are applicable to such sales. 
(g) Except to the extent that the allocation of costs and benefits is 
governed by provisions of law in effect on the effective date of this 
Act, or by other provisions of this section, the Administrator shall 
equitably allocate to power rates, in accordance with generally 
accepted ratemaking principles and the provisions of this Act, all 
costs and benefits not otherwise allocated under this section, includ-
ing, but not limited to, conservation, fish and wildlife measures, 
uncontrollable events, reserves, the excess costs of experimental 
resources acquired under section 6, the cost of credits granted 
pursuant to section 6, operating services, and the sale of or inability 
to sell excess electric power. 
(h) Notwithstanding any other provision of this section (except the 
provisions of subsection (a) of this section), the Administrator shall 
adjust power rates to include any surcharges arising under section 
4(0 of this Act, and shall allocate any revenues from such charges in 
such manner as the Administrator determines will help achieve the 
purposes of section 4(f) of this Act. 
(i) In establishing rates under this section, the Administrator shall 
use the following procedures: 
(1) Notice of the proposed rates shall be published in the 
Federal Register with a statement of the justification and rea-
sons supporting such rates. Such notice shall include a date for a 
hearing in accordance with paragraph (2) of this subsection. 
(2) One or more hearings shall be conducted as expeditiously as 
practicable by a hearing officer to develop a full and complete 
record and to receive public comment in the form of written and 
oral presentation of views, data, questions, and argument related 
to such proposed rates. In any such hearing— 
(A) any person shall be provided an adequate opportunity 
by the hearing officer to offer refutation or rebuttal of any 
material submitted by any other person or the Administra-
tor, and 
(B) the hearing officer, in his discretion, shall allow a 
reasonable opportunity for cross examination, which, as 
determined by the hearing officer, is not dilatory, in order to 
develop information and material relevant to any such 
proposed rate. 
(3) In addition to the opportunity to submit oral and written 
material at the hearings, any written views, data, questions, and 
arguments submitted by persons prior to, or before the close of, 
hearings shall be made a part of the administrative record. 
(4) After such a hearing, the Administrator may propose 
revised rates, publish such proposed rates in the Federal Regis-
ter, and conduct additional hearings in accordance with this 
subsection. 
(5) The Administrator shall make a final decision establishing 
a rate or rates based on the record which shall include the 
hearing transcript, together with exhibits, and such other mate-
rials and information as may have been submitted to, or devel-
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2727 
oped by, the Administrator. The decision shall include a full and 
complete justification of the final rates pursuant to this section. 
(6) The final decision of the Administrator shall become effec-
tive on confirmation and approval of such rates by the Federal 
Energy Regulatory Commission pursuant to subsection (a)(2) of 
this section. The Commission shall have the authority, in accord-
ance with such procedures, if any, as the Commission shall 
promptly establish and make effective within one year after the 
enactment of this Act, to approve the final rate submitted by the 
Administrator on an interim basis, pending the Commission's 
final decision in accordance with such subsection. Pending the 
establishment of such procedures by the Commission, if such 
procedures are required, the Secretary is authorized to approve 
such interim rates during such one-year period in accordance 
with the applicable procedures followed by the Secretary prior to 
the effective date of this Act. Such interim rates, at the discretion 
of the Secretary, shall continue in effect until July 1, 1982. 
(j) All rate schedules adopted, and all power billings rendered, by 
the Administrator pursuant to this section shall indicate— 
(1) the approximate cost contribution of different resource 
categories to the Administrator's rates for the sale of energy and 
capacity, and 
(2) the cost of resources acquired to meet load growth within 
the region and the relation of such cost to the average cost of 
resources available to the Administrator. 
(k) Notwithstanding any other provision of this Act, all rates or 
rate schedules for the sale of nonfirm electric power within the 
United States, but outside the region, shall be established after the 
date of this Act by the Administrator in accordance with the 
procedures of subsection (i) of this section (other than the first 
sentence of paragraph (6) thereof) and in accordance with the 
Bonneville Project Act, the Flood Control Act of 1944, and the Federal 
Columbia River Transmission System Act. Notwithstanding section 
201(0 of the Federal Power Act, such rates or rate schedules shall 
become effective after review by the Federal Energy Regulatory 
Commission for conformance with the requirements of such Acts and 
after approval thereof by the Commission. Such review shall be based 
on the record of proceedings established under subsection (i) of this 
section. The parties to such proceedings under subsection (i) shall be 
afforded an opportunity by the Commission for an additional hearing 
in accordance with the procedures established for ratemaking by the 
Commission pursuant to the Federal Power Act. 
(1) In order to further the purposes of this Act and to protect the 
consumers of the region, the Administrator may negotiate, or estab-
lish, rates for electric power sold by the Administrator to any entity 
not located in the United States which shall be equitable in relation 
to rates for all electric power which is, or may be, purchased by the 
Administrator or the Administrator's customers from entities outside 
the United States. In establishing rates other than by negotiation, the 
provisions of subsection (i) shall apply. In the case of any negotiation 
with an entity not located in the United States, the Administrator 
shall provide public notice of any proposal to negotiate such rates. 
Such negotiated rates shall be not less than the rates established 
under this Act for nonfirm power sold within the United States but 
outside the region. The Administrator shall also afford notice of any 
rates negotiated pursuant to this subsection. 
(m)(l) Beginning the first fiscal year after the plan and program 
required by section 4 (d) and (h) of this Act are finally adopted, the 
Interim rates. 
Rate or rate 
schedules, 
establishment. 
16 use 
832-832/; 
16 u s e 460d, 
825s; 33 USC 
701-1, 701a-l, 
701b-l, 701c 
note, 708, 709; 
43 USC 390. 
16 USC 838 note. 
16 USC 824. 
Negotiated rates 
outside U.S. 
Notice. 
Payments. 
94 STAT. 2728 
PUBLIC LAW 96-501—DEC. 5, 1980 
Administrator may, subject to the provisions of this section, make 
annual impact aid payments to the appropriate local governments 
within the region with respect to major transmission facilities of the 
Administrator, as defined in section 3(c) of the Federal Columbia 
1
6 use 838a. 
River Transmission Act— 
(A) which are located within the jurisdictional boundaries of 
such governments, 
(B) which are determined by the Administrator to have a 
substantial impact on such governments, and 
(C) where the construction of such facilities, or any modifica-
tion thereof, is completed after the effective date of this Act, and, 
in the case of a modification of an existing facility, such modifica-
tion substantially increases the capacity of such existing trans-
mission facility. 
Payment 
(2) Payments made under this subsection for any fiscal year shall 
ormu a. 
y^ determined by the Administrator pursuant to a regionwide, 
uniform formula to be established by rule in accordance with the 
procedures set forth in subsection (i) of this section. Such rule shall 
become effective on its approval, after considering its effect on rates 
established pursuant to this section, by the Federal Energy Regula-
tory Commission. In developing such formula, the Administrator 
shall identify, and take into account, the local governmental services 
provided to the Administrator concerning such facilities and the 
associated costs to such governments as the result of such facilities. 
(3) Payments made pursuant to this subsection shall be made solely 
from the fund established by section 11 of the Federal Columbia River 
1
6 use 838i, 
Transmission System Act. The provisions of section 13 of such Act, 
^^^^- 
and any appropriations provided to the Administrator under any law, 
shall not be available for such pajonents. The authorization of 
payments under this subsection shall not be construed as an obliga-
tion of the United States. 
(4) No payment may be made under this subsection with respect to 
any land or interests in land owned by the United States within the 
region and administered by any Federal agency (other than the 
Administrator), without regard to how the United States obtained 
ownership thereof, including lands or interests therein acquired or 
withdrawn by a Federal agency for purposes of such agency and 
subsequently made available to the Administrator for such facilities. 
AMENDMENTS TO EXISTING LAW 
1
6 use 838i. 
SEC. 8. (a) Section 11(b) of the Federal Columbia River Transmission 
System Act is amended by striking out "or" before "(iii)" in para-
graph (6), by striking out the semicolon at the end of such paragraph 
(6) and inserting in lieu thereof ", or (iv) on a short term b£isis to meet 
the Administrator's obligations under section 4(h) of the Pacific 
Ante, p. 2700. 
Northwest Electric Power Planning and Conservation Act;". 
(b) Section 11(b) of the Federal Columbia River Transmission 
System Act is sunended by striking out "and" at the end of paragraph 
(10), by striking out the period at the end of paragraph (11) and 
inserting in lieu thereof "; and", and by adding at the end thereof the 
following new paragraph: 
"(12) making such payments, as shall be required to carry out 
the purposes and provisions of the Pacific Northwest Electric 
Power Planning and Conservation Act.". 
1
6 use 838k. 
(c) Subsection (b) of section 13 of such Act is amended by striking 
out "and ll(bXll)" and inserting in lieu thereof ", ll(bXll), and 
110i)X12)". 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2729 
(d)(1) The first sentence of subsection (a) of section 13 of such Act is 16 USC 838k. 
amended by inserting after the word "system," the following: "to 
implement the Administrator's authority pursuant to the Pacific 
Northwest Electric Power Planning and Conservation Act (including Ante, p. 2697. 
his authority to provide financial assistance for conservation meas-
ures, renewable resources, and fish and wildlife, but not including the 
authority to acquire under section 6 of that Act electric power from a Ante, p. 2717. 
generating facility having a planned capability greater than 50 
average megawatts),". 
(2) The fourth sentence of such subsection (a) is amended by 
inserting the following before the period at the end thereof: "issued 
by Government corporations". 
(3) Such subsection (a) is further amended by inserting the follow-
ing before the period at the end thereof: "prior to October 1, 1981. 
Such aggregate principal limitation shall be increased by an 
additional $1,250,000,000 after October 1, 1981, as provided in ad-
vance in annual appropriation Acts, and such increased amount shall 
be reserved for the purpose of providing funds for conservation and 
renewable resource loans and grants in a special revolving account 
created therefor in the Fund. The funds from such revolving account 
shall not be deemed State or local funds". 
(4) Such subsection (a) is further amended by inserting the follow-
ing after the fourth sentence thereof: "Beginning in fiscal year 1982, Rate increase. 
if the Administrator fails to repay by the end of any fiscal year all of 
the amounts projected immediately prior to such year to be repaid to 
the Treasury by the end of such year under the repayment criteria of 
the Secretary of Energy and if such failure is due to reasons other 
than (A) a decrease in power sale revenues due to 
fluctuating 
streamflows or (B) other reasons beyond the control of the Adminis-
trator, the Secretary of the Treasury may increase the interest rate 
applicable to the outstanding bonds issued by the Administrator 
during such fiscal year. Such increase shall be effective commencing 
with the fiscal year immediately following the fiscal year during 
which such failure occurred and shall not exceed 1 per centum for 
each such fiscal year during which such repayments are not in accord 
with such criteria. The Secretary of the Treasury shall take into 
account amounts that the Administrator has repaid in advance of 
any repayment criteria in determining whether to increase such rate. 
Before such rate is increased, the Secretary of the Treasury, in 
consultation with the Administrator and the Federal Energy Regula-
tory Commission, must be satisfied that the Administrator will have 
the ability to pay such increased rate, taking into account the 
Administrator's obligations. Such increase shall terminate with the Termination. 
fiscal year in which repayments (including repayments of the 
increased rate) are in accordance with the repayment criteria of the 
Secretary of Energy.". 
(e) Clause (2) of section 1(b) of the Act of August 31, 1964 (78 Stat. 16 USC 837. 
756) is amended to read as follows: "(2) any contiguous areas, not in 
excess of seventy-five airline miles from said region, which are a part 
of the service area of a rural electric cooperative served by the 
Administrator on the effective date of the Pacific Northwest Electric 
Power Planning and Conservation Act which has a distribution Ante, p. 2697. 
system from which it serves both within and without said region.". 
ADMINISTRATIVE PROVISIONS 
SEC. 9. (a) Subject to the provisions of this Act, the Administrator is 
authorized to contract in accordance with section 2(f) of the Bonne-
16 USC 839f. 
94 STAT. 2730 
PUBLIC LAW 96-501—DEC. 5, 1980 
Contracts 
outside Pacific 
Northwest, 
limitations and 
conditions. 
Definitions. 
ville Project Act of 1937 (16 U.S.C. 832a(f)). Other provisions of law 
applicable to such contracts on the effective date of this Act shall 
continue to be applicable. 
(b) The Administrator shall discharge the executive and adminis-
trative functions of his office in accordance with the policy estab-
lished by the Bonneville Project Act of 1937 (16 U.S.C. 832 and 
following), section 302(a) (2) and (3) of the Department of Energy 
42 use 7152. 
Organization Act, and this Act. The Secretary of Energy, the Council, 
and the Administrator shall take such steps as are necessary to 
assure the timely implementation of this Act in a sound and business-
like manner. Nothing in this Act shall be construed by the Secretary, 
the Administrator, or any other official of the Department of Energy 
to modify, alter, or otherwise affect the requirements and directives 
expressed by the Congress in section 302(a) (2) and (3) of the Depart-
ment of Energy Organization Act or the operations of such officials as 
they existed prior to enactment of this Act. 
(c) Any contract of the Administrator for the sale or exchange of 
electric power for use outside the Pacific Northwest shall be subject 
to limitations and conditions corresponding to those provided in 
sections 2 and 3 of the Act of August 31,1964 (16 U.S.C. 837a and 837b) 
for any contract for the sale, delivery, or exchange of hydroelectric 
energy or peaking capacity generated within the Pacific Northwest 
for use outside the Pacific Northwest. In applying such sections for 
the purposes of this subsection, the term "surplus energy" shall mean 
electric energy for which there is no market in the Pacific Northwest 
at any rate established for the disposition of such energy, and the 
term "surplus peaking capacity" shall mean electric peaking capac-
ity for which there is no demand in the Pacific Northwest at the rate 
established for the disposition of such capacity. The authority 
granted, and duties imposed upon, the Secretary by sections 5 and 7 
16 use 837d. 
of such Act (16 U.S.C. 837e and 837f) shall also apply to the Adminis-
trator in connection with resources acquired by the Administrator 
pursuant to this Act. The Administrator shall, in making any 
determination, under any contract executed pursuant to section 5, of 
the electric power requirements of any Pacific Northwest customer, 
which is a non-Federal entity having its own generation, exclude, in 
addition to hydroelectric generated energy excluded from such re-
quirements pursuant to section 3(d) of such Act (16 U.S.C. 837b(d)), 
any amount of energy included in the resources of such customer for 
service to firm loads in the region if (1) such amount was disposed of 
by such customer outside the region, and (2) as a result of such 
disposition, the firm energy requirements of such customer or other 
customers of the Administrator are increased. Such amount of energy 
shall not be excluded, if the Administrator determines that through 
reasonable measures such amount of energy could not be conserved 
or otherwise retained for service to regional loads. The Administrator 
may sell as replacement for any amount of energy so excluded only 
energy that would otherwise be surplus. 
(d) No restrictions contained in subsection (c) shall limit or inter-
fere with the sale, exchange or other disposition of any power by any 
utility or group thereof from any existing or new non-Federal 
resource if such sale, exchange or disposition does not increase the 
amount of firm power the Administrator would be obligated to 
provide to any customer. In addition to the directives contained in 
subsections (i)(l)(B) and (i)(3) and subject to: 
(1) any contractual obligations of the Administrator, 
(2) any other obligations under existing law, and 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2731 
(3) the availability of capacity in the Federal transmission 
system, 
the Administrator shall provide transmission access, load factoring, 
storage and other services normally attendant thereto to such utili-
ties and shall not discriminate against any utility or group thereof on 
the basis of independent development of such resource in providing 
such services. 
(e)(1) For purposes of sections 701 through 706 of title 5, United Judicial review. 
States Code, the following actions shall be final actions subject to 
judicial review— 
(A) adoption of the plan or amendments thereto by the Council 
under section 4, adoption of the program by the Council, and any 
determination by the Council under section 4(h); 
(B) sales, exchanges, and purchases of electric power under 
section 5; 
(C) the Administrator's acquisition of resources under sec-
tion 6; 
(D) implementation of conservation measures under section 6; 
(E) execution of contracts for assistance to sponsors under 
section 6(f); 
(F) granting of credits under section 6(h); 
(G) final rate determinations under section 7; and 
(H) any rule prescribed by the Administrator under section 
(7)(m)(2)ofthisAct. 
(2) The record upon review of such final actions shall be limited to 
the administrative record compiled in accordance with this Act. The 
scope of review of such actions without a hearing or after a hearing 
shall be governed by section 706 of title 5, United States Code, except 
that final determinations regarding rates under section 7 shall be 
supported by substantial evidence in the rulemaking record required 
by section 7(i) considered as a whole. The scope of review of an action 
under section 6(c) shall be governed by section 706 of title 5, United 
States Code. Nothing in this section shall be construed to require a 
hearing pursuant to section 554, 556, or 557 of title 5 of the United 
States Code. 
(3) Nothing in this section shall be construed to preclude judi-
cial review of other final actions and decisions by the Council or 
Administrator. 
(4) For purposes of this subsection— 
(A) major resources shall be deemed to be acquired upon 
publication in the Federal Register pursuant to section 6(c)(4)(B); 
(B) resources, other than major resources, shall be deemed to 
be acquired upon execution of the contract therefor; 
(C) conservation measures shall be deemed to be implemented 
upon execution of the contract or grant therefor; and 
(D) rate determinations pursuant to section 7 shall be deemed 
final upon confirmation and approval by the Federal Energy 
Regulatory Commission. 
(5) Suits to challenge the constitutionality of this Act, or any action 
thereunder, final actions and decisions taken pursuant to this Act by 
the Administrator or the Council, or the implementation of such final 
actions, whether brought pursuant to this Act, the Bonneville Project 
Act, the Act of August 31, 1964 (16 U.S.C. 837-837h), or the Federal 
Columbia River Transmission System Act (16 U.S.C. 838 and follow-
ing), shall be filed in the United States court of appeals for the region. 
Such suits shall be filed within ninety days of the time such action or 
decision is deemed final, or, if notice of the action is required by this 
Act to be published in the Federal Register, within ninety days from 
Suits. 
16 u s e 832-832/. 
Notice, 
publication in 
Federal 
Register. 
94 STAT. 2732 
PUBLIC LAW 96-501—DEC. 5, 1980 
such notice, or be barred. In the case of a challenge of the plan or 
programs or amendments thereto, such suit shall be filed within sixty 
days after publication of a notice of such final action in the Federal 
Register. Such court shall have jurisdiction to hear and determine 
any suit brought as provided in this section. The plan and program, as 
finally adopted or portions thereof, or amendments thereto, shall not 
thereafter be reviewable as a part of any other action under this Act 
or any other law. Suits challenging any other actions under this Act 
shall be filed in the appropriate court. 
(f) For purposes of enabling the Administrator to acquire resources 
necessary to meet the firm load of public bodies, cooperatives, and 
Federal agencies from a governmental unit at a cost no greater than 
the cost which would be applicable in the absence of such acquisition, 
the exemption from gross income of interest on certain governmental 
obligations provided in section 103(aXl) of the Internal Revenue Code 
26 use 103. 
of 1954 shall not be affected by the Administrator's acquisition of 
such resources if— 
(1) the Administrator, prior to contracting for such acquisition, 
certifies to his reasonable belief, that the persons for whom the 
Administrator is acquiring such resources for sale pursuant to 
section 5 of this Act are public bodies, cooperatives, and Federal 
agencies, unless the Administrator also certifies that he is unable 
to acquire such resources without selling a portion thereof to 
persons who are not exempt persons (as defined in section 103(b) 
ofsuch Code), and 
(2) based upon such certification, the Secretary of the Treasury 
determines in accordance with applicable regulations that less 
than a major portion of the resource is to be furnished to persons 
who are not exempt persons (as defined in section 103(b) of such 
Code). 
The certification under paragraph (1) shall be made in accordance 
with this subsection and a procedure and methodology approved by 
"Major portion." the Secretary of the Treasury. For purposes of this subsection, the 
term "major portion" shall have the meaning provided by regulations 
issued by the Secretary of the Treasury. 
(g) When reviewing rates for the sale of power to the Administrator 
by an investor-owned utility customer under section 5(c) or 6, the 
Federal Energy Regulatory Commission shall, in accordance with 
section 209 of the Federal Power Act (16 U.S.C. 824h)— 
(1) convene a joint State board, and 
(2) invest such board with such duties and authority £is will 
assist the Commission in its review of such rates. 
(hXD No "company" (as defined in section 2(a)(2) of the Public 
Utility Holding Company Act of 1935; 15 U.S.C. 79b(a)(2)), which owns 
or operates facilities for the generation of electricity (together with 
associated transmission and other facilities) primarily for sale to the 
Administrator under section 6 shall be deemed an electric utility 
company" (as defined in section 2(aX3) of the Public Utility Holding 
Company Act of 1935; 15 U.S.C. 79b(aX3)), within the meaning of any 
provision or provisions of chapter 2C of title 15 of the United States 
15 use 79 et seq. Code, if at least 90 per centum of the electricity generated by such 
company is sold to the Administrator under section 6, and if— 
(A) the organization of such company is consistent with the 
policies of section 1 (b) and (c) of the Public Utility Holding 
15 use 79a. 
Company Act of 1935, as determined by the Securities and 
Exchange Commission, with the concurrence of the Administra-
tor, at the time ofsuch organization; and 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2733 
(B) participation in any facilities of such "company" has been 
offered to public bodies and cooperatives in the region pursuant 
to section 6(m). 
(2) The Administrator shall include in any contract for the acquisi-
tion of a major resource from such "company" provisions limiting the 
amount of equity investment, if any, in such "company" to that 
which the Administrator determines will be consistent with achiev-
ing the lowest attainable power costs attributable to such major 
resource. 
(3) In the case of any "company" which meets the requirements of 
paragraph (1), the Administrator, with the concurrence of such 
Commission, shall approve all significant contracts entered into by, 
and between, such "company" and any sponsor company or any 
subsidiary of such sponsor company which are determined to be 
consistent with the policies of section 1 (b) and (c) of the Public Utility 
Holding Company Act of 1935 at the time such contracts are entered 
into. The Administrator and the Securities and Exchange Commis-
sion shall exercise such approval authority within sixty days after 
receipt of such contracts. Such contracts shall not be effective 
without such approval. 
(4) Paragraph (1) of this subsection shall continue to apply to any 
such "company" unless the Administrator or the Securities and 
Exchange Commission, or both, through periodic review, (A) deter-
mine at any time that the "company" no longer operates in a manner 
consistent with the policies of section 1 (b) and (c) of the Public Utility 
Holding Company Act of 1935 and in accordance with this subsection, 
and (B) notify the "company" in writing of such preliminary determi-
nation. This subsection shall cease to apply to such "company" thirty 
days after receipt of notification of a final determination thereof. A 
final determination shall be made only after public notice of the 
preliminary determination and after a hearing completed not later 
than sixty days from the date of publication of such notice. Such final 
determination shall be made within thirty days after the date of 
completion of such hearing. 
(i)(l) At the request and expense of any customer or group of 
customers of the Administrator within the Pacific Northwest, the 
Administrator shall, to the extent practicable— 
(A) acquire any electric power required by (i) any customer or 
group of customers to enable them to replace resources deter-
mined to serve firm load under section 5(b), or (ii) direct service 
industrial customers to replace electric power that is or may be 
curtailed or interrupted by the Administrator (other than power 
the Administrator is obligated to replace), with the cost of such 
replacement power to be distributed among the direct service 
industrial customers requesting such power; and 
(B) dispose of, or assist in the disposal of, any electric power 
that a customer or group of customers proposes to sell within or 
without the region at rates and upon terms specified by such 
customer or group of customers, if such disposition is not in 
conflict with the Administrator's other marketing obligations 
and the policies of this Act and other applicable laws. 
(2) In implementing the provisions of subparagraphs (A) and (B) of 
paragraph (1), the Administrator may prescribe policies and condi-
tions for the independent acquisition or disposition of electric power 
by any direct service industrial customer or group of such customers 
for the purpose of assuring each direct service industrial customer an 
opportunity to participate in such acquisition or disposition. 
Contracts, 
approval. 
15 u s e 79a. 
Notice and 
hearing. 
Electric power 
acquisition, 
policies and 
conditions. 
94 STAT. 2734 
PUBLIC LAW 96-501—DEC. 5, 1980 
Report. 
16 u s e 2601 
note. 
Functions. 
Conservation 
and renewable 
resources, 
position 
establishment. 
(3) The Administrator shall furnish services including transmis-
sion, storage, and load factoring unless he determines such services 
cannot be furnished without substantial interference with his power 
marketing program, applicable operating limitations or existing 
contractual obligations. The Administrator shsill, to the extent prac-
ticable, give priority in making such services available for the 
marketing, within and without the Pacific Northwest, of capability 
from projects under construction on the effective date of this Act, if 
such capability has been offered for sale at cost, including a reason-
able rate of return, to the Administrator pursuant to this Act and 
such offer is not accepted within one year. 
(jXD The Council, £is soon as practicable after the enactment of this 
Act, shall prepare, in consultation with the Administrator, the 
customers, appropriate State regulatory bodies, £ind the public, a 
report and shall make recommendations with respect to the various 
retail rate designs which will encourage conservation and efficient 
use of electric energy and the installation of consumer-owned renew-
able resources on a cost-effective basis, £is well as areas for research 
and development for possible application to retail utility rates within 
the region. Studies undertaken pursuant to this subsection shall not 
affect the responsibilities of any customer or the Administrator 
which may exist under the Public Utility Regulatory Policies Act of 
1978. 
(2) Upon request, and solely on behalf of customers so requesting, 
the Administrator is authorized to (A) provide assistance in analyzing 
and developing retail rate structures that will encourage cost-effec-
tive conservation and the installation of cost-effective consumer-
owned renewable resources; (B) provide estimates of the probable 
power savings and the probable amount of billing credits under 
section 6(h) that might be realized by such customers as a result of 
adopting and implementing such retail rate structures; and (C) solicit 
additional information and analytical assistance from appropriate 
State regulatory bodies and the Administrator's other customers. 
(k) There is hereby established within the administration an 
executive position for conservation and renewable resources. Such 
executive shall be appointed by the Administrator and shall be 
assigned responsibility for conservation and direct-application 
renewable resource programs (including the administration of finan-
cial assistance for such programs). Such position is hereby established 
in the senior executive service in addition to the number of such 
positions heretofore established in accordance with other provisions 
of law applicable to such positions. 
SAVINGS PROVISIONS 
i6USC839g. 
SEC. 10. (a) Nothing in this Act shall be construed to affect or 
modify any right of any State or political subdivision thereof or 
electric utility to— 
(1) determine retail electric rates, except as provided by section 
5(cX3); 
(2) develop and implement plans and programs for the conser-
vation, development, and use of resources; or 
(3) make energy facility siting decisions, including, but not 
limited to, determining the need for a particular facility, evaluat-
ing alternative sites, and considering alternative methods of 
meeting the determined need. 
PUBLIC LAW 96-501—DEC. 5, 1980 
94 STAT. 2735 
(b) Nothing in this Act shall alter, diminish, or abridge the rights 
and obligations of the Administrator or any customer under any 
contract existing as of the effective date of this Act. 
(c) Nothing in this Act shall alter, diminish, abridge, or otherwise 
affect the provisions of other Federal laws by which public bodies and 
cooperatives are entitled to preference and priority in the sale of 
federally generated electric power. 
(d) If any provision of this Act is found to be unconstitutional, then 
any contract entered into by the Administrator, prior to such finding 
and in accordance with such provisions, to sell power, acquire or 
credit resources, or to reimburse investigation and preconstruction 
expenses pursuant to section 5, and section 6 (a), (f) or (h) of this Act 
shall not be affected by such finding. 
(e) Nothing in this Act shall be construed to affect or modify any 
treaty or other right of an Indian tribe. 
(f) The reservation under law of electric power primarily for use in 
the State of Montana by reason of the construction of Hungry Horse 
and Libby Dams and Reservoirs within that State is hereby affirmed. 
Such reservation shall also apply to 50 per centum of any electric 
power produced at Libby Reregulating Dam if built. Electric power so 
reserved shall be sold at the rate or rates set pursuant to section 7. 
(g) Nothing in this Act shall be construed to affect or modify the 
right of any State to prohibit utilities regulated by the appropriate 
State regulatory body from recovering, through their retail rates, 
costs during any period of resource construction. 
(h) Nothing in this Act shall be construed as authorizing the Water 
appropriation of water by any Federal, State, or local agency, Indian appropriation. 
tribe, or any other entity or individual. Nor shall any provision of this 
Act of any plan or program adopted pursuant to the Act (1) affect the 
rights or jurisdictions of the United States, the States, Indian tribes, 
or other entities over waters of any river or stream or over any 
groundwater resource, (2) alter, amend, repeal, interpret, modify, or 
be in conflict with any interstate compact made by the States, or (3) 
otherwise be construed to alter or establish the respective rights of 
States, the United States, Indian tribes, or any person with respect to 
any water or water-related right. 
(i) Nothing in this Act shsdl be construed to affect the validity of 
any existing license, permit, or certificate issued by any Federal 
agency pursusmt to any other Federal law. 
EFFECTIVE DATE 
SEC. 11. This Act shall be effective on the date of enactment, or 1
6 U
S
C 839 note. 
October 1,1980, whichever is later. For purposes of this Act, the term 
"date of the enactment of this Act" means such date of enactment or 
October 1,1980, whichever is later. 
94 STAT. 2736 
PUBLIC LAW 96-501—DEC. 5, 1980 
SEVERABILITY 
16 use 839h. 
SEC. 12. If any provision of section 4(a) through (c) of this Act or any 
other provision of this Act or the application thereof to any person, 
State, Indian tribe, entity, or circumstance is held invalid, neither the 
remainder of section 4 or any other provisions of this Act, nor the 
application of such provisions to other persons, States, Indian tribes, 
entities, or circumstances, shall be affected thereby. 
Approved December 5, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-976, Pt. I (Comm. on Interstate and Foreign Commerce) 
and Pt. II (Comm. on Interior and Insular Affairs). 
SENATE REPORT No. 96-272 (Comm. on Energy and Natural Resources). 
CONGRESSIONAL RECORD: 
Vol. 125 (1979): Aug. 3, considered and passed Senate. 
Vol. 126 (1980): Sept. 24, 29, Nov. 12-14, 17, considered and passed House, 
amended, in lieu of H.R. 8157. 
Nov. 19, Senate concurred in House amendment.