S 519

112th CONGRESS
1st Session

S. 519

To further allocate and expand the availability of hydroelectric power generated at Hoover Dam, and for other purposes.

IN THE SENATE OF THE UNITED STATES

March 9, 2011

Mr. REID (for himself, Mr. ENSIGN, Mrs. BOXER, and Mrs. FEINSTEIN) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources


A BILL

To further allocate and expand the availability of hydroelectric power generated at Hoover Dam, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the `Hoover Power Allocation Act of 2011'.

SEC. 2. ALLOCATION OF CONTRACTS FOR POWER.

    (a) Schedule A Power- Section 105(a)(1)(A) of the Hoover Power Plant Act of 1984 (43 U.S.C. 619a(a)(1)(A)) is amended--

      (1) by striking `renewal';

      (2) by striking `June 1, 1987' and inserting `October 1, 2017'; and

      (3) by striking Schedule A and inserting the following:
`Schedule A
Long-term Schedule A contingent capacity and associated firm energy for offers of contracts to Boulder Canyon project contractors
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Contractor                                         Contingent capacity (kW) Firm energy (thousands of kWh)                       
                                                                                                    Summer    Winter       Total 
---------------------------------------------------------------------------------------------------------------------------------
Metropolitan Water District of Southern California                  249,948                        859,163   368,212   1,227,375 
City of Los Angeles                                                 495,732                        464,108   199,175     663,283 
Southern California Edison Company                                  280,245                        166,712    71,448     238,160 
City of Glendale                                                     18,178                         45,028    19,297      64,325 
City of Pasadena                                                     11,108                         38,622    16,553      55,175 
City of Burbank                                                       5,176                         14,070     6,030      20,100 
Arizona Power Authority                                             190,869                        429,582   184,107     613,689 
Colorado River Commission of Nevada                                 190,869                        429,582   184,107     613,689 
United States, for Boulder City                                      20,198                         53,200    22,800      76,000 
Totals                                                            1,462,323                      2,500,067 1,071,729 3,571,796'. 
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    (b) Schedule B Power- Section 105(a)(1)(B) of the Hoover Power Plant Act of 1984 (43 U.S.C. 619a(a)(1)(B)) is amended to read as follows:

    `(B) To each existing contractor for power generated at Hoover Dam, a contract, for delivery commencing October 1, 2017, of the amount of contingent capacity and firm energy specified for that contractor in the following table:
`Schedule B
Long-term Schedule B contingent capacity and associated firm energy for offers of contracts to Boulder Canyon project contractors
--------------------------------------------------------------------------------------------
Contractor        Contingent capacity (kW) Firm energy (thousands of kWh)                   
                                                                   Summer  Winter     Total 
--------------------------------------------------------------------------------------------
 City of Glendale                    2,020                          2,749   1,194     3,943 
City of Pasadena                     9,089                          2,399   1,041     3,440 
City of Burbank                     15,149                          3,604   1,566     5,170 
City of Anaheim                     40,396                         34,442  14,958    49,400 
City of Azusa                        4,039                          3,312   1,438     4,750 
City of Banning                      2,020                          1,324     576     1,900 
City of Colton                       3,030                          2,650   1,150     3,800 
City of Riverside                   30,296                         25,831  11,219    37,050 
City of Vernon                      22,218                         18,546   8,054    26,600 
Arizona                            189,860                        140,600  60,800   201,400 
Nevada                             189,860                        273,600 117,800   391,400 
Totals                             507,977                        509,057 219,796 728,853'. 
--------------------------------------------------------------------------------------------

    (c) Schedule C Power- Section 105(a)(1)(C) of the Hoover Power Plant Act of 1984 (43 U.S.C. 619a(a)(1)(C)) is amended--

      (1) by striking `June 1, 1987' and inserting `October 1, 2017'; and

      (2) by striking Schedule C and inserting the following:
`Schedule C
Excess Energy
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Priority of entitlement to excess energy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 State 
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
First: Meeting Arizona's first priority right to delivery of excess energy which is equal in each year of operation to 200 million kilowatthours: Provided, That in the event excess energy in the amount of 200 million kilowatthours is not generated during any year of operation, Arizona shall accumulate a first right to delivery of excess energy subsequently generated in an amount not to exceed 600 million kilowatthours, inclusive of the current year's 200 million kilowatthours. Said first right of delivery shall accrue at a rate of 200 million kilowatthours per year for each year excess energy in an amount of 200 million kilowatthours is not generated, less amounts of excess energy delivered.                           Arizona 
Second: Meeting Hoover Dam contractual obligations under Schedule A of subsection (a)(1)(A), under Schedule B of subsection (a)(1)(B), and under Schedule D of subsection (a)(2), not exceeding 26 million kilowatthours in each year of operation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Arizona, Nevada, and California 
Third: Meeting the energy requirements of the three States, such available excess energy to be divided equally among the States.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Arizona, Nevada, and California'. 
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    (d) Schedule D Power- Section 105(a) of the Hoover Power Plant Act of 1984 (43 U.S.C. 619a(a)) is amended--

      (1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively; and

      (2) by inserting after paragraph (1) the following:

    `(2)(A) The Secretary of Energy is authorized to and shall create from the apportioned allocation of contingent capacity and firm energy adjusted from the amounts authorized in this Act in 1984 to the amounts shown in Schedule A and Schedule B, as modified by the Hoover Power Allocation Act of 2011, a resource pool equal to 5 percent of the full rated capacity of 2,074,000 kilowatts, and associated firm energy, as shown in Schedule D (referred to in this section as `Schedule D contingent capacity and firm energy'):
`Schedule D
Long-term Schedule D resource pool of contingent capacity and associated firm energy for new allottees
-------------------------------------------------------------------------------------------------------------------------
State                                             Contingent capacity (kW) Firm energy (thousands of kWh)                
                                                                                                   Summer Winter   Total 
-------------------------------------------------------------------------------------------------------------------------
New Entities Allocated by the Secretary of Energy                   69,170                        105,637 45,376 151,013 
New Entities Allocated by State                                                                                          
Arizona                                                             11,510                         17,580  7,533  25,113 
 California                                                         11,510                         17,580  7,533  25,113 
Nevada                                                              11,510                         17,580  7,533  25,113 
Totals                                                             103,700                        158,377 67,975 226,352 
-------------------------------------------------------------------------------------------------------------------------

    `(B) The Secretary of Energy shall offer Schedule D contingency capacity and firm energy to entities not receiving contingent capacity and firm energy under subparagraphs (A) and (B) of paragraph (1) (referred to in this section as `new allottees') for delivery commencing October 1, 2017 pursuant to this subsection. In this subsection, the term `the marketing area for the Boulder City Area Projects' shall have the same meaning as in appendix A of the General Consolidated Power Marketing Criteria or Regulations for Boulder City Area Projects published in the Federal Register on December 28, 1984 (49 Federal Register 50582 et seq.) (referred to in this section as the `Criteria').

    `(C)(i) Within 36 months of the date of enactment of the Hoover Power Allocation Act of 2011, the Secretary of Energy shall allocate through the Western Area Power Administration (referred to in this section as `Western'), for delivery commencing October 1, 2017, for use in the marketing area for the Boulder City Area Projects 66.7 percent of the Schedule D contingent capacity and firm energy to new allottees that are located within the marketing area for the Boulder City Area Projects and that are--

      `(I) eligible to enter into contracts under section 5 of the Boulder Canyon Project Act (43 U.S.C. 617d); or

      `(II) federally recognized Indian tribes.

    `(ii) In the case of Arizona and Nevada, Schedule D contingent capacity and firm energy for new allottees other than federally recognized Indian tribes shall be offered through the Arizona Power Authority and the Colorado River Commission of Nevada, respectively. Schedule D contingent capacity and firm energy allocated to federally recognized Indian tribes shall be contracted for directly with Western.

    `(D) Within 1 year of the date of enactment of the Hoover Power Allocation Act of 2011, the Secretary of Energy also shall allocate, for delivery commencing October 1, 2017, for use in the marketing area for the Boulder City Area Projects 11.1 percent of the Schedule D contingent capacity and firm energy to each of--

      `(i) the Arizona Power Authority for allocation to new allottees in the State of Arizona;

      `(ii) the Colorado River Commission of Nevada for allocation to new allottees in the State of Nevada; and

      `(iii) Western for allocation to new allottees within the State of California, provided that Western shall have 36 months to complete such allocation.

    `(E) Each contract offered pursuant to this subsection shall include a provision requiring the new allottee to pay a proportionate share of its State's respective contribution (determined in accordance with each State's applicable funding agreement) to the cost of the Lower Colorado River Multi-Species Conservation Program (as defined in section 9401 of the Omnibus Public Land Management Act of 2009 (Public Law 111-11; 123 Stat. 1327)), and to execute the Boulder Canyon Project Implementation Agreement Contract No. 95-PAO-10616 (referred to in this section as the `Implementation Agreement').

    `(F) Any of the 66.7 percent of Schedule D contingent capacity and firm energy that is to be allocated by Western that is not allocated and placed under contract by October 1, 2017, shall be returned to those contractors shown in Schedule A and Schedule B in the same proportion as those contractors' allocations of Schedule A and Schedule B contingent capacity and firm energy. Any of the 33.3 percent of Schedule D contingent capacity and firm energy that is to be distributed within the States of Arizona, Nevada, and California that is not allocated and placed under contract by October 1, 2017, shall be returned to the Schedule A and Schedule B contractors within the State in which the Schedule D contingent capacity and firm energy were to be distributed, in the same proportion as those contractors' allocations of Schedule A and Schedule B contingent capacity and firm energy.'.

    (e) Total Obligations- Paragraph (3) of section 105(a) of the Hoover Power Plant Act of 1984 (43 U.S.C. 619a(a)) (as redesignated as subsection (d)(1)) is amended--

      (1) in the first sentence, by striking `schedule A of section 105(a)(1)(A) and schedule B of section 105(a)(1)(B)' and inserting `paragraphs (1)(A), (1)(B), and (2)'; and

      (2) in the second sentence--

        (A) by striking `any' and inserting `each';

        (B) by striking `schedule C' and inserting `Schedule C'; and

        (C) by striking `schedules A and B' and inserting `Schedules A, B, and D'.

    (f) Power Marketing Criteria- Paragraph (4) of section 105(a) of the Hoover Power Plant Act of 1984 (43 U.S.C. 619a(a)) (as redesignated as subsection (d)(1)) is amended to read as follows:

    `(4) Subdivision E of the Criteria shall be deemed to have been modified to conform to this section, as modified by the Hoover Power Allocation Act of 2011. The Secretary of Energy shall cause to be included in the Federal Register a notice conforming the text of the regulations to such modifications.'.

    (g) Contract Terms- Paragraph (5) of section 105(a) of the Hoover Power Plant Act of 1984 (43 U.S.C. 619a(a)) (as redesignated as subsection (d)(1)) is amended--

      (1) by striking subparagraph (A) and inserting the following:

      `(A) in accordance with section 5(a) of the Boulder Canyon Project Act (43 U.S.C. 617d(a)), expire September 30, 2067;';

      (2) in the proviso of subparagraph (B)--

        (A) by striking `shall use' and inserting `shall allocate'; and

        (B) by striking `and' after the semicolon at the end;

      (3) in subparagraph (C), by striking the period at the end and inserting a semicolon; and

      (4) by adding at the end the following:

      `(D) authorize and require Western to collect from new allottees a pro rata share of Hoover Dam repayable advances paid for by contractors prior to October 1, 2017, and remit such amounts to the contractors that paid such advances in proportion to the amounts paid by such contractors as specified in section 6.4 of the Implementation Agreement;

      `(E) permit transactions with an independent system operator; and

      `(F) contain the same material terms included in section 5.6 of those long-term contracts for purchases from the Hoover Power Plant that were made in accordance with this Act and are in existence on the date of enactment of the Hoover Power Allocation Act of 2011.'.

    (h) Existing Rights- Section 105(b) of the Hoover Power Plant Act of 1984 (43 U.S.C. 619a(b)) is amended by striking `2017' and inserting `2067'.

    (i) Offers- Section 105(c) of the Hoover Power Plant Act of 1984 (43 U.S.C. 619a(c)) is amended to read as follows:

    `(c) Offer of Contract to Other Entities- If any existing contractor fails to accept an offered contract, the Secretary of Energy shall offer the contingent capacity and firm energy thus available first to other entities in the same State listed in Schedule A and Schedule B, second to other entities listed in Schedule A and Schedule B, third to other entities in the same State which receive contingent capacity and firm energy under subsection (a)(2) of this section, and last to other entities which receive contingent capacity and firm energy under subsection (a)(2) of this section.'.

    (j) Availability of Water- Section 105(d) of the Hoover Power Plant Act of 1984 (43 U.S.C. 619a(d)) is amended to read as follows:

    `(d) Water Availability- Except with respect to energy purchased at the request of an allottee pursuant to subsection (a)(3), the obligation of the Secretary of Energy to deliver contingent capacity and firm energy pursuant to contracts entered into pursuant to this section shall be subject to availability of the water needed to produce such contingent capacity and firm energy. In the event that water is not available to produce the contingent capacity and firm energy set forth in Schedule A, Schedule B, and Schedule D, the Secretary of Energy shall adjust the contingent capacity and firm energy offered under those Schedules in the same proportion as those contractors' allocations of Schedule A, Schedule B, and Schedule D contingent capacity and firm energy bears to the full rated contingent capacity and firm energy obligations.'.

    (k) Conforming Amendments- Section 105 of the Hoover Power Plant Act of 1984 (43 U.S.C. 619a) is amended--

      (1) by striking subsections (e) and (f); and

      (2) by redesignating subsections (g), (h), and (i) as subsections (e), (f), and (g), respectively.

    (l) Continued Congressional Oversight- Subsection (e) of section 105 of the Hoover Power Plant Act of 1984 (43 U.S.C. 619a) (as redesignated by subsection (k)(2)) is amended--

      (1) in the first sentence, by striking `the renewal of'; and

      (2) in the second sentence, by striking `June 1, 1987, and ending September 30, 2017' and inserting `October 1, 2017, and ending September 30, 2067'.

    (m) Court Challenges- Subsection (f)(1) of section 105 of the Hoover Power Plant Act of 1984 (43 U.S.C. 619a) (as redesignated by subsection (k)(2)) is amended in the first sentence by striking `this Act' and inserting `the Hoover Power Allocation Act of 2011'.

    (n) Reaffirmation of Congressional Declaration of Purpose- Subsection (g) of section 105 of the Hoover Power Plant Act of 1984 (43 U.S.C. 619a) (as redesignated by subsection (k)(2)) is amended--

      (1) by striking `subsections (c), (g), and (h) of this section' and inserting `this Act'; and

      (2) by striking `June 1, 1987, and ending September 30, 2017' and inserting `October 1, 2017, and ending September 30, 2067'.

SEC. 3. PAYGO.

    The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled `Budgetary Effects of PAYGO Legislation' for this Act, submitted for printing in the Congressional Record by the Chairman of the Senate Budget Committee, provided that such statement has been submitted prior to the vote on passage.

END