[Senate Report 111-329]
[From the U.S. Government Publishing Office]
Calendar No. 615
111th Congress Report
SENATE
2d Session 111-329
======================================================================
HOOVER POWER ALLOCATION ACT
_______
September 27, 2010.--Ordered to be printed
_______
Mr. Bingaman, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany H.R. 4349]
The Committee on Energy and Natural Resources, to which was
referred the Act (H.R. 4349) to further allocate and expand the
availability of hydroelectric power generated at Hoover Dam,
and for other purposes, having considered the same, reports
favorably thereon without amendment and recommends that the Act
do pass.
Purpose
The purpose of H.R. 4349 is to amend the Hoover Power Plant
Act of 1984 (43 U.S.C. 619) to further allocate and expand the
availability of hydroelectric power generated at Hoover Dam,
and for other purposes.
Background and Need
The Boulder Canyon Project Act of 1928 (Public Law 70-642)
authorized the Secretary of the Interior, among other things,
to construct Hoover Dam and enter into contracts for the sale
of power generated at the dam. In 1984, Congress enacted the
Hoover Power Plant Act (Public Law 98-381) and, among other
things, authorized the Secretary of Energy to allocate power
produced at the dam. The 1984 act recognizes three categories
of power allocations:
``Schedule A'' authorizes contracts to: Metropolitan Water
District of southern California; California cities of Los
Angeles, Glendale, Pasadena, and Burbank; Southern California
Edison Company; Arizona Power Authority; Colorado River
Commission of Nevada; and the City of Boulder City, Nevada.
These contractors represent the original contractors for power
from Hoover Dam.
``Schedule B'' authorizes contracts to: the southern
California cities of Glendale, Pasadena, Burbank, Anaheim,
Azusa, Banning, Colton, Riverside, and Vernon, as well as the
States of Arizona and Nevada.
``Schedule C'' allocates excess power production, if any,
to the States of California, Arizona, and Nevada.
The current power contracts were signed in 1987, and will
expire in 2017. The approximate percentage of power delivered
to each state is: 23.4 percent to Nevada; 19 percent to
Arizona; and 57.6 percent to California.
H.R. 4349 allocates hydroelectric power generated at Hoover
Dam to current power customers in Arizona, Nevada, and
California in accordance with revised Schedules A, B, and C and
creates a new pool of ``Schedule D'' power to be allocated to
Indian tribes and other new entities. Two-thirds of the
Scheduled D pool will be allocated in accordance with
procedures developed by the Western Area Power Administration
and the remaining one-third will be allocated in equal shares
by the Arizona Power Authority for new contractors in Arizona,
the Colorado River Commission of Nevada for new contractors in
Nevada, and the Western Area Power Administration for new
contractors in California.
Legislative History
H.R. 4349 was introduced by Representative Napolitano on
December 16, 2009 and passed the House of Representatives by
voice vote on June 8, 2010. Companion legislation, S. 2891, was
introduced in the Senate by Senator Reid on December 16, 2009.
The Subcommittee on Water and Power held a hearing on H.R. 4349
and S. 2891 on June 9, 2010. The Committee on Energy and
Natural Resources considered H.R. 4349 at its business meeting
on July 21, 2010, and ordered it favorably reported without
amendment.
Committee Recommendation
The Committee on Energy and Natural Resources, in open
business session on July 21, 2010, by voice vote of a quorum
present, recommends that the Senate pass H.R. 4349.
Section-by-Section Analysis
Section 1 sets forth the short title as the ``Hoover Power
Allocation Act of 2010''.
Section 2(a-c) amends section 105(a)(1) of the Hoover Power
Plant Act of 1984 (43 U.S.C. 619a) (Hoover Power Act) by
specifying that the new contracts for the allocation of power
as provided in Schedules A, B, and C shall commence on October
1, 2017. Section 2 also designates specific, revised
allocations to the existing contractors and States.
Section 2(d) amends section 105(a) of the Hoover Power Act
by adding a new subsection that establishes a new contingent
capacity and firm energy pool designated as Schedule D for
delivery beginning on October 1, 2017. Section 2(d) also
specifies that the Western Area Power Administration (Western)
shall allocate 66.7 percent of the Schedule D contingent
capacity and firm energy to new entities or Indian tribes
within 36 months of enactment of this Act. Within 1 year of
enactment, the Secretary of Energy shall make 33.3 percent of
the Schedule D contingent capacity and firm energy in
equalallocations, available for delivery commencing October 1, 2017 to
the Arizona Power Authority for new allottees in the State of Arizona;
the Colorado River Commission of Nevada for new allottees in the State
of Nevada; and Western for new allottees with the State of California,
provided that Western shall have thirty-six months to complete such
allocation. New Schedule D contractors must execute the Boulder Canyon
Project Implementation Agreement. Contracts must also include a
provision requiring new contractors to pay a proportionate share of
their State's contribution to the cost of the Lower Colorado River
Multi-Species Conservation Program. Any of the 66.7 percent of the
Schedule D contingent capacity and firm energy that is not allocated
and placed under contract by October 1, 2017 will be returned in the
same proportion to the contractors in Schedule A and Schedule B. 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.
Sections 2(e) and 2(f) make technical and conforming
changes to the Hoover Power Act.
Section 2(g) amends the Hoover Power Act to specify the
expiration date for the new allocation contracts as September
30, 2067. Western is also authorized and required to collect a
pro rata share of Hoover Dam repayable advances from new
allottees prior to October 1, 2017. Further, transactions with
an independent system operator are permitted.
Section 2(h) amends section 105(b) of the Hoover Power Act
to change the year ``2017'' to ``2067''.
Section 2(i) amends section 105(c) of the Hoover Power Act
to specify the procedures the Secretary of Energy is to follow
in order to make available the contingent capacity and firm
energy if an existing contractor fails to accept an offered
contract.
Section 2(j) amends the Hoover Power Act by stating that
the obligation of the Secretary to Energy to deliver contingent
capacity and firm energy is subject to the availability of the
water needed to produce the contingent capacity and firm
energy.
Section 2(k) repeals sections 105(e) and (f) of the Hoover
Power Act.
Section 2(l) provides for continued congressional oversight
regarding the terms and conditions of the governing contracts
for power generated at Hoover Dam until September 30, 2067.
Sections 2(m) and 2(n) make conforming changes to the
Hoover Power Act.
Section 3 sets forth the requirements for compliance with
the Statutory Pay-As-You-Go Act of 2010.
Cost and Budgetary Considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
H.R. 4349--Hoover Power Allocation Act of 2010
H.R. 4349 would update the statutory allocation of electric
power generated at the Hoover Dam among various users. The
current allocation expires at the end of fiscal year 2017. The
legislation would increase the amount of electricity to be
marketed by the Western Area Power Administration (WAPA) and
would allocate much of the dam's currently unallocated
electricity to Native American Indian tribes and other
entities. The revised allocations would remain in effect from
2017 through 2067. Based on information from WAPA, CBO
estimates that implementing this act would have a negligible
effect on net direct spending and spending subject to
appropriation.
In the absence of this legislation, CBO expects that WAPA
would allocate the electricity from the Hoover Dam by
regulation. CBO estimates that any differences between the
electricity allocation under H.R. 4349 and the allocations
developed under such regulations would have a negligible effect
on offsetting receipts (a credit against direct spending) from
electricity sales because the agency is required by law to keep
electric rates as low as possible while recovering all costs of
generation and marketing over time. CBO also estimates that
implementing the act would have no significant impact on WAPA's
administrative costs, which are funded by appropriations and
offset by proceeds from the sale of electricity.
The Statutory Pay-As-You-Go Act of 2010 establishes budget
reporting and enforcement procedures for legislation affecting
direct spending or revenues. The net changes in outlays that
are subject to those pay-as-you-go procedures are shown in the
following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4349 AS ORDERED REPORTED BY THE SENATE COMMITTEE ON ENERGY AND NATURAL RESOURCES ON JULY 21, 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------------------------------------------------------
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010-2015 2010-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact....................... 0 0 0 0 0 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------------------------------------------------------------
H.R. 4349 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on State, local, or tribal governments.
On May 20, 2010, CBO transmitted a cost estimate for H.R.
4349, as ordered reported by the House Committee on Natural
Resources. The two versions of the legislation are similar and
the CBO cost estimates are the same.
The CBO staff contact for this estimate is Kathleen Gramp.
The estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out H.R. 4349.
The bill is not a regulatory measure in the sense of
imposing Government-established standards or significant
economic responsibilities on private individuals and
businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of H.R. 4349 as ordered reported.
Congressionally Directed Spending
H.R. 4349, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
Executive Communications
Statement of Timothy J. Meeks, Administrator, Western Area Power
Administration, Department of Energy
Madam Chairwoman and Members of the Subcommittee, I am
Timothy J. Meeks, Administrator of the United States Department
of Energy's Western Area Power Administration (Western). I am
pleased to be here today to discuss S. 2891, the Hoover Power
Allocation Act of 2009. This legislation seeks to amend the
Hoover Power Plant Act of 1984. The legislation proposes
revised allocations of the generation capacity and energy from
the Hoover Dam power plant, a feature of the Boulder Canyon
Project (BCP), after the existing contracts expire on September
30, 2017.
Western's mission is to market and deliver reliable, cost-
based hydroelectric power from facilities such as Hoover Dam.
Hoover Dam was authorized and constructed in accordance with
the Boulder Canyon Project Act of 1928. Pursuant to this Act,
the Secretary of the Interior was authorized to contract for
the sale of generation based upon general regulations as he may
prescribe. Subsequent power sales contracts were executed that
committed Hoover power through May 31, 1987. With the passage
of the Hoover Power Plant Act of 1984, Congress authorized the
Secretary of the Interior to implement an uprating program,
which increased the generation capacity of the Hoover Dam
facilities, to make additional facility modifications, and to
resolve issues over the disposition of Hoover power post-1987.
In the 1984 Act, Congress directed the Secretary of Energy to
offer renewal contracts to existing contractors and provided
guidance for marketing the capacity gained through the uprating
program.
Western proceeded to market Hoover Dam power and entered
into 30-year term contracts with the current Hoover contractors
in accordance with the Hoover Power Plant Act of 1984 and
Western's Conformed General Consolidated Power Marketing
Criteria. This process resulted in the allocation of 1,951
megawatts of contingent capacity with an associated 4,527,001
megawatt-hours of firm energy. Contingent capacity is capacity
that is available on an as-available basis, while the firm
energy entails Western's assurance to deliver.
The Hoover power plant is a significant hydroelectric power
resource in the desert southwest with a maximum rated capacity
of 2,074 megawatts. Under existing Federal law and policy,
Western markets Hoover power at cost. Hoover power is
hydropower and is considered ``clean energy'' with a minimal
carbon footprint. The Hoover Dam power plant is able to ramp up
and down rapidly and is used by contractors for various power-
related ancillary services. For these reasons, Hoover power is
an extremely valuable resource for power contractors in the
southwestern United States.
The existing power sales contracts between Western and the
contractors will expire on September 30, 2017. As this
expiration date becomes more prominent on the planning horizon,
efforts have progressed among both Federal and non-Federal
sectors to determine the allocation of Hoover Dam power after
2017.
In accordance with policy and existing Federal law,
Western's post-2017 power allocation effort is composed of a
series of proposals introduced to the public through Federal
Register notices, public information forums and public comment
forums. Western makes policy decisions only after all
interested parties have been provided ample opportunity to be
engaged in the process and public input has been carefully
considered to develop new Hoover Dam allocations that are in
the public's best interest and provide the most widespread use
of this Federal resource.
Western's public process to allocate Hoover Dam electricity
was initiated on November 20, 2009, in a Federal Register
notice that proposes several key aspects of the allocation
effort. Among other things, this Federal Register notice
proposes the application of Western's Energy Planning and
Management Program, extends a major percentage of the
marketable resource to existing contractors, reserves an
approximate 5 percent resource pool to be allocated to new
contractors, and provides for 30-year contract terms. Western
conducted three public information forums from December 1-3,
2009. These public information forums were well attended by
current customers and interested parties and engaged the
attendees through question and answer sessions. Public comment
forums were held from January 19-21, 2010. Interested parties
were provided an opportunity to submit comments related to
Western's proposals contained in the November Federal Register
notice. The comment period was extended from January 29, 2010,
to September 30, 2010, via a Federal Register notice dated
April 16, 2010. Western is in the process of reviewing the
submissions received to date. Depending on the public input
received, Western projects that some initial decisions will be
made later this year. In the event that a resource pool is
established, Western will conduct a public process to determine
what marketing criteria would be applicable to the disposition
of the resource pool. Western projects that final allocations
will be determined and contracts executed by the spring of
2013, giving other entities time to plan prior to the
expiration of the contracts in 2017.
Western has reviewed S. 2891. There are several
similarities between the draft legislation and Western's
initial proposals brought forward in the November Federal
Register notice, and there are some distinct departures. To
provide background that may be useful to the Subcommittee
members as this bill is considered, I'll address some of these
differences in my comments.
All of Western's allocation efforts are open to public
participation and conducted in accordance with the
Administrative Procedures Act. At each stage of the process,
Western proposes actions and/or policy to be considered and is
open for public comment and input. Western believes soliciting
and integrating the public input into policy decisions allows
Western to progress to results that are in the public's best
interest and lead to the most widespread use of this resource.
S. 2891 directs Western to allocate certain amounts of
Hoover power within eighteen (18) months after enactment. Based
on historical practice and in review of Western's marketing
project plans, an 18-month time frame may not be sufficient to
thoroughly solicit and integrate public input into our
marketing criteria and final allocations. Western supports the
action that the House of Representatives Committee on Natural
Resources took on H.R. 4349, which revised the amount of time
allowed for the allocation of power to new customers from 18
months to thirty-six (36) months after enactment.
Western has 15 current contractors who receive an
allocation of Hoover power. Two of those existing contractors
are the Colorado River Agency (CRC) and the Arizona Power
Authority (APA). APA and CRC sub-allocate their allocations to
customers under State prescribed guidelines and regulations.
Both S. 2891 and Western's administrative effort propose an
amount of resource to be allocated to new customers. Western's
process affords the opportunity of full public input and
ensures all interested parties are considered in the power's
allocation. Western supports the House of Representatives
Committee on Natural Resources elimination of language in H.R.
4349 that would have required a state role in developing
criteria associated with the allocation of power to new
customers. This language potentially restricted the open public
process for creating marketing criteria for those power
allocations. Western has received numerous written comments and
statements from Native American tribes expressing concern that
their interests have not yet been fully vetted and considered.
In recent history, tribes have been active in Western's
remarketing efforts, and one goal of Western's Strategic Plan
is to seek partnerships with tribes on numerous initiatives. I
believe that soliciting input from tribes and other entities
that do not have an allocation of Hoover power is in the public
interest. Western has identified 59 federally recognized Native
American Tribes in the BCP marketing area and is in the process
of ensuring they are afforded an opportunity to participate in
the public process. Western supports the revision made to the
House version of this bill that expressly provides for the
tribes to contract directly with Western to obtain a Hoover
allocation.
S. 2891 would direct that Hoover's full maximum rating of
2,074 megawatts of capacity be allocated to Hoover customers in
a multi-faceted approach. As described in Western's November
20, 2009, Federal Register notice, Western proposes to market
2,044 megawatts of contingent capacity; 30 megawatts below the
maximum rating. The retention of 30 megawatts of contingent
Hoover Dam capacity for use by Western for project integration
purposes would assist in providing the tools needed to meet our
mission and statutory requirement of delivering reliable
Federal hydro-generation. Western manages multiple federally
owned generation and transmission projects in the Desert
Southwest on a minute-by-minute basis. While these projects are
financially segregated, they are operated as an integrated
system. This 30-megawatt capacity to be held by the Federal
Government would provide significant benefit to the operation
of the integrated projects and the Western Area Lower Colorado
balancing authority that Western operates. Should Western be
unable to retain approximately 30 megawatts, Western expects to
procure replacement power from the market at a higher cost, if
it is available. These higher costs would in turn be passed
through to Western's customers in the form of higher rates.
S. 2891 would direct that the existing contractual amounts
totaling 4,527,001 megawatt-hours annually be allocated. In
consultation with the Bureau of Reclamation (Reclamation) and
in review of the most recent hydrologic studies, Western
observed and proposed that 4,116,000 megawatt-hours would
better align with the actual availability of the resource.
Western's historical practice is to market an amount of
generation that is based upon projected available generation.
Remarketing the existing 4,527,001 megawatt-hours is possible;
however, the 4,527,001 megawatt-hour level of generation has
only been achieved a few times in the last 30 years.
Reclamation's forecast studies exhibit that this level of
generation would be fairly improbable.
S. 2891 expressly requires that each contract offered to a
new allottee for Hoover Dam power should require the new
allottee to execute the Boulder Canyon Project Implementation
Agreement Contract No. 95-PAO-10616. Western finds significant
value in the provisions and results of the Implementation
Agreement. However, this agreement was constructed for unique
circumstances that existed in 1994. Should we retain this
feature, I recommend that the current Implementation Agreement
be evaluated and potentially revised to accommodate current
conditions. We support the universal benefits achieved by the
Implementation Agreement and will work with our customers to
determine the appropriate documentation to meet all of our
customers' needs; both current and future.
S. 2891 expressly requires that each contract offered to a
new allottee for Hoover Dam power includes a provision
requiring the new allottee to pay a proportional share of its
State's funding contribution for the Lower Colorado River
Multi-Species Conservation Program, known as the LCR MSCP.
The LCR MSCP is a 50-year, multi-stakeholder, Federal and
non-Federal partnership, responding to the need to balance the
use of lower Colorado River water resources and the
conservation of native species and their habitats in compliance
with the Endangered Species Act (ESA). The LCR MSCP is a
comprehensive approach to species protection developed after
nearly a decade of work. This program is funded on a cost-share
basis comprised of 50-percent Federal and 50-percent non-
Federal. The States of Arizona, California, and Nevada have
worked internally with water and power customers to fund each
State's respective share. S. 2891 recognizes these funding
requirements and obligates new power customers to contribute to
this funding in a proportional manner. Supporters of S. 2891
note that the 50-year obligation of the LCR MSCP is, in part,
reason to proceed with 50-year Hoover power supply contracts.
Western's position is that the 50-year LCR MSCP term need not
coincide with the Hoover Dam power sales contracts' term. The
adoption of a 50-year contract term could potentially exclude
evolving classes of customers in decades to come. The modern
day electrical industry is dynamic in its regulations,
technologies, operations and participants. The landscape of
potential customers in decades to come has the capability to
yield new prospective customers, and we strive to meet the
needs of all our customers; existing and future.
Western respectfully recognizes that our administrative
process is not the exclusive means of allocating Hoover power.
I would welcome the opportunity to work with this Subcommittee
to address the technical concerns I have raised as work
continues on this legislation. In the absence of congressional
action, Western will uphold its authority and responsibility to
market Hoover power consistent with historical statutes and in
concert with the rules and regulations as the Secretary of
Energy prescribes.
This concludes my prepared remarks. I would be pleased to
answer any questions you or Members of the Subcommittee might
have.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill H.R. 4349, as ordered reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italic, existing law in
which no change is proposed is shown in roman):
THE HOOVER POWER PLANT ACT OF 1984
(August 17, 1984, Public Law 98-381, 98 Stat. 1333, 43 U.S.C. 619; as
amended by the Act of October 24, 1992, Public Law 102-486, 106 Stat,
2776)
AN ACT To authorize the Secretary of the Interior to construct,
operate, and maintain certain facilities 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. This Act may be cited as the ``Hoover Power
Plant Act of 1984''.
TITLE I
* * * * * * *
Sec. 105. (a)(1) The Secretary of Energy shall offer:
(A) To each contractor for power generated at Hoover
Dam a [renewal] contract for delivery commencing [June
1, 1987] October 1, 2017, of the amount of capacity and
firm energy specified for that contractor in the
following table:
[SCHEDULE A
[LONG TERM CONTINGENT CAPACITY AND ASSOCIATED FIRM ENERGY RESERVED FOR
RENEWAL CONTRACT OFFERS TO CURRENT BOULDER CANYON PROJECT CONTRACTORS
----------------------------------------------------------------------------------------------------------------
Contingent Firm energy (thousands of kWh)
[Contractor capacity -----------------------------------------
(kW) Summer Winter Total
----------------------------------------------------------------------------------------------------------------
Metropolitan Water District of Southern California...... 247,500 904,382 387,592 1,291,974
City of Los Angeles..................................... 490,875 488,535 209,658 698,193
Southern California Edison Company...................... 277,500 175,486 75,208 250,694
City of Glendale........................................ 18,000 47,398 20,313 67,711
City of Pasadena........................................ 11,000 40,655 17,424 58,079
City of Burbank......................................... 5,125 14,811 6,347 21,158
Arizona Power Authority................................. 189,000 452,192 193,797 645,989
Colorado River Commission of Nevada..................... 189,000 452,192 193,797 645,989
United States, for Boulder City......................... 20,000 56,000 24,000 80,000
-------------------------------------------------------
Totals.............................................. 1,448,000 2,631,651 1,128,136 3,759,787]
----------------------------------------------------------------------------------------------------------------
SCHEDULE A
LONG-TERM SCHEDULE A CONTINGENT CAPACITY AND ASSOCIATED FIRM ENERGY FOR
OFFERS OF CONTRACTS TO BOULDER CANYON PROJECT CONTRACTORS
----------------------------------------------------------------------------------------------------------------
Contingent Firm energy (thousands of kWh)
Contractor capacity -----------------------------------------
(kW) 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
----------------------------------------------------------------------------------------------------------------
[(B) To purchasers in the States of Arizona, Nevada
and California eligible to enter into such contracts
under section 5 of the Boulder Canyon Project Act,
contracts for delivery commencing June 1, 1987, or as
it thereafter becomes available, of capacity resulting
from the uprating program and for delivery commencing
June 1, 1987, of associated firm energy as specified in
the following table:
[SCHEDULE B
[CONTINGENT CAPACITY RESULTING FROM THE UPRATING PROGRAM AND ASSOCIATED
FIRM ENERGY
----------------------------------------------------------------------------------------------------------------
Firm energy (thousands of kWh)
[State Contingent -----------------------------------------
capacity Summer Winter Total
----------------------------------------------------------------------------------------------------------------
Arizona................................................. 188,000 148,000 64,000 212,000
California.............................................. 127,000 99,850 43,364 143,214
Nevada.................................................. 188,000 288,000 124,000 412,000
Totals.............................................. 508,000 535,850 231,364 767,214
----------------------------------------------------------------------------------------------------------------
[Provided, however, That in the case of Arizona and
Nevada, such contracts shall be offered to the Arizona
Power Authority and the Colorado River Commission of
Nevada, respectively, as the agency specified by State
law as the agent of such State for purchasing power
from the Boulder Canyon project: Provided further, That
in the case of California, no such contract under this
subparagraph (B) shall be offered to any purchaser who
is offered a contract for capacity exceeding 20,000
kilowatts under subparagraph (A) of this paragraph.]
(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
----------------------------------------------------------------------------------------------------------------
Contingent Firm energy (thousands of kWh)
Contractor capacity -----------------------------------------
(kW) 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) To the Arizona Power Authority and the Colorado
River Commission of Nevada and to purchasers in the
State of California eligible to enter into such
contracts under section 5 of the Boulder Canyon Project
Act, contracts for delivery commencing [June 1, 1987]
October 1, 2017, of such energy generated at Hoover Dam
as is available respectively to the States of Arizona,
Nevada, and California in excess of 4,501.001 million
kilowatthours in any year of operation (hereinafter
called excess energy) in accordance with the following
table:
[SCHEDULE C
[EXCESS ENERGY
------------------------------------------------------------------------
[Priority of entitlement to excess energy State
------------------------------------------------------------------------
[First: Meeting Arizona's first priority Arizona
right to delivery of excess energy which
is equal in each year of operation to 200
million kilowatthours: Provided, however,
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 the amount of 200
million kilowatthours is not generated,
less amounts of excess energy delivered.
Second: Meeting Hoover Dam contractual ............................
obligations under schedule A of section
105(a)(1)(A) and under schedule B of
section 105(a)(1)(B) not exceeding 26
million kilowatthours in each year of
operation.
Third: Meeting the energy requirements of Arizona, Nevada, California]
the three States, such available excess
energy to be divided equally among the
States.
------------------------------------------------------------------------
SCHEDULE C
EXCESS ENERGY
------------------------------------------------------------------------
Priority of entitlement to excess energy State
------------------------------------------------------------------------
First: Meeting Arizona's first priority Arizona
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.
Second: Meeting Hoover Dam contractual Arizona, Nevada, and
obligations under Schedule A of California
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..
Third: Meeting the energy requirements of Arizona, Nevada, and
the three States, such available excess California
energy to be divided equally among the
States.
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(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 2010, 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
----------------------------------------------------------------------------------------------------------------
Contingent Firm energy (thousands of kWh)
State capacity -----------------------------------------
(kW) 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 2010, 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 2010, 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.
[(2)] (3) The total obligation of the Secretary of Energy
to deliver firm energy pursuant to [schedule A of section
105(a)(1)(A) and schedule B of section 105(a)(1)(B)] paragraphs
(1)(A), (1)(B), and (2) is 4,527.001 million kilowatthours in
each year of operation. To the extent that the actual
generation at Hoover Powerplant in [any] each year of operation
(less deliveries thereof to Arizona required by its first
priority under [schedule C] Schedule C of section 105(a)(1)(C)
whenever actual generation in any year of operation is in
excess of 4,501.001 million kilowatthours) is less than
4,527.001 million kilowatthours, such deficiency shall be borne
by the holders of contracts under said [schedules A and B]
Schedules A, B, and D in the ratio that the sum of the
quantities of firm energy to which each contractor is entitled
pursuant to said schedules bears to 4,527.001 million
kilowatthours. At the request of any such contractor, the
Secretary of Energy will purchase energy to meet that
contractor's deficiency at such contractor's expense.
[(3)] (4) Subdivision E of the ``General Consolidated Power
Marketing Criteria or Regulations for Boulder City Area
Projects'' published in the Federal Register May 9, 1983 (48
Federal Register commencing at 20881), hereinafter referred to
as the ``Criteria'' or as the ``Regulations'' shall be deemed
to have been modified to conform to this section. The Secretary
of Energy shall cause to be included in the Federal Register a
notice conforming the text of said Regulations to such
modifications.]
(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 2010. The Secretary of Energy
shall cause to be included in the Federal Register a notice
conforming the text of the regulations to such modifications.
[(4)] (5) Each contract offered under subsection (a)(1) of
this section shall:
[(A) expire September 30, 2017;]
(A) in accordance with section 5(a) of the Boulder
Canyon Project Act (43 U.S.C. 617d(a)), expire
September 30, 2067;
(B) not restrict use to which the capacity and energy
contracted for by the Metropolitan Water District of
Southern California may be placed within the State of
California: Provided, That to the extent practicable
and consistent with sound water management and
conservation practice, the Metropolitan Water District
of Southern California [shall use] shall allocate such
capacity and energy to pump available Colorado River
water prior to using such capacity and energy to pump
California State water project water; [and]
(C) conform to the applicable provisions of
subdivison E of the Criteria, commencing at 48 Federal
Register 20881, modified as provided in this section.
To the extent that said provisions of the Criteria, as
so modified, are applicable to contracts entered into
under this section, those provisions are hereby
ratified[.];
(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
2010.
(b) Nothing in the Criteria shall be construed to prejudice
any rights conferred by the Boulder Canyon Project Act, as
amended and supplemented, on the holder of a contract described
in subsection (a) of this section not in default thereunder on
September 30, [2017] 2067.
[(c)(1) The Secretary of Energy shall not execute a
contract described in subsection (a)(1)(A) of this section with
any entity which is a party to the action entitled the ``State
of Nevada, et al. against the United States of America, et
al.'' in the United States District Court for the District of
Nevada, case numbered CV LV '82 441 RDF, unless that entity
agrees to file in that action a stipulation for voluntary
dismissal with prejudice of its claims, or counterclaims, or
crossclaims, as the case may be, and also agrees to file with
the Secretary a document releasing the United States, its
officers and agents, and all other parties to that action who
join in that stipulation from any claims arising out of the
disposition under this section of capacity and energy from the
Boulder Canyon project. The Attorney General shall join on
behalf of the United States, its officers and agents, in any
such voluntary dismissal and shall have the authority to
approve on behalf of the United States the form of each
release.
[(2) If after a reasonable period of time as determined by
the Secretary, the Secretary is precluded from executing a
contract with an entity by reason of paragraph (1) of this
subsection, the Secretary shall offer the capacity and energy
thus available to other entities in the same State eligible to
enter into such contracts under section 5 of the Boulder Canyon
Project Act.]
(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.
[(d) The uprating program authorized under section 101(a)
of this Act shall be undertaken with funds advanced under
contracts made with the Secretary of the Interior by non-
Federal purchasers described in subsection (a)(1)(B) of this
section. Funding provided by non-Federal purchasers shall be
advanced to the Secretary of the Interior pursuant to the terms
and conditions of such contracts.]
(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.
[(e) Notwithstanding any other provisions of the law, funds
advanced by non-Federal purchasers for use in the uprating
program shall be deposited in the Colorado River Dam Fund and
shall be available for the uprating program.]
[(f) Those amounts advanced by non-Federal purchasers shall
be financially integrated as capital costs with other project
costs for rate-setting purposes, and shall be returned to those
purchasers advancing funds throughout the contract period
through credits which include interest costs incurred by such
purchasers for funds contributed to the Secretary of the
Interior for the uprating program.]
[(g)] (e) The provisions of this section constitute an
exercise by the Congress of the right reserved by it in section
5(b) of the Boulder Canyon Project Act, as amended and
supplemented, to prescribe terms and conditions for [the
renewal of] contracts for electrical energy generated at Hoover
Dam. This section constitutes the exclusive method for
disposing of capacity and energy from Hoover Dam for the period
beginning [June 1, 1987, and ending September 30, 2017] October
1, 2017, and ending September 30, 2067.
[(h)] (f)(1) Notwithstanding any other provision of law,
any claim that the provisions of subsection (a) of this section
violates any rights to capacity or energy from the Boulder
Canyon project is barred unless the complaint is filed within
one year after the date of enactment of [this Act] the Hoover
Power Allocation Act of 2010 in the United States Claims Court
which shall have exclusive jurisdiction over this action. Any
claim that actions taken by any administrative agency of the
United States violates any right under this title or the
Boulder Canyon Project Act or the Boulder Canyon Project
Adjustment Act is barred unless suit asserting such claim is
filed in a Federal court of competent jurisdiction within one
year after final refusal of such agency to correct the action
complained of.
(2) Any contract entered into pursuant to section 105 or
section 107 of this Act shall contain provisions by which any
dispute or disagreement as to interpretation or performance of
the provisions of this title or of applicable regulations or of
the contract may be determined by arbitration or court
proceedings. The Secretary of Energy or the Secretary of the
Interior, as the case may be, if authorized to act for the
United States in such arbitration or court proceedings and,
except as provided in paragraph (1) of this subsection,
jurisdiction is conferred upon any district court of the United
States of proper venue to determine the dispute.
[(i)] (g) It is the purpose of [subsections (c), (g), and
(h) of this section] this Act to ensure that the rights of
contractors for capacity and energy from the Boulder Canyon
project for the period beginning [June 1, 1987, and ending
September 30, 2017] October 1, 2017, and ending September 30,
2067, will vest with certainty and finality.
* * * * * * *