[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1638 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1638

 To provide a more effective, efficient, and responsive Department of 
                                Energy.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             November 8 (legislative day, November 2), 1993

 Mr. Johnston introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To provide a more effective, efficient, and responsive Department of 
                                Energy.

    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 referred to as the ``Department of Energy Reform 
and Savings Act of 1993''.

      TITLE I--ALASKA POWER ADMINISTRATION SALE AUTHORIZATION ACT

SEC. 101. SHORT TITLE.

    This subtitle may be cited as the ``Alaska Power Administration 
Sale Authorization Act''.

SEC. 102. SALE OF SNETTISHAM AND EKLUTNA HYDROELECTRIC PROJECTS.

    (a) The Secretary of Energy may sell the Snettisham Hydroelectric 
Project (referred to in this subtitle as ``Snettisham'') to the State 
of Alaska Power Authority (now known as the Alaska Industrial 
Development and Export Authority, and referred to in this subtitle as 
the ``Authority''), or its successor, in accordance with the February 
10, 1989, Snettisham Purchase Agreement between the Alaska Power 
Administration of the United States Department of Energy and the 
Authority.
    (b) The Secretary of Energy may sell the Eklutna Hydroelectric 
Project (referred to in this subtitle as ``Eklutna'') to the 
Municipality of Anchorage doing business as Municipal Light and Power, 
the Chugach Electric Association, Inc., and the Matanuska Electric 
Association, Inc. (referred to in this subtitle as ``Eklutna 
Purchasers'') in accordance with the August 2, 1989, Eklutna Purchase 
Agreement between the United States Department of Energy and the 
Eklutna Purchasers.
    (c) The heads of other affected Federal departments and agencies, 
including the Secretary of the Interior, shall assist the Secretary of 
Energy in implementing the sales authorized by this Act.
    (d) The Secretary of Energy shall deposit sale proceeds in the 
Treasury of the United States to the credit of miscellaneous receipts.
    (e) There are authorized to be appropriated such sums as are 
necessary to prepare or acquire Eklutna and Snettisham assets for sale 
and conveyance, such preparations to provide sufficient title to ensure 
the beneficial use, enjoyment, and occupancy to the purchasers of the 
assets to be sold.
    (f) No later than one year after both of the sales authorized in 
section 102 have occurred, as measured by the Transaction Dates 
stipulated in the Purchase Agreements, the Secretary of Energy shall--
            (1) complete the business of, and close out, the Alaska 
        Power Administration; and
            (2) prepare and submit to Congress a report documenting the 
        sales.

SEC. 103. ASSESSMENT OF ALTERNATIVE OPTIONS.

    Before taking any action authorized in section 102, the Secretary 
shall assess the feasibility of alternative options for maximizing the 
return to the Treasury from the sale of the Alaska Power Marketing 
Administration.

         TITLE II--FEDERAL-PRIVATE COGENERATION OF ELECTRICITY

SEC. 201. FEDERAL-PRIVATE COGENERATION OF ELECTRICITY.

    Section 804(2)(B) of the National Energy Conservation Policy Act 
(42 U.S.C. 8287c(2)(B)) is amended by striking ``, excluding any 
cogeneration process for other than a federally owned building or 
buildings or other federally owned facilities.''.

         TITLE III--POWER MARKETING ADMINISTRATION DEBT BUYOUT

          PART 1--BONNEVILLE POWER ADMINISTRATION DEBT BUYOUT

SEC. 301. SHORT TITLE.

    This part may be cited as the ``Bonneville Power Administration 
Repayment Bonds Act''.

SEC. 302. SALE OF BONDS.

    Notwithstanding any other law and without fiscal year limitation--
            (1) in addition to the authority in section 13 of the 
        Federal Columbia River Transmission System Act (16 U.S.C. 
        838k), the Administrator may issue and sell bonds, notes, and 
        other evidences of indebtedness (referred to in this part as 
        ``Bonds'') in the manner and amounts the Administrator, 
        considers appropriate in the name of and for and on behalf of 
        the Bonneville Power Administration, to--
                    (A) satisfy the unpaid repayment obligation 
                associated with the appropriated capital investment 
                made in the Federal Columbia River Power System before 
                the issuance of the Bonds authorized under this part 
                takes place, but not including Federal irrigation 
                investments assigned to be repaid from power revenues; 
                and
                    (B) refund Bonds;
            (2) the Administrator shall transfer, and the Secretary of 
        the Treasury shall accept for the account of the General Fund, 
        the net proceeds of the Bonds referred to in paragraph (1)(A), 
        and when the Secretary of the Treasury receives the net 
        proceeds, the repayment obligation associated with the part of 
        the appropriated capital investment in the Federal Columbia 
        River Power System covered by the Bonds is considered to be 
        satisfied forever;
            (3) the Secretary of the Treasury, in consultation with the 
        Administrator, shall establish the amount of proceeds needed to 
        satisfy the unpaid repayment obligation associated with the 
        part of the capital investment referred to in paragraph (1)(A) 
        as the amount necessary to increase the sum of the net proceeds 
        and the discounted present value of the remaining Federal debt 
        service of the Federal Columbia River Power System by $100 
        million relative to the discounted present value of the total 
        Federal debt service of the Federal Columbia River Power system 
        as provided by the Administrator based upon the repayment 
        schedule that would have been paid under repayment policy and 
        practices in effect on September 1, 1993;
            (4) to determine the discounted present values in paragraph 
        (3), the Secretary of the Treasury shall use discount rates 
        based on the secondary market's average yield for the most 
        recently issued 30-year Treasury bonds when the Bonds 
        authorized in paragraph (1) are issued;
            (5) these Bonds shall be in the forms and denominations, 
        bear the maturities (without respect to the remaining average 
        service life of the capital investment associated with the 
        repayment obligation satisfied by the Bonds issued under this 
        part), be issued and sold at the times, prices, discounts, and 
        yields, and be subject to other terms and conditions (including 
        variable rates) as the Administrator considers appropriate;
            (6) under section 2(f) of the Bonneville Project Act of 
        1937 (16 U.S.C. 832a(f)) and this part, the Administrator may 
        enter into any contract that the Administrator considers 
        necessary for the purposes of carrying out this part including, 
        but not limited to, contracts for--
                    (A) the payment of the principal, interest, and 
                premium, if any, on Bonds issued under this part;
                    (B) the purchase or redemption of those Bonds;
                    (C) the payment of costs and expenses incidental to 
                this payment, purchase, and redemption; or
                    (D) the creation of reserve and other funds to be 
                held by a trustee, which funds the Administrator may 
                pledge exclusively to pay those costs for which the 
                funds were created and establish a lien on the funds in 
                favor of the beneficiaries of the funds under any 
                indenture, resolution, or other agreement entered into 
                in connection with the issuance of Bonds under this 
                part;
            (7) Bonds issued under this part--
                    (A) shall be issuable and payable through the 
                Federal wire system;
                    (B) are negotiable instruments that may be accepted 
                as security for all fiduciary, trust, and public funds, 
                the investment or deposit of which is under the 
                authority or control of any officer or agency of the 
                United States;
                    (C) may be held without limitation by national 
                banks;
                    (D) qualify as legal investments for banks, savings 
                and loan institutions, and credit unions; and
                    (E) are eligible collateral for Federal advances 
                and discounts, for deposits of the United States, and 
                the Treasury tax and loan accounts;
            (8) Bonds issued under this part are not intended to be and 
        are not secured by the full faith and credit of the United 
        States;
            (9) Bonds issued under this part are exempt both as to 
        principal and interest from all taxation by any State or local 
        taxing authority, except estate, inheritance, and gift taxes;
            (10) Bonds issued under this part shall contain a recital 
        that they are issued under this part and this recital is 
        conclusive evidence of the regularity of the issuance and sale 
        of the Bonds and their validity;
            (11) the Bonds issued under this part, all receipts of the 
        Secretary of the Treasury under this part, any portion of the 
        fund established under the Federal Columbia River Transmission 
        System Act (16 U.S.C. 838 et seq.) related to these Bonds, all 
        receipts and disbursements of that fund related to these Bonds, 
        and all expenditures by the Administrator related to these 
        Bonds--
                    (A) are exempt from any general budget limitation 
                imposed by statute on expenditures and net lending 
                (budget outlays) of the United States Government, 
                sequestration order, or discretionary spending limit;
                    (B) are exempt from any order issued pursuant to 
                sections 251, 252, or 253 of the Balanced Budget and 
                Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et 
                seq.); and
                    (C) are not subject to apportionment under 
                subchapter II of chapter 15 of title 31, United States 
                Code;
            (12) in all future contracts for the sale of electric 
        power, transmission, or other services, the Administrator shall 
        include provisions specifying that after the repayment 
        obligation is fully and forever satisfied, the Administrator's 
        rates for electric power, transmission, or other services shall 
        not include any form of economic rent to be returned to the 
        United States Government, including, without limitation, a 
        falling water charge or any other fee for use of Federal 
        facilities for power generation or transmission, that relates 
        to a project, facility, or separable unit of a project or 
        facility associated with the satisfied repayment obligation, 
        other than a charge necessary to repay the new indebtedness 
        incurred under this part. Amounts provided under section 1304 
        of title 31, United States Code, shall be the sole source for 
        payment of a judgment against the Administrator or the United 
        States on a claim for a violation of the contract provision 
        required by this paragraph;
            (13) the Administrator shall offer to amend the 
        Administrator's existing contracts for the sale of electric 
        power, transmission, or other services to include the 
        provisions described in paragraph (12); and
            (14) the Administrator shall consult with the Secretary of 
        the Treasury regarding the timing and structure of the bonds 
        issued under this part.

SEC. 303. PAYMENT OF BOND COSTS.

    Section 11(b)(6) of the Federal Columbia River Transmission System 
Act (16 U.S.C. 838i(b)(6)), is amended by striking ``or'' before 
``(iv)'' and by inserting before the semicolon ``, or (v) to pay the 
cost of financing and debt service including premiums, if any, on Bond 
issued by the Bonneville Power Administration''.

SEC. 304. COMBINED REPAYMENT STUDY.

    Section 7(a) of the Pacific Northwest Electric Power Planning and 
Conservation Act (16 U.S.C. 893e(a)), is amended by adding after 
paragraph (2) the following:
            ``(3) In establishing power and transmission rates, the 
        Administrator may base them on a single, combined generation 
        and transmission repayment study which demonstrates that all 
        indebtedness is repaid by its due date. The use of such a study 
        is sufficient for the commission to approve the rates as 
        meeting repayment requirements.''.

SEC. 305. DEFINITIONS.

    For the purposes of this part--
            (1) ``Administrator'' means the Administrator of the 
        Bonneville Power Administration; and
            (2) ``appropriated capital investment made in the Federal 
        Columbia River Power System'' means an investment made by the 
        United States that--
                    (A) is made using Federal appropriations;
                    (B) is for a project or separable feature of a 
                project that is placed in service;
                    (C) is allocated to power and required by law to be 
                repaid from the power revenues by the Administrator;
                    (D) is not allocated or suballocated to irrigation; 
                and
                    (E) excludes an investment made using funds 
                borrowed under section 13 of the Federal Columbia River 
                Transmission System Act.

       PART 2--OTHER POWER MARKETING ADMINISTRATIONS DEBT BUYOUT

SEC. 306. SHORT TITLE.

    This part may be cited as the ``Power Marketing Administrations 
Financing Act''.

SEC. 307. DEFINITIONS.

    For the purposes of this part--
            (1) ``Administrator'' means the Administrator of the 
        Southeastern Power Administration, the Administrator of the 
        Southwestern Power Administration, and the Administrator of the 
        Western Area Power Administration;
            (2) ``Fund'' means the Power Marketing Administration 
        Sinking Fund established under section 309; and
            (3) ``Power marketing administration'' means the 
        Southeastern Power Administration, the Southwestern Power 
        Administration, and the Western Area Power Administration.

SEC. 308. REPAYMENT OF EXISTING INDEBTEDNESS.

    (a) Notwithstanding any other law, within 12 months after the 
enactment of this Act, each Administrator shall develop, in 
consultation with the Secretary of the Treasury, and shall implement a 
plan for paying the United States Treasury the discounted present value 
of principal and interest payments on power investments scheduled to be 
paid to the United States Treasury as provided by the Administrator 
under existing law and repayment practices by that power marketing 
administration, as well as a one-time additional payment of $12,500,000 
by the Southeastern Power Administration, $12,500,000 by the 
Southwestern Power Administration, and $50,000,000 by the Western Area 
Power Administration. Each Administrator shall issue revenue bonds as 
provided in section 310 to pay the obligation to the United States 
Treasury addressed in this section, except that the issuance of these 
bonds shall occur only if each Administrator determines by means of 
financial studies that the refinancing will not cause an increase in 
power rates over existing repayment practices. When the Treasury 
receives full payment from an Administrator, it shall consider the 
repayment obligation of the Administration associated with the payment 
fully and forever discharged.
    (b) In all future contracts for the sale of electric power, 
transmission, or other services, each Administrator shall include 
provisions agreeing that when the repayment obligation is fully and 
forever discharged under subsection (a), the Administrator's rates for 
electric power, transmission, or other services shall not, other than 
is necessary to repay the new indebtedness incurred under this Act, 
include any charge in place of the satisfied obligation or include any 
other similar form of economic rent by or returned to the United States 
(including, without limitation, a falling water charge or any other 
type of user fee for use of Federal facilities for the purpose of power 
generation and transmission) on account of any project, facility, or 
separable unit of a project or facility associated with the repayment 
obligation satisfied.
    (c) Each Administrator shall offer to amend existing contracts for 
the sale of electric power, transmission, or other services to include 
the provision described in subsection (b).

SEC. 309. POWER MARKETING ADMINISTRATION SINKING FUND.

    (a) There is established in the Treasury of the United States a 
Power Marketing Administration Sinking Fund. The Secretary of the 
Treasury, acting as trustee for the power marketing administrations, 
shall establish and maintain a separate account in the Fund for each 
power marketing administration, and monies of one power marketing 
administration shall not be commingled with monies of another power 
marketing administration. Within the separate account for each power 
marketing administration, separate projects or systems shall be 
accounted for separately. An Administrator may deposit into the Fund 
the monies derived from revenues that the Administrator considers 
appropriate to ensure that the bonds issued under section 310 are 
refunded in a timely manner.
    (b) Balances in the Fund shall earn interest at a rate determined 
by the Secretary of the Treasury.
    (c) An Administrator may make expenditures from the Administrator's 
account in the Fund without further appropriation and without fiscal 
year limitation to pay indebtedness incurred from bonds issued under 
section 310.
    (d) Each power marketing administration shall maintain its books of 
account in substantial conformance with the Uniform System of Accounts 
of the Federal Energy Regulatory Commission.
    (e) The financial transactions of an Administrator shall be audited 
by independent financial auditors, and reports of the results of each 
audit shall be made to the Congress within 6\1/2\ months following the 
end of the fiscal year covered by the audit.

SEC. 310. REVENUE BONDS.

    (a) Each Administrator, in consultation with the Secretary of the 
Treasury, may issue and sell from time to time in the name of, and for 
and on behalf of, the respective power marketing administration bonds, 
notes, and other evidences of indebtedness (in this section 
collectively referred to as ``bonds'') to refinance existing 
indebtedness as provided in section 308 and to issue and sell bonds to 
refund those bonds. The bonds shall be in the forms and denominations, 
bear maturities (without respect to the remaining average service life 
of facilities), and be subject to terms and conditions as prescribed by 
the Administrator taking into account terms and conditions prevailing 
in the market for similar bonds and financing practices of the utility 
industry. Provisions for early retirement of bonds may be prescribed by 
each Administrator. The bonds shall bear interest at a rate determined 
by the Administrator.
    (b) Each Administrator may enter into any contract that the 
Administrator considers necessary for the purposes of carrying out this 
part including, but not limited to, contracts for--
            (1) the payment of the principal, interest, and premium, if 
        any, on bonds issued under this part;
            (2) their purchase or redemption;
            (3) the payment of costs and expenses incidental to their 
        payment, purchase, and redemption; or
            (4) the creation of reserve and other funds to be held by 
        the Secretary of the Treasury as trustee, which funds the 
        Administrator may pledge exclusively to pay those costs for 
        which the funds were created and may establish a lien on the 
        funds in favor of the beneficiaries of the funds under any 
        indenture, resolution, or other agreement entered into in 
        connection with the issuance of bonds under this part.
    (c) Bonds issued under this part--
            (1) shall be issuable and negotiable through the Federal 
        wire system;
            (2) are negotiable instruments that may be accepted as 
        security for all fiduciary, trust, and public funds, the 
        investment or deposit of which is under the authority or 
        control of any officer or agency of the United States;
            (3) may be held, without limitation, by national banks;
            (4) qualify as legal instruments for banks, savings and 
        loan institutions, and credit unions; and
            (5) are eligible collateral for Federal advances and 
        discounts, for deposits of the United States, and for Treasury 
        tax and loan accounts.
    (d) Bonds issued under this part are exempt both as to principal 
and interest from all taxation by any State or local taxing authority, 
except estate, inheritance, and gift taxes.
    (e) Bonds issued under this part shall contain a recital that they 
are issued under this part and such a recital is conclusive evidence of 
the regularity of the issuance and sale of the bonds and their 
validity.
    (f) These bonds are not intended to be and are not secured by the 
full faith and credit of the United States.
    (g) The bonds issued under this part, all receipts of the Secretary 
of the Treasury under this part, any portion of the Fund established 
under section 310 related to these bonds, all receipts and 
disbursements of the Fund related to these bonds, and all expenditures 
by an Administrator related to these bonds--
            (1) are exempt from any general budget limitation imposed 
        by statute on expenditures and net lending (budget outlays) of 
        the United States Government, sequestration order, or 
        discretionary spending limit;
            (2) are exempt from any order issued pursuant to sections 
        251, 252, or 253 of the Balanced Budget and Emergency Deficit 
        Control Act of 1985 (2 U.S.C. 900 et seq.); and
            (3) are not subject to apportionment under subchapter II of 
        chapter 15 of title 31, United States Code.
    (h) With respect to the Western Area Power Administration, except 
as otherwise provided, this Act is considered to be a supplement to the 
Federal reclamation laws.

                                 <all>

S 1638 IS----2