[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 599 Introduced in House (IH)]

  1st Session
                                H. R. 599

To provide for the reconstitution of outstanding repayment obligations 
  of the Administrator of the Bonneville Power Administration for the 
 appropriated capital investments in the Federal Columbia River Power 
                                System.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 20, 1995

   Mr. DeFazio (for himself, Mr. Bunn, Mr. Dicks, and Mr. Williams) 
 introduced the following bill; which was referred to the Committee on 
                               Resources

_______________________________________________________________________

                                 A BILL


 
To provide for the reconstitution of outstanding repayment obligations 
  of the Administrator of the Bonneville Power Administration for the 
 appropriated capital investments in the Federal Columbia River Power 
                                System.

    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 ``Bonneville Power Administration 
Appropriations Refinancing Act''.

SEC. 2. DEFINITIONS.

    For the purposes of this Act--
            (1) ``Administrator'' means the Administrator of the 
        Bonneville Power Administration;
            (2) ``capital investment'' means a capitalized cost funded 
        by Federal appropriations that--
                    (A) is for a project, facility, or separable unit 
                or feature of a project or facility;
                    (B) is a cost for which the Administrator is 
                required by law to establish rates to repay to the 
                United States Treasury through the sale of electric 
                power, transmission, or other services;
                    (C) excludes a Federal irrigation investment; and
                    (D) excludes an investment financed by the current 
                revenues of the Administrator or by bonds issued and 
                sold, or authorized to be issued and sold, by the 
                Administrator under section 13 of the Federal Columbia 
                River Transmission System Act (16 U.S.C. 838(k));
            (3) ``new capital investment'' means a capital investment 
        for a project, facility, or separable unit or feature of a 
        project or facility, placed in service after September 30, 
        1995;
            (4) ``old capital investment'' means a capital investment 
        whose capitalized cost--
                    (A) was incurred, but not repaid, before October 1, 
                1995, and
                    (B) was for a project, facility, or separable unit 
                or feature of a project or facility, placed in service 
                before October 1, 1995;
            (5) ``repayment date'' means the end of the period within 
        which the Administrator's rates are to assure the repayment of 
        the principal amount of a capital investment; and
            (6) ``Treasury rate'' means--
                    (A) for an old capital investment, a rate 
                determined by the Secretary of the Treasury, taking 
                into consideration prevailing market yields, during the 
                month preceding October 1, 1995, on outstanding 
                interest-bearing obligations of the United States with 
                periods to maturity comparable to the period between 
                October 1, 1995, and the repayment date for the old 
                capital investment; and
                    (B) for a new capital investment, a rate determined 
                by the Secretary of the Treasury, taking into 
                consideration prevailing market yields, during the 
                month preceding the beginning of the fiscal year in 
                which the related project, facility, or separable unit 
                or feature is placed in service, on outstanding 
                interest-bearing obligations of the United States with 
                periods to maturity comparable to the period between 
                the beginning of the fiscal year and the repayment date 
                for the new capital investment.

SEC. 3. NEW PRINCIPAL AMOUNTS.

    (a) Effective October 1, 1995, an old capital investment has a new 
principal amount that is the sum of--
            (1) the present value of the old payment amounts for the 
        old capital investment, calculated using a discount rate equal 
        to the Treasury rate for the old capital investment; and
            (2) an amount equal to $100,000,000 multiplied by a 
        fraction whose numerator is the principal amount of the old 
        payment amounts for the old capital investment and whose 
        denominator is the sum of the principal amounts of the old 
        payment amounts for all old capital investments.
    (b) With the approval of the Secretary of the Treasury based solely 
on consistency with this Act, the Administrator shall determine the new 
principal amounts under section 3 and the assignment of interest rates 
to the new principal amounts under section 4.
    (c) For the purposes of this section, ``old payment amounts'' 
means, for an old capital investment, the annual interest and principal 
that the Administrator would have paid to the United States Treasury 
from October 1, 1995, if this Act were not enacted, assuming that--
            (1) the principal were repaid--
                    (A) on the repayment date the Administrator 
                assigned before October 1, 1993, to the old capital 
                investment, or
                    (B) with respect to an old capital investment for 
                which the Administrator has not assigned a repayment 
                date before October 1, 1993, on a repayment date the 
                Administrator shall assign to the old capital 
                investment in accordance with paragraph 10(d)(1) of the 
                version of Department of Energy Order RA 6120.2 in 
                effect on October 1, 1993; and
            (2) interest were paid--
                    (A) at the interest rate the Administrator assigned 
                before October 1, 1993, to the old capital investment, 
                or
                    (B) with respect to an old capital investment for 
                which the Administrator has not assigned an interest 
                rate before October 1, 1993, at a rate determined by 
                the Secretary of the Treasury, taking into 
                consideration prevailing market yields, during the 
                month preceding the beginning of the fiscal year in 
                which the related project, facility, or separable unit 
                or feature is placed in service, on outstanding 
                interest-bearing obligations of the United States with 
                periods to maturity comparable to the period between 
                the beginning of the fiscal year and the repayment date 
                for the old capital investment.

SEC. 4. INTEREST RATE FOR NEW PRINCIPAL AMOUNTS

    As of October 1, 1995, the unpaid balance on the new principal 
amount established for an old capital investment under section 3 bears 
interest annually at the Treasury rate for the old capital investment 
until the earlier of the date that the new principal amount is repaid 
or the repayment date for the new principal amount.

SEC. 5. REPAYMENT DATES.

    As of October 1, 1995, the repayment date for the new principal 
amount established for an old capital investment under section 3 is no 
earlier than the repayment date for the old capital investment assumed 
in section 3(c)(1).

SEC. 6. PREPAYMENT LIMITATIONS.

    During the period October 1, 1995, through September 30, 2000, the 
total new principal amounts of old capital investments, as established 
under section 3, that the Administrator may pay before their respective 
repayment dates shall not exceed $100,000,000.

SEC. 7. INTEREST RATES FOR NEW CAPITAL INVESTMENTS DURING CONSTRUCTION.

    (a) The principal amount of a new capital investment includes 
interest in each fiscal year of construction of the related project, 
facility, or separable unit or feature at a rate equal to the one-year 
rate for the fiscal year on the sum of--
            (1) construction expenditures that were made from the date 
        construction commenced through the end of the fiscal year, and
            (2) accrued interest during construction.
    (b) The Administrator is not required to pay, during construction 
of the project, facility, or separable unit or feature, the interest 
calculated, accrued, and capitalized under subsection (a).
    (c) For the purposes of this section, `one-year rate' for a fiscal 
year means a rate determined by the Secretary of the Treasury, taking 
into consideration prevailing market yields, during the month preceding 
the beginning of the fiscal year, on outstanding interest-bearing 
obligations of the United States with periods to maturity of 
approximately one year.

SEC. 8. INTEREST RATES FOR NEW CAPITAL INVESTMENTS.

    The unpaid balance on the principal amount of a new capital 
investment bears interest at the Treasury rate for the new capital 
investment from the date the related project, facility, or separable 
unit or feature is placed in service until the earlier of the date the 
new capital investment is repaid or the repayment date for the new 
capital investment.

SEC. 9. APPROPRIATED AMOUNTS.

    The Confederated Tribe of the Colville Reservation Grand Coulee Dam 
Settlement Act (Public Law No. 103-436) is amended by striking section 
6 and its catchline and inserting the following:

``SEC. 6. APPROPRIATED AMOUNTS.

    ``(a) Without fiscal year limitation, there are appropriated to the 
Administrator $15.25 million in fiscal year 1996, $15.86 million in 
fiscal year 1997, $16.49 million in fiscal year 1998, $17.15 million in 
fiscal year 1999, $17.84 million in fiscal year 2000, and $4.10 million 
in each succeeding fiscal year so long as the Administrator makes 
annual payments to the Tribes under the settlement agreement.
    ``(b) For the purposes of this section--
            ``(1) `settlement agreement' means that settlement 
        agreement between the United States of America and the 
        Confederated Tribes of the Colville Reservation signed by the 
        Tribes on April 16, 1994, and by the United States of America 
        on April 21, 1994, which settlement agreement resolves claims 
        of the Tribes in Docket 181-D of the Indian Claims Commission, 
        which docket has been transferred to the United States Court of 
        Federal Claims; and
            ``(2) `Tribes' means the Confederated Tribes of the 
        Colville Reservation, a federally recognized Indian Tribe.''.

SEC. 10. CONTRACT PROVISIONS.

    In each contract of the Administrator that provides for the 
Administrator to sell electric power, transmission, or related 
services, and that is in effect after September 30, 1995, the 
Administrator shall offer to include, or as the case may be, shall 
offer to amend to include, provisions specifying that after September 
30, 1995--
            (1) the Administrator shall establish rates and charges on 
        the basis that--
                    (A) the principal amount of an old capital 
                investment shall be no greater than the new principal 
                amount established under section 3 of this Act;
                    (B) the interest rate applicable to the unpaid 
                balance of the new principal amount of an old capital 
                investment shall be no greater than the interest rate 
                established under section 4 of this Act;
                    (C) any payment of principal of an old capital 
                investment shall reduce the outstanding principal 
                balance of the old capital investment in the amount of 
                the payment at the time the payment is tendered; and
                    (D) any payment of interest on the unpaid balance 
                of the new principal amount of an old capital 
                investment shall be a credit against the appropriate 
                interest account in the amount of the payment at the 
                time the payment is tendered;
            (2) apart from charges necessary to repay the new principal 
        amount of an old capital investment as established under 
        section 3 of this Act and to pay the interest on the principal 
        amount under section 4 of this Act, no amount may be charged 
        for return to the United States Treasury as repayment for or 
        return on an old capital investment, whether by way of rate, 
        rent, lease payment, assessment, user charge, or any other fee;
            (3) amounts provided under section 1304 of title 31, United 
        States Code, shall be available to pay, and shall be the sole 
        source for payment of, a judgment against or settlement by the 
        Administrator or the United States on a claim for a breach of 
        the contract provisions required by this Act; and
            (4) the contract provisions specified in this Act do not--
                    (A) preclude the Administrator from recovering, 
                through rates or other means, any tax that is generally 
                imposed on electric utilities in the United States, or
                    (B) affect the Administrator's authority under 
                applicable law, including section 7(g) of the Pacific 
                Northwest Electric Power Planning and Conservation Act 
                (16 U.S.C. 839e(g)), to--
                            (i) allocate costs and benefits, including 
                        but not limited to fish and wildlife costs, to 
                        rates or resources, or
                            (ii) design rates.

SEC. 11. SAVINGS PROVISIONS.

    (a) This Act does not affect the obligation of the Administrator to 
repay the principal associated with each capital investment, and to pay 
interest on the principal, only from the ``Administrator's net 
proceeds,'' as defined in section 13 of the Federal Columbia River 
Transmission System Act (16 U.S.C. 838k(b)).
    (b) Except as provided in section 6 of this Act, this Act does not 
affect the authority of the Administrator to pay all or a portion of 
the principal amount associated with a capital investment before the 
repayment date for the principal amount.
                                 <all>