[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 308 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 308

To impose greater accountability on the Tennessee Valley Authority with 
  respect to capital investment decisions and financing operations by 
        increasing Congressional and Executive Branch oversight.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 5, 2003

   Mr. Lott introduced the following bill; which was read twice and 
       referred to the Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL


 
To impose greater accountability on the Tennessee Valley Authority with 
  respect to capital investment decisions and financing operations by 
        increasing Congressional and Executive Branch oversight.

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

SECTION 1. TENNESSEE VALLEY AUTHORITY.

    (a) Definitions.--In this section:
            (1) Authority.--The term ``Authority'' means the Tennessee 
        Valley Authority.
            (2) Board.--The term ``Board'' means the Board of Directors 
        of the Authority.
            (3) Committee leader.--The term ``Committee leader'' means 
        the chairman and ranking member of each of the Committee on 
        Appropriations and the Committee on the Environment and Public 
        Works of the Senate and the Committee on Appropriations and the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives.
            (4) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.
            (5) Plan.--The term ``Plan'' means the Ten-Year Business 
        Outlook and Strategic Plan submitted under subsection (b).
    (b) Plan.--Not later than 90 days after the effective date of this 
section, the Authority shall submit to the Director and each of the 
Committee leaders, for their concurrence, a Ten-Year Business Outlook 
and Strategic Plan for the Authority that includes, at a minimum--
            (1) estimates of--
                    (A) the power demand in the service area of the 
                Authority during the 10-year period following the date 
                of the plan;
                    (B) the assets that the Authority anticipates will 
                be available to meet that demand; and
                    (C) capital expenditures that will be required to 
                meet that demand;
            (2) a strategy and criteria for the development and 
        financing of new nuclear and nonnuclear power supply sources, 
        including a strategy for competitive sourcing and partnering 
        with the private sector for the development and financing of 
        new nuclear and nonnuclear power facilities; and
            (3) a strategy for managing the financing, refinancing, and 
        repayment of the existing indebtedness of the Authority, 
        including a specific debt repayment schedule to which the Board 
        is specifically committed.
    (c) Financing Strategies.--The provisions of the Plan relating to 
financing strategies under subsection (b)(3) shall include a recitation 
of the policies of the Board with respect to--
            (1) the use of short-term and long-term debt;
            (2) the use of derivative or other financing instruments; 
        and
            (3) risk management strategies.
    (d) Limitations.--
            (1) In general.--The Authority shall not, until the date, 
        if any, on which the Director and each of the Committee leaders 
        issue a written concurrence to the Plan--
                    (A) expend any internally generated capital or 
                otherwise undertake any investment in, or enter into 
                any arrangement that would result in the development or 
                financing of, new, additional, or replacement plant, 
                equipment, or capacity; or
                    (B) without the written concurrence of the Director 
                and each of the Committee leaders, undertake any 
                financing of additional indebtedness or refinancing of 
                debt of the Authority in any public or private market.
            (2) Effect.--This subsection does not preclude the 
        Authority from expending available funds, in the exercise of 
        the independent judgment of the Authority, for the repair, 
        maintenance, or necessary renovation to preserve the operating 
        capacity and efficiency of existing units and related 
        facilities.
    (e) Effective Date.--This section takes effect on January 31, 2003.
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