[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3581 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 3581

To direct the Administrator of the Western Area Power Administration to 
 reduce rates for firm electric service customers due to shortfalls in 
generation from certain Bureau of Reclamation hydroelectric facilities, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 11, 2024

 Mr. Kelly (for himself and Ms. Sinema) introduced the following bill; 
   which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
To direct the Administrator of the Western Area Power Administration to 
 reduce rates for firm electric service customers due to shortfalls in 
generation from certain Bureau of Reclamation hydroelectric facilities, 
                        and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hydropower Delivery Rate-reduction 
Offset Act of 2024'' or the ``HYDRO Act of 2024''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the sale of hydropower from Federal facilities at cost-
        based rates to project use and firm electric service customers 
        has financed Federal projects and programs that are not 
        strictly necessary for, or related to, the production of 
        hydropower;
            (2) maintaining a mutually beneficial contractual 
        relationship with project use and firm electric service 
        customers is beneficial for the integrity of the Federal 
        hydropower program;
            (3) long-term drought conditions in the Western United 
        States have produced untenable conditions for the delivery of 
        hydropower; and
            (4) the conditions referred to in paragraph (3) make the 
        recovery of costs unrelated to the production of Federal 
        hydropower inconsistent with sound business principles.

SEC. 3. SENSE OF CONGRESS RELATING TO THE ADMINISTRATOR OF THE WESTERN 
              AREA POWER ADMINISTRATION.

    It is the sense of Congress that--
            (1) the Administrator of the Western Area Power 
        Administration (referred to in this Act as the 
        ``Administrator'') has the discretion to exclude nonpower-
        related costs from power rate repayment studies; and
            (2) the Administrator should exercise the discretion of the 
        Administrator--
                    (A) to reduce unnecessary expenditures during 
                periods of extreme drought; and
                    (B) to exclude costs from hydropower rates that are 
                inconsistent with an equitable allocation or assignment 
                of nonpower-related costs to project use and firm 
                electric service rates.

SEC. 4. HYDROPOWER DROUGHT MITIGATION.

    (a) Notification of Predicted Available Power.--
            (1) In general.--Not later than 30 days after the date of 
        enactment of this Act, and each January 1 thereafter, the 
        Administrator shall notify project use and firm electric 
        service customers of each of the Bureau of Reclamation projects 
        described in paragraph (2) of the quantity of energy predicted 
        to be available for delivery from the applicable Bureau of 
        Reclamation project during the 1-year period beginning on the 
        date of the notification, based on the most recent August 24-
        month study of the Bureau of Reclamation.
            (2) Description of projects.--The Bureau of Reclamation 
        projects referred to in paragraph (1) are the following:
                    (A) The Colorado River Storage Project, the 
                Collbran Project, and the Rio Grande Project 
                (collectively referred to in this Act as the ``Salt 
                Lake City Area Integrated Projects'').
                    (B) The Boulder Canyon Project.
                    (C) The Parker-Davis Project.
    (b) Conditions Warranting Rate Reduction.--
            (1) Salt lake city area integrated projects.--If a 
        notification under subsection (a)(1) indicates that the annual 
        quantity of energy produced by the Salt Lake City Area 
        Integrated Projects is predicted to be less than 4,900,000 MWh, 
        the Administrator shall reduce rates for each project use and 
        firm electric service customer of the Salt Lake City Area 
        Integrated Projects in each monthly invoice for firm electric 
        service until such time as the expected annual energy 
        production returns to levels equal to or greater than 4,900,000 
        MWh.
            (2) Boulder canyon project.--If a notification under 
        subsection (a)(1) indicates that the annual quantity of energy 
        produced by the Boulder Canyon Project is predicted to be less 
        than 3,600,000 MWh, the Administrator shall reduce rates for 
        each project use and firm electric service customer of the 
        Boulder Canyon Project in each monthly invoice for firm 
        electric service until such time as the expected annual energy 
        production returns to levels equal to or greater than 3,600,000 
        MWh.
            (3) Parker-davis project.--If a notification under 
        subsection (a)(1) indicates that the annual quantity of energy 
        produced by the Parker-Davis Project is expected to be less 
        than 1,400,000 MWh, the Administrator shall reduce rates for 
        each project use and firm electric service customer of the 
        Parker-Davis Project in each monthly invoice for project use 
        and firm electric service until such time as the expected 
        annual energy production returns to levels equal to or greater 
        than 1,400,000 MWh.
    (c) Rate Reduction.--
            (1) In general.--For purposes of calculating a rate 
        reduction required under subsection (b), the Administrator 
        shall reduce rates for each project use and firm electric 
        service customer in accordance with the principles described in 
        sections 2 and 3.
            (2) Limitation on rate reduction.--The Administrator may 
        not reduce rates as required under subsection (b) by an 
        aggregate amount greater than any unobligated balances 
        associated with the projects described in subsection (a)(2).
    (d) Termination of Effectiveness.--Subsections (a) through (c) 
shall cease to be effective on December 31, 2031.

SEC. 5. EFFECT.

    (a) Cost Recovery.--Nothing in this Act preempts the obligations of 
the Administrator to set rates to recover costs as may be required by 
law.
    (b) Funding.--
            (1) In general.--Nothing in this Act authorizes additional 
        appropriations for the Western Area Power Administration.
            (2) Use of existing funds.--The Administrator shall use any 
        funds authorized and appropriated to the Western Area Power 
        Administration on an annual basis to carry out the duties of 
        the Administrator under this Act.
    (c) No Retroactive Rates.--Notwithstanding any other provision of 
law, the Administrator shall not recover any rate reduction provided 
pursuant to this section in future rates.
    (d) Effect on Water Rights.--Nothing in this Act--
            (1) alters or affects any water rights held by--
                    (A) the United States;
                    (B) any Indian Tribe, band, or community;
                    (C) any State or political subdivision of a State; 
                or
                    (D) any person;
            (2) authorizes the Secretary of the Interior to change or 
        otherwise modify operations at Bureau of Reclamation facilities 
        in the Colorado River Basin; or
            (3) authorizes a change in the terms of the agreement 
        entitled the ``Second Memorandum of Agreement Concerning the 
        Upper Colorado River Basin Fund'' and dated June 10, 2020.
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