[Congressional Record (Bound Edition), Volume 156 (2010), Part 7]
[House]
[Pages 10144-10147]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  HOOVER POWER ALLOCATION ACT OF 2010

  Mrs. NAPOLITANO. Madam Speaker, I move to suspend the rules and pass 
the bill (H.R. 4349) to further allocate and expand the availability of 
hydroelectric power generated at Hoover Dam, and for other purposes, as 
amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 4349

       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 ``Hoover Power Allocation Act 
     of 2010''.

     SEC. 2. ALLOCATION OF CONTRACTS FOR POWER.

       (a) Schedule A Power.--Section 105(a)(1)(A) of the Hoover 
     Power Plant Act of 1984 (43 U.S.C. 619a(a)(1)(A)) is 
     amended--
       (1) by striking ``renewal'';
       (2) by striking ``June 1, 1987'' and inserting ``October 1, 
     2017''; and
       (3) by striking Schedule A and inserting the following:

                                                  ``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) Schedule B Power.--Section 105(a)(1)(B) of the Hoover 
     Power Plant Act of 1984 (43 U.S.C. 619a(a)(1)(B)) is amended 
     to read as follows:
       ``(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) Schedule C Power.--Section 105(a)(1)(C) of the Hoover 
     Power Plant Act of 1984 (43 U.S.C. 619a(a)(1)(C)) is 
     amended--
       (1) by striking ``June 1, 1987'' and inserting ``October 1, 
     2017''; and
       (2) by striking Schedule C and inserting the following:

[[Page 10145]]



                                                  ``Schedule C
                                                  Excess Energy
----------------------------------------------------------------------------------------------------------------
          Priority of entitlement to excess energy                                  State
----------------------------------------------------------------------------------------------------------------
First: Meeting Arizona's first priority right to delivery    Arizona
 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 obligations under     Arizona, Nevada, and California
 Schedule A of 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 the three States,  Arizona, Nevada, and California''.
 such available excess energy to be divided equally among
 the States................................................
----------------------------------------------------------------------------------------------------------------

       (d) Schedule D Power.--Section 105(a) of the Hoover Power 
     Plant Act of 1984 (43 U.S.C. 619a(a)) is amended--
       (1) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (3), (4), and (5), respectively; and
       (2) by inserting after paragraph (1) the following:
       ``(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.''.
       (e) Total Obligations.--Paragraph (3) of section 105(a) of 
     the Hoover Power Plant Act of 1984 (43 U.S.C. 619a(a)) (as 
     redesignated as subsection (d)(1)) is amended--
       (1) in the first sentence, by striking ``schedule A of 
     section 105(a)(1)(A) and schedule B of section 105(a)(1)(B)'' 
     and inserting ``paragraphs (1)(A), (1)(B), and (2)''; and
       (2) in the second sentence--
       (A) by striking ``any'' and inserting ``each'';
       (B) by striking ``schedule C'' and inserting ``Schedule 
     C''; and
       (C) by striking ``schedules A and B'' and inserting 
     ``Schedules A, B, and D''.
       (f) Power Marketing Criteria.--Paragraph (4) of section 
     105(a) of the Hoover Power Plant Act of 1984 (43 U.S.C. 
     619a(a)) (as redesignated as subsection (d)(1)) is amended to 
     read as follows:
       ``(4) Subdivision E of the Criteria shall be deemed to have 
     been modified to conform to

[[Page 10146]]

     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.''.
       (g) Contract Terms.--Paragraph (5) of section 105(a) of the 
     Hoover Power Plant Act of 1984 (43 U.S.C. 619a(a)) (as 
     redesignated as subsection (d)(1)) is amended--
       (1) by striking subparagraph (A) and inserting the 
     following:
       ``(A) in accordance with section 5(a) of the Boulder Canyon 
     Project Act (43 U.S.C. 617d(a)), expire September 30, 
     2067;'';
       (2) in the proviso of subparagraph (B)--
       (A) by striking ``shall use'' and inserting ``shall 
     allocate''; and
       (B) by striking ``and'' after the semicolon at the end;
       (3) in subparagraph (C), by striking the period at the end 
     and inserting a semicolon; and
       (4) by adding at the end the following:
       ``(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.''.
       (h) Existing Rights.--Section 105(b) of the Hoover Power 
     Plant Act of 1984 (43 U.S.C. 619a(b)) is amended by striking 
     ``2017'' and inserting ``2067''.
       (i) Offers.--Section 105(c) of the Hoover Power Plant Act 
     of 1984 (43 U.S.C. 619a(c)) is amended to read as follows:
       ``(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.''.
       (j) Availability of Water.--Section 105(d) of the Hoover 
     Power Plant Act of 1984 (43 U.S.C. 619a(d) is amended to read 
     as follows:
       ``(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.''.
       (k) Conforming Amendments.--Section 105 of the Hoover Power 
     Plant Act of 1984 (43 U.S.C. 619a) is amended--
       (1) by striking subsections (e) and (f); and
       (2) by redesignating subsections (g), (h), and (i) as 
     subsections (e), (f), and (g), respectively.
       (l) Continued Congressional Oversight.--Subsection (e) of 
     section 105 of the Hoover Power Plant Act of 1984 (43 U.S.C. 
     619a)) (as redesignated by subsection (k)(2)) is amended--
       (1) in the first sentence, by striking ``the renewal of''; 
     and
       (2) in the second sentence, by striking ``June 1, 1987, and 
     ending September 30, 2017'' and inserting ``October 1, 2017, 
     and ending September 30, 2067''.
       (m) Court Challenges.--Subsection (f)(1) of section 105 of 
     the Hoover Power Plant Act of 1984 (43 U.S.C. 619a) (as 
     redesignated by subsection (k)(2)) is amended in the first 
     sentence by striking ``this Act'' and inserting ``the Hoover 
     Power Allocation Act of 2010''.
       (n) Reaffirmation of Congressional Declaration of 
     Purpose.--Subsection (g) of section 105 of the Hoover Power 
     Plant Act of 1984 (43 U.S.C. 619a) (as redesignated by 
     subsection (k)(2)) is amended--
       (1) by striking ``subsections (c), (g), and (h) of this 
     section'' and inserting ``this Act''; and
       (2) by striking ``June 1, 1987, and ending September 30, 
     2017'' and inserting ``October 1, 2017, and ending September 
     30, 2067''.

     SEC. 3. PAYGO.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the House Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
California (Mrs. Napolitano) and the gentleman from Utah (Mr. Chaffetz) 
each will control 20 minutes.
  The Chair recognizes the gentlewoman from California.


                             General Leave

  Mrs. NAPOLITANO. Madam Speaker, I ask unanimous consent that all 
Members may have 5 legislative days in which to revise and extend their 
remarks and include extraneous material on the bill under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from California?
  There was no objection.
  Mrs. NAPOLITANO. Madam Speaker, H.R. 4349 would update the statutory 
allocation of electric power generated at the Hoover Dam, located on 
the Colorado River, to its various users. The current allocation of 
this hydropower resource expires at the end of fiscal year 2017.
  In this regard, H.R. 4349 would increase the amount of electricity to 
be marketed by the Western Area Power Administration, known as WAPA, 
and provide to Native American tribes and other previously excluded 
entities the opportunity to acquire Federal power. The revised 
allocation would remain in effect from 2017 to 2067.
  H.R. 4349 has 43 bipartisan cosponsors. This hydroelectric 
generation, which provides a renewable, affordable, and accessible 
resource to the American Southwest, is, in this bill, being made now 
available to additional users through this legislation. Western Area 
Power has committed to implement a full and transparent process in the 
allocation of this resource. We expect that the State regulatory 
agencies of Arizona and Nevada will follow the same procedures and 
commitment to an impartial and unbiased allocation determination.
  Hydropower is a valuable resource for our country. The 50-year time 
frame for allocation of this resource matches the commitment by 
collaborators to fund the Lower Colorado River Multi-Species 
Conservation Program. The conservation program is a nationally 
recognized example of how diverse stakeholders can, together, find 
solutions without litigation that allow everyone to use the Lower 
Colorado River to promote economic growth while supporting compliance 
with the Endangered Species Act and then protecting more than 100 
species which the Lower Colorado River floodplain has within the river.
  Madam Speaker, I ask my colleagues to support the passage of H.R. 
4349, and I reserve the balance of my time.
  Mr. CHAFFETZ. Madam Speaker, I yield myself such time as I may 
consume.
  The Hoover Dam may be 85 years old, but its legacy of providing 
emissions-free electricity, water for cities and farms, recreation for 
millions of boaters, flood control, and environmental protection 
remains to this day. It is a symbol of what our Nation's legendary 
infrastructure has done and will continue to do for generations to 
come.
  This legislation specifically continues the promise of delivering 
clean and renewable hydropower generated at the legendary Hoover Dam. 
This hydropower helped make the southwest United States what it is 
today. This bill costs nothing, which is an important aspect in these 
tight financial times since all of the costs to generate and deliver 
this hydropower will be borne by the electricity ratepayers. This bill 
is a reminder of the ``beneficiary pays'' principle that western water 
and power projects are based on can still work and thrive today.
  I appreciate the gentlewoman for bringing this bill forward, the 
bipartisan manner in which it was crafted, and I urge my colleagues to 
support this important piece of legislation.
  I yield back the balance of my time.
  Mrs. NAPOLITANO. I want to thank my colleague for being with us today 
and to all of my other colleagues who are supporting and endorsing this 
bill,

[[Page 10147]]

especially the staff of the Water Subcommittee on our side and on the 
minority staff. The collaborative effort that has gone into this is 
exemplary of how we can work together to get things done, and I am very 
happy that we are able to do that in this bill. I urge my colleagues to 
vote for this bill.
  I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from California (Mrs. Napolitano) that the House suspend 
the rules and pass the bill, H.R. 4349, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________