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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6974 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 6974
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 HOUSE OF REPRESENTATIVES
January 11, 2024
Ms. Maloy introduced the following bill; which was referred to the
Committee on 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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Natural Resources.
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