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112th Congress                                            Rept. 112-159
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
                  HOOVER POWER ALLOCATION ACT OF 2011

                                _______
                                

 July 20, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Hastings of Washington, from the Committee on Natural Resources, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 470]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 470) to further allocate and expand the 
availability of hydroelectric power generated at Hoover Dam, 
and for other purposes, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                          Purpose of the Bill

    The purpose of H.R. 470 is to further allocate and expand 
the availability of hydroelectric power generated at Hoover 
Dam.

                  Background and Need for Legislation

    The Boulder Canyon Project Act of 1928 authorized the 
construction of what is now the Hoover Dam. Upon its completion 
in 1935, it was the tallest dam and the largest hydroelectric 
producer in the world. Although it is no longer either, it 
still annually produces an average of 2,074 megawatts, 
depending on the water year. This is the equivalent of two 
average nuclear plants and enough to power over 20 million 
homes.
    In order to finance the building of the Hoover Dam and its 
power plant, the federal government partnered with the 
Metropolitan Water District of Southern California, the 
California cities of Los Angeles, Glendale, Pasadena and 
Burbank, Southern California Edison Company, the Arizona Power 
Authority, the Colorado River Commission of Nevada and the City 
of Boulder, Nevada (collectively known as Schedule A 
contractors). These power users received 50-year contracts as a 
result of this partnership. Without question, the benefits of 
the dam and its power helped stimulate economic and population 
growth in Arizona, California and Nevada.
    Congress passed the Hoover Power Plant Act of 1984 (HPPA or 
P.L. 98-381) to extend those original contracts, authorize 
advance funding for upgrades to the Hoover power turbines and 
allocate the power produced as a result of those upgrades to 
entities that funded the improvements. Known as the Schedule B 
contractors, these entities include the southern California 
cities of Glendale, Pasadena, Burbank, Anaheim, Azusa, Banning, 
Colton, Riverside and Vernon, and the States of Arizona and 
Nevada. In that Act, Congress stipulated that the new Schedule 
A and Schedule B contracts would span 30 years. Schedule C 
governs allocations of excess energy, if any, to the three 
states. Such excess power would be generated in unusually high 
water years, which occurred in 1984.
    The contracts authorized by P.L. 98-381 expire in 2017. 
Schedule A and B contractors are pursuing the passage of H.R. 
470 to extend the Hoover allocations for another 50 years. 
These 50-year contracts mirror the customers' 50-year Lower 
Colorado River Multi-Species Conservation Plan agreements with 
the federal government.
    H.R. 470 mandates that each Schedule A and B power user 
give up five percent of its Hoover power resource so that a new 
pool is set aside (called Schedule D) for new allottees in the 
Hoover Dam region. Eligible new allottees can include rural 
electric cooperatives, municipal power users, irrigation 
districts and Indian tribes. Schedule D power will be 
administratively allocated by the Western Area Power 
Administration in a public process.

                            Committee Action

    H.R. 470 was introduced on January 26, 2011 by Congressman 
Joseph Heck (R-NV). The bill was referred to the Committee on 
Natural Resources, and within the Committee to the Subcommittee 
on Water and Power. The bill was also referred to the Committee 
on the Budget. On May 21, 2011, the Subcommittee on Water and 
Power held a hearing on the bill. On June 15, 2011, the Full 
Resources Committee met to consider the bill. The Subcommittee 
on Water and Power was discharged by unanimous consent. No 
amendments were offered and the bill was ordered favorably 
reported to the House of Representatives by unanimous consent.

                      Section-by-Section Analysis


Section 1. Short title; table of contents

    Section 1 provides that this Act may be cited as the 
``Hoover Power Allocation Act of 2011.''

Section 2. Allocation of contracts for power

    Section 2(a) amends HPPA to increase the Schedule A 
contingent capacity at Hoover Dam proportionally based on the 
maximum dependable operating capacity, and then reduces the 
Schedule A summer and winter firm energy by 5% of the amount to 
be provided after October 1, 2017, to existing Schedule A 
contractors. In addition, this section makes technical and 
conforming changes to the underlying Act.
    Section 2(b) amends HPPA to increase the Schedule B 
contingent capacity proportionally based on the maximum 
dependable operating capacity, and then makes a 5% reduction in 
summer and winter firm energy after October 1, 2017, to 
existing Schedule B contractors. In addition, this section also 
makes technical and conforming changes to the underlying Act.
    Section 2(c) makes further technical and conforming changes 
to HPPA related to Schedule C.
    Section 2(d) amends HPPA by directing the Secretary of 
Energy to create a new Schedule D from the apportioned 
allocation equal to 5% of Schedules A and B of contingent 
capacity and firm energy after October 1, 2017. This power will 
be made available to new allottees that do not already receive 
Schedule A or B contingent capacity and firm energy. Contracts 
offered under Schedule D will include a provision requiring new 
allottees to pay a proportionate share of their state's 
contribution to the cost of the Lower Colorado River Multi-
Species Conservation Program, and a provision that would 
require new allottees to execute the Boulder Canyon Project 
Implementation Agreement Contract.
    Section 2(d) also gives the Western Area Power 
Administration (Western) 36 months from the date of enactment 
to allocate the Schedule D contingent capacity. Any of the 
Schedule D contingent capacity and firm energy that is not 
allocated and placed under contract by October 1, 2017, will be 
returned in the same proportion to the contractors in Schedule 
A and Schedule B.
    The section also allows federally recognized Indian tribes 
to contract directly with Western for any power they may 
receive and to develop allocation criteria in direct 
consultation with Western. The Committee expects that Western 
and the state regulatory bodies in Arizona and Nevada will 
conduct a full and open public hearing and review process upon 
the enactment of this legislation. The administrative process 
should fairly and equitably determine allocations from the new 
power pool. With the opportunity for irrigation districts, 
rural electric cooperatives and other eligible entities to 
receive allocations from the new proposed Schedule D, the 
Committee expects that Western and the state regulatory bodies 
will undertake an open, thorough and transparent assessment of 
the relevant power requests of potential new Hoover power 
recipients, including an assessment of the applicants' power 
needs and the classes of customers they serve, and act in an 
impartial and unbiased manner to make allocation determinations 
in an objective manner consistent with state and federal 
preference standards. The Committee further expects that the 
process and analytical results will be documented and made 
available for examination.
    Section 2(e) and 2(f) make technical and conforming changes 
to HPPA to take into account other changes made by this 
legislation.
    Section 2(g) amends HPPA to establish the expiration date 
of the contract as September 30, 2067. This section further 
directs Western to collect a pro-rata share of Hoover Dam 
repayable advances from new allottees prior to October 1, 2017, 
and remit a proportional share of the advances to existing 
Hoover contractors. Section 2(g) also authorizes Hoover 
contractors to engage in transactions for Hoover power with 
independent system operations and requires the contracts 
executed pursuant to this legislation to contain the same 
material terms as Section 5.6 of the long-term contracts, 
effective on the date of enactment.
    Section 2(h) amends HPPA to strike the date ``2017'' and 
insert the contract expiration year of ``2067.''
    Section 2(i) amends HPPA to establish a mechanism by which 
the Secretary of Energy would offer the contingent capacity and 
firm energy made available if an existing contractor fails to 
accept an offered contract.
    Section 2(j) amends HPPA to state that the obligation of 
the Secretary of Energy to deliver contingent capacity and firm 
energy is subject to the availability of the water needed to 
produce the contingent capacity and firm energy. Section 2(j) 
also directs the Secretary of Energy to adjust the continent 
capacity and firm energy under Schedules A, B and D 
proportionally if water is not available to produce contingent 
capacity and firm energy.
    Section 2(k) makes conforming changes in HPPA by repealing 
Sections 105(e) and (f).
    Section 2(l) provides for continued Congressional oversight 
regarding the terms and conditions of the governing contracts 
for power generated at Hoover Dam until September 30, 2067.
    Section 2(m) makes a conforming change to Section 105(h)(l) 
of HPPA.
    Section 2(n) confirms that the rights of contractors to 
capacity and energy would vest under the contracts through 
September 30, 2067.

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                    Compliance With House Rule XIII

    1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(2)(B) 
of that Rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974. Under clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
403 of the Congressional Budget Act of 1974, the Committee has 
received the following cost estimate for this bill from the 
Director of the Congressional Budget Office:

H.R. 470--Hoover Power Allocation Act of 2011

    H.R. 470 would update the statutory allocation of electric 
power generated at the Hoover Dam among various users. The 
current allocation expires at the end of fiscal year 2017. The 
legislation would increase the amount of electricity to be 
marketed by the Western Area Power Administration (WAPA) and 
would allocate much of the dam's currently unallocated 
electricity to Native American tribes and other entities. The 
revised allocations would remain in effect from 2017 through 
2067. Based on information from WAPA, CBO estimates that 
implementing this bill would have a negligible effect on net 
direct spending and spending subject to appropriation.
    Enacting H.R. 470 would affect direct spending; therefore, 
pay-as-you-go procedures apply. However, CBO estimates that the 
net effects would be insignificant for each year. In the 
absence of this legislation, CBO expects that WAPA would 
allocate the electricity from Hoover Dam by regulation. CBO 
estimates that any differences between the electricity 
allocation under H.R. 470 and the allocations developed under 
such regulations would have a negligible effect on offsetting 
receipts (a credit against direct spending) from electricity 
sales because the agency is required by law to keep electric 
rates as low as possible while recovering all costs of 
generation and marketing over time. CBO also estimates that 
implementing the bill would have no significant impact on 
WAPA's administrative costs, which are funded by appropriations 
and offset by proceeds from the sale of electricity. Enacting 
this bill would not affect revenues.
    H.R. 470 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    The CBO staff contact for this estimate is Kathleen Gramp. 
The estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.
    2. Section 308(a) of Congressional Budget Act. As required 
by clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives and section 308(a) of the Congressional Budget 
Act of 1974, this bill does not contain any new budget 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures. Enacting H.R. 470 would affect 
direct spending; therefore, pay-as-you-go procedures apply. 
However, CBO estimates that the net effects would be 
insignificant for each year.
    3. General Performance Goals and Objectives. This bill does 
not authorize funding and therefore, clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives does not 
apply.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                Preemption of State, Local or Tribal Law

    This bill is not intended to preempt any State, local or 
tribal law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

           SECTION 105 OF THE HOOVER POWER PLANT ACT OF 1984

  Sec. 105. (a)(1) The Secretary of Energy shall offer:
          (A) To each contractor for power generated at Hoover 
        Dam a [renewal] contract for delivery commencing [June 
        1, 1987] October 1, 2017, of the amount of capacity and 
        firm energy specified for that contractor in the 
        following table:

                                                   [SCHEDULE A
Long Term Contingent Capacity and Associated Firm Energy Reserved for Renewal Contract Offers to Current Boulder
                                           Canyon Project Contractors
----------------------------------------------------------------------------------------------------------------
                                                                 Contingent     Firm energy (thousands of kWh)
                           Contractor                             capacity  ------------------------------------
                                                                    (kW)       Summer      Winter       Total
----------------------------------------------------------------------------------------------------------------
Metropolitan Water District of Southern California.............     247,500     904,382     387,592    1,291,974
City of Los Angeles............................................     490,875     488,535     209,658      698,193
Southern California Edison Company.............................     277,500     175,486      75,208      250,694
City of Glendale...............................................      18,000      47,398      20,313       67,711
City of Pasadena...............................................      11,000      40,655      17,424       58,079
City of Burbank................................................       5,125      14,811       6,347       21,158
Arizona Power Authority........................................     189,000     452,192     193,797      645,989
Colorado River Commission of Nevada............................     189,000     452,192     193,797      645,989
United States, for Boulder City................................      20,000      56,000      24,000       80,000
                                                                ------------------------------------------------
Totals.........................................................   1,448,000   2,631,651   1,128,136   3,759,787]
----------------------------------------------------------------------------------------------------------------


                                                   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) To purchasers in the States of Arizona, Nevada 
        and California eligible to enter into such contracts 
        under section 5 of the Boulder Canyon Project Act, 
        contracts for delivery commencing June 1, 1987, or as 
        it thereafter becomes available, of capacity resulting 
        from the uprating program and for delivery commencing 
        June 1, 1987, of associated firm energy as specified in 
        the following table:

                                                   [SCHEDULE B
               Contingent Capacity Resulting From the Uprating Program and Associated Firm Energy
----------------------------------------------------------------------------------------------------------------
                                                                  Contingent    Firm energy (thousands of kWh)
                              State                                capacity  -----------------------------------
                                                                     (kW)       Summer      Winter       Total
----------------------------------------------------------------------------------------------------------------
Arizona.........................................................     188,000     148,000      64,000     212,000
California......................................................     127,000      99,850      43,364     143,214
Nevada..........................................................     188,000     288,000     124,000     412,000
                                                                 -----------------------------------------------
Totals..........................................................     503,000     535,850     231,364     767,214
----------------------------------------------------------------------------------------------------------------

Provided, however, That in the case of Arizona and Nevada, such 
contracts shall be offered to the Arizona Power Authority and 
the Colorado River Commission of Nevada, respectively, as the 
agency specified by State law as the agent of such State for 
purchasing power from the Boulder Canyon project: Provided 
further, That in the case of California, no such contract under 
this subparagraph (B) shall be offered to any purchaser who is 
offered a contract for capacity exceeding 20,000 kilowatts 
under subparagraph (A) of this paragraph.]
          (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) To the Arizona Power Authority and the Colorado 
        River Commission of Nevada and to purchasers in the 
        State of California eligible to enter into such 
        contracts under section 5 of the Boulder Canyon Project 
        Act, contracts for delivery commencing [June 1, 1987] 
        October 1, 2017, of such energy generated at Hoover Dam 
        as is available respectively to the States of Arizona, 
        Nevada, and California in excess of 4,501.001 million 
        kilowatthours in any year of operation (hereinafter 
        called excess energy) in accordance with the following 
        table:

                               [SCHEDULE C
                              Excess Energy
------------------------------------------------------------------------
     Priority of entitlement to excess energy              State
------------------------------------------------------------------------
First: Meeting Arizona's first priority right to   Arizona
 delivery of excess energy which is equal in each
 year of operation to 200 million kilowatthours:
 Provided, however, 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 schedule A of section
 105(a)(1)(A) and under schedule B of section
 105(a)(1)(B) not exceeding 26 million
 kilowatthours in each year of operation.
Third: Meeting the energy requirements of the      Arizona, Nevada, and
 three States, such available excess energy to be   California]
 divided equally among the States.
------------------------------------------------------------------------


                                                   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................................................
----------------------------------------------------------------------------------------------------------------

  (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 2011, 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 2011, 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 2011, 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.
  [(2)] (3)   The total obligation of the Secretary of Energy 
to deliver firm energy pursuant to [schedule A of section 
105(a)(1)(A) and schedule B of section 105(a)(1)(B)] paragraphs 
(1)(A), (1)(B), and (2) is 4,527.001 million kilowatthours in 
each year of operation. To the extent that the actual 
generation at Hoover Powerplant in [any] each year of operation 
(less deliveries thereof to Arizona required by its first 
priority under [schedule C] Schedule C of section 105(a)(1)(C) 
whenever actual generation in any year of operation is in 
excess of 4,501.001 million kilowatthours) is less than 
4,527.001 million kilowatthours, such deficiency shall be borne 
by the holders of contracts under said [schedules A and B] 
Schedules A, B, and D in the ratio that the sum of the 
quantities of firm energy to which each contractor is entitled 
pursuant to said schedules bears to 4,527.001 million 
kilowatthours. At the request of any such contractor, the 
Secretary of Energy will purchase energy to meet that 
contractor's deficiency at such contractor's expense.
  [(3) Subdivision E of the ``General Consolidated Power 
Marketing Criteria or Regulations for Boulder City Area 
Projects'' published in the Federal Register May 9, 1983 (48 
Federal Register commencing at 20881), hereinafter referred to 
as the ``Criteria'' or as the ``Regulations'' shall be deemed 
to have been modified to conform to this section. The Secretary 
of Energy shall cause to be included in the Federal Register a 
notice conforming the text of said Regulations to such 
modifications.]
  (4) Subdivision E of the Criteria shall be deemed to have 
been modified to conform to this section, as modified by the 
Hoover Power Allocation Act of 2011. The Secretary of Energy 
shall cause to be included in the Federal Register a notice 
conforming the text of the regulations to such modifications.
  [(4)] (5)   Each contract offered under subsection (a)(1) of 
this section shall:
          [(A) expire September 30, 2017;]
          (A) in accordance with section 5(a) of the Boulder 
        Canyon Project Act (43 U.S.C. 617d(a)), expire 
        September 30, 2067;
          (B) not restrict use to which the capacity and energy 
        contracted for by the Metropolitan Water District of 
        Southern California may be placed within the State of 
        California: Provided, That to the extent practicable 
        and consistent with sound water management and 
        conservation practice, the Metropolitan Water District 
        of Southern California [shall use] shall allocate such 
        capacity and energy to pump available Colorado River 
        water prior to using such capacity and energy to pump 
        California State water project water; [and]
          (C) conform to the applicable provisions of 
        subdivision E of the Criteria, commencing at 48 Federal 
        Register 20881, modified as provided in this section. 
        To the extent that said provisions of the Criteria, as 
        so modified, are applicable to contracts entered into 
        under this section, those provisions are hereby 
        ratified[.];
          (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 
        2011.
  (b) Nothing in the Criteria shall be construed to prejudice 
any rights conferred by the Boulder Canyon Project Act, as 
amended and supplemented, on the holder of a contract described 
in subsection (a) of this section not in default thereunder on 
September 30, [2017] 2067.
  [(c)(1) The Secretary of Energy shall not execute a contract 
described in subsection (a)(1)(A) of this section with any 
entity which is a party to the action entitled the ``State of 
Nevada, et al. against the United States of America, et al.'' 
in the United States District Court for the District of Nevada, 
case numbered CV LV `82 441 RDF, unless that entity agrees to 
file in that action a stipulation for voluntary dismissal with 
prejudice of its claims, or counterclaims, or crossclaims, as 
the case may be, and also agrees to file with the Secretary a 
document releasing the United States, its officers and agents, 
and all other parties to that action who join in that 
stipulation from any claims arising out of the disposition 
under this section of capacity and energy from the Boulder 
Canyon project. The Attorney General shall join on behalf of 
the United States, its officers and agents, in any such 
voluntary dismissal and shall have the authority to approve on 
behalf of the United States the form of each release.
  [(2) If after a reasonable period of time as determined by 
the Secretary, the Secretary is precluded from executing a 
contract with an entity by reason of paragraph (1) of this 
subsection, the Secretary shall offer the capacity and energy 
thus available to other entities in the same State eligible to 
enter into such contracts under section 5 of the Boulder Canyon 
Project Act.
  [(d) The uprating program authorized under section 101(a) of 
this Act shall be undertaken with funds advanced under 
contracts made with the Secretary of the Interior by non-
Federal purchasers described in subsection (a)(1)(B) of this 
section. Funding provided by non-Federal purchasers shall be 
advanced to the Secretary of the Interior pursuant to the terms 
and conditions of such contracts.]
  (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.
  (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.
  [(e) Notwithstanding any other provisions of the law, funds 
advanced by non-Federal purchasers for use in the uprating 
program shall be deposited in the Colorado River Dam Fund and 
shall be available for the uprating program.
  [(f) Those amounts advanced by non-Federal purchasers shall 
be financially integrated as capital costs with other project 
costs for rate-setting purposes, and shall be returned to those 
purchasers advancing funds throughout the contract period 
through credits which include interest costs incurred by such 
purchasers for funds contributed to the Secretary of the 
Interior for the uprating program.]
  [(g)] (e) The provisions of this section constitute an 
exercise by the Congress of the right reserved by it in section 
5(b) of the Boulder Canyon Project Act, as amended and 
supplemented, to prescribe terms and conditions for [the 
renewal of] contracts for electrical energy generated at Hoover 
Dam. This section constitutes the exclusive method for 
disposing of capacity and energy from Hoover Dam for the period 
beginning [June 1, 1987, and ending September 30, 2017] October 
1, 2017, and ending September 30, 2067.
  [(h)] (f)(1) Notwithstanding any other provision of law, any 
claim that the provisions of subsection (a) of this section 
violates any rights to capacity or energy from the Bounder 
Canyon project is barred unless the complaint is filed within 
one year after the date of enactment of [this Act] the Hoover 
Power Allocation Act of 2011 in the United States Claims Court 
which shall have exclusive jurisdiction over this action. Any 
claim that actions taken by any administrative agency of the 
United States violates any right under this title or the 
Bounder Canyon Project Act or the Boulder Canyon Project 
Adjustment Act is barred unless suit asserting such claim is 
filed in a Federal court of competent jurisdiction within one 
year after final refusal of such agency to correct the action 
complained of.

           *       *       *       *       *       *       *

  [(i)] (g) It is the purpose of [subsections (c), (g), and (h) 
of this section] this Act to ensure that the rights of 
contractors for capacity and energy from the Boulder Canyon 
project for the period beginning [June 1, 1987, and ending 
September 30, 2017] October 1, 2017, and ending September 30, 
2067, will vest with certainty and finality.