Bonneville Unit Clean Hydropower Facilitation Act

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Bonneville Unit Clean Hydropower Facilitation Act
Great Seal of the United States (obverse).svg
Full titleTo authorize the Secretary of the Interior to facilitate the development of hydroelectric power on the Diamond Fork System of the Central Utah Project.
Introduced in 113th United States Congress
Introduced onJanuary 15, 2013
Sponsored by Rep. Jason Chaffetz (R, UT-3)
Number of co-sponsors0
Citations
Public Law113-20
Effects and codifications
Act(s) affected Central Utah Project Completion Act of 1992, Internal Revenue Code of 1986, Statutory Pay-As-You-Go Act of 2010, Hoover Power Plant Act of 1984
U.S.C. section(s) affected 42 U.S.C.   § 16421a ,
Agencies affected United States Department of the Interior
Legislative history

The Bonneville Unit Clean Hydropower Facilitation Act (H.R. 254) was a bill introduced in the 113th United States Congress which passed in the United States House of Representatives on April 9, 2013. The purpose of the act was to authorize the United States Department of the Interior to facilitate the development of hydroelectric power on the Diamond Fork System of the Central Utah Project. The Central Utah Project is a United States federal water project responsible for power generation, water for irrigation and community use, flood control, and recreation. The bill would alter some of the financial requirements of building a plant in order to facilitate private development.

113th United States Congress 2013–2015 legislative term

The One Hundred Thirteenth United States Congress was a meeting of the legislative branch of the United States federal government, from January 3, 2013, to January 3, 2015, during the fifth and sixth years of Barack Obama's presidency. It was composed of the United States Senate and the United States House of Representatives based on the results of the 2012 Senate elections and the 2012 House elections. The seats in the House were apportioned based on the 2010 United States Census. It first met in Washington, D.C. on January 3, 2013, and it ended on January 3, 2015. Senators elected to regular terms in 2008 were in the last two years of those terms during this Congress.

United States House of Representatives Lower house of the United States Congress

The United States House of Representatives is the lower house of the United States Congress, the Senate being the upper house. Together they compose the national legislature of the United States.

United States Department of the Interior Cabinet level department of the United States federal government

The United States Department of the Interior (DOI) is a federal executive department of the U.S. government. It is responsible for the management and conservation of most federal lands and natural resources, and the administration of programs relating to Native Americans, Alaska Natives, Native Hawaiians, territorial affairs, and insular areas of the United States. About 75% of federal public land is managed by the department, with most of the remainder managed by the United States Department of Agriculture's United States Forest Service.

Contents

The bill was signed into law on July 22, 2013, becoming Public Law 113-20.

Background

According to information provided by House Republicans, this bill was necessary to remove financial barriers that were preventing the development of hydropower in this geographic region. [1] Additional background information can be found in House Committee Report 113-25.

Provisions/Elements of the bill

This summary is based largely on the summary provided by the Congressional Research Service, a public domain source. [2]

Congressional Research Service Public think tank

The Congressional Research Service (CRS), known as Congress's think tank, is a public policy research institute of the United States Congress. As a legislative branch agency within the Library of Congress, CRS works primarily and directly for Members of Congress, their Committees and staff on a confidential, nonpartisan basis.

The public domain consists of all the creative work to which no exclusive intellectual property rights apply. Those rights may have expired, been forfeited, expressly waived, or may be inapplicable.

The Bonneville Unit Clean Hydropower Facilitation Act states that its goal is to facilitate hydropower development on the Diamond Fork System in Utah. In order to do this, the act would change some laws regarding the budget of the program. More specifically, one of the changes the bill makes is to say that a certain amount of reimbursable costs allocated to project power in the Power Appendix of the October 2004 Supplement to the 1988 Bonneville Unit Definite Plan Report shall be considered final costs, as well as specified costs in excess of the total maximum repayment obligation, subject to the same terms and conditions.

Hydroelectricity electricity generated by hydropower

Hydroelectricity is electricity produced from hydropower. In 2015, hydropower generated 16.6% of the world's total electricity and 70% of all renewable electricity, and was expected to increase by about 3.1% each year for the next 25 years.

Utah U.S. state in the United States

Utah is a state in the western United States. It became the 45th state admitted to the U.S. on January 4, 1896. Utah is the 13th-largest by area, 30th-most-populous, and 11th-least-densely populated of the 50 United States. Utah has a population of more than 3 million according to the Census estimate for July 1, 2016. Urban development is mostly concentrated in two areas: the Wasatch Front in the north-central part of the state, which contains approximately 2.5 million people; and Washington County in Southern Utah, with over 160,000 residents. Utah is bordered by Colorado to the east, Wyoming to the northeast, Idaho to the north, Arizona to the south, and Nevada to the west. It also touches a corner of New Mexico in the southeast.

There are several additional provisions in the bill. In section 4, it states two things. First, that the Act does not obligate the Western Area Power Administration to purchase or market any of the power produced by the Diamond Fork power plant. Secondly, the act states that none of the costs associated with development of transmission facilities to transmit power from the Diamond Fork power plant shall be assigned to power for the purpose of the Colorado River Storage Project and its ratemaking.

Western Area Power Administration

The mission of the Western Area Power Administration (WAPA) is to market and deliver clean, renewable, reliable, cost-based federal hydroelectric power and related services. As one of the four power marketing administrations within the U.S. Department of Energy, WAPA's role is to market wholesale hydropower generated at 56 hydroelectric federal dams operated by the Bureau of Reclamation, United States Army Corps of Engineers and the International Boundary and Water Commission. WAPA delivers this power through a more than 17,000-circuit-mile, high-voltage power transmission system to more than 700 preference power customers across the West. Those customers, in turn, provide retail electric service to more than 40 million consumers. WAPA is headquartered in the Denver, Colorado suburb of Lakewood, Colorado.

Power station facility generating electric power

A power station, also referred to as a power plant or powerhouse and sometimes generating station or generating plant, is an industrial facility for the generation of electric power. Most power stations contain one or more generators, a rotating machine that converts mechanical power into three-phase electric power. The relative motion between a magnetic field and a conductor creates an electric current. The energy source harnessed to turn the generator varies widely. Most power stations in the world burn fossil fuels such as coal, oil, and natural gas to generate electricity. Cleaner sources include nuclear power, biogas and an increasing use of renewables such as solar, wind, wave and hydroelectric.

Electrical substation part of an electrical generation, transmission, and/or distribution system

A substation is a part of an electrical generation, transmission, and distribution system. Substations transform voltage from high to low, or the reverse, or perform any of several other important functions. Between the generating station and consumer, electric power may flow through several substations at different voltage levels. A substation may include transformers to change voltage levels between high transmission voltages and lower distribution voltages, or at the interconnection of two different transmission voltages.

In section 5 of the bill, it prohibits any hydroelectric power generation or transmission facility on the Diamond Fork System from being financed or refinanced with any obligation whose interest enjoys federal tax-exempt status or which enjoys certain federal tax credits.

Refinancing is the replacement of an existing debt obligation with another debt obligation under different terms. The terms and conditions of refinancing may vary widely by country, province, or state, based on several economic factors such as inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower's credit worthiness, and credit rating of a nation. In many industrialized nations, a common form of refinancing is for a place of primary residency mortgage.

Tax exemption is the monetary exemption of persons, people, property, income, or transactions from taxes that would otherwise be levied on them. Tax-exempt status can provide complete relief from taxes, reduced rates, or tax on only a portion of items. Examples include exemption of charitable organizations from property taxes and income taxes, veterans, and certain cross-border or multi-jurisdictional scenarios.

A tax credit is a tax incentive which allows certain taxpayers to subtract the amount of the credit they have accrued from the total they owe the state. It may also be a credit granted in recognition of taxes already paid or, as in the United Kingdom, a form of state support.

Section 6 orders the Department of the Interior to report to the United States House Committee on Natural Resources and the United States Senate Committee on Energy and Natural Resources if hydropower production on the Diamond Fork System has not commenced 24 months after enactment of this Act, stating the reasons such production has not commenced, and presenting a detailed timeline for future hydropower production.

Section 8 of the act restricts where the funding of these activities can come from. It prohibits the use of Western Area Power Administration borrowing authority under the Hoover Power Plant Act of 1984 to fund any study or construction of transmission facilities developed as a result of the Act.

Congressional Budget Office report

PD-icon.svg This article incorporates  public domain material from websites or documents ofthe Congressional Budget Office . [3]

The Congressional Budget Office reported that it expected that enacting H.R. 254 would lead to the development of hydropower facilities at the Diamond Fork Project in Utah by a nonfederal entity within a few years, sooner than was expected under current law. Based on information CBO received from the United States Bureau of Reclamation, the CBO estimated that the federal government would receive payments from the hydropower developer of about $4 million over the 2014-2023 period. Enacting the bill would decrease direct spending (by increasing offsetting receipts); therefore, pay-as-you-go procedures apply. Enacting the bill would not affect revenues.

Procedural history

House

The Bonneville Unit Clean Hydropower Facilitation Act was introduced into the House on January 15, 2013 by Rep. Jason Chaffetz (R-UT). [2] It was referred to two House committees and one subcommittee - the United States House Committee on the Budget, the United States House Committee on Natural Resources, and the United States House Natural Resources Subcommittee on Water and Power. The bill was passed by the House on April 9, 2013 with a vote of 400-4 in Roll Call Vote 90. One Republican and three Democrats voted against it. [4]

Senate

The Bonneville Unit Clean Hydropower Facilitation Act was received in the Senate on April 10, 2013. [2]

Debate

The House Republicans, on their official website, made a statement of support for the passage of H.R. 254. [1] They argued that the bill would remove financial hurdles that are currently preventing developers from starting hydropower projects in the area due to their high costs. The bill would also generate some revenue for the government that it is not making currently. [1]

An alternative plan to have the government develop a plant at taxpayer expense, and then attempt to pay itself back with revenue from selling the hydropower, was also considered. [5]

See also

Notes/References

  1. 1 2 3 "H.R. 254 - Legislative Digest - GOP.gov". House Republicans. Archived from the original on 26 June 2013. Retrieved 10 May 2013.
  2. 1 2 3 "H.R.254 - 113th Congress". United States Congress. Retrieved 7 May 2013.
  3. "CBO | H.R. 254". Congressional Budget Office. Retrieved 7 May 2013.
  4. "Final Vote Results for Roll Call 90". United States Clerk of the House. Retrieved 10 May 2013.
  5. Hesterman, Billy (April 11, 2013). "House passes bill related to hydropower in Diamond Fork Canyon". Daily Herald. Retrieved 10 May 2013.

PD-icon.svg This article incorporates  public domain material from websites or documents ofthe United States Government .

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