Southwestern Power Administration Fund Establishment Act
- Bill Number
- H.R. 2432
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Energy
- Status
- Introduced
- Latest Action
- 2025-03-27: Referred to the Committee on Natural Resources, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2025-12-05T22:00:36Z
AI-Generated Summary
Purpose
The legislation aims to create a single, permanent fund in the U.S. Treasury for the Southwestern Power Administration (SPA), a federal agency under the Department of Energy (DOE) responsible for marketing hydroelectric power generated from federal dams in the southwestern United States. This fund consolidates existing financial accounts to improve efficiency in managing SPA's operations, maintenance, and construction activities related to power transmission and sales.
Key Provisions
- Fund Establishment: Creates the "Southwestern Power Administration Fund" in the Treasury, funded by:
- All receipts, collections, and recoveries from SPA operations (including trust funds).
- Direct appropriations to the fund.
- Transfers of unexpended balances from three prior accounts (a continuing fund from 1949, an advanced payment fund from 2005, and an offsetting collections fund from 2010).
- Deposits from a specific provision in the 2005 Energy and Water Development Appropriations Act.
- Availability and Use of Funds: Money in the fund remains available indefinitely (until spent) and can be used for:
- Operating and maintaining power transmission facilities.
- Marketing and selling electric power and energy.
- Building or buying transmission lines, substations, and related equipment.
- Covering administrative costs tied to SPA's duties under the Flood Control Act of 1944 (which authorizes federal power marketing) and the Energy Policy Act of 2005 (which addresses energy infrastructure).
- Obligations and Excess Funds: SPA can commit to expenses ahead of receiving full appropriations, with payments drawn from the fund. Any surplus funds at the end of each year must be sent back to the Treasury as general revenue.
- Governing Rules: Treats SPA's financial operations like those of a government-owned corporation for accounting and management purposes, following federal laws on government corporations (Chapter 91 of Title 31, U.S. Code).
Significant Changes to Existing Law
- Consolidates fragmented accounts from laws dating back to 1949, 2005, and 2010 into one unified fund, replacing temporary or scattered funding mechanisms.
- Updates the 2005 Appropriations Act to direct future deposits into the new fund instead of a general account.
- Repeals two specific provisions from the 2010 Appropriations Act that managed offsetting collections, eliminating redundant rules.
- Shifts from time-limited or annual funding availability to indefinite availability, allowing more flexible spending without repeated congressional approvals.
Potential Impacts
- Government Agencies: Enhances the DOE and SPA's ability to plan and execute projects without annual funding uncertainties, potentially reducing administrative burdens and improving long-term infrastructure maintenance for federal hydroelectric power in the Southwest (e.g., from dams like those on the Arkansas River).
- Citizens: Could lead to more reliable and cost-effective electric power supply for consumers, utilities, and rural cooperatives in states like Arkansas, Kansas, Missouri, Oklahoma, and Texas, as SPA markets power from federal projects. No direct impacts on individual citizens' taxes or bills are specified, but it supports stable energy pricing.
- International Relations: None apparent; the bill focuses on domestic federal power operations with no foreign policy elements.
Main Stakeholders Affected
- Southwestern Power Administration (SPA) and Department of Energy (DOE): Primary beneficiaries, gaining streamlined financial tools for operations.
- U.S. Treasury: Receives excess funds and manages the new account.
- Power Customers and Utilities: Regional electric cooperatives, municipalities, and industries that buy power from SPA, potentially seeing improved service reliability.
- Congress and Appropriations Committees: Reduced need for ongoing micro-management of SPA's budget through annual bills.
Notable Legal, Constitutional, or Political Implications
- Legal: Aligns SPA's finances with federal standards for government corporations, promoting accountability while granting operational autonomy (e.g., advance spending authority). This could set a precedent for similar reforms in other power marketing administrations (like those for Bonneville or Western Area Power).
- Constitutional: No direct challenges; it operates within Congress's spending power (Article I, Section 9) and supports executive branch energy management without infringing on states' rights, as it deals with federal assets.
- Political: Streamlines federal energy policy implementation, potentially appealing to lawmakers focused on efficiency and reducing bureaucracy. It may influence future appropriations debates by centralizing SPA funding, but introduces no partisan divides evident in the bill text.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Rep. Mann, Tracey [R-KS-1], Rep. Schmidt, Derek [R-KS-2], Rep. Davids, Sharice [D-KS-3]
Recent Actions
- 2025-03-27: Referred to the Committee on Natural Resources, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-03-27: Referred to the Committee on Natural Resources, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-03-27: Introduced in House
- 2025-03-27: Introduced in House
Bill Versions
- Southwestern Power Administration Fund Establishment Act — issued 2025-03-27 — PDF (6 pages)