Southwestern Power Administration Fund Establishment Act
- Bill Number
- S. 1034
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Energy
- Status
- Introduced
- Latest Action
- 2026-03-17: Committee on Energy and Natural Resources Subcommittee on Water and Power. Hearings held.
- Last Updated
- 2026-06-04T11:03:24Z
AI-Generated Summary
Purpose
The Southwestern Power Administration Fund Establishment Act (S. 1034) aims to create a centralized fund in the U.S. Treasury to manage the financial operations of the Southwestern Power Administration (SWPA), a federal agency responsible for marketing and transmitting hydroelectric power generated from federal dams in the southwestern United States. This fund consolidates existing revenue sources and supports SWPA's ongoing activities without relying on annual congressional appropriations for routine operations.
Key Provisions
- Fund Establishment: Creates the "Southwestern Power Administration Fund" in the Treasury, funded by:
- All receipts, collections, and recoveries from SWPA, including trust funds.
- Direct appropriations to the fund.
- Transfers of unexpended balances from prior funds (e.g., continuing fund from 1949 legislation, advanced payment fund from 2005 appropriations, and offsetting collections fund from 2010 appropriations).
- Deposits from specific 2005 appropriations language.
- Availability and Use of Funds: Money in the fund remains available until spent and can be used for:
- Operating and maintaining power transmission facilities.
- Marketing electric power and energy.
- Constructing or acquiring transmission lines, substations, and related infrastructure.
- Covering administrative costs under the Flood Control Act of 1944 and the Energy Policy Act of 2005.
- Obligations and Excess Funds: SWPA's Administrator can commit to expenses before funds are fully available, to be paid from the fund later. Any excess funds are transferred annually to the U.S. Treasury as miscellaneous receipts.
- Legal Framework: Applies rules from Chapter 91 of Title 31 of the U.S. Code (governing government corporations) to SWPA's financial management, treating it similarly to a wholly owned federal entity for accounting and operations.
- Amendments: Updates 2005 appropriations language to direct deposits into the new fund and repeals parts of 2010 appropriations language related to the old offsetting collections fund.
Significant Changes to Existing Law
- Consolidates multiple scattered funds and accounts (from laws dating back to 1949, 2005, and 2010) into a single, permanent fund, eliminating the need for fragmented budgeting.
- Repeals specific provisos in the 2010 Energy and Water Development Appropriations Act that established the offsetting collections fund, simplifying the financial structure.
- Shifts from time-limited or fiscal-year-specific funding mechanisms to a more flexible, ongoing fund available until expended, reducing dependence on yearly appropriations for core activities.
- Updates references in the 2005 Energy and Water Development Appropriations Act to point to the new fund, ensuring continuity while modernizing the language (e.g., changing "fiscal year 2005" to "date of enactment").
Potential Impacts
- On Government Agencies: Enhances the Department of Energy's (DOE) and SWPA's operational efficiency by providing stable, self-sustaining funding for power marketing and infrastructure, potentially reducing administrative burdens and delays from annual budgeting cycles.
- On Citizens: Benefits electricity consumers and utilities in the southwestern U.S. (e.g., Arkansas, Kansas, Missouri, Oklahoma, and Texas) by supporting reliable, low-cost federal hydroelectric power distribution, which could stabilize energy prices and improve grid reliability without direct taxpayer costs for routine operations.
- On International Relations: Minimal direct impact, as SWPA focuses on domestic power generation and transmission; however, it indirectly supports U.S. energy security in a region with cross-border ties to Mexico via shared water resources from federal dams.
Main Stakeholders Affected
- Southwestern Power Administration (SWPA) and Department of Energy: Primary beneficiaries, gaining streamlined funding for operations.
- Congressional Committees: The Senate Committee on Energy and Natural Resources (where the bill was referred) and House counterparts, as they oversee energy appropriations and policy.
- Utilities and Ratepayers: Regional power customers, including cooperatives and municipalities served by SWPA, who rely on affordable federal hydropower.
- U.S. Treasury: Manages the fund and receives excess revenues, affecting federal budgeting.
- Environmental and Energy Groups: Indirectly involved, as fund uses support maintenance of dams tied to flood control and renewable energy production.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens SWPA's financial autonomy under existing statutes like the Flood Control Act of 1944, while applying government corporation rules (e.g., for borrowing and accountability) to ensure transparency and prevent misuse of funds. No new regulatory burdens are imposed.
- Constitutional: Aligns with Congress's Article I powers over federal spending and commerce, promoting efficient use of public resources without raising separation-of-powers concerns.
- Political: Represents a bipartisan effort (introduced by Senators from Kansas and Missouri) to modernize federal power marketing administrations, potentially setting a precedent for similar reforms in other regional entities (e.g., Southeastern or Western Power Administrations). It avoids controversial elements like new taxes or mandates, focusing on administrative efficiency to appeal across party lines.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Sen. Hawley, Josh [R-MO], Sen. Marshall, Roger [R-KS], Sen. Boozman, John [R-AR]
Recent Actions
- 2026-03-17: Committee on Energy and Natural Resources Subcommittee on Water and Power. Hearings held.
- 2025-03-13: Read twice and referred to the Committee on Energy and Natural Resources.
- 2025-03-13: Introduced in Senate
Bill Versions
- Southwestern Power Administration Fund Establishment Act — issued 2025-03-13 — PDF (6 pages)