§ 16431. Federal utility participation in transmission organizations

• (a) In this section:
  • (1) The term “appropriate Federal regulatory authority” means—
    • (A) in the case of a Federal power marketing agency, the Secretary, except that the Secretary may designate the Administrator of a Federal power marketing agency to act as the appropriate Federal regulatory authority with respect to the transmission system of the Federal power marketing agency; and
    • (B) in the case of the Tennessee Valley Authority, the Board of Directors of the Tennessee Valley Authority.
  • (2) The term “Federal power marketing agency” has the meaning given the term in section 796 of title 16 .
  • (3) The term “Federal utility” means—
    • (A) a Federal power marketing agency; or
    • (B) the Tennessee Valley Authority.
  • (4) The term “Transmission Organization” has the meaning given the term in section 796 of title 16 .
  • (5) The term “transmission system” means an electric transmission facility owned, leased, or contracted for by the United States and operated by a Federal utility.
• (b) The appropriate Federal regulatory authority may enter into a contract, agreement, or other arrangement transferring control and use of all or part of the transmission system of a Federal utility to a Transmission Organization.
• (c) The contract, agreement, or arrangement shall include—
  • (1) performance standards for operation and use of the transmission system that the head of the Federal utility determines are necessary or appropriate, including standards that ensure—
    • (A) recovery of all of the costs and expenses of the Federal utility related to the transmission facilities that are the subject of the contract, agreement, or other arrangement;
    • (B) consistency with existing contracts and third-party financing arrangements; and
    • (C) consistency with the statutory authorities, obligations, and limitations of the Federal utility;
  • (2) provisions for monitoring and oversight by the Federal utility of the Transmission Organization’s terms and conditions of the contract, agreement, or other arrangement, including a provision for the resolution of disputes through arbitration or other means with the Transmission Organization or with other participants, notwithstanding the obligations and limitations of any other law regarding arbitration; and
  • (3) a provision that allows the Federal utility to withdraw from the Transmission Organization and terminate the contract, agreement, or other arrangement in accordance with its terms.
• (d) Neither this section, actions taken pursuant to this section, nor any other transaction of a Federal utility participating in a Transmission Organization shall confer on the Commission jurisdiction or authority over—
  • (1) the electric generation assets, electric capacity, or energy of the Federal utility that the Federal utility is authorized by law to market; or
  • (2) the power sales activities of the Federal utility.
• (e)
  • (1) No statutory provision requiring or authorizing a Federal utility to transmit electric power or to construct, operate, or maintain the transmission system of the Federal utility prohibits a transfer of control and use of the transmission system pursuant to, and subject to, the requirements of this section.
  • (2) This subsection does not—
    • (A) suspend, or exempt any Federal utility from, any provision of Federal law in effect on August 8, 2005 , including any requirement or direction relating to the use of the transmission system of the Federal utility, environmental protection, fish and wildlife protection, flood control, navigation, water delivery, or recreation; or
    • (B) authorize abrogation of any contract or treaty obligation.