Power marketing administrations

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) (as amended by section 2111(a)) is amended by adding at the end the following: 233. Compensation flexibility to address retention and hiring issues at the Federal power marketing agencies (a) Employee compensation program (1) In general Notwithstanding any other law, rule, regulation, or directive relating to the payment of Federal employees (other than chapter 83 of title 5, United States Code), the Administrator of each Federal power marketing agency (referred to in this section as an Administrator) shall develop, implement, and, as appropriate, update, based on the results of an annual review under paragraph (4), a compensation plan that specifies and fixes the compensation (including salary or any other pay, bonuses, benefits, incentives, and any other form of remuneration) for employees of the Federal power marketing agency, including members of the Senior Executive Service (as defined in section 2101a of title 5, United States Code). (2) Initial compensation plan (A) In general Not later than 1 year after the date of enactment of the Bipartisan American Affordability and Jobs Act of 2026, each Administrator shall, in consultation with the Director of the Office of Personnel Management, and subject to confirmation and approval by the Secretary of Energy, which shall not be unreasonably withheld, develop an initial compensation plan under paragraph (1). (B) Implementation Not later than 1 year after the date on which the initial compensation plan is developed under subparagraph (A), each Administrator shall implement the initial compensation plan. (3) Requirements A compensation plan developed under paragraph (1) shall— (A) be based on an annual survey of the prevailing compensation for similar positions in the public sectors of the electric industry; (B) be consistent with the approved annual general and administrative budget of the applicable Federal power marketing agency and encourage the widest diversified use of electric power at the lowest possible rates to consumers consistent with sound business principles; (C) provide that education, experience, level of responsibility, geographic differences, and retention and recruitment needs are to be taken into account in determining the compensation of employees of the applicable Federal power marketing agency; and (D) provide that the individual total compensation of the applicable Administrator and any employee of the applicable Federal power marketing agency shall be comparable to and competitive with similar positions among consumer-owned utilities in— (i) the Western Interconnection, if the Federal power marketing agency is located in the Western Interconnection; or (ii) the Eastern Interconnection, if the Federal power marketing agency is located in the Eastern Interconnection. (4) Annual review (A) In general Annually, each Administrator shall review and update, as appropriate, the compensation plan developed under paragraph (1). (B) Compensation of Administrators Notwithstanding any other law, rule, regulation, or directive relating to the payment of an Administrator (other than chapter 83 of title 5, United States Code), the Secretary of Energy shall periodically review and update, as appropriate, the compensation of each Administrator consistent with paragraph (3)(D). (C) Publication of information Each Administrator shall include in the quarterly public business review of the Administrator or any other appropriate public review of the operations and finances of the applicable Federal power marketing agency information on the applicable annual compensation plan review under subparagraph (A), including information on the amount of salaries of any employees whose annual salaries would exceed the annual rate payable for positions at Level IV of the Executive Schedule under section 5315 of title 5, United States Code. (5) Annual publication Annually, each Administrator shall publish the compensation plan developed under paragraph (1) or updated under paragraph (4), as applicable. (b) Appointment; employment (1) In general An Administrator may, as the Administrator determines to be necessary to carry out the functions of the Administrator under applicable law, subject to applicable civil service laws— (A) appoint any officers and employees; (B) employ laborers, mechanics, and workers for construction work or the operation and maintenance of electrical facilities; and (C) fix the compensation of individuals appointed under subparagraph (A) or (B), respectively, consistent with the applicable compensation plan developed under subsection (a)(1). (2) Exemption from certain civil service laws In carrying out the authority provided by paragraph (1), an Administrator shall be exempt from chapters 34, 43, 51, 53, 57, and 59 of title 5, United States Code. (3) Application of merit system principles Employees of a Federal power marketing agency are subject to the application of the merit system principles set forth in section 2301 of title 5, United States Code, to the extent that the principles apply to a wholly owned Government corporation. (4) Employment of physicians An Administrator may employ physicians, without regard to the civil service laws (including regulations), to perform physical examinations of employees or prospective employees of the applicable Federal power marketing agency who are or may become laborers, mechanics, and workers described in paragraph (1)(B). (5) Employment of experts An Administrator may appoint, without regard to the civil service laws (including regulations), any experts that the Administrator determines to be necessary to carry out the functions of the Administrator under applicable law..