1824-3 .'

2 projects and activities to be constructed or undertaken

b}!

3 such State, local, or regional agencies with contributions

by

4 the United States. Plans shall set forth the recortiinenda'-5 tions of the authority regarding such contributions ' and

~.~-6 garding the construction and undertaking of snch projedts 7 and activities as betwe.en the departments and agencies

bf

8 the United States and State, local, and regional agencies. '~_J

9 ( d) Plans shall classify the various construction projects 10 with a view to the construction of projects in the ord~i 11 of their urgency so as iTIost beneficially to promote the 12 national welfare by stabilizing employment and rclieying 13 unemployment. Plans for reserved or less urgent projedt~ 14 shall be completed as expeditiously as possible, 'and' sh~l1 15 be modified from time to time as circumstances warrant

16, so that such plans shall be available, for prompt a'cti~n 17 whenever necessary to prevent or abate business depression 18 and widespread unemployment or for " any other 'purpo~~ 19 of this Act. In the development 'and modification of plans, 20 due regard shall be given to changing economic, industriat,2 21 and social conditions and to advantages offered by tech~: 22 nological and other developments.

23 (e) Each authority shall have power to acquire,

con-. ' ,

24 struct, operate, maintain, and improve such laboratories and '" i ·H. R. 1824-3

1 experimental stations, and to undertake such educational, 2 research, and demonstrational work, as the authority deems 3 necessary or appropriate to develop its plans, to test or 4 demonstrate the feasibility of such plans, or more efficiently 5 to develop and carry out any project or activity entrusted to 6 the authority pursuant to this or any other act of the 7 Congress.

8 POWERS AND DUTIES OF AN AUTHORITY IN THE CASE OF 9 PROJECTS AND ACTIVITIES WHICH ARE OR MAY BE 10 ENTRUSTED TO SUCH AUTHORITY

11 SEC. 9. (a) Whenever, pursuant to this or any other 12 Act of the Congress, any project or activity (of a type in 13 respect of which an authority is authorized to prepare plans 14 under section 8) is entrusted to an authority, such authority, 15 except as the Congress may otherwise provide, shall have 16 such powers as may be necessary or appropriate to construct, 17 operate, and carry out such project or activity so as to accom-18 plish the purposes and to fulfill the requirements specified 19 in subsections (a) and (b) of section 8, including the power 20 (to the extent necessary or appropriate to construct, oper-21 ate, or carry out such project or activity entrusted to it, 22 and works and facilities incidental

thereto)-23 ( 1 ) To acquire, construct, operate, maintain, and 24 improve dams, locks, reservoirs, levees, spillways, JIood-25 ways, fishways, conduits, canals, roads, roadways, docks,

1 wharves, terminals, sewage-disposal and

water-purifica-2 tion works, and recreation facilities, and structures,

3 equipment, and facilities incidental thereto: Provided, 4 however, That all daIns, locks, lifts, and appurtenant

5 works shall be constructed, operated, and maintained

6 under the direction of the Secretary of War and th€

7 supervision of the Chief of Engineers.

8 (2) To acquire, construct, operate, maintain, and

9 Improve such canals, conduits, powerhouses,

transmis-10 sion lines, rural electric lines, and substations, and such

11 machinery, equipment, structures, and facilities for the

12 storage and transportation of water or for the

gener~-13 tion and transmission of electric energy as the authority

14 deems necessary or appropriate to supply existing and

15 potential markets: Provided, That the Chief of Army

16 Engineers shall provide, construct, operate, maintain,

17 and improve such machinery, equipment, and facilities

] 8 for the generation of electric energy as may be necessary

19 to develop such electric energy as rapidly as markets

20 may be found therefor.

2] ( 3) To develop and provide such methods and con~ 22 ditions of water and land utilization as the authority

23 deems necessary or appropriate to prevent and abate

24 floods and droughts.

-

1

the construction and operation of dams for projects entrusted

2 to -an authotity, provision shall be made, insofar as

prac-3 ticable, in the construction of any such dam, for such

founda-4 tions, sluices, penstocks, and other works as may be

neces-5 sary or appropriate to prevent the waste of water power at

6 such dam and to make possible the economical development

7 of water power at such dam.

,8 (b) Whenever, pursuant to this or any other Act of

9 the Oongress, a project or activity is entrusted to an authority,

10 such authority is authorized, if in its judgnlent the interests

11 of econorny and efficiency will be served thereby, to

con-12' struct or 'operate such project or conduct such activity

13 through, or in conjunction with, other departments and

14 agencies of the United States, or in conjunction with States

15' or subdivisions or agencies thereof, or other public or

coop-16' . erative agencies. The departments and agencies of the

17 ,tJnited States"· are hereby authorized to participate in the

18 construction or operation of such projects or the conduct of

19 ,-, -'Such activities on terms mutually agreeable to such

depart-20 ment or agency and the authority.

21 ( c) . The electric energy generated at any such project

22 ' which is not required for the operation of such project

23· ' and · activities in connection therewith shall be delivered.

24 to ' the administrator of the authority, for disposition as

1 DISPOSITION OF WATER AND WATER · POWER

2 SEC. 10. (a) Whenever, pursuant to this or any other

3 Act of Congress, there is entrusted to an authority a· project 4 at which electric energy is or will be generated or at .~rhich

5 salable water is or will be stored, such authority shall nlake 6 such arrangements and take such action as may be necessary 7 or appropriate for the disposition of such of the electric 8 energy and water as is not required for the operation. of the ) 9 dams, locks, and lifts at such project, or the nayigation,

.

'.

10 sewage-disposal, or water-pur~cation facilities In connec-;.

11 tion therewith, and, in the case of reclamation projects,. as ~s 12 not required for reclamation of the public lands. There~ shall

13 be allotted to the War Department, without 9harg,e, sq much

14 of the electric energy generated at any such project as ~n

15 the judgment of the War Department may be necessary for

16 carrying out the functions and duties of such Dep3:rt~e:p.t in

17 connection with such project.

18 (b) To encourage the widest possible use <;>f available

19 electric energy and water, to provide adequate marke~s and 20 outlets therefor, and to prevent the monopolizatio~ thereof. 21 by limited groups or localities, the authority shall acquire, 22 construct, operate, maintain, and improve such canals, eon-" 23 duits, electric transmission lines, rural electric. lines, :sub.-. 24 stations, and other structures a~d facilities. as ,it· d~e~.s p'~ces-~.

1 available for sale, from such project to existing and potential 2 markets, and, in the case of electric energy, to interconnect 3 such project with other Federal projects for the disposition 4 or interchange of electric energy. To provide for emer-5 gencies, break-down relief, and increased safety and economy 6 in operations, the authority may enter into contracts upon 7 suitable terms with public and private power systems for 8 mutual interchange of electric energy and for reciprocal use 9 of transmission facilities.

10 ( c ) To insure the disposition of the electric energy 11 developed and water stored at a project for the benefit of the 12 general public, and particularly of dOlnestic and rural con-13 sumers, the authority shall, in disposing of electric energy 14 and water, give preference and priority to States, districts, 15 counties, and municipalities, including agencies or instru" 16 mentalities thereof or of two or more States (in this Act 17 called public agencies) , and to cooperative and other organ-18 izations not organized or administered for profit but primarily 19 for the purpose of supplying electric energy or water to 20 their members as nearly as possible at cost (in this Act 21 called cooperative agencies). In the event of competing 22 applications by public or cooperative agencies (whether or 23 not formally organized) on the one hand, and other persons 24 or agencies on the other hand, the authority, in order to 2J preserve and protect the preferential rights and priorities

1 of such public and cooperative agencies, shall allow to people

2 and communities within transmission distance of such project

3 reasonable opportunity and time to acquire, purchase, or

con-4 struct the necessary facilities for the use or distribution of

5 such electric energy or water, including reasonable

oppor-6 tunity and time to create and finance such public or

co-7 operative agencies under the laws of the several States.

8 ( d) Subject to the provisions of this Act, each

author-9 ity may enter into contracts for the sale at wholesale of

10 electric energy and water, whether for resale or direct

11- consumption to public and cooperative agencies and to

12 private agencies and persons; and each authority may sell

13 electric energy directly to farms and in rural communities

14 which the authority finds are not adequately serviced with

15 electric energy at reasonable rates. Contracts entered into

,

16 under this subsection shall be binding in accordance with

17 the terms thereof and shall be effective for such period or

18 periods, including -renewals or extensions, a~ may be

pro-19 vided therein, not exceeding in the aggregate twenty years

20 from the respective dates of the making of such contracts.

21 Such contracts shall contain appropriate provisions, to be

22 agreed upon between the authority and the purchaser, for

23 the equitable adjustment of rates at appropriate intervals.

24 In the case of contracts with private agencies or persons

. 1 . ,

the

contracts . sl:tall' con~ain appr9priate prOVISIons authoriz-"2 -in.g the -authority to ·cancel the contrac,t, or authorizing the

. -3.- authority to cancel the con~ract in part, upon t~TO yea,rs'

, 4 nO.tice in writing whenever in the judgment of such

author-,5 ity there is reasonable likelihood that part of the electric

6 energy or water purchased under such contract will be

7 needed to satisfy the preferential rights and priorities of

·8 public .. or cooperative agencies under this Act. Contracts

. ,9 ~J?tered into under this subsection shall contain such terms

10 and conditions, including among other things stipulations

.1,1 .. concerning resale and resale rates, as the authority deems

)

'12 necessal'y or appropriate to effectuate the purposes of this 13 A9t,. to insure, that . resale to the ultimate consumer shall

14 ' be at, r.ates ,which are reasonable, just, fair, and nondis-15: criminatory, or oth~rwise to provide adequate markets and

16 :. outl~ts, for .electric' energy and water .

.17 ' '! ( e) . ,)1ate schedules for the sale of electric energy and

18 ;" water by an authority shall 'be prepared from time to time

•

19. by such aut4ority. Subject to the provisions .of subsection 20 (f), the authority shall fix. such rate schedules as the au-21 thority finds necessary or appropriate to provide adequate

.22 markets and outlets f.or electric energy and water and to

23 encourage, the widest possible use of electric energy and

24 water, ,hayin~ regar~ ,( upon the basis of th~ application 'of

elec-2 the authority) to the" recovery ,of the c6st: ofgenetatmg ana 3 transmitting such electric 'energy' of : stOrIDg ; ana

ttansport-4 ing such water, including appropriate ieserves ::Jor' :': mairt-5 tenance' and upkeep alid the amortization'of the'·:'eat>it~il

itI-6 vestment over a reasonable period of years'. ' Upon, t1i~

7 amortization of such capital investment,rate schedules :'khall 8 from time to time be revised 'and reduced · to

the

'

;fulle'~t

9 extent economically feasible. In ,order to ,disti-ibllte, tli~

10 benefits of integrated transmission systems and 'to,'promo ~.'

11 the equitable distribution of electric energy,' 'fide 's:che'dule~:

12 shall provide for uniform rates, or rate"s uniform' througIDorli

13 prescribed transmission areas." ~: r

14 (f) Whenever, pursuant', to this :

or

any

'

tithef

;

'.A:ct

of,

15 Oongress, there is entrusted to an authority ~

any

}

:rrlultipltJ

16 purpose revenue-producing project, or' whenevet' tlrereaft~F,

17 capital expenditures are made in connection I with 'aIiyiisuchr

18 project, such "authority shall make a thorough investigaiJ

19 tion of such project for the purpose of allocatmg "the co~tt:

20 of such project, or such capital expenditures/ among· ~ tH~~

21 varIOUS purposes served thereby~uch las "navigati6tirtflood~:~

22 control, irrigation, power development, or' other' ~types 01:;

23 development, as the case may be. Oosts 'of farliliti'es having~"~

24 a value only for one purpose shall be' allocated: to . tha£ 'purl'::'~

1. pose; costs of facilities having a joint value for more than

"2 one purpose shall be equitably ~located among such

pur-3 poses in such "manner as the authority deems necessary or

4: appropriate to promote a sound national economy, to en ..

5 courage the widest possible economic use of water for

irri-6 gation and of electric energy for domestic, rural, and

7 industrial needs, and to avoid the imposition upon anyone

8 purpose of a greater share of joint costs than such purpose

9 Inay fairly bear. 1'he authority shall also determine the

10 appropriate periods ,and rates of amortization to be applied

11 to the capital investment allocated to a revenue-producing

12 purpose. The allocation of costs and the periods and rates

13 of amortization so determined" by the authority shall be

14 . subject to the approval of the President, and-as approved

15 -" by the Pr~sident such allocations of costs and· such periods and

16 rates of amortization shall be used in keeping the books

17 of. the authority.

18" STATE COMPACTS

19

SEc.

11. (a) The consent of the Congress, subject to 20 the provisions of this section, is hereby given the several

21 States to enter into agreements and-compacts between or

22 among any two or more States ( 1) to further and

supple-23 ment on behalf of the States the purposes of this Act; and

24 (2) to

carry

out on behalf of the States appropriate projects