Preliminary permit to maintain priority; term; conditions.

lands, reservations, or streams or other bodies of water over which Congress has jurisdiction under its authority to regulate commerce with foreign nations and among the several States by any person, corporation, state or municipality and to issue such order as it may find appropriate, expedient, and in the public interest to conserve and utilize the navigation and water power resources of the region. [49 Stat. 841; 16 U.S.C. 797 (g)] SEC. 5. [As amended August 26, 1935.] Each preliminary permit issued under this Part shall be for the sole purpose of maintaining priority of application for a license under the terms of this Act for such period or periods, not exceeding a total of three years, as in the discretion of the Commission may be necessary for making examinations and surveys, for preparing maps, plans, specifications, and estimates, and for making financial arrangements. Each such permit shall set forth the conditions under which priority shall be maintained. Such permits shall not be transferable, and may be canceled by order of the Commission upon failure of cancellation by permittees to comply with the conditions thereof or for other good cause shown after notice and opportunity for hearing. [41 Stat. 1067; 49 Stat. 841; 16 U.S.C. 798]

Preliminary permits not transferable; conditions of

Commission;

hearing.

Term of license;

acceptance of conditions.

SEC. 6. [As Amended August 26, 1935.] Licenses under this Part shall be issued for a period not exceeding fifty years. Each such license shall be conditioned upon acceptance by the licensee of all the terms and conditions of this Act and such further conditions, if any, as the Commission shall prescribe in conformity with this Act, which said terms and conditions and the acceptance thereof shall be expressed in said license. Revocation and Licenses may be revoked only for the reasons and in the manner prescribed under the provisions of this Act, and may be altered or surrendered only upon mutual agreement between the licensee and the Commission after thirty days' public notice. Copies of all licenses ing for payment issued under the provisions of this Part and calling

alteration;

conditions;

notice.

Copies of licenses call

of charges to be deposited with General Accounting

Office.

for the payment of annual charges shall be deposited with the General Accounting Office, in compliance with section 3743, Revised Statutes, as amended (U.S.C., title 41, sec. 20). [41 Stat. 1067; 49 Stat. 841; 16 U.S.C. 799]

if plans equally

SEC. 7. [A8 Amended August 26, 1935 and August 3, Preference to 1968.] (a) In issuing preliminary permits hereunder or municipalities, licenses where no preliminary permit has been issued well adapted. and in issuing licenses to new licensees under section 15 hereof the Commission shall give preference to applications therefor by States and municipalities, provided the plans for the same are deemed by the Commission equally well adapted, or shall within a reasonable time to be fixed by the Commission be made equally well adapted, to conserve and utilize in the public interest the water resources of the region; and as between other applicants, the Commission may give preference to the applicant the plans of which it finds and determines are best adapted to develop, conserve, and utilize in the public interest the water resources of the region, if it be satisfied as to the ability of the applicant to carry out such plans. [41 Stat. 1067; 49 Stat. 842; 16 U.S.C. 800 (a)]

Preference to adapted among cants.

plans best other appli

Development

States.

Investigation and report.

(b) Whenever, in the judgment of the Commission, by United the development of any water resources for public purposes should be undertaken by the United States itself, the Commission shall not approve any application for any project affecting such development, but shall cause to be made such examinations, surveys, reports, plans, and estimates of the cost of the proposed development as it may find necessary, and shall submit its findings to Congress with such recommendations as it may find appropriate concerning such development. [41 Stat. 1067; 49 Stat. 842; 16 U.S.C. 800 (b)]

Federal Power

Licensing

(c) Whenever, after notice and opportunity for hearing, the Commission determines that the United States Commission. should exercise its right upon or after the expiration of authority. any license to take over any project or projects for public purposes, the Commission shall not issue a new license to the original licensee or to a new licensee but shall submit its recommendation to Congress together with such information as it may consider appropriate. [82 Stat. 618; 16 U.S.C. 800 (c)]

SEC. 8. That no voluntary transfer of any license, or of the rights thereunder granted, shall be made without the written approval of the Commission; and any successor or assign of the rights of such licensee, whether by voluntary transfer, judicial sale, foreclosure sale, or otherwise, shall be subject to all the conditions of

Approval of transfer;

Commission of

conditions of transfer, judi

clal sale, etc.; successor conditions of

subject to all

license.

Proviso.

Exceptions to voluntary transfer.

Application requirements.

Submission of plans, etc.

Compliance with State laws.

Additional information.

Conditions of licenses.

Project adapted to utilize navigation, water power, etc.

the license under which such rights are held by such licensee and also subject to all the provisions and conditions of this Act to the same extent as though such successor as assign were the original licensee hereunder: Provided, That a mortgage or trust deed or judicial sales made thereunder or under tax sales shall not be deemed voluntary transfers within the meaning of this section. [41 Stat. 1068; 16 U.S.C. 801]

SEC. 9. That each applicant for a license hereunder shall submit to the Commission—

(a) Such maps, plans, specifications, and estimates of cost as may be required for a full understanding of the proposed project. Such maps, plans, and specifications when approved by the Commission shall be made a part of the license; and thereafter no change shall be made in said maps, plans, or specifications until such changes shall have been approved and made a part of such license by the Commission. [41 Stat. 1068; 16 U.S.C. 802(a)]

(b) Satisfactory evidence that the applicant has complied with the requirements of the laws of the State or States within which the proposed project is to be located with respect to bed and banks and to the appropriation, diversion, and use of water for power purposes and with respect to the right to engage in the business of developing, transmitting, and distributing power, and in any other business necessary to effect the purposes of a license under this Act. [41 Stat. 1068; 16 U.S.C. 802 (b)] (c) Such additional information as the Commission may require. [41 Stat. 1068; 16 U.S.C. 802 (c)]

SEC. 10. [As. Amended August 26, 1935, September 7, 1962, and August 3, 1968.] All licenses issued under this Part shall be on the following conditions:

(a) That the project adopted, including the maps, plans, and specifications, shall be such as in the judgment of the Commission will be best adapted to a comprehensive plan for improving or developing a waterway or waterways for the use or benefit of interstate or foreign commerce, for the improvement and utilization of water power development, and for other beneficial public uses, including recreational purposes; and if necessary in order to secure such plan the Commission shall have authority to require the modification

of any project and of the plans and specifications of the project works before approval. [41 Stat. 1068; 49 Stat. 842; 16 U.S.C. 803 (a)]

alterations.

(b) That except when emergency shall require for Restriction on the protection of navigation, life, health, or property, no substantial alteration or addition not in conformity with the approved plans shall be made to any dam or other project works constructed hereunder of an installed capacity in excess of two thousand 10 horsepower without the prior approval of the Commission; and any emergency alteration or addition so made shall thereafter be subject to such modification and change as the Commission may direct. [41 Stat. 1068-1069; 49 Stat. 842; 16 U.S.C. 803 (b)]

(c) That the licensee shall maintain the project works in a condition of repair adequate for the purposes of navigation and for the efficient operation of said works in the development and transmission of power, shall make all necessary renewals and replacements, shall establish and maintain adequate depreciation reserves for such purposes, shall so maintain and operate said works as not to impair navigation, and shall conform to such rules and regulations as the Commission may from time to time prescribe for the protection of life, health, and property. Each licensee hereunder shall be liable for all damages occasioned to the property of others by the construction, maintenance, or operation of the project works or of the works appurtenant or accessory thereto, constructed under the license, and in no event shall the United States be liable therefor. [41 Stat. 1069; 49 Stat. 842; 16 U.S.C. 803 (c)]

Project works tained in

to be maineffective operation, etc.

Liability for property of

damages to

others.

Amortization

(d) That after the first twenty years of operation, out of surplus earned thereafter, if any, accumulated in excess of a specified reasonable rate of return upon the net investment of a licensee in any project or projects under license, the licensee shall establish and maintain amortization reserves, which reserves shall, in the discretion of the Commission, be held until the termination of established. the license or be applied from time to time in reduction of the net investment. Such specified rate of return and the proportion of such surplus earnings to be paid into and held in such reserves shall be set forth in the

10 Amended by Act of September 7, 1962, 76 Stat. 447.

reserves to be

Disposition of.

Rate of return to be specified in license.

Annual charges. Basis of.

Price to consumers.

Proviso.

license. For any new license issued under section 15, the amortization reserves under this subsection shall be maintained on and after the effective date of such new license. [41 Stat. 1069; 49 Stat. 843; 82 Stat. 617; 16 U.S.C. 803 (d)]

(e) That the licensee shall pay to the United States reasonable annual charges in an amount to be fixed 11 by the Commission for the purpose of reimbursing the United States for the costs of the administration of this Part; for recompensing it for the use, occupancy, and enjoyment of its lands or other property; and for the expropriation to the Government of excessive profits until the respective States shall make provision for preventing excessive profits or for the expropriation thereof to themselves, or until the period of amortization as herein provided is reached, and in fixing such charges the Commission shall seek to avoid increasing the price to the consumers of power by such charges, and any such charges may be adjusted from time to time by the Commission as conditions may require: Provided, That when licenses are issued involving the use of Government dams or other structures owned by the United States or tribal lands embraced within Indian reservations the Commission shall, subject to the tures or Indian approval of the Secretary of the Interior in the case of such dams or structures in reclamation projects and, in the case of such tribal lands, subject to the approval of the Indian tribe having jurisdiction of such lands as provided in section 16 of the Act of June 18, 1934 (48 Stat. 984), fix a reasonable annual charge for the use thereof, and such charges may with like approval be readjusted by the Commission at the end of twenty years after the project is available for service and at periods of not less than ten years thereafter upon notice and opportunity for hearing: Provided further, That licenses for the development, transmission, or distribution of power by States or municipalities shall be issued and enjoyed without charge to the extent such power is sold to the public without profit or is used by such State or municipality for State or municipal purposes, except that as to projects constructed or to be con

Use of Government struc

tribal lands.

Proviso.

11 See section 3 of Act of August 15, 1953, infia, p. 157, relative to State and municipal licensees.