States, etc., if No charge to power furnished without profit, etc. Exceptions. No free use of Government structed by States or municipalities primarily designed to provide or improve navigation, licenses therefor shall be issued without charge; and that licenses for the development, transmission, or distribution of power for domestic, mining, or other beneficial use in projects of Small projects. not more than two thousand 12 horsepower installed capacity may be issued without charges, except on tribal lands within Indian reservations; but in no case shall a license be issued free of charge for the development and utilization of power created by any Government dam and that the amount charged therefor in any license shall be such as determined by the Commission. In the event an overpayment of any charge due under this section shall be made by a licensee, the Commission is authorized to allow a credit for such overpayment when charges are due for any subsequent period. [41 Stat. 1069; 49 Stat. 843; 16 U.S.C. 803 (e)] (f) That whenever any licensee hereunder is directly benefited by the construction work of another licensee, a permittee, or of the United States of a storage reservoir or other headwater improvement, the Commission shall require as a condition of the license that the licensee so benefited shall reimburse the owner of such reservoir or other improvements for such part of the annual charges for interest, maintenance, and depreciation thereon as the Commission may deem equitable. The proportion of such charges to be paid by any licensee shall be determined by the Commission. The licensees or permittees affected shall pay to the United States the cost of making such determination as fixed by the Commission. [41 Stat. 1070; 49 Stat. 843-844; 16 U.S.C. 803 (f)] licensee if beneated by work Payment by For benefit ment construc from Govern tion. Whenever such reservoir or other improvement is constructed by the United States the Commission shall assess similar charges against any licensee directly benefited thereby, and any amount so assessed shall be paid into the Treasury of the United States, to be reserved and appropriated as a part of the special fund for headwater improvements as provided in section 17 hereof. [41 Stat. 1070; 49 Stat. 844; 16 U.S.C. 803 (f)] Whenever any power project not under license is Benefit to unl!benefited by the construction work of a licensee or 18 Amended by Act of September 7, 1962, 76 Stat. 447. censed project. Other condi tions. Combinations in restraint of trade, etc., in electric service output. Waiving conditions for minor projects, etc., permittee, the United States or any agency thereof, the Commission, after notice to the owner or owners of such unlicensed project, shall determine and fix a reasonable and equitable annual charge to be paid to the licensee or permittee on account of such benefits, or to the United States if it be the owner of such headwater improvement. [49 Stat. 844; 16 U.S.C. 803 (f)] (g) Such other conditions not inconsistent with the provisions of this Act as the Commission may require. [41 Stat. 1070; 49 Stat. 844; 16 U.S.C. 803 (g)] (h) That combinations, agreements, arrangements, or understandings, express or implied, to limit the output of electrical energy, to restrain trade, or to fix, maintain, or increase prices for electrical energy or service are hereby prohibited. [41 Stat. 1070; 49 Stat. 844; 16 U.S.C. 803 (h)] (i) In issuing licenses for a minor part only of a complete project, or for a complete project of not more lands excepted. than two thousand 13 horsepower installed capacity, allowed; tribal Dams on navigable waters. Additional requirements. locks, etc. the Commission may in its discretion waive such conditions, provisions, and requirements of this Part, except the license period of fifty years, as it may deem to be to the public interest to waive under the circumstances: Provided, That the provision hereof shall not apply to annual charges for use of lands within Indian reservations. [41 Stat. 1070; 49 Stat. 844; 16 U.S.C. 803(i)] SEC. 11. That if the dam or other project works are to be constructed across, along, or in any of the navigable waters of the United States, the Commission may, insofar as it deems the same reasonably necessary to promote the present and future needs of navigation and consistent with a reasonable investment cost to the licensee, include in the license any one or more of the following provisions or requirements: (a) That such licensee shall, to the extent necessary Construction of to preserve and improve navigation facilities, construct, in whole or in part, without expense to the United States, in connection with such dam, a lock or locks, booms, sluices, or other structures for navigation purposes, in accordance with plans and specifications approved by the Chief of Engineers and the Secretary 18 Amended by Act of September 7, 1962, 76 Stat. 447. of the Army 14 and made part of such license. [41 Stat. 1070; 16 U.S.C. 804 (a)] (b) That in case such structures for navigation purposes are not made a part of the original construction at the expense of the licensee, then whenever the United States shall desire to complete such navigation facilities the licensee shall convey to the United States, free of cost, such of its land and its rights-of-way and such right of passage through its dams or other structures, and permit such control of pools as may be required to complete such navigation facilities. [41 Stat. 1070; 16 U.S.C. 804 (b)] (c) That such licensee shall furnish free of cost to the United States power for the operation of such navigation facilities, whether constructed by the licensee or by the United States. [41 Stat. 1070; 16 U.S.C. 804 (c)] etc., for con Conveyance, struction by United States of locks, etc. Power free of tion. cost for opera Installing locks etc., on naviGovernment fails to do,etc. gable waters if SEC. 12. That whenever application is filed for a project hereunder involving navigable waters of the United States, and the Commission shall find upon investigation that the needs of navigation require the construction of a lock or locks or other navigation structures, and that such structures can not, consistent with a reasonable investment cost to the applicant, be provided in the manner specified in section 11, subsection (a) hereof, the Commission may grant the application with the provision to be expressed in the license that the licensee will install the necessary navigation structures if the Government fails to make provision therefor within a time to be fixed in the license and cause a report upon such project to be prepared, with estimates of cost of the power development and of the navigation structures, and shall submit such report to Congress with such recommendations as it Report to Condeems appropriate concerning the participation of the United States in the cost of construction of such navigation structures. [41 Stat. 1070-1071; 16 U.S.C. 805] gress, etc. construction and operation. SEC. 13. That the licensee shall commence the construction of the project works within the time fixed Time limit for in the license, which shall not be more than two years from the date thereof, shall thereafter in good faith and with due diligence prosecute such construction, and shall within the time fixed in the license com14 See footnote 9 on p. 9. Extensions. Termination of license on failure. Proceedings if partly completed. Right of Government to take over, oper ate, etc., at expiration of license. plete and put into operation such part of the ultimate development as the Commission shall deem necessary to supply the reasonable needs of the then available market, and shall from time to time thereafter construct such portion of the balance of such development as the Commission may direct, so as to supply adequately the reasonable market demands until such development shall have been completed. The periods for the commencement of construction may be extended once but not longer than two additional years and the period for the completion of construction carried on in good faith and with reasonable diligence may be extended by the Commission when not incompatible with the public interests. In case the licensee shall not commence actual construction of the project works, or of any specified part thereof, within the time prescribed in the license or as extended by the Commission, then, after due notice given, the license shall, as to such project works or part thereof, be terminated upon written order of the Commission. In case the construction of the project works, or of any specified part thereof, have been begun but not completed within the time prescribed in the license, or as extended by the Commission, then the Attorney General, upon the request of the Commission, shall institute proceedings in equity in the district court of the United States for the district in which any part of the project is situated for the revocation of said license, the sale of the works constructed, and such other equitable relief as the case may demand, as provided for in section 26 hereof. [41 Stat. 1071; 16 U.S.C. 806] SEC. 14. [As amended August 26, 1935 and August 3, 1968.] 15 (a) Upon not less than two years' notice in writing from the Commission the United States shall have the right upon or after the expiration of any license to take over and thereafter to maintain and operate any project or projects as defined in section 3 hereof, and covered in whole or in part by the license, or the right to take over upon mutual agreement with the licensee, all property owned and held by the licensee then valuable and serviceable in the develop 15 Not applicable to any project owned by a State or a municipality. See Act of August 15, 1953 (67 Stat. 587), infra, p. 157. ་ made. of amount. ment, transmission, or distribution of power and which is then dependent for its usefulness upon the continuance of the license, together with any lock or locks or other aids to navigation constructed at the expense of the licensee, upon the condition that before taking Payment to be possession it shall pay the net investment of the licensee in the project or projects taken, not to exceed the fair value of the property taken, plus such reasonable damages, if any, to property of the licensee valuable, serviceable, and dependent as above set forth but not taken, as may be caused by the severance therefrom of property taken, and shall assume all contracts entered into by the licensee with the approval of the Determination Commission. The net investment of the licensee in the project or projects so taken and the amount of such severance damages, if any, shall be determined by the Commission after notice and opportunity for hearing. Such net investment shall not include or be Values exaffected by the value of any lands, rights-of-way, or other property of the United States licensed by the Commission under this Act, by the license or by good will, going value, or prospective revenues; nor shall the values allowed for water rights, rights-of-way, lands, or interest in lands be in excess of the actual reasonable cost thereof at the time of acquisition by the licensee: Provided, That the right of the United States Proviso. or any State or municipality to take over, maintain, and operate any project licensed under this Act at any right reserved. time by condemnation proceedings upon payment of just compensation is hereby expressly reserved. [41 Stat. 1071-1072; 49 Stat. 844-845; 82 Stat. 617; 16 U.S.C. 807(a)] (b) No earlier than five years before the expiration of any license, the Commission shall entertain applications for a new license and decide them in a relicensing proceeding pursuant to the provisions of section 15. In any relicensing proceeding before the Commission any Federal department or agency may timely recommend, pursuant to such rules as the Commission shall prescribe, that the United States exercise its right to take over any project or projects. Thereafter, the Commission, if it does not itself recommend such action pursuant to the provisions of section 7(c) of this Part, shall upon motion of such department or agency stay the effective cluded. Costs of water rights, etc. allowed. Condemnation Right of Gov- take over |