Chapter 285. To create a Federal Power Commission; to provide for the improvement of navigation; the development of water power; the use of the public lands in relation thereto, and to repeal section 18 of the River and Harbor Appropriation Act, approved August 8, 1917, and for other purposes
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CHAP. 285.— An Act To create a Federal Power Commission; to provide for the improvement of navigation; the development of water power; the use of the public lands in relation thereto, and to repeal section 18 of the River and Harbor Appropriation Act, approved August 8, 1917, and for other purposes. June 10, 1920. [[H. R. 3184](/us/bill/66/hr/3184).] [[Public, No. 280](/us/pl/66/280).]*Post*, p. 1639. *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, * Federal Water Power Act.Federal Power Commission.Creation and composition of.
That a commission is hereby created and established, to be known as the Federal Power Commission (hereinafter referred to as the commission), which shall be composed of the Secretary of War, the Secretary of the Interior, and the Secretary of Agriculture. Two members of the commission shall constitute a quorum for the transaction of business, and the commission shall nave an official seal, which shall be judicially noticed. The President shall designate the chairman of the commission.
Sec. 2. That the commission shall appoint an executive secretary,Executive secretary. who shall receive a salary of $5,000 a year, and prescribe his duties, and the commission may request the President of the United StatesDetail of Army engineer officer. to detail an officer from the United States Engineer Corps to serve the commission as engineer officer, his duties to be prescribed by the commission. The work of the commission shall be performed by and through theExecution of work by Departments of War, etc.
Departments of War, Interior, and Agriculture and their engineering, technical, clerical, and other personnel except as may be otherwise provided by law. All the expenses of the commission, including rent in the DistrictExpenses authorized. of Columbia, all necessary expenses for transportation and subsistence, including, in the discretion of the commission, a per diem of not exceeding $4 in lieu of subsistence incurred by its employees under its orders in making any investigation, or conducting field work, or upon official business outside of the District of Columbia and away from their designated points of duty, shall be allowed and paid on the presentation of itemized vouchers therefor approved by a member or officer of the commission duly authorized for that purpose; and in order to defray the expenses made necessary by the provisions of this Act there is hereby authorized to be appropriated such sums as CongressAppropriation. may hereafter determine, and the sum of $100,000 is hereby appropriated, out of any moneys in the Treasury not otherwise appropriated, available until expended, to be paid out upon warrants drawn on the Secretary of the Treasury upon order of the commission.
Sec. 3. That the words defined in this section shall have the followingMeaning of terms as used. meanings for the purposes of this Act, to wit: " “Public lands” means such lands and interest in lands owned by“Public lands.” the United States as are subject to private appropriation and disposal under public-land laws. It shall not include “reservations,” as hereinafter defined. “Reservations” means national monuments, national parks, national“Reservations." forests, tribal lands embraced within Indian reservations, military reservations, and other lands and interests in lands owned by the 1064 United States, and withdrawn, reserved, or withheld from private appropriation and disposal under the public-land laws; also lands and interests in lands acquired and held for any public purpose.
“Corporation” means a corporation organized under the laws of“Corporation.” any State or of the United States empowered to develop, transmit, distribute, sell, lease, or utilize power in addition to such other powers as it may possess, and authorized to transact in the State or States in which its project is located all business necessary to effect the purposes of a license under this Act. It shall not include “municipalities” as hereinafter defined. “State” means a State admitted to the Union, the District of Columbia,“State.” and any organized Territory of the United States.
“Municipality” means a city, county, irrigation district, drainage“Municipality.” district, or other political subdivision or agency of a State competent under the laws thereof to carry on the business of developing, transmitting, utilizing, or distributing power. “Navigable waters” means those parts of streams or other bodies“Navigable waters.” of water over which Congress has jurisdiction under its authority to regulate commerce with foreign nations and among the several States, and which either in their natural or improved condition, notwithstanding interruptions between the navigable parts of such streams or waters by falls, shallows, or rapids compelling land carriage, are used or suitable for use for the transportation of persons or property in interstate or foreign commerce, including therein all such interrupting falls, shallows, or rapids; together with such other parts of streams as shall have been authorized by Congress for improvement by the United States or shall have been recommended to Congress for such improvement after investigation under its authority.
“Municipal purposes” means and includes all purposes within municipal“Municipal purposes.” powers as defined by the constitution or laws of the State or by the charter of the municipality. “Government dam” means a dam or other work, constructed or“Government dam.” owned by the United States for Government purposes, with or without contribution from others. “Project” means complete unit of improvement or development,“Project.” consisting of a power house, all water conduits, all dams and appurtenant works and structures (including navigation structures) which are a part of said unit, and all storage, diverting, or forebay reservoirs directly connected therewith, the primary line or lines transmitting power therefrom to the point of junction with the distribution system or with the interconnected primary transmission system, all miscellaneous structures used and useful in connection with said unit or any part thereof, and all water rights, rights of way, ditches, dams, reservoirs, lands, or interest in lands, the use and occupancy of which are necessary or appropriate in the maintenance and operation of such unit.
“Project works” means the physical structures of a project.“Project works.” “Net investment” in a project means the actual legitimate original“Net investment.” cost thereof as defined and interpreted in the “classification of investment in road and equipment of steam roads, issue of 1914, Interstate Commerce Commission,” plus similar costs of additions thereto and betterments thereof, minus the sum of the following items properly allocated thereto, if and to the extent that such items have been accumulated during the period of the license from earnings in excess of a fair return on such investment:
(a)Unappropriated surplus, (b)Items excluded. aggregate credit balances of current depreciation accounts, and
(c)aggregate appropriations of surplus or income held in amortization, sinking fund, or similar reserves, or expended for additions or betterments or used for the purposes for which such reserves were created. The term “cost” shall include, in so far as applicable, the elements“Cost.” 1065 thereof prescribed in said classification, but shall not include expenditures from funds obtained through donations by States, municipalities, individuals, or others, and said classification of investment of the Interstate Commerce Commission shall in so far as applicable be published and promulgated as a part of the rules and regulations of the commission. " Sec. 4. That the commission is hereby authorized and empowered—Powers of Commission.
(a)To make investigations and to collect and record data concerningTo investigate, etc., water resources, power industry, etc. the utilization of the water resources of any region to be developed, the water power industry and its relation to other industries and to interstate or foreign commerce, and concerning the location, capacity, development costs, and relation to markets of power sites, and whether the power from Government dams can be advantageouslyUse of Government dams, etc. used by the United States for its public purposes, and what is a fair value of such power, to the extent the commission may deem necessary or useful for the purposes of this Act. In order to aid the commission in determining the net investmentDetailed statements of cost of construction, etc., to be furnished by licensees. of a licensee in any project, the licensee shall, upon oath, within a reasonable period of time, to be fixed by the commission, after the construction of the original project or any addition thereto or betterment thereof, file with the commission, in such detail as the commission may require, a statement in duplicate showing the actual legitimate cost of construction of such project, addition, or betterment, and the price paid for water rights, rights of way, lands, or interest in lands. The commission shall deposit one of said statements with the Secretary of the Treasury. The licensee shall grant to the commissionFree access to project, records, etc. or to its duly authorized agent or agents, at all reasonable times, free access to such project, addition, or betterment, and to all maps, profiles, contracts, reports of engineers, accounts, books, records, and all other papers and documents relating thereto.
(b)To cooperate with the executive departments and otherCooperate with Federal or State agencies in investigations. agencies of State or National Governments in such investigations; and for such purpose the several departments and agencies of the National Government are authorized and directed upon the request of the commission, to furnish such records, papers, and information in their possession as may be requested by the commission, and temporarily to detail to the commission such officers or experts as may be necessary in such investigations.
(c)To make public from time to time the information securedPublish information, etc. hereunder, and to provide for the publication of its reports and investigations in such form and manner as may be best adapted for public information and use. The commission, on or before the first MondayReports to Congress. in December of each year, shall submit to Congress for the fiscal year preceding a classified report showing the permits and licenses issued under this Act, and in each case the parties thereto, the terms prescribed, and the moneys received, if any, on account thereof.
(d)To issue licenses to citizens of the United States, or to anyIssue licenses for improving navigation, developing water power, etc. association of such citizens, or to any corporation organized under the laws of the United States or any State thereof, or to any State, or municipality for the purpose of constructing, operating, and maintaining dams, water conduits, reservoirs, power houses, transmission lines, or other project works necessary or convenient for the development and improvement of navigation, “ and for the development, transmission, and utilization of power across, along, from or in any of the navigable waters of the United States, or upon any part of the*Post*, p. 1353. public lands and reservations of the United States (including the Territories), or for the purpose of utilizing the surplus water or water power from any Government dam, except as herein provided: *Provided,**Provisos.*Restriction on use in reservations. That licenses shall be issued within any reservation only after a finding by the commission that the license will not interfere or be 1066 inconsistent with the purpose for which such reservation was created or acquired, and shall be subject to and contain such conditions as the Secretary of the department under whose supervision such reservation falls shall deem necessary for the adequate protection and utilization of such reservation: *Provided further, *That no licenseApproval of dams, etc., on navigable waters. affecting the navigable capacity of any navigable waters of the United States shall be issued until the plans of the dam or other structures affecting navigation have been approved by the Chief of Engineers and the Secretary of War. Whenever the contemplated improvement is, in the judgment of the commission, desirable and justified in the public interest for the purpose of improving or developing a waterway or waterways for the use or benefit of interstate of foreign commerce, a finding to that effect shall be made by the commission and shall become a part of the records of the commission: *Provided further, *That in case the commission shall find thatUse of Government dams for public purposes. any Government dam may be advantageously used by the United States for public purposes m addition to navigation, no license therefor shall be issued until two years after it shall have reported to Congress the facts and conditions relating thereto, except that this provision shall not apply to any Government dam constructed prior to the passage of this Act: *And provided further, *That upon the filing ofNotice of application without preliminary permit. any application for a license which has not been preceded by a preliminary permit under subsection
(e)of this section, notice shall be given and published as required by the proviso of said subsection.
(e)To issue preliminary permits for the purpose of enabling applicantsIssue preliminary permits to applicants.*Post*, p. 1068. for a license hereunder to secure the data and to perform the acts required by section 9 hereof: *Provided, however, *That upon the*Proviso.*Notice thereof to State, etc. filing of any application for a preliminary permit by any person, association, or corporation the commission, before granting such application, shall at once give notice of such application in writing to any State or municipality likely to be interested in or affected by such application; and shall also publish notice of such application for eight weeks in a daily or weekly newspaper published in the county or counties in which the project or any part thereof or the lands affected thereby are situated.
(f)To prescribe rules and regulations for the establishment of aPrescribe rules for accounting, operating, etc. system of accounts and for the maintenance thereof by licensees hereunder; to examine all books and accounts of such licensees at any time; to require them to submit at such time or times as the commission may require statements and reports, including full information as to assets and liabilities, capitalization, net investment and reduction thereof, gross receipts, interest due and paid, depreciation and other reserves, cost of project, cost of maintenance and operation of the project, cost of renewals and replacements of the project works, and as to depreciation of the project works and as to production, transmission, use and sale of power; also to require any licensee to make adequate provision for currently determining said costs and other facts. All such statements and reports shall beVerification. made upon oath, unless otherwise specified, and in such form and on such blanks as the commission may require. Any person who, for the purpose of deceiving, makes or causes to be made any falsePunishment for false statements, etc. entry in the books or the accounts of such licensee, and any person who, for the purpose of deceiving, makes or causes to be made any false statement or report in response to a request or order or direction from the commission for the statements and report herein referred to shall, upon conviction, be fined not more than $2,000 or imprisoned not more than five years, or both.
(g)To hold hearings and to order testimony to be taken byConduct hearings, order depositions, etc. deposition at any designated place in connection with the application for any permit or license, or the regulation of rates, service, or securities, or the making of any investigation, as provided in this Act; 1067 and to require by subpoena, signed by any member of the commission, the attendance and testimony of witnesses and the production of documentary evidence from any place in the United States, and in case of disobedience to a subpoena the commission may invoke the aid ofAid of Federal courts. any court of the United States in requiring the attendance and testimony of witnesses and the production of documentary evidence. Any member, expert, or examiner of the commission may, when dulyAdminister oaths, etc. designated by the commission for such purposes, administer oaths and affirmations, examine witnesses and receive evidence. Depositions may be taken before any person designated by the commission or by its executive secretary and empowered to administer oaths, shall be reduced to writing by such person or under his direction,Witness fees, etc. and subscribed by the deponent. Witnesses summoned before the commission shall be paid the same fees and mileage that are paid witnesses in the courts of the United States, and witnesses whose depositions are taken and persons taking the same shall severally be entitled to the same fees as are paid for like services in the courts of the United States.
(h)To perform any and all acts, to make such rules and regulations,Other necessary powers. and to issue such orders not inconsistent with this Act as may be necessary and proper for the purpose of carrying out the provisions of this Act. Sec. 5. That each preliminary permit issued under this Act shallPreliminary permits.Issue of, to obtain priority for licenses. 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 conditionsConditions. under which priority shall be maintained and a license issued. Such permits shall not be transferable, and may be canceled by order of the commission upon failure of permittees to comply with the conditions thereof. Sec. 6. That licenses under this Act shall be issued for a periodLicenses.Period of, and conditions controlling. 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, etc. 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 ninety days’ public notice. Sec. 7. That in issuing preliminary permits hereunder or licensesPreferences to State, etc., applications.*Post*, p. 1072. where no preliminary permit has been issued 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 navigation and water resources of the region; and as between other applicants, the commission mayBetween other applicants. 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 navigation and water resources of the region, if it be satisfied as to the ability of the applicant to carry out such plans. That whenever, in the judgment of the commission, the developmentAction if Commission deem Govemnent should undersake project. of any project should be undertaken by the United States itself, the commission shall not approve any application for such project by any citizen, association, corporation, State, or municipality, but 1068 shall cause to be made such examinations, surveys, reports, plans, and estimates of the cost of the project as it may deem necessary, and shall submit its findings to Congress with such recommendations as it may deem appropriate concerning the construction of such project or completion of any project upon any Government dam by the United States. The commission is hereby authorized and directed to investigateGreat Falls of the Potomac River.Investigation of cost, etc., of power plant, etc., at. and, on or before the 1st day of January, 1921, report to Congress the cost and, in detail, the economic value of the power plant outlined in project numbered 3, House Document numbered 1400, Sixty-second Congress, third session, in view of existing conditions, utilizing such study as may heretofore have been made by any department of the Government; also in connection with such project to submit plansIncrease of water supply, D. C. Appropriation. and estimates of cost necessary to secure an increased and adequate water supply for the District of Columbia. For this purpose the sum of $25,000, or so much thereof as may be necessary, is hereby appropriated. Sec. 8. That no voluntary transfer of any license, or of the rightsTransfers of licenses, etc,, restricted. 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 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 or assign were the original licensee hereunder: *Provided,**Proviso.*Mortgages, etc., excepted. 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. Sec. 9. That each applicant for a license hereunder shall submit toApplication requirements. the commission—
(a)Such maps, plans, specifications, and estimates of cost as maySubmission of plans, etc. 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 shallChanges restricted. 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.
(b)Satisfactory evidence that the applicant has complied with theCompliance with State laws. 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.
(c)Such additional information as the commission may require.Additional information. Sec. 10. That all licenses issued under this Act shall be on theConditions of licenses. following conditions:
(a)That the project adopted, including the maps, plans, and specifications,Project adapted to utilize navigation, water power, etc. shall be such as in the judgment of the commission will be best adapted to a comprehensive scheme of improvement and utilization for the purposes of navigation, of water-power development, and of other beneficial public uses; and if necessary in order to secure such scheme the commission shall have authority to require the modification of any project and of the plans and specifications of the project works before approval.
(b)That except when emergency shall require for the protection ofRestriction on alterations. 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 a capacity in excess of one hundred horsepower without the prior approval of the 1069 commission; and any emergency alteration or addition so made shall thereafter be subject to such modification and change as the commission may direct.
(c)That the licensee shall maintain the project works in a conditionProject works to be maintained in effective operation, etc. 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 damagesLiability for damages to property of others. 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.
(d)That after the first twenty years of operation out of surplusAmortization reserves to be established.Disposition of. earned thereafter, if any, accumulated in excess of a specified reasonable rate of return upon the actual, legitimate 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 the license or be applied from time to time in reduction of the net investment. Such specified rate of return and the proportion of suchRate to be specified in license. surplus earnings to be paid into and held in such reserves shall be set forth in the license.
(e)That the licensee shall pay to the United States reasonableAnnual charges.Basis of. annual charges in an amount to be fixed by the commission for the purpose of reimbursing the United States for the costs of the administration of this Act; 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 amortizationPrice to consumers. 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 charges for the expropriation of excessive profits may be adjusted from time to time by the commission as conditions may require: *Provided, *That when licenses are*Provisos.*Use of Government structures, or Indian tribal lands. 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 fix a reasonable annual charge for the use thereof, and such charges may be readjusted at the end of twenty years after the beginning of operations and at periods of not less than ten years thereafter in a manner to be described in each license: *Provided, *That licenses for the development, transmission,No charge to States, etc., if power furnished public without profit, etc. 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 constructed by States or municipalities primarily designed to provide or improve navigation licenses therefor shall be issuedSmall projects. without charge; and that licenses for the development, transmission, or distribution of power for domestic, mining, or other beneficial use in projects of not more than one hundred horsepower capacity mayExceptions. be issued without charge, except on tribal lands within Indian reservations; but in no case shall a license be issued free of charge for theNo free use of Government dam. 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. 1070
(f)That whenever any licensee hereunder is directly benefited byPayment by licensee if benefited by work of another. 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 lincensee 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. Whenever such reservoir or other improvement is constructedFor work of Government construction. 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 m section 17 hereof.*Post*, p. 1072.Other conditions.
(g)Such further conditions not inconsistent with the provisions of this Act as the commission may require.
(h)That combinations, agreements, arrangements, or understandings,Combinations in restraint of trade, etc., in electric service prohibited. 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.
(i)In issuing licenses for a minor part only of a complete project,Waiving conditions forminor projects, etc., allowed. or for a complete project of not more than one hundred horsepower capacity, the commission may in its discretion waive such conditions, provisions, and requirements of this Act, 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 provisions hereof shall*Proviso.*Indian lands excepted. not apply to lands within Indian reservations. Sec. 11. That if the dam or other project works are to be constructedDams on navigable waters.Additional requirements to promote navigation. across, along, or in any of the navigable waters of the United States, the commission may, in so far 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 to preserveConstruction of locks, etc. 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 of War and made part of such license.
(b)That in case such structures for navigation purposes are notConveyance, etc., for construction by United States, of locks, etc. 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.
(c)That such licensee shall furnish free of cost to the United StatesPower free of cost for operation. power for the operation of such navigation facilities, whether constructed by the licensee or by the United States. Sec. 12. That whenever application is filed for a project hereunderInstalling locks, etc., on navigable waters, if Government fails so to do, etc. 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 cannot, 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 the application with the provision to be expressed in the license that the licensee will install the necessary navigation structures if the 1071 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,Report to Congress, etc. 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 deems appropriate concerning the participation of the United States in the cost of construction of such navigation structures. Sec. 13. That the licensee shall commence the construction of theTime limit for construction and operation. project works within the time fixed 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 complete 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 commencementExtensions. 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 theTermination of license on failure. 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. InProceedings if partly completed. 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*Post*, p. 1076. other equitable relief as the case may demand, as provided for in section 26 hereof. Sec. 14. That upon not less than two years’ notice in writing fromRight of Government to take over, operate, etc., on expiration of license. 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,*Ante*, p. 1064. 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 development, 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 takingPayment to be made. 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 commission. The net investment of the licensee inDetermination of amount. the project or projects so taken and the amount of such severance damages, if any, shall be determined by agreement between the commission and the licensee, and in case they can not agree, by proceedings in equity instituted by the United States in the district court of the United States in the district within which any such property may be located: *Provided, *That such net investment shall*Provisos.*Values excluded. 1072 not include or be affected 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: *Provided further, *That the values allowed forCosts for water rights, etc., allowed. water rights, rights of way, lands, or interest in lands shall not 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 orCondemnation right reserved. any State or municipality to take over, maintain, and operate any project licensed under this Act at any time by condemnation proceedings upon payment of just compensation is hereby expressly reserved. Sec. 15. That if the United States does not, at the expiration ofIssue of new licenses. To original licensee. the original license, exercise its right to take over, maintain, and operate any project or projects of the licensee, as provided in section 14 hereof, the commission is authorized to issue a new license to the original licensee upon such terms and conditions as may be authorized or required under the then existing laws and regulations, or to issue a new license under said terms and conditions to a new licensee,To new licensee. which license may cover any project or projects covered by theCondition. original license, and shall be issued on the condition that the new licensee shall, before taking possession of such project or projects, pay such amount, and assume such contracts as the United States is required to do, in the manner specified in section 14 hereof: *Provided,**Proviso.*Yearly continuance of original license. That in the event the United States does not exercise the right to take over or does not issue a license to a new licensee, or issue a new license to the original licensee, upon reasonable terms, then the commission shall issue from year to year an annual license to the then licensee under the terms and conditions of the original license until the property is taken over or a new license is issued as aforesaid. Sec. 16. That when in the opinion of the President of the UnitedTemporary possession of project by the Government for military, etc., uses. States, evidenced by a written order addressed to the holder of any license hereunder, the safety of the United States demands it, the United States shall have the right to enter upon and take possession of any project, or part thereof, constructed, maintained, or operated under said license, for the purpose of manufacturing nitrates, explosives, or munitions of war, or for any other purpose involving the safety of the United States, to retain possession, management, and control thereof for such length of time as may appear to the President to be necessary to accomplish said purposes, and then to restore possession and control to the party or parties entitled thereto; andBasis of compensation. m the event that the United States shall exercise such right it shall pay to the party or parties entitled thereto just and fair compensation for the use of said property as may be fixed by the commission upon the basis of a reasonable profit in time of peace, and the cost of restoring said property to as good condition as existed at the time of the taking over thereof, less the reasonable value of any improvements that may be made thereto by the United States and which are valuable and serviceable to the licensee. Sec. 17. That all proceeds from any Indian reservation shallProceeds.From Indian lands.Disposition of all other. be placed to the credit of the Indians of such reservation. All other charges arising from licenses hereunder shall be paid into the Treasury of the United States, subject to the following distribution: TwelveTo miscellaneous receipts. and one-half per centum thereof is hereby appropriated, to be paid into the Treasury of the United States and credited to “Miscellaneous receipts”; 50 per centum of the charges arising from licenses hereunderFrom public lands, etc. for the occupancy and use of public lands, national monuments, national forests, and national parks shall be paid into, reserved, and appropriated as a part of the reclamation fund created by theTo reclamation fund.Vol. 32, p. 388. Act of Congress known as the Reclamation Act, approved June 17, 1073 1902; and 37 per centum of the charges arising from licenses hereunderTo States. for the occupancy and use of national forests, national parks, public lands, and national monuments, from development within the boundaries of any State shall be paid by the Secretary of the Treasury to such State; and 50 per centum of the charges arisingFrom all other licenses. from all other licenses hereunder is hereby reserved and appropriated as a special fund in the Treasury to be expended under the directionTo special navigation improvement fund. of the Secretary of War in the maintenance and operation of dams and other navigation structures owned by the United States or in the construction, maintenance, or operation of headwater or other improvements of navigable waters of the United States. Sec. 18. That the operation of any navigation facilities whichNavigation facilities subject to regulation, etc., by Secretary of War. may be constructed as a part of or in connection with any dam or diversion structure built under the provisions of this Act, whether at the expense of a licensee hereunder or of the United States, shall at all times be controlled by such reasonable rules and regulations in the interest of navigation, including the control of the level of the pool caused by such dam or diversion structure as may be made from time to time by the Secretary of War. Such rules and regulationsMaintenance of lights, fishways, etc. may include the maintenance and operation by such licensee at its own expense of such lights and signals as may be directed by the Secretary of War, and such fishways as may be prescribed by the Secretary of Commerce; and for willful failure to comply with anyPenalty for noncompliance. such rule or regulation such licensee shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished as*Post*, p. 1076. provided in section 25 hereof. Sec. 19. That as a condition of the license, every licensee hereunderPublic service licensees.State regulations to control. which is a public-service corporation, or a person, association, or corporation owning or operating any project and developing, transmitting, or distributing power for sale or use in public service, shall abide by such reasonable regulation of the services to be rendered to customers or consumers of power, and of rates and charges of payment therefor, as may from time to time be prescribed by any duly constituted agency of the State in which the service is rendered or the rate charged. That in case of the development, transmission,Regulation by Commission, if no State provision therefor. or distribution, or use in public service of power by any licensee hereunder or by its customer engaged in public service within a State which has not authorized and empowered a commission or other agency or agencies within said State to regulate and control the services to be rendered by such licensee or by its customer engaged in public service, or the rates and charges of payment therefor, or the amount or character of securities to be issued by any of said parties, it-is agreed as a condition of such license that jurisdiction is hereby conferred upon the commission, upon complaint of any person aggrieved or upon its own initiative, to exercise such regulation and control until such time as the State shall have provided a commission or other authority for such regulation and control: *Provided, *That*Proviso.*To cease when State provision made. the jurisdiction of the commission shall cease and determine as to each specific matter of regulation and control prescribed in this section as soon as the State shall have provided a commission or other authority for the regulation and control of that specific matter. Sec. 20. That when said power or any part thereof shall enter intoReasonable, etc., rates for power used in interstate commerce. interstate or foreign commerce the rates charged and the service rendered by any such licensee, or by any subsidiary corporation, the stock of which is owned or controlled directly or indirectly by such licensee, or by any person, s corporation, or association purchasing power from such licensee for sale and distribution or use in public service shall be reasonable, nondiscriminatory, and just to the customer and all unreasonable discriminatory and unjust rates orDiscriminatory, etc., unlawful.Commission to enforce if no authority provided by State. services are hereby prohibited and declared to be unlawful; and whenever any of the States directly concerned has not provided a 1074 commission or other authority to enforce the requirements of this section within such State or to regulate and control the amount and character of securities to be issued by any of such parties or such States are unable to agree through their properly constituted authorities on the services to be rendered or on the rates or charges of payment therefor, or on the amount or character of securities to be issued by any of said parties, jurisdiction is hereby conferred upon the commission, upon complaint of any person aggrieved, upon the request of any State concerned, or upon its own initiative to enforce the provisions of this section, to regulate and control so much of the services rendered, and of the rates and charges of payment therefor as constitute interstate or foreign commerce and to regulate the issuance of securities by the parties included within this section, and securities issued by the licensee subject to such regulations shall be allowed only for the bona fide purpose of financing and conducting the business of such licensee. The administration of the provisions of this section, so far asProcedure and practice to conform with Interstate Commerce. applicable, shall be according to the procedure and practice in fixing and regulating the rates, charges, and practices of railroad companies as provided in the Act to regulate commerce, approvedVol. 24, p. 379. February 4, 1887, as amended, and that the parties subject to such regulation shall have the same rights of hearing, defense, and review as said companies in such cases. In any valuation of the property of any licensee hereunder for purposesValuation of property for rate making limited. of rate making, no value shall be claimed by the licensee or allowed by the commission for any project or projects under license in excess of the value or values prescribed in section 14 hereof for the*Ante*, p. 1071. purposes of purchase by the United States, but there shall be included the cost to such licensee of the construction of the lock or locks or other aids of navigation and all other capital expenditures required by the United States, and no value shall be claimed or allowed for the rights granted by the commission or by this Act. Sec. 21. That when any licensee can not acquire by contract orSecuring dam sites, etc., by right of eminent domain. pledges an unimproved dam site or the right to use or damage the lands or property of others necessary to the construction, maintenance, or operation of any dam, reservoir, diversion structure, or the works appurtenant or accessory thereto, in conjunction with an improvement which in the judgment of the commission is desirable and justified in the public interest for the purpose of improving or developing a waterway or waterways for the use or benefit of interstate or foreign commerce, it may acquire the same by the exercise of the right of eminent domain in the district court of the United States for theJurisdiction of Federal courts. district in which such land or other property may be located, or in the State courts. The practice and procedure in any action or proceeding for that purpose in the district court of the United States shall conform as nearly as may be with the practice and procedure in similar action or proceeding in the courts of the State where the property is situated: *Provided, *That United States district courts*Proviso.*Amount required. shall only have jurisdiction of cases when the amount claimed by the owner of the property to be condemned exceeds $3,000. Sec. 22. That whenever the public interest requires or justifies theContracts for service beyond term of license, permitted. execution by the licensee of contracts for the sale and delivery of power for periods extending beyond the date of termination of the license, such contracts may be entered into upon the joint approval of the commission and of the public-service commission or otherApproval required, etc. similar authority in the State in which the sale or delivery of power is made, or if sold or delivered in a State which has no such public-service commission, then upon the approval of the commission, and thereafter, in the event of failure to issue a new license to the original 1075 licensee at the termination of the license, the United States or the new licensee, as the case may be, shall assume and fulfill all such contracts. Sec. 23. That the provisions of this Act shall not be construed asExisting rights, etc., protected. affecting any permit or valid existing right of way heretofore granted, or as confirming or otherwise affecting any claim, or as affecting any authority heretofore given pursuant to law, but any person, association, corporation, State, or municipality, holding or possessing such permit, right of way, or authority may apply for a license hereunder, and upon such application the commission may issue to any suchIssue of licenses under. applicant a license in accordance with the provisions of this Act, and in such case the provisions of this Act shall apply to such applicant as a licensee hereunder: *Provided, *That when application is*Proviso.* Valuation of project. made for a license under this section for a project or projects already constructed, the fair value of said project or projects, determined as provided in this section, shall for the purposes of this Act and of said license be deemed to be the amount to be allowed as the net investment of the applicant in such project or projects as of the date of such license, or as of the date of such determination, if license has not been issued. Such fair value may, in the discretion of the commission,Method of determining. be determined by mutual agreement between the commission and the applicant or, in case they can not agree, jurisdiction is hereby conferred upon the district court of the United States in the district within which such project or projects may be located, upon the application of either party, to hear and determine the amount of such fair value. That any person, association, corporation, State, or municipalityDams, etc., over other than navigable waters.License required if interests of commerce affected thereby. intending to construct a dam or other project works across, along, over, or in any stream or part thereof, other than those defined herein as navigable waters, and over which Congress has jurisdiction under its authority to regulate commerce between foreign nations and among the several States, may in their discretion file declaration of such intention with the commission, whereupon the commission shall cause immediate investigation of such proposed construction to be made, and if upon investigation it shall find that the interests of interstate or foreign commerce would be affected by such proposed construction, such person, association, corporation. State, or municipality shall not proceed with such construction until it shall have applied for and shall have received a license under the provisions of this Act. IfPermission if not affecting commerce. the commission shall not so find, and if no public lands or reservations are affected, permission is hereby granted to construct such dam or other project works in such stream upon compliance with State laws. Sec. 24. That any lands of the United States included in any proposedLands within projects reserved from entry, etc. project under the provisions of this Act shall from the date of filing of application therefor be reserved from entry, location, or other disposal under the laws of the United States until otherwise directedNotice to land office. by the commission or by Congress. Notice that such application has been made, together with the date of filing thereof and a description of the lands of the United States affected thereby, shall be filed in the local land office for the district in which such lands are located.Entry, etc., permitted, subject to power reservation. Whenever the commission shall determine that the value of any lands of the United States so applied for, or heretofore or hereafter reserved or classified as power sites, will not be injured or destroyed for the purposes of power development by location, entry, or selection under the public-land laws, the Secretary of the Interior, upon notice of such determination, shall declare such lands open to location, entry, or selection, subject to and with a reservation of the right of the United States or its permittees or licensees to enter upon, occupy, and use any part or all of said lands necessary, in the judgment of the com-1076mission, for the purposes of this Act, which right shall be expressly reserved in every patent issued for such lands; and no claim or right to compensation shall accrue from the occupation or use of any of said lands for said purposes. The United States or any licensee forPayment for damages to crops, etc. any such lands hereunder may enter thereupon for the purposes of this Act, upon payment of any damages to crops, buildings, or other improvements caused thereby to the owner thereof, or upon giving a good and sufficient bond to the United States for the use and benefit of the owner to secure the payment of such damages as may be determined and fixed in an action brought upon the bond in a court of competent jurisdiction, said bond to be in the form prescribed by the commission: *Provided, *That locations, entries, selections, or*Proviso.*Former locations, etc., not impaired. filings heretofore made for lands reserved as water-power sites or in connection with water-power development or electrical transmission may proceed to approval or patent under and subject to the limitations and conditions in this section contained. Sec. 25. That any licensee, or any person, who shall willfully failPenalty for violations by licensees, etc. or who shall refuse to comply with any of the provisions of this Act, or with any of the conditions made a part of any license issued hereunder, or with any subpoena of the commission, or with any regulation or lawful order of the commission, or of the Secretary of War, or of the Secretary of Commerce as to fishways, issued or made in accordance with the provisions of this Act, shall be deemed guilty of a misdemeanor, and on conviction thereof shall, in the discretion of the court, be punished by a fine of not exceeding $1,000, in addition to other penalties herein prescribed or provided by law; andContinuing offenses. every month any such licensee or any such person shall remain in default after written notice from the commission, or from the Secretary of War, or from the Secretary of Commerce, shall be deemed a new and separate offense punishable as aforesaid. Sec. 26. That the Attorney General may, on request of the commissionEquity proceedings for revoking licenses, etc. or of the Secretary of War, institute proceedings in equity in the district court of the United States in the district in which any project or part thereof is situated for the purpose of revoking for violation of its terms any permit or license issued hereunder, or for the purpose of remedying or correcting by injunction, mandamus,Correcting violations. or other process any act of commission or omission in violation of the provisions of this Act or of any lawful regulation or order promulgated hereunder. The district courts shall have jurisdictionJurisdiction of district courts. over all of the above-mentioned proceedings and shall have power to issue and execute all necessary process and to make and enforce all writs, orders, and decrees to compel compliance with the lawful orders and regulations of the commission and of the Secretary of War, and to compel the performance of any condition imposed under the provisions of this Act. In the event a decree revoking a licenseSale, etc., on revocation of license. is entered, the court is empowered to sell the whole or any part of the project or projects under license, to wind up the business of such licensee conducted in connection with such project or projects, to distribute the proceeds to the parties entitled to the same, and to make and enforce such further orders and decrees as equity andRights, etc., to vendee. justice may require. At such sale or sales the vendee shall take the rights and privileges belonging to the licensee and shall perform the duties of such licensee and assume all outstanding obligations and liabilities of the licensee which the court may deem equitable in the premises; and at such sale or sales the United States mayPayment if United States the purchaser. become a purchaser, but it shall not be required to pay a greater amount than it would be required to pay under the provisions of*Ante*, p. 1071. section 14 hereof at the termination of the license. 1077 Sec. 27. That nothing herein contained shall be construed asState irrigation, etc., laws not affected. affecting or intending to affect or in any way to interfere with the laws of the respective States relating to the control, appropriation, use, or distribution of water used in irrigation or for municipal or other uses, or any vested right acquired therein. Sec. 28. That the right to alter, amend, or repeal this Act isAmendments, etc. Protection of licenses. hereby expressly reserved; but no such alteration, amendment, or repeal shall affect any license theretofore issued under the provisions of this Act, or the rights of any licensee thereunder. Sec. 29. That all Acts or parts of Acts inconsistent with this ActInconsistent laws repealed. are hereby repealed: *Provided, *That nothing herein contained shall*Provisos.*San Francisco water supply not affected. Vol. 38, 242. be held or construed to modify or repeal any of the provisions of the Act of Congress approved December 19, 1913, granting certain rights of way to the city and county of San Francisco, in the State of California: *Provided further, *That section 18 of an Act makingWaterways Commission abolished.Vol. 40, p. 269, repealed. appropriations for the construction, repair, and preservation of certain public works on rivers and harbors, and for other purposes, approved August 8, 1917, is hereby repealed. Sec. 30. That the short title of this Act shall be “The FederalTitle of Act.*Post*, p. 1638. Water Power Act.” Approved, June 10, 1920.