use in reserva tion and for the development, transmission, and utilization of power across, along, from or in any of the 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, or upon any part of the 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, That licenses shall be issued within any reser- Proviso. vation only after a finding by the Commission that the license will not interfere or be 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 ade- Restriction on quate protection and utilization of such reservation: 1tions. Provided further, That no license affecting the navigable Proviso. 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 Approval of Chief of Engineers and the Secretary of War. When- navigable waters, ever 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 or 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 Proviso. in case the Commission shall find that any Government dam may be advantageously used by the United States Use of Governfor public purposes in addition to navigation, no license public purposes. 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 1 The act of Mar. 3, 1921 (41 Stat. 1353), reads as follows: dams, etc., on ment dams for 'Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That hereafter no permit, license, lease, or authorization for dams, conduits, reservoirs, power houses, transmission lines, or other works for storage or carriage of water, or for the development, transmission, or utilization of power within the limits as now constituted of any national park or national monument shall be granted or made without specific authority of Congress, and so much of the Act of Congress approved June 10, 1920, entitled '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 ', approved June 10, 1920, as authorizes licensing such uses of existing national parks and national monuments by the Federal Power Commission is hereby repealed." [See Appendix.] Proviso. Notice of application without preliminary permit. Issue preliminary permits to applicants. Proviso. State, etc. to any Government dam constructed prior to June 10, 1920: And provided further, That upon the filing of any application for a license which has not been preceded by a preliminary permit under subsection (f) of this section, notice shall be given and published as required by the proviso of said subsection. (f) To issue preliminary permits for the purpose of enabling applicants for a license hereunder to secure the data and to perform the acts required by section 9 hereof: Provided, however, That upon the filing of any application for a preliminary permit by any person, association, or corporation the Commission, before grantNotice thereof to ing 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 Publish notice. shall also publish notice of such application once each week for four 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. To investigate occupancy, etc., of lands, streams, gress; to issue interest. (g) Upon its own motion to order an investigation of etc., under juris-' any occupancy of, or evidenced intention to occupy, for diction of Cone the purpose of developing electric power, public lands, order in public 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. Preliminary permit to maintain priority; term; conditions. 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. Preliminary per- Such permits shall not be transferable, and may be canferable; condi- celed by order of the Commission upon failure of per tion by Commis-mittees to comply with the conditions thereof or for mits not trans tions of cancela sion; hearing. other good cause shown after notice and opportunity for hearing. acceptance of SFC. 6. [As amended August 26, 1935.] Licenses under Term of license; this Part shall be issued for a period not exceeding fifty conditions. 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. Licenses may be revoked only for the reasons and in the manner pre- Revocation and scribed under the provisions of this Act, and may be ditions; notice. altered or surrendered only upon mutual agreement between the licensee and the Commission after thirty days' public notice. Copies of all licenses issued under Copies of licenses the provisions of this Part and calling for the payment ment of charges of annual charges shall be deposited with the General with General AcAccounting Office, in compliance with section 3743, Re-counting Office. vised Statutes, as amended (U. S. C., title 41, sec. 20). alterations; con calling for pay to be deposited States and mu plans equally plans best other applicants. SEC. 7. [As amended August 26, 1935.] (a) In issuing Preference to preliminary permits hereunder or licenses where no pre- nicipalities, if liminary permit has been issued and in issuing licenses well adapted. 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 Preference to which it finds and determines are best adapted to de- adapted among velop, 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. (b) Whenever, in the judgment of the Commission, Development by 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 Investigation and 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. United States. report. Approval of Commission of tions of trans etc.; successor subject to all conditions of license. SEC. 8. That no voluntary transfer of any license, or transfer; condi- of the rights thereunder granted, shall be made without fer, judicial sale, 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, 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. Proviso. Exceptions to voluntary transfer. Application requirements. Submission of plans, etc. Compliance with Additional information. Conditions of licenses. Project adapted to utilize navigation, water power, etc. 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. (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. (c) Such additional information as the commission may require. SEC. 10. [As amended August 26, 1935.] 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 waterpower 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. alterations. (b) That except when emergency shall require for the Restriction on 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 one hundred 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. be maintained in tion, etc. (c) That the licensee shall maintain the project works Project works to in a condition of repair adequate for the purposes of effective operanavigation 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 Liability for occasioned to the property of others by the construction, erty of others. 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. damages to prop serves to be es (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 amortiza- Amortization retion reserves, which reserves shall, in the discretion of tablished. the Commission, be held until the termination of the Disposition of. license or be applied from time to time in reduction of the net investment. Such specified rate of return and the Rate of return proportion of such surplus earnings to be paid into and license. held in such reserves shall be set forth in the license. to be specified in Basis of. (e) That the licensee shall pay to the United States Annual charges. reasonable annual charges in an amount to be fixed by 197437-40- -2 |