16 U.S.C. § 806 — Time limit for construction of project

Page 1380 TITLE 16—CONSERVATION § 804 Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–495 effective with respect to each license, permit, or exemption issued under this chapter after Oct. 16, 1986, see section 18 of Pub. L. 99–495, set out as a note under section 797 of this title. SAVINGS PROVISION Pub. L. 99–495, § 9(b), Oct. 16, 1986, 100 Stat. 1252, pro- vided that: ‘‘Nothing in this Act [see Short Title of 1986 Amendment note set out under section 791a of this title] shall affect any annual charge to be paid pursu- ant to section 10(e) of the Federal Power Act [16 U.S.C. 803(e)] to Indian tribes for the use of their lands within Indian reservations.’’ TERMINATION OF REPORTING REQUIREMENTS For termination, effective May 15, 2000, of provisions in subsec. (e)(4) of this section relating to reporting recommendations to Congress every 5 years, see section 3003 of Pub. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance, and page 91 of House Document No. 103–7. OBLIGATION FOR PAYMENT OF ANNUAL CHARGES Pub. L. 115–270, title III, § 3001(c), Oct. 23, 2018, 132 Stat. 3862, provided that: ‘‘Any obligation of a licensee or exemptee for the payment of annual charges under section 10(e) of the Federal Power Act (16 U.S.C. 803(e)) for a project that has not commenced construction as of the date of enactment of this Act [Oct. 23, 2018] shall commence not earlier than the latest of— ‘‘(1) the date by which the licensee or exemptee is required to commence construction; or ‘‘(2) the date of any extension of the deadline under paragraph (1).’’ § 804. Project works affecting navigable waters; requirements insertable in license If the dam or other project works are to be constructed across, along, or in any of the navi- gable waters of the United States, the commis- sion may, insofar as it deems the same reason- ably necessary to promote the present and fu- ture needs of navigation and consistent with a reasonable investment cost to the licensee, in- clude in the license any one or more of the fol- lowing provisions or requirements: (a) That such licensee shall, to the extent nec- essary to preserve and improve navigation fa- cilities, 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 ac- cordance with plans and specifications approved by the Chief of Engineers and the Secretary of the Army and made part of such license. (b) That in case such structures for navigation purposes are not made a part of the original con- struction at the expense of the licensee, then whenever the United States shall desire to com- plete 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 struc- tures, and permit such control of pools as may be required to complete such navigation facili- ties. (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. (June 10, 1920, ch. 285, pt. I, § 11, 41 Stat. 1070; re- numbered pt. I, Aug. 26, 1935, ch. 687, title II, § 212, 49 Stat. 847; July 26, 1947, ch. 343, title II, § 205(a), 61 Stat. 501.) Statutory Notes and Related Subsidiaries CHANGE OF NAME Department of War designated Department of the Army and title of Secretary of War changed to Sec- retary of the Army by section 205(a) of act July 26, 1947, ch. 343, title II, 61 Stat. 501. Section 205(a) of act July 26, 1947, was repealed by section 53 of act Aug. 10, 1956, ch. 1041, 70A Stat. 641. Section 1 of act Aug. 10, 1956, en- acted ‘‘Title 10, Armed Forces’’ which in sections 3010 to 3013 continued military Department of the Army under administrative supervision of Secretary of the Army. § 805. Participation by Government in costs of locks, etc. 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 cannot, consistent with a reasonable investment cost to the applicant, be provided in the manner specified in subsection (a) of section 804 of this title, the commission may grant the application with the provision to be expressed in the license that the licensee will install the nec- essary 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 navi- gation 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. (June 10, 1920, ch. 285, pt. I, § 12, 41 Stat. 1070; re- numbered pt. I, Aug. 26, 1935, ch. 687, title II, § 212, 49 Stat. 847.) § 806. Time limit for construction of project works; extension of time; termination or rev- ocation of licenses for delay The licensee shall commence the construction of the 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 con- struction, and shall within the time fixed in the license complete and put into operation such part of the ultimate development as the com- mission shall deem necessary to supply the rea- sonable 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 com- pleted. The periods for the commencement of construction may be extended for not more than 8 additional years, and the period for the com- pletion 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 Page 1381 TITLE 16—CONSERVATION § 807 1 So in original. Probably should be ‘‘it’’. project works, or of any specified part thereof, within the time prescribed in the license or as extended by the commission, then, after due no- tice given, the license shall, as to such project works or part thereof, be terminated upon writ- ten order of the commission. In case the con- struction of the project works, or of any speci- fied part thereof, has been begun but not com- pleted within the time prescribed in the license, or as extended by the commission, then the At- torney General, upon the request of the commis- sion, shall institute proceedings in equity in the district court of the United States for the dis- trict 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 re- lief as the case may demand, as provided for in section 820 of this title. (June 10, 1920, ch. 285, pt. I, § 13, 41 Stat. 1071; re- numbered pt. I, Aug. 26, 1935, ch. 687, title II, § 212, 49 Stat. 847; amended Pub. L. 115–270, title III, § 3001(b), Oct. 23, 2018, 132 Stat. 3862.) Editorial Notes REFERENCES IN TEXT Proceedings in equity, referred to in text, were abol- ished by the adoption of rule 2 of the Federal Rules of Civil Procedure, set out in the Appendix to Title 28, Ju- diciary and Judicial Procedure, which provided that ‘‘there shall be one form of action to be known as ‘civil action’ ’’. AMENDMENTS 2018—Pub. L. 115–270 substituted ‘‘for not more than 8 additional years,’’ for ‘‘once but not longer than two additional years’’ in second sentence. § 807. Right of Government to take over project works (a) Compensation; condemnation by Federal or State Government Upon not less than two years’ notice in writ- ing from the commission the United States shall have the right upon or after the expiration of any license to take over and thereafter to main- tain and operate any project or projects as de- fined in section 796 of this title, and covered in whole or in part by the license, or the right to take over upon mutual agreement with the li- censee all property owned and held by the li- censee then valuable and serviceable in the de- velopment, transmission, or distribution of power and which is then dependent for its use- fulness upon the continuance of the license, to- gether with any lock or locks or other aids to navigation constructed at the expense of the li- censee, upon the condition that before taking 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 depend- ent 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 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 invest- ment shall not include or be affected by the value of any lands, rights-of-way, or other prop- erty of the United States licensed by the Com- mission under this chapter, 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 or any State or municipality to take over, maintain, and op- erate any project licensed under this chapter at any time by condemnation proceedings upon payment of just compensation is expressly re- served. (b) Relicensing proceedings; Federal agency rec- ommendations of take over by Government; stay of orders for new licenses; termination of stay; notice to Congress In any relicensing proceeding before the Com- mission 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 its 1 does not itself recommend such action pursuant to the provisions of section 800(c) of this title, shall upon motion of such department or agency stay the effective date of any order issuing a license, except an order issuing an an- nual license in accordance with the proviso of section 808(a) of this title, for two years after the date of issuance of such order, after which period the stay shall terminate, unless termi- nated earlier upon motion of the department or agency requesting the stay or by action of Con- gress. The Commission shall notify the Congress of any stay granted pursuant to this subsection. (June 10, 1920, ch. 285, pt. I, § 14, 41 Stat. 1071; re- numbered pt. I and amended, Aug. 26, 1935, ch. 687, title II, §§ 207, 212, 49 Stat. 844, 847; Pub. L. 90–451, § 2, Aug. 3, 1968, 82 Stat. 617; Pub. L. 99–495, § 4(b)(2), Oct. 16, 1986, 100 Stat. 1248.) Editorial Notes AMENDMENTS 1986—Subsec. (b). Pub. L. 99–495 struck out first sen- tence which read as follows: ‘‘No earlier than five years before the expiration of any license, the Commission shall entertain applications for a new license and de- cide them in a relicensing proceeding pursuant to the provisions of section 808 of this title.’’ 1968—Pub. L. 90–451 designated existing provisions as subsec. (a) and added subsec. (b). 1935—Act Aug. 26, 1935, § 207, amended section gen- erally. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–495 effective with respect to each license, permit, or exemption issued under this chapter after Oct. 16, 1986, see section 18 of Pub. L. 99–495, set out as a note under section 797 of this title.