16 U.S.C. § 831l — Financial assistance to States and local

Page 1465 TITLE 16—CONSERVATION § 831l rate, rebate, or other special concession is made or given to any consumer or user by the munici- pality or other political subdivision or coopera- tive organization: And provided further, That as to any surplus power not so sold as above pro- vided to States, counties, municipalities, or other said organizations, before the Board shall sell the same to any person or corporation en- gaged in the distribution and resale of elec- tricity for profit, it shall require said person or corporation to agree that any resale of such electric power by said person or corporation shall be made to the ultimate consumer of such electric power at prices that shall not exceed a schedule fixed by the Board from time to time as reasonable, just, and fair; and in case of any such sale, if an amount is charged the ultimate consumer which is in excess of the price so deemed to be just, reasonable, and fair by the Board, the contract for such sale between the Board and such distributor of electricity shall be voidable at the election of the Board: And provided further, That the Board is authorized to enter into contracts with other power systems for the mutual exchange of unused excess power upon suitable terms, for the conservation of stored water, and as an emergency or break- down relief. (May 18, 1933, ch. 32, § 12, 48 Stat. 65; Pub. L. 108–447, div. C, title VI, § 603(a)(2), Dec. 8, 2004, 118 Stat. 2966.) Editorial Notes AMENDMENTS 2004—Pub. L. 108–447 substituted ‘‘Board’’ for ‘‘board’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2004 AMENDMENT Amendment by Pub. L. 108–447 effective on the later of the date on which at least three persons nominated under section 604(a) of Pub. L. 108–447 take office or May 18, 2005, see section 604(b) of Pub. L. 108–447, set out in an Appointments; Effective Date; Transition note under section 831a of this title. § 831k–1. Extension of credit to States, munici- palities and nonprofit organizations to assist in operation of existing facilities In order (1) to facilitate the disposition of the surplus power of the Corporation according to the policies set forth in this chapter; (2) to give effect to the priority herein accorded to States, counties, municipalities, and nonprofit organi- zations in the purchase of such power by ena- bling them to acquire facilities for the distribu- tion of such power; and (3) at the same time to preserve existing distribution facilities as going concerns and avoid duplication of such facilities, the Board is authorized to advise and cooperate with and assist, by extending credit for a period of not exceeding five years to, States, counties, municipalities and nonprofit organizations situ- ated within transmission distance from any dam where such power is generated by the Corpora- tion in acquiring, improving, and operating (a) existing distribution facilities and incidental works, including generating plants; and (b) interconnecting transmission lines; or in acquir- ing any interest in such facilities, incidental works, and lines. (May 18, 1933, ch. 32, § 12a, as added Aug. 31, 1935, ch. 836, § 7, 49 Stat. 1076.) § 831l. Financial assistance to States and local governments in lieu of taxation; apportion- ment; limitation on contracts for sale of power to municipalities; report to Congress In order to render financial assistance to those States and local governments in which the power operations of the Corporation are carried on and in which the Corporation has acquired properties previously subject to State and local taxation, the Board is authorized and directed to pay to said States, and the counties therein, for each fiscal year, beginning July 1, 1940, the following percentages of the gross proceeds de- rived from the sale of power by the Corporation for the preceding fiscal year as hereinafter pro- vided, together with such additional amounts as may be payable pursuant to the provisions here- inafter set forth, said payments to constitute a charge against the power operations of the Cor- poration: For the fiscal year (beginning July 1) 1940, 10 per centum; 1941, 9 per centum; 1942, 8 per centum; 1943, 71⁄2 per centum; 1944, 7 per cen- tum; 1945, 61⁄2 per centum; 1946, 6 per centum; 1947, 51⁄2 per centum; 1948 and each fiscal year thereafter, 5 per centum. ‘‘Gross proceeds’’, as used in this section, is defined as the total gross proceeds derived by the Corporation from the sale of power for the preceding fiscal year, ex- cluding power used by the Corporation or sold or delivered to any other department or agency of the Government of the United States for any purpose other than the resale thereof. The pay- ments herein authorized are in lieu of taxation, and the Corporation, its property, franchises and income, are expressly exempted from taxation in any manner or form by any State, county, mu- nicipality, or any subdivision or district thereof. The payment for each fiscal year shall be ap- portioned among said States in the following manner: One-half of said payment shall be ap- portioned by paying to each State the percent- age thereof which the gross proceeds of the power sales by the Corporation within said State during the preceding fiscal year bears to the total gross proceeds from all power sales by the Corporation during the preceding fiscal year; the remaining one-half of said payment shall be apportioned by paying to each State the per- centage thereof which the book value of the power property held by the Corporation within said State at the end of the preceding fiscal year bears to the total book value of all such prop- erty held by the Corporation on the same date. The book value of power property shall include that portion of the investment allocated or esti- mated to be allocable to power: Provided, That the minimum annual payment to each State (in- cluding payments to counties therein) shall not be less than an amount equal to the two-year average of the State and local ad valorem prop- erty taxes levied against power property pur- chased and operated by the Corporation in said State and against that portion of reservoir lands related to dams constructed by or on behalf of the United States Government and held or oper- Page 1466 TITLE 16—CONSERVATION § 831m 1 So in original. Probably should be capitalized. ated by the Corporation and allocated or esti- mated to be allocable to power. The said two- year average shall be calculated for the last two tax years during which said property was pri- vately owned and operated or said land was pri- vately owned: Provided further, That the min- imum annual payment to each State in which the Corporation owns and operates power prop- erty (including payments to counties therein) shall not be less than $10,000 in any case: Pro- vided further, That the corporation 1 shall pay di- rectly to the respective counties the two-year average of county ad valorem property taxes (in- cluding taxes levied by taxing districts within the respective counties) upon power property and reservoir lands allocable to power, deter- mined as above provided, and all payments to any such county within a State shall be de- ducted from the payment otherwise due to such State under the provisions of this section. The determination of the Board of the amounts due hereunder to the respective States and counties shall be final. The payments above provided shall in each case be made to the State or county in equal monthly installments beginning not later than July 31, 1940. Nothing herein shall be construed to limit the authority of the Corporation in its contracts for the sale of power to municipalities, to permit or provide for the resale of power at rates which may include an amount to cover tax-equivalent payments to the municipality in lieu of State, county, and municipal taxes upon any distribu- tion system or property owned by the munici- pality, or any agency thereof, conditioned upon a proper distribution by the municipality of any amounts collected by it in lieu of State or coun- ty taxes upon any such distribution system or property; it being the intention of Congress that either the municipality or the State in which the municipality is situated shall provide for the proper distribution to the State and county of any portion of tax equivalent so collected by the municipality in lieu of State or county taxes upon any such distribution system or property. The Corporation shall, not later than January 1, 1945, submit to the Congress a report on the operation of the provisions of this section, in- cluding a statement of the distribution to the various States and counties hereunder; the ef- fect of the operation of the provisions of this section on State and local finances; an appraisal of the benefits of the program of the Corpora- tion to the States and counties receiving pay- ments hereunder, and the effect of such benefits in increasing taxable values within such States and counties; and such other data, information, and recommendations as may be pertinent to fu- ture legislation. (May 18, 1933, ch. 32, § 13, 48 Stat. 66; June 26, 1940, ch. 432, § 39, 54 Stat. 626; Pub. L. 108–447, div. C, title VI, § 603(a)(2), Dec. 8, 2004, 118 Stat. 2966.) Editorial Notes AMENDMENTS 2004—Pub. L. 108–447 substituted ‘‘Board’’ for ‘‘board’’ in first and second pars. 1940—Act June 26, 1940, amended section generally. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2004 AMENDMENT Amendment by Pub. L. 108–447 effective on the later of the date on which at least three persons nominated under section 604(a) of Pub. L. 108–447 take office or May 18, 2005, see section 604(b) of Pub. L. 108–447, set out in an Appointments; Effective Date; Transition note under section 831a of this title. § 831m. Allocation and charge of value and cost of plants to particular objects; cost account- ing; reports of costs of operation; sale of sur- plus power at profit The Board shall make a thorough investiga- tion as to the present value of Dam Numbered 2, and the steam plants at nitrate plant numbered 1, and nitrate plant numbered 2, and as to the cost of Cove Creek Dam, for the purpose of ascertaining how much of the value or the cost of said properties shall be allocated and charged up to (1) flood control, (2) navigation, (3) fer- tilizer, (4) national defense, and (5) the develop- ment of power. The findings thus made by the Board, when approved by the President of the United States, shall be final, and such findings shall thereafter be used in all allocation of value for the purpose of keeping the book value of said properties. In like manner, the cost and book value of any dams, steam plants, or other simi- lar improvements hereafter constructed and turned over to said Board for the purpose of con- trol and management shall be ascertained and allocated. The Board shall, on or before January 1, 1937, file with Congress a statement of its allo- cation of the value of all such properties turned over to said Board, and which have been com- pleted prior to the end of the preceding fiscal year, and shall thereafter in its annual report to Congress file a statement of its allocation of the value of such properties as have been completed during the preceding fiscal year. For the purpose of accumulating data useful to the Congress in the formulation of legislative policy in matters relating to the generation, transmission, and distribution of electric energy and the production of chemicals necessary to national defense and useful in agriculture, and to the Federal Power Commission and other Federal and State agencies, and to the public, the Board shall keep complete accounts of its costs of generation, transmission, and distribu- tion of electric energy and shall keep a complete account of the total cost of generating and transmission facilities constructed or otherwise acquired by the Corporation, and of producing such chemicals, and a description of the major components of such costs according to such uni- form systems of accounting for public utilities as the Federal Power Commission has, and if it have none, then it is empowered and directed to prescribe such uniform system of accounting, together with records of such other physical data and operating statistics of the Authority as may be helpful in determining the actual cost and value of services, and the practices, meth- ods, facilities, equipment, appliances, and stand- ards and sizes, types, location, and geographical and economic integration of plants and systems