16 U.S.C. § 803 — Conditions of license generally

Page 1376 TITLE 16—CONSERVATION § 801 1 See Codification note below. 1 So in original. Probably should be followed by ‘‘; and’’. ‘‘(2) an application for an original license, if the Commission has issued a notice accepting that appli- cation for filing pursuant to section 4.32(d) of title 18, Code of Federal Regulations (or successor regula- tions), before the date of enactment of the Indian Tribal Energy Development and Self-Determination Act Amendments of 2017.’’ DEFINITION OF INDIAN TRIBE Pub. L. 115–325, title II, § 201(c), Dec. 18, 2018, 132 Stat. 4459, provided that: ‘‘For purposes of section 7(a) of the Federal Power Act (16 U.S.C. 800(a)) (as amended by subsection (a)), the term ‘Indian tribe’ has the meaning given the term in section 4 of the Indian Self-Deter- mination and Education Assistance Act (25 U.S.C. 5304).’’ § 801. Transfer of license; obligations of trans- feree No voluntary transfer of any license, or of the rights thereunder granted, shall be made with- out the written approval of the commission; and any successor or assign of the rights of such li- censee, whether by voluntary transfer, judicial sale, foreclosure sale, or otherwise, shall be sub- ject 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 chapter to the same extent as though such successor or assign were the original li- censee under this chapter: 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. (June 10, 1920, ch. 285, pt. I, § 8, 41 Stat. 1068; re- numbered pt. I, Aug. 26, 1935, ch. 687, title II, § 212, 49 Stat. 847.) § 802. Information to accompany application for license; landowner notification (a) Each applicant for a license under this chapter shall submit to the commission— (1) Such maps, plans, specifications, and esti- mates of cost as may be required for a full un- derstanding 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. (2) 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 devel- oping, transmitting and distributing power, and in any other business necessary to effect the purposes of a license under this chapter. (3) 1 Such additional information as the com- mission may require. (b) Upon the filing of any application for a li- cense (other than a license under section 808 of this title) the applicant shall make a good faith effort to notify each of the following by certified mail: (1) Any person who is an owner of record of any interest in the property within the bounds of the project. (2) Any Federal, State, municipal or other local governmental agency likely to be inter- ested in or affected by such application. (June 10, 1920, ch. 285, pt. I, § 9, 41 Stat. 1068; re- numbered pt. I, Aug. 26, 1935, ch. 687, title II, § 212, 49 Stat. 847; Pub. L. 99–495, § 14, Oct. 16, 1986, 100 Stat. 1257.) Editorial Notes CODIFICATION Former subsec. (c), included in the provisions des- ignated as subsec. (a) by Pub. L. 99–495, has been edi- torially redesignated as par. (3) of subsec. (a) as the probable intent of Congress. AMENDMENTS 1986—Pub. L. 99–495 designated existing provisions as subsec. (a), redesignated former subsecs. (a) and (b) as pars. (1) and (2) of subsec. (a), and added subsec. (b). 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. § 803. Conditions of license generally All licenses issued under this subchapter shall be on the following conditions: (a) Modification of plans; factors considered to secure adaptability of project; recommenda- tions for proposed terms and conditions (1) 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 water- power development, for the adequate protection, mitigation, and enhancement of fish and wildlife (including related spawning grounds and habi- tat), and for other beneficial public uses, includ- ing irrigation, flood control, water supply, and recreational and other purposes referred to in section 797(e) of this title 1 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. (2) In order to ensure that the project adopted will be best adapted to the comprehensive plan described in paragraph (1), the Commission shall consider each of the following: (A) The extent to which the project is con- sistent with a comprehensive plan (where one exists) for improving, developing, or con- serving a waterway or waterways affected by the project that is prepared by— (i) an agency established pursuant to Fed- eral law that has the authority to prepare such a plan; or (ii) the State in which the facility is or will be located. Page 1377 TITLE 16—CONSERVATION § 803 (B) The recommendations of Federal and State agencies exercising administration over flood control, navigation, irrigation, recre- ation, cultural and other relevant resources of the State in which the project is located, and the recommendations (including fish and wild- life recommendations) of Indian tribes af- fected by the project. (C) In the case of a State or municipal appli- cant, or an applicant which is primarily en- gaged in the generation or sale of electric power (other than electric power solely from cogeneration facilities or small power produc- tion facilities), the electricity consumption ef- ficiency improvement program of the appli- cant, including its plans, performance and ca- pabilities for encouraging or assisting its cus- tomers to conserve electricity cost-effectively, taking into account the published policies, re- strictions, and requirements of relevant State regulatory authorities applicable to such ap- plicant. (3) Upon receipt of an application for a license, the Commission shall solicit recommendations from the agencies and Indian tribes identified in subparagraphs (A) and (B) of paragraph (2) for proposed terms and conditions for the Commis- sion’s consideration for inclusion in the license. (b) Alterations in project works That except when emergency shall require for the 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 con- structed hereunder of an installed capacity in excess of two thousand 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. (c) Maintenance and repair of project works; li- ability of licensee for damages That the licensee shall maintain the project works in a condition of repair adequate for the purposes of navigation and for the efficient oper- ation 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 pre- scribe for the protection of life, health, and property. Each licensee hereunder shall be liable for all damages occasioned to the property of others by the construction, maintenance, or op- eration of the project works or of the works ap- purtenant or accessory thereto, constructed under the license and in no event shall the United States be liable therefor. (d) Amortization reserves That after the first twenty years of operation, out of surplus earned thereafter, if any, accumu- lated in excess of a specified reasonable rate of return upon the net investment of a licensee in any project or projects under license, the li- censee shall establish and maintain amortiza- tion reserves, which reserves shall, in the discre- tion of the Commission, be held until the termi- nation 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 such surplus earnings to be paid into and held in such reserves shall be set forth in the license. For any new license issued under section 808 of this title, the amortization reserves under this subsection shall be maintained on and after the effective date of such new license. (e) Annual charges payable by licensees; max- imum rates; application; review and report to Congress (1) That the licensee shall pay to the United States reasonable 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 subchapter, including any reasonable and necessary costs incurred by Federal and State fish and wildlife agencies and other natural and cultural resource agencies in connection with studies or other reviews carried out by such agencies for purposes of admin- istering their responsibilities under this sub- chapter; for recompensing it for the use, occu- pancy, and enjoyment of its lands or other prop- erty; and for the expropriation to the Govern- ment of excessive profits until the respective States shall make provision for preventing ex- cessive profits or for the expropriation thereof to themselves, or until the period of amortiza- tion 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 any such charges may be adjusted from time to time by the Commission as conditions may require: Provided, That, sub- ject to annual appropriations Acts, the portion of such annual charges imposed by the Commis- sion under this subsection to cover the reason- able and necessary costs of such agencies shall be available to such agencies (in addition to other funds appropriated for such purposes) sole- ly for carrying out such studies and reviews and shall remain available until expended: Provided, That when licenses are 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, subject to the approval of the Secretary of the Interior in the case of such dams or struc- tures in reclamation projects and, in the case of such tribal lands, subject to the approval of the Indian tribe having jurisdiction of such lands as provided in section 5123 of title 25, fix a reason- able annual charge for the use thereof, and such charges may with like approval be readjusted by the Commission at the end of twenty years after the project is available for service and at periods of not less than ten years thereafter upon notice and opportunity for hearing: Provided further, That licenses for the development, transmission, or distribution of power by States or municipali- ties 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 mu- nicipality for State or municipal purposes, ex- cept that as to projects constructed or to be con- structed by States or municipalities primarily designed to provide or improve navigation, li- Page 1378 TITLE 16—CONSERVATION § 803 censes therefor shall be issued without charge; and that licenses for the development, trans- mission, or distribution of power for domestic, mining, or other beneficial use in projects of not more than two thousand horsepower installed capacity may be issued without charge, except on tribal lands within Indian reservations; but in no case shall a license be issued free of charge for the development and utilization of power created by any Government dam and that the amount charged therefor in any license shall be such as determined by the Commission: Provided however, That no charge shall be assessed for the use of any Government dam or structure by any licensee if, before January 1, 1985, the Secretary of the Interior has entered into a contract with such licensee that meets each of the following requirements: (A) The contract covers one or more projects for which a license was issued by the Commis- sion before January 1, 1985. (B) The contract contains provisions specifi- cally providing each of the following: (i) A powerplant may be built by the li- censee utilizing irrigation facilities con- structed by the United States. (ii) The powerplant shall remain in the ex- clusive control, possession, and ownership of the licensee concerned. (iii) All revenue from the powerplant and from the use, sale, or disposal of electric en- ergy from the powerplant shall be, and re- main, the property of such licensee. (C) The contract is an amendatory, supple- mental and replacement contract between the United States and: (i) the Quincy-Columbia Basin Irrigation District (Contract No. 14–06–100–6418); (ii) the East Columbia Basin Ir- rigation District (Contract No. 14–06–100–6419); or, (iii) the South Columbia Basin Irrigation District (Contract No. 14–06–100–6420). This paragraph shall apply to any project cov- ered by a contract referred to in this paragraph only during the term of such contract unless otherwise provided by subsequent Act of Con- gress. In the event an overpayment of any charge due under this section shall be made by a licensee, the Commission is authorized to allow a credit for such overpayment when charges are due for any subsequent period. (2) In the case of licenses involving the use of Government dams or other structures owned by the United States, the charges fixed (or read- justed) by the Commission under paragraph (1) for the use of such dams or structures shall not exceed 1 mill per kilowatt-hour for the first 40 gigawatt-hours of energy a project produces in any year, 11⁄2 mills per kilowatt-hour for over 40 up to and including 80 gigawatt-hours in any year, and 2 mills per kilowatt-hour for any en- ergy the project produces over 80 gigawatt-hours in any year. Except as provided in subsection (f), such charge shall be the only charge assessed by any agency of the United States for the use of such dams or structures. (3) The provisions of paragraph (2) shall apply with respect to— (A) all licenses issued after October 16, 1986; and (B) all licenses issued before October 16, 1986, which— (i) did not fix a specific charge for the use of the Government dam or structure in- volved; and (ii) did not specify that no charge would be fixed for the use of such dam or structure. (4) Every 5 years, the Commission shall review the appropriateness of the annual charge limita- tions provided for in this subsection and report to Congress concerning its recommendations thereon. (f) Reimbursement by licensee of other licensees, etc. That whenever any licensee hereunder is di- rectly benefited by the construction work of an- other licensee, a permittee, or of the United States of a storage reservoir or other headwater improvement, the Commission shall require as a condition of the license that the licensee so ben- efited shall reimburse the owner of such res- ervoir 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 deter- mined by the Commission. The licensees or per- mittees affected shall pay to the United States the cost of making such determination as fixed by the Commission. Whenever such reservoir or other improve- ment is constructed by the United States the Commission shall assess similar charges against any licensee directly benefited thereby, and any amount so assessed shall be paid into the Treas- ury of the United States, to be reserved and ap- propriated as a part of the special fund for head- water improvements as provided in section 810 of this title. Whenever any power project not under license is benefited by the construction work of a li- censee or permittee, the United States or any agency thereof, the Commission, after notice to the owner or owners of such unlicensed project, shall determine and fix a reasonable and equi- table annual charge to be paid to the licensee or permittee on account of such benefits, or to the United States if it be the owner of such head- water improvement. (g) Conditions in discretion of commission Such other conditions not inconsistent with the provisions of this chapter as the commission may require. (h) Monopolistic combinations; prevention or minimization of anticompetitive conduct; ac- tion by Commission regarding license and operation and maintenance of project (1) Combinations, agreements, arrangements, or understandings, express or implied, to limit the output of electrical energy, to restrain trade, or to fix, maintain, or increase prices for electrical energy or service are hereby prohib- ited. (2) That conduct under the license that: (A) re- sults in the contravention of the policies ex- pressed in the antitrust laws; and (B) is not oth- erwise justified by the public interest consid- ering regulatory policies expressed in other ap- plicable law (including but not limited to those contained in subchapter II of this chapter) shall be prevented or adequately minimized by means Page 1379 TITLE 16—CONSERVATION § 803 of conditions included in the license prior to its issuance. In the event it is impossible to prevent or adequately minimize the contravention, the Commission shall refuse to issue any license to the applicant for the project and, in the case of an existing project, shall take appropriate ac- tion to provide thereafter for the operation and maintenance of the affected project and for the issuing of a new license in accordance with sec- tion 808 of this title. (i) Waiver of conditions In issuing licenses for a minor part only of a complete project, or for a complete project of not more than two thousand horsepower in- stalled capacity, the Commission may in its dis- cretion waive such conditions, provisions, and requirements of this subchapter, except the li- cense period of fifty years, as it may deem to be to the public interest to waive under the cir- cumstances: Provided, That the provisions hereof shall not apply to annual charges for use of lands within Indian reservations. (j) Fish and wildlife protection, mitigation and enhancement; consideration of recommenda- tions; findings (1) That in order to adequately and equitably protect, mitigate damages to, and enhance, fish and wildlife (including related spawning grounds and habitat) affected by the development, oper- ation, and management of the project, each li- cense issued under this subchapter shall include conditions for such protection, mitigation, and enhancement. Subject to paragraph (2), such conditions shall be based on recommendations received pursuant to the Fish and Wildlife Co- ordination Act (16 U.S.C. 661 et seq.) from the National Marine Fisheries Service, the United States Fish and Wildlife Service, and State fish and wildlife agencies. (2) Whenever the Commission believes that any recommendation referred to in paragraph (1) may be inconsistent with the purposes and re- quirements of this subchapter or other applica- ble law, the Commission and the agencies re- ferred to in paragraph (1) shall attempt to re- solve any such inconsistency, giving due weight to the recommendations, expertise, and statu- tory responsibilities of such agencies. If, after such attempt, the Commission does not adopt in whole or in part a recommendation of any such agency, the Commission shall publish each of the following findings (together with a state- ment of the basis for each of the findings): (A) A finding that adoption of such rec- ommendation is inconsistent with the pur- poses and requirements of this subchapter or with other applicable provisions of law. (B) A finding that the conditions selected by the Commission comply with the requirements of paragraph (1). Subsection (i) shall not apply to the conditions required under this subsection. (June 10, 1920, ch. 285, pt. I, § 10, 41 Stat. 1068; re- numbered pt. I and amended, Aug. 26, 1935, ch. 687, title II, §§ 206, 212, 49 Stat. 842, 847; Pub. L. 87–647, Sept. 7, 1962, 76 Stat. 447; Pub. L. 90–451, § 4, Aug. 3, 1968, 82 Stat. 617; Pub. L. 99–495, §§ 3(b), (c), 9(a), 13, Oct. 16, 1986, 100 Stat. 1243, 1244, 1252, 1257; Pub. L. 99–546, title IV, § 401, Oct. 27, 1986, 100 Stat. 3056; Pub. L. 102–486, title XVII, § 1701(a), Oct. 24, 1992, 106 Stat. 3008.) Editorial Notes REFERENCES IN TEXT The Fish and Wildlife Coordination Act, referred to in subsec. (j)(1), is act Mar. 10, 1934, ch. 55, 48 Stat. 401, which is classified generally to sections 661 to 666c–1 of this title. For complete classification of this Act to the Code, see section 661(a) of this title, Short Title note set out under section 661 of this title, and Tables. AMENDMENTS 1992—Subsec. (e)(1). Pub. L. 102–486, in introductory provisions, substituted ‘‘administration of this sub- chapter, including any reasonable and necessary costs incurred by Federal and State fish and wildlife agencies and other natural and cultural resource agencies in connection with studies or other reviews carried out by such agencies for purposes of administering their re- sponsibilities under this subchapter;’’ for ‘‘administra- tion of this subchapter;’’ and inserted ‘‘Provided, That, subject to annual appropriations Acts, the portion of such annual charges imposed by the Commission under this subsection to cover the reasonable and necessary costs of such agencies shall be available to such agen- cies (in addition to other funds appropriated for such purposes) solely for carrying out such studies and re- views and shall remain available until expended:’’ after ‘‘as conditions may require:’’. 1986—Subsec. (a). Pub. L. 99–495, § 3(b), designated ex- isting provisions as par. (1), inserted ‘‘for the adequate protection, mitigation, and enhancement of fish and wildlife (including related spawning grounds and habi- tat),’’ after ‘‘water-power development’’, inserted ‘‘irri- gation, flood control, water supply, and’’ after ‘‘includ- ing’’, which words were inserted after ‘‘public uses, in- cluding’’ as the probable intent of Congress, sub- stituted ‘‘and other purposes referred to in section 797(e) of this title’’ for ‘‘purposes; and’’, and added pars. (2) and (3). Subsec. (e). Pub. L. 99–546 inserted proviso that no charge be assessed for use of Government dam or struc- ture by licensee if, before Jan. 1, 1985, licensee and Sec- retary entered into contract which met requirements of date of license, powerplant construction, ownership, and revenue, etc. Pub. L. 99–495, § 9(a), designated existing provisions as par. (1) and added pars. (2) to (4). Subsec. (h). Pub. L. 99–495, § 13, designated existing provisions as par. (1) and added par. (2). Subsec. (j). Pub. L. 99–495, § 3(c), added subsec. (j). 1968—Subsec. (d). Pub. L. 90–451 provided for mainte- nance of amortization reserves on and after effective date of new licenses. 1962—Subsecs. (b), (e), (i). Pub. L. 87–647 substituted ‘‘two thousand horsepower’’ for ‘‘one hundred horse- power’’. 1935—Subsec. (a). Act Aug. 26, 1935, § 206, substituted ‘‘plan for improving or developing a waterway or water- ways for the use or benefit of interstate or foreign com- merce, for the improvement and utilization of water- power development, and for other beneficial uses, in- cluding recreational purposes’’ for ‘‘scheme of improve- ment and utilization for the purposes of navigation, of water-power development, and of other beneficial pub- lic uses,’’ and ‘‘such plan’’ for ‘‘such scheme’’. Subsec. (b). Act Aug. 26, 1935, § 206, inserted ‘‘in- stalled’’ before ‘‘capacity’’. Subsec. (d). Act Aug. 26, 1935, § 206, substituted ‘‘net investment’’ for ‘‘actual, legitimate investment’’. Subsec. (e). Act Aug. 26, 1935, § 206, amended subsec. (e) generally. Subsec. (f). Act Aug. 26, 1935, § 206, inserted last sen- tence to first par., and inserted last par. Subsec. (i). Act Aug. 26, 1935, § 206, inserted ‘‘in- stalled’’ before ‘‘capacity’’, and ‘‘annual charges for use of’’ before ‘‘lands’’ in proviso. 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