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16 USC CHAPTER 12E - NIAGARA POWER PROJECT 01/06/03

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TITLE 16 - CONSERVATION

CHAPTER 12E - NIAGARA POWER PROJECT

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CHAPTER 12E - NIAGARA POWER PROJECT

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Sec.

836. Authorization to license construction and operation; licensing

conditions.

836a. Rules governing issuance of license.

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16 USC Sec. 836 01/06/03

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TITLE 16 - CONSERVATION

CHAPTER 12E - NIAGARA POWER PROJECT

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Sec. 836. Authorization to license construction and operation;

licensing conditions

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(a) The Federal Energy Regulatory Commission is expressly

authorized and directed to issue a license to the Power Authority

of the State of New York for the construction and operation of a

power project with capacity to utilize all of the United States

share of the water of the Niagara River permitted to be used by

international agreement.

(b) The Federal Energy Regulatory Commission shall include among

the licensing conditions, in addition to those deemed necessary and

required under the terms of the Federal Power Act (16 U.S.C. 791a

et seq.), the following:

(1) In order to assure that at least 50 per centum of the

project power shall be available for sale and distribution

primarily for the benefit of the people as consumers,

particularly domestic and rural consumers, to whom such power

shall be made available at the lowest rates reasonably possible

and in such manner as to encourage the widest possible use, the

licensee in disposing of 50 per centum of the project power shall

give preference and priority to public bodies and nonprofit

cooperatives within economic transmission distance. In any case

in which project power subject to the preference provisions of

this paragraph is sold to utility companies organized and

administered for profit, the licensee shall make flexible

arrangements and contracts providing for the withdrawal upon

reasonable notice and fair terms of enough power to meet the

reasonably foreseeable needs of the preference customers.

(2) The licensee shall make a reasonable portion of the project

power subject to the preference provisions of paragraph (1) of

this subsection available for use within reasonable economic

transmission distance in neighboring States, but this paragraph

shall not be construed to require more than 20 per centum of the

project power subject to such preference provisions to be made

available for use in such States. The licensee shall cooperate

with the appropriate agencies in such States to insure compliance

with this requirement. In the event of disagreement between the

licensee and the power-marketing agencies of any of such States,

the Federal Energy Regulatory Commission may, after public

hearings, determine and fix the applicable portion of power to be

made available and the terms applicable thereto: Provided, That

if any such State shall have designated a bargaining agency for

the procurement of such power on behalf of such State, the

licensee shall deal only with such agency in that State. The

arrangements made by the licensee for the sale of power to or in

such State shall include observance of the preferences in

paragraph (1) of this subsection.

(3) The licensee shall contract, with the approval of the

Governor of the State of New York, pursuant to the procedure

established by New York law, to sell to the licensee of Federal

Energy Regulatory Commission project 16 for a period ending not

later than the final maturity date of the bonds initially issued

to finance the project works herein specifically authorized, four

hundred and forty-five thousand kilowatts of the remaining

project power, which is equivalent to the amount produced by

project 16 prior to June 7, 1956, for resale generally to the

industries which purchase power produced by project 16 prior to

such date, or their successors, in order as nearly as possible to

restore low power costs to such industries and for the same

general purposes for which power from project 16 was utilized:

Provided, That the licensee of project 16 consents to the

surrender of its license at the completion of the construction of

such project works upon terms agreed to by both licensees and

approved by the Federal Energy Regulatory Commission which shall

include the following: (a) the licensee of project 16 shall waive

and release any claim for compensation or damages from the Power

Authority of the State of New York or from the State of New York,

except just compensation for tangible property and rights-of-way

actually taken, and (b) without limiting the generality of the

foregoing, the licensee of project 16 shall waive all claims to

compensation or damages based upon loss of or damage to riparian

rights, diversionary rights, or other rights relating to the

diversion or use of water, whether founded on legislative grant

or otherwise.

(4) The licensee shall, if available on reasonable terms and

conditions, acquire by purchase or other agreement, the ownership

or use of, or if unable to do so, construct such transmission

lines as may be necessary to make the power and energy generated

at the project available in wholesale quantities for sale on fair

and reasonable terms and conditions to privately owned companies,

to the preference customers enumerated in paragraph (1) of this

subsection, and to the neighboring States in accordance with

paragraph (2) of this subsection.

(5) In the event project power is sold to any purchaser for

resale, contracts for such sale shall include adequate provisions

for establishing resale rates, to be approved by the licensee,

consistent with paragraphs (1) and (3) of this subsection.

(6) The licensee, in cooperation with the appropriate agency of

the State of New York which is concerned with the development of

parks in such State, may construct a scenic drive and park on the

American side of the Niagara River, near the Niagara Falls,

pursuant to a plan the general outlines of which shall be

approved by the Federal Energy Regulatory Commission; and the

cost of such drive and park shall be considered a part of the

cost of the power project and part of the licensee's net

investment in said project: Provided, That the maximum part of

the cost of such drive and park to be borne by the power project

and to be considered a part of the licensee's net investment

shall not exceed $15,000,000.

(7) The licensee shall pay to the United States and include in

its net investment in the project herein authorized the United

States share of the cost of the construction of the remedial

works, including engineering and economic investigations,

undertaken in accordance with article II of the treaty between

the United States of America and Canada concerning uses of the

waters of the Niagara River signed February 27, 1950, whenever

such remedial works are constructed.

-SOURCE-

(Pub. L. 85-159, Sec. 1, Aug. 21, 1957, 71 Stat. 401; Pub. L.

95-91, title IV, Sec. 402(a)(1)(A), Aug. 4, 1977, 91 Stat. 583.)

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REFERENCES IN TEXT

The Federal Power Act, referred to in subsec. (b), is act June

10, 1920, ch. 285, 41 Stat. 1063, as amended, which is classified

generally to chapter 12 (Sec. 791a et seq.) of this title. For

complete classification of this Act to the Code, see section 791a

of this title and Tables.

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TRANSFER OF FUNCTIONS

''Federal Energy Regulatory Commission'' substituted in text for

''Federal Power Commission'' pursuant to Pub. L. 95-91, Sec.

402(a)(1)(A), which is classified to section 7172(a)(1)(A) of Title

42, The Public Health and Welfare.

Federal Power Commission terminated and its functions, personnel,

property, funds, etc., transferred to Secretary of Energy (except

for certain functions transferred to Federal Energy Regulatory

Commission) by sections 7151(b), 7171(a), 7172(a), 7291, and 7293

of Title 42.

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16 USC Sec. 836a 01/06/03

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TITLE 16 - CONSERVATION

CHAPTER 12E - NIAGARA POWER PROJECT

-HEAD-

Sec. 836a. Rules governing issuance of license

-STATUTE-

The license issued under the terms of this chapter shall be

granted in conformance with Rules of Practice and Procedure of the

Federal Energy Regulatory Commission, but in the event of any

conflict, the provisions of this chapter shall govern in respect of

the project herein authorized.

-SOURCE-

(Pub. L. 85-159, Sec. 2, Aug. 21, 1957, 71 Stat. 402; Pub. L.

95-91, title IV, Sec. 402(a)(1)(A), Aug. 4, 1977, 91 Stat. 583.)

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TRANSFER OF FUNCTIONS

''Federal Energy Regulatory Commission'' substituted for

''Federal Power Commission'' in subsecs. (a) and (b) pursuant to

Pub. L. 95-91, Sec. 402(a)(1)(A), which is classified to section

7172(a)(1)(A) of Title 42, The Public Health and Welfare.

Federal Power Commission terminated and its functions, personnel,

property, funds, etc., transferred to Secretary of Energy (except

for certain functions transferred to Federal Energy Regulatory

Commission) by sections 7151(b), 7171(a), 7172(a), 7291, and 7293

of Title 42.

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